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Chesapeake Va Real Estate Development assists with Price Decline

Jul 19, 2008
Buyers are cleaning up at the expense of sellers in our Chesapeake Va market. One of the factors is Chesapeake Va real estate development. New homes are leading the charge in price reduction and incentives. It has been over thirty years since the last great real estate dip, so many people do not remember it.

I got very lucky, when the market started to decline, with selling one of my investment properties.I didn't make any money on that deal but I didn't have to bring money to the table to close either. The buyer got a real good deal and I cashed out without any loss. I didn't have to bring any money to the table to close like many people have recently.

Residential real estate continues to develop new sites even as inventories grow larger. Does that make sense? To the people feeding their families with this business it does make sense. As long as they can make a small profit or even break even until the market changes. Chesapeake Va real estate development is no different. Inventories increase and development continues.

Developments don't just pop up. It can take years of hard work to get them started. It can be a real struggle with all the permits, studies and ground work that the government requires.Therefore, they have little control over the market condition when their investment reaches the building stage. At that point it's do or die. Now they must build and sell. You can bet they are not happy about making less.

There are just not as many buyers out there right now. Yet many of them are lured to the new developments because of deep price cuts and increased monetary incentives. Buyers are not as worried about future price declines when they are getting deep price reductions and developers who pay most of their closing cost.

Real estate development has hurt the reseller market. Very simply it is very difficult for resellers to compete. The developers must sell or go under so they cut prices and offer other huge incentives, just to keep chugging along. Developers act fast to save their investment and jobs. Many resellers are still overpricing their property. They may not like it but many of them are competing against the new home market.

What to do, what to do. Resellers must be smart and think like their competition. First off it has to look like new if it isn't new. No excuse for poor condition. You must price you home aggressively. Remember short term hold high return is abnormal, and always has been for residential real estate. Compete with the developers by offering incentives like closing cost or creative financing for your buyer.

The pace of Chesapeake Va real estate development has slowed. Yet new units are added to the inventory. If your smart and look at what the developers are offering, you can compete with them. Be realistic in your approach. Aggressive in pricing and incentives and you to can sell your home.
About the Author
When you buy or sell any properties in the Hampton Roads market remember Chesapeake Va Real Estate Development makes a re thinking in your strategy. You can check out my Blog
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