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).

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

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

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

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

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

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

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

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

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

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

Be sure to call me if I can help!

Vicky Chrisner

703-669-3142

http://www.vickychrisner.com/

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? 

NO SPAM, NO BULK EMAILS,

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!