Real Estate and the Coming of Amazon HQ2
Real Estate and The Coming of Amazon HQ2
In November of 2018, Amazon announced the Crystal City/Potomac Landing area of Virginia as its chosen location for HQ2. Additionally, Virginia Tech announced that it will build a cutting-edge technology center next to the new Amazon HQ2. These announcements impact real estate in tangible ways and the repercussions should be taken into consideration if you are planning on buying or selling in the area surrounding the new HQ2 and VT Campus. What do these two announcements mean for a buyer or seller of real estate?
Everyone, including real estate investors, wants a piece of the real estate action in Virginia.
Buyer - If you are planning on buying, it will be more competitive. A buyer will be competing with investors and other buyers who are just as or more motivated to move into the market. The competition isn’t just for residential purchases as commercial transactions are expected to be just as competitive. Buyers should be prepared to potentially offer more cash to incentivise a deal, especially in a multiple bid scenario. For a buyer trying to enter the real estate market surrounding the new Amazon HQ and VT Tech Campus, a good agent can be your best asset. An agent can help a buyer craft a very competitive and knowledgeable offer, thereby increasing the chances of the offer winning in a multiple bid scenario. A good agent can also help find properties that have not hit the market yet or can advise a buyer whether they are potentially paying too much for a property in a scenario where there is an escalation of the proposed price. They key takeaway for a buyer is that they must come prepared if they do desire to own real estate surrounding the new Amazon HQ & VT Campus.
Seller - The big question for a seller is whether they actually do want to sell or hold out for as long as possible for their property value to increase. A savvy seller will know that they can maximize their profit right now. With the influx of business that will surround HQ2, people are moving to the area in droves. Everyone, including real estate investors, wants a piece of the real estate action in Virginia. Commercial and residential sales are expected to increase and as such, a savvy seller knows it is their market. This very much increases the competition for buyers and creates a sellers market.
Ultimately, Crystal City/Potomac Landing is poised to become a real estate and business hub. The hot market is a boon for home sellers and is hurting buyers, especially those seeking low-priced starter homes. Over time, it will be interesting to watch how displaced residents change the demographic in Northern Virginia. The bottom line whether you are a buyer or a seller, is get a good agent who knows what they are doing and can help guide you through what will probably be a very competitive process.