Vicky Chrisner
(703) 669-3142
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| Posted: March 09, 2012 |
Showing posts with label va. Show all posts
Showing posts with label va. Show all posts
Friday, June 1, 2012
Sold 605 Valley View Ave SW Leesburg VA
Thursday, May 31, 2012
Breaking News: RESPA, NAR, Quicken and Brokerage Admin Fees
RESPA, RESPA, RESPA...What is it anyway? The web site www.HUD.gov explains: " The Real Estate Settlement Procedures Act (RESPA) insures that consumers throughout the nation are provided with more helpful information about the cost of the mortgage settlement and protected from unnecessarily high settlement charges caused by certain abusive practices. "
Among other things, this law has a prohibition against "unearned fees" being charged by settlement service providers to the consumer. Settlement service providers are real estate brokers, lenders, closing companies, surveyors, pest control companies, home warranty companies and almost any party whose charges show up on the HUD-1 Settlement Statement.
This portion of the law has been tested in lower courts and was seemingly interpreted to mean that real estate brokers could not charge "admin fees" or transactional costs above the commission they were charging. The courts, as I understand it, were saying that the brokerage had the duty to file the paperwork and coordinate the transaction. Therefore, brokerages could not charge an additional fee over and above the commission, to clients and customers for these tasks. As a result, many local brokerages began to rename these fees and continue to charge them, but label them as "flat fee" commissions, because that is what the court said they were. So, brokerages would charge X percent plus a flat fee of Y as commission for their services.
WELL, now NAR (the National Association of REALTORS) says that the ruling by the Supreme Court last week changes things. In this particular suit, Quicken (a mortgage broker) was being sued by customers who claimed that the loan discount fee (aka loan processing fee) violated this same clause of the law as it was an "unearned fee". Quicken defended itself by saying that the law only applied to fees that are shared with another servicer. The case made it to the Supreme Court and....(drumroll please) the Supreme Court sided with Quicken.
What does this mean for real estate brokers and their "Admin" fees? Will they be re-emerging in the marketplace? Who knows. But I know this... my office does not charge admin or transaction fees in addition to our commission. In fact, Mr and Mrs consumer... when I recently moved from one office to another I ended up at such a small boutique brokerage because all the 'nationals' that I considered do charge these fees (regardless of what they are called). I stood firm against it and simply would not go to an office where I would be forced to charge these fees to my clients. I mean, really... How could I tell you "You Have A Friend In the Business"... and then nickel and dime you to death every time we did business together? I couldn't.
Whether you're ready to buy or sell a home, or just need some honest real estate advice, I am here for you:
Vicky Chrisner, "The Real Estate Whisperer"
Selling Homes and Land in Loudoun County and the Dulles Area
703.669.3142
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Learn more about this case:
Speaking of Real Estate "Supreme Court Provides Clarity on Brokerages' Administrative Fees"
Wednesday, May 23, 2012
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.
Tuesday, May 22, 2012
So You Want To Be A Real Estate Agent?
I hear this from friends quite often... "I want to get my real estate license. I think I'd make a good real estate agent. I like looking at houses."
While the meat of the business is far more than looking at houses, the truth is that most agents fail because they can't find the people who want to look at the houses - or at least not the ones who wish to purchase them and are ready, willing and able.
Sadly, this agent will not likely make it. You see, the brokerage hired you to find business... not the other way around. And the brokerage was right when they told her to talk to the people she already knows - Are they willing to hire you? Refer you?
In this market, I know I would not hire someone who is new. Buying or selling a home a HUGE investment decision and very complicated and when you hire a real estate agent, you're relying on their expertise. Expertise you get from doing business. In some cases a new agent may not know as much as their consumer. It takes years and years of experience.
Luckily, when I entered the market as a new agent, I was not new to the business - I'd been working in real estate for decades, and so the transition was easier for me.... but it still took adjusting. I wasn't used to having to ask for business or referrals either. My advantage was once I had the "lead" I had the experience to justify them hiring me. But what if you were a home maker or negotiated labor contracts for a living? Not only are you not used to having to "find" your next client, but once you have them you're not really sure what to do.
Sure, some people get lucky - and I am often surprised by some of the people that make it in this business. It can defy logic. Maybe that will be you. But if you're that lucky, maybe you should just play the lottery.
Bottom line, here is my advice to anyone who wishes to get into this business... You are starting a new business, you are self employed, you are not getting a job. It is not the same. And, the projection on what you should make the first year... Here's how you figure it out:
How many people do you know RIGHT NOW who will buy or sell a home in the next 12 months? Of those, how many people will hire you to help them? Multiple that number by 75%, and those are the clients you'll have this year. Guesstimate your income per transaction based on sales price and the normal commission charged in your area, and then take out the costs for your broker, taxes, and expenses. (Generally an agent gets to keep 30% of their gross earnings.) That is what your projected income will be in the next 12 months. Are you excited? Probably not so much, but it's the truth that no one else wishes to tell you.
Yes, marketing helps, but the cold calling, bulk mail, door knocking, etc. can only do so much. It's a drop in the bucket, because everyone who talks to you will not hire you. Some will. Many won't. Once they do, if you do a great job, then they will refer you and use you again. That's why it's worth it. It's never about today's sale. It's always about tomorrow's.
Having shared all of this info, I have a message for my friends, family, and clients: I hope now YOU realize why I need your referrals, why I need your business, why I work hard to try to be the smartest, best, most loyal, most helpful, most competent real estate agent you know. If I have managed to establish that impression in your mind, take a moment to think about who you know that needs my help, and then connect me. I will be forever grateful. Without the support of my friends, family, and past clients, I would have no business. Thank you, thank you, for your continued support.
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Friday, May 18, 2012
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.
Stay tuned to The Real Estate Whisperer for more news and real estate advise.
Saturday, June 11, 2011
Who's Afraid Of The Big Bad Wolf?
I am not afraid of the 'Big Bad Wolf' blowing my house down... but with all the tornadoes lately, I am a little concerned about a tornado blowing my house down! So I sent an email to my insurance agent to ask some questions about my coverage and "typical" coverage in our area. Specifically, I asked about hurricanes and tornadoes....and I thought I'd share what I learned with you.
- Tornado damage is considered wind damage, and wind damage is covered! (Score!)
The dwelling and contents are covered up to their applicable limits specified on the declarations page of the policy. I have State Farm, whose policies have one deductible applicable to property losses. The deductible applies one time per loss. So one tornado causing losses to the dwelling and contents would only have the dedictible apply once for all the damage. (Good news! Just what I wanted to hear!)
- Hurricane damage is also covered, BUT.... (Yikes...I don't like 'but's)
Just as stated above, the dwelling and contents are covered up to their applicable limits. This includes wind damage and wind blown water damage (hurricanes are wind + rain usually). In rare cases you might see policies with a separate, higher deductible for hurricane losses, even in our area (my policy is not that way).
Where you get into gray areas is where homes sit on the edges of the ocean, rivers or lakes where the storm surge caused by the barometric pressure of the storms and high winds force the ground water in the ocean, rivers, and lakes inland. That's considered a flood and flood insurance is needed. The difference is if it's wind blown or surge. It can be a very fine line since wind has a part to play in surge too. Many people think poor drainage on their property/house is a flood and would be covered if they had flood insurance. Not so. Generally, to be considered a flood there has to be standing water over 2 sq acres or your neighbor has to also experience the same water damage effects.
Hmmm.... Should we be worried about flooding?
Hmmm.... Should we be worried about flooding?
When you buy a home you will probably have a flood certification done.... this is where someone certifies the risk level of your home flooding.. and based on that risk level, you may or may not be required to carry flood insurance. But, if you're not required to have flood insurance, does that mean your home can't flood? No. It doesn't. No one can guarrantee that your home won't flood. So, assess your risk tolerance, and talk to your insurance agent if you feel you need insurance for this type of event.
I would like to thank my insurance agent, John for his contributions to this post. He's been an asset to me many times over. If you're looking to change agents, give John a call. His rates are competitive and the service is great...and HE is a delight.
John G Lindsay Ins Agency Inc
State Farm Insurance Agent
(703) 777-5547
831 S King St, Leesburg, VA 20175
Disclaimer: Please remember, my insurance agent gave me answers about MY policy (not yours) but I have a fairly standard policy for the Northern Virginia area. His contributions are noted in red below. Please note that policies vary LARGELY in different regions.... so you are encouraged to check with YOUR INSURANCE AGENT about YOUR POLICY.
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The Land You Love in is a Flood Zone?
No worries! I would also like to tell you that I have a great client, Licking Valley Construction, who builds homes and enjoys building homes in the flood zones. Strange as it may seem, he knows that living on a river or lake can be worth certain risks, and he knows how to minimize those risks. For example, he builds elevated homes on columns... like the photo on the left, which results in a minimal requirement for flood insurance since the finished space is well above the flood zone. Check them out! http://www.lvc-homes.com/
Saturday, January 15, 2011
Sales Analysis in Stratford Club (Leesburg, VA)
First, a little background. Stratford Club was a rental apartment community. Toll Brothers purchased the community at the height of the market to do condo conversions. They struggled like everyone else, and have rented many of the condos to keep some cash flow, prolonging the sales phase. So, if you're planning to sell today you are still competing with the Toll Brothers sales office.
What's interesting is that converted condos have probably been lived in as rentals post conversion, and if not, they were at least lived in as apartments "pre conversion", so no one is moving into the covetted "NEW HOME" they are all "used". Yet, those being sold by the on site sales office continue to be more in demand.
OK, enough background. Here is what sellers really want to know... How much can I get? For the "Arlington" (one bedroom floorplan without loft, without garage), here is what my preliminary research showed:
OK, enough background. Here is what sellers really want to know... How much can I get? For the "Arlington" (one bedroom floorplan without loft, without garage), here is what my preliminary research showed:
1st time sales: Homes purchased from Toll are selling for about $193,000 with Toll paying all closing costs (presumably around $6K worth) and one year condo fees (roughly $2500). (If you're a seller, this means that the net is about $186,500).
Resales: To offset the various "advantages" that Toll has over most sellers, someone selling their similar condo, in similar condition, would need to be priced at a value to get the attention of home buyers. My generalized estimate for a traditional sale comparable to the Toll homes being offered is that a seller could sell for $175K or so, with variations of $10K above or below that depending on specifics.
Distress Sales: But here is the reality of the situation.... distress sales (foreclosures and short sales) are common in this neighborhood, and they are far more of a hassle for buyers. Short sales are more plentiful than foreclosures and are the hardest of the hard for everyone... buyers, sellers, listing and selling agents. So, to induce buyers to put up with the hassle, short sales must be priced at a true "bargain" price. As a result, what we are seeing for that floorplan in that neighborhood are distress sales in the mid $140K's.
A Final Note for Buyers: A forty thousand dollar savings for a buyer is HUGE. It is difficult to find anywhere near that kind savings in that price range. So, this is one example when it makes sense to consider a short sale over a traditional sale from the sales office. There are hassles, and pros and cons, but that is enough of a discount for one to think "hmmm... this time, it might be worth it."
A Final Note for Sellers: If you have a condo in Stratford Club and would like a more specific CMA, please call. You don't even have to clean your house, I can provide more customized information for you right over the phone, and if we can come up with some tentative strategies that might work for you, then I am happy to meet you in person and look at your condo and talk to you in more detail.
Vicky Chrisner
Keller Williams Realty, Leesburg
703-669-3142
Saturday, June 19, 2010
Open Houses June 19 & 20
Looking for a new home in Loudoun? Check out any of these open houses this weekend!
http://mrislistings.mris.com/Matrix/Public/Portal.aspx?k=6931961783&p=DE-114641294-564
Don't see a home that is for you?
Shop online and stop using real estate web sites with outdated information! Go to http://www.vickychrisner.com/ - click on Home Search - this is a live link to the local Multiple Listing Service that real estate agents use.
Great houses, but weekends are so busy! For a personal tour of these or other homes on your schedule, contact Vicky Chrisner, Keller Williams 703-669-3142 VChrisner@KW.com!
Friday, July 17, 2009
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!
Wednesday, November 19, 2008
Lender or Mortgage Broker? What's the Difference?
Attention: Buyers and Borrowers There IS A DIFFERENCE!
A lender is a specific lending institution, often times a bank, that lends their OWN money. When they pre-qualify you they are using the actual, real time standards that institution has in place. A pre-qualification means something. An approval means something. It means the person that has the money has agreed to give it to you.
A mortgage BROKER does not have any money to lend. A pre-qualification means that they THINK they can get a loan for you SOMEWHERE. The approval from the actual lender will generally come at the very last moment, and when it does the loan program may look very different than what you originally discussed.
When getting loans was easy, using a mortgage broker offered an advantage because they could look at all the products available on the market, and (theoretically) find you the best loan available - no matter who was offering it.
But, today, with loans being harder and harder to obtain, and guidelines and programs changing by the minute, you need to be talking to someone as close to the source of money as possible. When lenders change guidelines or discontinue a loan program, it is their own people who learn of the changes first; and their own people who have opportunities to close loans in progress under those programs. Any broker planning to use the same exact loan program runs a higher risk of not being told as changes are taking place, and of the programs vanishing before the loan can be securely placed and approved. Plus, many banks are considering brokered loans higher risk, since they do not know if that broker operates under the same standards that their employees do.
In my opinion, with our current climate, I do not recommend attempting to get a loan through any mortgage broker. And, only use reputable lenders.
I recommend you speak to your real estate agent to get a referral... even if you're not buying, but just refinancing - ask your favorite real estate agent for a referral to their most trusted lenders. Remember, without a good lender, a real estate agent may never close a deal. They need to keep lenders who are trustworthy and knowledgeable very, very close to them. Conversely, those loan originators work hard for those agents that are sending them business....they know that messing up ONE loan could cost them the potential of a lot of future business from that agent. As the consumer, you can benefit from that relationship.
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