1. Are you ready to be a homeowner? When something breaks, you’ll have to call someone to come fix it and pay for it. No landlord. How about maintaining the property – annual termite treatments, changing your HVAC filter every 1-3 months, annual HVAC service, etc.? If you said yes, continue on to #2.

2. How long do you see yourself staying in the property? If it’s at least 2 years, you’re may be eligible for capital gains exemptions (Disclosure: I am NOT a CPA nor do I play one on TV. Please consult one for more accurate tax advice. End required legal disclaimer.) That being said, if you stay less than 2 years, you’ll most likely lose money just on commissions and transfer taxes alone. You can always consider the possibility of renting it out if you have to move unexpectedly.

3. Is it cheaper to rent or buy!? The heart of the matter. As an example, take a look at typical rents around Arlington for a newer 1 bedroom condo:
Ballston: $1,800
Clarendon: $2,050
Rosslyn: $1,850
Crystal City: $1,700
Shirlington Area: $1,370
Fairlington Area: $1,350

Now look at average sale prices for a 1 bedroom in the same areas:
Ballston: $367,000
Clarendon: $385,000
Rosslyn: $355,750
Crystal City: $328,310
Shirlington Area: $275,000
Fairlington Area: $285,000

Let’s Compare the Clarendon Example Using the NYTimes.com Rent v. Buy Calculator

Assuming an average annual appreciation rate of 4%, the national average, and the minimum FHA down payment of 3.5%, you can see it’s better to buy if you plan on staying there for at least 3 years.

I encourage you to play with the calculator using the numbers above to see if you’re surprised at where your potential break-even point is. Obviously average sale prices and average rents are just price points to be used for comparison, but there are cheaper places to rent/buy and more expensive places to rent/buy, it all depends on what is right for you!

Also, I used 1 bedroom condos as examples. If you’re interested in more details about larger condo units, townhomes, or houses, i’m happy to provide that information for you. Just ask!

Need help figuring it out? Let’s talk.

As you can see, all of these properties sold within the first 30 days, and most sold within a week. There is currently a lot of development going in Clarendon, along with new stores and restaurants opening daily.

If you’re interested in learning more about Clarendon and the Arlington market, email me! Or you can search

Clarendon Condos for Sale

Clarendon Townhomes for Sale

Clarendon Homes For Sale

When: 9am – 2pm

Where: Kenmore Middle School, 200 S. Carlin Springs Road, Arlington

There will be exhibitors including real estate agents, lenders, property management companies, insurance, and government officials.

For a full list of class schedules, click here.

I will NOT be there, but you can read my posts on things to know as a first time buyer here. Or feel free to email me with questions!

April 1 -8: 86
April 9-15: 95
April 16-22: 107
April 23-30: 104

Total Properties Under Contract in April 2010: 392

Compare:
April 2010: 392 v April 2009: 287
March 2010: 315 v March 2009: 222

Strictly looking at the numbers…it’s hard to deny that the market is picking up and/or that the tax credit played a part in that. A more interesting number? Of the 392 properties in April, 337 were under $800,000 (the price limit to qualify for the tax credit).

So where does that leave us? Inventory is down to 765 active properties (as of 10:45am this morning). Last year, active inventory was just over 1,000 properties. That means we’re down 25% in inventory levels. The market will take some time to recoup and bring inventory back to a level where we’re balanced again…because remember: when supply is down and demand is up…prices go up.

NOTE: Military personnel, both active and retired, are still eligible for the $8k Tax Credit. The deadline for military is April 30, 2011.

Generally speaking, when you’re house hunting, you will be looking at the following:

• Layout and Floorplan – where would your furniture go? is this big enough? does it have the space you need to live and build your life?
• Does it require certain changes or upgrades to make it your future home?
• Where would your car go, if appl.?
• Location – is this where you want to be?
• etc.

Now as an agent, I have different concerns when we go look at a house together. It’s my job to make you aware of certain points of interest:

• Do I see anything suspicious? Does it look like any work was done without a permit – i.e. code violations?
• Do I see anything that would prohibit your loan approval – i.e. mold, exposed wiring, code violations.
• Do I see some cracks in the wall that appear to be of concern (and something I would point out to a home inspector and/or structural engineer)
• After seeing the inside, does it appear to be priced appropriately? I am of the opinion you can’t truly put a price on a property until you see the inside and condition.
• Sometimes it’s something as small as (but costly) tree roots in a driveway that may be growing towards the home

These are things that you may not be aware of or think about when you’re blown away by the decorations, or looking for your first house. Depending on what you’re looking for, some of it may not matter anyway, but it’s nice to know someone’s looking out for you best interest, isn’t it?

Photo Courtesy of Flickr: saturn_art

Sometimes I notice myself using Realtor speak in conversations and I often have to stop myself because some of it may not make any sense! While I have a full Real Estate Glossary for you to read, if you need reading material for those nights you can’t fall asleep, this is more of the industry slang and jargon you may see written and overhear. If I missed anything, feel free to comment and i’ll add it, or you can email me!

Listing: The specific property that is on the market for sale (“listed for sale”)

Listing Agent: The real estate agent who represents the SELLER

Selling Agent: The real estate agent who represents the BUYER

REO: “real estate owned” aka a foreclosure or bank-owned property

MLS: “Multiple Listing Service” aka the database that holds all of the properties for sale (or locally, our MLS provider is MRIS)

Broker: Can mean 2 things: a general broker is the company I am with (ex. Keller Williams Realty, Long and Foster, Remax, etc.) or an “associate broker” is someone who passed a written test to add another credential to their resume (in Virginia, in order to sit for the exam, you have to be licensed for a minimum of 3 years)

CMA: “Comparative Market Analysis” the document a real estate agent provides to you to show the current value of your home, based on the active/sold/pending properties in the market

FSBO: For Sale By Owner – someone who will likely end up listing with an agent later on because it’s far too hard to do it on your own (just sayin’….call me)

Needs TLC: read – needs work/updating

Curb Appeal: the idea that if your house looks like crap on the outside, people will assume it looks like crap on the inside

Pocket Listing: a secret listing that may or may not be publicly listed for sale, but could be sold if the right buyer came along

Who lives here/What Type of People Live in this Neighborhood/Are there a lot of kids and/or families/What Neighborhood do you think I should live in? All questions that will make me lose my real estate license if I answer them. Sorry!

Editor’s Note: Thanks to Heather DeDona – The TriadAgent in Oak Ridge, NC – for this addition:

HUD: “Housing and Urban Development” When referencing a “HUD” listing it is a government owned foreclosure.

Ok, ok, so all joking aside, there are a lot of different terms thrown around in every day language between agents that’s different from the way we phrase things with you as a buyer or seller. If any of it doesn’t make sense – STOP AND ASK!!!! Don’t google it, ask. That’s what we are here for!

Let me explain.

In all honesty…I don’t really care what you buy. I don’t care if it’s a house, a townhouse, a condo, new, old, white, black, purple, tear down or a mansion. I. Don’t. Care. What I do care about is that YOU LOVE IT. That YOU are happy with it and that you can picture building a life in the property. I think my clients hate when I say this, but it’s true…i’m not the one that’s going to be living there!!

Think about it – I live in a condo in Arlington…I live near a fire station and I have 1 parking spot. You might shudder at the thought of that. I have a balcony. You might want a big yard. We all have different lifestyles, and I, as a licensed Realtor(R), am no different. If I asked YOU what you thought, you may tell me I’m crazy! But for me, a condo works.

As a real estate professional, here are the things I CAN guide you on and issues on which you want my opinion:

1. Price
2. Resale Potential
3. Property Condition (i’m not a licensed home inspector, but I do know what may be a red flag on an appraisal, or something that appears to be an obvious problem – ex. mold, water damage, etc.)
4. Keeping you in line with what we initially identified as your ‘wants v. needs’

Please don’t mistake this for apathy. If you ask almost ALL of my past and current clients, they will tell you I care (a  lot). But mostly I care that you’re happy with what you purchase, the price you pay, the customer service you receive during and after the transaction.

Once you pick a property you want to write an offer on, we write the contract to include certain “contingencies.” Contingencies come with deadlines based on the date your offer is accepted by the seller (in the DC, Virginia, and Maryland, we call this the Date of Ratification). You don’t perform any of these inspections prior to contract acceptance (unless we’re in a very particular situation where you may be competing against a pile of other offers). Once all of these contingencies are met and released, you’ll proceed to settlement, where you’ll receive the keys and be official new homeowner!

Maybe this will make it easier:

Now keep in mind, this overview ONLY includes the steps you do with ME as an agent. On the side you’ll have to complete a loan application once you select your lender, comply with all of their requests for paperwork, credit check, underwriting, etc. Also during this process, once you select a title company or real estate attorney to represent you, I will send them a copy of the contract to get started on the title work to make sure there are no problems with the title report of the property. But as far as YOUR responsibilities as the buyer, the overview above is what you need to focus on!

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 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.