Loudoun Scene

Are You Excited or Upset About the Extended Home Buyer Tax Credit?

2009-11-07T22:49:21Z

Some consumers are excited about the extended and expanded home buyer (and now, existing home owner) federal tax credit. But others feel quite the opposite.

Why are some consumers upset? Check it out… “Why the Extended Home Buyer Tax Credit is a Slap in the Face”

How do you feel about it?

First Time Home Buyer Federal Tax Credit Extended…and Expanded

2009-11-06T21:27:43Z

The government has extended the first-time home buyer federal tax credit as well as expanded to include many existing home owners. First-time home buyers now have until April 30, 2010 to sign a contract and qualify for a tax credit up to $8,000. And starting November 7, many existing home owners may qualify for a tax credit of up to $6,500.

For more information, check out this flyer provided by the Virginia Association of REALTORS(R):

Information on extended and expanded first time home buyer federal tax credit -

You can also get more information on the extended first-time home buyer tax credit by clicking here.

10 Ways to Avoid Problems and Save Money This Winter

2009-11-04T16:40:26Z

The leaves and temperatures are falling, which means it’s time to get your home ready for winter. By taking a little time and energy to do these 10 simple things, you will avoid many potential headaches and save money this winter.

1) Get your head in the gutter - Once the leaves fall, remove them and other debris from your home’s gutters. You can do this be hand, by scraper or spatula or by hiring someone. And once you’ve removed the leaves and debris, give them a good rinse with a hose. This will allow that winter’s rain and melting snow to drain. Clogged drains can form ice dams, in which water backs up, freezes and causes water to seep into the house. As you’re hosing out your gutters, look for leaks and misaligned pipes. Also, make sure the downspouts are carrying water away from the house’s foundation, where it could cause flooding or other water damage.

2) Block leaks - One of the best ways to winterize your home is to simply block obvious leaks around your house, both inside and out, experts say. The average American home has leaks that amount to a nine-square-foot hole in the wall, according to EarthWorks Group.

First, find the leaks… On a windy day, walk around inside your home holding a lit incense stick to the most common drafty areas - recessed lighting, window and door frames, electrical outlets.

Then, buy door sweeps to close spaces under exterior doors, and caulk or apply tacky rope caulk to those drafty spots. Outlet gaskets can easily be installed in electrical outlets that share a home’s outer walls, where cold air often enters.

Outside, seal leaks with weather-resistant caulk. For brick areas, use masonry sealer, which will better stand up to freezing and thawing.

3) Size does matter - You may need to add some insulation to the existing insulation in your attic. Insulation costs a little money, but you get your money back quick. No matter where you live, most say that you need a minimum of 12 inches of insulation in your attic.

And you don’t have to worry so much about R-values. An easy way to check if you have enough insulation is to go into your attic and look for the ceiling joists. If you can see them, you don’t have enough insulation because ceiling joists are 10 or 11 inches at most.

Tip: If you’re layering insulation atop other insulation, don’t use the kind that has “kraft face” finish (i.e., a paper backing). It acts as a vapor barrier and can cause moisture problems in the insulation.

4) Let it burn - Turn your furnace on now to make sure it’s even working, before the really cold weather gets here. A strong, odd, short-lasting smell is natural when firing up the furnace in the autumn - simply open the windows to dissipate it. But if the smell lasts a long time, shut down the furnace and call a professional.

Throughout the winter you should change the furnace filters regularly (check them monthly). A dirty filter impedes air flow, reduces efficiency and could even cause a fire in an extreme case. Toss out the dirty fiberglass filters; reusable electrostatic or electronic filters can be washed.

Tip: It’s a good idea to have furnaces cleaned and tuned annually. Costs will often run about $100-$125.

5) Check your ducts - A home with central heating can lose up to 60 percent of its heated air before that air reaches the vents if ductwork is not well-connected and insulated, or if it must travel through unheated spaces. That’s a huge amount of wasted money, not to mention a chilly house.

Ducts aren’t always easy to see, but you can often find them exposed in the attic, the basement and crawlspaces. Repair places where pipes are pinched, which impedes flow of heated air to the house, and fix gaps with a metal-backed tape (duct tape actually doesn’t stand up to the job over time).

Ducts also should be vacuumed once every few years, to clean out the abundant dust, animal hair and other gunk that can gather in them and cause respiratory problems.

6) Windows - Most newer homes comes with double-pane thermal-insulated windows. If you have single-pane windows, you may want to take down the window screens and put up storm windows, which provide an extra layer of protection and warmth for the home. If you don’t have storm windows, and your windows are leaky or drafty, you may want to seriously consider updating to a more efficient window.

Yes, windows are pricey. So budget to replace them a few at a time, and in the meantime, buy a window insulator kit. Basically, the kit is plastic sheeting that’s affixed to a window’s interior with double-stick tape. A hair dryer is then used to shrink-wrap the sheeting onto the window. (It can be removed in the spring.) It’s not the prettiest thing in the world and is only temporary, but it’s inexpensive (about $4 a window) and it’s extremely effective.

7) Have a chimney? - Ideally, spring is the time to think about your chimney, because chimney sweeps are swamped in the fall/early winter. That said, don’t put off your chimney needs before using your fireplace. A common myth is that a chimney needs to be swept every year. That’s not true. But a chimney should at least be inspected before use each year. You’d be surprised at what you’ll find in your chimney - everything from tennis balls to birds.

Ask for a Level 1 inspection, in which the professional examines the readily accessible portions of the chimney (most certified chimney sweeps include a Level 1 service with a sweep).

Woodstoves are a different beast, however. They should be swept more than once a year. A general rule of thumb is that a cleaning should be performed for every ¼ inch of creosote, anywhere that it’s found. If it’s ash, then it’s primarily lye — the same stuff that was once used to make soap, and it’s very acidic. It can cause mortar and the metal damper to rot.

Tip: Buy a protective cap for your chimney, with a screen. It’s probably the single easiest protection because it keeps out foreign objects (birds, tennis balls) as well as rain that can mix with the ash and eat away at the fireplace’s walls. And forget about what it looks like - buy it for the durability.

Another tip: To keep out cold air, keep your chimney’s damper closed when the fireplace isn’t in use. And for the same reason, woodstove owners should have glass doors on their stoves, and keep them closed when the stove isn’t in use.

Go backwards - By reversing the direction of your fan(s) from the summer operation, the fan will push warm air downward and force it to recirculate, keeping you more comfortable. (Here’s how you know the fan is ready for winter: As you look up, the blades should be turning clockwise.)

9) Bleed and wrap pipes - A burst pipe caused by a winter freeze is a nightmare. Prevent it before the first freeze. Before freezing nights hit, make certain that the water to your hose bibs is shut off inside your house (via a turnoff valve), and that the lines are drained. (If you’ve ever had a burst pipe, you know just how much of a pain in the ___ it is and how expensive it is to fix)

Next, go looking for other pipes that aren’t insulated, or that pass through unheated spaces — pipes that run through crawlspaces, basements or garages. Wrap them with pre-molded foam rubber sleeves or fiberglass insulation, available at hardware stores. If you’re really worried about a pipe freezing, you can first wrap it with heating tape, which is basically an electrical cord that emits heat.

10) “Ring the alarm” - This is a great time to check the operation - and change the batteries - on your home’s smoke detectors. Detectors should be replaced every 10 years, fire officials say. Test them - older ones in particular - with a small bit of actual smoke, and not just by pressing the “test” button. Check to see that your fire extinguisher is still where it should be, and still works (you have a fire extinguisher in your house, right?!).

Also, invest in a carbon-monoxide detector - every home should have at least one.

By doing these 10 things, you’ll save yourself from many potential problems and save some money this winter. Do them now - the really cold temperatures will be here before you know it!

What I Learned at REBarCampDC and What It Means To You

2009-10-29T20:49:08Z

This past Tuesday, I attended REBarCampDC - an informal “un-conference” focused on how to incorporate the latest social media and technology tools into your real estate business model. The event brought together some of the best and brightest Realtors and technology folks from around the Mid-Atlantic area - even as far away as California.

REBarCampDC proved to be a great learning experience. No matter how long you’ve been doing something, there’s always more to learn. There are always others that know more or do things differently that can give you a new/fresh perspective on things if you care to listen/learn.

But, more importantly, it proved to be a great event for my clients. Eve though my clients were not there, they will directly benefit in the form of better service and a better experience thanks to the tools I learned about at REBarCampDC.

Some of my personal highlights of the event were…

Home Search - the event reiterated the need to have a “Home Search” function available to my blog readers and clients. The general consensus was that FrankyMLS was the most up to date, accurate and user-friendly real estate search site in the DC/VA/MD area. I’m happy to say that I’ve had that feature available to blog readers and home buyers here on my blog since day 1.
Statistics - Home buyers, sellers, investors and the media want to see statistics. One of the technology gurus present present at the event was Mike Simonsen of Altos Research. Altos provides in-depth and up-to-date data in the form of tables and charts. I had the chance to sit down with Mike one-on-one to get a test run and tutorial of Altos’ new flash charts, which are interactive and should be a big hit with consumers. You can find an example of these charts on my previous blog post talking about Loudoun County housing inventory being down (click here).
Community Topics - Though home buyers and sellers want to know about real estate in the area, they also want to know about the area itself. Though I do talk about local businesses and community events from time to time, I will be focusing much more on this moving forward. I am currently working on several posts about local businesses and events by reaching out to owners and event coordinators for interviews, information, etc. And I’m not talking about posting the facts (What, Where, When) - I’m talking about the “feel” of these businesses and events and my personal take on them as a consumer/attendee.
Video - is where it’s at. This is according to many of those at the event that have been dabbling around with video. I tend to agree with them because I’ve done a few video tours of builder’s model homes and they’ve been a big hit with home buyers/consumers. Therefore, I will be doing video tours of all the builders’ model homes in the area over the next few months so that you can see what they look like from the privacy and comfort of your own home.
Knowing what you don’t know - is more important than knowing what you do know. Though it’s not necessarily a social media or technology topic, it was talked about a lot at the event. Blogging about or talking to clients about areas or topics that you are not an expert in is a disservice to your clients (and the general public). If you run across a buyer or seller that wants to buy or sell in an area that you’re not completely familiar with, refer them to someone who does. The consumer will value your honesty and integrity and will remember that for years to come. And what goes around comes around…the consumer you referred out as well as the Realtor that you referred them to will most likely refer people back to you at some point down the road. Same thing goes for blogging - Realtors should focus on blogging/talking about topics and area they’re familiar with rather than going outside their area of expertise for the sake of making more money.

Exchanged great ideas…one-on-one time with the top guy at a real estate technology firm…learned a lot…clients will benefit from what I learned…hung out with friends…made new friends… You can’t ask for much more!

Special thanks to Ainsley McDougal of NVAR for helping make the event possible!

The Latest Loudoun County Housing Inventory Statistics

2009-10-29T20:43:48Z

The number of homes for sale in Loudoun County (and the entire DC metro area) is definitely either down or trending down. Let’s look at the following charts showing inventory levels of single family homes and town homes in the Sterling, Ashburn, Leesburg and South Riding/Chantilly areas:

(Note: These are new interactive flash charts - feel free to play around with them, move the slider around, etc., and let me know what you think)

Sterling

Ashburn

Leesburg

South Riding/Chantilly

Celebrating 3 Years!

2009-10-26T19:03:37Z

Wow, how time flies! Three years ago this month, I started blogging about Loudoun County real estate and the area in general. Back in 2006, there were very few Realtors blogging across the U.S. let alone Loudoun County (there were less than a few dozen across the entire U.S. at the time).

Today, that number is much higher yet, LoudounScene.com and LoudounForeclosures.com continue to be one of the best and most up to date sources of local information and resources for home buyers, sellers, investors, residents and the mass media.

Thank you to all of you who have commented on and been loyal readers of LoudounScene.com and LoudounForeclosures.com. Without you, there would be no Loudoun Scene or Loudoun Foreclosures and I would not be able to say, “Celebrating 3 years!”

The Cat That Betrayed His Girlfriend

2009-10-19T16:13:50Z

Make sure your sound is on. Yes, safe for work. (If you can’t see the YouTube video below, click here)

Putting Mortgage Rates Into Perspective

2009-10-16T15:24:44Z

I’ve heard some folks saying, “Uh oh…mortgage rates are up!” and “Mortgage rates went up a lot (1/4 point) since last week and I’m going to wait for them to go back down.” Yes, mortgage rates may have gone up since last week. Yes, they may (or may not) go back down (though, in my humble opinion, the only way from here is up).

But seriously…do you realize how good we have it right now when it comes to mortgage rates and points?!

Let’s put things into perspective…

Several of my home buyers with good credit recently got sub-5 percent mortgage rates with no points (a point is equal to 1 percent of the loan amount). Not too long ago, people could only dream about single digit rates, let alone sub-5 percent. Here’s the pudding…

- In July 2006, the average 30-year fixed-rate mortgage was at 6.76 percent with .5 points

- In July 2001, the rate was 7.13 with .9 points

- In July 1996, the rate was 8.25 with 1.8 points

- In July 1991, the rate was 9.58 with 2 points

- In January 1982, rates were 17.48 with 2.2 points

When is the last time mortgage rates were below 5 percent with less than 1 point? They haven’t been this low since Freddie Mac started tracking mortgage rates in 1971.

Let’s crunch the numbers on a $400K loan…

At a 5.0 percent mortgage rate with .7 points, your principal and interest would be $2,147.29 and your points would equal $2,800
At 8.25 percent with 1.8 points, your principal and interest would be $3,005.07 and your points would equal $7,200
At 17.48 percent with 2.2 points, your principal and interest would be $5,858.79 and your points would equal $8,800

Aren’t you glad you’re buying a property at today’s mortgage rates rather than those of the last two decades (especially with prices at pre-2000 levels in some areas)?!

And don’t forget the icing on the cake…the $8000 first-time home buyer federal tax credit.

So next time you say, “Rates just went up” remember that it could be worse…MUCH worse.

For a complete list of the average mortgage rate and points per month since 1971, click here.

Why You Can’t Always Trust Property Photos

2009-10-12T15:23:28Z

Here’s one reason why you can’t always trust the property photos that listing agents take…

see more Epic Fails

To see REAL photos of properties for sale, click here to check out my Buyer Agent reviews and photos over at FranklyMLS.com. If I haven’t reviewed and taken photos of a property you’re interested in, let me know and I’ll do so.

Home Seller Tips, Part Three - Pricing (and Reality)

2009-10-07T18:57:49Z

This is part three of my three part mini-series on how to sell your home for the most amount of money in today’s market. (If you missed them, click here for part one and click here for part two). This part deals with the number one most important issue when it comes to selling your house - pricing - as well as the issue of reality.

Pricing

In most cases, the reason why a home does not sell is pricing. If it’s not priced correctly, it will simply sit on the market collecting dust while other properties that are priced correctly sell all around it.

Folks, you can not fool today’s home buyer nor a good Buyer’s Agent.

In today’s day and age, there is an abundance of information available to every home buyer with an internet connection (which around here is pretty much everyone). Buyers can get information on recent sales, historical sales, tax records, assessed values, market trends, market statistics, photos, virtual tours, videos…the list goes on.

Buyers can and will quickly and easily figure out what the fair market value of your property is. If/when a buyer sees that you are priced above market value, they are typically very quick to pass on even seeing your property and will look at another similar property that is priced more attractively. Even if there are no properties similar to yours on the market, if a buyer thinks yours is overpriced, they will wait until one comes on the market that is priced well.

Even in the off chance they have no internet connection or don’t do the research themselves, any Buyer’s Agent worth their weight in salt will let them know whether a property is priced at, below or above market value based on the current market conditions. The Buyer’s Agent will share their opinion with their buyer clients (that’s part of what they’re getting paid to do) and once they do, the buyer will most likely pass on your property.

Tip: Once a buyer gets a list of properties that meet their general criteria, they first sort them by what they look like based on photos, virtual tour, etc. Then they sort again based on price. The remaining properties are then put on the “to see in person” list. If you are not priced correctly, you won’t make that list.

How do you price your property correctly?

Check the comps. Find out what similar properties have sold for within the last 90 days. This will show you exactly what buyers are willing to pay for similar properties. And also find out what similar properties that are currently under contract were last priced at before they went under contract. That will give you an idea of which asking prices are leading to offers from buyers.

Once you have the comps in front of you, add/deduct value based on what your property has versus what the other properties have/do not have. For example…if you have an in-ground basement while the other property has a walk-out basement, you need to deduct for that.

Another example…if the other property has an unfinished basement and yours is finished, that could be a difference of tens of thousands of additional market value for your property (depending on the square footage of the basement, quality of build, etc).

Check the current market conditions. Are prices appreciating, declining or steady? Is the home inventory increasing, decreasing or steady? Is buyer demand on the way up, way down or steady? Is the inventory mostly traditional resales, foreclosures or short-sales and what percentage does each type of property comprise? How many properties similar to yours have sold past month…3 months…6 months? And the list goes on…

Market conditions is very important when it comes to pricing correctly. This is where an experienced and knowledgeable Realtor who has his/her ear to the ground comes in. If they are on top of the market and what’s going on, they can spit out accurate statistics, advice and guidance at a split second even if you wake them up at 3am from a dead sleep.

Check how much competition you have and do some recon. In many ways, this is a battle. Your competition is made up of other sellers with similar properties that have their homes on the market as well. Home buyers that come across your property will most likely come across your competitors’ properties too. If a buyer feels that your competitors’ property is a better value than yours, they will probably place on offer on their house before they place one on yours.

This is what us Realtors call, “Selling your neighbor’s house” - a buyer comes across your house, then sees your neighbor’s house, yours makes theirs look like a better deal so they buy theirs. Congrats! You’ve just helped sell your neighbor’s house and lost a potential buyer for yours. This is the last thing you want to do - especially in a declining market.

Important: If prices are declining, you will probably get less for your home now that your neighbor has sold their house. And the less your neighbor accepted for their house, the less you’ll get for yours (see paragraph 3 above).

And do some recon. Have your listing agent take you through your competitor’s homes so you can see them with your own eyes and in person. This will help you see exactly how they compare to your property and you will know what buyers are comparing your home to and how, which helps tremendously come negotiating time.

Reality

You have to be realistic. If the comps and market conditions all point to a market value between$500K and $520K, don’t list it at $575K. Your property will just sit on the market until A) you lower your price or B) market values appreciate $55K to$75K (and we all have a pretty good idea of how long that could take).

You may say, “But I want $575K!” or “I think my home is worth that much regardless of what the comps/you say.” That’s great.

But it doesn’t matter.

Your home is worth what a ready, willing and able buyer will pay for it today. And the comps illustrate what a ready, willing and able buyer has been willing to spend on a property such as yours in the last 1 to 90 days. If you are not willing to sell your home for what it’s worth in today’s market, you may not want to list it for sale in the first place.

On a related note…If you figure out that what you owe is more than what you’ll make from the sale of your home based on your property’s current market value, you have three options,

Don’t sell it.
Do a short-sale (click here for more on that).
Foreclosure (I strongly urge you to avoid foreclosure at all costs for a variety of reasons).

So there it is folks…my three-part mini-series on how to get the most money for your home in today’s market.

If you have any questions or concerns about anything, click here to contact me at any time. And if you’re considering selling your home and/or are interviewing several Listing Agents in the area, I would love the opportunity to interview with you and see if we would work well together.