Buyers market in DC with home price reductions...

Dec. 30, 2009 - PRLog -- Homes in the DC market have experienced at least one price reduction since the beginning of Dec. 2009. This price reduction is the lowest for the year. The total amount slashed dropped from $28.1 billion to $24.7 billion. What does this mean? Great deals for potential buyers in the area!

Arlington, Va., has a 28 percent increase in price reduction. Looking for deals? Here are the areas, in our neighborhoods, with price reductions in December:

•   Washington DC: 1,070 properties
•   Arlington: 200 properties
•   Fairfax: 131 properties
•   Alexandria: 388 properties
•   Falls Church: 124 properties

With the extension of the $8,000 first-time home buyer tax credit for potential buyers, the opportunity is perfect for those couples thinking about buying a new home for the upcoming 2010 year in the DC area.

“Values of property will eventually become stable and start to soar in the area but this will be another year for the buyer or investor in real estate,” said Steve Tavenner of Pillar Property Group. Potential buyers need to be aware contracts must be signed no later than April 30 to take full advantage of this extension of the first-time home buyer credit.

Many potential buyers and investors have become leery of banks and their particular practices. Well, there is the option of a mortgage broker. A mortgage broker is independent from any specific lender. Precision Funding has access to several different lenders and many loan programs for first-time home buyers. Also, mortgage brokers are able to shop for the desirable interest rate for you.

There are numerous financing options for potential first-time home buyers. Traditional banking institutions are limited to the number of financing avenues for people, who wish to be first-time home buyers. They still have many strict guidelines they must adhere to and excludes many deserving individuals from purchasing a home.

The key article for couples and individuals who are considering purchasing a home is to have their questions and concern ready for their realtors, according to Tavenner. “We at Pillar Property Group encourage these potential buyers to think of questions or concerns of the properties we show. This will allow us be able to place them in the home they have always wanted.”

“I have recommended Precision Funding to all of my potential home buyers,” said Tavenner. Precision Funding can explain the various options for the first-time home buyer, who is unsure how to navigate the fiscal language of financing a home.

“The USDA loan program is an option for those looking for 100 percent financing. The USDA program will finance 100 percent of the amount need to purchase your home minus the closing costs needed for the sale. The good news is the closing costs can be paid for by the seller of the property,” said TJ Noye of Precision Funding.

The closing costs allowed to be paid by the seller can not exceed 6 percent of the sale rice. “If you have a property that is selling for $100,000, the seller can contribute or pay the closing costs in the amount of $6,000. If the closing costs are $6,500, you will have to bring to the table $500 dollars of your own money,” said Noye.

FHA program is another good option and is an insured loan. With this option, you will be able to receive financing in the amount of 96.5 percent of the purchase price. “Like in our previous example, you will receive financing in the amount of $96,500 on the same property selling for $100,000. The remaining $3,500 will be your remaining down payment. Again like the USDA program, you will be able to have the seller pay for up to 6 percent of the closing costs that you gain from the sale,” said Noye. FHA also ensures affordability by supplying lower interest rates. The rates are currently fixed in the low 5s.

The key article for couples and individuals who are considering purchasing a home is to have their questions and concern ready for their realtors, according to Tavenner. “We at Pillar Property Group encourage these potential buyers to think of questions or concerns of the properties we show. This will allow us be able to place them in the home they have always wanted.”