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Oil Tank Concerns | Vienna Home Buyers

Some homes in Vienna VA were built with underground oil tanks to store heating oil, but have been converted over to natural gas heating systems. In cases like this, home buyers need to know if the old oil tank was removed from the property or just abandon in place. An abandon tank will have some documentation as required by the Virginia Department of Environmental Quality.

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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Two Real Estate Markets in One

Northern Virginia home buyers looking to move to Vienna are witnessing an interesting spring real estate market in May. Well, at least I find it interesting because detached homes in the $530,000 range are seeing one market while the $1,000,000 plus range is seeing another.

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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“Almost” Home Buyers – Restrain Yourself!

“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. (Credit Reporting Agencies can also send “alerts” to the mortgage lender of any changes) 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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Home Inspection Reports Really Matter

Having a home inspection contingency is essential when you are buying a home. But in Northern Virginia, I have seen a wide gap in the quality of the written inspection reports that home buyers are given by their inspectors. Specifically, it is the detailed description of the inspector’s concerns that he may have discovered and reported per the sales contract. Selected concerns are put on an Addendum and submitted to the Seller along with the Home Inspection Report.

Home Schooled in three hours!

I am a firm believer that my home buyer clients will learn more about their home in three hours with an inspector than over the next three years living there. And when a writer from SmartMoney Magazine called me in 1994 to ask me if I thought home inspections were a consumer rip-off and then asked a half hour worth of slanted negative questions at me, I knew there was an issue. And after that interview, I understood that she totally misunderstood the purpose of a home inspection. A good home inspection will give insight into the quality of the home’s systems from the foundation to the top of the chimney.

In fact, Smart Money’s recent article still maintains the position that home inspections are rip-offs, but gives home buyers no other options to help understand the house they are about to buy at a reasonable cost. For example, in my experience, a roof can be inspected from the attic where the sub-roof or underlayment can be inspected for water stains and rot which will have left their marks… folks, your inspector won’t see this if he climbs a ladder onto the roof like SM recommends. My point is that there are levels of experience and communication, and your inspector should have a sample report on his web site for you to examine ahead of time.

The quality of the written report became apparent recently when I was the listing agent, and the buyer’s agent brought in a home inspector. They did a good inspection, but delivered an inspection report circa 1998 using a form checklist that was unclear and literally created issues because the inspector had to abbreviate his comments. Although the other agent is an experienced agent (really), she was completely unable to explain any of the issues.  Maybe that is what the SmartMoney writer was driving at?

You can see that this first report has a lengthy checklist and a small area where the inspector can write a detailed description. But it takes a lot of words to describe a “hand rail on the right side of the front porch that is not secured properly because the non-structural column is not secured” in the comment section is only ten lines long. It simply leaves too much room for interpretation by the home buyer or home seller who can easily get an unclear picture of the issue.

Here’s a much better Home Inspection Report

Now, the Northern Virginia home inspectors that I recommend to my buyer clients use digital pictures to document items that are of concern and need to be addressed. Combined with a customized report with photos and easy to understand explanations including an organized checklist, there is little room for misunderstanding that a valve is leaking or there is a missing piece of roofing.

Getting your head under your kitchen sink isn’t what most people ever do, but a home inspector will be checking for evidence of leaks, drain hose connections or improper wiring. And a few digital pictures with a clear, written description of the problem makes the home inspection report just that much more powerful when negotiating to get something fixed or when asking for a  dollar credit for a future repair.

My clients understand that I look at our business relationship as a team effort and having a thorough home inspection and well written report is 1/10th of the process. If the house is sinking then let’s get the heck out of the contract, but if there is a leaking water valve then let’s get a licensed plumber in there to fix the problem. In almost twenty years as an agent, I know that no house is 100% perfect!

Bringing together the best people for my Northern Virginia home buyer clients to work with is one of my goals. Confident home inspectors, mortgage lenders, repair men, settlement agents and many others service providers help my real estate clients achieve their real estate goals.

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