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.