(Newswire.net — November 1, 2014) Chesapeake, Virginia — The founder of FairCashOffer.com Alex Joungblood has been helping homeowners looking for a cash offer on houses in Virginia Beach and the surrounding area for the past ten years. While the Hampton Roads market is still recovering from the real estate crash in 2008, there are still a lot of under priced houses sitting on the market. Unfortunately these homes continue to bring down the prices of the homes in their immediate neighborhood. This leaves many investors in a state of uncertainty and asking themselves, should we buy houses? According to Lawrence Yun, NAR chief economist, cash home sales are on a negative trend. Yun states, “There was a marked decline in all-cash sales from investors….” Yun notes a 1.8% decline in cash sales in August 2014. Yun seems to believe that cash for houses investors fear the Federal Reserve will raise interest rates soon. If the Fed moves in this direction it would directly affect the cap rate at which investors base their returns. A higher cap means less money in the investor’s pocket and thus makes it a less attractive investment vehicle. Because all cash investors are pulling out of the market the housing inventory has increased. Unfortunately, this leaves homeowners looking for a quick house sale dealing with the effects of increased inventory in an uncertain market.
Locally speaking, RealtyTrac market summary data reports that home sales in Virginia Beach for July 2014 were down 8% compared with the previous month, and down 28% compared with a year ago. This is directly in line with Yun’s national analysis regarding the strategic move of all cash house buyers. This means that investory are less likely to pay cash for houses in Virginia Beach in the upcoming months.
The law of supply and demand comes into play. Whenever there are more properties than buyers the natural occurrence is that it will take longer for properties to sell. This is referred to as the absorption rate of the market. The Real Estate Information Network data confirm this by reporting that the monthly supply of homes in Virginia Beach has trended upwards towards the 7 month mark. This means that a homeowner can expect to wait 7 months and even longer to sell their home in Virginia Beach.
The current national market time to sell a house is 5.5 months. When a homeowner intends to sell their home fast, they simply cannot wait the usual timeline required when putting a house on the market. When a house is sold conventionally a homeowner can expect to have their house shown multiple times, potentially dealing with expensive repairs to please a picky buyer. It also needs to be noted that a ratified contract on the table it does not mean the sale of the house is ensured. There is a chance that a conventional buyers financing might not go through altogether leaving the seller in a tight spot. Real estate agent commissions and closing concessions are costs not often anticipated in selling negotiations. Many times these added costs and commissions prevent homeowners from putting the house on the market. A homeowner does not have to worry about any of these hassles when We Buy Virginia Beach houses steps in which makes them a great service to the real estate community.
About Fair Cash Offer
The company FairCashOffer.com sponsors highly educated, locally focused team members who care about family and specific reasons for needing to sell any house fast. Instead of placing a house on the market and waiting for an investor who buys houses in the area, this company has been able to remove the hassles of selling a home, completely eliminating any costs or commissions that come from dealing with an agent. They understand that each situation is different and strive to achieve a win-win scenario. FairCashOffer.com adheres to the same standards as the Better Business Bureau. Their message is that “We buy Virginia beach houses!” and they commit to offering sellers looking to sell their properties “AS-IS” an all cash offer in writing with no hidden fees or commissions. Contact Alex Joungblood for further information using the information below.