Maryland and Virginia Real Estate and Homes Blog

NORTHERN VIRGINIA MARKET REPORT FOR SINGLE FAMILY HOMES LOOKING BACK TO 2004

REAL ESTATE IN NORTHER VIRGINIA IS THE BEST PRICE IN ABOUT 5 YEARS.

Alexandria City * Arlington City/County * Fairfax County * Fauquier County * King George County

Loudoun County * Prince William County * Spotsylvania County * Stafford County

Track SOLD prices from November 2004, 2007 and 2008. 

Examples of homes in Northern Virginia beginning January 1, 2009 in the average price ranges.

Alexandria Homes - $600,000      Arlington Homes - $650,000 Range   Fairfax Homes - $575,000 Range

Warrenton Homes - $275,000        King George Homes - $300,000       Lovettsville - $500,000 w/Acreage

    Dale City - $275,000                          Orange VA - $250,000                           Stafford VA - $270,000

HOMES FOR SALE IN NORTHERN VIRGINIAare at an all time high inventory. Home buyers have a wonderful opportunity to buy at the best price in five years. Homefinders.com is on top of the pricing trends and will give you the best and latest information about the market to help you get the very best price, terms and condition possible.

• Click Image to  SEARCH ACTIVE LISTINGS OF
• HOMES FOR SALE in Northern Virginia.

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

             **  FROM THE DESK OF THE CZAR OF COMMON SENSE IN GOVERNMENT  **

WHY DID NOT THE GOVERNMENT MANDATE MORTGAGE BALANCE REDUCTION FOR BANKS RECEIVING TARP MONEY???

IN THE SPIRIT IF A TRUE BELIEVER IN THE CONSPIRACY THEORY, it all makes sense now.

James Downing’s post this a.m. DARN IT - I got one of “THOSE” calls today… was enough to cause a few little brain synapsis in my head to begin stirring. . . .

One fact that James’ article reinforces is that the banks will do nothing to assist a home owner if their mortgage payments are still current.   So, faced with the inability to sell their home because the home owner owes more than the house will sell for, SHORT SALE is the only alternative to foreclosure. **

WHY DO BANKS REQUIRE THAT A HOME OWNER BE IN ARREARS BEFORE SHORT SALE APPROVALS?

“WE DON’T LOOK AT SHORT SALE PACKAGES UNTIL THE HOME OWNER IS BEHIND IN THEIR PAYMENTS.”  How many times have we hears that?  There is no benefit to a mortgage company to modify a home loan.  If a mortgage loan is modified to reduce the principal amount, the credit rating of the mortgagor will not be affected.  The mortgagor’s credit rating would not be affected by a reduction of the mortgage note.  The only change in the home owner’s credit report would be the balance owed to the mortgagee. 

I’ve been advocating for a write-down of the principal balance of home mortgage amounts to appraisal or assessment numbers, but it would take a significant amount of money from the government to cover that loss to the mortgage companies and, if we know anything, we know one thing:  The government is not going to do anything that would cause harm to the profitability of the financial institutions that originate or service or hold the millions of home loans.

That the government is dedicated to preserving the profitability of the banks is a given.  Why then are the financial institutions and the government determined to force a home owner in trouble to ruin their credit before any relief by the mortgage company will even be considered??  That is the question of the day.

MORTGAGE LOAN MODIFICATION WOULD NOT HARM THE CREDIT RATING OF THE CONSUMER.

However. . . .

ONE 30 -60 DAY LATE MORTGAGE PAYMENT WILL REDUCE A CONSUMER’S CREDIT SCORE FOR YEARS.

Could it be that the new “sub-prime”, “Alt-A” mortgages will be mortgage instruments invented to serve the millions of consumers with a short sale transaction on their credit report??

What is the benefit to the banks to force the home owner to ruin their credit rating?  Could it be the higher interest rate that can be charged to home buyers with a previous short sale on their credit report?

What could this new mortgage instrument with higher than market rates be named? 

The “SS” loan, for “Short Shrift”. 

The “SSS” loan, for “Shafted By Short Sale”

The “SS2″ loan, for  the “Short Score” loan

The “Stiff” loan, for “Stiffed by Short Sale Score” loan

No matter what happens or doesn’t happen, the consumer loses.  As the number of home owners who accrue 1, 2, 3, months late on their credit reports, they are prime suspects for future home loans with higher interest rates. 

Of course, they are also prime suspects for credit cards with even higher interest rates. 

** A change in the bankruptcy law/code that would permit bankruptcy judges to modify loan principals was a solution proposed.  However, it didn’t get through Congress. 

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

                                            ”HEY DAD, WHO’S LOOKING OUT FOR US??”

NORTHERN VIRGINIA BUYERS NEED TO KNOW THE FACTS WHEN BUYING REAL ESTATE.

Inspired by Scott Daniels’  post about a consumer who purchased a FSBO without using the services of a buyer’s agent. 

FACT:  Virginia is a “caveat emptor” state. 

“Let the buyer beware”, the ancient axiom that dictates that the consumer must protect themselves against being cheated. 

WHAT SHOULD SELLERS TELL BUYERS ABOUT THE PROPERTY? 
Virginia is a caveat emptor (buyer beware) state. This means it is up to the buyer to inspect the property carefully to determine if it is suitable for his needs. The seller is under no duty or obligation to point out defects - even hidden defects, more. . . . . .  Alliance Title and Escrow of Virginia.

FACT:  In Virginia, a seller/owner of a property has no legal requirement to protect the interests of a home buyer. 

FACT:  The most sensible way for a home buyer to protect themselves against being cheated is to use the services of an experienced real estate buyer’s agent. 

FACT:  A buyer’s agent can provide a home buyer with information needed to make sensible buying decisions by providing experienced contract management including but not limited to:

•   A guided tour of the property with special attention to property condition.
•   A detailed analysis of the price compared with recent closed sales of similar area properties.
•   Access to Board approved property condition disclosures for buyer to review before making offer.
•   Review of mortgage company Good Faith Estimate from buyers.
•   Notice to seller of any required HOA or Condominium documents and disclosures.
•    Board approved forms for Contract of Sale.
•   Inclusion of contingencies in the Contract of Sale to protect the buyer’s escrow money.
•   Detailed explanation by buyer’s agent of Contract of Sale including “Property Condition“. 
•   Broker escrow account for deposit of home buyers earnest money.
•   Present Contract of Sale to owner/seller with required disclosures. 
•   Recommendation of experienced home inspector and termite inspector. 
•   Preparation of Home Inspection Notice and buyers request for repairs.
•   Schedule meeting with title company/attorney for title examination / survey / closing meeting.
•   Conduct final pre-settlement walk-through of property for condition and verify repairs.   
•   Review of Form HUD-1 for accuracy. 

ONLY AN EXPERIENCED BUYER’S AGENT can provide these services for a home buyer.  This is especially important when a seller is represented by an attorney who will have the duty to represent the seller in all matters related to the showing, contract, escrow, settlement matters. 

DON’T EXPECT THE SELLER or THE SELLER’S ATTORNEY BE “FAIR”.  There is no legal requirement for a seller or a seller’s attorney to be FAIR.  The seller’s attorney’s duty is to advocate for the seller. 

BUYING A HOME from a “FOR SALE BY OWNER” seller is risky for any buyer. 

BUYING A HOME from a “FOR SALE BY OWNER” without using the services of an experienced Buyer’s Agent is dangerous to your financial health. 

CAVIET EMPTOR - Let the buyer beware!

ATTENTION:  HOME BUYERS: 

• ONLY A BUYER’S AGENT WILL ADVOCATE FOR YOU.
• ONLY A BUYERS AGENT WILL HAVE A DUTY TO PROTECT YOUR INTEREST ABOVE THEIR OWN. 

                                         Enjoy the Home Buying Experience.

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

FORECLOSED BANK OWNED HOMES IN MARYLAND ARE A GOOD BUY. 

We often hear agents say that they don’t sell foreclosures (bank owned properties).  We sell foreclosures and our home buyer clients are glad we do.  On each home tour our experienced Buyers’ Agentsinclude foreclosures, REO, bank owned, short sales are included in our home tours. 

Bank owned and short sale listings may not be the best selection for home owners who need quick occupancy.  However, when a buyer realizes that they will probably be saving many $Thousands of Dollars through the purchase of a foreclosed property, even renting for a short while can often make the foreclosure or short sale property a good selection. 

We have had buyers wait patiently as long as 7 months to close a short sale.  We have had buyers wait patiently for up to 4 months to close on a bank owned property.  Each one believed that it was worth the wait.  The key is to prepare the buyer with the necessity of being prepared to wait with housing available while the transaction is making it’s way through the process.  It also helps to show buyers the market information that lets them know that they will be rewarded for waiting. 

MARYLAND FORECLOSURES OFFER GOOD VALUE FOR REAL ESTATEin MARYLAND FOR OUR HOME BUYERS.  

The table below represents closed sales for October, November and December to date. 

Buyers Agents work hard to make sure our buyer get the very best home for their money in the location of their choice.  That’s our job.

Experienced Buyers Agents help home buyers with financing alternatives, home inspections, contract management, and a lot more. 

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

* * CLICK HERE * *
To Search Listings of Homes for Sale in Maryland and Virginia

WHERE DO YOU PLAN TO ADVERTISE YOUR SERVICES IN 2009 - Magazines, Newspapers, Web Site . . . . . . . Chapter 3.

WHERE TO SPEND YOUR ADVERTISING DOLLARS?  How do we advertise our services?  As stated in Chapter 2, “The last thing real estate agents and brokers need to hear in a recession, when every dollar is important, is “just give it a try”.   Advertising dollars should be invested, not gambled.” 

Chapter 1 and 2 of this series examined the potential value of:

DEAR PRESIDENT OBAMA - I WANT A JOB IN YOUR ADMINISTRATION - CZAR OF ECONOMIC COMMON SENSE

PROPOSAL FOR POSITION OF CZAR OF ECONOMIC COMMON SENSE

Dear Mr. President. 

   Re:  COMMON SENSE IN GOVERNMENT

POSITION:  Kindly accept this application for the newly created position of CZAR OF ECONOMIC COMMON SENSE.  Hopefully, you’ll consider making this a cabinet level position because many Americans understand that common sense is sadly mission from government today.

STATEMENT OF NEED:   The United States of America is in recession.  Strong and innovative management of the economy is essential for the viability of financial health of the citizens of this great country.  Management of the economy of the country has been reactive, wrongheaded and dangerous to the financial stability of the American family. 

STRATEGY:  I suggest that you make this position a “Recess Appointment” at the first opportunity.  Sadly, there is little hope that any Congress, present or future, would approve anyone for a post in your administration that required Common Sense because the concept of Common Sense is alien to a Congress that can be relied upon to seek personal gain over benefit to country. 

The legislative records of the present Congress has a track record that:

• Puts Party above constituent.
• Rewards campaign contributors with tax advantages.
• Manipulates legislative order to reward cronies.

We know from your pronouncements since winning the election to the highest office in the country, that you are a man of open mind and flexibility. 

PRIORITY:  The economic condition in the United States is dire.  The former administration was one of reaction and not one of leadership.  While the new appointments to the economic management posts in your administration have the credentials for strong, sensible leadership, sadly, they have no history of common sense in any office in which they have served.  It is necessary that the citizens of the United States have a voice for common sense in your cabinet. 

Management of the Economy of the United States is critical and deserves priority over other interests. Without sound economic management, the U.S. taxpayers will not be able to fund the interests of the environmentalists, organized labor, industrial manufacturing, health services, scientific research, foreign trade, and other well represented special interests. 

WHY A CZAR OF ECONOMIC COMMON SENSE?  A high percentage of American citizens, the families and individuals who pay taxes to fund the budget of the United States are in a diminishing financial condition.  Not only is the income of the average American providing less and less buying power, the primary financial asset of most Americans, the equity in their homes has vanished. 

THE PROBLEM WITH THE ECONOMY:  The American tax payer has lost their capital, their credit, their savings, their leverage, their voice.  The American home owner finanances the building industry, the home improvement industry, the real estate industry, the home mortgage industry, the home furnishings industry, local public schools and more.

THE FINANCIAL INDUSTRY PROFITED FROM ILLEGAL ACTS PERPETRATED AGAINST AMERICAN BORROWERS.  The Department of the Treasury and Board of Governors of the Federal Reserve reward the criminals on Wall Street with about $350,000,000,000 to replace their lost capital and encourage the banks and financial institutions to resume providing consumers with credit to finance the purchase of homes, automobiles and consumer goods. 

THE FINANCIAL HOUSES AND BANKS TOOK THE MONEY.  Yet, mortgages loan approval is more difficult than at any time in the past 30 years.  Automobile financing is at an all time low causing the callapse of the American Automobile Manufacturing companies and the chain of businesses that provide jobs for about 10% of the American tax payers. 

Giving money to the financial industry that designed the financial instruments that caused the decline of the housing industry made no COMMON SENSE.  It is clear that the President of the United States, the Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve and other decision makers do not understand the critical nature of the health of the housing industry and have made policy decisions that made so little common sense, that they defies logic. 

COMMON SENSE dictates that the first priority of the Government of the United States is the financial health of the American home owner.

I WANT THAT JOB.  Someone needs to look out for the folks.

Pending Sales in Fredericksburg, Dec. 2008.

FREDERICKSBURG VIRGINIA HOMES ARE SELLING.  Home buyers in Stafford look at Fredericksburg real estate for value.  The information below represents all of the PENDING sales of record for Fredericksburg Virginia as of December 21, 2008. 

Sometimes it takes a while for a home to sell in a Buyer’s Market in Northern Virginia.  Fredericksburg in Stafford County is a popular location for home buyer because of the amenities: 

• Price
• Commuter Rail
• Rural Atmosphere
• Popular Public School System
• Dynamic Economic Growth
• Employment Opportunities in County

Below are the pending sales UNDER CONTRACT with all contingencies removed and just waiting closing.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.  A part of the Homefinders.com real estate

HOMEBUYERS DO NOT ALWAYS HAVE ACCESS TO SOLD INFORMATION ABOUT AN AREA IN WHICH THEY ARE INTERESTED IN BUYING A HOME. 

Below are the SOLD stats for Fairfax County, Virginia for the month of December through the 21st of the month. 

List Price / Sold Price and more interesting to many is the “subsidy” paid by the bank for closing cost for the buyer.  This number is important because it helps pay the closing cost for the home buyer and saves the buyer cash.

Contact Lenn for a tour of foreclosed homes in Fairfax.  We can help.

Lenn Harley, Broker, Homefinders.com, 800-711-7988, http://www.homefinders.com

GRANT ME ONE PREMISE.

Square feet for square feet, foreclosures and short sales are the best buy for home buyers today.   The next buy is new construction from named builders who are well financed and can build to spec. 

These theories have been reinforced over the past 6 weekS through my experience previewing about 75 homes and showing about 30 of them to two sets of home buyers over the past 5 weeks.

What’s available in the price range $350,000 to $425,000? 

Home for sale in Charles County, MD - Priced at $340,000,

FORECLOSURE SALE in White Plains

8 year old Colonial with 4 bedrooms, 3 1/2 baths, living room, family room, dining room, 2 car garage, on 1/3 acre lot with full finished basement.  2400 square feet above grade.

Home for sale in Charles County, MD - Priced at $320,000,

SHORT SALE in Waldorf

8 year old Colonial with 3 bedrooms, 2 1/2 baths, living room, family room, dining room, 2 car garage, on 1/4 acre lot with full finished basement.  2100 square feet above grade.

Home for sale in Charles County, MD - Priced at $325,000,

REGULAR LISTINGS (not foreclosure or short sale)

25 year old Rambler, with 3 bedrooms, 2 full baths, living room, dining “L”, 1 car garage on 1/3 acre lot with finished basement.  1400 square feet above grade.

New Homes for sale in Charles County, MD - Priced at $390,000,

New Home Inventory in Charles County, MD

New homea for sale from established builders, Colonial with 4 bedrooms, 2 1/2 baths, living room, dining room, family room, on 1/4 acre lot with finished basement.  2600 square feet above grade.  1 year builder’s warrenty and 10 year structural warrency.

WHICH HOME WOULD MOST HOME BUYERS SELECT? 

Location:  Same area

Price:  Same price range

When viewing homes in a specific price range, this is what home owners are seeing in my market area of Maryland and Northern Virginia. 

FORECLOSURES and SHORT SALES ARE OUR MARKET with NEW CONSTRUCTION A CLOSE SECOND.  The condition of most short sales is comparable to the regular listings.  The condition of the foreclosures is likely to need cleaning, carpet cleaning, paint, appliances, etc.  New homes are wonderful and will increase in value faster than resales. 

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

THANKS! TO ALL OF THE HARD WORKING LISTING AGENTS OUT THERE WITH PROPERTIES FOR SALE.

WHAT WOULD A BUYER’S AGENT DO WITHOUT HOMES TO SHOW?

I JUST SPENT THE WEEKEND SHOWING HOMES TO A LOVELY BUYER FAMILY IN LOUDOUN COUNTY.  Business may be slow for all real estate agents and brokers, but, I can tell you from experience, that this market must be a lot harder on listing agents than buyers agents. 

BUYERS AGENTS AND BROKERS ARE NOT FACING THE CHALLENGES EXPERIENCED BY LISTING AGENTS AND BROKERS IN TODAY’S REAL ESTATE MARKET PLACE.

THERE!!!  I SAID IT.  Of course, I have always admired the skill and hard work of good listing agents.  Without them bringing good homes to market, what would we buyers agents sell??

TIMES HAVE CHANGED.  Who would have thought a few short years ago that listing agents, which includes about 95% of all licensees, brokers and agents, would be faced with the complexities of learning about foreclosures and short sales for the first time. 

• SHORT SALES as a routine market segment.
• FORECLOSURES as a larger percentage of listings than at any time in memory.
• SELLERS who believe that the real estate market hasn’t moved since early 2005.
• BUYERS who believe that any listing will be half the price next month.

LISTING AGENTS CAN’T JUST PUT THEIR HEAD IN THE SAND.  What does an experienced listing agent tell home owners who are faced with the prospect of not being able to compete with the Short Sale and Foreclosure listings in their neighborhood in price.  What do they tell sellers who wish to move up to a new home or larger home after 3-4 years in the town that they planned on owning for only a couple of years. 

LISTING AGENTS ARE OFTEN THE FIRST TO BEAR THE BAD NEWS.  How does even the most experienced listing agent tell a home owner to whom they sold their home 3-4 years ago that, even if a buyer would pay their desired price, the property would not appraise?

HOW DO AGENTS PRICE PROPERTIES IN TODAY’S MARKET?  What does a listing agent do when they research a property for a listing presentation that homes in the neighborhood are now selling for 3/2 of what the owners paid 3 years ago?

I KNOW YOU LOVE THAT LILAC DINING ROOM, BUT. . . . How does a listing agent tell sellers who drop in to an Open House that there are 6 homes in the neighborhood that are priced more attractively and in better condition, but this home is priced based on what the owners owe and the children selected the color of the paint on the walls.

IF I GIVE YOU THE LISTING, WHAT ARE YOU GOING TO DO FOR ME?  How much is the listing agent supposed to spend for advertising in the newspapers, magazines, etc. knowing full well that the most likely buyer will come from the IDX or MLS through a co-operating agent.  Of course, there are listing agents who excel in the real estate market place of today.  However, I suspect that even they would admit that it is a lot harder than in the “Halcyon Days” of years past when listing a property usually meant selling a property.

WHAT HAPPENS WHEN A HOME BUYER LOOKS AT ACTIVE LISTINGS ON THE INTERNET?

In my area for homes priced between $150,000 and $750,000, prospective home buyers are going to see:

• FORECLOSURE LISTINGS, which are going to be priced about 10% lower than regular listings.
• SHORT SALE LISTINGS, which are going to be priced about 10-25% lower than regular listings.
• REGULAR LISTINGS which are going to be priced about 20-35% higher than the foreclosures and short sales. 

FOR SIMILARLY LOCATED SIZE AND LOCATION, the foreclosures and short sales are the homes that the prospective home buyer asks to tour.   Of course, we could look at the comparable listings and include some “regular” listings in the tour, but it doesn’t take long for a buyer to see the value in the foreclosures and short sales.

BUT, WHAT ABOUT CONDITION?  When a property is priced 25% lower than 75% of the listings in a community, the buyers will consider anything other than structural defects, mold, wet basement, etc. to be nothing more than cosmetics that they can take care of themselves. 

IT’S ROUGH OUT THERE.  I SUSPECT THAT FEW LICENSEES TRULY UNDERSTAND HOW ROUGH IT IS THAN LISTING AGENTS IN A MARKET WHERE HOME PRICES ARE FALLING DAILY. 

ALL I can say to the listing agents in my market is:

THANKS!  GOOD JOB. 

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