DC at it’s core is a snapshot of the pulse of the nation but not in the way others would think.  We show where the nation was, is, could and should be.  When the housing market fails around the nation, we keep buying and selling.   When HGTV comes on and says that the days of flipping are over, we have people come in on properties at 70K and in under 60 days sell them for 300K.  And when the nation is discussing how americans can’t pay there bills, H St NE is selling 6 dollar beers and creating lines around the block for living social deals.

The proof is in the results, and I direct you to a small portion of NE DC off of Benning Road as I further explain.  I live on Kramer St NE, right off of 16th and Benning NE, and in the last year and a half we have had over half a dozen turn overs of this exact nature.  Buying low, selling high, and with a climb so intense, we are once again seeing prices similar to 2006 and 2007.  A perfect example is the property across the street from my house which was bought for 72K and after a complete renovation, was sold within 2 days of listing for 389K.  You’re first impulse might be shock, so imagine how the home owners surrounding the property feel.  Excitement, confusion, joy… regret?  All viable emotions in this situation since now they are thinking about selling, buying again, or sending thank you letters to the new neighbors for essentially giving them their equity back!

So what does this mean for you the buyer or current homeowner?

Simply put it means that you are witnessing the rise of a new real estate bubble in which DC gets to retain it’s isolationist attitude about the market.  Prices are going up, while rates are locked in, meaning that as always the time to buy or sell is now, and that’s not just me wanting to make you all clients!  This however reaches past home values.  Store prices will go up as the demand increases while living social, group on,  scout mob and discount sites alike keep you coming back for more.  So take a look around and realize that we are the regulating pulse of a resilient, powerful, and enduring market that effects all facets of our lives from rents and mortgages to a free slice of pie courtesy an iphone app.  If you can realize that, then it goes without saying that you are the one in control of when and where you go next with your home buying and selling decision!

1.       Rates are at an all time low, which is a great incentive for both buyers and sellers and for the same reason. Low rates equal low monthly payments for the buyer and when the seller sells their home, they too benefit from low monthly payments on their new home. And with all good things that occur, we know that it will eventually have to come to an end. The trouble is, we do not know when the end is. All we can do is make the best of it and sell now while we still can get the most out of it.

2.       The homes available for sale have dropped in inventory by 22.3% from last year. Which also is saying, when supply is low, demand is high. And the ones holding the supply, which in this case is the seller, has an added advantage. Luckily for the sellers, this means when they put their home on the market, they have less to compete with. Also, for buyers to get the home of their dreams, they would have to be very competitive in their offer since they do not have many homes to choose from. Then resulting in multiple offers being placed on the seller’s home, causing a bidding competition among the buyers and allowing for the seller to receive more money on the sale of their home. Isn’t that nice?

3.       Sell now and find yourself only working with serious buyers, who are not just out looking because the weather is nice and it’s convenient for them. There are three types of buyers, generally. Type “A” who is ready to buy a home now. Type “B” who is not ready to buy now, but wants to look for one now and will be ready after 6 months or so. And type “C” who not only is “just looking” because they are neither ready nor willing but love home shopping and attending open houses. Type “A” buyers are motivated by reasons of their own, they have deadlines they need to meet and have done all the preparation necessary to be willing and able to buy now. Those are the buyers that will be looking no matter the season or weather. So sellers can rely on them to be out and about searching for their home, even in the dead of winter. And being that we are getting close to the season, despite our wonderful drastic weather changes, sellers can be certain that when they put their home on the market now, they will only be working with buyers who are ready, willing and very able. As oppose to waiting for the warmer months to sell and have to worry about more competition, less serious buyers and the works.

4.       Sell your home now before Fannie Mae releases all of their Short Sales and Foreclosures to avoid competing with discounted home values. Luckily for our market, we do not have as many short sales and foreclosures to compete with, when compared to the rest of the nation. Although we have a few, it’s best to sell your home now before Fannie Mae decides to release all the inventory in their portfolio. What that means for a seller is that the seller will be competing with discounted homes if they wait for that to happen. Rather, sell now so to avoid competing with homes that are being sold at a discounted price. Especially when some of those homes are in better condition than some regular sale homes.

5.       A major factor in purchasing a home is the financing. Now is a great time for buyers to obtain financing before the banks are required to tighten their lending position, even more so then what is expected to happen for 2012. With this added pressure, buyers are moving quickly to be in a home before the end of the year. So sellers, for you this means you will have plenty of buyers knocking on your door.

These are just a few reasons why now is the perfect time to sell your home, the best thing to do is consult with a trusted Realtor to find out the best marketing plan to get your home sold quickly.

If you’re a longtime resident of the District of Columbia (DC), then you’ve probably heard the term “The Gold Coast” to describe one of DC’s most affluent neighborhoods.  However, there’s another coast- “The Silver Coast”, which is best described as DC’s best kept Secret.   Hillcrest is located east of the Anacostia River, an affluent and well-kept neighborhood where Former Mayor, Marion Barry resided, and now the current Mayor, Vincent C. Gray, as well as the current Chairman of the Council of the District of Columbia, Kwame Brown.

As the sister neighborhood to the Palisades (another affluent area of the District), Hillcrest is nestled near the border of DC’s neighboring State of Maryland.

Hillcrest is a community of rolling hills, manicured lawns, red brick colonials and ramblers. The Hillcrest neighborhoods are full of civic-minded, people, who love their neighborhoods.  The drives and scenery of Hillcrest are a source of pleasure to motorists and walkers alike. The surroundings are becoming more attractive each year with the well kept lawns and gardens, along with the natural beauty of the oaks, maples and dogwoods which flourish in Washington.

Hillcrest is conveniently located only three miles from the Capitol, and has an altitude of approximately 300 feet above sea level, higher than most of Washington. The pure air assured by this altitude, in combination with numerous mature trees, parks, green spaces, and unusually large lots, make these neighborhoods a more comfortable environment than most other Washington area neighborhoods, especially during the hot summer months.

Home prices are significantly cheaper than they would be in northwest DC, a three-bedroom home in the area sells on average for around $350,000, and that a comparable home in Georgetown or Capitol Hill would probably cost well over half a million.

While most of the homes are detached single-family houses, the neighborhood’s east and west corners are anchored by large condo and co-op complexes. To the west is Naylor Gardens, a 42-acre co-op campus built during World War II to house defense workers; at the eastern end is Fairfax Village, a tight network of townhouses and condos. Both are attractive, and remarkably affordable; $100,000 is enough to purchase a one-bedroom unit in either one.

So remember “The Silver Coast”, East of the Anacostia River.  It is truly one of DC’s best kept Secrets!

Many clients ask us ” should I buy a condo or a home”. That’s a great question and not easy for us, your realtors,  to respond to. The reason is because it all depends on your life style and you know better than anyone what that looks like.  When deciding on what’s best for you, it is also important for you to consider the differences between the two.  I have lived in a condo and in a house, each for 5 years so I do have some experience.

So let’s explore a few differences between a condo and a home.

When buying a condo you will need to pay for the condo fee. Many clients ask me ” what does that involve and how much is it?” A condo fee can range from $150 monthly to over $1000 a month. Why is that so  different? Some are old buildings and require a lot of maintenance, others are newer and don’t need any updates and maintenance. Some include utilities like water, electric, gas, heating and cooling, but the combination varies greatly. Some include assessments. Some condos have many amenities like a gym, pool, and concierge, so every condominium is different and the older they are and the more amenities they have, usually the higher their condo fee is.  We can help you determine if buying in a specific building is a smart buy or not. Condo fees also include what is called Master Policy Insurance that covers all the common areas and the walls of your condo. You still need to obtain your hazard insurance to protect your belongings and the inside of the condo but the cost is really low compared to a home, about $250  a year.

A home doesn’t have condo fees yet you will need to pay for your utilities and your hazard insurance will be much higher. Around $1200 a year or so. Hazard insurance will cover the amount of rebuilding your home in case there is a fire. Homes have a higher cost of maintenance. For example, if the roof goes you will need to pay for it vs in a condo the condo reserves would pay for it.

Another factor that will help you determine what’s best for you is your budget and the location where you would like to live. For example do you want a $500,000 condo in Dupont or do you want a $500,000 home in Petworth? Becoming familiar with neighborhoods, space, and price will be very helpful and we will be happy to help you with this.

You also need to ask yourself what your life style is going to look like in the next 5 to 10 years. Will you be ok in a condo or will you need more space and need a home to accommodate your future space requirements?

These are some factors you can think about when trying to decide what to buy. We can certainly help you figure out what’s best for you and at the end you will need to decide what’s best for you and your life.

We’re all hearing how now is a great time to buy.  Interest rates are at historic lows, there are some great opportunities in the market and it’s cheaper to buy than rent right now in the DMV (DC, MD and VA for you newbies!)

Condos are a great entry point for new home buyers.   They typically don’t require as much maintenance  as a home and they’re a natural progression from renting an apartment.  And with a loan through the Federal Housing Administration (FHA) you can get in one for a low down payment of 3.5%.

But before you invest a lot of time, energy and money in pursuing a condo you should know that FHA has implemented some new financial rules that make it more difficult to get financing in one of these buildings.

FHA requires that a building be certified and in their system in order for you to get a loan on your purchase.  Many buildings are already certified however many are also due for recertification.  Have your realtor confirm their standing prior to you submitting an offer if you’re going FHA. 

If they’re not on the list many lenders can submit a certification package or if it is up for recertification the condo association is probably already working on that step.  It is at this point that you may run into problems.  FHA rules require that condo project budgets, insurance and financials be in order.  One aspect of this is causing problems.

If more than 15% of owners are 30-days behind on their condo fees, then lenders cannot fund on the project without waivers from FHA.  In a 4-unit building if only one person is behind then that 25%. 

Other issues that will be important to know: 

1.       What is the investor ratio?  Can’t be over 50%

2.       How are the condo reserves? Funds must be set aside each year to fund long term maintenance

3.       With new condo projects at least 30% have to be sold

These are problems that can be found out prior to you investing money on an appraisal, inspection or most importantly your time.  Do your research or better yet, ask your realtor to do it for you.

So you think you might like to buy a house.  Congratulations, now where do you start?  If you don’t know the answer to this, you’re not alone, trust me, and all the questions of location, size, style, price and quality only scratch the surface of it all.  That said, step one is, always has been, and always will be discovering the motivation behind what put the thought of moving into your head.  It seems silly to state what otherwise would sound obvious, but if you take a second to pause and ask yourself what matters to you and why you wanted to move from renting to owning, or trading up an existing house, you might just find the process smoothes out a bit and clarity quickly follows.

$$$… Know, Don’t Guess!

After finding your motivation, the next step is to find out what you’re capable of.  To some it may be a tough conversation about finances and savings, but either way it’s good to remember that it’s simply a way to gauge your buying power, and this knowledge comes without a price.  Lenders work everyday with people free of charge to get them pre-approved, a process that takes less than 24 hours and lets a buyer know what they will be paying monthly for their future purchase and how much the bottom line price of the house can be.  This means you won’t have to guess if your range is 2-3, 3-4, 5-6 or 1 million, and then you can shop with confidence!

Live There Before You Live There…

Let’s imagine for a second that you are considering moving to my beloved H St NE, a place of immense culinary variety, rich history, and the future site of luxury apartments, retail, and the much anticipated trolley!  I live there, work there, and play there, and the next part of the conversation between you and me would revolve around a 20 questions format in which I proceeded to list and elaborate on all my favorite spots to eat, catch out of the box burlesque shows, and even play mini golf without ever putting down my favorite cocktail.  Do you see where I’m going with this?  Get out there and enjoy yourself, get lost, ride the metro, and sample the variety of life the area you are thinking about living has to offer.  Find an open house, and when you walk out the door, practice turning left and right and seeing where you end up!  The point is that you can learn a lot simply by being on foot for a while and exploring, so give it a shot and you might just see me walking around too!

I’ll save the next step for when you’re done with these, slightly over stuffed from local cuisine, and ready to relax from all the exploring!  So have fun with it and I’ll see you around!

1.      Roofs.  I think roofs get a bad rap.  Many buyers are scared to death of a bad roof, but don’t think anything about replacing the HVAC system.  Roofs don’t cost as much as you think, and many times patching is part of maintenance and doesn’t mean you actually need a new roof.  Consult with a roofer you trust to determine if you really need a new roof, or a tube of calk.

2.      Discoloration (sometimes referred to improperly as mold).  Mold is a term to describe microbes that meet certain criteria – however, not all discoloration is mold.  True mold infestation is a serious problem, though 95% of what I see is discoloration that is solved with proper ventilation and drywall repair – and does not require men in space suits.

3.      Electrical issues.  No one want their house to burn down, though that is the quick jump-to fear when presented with an “electrical hazard” in the home.  The truth is, most electrical issues are “issues” as the code has improved and an electrician can take care of most things in an hour or two.  Not a big deal most of the time.

This morning I visited a possible listing in DC for a valuation assessment.  The homeowner told me on the phone about all the money and time he had spent on the property renovating it to top notch condition.

I knew I was in trouble when I approached the home and the front door was the wrong size.  Sure enough, upon entry, it seemed like “Harry Homeowner” (no offense to homeowners named Harry) renovated the home, from top to bottom, over the course of 5 years and created a disaster of poor workmanship.  The improper corner cuts, crooked tile, sagging floors, and bad design choices added up to a complete waste of money and time.

Please, do not test your workmanship on what is likely your most valuable asset – your home!  It is like playing mechanic on the weekends to the Bentley in the driveway.  I have no issue with home renovation projects, though please make sure you consult with experts and have someone look over your work from time to time so you don’t renovate your entire home only to be told by your neighborhood Realtor that the entire home basically needs to be redone.

Ouch.

About this time every year I get the question about timing the perfect window for a sale.  There is a distinct impression that spring is the best time to sell, fall is the 2nd best, summer is 3rd and winter a distant 4th.  But is that really true?  Let’s take a look at some statistics…Click here

Notice the “Sales Trend” box on the right.  Clearly there are more sales in the spring, and the fall is indeed the 2nd most active period – though the rise and fall between seasons is not that much at all.  Only about 20-30%.  Additionally, remember there is more competition in the market in the spring and fall too, so it may not be to your advantage to list then.

Bottom line, the perception of a dramatic drop off in sales between seasons is, in reality, not so severe.  Rather than trying to time the market, let’s discuss what’s happening in your life and make decisions based on timing your life instead.

The report this week was that foreclosure filings are once again on the rise.  What’s going on?

The reality is there is a backlog of delinquent mortgages that have been caught in a process that is overloaded and thus delayed.  I’ve said it again, and I’ll say it now – the key to a full recovery in the real estate market is to move people out of homes they cannot afford and into homes they can.  Though well intended, I believe the programs to keep people in their homes on temporary modification plans only push the resolution of our marketplace further down the road.

It is time we, as real estate professionals, have the difficult, but necessary conversations that allow people to move forward in their lives – with new, more affordable living arrangements.  It is time to move delinquent loans to the marketplace now by having those conversations, and allow people to move on.