Let's Talk Real Estate!

The Good News (for a change) about the Arlington Market!

from Lisa Young

As we brace for the holiday season the real estate scene is usually pretty quiet. Our office, however, is busier than ever! We are thrilled for the business but slightly perplexed by it as we, like many of you, watch the news and worry about the future.

The market may be better explained as a "Tale of Two Markets" with things inside the beltway looking quite different than those outside the beltway. To better understand what exactly is going on, I turned to raw data provided by the Metropolitan Regional Information Systems (our local multiple listing service).

In its 3rd quarter report, prices are only slightly down from the same time last year inside the beltway while days on market (total days a home is listed for sale prior to getting a contract) are steadily declining. Also of key significance, the 'for sale' inventory is down as more buyers are taking advantage of favorable interest rates and fewer homes are being listed for sale.

Outside the beltway the numbers are different, and as gas prices remain a mystery, buyers are opting for shorter commutes making the Arlington market more and more attractive. All this combined with a tighter and more expensive rental market, sturdy local employment conditions and a projected population increase point to a much more favorable year for our sellers in 2009, or at least a more even market.

The bottom line is that there is still a fair amount of uncertainty about the economy and there are, no doubt, many, many potential buyers still watching from the sidelines. The trick is to be ready when they are finally ready to commit. 

(Information gathered from MRIS "Trends in Housing at 3rd Quarter 2008" and is deemed accurate but not guaranteed)

It's Time to Get Off the Fence!

As the economy tanked, and the election rhetoric soared, I stopped blogging. It's hard to share news and ideas when the landscape is shifting every day. And even though nothing is any clearer now (to me) than it was 8 weeks ago, it's time to write about it anyway.

We sent out our Autumn newsletter in late October. In it, we listed 9 properties we had for sale; since then two have gone under contract, but I'm going to write about about the original nine. One was a condo, one a townhouse, seven were single family homes. One was new construction, two were total renovations. Prices ranged from $315,000 to $1,499,999.

The point I'm trying to make is that there are great homes on the market, in good condition and well priced...today's buyers have plenty to choose from. Yes, money is tight with a capital T, but it's fairly cheap and if you've got 20% to put down, you're GOLD in today's market. If you're short on cash, but have a credit rating that's high (720+) you can look at FHA loans. They make you jump through a lot of hoops, but they still make loans with only 5% down, and gifts from your parents can help you with your cash up front needs.

Although you may not make the killing in this market that people did during the boom, putting your money in real estate is still a sound investment, if only for the tax breaks. Additionally, you have a home of your own to decorate, improve, and enjoy while your investment grows.

So if you've been waiting to make your move, this is a pretty good time. Go to some open houses, search online in neighborhoods you like, pick up the phone and give us a call. We'll be happy to help you dive into the real estate market.

Karen

10 Questions Buyers Should Ask Home Inspectors

During the boom years of 2002-2005, home inspections had all but disappeared from real estate sales contracts. Now that buyers have more leverage, home inspection contingencies are very common. Be sure to ask these questions when you schedule your inspection.

1. Will your inspection meet recognized standards? The inspection should meet all state requirements and comply with standards & a code of ethics such as the one adopted by the American Society of Home Inspectors or the National Association of Home Inspectors.
2. Do you belong to a professional home inspector association? Insist on membership in a reputable, non-profit trade organization--ask to see an ID.
3. How experienced are you? How many years in the business and how many inspections completed. You can also ask for customer referrals.
4. Do you stay up to date with continuing education in the field? Older homes or homes with unique elements (solar panels, radiant heating, etc.) require additional training.
5. Is residential inspection your specialty? Commercial buildings and construction sites are very different. You're looking for an inspector who has experience in residential sales.
6. Will you offer to do repairs or improvements? Some states allow this and some forbid it as a conflict of interest. Click through the link above for requirements in your state.
7. How long should the inspection take? Generally, inspecting a single family home (SFH) will take 2-3 hours; less is probably not thorough enough. This is one step that you don't want to rush through.
8. What will the inspection cost me? This will depend on your region, the size and age of the home, sometimes the listing price. The national average for a SFH is about $320.
9. What type of home inspection report do you provide? You can ask to see a sample to determine if the inspector's style is easy to understand. You should receive your full report within 24 hours.
10. Can I attend the inspection? The answer should be Absolutely Yes! A good inspector will educate you on all of your new home's systems -- how old they are, how well they've been maintained, and when you should plan on replacing them (think roof, HVAC, fireplace).

Your Realtor should attend the inspection with you (we always do!). A good Realtor will make sure that all of your questions are answered to your satisfaction, and will usually ask some of their own. One more set of eyes watching out for you is never a bad idea. 

The Latest from Laura - Is a Housing Recovery on the Way?

How nice it would be to say Yes. Instead, the answer is that it all depends. Market success and failures are zip code specific. The media reports national news, so be careful not to paint your house (or your zip code) with the same brush the media is using.

Our market in the general Washington DC area has strengths and weaknesses. The strong markets remain the usual suspects: Washington DC, Arlington County and the City of Alexandria. Fairfax County is too large to generalize; the closer in, the better the market. Given the climbing costs of transportation, those areas will continue to perform well, and will likely enjoy an early boost of price appreciation.

Inventory is key to turning the housing market around. High levels of inventory favor a buyer's market and lead to aggressive price negotiation. Building permits continue to fall and eventually housing inventory, both re-sale and new construction, will shrink. When that happens, we will start to see the recovery of the housing market. Earlier this year, some economists belived that the second half of this year would show real improvement. That optimism has been revised to late this year.

In my immediate experience, there is strong buyer interest in our real estate market. Most buyers are slow to act, and feel anxious that the market may continue to decline. If you plan to stay in your home for at least 4-6 years, then I believe you should consider buying a home. Longer than 6 years is a no-brainer; our market will improve and we will see price appreciation.There is no doubt in my mind.

I believe we are at the bottom of our market in the DC region, as we have already seen the closer-in communities improving. If you would like to discuss your particular situation, or review a value analysis of your home/community, please give me a call. I'd be more than happy to bring you up to date.   

From Coral: Banks...Can They Help Themselves?

Back in December, I had a buyer who was interested in buying a short sale property--that is when the owner owes more than the home is now worth, can't make their payments, and is trying to get the bank to accept the sale at a loss.

The townhouse was listed for $399,999 and my purchaser offered $370K with $11K in closing assistance. We were almost instantly verbally countered by the bank, Wells Fargo, for $377K with $11K back in closing and we verbally agreed. Six very long weeks ensued of being promised we would get something in writing from the bank. Literally every day we were told a new story on why we were not getting the counter in writing, but were assured by our WF contact and the listing agent that this deal was "99% sure to go through."

My buyer and I kept an eye on the market, and eventually started looking for another house to buy. Finally around the end of the sixth week, they rejected our offer, citing some comparable sale that was over $400K. No counter offer, no bottom line, just a rejection.

My buyer has since bought another home, directly from a seller, and has been happily settled for about two months now.

I've kept track of this little townhouse ever since, and see now that it is listed as a foreclosure, with a contingent contract. Listed price: $339,150. Seven months have passed since my buyer originally wrote his offer in December. We were originally going to settle on January 21. That's five months of higher mortgage payments that the bank could have been receiving, rather than 5 months of losses, ending in a price that is sure to be around anywhere from $30K-$50K lower than what my buyer would have paid.

I am not sure what the moral of this story is, other than the banks got themselves into this mess and are having a really hard time getting themselves out. Anyone have a positive short sale experience? Please share!

The Green Corner by Michelle Sagatov

Some Things to Make your Home a Little Greener

Indoor plants: Some recent studies (including one from NASA) have shown that particular plants can help to improve your indoor air quality. Bamboo palm, Chinese evergreen, Gerbera daisies, English ivy and Peace lilies are among the list of beneficial houseplants.

Window coverings: Try using natural materials and heat reflecting window treatments. Some eco-friendly sustainable window coverings include those manufactured from high quality rapidly renewable grasses, reeds, bamboo, hemp or other cellulose fibers. When you replace curtains or blinds, keep these green choices in mind.

Low-Flow fixtures: Replace your toilets with low-flow (1.6 gallon) and dual flush toilets, and put low-flow faucets throughout your home. Just replacing a shower head can save from 3 to 28 gallons of water for a 5 minute shower!

Hot water heaters: Go with solar water systems or tankless, on-demand water heaters. The solar heaters use the sun so your energy costs are non-existent, and the tankless heaters only heat water when you need it, removing the constant energy loss associated with a standard hot water heater. Plus, you never run out of hot water.

Mattress: Naturally flame retardant wool and cotton mattresses and futons used with organic linens allow for air circulation and a healthier sleep environment. Take a look at some of the offerings the next time you're in the market for a new mattress.

Lighting: Increase natural light (let the sunshine in!), and make the switch to compact fluorescent bulbs and energy star fixtures.

Furniture: Green furniture is getting easier to find everyday. Sustainably-grown solid wood furniture with non-toxic finishes, organic fabrics and natural cushioning materials are kinder to the environment and to the health of your family, too.

Flooring: Use natural fiber area rugs in combination with non-toxic flooring materials.

Appliances: As your appliances age, replace them with Energy Star rated models. You'll be helping to save the planet, cutting your energy bills, and sometimes even getting a tax credit.

Cleaning products: The aisles of your local grocery store are filled with alternative cleaning supplies: non-toxic, fragrance-free products; and you can always look into old-fashioned (but effective) homemade methods.

From Coral: How is your Credit doing these Days?

Do you even know? Nobody's perfect. Things happen and bills go in late, get lost in the mail, eaten by the dog, what have you. But if you want to buy a house, you need to make sure those things are fixed. And not just with the person to whom you owe money, but to the three major credit reporting bureaus: Equifax, Experian and Trans Union. My FICO.com is a great place to start.

Even when you resolve an issue with a creditor, you need to make sure that they have resolved it with the credit bureaus. And if you want to buy a house, you are judged by your credit score. Yes, your income and assets matter. But if you have spotty credit history, get prepared for some very personal questions.

So, if you pay a bill late, immediately call the creditor and play nice. Beg, plead, and give all kinds of personal reasons for why it was late, promise to never do it again, and then ask them if they can please not report you to the credit bureaus. If they have already, and agree to "forgive" the late payment, you need to file a dispute with the credit bureaus.

If you have something long standing that you delayed paying, like taxes, and it's on your credit report, don't assume that once you've paid it , it has been taken off the report. Sometimes you have to ask several times.

This has happened to me personally: a credit card I had paid off was simply not removed from my credit report. It showed a full balance and a monthly payment that did not exist. I had to call the creditor and say "please take this off my credit report." And then they did.

The most important thing you should know is this: You are the only one who will look out for your credit. Check it once or twice a year and resolve any issues on it, big or small. There are almost always mistakes, and it's your job to clean them up. If you're diligent about this, then when you need for your credit to be stellar, it will be.

ANTS, ANTS, Little Tiny Black Ants!

I wanted to write something "fun" for the Blog today but little, tiny, black ants have invaded my kitchen - my life - even my dreams for the past couple of weeks.  They say it is best to write about something near and dear to produce a quality product, so, I am writing begrudgingly about ants.  On a more altruistic level; however, I am providing ammunition to you the reader, if not to totally wipe out these pesky buggers - at least to keep them somewhat at bay!!!  You won't believe this - one of the peskies just walked across my "ant" reference paper.  He rode upstairs to my computer room by my very own hand!  I squashed him and immediately went back to typing.

Here is my ant story.  I wake up one morning, go to the kitchen for my morning cuppa, and what to my amazing eyes - there are little, tiny, black ants -- the "peskies," a lot of them:  savoring the cat food, making a jungle gym out of my window sill, playing hide and seek on the kitchen floor.  If you care about what kind of ant, (I didn't as ANTS are ANTS in my mind) this website might help. OK -- first line of defense - call neighbor Mairi who had cats for years and years.  Yes, build a moat by setting the cat bowl in a bowl of water - so they drown attempting to fill their little bellies.  It worked - at least for the cat food.

But the peskies were still showing up.  I didn't want to use ant spray as it is bad for my lovable kitties:  Charlie and Lemmie.  It also is not a "green eco approach" to the problem.  I then recalled friend Rita had ants.  Her remedy - use Windex.  This also kinda works as it kills them, but their friends and family members march right back in.  My own brainstorm, use the ever-versatile "vinegar."  HHmm, again works but not for long!  As you can imagine, I was getting increasingly frustrated.

Ok, I got really serious about tackling the problem so I googled "solving ant problems."  Ahh, I am so much wiser now that I have the scientific "why" information.  Those peskies love moisture, human food (especially sugar and grease), and warmth.  I now know the unappealing spring weather has contributed to my problem.  BUT, I still have ants!  They now are swimming in the cats' water bowl, playing on my counters, and climbing up the refrigerator.  (I blame Jerry for the refrig as Oreo cookie remains on the door handle is a sure fire ant attraction!!  By the way Jerry, why are you you eating Oreos and not sharing them with me?)

I finally came across a somewhat effective method. The solution:  good, old, basic cleaning and sound food storage methods!!  So, I am Ms. Clean, daily wiping the floors, counters with soap and water, and keeping the counters free of "any and all food."  One mishap:  the unopened packaged pound cake purchased for Mother's Day strawberry shortcake stored on top of the refrigerator.  What a feast for those peskies - who would have thought they would be so clever!!  Oh, well, it saved me some calories.

The "green" answer is diligently monitoring and eliminating the conditions that contribute to infestations.  By following these tips, you can effectively reduce ant populations indoors without using toxic chemical or interfering in ants' ecological roles outdoors.  If you must use a pesticide, considering using a bait product, but they contain poison so it is crucial to always place baits out of the reach of children, pets, and wildlife.

I have to go now as it is time to check for ants!

P.S. I promise you I am really not a bad housekeeper, but I can assure you, I am a much better one than I was - at least when it comes to my kitchen!!

The Green Corner by Michelle Sagatov

Here are some tips to keep money in your pocket while you live a little Greener!

Free - Things that Cost Nothing & Save Cash

• Turn down water heater thermostats as appropriate.
• Turn off lights when leaving a room.
• Set thermostats to 68 degrees in winter when you're home, and down to 55 degrees when you go to bed or you're away. (Programmable thermostats do this automatically.)
• Use energy-saving settings on washing machines, clothes dryers, dishwashers, and refrigerators.
• Avoid wasting water, hot or cold, inside and outside your home.
• Clean your refrigerator's condenser coils once a year.
• Air-dry your clothes, when practical.
• Close heating vents in unused rooms.
• Repair leaky faucets and toilets (5% of water "use" is leakage).
• Close drapes (and windows) during sunny summer days and after sunset in the winter.

Simple and Inexpensive--Things that will Pay for Themselves in Lower Energy Bills in Less than a Year

• Install a water-saving 2.5 gallon-per-minute shower head ($15).
• Install water-efficient faucet heads for your kitchen and bathroom sinks ($2 each).
• Install a programmable thermostat ($26).
• In the attic and basement, plug the air leaks a cat could crawl through, and replace and re-putty broken window panes (about $20).
• Clean or change the air filter on your warm-air heating system during the winter and on air conditioning units in the summer ($2).
• Install an R-7 or R-11 water heater wrap ($12).
• Insulate the first three feet of hot and inlet cold water pipes ($6).
• Install a compact fluorescent light bulb in the fixture you use the most ($15).

If you keep these tips in mind and make the changes one at a time, you'll be keeping the planet a little greener, and keeping a little green in your pocket!

Allergies?? Duct Cleaning may NOT be the solution!

Allergy season has hit! Can duct cleaning minimize the allergens circulating throughout your home? Certainly, the ads want you to believe there are health and energy saving benefits. But be cautious--this might not be the answer. A thorough annual furnace and air conditioning maintenance program may be a more appropriate approach.

Unless there are specific, identifiable problems, such as mold, the evidence does not support the duct cleaners' claims. An EPA study found that "duct cleaning has never been shown to actually prevent health problems," nor do studies conclusively demonstrate that particle (dust) levels in homes increase because of dirty air ducts.

Actually, duct cleaning may do more harm -- and it is costly. The cleaning process involves using negative pressure by connecting a very large, powerful vacuum cleaner to the ductwork, sucking out loose dust and debris using a rotary brush, compressed air nozzles, or a special tool called a skipper ball. This process churns up dust and may break the duct system seals. Cost is a major consideration. A 3000 sq ft living space on 3 levels is in the range of $600-$750.

Consider other steps before hiring a duct-cleaning service. Change or upgrade your air filter and clean and maintain your heating and cooling system. Consumer Reports recommended the 3M Ultra-Allergen Reduction 1250. It has a MERV rating of 11 and costs about $16.

An annual HVAC maintenance contract may be best way to go. Duct cleaning services may not include cleaning the heating & cooling equipment (heat exchangers, cooling coils, condensate drain pans, fan motors, blades and housings). Cleaning the blower fans and evaporator coils helps the system work more efficiently and avoids dirt and mold build up. Whether you use a duct cleaning firm or an HVAC contractor, always ask if these services will be part of the regular maintenance. Checkbook magazine periodically rates AC contractors.

One caveat -- duct cleaning may be necessary if there is evidence of mold growth, infestation of insects or rodents, or substantial deposits of dust or debris, for instance if the registers were not sealed during a renovation project. If your allergies are off the chart, consult with your physician to identify the problem and suggest other remedies before considering duct cleaning.