Archive for December, 2007

“Hi, I’m a reporter from The Washington Post” was the beginning of the voice mail. My heart rate rose as I thought about all the negative articles that seem to appear week after week in its Real Estate Section. The sky is not falling down and homes are selling. This is a normal market and I thought perhaps I’d have an opportunity to explain that.

I called the reporter, Nancy Trejos, back and we met for coffee recently on a cold windy afternoon. I feel I have an obligation to voice my observations and knew this would be a good opportunity to do so. I enjoyed our conversation and she did quote me.

Hopefully I’ll have more opportunities to voice the sound of reason in what seems like a chorus of pessimistic news.

Recently we’ve seen three instances of multiple contracts. Though the price escalation isn’t occurring with such fervor as before, it is still possible to get multiple bids with aggressive pricing.

One weekend this spring I was surprised to see that The Cavendish (a condo building at 1200 Arlington Ridge Road, Arlington, VA) has outlawed the use of open house signs.

Open houses are an important part of the home-sale process and with no signage it becomes impossible to direct potential buyers to the unit. This speaks to an interesting movement by condo associations to restrict—or outright prohibit—the use of for sale and open-house signs on the property grounds.

The argument is that open houses are a security risk to the building and that signs clutter the grounds. And supposedly these factors depress the values of the condos.

While I agree that large for sale signs constantly in and out of the front yard of condo buildings can be tacky, banning the use of open house signs does not help the owners of units in the building. These restrictions hinder the agents’ ability of the agent to do his or her job, which in turn can lead to lower sale prices—for all owners

As seen in the Washington Business Journal: “Area Home Prices Down More Than 4%.”

There is no doubt that the market has declined and that we have returned to a much more normal market.

But what’s with the talk of doom and gloom? Are prices falling monthly? The answer depends on where you are—and by where I don’t just mean DC, Maryland, or Virginia. Trends vary by neighborhood, block, or even building.

Blanket statistics—the kind that appear in the media—rarely speak to how the real estate market affects the individual. Don’t get caught up in market stats (good or bad), but focus your motivation to buy or sell.

Most buyers are looking for homes to live in. It is always a good time to buy a roof over your head. If you’re buying only for appreciation gain, you need to be careful in this market.

Sellers selling today are doing so because they need to—not to be misinterpreted to say they are desperate. (If you want a big foreclosure market, you’re not going to find it in the DC area.) It is always the right time to sell if you need to do so. If you just took a job in Phoenix and want to buy a house there, but can’t afford the down payment unless you sell your townhouse in Georgetown, now is the perfect time to sell.

Remember, 80 percent of the marketing happens when you set the price. It is time to start talking about how normal the market is and how buyers and sellers every day enter into agreements that satisfy everyone’s goals.

A good deal, and a good market, is only a state of mind.

January 24, 7 p.m.—Using real estate as an investment vehicle
March 27, 7 p.m.—Achieving homeownership
May 7, 7 p.m.—Wills, estate planning, and trusts with special guest Lawrence S. Jacobs Esq. of Jacobs and Associate