Real Estate Information

Well, it looks like the rumours are true. We've been hearing for a while that Wegman's might be coming to our area. We've been told by some folks that are "in the know" that they will indeed be coming to the Hilltop property just north of the intersection of Telegraph and Buelah Rd. If you've never been in a Wegman's, I think you'll be impressed. Their prepared foods area is like no other grocery store around. One more reason not to spend too much time cooking!!! The time frame is a little uncertain, as is what will happen to the now 2-lane Telegraph section north of the area we're speaking of.

If you didn't catch this interview in the Washington Post, read it. It is one of the most plain-spoken articles I've seen in relaying what's going on in our local Northern Virginia real estate market. They don't mince words and say what all sellers need to hear.

http://www.washingtonpost.com/wp-dyn/content/article/2008/04/26/AR2008042600166.html

Let’s help the letter carriers “Stamp Out Hunger” on May 10^th

 

On Saturday, May 10^th, the day before Mothers’ Day, the letter carriers will stage their 16^th annual blitz to combat hunger. This is the largest one-day food collection in the nation and is such a worthy cause, with over 70 million pounds of non-perishable items donated last year.

 

Food bank donations tend to wane after the winter holidays, according to the National Association of Letter Carriers. This drop-off becomes especially tough during the summer, when school breakfast and lunch programs are suspended. There are millions of children for whom this is the only stable source of nutrition.

 

Cindy and I became aware of the food drive this year after receiving a call from Koinonia, one of the fine organizations in our area that helps the disadvantaged. They wanted to borrow our moving truck to transport donated items from the postal facilities to their storage center. When we found out about their efforts to restock community food banks, and the history of the nationwide food drive, we wanted to get involved beyond just the use of our truck. With the current economic squeeze and the price of gas, we know there are many local folks that need community support.

 

If you want to help out, here is a list of the boxed or canned items they can use most:

1.   Mac and cheese

2.   Pasta dinners

3.   Tuna or Hamburger Helper

4.   Cleaning supplies (because only food is covered by food stamps)

5.   Cereal

6.   Snacks for kids

7.   Peanut butter and jelly

All you have to do is leave your donations in a bag close to where you mail your letters and the letter carriers will do the rest.

 

Your help along with the support of the U.S. Postal Service, the AFL-CIO, the unions representing both city and rural carriers, the sponsorship of Campbell Soup Company and lots of others can make this campaign a big success. Thanks!

 

As many of you know, a short sale is where a person owes more on their home than it is worth on the open market. They are attempting to sell because they are having trouble making payments because of either a personal adversity (job loss, sickness,etc,) or an adjustable rate mortgage has reset at a higher interest rate, making their payment more than they can afford.

The idea is to get an offer for the home that the bank can live with. They agree to accept less than what's owed, in order to avoid having to go to bankruptcy, and then have the property in their inventory to sell at the same or a lower price.

The bank will want W2s, bank statements, tax returns, a hardship letter, a financial statement, and paystubs from the seller. The bank will also require a copy of the listing agreement, sales contract, and a preliminary HUD-1 settlement statement reflecting all the fees to the seller.

Generally, there are few if any contingencies in the accepted contracts. Certainly no "sale of home" contingencies. The bank will send an appraiser or BPO agent to do an appraisal to make sure they are getting fair value.

Some banks are getting better with response time. We have seen some take well over 2 months to give an answer to a purchase offer. This of course can be very frustrating to the buyer, but patience is required if one chooses to bid on short sales.

There is another factor that often people don't hear too much about. That is when there is a second trust on the property. When the first trust is not getting all the money that is owed to them, then the second trust surely doesn't get theirs. But, if the second doesn't get anything, then many times they just let the property go into bankruptcy. The first trust tries to negotiate with the second trust to get them some money so that they will agree to the short sale. So, as a buyer, it is important to know if there is a second trust on the home you are bidding on. The process is usually more lengthy if there is.

In the meantime, buyers shouldn't forget the great deals they can get on "regular" sales happening in the area. These homes also often times have one big thing going for them: if an owner of a short sale or foreclosure can't make the payments, then they surely can't afford to make big improvements to the property. A purchaser may get a home that needs work on a short sale for $500,000 but  overlook the same model one street over going for $530,000 but with $50,000 in upgrades/improvements. With the upgrades rolled into the mortgage, it would cost much less out of pocket money than for the new owner to make those improvements by coming up with the cash out of their own pockets.

At Tom & Cindy and Associates at Long & Foster, we are constantly trying to give our clients all the options, so that they can decide which is the best one for their family and situation. We're knowledgeable and available and never make you feel pressured. We don't like to be pressured and we treat our clients the way we would want to be treated. Give us a call or e-mail if you ever need anything.

We have sold 6 homes in the last 2 days. The absorption rate for townhouses in the Kingstowne area is 44% and the rate for condos is 58%. That is a huge jump from a couple of months ago. One of our open houses last Sunday received 18 visitors and the other had 14 different couples---both are sold. It was good to see a number of 1^st time buyers with no properties to sell. In our market area, if a home is in excellent condition and priced correctly it is selling fast. It’s still a great time for buyers, but they have to put good offers together for the quality properties. We have received multiple offers on several sales recently and currently have a back-up offer on one home that’s under contract.

 

Tom Pietsch

 

 

Activity has picked up the last 2 weeks. Usually people ask us when the spring market starts. We usually surprise them by saying that it begins about January 15th. This year it has started much later. But we are happy to say it HAS started. Prices are not rising, but activity is. We are receiving more visits to listings, and more offers are chugging through the fax machine. Here are some local stats---as you'll see, the homes in great condition and correctly priced are selling----the rest are sitting. Some pockets (or products) are doing better within the same area. Note, for example the difference between condos in 22315 and 22310, and detached homes. In this case, it's because in 22310 there are quite a few older homes that are not priced reflective of where the market is. Anyway, here are the stats:

In 22315 and 22310 zip codes (the Kingstowne area) there are 321 homes on the market. There are 95 under contract for an absorption rate (AR) of 30%. There are 28 single family detached under contract out of 150 for an AR of 19%. There are 123 townhomes available and 50 under contract. This makes an AR of 41%. For condos, the AR is higher still at 42% with 19 under contract and 45 available.

In Lorton, pricing is even more key to selling. There are 298 homes available in zip code 22079. Only 51 are under contract. This means the absorbtion rate is only 17%. For detached homes, there are 21 under contract and 135 available. The AR is 15%. Townhomes is a slightly brighter picture. There are 135 available. 29 are under contract for an AR of 21%. But condos are much lower. There are 26 available. Only 3 are showing under contract. This gives an AR of 12%. If you are priced wrong in this category, you will sit on the market for a long time.

Springfield shows closer to the Kingstowne area. There are 698 homes available in Springfield. 149 are under contract. That's an absorption rate of 21%. Detached homes make up 454 of the available listings. 88 are under contract for an AR of 19%. Again, Springfield has quite a few older homes that, if not priced right will sit for long periods, especially in neighborhoods plagued with forclosures and short sales. Townhomes are doing much better in general. There are 208 available and 57 under contract for an AR of 27%. There are 46 condos available and only 3 under contract., for an AR of 12%.

Again, the positive, and we are "glass half full" people is that a lot of homes are selling and the inventory is remaining pretty much the same, even at the time of year that it typically rises. But to be successful, condition and price remain crucial factors.

Last Saturday we did our quarterly Adopt a Highway trash pick-up in the Landsdowne and Amberleigh subdivisions of Alexandria, Virginia. It was a little cold in the morning, but as we began walking and bending over, we all warmed up. We've been doing this for over 2 years now, and we really like it. It's a good community service, and helps to make things look better. We give a lot of money to charities, but this one is actually getting out there and doing something. You wouldn't believe what people throw to the side of the street. When I grew up, there was a big push on tv and everywhere on not littering. I wish they would re-visit the subject, because the roads we walk and drive along would be a lot more appealing. Our team has an informal prize for the one that picks up the most trash. In the beginning, there was an earnest debate over whether it should be the heaviest bag, or the most volume (2 bags versus 1). We decided we'd all vote for the winner. We'd like to expand to other communities in the future. It seems like the people in the communities appreciate it and we are always looking for opportunities to give back.

 Tom & Cindy’s 2008 Spring Market Update

 

As we look forward to the spring market, Cindy and I wanted to give homeowners an update on market conditions and our insight as to where we are headed.

 

Current conditions still favor buyers, as they have since early 2006. With the benefit of hindsight, we know that the height of the market was April, May, and June of 2005. Since then, the inventory of available homes has gone up and buyers have been able to negotiate purchase prices, ask for closing cost assistance and often both. Sellers, if they’ve been unable or unwilling to price their homes correctly, have seen their properties sit for months.

 

Let’s look at absorption rates. I am writing this on February 3^rd. Right now, according to MRIS (the Multi-Regional Information System---our MLS) in the Kingstowne area there are 320 homes for sale. There are 76 under contract. That means that 24% of the current inventory is under contract. We have a little over a 4 month supply of homes available. In Lorton that absorption rate is 16%. In Springfield it is 18%.

 

 As many of you know we are also being affected by foreclosures and short sales in the marketplace.

 

What does this all mean? It’s not all gloom and doom like a lot of the media would have you think. It’s easy with the help of MRIS to see that homes are selling every day. Just in the month of December 249 homes sold in Alexandria, Lorton and Springfield. We have sold over 440 homes since the beginning of 2006. Buyers are doing their homework, seeing a lot of houses, and making their offer on the one that represents the best value in the area and price range they are looking in. If your home is the best value, it WILL sell, and sometimes quickly.

 

In real estate, you always hear the buzz-words location, location, location. Our long experience tells us that just about anywhere in Northern Virginia is a good location for someone. Price and condition is what really sells houses. If your walls are orange, paint them. If your pink carpet is stained, replace it. You’ll be glad you did. Upwards of 80% of buyers are beginning their search on the internet. If they see photos or virtual tours that make a property look unappealing, or like they’ll have to do too much work to make it livable, they just won’t come to see it.

 

Also, price your house correctly, or you risk chasing the market down. It’s sad when we see otherwise smart people that just can’t come to grips with the true market value of their property. One thing about real estate----you always find out the answer in the end. When a house sells, the final price is public knowledge.

 

It is a great time to be a buyer. If you’re selling and buying, this is a good time for you too, as long as you’re not “upside down” on your mortgage. Interest rates are at or near all time lows. Prices of homes are at the levels they were in the fall of 2003. There are great deals out there and often you can get sellers to pay your closing costs for you.

 

 Long-term, we’re very bullish on this area. With the Ft Belvoir BRAC, the renewal project at Springfield Mall, the just-approved 4 office towers at the Kingstowne Town Center, the Lorton Arts Center and so many other positive things going on, we believe that over time property valuations will begin to rise.

 

As the top real estate team in the Alexandria/Springfield/Lorton area, whether you’re selling or buying, give us a call. We’ll put our all into getting you the highest and best offer possible in today’s market for your home, and the best deal possible for the home you want to purchase.