Lake Ridge Virginia Real Estate Help For Sellers and Buyers: January 2009

Information Prince William County Buyers Need To Know

Last Saturday I was working with a Buyer who was pre-approved and could afford to buy a home priced up to $150,000.

So I gave the buyer a list of homes to look through for the upcoming house hunt . When she arrived she had a few more that she had found on Craigslist and Online.   You see, there was one particular home  that caught the Buyers interest.

The home was a single family home in Dale City.  This is how the home appeared Online.

CLICK ON THE VIRTUAL TOUR TO SEE WHY SHE WAS SO INTERESTED. WOULDN'T YOU BE?
Home was listed by Samson Realty LLC  for the Auction House Kazork
Now here's the challenge when you the consumer searches Online.  When you search for home on sites like Realtor.com, Trulia and Zillow or even on the agents own website, this is what happens. These are the comment my client saw.
Remarks:  BANK-OWNED - This is a BARGAIN house. Take a closer look at the large rooms;the potentials for a summer relaxation around the inground pool; heated, etched design ceramic tile in family room & in two bedrooms; plant window in kitchen, replacement windows; multi-function rooms on lower level. Lots of house for the $$$.
Directions:
I-95 to Exit 156 to Dale Blvd to left @ Delaney Rd - Kirkdale Dr. is the 3rd street on the left.Go to 4917 the house on the left

However this is what a Realtor can see on the same house: Notice the Comments are far different.

BANK-OWNED FORECLOSURE REO - NOT A S-H-O-R-T S-A-L-E! 4% to BUYER'S BROKER. Buyer to pay $160 fee to 3rd party. For information or to make offers, go to www.kazork.com or call Kazork at 619-255-0928, ext. 775. Property is Limited Service Listing all offers are to be made to Seller's assignee Kazork, Inc. No utilities are on at the house

Why is that?

That's because Listing Agents want you the buyer to call.If you called on that house, the agent would make a full  commission based on the information presented on the Auction house website. And in this case, there was a bonus to the agent. Now even if you didn't like the house  the Listing Agent is hoping they will be able to find you another house.  It's business and how real estate is done.

That's why you should always have a Buyer Agent who represents you and only you in a Real Estate Transaction here in Virginia. Alawys ask for representation.

Ok...so on with the house hunt.My client looked at the house and was over the moon with excitement. As for me, being an experienced Buyer Agent in Prince William County, " I knew there was no chance that home would sell for $150,000." However my client has  just started tip toeing into the buying process, and just thought for sure she could get it for $150,000. When I cautioned her on the fact this was the starting bid and it was already at the top of her budget it went on deaf ears.  I remember hearing But Peggy " It's in my price range!" The conversation went on between us. I stated that this home is a clear example of pricing a home extremely low to create a BUZZ and to get buyers into a Bidding War. My client wasn't trusting what I was saying. The good news I've been down this road a few times and I always do what I can to help the buyer through the process.

.Buying a home in today's market is not Purchasing 101.  Today's buyers are presented with unfair challenges like mold, and houses that have no heat, no water and need thousands of dollars of repairs especially in the lower price ranges. House Hunting helps you the buyer get a feel for the market and what is available in your price range. Not until you walk into a house, will you know if it's right for you.

Well, out of all the houses we looked at on Saturday, this house above was a standout to the Buyer.

• It was twice as large as any house on the market                                       
• It was updated in many area's
• It was clearly a STEAL 

So would like to see what happened????  

By Sunday the 25th there were 9 bids. Three competing people. This Online Auction was just like an EBAY Auction...the closer it got to the close of bidding a flurry of bids appeared. In all this home had 47 Bids!

It went for $112,000 more than my client could afford. This is not the norm since this home was priced so low. Now look at what the conditions of the purchase:

THIS PROPERTY IS BEING SOLD AS-IS.

If your buyer is not planning to occupy this asset (is an investor only), the maximum seller's credits allowed on this property is 2%, no matter what the contract states. This is an FNMA requirement.

No contingencies will be accepted except for financing and inspection. Your offer should reflect all credits and repairs, etc. that your buyer is requesting; you may enter these in the "Total Credits" field when you submit your offer.

Earnest money deposit must be at least 1% of the purchase price, or $1,000, whichever is higher.

Offers are made AS-IS with no contingencies, except for the standard financing contingency. All repair costs, closing costs, and other costs should be reflected in the offer price submitted by you. The offer you submit online is deemed to be your net offer.

Any inspections, including but not limited to Septic, Termite, Pest, Water/Well, Natural Hazard Zone, Mold and Home Inspections will be at the sole expense of Buyer.

Buyer may at its sole expense and election, obtain a home warranty plan. Buyer will pay for all transfer fees associated with the sale of Property. Escrows to close within 30-days.

All information contained herein is deemed reliable but not guaranteed

The Moral of this story.   If you are pre-approved to buy a home, make sure you leave yourself room for a bidding war when searching for properties.  Bidding wars are happening everyday in Prince William County homes priced under $400,00. 

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 Erick Blackwelder or Peggy JamesExit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252 (Office) to list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.