Selling properties at above $1M

Even though the housing market in general is picking up pretty well in the Greater Washington DC market, properties priced above $1M still post a challenge in many neighborhoods. There are a few reasons for this. First, the target market for properties in the upper brackets is much smaller. The household income has to reach a certain level in order to qualify for mortgage. The income range will be around $200K depending on debt-to-income level, amount of downpayment, credit score and loan terms. The down payment requirement is much higher as well in absolute financial terms. For a $1M house, 20% down payment will mean $200,000 plus closing costs. Most people who purchase properties at higher bracket will need to unload their existing home to come up with the downpayment for a new purchase. All these said, if the property is priced right, shows well and is located in a desirable neighborhood, it will receive offers. Sellers just need to be a bit more realistic in terms of the length of time the listing will sit on the market.