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!

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!

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