How Can I Buy When I Still Need To Sell?

A consumer asked me... "If I have a house I need to sell before I can buy another home, how can I do it? What comes first?" 

It's sort of like the chicken and the egg conundrum.

In a buyers market, a buyer may be able to negotiate with a seller to enter into a contract that is contingent on the buyer selling their own home (this is called a home sale contingency). In these cases, though, it presents a risk to the seller, and their agent will help them to evaluate that risk so they can decide if they should take it. The evaluation will include conducting a market survey on the buyers home, among other things. Buyers will have to demonstrate to the sellers that they have positioned their property to sell in the current market.

In a sellers market, it's unlikely that the seller will agree to this. Instead, they will wait a few more days and take the next, non-contingent, contract that comes in. SO, then what? What's a buyer to do?

Well, in this post, preferred lender Marc Aymard has provided financing related alternatives to this, allowing the buyer to choose their new home first, and then sell their existing home, without having to make the contract for their next home contingent on the sale of their current home. Not all buyers are comfortable with this... some won't qualify, others just can't handle the stress.

So the next option is for one to put their home on the market, and secure a contract that contains a seller contingency called a "Home Of Choice" contingency. This is becoming more common. This contingency allows that seller to then go and find the home of their choice... and make an offer that is contingent only on the settlement of their home (which is much less risky than a full home sale contingency).

I guess the bottom line is there is not one answer that is always right... it depends on market conditions and the parties involved. An experienced and skilled real estate agent can help you evaluate risk, provide resources and alternatives and determine the best course of action for your family.

If you happen to be in this exact predicament, wondering how exactly you make all these puzzles pieces work together, well, you're in luck. I know how, and I can help you get the plan put together. Contact me today and let's set up our initial consultation...

Vicky Chrisner,Dulles Area REALTOR  

703.669.3142 

MyAgentVicky(at)gmail.com

Market Stats - May 2012 - Looking Good

I sell homes and land in the Northern Virginia/Dulles region and throughout Loudoun County.... and today I am looking for people who wish to list their homes - like yesterday - and get them sold today. 

Here's why:The May market stats were just released from MRIS our local MLS system. 

In Northern Virginia, compared to last year, Sales Volume is up 10%, and inventory is DOWN 20%... That means I have 10% more people buying than last year, but I have 20% less homes to show them.  Simply put, more demand, less supply. And yes, that is putting upward pressure on pricing in our area. Prices in the region are up almost 7% compared to last year.

Interested in learning more?  I have charts, stats and tons of info... just go to my web site, and check it out.

If you are thinking of selling, this might be a great time.  I am waiting for your call or email.  Let's get together!

Vicky Chrisner
Selling Homes and Land in the Dulles area
703.669.3142
MyAgentVicky@Gmail.com

Breaking News: RESPA, NAR, Quicken and Brokerage Admin Fees

RESPA, RESPA, RESPA...What is it anyway? The web site www.HUD.gov explains: " The Real Estate Settlement Procedures Act (RESPA) insures that consumers throughout the nation are provided with more helpful information about the cost of the mortgage settlement and protected from unnecessarily high settlement charges caused by certain abusive practices. "

Among other things, this law has a prohibition against "unearned fees" being charged by settlement service providers to the consumer. Settlement service providers are real estate brokers, lenders, closing companies, surveyors, pest control companies, home warranty companies and almost any party whose charges show up on the HUD-1 Settlement Statement.

This portion of the law has been tested in lower courts and was seemingly interpreted to mean that real estate brokers could not charge "admin fees" or transactional costs above the commission they were charging. The courts, as I understand it, were saying that the brokerage had the duty to file the paperwork and coordinate the transaction. Therefore, brokerages could not charge an additional fee over and above the commission, to clients and customers for these tasks. As a result, many local brokerages began to rename these fees and continue to charge them, but label them as "flat fee" commissions, because that is what the court said they were. So, brokerages would charge X percent plus a flat fee of Y as commission for their services.

WELL, now NAR (the National Association of REALTORS) says that the ruling by the Supreme Court last week changes things. In this particular suit, Quicken (a mortgage broker) was being sued by customers who claimed that the loan discount fee (aka loan processing fee) violated this same clause of the law as it was an "unearned fee". Quicken defended itself by saying that the law only applied to fees that are shared with another servicer. The case made it to the Supreme Court and....(drumroll please) the Supreme Court sided with Quicken.

What does this mean for real estate brokers and their "Admin" fees? Will they be re-emerging in the marketplace? Who knows. But I know this... my office does not charge admin or transaction fees in addition to our commission. In fact, Mr and Mrs consumer... when I recently moved from one office to another I ended up at such a small boutique brokerage because all the 'nationals' that I considered do charge these fees (regardless of what they are called). I stood firm against it and simply would not go to an office where I would be forced to charge these fees to my clients. I mean, really... How could I tell you "You Have A Friend In the Business"... and then nickel and dime you to death every time we did business together?  I couldn't.

Whether you're ready to buy or sell a home, or just need some honest real estate advice, I am here for you:

Vicky Chrisner, "The Real Estate Whisperer"

Selling Homes and Land in Loudoun County and the Dulles Area

703.669.3142

MyAgentVicky@GMail.com

===

Learn more about this case:

Speaking of Real Estate "Supreme Court Provides Clarity on Brokerages' Administrative Fees"

 

Hidden Costs in Home Buying - New Homes Vs. Resale

Today I received an email from Toll Brothers linking to a blog about why you should buy a new home rather than a resale.... and they make a few points; but they miss a lot of points. "A" for effort! Hopefully the consumers reading the blog don't actually think about what it says - or doesn't say.

In this sheet, Toll Brothers gives you expected life expectancies of varying systems in homes, and their approximation of replacement cost. Generally speaking, they are right on about the average life expectancies. According to the estimate, over a 25 year span you could be spending $133,500... that's a little more than $5K a year in maintenance (that's regardless of whether you buy new or not - that's the cost to maintain a home over those years... and it's probably going to be more than that in our area). However, if you are buying a home, particularly a resale, I recommend you get a home inspection and hire someone that will provide you with a better estimation (based on the actual home you're buying) what maintenance or replacement items you should anticipate so that you can budget accordingly.

Aside from the predictable maintenance costs of any home (new or resale) there are other things to consider. For example:

• Do you sneak to the kitchen for a midnight snack in your undies? If so, having window coverings in place might be a good idea. Resales usually come with them... new homes rarely do.
• Most people repaint. For resales, most people repaint when they first move in to get rid of the prior owners taste in wall coverings and replace it with their own. With new homes, builders recommend that owners wait a year before repainting, so until then you need to live with the builder's choice of paint and the nail pops.
• Yes, nail pops - That's why builders recommend you wait a year before repainting. At the end of a year, they will (usually) come back and cover up nail pops and other minor signs of settlement that are inevitable.... but they won't touch up custom paint, so waiting until after that 1 year walk through to repaint is a good idea, since you'll surely want to repaint after that is done. With resales, they are usually "settled" by the time you move in, so you're not as likely to find these kinds of issues.
• Do you like to have clean clothes? Most of us do... and builders rarely include a washer and dryer. Most resales come with the laundry equipment.
• Are you moving out of that stupid rental apartment to your own home so you can have a cook out on your own deck without the rental manager fussing at you? Well then, you're going to need a deck or patio. Resales commonly have decks or patios... New homes usually don't, and this is a big ticket item not included on that Toll Brother's list. Think $10-15K plus.
• Maybe your motivation for moving is that you're ready to start a family, and whether you're starting your family with dog or a (human) toddler, you may find having a fenced yard would be a plus. There aren't many builders that include that in the cost of the home, in fact, many don't even offer it as an option. But in resales, you have a pretty good chance of finding a great yard with a great fence already in place.
• Speaking of yards, do you like green grass and mature trees? This wish list item is also going to be easier to find in a resale. With a new home, the landscaping is all new, and takes much work to get established.

While buying a new home offers some advantages, it offers disadvantages, too. There is not one right answer for everyone. I am not trying to sway your opinion, just to point out some of the things you may not have considered... and things Toll Brothers certainly doesn't want you to consider when you're reading their blog or shopping in their models (where, by the way, you'll see lush landscaping and decks, and patios, and fenced yards, and custom paint and window coverings). I'm just sayin'.

***

Whatever the right answer for you, I am happy to help you make sure that you're buying, "eyes wide open" and not swayed by marketing materials and propaganda. That's the role of a buyers agent~to make sure you have the right information so you make the best choice for you and your family. Thinking of buying a home? New or resale I can help!

Vicky Chrisner, BUYERS AGENT

703.669.3142

   

Getting the Best Appraisal for Your Home

Because most people purchase homes with a loan or otherwise subject to an appraisal, getting an favorable appraisal is key to most home sales. You likely will also need to get an appraisal for refinancing.

The purposes of a home appraisal is to estimate market value, to make sure the bank is investing (via a loan) in a property that is worth their investment.

Recently there has been a change in the home appraisal process, resulting in more regulation. To comply with these regulations, among other things, most lenders use a lottery system to chose the appraiser for each loan.

When working with the Veterans Association on a VA loan, the VA operates the lottery system. No one involved in the transaction, not even the lender, has any ability to choose the appraiser. Outside of VA loans, larger lenders have a large pool of appraisers they work with... Bank of America and other large lenders, as you can imagine, service a huge geographical area... often, so do their appraisers. And, like in the example of the VA loans, the loan officers who work for these large lenders also have no ability to influence the appraisal... nor do they have the ability to influence decisions on who goes into the lottery, or who stays.

It's not uncommon in these situations to get an appraiser from a far off land (OK, I am exaggerating just a bit, but they are often from outside the market place) to provide a valuation for your home. Since we all know that real estate is local, this can result in a "bad" appraisal.

Appraisers who do not understand what neighborhoods are more comparable to others may pull comparables from neighborhoods that simply don't make sense. Or, if they don't often work in the market, they may not realize that (for example) in Winchester, a split foyer home sells well and in Reston a contemporary home is highly desired, but both of these housing types are considered "dated" and less desirable in Leesburg, where people seem to crave colonial style homes. They may not realize that a home in Round Hill is more desirable than one in Lovettsville because of the commute patterns. And, desirability drives value in any market.

I tend to encourage my buyers to use smaller, local lenders for a myriad of reasons. One advantage is that smaller local lenders have a smaller pool of appraisers who generally work smaller areas. While these lenders are still not permitted to "hand pick" their appraisers (to prevent fraud), they do have better quality control over the "pool" of appraisers, and the end result is a more accurate appraisal.

When selling or refinancing your home, your appraisal can affect your ability to get your loan...and if you're a seller you need the appraiser to be favorable so that your buyer can get his loan. So make sure you know your "comps."

"Comps" are simply market comparisons that reflect other homes that have sold in your neighborhood, zip code, and area. Review these comparisons by calling your agent of choice (hopefully me) for comparisons BEFORE your appraiser visits to make sure that all relevant comps are considered.

If your home is for sale, we've already been through the "presentation" checklist - and this still applies for the appraiser. If you're refinancing, take a few minutes to look at your home as though you were a home buyer, since checking that your home appears marketable and well-maintained is vital. Spend some time cleaning the home entrance and painting as necessary to spruce up the entry, making your best first impression. The rest of your home should be clean and clutter-free, as well. Appraisers assume - like most people - that if your home is dirty and toys are out front in the overgrown lawn, you don't take good care of the mechanics and the roof is probably a disaster; but if it's clean, surely all the nooks and crannies are in great shape as well.

Appraisals - no matter how scientific they appear on the final report - are incredibly subjective. If you hire 10 appraisers you will get 10 different values of the same property. So, make sure you make things as easy as possible for the appraiser, and present your case for the value.

There are some things you can hand to your appraiser when they visit:

• Floorplan and plat, for starters - because they will have to create one if you don't give them one.
• List of selling features of your home - the view, size, location, bump out, "options" when the home was built - anything that makes it better than most of the homes your house might be compared to.
• List of recent upgrades and updates, and include costs if they were significant (a $45K kitchen remodel is much more impressive than a $10K kitchen remodel; and be sure to include anything that improves energy efficiency - this is a focus in today's market).
• Listings for comparable properties with notes about the significant differences between your home and the one that is there (backs to highway, doesn't have a basement, etc.).

If I have listed your home you can rest assured that I will be providing this information to your appraiser - I may meet them in person or just provide the information electronically to him in advance. I will also do my very best to project to them that I am an expert in the market place, and that I am available to assist them if they need additional information, have questions, or find conflicting information. Being personable and approachable is an important factor in opening these lines of communication.

If you're refinancing, then I can still help you get these things together - just give me a call.

Once completed, an appraisal may take a week or so before you can get a copy, but do get a copy. If the appraisal is lower than you need, there are ways to request changes, and I can help you with that, too, so that you can accomplish your goals.

Don't hesitate to call me if I can help! Remember, with me, you've got a friend in the business!

Vicky Chrisner, REALTOR

703.669.3142

www.VickyChrisner.com

Facebook.com/TheRealEstateWhisperer

Thinking of selling or refinancing? Check the comps - order a free report at www.SalesInMyNeighborhood.Info

I Love My Docusign

If you’ve known me for a long time, then you probably know I am not a gadget geek. I do not own the latest greatest techno-toys and I don’t buy the first release of anything. New gadgets and systems slow me down because I have to adjust, and I do not like slowing down… especially if I am going full speed and quite content. But, some things have an advantage that is so great, so obvious, so clear, that I think anyone who doesn’t embrace it from the start is really shooting themselves in the foot. Docusign is one of those things.

Docusign is a web based program that allows electronic signatures. In most real estate transactions, it’s perfectly acceptable, and the law has been adapted to ensure enforceability of electronically signed contracts. And, oy, it saves so much time.

I still know some agents that get every signature in person. I wonder how that is possible? Do they turn away clients who live far away?

Many agents are still stuck in the days of faxes… Faxes were “the thing” back in the early 90′s (newsflash: that was TWENTY YEARS AGO). I can remember thinking “Wow, this makes things so much easier… No pony express or personal courier! Woo hoo!” And the speed of business got faster.

Then we started to use emails – and send documents that way… that happened not long after faxes became commonplace, and became the norm around the turn of the century. But, that still required an internet connection, email, a printer, paper, a pen (for signatures) and then either a fax or scanner so you could return the documents. Still, better than the pre-90s alternatives but “Pfft!”.

Docusign has revolutionized the way I do business. It’s the best money I have spent on my business. And, shockingly, most agents still haven’t embraced it.

With Docusign, anyone with email can sign without printing the document… so no printer, paper, pen, scanner or fax machine are needed. Many people get emails on their phone and although proficiency with that still varies, some of my clients can sign a contract on their phone. But, whether using a laptop, iPad or phone, I have had people driving or flying cross country who have signed documents in a car, train, or airplane. No fuss, no muss. Presto magic their contract is ratified, their property sold, their dream home officially promised to them.

My clients LOVE it! LOVE, LOVE. It’s the way business is done today. Real estate might be “local” but all the people aren’t always local… and even if they are, compare the inefficiency of me driving to someone’s home or office and waiting for them to be available, flipping through the papers to get a signature, then having to figure out how to get them a copy while I am there, and then driving back to the office or to someone else’s office to facilitate getting it to the other party. We’re talking hours. Now, contracts can literally be ratified in minutes.

I know of some other electronic signature options, although I understand they are more buggy than Docusign, and I don’t want to fix what is working so well. (Remember how I said I hate slowing down to learn new stuff when I am running full speed? Still true.)

And last night I felt like a complete geek. It was Saturday night and I was excited about an upgrade to this program. I got an announcement from Docusign that more improvements are on their way, with 2 that make me particularly happy! MORE people will be able to use their phones to sign the documents thanks to some changes. There will also be a portal so clients don’t even have to wait that extra 30 seconds for their email to come through – they can just log right in and sign docs the way I can. I am SO excited!

To agents reading this that haven’t signed up – now’s the time.

I have already gotten one client because of Docusign. They had an agent selling properties for them, and I presented an offer via Docusign. Because of the seller’s schedule, the listing agent asked if I could send the contract to the seller via Docusign to sign, and of course I did. The contract ratified immediately. The seller, shortly thereafter, took the first out to pull the remaining listings from his then agent and asked me to list those properties….which I did. The seller simply said he needed someone who did business at his speed.

The rest of my clients didn’t discover the beauty of Docusign until we were well within the process, but they love it and I get fabulous feedback. Even a 80 year old lady with limited techno-knowledge had no issues with signing via Docusign when she was contracting for a house in Virginia from her Texas home. None. She was thrilled when she did not need to buy another ream of paper and more ink for her printer, or wait on a Fed Ex package.

To potential buyers and sellers, here’s your take away: I believe in old fashioned service, and that means delivering to clients the type of service that most benefits them. If you are not the jet setting kind, and you don’t even really “get” email, then this may not be for you. Rest assured that I will happily meet you in person, and will always deliver the type of service that you want and need….but I will have a plethora of resources that I use so I can provide that service to you. And even YOU will benefit from Docusign. When I am not driving all over the region to get signatures from others, it means I will have time to to spend, face to face, with you.

Thumbtack Business Listing

I have just listed my business with Thumbtack. 

Check out the listing~ Click Below:

Vicky Chrisner

Keller Williams Realty

Selling Homes and Land

in the Northern Virginia/Dulles Area

703.669.3142

See the Real Estate Services Listing on Thumbtack by clicking HERE

Interested in listing your business? CLICK HERE

Open Houses April 3rd (Ffx & Loudoun)

Check out the list of open houses today...

Loudoun County: http://matrix.mris.com/Matrix/Public/Portal.aspx?ID=41203831652

Fairfax County:

http://matrix.mris.com/Matrix/Public/Portal.aspx?ID=41211527926

And here is where I will be if you'd like to stop in and say hi!http://matrix.mris.com/Matrix/Public/Portal.aspx?ID=41211487321

This week's open houses brought to you by

Vicky Chrisner, Real Estate Sales Consultant

Loudoun & Fairfax Counties

703.669.3142

It's Taste Test Tuesday!

It's Taste Test Tuesday!

OK, I will admit that I am stealing the "game" from Zillow.com, but I liked it.  Every Tuesday I will post pictures of 2 or more homes and ask for your favorite.  I might shake it up a bit just for variety, but in this case, I have posted 2 pictures of Single Family Homes, both in Loudoun County, both currently for sale, and both priced the same.  So, which do you like? 

Like "The Real Estate Whisperer" on Facebook and let us know!! Tomorrow, I will post details on the facebook page, and you'll learn the price location and other such fun facts about both homes.

If you are looking for a home like these or any other, I'd love to help!

Vicky Chrisner

Serving Loudoun & the Dulles Area

703-669-3142

Types of Sales in 2011

We're well into 2011 and the market is very different than a few years ago. 

In 2008, almost the only properties selling were REOs.  

By 2009/2010, the banks had seen the value in working with short sales and had enough trained staff that they were able to start processing the requests in enough time to avoid foreclosure and actually get to the closing table. 

In order for production builders to stay in business, they had to keep building, but they had to adjust their price and product.  This meant they needed to renegotiate deals with investors, the localities and their lenders.  In 2009 we started to see these entities also face the reality of the market, and by 2010 new homes sales were once again returning to the market in force.

Traditional sellers also realized they had to face reality.  Market recovery was going to take many years, and recognizing that 2005/2006 values are never likely to return (when you consider inflation).  In 2010, traditional resales noticeably re-entered in the market, but hoping to get every dollar they could, these sellers did all they could to make buying their home an advantage - the homes were well prepared for the market, well priced and owners were flexible on terms.

I was pleased that in 2010, my business, and probably that of most local agents was about 15% REOs, 25% Short Sales,  25% New Construction, 35% Resales... nearly balanced between "normal" sales (New Construction and Resales) and "distress" sales (REOs and Short Sales).  The market in 2011 continues to show signs of recovery.  Inventory is currently very tight.  Here are the stats for the last 90 days for Leesburg VA.  Check them out:

368 Homes on the market right now

269 Homes under contract right now

195 Homes sold in the last 90 days

This paints the picture that we have less than a 6 month inventory of homes available, which is great.  What also is encouraging is the "Types" of sales that are in the marketplace right now.

REOs represent 4% of the Homes Available and 17% of the Sales in the last 90 days

Short Sales represent 12% of the Homes Available and 18% of the Sales in the last 90 days

It's a good sign that distress sales are continuing to decrease in the market.  In some neighborhoods, particularly those built during the height of the market, distress sales continue to dominate.  However, in other neighborhoods, stability is returning. 

Wondering how you're neighborhood is faring?  Get a free automated report at:

www.SalesInMyNeighborhood.Info



Notes about Neighborhood Sales Reports: 

• You must include your address and info about your property so the program can pull appropriate comps.
• You must include a valid email address - the report takes a few minutes and is emailed to you.
• You will NOT receive any spam... no bulk emails at all.  Promise.
• It's automated, so it's not perfect.... if it doesn't make sense, please contact me directly for more information.
• This program works only in the Northern Virginia area.

For a personalized report by a human with a brain, don't hesitate to reach out to me.  I am here to help you evaluate your circumstances and make good decisions for you and your family.

Vicky Chrisner

Real Estate Sales Loudoun/Dulles

703.669.3142

or by email MyAgentVicky@Gmail.com

 * * *
Yes, I handle REOs, Short Sales, Traditional Sales and New Construction.
If you are considering buying or selling a "short sale" please see this important disclosure (Click Here).

This Month In Real Estate (March 2011)

This month in real estate.....

For more information on loans, the real estate market, and how to prepare your home for sale, stay tuned to The Real Estate Whisperer!

The Real Estate Whisperer

A Dulles area real estate sales consultant shares truths about the industry and the market.

A resource not to be missed!

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.

 

REOs in 2010

In the Dulles/Loudoun areas, REOs remain part of our marketplace, although the number has dimished severely since 2008 when I last posted a series on REOS. 

As the market has changed; industry practices have evolved, and things are easier.  For that reason, I am updating and reposting information on REOs.

WHAT IS AN REO? REO means Real Estate Owned; the phrase is used interchangeably with "foreclosure" or "bank owned".  All of those terms mean it is a property that is owned by a financial institute generally after it has been foreclosed upon.

Now that you know what we're talking about, let's take a glimpse back into 2008.  If you were trying to buy a property in 2008, you were likely looking at an REO.... and this will give you an idea of what those buyers were finding in the marketplace:

The video is funny, but it doesn't feel nice when that buyer is you. 

The good news is that things have gotten better.  In the beginning, a few agents were handling all the REOs, and no one was used to having them in the marketplace, so everyone was inexperienced.  Now, there are less REOs in our marketplace, and there are many agents are handling the work load, and now they are experienced as are the bank reps (asset managers) handling the accounts for the banks.  Ahh.  Much better.

Check out these posts to see what's going on in the market place today.  It's MUCH quicker than the series done in 2008.

2:REOs in 2010:Fact vs. Fiction

3:REOs in 2010-The Great House Hunt-Looking Back

4:REOs in 2010-Making Your Offer

I hope this update will help you to know what to expect when you're navigating the ever changing marketplace.

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

Are you looking to buy a home in the Dulles or Loudoun Area?  Whether you're thinking of buying a bank owned home, a short sale, new construction, a custom home... it doesn't matter.  I have the experience that makes a difference.  Call me.  I can help!

Vicky Chrisner

Keller Williams

703-669-3142

http://www.vickychrisner.com/

2: REOs in 2010, Fact vs. Fiction

REOS ARE ALWAYS A GREAT DEAL-Fact or Fiction?  (Part 2 of a Series)

In 2008, I told you that while they "should" be a great deal, the only properties that were selling were the "great deals" and the result is that foreclosures were the norm.  No one was buying properties for retail price, and so most of the sales in 2008 were REO purchases.  Were they a great deal?    I don't know, if a "great deal" is getting a better price then most people, no, they weren't a great deal.  If getting a great deal meant buying at or near the bottom of the market, then yes, maybe they were a great deal then.

Now, buyers are no longer blood hungry, they are again paying "retail" for homes (although retail today is much less than it was in 2006), as the marketplace has again redefined "value".  Value is not always the lowest price.  As a result, traditional sales and new home sales are again setting the market value in most sub-markets. 

Banks are now avoiding foreclosures if they can, and approving short sales.  So we simply don't see too many REOs in most submarkets.  When we do, they are available at a slightly discounted price compared to similar properties being sold as a traditional resale; but as I will talk about later, their condition is generally better than those we saw in 2008, so again, the value is comparable to a traditional sale.

BANKS DON'T WANT THE PROPERTIES, SO THEY'LL GIVE THEM AWAY-Fact or Fiction?

It's true... banks don't want to own actual real estate.  That is why they have finally figured out that it is in their best interest to approve a short sale before they foreclose on a property.  However, when they do foreclose, they now have a system and staff with a couple of years worth of experience under their belt.  The staff members are equipped with tools and procedures to help them sell the property for the highest possible price.  Again, like I said earlier, there may be a slight discount, but it depends on the submarket. 

Helping to determining Fair Market Value for any property you're considering buying, REO or not, is an important part of the role your buyer's agent will play in your purchase.  Don't be penny wise and pound foolish.  Pay for a good agent if you must.  They will save you far more than they cost you.

Keller Williams Ranks #1 in Customer Satisfaction

Keller Williams Realty takes it again: "Highest in Overall Satisfaction for Home Buyers Among National Full Service Real Estate Firms"... THREE years in a row!

Thanks, JD Power and Associates! 

Thinking of buying a home? If you'd like the right balance of competency, professionalism, integrity and personalized service, Keller Williams has an associate in your area!

Moving to the Dulles area (Northern Virginia...Fairfax/Loudoun counties)? I'd love to help!

Vicky Chrisner

703-669-3142

VChrisner@KW.com

Search for homes for free:

http://www.vickychrisner.com/


Click to see the full press release by Keller Williams Realty

Bye Bye Tax Credit.... Now What?

Well, bye bye tax credit!  That's right, if you're waking up without a ratified contract for your new home this morning, you've missed the opportunity to take advantage of the federal home buyer tax credit.  As it turns out, it seems that buyers in the (local) market have been less focused on this than I'd have expected.  So, if you're a buyer in the market place, perhaps hoping to find less bidding wars in the market place now that it's May, you could be disappointed.  The buyers I have been working with have thought that the tax credit would be "nice" but it was not the underlying reason for their purchase decision.  I've not talked to a single buyer who would choose a home they didn't like or overpay for a home just to ensure that tax credit.  So, how will the market do in May?  Time will tell, but all signs point to a strengthening economy, local job growth, and an improving housing market....in other words, the bidding wars will continue.

Yes, I said improving housing market.  You read that right.  The more reports we see, the better the numbers look:

• 
  
  Washington Examiner: Area Housing Market Shows Signs of Rebound
• 
  
  Loudoun Times: Home Sales, Foreclosures Pick Up
• 
  
  Delta Associates Report/MRIS for the 1st quarter 
• 
  
  Northern Virginia Market Watch

But, better than reading someone else's opinion of the market reports, check them out for yourself.  Aprils reports begin to come out in 1-2 weeks (usually around the 10th of the month) after all the data has been compiled.  You can view the reports at: http://www.mris.com/reports/stats/index.cfm where you can run statistical reports for your zip code and for your county, commentaries begin to be published shortly thereafter.

My Two Cents: As my business has steadily been picking up since the snows melted,  I feel certain that the compiled data will show that my business is not an anomoly and that activity overall is high. 

While foreclosures and short sales continue to dominate some submarkets, I am seeing a dramatically notable return to "traditional" sales due to relocation and personal changes, and more new home sales.  I attribute this to homeowners finally getting "real" about their pricing; and buyers getting sick of the distress home sale market place.

The exception: The high end market.  It continues to be very slow.  We've not seen as many distress sales in this market segment because these homeowners typically have more financial cushion and can withstand financial losses for longer.  However, that won't continue forever, they are not immune.  The industry expects to soon see more distress sales in the high end market place, and with that, price corrections to rebalance activity levels.

My recommendations for the high end market: 

For sellers:  For sellers with a home in that "high end" market, the issue is price. Some homes in that segment are selling and if you want yours to be one of them, take a fresh look at your pricing strategy. Buyers are price, and more importantly value, sensitive. They want to make sure they are buying at a level where they will not lose more value in the next year. Be the first to correct your price~your comps aren't doing it yet, and so there is less competition and it is easier to look like the best value in the market place. Don't wait, you'll end up leaving even more money on the table, especially once you'll be forced to compete with distress sales... and trust me, those banks WILL sell the homes; they are not emotionally tied to the price or the house.  When the home next to yours is a trashed foreclosure, and is the only thing that has sold in your neighborhood in a year, it does not bode well for your home's value... and that is coming.

For buyers:  Look, look, and look again... and maybe even wait to buy.  As those sellers move from "wanting" to sell to "needing" to sell, their prices will come down.  Better values are on the horizon in the high end market place.

* * *

Looking for a home? 

Check out these 17 Open Houses in Loudoun this weekend!

* * *

For updates like this and more, 'like' "The Real Estate Whisperer" on Facebook; or contact me for a personal consultation about how all of this impacts YOU:

Vicky Chrisner

703-669-3142

VChrisner@KW.com

http://www.vickychrisner.com/

You Might Not Need A REALTOR IF.... Reason #2

Reason #2: You Might Not Need A REALTOR IF….

You Don't Mind Leaving A Little Money On The Table

It may seem that I am being facetious when I say "...IF you don't mind leaving a little money on the table", but I am not.  While most sellers are looking to get the highest and best price possible, some aren't, or it is not their priority.

They may be looking to turn a profit, and if they are happy with that profit, and the transaction doesn't present risks, then taking the quick offer may be the right move.  For example, a current client of mine is a land investor.  He bought a lot for $5,000 and quickly resold it (FSBO) to my dad for $10,000.  He was very happy.   My dad did nothing to improve the lot and sold it, through me, a few months later for a $45,700.  The original investor, even knowing what my dad got for the property, was not unhappy - he still make $5,000 very quickly, and at that time, he needed the cash very quickly to roll it into another investment which ended up returning him a much greater profit.

The owner could be looking to dispose of an estate quickly and expeditiously, for any number of reasons.

Or, perhaps the seller doesn't get to keep more than "X" of the profits anyway, so if the offer on the table provides that, then that is all he needs.  I have seen this in divorces.  One spouse is being forced to sell, and he/she only gets a flat amount from the sale, and in order to limit the profit of the other owner, refuses to list it with a REALTOR. 

I am not being silly, ALL of these situations apply to some people, even though they do not apply to most of the people most of the time.  If one of these scenarios (or something similar) describes you, and you've got an offer that meets your needs, or you can get an offer that meets your needs (without the assistance of a real estate agent) then take it. 

Why pay a real estate agent to offer full service when they won't have to do any pricing or staging strategies, any marketing plans or showing, or any serious negotiations?  Again, in this circumstance, just like in the prior one, FSBO (For Sale By Owner) may be the way to go. 

You will still need some help - (see description of legal or limited service real estate  assistance needed in REASON #1), but that should be far less expensive than hiring a full service agent.

* * * * *

This is reason #2 of a list of the TOP TEN REASONS NOT TO HIRE A REAL ESTATE AGENT TO SELL YOUR PROPERTY.

Make sure you don't miss any of these posts... so stay tuned to THE REAL ESTATE WHISPERER for the rest of the posts in this series.

In the mean time, if you are looking for a honest feedback about whether or not you should hire a real estate agent, feel free to contact me. I work in the Dulles and Loudoun areas, and I am happy to spend a few minutes with you on the phone to help you recognize the facts so you can make a good decision.
 

Vicky Chrisner

Keller Williams Realty * Leesburg, VA

Ofc: 703-669-3142

Email: VChrisner@KW.com

Top 10 Reasons NOT to Hire A Real Estate Agent To Sell Your Property

Most agents will offer you a list of the top 10 reasons TO hire a real estate agent, and ideally, hire them.

However, I am not like "most" real estate agents.  I think there are legitimate times you shouldn't hire a real estate agent, and I am working on putting together a list of the top 10.....

You Might Not Need A REALTOR IF....

Reason #1:  You're Sellin' To Aunt Bessie

 Reason #2:  You Don't Mind Leaving A Little Money On The Table

Reason #3: You Already Have a Pricing and Staging Strategy

Reason #4:  You Have A Marketing Strategy and Showing Plan

Reason #5:  You Understand the Financing Your Buyer Will Need

Reason #6: You Like Negotiating

Reason #7: You Can Handle Managing the 'Contract to Close' Process

Reason #8: You Know How To Deal With Low Appraisals

**In TODAY"S MARKET, there is a HIGH likelihood that your REALTOR could earn

150% of her commission with just this one!***

Reason #9: You Ain't Afraid of No Judge

Reason #10: You Don't Really Plan To Sell

Each of these situations apply to some people some of the time.  For the majority of the people, the combined benefits of convenience, expertise and resources offered by the right real estate agent will far outweigh the cost of brokerage fees, and in most cases these benefits translate into more dollars in a sellers pocket, even AFTER paying the brokerage fees.

Are you in the Dulles/Loudoun area and thinking of selling?  Give me a call and let me show you the value I will bring to the sale of your home.

Vicky Chrisner * REALTOR

Keller Williams Realty * Leesburg, VA

www.VickyChrisner.com

Ofc: 703-669-3142

VChrisner@Kw.com

Not A Headline I'd Write... But....

"If You Don't Buy A House Now You're Stupid, Or Broke"

is the headline from a story found in Business Week, written by Marc Roth.

As MY headline explains, it's not a headline I'd write... (yet) BUT... Listen Up:

In the early 90s I bought a house for $150K,  my mortgage payment was $1250  month.

The week of Thanksgiving (2009) I sold a house for $300K, and the buyers mortgage payment is $1265 a month.

Both include the cost of escrows (your taxes and insurance).  The main difference is interest rates.  A 30 year fixed mortgage when I bought was 8.5% (with 2 points).  The 2009 buyer paid no points and got an interest rate well below 5%. 

The resulting question:

Is he really paying more for his house NOW than I did for my house THEN?

If you've been on the fence about buying, you need to seriously consider this example, and others like it.  I know, some people don't have job security, are fighting bad credit, or have other personal circumstances that make buying impossible, improbable or risky.  But, if you are not one of those people, you better get off that fence before those pickets go right up your..... well, near where guys keep their wallets if you know what I mean... The point is, you may not ever be able to get off that fence. 

(That fence doesn't look too comfortable to me!)

Read the Business Week Story HERE: http://www.businessweek.com/lifestyle/content/dec2009/bw2009127_753974.htm

And, remember, I've been TRYING to tell you this, my friends. (ew, that sounded a bit "McCain-ish didn't it.  He lost, maybe I should take note). 

But seriously, I post this blog where everyone can see it, but I also post it for my FRIENDS. It's the same advice, whether I've met you or you are my own flesh and blood.  So, please, pay attention.  Please try to listen. 

See these prior posts:

Why it is still a buyers market - http://therealestatewhisperer.blogspot.com/2009/11/why-this-is-still-buyers-market.html 

Inflation is Coming! Inflation is Coming! http://therealestatewhisperer.blogspot.com/2009/04/inflation-is-coming-inflation-is-coming.html

If you've heard enough and think you're ready, give me a call.  I will help you analyze your situation to see if buying is a good idea for you right now.

To search our local MLS for homes for sale in Washington DC metro area (including DC, No. Virginia, most of Maryland, and the panhandle of WV)

use the Home Search tab on my web site by clicking HERE!

For other questions, feel free to contact me anytime:

Vicky Chrisner

Ofc: 702-669-3142

Email: VChrisner@kw.com

http://www.vickychrisner.com/

Home Prices Will NOT Return to 2005 Levels

"Home prices will NEVER return to the levels of 2005.  NEVER," said Roger Arnold, a well respected Global macro-economist, during a recent conference call with several Keller Williams Agents in the Northern Virginia area.  Of course, he meant that comment in the context of relative value when you consider affordability indexes (median home price compared to median area income), inflation, etc.

He is not discouraging buying a home today, just "calling it like he sees it" for existing homeowners, himself included (and me, too).  At this point, the artificial home price inflation peaking in 2005 or the beginning of 2006, has pretty much come and gone.  Even in areas where there is still fallout to come, prices are relatively low, and homeownership offers many advantages, financial and otherwise.

Locally, in the Washington DC metropolitan area, we're somewhat insulated from the national economic climate, but we don't go unaffected. 

Since 2006 and 2007, area homeowners thought they would "wait out the storm" by renting their homes for a year or two, rather than selling them, when life forced a move.  It's not that they couldn't sell, just that they wouldn't, because they wanted to get back that 2005 value... and they wanted it very, very much....enough that they couldn't hear what they didn't want to.

Sadly, the next couple of years saw continual price decline.  It caused additional fallout, with even more homeowners letting go of those "second homes" to foreclosure when they realized they simply didn't have the reserves to withstand the storm.  They had drained their savings, and run up credit lines.  Even if their homes were rented, being a landlord turned out to be a much harder job than they thought...and it wasn't making them any money.  The flooding of the housing market with so much similar inventory all at once caused home sales to slow to a crawl, and in some areas to a complete halt.

At this point, our inventory was mostly post foreclosed, bank owned homes (REOs)....and a few traditional sellers who had their homes on the market for about $100,000 above the neighboring REO.  The traditional sellers were being laughed at by buyers, and REALTORs were shaking their heads.  Some agents would even shy away from taking traditional listings entirely.  The REO homes had previously been owned as rental homes by investors; or starter homes by people who had already moved into their next "move up" home without selling their first house; or by people who never should have been buyers in the first place.  Essentially, our market was flooded with an inventory of homes at similar price points, and all in direct competition with one another.  So many choices, and nothing was selling. 

In 2008, desperate to move some houses, banks began holding public, well marketed, auctions.  What they, and the rest of the world, discovered was that prices weren't low enough.  But, when they were, buyers would come out of the wood work.  So, in 2008, even when many thought prices may had already "flattened", Loudoun homes saw a sudden and dramatic 10% price drop in a matter of a few months; and the buying frenzy began. 

Since then, we've seen continual competition for well priced homes.  REALTORS began to be able to predict market values again since there was some stabilization... at least within that segment of the market.  Perhaps because we could set expectations properly, the same people who did not want to sell their homes in 2006 and 2007 (because they didn't want to give up value) were now ready to sell. 

Wait!  What was that?  You got it.  A homeowner unwilling to sell in 2007 at $300,000 because they were going to wait until they could sell it for $400,000 again were suddenly willing to sell at $225,000 in 2009?  Yes.  The sellers trying to time the market lost, big time.  In fact, some where now under water, but were willing to face the fact that they could no longer hold on, and started talking about options to foreclosure (i.e. short sales).

With 2009, we've seen more traditional (non-distress, non-bank owned, non-short sale) sales re-emerging in the marketplace, which is what buyers really want.. but inventory remains low.  So, premiums are being placed on these homes, and fierce competition ensues.  Prices are going back up, for all types of sales, but most especially for well cared for homes which are not short sales.  In 2009, we've regained most of the value we lost in 2008. 

But now the greed is re-emerging and it is scaring me.  Sellers, seeing that prices have started to regain value in 2009 are saying that they have new faith that prices will continue to go up, and they seem to think by next year, or the year after, they will be back up to 2005 prices.  No, it's not likely.   I don't think so, and neither does Roger Arnold, or any other REALTOR or economist that I know.

My message here:  Please, don't try to time the market.  If life is suggesting to you it is time to move up, move out, or move on... do it. Sell for what it's worth and make the best of it.  I am talking here, mostly, about principal residences... and telling you that if you didn't mean to be a landlord, you shouldn't be.  And, you need to seriously calculate the cost of a vacant home before you allow it to stay that way.

Besides, if you are moving out of that "starter" home as a move up buyer, or to relocate, then you are likely going to get the best end of both markets - seller's market conditions when selling, buyer's market conditions when buying.  What more could you ask for?  You would not have gotten that benefit in 2005. 

Looking at value rather than prices, it may very well be prudent for you to consider making your move now, while interest rates are lower and buyers have buying power, while inventory is low and buyers have little choice and are paying premiums and competiting not just on price but on terms.

Remember, most homeowners who thought, in 2007, thought their 2005 values would have returned by now.  It hasn't, and it's cost them money - a lot of money - over the past two years.  They have seen their dreams shattered and finances ruined by trying to time the market.  Don't make the same mistake. 

Here's an example of someone who's in denial over market conditions - it's a bit humorous, but after reading this blog and watching the video, look in the mirror.  You're not doing the same thing, are you?
http://therealestatewhisperer.blogspot.com/2009/08/in-economies-like-ours-its-hard-to-know.html

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

My advice here is NOT one size fits all. 

For a personal consultation in the Northern Virginia/Dulles area, please contact me at:

http://www.vickychrisner.com/

703-669-3142

VChrisner@KW.com

And, stay tuned to http://www.therealestatewhisperer.blogspot.com/

for more news from the front lines of real estate!