Real Estate Bargain Hunting Tips for Arlington, Virginia
Here’s my short list for your consideration if you want to snag a bargain of a house in Arlington, Virginia:
- nothing’s perfect, so try to optimize on the important stuff
- don’t be condescending to the seller — they understand it’s a buyers market, but they still would like a little respect
- make your move (using a good agent, because they really help more than you will ever know)
Happy house hunting!
View of DC from Fort Myer in Arlington, Virginia
Photo courtesy of Anadelmann on Flickr. Isn’t it gorgeous!!
Add comment December 2, 2008
To Give Thanks
on the way home
Happy to be home after a visit to my Dad in Pennsylvania. It really doesn’t matter when you stop for a moment and give thanks, does it? Turkey Day is a good reminder to do so. I give thanks for my family, for this wonderful place I call home, and for the fact that I work at something I love and gives me great satisfaction. This was the scene out the car door window as we were driving back last night. One of my “quirks” is that I often will stop for a moment and look at the sky, which always offers beautiful colors to admire and a humble reminder of my place in the universe.
Add comment November 30, 2008
FAQ: Lender Checklist
What You Need for a Mortgage
Looking through this list it may appear intimidating at first. But if you simply set these items aside as you receive them, or make a quick hunt through your files (you do have them, don’t you?), you can probably pull them together without too much stress:
- W-2 forms — or business tax return forms if you’re self-employed — for the last two or three years for every person signing the loan.
- Copies of at least one pay stub for each person signing the loan.
- Account numbers of all your credit cards and the amounts for any outstanding balances.
- Copies of two to four months of bank or credit union statements for both checking and savings
- accounts.
- Lender, loan number, and amount owed on other installment loans, such as student loans and
- car loans.
- Addresses where you’ve lived for the last five to seven years, with names of landlords if
- appropriate.
- Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account.
- Copies of your most recent 401(k) or other retirement account statement.
- Documentation to verify additional income, such as child support or a pension.
- Copies of personal tax forms for the last two to three years.
Money doesn’t come free anymore 
Photo of Wall Street courtesy of Flickr
Add comment November 25, 2008
Ripley’s Believe it or Not
Just received an email with this headline:
Washington DC Metro Area Is Most Promising Real Estate Market in the World
Apparently, Roger Arnold — a macro economist who does consulting for government agencies such as HUD as well as think tanks, hedge funds and sovereign nation funds — gave his analysis of current economic news and conditions and what their effect will be on the world, the nation and our region here in Washington DC.
Here are the main points and predictions he made that will directly affect us here in the Washington DC metro area:
- Washington has become the center of the world politically and now financially with the implosion of Wall Street, the size of the bailout and global recession.
- The country is going through a deflationary period in the private sectors that will be offset by an increase in government.
- The Washington DC area has a shortage of residential housing, office space and adequate transportation.
- Inside the beltway, prices have already started to move up. Office space in areas like Rosslyn and Crystal City are non-existent. The question for the areas outside the beltway is how far out will the government move to search for space and housing and what areas they will expand toward.
Kind of makes sense, in a warped way. I suppose this information was supposed to make me feel better (as an agent), but it makes me feel sad (as a person).
Add comment November 24, 2008
Obama mania
Okay, well, I’ve resisted so far, but it cannot go on like this! Many of my friends are thinking of renting out some space, or restlessly looking for a connection that will get them into an inaugural event, or hosting elaborate parties to celebrate the changing of the guard. Heaven knows we all need change, that’s for sure. For better or worse, we need to move on. Hopefully for better, can’t get much worse.
To continue with my post on rentals, the thing right now is very short term rentals. Very short. Like a week. Inauguration week.
Rumor has it that a wonderful historic house walking distance to the Barnes and Noble in Clarendon (and currently for sale) is already rented out for two weeks for much much money, and security preparations are already in place for the tenant. Others less fortunate are looking for ANYTHING they can get so that they can visit DC in January. Hotels are booked solid. Log cabins in West Virginia are in high demand.
My basement is starting to look like it has possibilities.
I’m not alone in these thoughts. Check out this great website, and go directly to the comments about renting out your home for the inauguration.
Let me know if you’re looking for a space to park your suitcase in January. Similarly, I can help if you are interested in leasing your own home out for a week or two for the inauguration. I just may be able to help you out.
Add comment November 24, 2008
New to town?
If you’re new to the Washington DC area — perhaps among the people coming with the new administration — this is a great time to rent. With houses lingering on the market, you have some choice about where to rent. You might even go ahead and call people who are trying to sell a vacant home but with no luck, and asking them if they’d be interested in renting. This could work especially well if you’re looking for a short-term rental, allowing the seller to pull their house off the market over the holidays and prepare for the Spring market.
But…. the disadvantage is you may not know exactly what the neighborhoods are like, maybe you’ve heard about the Orange Line and Clarendon, and probably you haven’t heard that rents here can be just as exorbitant as the sales prices.
Among real estate agents, the common “wisdom” is that working a rental is more difficult that helping someone buy. Why? Twofold: because the agent don’t really make any money from the deal, and because a rental client often requires more education about the territory and often has pets to include, which makes a securing a rental that much tougher.
Of course you should know about Craigslist, right? Perfect place to look for rentals. You don’t need an agent, and you can negotiate directly with your possible new landlord. Or you could visit this appropriately named site.
Don’t want to do that? Ok, go to any brokers website and do the search. Submit an inquiry and you will be answered by an agent. Pretty simple. That agent should work with you to find you a suitable rental. And, just like buying, you do NOT, never ever, pay a fee to the agent. And this agent should be able to give you some background on the lay of the land, get you into a few places to see, and help you negotiate the terms of the lease. Not bad service, for something you don’t pay.
Bring your checkbook along, because when you find the place you wish to rent, you’ll need to pay for three things:
- the application fee (usually $40)
- the first month’s rent
- a security deposit (usually equal to one month’s rent)
Like with most things, it will take some time and effort, but a good rental is one where people respect each other and are honest. Unfortunately, it’s hard to know ahead of time. But at least it’s a relatively short term commitment, with an optional renewal.
For more thoughts on whether to rent or buy, check this out.
Add comment November 22, 2008
5 Common First Time Home Buyer Mistakes
In working with people setting out to purchase their first home, it’s very predictable that these mistakes may, and often are, made. With an agent who truly understands the market and the process, and who you trust so that you will hear what they say, you can avoid the same mistakes. You don’t always have to make the mistake in order to learn from it. Instead, learn from the mistakes of others!
1. First Time Home Buyers don’t ask enough questions of their lender and end up missing out on the best deal. Do Not Be Afraid. Make your lender talk to you so that you can understand what they are saying. If you don’t understand what they are saying, that is the wrong lender for you. But please decide fairly early on if the lender is a good match for you, because switching lenders mid-stream can be a huge mistake.
2. They don’t act quickly enough to make a decision and someone else buys the house. You would probably be very surprised at how often this happens. A house can sit on the market for months, and then — swope — there are multiple offers. Even agents are in awe of this phenomenon. Chalk it up to the universal pattern of things occurring in clusters.
3. They don’t find the right agent who’s willing to help them through the homebuying process. Again, Be Not Afraid. Ask questions, and ask them again. If an agent doesn’t have the patience or ability to talk with you about even the smallest question, go look for someone else. It is so common that my first time home buyers only hear a portion of what I tell them initially, because there is just so much to take in and process. Let me say that again, ask questions and ask them again.
4. They don’t do enough to make their offer look appealing to a seller. EVen in this market, where buyers think they’re in charge of the show, they are really not. The seller on the other side of the deal also has a say in things. You may be trying to get them to swallow a bitter pill. Sometimes a little sugar makes the medicine go down much better. Your agent should be able to talk you through the various contingencies that may or may not be part of your offer, and you can decide how important each one is to you before you try to force them all down the seller’s throat.
5. They don’t think about resale before they buy. When you turn around to sell your house in the years to come, one question your agent will ask you is “Why did YOU buy this house?” because others will buy it for the same reasons. That said, there are many things you can do to improve your home during the time that you live in, in order to make it better while you live there AND more appealing to buyers upon resale. If you really want to paint your walls bright pink, be prepared to neutralize them before putting your house back on the market!
These items are all equally important, and work together. No doubt it’s a hectic few months when you’re purchasing a home, but when it’s all over and done with, you want to be confident you did it the right way and ended up with what you wanted. Just let me know when you’re ready to go shopping!
Add comment November 18, 2008
Take a look in the mirror
“Given low home prices, plentiful supply and affordable interest rates, it’s been an optimal time for entry-level buyers with a long-term view.”
So says Lawrence Yun, Chief Economist for the National Association of Realtors.
Some highlights from the study:
- The number of first-time buyers rose 5% from 2006.
- The median age of first-time buyers went down a year to 30 over 12 months.
- The median first-time buyer income was $60,600. (slightly more here!)
- The average price of the first-time buyer purchase was $165,000. (slightly more here!)
- First-time buyers stated they plan to stay in the home for 10 years, up from seven years in 2007.
- The median downpayment by first-time buyers was 4%, up from 2% in 2007.
- Zero down purchases fell from 45% in 2007 to 34% in the current survey.
- Of first-time buyers that made a down payment, 69% used savings, 26% received a gift (usually from parents), 7% received a loan from a relative or friend, and 16% tapped into a 401(k) fund, stocks or bonds.
- First-time buyers chose a fixed-rate mortgage 92% of the time.
Can you identify? With at least some of it?
Add comment November 11, 2008
The ABC’s of Pricing a Home for Sale
Over the past six months all pretense of knowing how to price a home for sale has just flown out the window. If an agent is being honest they’d tell you this. The real estate market has gone wacko, and with lots of extraneous input (financial bailout anyone?), who knows what’s happening anymore.
So how is this a problem for home buyers? Well, it makes it harder to spot a good deal. Comps can be all out of sync. Even something priced really well can go unrecognized because of the large inventory. Comparing price to assessment doesn’t shed much light.
The real answer if you see something that fits most of the bill (because amazingly enough, no house is perfect, and even buyers in the million dollar plus range cannot find the perfect house), don’t be afraid to make an offer. Justify your offer with stats, or not, and provide some nice language about how you love the house, know your own bottom line, and see where it goes.
PHOTOS COURTESY OF FLICKR
Add comment November 10, 2008
The Turks are Coming!
Show Television, one of the major networks in Turkey, was in DC this past week covering the election, and before getting on the plane they filmed another business episode about the U.S. real estate market. Their premise: U.S. real estate is a great investment for Turkish investors. They filmed two of my listings. The one pictured here is 2235 N. Upton St. in Arlington. It’s priced at $1,499,000. In Istanbul, it would be priced at over $10 million, they said.
So you see, a bargain is all a matter of perspective.
I’m holding 2235 N. Upton St. in Arlington open this coming Sunday. Come take a look at the house soon to be broadcast on Turkish television!
Add comment November 8, 2008
Stumble It!
