Types of Real Estate Investing

There are lots of different “types” of real estate investments. You can invest in land for long term hold, commercial property and so on.  However, since I am primarily a residential REALTOR, this post is about different types of residential real estate investing.

The first time I learned about real estate investing I was 4.  My dad had built 4 houses for a developer on Vale Road in Oakton.  The market was terrible and when he was done, the builder owed him about $70,000.  But he could not pay because he could not sell the houses.  Eventually, he came to my dad and made an agreement to give my dad a house in exchange for the debt, and my dad could take a loan out on the property to pay off his suppliers, etc.  My father was not happy about being forced into homeownership.  However, it’s probably the best thing that ever happened to him.  Today, both of my parents (since divorced) own homes that they own free and clear of any mortgage because since that time, they have both been homeowners, and the value of the properties they have owned, over time, have always increased.

So I believe that real estate ownership DOES built wealth over time.  Here are some examples of how YOU can build your wealth in the world of real estate.

Personal Residence

There’s no better investment, in my opinion, than the real estate you purchase to live in.  Sure you are going to let emotions and non-financial things guide this purchase but the truth is, you have to live somewhere.  So even if you pay a premium for something that may not equate to market value, you’re still reaping the dividends.  Buy what makes you happy – life is short.  Then, maintain it and care for it and love it.  Most importantly, do not use it as an ATM.  Do not refinance every 2 years to pay off revolving debt, buy a car or go on vacations.  Choose your financing wisely, take advantage of tax benefits and focus on paying down your mortgage until you own it free and clear.  A good equity position goes a long way in increasing your net worth.

Residential Rental Properties

Some people intentionally buy their first home to keep as an investment, and once more established, they keep that residence as a rental (as recommended in David Bach’s Automatic Millionaire series).  This may or may not be a good decision.  At the time you’re deciding, consider the net value of the home vs. the rental income and consider how it will impact your next primary home purchase (i.e. your ability to have a sizable down payment, and to be able to afford the mortgage on the home you want).  If it passes that test, evaluate that house just like you would any other residential rental property investment.

When evaluating a purchase of residential investment properties, first decide how long you wish to own the properties.  A “long term” investor (in my book) is 10 years or more.  Consider the acquisition cost (including any repairs), the expected costs to hold (taxes, insurance, maintenance, financing, and management costs), and expected rental income.  Then assume moderate growths in all of these areas, including a moderate rate of appreciation for the home.  At the end of 10 years, are you making money?  How much?  Will it have been worth it?

Fix & Flip

If you want to buy property to fix up and sell, you need to have high risk tolerance because just when you think the market has recovered, and it’s got no place to go but up, it’s sure to change.  So make sure you have a back up plan or lots of room for error.

Know your acquisition costs, your hold costs, your repair costs and your cost to sell.  Then pad these numbers in case you’re wrong, because unless you’ve done this a few times, you probably are.

The residential real estate market is hard to predict in 6-12 month increments because it can turn in the blink of an eye.  So, my F&F friends – work fast.  Be ready to start the “fix” on closing day and get that thing back on the market quickly – 30 to 60 days should be the goal, because you want that place sold within 90-120 days.

The key is making this work is to know when the market is turning and react fast.  If you see a slow down, don’t “wait and see” if it picks up next month – drop your price, cut your losses and get out.  If you can’t… if your budget was blown and you’re not going to reap the benefits, know your back up plan.  Can you rent it and still be comfy cozy?  Then do it.

Builders

This type of investment is also high risk in my opinion.  It circles back to my original story about how my dad became a home owner.  Much like the “fix and flip” investors I just mentioned, these investors most know their acquisition costs, their construction budget, their hold costs, and their costs to sell.  But the building process will take longer than repairing a property, which means they need even more market knowledge and wiggle room in their assessments.

I guess that developer that had the four properties in Oakton made a judgement error.  But, kudos to him for realizing that the properties did have value and he could still pay off debt with them.  He did sell the other three properties, in time.  And he did not go bankrupt.  Most importantly, because of him my parents have personal wealth today and a home that costs very little for them to live in.

Remember:  There Are Tax Consequences

The goal with real estate investing is to build wealth and produce income.  Wealth and income are taxable.  Don’t forget that.  So, a tax advisor needs to be involved in helping you to evaluate any purchases and sales like these.

Legal liability

I can not mention real estate investing without talking about legal liabilities. Owners are responsible.  For everything. All real estate owners need to have good insurance, and lots of it.  You’ll need to protect yourself from being sued, as well as against Acts of God.  Make sure you understand your risks by talking to an attorney, and consider limiting your risks through various avenues.  Get that legal advise before you even write an offer, so that you take title the best way (in your name? your business name? as tenants by the entirety? in an LLC?  in a trust?)  and so that any financing you’re using to acquire the property is also in the right entity name.  Then, talk to your insurance advisor and make sure you have plenty of coverage for all the what ifs.

Are you ready to get started?  You can reach me at 703-669-3142 or MyAgentVicky@Gmail.com.

If you’re considering owning rental housing, you might also enjoy this post: Property Management 101

Remember, I have moved my blog and only occasionally post here anymore.  Be sure to stay tuned to "The Real Estate Whisperer" at this link.

The Market Recovers, Appraisals Lag Behind

Today as I was discussing an appraisal issue with a couple of fellow practioners, I learned that appraisals are suddenly becoming more of an issue.  And, unlike a year ago, it's not really because appraisers that don't know the market place, but more because of the market changes.  A year ago, 6 months ago, we had a lot more distress sales in the market....and the "traditional" sellers had to compete with the distress sales in order to be able to sell.  But for the past 6 months things have been absolutely ROCKING and there has been upward pressure on sales prices... and we ARE seeing prices go UP.  (Sellers - this is where you cheer:  YAY!)

BUT, (and there's always a BUTT, isn't there?), appraisers are pulling comps of past sales... You know, from when we had so many distress sales, and when the market wasn't so hot.  As a result, appraisers are having a hard time justifying the new sales prices that the market is bringing.  THAT is a problem we haven't had for several years.  It's good news...."ish"... I guess.  Well, the cause is good.  The side effect - not so much.  (Buyers and sellers together:  Boooo!)  A low appraisal can kill an otherwise perfect real estate sale.

Honestly, I am frustrated.  I get it, but I am frustrated.  "Fair Market Value", is, by definition, what a willing buyer and seller agree to in an arms length transaction.  It is not what an appraiser thinks.  And yet, appraisals are holding back our market recovery.

So I am trying to be an optimist here, and focus on the positive - the market is strengthening.  And I will try to take the problems in stride.  Dear sellers, and buyers, I hope you do, too.  Real estate these days is not always a fun game to play.

In the mean time, take a look at theses posts:
To make you laugh:  Your Home, as seen during a real estate transaction.
To help you get your appraisal: Get the best appraisal for your home.
Interested in learning more about our market place?  Visit the Market Statistics part of my web site for the latest news, stats, and information.

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

   

Loudoun Real Estate Market Looking Good

If you keep up with my blog, you know my opinion of the market. If you keep up with the Loudoun County market stats posted on my web site (and updated monthly), then you have already seen the evidence for yourself. And if you read the newspapers, then you will see that a recent survey of other agents and area builders reinforces what I have been sharing: The Real Estate Market in Loudoun County is looking good! :) The hottest submarkets? Ashburn, Brambleton, Potomac Station, and Potomac Falls....and homes priced $400-500K, and just above $1m....but homes in Western Loudoun are selling, too! In general, Loudoun is rockin'! In fact, inventory is so tight, the sale of land is picking up again too, and custom home builders are seeing an increase in the number of their contract. This is of particular interest, as building a custom home generally requires more than a desire... it requires a significant down payment and to qualify for a loan, borrowers must have a high level of liquidity and financial stability. Interested in learning more about real estate in Loudoun County? I am here to help! Vicky Chrisner 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

What? No Cookies?

I have been working with some buyers for several months... We have looked, and looked, and looked at homes.... Foreclosures, Short Sales, Vacant Homes, Model Homes, you name it. From the time we first entered a model home, the client commented "What, no cookies?" It's true... gone are the days where you can count on getting fresh baked Otis Spunkmeyer cookies at any model home.

This became the joke... Every house we went in, someone would comment "It's nice, but there are no cookies." Or something like that. Earlier this week, I showed them 2 homes that they really really liked, especially the second one. Of course, I continued the joke... "Yeah, but there are no cookies, so we better keep looking."

We went back the next evening to show another family member... Guess what we found? Yep. There were more, but we ate them. I had to take a photo before they were gone. They were tasty, too.

And no, it was not an open house. But it was an owner that did absolutely EVERYTHING right as far as staging and making the home available for viewing. She gets an A +++ !

Anyway, it got me thinking... I wonder if there is a camera in here? You know, many people have them. I even noticed them in another home I showed the same night. So, let this be a warning Mr & Mrs Prospective Buyer - be careful what you say and do, you might be caught on camera. For us, I have no idea if there was a camera or not, and we didn't say or do anything that would be a problem, so I am not too concerned. But it's pretty ironic that the cookies were there the next night, don't you think?

Oh - and in case you're wondering... We're waiting on a response to our offer. Did the cookies seal the deal? Hard to say, but it certainly sweetened things a bit.

31 lot Subdivision, Round Hill

Vicky Chrisner | (703) 669-3142 Airmont Rd, Round Hill, VA Conditional Approval has been received on this 31 lot subdivision in the Town of Round Hill, near Sleeter Lake. Property will be served by town water and sewer.Property is approximately 31 acres, with gentle rolling landscape, and a small lake in the corner of the property. Lots average 3/4 acres each. For more information on this or other land for development, contact Vicky Chrisner: 703-669-3142 or email: MyAgentVicky@Gmail.com. additional photos Contact info: Vicky Chrisner (703) 669-3142 Equal Opportunity Housing

Posted: February 03, 2012

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.

Do You Need A Survey When You Buy A Home?

Do you need a survey when you buy a property? Here are some insights from Keith Barrett, attorney and owner of Vesta Settlements in Leesburg, Virginia.

 Stay tuned to The Real Estate Whisperer for more news and real estate advise.    

EVEN REALTORS MOVE!

Even REALTORS have to move sometimes... and the time for me has come!

I am pleased and proud to announce that I have completed my transition from a national franchise brokerage to a local boutique brokerage based in Loudoun County called Fieldstone Real Estate.  

As a result of this change, you'll be seeing some differences in marketing materials but clients who have been working with me for many years can already attest that there has been no change in the service level being received.

I have a great new web site that is being published for the first time later today... You can find it at the same old URL:  www.VickyChrisner.com

Like any good real estate web site, you can search for your new home right there.  Unlike many other real estate sites, this web site is updated hourly with a direct feed from the MLS system... that means when my web site says the house is available, it is!  Imagine that!  No more lost time drooling over listings of homes that are no longer available!  Plus, when new listings come on the market, you'll see them listed here within the hour!  With the market heating up and the best homes often selling within days, you don't have time to be leafing through old listings.  

I'll be adding lots more info to this web site in the coming days, weeks and months and look forward to your feedback.  If there are some real estate resources you'd like to see, email me at MyAgentVicky@Gmail.com.

My "New" Contact Info is basically the same - only the logo and email address has changed.  Reach out to me anytime for the real estate info you need.

Vicky Chrisner

REALTOR (R) 

Serving Loudoun County and the Dulles Area

703.669.3142

MyAgentVicky@Gmail.com

www.VickyChrisner.com

Facebook.com/TheRealEstateWhisperer

Real Estate Tax Exemption for Disabled Vets (Virginia)

Real estate taxes in Fairfax and Loudoun are pretty high, but we get some great stuff in return - benefits I don't mind paying for. That's probably what our Vets here thought, too... until they became disabled. With less income, it becomes much more of a burden to pay for all of that infrastructure. And now they can get a pass!

Virginia voters authorized a new real estate tax exemption last November. The legislation provides for an exemption from county real estate taxes on the principal dwelling and up to three acres for veterans with a 100 percent service-connected, total and permanent disability. Persons desiring the exemption are required to file the necessary form and provide qualifying documentation. This exemption is also extended to the veteran’s surviving spouse, so long as the death of the veteran occurred on or after January 1, 2011, the real property is maintained as the survivor’s principal residence, and he or she does not remarry.

If your home is in Fairfax, go to this web site for more information and forms: http://www.fairfaxcounty.gov/dta/realestatetax_disabledveterans.htm

If your home is in Loudoun, you can apply by going to www.loudoun.gov/taxrelief-forms, by calling the Commissioner’s Office at 703-737-8557, or in the Commissioner’s offices in the County Government Center in Leesburg or the Loudoun Tech Center in Sterling.

In other counties contact your local taxing authority.  Applications should be available throughout the state.

I would just like to take this opportunity, from the bottom of my heart, to thank ALL our Vets for their many sacrifices... sacrifices I am not brave enough to make personally. What would I do without you? You are all HEROS to me. THANK YOU FOR YOUR SERVICE.

Play Houses That ROCK

I saw this article this morning, and all I could think was....

Dear Daddy,

When I asked for a playhouse and you gave me the shed you'd previously kept the mower in (because you bought a newer bigger one of those)... Well, perhaps I should have been more specific.

From,

Your Loving

(And Wishing I Could Keep Up w/the Jones's) Daugther

"LIKE" www.Facebook.com/TheRealEstateWhisperer for 'Real' Real Estate News;

PLUS, fun real estate related thoughts like this one!

Vicky Chrisner

Jealous (Even Now That I am A Grown Up) Daughter

and

Real Estate Sales Consultant

Serving Loudoun County

703.669.3142

VChrisner@KW.com

Tax Auction Sale in Loudoun County

A tax sale auction of certain properties with delinquent real estate taxes has been scheduled by the Loudoun County Treasurer's office.   The sale will be Wednesday, May 11, 2011

.

Properties for sale include:

• 44075 PIPELINE PLAZA #305,in Ashburn; PIN 087-29-4881-014
• 1.63 acres near Bluemont; PIN 653-37-5970-000
• 17550 FORT JOHNSTON RD,in Leesburg; PIN 269-17-5171-000
• 2.54 acres SYCOLIN,PARCEL A; PIN 192-16-6161-000
• 576 EDMONTON TE NE in Leesburg; PIN 148-37-0881-000

For more information, please contact:

Vicky Chrisner

Selling Homes and Land in Loudoun County

703.669.3142

VChrisner@KW.com

Is Your House Listed Yet?

I am often asked about what our local seasonal cycles are for real estate, so I thought I'd pass along this chart (thanks MRIS) for real estate sales volume in Loudoun County since 2006.  Despite fluxuations due to weather, tax programs, loan programs, interest rates and many other things, this chart shows a definitive cycle for our area.  Lowest sales have been occurring in January and February and the highest number of sales usually in June of every year. 

Keep in mind, this chart represents closed sales.  Most residential contracts are 30-60 days in contract (of course, with short sales that is longer, but I am speaking "generally" here). 

Is your home listed yet?  If you're thinking of selling this year, you may want to get a jump on things.  Buyers are out in force now, and are looking.  Many people won't put their homes on the market until June (they'll wait until school is out, etc), so often the early bird does get the worm.

Thinking of selling your Loudoun County home?  I can help!

Vicky Chrisner

Home Sales in Loudoun and Dulles

703.669.3142

Also see:

Is Your Home Ready For the Market Yet?

Types of Sales in 2011

Knick Knack, You're Getting Wacked!

Continuing our series on preparing your home for the market, (check our the previous post "Show Me the Space, I'll Show You The Money"), we're going to tackle the little things....

Step #2: Kick Knack: You're Getting Wacked!

I touched on this in the prior post but it bears talking about again, and more in depth.  Some people will delicately refer to this stage as "decluttering" and "depersonalizing".  I have seen how some sellers interpret this, so I am taking the delicate out of what I am saying: 

If you love it, if it's very presence is what makes this house feel like home to you,

then it probably needs to be hidden.  

The pictures of the kids, your parents, your college diploma, the letter from the President, pictures and momentos from your world travels... they are all awesome.  But they really need to be put away.  They are telling YOUR story.... they tell us about your life.  Your life is not for sale.  Your house is.  We need to display your house,  not your stuff.

On that note, got collectibles? Knick Knacks?  Check the general "THREE" rules:

• Anything smaller than 3 inches tall needs to be hidden.  
• If there are more than 3 of anything in a room then there are too many.

Keep in mind, your idea of "happily ever after" may not be the same as your buyers'.  They are looking for a place where their dreams can unfold....not on picking up where you have left off on your journey. 

Emotionally, these are the hardest things for sellers to do.  But I promise, it makes a difference.  You will get a quicker contract if you're willing to sell your house without your story.

* * *

Our next post is coming soon: Vignettes that Sell!  Stay Tuned.

Do We Need To Repaint?

“I will be putting my house on the market soon and I’m wondering~

Do we need to repaint the whole house?”

Common question; but the answers vary.

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Clearly, if your home is overdue for a paint job, then yes, to get the highest amount possible for your home, you should repaint. Otherwise, I hate to give a blanket response to that.

 

Many people have highly personalized décor and coordinating wall coverings; but it may not be necessary to undo all that work when you sell.  Having said that, here are some simple guidelines and tips:

A VACANT HOME: If the home is going to be vacant when it is shown and marketed, then it becomes more important to have a fresh paint job, with color selections from a neutral palette so as to appeal to the widest groups of people. [Click here to see repainting guidelines]

WALLPAPER: Because there is a general perception that wallpaper is hard to repair, touch up or remove, it's generally advised that wallpaper be removed, or perhaps painted over before putting the home on the market.  This is particularly important if it is in poor repair, dated, highly personalized or a busy pattern.

PANELING:  The “circa 1970-something” paneling is outdated and an obstacle to selling today.  But did you know you can paint over it? It is far more practical than removing it and hanging drywall, and so that is a common recommendation.

BUYER PROFILING:  Who is the most likely buyer for your home?  What is their age, origin, family composition, gender?  Where do they work and play?  Based on that information, we make staging choices which may require some repainting.  Here is an example:  Women buy for entry ways, kitchens, bathrooms and master bedrooms. Men buy for basements, garages, and storage areas. We try to make sure those areas are appealing to those gender groups. So, for example, a basement family room that looks too feminine (pink paint or flowery wallpaper) may need to be repainted.

The buyer profiling part of these guidelines gets tricky and requires an analytical market study.  This is all part of the services I offer when you hire me to represent you to sell your home.  So, for a personalized opinion, give me a call and let's set up an appointment!

Vicky Chrisner

Keller Williams Realty

Leesburg, VA

703.669.3142

www.VickyChrisner.com

VChrisner@KW.com

(Notes about pics on right:  While the top picture with green walls will not appeal to most people, it isn't likely to interfere with a sale in most submarkets.  The lower picture with the pink bubblegum family room could keep a home from selling.)

Painting For The Market

If you’ve decided you need to repaint to get your home ready for the market, here are some quick and simple guidelines:

•  Make sure drywall repairs are complete before repainting.

• COLORS: Since you’re repainting, select from a neutral color palette. Currently, warm colors are “in”… so choose a light beige type color for the walls; and use white for the trim – this two tone look adds richness and makes the trim “pop”. Ceilings should always be painted white.  (See image on right.)

• TYPE: Flat paint is more forgiving of flaws in the drywall, so be sure most of your home is painted in flat paint (if you were repainting for your family you might choose a more durable, washable paint, but you’re painting for the market here). Flat goes everywhere EXCEPT the kitchens, bathrooms, doors and trim – those are all painted in white semi gloss. Ceilings are painted in flat white paint, if they need to be done.

Keep the end in mind – this just needs to spruce up your home enough to sell it, so it is not necessary to use the highest grade paint… you just need it to cover up what’s in place.

• If you don’t have to repaint all areas of your home, don’t. Very often, ceilings do not need to be repainted.

• If you’re repainting the whole house, consider repainting it all the same color to keep costs down, unless you have a floorplan that is “too open” and you need to do have color variations to define spaces. This becomes critically important in vacant homes, but even so, you can generally choose just two tones of the same color and use them strategically to define the spaces. Get a second opinion if you’re not sure if you need to do this.

• Do consider options for painting over paneling and wallpaper rather them having them removed.

Last but not least, please remember this: A bad paint job is worse than no paint job, and despite what you may think, very few people paint well. Please consider hiring a professional (not your brother who needs the work) to do this job, and hold them accountable for the end result and staying on schedule.

Dr King and Fair Housing

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

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

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

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

 

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

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

Painting the Town Red

Hey, there Lo Co Home Sellers! 

New in 2011, Keller Williams Realty will be painting Loudoun County RED once a month.

It is our plan to hold as many of our listings open on the same day each month as possible, literally painting the town(s) with our red signs.  Imagine the number of showings on your home when that many homes are held open on the same day!

Your home deserves to get the most attention as possible.  This is just one of MANY ways we work to do that.  Call me and find out more.

And friends, January is typically a strong month for real estate sales.  Our first "Paint the Town Red" day is January 9th.  Let's make sure your home is on the tour route that day.  Call me now.

Vicky Chrisner

Keller Williams Realty, Leesburg, VA
703.669.3142
http://www.vickychrisner.com/

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.

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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/