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.