Thoughts on the Washington, DC, and Northern Virginia Real Estate Market

Tips for Choosing a Realtor

Katie Wethman — Mon, 20 Feb 2012 15:31:32 +0000

The Washington Post had a great article in this weekend’s Real Estate section called “Buying a Home? Here are a few tips.” In addition to addressing financial items like checking your credit score and getting a pre-qual letter from a reputable lender (not just any lender…a reputable lender), the author had a section on selecting “one full-time, experienced Realtor with whom you get along.”

Read that again because every word is important: One. Full-Time. Experienced. Realtor. With whom you get along.

That sentence packed a lot of punch.

The author did a great job of explaining each criteria, but I want to add a few of my own suggestions because choosing the right Realtor can help mitigate all of the other risks in the process…that’s what makes it arguably the most important step in your process. While I could go on for days about choosing a realtor, I’ll limit my advice to 3 tips:

Experienced: You’ll have to define your own level of ‘experience’ required. Is it years in the business? Transactions completed? Transactions the team completed? I would argue that one of the best gauges is the number and quality of transactions completed in the past 12 months that are similar in price and location to where you think you will be looking/selling. I’m NOT saying to hire the ‘neighborhood expert’ that every agent seems to label themselves regardless of whether they actually live OR work there. And agents with extremely high numbers of transactions tend to have junior associates that they hand you off to, so be sure you’re looking at the experience of the agent who will actually be looking at homes with you and working on your contract.

Getting Along: I would take this a step further and say you have to trust them. If you don’t trust your agent, get another agent. Ask for a reference who has bought/sold within the past 6 months. Then ask that reference “Have you given this agent’s name to anyone else? If no, why not? If yes, can I speak to that person?”

Finally I’ll add another tip about ‘getting along.’ You also need to be confident in their ability to explain things to you quickly and simply. In short, they must be able to educate you about the process and the decision points. Buying a house can be scary. There are dozens of pages of legalese, and decisions often need to be made quickly. How organized is this person? Do they take the time to answer your questions? Do they return calls, texts, or emails promptly? What hours and days are they available to you? No one can be expected to work 24/7, but contract negotiations DO happen–often–outside of normal business hours and deadlines matter. It’s stressful enough to make big decisions on a deadline, you don’t need to make them in a vacuum.

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Top Eco-Friendly Features Buyers Want In A Home

wethmangroupadmin — Fri, 17 Feb 2012 12:00:36 +0000

Watch the video below to learn the top eco-friendly features buyers want in a home and what you can do to make sure you can afford to put them in your home .

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North Arlington (Orange Line) Condo Update: February 2012

wethmangroupadmin — Mon, 13 Feb 2012 15:59:24 +0000

Zip Codes 22201 and 22203 (includes Ballston, Virginia Square, Clarendon)

See market data for all of Arlington.

See more Buyer Resources.

See last month’s post on Orange Line Condo prices.

Ready to start your search? Sign up for a free first time home buyer class in Arlington (registration required).

Source: MRIS. All data deemed accurate but not guaranteed. Stats exclude retirement communities and co-ops.

	1 BR Units	2BR Units
ACTIVE LISTINGS as of February 13, 2012
Average List Price	$326,565	$484,467
Number of Active Listings	26	23
Average Property DOM(P) – Actives	73	82
SOLD LISTINGS for January 2012
Average Sold Price for Previous Month (does not include seller subsidies)	$295,300	$515,500
Number of Sold Listings in Previous Month	6	6
Average Property DOM(P) – Solds	89	62

North Arlington (Orange Line) Condo Update: January 2012 Zip Codes 22201 and 22203 (includes Ballston, Virginia Square, Clarendon)...
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Buyer’s Closing Costs

wethmangroupadmin — Tue, 31 Jan 2012 12:00:20 +0000

Many buyers are aware that there are fees related to the purchase of a new home—a rough guide is 2.5% to 3% of the transaction value—but what are these fees, and are there ways to minimize them?

First, a few clarifications. Both buyers and sellers have closing costs in a transaction. The sellers’ costs are typically much higher than the buyers’ fees because the sellers pay the commission for both real estate brokers. These fees are typically paid at closing—they come out of the sellers’ proceeds, and the buyers can either pay cash, or can negotiate to have their portion of the closing costs paid by the seller (read more here.)

For now, let’s focus on the buyers’ fees. Your lender should provide you with a Good-Faith Estimate (GFE) when you apply for a loan. This GFE is essentially an estimate of your “HUD-1” form, which you will receive at closing. Each lender has their own preferred format, but you should be able to compare apples-to-apples by looking at the section headers, or, even better, the line-item numbers. It’s important to note, though, that lenders only control certain sections, while others may be simply based on their own experience. When comparing lenders, it’s important to focus only on the line items that the lender actually controls.

The fees vary by jurisdiction, broker, and settlement attorney, but below is a good way to categorize them:

Pre-paids: These are generally required by the lender, and may include insurance, property taxes, and interest. Another common prepaid item is condo/HOA fees. These vary based on the day of the month that you close, since they are pro-rated between buyer and seller.
Points: A point represents 1% of the loan balance and are charged by lenders. This, along with the fees, can easily amount to thousands of dollars, so it’s important to discuss this with your agent and your lender.
Fees: These are fees charged by real estate brokers, settlement attorneys, and lenders, and are the toughest to judge for “reasonableness” without experience. These vary widely, particularly among lenders. Some real estate agents will pay their broker’s fee on your behalf—be sure to ask them. For lenders, whose fees can be substantial, it’s important to know early in the process what they’ll charge. These fees can generally be found on your Good-Faith Estimate in the 800 section, but look in the 1300 “Additional” section, too. Broker’s and attorney’s fees are scattered throughout the closing statement sections.
Title Insurance: This is paid by the buyer and, depending on the policy, can amount to thousands of dollars. It’s a one-time charge that covers you in the event of a problem with the chain of ownership. See my post on how to save some money with title insurance here. This fee is addressed in the 1100 section.
Government and Transfer Charges: These are fees that are paid to the local jurisdiction and can be quite substantial. For example, in the District of Columbia, the transfer taxes (paid by the seller) and recording taxes (paid by the buyer) are 1.1% each. Northern Virginia sellers pay $1 per $1000 in value for their transfer taxes.

This is just a high level summary of some of the most common items on a HUD-1, so be sure to ask your agent to walk you through the expenses and strategize with you on how to minimize your costs! Read more about how to spot “junk fees.”

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Choosing a Retirement Living (Assisted Living or Independent Living for Seniors)

Katie Wethman — Mon, 30 Jan 2012 16:28:50 +0000

Not long ago I was searching for a retirement community in the metro DC area for a family member. I was stunned at the amazing array of choices in community types, amenities, and costs. I hadn’t realized there there were several different financial models (e.g., renting, owning, or a ‘buy in’ fee). As I began to visit communities and research the options, I found that each one had their sales pitch, and they quickly all began to sound the same. I developed this interview guide to help me take notes and begin to distinguish the different types of communities and features, and wanted to share it with anyone out there who might also be searching for a retirement community.

Is the community for profit or not for profit?
Is there a buy in fee? Is it refundable? Does it go into a trust? If the company managing that ‘fund’ goes bankrupt or runs into financial difficulties, what happens to that balance? At what rate does it amortize if we move out?
Is this a fee-for-service community or a continuing care for the same price model? If fee for service does the buy in fee entitle one to a discounted rate at Assisted Living or nursing care levels?
Monthly fee – what is it currently and what are the projected annual increases (what have they been historically)?
What happens if someone’s financial resources run out? Are there foundations that step in? Is the institution Medicaid eligible?
What are the various assistance levels available and cost for each? Pay special attention to the cost jump for assisted living, leading to the next question…
Is there in-unit care that is available by the hour if the resident falls somewhere in between ‘independent’ and ‘assisted’? Is it an in house service or is there a preferred provider or do we find someone on our own? What are the fees for that?
What is the percentage of independent living vs assisted living vs nursing care? (You’ll find some communities even though they have all levels have really limited options in one or more levels.) What happens if there isn’t room in the level when we need it? Does assisted living require a move to a different building or is the care brought to the unit?
Is assisted living regulated by the state? Is there somewhere (online) I can go to review reports on inspections?
Is there onsite healthcare/doctors hours? Which types of physicians and how often? What insurance do you take?
Is there a shuttle bus and where does it go? What private transportation options exist?
What sorts of activities (they will usually give a calendar) are there for residents? What other amenities (salon, bank/ATM, convenience stores, gyms, theatres, etc) are on site? Keep in mind that at some point the resident will likely have to give up driving, so these features may become very important down the road.
What sorts of ‘orientation’ activities exist to make sure someone gets integrated into the community quickly?
What services are included in the service fee/rent? Specifically, how many meals per day? Which utilities are included? Housekeeping? Linen service?

The process of choosing a new home can be overwhelming in the beginning. I hope these questions are enough to get you started on the path to choosing a great home for you or your family member. If you have other suggestions or comments please post them in the comments below!

If you or a senior you know is looking to sell a home in the Washington, DC, area I’d be happy to help you. And if you reside outside the area, I’d be happy to help you identify a local real estate agent who can be sensitive to the needs or seniors during your transition.

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Spring 2012 Market Preview

wethmangroupadmin — Fri, 27 Jan 2012 13:00:31 +0000

So far, 2012 is off to a busy start! I’ve already had many calls from both buyers and sellers who are asking about the market, so I am anticipating a busier spring than usual. Rates continue to stay at record lows—many days below 4 percent.

The builders must be feeling more optimistic about the market too, with construction projects speeding along in our area: the Founders Square DARPA building in Ballston is now complete, with the residential tower next, Garfield Park in Clarendon is making good progress, and the new office buidling in Clarendon slated for the site of Potomac Crossfit, Eleventh St Lounge, and TA Sullivans is slated to begin in February.

So buyers, get ready for a busy spring, and sellers, NOW is the time to start decluttering and getting your home ready for the spring market. Contact us if you would like a consultation about how to prepare your home.

If you know someone looking to move, please contact us. And if you’re thinking of selling, we’ll be happy to provide you with a free market analysis of your home and a review of statistics in your local neighborhood.

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Thoughts on Open Houses

wethmangroupadmin — Thu, 26 Jan 2012 20:39:50 +0000

My clients know that I am a big fan of open houses—both for my buyer clients and also my listing clients. I hold my listings open at least once per month. I just don’t buy the line from agents that “Open houses don’t sell homes.” I’ve seen it happen, and I don’t want to deny my clients that opportunity.

I’m also a fan of visiting open houses even in cases where one may not be interested in that particular home. Why? Because if it’s in a neighborhood you’re exploring, it’s a great chance to get a data point for a property (and then a chance to monitor that property to see how quickly it does/doesn’t sell). For any buyer, after you see a dozen or so homes in a neighborhood, you have a very good idea of what the going price is for homes in various conditions in a subdivision. So when you finally find the home in that neighborhood that you ARE interested in, having seen as many homes as possible only gives you more comfort—or discomfort, as the case may be—about the price being asked. Sure you can look at the comps when you sit down to decide what to offer, but nothing compares to your own personal experience having seen a home in person. While I can certainly guide my clients as to what the reasonable range is for a neighborhood, or how one property compares to another that I had seen, at the end of the day, it’s the client’s money— and their own interpretation of value—that matters. And so the client has to be comfortable with the offer price, and there’s no match for your own two eyes when you’re comparing homes.

I feel so strongly about the value of open houses that I send my clients each week a list of homes that fit their criteria that they should consider visiting. Now there’s a tool to help visit those homes more efficiently—a route optimizer from VAR. Simply enter the addresses and then hit calculate to produce a set of directions to make the most of your Sunday afternoons.

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Washington, DC Housing Market Stats for December 2011

wethmangroupadmin — Tue, 24 Jan 2012 18:28:44 +0000

Welcome to our 300th post on this blog! Take a look at the video below to check out the latest numbers on the Washington, DC housing market. Enjoy!

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Buying a Home in 2012?

Katie Wethman — Mon, 16 Jan 2012 15:11:42 +0000

Is buying a home one of your 2012 goals? It can be a long process, but it doesn’t have to be complicated if you do a little prep work. Get started by attending a free, no obligation first time home buyer class at Arlington Central Library on February 29 at 7:00 pm.

Our first time home buyer classes are educational sessions designed to give an overview of current market conditions and the home buying process. We cover a recap of the market, current trends and market stats including days on market, average sales prices, and inventory levels. We’ll also discuss the home purchase process and common pitfalls, financing basics and a how to get started checklist.

Specific topics covered:

Arlington, Northern Virginia and DC market analysis (average sales prices, days on market, etc.)
Mortgage basics: rates, points, fees
Financing basics: FHA, Conventional, Conforming, and “Jumbo” loans
Calculating the tax benefits of homeownership
Short Sale, Foreclosure/REO/Bank Owned basics
Search tips
Fees and closing costs
Buyer agency and choosing an agent

Details:

Wednesday February 29th 7:00 – 8:15
Arlington Central Library
1015 N Quincy St 2nd floor meeting room
Ballston (Orange Line)

Though there is no cost to attend, you must contact us to register since seating is limited and we need to make sure that materials are available for you.

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North Arlington (Orange Line) Condo Update: January 2012

wethmangroupadmin — Mon, 16 Jan 2012 14:00:54 +0000

Zip Codes 22201 and 22203 (includes Ballston, Virginia Square, Clarendon)

See market data for all of Arlington.

See more Buyer Resources.

See last month’s post on Orange Line Condo prices.

Ready to start your search? Sign up for a free first time home buyer class in Arlington (registration required).

Source: MRIS. All data deemed accurate but not guaranteed. Stats exclude retirement communities and co-ops.

	1 BR Units	2BR Units
ACTIVE LISTINGS as of January 12, 2012
Average List Price	$343,806	$473,598
Number of Active Listings	27	23
Average Property DOM(P) – Actives	75	85
SOLD LISTINGS for December 2011
Average Sold Price for Previous Month (does not include seller subsidies)	$336,777	$501,056
Number of Sold Listings in Previous Month	15	9
Average Property DOM(P) – Solds	38	55

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