Buyer Beware (Part 2: Chinese Drywall)

Drywall made in China and put into homes here in America between 2003 and 2009 has caused serious issues.  It erodes wiring, copper pipes and can make you sick.  You'd want to know if you were buying a home that had chinese drywall wouldn't you? Of course you would.

There's a tiny bit of good news here.  A newly passed law (Senate Bill 942) addresses this exact issue.  It requires real estate agents involved in a transaction who have actual knowledge of defective Chinese drywall in a dwelling unit to disclose that information to the prospective buyer or tenant.

But, would a real estate agent know of the Chinese drywall if it was in the home?  Quite honestly, we might not.  The most likely way for us to know of it is for our sellers to tell us that it exists.  But, we don't standardly ask this, and many owners may not even know of its existence.  Even if they notice that wiring is corroding, they may not know why.

The burden of discovery remains heavily with the buyer. Check out this post (click here) to learn how to recognize Chinese drywall, and always, always have a professional home inspection.  It's not standard, so specifically request that your inspector note if he found any issues that could be caused by Chinese drywall and if he recommends further examination.

Service Animal or Companion Pet?

I often get questions from prospective tenants and landlords about pet restrictions.  One thing that has been clear for a number of years is that service animals (think 'seeing eye dog'), under the Americans with Disabilities Act ("ADA"), are not pets. 

This is not just a real estate issue, it impacts lots of businesses... restaurants, stores and hotels that normally don't allow pets, have had to permit service animals under the ADA for many years.  Landlords are no exception. 

Then a few years ago there was a new term: "Companion Animal" which got grouped together with service animals.  Basically, this is an animal that is not specially trained to perform a task but who benefits their owner by providing companionship.  These animals were "prescribed" for conditions like anxiety and depression; we often saw them prescribed for the elderly, or children who have suffered emotional trauma.  But, I will be honest, this was abused.  I've seen it.  People would get their doctors to write notes that said the animal was required so that they could by-pass the rules.  Then, landlords, hotels and property managers were forced to accept "companion animals" just like service animals. Not so any more, according to a new ruling by the Department of Justice.  Take a look at the fact sheet by clicking HERE.

Under this ruling, service animals must be trained to perform a function.  This may be the more common "seeing eye dog", but there other services animals can provide, like recognizing the onset of a seizure, helping to operate a wheelchair or assisting someone with other daily living activities.

Professional landlords and real estate agents who are unfamiliar with how the ADA impacts them and their business should read up.  To my fellow real estate agents, let me say this, I often see you breaking the law.  You are required to follow Fair Housing Laws.... and when you represent an owner, they are required to, too.  You, nor your client, can refuse to rent a home to a person with a disability because they have a bonafide service animal.  Let me say it again:  A service animal is not a pet.  You can prohibit pets.  You can not prohibit service animals.  Not sure if I am right? Below are a couple of web sites for you to check out, and I urge you to attend a Fair Housing training and seek legal counsel to educate yourself further.

Read the Fair Housing Laws on HUD's web site

See What Virginia's Dept of Occupational Regulation says about "Reasonable Accomodations" - specifically service animals

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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ONLY the report you order!

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!



New Laws about Alternative Septic Systems

There are new laws - "Emergency Laws" - in effect now in the state of Virginia which regulate the maintenance and legal operation of so called "alternative septic systems". 

Alternative septic systems are anything that are not "conventional" systems.  Some common types include: Advantex, Delta Whitewater, Puraflo, Eco-flow and Sandfilter.  If you have one of these types of system (available only for the past 20 years), then these laws DO apply to you. 

Under these new regulations, HOMEOWNERS:

• Must maintain an Operations and Maintenance Manual.
• Must maintain a relationship with a licensed operator.  In most cases this means that you have to have a service contract, unless you are or you directly employ a licensed operator.
• Assure that the licensed operator visits, collects samples and makes adjustments as needed for proper maintenance of system and to be in compliance with the regulations.
• Make these records available to anyone who purchases the property.

In addition, if you have an "alternative" system in Loudoun County, you are required to have have an annual "1067" inspection.  The inspector must be approved by Loudoun County to conduct such an inspection (see link below of approved inspectors). 

The costs of a maintenance contract and the various inspections vary depending on your system, but shouldn't be more than a few hundred dollars a year. In most cases it will still be less expensive than paying a public utility for sewage services.

A note about contractors:

Please note that all contractors are not equal.  In Virginia, there are separate licenses issued for installers and operators.  Although one may carry both licenses, not all do.  Further, Loudoun has specifically provided a list of approved inspectors to be in compliance with their law... approved inspectors may or may not also be licensed operators or installers.  Personally, I suggest one stop shopping... hire someone that is a licensed 1067 inspector, a licensed operator and even a licensed installer, in case you need a new tank or drainage lines.  In my opinion, this will usually offer more seamless service and overall better maintenance.  Companies that can offer you all relevant services may even offer you discounts on larger repairs that fall outside of the normal maintenance realm.  On local company that offers this "one stop shopping" with licensed operators and installers and are approved to conduct 1067 inspections for Loudoun, is http://www.ses-company.com/.

Additional References:

Virginia Health Department

List of Licensed Operators in Virginia

Loudoun's list of "approved" 1067 Inspectors

View your Septic Records Online (Loudoun Co only)

It's a Grand Old Flag! (Flags and HOAs - New Law)

The Virginia Homeowner Alliance wants you to know there is a new law in Virginia that provides further protection to assure your federally granted right to fly the American flag!  HOAs should pay attention!

"This law specifically gives Virginians who live in homeowners associations the right to fly the American flag in accordance with federal law. It also restricts the kinds of rules homeowners associations can enforce against flag displays. The rules are limited to size, placement, and duration of the display of the flag. If the association wants to enforce its rules against a homeowner, it must prove that the flag display harms its interests."

Happy Flag Day!

Movin' Movin' Movin' Get Our Economy Moving Along

Governors from Virginia, Alabama, Mississippi, Pennsylvania, and Tennessee call for a rail corridor along I-81. State governments say this will reduce congestion and they estimate this could add 47,000 jobs in ten years, and 73,000 jobs by 2030.

Read more... Washington Post

News from the Virginia Homeowner Alliance

I wanted to circulate to you the Virginia Homeowner Alliance Newsletter I received today.  It contains some good news and many things that may affect you, as a homeowner, here in Virginia!

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March 18, 2010

The Virginia Homeowners Alliance is a free service for homeowners from Virginia's Realtors, who want to stand with you to ensure that your property values aren't negatively affected by government decisions at the General Assembly, Board of Supervisors, or City Hall. We inform Virginia homeowners about government action that affects the value of real estate in the Commonwealth.

Virginia General Assembly approves 3 homeowner-friendly bills and a budget that may squeeze local governments.  Virginia's legislature sent three bills that benefit homeowners to Gov. McDonnell and approved a $70 billion budget that may reduce local government programs or force them to raise property taxes.

 

Besides the budget, there were hundreds of bills debated, but we focused on three bills dealing with two issues critical to homeowners: 1) tax assessments and 2) property rights. Assessments determine your taxes; and the less restrictive Virginia's property laws are, the more attractive Virginia's real estate markets become.

 

In This Issue: 

• Yes, Virginia, we have a budget
• House Bill 552: Preventing local governments from changing their minds about zoning  
• House Bill 430: Increasing fairness in the real estate assessment process
• House Bill 191: Making sure HOA complaints are handled fairly (go)

 

Yes, Virginia, we have a budget : 

Legislators have passed one of the most difficult state budgets that anyone can remember. Now they're breathing a sigh of relief, as the budget cuts aren’t as bad as many had feared. The General Assembly added no new taxes, which may force localities to either cut back on programs or expenditures, or increase taxes at the local level.

 

The value of a home is often closely tied to the quality of its nearby schools. Some homeowners may be concerned because class sizes are expected to rise by one pupil as $1.25 billion in education funding was cut. But it could have been worse for many districts: lawmakers held funding steady for school systems that would have received even less state money under a formula known as the composite index.

 

The budget also preserves car tax relief for Virginians. After making many spending cuts, legislators balanced the budget by raising fees on some government services, not by raising taxes, which affects virtually everyone.

  

House Bill 552: Preventing local governments from changing their minds about zoning: 

HB552 PASSED THE HOUSE AND SENATE Imagine having your local government approve a zoning change so you can improve your property. But after you begin work, the locality reverses its decision, and you're forced to tear down what you've done.

 

It can happen and it does happen. This law will prevent that by strengthening "vested rights" laws to prevent localities from changing their decisions on zoning rulings.

 

House Bill 430: Increasing fairness in the real estate assessment process

HB430: PASSED THE HOUSE AND SENATE

Some more education for the people in charge of real estate appraisals can only make our system better. This new law will require additional education for real estate assessors, and ensure that members of the board that hears your appeal have expertise in appraisal and home valuation. It will also make the appeals process friendlier for homeowners: Upon request, the assessor must disclose information about your assessment, and the homeowner's standard of proof will be lowered.

 

House Bill 191: Making sure HOA complaints are handled fairly

HB191: PASSED THE HOUSE AND SENATE

Today, if you have a complaint about your homeowners association, an ombudsman at a Virginia government agency called the Common Interest Community Board can help resolve it. But different HOAs have different complaint procedures. This new law allows the ombudsman to set a single procedure for all home- and property-owners associations.

 

The General Assembly has adjourned for the year, but your local government meets year round. Your membership in the Virginia Homeowners Alliance keeps you informed about local real estate taxes, property assessments, new residential and commercial developments, transportation, school construction and a host of other issues affecting your home, neighborhood, and way of life.

 

Read YOUR VIRGINIA newsletter six times per year and visit VAHomeownersAlliance.com every day to stay informed about state and local issues that affect your property values and homeowner rights. The next edition will feature more specific information about how you’ll benefit from the three homeowner friendly bills passed by the General Assembly.

 

Make sure you continue receiving the YOUR VIRGINIA newsletter: Click here to join the Virginia Homeowners Alliance now!

*****

Stay Tuned to the Real Estate Whisperer for continuing news and information about home/property ownership issues and real estate information!

Halloween in Leesburg

When we moved to Leesburg, no one told us how different Halloween would be. Here, on “All Hallowed Eve”, children dress in their costumes, lining the streets of downtown Leesburg, to collect treats thrown to them from passing parade floats. The parade is put on by the local Kiwanis club, and this year, everyone in attendance was asked to bring a canned food item to help fill our local food banks. Most floats are sponsored by local businesses, who are having a little fun promoting their business and giving back to the communities they serve. I’m told that the Leesburg Halloween parade is the longest running in the country, which I think is kind of neat. I love to see old traditions remain strong. Here in Leesburg, I see no danger of this tradition ever going out of style. Every Halloween, if you live in Leesburg, you go the parade. EVERYone’s there. You’re IN the parade or AT the parade, but you’re there. Now that we’ve been here 8 years, we’re finally getting the hang of it. In fact, the last 2 years, I’ve been IN the parade; on a float with my brokerage office, Keller Williams Realty of Leesburg. Last year, I drove our float - and it was among the most frightening halloween experiences I've ever had! You try driving a float while dodging 5 year olds who are playing chicken with your truck to get a Reese’s!

This year, I opted to walk along side the float, giving out candy, being careful to reward those children that obediently stood by their moms, despite the greatest of temptations. So, did you see us? What did you think? We didn’t win any awards… but we thought it looked great.

Can you believe our broker (Rick Cockrill) actually had these houses “lying around” as leftovers from a 4-H project he’d done with his son? It was a very easy assembly for us… and special thanks to local J & M Market on Rt 15 (think Pumpkinville) who donated all pumpkins, mums, corn stalks and more. This year, our float was promoting a new web site launched by own of our very tech savvy agents, Steve Lieby. If you haven’t seen it, you should check it out… http://www.callloudouncountyhome.com/. I can not imagine how cool it would have been to have this parade experience as a child. My 2 and 5 year olds left the scene with bags FULL of candy! Pre-teens and teenagers can still get candy without being those annoying kids without costumes at your door on Halloween. I think it's fabulous.

By the time we returned home, two year old Spiderman was done for the night. Hanna Montana, on the other hand, had to take to the streets to see her fans.

Lucky for her, trick or treating in Leesburg starts AFTER the parade. Lucky for me, it doesn’t last long.

REOs - Everything you need to know

UPDATE:  Thanks for coming to my blog.  Regardless of how you got here, this series was written in 2008.  The market is ever evolving and hopefully you will find this information outdated.  A better source of CURRENT information about buying an REO can be found by clicking HERE:  REOs in 2010. 

===================================

Buying "foreclosures" remains a major consumer focus; so I wanted to outline the series I finished up last month on the process. I broke it into several parts, all of which you'll want to read if you're thinking about jumping into the game! 

As all of these posts are very serious, informative and specific... first, I want to give you a humorous look at what you might encounter.

Yes, when you are planning to buy, it CAN feel like this.  The good news is you are taking good steps which will enable you to get through this: (1) Educate yourself  (2) Get (and keep) a sense of humor (3) Hire an agent that knows what they are doing!

The TRUTH about REOs

http://therealestatewhisperer.blogspot.com/2008/06/whats-reo.html 

Ready to Buy

http://therealestatewhisperer.blogspot.com/2008/07/ready-to-buy.html 

The Great House Hunt

http://therealestatewhisperer.blogspot.com/2008/07/great-house-hunt.html 

Making an Offer - PRICE

http://therealestatewhisperer.blogspot.com/2008/07/making-offer-on-reo-part-1-price.html 

Making an Offer - FINANCING 

http://therealestatewhisperer.blogspot.com/2008/07/making-offer-on-reo-part-2-financing.html 

Making an Offer - DEADLINES 

http://therealestatewhisperer.blogspot.com/2008/07/making-offer-on-reo-part-3-deadlines.html 

Contract to Close - TITLE COMPANY

http://therealestatewhisperer.blogspot.com/2008/07/contract-to-close-process-for-reo-part.html 

Contract to Close - Everything "else"  

http://therealestatewhisperer.blogspot.com/2008/07/reos-contract-to-close-pt-2.html 

I am successfully helping investors, first time home buyers, and those "moving up" find great deals in the market every day. So many of the homes are post foreclosure REOs, and they can be great deals - after all, they SHOULD be if you have to know all of this, AND MORE to buy one! I can help you navigate the murky waters of today's market - please give me a call!  

**** 

Update note 5/29/09: Thank you to all that continue to contact me expressing appreciation for this blog. For those of you that would like a copy of the addendum I reference in these posts; please see http://therealestatewhisperer.blogspot.com/2009/05/reos-addendum.html. 

********* 

Vicky Chrisner Keller Williams Realty 

703-669-3142 vchrisner@kw.com 

Start your home search today at: http://www.vickychrisner.com/