Maryland and Virginia Real Estate and Homes Blog

LOUDOUN COUNTY PUBLIC SCHOOLS have become one of the most attractive features about living in this lovely area of Northern Virginia. 

For home buying families with school aged children, one of the first things I’m asked is for information about the public school system.   All Loudoun County Test Scores are on line for review.

On November 4, 2008, Loudoun County voters will be asked to approve a Bond Referendum to vote on the method of funding the purchase of three school sites when they go to the polls. 

1. Funds to build and equip a new Ashburn/Dulles Area Elementary School and a new Dulles Area High School. 
2. Amount $104,045,000.  The bond will be divided into two parts with $21,810 for the Elementary School and $82,236,000 for the High School. 

Any one who has toured real estate in the Eastern Leesburg / Ashburn area will recall the dynamic nature of development in “The Dulles Corridor” over the past 10 years.  The Ashburn area benefits from the expanded tax base and overall growth.  Families will continue to relocate to the area as long as our public schools maintain their excellence. 

                     New Road under construction to complete Battlefield Parkway in Leesburg.

Loudoun County Public Schools are one of the fastest growing in America for over 15 years.  In 1991, Loudoun County served 15,118 students.  Today they serve over 57,000 students.

HOW MUCH WILL THE SCHOOL CONSTRUCTION ADD TO YOUR TAX BILL?

• For homes with a tax assessed value of $350,000, the added tax will be about $43.69 per year.
• For homes with a tax assessed value of $500,000, the added tax will be about $62.42 per year.

Based on a 20 year repayment at an annual interest rate of 5%.

SUPPORTING of PUBLIC SCHOOLS PROTECTS THE MARKET VALUE OF LOCAL REAL ESTATE.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-Mail.

A NEW PARADIGM FOR BUYERS AGENTS. TAKING CONTROL OF YOUR BUSINESS (edit/delete)

IMPROVE YOUR LEVEL OF SERVICE AND SELL MORE REAL ESTATE BY TAKING CONTROL OF YOUR BUSINESS.  Use your time wisely and save it for serious home buyers.   

We often read about agents who show properties to buyers for months and sometimes years.  That’s very nice and may result in a sale.  OR NOT.  However, in the long run, I believe that buyer’s agents will improve their business and income if they take control of their business and establish ground rules for the agent and the buyer. 

GRANT ME THE FOLLOWING PREMISES:

• Real estate agents know the listing inventory far better than the average consumer.
• Real estate agents understand market value far better than the average consumer.
• Real estate agents are more familiar with mortgage financing than the average consumer.
• Real estate agents are more familiar with the Contract of Sale than the average consumer.
• Real estate agents have observed more home inspections than the average consumer.
• Real estate agents are more familiar with real estate settlements than the average consumer.

EXPERIENCE IS THE AUTHORITY.  Given the above, why do so many licensed real estate practitioners permit consumers to control the home buying process?

THE INTERNET EMPOWERED CONSUMER often believes that they are, through “their own research on the Internet”, experts in finding, buying, financing, inspecting homes listed for sale.  I dispute that premise.  A consumer who is a first time home buyer, second time home buyer, home seller, etc. cannot possibly have the knowledge and experience of a real estate agent or broker who has closed or managed 5-20-100 or 500 sales transactions for buyers or sellers.

ARE WE MANAGING OUR BUSINESS or ARE WE A WALKING KEYPAD? 

The walking keypad syndrome manifests itself when a licensed real estate practitioner permits a consumer to

• Select the homes to tour.
• Obtains loan approval without consulting with the agent.
• Contacts the agent an hour before they wish to see a house they found on the Internet.

Many consumers believe that, because of all the information and free advice found on the Internet, that they are competent to make real estate brokerage decisions without consulting an agent.  Free advice is not always good advice.

THE NEW PARADIGM FOR REAL ESTATE BUYERS AGENTS:

The Internet presents use with wonderful opportunities to offer our services to buyers who conduct their search for homes on the Internet.  However, don’t be fooled.  Most consumers use the Internet to FIND HOMES, NOT AGENTS.  We welcome buyer contacts from our blog or web page.  However, the Internet empowered consumer is not likely to have your best interest in mind.  Agents must learn to engage Internet leads or referrals with friendly helpful services.  However, we must maintain control. 

DON’T BE A TOUR GUIDE.  Make sure the consumer is qualified for the price range for homes about which they inquired.  We have a duty to the home sellers to make sure that buyers touring their home is qualified.  

DON’T PUT BUYERS AND AGENTS AT RISK OF INJURY.  Schedule home tours when there is sufficient time to avoid rushing.  Don’t let the buyer persuade you to look at “just one home” after dark or in peak rush hour for the area.  House numbers are hard to find and walking unfamiliar properties in the dark is dangerous. 

DON’T LET THE BUYER ARRANGE THE TOUR.  Arrange the tour route based on geography and not the ones that the buyer want to see first, etc.  I have spoken with buyers who want to prioritize the tour.  The agent has the tools to arrange efficient tours and not backtrack all around to get to homes.  The agent is the one who makes appointments and needs to schedule accordingly.

DON’T MEET STRANGERS AT A LISTING.  If possible, meet buyers at an office or convenient location and drive them to properties.  This gives the agent the opportunity to have a friendly conversation with the buyer.  Nothing bonds a buyer and an agent better than a friendly conversation.  Concurrently, you aren’t sending a consumer to a listed property without an agent.

DON’T BE A DOORMAT.  At peak traffic times, it is possible for a buyer to be delayed.  Based on the weather, time of showing, traffic, etc., have a reasonable wait time, 15-20 minuted pre-determined.  If the buyer has not arrived without calling, cancel the appointment and go about your business.  Waiting an hour for a buyer to show is not going to make them show. 

LEARN TO IDENTIFY SERIOUS BUYERS FROM LOOKERS.  Always ask a consumer if they are working with an agent.  Last minute calls from consumers who want to look at one home on short notice is a clue.  They are usually already working with an agent who can’t accommodate the buyer at the desired time.  Don’t be a stalking horse for other agents.  If you try to recruit the buyer for yourself, you’ll have nothing more than a disloyal buyer. 

AVOID LONG BUYER AGENCY AGREEMENTS.  Buyer representation agreement that are for 3-6-12 months are an invitation to the buyer to look, look, look for 3-6-12 months.  Short initial Agreements encourage the buyer to look now and make decisions.  The agreement can always be extended if the parties, buyer and agent, are working well together.  However, a short initial agreement gives the agent an opportunity to make sure that the buyer is serious, qualified, available, accessible.  Long agreements don’t make buyers loyal.  All that does is give the agent the contract on which to pursue litigation if the consumer buys with another agent or on their own. 

SCHEDULE TOURS EARLY AND OFTEN.  Let the buyer understand that, to help them find the best home for their money in their preferred location, you, their agent will be out previewing and researching homes for them to view.  If the buyer is not willing to schedule future tour dates, they may not be serious buyers.  If at the end of 2-4 weeks the agent doesn’t believe that there is a likelihood that the buyer is ready, there is not need to do any more previewing or research. 

NEXT!! 

WILL THE HOME MORTGAGE INTEREST DEDUCTION SURVIVE THE GOVERNMENT’S NEED FOR $$$$$$$$?

                                            * * * *  HARD CORE REAL ESTATE TALK  * * **

“powerful House Democrats are looking at eliminating most of the $80 billion in annual tax breaks for 401(k) investors. ”

The Wall Street Journal notes that “the prospect of these tax increases is now hanging over the economy like a pall, as investors and businesses wonder where and how heavily an Obama Administration and Congress would strike.”

U.S. News & World Reports details plans to eliminate retirement plans as we know them.

CAN THE HOME MORTGAGE INTEREST BE FAR BEHIND??

If Americans lose the benefits of their private and employer retirement funds to fuel the government’s ever increasing need for tax dollars, will this be THE LAST HOPE FOR WEALTH BUILDING OF THE AVERAGE AMERICAN?

If the government changes the retirement benefits of the American citizens to raise Billions in tax money, how long will it be before they target the home mortgage interest deduction???

RETIREMENT ON OUR PAID OFF MORTGAGE AND 401(k) RETIREMENT BENEFITS, A THING OF THE PAST?

                                     * * * *  HARD CORE REAL ESTATE TALK * * * *

IF THE LAWMAKERS AND REGULATORS IN GOVERNMENT AND ON THE HILL HAD A SENSE OF HOW OUR ECONOMY WORKS, THEY’D UNDERSTAND THAT:

“AS THE HOUSING INDUSTRY GOES, SO GOES THE ECONOMY OF THE UNITED STATES OF AMERICA”. 

When the fools in Congress, Fannie Mae, Freddie Mac and on Wall Street reduced housing legislation and regulation to a mechanism for enhancement of their personal piggy bank, they were guilty of no less than economic treason.  Our economic recovery and lasting individual financial health depends on the health and viability of the housing industry. 

WHERE IS YOUR MONEY?  It has been estimated by many financial experts that about 80% of the individual wealth of Americans is the equity in their real estate holdings, residential and investment properties. 

THE 201(K)?   The loss of personal residential real estate equity is only half of the picture.  The savings of many Americans is in their 401(k) savings and retirement accounts which have been reduced by about half due to the decline of what??. . . . . . .  the housing industry.

THE ECONOMY FROM THE BOTTOM UP.  Consider for just a moment the many Americans who have lost their source of income due to the collapse of the new home market:  Entire building segments including builders and the many skilled tradesmen employed in the construction of residential real estate.  Building trades including electricians, carpenters, plumbers, masons, roofers, painters, dry wall workers, landscapers, well drillers, mechanical systems installers, architects, draftsmen, material suppliers for wood, siding, roofing, windows, concrete, tile, carpet, flooring, lighting, plumbing, appliances, and so many, many more. 

Of course, when the new home construction industry declines, the millions of Americans who rely on that income for consumer spending for food, transportation, clothing and all of the basics for maintaining a consuming household.

1,000,000 REALTORS WORKING PART TIME.  The collapse of the housing and financial industry caused the incomes of hundreds of thousands of real estate sales and mortgage financing employees dramatic losses in average income.  Real estate agents, brokers and mortgage loan representatives are citizens too and we rely on real estate brokerage for our incomes.  We are also consumers and have mortgage payments, car payments, need for clothing, transportation and other consumer goods as with all Americans. 

IS THE FOX GUARDING THE HEN HOUSE?  We, the real estate and mortgage representatives don’t have unions or governmental advocates seeking to protect our incomes.  In fact, far to many of the entities designed to protect the consumer consider real estate agents, brokers, loan officers and others in the housing and mortgage industries to be enemies of the consumer.  That mideset defies logic, but it’s been demonstrated many times over.  Every state in the nation has a Real Estate Commission or Real Estate Board with a mission to “protect the consumer” ostensibly from the real estate agents and brokers.  Growing numbers of states are in the process of conducting or promulgating laws to protect the consumer from mortgage companies, mortgage brokers and loan officers. 

THE TRICKLE UP COLLAPSE.  The collapse of the housing industry was felt at the depths of the real estate and mortgage industry.  The vast majority of homes sold were done so with mortgage financing.  Without home sales, loan officers, underwriters, processors, appraisers, real estate attorneys, title officers, surveyors, inspectors and so many more industry segments have declined to a point where many have been forced to leave their chosen field of employment to seek jobs in unrelated fields.  Financial disruption has touched millions of Americans who relied on the housing industry for their income. 

THE TRICKLE DOWN FIX.  The government, in it’s wisdom, has determined that the cure for the financial disaster is to take equity stakes in vast segments of the financial industry, commercial banks, investment banks, insurance companies, mortgage regulators and more.  At the end of this experiment in government financial and social engineering, the government will own to a limited degree an equity position in banks, investment houses, insurance companies and mortgage regulators. 

While Messers Bernanke, Paulson and Cox ponder ways to rescue the commercial banks, investment banks, rating insurance companies, Fannie and Freddie; the housing industry, individual home owners and the millions of Americans employed in the housing industry are sinking ever deeper into the financial quagmire.  Yet, the very government institutions whose job it is to protect the American citizen, the SEC, the FEDERAL RESERVE, the TREASURY, the CONGRESSIONAL OVERSIGHT COMMITTEES and the OFFICE OF THE PRESIDENT, have determined that the cure is to invest $$$BILLIONS OF DOLLARS into the very entities that profited the most from the mortgage mess that many now realize that they created. 

WE DISCOVERED A NEW REGULATORY THEORY.   Rather than holding the entities responsible for the mortgage mess responsible and relying on the market to determine which entities will survive, the government has decided to let the victim, the American taxpayer pay, with about $1,000,000,000,000 or more $Dollars for an experiment in a new kind of financial management, The Trickle Down Fix.

Ramlings of Lenn Harley, Broker, Homefinders.com.

“It is the never ending debate in real estate.” 

Cindy Jones  offers a thoughtful post today proposing that there is some debate over the ultimate value of an experienced agent vs. a newer agent.   I was not aware that there was a debate.  Cindy is an experienced, thoughtful agent and I’m sure we can disagree without being disagreeable.  So, I’ll simply state that I disagree with the premise.  I believe that experience does matter and that it matters a great deal.  We are assisting helping consumers with often the largest financial transaction of their lifetimes.  Mistakes by agents can cost the consumer many Thousands of Dollars and cause irreparable personal and financial harm. 

LET’S GO BACK TO GO.  We all come out of real estate school on a rather level playing field.  We are almost a blank slate.  Of course, some skills are transferable from other businesses to real estate practice.  However, some skills are unique to real estate practice; market knowledge, contract management, inspection processes, closing procedures, mortgage financing to name a few valuable skills or that makes our job easier and enhances our representation of buyers or sellers. 

60 HOURS OF CLASSROOM INSTRUCTION?  The hours of classroom instruction needed to qualify to take the real estate examination for licensure is woefully inadequate to prepare a licensee to actually practice real estate brokerage or real estate sales.  In fact, most states require that newly licensed agents work “under the supervision” of a broker who has additional experience and has passed an additional examination for the pleasure of operating or managing a real estate brokerage.  Many states also require a specific number of classroom post licensing training.  Still, until the agent has sold a few properties, does it really contribute to their overall ability to work with buyers or sellers?   

ONE TRANSACTION AT A TIME.  Real estate brokerage is a very complicated business and the average newly licensed salesperson will gain knowledge and experience through training but the training they remember the best is through actual practice, one transaction at a time.  Until an agent has sufficient transaction experience, they will be learning their business with each buyer or seller client.  If experience were not so important, we wouldn’t have the mentoring systems so popular today.  Nor would we have the post licensing training. 

I DIDN’T KNOW THAT COULD HAPPEN.  I believe that most critical mistakes are made by agents who have simply never faced or experienced a particular scenario.  Once we have closed a large number of transactions, we then have the experience to manage contracts without mistakes, with good advice and will have fewer failed transactions.  I’ve employed and trained many agents over the years and it takes many sales before most agents even have the confidence, let alone the understanding and knowledge to manage transactions smoothly.  Some believe that trust is the basis for a consumer/agent relationship.  Of course, but so many of our buyer or seller clients are meeting us for the first time through our advertising.  It is far safer for a consumer to “trust” an experienced agent to manage their transaction well than to trust a new licensee to learn on the job.  New agents need transactions, but they should also strive to be as good as they can be benefit from the experience gained over the years through actual transactions.  New agents should also avoid attempting to represent clients outside their area of expertise or market area.  Experienced agents know this, usually from experience. 

IMO, nothing is better than experience.   As a broker with many years experience and hundreds of transactions closed and many hundreds more supervised, I can honestly say, “I learn something on each new transaction”.

GAITHERSBURG FORECLOSURES IN MONTGOMERY COUNTY, MD.  Bank owned Single Family Homes, all vacant and ready for you, priced from $229,900 to $774,900.  There are also about 14 town homes and about 6 condo foreclosures for sale in Gaithersburg. 

• The average price for Single Family foreclosed homes for sale in Gaithersburg in October is about $317,922. 
• The average price for ALL Single Family homes for sale in Gaithersburg in October is about $547,444. 

FORECLOSURES CAN SAVE YOU MONEY. 

THE BENEFITS OF BUYING A FORECLOSURE include buying a property priced at market or below and priced by the foreclosing bank to sell.  There is no individual home owner pricing the home based on what they wish to net or what they need to buy a new home.   While there are many homes on the market for sale in Montgomery County, many are not selling because they are priced much higher than smart buyers are willing to pay.  Prices for homes in Gaithersburg have been reduced significantly in the past 2-3 years.  However, when compared with bank forclosures, many properties are still overpriced for the market.  You can rely on Homefinders.com agents and brokers to provide you, our home buyers, with information about recent sales in the area so that you will have the pricing information needed to make good home buying decisions.            

FORECLOSED HOMES FOR SALE IN MONTGOMERY COUNTY, MD - Single Family Homes Detached.

For a more detailed view of these foreclosed bank owned homes for sale in Montgomery County, click the city name.  When you find homes you would like to tour with our experienced foreclosure agent, call Lenn Harley, Broker, Homefinders.com 800-711-7988.

QUESTION: WHAT IS A REAL ESTATE TAX? ANSWER: A FEE LEVIED BY GOVERNMENT AGAINST PROPERTY OWNERS.

                                              * * * * ATTENTION ALL PROPERTY OWNERS * * * *

• QUESTION:  What is a real estate tax?
• ANSWER:  Fee levied by government against property owners.

DO YOU KNOW WHAT YOUR REAL ESTATE ASSESSMENT IS???

DO YOU KNOW THAT YOU CAN ASK FOR A REASSESSMENT??

In November 2007, I wrote a post to my ActiveRain blog about property assessments.  The response was not overwhelming.   But, being the stubborn old coot that I am, I’m writing it again.

For real estate agents and brokers who market to past buyers, send them a letter with the name and address of the tax assessment office for their home.  This may be the best piece of marketing material you can send a former buyer client.  If they are successful in having their tax assessment reduced, they will save real money and remember that the advice came from their real estate agent. 

EXAMPLE:

ASK YOUR COUNTY GOVERNMENT FOR A REAL ESTATE ASSESSMENT.   

FACT:  In many geographical areas, real estate values have fallen significantly in the past 24 months.

FACT:  Some local governments do not reassess every year.  Some local governments reassess every 3 years or so.   If your tax assessment was over a year ago, it may be high.

FACT:  Local governments are losing money because most of their budget is funded through real estate taxes. 

FACT:  Local governments have no incentive to reassess properties in a declining real estate market.

FACT:  Citizens can be pro-active in getting property assessments lowered. 

FACT:  Many state and local governments must, by law, balance their budget. 

FACT:  Real estate taxes and assessments are determined by local governments.

FACT:  Citizens can exert pressure on local governments to trim spending to balance their budgets and not merely tax their property owners to pay for their spending.

Homeowners who purchased a home in the past three years may be able to obtain a market valuation from their Buyers Agent.  

Real estate agents may wish to contact former buyer clients and suggest that they ask for a reassessment of their property.  You can’t increase the value of their property but you may help them lower their monthly/annual tax payment.  Most home owners are paying their annual real estate taxes through an escrow account with their mortgage lender.  As the tax bills are sent to the mortgage company, the escrow will be adjusted downward and refunds and/or result in lower monthly payments.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-Mail.

GOOD NEWS! THE AMERICAN TAX PAYER SAVED $24,000,000,000 THIS A.M. (edit/delete)

There’s little mortgage money around for home buyers, but. . . . .

About 2 weeks ago, in his zeal to preserve every financial institution listed on the stock exchange(s) in the country, even the ones who plundered the U.S. home buyers, made untold $Billions at the expense of the American housing and financial industry, Secretary Paulson stepped in and offered a loan to AIG $85,000,000,000. 

AIG announced this morning that they will sell some of their assets and accept a loan from the U.S. tax payer of only $61,000,000,000, thus saving the taxpayers $24,000,000,000.

SO, DON’T YOU FEEL A LOT BETTER???

HOME SELLING TIPS FOR AGENTS WORKING WITH BUYERS WHO WANT TO LOOK AND LOOK AND LOOK!

HOW MANY HOMES SHOULD AN AGENT SHOW?  Of course it depends, but I’ve found over the years that with some experience, the best thing an agent can do to help buyers make a decision is help them focus. 

What would you say to a buyer who wants to see many homes before making a decision.  Seems to me that the first thing to do is determine their time frame.  If you’re in a market with a large inventory, an agent is well served, as is the buyer, by leading the way to help that buyer make a decision.  Just showing home after home doesn’t help. 

BTW.  My Buyer Broker agreement is for only 15 days.  After 15 days of working hard to find the right home, we may extend.  But, I mean to do the job.  I preview and select the best homes, show them and expect for the buyers to make a decision.  Once I find that a buyer isn’t ready, I let them know that the market is what the market is and perhaps. . . . .  Or, I offer to refer them to another agent who loves to show homes.  I get right to the point and separate the buyers from lookers.  I don’t have patience for lookers.  I respect that some folks need a lot of time, but I’m not the agent for them. 

ALSO, I usually spend about 2 times as much time previewing and researching properties to show than I spend actually touring homes with my buyers.  This preparation permits me to KNOW THE MARKET and the good points and bad points about the selected homes to show.   I also make sure to get the disclosures before showing.  Preparation saves time. 

If the question is:  “How long does it usually take to . . . .”. “It doesn’t take long”.   My answer would never be anything akin to “until you find the right house”.  That doesn’t help buyers make a decision. 

A better answer would be “It doesn’t take long.  I’m going to help you to really understand the market and individual homes we see so you can make a good decision”.   

MAKE SURE YOU UNDERSTAND WHAT THE BUYER IS SEEKING:

• What is the qualified price range?  Got it.
• What is the needed location?  Got it.
• What special features are important?  Got it.

Focus on the above, show your buyers the best 4-6 homes and then sit down over lunch or a cool drink and talk about the homes they saw.  To manage home tours, it’s always best for the agent to preview the best and select the best of the best to show.  Of course, if a buyer has a specific home they found on the Internet that they would like to see, you have to include it in the tour.  However, since the agent has the best information about homes for sale, it shouldn’t take long for the buyer to realize that the agent is in a better position to select properties to tour too.

After the first tour, if the buyer hasn’t selected a home on which to make an offer, revise criteria. 

Show 4-6 homes on next tour that meet newly revised criteria. 

Help the buyer select the best home or two and revisit.  This is important because, it’s on the second visit that the buyer will begin to “feel at home”.  If they like the home, they won’t want to wait to wait buy it.

Have another lunch or cool drink and review comps and discuss offering price, terms and conditions.  You’ve now moved beyond the looking and into the writing offer phase.

At this point, they should be ready.  If the buyers are significantly noncommittal, they are probably not ready to buy and need to understand that they may need to rethink buying at this time. 

If the buyers are excited about any one house, simply ask, “Would you like to make an offer?”.
If the buyers are excited about any one house, simply ask, “Would you like to make an offer?”.
If the buyers are excited about any one house, simply ask, “Would you like to make an offer?“. 

If they are, go to a comfortable place and write the offer, NOW.  None of this “think about it”, or “let’s get together tomorrow. . . . . ?  Of course, if they want to see the home again, fine.  Make sure you allow a good hour or so for them to spend in the property to “feel at home”.  Let them place their furniture, use your flashlight to look under the sink, behind the mechanicals, walk the yard around the house, look at the fireplace, look hard at the flooring, appliances, bathroom fixtures, etc.  At this point, you want your buyers to know the house.   HINT:  Keep a bag in your vehicle with a tape measure, flashlight, forms, pens, calculator, eyeglasses, etc. 

Knowing a house is an important psychological step for a buyer to feel comfortable about buying. 

NOT READY?  If the buyers are not ready after a tour or two of the best of the best, let the buyer(s) know that they’ve seen the best of homes in their price range and location of choice with the special features they need or want.  Just looking at more homes is simply going to show them . . .

• more of the same,
• more of the same,
• more of the same. 

As experienced agents we know that homes in a specific area in a specific price range don’t change that much from house to house.  We have already selected the best of the best. 

NOW IS THE TIME MAKE THE DECISION!

Or, the buyers need to know that they should go out of the market until there is significantly new inventory in which case, we may be looking at new prices, new comps, etc.  This usually takes about 6 months.  Watching from week to week is simply going to wear everyone out looking at more of the same.  One of the best Buyers Brokers I know, after showing the best of the best to buyers, uses a “time out” period of about 3 months for them to stop looking for a while.  It works.  She has more patience than I. 

Never, never try to talk a buyer into buying something with which they aren’t comfortable.  That’s called “selling homes” and it isn’t necessary.  We don’t have to sell homes.  All that does is cause buyers to have buyer’s remorse and possibly default.  If they aren’t ready to buy, find it out before writing an offer.  

Good transactions are closed when buyers are happy, content and confident about their new home. 

Happy home buyers will cooperate with the home buying process best if they understand the process. 

Happy home buyers will remember the agent that helped them feel comdortable about their decision. 

Heppy home buyers will smile at the closing table. 

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.

FIXER UPPER IN PRINCE WILLIAM COUNTY, Virginia. SUCCESS.

FIXER UPPERS CAN BE A GOOD BUY.  Homes in need of renovation, repairs or upgrades are often priced significantly below market.  A wonderful example is a home that we recently sold in Prince William County, VA.

IT’S A WONDERFUL HOME, BUT. . . Everyone agreed that the house was surely worth the list price $200,000, and probably more.  The previous owner had started upgrades including adding a family room, new kitchen and master bath, ran out of money and the house was foreclosed.  However, our buyer wanted the house so we proceeded with a VA financed offer with the seller paying closing.  The contract was accepted and we waited for the VA appraisal.

You can see where repairs were started and not completed.  Also some upgraded windows and doors were damaged and needed to be replaced.

Upgraded window will be easy to replace.                       The house has a wonderful whirlpool bath.

VA APPRAISALS CAN BE TRICKY.  This home is a foreclosure.  The home was priced at $200,000.  The VA appraisal came in for $222,500.  Yipee!!

However, while the VA appraisal came in at $222,500, the VA appraisal was conditioned on about $15,000-$20,000 in required repairs.  Since the contract was “as is” which is routine for bank owned properties, the bank would not make the repairs and things looked bleak for our buyer.  He really wanted the home, but was not in a position to do a conventional loan.

A SUMMARY OF THE VA APPRAISER’S CONDITION STATEMENT:

Improvements - Condition of the Property

AT THE TIME OF THE INSPECTION THE SUBJECT WAS IN AVERAGE CONDITION. THE SUBJECT HAD AN ADDITION THAT CONSISTED OF A FAMILY ROOM, WITH A MASTER BEDROOM AND BATH ABOVE. THESE WERE NOT COMPLETE, THEY WERE IN NEED OF DRYWALL FINISH AND PAINT,(SEE PHOTOS) THERE WERE EXPOSED WIRES FROM FIXTURES, THE SWITCH AND PLUG COVERS WERE MISSING, MASTER BATH HAD THE VANITY MISSING. THE SAFETY RAILS ON DOORS WERE MISSING. THERE WERE NO COUNTY PERMITS VISIBLE. IT IS A REQUIREMENT OF THIS REPORT THAT THESE ITEMS BE COMPLETED, AND THAT THEY BE INSPECTED BY THE APPROPRIATE PRINCE WILLIAM COUNTY AGENCY FOR STRUCTURAL STABILITY AND CODE VIOLATIONS. THE REPORT VALUE IS MADE AS COMPLETED.

“HEY,  CHANGE THE FINANCING TO FHA (203k)?”  It seemed to me that this was a perfect property for FHA 203(k)  financing. 

MORE APPRAISALS.  So, the financing was changed to FHA 203(k).  That meant two more appraisals.  The first FHA appraisal would be for the house in it’s present condition, which came in at $220,000.  The buyer and our agent met with a General Contractor and got the price, DOM, floor plan, cost breakdown, etc. to complete the construction.  The lender ordered the second appraisal. . . . . we waited. 

THE LAST APPRAISAL.  Good News!!  The appraisal for the house after construction is $260,000. 

THAT IS THE POWER OF THE HOME IMPROVEMENT PURCHASE AND RENOVATION LOAN. 

Happy Home Buyer *  Happy Buyer’s Agent *  Happy Lender *  Happy Seller * Happy Lenn

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.