Archive for February, 2008
Slight of Hand-How long has that home been on the market?
February 28th, 2008 Categories: Buyers Corner, FAQ's
How long has that Northern Virginia house really been on the market? That is a question every buyer should be asking before they formulate an offer on a property. In Minnesota one agent has gone on national TV to clearly state that he is manipulating the data in the local MLS to make a home feel fresh. In fact his listings have been on the market for much longer and he isn’t the only one trying this sleight of hand. In Northern Virginia a number of agents employ this tactic and a few others to try and hide the reality that the house has been on the market for awhile by deleting the tax id from the listing.
For buyers who are working with an experienced Realtor® this slight of hand is a waste of the listing agent’s time. However for buyers who have decided to go it on their own this manipulation of MLS data could cost them big time when they overpay for a home. While the average days on the market in Northern Virginia varies slightly between counties and type of property the average in our area has climbed from a nanosecond in 2003 to between 60 to 120 days in 2007 and 2008. So unless a property has been languishing on the market for 6 months or more the fact that it has been on the market for a couple of months shouldn’t shock anyone and isn’t a reason to withdraw it from the MLS and then reentered it five minutes later.
The MLS in our area has two fields that a buyers agent knows to check when looking at how long a property has been on the market. The first is DOM (Days on Market) and the second is DOMP (Days on Market Property). The second field is the cumulative days the property has been on the market continuously even if the seller has lowered the price, changed agents or withdrawn and re-listed the property within 90 days. As a buyer when you are looking at data across various websites you may only see the DOM field and not the DOMP field.
Many times buyers think they will get a better deal if they go right to the listing agent and bypass having their own representation. Not only can an experienced buyers agent help you navigate the correct information in the MLS but guide you every step of the way from finding the right financing, the right home, navigating the complex contract process and make sure that when you get to the settlement table that you have had an advocate protecting your interests.
So if you are starting the process of looking for your new home, make sure you find your own agent. You may save thousands of dollars and a lot of heartache making one of the largest single financial purchases in your life.
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Northern Virginia doesn’t have the worst traffic in the US but sometimes local and federal politics get in the way of making smart decisions about future road and railway expansions.
For months now there has been a debate in the area about whether to allow private enterprise the option to build HOT (high occupancy toll) lanes starting in Stafford County Virginia and coming north to Washington DC. Having just watched the extension of the metro rail system flounder, flop and die leaving the congestion in the Tysons Corner area to grow worse by the day, the idea of allowing unaccompanied drivers the opportunity for a $1.00 per mile to drive into DC on special lanes is well ludicrous.
Our current HOV (high occupancy vehicle) lanes work well for commuters who are smart enough to realize the value of car pools, van pools and bus rides. However every day as those drivers reach DC they run into the problem that anyone on the HOT lanes will face. Eventually you have to drive over the 14th Street Bridge and so far no one has included in their plan an expansion of the bridge. In London a drive into the city requires you to pay a congestion charge which was instituted to try and cut down on congestion and raise funds for public transportation. As far as I can tell if private enterprise is in charge of this operation then none of the money raised by tolls would actually benefit anyone else who has the smarts to use the HOV lanes, the metro system or VRE.
By creating another way for drivers in our area to bypass public transportation or car pool options government officials are overlooking the long term issues. If the congestion in the area is already creating a bottleneck getting into the city then how are the HOT lanes going to eliminate that problem? Wouldn’t more incentives for the use of public and mass transportation be a better idea? Wouldn’t figuring out more public transportation options be transportation official’s time? If private enterprise has millions to spend why not have them spend it on systems that will be beneficial to everyone and not just those who have the deep pockets of cash to bypass what we already offer in the area.
This is one of those situations where you have to have to say “what are they thinking?”
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Will This Affect the Resale Value of My Home-Foreclosures
February 22nd, 2008 Categories: Auctions & Foreclosures, Selling Thoughts
Earlier this week I posted “Will This Affect the Resale Value of My Home” looking at the issue with power lines and water towers as possible issues with the resale value of your home. Today I’m going to look at a serious issue in many Northern Virginia neighborhoods, foreclosures and how they may affect the value of your home.
Foreclosures vary from community to community. In some areas you might not be able to tell a home is in foreclosure from any other for sale in the neighborhood. In others you may find signs that announce the property is a foreclosure or see homes that who obvious signs of neglect. So how do you know whether a foreclosure in your neighborhood is affecting the value of your property? One of the key components of determine the value of your home when it is being sold is a professional appraisal. In a neighborhood where foreclosures are few and far between the chances are an appraiser will not need to use a property that has sold as a foreclosure as a comparable property and there won’t be any issue. However in a neighborhood where there have been a signicant number of foreclosures, appraisers have to include those sales in their comps. Most appraisers will try and discount the value of a foreclosure property but where they are a majority of the sales in the neighborhood then they will affect the value of your home.
If you live in one of the areas where there are a large amount of foreclosures you can expect to see a slight drop in your value. It may not always be about lower prices but also about buyer’s feelings about the area. If they perceive the area is showing signs of neglect they will automatically discount the value of your property even if it is in top shape and you will need to make a tough decision about pricing your home to reflect an issue you have no control over.
A secondary affect of foreclosures in areas with HOA and condo associations is the impact of the uncollected dues and fees on current homeowners. Usually before a property goes into foreclosure the owners stop paying their monthly HOA or condo assessments. Over time depending on the number of unit in distress the association’s budgets can take a hit and current owners may end up being tasked with making up the shortfall. As a result association fees rise and that increase in fees may make a property less desirable to a future buyer. Condo buildings are at the highest risk for lower values due to foreclosures as they are often the only comps an appraiser can use.
Foreclosures can affect the value of your home and you need to be aware of what is going on in your neighborhood. A professional Realtor® is the best source of information on how many foreclosures are currently in your neighborhood, how many have sold and current strategies for getting your home SOLD in today’s market.
More information on Northern Virginia Foreclosures
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Will This Affect the Resale Value of My Home?
February 18th, 2008 Categories: Buyers Corner, Selling Thoughts
Buyers today are often thrown for a loop when they look around a neighborhood and see so many FOR SALE signs. The sign riders advertising foreclosures or short sales don’t help. However in the case of some buyers it has nothing to do with the home values in the neighborhood, they can see past the market today and know that in the Northern Virginia area prices do recover. What throws them for a loop is whether the large utility right away, electric poles and water towers will affect the value of their home when they go to sell.
My answer is always YES. Now some may disagree with that answer but if a buyer is asking the question today, then other buyers will ask the same question when the house comes up for sale again in the future. Given a choice to buy a home without the power lines running through the backyard or not then I will always advise a buyer on the side of NOT. Now if the poles can only been seen in the dead of winter perhaps there is another answer but when they are what you will look at 365 days a year. NOPE.
Today while looking through a neighborhood with plenty of options on homes for sale I came across a home that made me stop and wonder, how will they be able sell the property in the future? Perhaps the developer made them a deal they couldn’t refuse, perhaps they thought that during the next big drought they would have a secret stash of water or perhaps they didn’t have a Realtor® looking out for their best interests. Whatever the reason their resale value has a big red question mark around it.
So buyers if you are out driving around a neighborhood and see a home that catches your attention, stop and look carefully around you. If what you see is something you can fix then keep the home on your must see list. If what you see is something that you can’t change like a power line or water tower then you might want to consider another property.
If you aren’t currently represented by a Realtor® and are interested in learning more about buying a home in Faifax County, Prince William County or anywhere in Northern Virginia give me a call. I’ll help educate you on the home buying process, what to consider when buying your home and protect your interests both for today and into the future.
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You have decided that you need to sell your Northern Virginia home and are wondering how can you make your home standout from all of the other properties listed for sale.
If you haven’t read the first two parts of “If You List It They Will Come” you should start there:
If You List It They Will Come-Getting Your Home Ready
If You List It They Will Come-Pricing Your Home to Sell
If the Realtor® you are talking to suggests that all you need to do to get your home SOLD is list it in the MLS and buyers will come running to your house, then once again you need to show them the door.
Today’s buyer is internet savvy! It doesn’t matter what source you read they all tell you the same thing. Over 80% of today’s home buyers search for a home on the internet. The variety of sites and tools available make it easy for a buyer to browse from the comfort of their own home, on their own time and at their own pace. Many buyers spend months on-line before they ever contact and agent to represent them.
So how do the Realtors® you are talking to get your home in front of the most buyers? First and foremost you need to make sure they have an active and current website that has your listing available. Second you need to find out how well linked is their website to other websites that showcase listings. Links to sites that are not about showing your home on line are of little value to you. You want someone who is surfing the internet to find your home on as many real estate listing sites as possible.
Does the Realtor® you are considering work for company that has a presence outside of Northern Virginia? Not everyone looking for a new home already lives in the area. Making sure that your home can be found on national websites such as RE/MAX.com and Realtor.com are critical to making sure you home is seen by buyers no matter where they currently live.
Will your listing have its own URL and will that be featured on a sign rider in front of your home making it easy to find on the internet?
(click sign to go to listing)
Will the agent upload multiple good quality photos of your home as soon as it is active in the MLS?
How often are the websites and MLS updated to keep your home in front of buyers?
Does the agent maintain one or more real estate related blogs where they write about your home?
It goes without saying that your home should have color brochures available on day one and professional signage in the front yard. Each home has individual needs and depending on your home their may be other options such as coverage in the local press, featured home status in Friday Home Guides and more. Make sure that the company that the agent works for spends significant money on national advertising to bring more people to their website and more leads to their agents.
So as you consider all of your options for picking a Realtor® to list your home make sure that the internet is a large part of their strategy. Today’s buyer is online and your home should be too.
Be like one of the good citizens of the great state of Missouri and say SHOW ME!
If you are getting ready to list your home this year give me a call. I’ll be glad to show you all of the ways I work to get your home in front of as many internet savvy buyers as possible. With a personalized marketing plan for your home and the Power of RE/MAX we can get your home SOLD!
Stay tuned for Part IV. My Home is Listed Now What?
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If you are just joining us please read Part I of If you List It They Will Come before you read this post.
Buyers in the Northern Virginia market are looking for a good deal. They won’t buy a house that is overpriced no matter how you try to entice them. Forget the free lease on a Mercedes or cruise to the Bahamas those aren’t going to bring any offers to the table. Price your home right and offer the right incentives (closing cost assistance) and you may be on the short list.
Just as in Part I of If You List It They Will Come don’t be swayed by the agent who comes in the door and tells you the highest listing price for your home and asks you to immediately sign a listing agreement. Every agent you interview has to be able to back up what they say with detailed information. Check it carefully and make sure they can justify the price they are suggesting. If not show them the door!
So how do you determine the right price? Forget the crystal ball. The most accurate way is by having a professional appraisal of your property done. Most sellers don’t go to the expensive of having an appraisal done on the property when they first put it on the market instead they rely on a Realtor® to help them come up with the correct price. In a market where prices have declined you should start with the most recent sales in your neighborhood and then work back only as far as you need to find a baseline price.
Why do I say baseline price? It has nothing to do with the price you will list your home for but instead a baseline for you and your Realtor to begin making the necessary adjustments to come up with the list price of your home.
Did the last sale in your neighborhood have granite counters and you don’t? Adjust your price downward.
Does your home have a finished walk-out basement and the last sale didn’t? Adjust your price upwards.
Do you only have three bedrooms above ground and the neighbor has four? Adjust your price downward. But wait I have a legal bedroom in the basement doesn’t that count? Yes, but not the same value in an appraisal as the one above grade.
Now you and your agent need to take a look at what is currently for sale. How long has it been on the market, have they lowered their price since listed, what are the features of the current listings as compared to yours? A good Realtor® will have already scoped out the competition before they came to your house and I always recommend to my potential sellers that we make a quick tour of a few of the listings to talk about the pros and cons.
Armed with all of this information and a few intangibles that your Realtor® can talk to you about you can set your listing price. The first time a buyer walks in the door is when you are going to capture them for a return visit and a future offer. The first 10 days your home is on the market are the most critical. If your home is overpriced buyers and their agents will know it and pass you by. Price it to low and the will also wonder what the problem is. Price is right and they will come!
Stay Tuned for Part III-Marketing Your Home For All It’s WorthRelated Posts
Pricing Your Home To Sell in Today’s Market
Is Your Home A Certified Pre-Owned Home?
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At least that was the depth of the advice that most agents needed to give their sellers a few years ago. However in today’s market if you interview an agent and this is the best they can do then you need to show them the door.
In the current market in Northern Virginia sellers need to step up to the plate and take a look at their homes in a different light. If you are getting ready to put your home on the market you need to take an honest look around you and make what might be some tough decisions. Everyone has heard it before but it is even more important than ever, your home needs to be impecible for a buyer to even consider putting on the top of their list. Some of what you may need to do is simple and depending on your home you may have to make some big decisions.
Everyone has heard it before but it always bears repeating. DECLUTTER your home. This sometimes may be all that your home needs. Cleaning out the closets, the kitchen cabinets, the bookshelves and the drawers is your first big step. It is amazing how much bigger your house will look just by tackling the clutter. If it is something you are going to need in the future but you don’t need today, box it up, label it and store it out of the way.
The next step is next step is repair what you know is broken. We have a tendency to overlook the dripping faucets, the missing door stops and the grungy bathroom caulking in our busy everyday lives. Now is the time to spend a few hours going room by room and taking care of the “honey do” list.
Now clean. If you don’t want to clean then hire a team to come in and take care of it for you. In fact if you lead the crazy hectic lives of so many families in Northern Virginia it might be worth a few extra dollars to hire a cleaning crew to keep your house clean while it is listed for sale. Since many showings take place on the weekends you might want to have a cleaning team come in on Friday’s so that your house is ready for weekend showings.
For my clients these are the recommended basics before we even set the right price for your home. For clients who are willing to go the extra step I recommend making your home a Certified Pre-Owned Home. For less than $1500 you can right up front take away any questions a buyer may have about the condition of your home and improve your bargaining power when the offers come rolling in.
Stay tuned for Part II. Setting the Right Price for Your Home in 2008
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A Million Dollars In Springfield VA-Who Could Have Imagined
February 7th, 2008 Categories: Focus on Fairfax County
Sometimes it is hard to imagine how far an area has come when you know the long term history. For some of the original buyers in Springfield, Virginia it may be hard to believe that the new homes being built just off the Fairfax County Parkway are selling for well over $1 million dollars.
This week I had prospective buyers checking out Belmead at South Run 
Crossing a new luxury home development by Van Metre homes in Springfield Virginia. The homes are grand and as can be expected with Van Metre the standard features are what you would expect for homes at this price point. Granite kitchen counters, luxury master suites, hardwood floors, fireplaces, brick and much more. The wine cellar is optional!
Within walking distance of the huge South Run Recreation Center, easy access to Burke Lake Park, the Huntsman Shopping Center across the parkway and within 15 minutes of the Springfield metro, the neighborhood has a lot going for it. The 95 homes have been on the planning books with Fairfax County for a long time. When the trees came down at the corner of Huntsman Blvd and the Parkway last year it was sad but the development is planting mature trees to help bring the green back to the area for new homeowners.
With this new development, Springfield has 12 homes in the MLS for over $1 Million. Last year there were 12 sales of properties over $1 Million. So for the old timers who moved to Springfield when the house prices were as low as $16,500 for a Virginia Rambler the changes are mind boggling.
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