Is Your Home Ready For The Market?

I have completed a series of blog posts to help you, Mr and Mrs Seller, get your home ready for the market.  Check out the posts referenced below.  Or, better yet, give me a call and let's meet. 

Part of the service I offer when I list your home is a personal consultation on all of these things!  As you read these posts, I hope you'll see how much analytical study has gone into these words of wisdom.

Creating The Best Curb Appeal

Do We Need To Repaint?

Painting For the Market - Color & finish choices

Show Me The Space, I'll Show You The Money! Creating visual space

Knick Knack You're Getting Whacked! - Removing the small obstacles

Vignettes that Sell - Highlighting features, selling benefits

Create the "Not So Lived In" Look - Selling the magic house

PRIORITIES, PRIORITIES - Which staging suggestions are most important?

It's Show Time!  (Final touches before a showing)
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If you're really interested in how buyers react to different homes,

CLICK HERE and check ut a photo album on the facebook page.  These are pictures from the MLS of homes on the market in Loudoun County, priced between $500-600K.  Fans made comments providing their reaction. 

* * *

Selling Your Home? 

Hire a real estate sales consultant who understands

 the marketing and selling process! 

Vicky Chrisner

VChrisner@KW.com

703-669-3142

www.Facebook.com/REWhisperer

Vicky Chrisner is a real estate sales consultant with Keller Williams Realty in Leesburg, VA 

A New Convenience for My Clients and Customers

I am very excited to announce that now my clients and customers will have the ability to approve contracts and other documents via email using DocuSign!  It can even be done on your phone!

No more juggling schedules to try to meet with the REALTOR, no more printing, signing, and faxing or scanning.  That's right!  Just review the information and click a few buttons.  Imagine selling your house without leaving your business meeting or your daughter's recital! 

Finally, a Loudoun County/Dulles Area REALTOR(R) that understands YOUR needs!

Vicky Chrisner
Keller Williams Realty
http://www.vickychrisner.com/
703.669.3142

First Impressions Pay Dividends - The Value of Home Improvements Pt 2

In the annual survey, NAR (National Association of REALTORS) attempted to provide a gauge for what return sellers might expect to recoup after doing home improvements.  In other words, if you spend $100 for the improvement, will it increase the value of your home $100, or more, or less - THAT is the question.

Based on this report, there was ONLY one improvement that returns 100% or greater.  Again, I refer to my advise in Part 1 of this series where I tell you that if you are planning to sell, don't "invest" in home improvement - it's sure to return you a loss.

Wondering what the one exception is?  (Drumroll, please....) Replacement of a front door!

This reinforces another piece of advice I give to clients – first impressions count, and in this case, it seems they pay dividends. 

In fact, I tell seller clients that 30% of the buying decision is made prior to arriving at the property, as they’ve usually seen pictures, have a clue about the area and know the price before they’ve considered looking at your property – they are 30% sold. Then, they make an appointment or maybe just do a “drive by” – this accounts for another 20%. Here, they are taking into consideration more intimate geographical decisions – your neighbors, the street, the outside of the home – all together referred to as curb appeal. A front door replacement has some affect in this calculation, too…. Although they haven’t touched anything or gotten an up close look, so it is still minimal.

Here it comes, they get out of their car. They imagine coming home to this place… do they like what they see? They stand for awhile at the front, waiting on someone to open the door. How much trouble do they have getting inside? Does the lock fall off the door? Does it unlock? Does the door look good? There is a lot of time spent here, and thus, the front door replacement would have an impact.  I also urge sellers to consider other details a buyer might notice if they were standing at the front door - cob webs, windows/screens, porch furniture and condition, cleanliness of siding, any adornment on the door or near the door - like flowers, wreaths, flags.... these all impact what the buyer thinks about who lives in the home, and how they care for it.  Worn door mats will cost you money on your sale - replace it or get rid of it all together.

From the front entry, another 25% of the buying decision is made. That means, if they enter you home with a positive impression they are 75% sold. What can they see from the front entry? In staging and marketing, there is a great deal of time spent on how to make this critical impression.

Once inside they place their furniture, figure out where they will sleep, entertain, if their furniture will fit… and all this together only accounts for 25% of the buying decision, but they must be 98% sold before they will put together an offer. As a seller, understanding this process is critical. Usually the first and last 20% a seller can not affect-they can not change the location of their property, they can not change the configuration of the home. They can price right and stage right – and that is the difference between sold and for sale, and where listening to a qualified sales consultant comes into play.

If you are thinking of selling, now or in the future, please call me. I am happy to help you.  Stay tuned to The Real Estate Whisperer for the next post in this series, where we talk in more depth about expected returns for various Home Improvement Projects.  If you missed the first post, go back and read it - make sure you know the difference between home improvements and home maintenance.

I am Thankful For ....

I wanted to write and post a blog today on why I am thankful for my business… and, true to my nature, my first draft was very comprehensive and too wordy, so I trashed it, looking for a simpler thought to share…. and then I recalled this….

One day last year my daughter and I were driving down the road, and she started talking about the parent of one of her friends. It prompted me to ask “Rachael, do you know what mommy’s job is?” She nodded. “What?” I asked.

“You sell houses, help people and make new friends.”

(Long pause and big smile.)

Yep, it’s exactly what I do…. And I love it… I am so grateful that I somehow have managed to make a living selling houses, helping people and making new friends. What a lucky lady I am!

I am thankful for my clients, my associates, and my friends and family that support me personally and professionally every day. I would be nothing without you all.

Have a wonderful Thanksgiving

and

May God Continue To Bless You!

The Long and Short of a Short Sale, Part 4

Continuing our posts on short sales, this post discusses the most common clauses in the contract, and how you, as a buyer or seller, should attempt to negotiate the clauses.  (Please keep in mind you need an attorney or a real estate agent, or both, to advise you personally.  I am talking here in very general terms.)

All real estate contracts have contingencies in them on both sides.  A contingency is the "if" in these statements:

I will sell you this house IF ______________.

I will buy your house IF ________________.

Contingencies can be for anything you can dream up.  However, most residential contract contingencies fall into a handful of categories.

Sellers Contingencies:

To protect the seller, the primary contingencies revolve around money and the settlement date.  The seller says "I will sell you the house IF you give me $___________ by__________(date)".  If the buyers don't bring the money to closing, or don't show up, the sellers can terminate the contract without penalty  (although there may be a penalty to the buyers). 

In a short sale situation, sellers should also have a contingency for "Third Party Approval" - meaning they need to get approval from their lender(s) to be able to sell the property, since the proceeds will not cover the mortgage.  If the sellers can not obtain the approval, then they can terminate the contract without penalty.

Buyers Contigencies:

To protect the buyer, contingencies almost always include: (a) financing (if they can't get a loan, they can't buy the house); (b) appraisal (if an appraiser doesn't certify that they are paying market value-or less-for the property, then they won't buy the property); (c) the dates, particularly the date of settlement; and finally (c) that the buyer needs to be getting the deed to the property, free and clear, with all rights and enjoyments of ownership (in Virginia, this is called a General Warranty Deed).  In addition, we often see buyers ask for a contingency to do a home inspection and/or environmental testing on the property; and, if the property falls in an area that has a Property Owners Association, then Virginia provides the right to buyers to receive and review a package full of information about the restrictions and fees associated with that POA.  In a short sale situation, we may also see language built into a contract that allows the buyers to terminate the contract because the "short sale approval" hasn't been received within a certain time frame. 

To improve chances of a short sale, sellers want a contract that has no buyer contingencies. 

To provide the maximum protection and lowest risks, buyers want maximum contingencies.

If I am representing a seller:

• 
  
  PRICE: I want a contract price that represents at least full market value; and in general, I want the highest price possible to entice the bank to approve the sale, and also because in some cases, sellers are being asked to pay the deficit between the mortgage payoff and the proceeds of the sale.  The higher the proceeds of the sale, the less my client would be liable for.
  
  
  
• 
  
  FINANCING: I will attempt to obtain a cash contract, with no inspection or appraisal contingencies for the buyer.  If that is not possible, I will want a full loan commitment, with the only contingencies being seller contingencies.
  
  
  
• 
  
  DEPOSIT: I want a high earnest money deposit, and I want it to be deposited into the escrow account as in a normal contract.
  
  
  
• 
  
  SHORT SALE APPROVAL: I want the longest possible timeframe to get the short sale approved.
  
  
  
• 
  
  PROPERTY OWNER DOCUMENTS: Since this contingency can not be waived by the buyers, I want any POA documents delivered to the buyer early on, with an addendum that they will pay the cost to replace them if they terminate the contract and do not return them.
  
  
  

If I am representing a buyer:

• 
  
  PRICE: I want a contract price that reflects no more than the market value in "as is" property condition...preferrably with a financial  benefit to my client because they are having to deal with the uncertainties and frustrations of a short sale.  (Generally, if the bank orders a BPO/Appraisal of their own, and the contract price is within 10% of the fair market value, then they will accept it; of course, I hope my buyer will be paying at least 10% less than fair market value).
  
  
  
• 
  
  DEADLINES: I want a full home inspection and financing and appraisal contingencies, and I don't want my buyer paying any of those "hard costs" (out of pocket) until we've gotten the approval from the seller's lender (which is the thing that takes the longest in this process).
  
  
  
• 
  
  DEPOSIT: I want the "consideration" for the contract to be in the form of a Note Payable, rather than actual funds, until the seller's bank has approved the sale.  This is because EVEN if my buyer defaults, their money is still in their own pocket - and the seller will have to sue them to get the deposit.  Most sellers in this situation will not take court action to obtain cash from a buyer that didn't buy the house.  However, if my buyer DOES NOT default, but has made a hard money deposit into an escrow account, and the buyer choses to exercise a right of walking away from the contract under one of the contingencies, then my buyer may have to fight the seller - perhaps even in court - to get their money back.
  
  
  
• 
  
  SHORT SALE APPROVAL: I want a short timeframe to get the short sale approved, in an effort to increase the speed of each action on the other side of the transaction.
  
  
  
• 
  
  OUT CLAUSE: I want an addendum that says my buyer can serve a UNILATERAL notice to the seller that he is terminating the contract FOR ANY REASON, up until the time that the short sale approval is received.  This is so that my buyer can continue looking for other homes while he waits for the approval on this short sale.  That way, if it is not approved, the buyer didn't miss out on anything (interest rates, pricing, market supply) while he waited.  (Please note this is not part of any standard addendum in our region... and many agents will wrongfully tell you it is implied.  Again, your agent matters. Read what you sign - regardless of what your agent says, the written agreement dictates the enforceable terms.)
  
  
  

In this post, I sound a bit like a 2 year old, I want what I want....and I do put up a good fight if it seems reasonable.  However, in the game of real estate it is not about getting all of what you want, it is about getting enough of what you want and all of what you need; and about balancing the needs and wants of the primary parties. 

Balancing the two sides is where an experienced agent with good negotiation skills comes into play.  But, sometimes you simply don't know how good your agent is until it is too late.   So, in my next post, I will share examples of things I have seen, failures and successes.  These examples will help you know how to balance your interests.

I invite you to read the earlier posts in this series.  Start with this post:  A Short Sale, Anything But Short.  Then, stay tuned to The Real Estate Whisperer for important real estate news from the front lines...Get your news AS the market is changing!

***

It probably goes without saying, but, if you are thinking of buying or selling in Northern Virginia, I hope you'll call ME first to see if I can assist you. Also, no matter where you are in the country, feel free to contact me. While I can not give real estate advice outside of Virginia, I can connect you with a proven professional in your area. I belong to many networks, including REO and short sale expert networks, and we have members throughout the country.

I can be reached at:

http://www.vickychrisner.com/

703-669-3142

VChrisner@KW.com

Who Can You Trust?

In economies like ours, it's hard to know - which economists and government leaders should you trust? Which ones really know what's going on? How can you decide when it is time to save or spend? Where to invest? If it's time to buy or sell a house? If you should buy at a higher price, because prices will continue to go up; or if it's time to wait for prices to drop further? Watch this video (courtesy of The Daily Show), and then YOU DECIDE:

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
Home Crisis Investigation
http://www.thedailyshow.com/
Daily Show Full Episodes Political Humor Healthcare Protests

As for me, I always check out how they decorate their bathrooms before I decide if I trust them or not. What about you?

The Long and Short of a Short Sale, Part 2

Since the homeowner is the one who initiates the short sale process, let's look in more detail at the selling side.

In this post, I will talk about who should and should not consider a short sale; and WHEN they should take action.

Why consider a short sale? Anyone who thinks they may end up allowing a home to go into foreclosure should seriously consider this option.

• CREDIT: With a short sale, your credit is damaged, but not nearly as badly as it would be if the home went into foreclosure.
• LIVING SITUATION: With a short sale, you are not evicted (like you could be if your home was foreclosed), and you look like a better prospective tenant to future landlords if your credit shows a short sale, rather than a foreclosure and eviction, on your record.
• PRIDE: You are cutting your losses and controlling the damage....making the best of an otherwise uncomfortable situation. Your neighbors and co-workers probably already know you owe more than your house is worth - so do they... but you're showing them that you are the kind of person that works with everyone involved to find a satisfactory resolution; that you are responsible.
• SECURITY CLEARANCES/JOB REQUIREMENTS: Especially true in the Washington DC Market, many people have security clearances required for their jobs. In these cases, foreclosures can be very difficult to explain, and short sales are are considered much more favorably, especially when they are coupled with a true hardship (see below). Foreclosures can put your current or future job options in jeopardy.
• DEBT FORGIVENESS/AVOID BANKRUPTSY: In most cases, you can negotiate debt forgiveness as part of the package; and therefore, do not have to worry later about collection activities, which otherwise could force you into bankruptsy to protect the assets you do have.

Why should an owner NOT consider a short sale?

• NOT ENOUGH TIME/LENDER WON'T AGREE: If any of lenders advises the owner that there is not time before the foreclosure, or that for other reasons they will not work with the owner in a short sale process (this is increasingly rare, but it happens).
• TOO COSTLY: If the homeowner has so many layers of liens and mortgages against the property that professionals are telling you that it is not likely to be approved and/or they will only attempt it with a large, non refundable deposit or fee. (Small non-refundable fees are reasonable, especially if your case is a complicated one. A small fee is a couple hundred dollars - not thousands.)
• DON'T NEED TO: When the owner CAN continue to make payments as agreed for the duration of the loan; even if it is uncomfortable. Or, when the owner would prefer a loan modification and the lender has indicated a willingness to work with the owner for a loan modification.

A short sale should be the last alternative to a foreclosure, not a knee jerk reaction to falling real estate values and overleveraged homes. With each short sale request, the lender will require a "hardship letter". This is a letter that explains why you, as the homeowner, have a hardship and why they, as the lender, should work with you and forgive part of your debt.

Hardships include:

• Involuntary job loss or unexpected loss of substantial income that prevents you from making payments or from making the full payment.
• Involuntary change in family situation due to death, divorce or other unexpected changes, like becoming the Octo-mom.
• Involuntary relocation (i.e. military relocation).
• Medical situation/disability that either results in a decrease of income, and significant increase of expenses, or the need to move elsewhere, or a combination of these things.
• You could never afford the mortgage in the first place, and you can show that by the continual use of your savings (which is rapidly declining or depleated) and credit lines (which are rapidly increasing or maxed out) to pay the mortgage.

What is NOT a hardship:

• You pulled all the equity out of your home to purchase another piece of real estate which you still own, free and clear from any liens or mortgages. (Cure: sell that second property and pay down your current mortgage; or sell the primary property and take a mortgage on the second property to pay the deficit on the first property.)
• You like going out to dinner every night and shopping at the best stores and that makes it hard to pay your mortgage...besides mom said you can live with her for free.
• You don't really want to work anymore.
• The value of your property declined, like everyone else's, and you don't think you should have to suffer that loss.

While it is true that in some (non-recourse) states, like Nevada, you may still get a short sale approved even if you do not have a hardship.... most of the time, banks are looking for your sob story here. Give it to them.

When do you throw in the towel?

Going through this process is very difficult emotionally. Let's face it, when you started this journey, you had a very different outcome in mind. This was to be your home; or the investment that was going to solve your future financial woes. Now, those dreams are not being realized and you're suffering a very real financial loss and that goes hand and hand with emotional loss.... not to mention that this hardship is generally because of another hardship (like job loss or divorce). Given that, you are likely to go through all five stages of grief:

• Denial (we can do this);
• Anger (if the real estate agent/lender/spouse/child/etc. hadn't...fill in the blank.... I wouldn't be in this situation);
• Bargaining (maybe if we...);
• Depression (it's hopeless);
• Acceptance (OK, let's move on).

You should call the a real estate agent and perhaps an attorney or financial advisor when you are in the "bargaining" stage, assuming (at that time) that you are still current on your mortgage. That's when we can help you examine options. Talk to consultants that you trust, who have your best interest at heart and who are not charging you for their advice at this stage of the game. Be wary of their interests - if they get paid only if you do one thing, expect them to want you to do that one thing; especially if they are pushing you very hard rather than trying to help you. For example, respect a real estate agent who asks you if you've attempted to have your loan modified so you can stay in the home.

DEFINATELY call a real estate agent no later than when you realize you can not make the next mortgage payment. The further behind you are in your payments the harder it is to have a successful short sale, and you may have eliminated other options at that time, too.

******

In the next posts, we'll talk more about the selling side - about what the ingredients are for a successful short sale, and about about the role of the real estate agent, attorney or third party negotiator in the short sale process. Then, we'll talk about the buying side, and what risks buyers have and the countermeasures they should take to reduce risks. Stay tuned!

If you are wondering if you should consider a short sale, call me. I am happy to provide a free consultation any time.

Vicky Chrisner, Keller Williams Realty

Ofc: 703-669-3142

Email: VChrisner@KW.com

www.VickyChrisner.com

Update on the Market: Washington DC Area (VA/MD/WV/DC)

Delta Associates is a well respected authority within the housing market, but their reports are rarely public, until now. MRIS (The Metropolitan Regional Information System), which is the local multiple listing service, now offers reports to the public through their web site each quarter. The video below explains how to view some of the information, offering highlights from the 2nd quarter reports for 2009. The Washington DC metropolitan area includes Northern Virginia, most of Maryland, and the panhandle of West Virginia, and (of course) DC.

For more specific information or assistance interpretting what this data means to you - as a potential home buyer, home seller, renter or property owner - please don't hesitate to contact me. I am happy to be a resource for you!

Also, you can run an automated report showing sales information for YOUR NEIGHBORHOOD, by clicking this link.

No Matter How Unique

No matter how unique your situation or your needs, please remember I am here to assist you and your friends, relatives and colleagues with all your real estate needs! To remind you of this, I wish to share with you this video, found on You Tube: http://www.youtube.com/watch?v=erPLr16Zzjc While these homes are found who-knows-where, with your help, I'd like to put together a photo collection of the strangest homes/buildings in Northern Virginia. Send me a photo of the funniest most unique home you can find, by August 31st, for each picture of a home that is used in our video, you'll be paid $100; for commercial buildings, you'll earn $50. And, remember, your business is important to me, and your referrals are the lifeblood of my business. Call me today with any real estate questions!

Vicky Chrisner

Keller Williams

703-669-3142

VChrisner@KW.com

Money Trees Are Almost Bare!

FREE MONEY!! The FHLB Money Trees are almost bare! If you don't know what I am talking about, please read my previous post: http://therealestatewhisperer.blogspot.com/2009/06/free-money-for-your-home-purchase.html One of my lenders still has some funds left. This is a 5:1 matching program; for every $1K you put in, FHLB adds another $5K to it. Yes, they put in 5 times what you do! Income do limits apply. Contact me right away for more details! Please hurry!! As you can imagine, free money goes quickly; and the money trees are almost bare!

Yes, Virginia, There Is A Way To Buy With No Money Down

Yes, Virginia, there are still some ways you can buy a home without a down payment. Take the Veteran's Administration loans, for example - if you've never served in the military, then this option is not available to you; but it's a great program for those that have served. In fact, this is exactly how my husband and I purchased our first home back in the early nineties. The official web site is: http://www.homeloans.va.gov There's also the "VHDA PLUS" which is a second trust option available to moderate income families in Virginia. In Northern Virginia, the sales price/loan limit is $408K; and a family of 3 or more must have an income of $100K or less. Learn about this program: http://www.vhda.com/vhda_com/Template_a.asp?VHDA_COM_PAGE_NAME=Eligibility_Requirements In some counties - like Loudoun - there are also second trust loan options available for households with more reduced incomes, adjusted by family size. These loans can be used to purchase foreclosures, market rate homes or ADU homes. Learn more: http://www.loudoun.gov/Default.aspx?tabid=2120 So, yes, although the options are more limited in scope and are targeting specific household types, there are some programs still available. These are just a few examples. If you're in the market to buy a home, contact me. I am happy to help you investigate these and other options to see what the best program for you is.

REO's - The Addendum

Three or four times a week I get an email inquiry from consumers who have read my prior posts on buying REO's. (See the most popular of these posts at:

http://therealestatewhisperer.blogspot.com/2008/08/reos-everything-you-need-to-know.html or http://therealestatewhisperer.blogspot.com/2008/12/types-of-sales-seen-in-todays-market.html). Specifically the email requests are for an addendum that I reference.

I am always hesitant to give it directly to the consumer. Laws vary greatly from location to location, and I don't want to be accused of giving real estate advice in areas where I am not licensed. Each bank addendum is different, and therefore the addendum should reflect the language specific to the rest of the contract. The addendum is intended to serve as an example, and not a form that should be used carte blanche in all REO transactions.

Then, I feel bad when I tell a consumer to have their agent contact me directly to obtain the addendum. I feel worse when I am overwhelmed carrying for my own business and drop the ball and fail to send it for them; and I confess that I've done that a couple of times inadvertently. I fear it will be more common, as I've switched primary computers and it is a difficulty for me to go to the other computer to forward the addendum. You see, I am using the addendum less because in our local market, traditional sales are returning (Hip, Hip, Hooray), short sales are becoming more successful and I am simply working less in REOs.

I currently have one REO listing - hits the market today; but all of my deals that are under contract for the moment include contracts for purchase in traditional sales or new home sales. A new day is dawning in Northern Virginia.

In any case, I think I've come up with a solution; as I know some areas are just now being hit by floods of REOs and you really, really need this! I found a place where I can store this addendum online and make it available to you. Here it is:
http://docs.google.com/Doc?docid=0AWPfdTb2RWFGZGYyY3JzNWpfM2R2ZzNta3Zr&hl=en

Remember, reading blogs and educating yourself is great, but does not replace competent real estate or legal representation - ever. There are just too many variables; and a blog can not possibly address them all. However, the information you get from my blogs, and others, should serve to stimulate educated discussions between you and the professionals you are choosing. You SHOULD NOT know more than your agent. If you do, you should get another one. I firmly believe the value of an agent is advice. Sure, there are service related conveniences - access to listings, lockboxes, forms, affiliated companies that may offer free or low cost services, etc. But, what a Real Estate Agent should bring to the table, above all else, is their knowledge.

Now, go forth and purchase!!! And, if you are in my area - look me up! I'd love to serve as your chosen real estate consultant. http://www.vickychrisner.com/ 703-669-3142 VChrisner@KW.com

First Time Home Buyers

First time home buyers are starting to learn about the new tax credit of up to $8,000, and it is exciting them! It's evident in the online chats and at the water coolers across the nation. Combining that incentive with the incredible interest rates available today (many are under 5%), and the supply of available homes, it's a combination difficult to resist. Homes are more affordable today than they have been in a very, very long time.

And, first time home buyers are doing more than just chat. Here in Loudoun, they are taking action. In March, approximately 45% of the home purchases in the market were done with FHA and VA loans, most of which are first time home buyers.

Sales activity is up, again, in the region. In a year over year comparison, Loudoun's activity level has exceeded the prior year's activity for 10 straight months.

The result is that in the lower price points, inventory is declining. Buyers are finding that there are far less homes available than they anticipate, and the purchasing process can be very competitive, with contract prices often exceeding the list price.

Once they enter the market, first time home buyers are sometimes surprised at the amount of time it can take to find the right home and then successfully negotiate a deal. Short sales and REOs make for a complicated and turbulent process, and competent representation from a strong knowledgeable real estate consultant is required. With the tax credit set to expire December 1^st, home buyers interested in taking advantage of this credit should start talking to real estate professionals and lenders very soon.

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Buyers interested in learning more about the local real estate market in Loudoun and the Dulles area can contact me at vchrisner@kw.com.

First Quarter, Washington DC Region: Market Activity Remains High

MRIS, the local MLS company servicing the Washington DC Metropolitan area, is reporting high activity levels again in March 2009, for the 4^th consecutive month, in year over year comparisons. This area includes most of Maryland, Northern Virginia, all of Washington DC and the panhandle of West Virginia.

The Affordability Index is now at 156, nearly 50% higher than two years ago. This means that the median family income is now 156% of the required qualifying income for the median home price. In simple terms, this indicates that most area households more than qualify to purchase a home in the area where they live and work.

Continuing fallout from the foreclosure mess is holding prices down in most areas of the region, but there are many indicators that the local market has reached a level of stabilization.

The first time home buyer credit of up to $8,000 is coaxing first time home buyers off the fence…and even trade up buyers are braving the market because of the amazing prices and interest rates, now putting the cost of their dream homes within reach – even considering the reduction in the value of their current homes.

Despite reports that show high numbers of days of marketing activity, actual experience in the market indicates something very different. In fact, at some price points, there is very little inventory, despite the appearance of available homes when searching the MLS. This is a direct result of how distress sales are being handled. REOs (bank owned/post foreclosure properties) often have active listings for several days, perhaps a week or longer, after they've verbally accepted an offer. Short sales often have multiple offers submitted to the bank awaiting approval for several weeks or months, all the while showing as available listings in the MLS system. So, buyers entering the market, after investigating via online searches, are very shocked to find that much of what they saw online was actually phantom inventory.

While regional reports give some insight, real estate remains a very local business. Within the DC Area are many submarkets and even mini- or micro-markets defined by geography and price points.

Many reports are available to the general public at MRIS.com – click on News and then on Market Statistics – reports here can be run by county or zip code for each month. However, as pointed out in this post, remember that statistics don't always present a thorough picture of the market… contact a local REALTOR today.

I service the Dulles region – a suburb of Washington DC, which includes Fairfax and Loudoun counties and part of Prince William County. Contact me now for information about these markets, or for a referral to a knowledgeable professional in your market.

Renters Beware!

Imagine this: You're at home, having a weekend cookout with friends. There's a knock at your door. It's a real estate agent. He explains your landlord lost the property when the bank foreclosed. He wants to know how quickly you can move. He offers you a hundred dollars if you can move by next weekend, if you can't, they'll start the eviction process immediately. What? Eviction? Wait! You've been paying your rent. You have a lease. The owner never said anything. What's going on? This scenario is happening with increasing frequency. Renters are shocked to learn that even if they pay their rent, landlords have no obligation to use that money to pay the mortgage payment. In most cases, the renters can forget trying to recover their security deposit. What can you do to protect yourself? First, consider renting from a professional, established owner/landlord. For example, apartment or other rental communities are usually a safe bet, plus they often offer other services and amenities not found with privately owned homes. If you can not find a rental community that fits your needs, I suggest you contact a real estate agent who can help you evaluate the risks associated with renting from private landlords. You run a lower risk of running into this situation if the property was recently purchased by the current owner or if the property has been an investment property for many years. If the owner had listed the property "for sale" or "for rent", beware! These are desperation moves by an owner. Owners in this situation have been unable to sell their home and are usually in financial distress. After you've moved in, keep your eyes peeled for other signs. If an owner fails to conduct maintenance on the property, if the landlord seems to be dodging your calls, or you see bank notices addressed to him, these could all be a sign of problems to come. In the "good ole' days" the landlords screened the tenants. Today, smart tenants are screening their landlords, too; and a professional tenant's agent can help you.

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