Selling properties at above $700K

November 26, 2012

Even though the housing market in general is picking up pretty well in the Greater Washington DC market, properties priced above $700K 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 between $120K-150K 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 $700k house, 20% down payment will mean $140,000 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.

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