Arlington Real Estate News

Interests: buying or selling real estate, Northern Virginia and/or DC
Appearance: looks nice (gosh, I hope that picture isn’t from 10 years ago)
Looking for: People who want to learn and/or find help through a real estate transaction
Preferred Method of Communication: fast track – email/text/call

This might be a match made in heaven!!!! When can we schedule our first date?

Ok, gut check. Before you jump into the car with a realtor you met online, you should take it slow. Wouldn’t want to give the wrong first impression…gosh, I digress.

I encourage people who contact me online to meet me for a cup of coffee or at my office to talk about their goals. I like to do a buyer counseling session to assess your needs/wants and educate you on the process, so that you’re always aware of the next steps in the process. If you’re thinking of selling, I like to meet in person at your property to have a look  at the condition, any staging tips I can pass along, or repairs. Only after I have seen the property can we talk about price.

But what if you’re not calling me for a first date? (I understand, we all make mistakes, but maybe you don’t like brunettes?)

Anyway…what should you expect from a first meeting with someone you met online? Here are some of my tips:

1. Do they actually sound like their writing? Do they appear to know what they wrote about…there’s probably something you saw that gave you a reason to call that particular real estate agent. If they don’t remember that post, they probably didn’t write it themselves.

2. Do they live in the area they blog about? This can be hard for people who write generically about a market, but if someone is blogging about Arlington County, you’re going to want to ask them if they actually LIVE in Arlington County.

3. Ask specific questions about real estate. There are plenty of resources online that will generate a slew of questions. Ask them! The agent is supposed to be the expert – can they answer questions in a way that you understand or feel comfortable? They should be able to communicate with you in a way that makes you less nervous and anxious.

Get a general sense for the person’s style. You can generally tell if you’ll get along in the first half hour to hour of a meeting. If there’s some chemistry, give it a shot.

The National Association of Realtors (NAR) does an annual survey of buyers and sellers. Their most recent profile, the 2009 Profile of Buyers and Sellers, says the 90% of buyers used the Internet in their home search. Of that 90%, 84% said that photos were the MOST useful/valued feature of a website.

84% looked at the photos and decided whether to go see that property

84%!!!!!!! Think of all those properties on the market right now that don’t have any photos…you’re missing a HUGE portion of the buyer pool out there from sheer laziness.  Here’s what I find the most common reaction to a property listed for sale that does not include photos:

1. What’s wrong with it?
2. What are they hiding?
3. We didn’t even look at the listing because there were no photos

Your house isn’t even in the running if there are no photos! People will immediately click on the next property because there was nothing that grabbed their attention.

Our local Multiple Listing Service (this is the National database with properties listed for sale, otherwise known as the MLS) is called MRIS. As Realtors(R) we can upload up to 30 pictures per house, plus a virtual tour. That means interior, exterior, neighborhood, amenities, floorplans, etc. Anything that will help SELL your house!

Seems like common sense, huh? You’d be surprised at how many properties don’t have photos. Something so simple, yet so huge! That’s my trick for the day As an example, check out the recent photos from my new listing in Arlington: The Weldon, Unit 205.

The FHA is a tease. Yes, I said it. You’re a tease. You tempt buyers by flashing a mere 3.5% down payment and interest rates below 5% (at the time of this writing), but then you go and pull the rug out from under everyone!

The FHA has now decided to tighten lending on condo buildings (not one area specifically, but all condos in general). The guidelines apply to buildings that never went through the full approval process before. There’s a site both real estate agents and lenders can check to see if a building has been previously approved, but this too is a tease as it’s only available from 8am – 9pm M-F (did you know websites needed beauty sleep?). But it’s important if you’re looking at condos and only have 3.5% down to keep this new policy in mind. There are some buildings that we know have previously been approved for “spot approvals,” where the lender at the time got the unit approved, but never went through the motions of approving the entire building. Much easier than now!

So what you need to know:
-The process will take at least 2-3 weeks just to get an approval on the building. That means you still have to wait for an appraisal to be done after that point, and you’ll risk paying for a home inspection in the process.
-A 30 day close is highly unlikely.
-The paperwork collection and process can be quite pricey, several thousands. There are some lenders who will absorb this cost for you during the process.
-If the investor ratio is too high (the building must be at least 51% owner occupied), the project is toast!

Before you get nervous that this will kill your goal of buying a condo, call me. I’m half-way through the process of getting a building in Clarendon approved thanks to Dominic Turano and Laura Pede at Wells Fargo. Wells Fargo is able to turn these around in 5-6 business days from the time they get all of the paperwork they need – they’ve been fantastic!!! If all else fails, they can sometimes do a 5% down payment, so we can try to find a way to work around it!

If you’re interested in finding out if your building is FHA approved – call or email me! We’ll figure out a way to work around the problem without getting your hopes up.

So strictly speaking for Arlington County (the answer will differ for Montgomery County and the District), let’s talk about whether condos always have parking and/or storage units.

In Arlington, it’s very common for units to come with 1 parking space deeded to the purchaser. At some point all of these condo buildings were brand new and the builder decided whether the units would be sold with parking, or if parking would be an additional cost. In *most* cases for mid to high-rise condo buildings that have garage parking, most units have at least 1 spot. Some units that are being sold with 2 parking spaces paid an additional $30-$40k per spot. There are SOME units that do not have ANY parking available, so it’s important to be mindful of that when looking at units. Sometimes there are spots available to rent or buy from individual owners, but you’ll have to pay that in addition to your mortgage amount.

Now some condo buildings that have parking lots, rather than an underground garage parking, have either assigned spots or open parking. Usually permit required parking.

Storage units however are a different story.  Generally speaking, storage units were almost always an additional cost because few were built. This is where I get to show off my Economics Degree – supply was low, and demand is high…do we need a chart? No, I didn’t think so either. Usually storage units go for about $5k, but they can vary on size. They tend to be 5×5 spaces of chain link and a lock. Good for random junk you don’t want in your condo.

Both of these things effect pricing so keep that in mind when evaluating different units.

There are a lot of ways to get out a real estate contract, both as a buyer and a seller, but unfortunately, termite damage is not one of them.

Termites are wood destroying insects that damage the house and/or garage of a potential property. For a full list of pests and termites, visit Barrier Termite and Pest’s website.

Who should get a termite inspection? Anybody buying a detached/single family property, a townhouse, or a condo unit on the 4th floor or below.

The Sales Contract for Virginia (and the same applies to Washington, D.C. and Montgomery County/PG County Maryland) says that the buyer can either pay for a termite inspection and select their own company, or ask the seller to pay for an inspection and give them the right to choose the company.

Either way, if any visible evidence of active termites and other wood-destroying insects are found, repairs/extermination/treatment will all be made at the Seller’s expense.

That’s it. It does not give you the right to void solely based on the presence of termites. That’s why I recommend doing the termite inspection at the same time, or during the home inspection contingency period. It covers you in case it turns out that the termites have made more of a presence in the house than the current owners. Ick.

A townhouse enclave of just 32 units built in 1996. Located along the 2000 Buchanan Block in Arlington, VA 22207. Units have a 1 car garage. Dorsey Woods is located about 1.5 miles from the Ballston Metro along Lee Highway.

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So, a few months ago I told you guys I was done with blog redesigns. Well, I showed up to a home inspection today for a buyer who found me using my blog and was greeted with “You changed your blog again! I don’t really like it.”

Well, she’s now been upgraded from “buyer” to “Director of Blog Design.” So I am hoping this is it! Blame her!!!

So now let’s get back to talking about real estate…

So you wanna buy a foreclosure, huh? Let’s go through the process of how a home becomes a bank-owned property and then we’ll go over tactics.

First, if a homeowner decides to try and short sell a house it’s placed on the market, subject to 3rd party approval. If that home doesn’t sell as a short sale, the bank will auction the house on the courthouse steps at a Foreclosure Auction. The bank opens up the bid at whatever is owned on the loan (depending on who the foreclosing bank is, either 1st or 2nd lien holder, etc.) A trustee announces opening bids, and if no 3rd party person buys the property (say you or me also bidding at above the banks opening offer), the bank buys it for their opening/initial bid. It is now a bank-owned property (commonly mistaken as a foreclosure). It’s also referred to as “real estate owned” or REO property. It’s then assigned to a Realtor who handles bank-owned properties to place on the market at fair market value.

When the bank and the real estate agent representing that bank determine the market price, they’ve done extensive research into the market and where the pricing is. They then take that number and adjust it based on a few factors: if repairs need to be done and the bank doesn’t want to pay for them, they may get an estimate and slash the price accordingly. Another tactic would be a “fast sale” or a sale that’s 2-3 times faster than a normal property – they adjust the price accordingly, usually about 10-15% below market value for the property. So while the bank may be across the country from the actual house, they have many, many, MANY points of reference for the market and the value.

So now let’s talk tactics for making an offer:

1. The bank is not an emotional seller. They won’t be “offended” like other sellers if the offer is “too low.” However, with that in mind, making a realistic offer is more likely to get you a better deal. You’ll know when a property is priced well or even below market, and so will everyone else. Realize you won’t be the only one interested so you’re going to have to make your offer more attractive than others.

2. If you offer a low price, expect the bank to counter. (I had a client who offered $50k below list price, and the bank countered only $2k below list.) Keep in mind their negotiations are completely driven by their bottom line.  Their counter will be based on that, not by your offer.

3. Bank owned properties are sold “as-is.” You can write in a period for a home inspection (and I always recommend buyers get one.) I would recommend you do it with the right to void (give yourself an out, but still get the information you need.)

4. Banks have an addendum usually about 16-20 pages of total legal mumbo jumbo about how the bank makes no representations about the condition of the property, you assume risk, etc. etc. It’s their protection – just in case. It’s important to have someone else read this addendum (a Realtor, an attorney, etc.) who knows what to look for….for example, is their a “per diem” fee if the deal closes late? is there a stipulation the buyer pays both the recordation AND transfer tax? These are questions you may not know you need to ask, but to us, it’s stuff that jumps out as a negotiable item. Also, keep in mind some of the things those addendums describe are not legally enforceable in some of our states. They’re general documents sent to anywhere they have assets.

Have more questions about the process? I’m happy to answer any questions….703.283.6120 or Contact Me.

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We all know the local headliners on today’s real estate section of every newspaper, it either says “what a great time to buy” or how lousy the market is these days. Well from a Realtors(R) perspective, the real reason your house isn’t selling may have nothing to do with the market or the house, it may just be you.

Some tips to getting your house sold that have nothing to do with price:

• Do you make it easy to show? Make reasonable accommodations to get agents and their clients in to view your property. If we have to try on 3 separate occasions to schedule an appointment, chances are the buyers will move on to something else and assume you don’t really want to sell your house.
• Did you leave when the agent came by with clients? It’s awkward enough to be opening closets and bedrooms without the sellers home, but when you’re there, watching the buyers every move you’re not allowing them to emotionally connect with the house and see their furniture in your house, because all they see is you! At least go outside if you have nowhere else to go – it’s a great opportunity to get some exercise and take a 15 minute walk.
• Did you clean before you left? Please do your dishes…and flush the toilet. ‘Nuff said.
• Please treat every negotiation with a “time is of the essence” mentality. In my opinion, it’s a reasonable expectation for some kind of move within a 24-48 hour window. If you need more time, many parties are understanding of circumstance, just please be open with communication. It makes everyone more willing to cooperate.

New year, new start! We last left off looking at the 2009 end of year wrap up – low inventory levels, prices were starting to creep back up, and even the condo market was starting to rebound. So how did that translate into market activity in January 2010?

Overall, Arlington County saw an 18% decrease in days on the market (things were selling, on average, in about 66 days), but the real news comes in Average Sale Price, which is UP 6% from 2009. (insert thumbs up here! where’s my “like” button?) There were 136 properties that sold in January; 7 of those were short sales and 9 were foreclosures/bank-owned properties. In 2009, there were 121 sales, of which 5 were short sales and 10 were foreclosures.

Here are the average net sales prices and average days on the market for Arlington County:

Studio Condos
N. Arlington: $143,667 in 58 days
S. Arlington: $107,000 in 34 days

1 Bedroom Condos
N. Arlington: $343,066 in 47 days (range: $250,000 – $644,500)
S. Arlington: $203,647 in 79 days (range: $101,325 – $304,000)

1 Bedroom with Den
N. Arlington: $352,250 in 51 days (range: $291,000 – $415,000)
S. Arlington: $222,868 in 68 days (range: $114,835 – $300,000)

2 Bedroom Condos
N. Arlington: $597,929 in 72 days (range: $435,000 – $1,400,000)
S. Arlington: $360,955 in 121 days (range: $170,000 – $550,000)

Townhomes
N. Arlington: $569,986 in 10 days (range: $483,181 – $707,000)
S. Arlington: $356,961 in 37 days (range: $205,000 – $484,000)

Single Family Homes/Detached
N. Arlington: $803,440 in 74 days (range: $515,000 – $1,509,900)
S. Arlington: $405,116 in 36 days (range: $175,000 – $672,000)

Keep in mind, averages only tell part of a story. You can see on most of these categories the range is very wide. There are many factors that go into determining the market value of any individual property. If you’re curious what your place is worth, ask me!