Roll Up for the Magical Mortgage Tour!

By Richard Barrington
Local Lender Columnist
Jun 17, 2008
You have to get creative to sell into an out-of-favor market, and that is exactly what some real estate agents in Northern Virginia are doing. Agents are hosting bus tours of foreclosed properties in Fairfax, Loudoun, and Prince William Counties hoping to revive interest in Northern Virginia's slumping real estate market.

This could be a good sign for bargain hunters looking to take advantage of low interest rates and falling housing prices in the wake of growing mortgage problems. These problems are not unique to Northern Virginia, of course, as rising mortgage foreclosures have thrown off the supply-and-demand characteristics of the national housing market.

Signs of a Buyer's Market

The bus tour is just one more sign that this is a buyer's market for real estate. It's not just that home prices are coming down; there are other indications that sellers are bending over backwards to court potential buyers.

This can take the form of outreach efforts like the bus tour, designed to coax buyers back into the market. Besides trying to attract initial interest, sellers and real estate agents are also likely to be more accommodating when it comes to closing a deal, and this is where the buyer's market can bring its most tangible rewards.

Besides having the upper hand when it comes to negotiating on price, buyers may find sellers eager to make other concessions, from paying closing costs to upgrading appliances.

Low Interest Rates Already On Board the Buyer's Bus

Another factor that has come board in recent month is lower interest rates. Thirty-year mortgage rates recently fell below the 6.0% mark, a fairly low level if history is any indication. These lower interest rates represent substantial savings over the life of a mortgage, yet another reason why this is shaping up as a buyer's market.

Source:
Richmond Times-Dispatch

About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.