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Perspective Impacts Local Real Estate

I went out of town over July 4th to enjoy the beach in Lewes, Delaware with the family, and accidentally observed the local real estate market and the way agents work there. Having been an agent in Northern Virginia for 19 years and seen behind the advertising/image personas (the curtain) of many real estate agents, I thought about how easily home shoppers can believe that one agent must know the local real estate market better than any other.

It was finally obvious to me since I was assuming (like most people) that those folks with the ads in those glossy magazines must be the experienced ones since they were advertising those nice properties.

But, since this wasn’t my first time in Lewes, I knew that Nick or Jack had tried to sell the place (we rented) for three years and that Skip had not yet sold the other house we had rented last year. In fact, there were signs in front of a number of homes that had been there for a couple of years. Jeepers, was I the only one noticing that this market was totally different than mine?

This got me thinking about my area where I live and the perception home buyers coming to work with me  looking at real estate in Vienna, VA must come with. From the looks of it based on MRIS statistics, there really isn’t any one agent who stands-out commanding 5% of the market here but there are some agents who work with local builders who get there signs up longer than 90 days because, on average, the typical real estate sign is up far less time than 90 days in 2010. (That’s because our homes sell.)

So I arrived in Lewes applying the same Northern Virginia perspective, but, after a few days of R&R, the true picture of their local real estate market surfaced. What I am driving at is that I learned something about how I need to educate my buyer clients who are relocating from California, Florida or New York so they have a clear perspective of my our real estate market. And a key part for me is understanding what they see back home… for me to understand their perspective!

Real Estate in Northern Virginia is in high demand because there are well paying jobs here with businesses that are expanding or moving here from other parts of the country. Yes, Washington DC is 12 minutes away, Dulles International Airport is a major international airport, and Virginia is a pro-business state. Plus there are exceptional hospitals, a big tourist industry and more. These are key factors that power our local Northern Virginia real estate market.

So, to understand any real estate market, it is essential the home buyers get a clear perspective of what impacts local real estate values. Let’s since down and talk about your plans, goals and perceptions of Northern Virginia real estate.

Fireworks Return to Vienna July 4th!

If you are planning to watch the fireworks in Vienna, VA on July 4th, 2010, then you should know that they will be set off at a new location for the second year. Yup, it’s a change-up this year blasting off at 9:15 at Southside Park.

Although I have been living in Vienna almost 20 years, this hidden location in Vienna Woods is off the beaten path even for this Vienna real estate guy!

Vienna’s fireworks display has moved?

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The Town of Vienna has posted an events schedule for the day’s events at the Vienna Community Center, and a map showing the fireworks site and areas to sit and watch the fireworks on July 4th, 2010.

Have a safe and fun 4th, and hope to see you there.

Let me know, here in the blog with a comment, what you thought of the show and new venue!

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Home Seller just isn’t negotiating!

One of the hardest parts of buying a home is making an offer. Really, it isn’t easy to come up with the right offer, and I always tell my Northern Virginia real estate clients that their initial offer should be their “ideal scenario” from the start.

• Offer price, determined after looking at recent sales and condition of the home
• Closing or Settlement date, when do you really need to be in the home?

No, that isn’t everything to factor into your offer strategy but they are two essential elements because they are key starting points. Either of these can become major stumbling blocks that may stop a home seller from wanting to negotiate with you at all.

Home Seller motivations are important to understand  because sellers will typically have a bottom line number and an ideal time-frame too (an ideal scenario). I look at this information as part of a “pre-negotiation” for both seller and buyer.

Incompatible time-frames can be a real estate deal breaker

Having worked both sides of the fence here, I know it is important to communicate a home seller client’s ideal scenario to a prospective home buyer or REALTOR who has indicated that they are putting together an offer. For a recent seller client, he was very specific and wanted to settle June 23rd which was information that I shared with all interested parties. There were three competing  offers all with different offer amounts but with June 23rd as the settlement date.

One of my buyer clients submitted an aggressive offer recently on a Vienna home and, although that neighborhood has had no sales in the past two months, the seller is holding firm on the price. Unfortunately, the seller’s REALTOR shared no “ideal scenario” information that could get things moving. In fact, that home seller really isn’t negotiating at all which makes me wonder why they are listing the property in the first place? Yes, the offer is still out there and has even been improved over two weeks… yet it remains a mystery.

So, understand your “ideal scenario” before you list your home or make an offer on a home because it is essential to making sure a negotiation is even going to happen.

Buying a Virginia Home with a Septic System

There are many Northern Virginia homes that have septic fields on the property designed to allow wastewater to be absorbed into the ground. Terminology is tricky here as a septic field is a septic system, and are also known as Wastewater Systems as defined in 2010 by the Virginia Department of Health.

So, this year the Virginia General Assembly passed legislation requiring that the Virginia Residential Disclosure Statement (which must be given to home buyers) include a notice to the effect that it is the buyers responsibility to be satisfied that a septic wastewater system exists on the property. Then, the buyer must determine that it is the proper size, know what type of system it is, and how to maintain it.

Here is the new language from VARBuzz.com:

WASTEWATER SYSTEM: The undersigned owner(s) makes no representations with respect to the presence of any wastewater system, including the type or size thereof or associated maintenance responsibilities related thereto, located on the property and the purchaser(s) is advised to exercise whatever due diligence the purchaser(s) deems necessary to determine the presence of any wastewater system on the property, in accordance with terms and conditions as may be contained in the real estate purchase contract, but in any event, prior to settlement pursuant to that contract.

Virginia Home Buyers should plan to hire a Septic Guy

To me, this means it will be important to get a septic guy in to evaluate a system when you have a home inspection. I’ll have to ask my plumber pal Bob Beckwith (RLB Plumbing) what he thinks about this and if he is willing to put his name on the line. Giving a septic system an evaluation is going to be a challenge since they are underground and made of sand. They literally flood the system, stab it with a stick and watch for water to emerge.

Home buyers, keep in mind that septic wastewater systems exist in McLean, Great Falls, Vienna, Oakton, Fairfax and Clifton homes. My suggestion will be to budget $500 to $1,000 for a septic system inspection.

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