Archive for December, 2007
2008 Is Just Around the Corner and the Questions are Still the Same
December 31st, 2007 Categories: Buyers Corner
As the year draws to a close Northern Virginia buyers are still asking the same questions as they were earlier in the year:
“Should I buy now?”
If I had my Magic 8 Ball it would be so much easier to answer that question. It seems the only way to still answer the question is still with “It Depends.”
Let me see if I can explain this in relation to Northern Virginia. In Northern Virginia there are good deals in different neighborhoods and different price points. If you are buyer who is planning on staying in your home for five years or more then this may be a good time to buy.
“But has the market reached the bottom yet?”
No one has the answer to this question. We can all say hindsight is 20-20. There are plenty of people who didn’t buy a home in early 2000 and then found from 2002-2006 that they couldn’t afford to buy a home. Now prices are lower, sellers are willing to negotiate on closing costs and interest rates on loans are competitive. Buyers who have looked at their finances and done the numbers are starting to buy their new homes.
While other buyers are waiting for the market to find a “bottom” the investors are quietly starting to buy properties and will be the landlords for those who decide to wait for another twelve months to eighteen months. The biggest uncertainty is not whether homes will appreciate, even in our slow markets in the 1980’s and 1990’s homes appreciated, but what will happen with interest rates.
Think about the trade off. If the price goes down another 10% but interest rates on mortgages go up to 8% where will you be? The last piece of the puzzle is the tax advantages of homeownership. No one will argue that they don’t exist. How they will apply to you depends on your circumstances and your income but they should be considered as part of your decision process.
“When Shouldn’t I Buy?”
Northern Virginia has a lot of relocation traffic, with military and private sector, moving every three years. If you know you are going to leave in that time frame then it might not be a good time to buy. You might have enough appreciation in your home to break even but when you figure in state taxes and transfer fees you may find yourself on the short side of the deal. There are some nice homes for rent in the area and most landlord will be glad to cut you a deal for a longer lease.
“So What’s My Next Step”
If you aren’t working with an agent give me a call. We will meet and talk about your situation and what you are looking for. Then if it makes sense for you to buy then we will get in touch with a lender. They will talk to you about your finances and what you are qualified for. We will also make sure that you understand the difference between what you are qualified for and what makes sense for your lifestyle. They are not always the same! Then let’s take a look at some homes in areas that meet your criteria. If it makes sense then let’s negotiate a good deal to get you into your new home and let the landlord find someone else who is going to wait and see!
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As sellers still struggle with the decline in housing prices throughout Northern Virginia the question is “How do I price my home to sell?”
The first part of the process is setting the right price.
Most sellers think of price first, condition second and market third. In a buyers market that order needs to be re-thought. Market and condition are going to determine the price. Buyers are not going to overpay and the lenders appraisal will not support an overpriced home. Don’t confuse what you paid for some of the improvements to your home with a 100% return. A new roof or heater is a maintenance item and doesn’t necessarily equal a higher price. If you over improved your home for the neighborhood that could count against you as well. Well done improvements that show quality of workmanship are what impress buyers the most.
Setting the right price at the beginning is critical. As this chart shows buyers and their agents know when a home is overpriced and will pass it by. If it is under priced you may see more traffic but it will also raise questions as to “why?”
So how do I determine the right price?
The most reliable way to determine the right price is to have a professional appraisal of your property done. For about $350 you can hire an appraiser to come and take a look at your house, run the comps and give you a value. Appraisers use a set of evaluation standards that are recognized nationwide. The only time you may see a different appraisal situation is if your buyer is using an FHA loan. There are some different requirements that FHA appraisers are required to use to comply with HUD guidelines.
If you don’t want a professional appraisal prior to listing your home then remember that a home listed for sale is not a good comp for your home. Homes that have SOLD are the only comps you should be concerned with. The more recent the sale the more reliable the comp will be for you. If the values in your neighborhood have decreased in the last six months then a home that sold a month ago is a more reliable indication of current value than one that sold six months ago.
“We’ve set the price-what else can I do?”
The obvious first answer is to make your home “showroom ready.” As hard as it is to do you need to disassociate yourself from you home and look at it through a buyer’s eyes. You need to de-clutter and de-personalize. Sometimes it can be tough since you don’t know how long it will take your home to sell. But starting off on the right foot will impress more buyers and we all know the old adage “you only get one chance to make a first impression.”
The second answer is to look at how you might be able to sweeten the deal for a prospective buyer. Can you move quickly, could you carry part of the down-payment or pay the buyers closing costs? If so then let them know up front. The more flexible and creative you are the more likely you are to attract the right buyer.
Third is to select an agent who understands how to market your home to the widest audience of buyers. You need to look for an agent who is internet savvy, who knows how to negotiate successfully and will keep you informed throughout the transaction.
If you follow these steps it will set you in the right direction to get your Northern Virginia home SOLD. For more information on selling your Northern Virginia home give me a call to talk about your options. Together we can build a selling plan that is right for you.
Additional information on Making Your Northern Virginia Home standout from others on the market.
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Moments of Silence During the Holiday Season
December 16th, 2007 Categories: Military Relocation, Morning Coffee
During the holiday season it is easy to become overwhelmed. With the music, decorations, shopping, crowds and business it can make us cranky and short tempered. You can see it everywhere with pushing, shoving in stores and fighting for parking spaces.
For our family this is the time of year that we relish the moments of silence. Sometimes it is a walk; even on a rainy day and others it is taking time to honor our fallen hero’s, the members of the armed forces who have given so much to protect our country. At this time of year a walk through the memorials in DC and Arlington National Cemetery can put so many things in perspective.
For whatever reason and no matter what country the visitors are from when people begin the walk through the memorials in our area you can feel the change. Where there was a noisy and boisterous group of students there is now a quiet group studying the plaques on the wall. Where they were tourists with their cameras clicking away there is a quiet group with cameras shuttered. Where there are families who have lost loved ones kneeling by a headstone or touching a name on the wall, those walking by bow their heads to join them in a moment of silence.
It is these moments of silence that make the holiday season take on a new meaning. It is taking time from the hustle and bustle of what goes on around us to remember those who gave their lives so that we can celebrate our holidays. Not everyone has the opportunity to join the thousands who come to Washington DC to walk through the memorials or Arlington National Cemetery during the holidays but everyone who does relishes those moments of silence to put their lives in perspective.
No matter where you are this holiday season take some time to create your moment of silence for yourself. No matter what you choose to do, whether it is to take a long bath, sit in front of the fireplace or walk through the memorials in your area, don’t let the stress of the holidays make you lose sight of how lucky we are. And when you have your moment of silence please say thank-you to all of the servicemen and women who sacrifice everyday for our country.
Thanks to Margaret and Larry Woda for their beautiful post:
Santa’s Helpers Lay Christmas Wreaths at Arlington National Cemetery.
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Historic Churches in Northern Virginia-Fairfax Station
December 15th, 2007 Categories: Communites to Visit, Out and About
One of the nice things about living in Northern Virginia is all of the history that you can find throughout the area. There are the well known sites such as Mount Vernon and Gunston Hall and then some smaller sites that if you didn’t know the history of our area you might just pass them by. Today we are going to take a look at two historic churches in Fairfax Station just minutes from the hustle and bustle of Burke Center and downtown Fairfax.
The first church, St Mary of Sorrows was started in 1858 and dedicated in 1860 by the Bishop of Richmond. Built primarily by the Irish railroad workers who were working nearby, the church is built from lumber from the forests that surround the area and the only item that was purchased for the building was the church bell.
During the civil war the church was used as a field hospital for casualties awaiting transportation out of the area on the railroad and it is here that Clara Barton is said to have started the plan that would later become the Red Cross. After the war St. Mary’s continued to be a drawing place for the growing Fairfax Station and Clifton communities and today the church is a popular place for weddings and masses because of its location and history.
The second historic church in Fairfax Station is Jerusalem Baptist Church originally formed in 1840. The congregation first met in what was then known as Paynes Church which had been constructed in the mid 1700’s as an Episcopal Church.
After the civil war when all Church of England structures were forfeited to the states the congregation of Jerusalem Baptist Church was able to buy the building for their own use.
The original church had been the first brick church built in Fairfax County but during the Civil War the building was torn down to use the bricks to build fireplaces in homes used by the for Union Soldiers over the winter. After the war the congregation began to rebuild and in 1866 built the white clapboard church that stands today.
What is interesting about both of these churches is their contribution to Fairfax Station during the civil war and beyond. Changing from places of worship to hospitals, their cemeteries being used by both Union and Confederate soldiers (later most of these graves were moved to Arlington National Cemetery) and the fact that the buildings remain today as places of worship and celebration despite the development of the area.
So if you are out driving around and you see these two small white churches on Route 123 (Ox Road), take a moment to stop and check them out. They are a big part of the local history and something you might just pass by without a second thought.
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Did you just get your PCS orders for the Northern Virginia area?
Not to worry. Once the surprise of your latest set of orders is over, it’s time to get started figuring out where you want to live in Northern Virginia. One of the nice things about this area is the variety of neighborhoods, home styles and price ranges available. There are traditional neighborhoodsthat have always been popular with military families and in the last few years plenty of new construction that has expanded the options even further.
As a native of the area and having lived all over the US and world as a military spouse, I know a lot about relocating to and from this area and what it takes to make it happen smoothly. One of the first things most families with PCS orders to Northern Virginia do is schedule the initial house hunting trip. With the internet, digital photos and virtual tours the stress of these trips has been greatly reduced.
Working with an agent familiar with the area and your needs, you can narrow down your choices before you ever leave home. Instead of spending days trapped in the car looking at homes you can focus on the houses that really interest you and spend more time learning about the other benefits of the Northern Virginia area. I’ve actually helped military families who were not able to make a house hunting trip find a home to rent “sight unseen.”
No matter whether you are headed to an assignment at the Military District of Washington, Pentagon, Fort Belvoir or Quantico finding your next home doesn’t have to be a logistical nightmare. If you have orders and are looking for an agent experienced with military relocation and who will go the extra mile with your move to Northern Virginia give me a call at 703-346-2213. I would be glad to send you a local information package with maps, local papers and referrals to mortgage professionals. I work with both military buyers and renters so if a purchase isn’t in your plans don’t hesitate to call!
You can read more about different neighborhoods in our area throughout my blog and on my website. If you have questions about a certain neighborhood in the area just let me know and I’ll be glad to send you more information.
Search all homes available in the Northern Virginia area.
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Home Equity-Is it Real or Is it Memorex?
December 9th, 2007 Categories: Real Estate Ramblings, Selling Thoughts
Yesterday while talking to a prospective client the discussion turned to the “equity” they had in their home. They had purchased their current home in Northern Virginia in 2002 and over the five years the value of their home has of course appreciated from their original purchase price.
They were however distraught that they had not sold their house last year when they could have walked away with $250,000 but now the best they could hope for might be $175,000. Since they are interested in buying a larger home the prospects of a higher mortgage due to the loss of equity was worrisome for this young family.
This isn’t the first time this conversation has happened over the last few months. With the value of homes in Northern Virginia having decreased over the last year there are many families thinking the same thing about their equity. It is interesting to listen to the rationalization of how much money they have lost by waiting to make the decision to move.
Of course the equity that they have “lost” isn’t real. It is the same concept that follows traders in the stock market. When you see the stock price is up you think of all of the money you have and when it is down you think of all the money you have lost. However until you sell you haven’t done either. It is all imaginary.
The good news for homeowners in Northern Virginia is that even though you may not have the same amount of equity that you had a year ago the price of the home you want to buy has also come down. As a result most likely the deal is a wash. Today’s equity will go as far as it did a year ago and in some cases it might even go farther depending on the neighborhood where you want to buy.
So don’t let the idea that you have lost money keep you from making the decision to sell your home. If it is the right time to make a move then let’s get to work to get your house on the market and SOLD. If it isn’t time to make a move don’t spend your days fretting over the latest housing reports. They don’t mean anything to you until you actually sell your home and are holding your HUD-1 in your hand.
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I’s that easy. At least that is what the speaker said at the “How to Make Money in Foreclosures” seminar offered in Northern Virginia this weekend. Whipping out a twenty dollar bill and asking for a ten in exchange he began to explain if you are decisive you can make money in today’s foreclosure market. Of course to understand how to do that you need to part with your own hard earned money and come to the BIG THREE DAY seminar that would give you all the details of their great program. Today we will tell you all the great stories of how other people just like you made thousands of dollars on flipping foreclosures.
First all the title of the seminar is wrong as it focuses on acquiring pre-foreclosure properties not foreclosure properties. There is a difference. A pre-foreclosure property is one where the mortgage holder has given notice to the homeowner that if they don’t catch up on their over due mortgage payments in the next 90 days then they will take the house from them. A foreclosure property is one where the mortgage holder has already taken the house back from the owner and is now looking to sell.
The seminars suggest you buy a property that has just had the pre-foreclosure notice announced (via courthouse records or online services) make an offer to purchase the property, assign the contract and then sell it before the hammer falls from the bank or auction company. They suggest that you get the owner to sign a quit claim deed over to you and then you flip the property for market value.
Not mentioned during the seminar are that most loans made in the last 5 years have a “due on sale clause” so when the current owner signs the deed over you have to be able to come up your own mortgage on the property and if the property was purchased within the last three years the amount owed may be more than today’s current market value.
Looking around a room full of people you could see the some of them being sucked in to the get quick rich mentality being touted. This is the same mentality that many of the owners of homes now in foreclosure had. Instead they own a home they can’t sell and have ruined their credit for the next 10 years. Don’t get sucked into thinking that the foreclosure market is the next get rich quick scheme. If you want to invest in real estate then talk to a financial advisor, an agent and an attorney about the right way to invest in real estate.
This isn’t the market for FIND IT*FUND IT*FLIP IT*
To read more about Northern Virginia Auctions and Foreclosures
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