REAL ESTATE IS LOCAL

Many of you probably are confused by the news and many real estate articles circulating in the various newspapers giving mixed reviews to the real estate and mortgage industry as a whole. But one thing that you have to keep in mind is that REAL ESTATE is local. What is happening in Austin, TX or in New York, New York is not the same as here in the DC, Maryland, and Virginia real estate market.

You have to keep an open mind that the industry as a whole is not suffering but rather certain pockets of our industry. A perfect example of this is the subprime woes and how it has affected the economy as a whole. The first thing you have to keep in mind is that the subprime market is only about 20% of the total loans originated and most of the people who got subprime loans probably should not have bought in the first place because of their poor credit rating and lack of money. Banks in the past made it so easy for anybody to get a loan that now they are suffering the consequences and have since tightened their guidelines to the detriment of many perfectly qualified applicants. Why do I say this? Well there are some people that are self employed and make a lot of money but unfortunately do not document it. Therefore a stated-stated loan would be ideal for them since we don't have to verify the income BUT nowadays these loans have almost dissapeared and if they are still around the interest rate would definitely discourage anyone to get into these loans.

Since late 2005 we have seen a downturn of the DC, Maryland, and Virginia real estate market as well as other aregions. This was inevitable. Our market cannot sustain this type of growth for a prolonged period of time. No one would be able to afford a house and that is why we have what analysts are calling a "CORRECTION".

Prices since late 2005 have plummeted as much as 10-20%. This is good for buyers and the economy as a whole. After several years of sellers demanding above asking price and demanding that home inspections be waived the tables have turned and buyers are in charge. Buyers are reducing even further asking prices and asking for concessions left and right, and you what, they are getting them!

So lets put this into perspective and if you are in the market to sell your home understand what you are getting yourself into. Price your home accordingly, be ready to negotiate, and have it in model home condition! Buyers you can probably ask for just about anything and get it, but let's be realistic and fair just like the sellers were a couple of years ago.

Good luck on your house hunting!

Posted by Darwin Romero pricipal broker of ACCENT Realty Corp. For more information on the writer and the company please visit the following website: http://www.accentrealtycorp.com/