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Does the Northern Virginia Market Favor Buyers?

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Because the weather has been miserable with near-record days of rain, we've seen fewer showings than we did earlier in the spring. Hang in there though, because we've still got plenty of buyers and low inventory.

Compared to last April, both sales and units sold were up 8.99% and 6.6%, respectively. The average for days on market dropped from 53 to 51.

This April compared to last April, the number of new listings was down. Additionally, closed sales this April shot up 24.7% from the month before. In Loudoun county, the number of units sold fell 1.42%, but the average for days on market improved to 49 days this year from 68 last year. Nationally, home prices are up 6%, and up 2.6% compared to last year.

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HOMEOWNERSHIP IS A GREAT INVESTMENT, BOTH FINANCIALLY AND EMOTIONALLY.

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Looking ahead to future projections, waiting until next year could cost you almost $200 more in your mortgage payment. This proves why homeownership is a great investment both financially and emotionally. Harvard University's Joint Center of Housing Studies recently released a study showing the top reasons why.

Financial Reasons:

• Financially, housing is typically the one leveraged investment available, because you're paying for housing, whether you own or rent.
• Housing is usually a form of forced saving.
• There are tax benefits to owning.
• Owning is a hedge against inflation.

Emotional Reasons: 

• Owning a home is a good way to build wealth that can be passed along to your family.
• You have an actual structure providing space and safety for your family.
• You have control over your space, like renovations or updates.
• Owning a home provides a place to raise children and give them a good education.

Although rates are still low, waiting to buy could be costly for your monthly mortgage payment. Call your lender today and get pre-qualified. If you have any questions about real estate in Northern Virginia, please don't hesitate to reach out to me!

What’s the Secret to Making Your Northern Virginia Home Stand out from the Crowd?

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We’ve all hear the term “curb appeal,” but does it really help sell your home?

Homes that look good from the street - that is, homes with good curb appeal - should help you get a higher price and take less time to sell. To improve your curb appeal, you don’t need to make a bunch of renovations to the exterior of your home. We’re talking about regular maintenance and some extra beautifying tasks that will go a long way.

The question becomes which projects will give you the best payoff? Here’s a list of what we think is worth your time:

1. Wash the front of your house. Before you scrape any paint or plant more azaleas, wash the dirt, mildew, and general grunge off the front of your house. This will help show your house in the best light. A power washer is an ideal way to do this, but a bucket of soapy water and a long-handle, soft bristle brush can get the job done as well. Don’t forget to take care of the sidewalks and driveway while you’re at it!  You should also wash your windows inside and out, wipe the cobwebs from the eaves, and wash out your downspouts. Don’t forget to wash off your garage as well.

2. Freshen the paint job. After power washing or scrubbing the front, the most commonly offered advice I share with clients is to give the exterior of the home a good paint job. Buyers will instantly notice it and appraisers will value it. Painting can be an expensive and time-consuming facelift, but it is usually well-worth the effort.
 
3. Address the roof. The condition of your roof is one of the first things buyers notice when they drive up and that appraisers assess. Missing, faded, or curled shingles add nothing to the look or value to the house. If your neighbors have maintained or replaced their roofs recently, yours will look especially shabby. If the roof is in obvious disrepair, it’s in your best interest to bite the bullet and invest in new shingles. 

  
4. Clean up the yard. A well-manicured lawn with fresh mulch and pruned shrubs boosts the curb appeal of any home. Replace your overgrown bushes with leafy plants and colorful annuals, surround bushes and trees with dark mulch to give a rich feel to the yard, put a crisp edge on garden beds, pull the weeds and invasive vines, and plant a few geraniums in the pots. You also need to green up your grass with lawn food and water, cover any bare spots with seeds and sod, and get rid of the crab grass and mow it regularly.
 
5. Add a splash of color. Even a little color attracts and pleases the eyes of would-be buyers. Plant a tulip border in the fall that will bloom in the spring, and dig a flower bed by the mailbox and plant some pansies. Consider placing a colored bench or Adirondack chair on the front porch as well. These colorful touches won’t add to the value of your house, but beautiful colors enhance the curb appeal and can help you sell your house faster.
 
6. Spruce up your mailbox. An upscale mailbox, architectural house numbers, or address plaques can make your house stand out. You can get a really nice mailbox for anywhere from $50-150, or you can just repaint your current one and add new fresh home numbers to it as well. Just make sure any changes you make comply with the HOA guidelines for your neighborhood.
 
7. Fence yourself in. A picket fence with a garden gate to frame the yard is an asset. Not only will it add visual punch to your property, but appraisers will give extra value to a fence in great condition. Expect to pay around $2,000-3,500 for a professionally installed gated picket fence. If you already have a fence, make sure it is clean and in great condition. Again, be sure to check with your local HOA before you make any purchases.
 
8. Maintenance is a must. Nothing looks worse from the curb and sets off subconscious alarms like hanging gutters, missing bricks, or peeling paint. Not only can these deferred maintenance items damage your home, but they could decrease the value of your home by as much as 10%.

Doing these things will make your house stand out from the competition, and will help you put your best foot forward when you list your home on the market.

Do Guaranteed Home Sale Programs Really Work in Northern Virginia?

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You’ve seen the signs: I’ll sell your home in 60 days, or I’ll buy it. I want to take a minute and share with you how those programs work, and what you should be aware of when considering this type of program.

Personally, I don’t have a guaranteed sale program. I can’t offer something in good conscience that, in my opinion, is a bait and switch marketing tactic. I have nothing against the Realtors that use these programs, and a lot of the most successful agents in this country have some form of this program in their business plan.

However, if you were to talk with several of these agents, very few end up having to buy the home from their client. Even fewer of the clients choose to list their home under these programs. That’s partly due to what’s in the fine print. There are several criteria that the seller must agree and comply with in order to make these programs work.

Some of these programs include an agreed upon list price, which is solely based on recently sold properties and not current market conditions. Other programs include a pre-agreed upon price reduction every 7 days, and that can be a significant amount. Still more programs include an upfront marketing fee of $1,500 to $2,500 and pay for staging and any other things the Realtor recommends. 

In addition, the pre-agreed upon price that the agent would pay for the home is usually well below market value and includes the same seller commissions and fees as a regular transaction. 

The reality is that these types of programs might work for a small percentage of people, but ultimately, guaranteed sale programs are a marketing tool to get the agent’s phone to ring, and it often works. I’ve talked to several who use these programs, and they all say that it’s a huge lead generation system for them.

Bottom line, if it seems too good to be true, it probably is. If you’re a motivated seller and you’re willing to do what your agent recommends, price your home aggressively based on the current market conditions, and combine that with a fantastic marketing plan, then your home should sell.

If you have any questions, please don’t hesitate to give me a call or send me an email. I look forward to hearing from you!

Northern Virginia Real Estate Market Update

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The Northern Virginia real estate market got off to a hot start in 2016. The blizzard might have set us back a couple days, but the market is still doing very well. My team and I put a house on the market just before the snow started and it went under contract in 5 days. Buyers are still out there even though inventory is low. Here’s the scoop on the Virginia real estate market:

Sales in December 2015 increased by about 1% with 2,845 closed transactions. Pending sales were up from 2014 by 9.5% to 2,230. New listings were also up 5%, but active listings are down by 0.8%, resulting in low inventory.

In December, there were only 2.32 months of inventory on the market, which is very low for the region. According to the National Association of Realtors, housing inventory levels across the country have seen a downward trend since 2011.

Despite low inventory, real estate was the best investment in 2015, getting property owners a 6.8% return. Overall, 88% of the population feels homeownership is a good financial decision. 

While real estate is a great investment, most people want to buy real estate to have a home of their own or a place to raise their family. However, buyers are concerned about low inventory, saving for down payments, and rising interest rates. First time buyers will be the most affected if interest rates rise.

If you are thinking of buying a home, keep in mind that it takes 49 days to close on a loan.

What does all of this mean? Our real estate market is strong. There is high demand for homes and low supply. If you’re waiting for May, June, or July to sell your home, you might want to reconsider. Get on the market now. Buyers are looking, and you’ll beat the competition.

As a buyer, get with a lender and get pre-qualified. You might want to wait for spring for inventory levels to rise. However, if interest rates do go up, that home you can afford today might be too expensive in a couple months. Don’t miss out because you weren’t sure what to do.

If you have any questions, give us a call or send us an email. We would be happy to help you!

What Does a Home Truly Cost in Northern Virginia?

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Today we are excited to talk about both the perceptions, and realities, of homeownership in Northern Virginia. The National Association of Realtors recently released a report saying Americans at every age and income level agree that homeownership is both a smart financial decision, and part of the American dream. We've talked about some obstacles to homeownership in the past, but as studies like this have shown, many obstacles are perceived. They aren't real. 
A recent study by Fannie Mae revealed that many consumers are either unsure or misinformed regarding the minimum requirements to obtain a mortgage. We are going to break down three such challenges today. 

1. Down payment perceptions
Many renters have mentioned that the lack of an adequate down payment is the thing that  most prevents them from buying. According to the Fannie Mae report mentioned above, 40% of all renters don't know what kind of down payment is required, while 15% think you need at least 20% down and 4% believe at least 10% down is required. The reality is, there are tons of programs out there from Fannie Mae, Freddie Mac, and FHA that offer 3% down programs. VA and USDA loans offer 0% down programs. The average down payment for a first-time buyer is 6%.

2. Credit score perceptions
Many renters have also mentioned that the lack of a good credit score is the thing preventing them from buying. According to the same Fannie Mae report, 54% of all renters don't know what credit score is required, and 5% think you need at least a score of 740. Actually, many mortgages are granted to purchasers with a score below 700. The average credit score for FHA loans is 687, and the average score on all loans is 722.

3. Debt-to-income ratio perceptions
Many renters say they carry too much debt, but 59% of renters surveyed by Fannie Mae don't even know what ratio is acceptable. Lenders like to see a back-end ratio that does not exceed 36% of the buyer's stable monthly income. 

All of this leads us to the bottom line: Don't let a lack of knowledge or misinformation keep you from buying this year. If you don't know where to start, or have any other questions about the market, we would be glad to help. Give us a call or send us an email. We look forward to being in touch!