Sausage and Law

Okay, I admit it.  I am an idealist... and I like to pretend that if we would all just do the "right thing" everything would be fine all the time.  But the reality is that isn't going to happen, and most certainly not when it comes to politics.... and it makes me sad. 

Plus, even good people trying to do the "right thing" get confused on what that is.  It's not always black and white when you stop to really look at the arguments in depth, something that is hard to do watching 5 minute clips on the news.   One has to hope that people we trust are really investigating the issues in depth, and giving us the short version accurately, so we know how to vote, what to support.

For example, when it comes to my business, I belong to many REALTOR associations - National, State and local.  They are supposedly all looking out for the interests of property owners, small business owners and REALTORS, I happen to be all three, and so I read the stuff they publish, carefully. 

The most recent magazine from the Virginia Association of REALTORs was highly political, and it made me so sad.  The board was quite upset with many of us who didn't donate our "fair share" to RPAC, that is the group that handles the political stuff for us - they lobby on the Hill, etc. etc.  They told us that while our organization has more cash on hand than most lobbyists, we didn't raise as much this year as we need to.  They say that our politicians, before they agree to meet with any group, look to the group's finances... both cash on hand and current contributions...before they decide to give our group (any group) the time of day to even be heard, and so, since we didn't pay into the fund enough this year we might not get to bend the ear of enough of our politicians to get support for the things VAR believes are important.

Don't be upset at VAR for this.  Or the other "special interests".  Nearly every group has a committee that is supposed to be convincing the lawmakers of what is "good"... the National Association of Homebuilders, the Teachers Association, everyone... no matter what you do for a living, or who you are (handicapped, immigrant, Christian, etc.) there is an association out there working to protect the interests of that group of people.  That doesn't upset me.  In order to maintain balance, every group of people needs to be heard, and we need to designate committees to do this for us because we can't all go to Capital Hill.

What upsets me is the stuff typed in bold... You mean we can't talk to our politicians unless we have enough money? I was shocked.  I suppose it shouldn't be shocking to me, but it was a moment in time that I was forced to take off the rose colored glasses. 

Then I think to the State of the Union address where President Obama said (last night) that any bill that comes to his desk with an earmark would be vetoed.  Sounds good in theory, but really?  Will that happen?

I used to work in Affordable Housing.  Again, great in theory.  There were these weird exceptions to the rules - rules Congress made up.  A consultant I know, John, was in the room when Congress was debating the laws.  He said Congressman A stood up and said we should have an exception for someone like his granddaughter... and then he described her situation.  Congressman B did something similar, and so it went.  In order to get the laws passed, many of those "exceptions" requested had to be included, otherwise the law wouldn't have enough momentum to pass. 

I've seen this process in action even trying to update Architectural guidelines for our neighborhood with a committee for our HOA. To get the votes, you have to "give" and make exceptions for the people who are there.  It's frustrating.

I remember John (the consultant I mentioned earlier) summing up the experience "There are two things you never want to see being made - Sausage and Law".  I think he was right.  Both sort of make me sick.

I hope God does bless the USA, because we surely need it.

It's Assessment Time Again! What's the Value of YOUR Property?

Well folks, it's that time of year again... time for real estate assessments.  I got mine in the mail today. According to this, the value of my property went up exactly 3%.  The tax rate is going up, too, so this means my real estate taxes are going to go up. Yuk. Yuk. Yuk.

Here in Loudoun County, the county assessor's office attempts to calculate the approximate fair market value of every property in the county.  Then the tax rate (now $1.30 per $100 of value) is applied to that value to determine your real estate taxes for the year. So, the higher your value, the higher your taxes. And if you're in a town, like me, you pay an additional tax based on that assessed value, too.

Determining Fair Market Value for every property in the county is no easy task.  They do this using a combination of methods, and they are often remarkably "dead on"... but it is NOT a perfect system, and if an error was made, it is your responsibility to catch it.

As a REALTOR, I check by pulling up data in the MLS on recent sales in my neighborhood.  Based on that, I determine if I think my house was valued correctly.  Most non-REALTORs will use the tax database to check local sales, and that is a good source, but it is not as detailed as the MLS listings which generally reflect details about the condition of the property, pictures of the property, terms of sale, etc., all of which impact value. 

Want to know a secret?  You CAN have access to the same information I do.  You can contact me directly to request that I run a report for you, which I am happy to do, or you can order an automated report at http://www.salesinmyneighborhood.info/.  Just fill out the form and within minutes, an automated report will be emailed to you.  If you live in a neighborhood of similar homes and there have been recent sales, everything you need will be right there.

However, like any automated report, this is less than perfect.  The more unique your property the harder it is for anyone, and especially any automated system, to determine the best comps for your home or property.  In that case, I recommend you contact me and ask for a quick CMA.... this will include comps hand chosen for your property, and will give you an idea of whether or not your property was reasonably valued by the assessor's office.

Once you have done a little research, if you disagree and want your assessment changed, requesting a review is simple.  Just fill out this online form (Click Here). 

If that doesn't get you the result you want, you can appeal the request to the Board of Equalization by June 1st. (Click Here for more information.)

I probably help 4 or 5 neighbors get their real estate taxes reduced each year, and I am happy to provide you with this data.  If you want to know a "big" secret  (shhhh!), the county doesn't put up much of a fight.  So, if you think the assessment is high, it makes sense for you to try to do something about it.

Be sure to call me if I can help!

Vicky Chrisner

703-669-3142

http://www.vickychrisner.com/

Is Your House Making You Sick?: Chinese Drywall

Chinese Drywall... we sort of hear about it from time to time, but what is it? Who has it? 

Should YOU be worried about it?

First of all, what is is?  Simply put, it is drywall made in China. 

The problem is it seems to emmit a gas, which corrodes many metals and can be very damaging to your health.  Click HERE to read one person's story.

If you do have it, what is the "fix"?  Sadly, it means all the drywall must be removed from the home. it's not cheap, and so before you buy a home, check it out.  If you find it, please follow the recommendations of the Virginia Dept of Health.

Where will you find it?  Apparently Virginia has had a number of cases, although I'll admit I don't know of any in the Dulles area - the most well known are in the Hampton Roads area.  But that doesn't mean it's not in our area.  

A home might have Chinese Drywall IF....

*  It was built or remodeled (new drywall hung) between 2003 and 2009.

*  It has a sulphur like smell (smells like rotten eggs).

*  Its wiring shows signs of corrosion.

*  The Drywall is labeled "Made in China" (a CLEAR INDICATOR, but please note that if it doesn't say "Made in China" it may still be).

I thought this video contained some interesting information on finding out you have Chinese Drywall.

If you're thinking of buying a home built between 2003 and 2009, you are probably a wise buyer and already are planning to hire a home inspector.  Make sure the inspector you're hiring understands Chinese Drywall and what to look for. 

If you already own and are seeing some of these signs, you had better check it out....especially if you're family is getting very ill and no one is quite certain why.  Watch the video if you haven't already.  They even show you some simple tests you can do yourself.

It's frightening to think your house could possibly make you sick, but it happens.  With Asbestos, Mold, Chinese Drywall and any number of other potential environmental hazards, when you're buying a home make sure that you do get a home inspector - a good one - who will be able to advise you of potential dangers and the cost to remediate or correct the problem.

 

Annual Coat Drive Was Huge Success

The Keller Williams Realty office in Leesburg, VA does an annual coat drive, collecting gently used coats for those in need in Loudoun County.  The coat drive starts during the holiday season, and this year's drive went through January 15th... ending just a few days ago.

I am so thrilled to annouce  what a great success it was! The coat drive resulted in 312 coats, 17 scarves, 12 gloves, 22 ball caps, 5 pairs of boots, and 12 winter caps delivered to Loudoun County needy families.

Our agents and their friends and families contributed, as did community members who simply heard about the drive through word of mouth or internet sources like the Leesburg Va Facebook Fan Page.  It was a great community effort, and was coordinated by Angela Gammon, who runs a property management business from the Keller Williams Realty Leesburg office.  Many thanks to everyone for their generosity!

Are Values REALLY Going Up? Let's Take a Look At Victory Lakes (Bristow)

Yesterday I received an email that read, in part, "I find it curious that realtors say "prices are going up" while the value of existing homes are going down.  Which is it??" 

Well, here's the thing.  When we talk about "the market" we are looking at the big picture. "Prices are going up" is a generalization and usually refers to "average" or "median" price points for a large area ~ like the Washington DC Metropolitan area.  It doesn't mean the price of YOUR home is going up.  It doesn't even mean that the price of the SAME home is going up, it means that we're seeing more sales at a higher price point.  It's a recovery sign, for sure.  But what does it mean to you?

Real estate is not just local, it's hyper local.

The person I was talking to owns a townhome in Victory Lakes, in Bristow VA, so I gave the specific examples.... in Prince William County, in a year over year comparison from December 2009 to December 2010, the median sales price is up almost 18%.  Then, in a similar year over year comparison for the same period, the zip code 20136 (where Victory Lakes is) the median price is down almost 24%. 

Bristow had a lot of building during the boom years.  As a result, most homeowners in that area remain "upside down" (owing more on their mortgage than their home is worth today).  So, when life happens, that house becomes a foreclosure or short sale, and that submarket is saturated with distress sales.  In neighborhoods where there are both "traditional" sales and "distress" sales, distress sales fetch anywhere from 5-15% less than the fair market value for an otherwise comparable traditional sale.  The more distress sales in a sub market, the less difference there is in sales prices.  If all your comps are distress sales, then your home, as a traditional sale, will sell for about the same as the distress sales.

In Victory Lakes, build out continues.  So, not only is a traditional seller competing with distress sales, so is the builder.  As a result, the builders must present a value.  For example, when looking for comps for this particular homeowner, I found the highest priced semi-comparable resale, a short sale, which sold for $275K, backed to a lake, had 3 finished levels (about 2500 sf), was an end unit and gorgeous.  Miller and Smith is currently selling similar sized homes, with 3 finished levels above grade, BRAND NEW and a detached 2 car garage for around $315/320K and they are paying closing costs for the buyer (assume about $10K for that).  While it is still higher priced than the resale/distress sales, it presents a value for the prospective home buyer.  So, a comparable "traditional" (non-distress) sale must fall in that range and have a comparable value in order to be even considered by potential home buyers.

Are you thinking of buying? 

Would you like to take a closer look at the area you're considering? 

Are you thinking of selling? 

Need to better understand your submarket?

I can help! 

Vicky Chrisner

Keller Williams Realty

703.669.3142

VChrisner@KW.com

Prefer an automated tool? 

Check out www.SalesInMyNeighborhood.Info ~ Enter your address and information about your home and a report is emailed within minutes, and will be updated monthly until you turn it off.  The best part? 

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Service areas include:   Bristow, Haymarket, Gainesville, Catharpin and most of Manassas in Prince William County; Centreville, Chantilly, Herndon, Reston, Fair Oaks, Oakton, Great Falls, McLean, Fairfax and Falls Church in Fairfax County; and Leesburg, Ashburn, Sterling, Dulles, Potomac Falls, Hamilton, Purcellville, Paeonian Springs, Round Hill, and all of Loudoun County!



Dr King and Fair Housing

Today is a holiday designated to remember Rev. Dr. Martin Luther King Jr and his many contributions to our society....not the least of which are laws (Civil Rights Act of 1964 and Fair Housing Law) ensuring that persons of all races have equal access to housing.

It's hard to tell when the Federal Fair Housing Act would have eventually been passed, or in what form, if it weren't for the life and works of Dr. King.  The Act had been bouncing around Congress for a couple of years, unable to get necessary support. 

Then on April 4, 1968 Rev. Dr. Martin Luther King Jr was assassinated.  "President Lyndon Johnson utilized this national tragedy to urge for the speedy Congressional approval [of the Act]".  President Johnson wanted the law enacted prior to Dr. King's funeral, as a tribute to his life.  The Act was finally passed and signed into law on April 11th, 1968, two days after the burial of Dr. King.

The Fair Housing Act (Title VIII of the Civil Rights Act, 1968) expanded the protections provided in the Civil Rights Act of 1964, prohibiting discrimination in the sale, rental and financing of housing based on race, color, religion, sex or national origin.  In 1988 the Act was further ammended, adding handicapped and familial status as protected classes. (Most states and many localities also have fair housing laws which identify additional protected classes of persons.)

 

Have you ever thought about how different our lives are because of these laws?  Would you, your family or friends have been permitted to live where you are today had the Fair Housing Law not been enacted?  Sadly discrimination in housing was everywhere, and it wasn't that long ago.
 

Our world is a truly different and better place, because of the work of Dr. King.  Take a moment today and pay tribute to his memory and how he has changed the landscape of our lives.

Sales Analysis in Stratford Club (Leesburg, VA)

Thinking of selling your condo in Stratford Club in Leesburg, VA?  Here's a little info you may find helpful.

First, a little background.  Stratford Club was a rental apartment community.  Toll Brothers purchased the community at the height of the market to do condo conversions.  They struggled like everyone else, and have rented many of the condos to keep some cash flow, prolonging the sales phase.  So, if you're planning to sell today you are still competing with the Toll Brothers sales office.

What's interesting is that converted condos have probably been lived in as rentals post conversion, and if not, they were at least lived in as apartments "pre conversion", so no one is moving into the covetted "NEW HOME"  they are all "used".  Yet, those being sold by the on site sales office continue to be more in demand. 

OK, enough background.  Here is what sellers really want to know... How much can I get?  For the "Arlington" (one bedroom floorplan without loft, without garage), here is what my preliminary research showed: 

1st time sales:  Homes purchased from Toll are selling for about $193,000 with Toll paying all closing costs (presumably around $6K worth) and one year condo fees (roughly $2500).  (If you're a seller, this means that the net is about $186,500). 

Resales:  To offset the various "advantages" that Toll has over most sellers, someone selling their similar condo, in similar condition, would need to be priced at a value to get the attention of home buyers.  My generalized estimate for a traditional sale comparable to the Toll homes being offered is that a seller could sell for $175K or so, with variations of $10K above or below that depending on specifics.

Distress Sales:  But here is the reality of the situation.... distress sales (foreclosures and short sales) are common in this neighborhood, and they are far more of a hassle for buyers.  Short sales are more plentiful than foreclosures and are the hardest of the hard for everyone... buyers, sellers, listing and selling agents.  So, to induce buyers to put up with the hassle, short sales must be priced at a true "bargain" price.   As a result, what we are seeing for that floorplan in that neighborhood are distress sales in the mid $140K's. 

A Final Note for Buyers:  A forty thousand dollar savings for a buyer is HUGE.  It is difficult to find anywhere near that kind savings in that price range. So, this is one example when it makes sense to consider a short sale over a traditional sale from the sales office.  There are hassles, and pros and cons, but that is enough of a discount for one to think "hmmm... this time, it might be worth it."

A Final Note for Sellers: If you have a condo in Stratford Club and would like a more specific CMA, please call.  You don't even have to clean your house, I can provide more customized information for you right over the phone, and if we can come up with some tentative strategies that might work for you, then I am happy to meet you in person and look at your condo and talk to you in more detail. 

Vicky Chrisner

Keller Williams Realty, Leesburg

http://www.vickychrisner.com/

703-669-3142

VChrisner@KW.com

Tips for Selling During the Winter Months

Use the Season to Your Home-Selling Advantage

It is generally thought that spring and summer are the best time to try to sell your home.  While these times do offer advantages, I have found that the increase in inventory offsets the increase in demand.  In other words, while more buyers may be in the market for a new home, there are more sellers competing for their contract.  So I do not advise sellers to wait until spring in an effort to be "strategic".  It often backfires.

Regardless of your reasons, if your home is for sale in the winter months you may think you're at a disadvantage.  After all, grass is dormant, trees are bare, and the flowers are long gone. 

But, there are other aspects of your home that you CAN sell, so let's take a look at how to maximize your opportunities.

*  Keep snow and ice at bay. If the buyer can't get in easily, the house won't sell. That means keeping walkways and driveways free of the frozen stuff. You want to make the home look well maintained.

*  Warm it up. Think warm, cozy, and homey. Before a buyer comes through, adjust the thermostat to a warmer temperature to make it welcoming. If you have a fireplace, turning it on right before the tour can create a more welcoming ambience.  There is nothing that screams "HOME" like warmth when you walk in the door.

*  Emphasize winter positives. Is your home on a bus route or some other vital service that means it's plowed or deiced regularly in bad weather? Be sure to mention that to the buyers.

*  Make it festive. Even if you're not actually going to be present, greet your buyers as if they were going to be guests at a party. Perhaps consider setting up the dinner table with the good china and silver. Have a plate of cookies for your guests, some warm cider, or even chilled bottles of water....and do put a small sign out inviting your guests to enjoy.

*  Use the season to your advantage. When the holidays are over, you can still use winter wreaths and dried arrangements around the door to spark interest. In the winter, with the leaves off the trees, you might also have a nice view that isn't as apparent in the spring and summer months.

*  And if you feel that your home shows best in the freshly fallen snow, spring or summer, consider displaying photos of your home in these conditions... a photo album opened near where the brochures are kept, or a digital frame with photos scrolling, are great ways to show off your home in all the seasons.

For more useful tips on selling, contact me, your real estate expert for the Dulles and Loudoun County area, for a private consultation!

Vicky Chrisner

Keller Williams, Leesburg, VA

703.669.3142

http://www.vickychrisner.com/

January 2011 Update: Mortgage Rates

Mortgage rates are inching up but remain historically low. This trend continues to support home buying as it translates to significant savings for buyers. As overall economic recovery remains on track, rates are expected to rise to keep inflation in check.

30 year fixed 4.77%

15 year fixed 4.13%

5/1-year ARM 3.75%

30 year average for a 30 year fixed rate mortgage 8.9%

Source: Freddie Mac, Rates as of Jan 7.

PREDICTIONS: The Mortage Bankers Association is predicting that rates will inch up throughout the year; predicting that rates will be 1% higher in a year.

WHY THIS MATTERS:  A 1% increase in interest rates decreases buying power by 10%. In other words, if you are looking at purchasing a $500K home today, to keep the payment the same you must reduce the purchase price to $450K if rates are 1% higher.  Ten percent makes a HUGE difference in the value of the property. 

BOTTOM LINE:  These predictions, and those mentioned in my last post (where analysts expect home prices to increase steadily throughout 2011), mean Buyers planning to buy this year should target an earlier time frame, ideally buying in the first quarter of 2011, before these projected changes start taking place.

* * *

For timely real estate news, THE REAL ESTATE WHISPERER is a great resource.  Stay tuned.  And, when you're ready, call or email for more personal real estate advice!

Vicky Chrisner

REALTOR

Leesburg, VA

Keller Williams Realty

www.VickyChrisner.com

703.669.3142

January 2011 Market Update

The housing market is recovering. As more home buyers are taking advantage of the improved affordability conditions. With mortgage rates hovering around recent record lows and home prices having generally stabilized, economists are expecting an upward trend to a healthy and sustainable level in 2011.

Encouraging signs are showing up across the economy. Retail sales recently hit their highest level since before the recession. Key measures of small and big businesses’ optimism marched back up to prerecession levels and new claims for jobless benefits are trending lower. Together they bode well for steady job creation and improved consumer confidence which is generally manifested in more spending.

As the economy improves, current stimulus efforts by the government and the Federal Reserve Board are expected to gradually wind down. Meanwhile, serious buyers stand to benefit from historically favorable buying conditions.

Home Sales

Existing home sales resumed on an upward trend since bottoming in July. Sales activity rose to a seasonally adjusted annual rate of 4.68 million in November. This was up 22% from July and 5.6% above the 4.43 million level in October, but remained 27.9% below the 6.49 million tax credit rush a year ago. As steady job creation is expected to continue, industry experts are hopeful for 2011.

Home Price

Home prices continued to stabilize. Median home prices edged up slightly to $170,600, 0.4% above year-ago levels. Distressed homes have accounted for a fairly stable market share, representing 33% of sales in November. This is on par with the 34% in October and 33% in November 2009. Historically favorable interest rates, coupled with stable home prices, continue to offer advantageous buying opportunities .

Inventory

The number of homes on the market continued to decline. Total inventory fell to 3.71 million in November from 3.86 million in October. This reflects the increasing response from buyers to improved affordability conditions. As lending standards return to historical norms and consumers become more confident about their financial situation, more people will be able to buy their first home, move up, or invest.

Affordability

Housing affordability set a new record in November. The relationship between mortgage rates, home prices, and family income is the most favorable on record for buying. The home price-to-income ratio, currently at 13.5%, continues to remain well below the historical standard. Stabilizing home prices and rising interest rates are expected to begin drawing affordability back up toward more normal levels.

Source: National Association of Realtors - October housing data released December 22.

* * *

To find out what this means in your area, contact me,

your real estate expert for the Dulles and Loudoun County area.

Vicky Chrisner

Keller Williams, Leesburg, VA
703.669.3142

http://www.vickychrisner.com/

Red Sunday

In December, Keller Williams Realty kicked off a new promotion that I am calling "Red Sunday".  Once a month, we will hold as many of our homes open as possible.... and the list of open homes on the Red Sunday tour for January are now available!


January's RED SUNDAY is tomorrow, January 9th.  All homes on the tour are open from 1pm to 4pm.

This month, our list includes homes priced from the low $200K's to just under $1.25m... and there's something for everyone.  Click the link below to see descriptions, addresses, photos and more!

OPEN HOUSES IN LOUDOUN COUNTY

Happy House Hunting!  If you don't find the house you're looking for, please feel free to contact me.  I'd love to help you find your perfect home!

Vicky Chrisner

Keller Williams

Leesburg, VA

www.VickyChrisner.com

703-669-3142