Archive for November, 2010

Every fall we distribute a seasonal checklist of the things you should do to prepare your home for the winter season.  In the spirit of limited time, I’m narrowing it down to three things that you really must do – or it will cost you a lot of money later. 

1) Turn off your outside hose bib(s) and drain the line (unless you have a frost free valve found in new construction).  This is extremely important.  During very cold temps the water in your outside lines will freeze which expands and breaks the pipe.  Once the weather warms up, the water will start to flow again and could very well flood your basement or at the very least your entire yard.

2) Service your heating system and clean your air filters.  A properly serviced heating system will operate more efficiently and reduce the likelihood that your heat will stop working at midnight during the coldest night of the season.  Replacing or cleaning your air filters not only helps the efficiency of the unit, it also reduces indoor air pollutants which are more prevalent during winter months.

3)  Clear your gutters and reseal/coat your roof. After the leaves have fallen, be sure your gutters are clear and any roof damage from summer storms has been fixed.  It is much easier to address these items now, before the snow falls and the temperatures move lower.  During last year’s winter storms, a lot of people had significant problems with gutters and roofs - some of which could have been prevented with proper maintenance.

If you’d like more information from our seasonal checklist, email me – brandon@brandongreen.com 

This week I had an opportunity to speak with heads of Bank of America, Citi, Wells Fargo and Fannie Mae about the process of selling distressed properties – particularly short sales.  During the two hour mastermind session in Austin two things were very clear.  1) there is a substantial amount of inventory that is “distressed” and will come to the market as a short sale soon and 2) the process is still so difficult, with so many interested parties to negotiate with, that a large percentage of short sales will roll into foreclosure before they are approved to sell short.

Common sense would dictate that the bank will lose less money by selling as a short sale, but since when was this process governed by common sense?  The reality is in most cases the servicer – the entity you see on your loan statement – would very much like to help facilitate a short sale, but the investor and the mortgage insurer block it because they would rather pay for the loss later.  Even if that means paying more later…

The group agreed this week that we have 2-4 more years of high levels of distressed inventory so expect more of the same in real estate likely until 2015.

I just listed my personal residence at 1300 Fairmont St NW for sale after an eight year restoration and I’ve had some people ask – why are you listing now so close to the holiday season?  The reason is I know something most people don’t…  Some of the most motivated buyers buy during the months of November and December!  Think about it – if you’re looking for real estate during the holidays – are you likely motivated and not just “looking”?  Probably.  I also know there is much less listing competition during the holiday and many relocation assignments happen in December so employees are looking for real estate now. 

Add to this the fact interest rates are incredibly low – which motivated buyers understand – and the fact our home shows particularly beautiful during the holidays – it made sense to us to list.

If you’re thinking about listing your home for sale, contact me and we’ll talk more about the timing that makes sense for you.  Brandon Green 202-318-1623 ext 7001.

The US government went on a spending spree last week expanding its balance sheet of longer-term securities in a move called QE2 – (which stands for quantitative easing version 2).  What will this do for the real estate market?  My sense is unfortunately nothing much.  It is likely QE2 may keep interests rates low, but so far low interest rates haven’t been enough to push throngs of buyers into the market place.  We need job security to do that.  I speak with buyers every day and unless they feel confident about their job, they aren’t buying.

Buyers – heads up.  You should be in the market NOW.  The market is somewhat sluggish at the moment which means don’t wait until spring when everyone else waits, buy now – there are great properties to be had at competitive prices.

I’m meeting with a lot of sellers right now who wonder if they should list now as we approach the holiday season, or wait until spring.  It’s a valid question and I think there are a few things to note that cause this year to be different from others:

1. Interest rates are at an all time low (yes still).   And what goes down, must come up eventually – I don’t know about you, but I’m not willing to gamble much longer on low interest rates.  Eventually they will go up, dramatically changing the buyer’s buying power.  It may make a lot of sense to list now and take advantage of the buyer’s increased buying power.  If you’re buying something more expensive when you sell your home, it most definitely makes sense to lock in a larger loan at such rock bottom rates!
2. Well priced homes are rare and in high demand.  It’s true, there is a flood of inventory on the market in most price ranges – however most of that inventory is overpriced and sitting.  If you have the ability to price right (many people don’t which is what is contributing to “hopeful” sellers priced way too high) then list now – buyers are actively looking for properly priced properties and there are very few to choose from.
3. I don’t see any indication that the market is going to be much different than it is now by spring.  Do you?  If you’re selling now you need to be motivated (please note, motivated does not mean desperate – that would be something entirely different) and so motivated sellers are encouraged to list now and procure a buyer as soon as possible so you can move on with your life.

A word of caution – if you’re not motivated – you may find this market very frustrating.  This market is driven by price, set yours carefully and have a strategy to follow.  If you would like to talk to me about listing your home, please call 202-318-1623 ext 7001.