We’re well into the spring market of 2014 and things are rocking and rolling here in the Dulles area. I work with first time home buyers, people relocating from other markets and people that haven’t bought or sold a home in recent years. And the market is constantly changing. So once a year I try to do a quick blog post on what we’re seeing in the market place with some regularity. Here are a few bullet points highlighting “Typical Contract Terms” that we are seeing in “traditional” sales.
What is a “traditional sale”?
A traditional sale is a regular resale…. It’s when Bob and Mary hire a REALTOR to market their home to the public and sell it to someone they don’t know in an arms length retail transaction. There are other types of sales, too. But these are the most common and as such, are the ones that set “typical” standards. Here are a few of the highlights of what you should expect before you begin house hunting or negotiations:
- Marketing period is generally less than 90 days. The lower priced the home, the faster the market is moving. If you see a house you like be prepared to make your offer quickly. If it’s well priced, it may see multiple offers.
- Selling Price is usually within 5% +/- of Asking Price; NET of any seller contributions to cover closing costs for buyer.
- Seller pays commission for buyers agent.
- Contract to close is 30-60 days.
- Longer contract periods or “Rent Backs” are becoming more popular
Common Buyer Contingencies include:
- Home Inspection (Buyer Paid; 7-14 days)
- Well/Septic Inspections (Maybe Seller Paid; 10-21 days)
- Termite Inspection (Seller Paid; before closing)
- Financing (Buyer Paid; 21 Days)
- Appraisal (Buyer Paid; 21 Days)
- HOA/COA Document Review (Seller Paid; 3 Days)
- Survey/Title (Buyer Paid; Through Date of Settlement)
As I mentioned earlier, “traditional” sales are not the only type of sale in the market place today. They remain the most common, especially for first time home buyers.
For information on other types of sales, check out the blog posts below:
Auctions (Coming Soon)
Looking to Purchase a Home in the Dulles Area?
Fieldstone Real Estate