Free Annual Credit Report

Just one quick real estate tip today.... If you're thinking of buying in the next year (or two) and haven't seen a copy of your credit report lately, I encourage you to get your free credit report. You can do so online at www.AnnualCreditReport.com. There are other sites, including "FreeCreditReport.com" with really cute commercials, like this one.

But don't get drawn in by the name and other marketing efforts, this is a site that wants your paid business, and will do their best to get it. The federal government credited the law that once per year you are entitled to a free credit report, and the web site designated for this is www.AnnualCreditReport.com. Even though you can get a complete credit report via this site, you can not get a free credit score.

I hope this quick little post keeps you from getting drawn to the wrong web site and spending money on something that is available to you, for free.

Got other real estate questions? I am here for you - just send me an email to MyAgentVicky@Gmail.com and I will try to help.

Remember, with me, you have a friend in the business. Stay tuned to The Real Estate Whisperer for more real estate tips and news!

Vicky Chrisner, REALTOR

703.669.3142

MyAgentVicky@Gmail.com

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.

Should You Hire The Inspector Your Agent Suggests?

This post is inspired by a conversation I had with a client and local business man. He is a well established, experienced home improvement contractor. Recently, he had a past customer call him and say that a potential buyer for her home had a home inspection done and that inspector reported that the bathroom fan this contractor had installed was not vented to the outside. Of course, the contractor had installed the fan and he showed the customer where the vent was. This tainted his opinion of home inspectors. I understand.

When he told me the situation, I rolled my eyes. As a listing agent I have seen many poor inspections come back to me... Most are accurate. Most are fair. Some are not. Some are just wrong. Sometimes the home inspector will think he's earning his fee by scaring the potential buyer. Sometimes the home inspector will think he won't get another referral from an agent if he points out all the flaws.

So, what kind of home inspector do you want? I say my buyers want a fair home inspector... one who will not provide a "good" or "bad" opinion, but will report the facts, objectively... In my view a home inspector has multiple roles:

• Inspect the property and discover significant flaws. They will also discover relatively insignificant flaws, too, but let's be honest... there are a bazillion parts to a home and no one person, in a matter of two hours, can discover every flaw. You want to make sure they catch the big stuff... it's probably OK if they didn't catch something small.
• Report the property flaws objectively - without scaring the potential buyer or glossing over facts.
• Provide an accounting of systems... most buyers do not know from walking through the property and reviewing the marketing materials what kinds of systems are in the home. I want a home inspector to tell my buyers what's inside this particular "People House", how old it is, and how it works.
• Provide usage and maintenance information... Even if you've owned homes before, that doesn't mean you've owned this kind of system. A good home inspector will not know everything, but they will definitely know the most common types of systems. They should be able to tell you how to operate the system and what their maintenance requirements are, as well as their average life expectancy. Proper use and maintenance of systems increases the life expectancy dramatically. That's why some homes have 30 year old water heaters that still work. But, let's face it, that one won't last long, so you need to know that it's going to need replacement soon. And you need to budget for it.
• Provide insights on repair items - How difficult is it to repair? What might it cost? Is it something Harry Homeowner can do, or should this be left to a contractor?

What if an inspector stumbles across something that he doesn't know much about? Well, he should be able to record certain information, and give you resources. For smaller systems, like a security system for example, the owner may have a manual and be able to provide information on how to use it. And that might be all you need. For other situations where the owner can't help you fill in the blanks, you should get enough information from the home inspector that you know what questions to ask and of whom to ask them.

The inspector's role is NOT to provide advise on contract issues to the buyer. An inspector should not say "you can tell the sellers they have to fix this" because your inspector is not your REALTOR... and he probably doesn't know what your contract says nor does he know the dynamics of the transaction like your agent does. Trust your agent here.

So, should you take your agent's advice about what home inspector to hire? I suppose it depends on the competency and trustworthiness of your agent. I'd like to tell you that you can trust us all... but as in every profession, there are people who are trustworthy and competent, people who are trustworthy but not very experienced and therefore less competent, and people who are experienced but are really just in it for the quickest cash possible. Hopefully, you've found an agent that is trustworthy and competent... and if that is the case, then I think your agent is going to know better than the yellow pages who to hire. After all, they are helping a lot of people buy and sell homes, and that experience and guidance is why you hired them.

I will also tell you that sometimes, agents have a "go to" person, or two... but those people may get too busy sometimes to help you. In those cases, your agent may have to make calls to other agents they know and trust to get other recommendations. It happens. But you'll notice that if your agent is good, he or she does not go to the yellow pages to find you another recommendation...and if they do, watch out.

Buying a home is a pretty big deal... one not to be taken lightly. Although some buyers don't feel the need to do an inspection, I always encourage it. (Check out this post to learn why.) My husband would not allow a professional inspector when we bought our homes - and boy did I live to regret it. I am older and wiser now. If we ever buy another home, not only will I get an inspection, but I will know who to call, too. It will be the same person I recommend to you.

Remember, with me, you've got a friend in the business!

Vicky Chrisner, REALTOR

Ofc: 703.669.3142

Email: MyAgentVicky@Gmail.com

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.    

Northern Virginia Real Estate Market Statistics

This information, and much more, is available on my web site at www.VickyChrisner.com and is updated regularly, so for the latest and greatest info, be sure and check out my site.

HOW MUCH INVENTORY IS THERE?

The real estate market is really all about "Supply and Demand", so to understand the market the first question is: How much inventory is there? In other words, how many homes are currently being marketed for sale in our area?

This chart gives you the 5 year historical data on inventory levels in our Northern Virginia area:

PRICING TRENDS & FACTORS:

When inventory is high, prices will inevitably have to fall so that inventory can be re-balanced. This is what you see in 2007-2009. Remember, too, when looking at that data, that the "First Time Home Buyer" tax credit programs were in place for parts of 2008-2010 offering financial tax incentives for those purchasing their first homes. These programs did stimulate the "starter home" market substantially. This meant that the lower priced homes were selling more rapidly and those were a significant portion of the sales during that time, pulling down the "median" sales price statistics. That program helped to re-balance our inventory levels, and made way for sellers to become "move up" buyers. This program continued to have an impact on the market statistics through 2010. In 2011, we saw more normal trends in pricing, with moderate price growth; and 2012 seems to be reflecting a similar, although even more optimistic, trend.

This chart shows you the 5 year historical data on median sales prices within our Northern Virginia area:

ARE SELLERS GETTING THEIR PRICE?

Sellers need to know how much negotiation buyers are generally expecting in the market.... and Buyers need to know if low ball offers are getting accepted. While every transaction is individual, this chart gives us a big picture answer to that question. In the chart below, you can see the 5 year historical averages in our region for the percentage of selling price to original list price.

WHAT ELSE?

If you're interested in hearing the latest available statistics, and market indicators in our region, you won't want to miss this video, and be sure to check back after the 20th of the month to get the next update.

***

When you're looking for a REALTOR that knows the market, you can trust Vicky Chrisner. Vicky Chrisner, Northern Virginia REALTOROffice: 703.669.3142

Email: MyAgentVicky@Gmail.com  

www.Facebook.com/TheRealEstateWhisperer

Real Estate Activity Cycles in Loudoun County, VA

WHEN DO MOST LISTINGS HIT THE MARKET? The chart below shows the 5 year history of "listing" cycles (reflecting the number of NEW listings for each month).

Economic conditions resulted in a high number of foreclosures which hit the market as resales when banks listed the homes for sale. Consistently we see that the highest number of new listings typically hit the market in the early spring (March/April) and summer months, with new listings tapering off through the summer and the lowest number of new listings in December.

WHAT ARE THE MONTHS WITH THE HIGHEST BUYER ACTIVITY LEVELS?

The chart below shows the number of new contracts, and number of settlements. Keeping in mind that contracts are usually ratified 30-45 days before settlement, this chart shows what you'd expect: The "New Contracts" level (purple) and "Settled" level (blue) are very similar with the blue settlement level mimicking the pattern of the purple new contracts level, with approximately a one month delay. You can also clearly see that buyers in this area are typically more active in March through May, and December is typically our slowest month of the year.

HOW DO THESE PATTERNS IMPACT AVAILABILITY? Despite the high level of buyer activity in the spring and fall, this chart shows that (since the market began to normalize around the end of 2009), the inventory is typically higher in the late spring and summer. For sellers, this means you have more competition! For buyers, this means you have more choices! By the time late fall comes, the number of active listings has slipped again and inventory becomes scarce. *Please note, all charts on this page are updated on or about the 10th of each month as new statistics are available from our local multiple listing service. So please check back for the most current information. Interested in learning more? Check out this resource reflecting historical and current information on Real Estate Pricing Trends in Loudoun County. You can also learn more about the regional market by checking out the page on Northern Virginia Regional Real Estate Market Stats which also contains information that is updated monthly. When you’re looking for a REALTOR that knows the market, you can trust Vicky Chrisner. Office: 703.669.3142 Email: MyAgentVicky@Gmail.com www.Facebook.com/TheRealEstateWhisperer

Real Estate Pricing Trends in Loudoun County, VA

MEDIAN PRICE HISTORY

This chart reflects a 5 year history of median price levels in Loudoun County. The blue line is for all housing types; but as you see, detached homes (purple), attached homes - i.e. townhomes (pink) and condos (red) have all followed a very similar pattern. For those wondering "Are we at the bottom of the market yet?" I'd say there is clear and convincing evidence that in Loudoun, the prices in our market place bottomed out in the first quarter of 2009, and prices have been moderately climbing since.

ARE PRICES BEING NEGOTIATED?

Buyers and sellers both need to know: "Are buyers in this market expecting to negotiate down from the asking price, or are the buyers expecting to pay the asking price?" It's an important question. Sellers need to price according to market expectations. Buyers need to know, too, so they are looking at properties in the right price range, and so they know how to present a offer that might be accepted.

The 5 year history shown on this chart reflects the "ORIGINAL list price to sale price" ratio. It demonstrates that when you were buying in 2008, you could probably negotiate a good bit from the listing price. But, in the last couple of years we are seeing far less negotiation on sales prices. Sellers are turning down low ball offers and getting within 5% of their asking price.

But (and there is always a "but"), as the chart below shows, homes that are getting contracts quickly after listing are getting their price, sometimes more (purple); homes going under contract in less than 30 days are also getting very close to their asking price (red, maroon); but the longer the property sits on the market the more that seller is likely to consider a lower offer, or to drop their asking price.

*Please note, all charts on this page are updated on or about the 10th of each month as new statistics are available from our local multiple listing service. So please check back for the most current information.

Interested in learning more? Check out this page on the seasonal trends of Loudoun's Real Estate Market.

You can also learn more about the regional market by checking out the page on Northern Virginia Regional Real Estate Market Stats which also contains information that is updated monthly.

When you’re looking for a REALTOR that knows the market, you can trust Vicky Chrisner. Office: 703.669.3142 Email: MyAgentVicky@Gmail.com www.Facebook.com/TheRealEstateWhisperer

Distress Sales Plummet in MRIS Territory

This post just in from the Virginia Association of REALTORS, Submitted by Andrew Kantor on May 11, 2012 – 8:32am

We’ve now got MRIS’s April numbers for foreclosures and short sales. Short sales are slightly up, but foreclosures are waaaay down.

Short sales: 12.2% of the market, up about 3% from last April
Foreclosure sales: 11.0% of the market, down 47% from last April
Total distressed sales: 23.2% of the market, down 29% from last April

Granted, having a market where almost a quarter of the sales are distressed isn’t a Good Thing, but there’s a sense to it. People bought near the top of the bubble and have to sell (for whatever reason — job, life change, etc.). So they either take the hit or work out a short sale with their lenders.

That means that short sales are going to continue to be a noticeable part of the market for as long as lots of folks own homes bought between, say, 2004 and 2007. If they have to sell, they’ll have to sell at a lower price, ’cause it’s gonna be a while before prices are back up to those unnatural highs.

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Comments from Vicky Chrisner:  This is great news and evidence of the continuing market recovery.  From a personal standpoint, within my service areas I am seeing 20% or less of the market is distress sales (foreclosures+short sales).  In 2008, I mostly worked REOs (foreclosures); in 2009 it was a mix of REOs and short sales; in 2011 my business was about 1/3 traditional resales, 1/3 distress sales and 1/3 new construction.  So far, in 2012, I have worked mostly with traditional resales and new construction and am pleased to report that I am even doing a lot of land sales again…. I estimate the percentage of distress sales is about 15-20% of my business so far; which seems very much in line with the submarkets where I work.

-Footnote:  MRIS is the Metropolitan Regional Information System~ It is the multiple listing service for the Washington DC Metro area which includes Northern Virginia, Washington DC and most of Maryland.

This post is courtesy Vicky Chrisner, "The Real Estate Whisperer" 

Interested in learning more about local market statistics?  Check out this page which gives you some great charts and graphs about stats in the Northern Virginia Market.

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

Prevent Mold Growth

I am just firing off a quick little post to address the many wet basements and such we have in our area.  Sadly, flooding and mold is something I have had to deal with - a lot - over the years.  I hope you can benefit from my experience and training.

MOST IMPORTANT RULE: 

To prevent mold growth, all wet areas must be thoroughly dry within 72 hours.

Some tips:

1.  Solve the problem - do not wait on your insurance adjuster.  You have a responsibility to mitigate your damages.  Take some pics and then get to work.  (Note:  I don't think there is any insurance out there that pays for damage from mold!!!  It's super important you don't wait for your insurance guy to show - I can not stress this enough.)

2.  How did the water get in?  If you have something that is clearly leaking from the outside, at least rig up something to temporarily assure more water will not be entering your home.

3.  Got standing water?  Get rid of it.  The fire department will come and soak up water if you have a lot.  You also can call almost any carpet cleaning company - check their web sites or call and ask if they offer emergency services.  This is an emergency!  They will bring water extractors and start sucking the water up and out.

4.  Swishy carpet?  Generally for carpeted areas (assuming it was soaked), you must pull out and dispose of the padding underneath and pitch it.  However, you *may* be able to save your carpet.

5.  Wet drywall?  Cut it out and get rid of it.  You can not dry drywall (assuming it got soaked through) within 72 hours so don't try - cut it out and allow the wall behind it to air dry.  Trust me on this. 

6.  Get fans.  Buy them, rent them, borrow them... whatever you have to do.... get them.  "Carpet fans" are made specifically for the purpose of focusing air flow UNDER a carpet, between the carpet and the subfloor - where the padding that you just threw out used to be.  This is the best way to try to save the carpet.  If you don't do this, you will have mold and you will end up having to replace all your carpet, and possibly even subflooring in some cases.  If it is an uncarpeted area, sop up the water, mop up the water, and keep the air circulating.    Remember to turn on any "whole house" fans and dehumidifiers that you have, too.

NOW you can wait for your insurance guy.  Remember to keep receipts for everything. 

Sorry you're going through this... but I hope this post helps a little.

Your Favorite Real Estate Expert

Vicky Chrisner

Keller Williams Realty

703-669-3142

http://www.vickychrisner.com/

Castles to Condos

Thinking of changing your address?  From Castles to Condos, I can help!

I am proud to be sponsoring the 2011 Holiday Tea with Cinderella and Her Friends.  I sponsored and attended with my daughter last year for the very first time, and I was incredibly blown away.  I have  never been to such an amazing event! 

• A formal tea party. 
• A ballet.
• Dancing.
• Pictures with the Fairy Godmother & Cinderella.
• Gifts for every attending princess.

And did I mention it benefits Blue Ridge Speech and Hearing?  They work with people that have speech or hearing deficits, and as a non-profit, their services are available regardless of the family's ability to pay.  It's a great cause!

Learn more about this event by checking out the links below:

 - Facebook page

- Blog

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

And, remember... Castles to Condos, I can help! 

Let me help you make your real estate dreams come true!

Start shopping for your new home in Loudoun or the Dulles area by clicking here!

Thinking of selling?  Check out my advice for sellers: Ready, Set, Sell!

Better yet, reach out to me today for your own personal consultation:

Vicky Chrisner

Keller Williams Realty

www.Facebook.com/TheRealEstateWhisperer

http://www.vickychrisner.com/

703-669-3142

VChrisner@KW.com

The Ironic Story of How My Dad Bought A Home

In honor of Fathers Day, I wanted to post a real estate story about my dad.  There are many to tell, as my dad has been a builder for most of my life, and I have been watching and learning the entire time. 

But today I have decided to share with you how my dad made his first real estate investment.  Talk about sweat equity!  Ha! It's a rather unusual story, but then again, most stories about my dad are.

When I was in preschool, Dad built 4 homes on Vale Road in Oakton. We were in a recession, and the developer couldn't sell them and therefore couldn't pay my dad. That was a problem.

So, the developer offered my dad a house. The cost of one house was approximately what he owed my dad for building the four. Reluctantly, Dad took the offer. He'd never been a homeowner before and we were currently renting a home owned by his sister.

At the time, my dad would have said he got a bad deal. Plus, he was "forced" to live in a house he didn't want. The entire time we lived there he complained "If I'd known I was building this house for myself, I'd have.... (fill in the blank)."

In hindsight,  he'd tell you that was a great deal. Who knows when he would have gotten around to purchasing a home....but he's been a homeowner ever since. He sold that one when my parents divorced a few years later and they each took their "half" and bought another. Eventually, developers came and pushed Dad out of his last house and now he owns a gorgeous piece of property on Goose Creek in Leesburg and lives in a home he built for himself... one he intended to live in...and he owns it free and clear.

You see, if you pay down your mortgage and hold onto your house, in the long run, it's one of the best financial investments you can have.  The key is long term ownership.  That's the best investment lesson I've learned in my life, and watching this ironic story develop is one way I have learned it.... and today I decided to share it with you.

Are you read to buy today?  If not, start thinking about it.  The earlier in life you begin owning the more you'll appreciate it down the road.

Vicky Chrisner

Real Estate Consultant

Keller Williams Realty

703-669-3142

Other posts you may like:

(About my dad): Living With A Hero

(About homeownership): What Our Grandparents Taught

It's Summertime! Feelin' the Need to Get Away?

Ahhhh! Summer is upon us.  Time to head for the hills?  Chillax on the lake?  Smell the salt air and listen to ocean waves?  No matter your style, remember that vacationing requires you make a real estate decision.  This isn't just activities here, you gotta stay somewhere.  Sure, you may choose a hotel, but if you have a  family or a group of more than two, a house or condo will likely offer you better accomodations for less.

For my friends and clients, I want you to remember that I am here to help with ALL your real estate needs....this means your vacation needs, too!

Did you know that...

You can find vacation rentals on my web site... anywhere in the DC Metro area, including, but not limited to Ocean City Maryland! (Our closest beach makes a great getaway, and we really enjoyed Sunset Island when we rented a condo there.)

http://www.vickychrisner.com/

Just click on the Property Search option.

I have a client that specializes in building riverside cottages and mountainside chalets about an hour from here - about half our sales are weekend getaway homes for people who reside in Loudoun, Fairfax or elsewhere in the DC Metro area.

http://www.lvc-homes.com/

I have connections to REALTORS all over, many of which specialize in vacation rentals or the sales of vacation homes. So send me an email and tell me your favorite vacation spot, and I will happily connect you to someone who can help you.  For Spring break this year, my family spent 10 days in sunny Orlando in a fabulous three bedroom, three bath, two level townhome for about $1000....minutes from Disney. That's a steal and if you ever want to take advantage of the same deal, all you have to do is ask.  The owner is a friend of mine, and a REALTOR/Broker in the Central Florida area.

Please remember... when you have a real estate need, ANY real estate need, I have real estate solutions!  You'd be surprised at the resources I have at my disposal....and I really do want to be your one stop real estate resource.  (Plus, I might want to stow away in your suitcase.)  :D 

Challenging Your Real Estate Assessment Gets Easier

Aha! An interesting little legal change going into effect July 1 (which will impact local real estate tax assessments beginning Jan 1 of next year):  The burden of proof in Assessment Appeals will be lower. 

After January 1st, localities will have specific burdens to provide you with evidence of their reason for reassessment of your VA properties.  Further, if you appeal an assessment you no longer have to provide "clear and convincing" evidence (80%+ convincing) of a lower valuation... you only need to provide a "preponderance" of evidence (51% convincing). 

If you've ever challenged your assessment you probably know it wasn't too terribly hard to get it changed.  But, now it's going to be even easier. 

Wow.  I have to wonder how this will impact our overall county budgets.  I guess we'll have to stay tuned.  In the meantime, if you'd like to keep tabs on the market in your neighborhood, check out this great web site.  You can order an automated monthly report showing you sales in YOUR neighborhood. 

www.SalesInMyNeighborhood.Info

Interested in staying up on news like this that affects us all?  Join my Facebook page:

www.Facebook.com/TheRealEstateWhisperer

New FHA Requirements?

I keep hearing mumbling within the real estate about these "new" requirements for FHA loans.  It may surprise you to know most of them aren't really new requirements at all; they're old.  It's just that now they are being enforced.

To understand what I am about to tell you, it's important that you recognize what an FHA loan is. On a basic level, it's a loan requiring very low down payments.  Since that makes it riskier for banks to do, the Federal Housing Administration insures the loan against default.  It works just like your homeowner or other type of insurance.  If the lending bank has a loss because of your default, they file a claim and according to the policy guidelines get reimbursed for all or part of the loss.

In the good old days, when the word foreclosure was rarely uttered, underwriters were waiving FHA requirements... allowing exceptions.  This happened often.  But, now that we're seeing short sales or foreclosures, both of which are a "default", on FHA loans, the banks are having to file claims so they can be reimbursed for losses on these loans.  It's happening enough that the FHA itself is suffering.

So the FHA, or others are their behalf, are conducting audits.  In the audits, they are scrutinizing the exceptions that underwriters have allowed, and they are not paying on many of the claims.  This results in banks telling underwriters they can not make exceptions on the requirements.... and so, old requirements are being enforced.

It's true what they say,  "There is nothing new under the sun." Time and time again I find this old adage holds true, especially in the real estate world. 

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If you find insights contained in this blog helpful, please consider joining the coordinating

Facebook page: www.Facebook.com/TheRealEstateWhisperer

If you would like personal advice regarding the purchase or sale of property in the Dulles area,

reach out to me directly:

Vicky Chrisner

Keller Williams Realty

703-669-3142

VChrisner@KW.com

http://www.vickychrisner.com/

Please note that I can not provide insights regarding properties or real estate transactions outside of Virginia,

except to refer you to a professional in your area (which I am happy to do). 

Buyer Beware (Part 2: Chinese Drywall)

Drywall made in China and put into homes here in America between 2003 and 2009 has caused serious issues.  It erodes wiring, copper pipes and can make you sick.  You'd want to know if you were buying a home that had chinese drywall wouldn't you? Of course you would.

There's a tiny bit of good news here.  A newly passed law (Senate Bill 942) addresses this exact issue.  It requires real estate agents involved in a transaction who have actual knowledge of defective Chinese drywall in a dwelling unit to disclose that information to the prospective buyer or tenant.

But, would a real estate agent know of the Chinese drywall if it was in the home?  Quite honestly, we might not.  The most likely way for us to know of it is for our sellers to tell us that it exists.  But, we don't standardly ask this, and many owners may not even know of its existence.  Even if they notice that wiring is corroding, they may not know why.

The burden of discovery remains heavily with the buyer. Check out this post (click here) to learn how to recognize Chinese drywall, and always, always have a professional home inspection.  It's not standard, so specifically request that your inspector note if he found any issues that could be caused by Chinese drywall and if he recommends further examination.

Buyer Beware! (Part 1:Snake Infested House)

This poor, poor couple! They bought their "dream home" only to find out that under their home is a snake den with thousands of snakes. In fact, the home had been on TV even before they'd purchased... and no one told them. I found the story on a social networking site where the question was asked:  "Did the seller have to disclose this to the buyers?"

So, do sellers have to disclose such things?  The answer varies state to state.  In Virginia, the answer may shock you. 

In short: NO.  Here, it's "Caveat Emptor" or "Buyer Beware".  You, as the purchaser are required to do your own due diligence and discover defects of the home on your own.  In this case, the home was bank owned, so it's very likely that the bank didn't even know of the issue.

Real estate agents in Virginia have a heavier burden of disclosure than sellers.  If any agent in the transaction has knowledge of a "material defect" about a property they are required to disclose it.  A material defect is any thing that might impact a buyers decision about purchasing or what to pay for it....for example thousands of snakes taking up residence under the home.  I am pretty sure that qualifies.

Without relying on someone knowing of the issue and disclosing it, how would the buyers discover this on their own?  I watched the video, and wondered how they didn't notice thousands of snakes sooner... unless perhaps it was colder weather and the snakes were in hibernation.  Assuming that was the case, there were still opportunities:

• The owners said the water smelled badly.  Didn't they turn on the water in the home before they purchased?  
• Did they have a government loan to purchase?  If so, many government appraisals require appraisers to inspect the crawl space - where it would have been (hopefully) noticed that there was an infestation.
• Did they have a home inspection?  A home inspector should have had many opportunities to flag issues - inspecting the crawl space, the smell of the water and likely several other issues.
• Did they have a well and septic inspection? Water tests?  These are standard in our area, and also provided opportunities for the buyers to learn of the issue.

And what about the real estate agent?  In the video they said their agent had noticed the water smell and put bleach into the water system to try to get rid of the smell.  That made me gasp. 

Homes which have well water and sit vacant for extended periods of time do develop bacteria in the well and the water system... and often bleach is used to "shock" the system and kill the bacteria.  Then the pipes all need to be thoroughly flushed (because drinking bleach can kill you).  That's all normal, but this is NOT the job of a real estate agent.  Ever.

I don't know if that agent was the listing agent or a buyers agent.  Buyers agents have a higher duty to disclose things to the buyers, so it is an added layer of protection.  That may or may not have helped in this case, but I like to think as an experienced buyers agent I would have seen "red flags" that those buyers just didn't see.  If their buyers agent had noticed that smell and attempted to cure it without advising the buyers, that would be a major, major issue.

So what are the take away lessons here:

• Buying a home is a MAJOR financial transaction and impacts more than just your finances.  This is about your life!
• In Virginia, remember "Buyer Beware!"  There is very little that a seller is required to disclose, and his agent will only disclose things they have actual knowledge of and that they believe are material defects.
• Hire good people to competently represent you and look out for your best interests.  This means a hire buyer's agent, a good one, and follow their advice.  Have the home, well and septic inspections and water tests which will be recommended by your agent, and use the professionals they recommend.  Experienced agents have  a group of experts they've used before and who they know they can rely on to conduct these tests and others as needed.  These things are not designed to complicate the home buying process or to make it more expensive.  It's to help you.
• Keep your eyes wide open during a transaction.  Do not become overly emotionally involved in any purchase.  It's better to walk away from a good deal than to be trapped in a bad one.

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?

 

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/

Nifty Tool - Average Appreciation (Depreciation) Rates

I stumbled upon this "nifty" tool on the FHA web site.  It has a calculator that uses average appreciation/depreciation of a market place (either by state or by Metropolitan Statistical Area) to guesstimate what your home would be worth now.  

You need to know when your house was purchased, what you paid, and where your home is located.

Since I own a property in Loudoun County, and we're "technically" part of the Washington DC Metropolitan Statistical area, I ran mine a couple of times.  

• First I indicated my property was in the Washington DC MSA... the value projected for today was way too high, but the value it says my home had when I last had it appraised (2005) was actually low compared to the appraisal.  
• Then I indicated my home was in Virginia.  Today's estimated value was still a little high, but it was relatively close.  When I look at its estimated value in 2005 when I had that appraisal done, it was very, very low comparatively.

OK, well... maybe it's not a great tool for projecting the value of your home - no automated valuation system is, especially when it's this broad.  But, I still found it to be pretty neat.  Check it out:

FHA's HOUSE PRICE CALCULATOR

If you'd like to take a look at an automated report that will provide you with accurate and specific data, order a market snapshot.  It will show you the homes in your neighborhood that are for sale or that have actually sold. From this you can estimate the value of your home better than FHA's House Price Calculator.  Get that report at:

www.SalesInMyNeighborhood.info

If you're thinking of selling, nothing compares with market data from a local real estate expert. Call meand let me help you make an educated estimation of the value of YOUR home.

Vicky Chrisner

Keller Williams

703-669-3142

VChrisner@KW.com

Service Animal or Companion Pet?

I often get questions from prospective tenants and landlords about pet restrictions.  One thing that has been clear for a number of years is that service animals (think 'seeing eye dog'), under the Americans with Disabilities Act ("ADA"), are not pets. 

This is not just a real estate issue, it impacts lots of businesses... restaurants, stores and hotels that normally don't allow pets, have had to permit service animals under the ADA for many years.  Landlords are no exception. 

Then a few years ago there was a new term: "Companion Animal" which got grouped together with service animals.  Basically, this is an animal that is not specially trained to perform a task but who benefits their owner by providing companionship.  These animals were "prescribed" for conditions like anxiety and depression; we often saw them prescribed for the elderly, or children who have suffered emotional trauma.  But, I will be honest, this was abused.  I've seen it.  People would get their doctors to write notes that said the animal was required so that they could by-pass the rules.  Then, landlords, hotels and property managers were forced to accept "companion animals" just like service animals. Not so any more, according to a new ruling by the Department of Justice.  Take a look at the fact sheet by clicking HERE.

Under this ruling, service animals must be trained to perform a function.  This may be the more common "seeing eye dog", but there other services animals can provide, like recognizing the onset of a seizure, helping to operate a wheelchair or assisting someone with other daily living activities.

Professional landlords and real estate agents who are unfamiliar with how the ADA impacts them and their business should read up.  To my fellow real estate agents, let me say this, I often see you breaking the law.  You are required to follow Fair Housing Laws.... and when you represent an owner, they are required to, too.  You, nor your client, can refuse to rent a home to a person with a disability because they have a bonafide service animal.  Let me say it again:  A service animal is not a pet.  You can prohibit pets.  You can not prohibit service animals.  Not sure if I am right? Below are a couple of web sites for you to check out, and I urge you to attend a Fair Housing training and seek legal counsel to educate yourself further.

Read the Fair Housing Laws on HUD's web site

See What Virginia's Dept of Occupational Regulation says about "Reasonable Accomodations" - specifically service animals