Seller Class: Tuesday, September 13th at the Shirlington Library

Are you or someone you know thinking of selling in the next 12 months?

Join us for a FREE Educational Seminar

Shirlington Branch Library, 4200 Campbell Ave, Arlington, VA 22206

Tuesday, September 13th

7pm-8:30pm

Topics to include:

  • Overview of the Local Current Housing Market
  • Home Listing Process and Expected Timeline
  • Financing Options for Buying Your New Home Before Selling
  • Fees and Closing Costs
  • Repairs or Updates that Bring the Most Return
  • Staging Tips
  • Seller Representation and Choosing an Agent
  • Additional time for your Questions

Register here to join.

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Buyer Resources: DC’s Home Purchase Assistance Program (HPAP)

DC gov logoIf you are a DC resident and fit certain income restrictions, you may qualify for an interest-free loan to purchase a home in the District. Home Purchase Assistance Program (HPAP) provides gap financing assistance of up to $50,000 and up to $4,000 toward closing costs. Payments are deferred for the first 5 years, lowering the monthly out-of-pocket amount for buyers while settling into their new home. This is a great program, but there are a fair number of restrictions to qualify.

Qualifying factors:

  • Low to moderate income (moderate is currently capped at $84,100 or $96,900 depending on household size)
  • No ownership interest in a residential real estate property for the previous 3 years
  • Good credit
  • First trust loan amount capped at $417,000- conforming loan maximum

We are happy to walk you through this or other options available to first time homebuyers in the District, Virginia, and Maryland.

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Buyer Resources: Arlington’s Moderate Income Purchase Assistance Program (MIPAP)

arlington logo

If you are looking in Arlington and haven’t yet saved up the money for a down payment or closing costs, Arlington County has a program that may help. Arlington’s MIPAP program offers a deferred 0% interest rate loan to first-time homebuyers to help cover a down payment or closing costs of up to 25% of the purchase price. You make no monthly payments on the subordinate loan from the County until you sell or refinance. The County does get a shared interest in any potential appreciation of the property down the road when you go to sell or refinance. At the sale, you split any appreciation, up to 25% (determined by an appraisal), proportionally with the county in addition to paying off the original loan. If the property hasn’t appreciated, you simply repay the original loan, interest free.

Requirements:

  • Moderate income, currently limited to $62,100 for 1 person or $69,920 for a household of 2
  • Property must be located in Arlington County
  • Buyer must contribute at least 1% as a down payment
  • Maximum purchase price is $362,790, maximum loan amount is $90,700.

If you are interested in learning more about this or other programs available to homebuyers, please do reach out. We are happy to help you understand your options and find the right place for you.

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Buyer Resources: Down Payment Assistance from DC Open Doors

DC Open Doors logo

Do you have the income and credit to buy a home, but haven’t saved the cash for a down payment yet? DC Open Doors may be the answer. The program provides fully-forgivable loans for minimum (3-5%) down payments and access to below-market interest rate loans. This equates to essentially 100% financing. There are a few requirements listed below, but this program has already helped over 500 buyers in the first 3 years of operating the program.

Program Qualification Highlights

  • Can have an income of up to $125,580
  • Good Credit >640
  • Not required to be a first time homebuyer

 

Best of all, the down payment loan is offered at 0% interest and is forgiven at 20% a year for 5 years.  As long as the buyer makes payments on time and continues to occupy the property as their primary residence, the down payment loan is completely forgiven after 5 years! If a buyer decides to sell before the 5 years are up, they just pay off the remainder of the 0% interest loan along with the underlying mortgage. This great program is designed to help DC residents afford to stay in the city when they are ready to buy. If you are interested in learning more about this or other resources available to buyers, please contact us. We are always happy to walk you through your options.

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The Wethman Group’s Real Estate News

April 2016

Greetings!
April Fool’s Day may have passed, but this market is also no joke!  We’ve said it before: List your home early in the year. Buyers have been out for months, and most sellers are still de-cluttering. We had five successful closings in March and we are looking forward to warmer weather and new listings in April and May. If you are thinking of listing your home this spring, give us a call. In most neighborhoods the inventory is still low, and well priced homes are going fast, but reviews are mixed on how the market is doing.  While we’ve seen bidding wars in some neighborhoods and at certain price points (particularly moderately priced single family homes), but rapidly growing inventory in other segments, like condos.  Our local MLS reported that inventory was up a whopping 20% in March 2016 vs March of last year–the highest level of March inventory since 2007.  Typically April inventory spikes even higher.  We’re still below 2.5 months of inventory, but that’s no consolation that sellers that haven’t priced well and are wondering why they have no offers.  Across the nation, there are rumblings of a slow down in the market–could it actually come our way this time??
We’re off to the races again this year! The Wethman Group is literally headed to the races at Gold Cup with clients and friends at our Client Appreciation EventSaturday, May 7th. If you are going to the races also please stop by Tent #124 (North) and enjoy a cocktail with our team–we’d love to see you.  We’ll also have some cornhole, friendly wagers and raffles to keep the action going between races.  Clients, if you haven’t received your invite, please contact us asap!
As we settle into spring it’s important we do some seasonal home maintenance.  Click here to view a checklist we created to help you get started. Should you need a referral to a vendor, please give us a call we have many preferred vendors we refer our clients to.
Have you or someone you know always thought about a career in real estate?  The first step is taking the class to be eligible to sit for the licensing exam.  Katie will be teaching a real estate pre-licensing class startingSaturday, April 30 and going for 4 weeks. You can sign up here.  (There are lots of other classes out there…contact us if you have questions or want additional information!)
As always, don’t hesitate to call us if we can help with your real estate needs.
The Wethman Group
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The Wethman Group’s Real Estate News

February 2016

Greetings!
Spring is in the air!  Well, maybe not the air just yet, but Spring is certainly here for real estate.  Surprising to many (but not us), we’re seeing multiple offers for many our sellers.  Buyers are always out earlier in the year than sellers, and the early bird seller catches the worm.  Our Falls Church seller received 8 offers and sold for $36,000 above list price, and nearly $80,000 above the Zillow Zestimate!
NOW is the time!  We’re meeting with both buyers and sellers daily to plan our timing for Spring purchases and sales.  If you need a refresher on the home buying process, sign up for our free home buying class THIS SUNDAY, February 28 at Arlington Central Library.  It’s not just for first timers anymore!   We’ll discuss buying and selling simultaneously, and how to manage the risks of the process. (February 28 doesn’t work for you?  We have another class March 21st.  You can register for either class at http://www.buyerclass.com
Speaking of teaching, have you always thought about a career in real estate?  The first step is taking the class to be eligible to sit for the licensing exam. Katie will be teaching a real estate pre-licensing class starting Saturday, April 30 and going for 4 weeks. You can sign up here.  (There are lots of other classes out there…contact us if you have questions or want additional information!)
Clients, don’t forget our Williams Sonoma private brunch and shopping (with discount!) is this SUNDAY morning!  It’s not too late to RSVP if you haven’t already–just email us!
Congratulations to our client Sarah Stein, who won this quarter’s drawing for free Caps tickets!  Clients you can be entered each quarter for writing us a review online (up to 3 entries per quarter) or posting a photo of yourself with one of our client appreciation program items on social media — contact us for details!
As always, don’t hesitate to call us if we can help with your real estate needs.
The Wethman Group
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Buyer FAQ: I want to a write a low ball offer. How low is “too low”?

This is a tough question without knowing more of the background, and I suspect the answer varies considerably depending on the geographic area you’re in.  In our area of metro DC, many agents would advise their buyers that more than 10% off of list price is considered ‘low ball’.  Does that make it offensive?  Not necessarily.  A good agent will investigate and help you determine what’s a fair market value to offer for a property you’re considering, and present it accordingly to the other side.  Some things to consider:

What are the comparable sales that are pointing you towards your offer price?   Are they within the past 90 days? Within a similar season (late winter but pre-spring run up in prices) as last year?   If there are clearly similar homes that your agent can walk the listing agent through, then it’s not offensive — it’s fact. But it needs to be presented in the right way.  There are tactics to this…for example, a phone call with a simple “I’m trying to find comps to justify this price and having a hard time…can you send me which comps you used to come up with this price?  The ones I’m finding are all quite a bit lower, and I don’t wish to offend your seller or waste anyone’s time.”  This is the sort of thing an experienced agent can guide you through!
Is the neighborhood trending up or down?  How many homes like this one are likely to come on the market in the next few months?  What is the seller’s situation and his estimated carrying costs (i.e., what did he pay for the property and can you ballpark how much his mortgage is?  Maybe it’s a very low cost and he’s not opposed to waiting if his carrying costs are low).  Has your agent called the listing agent to see what the situation is?  It could be that the agent knows it’s overpriced but the seller is just unreasonable.  Has the seller turned down offers previously that could help you narrow a range of what the seller is likely to accept?
Many agents will advise you not to write an offer if it’s too low because the seller is unlikely to accept it, or even counter offer.  However just because an amount is what the seller will accept doesn’t mean it’s the market value!  Sometimes it’s better to pass on a house if you think something similar will come up in the next few months that is in a lower price point for similar condition, or if the seller is just unreasonable. A look at historical sales in the neighborhood in the past 12 months will tell you that, combined with a live discussion between your buyer agent and the listing agent.  But before you decide to move on, discuss these questions with your agent to determine whether it’s worth the time to submit an offer, and how long to wait for a response before you move on to a reasonable seller. On the other hand, if the comps support a higher value, then in the absence of special circumstances, you might just be wasting valuable time, and more likely to offend a seller.
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The Wethman Group’s Real Estate News

 December 23, 2015

Happy holidays!

 

We’re having a great holiday season here at the Wethman Group, having just completed our Thanksgiving Pie Giveaway and Breakfast at the Movies with Santa events for our clients.  We had a great time and hope all of you did too!

We’re also pleased to announce our newest buyer agent, Sarah Cevallos! Proud to call herself a Northern Virginia Native, Sarah Cevallos has dedicated her life to helping others. She attended Villanova University to receive her Bachelor of Science in Nursing and is a Lieutenant in the US Navy. During her professional career she has worked as an obstetric nurse, nurse recruiter, manpower analyst, and most recently helping others find their dream homes in Northern Virginia. Sarah is active in charitable work and she and her husband Hector are homeowners in Arlington, VA.

In market news, things seem quiet, which is not unexpected for mid December.  Inventory is down, and buyers seem hesitant to pull the trigger on purchases.  The Fed’s rate hike last week, the first in nearly a decade, may further damper holiday cheer for potential home buyers and sellers.  Is it good or bad for the market?  In reality, Fed rates are only one of many factors that influence mortgage rates. In the short term, this hike was already anticipated, and so rates will change very little. In the medium term, we’ll likely see small increases in mortgage rates, and in the long term, we’ll undoubtedly see higher rates as the economy improves.

Whether this scenario is good or bad for you depends on whether you’re moving up, moving down, or buying for the first time.  Rising rates hurts buyers’ purchasing power and makes it even harder to find an affordable property, but the resulting smaller pool of buyers at higher price points may translate into more reasonable prices.  On the other hand, rising rates historically have made buyers realize the window of opportunity is closing, and rush to market before it gets worse.  In short, it’s complicated.  Call us to discuss your situation!

Early January is the perfect time to start prepping for the Spring market; buyers need to start getting paperwork in order, and sellers need to start de-cluttering (it takes longer than you think!) and schedule necessary repair work.  If you’re thinking of making a move in 2016, please reach out to us now so we can schedule a meeting in January!

We’ve been lucky with mild weather in the DC area, so this is a perfect time to do some winter maintenance.  Click here for our handy winter homeowner’s checklist.

As always, don’t hesitate to call us if we can help with your real estate needs.

Happy holidays and best wishes for a prosperous new year!

The Wethman Group
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