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Your Maryland lockbox doesn’t work in Virginia

In the past two weeks, I have shown up at two vacant homes in Fairfax, Virginia with clients wanting to take a look-see, only to find that the SentriLock lock-boxes did not work. You know, SentriLock’s are the little blue boxes on the front door handles of homes for sale.

In the Washington D.C. metro area, we have Realtor Associations in Maryland, D.C., and Virginia, plus many Realtor sub-associations in each state. Some agents get licensed in all three jurisdictions which also means they need to join each association (yes, it does sound like a racket to me too). But, this is where some agents may be trying to skip a step when working on the other side of the river.

Well, the first time the box did not work I just called the agent and left a message. The second time I left a message too. I figured out the Maryland connection through a little detective work… their telephone numbers were area code 301.

Maybe a trench coat would help my business? Or maybe that’s a 301 redirect (too geeky?)

Silence.

No response, no thank you’s, and no call saying that they changed the box so please come back.

They did not care about the situation… probably because driving from Maryland into Northern Virginia almost requires you to go through Tysons Corner where the Capital Beltway is torn up and traffic is snarled 18-hours a day.

The lesson for the Sellers: If your agent installs an out of area lock-box, then you have a gross negligence case.

Maybe it’s time to find someone who cares about selling your home!

buyer

4587 Derring Lane, Fairfax Virginia SOLD!

SOLD and Settled @ $429,900 in April 2010!

… look at the interior photos! This home is not asking a 3rd party for approval! Not a foreclosure either… super clean and ready to settle by the end of the year!

Mint condition town home located close to Fair Oaks, Fairfax, and some of the best shopping on the East Coast including Wegman’s, Whole Foods, REI, Costco, Target and the Merrifield Garden Center. Walk to an almost new Fairfax County Elementary School (Eagle View), Fairfax County parks and walking trails and so much more.

3 level, rear load two-car garage, almost new condition. 3 bedrooms, 2 full and 2 half baths

All ready to close quickly. But we need to set up a time to see it this weekend… 703-304-6827.

Equal Housing Opportunity!

View Larger Map and settl

buyer

HvCc appraisal flu hits Northern Virginia…

Home sellers and buyers in Northern Virginia have felt the pain of the HVCC, the Home Valuation Code of Conduct. These new guidelines (May, 2009) dictate how real estate appraisals are conducted for all mortgage loans that will be sold to Fannie Mae and Freddie Mac.

Government insured loans such as FHA or Veterans Administration (VA) have not impacted because they do not sell their loans through the Fannie/Freddie mortgage market.

So what’s the big deal? Haven’t all real estate loans required appraisals?

Maybe a little history lesson will help.

In 2007, New York Attorney General Andrew Cuomo sued an appraisal company accusing it of colluding with Washington Mutual Home Loans of using only appraisers who inflated property values, which “helped set the mortgage crisis in motion.” This case was settled out of court.

As part of the settlement, Fannie Mae and Freddie Mac agreed to adopt a set of rules spelling out how appraisals will be handled for any mortgage that they would be a part of, and that is a very high percentage of the mortgage loans across the United States. These became the HVCC guidelines,  just four pages long. The main purpose is to keep lenders and appraisers honest by limiting the chance that the appraisal process will be influenced by someone who is part of the loan process.

“The HVCC is designed to promote professional appraisals free from inappropriate pressure from lenders, borrowers, or mortgage brokers.” – Federal Housing Finance Agency

Sounds reasonable to me.

In reality, it has created a new layer of bureaucracy. Mortgage lenders are the ones who order appraisals, and with this “wall” between them, someone is needed to contact the appraisers.

To fill that void, we welcome Appraisal Management Companies (AMCs) to the mix. The AMCs assign appraisers from a list as the orders come in from the lenders.

Here are a few of the rubs:

• The cost of most appraisals have increased
• Appraisers are now asked to do more work if they want to stay on the list
• The actual appraisers are being paid less, there is another hand in the till
• AMCs are assigning appraisers based on geographic location, such as Virginia (a rather large state)
• Many appraisals are now missing items that impact value, resulting in low appraisals
• Many transactions are being renegotiated or canceled due to low appraisals

The Regional Sales Contract for residential real estate used in Northern Virginia has a contingency that the home must appraise at or above the contract sales price. Only in fire-sale prices do we see appraisal above the contract price since appraisers follow the market and not lead the market. As a result, it it essential that appraisers have all the information when calculating value because any missing data may result in an appraisal far below actual value.

So home sellers are not the only ones impacted when appraisals are off the mark… ask a buyer who negotiated a good deal only to have it fall apart because the appraisal came in too low. Yes, the seller can say, “sorry, the deal is off with you. Bye, bye now.”

And unknown to the buyer who thought he had a “done-deal” and now needs to start looking again,  there may be another home buyer with more cash on hand to snap up that great deal. On the other hand, the seller may be left waiting another month for another offer that will probably be lower than the last one.

buyer

Tell me about the crime rate in Fairfax County?

Last weekend I met with an interested buyer to discuss a listing of mine, and he looked me in the eye and asked me, “how is the crime rate in the neighborhood?”

I can understand his reason for asking the question because I certainly would not want to move my wife and children into a crime plagued neighborhood either. But asking a salesman who is trying to “make-the-sale” such a question is crazy, risky, and the last thing he should have been doing. Yes, I consider myself trust-worthy but I don’t live in the neighborhood and really have no idea if someone had broken into a car over the weekend.

Get it?

Asking real estate agents for local crime info just isn’t a good idea.

So I always suggest people look up the data on the excellent police web sites, and here are a few from my market area in Northern Virginia or the Washington D.C. suburbs.

• The Fairfax County Police Department
• The Arlington County Police Department
• The City of Alexandria Police Department
• The City of Falls Church Police Department
• The City of Fairfax Police Department
• Town of Herndon Police Department
• Town of Vienna Police Department
• Loudoun County Sheriff’s Office
• The Prince William County Police Department

If there is another police department that I have left out then I will be happy to add them too!

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