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.

Image by bulldog1 via Flickr

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.

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

#1 in the #2 Business!

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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A Dual Zone AC System

We just survived our first super-hot summer weekend in Northern Virginia and it is only mid-June! With temperatures in the 90°’s and humidity running at 70%+, this is the time of year that home owners start to see their central AC units crash.

I always recommend to my clients after they buy a home to look into service contracts with local Heating and Cooling contractors because problems always happen when temperatures are extreme. For example, a client living in Vienna once called me when it was 12° and her furnace had quit, and another called when it was 95° to say that there was a block of ice on her AC unit and her house was boiling!

Luckily I had provided them with one-year Home Buyer Warranties when they bought their homes so they had someone to call. From personal and professional real estate agent experience, I know that clients will typically call me when there isn’t heat or AC, so providing a little extra “peace of mind” for them at closing with an action plan is like putting money in the bank!

A Home Buyer Warranty plan only lasts one year… but it’s good to have.

Here are some ideas for keeping your home cool:

• keep shades drawn on extra hot days or when you are at work
• adjust plantation shutters so the slats are deflecting the sunlight
• install ceiling fans
• keep your AC set at a manageable temperature during the day
• make sure your windows are locked tight
• turn off recessed lights
• consider getting a professional “energy audit” of your home
• Switch the thermostat fan to “on” from “auto” to circulate inside air

If your AC fails on a weekend, here are a few ideas:

• check your thermostat to make sure it is on AC (move the darn switches)
• make sure the service shut-off switch (looks like a light switch) on the air handler hasn’t been accidentally switched off.
• check your circuit breaker box and make sure it hasn’t tripped the switch
• if there is a block of ice outside, let it melt and call an AC guy
• check the overflow drain pan for water

I always have home buyer clients get home inspections but problems with any HVAC system are impossible to predict. Your inspector probably gave you a report that describes your HVAC system so go back and take a look because it will refresh you memory.

If you can’t get your AC purring, then it is time to call a professional to tune up and repair the system. If it is old then be prepared to buy a new one since most older systems can not be repaired any more… read more.

Okay, I’m open to learn about your worst AC or furnace problem, anyone?

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This VDOT map of a detour plan looks like a nightmare to me, so here is where my local Vienna and McLean driving experience can help you.

Two Tysons Corner Detour Options

• Take International Drive in Tyson’s Corner which turns into Spring Hill Road, then turn right on Lewinsville Road.
• Take Route 7 and turn on Magarity Road to Great Falls Street.

When I am with some real estate clients this weekend, I think we will avoid the whole Tysons Corner area or at least give it a wide berth.

Like I have said, living in Northern Virginia requires you to have a driving strategy.

Any thoughts on this project? Leave a comment!

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When I look at homes with home buyer clients in areas of Vienna or Oakton, there are a few specific things I look for including the current type of heating fuel and if the heating system has been replaced. Also, a quick look in the yard may reveal the top of a buried heating oil tank with a fill pipe or vent pipe sticking up in the yard. These are generally in plain site because oil tanks are filled a few times a season by an oil delivery man.

Input from the right people is essential

If there is an old oil tank then it is important to understand the situation before making a rash decision to avoid buying the property. Ultimately, it really isn’t very expensive to have an environmental firm excavate the tank and haul it away. What is important is to know the condition of the tank and that a properly licensed contractor has completed the work.

I provide my Northern Virginia real estate clients with professionals to talk with about complex issues like oil tanks, legal matters, tax situations, structural engineering, mortgage options and more because my clients know I deliver a high level of attention to their needs.

If you want more information then read more at this tip for Oakton home buyers.

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The Northern Virginia real estate contract requires that a termite or “wood destroying insect” inspection be conducted within 30 days of the settlement or closing. And, if there are active termites or structural damage from termites, then the Home Seller will have to pay for a treatment or any repairs so that a “clear termite report” can be provided to the mortgage lender and Home Purchaser with a one-year warranty.

Termite inspectors do have to be certified in Virginia and receive annual training. I am not sure if the termites come up with new tricks to outsmart the inspectors, or if it is the state that wants to keep tabs on everyone.

Home Termite Inspections are “visual”

Keep in mind that the inspections are “visual” (like a home inspection) and the inspectors are not going to rip apart walls to check things out unless they find a termite trail. Over my 19-years selling real estate and attending many inspections, I know that termites leave tell-tale signs that look like tunnels, and can make a 2×4 look like swiss cheese that you could easily poke a hole into with a screw driver.

Recently at one of my a listings in Vienna, I called my Seller client to tell her that the termite inspection was “OK”, and she responded that she was meeting a termite guy the next day. It seems another company spotted the sale online and sent her a letter directly to set up a time, sounding like they had been assigned the job. Very sneaky!

The Termite Inspection should include a warranty

Another ploy has been to contact the new owners a few months after they move in and offer a year warranty for $85. Here is the thing… your inspection done before closing already included a one-year warranty.

If you are a home buyer, you should plan to select and pay for the termite inspection (approx $50) and if termites are found then you know a proper treatment will be at the seller’s expense.

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My Home Staging Consultant who I hire suggested adding the rug to anchor the foyer rather than bare floors

You would think that Northern Virginia real estate agents would get it by now, but I am still seeing some really bad house photos being posted online. It is a trend that a lot of agents across the country poke fun at, and even have blogs of the worst photos seen in their MLS.

Anyone who is looking for a home to buy is starting out on the Internet while sitting at home or at work (yes, we know). Doing online research like moving to Vienna, Virginia is done easily from a living room in San Diego, California. So it seems obvious to me to get house photos right from the get-go and put as many photos of the highest quality into the MLS or a linking site like Google’s Picassa or Flickr.

The MLS site is the obvious place to start because it feeds consumer real estate sites like Trulia, Redfin and Zillow. Yup, those photos taken by me are disseminated by the almighty MRIS which is Northern Virginia’s MLS. So 30 photos definitely get popped in here for fast syndication.

The McLean and Vienna VA real estate markets are highly competitive so having quality, staged photos should be 50% of your home’s marketing strategy. (this is obvious to home buyers)

Here are my tips for better real estate photography:

• If you are unsatisfied with your photos, then hire a professional
• Use a digital camera with a wide angle lens built into the camera
• I update my camera on a regular basis, read more at my FAQs page
• Take plenty of shots (50-100) and then pick and choose on your computer
• Do not use a fish-eye lens because the photos just look too weird
• STAGE your photos by turning on lights, hiding garbage cans etc.
• If the sun isn’t out, then come back later for another cover shot
• Keep in mind that the buyer who is boarding a plane to house-hunt will only have time to see five homes in McLean, and will pick one to buy.
• Don’t be afraid to change the photos… if there was snow on the ground the first time and it is now May, take some new photos then upload them!

Having clear photos is an absolute must, #1 priority for me when I list a property. Why? Because  home buyers wanting to see Mclean or Vienna homes for sale have their iPhone or Droid real estate apps running all the time showing photos, photos and more photos.

Having poor quality real estate photos is a real no, no!

Leave a comment about any bad photos you have seen recently.

Nielson's Frozen Custard on Church Street

Last weekend, a RE/MAX Presidential team colleague put a 1960’s Town of Vienna home on the market at $539,900 and had seven (7) offers! Yes, even without the “home buyer tax rebate program”, people know that living in Vienna is valuable. Obviously the schools are good and commute times are decent, but the unique sense of community is the key with the W&OD Bike Trail, Concerts on The Town Green, The Vienna Farmers’ Market, and Memorial Day Weekend’s Viva Vienna festival!

Maybe it’s Nielson’s Frozen Custard Shop?

On the other hand, people wanting to move to Vienna in the $1,000,000 price range have ninety four (yes, 94) homes for sail sale to look at! And having represented some buyers in this price range recently, I know that there is negotiating room. If you want to talk about the real estate market then send me an e-mail or call me. See some of the stats that I posted recently for a couple of Vienna zip codes on the Vienna Home Blog.

This sharp contrast between the two price ranges is a pattern that I have seen over the past year. Higher-end buyers were impacted by the lack of credit available for loans in the “Super Jumbo” category last year, but mortgage guys that I know (from reputable banks) can now get these loans done up to $2,000,000.

That’s what I love about the real estate business!

When you are going into “battle” against six other real estate offers then you will need one negotiation strategy, and if you are in the higher end market then you will need another. If I didn’t like the competition involved in this business, then I wouldn’t still be doing it after 19 years.

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Image via Wikipedia

“This isn’t the right time to buy his and her BMW’s.”

My Northern Virginia real estate clients have heard me deliver that line for almost two decades when we discuss putting together an offer to buy a home. It’s meant to be funny, but also a very serious warning.

Real estate sales contracts will outline the type of mortgage financing that the buyer is going to obtain to buy the house. Based on that information, a home seller will agree to accept the offer making it a ratified or binding contract. Still following?

The Realtor sales contract used in Northern Virginia real estate sales specifically outlines that the home buyer will comply with the mortgage lender’s requests in a “timely and diligent manor”. But it also outlines that failure to comply with the lender requests or committing an act that prohibits them from obtaining the specified financing may result in DEFAULT.

NVAR Regional Real Estate Sales Contract ¶26: DEFAULT

The Washington Post Saturday Real Estate Section (May 15, 2010) had an article about mortgage lenders reviewing credit reports an extra time, just before closing, to make sure the buyers haven’t impacted their financial status with other new lines of credit. For example, if they see that you now have a credit line at McLean Furniture for $10,000 that wasn’t on you first report, well then you’ve got some ’splainin’ to do.

This extra scrutiny may just blow your deal, cost you the Earnest Money deposit and open you up to pay extra damages to the seller for breach of contract (please include attorney’s fees).

This new “second credit report” at the last minute program is set to begin June 1, 2010, but lenders have typically re-verified employment just before closing. Rhonda Porter called this a new “Speed Bump Prior to Funding Your Mortgage” which is sure to cause some headaches.

So, here is my professional recommendation: once you are involved in a real estate contract restrain yourself and do not make any new credit applications… you are on thin ice!

Again, this isn’t the right time for new BMW’s!

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