Just Like The Song, Sellers Say "Take Me As I Am": Buying "As-Is"

Bob Dylan said "Take me as I am, or let me go..."

How applicable this statement is in this housing market. Here are some things you should know about buying anything "as-is"...

 

1. What kinds of properties are usually sold "as-is"?

Almost every short sale and/or bank-owned property I have seen has been sold "as-is." The banks make no representations about the house or any of the mechanical, electrical, or structural systems of the property or the appliances (if any) of the house. Also, many estate sales or older homes can be sold "as-is," and with the common occurrence of it these days, is happening more frequently.

2. Why would something be sold "as-is"?

Well first of all, every buyer out there should know that banks look out for THEMSELVES, first, foremost, and only. By declaring a property to be sold "as-is" they release themselves from any liability of having to abide by our regional sales contract that says that all systems must be in NORMAL WORKING ORDER at the time of settlement. Take it or leave it. "take me as I am, or let me go..." for another buyer!

3. Can we still do a home inspection?

That depends. I always, ALWAYS recommend my buyers do a home inspection. If it's the biggest investment of your life, you should go into the union with the most information possible, right? So sometimes they'll tell you that a home inspection may be done "for information purposes only." Many times, this allows you to retain the right to make the contract contingent on a home inspection...so if the report comes back with more than you bargained for, you have the absolute right to void the contract and get your deposit back. 

4. Well, can't we TRY for money from a bank or seller?

Of course you can. The worst case scenario - they say no. Then you're right back where you started. I have however seen banks grant some money to a buyer depending on their requests (one of my buyers once got $2k towards a new furnace!)....the asset manager is driven 100% by their bottom line. Getting any money, whatsoever from a bank or seller is the exception, it is definitely NOT the rule.

5. What if I am doing an FHA or VA loan and there are red flags on the appraisal?

Before I answer this question, let me say: I am NOT a lender, underwriter, appraiser, or have any affiliation or inside information about the processing of a government backed loan. However, that said, most banks realize that FHA loans are the most common right now...and they also have a higher standard for appraisals. Things like water damage, mold, code violations, etc will be red flags on an appraisal, and will most likely be a "Lender Required Repair." That term is important!!! In order for your loan to be approved and funded, any lender required repair will have to be completed PRIOR to closing, otherwise, it'll be no-go. Hopefully the seller will comply with these requests, and you can proceed to settlement. However, if they are not willing to complete the repairs, you can void the contract.

 

Each situation is different...there's always a learning curve with real estate!! That's why it's important to use a) someone you trust, and b) someone knowledgeable to serve you and your interests to the best of their abilities. Also, just because something is being sold "as-is" doesn't mean it's a lemon...that's why a home inspection is important! Feel free to contact me with any other questions!

Observations from a Weekend Open House: Buyers Know More Than We Think!

Yesterday, I held a great listing on 934 N. Daniel St in Arlington, VA. It's located in a great neighborhood of single family homes called Lyon Park. Close to the Clarendon metro, close to the major highways leading to Tysons Corner as well as downtown D.C. Currently there are 11 properties listed in the neighborhood, with 3 under contract. In our market, you can count on a few open houses every weekend, regardless of how long the property has been listed.

The house I held open, has been on the market for 25 days, still listed at the original list price of $699,900, and is a 2 bedroom, 1 bath updated bungalow. After 25 days and 3 open houses, it's amazing that I still got 21 groups through a 1-4pm open. I am continuously blown away by the questions buyers are asking...

-How long has it been on the market?
-Have there been any price reductions?
-Does it have A/C....no? Well then it's $XX over priced
-I saw a window from the outside, is there an attic or just storage/crawl space?
-The listing on Main Street has an extra bathroom and bedroom, and a bigger kitchen....but it's priced only $15k higher than yours....what do you think of that listing and your price?

The other amazing thing about this buyers market, is that they've seen EVERYTHING that's held open. They're comparing listings on their own and know what they're capable of getting at different prices ranges. Since my personal goal each month is to do 3 open houses, and I mostly work the North Arlington area - I tend to see some of the same groups of people come to each open. It reinforces the need to KNOW YOUR MARKET and know your competition. I try to go to most of the Arlington Brokers Opens and see the new listings coming on for sale. You have to be able to talk apples to apples with your open house traffic...because some of them will know more than you if you don't.

The other thing about proactive buyers that go to see these opens is that they don't like the B.S., they don't need hand-holding...they just want the facts. I like this, I want to buy this...what do I need to do next? That's when they need you, the expert. But you have to show them you're the expert first....

Great Grapes! 2009 at Reston Town Center

This weekend, Saturday April 25th and Sunday, April 26th Reston Town Center will host the 3rd Annual Great Grapes! Festival.

The Great Grapes! Festival hosts over 200 wines and 20 Virginia Wineries for samples, classes, pairing, and more for local patrons who visit the Reston Town Center from Noon to 6pm.

More information is available online at UncorkTheFun.com, including admission info, event schedules, and vendor participants.

Buying New? A Term You Should Know: Capital Contribution

Here's a term you don't hear often: Capital Contribution.

-What is a capital contribution? A "fee" that is incorporated into your closing costs at settlement to be contributed to the working capital fund of the homeowners association. Consider it the equivalent of a minimum balance to opening a bank account.

-How much is it usually? While every development is different, in Northern Virginia it's usually equivalent to 2 months of the condo fees.

-Who pays for it normally? First time buyers of a new construction project foot the bill for this one.

Come on, there has to be a catch to buying something BRAND NEW, right? :)

The Annual Tap Water Flush in Arlington and Washington, D.C.: April 6th - May 4th

Did you wake up this morning to make your coffee and detect the faint smell of chlorine? I did, before I remembered today is the first day of the annual flush of the aqueduct system around the Washington Metro area. Local authories will be using chlorine to treat the water drawn from the Potomac River that serves Arlington County, Falls Church, and the parts of Fairfax County whose water is through the Falls Church system.

The flush begins today, April 6th, and will continue until May 4th.

For more details, please refer to the Washington Post article from March 31st.

March 2009 Real Estate Market Snapshot - Arlington, VA

It's that time again...a closer look at Arlington Virginia real estate stats for March 2009.
160 Properties sold in Arlington in March!

Condos in Arlington
1 bedroom, 1 bath
Avg: $290,953
Avg DOM: 89 days

2 bedroom, 1 bath
Avg: $271,240
Avg DOM: 64

2 bedroom, 2 bath
Avg: $422,590
Avg DOM: 87

*Please note: these statistics reflect ALL of Arlington for the month of March. It may not be an accurate reflection of your current property value. Please email me for more detailed statistics.

Townhomes in Arlington
Days on the Market range from 0 to 288 (avg was 67)
Avg Sales Price: $451,509

Single Family Homes
Days on the Market range from 1 -300 days (avg of 88)
Avg Sales Price: $607,196

Again, please note! Every neighborhood and building in Arlington is different. Square footage, age, upgrades, style, etc. all go into the art of pricing a home. This is a snapshot in time of what sold in March.

Green Living Expo in Arlington, Virginia

Arlington County has put together an program called "Green It!" A series of FREE workshops to help educate the community on environmentally friendly ways to live, work, and commute. The except below is taken from the Arlington County website on upcoming events:

Appliance Energy Use Demonstration
Saturday, April 11th, 3 - 4 PM. Compare the energy use of various everyday household appliances, and see how much "vampire" energy is being used by some of those appliances. This demonstration will be taking place as part of Arlington's Home Show and Expo! At the Home Show and Expo, come and get your questions answered about home improvement projects, building permits, zoning, home ownership, and related topics from County agencies and more than 50 businesses. The Arlington Home Show and Expo takes place from 10 AM - 4 PM. For more information, please call 703-228-3827. Walter Reed Community Center, 2909 S. 16th St. Arlington, VA.

Greening Your Apartment or Condo!
Wednesday, April 22nd, 7 - 8:30 pm. Come to this Earth Day workshop to hear from residents who have been catalysts to help their apartment or condo buildings go green, by expanding recycling, installing raingardens, rainbarrels, or reducing energy consumption! Get ideas and resources to use at your own complex! For more information or to register, call 703-228-3610 or email Aileen. Shirlington library, Campbell meeting room. 4200 Campbell Ave., Arlington, VA.

Rain Barrel Workshop
Saturday, April 25. 11 am - 12:30 pm. Walter Reed Community Center, 2909 16th St. South, Arlington, VA. Cost: $50 per barrel (two barrels per household limit). For more information, to register for a workshop, or see the FULL list of rain barrel workshops, check the Rain Barrel Workshop web site.

Speed Greening
Thursday, April 30th, 7-9 pm. Forget speed dating - come to this "speed greening" session to learn about several green topics at one event! Topics include Top 10 Ways to Go Green at Home; Review of Tax Incentives for Energy Efficiency, and Going Green to Sell your Home. Attend one session or all three! For more information, or to register, please email Helen or call 703-228-4792. Walter Reed Community Center, 2909 S. 16th St., Arlington, VA.

Virginia Invasive Plant Removal Day
Saturday, May 2nd. Natural areas continue to be threatened by non-native species that affect plant and wildlife communities. Join in this state-wide invasive plant removal day - find events in your area!

Bike Maintenance 101
Saturday, May 2nd 10:30-11:30am. Does your bike shake, rattle, and roll? Dust off your bike just in time for Bike to Work day on May 15th. This FREE bike maintenance class at Conte's Cycles in Ballston will help get your bike rolling! You'll learn hands-on basic bicycle maintenance for road bikes and mountain bikes, and how to patch and change your own tires, service your drive-chain, and perform preventative maintenance that will prolong the life-span of your bike. For more information or to register, email Adam or call 703-228-3066. 3924 Wilson Boulevard, Arlington, VA.

Air Flow and Energy Leaks in your Home
Saturday, May 9thth 2:00-4:00pm. Did you ever wonder how air flows through your house and where the leaks are? Come to this workshop to learn how energy flows through a house, where air leaks typically occur, and to see a variety of products or methods that can fix these problems. For more information, or to register, please email Helen or call 703-228-4792. Fairlington Community Center, 3308 S. Stafford St. Arlington, VA.

Bike to Work Day.
Friday, May 15th. Join thousands of area commuters for a celebration of bicycling as a clean, fun and healthy way to get to work! Meet up with your neighbors at one of 27 pit stops all over the region. Find out more or register for the event!

Composting Essentials
Saturday, May 30th. 11 am - 1 pm. Come to this workshop to learn how to transform leaves, grass, and weeds into compost -- the prized Gardener's Gold. This session includes a hands-on compost demonstration featuring several types of compost bins. Free. Reserve your seat now by calling 703-228-4797 or email Sarah. Potomac Overlook Regional Park, 2845 N. Marcey Rd, Arlington, VA.

Green Home and Garden Tour
Sunday June 7th, 1 - 5 pm. Take part in this tour to see homes with solar elements, green roofs, recycled materials, and energy efficient technologies. Some homes will feature gardens full of native plants, raingardens, rain barrels and cisterns, permeable pavement, wildlife habitat, and other environmentally friendly features. Check back here for the tour brochure after May 1st.

Greening Your Small Business
Wednesday, June 24, 8:00 - 10:00 am. Operating a green business is not only good for the environment but good for your business's bottom line. Come to this seminar to learn how Fresh AIRE (Arlington Initiative to Reduce Emissions) can help you add value to your business through a variety of green measures. This seminar will also feature Arlington-based small businesses that have reduced their environmental footprint and achieved savings. FREE. Registration is required. For more information, contact Darnell Roseboro at 703-228-0833.

Neighborhood Spotlight: Colonial Village, Arlington, VA

This week's Neighborhood Spotlight is on Colonial Village in Arlington, VA. The condominium subdivision has 3 parts (C.V. I, II, and III). Originially built in the 1930s/40s, it was redeveloped into the current condo community in the 80s. The neighborhood has 212-units and 74 parking spaces (NOTE: All parking spaces are BACK-IN ONLY!). Most of the units are 1 bedroom or 2 bedrooms, with a few studios; all of the units have 1 full bath. Colonial Village is located a few blocks from the Courthouse Metro stop (see the map below).

I was quoted in an article for DC Urbanturf about the community has a great investment opportunity. Until recently, there were no foreclosures in the community, but since that article I have seen 1 or two. Condo fees and prices are very reasonable by Northern Virginia standards, and rents are high, so it's possible to generate some positive cash flow from the units. Some stats are below:

2008 Numbers:

1 Bedroom, 1 Bath Units:
17 sold
Avg Sale Price: $271,458
Avg Days on Market: 36

2 bedroom, 1 Bath Units:
7 Sold
Avg Sale Price: $339,086
Avg Days on Market: 31

2009 Numbers (so far):

1 Bedroom, 1 Bath Units:
5 sold
Avg Sale Price: $259,313
Avg Days on Market: 143

2 bedroom, 1 Bath Units:
1 Sold
Avg Sale Price: $340,000
Avg Days on Market: 25

Colonial Village is a great garden-style condo community. If you're looking for more information on it, i'm happy to help.

Washingtonian's "75 Best Bars" Highlights 5 in Arlington

There's always somewhere new to explore in the Washington, D.C. area, and the March issue of the Washingtonian highlights some new ones. Of the 75 "Best Bars" in the area, 5 from Arlington were ranked. They are:

Eatbar (adjacent to Tallula) - 2761 Washington Blvd, Arlington - 703.778.9951

Liberty Tavern- 3195 wilson boulevard, arlington - 703.465.9360

Guarapo - 2039 Wilson Blvd. Arlington - (703) 528-6500

Carpool - 4000 Fairfax Drive, Arlington VA - (703) 532 7665

Galaxy Hut - 2711 Wilson Blvd, Arlington - (703) 525 - 8646

Jaleo was an honorable mention(they have 3 locations throughout the area) for having the
best sangria.

Cafe Asia was ranked as having the best happy-hour specials. (Their sushi isn't bad either!)

Spring Real Estate in Arlington, VA - A Price War!

As we near the end of March (where does the time go?) and great ready for April, I decided it was time to revisit some Arlington statistics. I pulled some stats on Single Family Homes in the zip code: 22207 (Country Club, Country Club Hills, Lee Heights, Berkshire Oakwood, and more of the neighborhoods around North Arlington). I only pulled these stats for 22207 because the numbers for all of Arlington vary. I'm happy to research and explain the different trends throughout the county.

2007 2008 2009
Contracts Ratified
January 3 14 10
February 34 27 9
March 47 23 21 (so far)
April 30 32 TBD

Average Sale Price $873,603 $877,244 $739,607

Average Days On Market 99 73 64

Total Sales 94 55 25 (so far with 33 more under contract)

So what do these numbers tell us? Prices are a little lower strictly based on statistics because fewer of the higher end priced homes (think over $1M) are selling. Because jumbo money is harder to come by these days, the lower priced homes are selling more frequently and faster. Sales this year are lower than in years past, but it's still a buyers market. Things are selling faster because prices are better and interested buyers are moving quicker.

Some observations on the local market that can't be captured by statistics. There are so many homebuyers out there looking right now. People looking to capitalize on the new tax credit, historically low interest rates, and lower prices. I've seen multiple offers on properties within days of coming onto the market. Now is the time to start looking and exploring your options for buying! April and May look to be busy times in the Northern Virginia and Washington, D.C. real estate markets.

For sellers, price is everything. There are people who want to buy your house!

2009 Cherry Blossom Festival - March 28 thru April 12

Every year in Washington, D.C. we welcome the beginning of Spring with the National Cherry Blossom Festival. The event commemorates the 1912 gift of the cherry blossom trees to the US from Japan, in recognition of the enduring friendship between the two countries.

2009 Dates will run beginning March 28th thru April 12th.
They predict peak bloom period to be April 1st thru the 4th.

Location Information:
401 F Street, NWTake Metro to Judiciary Sq Station, Red Line

Opening Ceremony:
Saturday, 3/28, 4 - 5:30pm

Event Scheduled:
Visit the NCBF Website for schedule details.

2009 Washington Nationals - Let's Go Nats!

"Take me out to the ball game,
Take me out with the crowd.
Buy me some peanuts and cracker jack,
I don't care if I never get back,
Let me root, root, root for the home team,
If they don't win it's a shame.
For it's one, two, three strikes, you're out,
At the old ball game."

It's that time of year again!!! Baseball season! The Washington Nationals are set for their Home Opener against Philly on April 13th at 3:05 pm

So far in Spring Training this year, the Nats are 9-12 (a better start than their 59-102 record last year!)

If you're looking to buy tickets, or check out their game lineup, check out their Schedule here.
If you didn't get a chance to check out the new stadium last year, make sure you make an effort to surpport the guys this year. It's very easy to get to from the Navy Yard (Green Line) Metro Stop (just be prepared for long lines to get on the metro).

Good luck in 2009 Nats!

Selling Stats for Arlington County, Virginia - Priced Well and Selling Fast!

My Falls Church Selling Statistics blog inspired me to run the same stats for Arlington County since the beginning of 2009. The stats below are for any listing in Arlington County (condo, townhome, or single family):

Since 1/1/09:
265 properties have sold
38 (14%) sold in 7 days or less101 (38%) sold in 30 days or less
287 properties are currently under contract and waiting to close

53 (19%) went under contract in 7 days or less
110 (38%) went under contract in 30 days or less

I am seeing activity pick up as many first-time buyers are looking to take advantage of the new $8,000 tax credit (FYI - if you haven't bought anything in 3 years, they look at you like a first-time buyer and are eligible for the credit). In this market, every buyer is looking for a good deal on their purchase....giving them a great price is a great way to solicit offers from buyers.

Falls Church, Virginia - Selling Fast and with Multiple Offers!

This weekend when I was out with some new buyers in Falls Church looking at homes, we had to opportunity to see a brand new listing, 1 day old, on a great house. The listing agent had under priced the property by about $30-$40k in order to sell the house quickly...and that he did.
The house, sold "as-is" by the current owners, had 6 contracts in 2 days (1 on the first day).

This inspired me to look at some of the neighborhood numbers for Falls Church:

Of the 187 Sold listings since January 1st:
25 (13%) sold in 7 days or less62 (33%) sold in 30 days or less

Of the 252 listings currently under contract:
44 (18%) sold in 7 days or less98 (39%) sold in 30 days or less

Those are HIGH! I heard a great analogy for this market, and since I didn't come up with it - I can't take credit for it. Selling in this market is like:

"A price war in a beauty market"

What does your house have to offer a buyer? How much value does that give them over the competition? How quickly do you need or want to sell your house? Those are all important questions when getting ready to sell...

Restaurant Spotlight: Mamma's Kitchen in Alexandria

I had the pleasure of trying out Alexandria's new Italian/Greek/American restaurant - Mamma's Kitchen. Open just 6 weeks now, the restaurant was busy, the service was great, and prices affordable. Here's a snippet of the menu:

Appetizers (Tzatziki w/pita, Hummus w/pita, Calamari, Fries, and more)

Gyros (Beef, Lamb, Chicken, Original)

Gourmet Pizzas with any topping you want: PEPPERONI, ITALIAN SAUSAGE, HAM, BACON, GROUND BEEF, GYROS MEAT, ANCHOVIES, Fresh MOZZARELLA, FETA CHEESE, PROVOLONE, RICOTTA, GREEN PEPPERS, ONIONS, BLACK OLIVES, MUSHROOMS, ROASTED RED PEPPERS, BROCCOLI, BABY SPINACH, FRESH GARLIC, SUN DRIED TOMATO, EGGPLANT

Paninis (I had the CHICKEN, SPINACH, PORTOBELLA & CHEESE - excellent!!)

Subs (Italian Sub, Chicken Cheesteak, Steak & Cheese, Chicken Parm...etc)

Sandwiches (Reuben, Club, Hamburger, Cheeseburger, and more)

Pastas (Moussaka, Lasagna, Chicken Parm, Chicken Florentine, and more)

Desserts (Baklava, Flogeres, Cheesecake, Tiramisu, and more)

Where: 7601 Fordson Rd off Rte 1
Alexandria, VA

Enjoy!!

What Was I Thinking? I Turned Down A Listing?

Much to my dismay, I still can not believe I walked away from a listing priced near $1M. Why did I walk away? Because that's about $130-$140k over what it's currently worth.

I just celebrated my 1 year anniversary as a licensed agent in Virginia. So needless to say I get excited at every opportunity I have to work with either a buyer or seller in this market. So this weekend when I was holding an open house in Arlington, I had a neighbor come through with a few questions about selling. Much to my surprise, I learned she was trying to sell her house herself - with no luck. She invited me to her house for a 2nd opinion of her price and techniques. Before going to the meeting, I pulled some comps to support my opinion of her pricing.

After Mrs. Seller showed me her wonderful house, which is in a prime location for Arlington.

We began some dialogue about pricing and how the market has been in North Arlington. It became very clear to me almost immediately that Mrs. Seller and I would not be coming to an agreement on price. Unfortunately, my analytical mind lets the market determine how much I think we should price the property - with influence on their motivation. So after much deliberation, I was very honest with her and said,

"I'm afraid I don't think I can sell your house for the value you're looking for. I fear that you will be unhappy with me when/if I can't sell it for that price, therefore, I think it would not be in our best interests to work with each other. However, if your situation changes, and you're willing to reconsider, I would love the opportunity to talk with you again."

I got into real estate to help people buy and sell their homes. In taking a listing I knew was overpriced, I believed I would be doing both of us a disservice. In this market, it's a "price war in a beauty pageant."

Luxury Living in Arlington, Virginia: The Dakota Condos

Built in 2002, this 14-unit luxury condo building is located at 1555 Colonial Terrace in Arlington, Virginia, near Rosslyn. The 7-floor building features 2 bedroom, 2.5 bath units with open floor plans, high-upgrades, and beautiful views of Georgetown. Units feature garage parking, balconies/decks, and so much more.

(map courtesy of maps.google.com)

The Dakota is surrounded by other condos and townhomes, and is ideally located near the Rosslyn Metro, and I-66 and Rt 29 into Georgetown and the District of Columbia.

Curious about prices? Penthouses range upwards of $1M, and lower levels are upwards of $600k.

At the end of January the numbers indicated that prices were about 20% lower than those of January 2008. If you're looking to broaden your investment portfolio to add some real estate, now is definitely the time to start looking! With changes on the horizon, some people will greatly benefit from the tax breaks and incentives the stimulus bill offers.

So why not work with an REO (Real Estate Owned, i.e. Bank Owned) Specialist? I recently received a certification from the Loss Mitigation Institute as a Certified REO Specialist. Over 50% of my buyer activity last year was focused on foreclosures in Arlington, Alexandria, Falls Church, and Woodbridge.

Looking to learn the difference between a Short Sale - Foreclosure Auction - Bank Owned Property? Let's talk about it!

Arlington Virginia Real Estate Sales 2009 Year to Date

I can't believe we're already into March! Nor can I believe it actually snowed on March 1st and 2nd!! Here the numbers for January and February 2009 (as of 3/2/09):

Total Arlington Sales: 209
22201 - 23
22202 - 15
22203 - 30
22204 - 58
22205 - 14
22206 - 28
22207 - 22
22209 - 15
22213 - 4

Did you know the even zip codes (22202, 22204, 22206) are the South Arlington Zip Codes? All of the other Zip codes are North Arlington.

22201 - Of the 23 sales, 4 were townhomes, 14 were condos, and 5 were single family homes.

22202 - Of the 15 sales, 5 were single family homes, 6 were condos, and 4 were townhomes.

22203 - Of the 30 sales, 8 were single family homes, 3 were townhomes, and 19 were condos.

22204 - Of the 58 sales, 15 were single family homes, 15 were townhomes, and 28 were townhomes.

22205 - Of the 14 sales, 12 were single family homes, 2 were towhnomes, and none were condos.

22206 - Of the 28 sales, 2 were single family homes, 19 were townhomes, and 7 were condos.

22207 - Of the 22 sales, 15 were single family homes, 4 were townhomes, and 3 were condos.

22209 - Of the 15 sales, none were single family homes, 2 were townhomes, and 13 were condos.

22213 - Of the 4 sales, 1 was a single family home, 1 was a townhome, 2 were condos.

Who had the most expensive sale? 22207 - in Lee Heights for just over $1.44M

Look for more specific market data by zip code to follow.

Some Monday Morning Inspiration! Art Williams on Winning in Business - "Do It"

This morning I woke up to a blizzard in Arlington, Virginia - you know the type of morning that makes you want to crawl back into bed and sleep? It's mornings like today that need extra motivation and inspiration. Below is a video of Art Williams, a billionaire and found A.L. Williams & Associates, known as Primerica Financial Services since 1991. This speech, titled "Do It," was delivered in 1987 to the National Religious Broadcaster Convention. It's interesting to hear him talk about the "current" economic situation back in 1987, compared to the similar times we're facing now. I hope you enjoy this little bit of motivation:

Watch Art's speech, here.

Thinking of Investing in Arlington or Falls Church? Some Tips!

Real estate investing, a great way to diversify your portfolio for long-term planning. Especially now.

With rates low, and prices hit, it's like we're having a "Real Estate Sale." Meaning - it's a great time to invest! Arlington was voted one of the best places to live during a recession, since Northern Virginia and the Washington, D.C. Metropolitan area is in it's own bubble. Since real estate is local, each market has individual characteristics that make investing smarter. Some of them are:

1. Real Estate Type. You'll get faster and greater gains by investing in a single-family home, versus a townhouse, and even more so than a condo. Condos make for great living, but high condo fees eat into cash flow. Also, single-family homes appreciate at a faster rate than condos

2. Location, Location, Location! Staying along the orange line corridor (Rosslyn, Courthouse, Clarendon, VA Square, Ballston, East Falls Church, West Falls church, and Vienna) will warrant higher prices than those outside of walking distance to the metro.

3. Comps. Have your Realtor run rental comps for the neighborhood and similar properties. Your safest estimate for rental income should be the lowest rental comp. If you end up getting a higher rent - GREAT! - but better to estimate low, than estimate high and have to shell out additional money to cover your mortgage.

4. Fixer-Uppers. Sweat equity is great potential for a higher return on your investment, especially if you intend to hold it for a few years before you flip it. For example, many of the Falls Church properties up for sale now are in the $300k range - rewind to 2005, and they were in the $500k's (there's an example of where the market went wrong!). Look for the potential to knock down a few walls, redo a bathroom, etc. to improve market value.

5. Intangibles. Look for the intangibles of a property that will make it more appealing to buyers and tenants. Charm? Character? Or better yet, the possibility to add some.

There are so many great books on investing in real estate, but if you're curious to see how you can become an investor in your local market, talk to a local Realtor. We're always willing to help!

Exciting News about Keller Williams Realty: #3 in the U.S.!

This past week I had the fortunate opportunity to attend Keller Williams Realty Family Reunion in Orlando. During our 2009 State of the Culture Session, it was revealed that Keller Williams is now #3 in the United States for the number of active agents in the company.

I am so proud to be affiliated with such an amazing company! Congratulations to all of my fellow KW associates!

How Obama's Stimulus Plan Helps Buyers and Home Owners

Some potential benefits for buyers from Obama's 2009 Stimulus Plan:

-$8,000 tax credit - a true credit to a first-time buyer, does not have to be paid back if the buyer lives in the subject property for at least 3 years (begins to phase out for couples earning more than $150k, and singles earning more than $75k) for purchases before December 1, 2009
-Increased Conforming Loan Limits - for the Washington, D.C. metro are, loan limits are back up to $729,750; after Jan 1, loan limits were dropped to $625,500

Some potential benefits for home owners from the plan:
-Home Improvement Tax Credit- Everyone's talking about going "Green" - now you can get paid for it. Making your condo energy efficient makes you eligible for a credit of 30% of the cost of the improvement, up to a maximum of $1,500 (or a total cost of $4,500).

We will see when these become official, and how they'll affect the market. With spring around the corner, buyer and seller activity will/is picking up.

Big Brother Is Watching! Cameras to Return to Northern Virginia at Stop Signs and Intersections

I always dread driving on the I-395 from Rt 50 (New York Ave) in Washington, D.C. into Virignia because I know there's a TINY little camera at the end of the tunnel waiting to snap a photo of my license plate and slap me with a $100 fine if I go above 40 miles/hour. So bad news for me - those cameras will soon return to Arlington, Faifax County, and Alexandria.

Arlington visitors should take note - cameras will be operational by April. Locations for the cameras have been decided:
-4 Cameras along Lee Highway (Rt 29)
-N. Glebe and Fairfax Dr (Ballston)

Fairfax County is still waiting for the Virginia Department of Transportation approval for installation, but they expect those cameras to be operational by the Fall of 2009.

Maximum fines? $50.

Arlington Virginia's 2009 Mardi Gras Celebration!

Fat Tuesday is right around the corner, February 24th...time to celebrate!!!!!

Tuesday at 8pm will launch the Arlington Mardi Gras Parade in Clarendon. Come down for the costumes, masks, food, and of course - the beads!! The parade features floats, community groups, and other local Arlington-ians celebrating the holiday.

Come support local Clarendon Businesses (restaurants, bars, clothes, etc) and groups..come meet your neighbors!

Get your beads on! Laissez Les Bon Temps Roulez!

Visit http://www.clarendon.org/ for more information on the upcoming event

The Williamsburg Condominium in Arlington, VA - 2008 in Review

The Williamsburg Condo is located at 1276 N. Wayne St, Arlington, VA 22201 - right on the edge of clarendon and courthouse. The building is a short walk to either metro stop, located near Whole Foods, Barnes and Noble, Office Depot, the Courthouse, Cheesecake Factory, and many more bars, restaurants, and shopping. The Williamsburg was built in 1992, and was built well!!

The 13-story, 266 unit building features a pool, sauna, gym, outside gazebo, conference and community room, on-site management, underground parking, and much more.

Of the 20 sales in the building last year, NONE were distressed properties! Not one was a short-sale or bank-owned property...great for the resale of these units for the current owners. Here are the averages for the building:

1 Bedroom Units: Sold in 29 days for $368,733
1 Bedroom w/Den Units: Sold in 80 days for $462,700
2 Bedroom Units: Sold in 36 days for $543,073
3 Bedroom Units: Sold in 49 days for $715,000

There are 6 properties currently for sale at The Williamsburg, all are 2 bedroom or 2 bedroom w/den units (as of 2/11/09)

Laura Rubinchuk
Keller Williams Realty
McLean, VA
703.283.6120

Virginia to Ban Smoking in Bars and Restaurants!

With so much change in the past year, it comes as no surprise to find out that Tobacco Country will ban smoking inside bars and restaurants, finally! Following in the footsteps of states like California, New York, and neighbor the District of Columbia, Virginia will soon be among the smoke-free states. With some exceptions, like rooms with their own private ventilation system, and/or private clubs...July 1st will mark the beginning of this new era.

For those of you who don't know why I called Virginia "Tobacco Country," Richmond, VA is home to Phillip Morris, one of the largest manufacturers of tobacco products in the country.

I once did an economic analysis paper for my graduate degree on the Clean Air act in New York City to see the effect of the smoking ban on sales in bars and restaurants. The data collected showed no significant economic effects for local owners in their sales receipts.

AOL's Smartest Suburbs and Towns - #4 McLean, Virginia

AOL rates America's most educated towns and suburbs and found that McLean is #4 in the country. Check out the statistics:

Total Population: 40,457
Advanced degrees: 45.9%
Bachelor's degrees: 33.4%
Associate degrees: 3.0%

AOL says, Mclean is "close to Washington, D.C., McLean draws the intellectual elite with high property values and several close parks. Home to many politicians and high-ranking government officials, it's also the location of Robert Kennedy's former home, Hickory Hill."

Curious who was #1? Our neighbor - Bethesda, Maryland!
Total Population: 56,842
Advanced degrees: 51.5%
Bachelor's degrees: 29.0%
Associate degrees: 3.8%

"Professors from Georgetown, lawmakers from the capital and researchers from the National Institutes of Health give Bethesda, Md., a preponderance of advanced degrees. In fact, the percentage of advanced degrees in Bethesda is more than five times as high as in the entire U.S."

Professor Dr. Stephen Fuller's 2009 Economic Outlook - Will the Spring Bring Roses?

Stephen Fuller, PhD: Dwight Schar Faculty Chair, University Professor, Director at the Center for Regional Analysis at the School of Public Policy at George Mason University gave a talk last week on his 2009 Economic Outlook. Here's a recap of what the experts predict for our local Washington, D.C. Metropolitan economy and real estate market.

Current Conditions for the Washington, D.C. Area

• Our local GDP (Gros Domestic Product) is positvie: at about 1%, versus the national average at about -2.5%


• Employment: Washington, D.C. had an incrase of about 31,100 jobs from Nov 07 - Nov 08 - one of only 5 cities with positive growth (along with Dalls, Houston, Boston, and Seattle).


• Unemployment Rates: DC is lower than the national average of just over 7% - we're at about 4.5% - We have the lowest unemploment rate of 15 of the largest job markets


• Real Estate Price Trends: It appears that from 1999, the Washington Metro area has experienced an increase of about 8% in average sales price each year for all housing types


• Overall: Arlington has the lowest foreclosure rate of all of the counties in Northern Virginia/District of Columiba/Maryland
  

Future Outlook

• Employment: Overall, they predict a 23.6% employment growth for the entire region


• Economic Outlook: With a little dip this year, Dr Fuller predicts strong growth towards the end of 2008 and into early 2009, he anticipates growth this year and even more into 2010 and beyond.
  

For details on the entire presentation, visit their website at http://www.cra-gmu.org/

Do You Know What a BPO Is? If You're Buying A Short Sale - You Should!

What does a BPO stand for?

Broker's Price Opinion

What does that mean? When a bank gets wind of a potential short-sale, i.e. the seller has gone through the required steps so the bank actually gives them the OK to proceed...they'll ask a local real estate agent to do a BPO. The agent will then perform a comparison with recent sales, market data, the house condition, etc when they set their recommended price.

Here's the key...

If the BPO isn't done....the bank has NO idea, NONE, what the value of the house is. That asset manager sitting at their desk in Tulsa has no way to evaluate the subject property in Virginia without the help of a local expert. Again - real estate is local. This is where the LONG delay comes in with short sales.

Getting the BPO approved means the bank acknowledges the property is up for sale, and at the recommended price. This way, when they get an offer near/at the price, the process to move forward and get the contract ratified can be QUICK!

Short sales can be tricky, and long, and frustrating, and costly (opportunity costs for the time spent waiting). It's better to get as much information as you can before you head blindly into one.

2008 Review of The 1021 Clarendon Condominium

After taking a look at Station Square, I thought we'd compare it to it's neighbor on 1021 N Garfield St - 1021 Clarendon. This condo building was built in 2005. The sheer number of units in the building - 417 - can explain some of the variations in the building. This building in particular has been hit pretty hard in 2008 by short sales and foreclosures. Although it is FHA approved, there are many investors in the building that may have gone belly up on their investments (condo fees tend to eat into cash flow), and caused some of the units to be lost.

28 Units Sold in 2008
1 bedroom units: Average Sale price: $371,500, 53 Days on the Market (DOM)
1 bedroom w/den: Average Sale price: $422,123, 15 DOM
2 bedrooms units: Average Sale price: $524,000, 96 DOM
3 bedroom, 2 bath, 2 parking spots: $680,000, 48 DOM

Through public notices, I know of 2 more that are up for auction in the next month...many of the properties sold in 2008 were short-sales, and the ones that were sold at auction don't factor in to these numbers. These sales only reflect those shown in our local MLS.

It's interesting to see how different buildings, even 10 feet from one another, fair differentlyin this market. There's a lot to consider when debating where to buy your next/first/future home, or investment. Now is a great time to grab a deal....so if you're interested in learning why and where, i'm always open to questions!

Brand New D.C. Condo! Now Sold!

Thank you ActiveRain yet again....for helping me sell a brand-new, beautiful, 1 bedroom + den condo located between Logan and Thomas Circle in Washington, D.C. Below is a picture of the building, located on 13th St NW, just 2 blocks from Thomas Circle. It's a totally renovated building, of what used to be a liquor store.

1209 13th St NWWashington, D.C. 20005
The Fennessey Lofts

I love when I answer the phone and i'm greeted with "Hi Laura, I found you on ActiveRain and I am looking for ....."

Happy Blogging!!!

2008 Review of The Residences at Station Square Condominium in Arlington, Virginia

Located at 1201 N. Garfield, 1205 N. Garfield, and 1220 N. Fillmore St in Arlington, Virginia, these are the 3 buildings that make up The Residences at Station Square Condominium.
The building was built in 2005/2006 (different buildings were finished at different times). At the tender age of 3, 17 different units changed hands last year. Here's a recap of the sales (all average sales prices are NET, difference of sales price and any subsidy provided by the seller to the buyer):

17 Total Units Sold
Studio: $284k, 56 days on the market (DOM)
1 bedroom: $372k, 12 DOM
1 bedroom w/den: $440k, 104 DOM
2 bedroom: $545k, 85 DOM
2 bedroom, 2.5 bath - some with den: $709k, 74 DOM
(Prices ranged from $649,900 for a 2 bedroom, 2.5 bath to $850k for a 2 bedroom w/den, 2.5 bath unit)

This newer building is just 2 blocks from the Clarendon Metro, 2-3 blocks from Whole Foods, Restaurants, Shopping, etc. It features a pool, office, a Golds Gym, and a party room.

Attention Investors! Washington, D.C. Now Your Best Bet!!

According to Forbes Magazine and the Association of Foreign Investors in Real Estate, Washington, D.C. has now been named the #1 place to invest in real estate.

The District of Columbia beat out New York City and London, the 2 cities usually competing for top spot on this chart. D.C. is expected to gain in investment value due to the anticipated increased spending, growth in jobs, and demand in housing needs for employees.

Average Sales Price for Single Family Homes in Washington, D.C.:
2004: $510,496
2005: $628,179
2006: $644,115
2007: $687,459
2008: $663,507

Average Sales Price for Condos/Coops in Washington, D.C.:
2004: $364,460
2005: $426,576
2006: $406,501
2007: $405,271
2008: $411,663

As you can see, while some markets in 2008 dropped values in double digits, condos GAINED in price overall, and single family homes are still above 2005 prices.

Ready to start looking? Let's talk! 703.283.6120

Arlington Virginia Restaurant Spotlight: Mexicali Blues

Good Margaritas are hard to find, so i'm happy to share my local Margarita house - Mexicali Blues in Clarendon, Arlington, Virginia. Great Mexican food, great service, great place. Whether it's sitting outside on Wilson Blvd during the warm weather, or inside enjoying their food, Mexicali Blues is sure to hit the craving for Mexican.

Their menu offers great Guacamole, Fajita Steak Salad, or Tacos. Check out their full menu here.

They have seasonal beverages to spice up the menu, so visit often to try their latest sampling!

Located at 2933 Wilson Blvd in Arlington, just 2 blocks from Station Square Condo, 1021 Condos, The Phoenix, and more.

Open Sun-Thurs, 11am to 10pmFri & Sat, 11am to 11 pm

2009 Arlington Tax Assessments - Now Available!

Thinking the Arlington real estate market is down in the dumps? Not according to the Arlington tax assessor. With the exception of a few neighborhoods in Arlington, your taxes are going up.

Arlington assessments are calculated in the following way:

The general tax rate is $0.848/$100 of assessed value.

Looking for the taxes on a future property you've been eyeing? Check it online here.

Then call me to find out how we can find you a new home in Arlington, Virginia.

Year-End Review - How Did 2008 Compare to 2007?

A stimulus package.
A Presidential Election.
A $7,500 first-time home buyer credit.
Historically low interest rates.
Increased Loan Limits.

How did these policies and changes in 2008 affect our local real estate market? Let's take a look:

The Verdict? Volume went down, prices went down, and time on the market went up. Not a big surprise. But what does this mean heading into 2009?
-Opportunities for affordable housing are in the buyers favor-Low interest rates makes affordable housing prices into affordable monthly payments-Opportunities for increased equity years from now are huge

We are clearly in a buyers market here in Northern Virginia. If you're looking for the "bottom," you may have already missed it. Remember the saying "hindsight is 20/20"? That's because you only know when you've hit bottom after you've passed it.

Data discussed for Northern Virginia includes the following: Counties of Fairfax and Arlington; cities of Alexandria, Falls Church, Fairfax; towns of Vienna, Herndon and Clifton. (Loudoun County not included in Northern Virginia data). All data was supplied from NVAR.com.

December 2008 Northern Virginia Real Estate Market Update

Better late than never! Here's the real estate market update for Northern Virginia last month.

Total Homes Sales: 1,510, that's 26% more than 2007
Absorption Rate (months to sell through the current inventory): about 5 months, about 2 months less than this time last year
Average Sales Price: Down about 22% from December 2007
Average Days on the Market: things sold faster! 92 days this month, versus 103 for 2007

These statistics are for the entire Northern VA area - Arlington County, Fairfax County, the cities of Alexandria, Falls Church, and Fairfax. Also the towns of Herndon, Clifton, and Vienna.
The advantage of writing this mid-January is that I have a better perspective on the market now. Rates are low, prices are low, and buyers are coming out with an eagerness I haven't seen in months. Now really is the best time to get real estate "on sale" and a discounted interest rate.

Call me for more information....703.283.6120

The Nightmare on Pennsylvania Avenue....and the Surrounding States!

I was driving through our nations Capital this morning when it occurred to me that it took me an HOUR to get from the bridge from Virginia to Constitution Ave to Columbia Heights. An hour! That is twice as long as it should!! I realized the inauguration craze has already begun. With the expected influx of visitors into the District of Columbia, things are about to get a little crazy!

If you're planning on joining the festivities and events for the inauguration of our next U.S. president, please take head from the following announcements, and get your walking shoes ready!

The secret service has released transportation plans for the events:
ALL bridges into and out-of DC from Virginia will be CLOSED, except for Bus traffic beginning January 20th, until morning rush hour the next day.

The black line below, is about a 3.5 mile radius of DC that shoes vehicle road closures.

You'll want to make sure that if you plan on driving, you think otherwise! The metro, the bus, your walking shoes..all great alternative options for getting into D.C. for inauguration day.

For a full list of road closures for Maryland, D.C., and Virginia, visit this website.

My First Foreclosure Auction in Arlington!

On Friday, I had the exciting opportunity to go to a foreclosure auction on a property in Arlington, VA that my client was bidding on! We had written an offer on the property when it was on the market, but the bank foreclosed when he didn't accept it. I had no idea what to expect, so let me retell my experience for those of you who are curious!

1. Let's clarify what a "foreclosure" means: the terminology gets thrown around a lot, but a "foreclosure" is actually when the property is up for auction! If no individual buys it at the auction, technically the bank buys it! When the property comes back on the market through a Realtor (R) after the auction process, it's actually a bank-owned property, or Real Estate Owned (REO) - not a foreclosure as we commonly call it.

2. What the expect when you have nothing to expect! Be prepared for a very fast talking man in a suit representing the Trustee (in most cases an attorney's office). He'll read through the public statement, then tell you the opening bid on the property. He'll ask for bids...if you bid, be prepared to show him your deposit. Most ads will say "minimum X% or $X, whichever is the lowest of the 2." It'll be a cashier's check made payable to the trustee. He'll say "going once....going twice....sold for $xxx." Then you usually sign a one-page contract (which is advertised as your right to preview before the auction, but if you can ever get a live human being on the phone from one of these attorney's office...please share your secret!!)

3. I won?! Now What? Now, they give you a 15-day close period....and you're buying it subject to any other liens on the property. DO A TITLE SEARCH!! You want to know what you're getting yourself into! You need to know if the 1st, 2nd, etc. lien holder is foreclosing. This is CRUCIAL! It'll impact your top bid price tremendously, if you're buying the property subject to an additional $100,000 lien!

Also, another note...don't be intimated!! This particular auction had about 20 bystanders, and only 2 real bidders. The 3rd bidder bowed out after his opening bid! Go with confidence!

And..dress warmly!! They're held on the courthouse steps (usually) in RAIN OR SHINE!!!