The comment made me think about how consumers get the impression that Realtors® are only driven by a quick commission.   In today’s Northern Virginia real estate market getting a deal from offer to closing gets harder and harder.  There are no deals that are a slam dunk unless it is a cash buyer with verified funds, a large earnest money deposit and no contract contingencies.  Quick commissions were left behind in 2005.

Will an agent prod a buyer to make a higher offer than they should?  Most agents will likely prod a buyer to make an offer that has a chance of being accepted or at least generate a counter-offer for consideration.  An agent who had done their homework and provided the neighborhood comps to a buyer will know close to what a home is likely to sell for.  The chances of a buyer paying to much for a house in Northern Virginia are also fairly slim.

If the offer is above market value the buyer’s appraisal won’t support the contract price.  Agents have no sway with appraisers.  Listing agents can offer an appraiser the comps used to determine the sales price but unlike the hot market in 2003-2007, it’s hands off.    If it doesn’t pass the sniff test the appraiser isn’t going over-value a property.

Then there are those pesky short sale and REO lenders.  They aren’t pushovers on low offers.  Yes you will  find listings in the MLS for undervalued properties.  But  guess what happens as soon as the bank  sends out their own appraiser?  Ask the hundreds thousands of buyers who have gotten a counter-offer from the bank well above list price resulting in either the property going back on the market again at a higher price or a buyer paying the lenders price.

The Northern Virginia real estate market is not the same as the areas that make the national news.  Seeing homes selling for 90% or more of their list price reflects our market has stabilized.  This is a good for for everyone and has nothing to do with agents prodding buyers to write offers just to earn a few dollars.

There are a few things that are obvious on January 1, 2012

House prices are lower now than they were on January 1, 2002.
Interest rates are lower than they were on January 1, 2002.
And we are all 10 years older than we were on January 1, 2002.

Selling a home in 2012 requires an agent who understands the current market conditions for your neighborhood, can guide you to the right price for your home and will make sure your home gets the most exposure on the market as possible.

For buyers it’s a matter of where do you see yourself in the future? Is it as a renter in someone else’s property or is it in your own home where you an paint the walls whatever color you like?

No matter what 2012 brings, CJ Realty Group will be here to help Northern Virginia buyers and sellers navigate whatever the market throws at us.

Happy New Year.

You might look at this photo and say, “what’s the problem?”  Fortunately a home inspector can tell you exactly what the problems are.  Jay Markanich, owner of Jay Markanich Home Inspections on a recent new construction home inspection pointed out a number of issues with this home.

By the way Jay uses the word “appurtenances” to describe the furnace vent, hose bib and vent covers shown in the photo.

Here are a few of Jay’s observations:

1) “If these folks want to put a deck on the back of the house, the ledger beam (the main support for the deck, a 2×12 that bolts to the house onto which the deck joists are attached) is interfered with by four appurtenances.”

2) “the ONLY basement window is under the door.  So, if, instead of a deck, these folks wanted to put in a patio and not deal with all those appurtenances, how can stairs be placed to not interfere with that window?”

You can read the rest of what Jay found would be a problem with the furnace vent, hose bib and vent covers on his blog post “7 Things I Don’t Understand”

This is also the reason in my guide to Buying New Home Construction I’ve recommended independent inspections for all of my buyers and anyone who is considering building a new home.

Before you head to a new home site download my guide and if you decide to head out on your own without an agent, at least make sure you call Jay Markanich to schedule your new home inspection.

When buying real estate in Northern Virginia the term “cavaet emptor” (buyer beware)  is often used.  With the new regional sales contract the term “buyer beware” words take on a new meaning.  Here’s a glimpse at what I mean.

Currently our Regional Sales Contract states in Paragraph 7 the “seller warrants, except as otherwise noted that the existing appliances, heating, cooling, electrical systems, and smoke detectors (as required) are in normal working order.”    When you had a home inspection and found a burner on the stove wasn’t working or there was a problem with an electric outlet in the bathroom the seller HAD to fix it.  No questions asked and it was not part of any negotiations over other items your home inspector may have found that need attention.

As of January 1, 2012 that statement goes away and all of those systems are “as is.”  When you choose the option to have a home inspection, which as a buyer you should always do, you now must include any request for repairs for those systems in your home inspection repair request.  If during negotiations you agree the burner on the stove doesn’t need to be fixed, the owner is no longer required to fix it before closing.   End of story.

Buying a new home is a huge financial investment.   It’s surprising the number of times an issue arises with a contract that could have been avoided if the agent had a better handle on what each paragraph, check box or addendum meant.  If you are buying or selling a home in Northern Virginia make sure you are 100% comfortable with contract you are ratifying.  If your agent can’t explain the changes to the new contract and you don’t understand them DON’T SIGN until you do.

On one such trip recently my clients were surprised to hear some of the concerns expressed by the neighbors about construction issues.  It made  them realize that my suggestion regarding having an independent home inspector preforming pre-drywall and pre-settlement inspections a  good one.   It is amazing the number of items that an inspector will find, not all of them critical during these inspections, that you might not notice on your own.

Based on the concerns that some of the homeowners in the neighborhood my clients were considering, an independent home inspection might have saved them time and aggravation. The level of some of the problems made us wonder how they managed to get by the Prince William County inspectors.  One homeowner mentioned they had multiple cracked floor joists that had to be replaced and another had a jetted tub which did not have proper support under it.  If it had been filled with water the owner might have found themselves bathing in their basement.

If you are thinking about buying new construction in Clifton, Fairfax, Lorton or anywhere in Northern Virginia  don’t let the lessons that the homeowners in this development learned the hard way happened to you.  Give Cindy Jones and CJ Realty Group a call at 703-346-2213 to make sure you have your own representation before you head to the builders model.  Not only can we help you sort out all of the options the builder is offering, we can advise you about options the builder won’t tell you about to help you avoid some serious post closing headaches.

First a disclaimer.  What I’m including in this post relates to the Regional Sales Contract used in Virginia.   Your area may have different terms that relate to contract contingencies.

The answer is very simple.  You have a ratified contract when both the buyer and the seller sign all of the terms and conditions of the offer. Just like a home inspection or an appraisal, HAP approval is a contingency to the contract. The date written on Page 10 of the contract is the date the contract is ratified.  Folks if you’ve read my blog for the last 18 months you know I’ve got most of the information about this DoD HAP program pegged.  Yes they occasionally make a change that I trip over but it’s been rare.  Usually it’s their own information that is the problem not mine.  After 30 transactions I’m fairly confident in the information I share but of course always defer to the Realty Specialist’s in the Savannah Regional Office.

Why do I bring this up now?  Recently an agent in the Northern Virginia area suggested since the United States Army Corp of Engineers (USACE) had not signed the contract between the buyer and the seller the contract wasn’t ratified and therefore not an enforceable contract.   Does a lender sign the contract between the buyer and the seller on a short sale?  No they do not.  They are a contingency to the contract which is why we have the short sale addendum which spells out when things need to be done.  But the contract is ratified.   The same with a DoD HAP sale.

The only ways that I am aware of that a file is not approved by HAP is if the seller is not qualified for the program or the contract for the property falls below the price threshold established by the program.  Knock on wood I’m not sure of any other reason approval would not be given.  If someone else has run across one please fill me in.

If you are an agent representing a buyer on a DoD HAP listing make sure you understand you have a ratified contract when the buyer and the seller sign the offer.   If you have questions make sure you consult your broker for guidance and advice.

It is important not only to me but to the clients I serve to keep track of what is going on in the Northern Virginia real estate market. You can’t be a Realtor® in our area and not keep abreast of what is happening with the DoD HAP program. We have large military and civilian population impacted by the housing market, many which have no choice but to pack their bags and go because the government tells them to.

This past week the $400 Million deficit the HAP program is facing caught the attention of Congress. All of the military newspapers picked up the story as well. When you have a Marine who loses eligibility for their HAP benefits because they were fighting in Afghanistan (not considered a PCS move) you begin to understand the issues facing military families.

I’ll continue to write posts about HAP and continue to provide my support for military families coming into and leaving Northern Virginia until the last dime of program funds are spent. It’s my hope the more Realtors® who are educated on the program means the more support we can provide to those who are on the front lines for us everyday.

Do you ever get one of those laugh out loud, cause you to snort moments when you open an offer on a listing?  It happened to me recently and even better it sent my clients into fits of laughter as well.  The reason?  An offer $100,000 below list price.  Now the owners could have been insulted but I warned them up front when I called them that I had news that would make their day.  Not in the way they were expected but it would indeed make their day.

Setting the stage can make the difference between a %$#& reaction and a good chuckle.  In this case the response was obvious. Northern Virginia and the entire DC Metro area is one of the parts of the country where the real estate market is up in price. In fact in many cases homes are receiving multiple offers. So when one arrives that is so far off the market all you can do is smile, laugh and move on.

This the laughter you heard as we sent the offer to the shredder.

What impression will your offer make to the listing agent and the owners if it is incomplete and full of errors?  How do you react when you are given the chance to revise your offer, not the terms, just the errors?  Do you tell the owners they can make the corrections or do you fix the errors so your offer makes a good first impression?

In Northern Virginia it isn’t unusual to be in a multiple offer scenario in our current market.  As a result when an offer is competing with others crossing your T’s and dotting your I’s can go a long way to make a deal happen.  When an agent submits a contract that will take more work to correct than was put into writing it, there is a good chance the owners may decide to put it on the bottom of the pile.

Over the years I’ve learned to be pesky and ask as many questions up front as legally possible to be able to present a solid offer for my buyers.  Even when there is sense of urgency it only takes a few minutes to check the tax record for the owners names and follow any instructions provided by the listing agent.  By taking short cuts and asking the listing agent to fill in the blanks or make significant corrections you could putting your offer in jeopardy of even being considered.

Remember just as the seller took the time to make their home inviting to your buyer, you need to take the time to make sure your offer makes a good first impression too.

Before the internet took over this claim had a good deal of merit. The brokerage with the listings was likely the company that would produce the buyer for the property as well. However when the internet and Internet Data Exchange (IDX) made every MLS listings available on Realtor.com, Trulia, Zillow, all brokers sites and individual agent websites, the idea that one brokerage had more leverage over another to produce a buyer went out the window.

Over the last few months I’ve been checking the Northern Virginia MLS to see if by virtue of size or advertising muscle do the bigger brokerages produce more buyers for their own listings. In 108 transactions in March only 12% of the homes were a single brokerage transaction and the size of the brokerage didn’t matter. They ranged from small independents to the big franchise companies.

As an interesting note out of the 8 dual agent transactions (one agent handling both the listing and sale) half of them had zero days on the market. This always makes me wonder if the seller might have been short changed by the home not getting a chance on the open market.

What does this mean if you are thinking of listing your Northern Virginia home? With 88% of homes sold (in this sampling) by cooperating brokers it means the agent you hire should have a record of working well with other agents in the area.  If an agent tells you in an interview, bigger is more likely to get your home sold ask them to show you the numbers.  How many single agency transactions their company has completed in your neighborhood in the last few months.   Will the numbers support their claim?