Basically, expect an aircraft to fly overhead (click to enlarge)

One of the benefits to living in Northern Virginia is that you can get a flight almost anywhere in the world at one of the local airports. Each of these “local airports” qualifies to be in the top-tier of U.S. airports for passenger traffic and daily flights.

Recently, when a real estate client from Texas asked me about airport flight paths over Vienna , I had to say the area is covered with overlapping flight paths. We have Dulles International, Reagan National, Andrews AFB, and plenty of helicopters going wherever helicopters can land!

I happen to live in one of the overlapping areas where I can see planes on approach to National to my right, on approach to Dulles to my left, on approach to Andrews overhead, and hear a medevac helicopter en route to Fairfax Hospital. The helicopter wins out in the noise department since the airplanes, for the most part, have low sound output on approach.

On the map above, I did not include BWI Airport which is outside Baltimore and a major Southwest Airlines hub because those planes don’t touch our airspace.

40 million passengers equals plenty of flights

You should know that Washington Dulles International handles over 23 million passengers a year, and Reagan Washington National Airport handles over 16 million passengers a year. Added up, that’s a lot of flights.

Although most residents can’t tell the difference, flights on approach to Andrews Air Force Base (in Maryland) make a final approach over Northern Virginia. And one morning at my son’s early morning soccer game in Alexandria VA, I counted ten Air Force C-17′s  gaining altitude.

yes, helicopter flight paths too

Helicopter traffic is significant and includes medevac choppers to the hospitals, every imaginable military helicopter, Coast Guard helicopters, Fairfax County Police helicopters, U.S. Park Service helicopters, and the TV News choppers out searching for “news”.

In reality, living here isn’t quite as noisy as I may have depicted here. Really!

It’s just going to be impossible to find a home in Northern Virginia that isn’t near a potential flight path.

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Up to $100,000... but there's a catch

When a real estate client came to me all pumped up because his Credit Union was offering to pay up to $100,000 of his closing cost, I thought we should sit down and review the typical expenses for a home buyer worksheet again.

I’m sure you can understand why he was so excited since $100k is considered a big chunk of change… even for those in the top 1%!

$100,000 is a rather excessive number

Our first stop was to look at their online estimate and then the fine-print in the offer.

Their online “closing cost estimator” had a nice breakdown and their estimate was reasonably close to my estimate.

In his case the estimated amount was about $14,500.

The fine print states:

Closing cost offer only good for 5/5 Adjustable Rate Mortgages (ARMs)**. You must use one of our preferred title companies to get closing cost credits. Closing cost offer is limited to $100,000 per loan. If application is withdrawn or does not close, the borrower pays all applicable fees. For New York properties borrowers are required to pay title insurance premiums and may use any title company to obtain the closing cost credit of up to $100,000. Includes lender’s fees, title fees, recording fees, and recording/transfer taxes. We do not pay optional owner’s title insurance.

One of the first items that I cover with my Vienna home buyers and sellers are typical transaction expenses. Spending time going over my cost estimate worksheets always puts the process in perspective and answers some tough questions.

But, you have to agree, an offer to pay $100,000 is going to get anyone’s attention.

Developing a winning negotiating strategy is part of the reason why I cover expenses, because you can include having the seller pay some of your closing costs in your offer to buy their home. This is perfectly normal in the Northern Virginia real estate market where homes are expensive (our average price in 2011 was $483,160) but, remember, you can only use the amount as allowed by the lender’s predetermined “normal” transaction costs.

In my real estate practice, having a consistent negotiating strategy is essential for my client’s success. But when this lender then suggested to my client that he ask the seller to give a closing cost credit then steam started to come out of my ears. Wait a minute, didn’t their advertising get him interested in their program because they were willing to pay the closing costs?

And now they are suggesting he get the seller to pay some… ?

wait a minute, this is BS.

This is a fairly complicated switcheroo-ski if you ask me. Keep in mind, if there is a seller credit then that amount will be used first before the lender steps up with their $100,000 credit. That credit goes to closing costs and not to escrows, pre-paids or the down payment. If the credit is too much then the seller gets to keep her funds.  In this case, I recommended to remain focused on the Sales Price without the distraction of a seller credit.

Besides wanting my clients to get treated fairly, I also want them to get the best deal and maximize their mortgage options. As a licensed real estate agent, I understand the FTC regulations restricting real estate agents about giving mortgage counseling… but I will do my best to point out a rotten egg if I smell one.

Have you reviewed the typical expenses of your real estate transaction?

Related articles

• Price is not all that matters in real estate sales (reallyhome.wordpress.com)
• C is for Closing Costs! (realtorkaera.wordpress.com)
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Use simple bullet points

Recently, when a client was interested in putting together an offer on a particular house we had seen, he asked me if I had picked up a brochure.

“No I didn’t. Did you?”

Since neither of us had one I decided to contact the listing agent to ask her to email one over to me so I could note any updates or recent improvements to the house. It seemed like a reasonable request since the home has been on the market over 250 days and we had seen it twice.

Here was her response:

“Yeah I do not have a brochure..I am sorry..I used to do brochures back in the day but with the internet clients had no use for them…”

Um, “back in the day”… are you kidding me?

Maybe you are an experienced Internet real estate surfer, but you are probably looking for something you can hold when you check out a house in person.

Am I wrong?

Seeing a house online is only the first step. You know, when you can check out the photos, the location, local schools or local shopping. R-E-S-E-A-R-C-H!

Internet clients still want to see the house

The next step is to have your buyer agent set up a convenient time to see it when the house can be yours. Don’t wait until the Sunday open-house where three other people will be on your tail in the kitchen, bathrooms or living room. Most of those people at the open house are distractions from making one of the most important decisions you’ll ever make.

A good real estate brochure doesn’t have to be complicated but should include bullet points like HVAC updates, interior upgrades, kitchen information, and list community high points if possible. Walk to Whole Foods or near the W&OD Bike Trail are selling points people! No one is going to buy a home because of a fabulous brochure, but when there is a helpful list it may provide insight into the age of the roof, heating system, or something else equally important.

Get it?

Sorry for the rant, but not putting a basic piece of helpful consumer information is a costly oversight for everyone.

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A home in Vienna, Virginia | Doug Francis via Flickr

For many folks, as the clock strikes 2012, careful plans to sell their home or to buy one go into action. Setting new goals is an important way of improving your life and making each new year more meaningful than the last. Our lives are short and knowing that you are personally responsible for the life you lead right now (this instant) can be an awakening. Owning a home can be an important pillar of that plan.

A 2012 real estate resolution?

If you have made a real estate resolution for 2012 then here are some of my top tips for both sellers and buyers.

Top 5 home seller tips:

• Minimize – Even if you live in a grand mansion, you want your home to appear as spacious as possible. Some common themes include removing a chair from the living room, clearing off the kitchen counters, or taking 30% of your clothes out of every closet.
• Paint – A fresh coat of paint can really transform a room at a very low cost. Instead of the white that we used to recommend, using a classic color that is in style will appeal to today’s picky home buyer.
• Flooring – Nothing will turn off a buyer faster than flooring that’s in poor condition. Most hardwood floors can be refinished or super-cleaned (even 50 year old hardwoods). Carpets can be swapped out in a day. And vinyl floors cab be replaced.
• Landscaping – Home buyers started to assess your home as they pull up, so you want to make sure your yard, plantings, driveway and front door are looking their best. Handles, door knockers, doorbells and front a mat all set the stage for what they see next.
• Appliances – Home buyers look closely at kitchens, and seeing an old range, fridge or dishwasher can be a deal breaker. Laundry machines, hot water heaters and AC units are systems that are factored in when making a decision to buy one home over another.

Top 5 Home Buyer Tips

• Price Range – Your mortgage lender will pre-approve you for a maximum price range, but it is up to you to decide how much you really want to spend.
• Long-term Needs – Buying or selling a house is expensive, so it is essential to consider what your situation will be like in five years. Will you have children, be retiring from your job, or relocating out of the area? Any of these factors need to be calculated into making your home selection today.
• Quick Decisions – Being able to make decisions quickly can especially help you in the active Northern Virginia real estate market. Get to know the sales contract and the process for putting in an offer quickly when you find a home that fits your needs.
• Flexibility – Your willingness to compromise will help you be successful. For example, buyers looking at Vienna VA homes often make a compromise on smaller homes because of pricing and commuting times.
• Teamwork - This process will easily involved fifteen important people who are all working on deadlines, and each can easily disrupt the flow of the process. Online home searching is the easy part of the process. You should view your real estate agent as the project manager helping you understand your options, meet deadlines, be a resource and ultimately achieve your goal of buying a home.

If you have made a resolution for 2012 to buy or sell a home in Vienna, VA or virtually most of Northern Virginia, you can start be meeting me here on my blog and then having me over to see your home to see what it is worth, or to meet to discuss your plans to buy a home and how I can help achieve your goals. Send me an email at doug@DougFrancis.com and I will follow up from there.

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Good home, cheap!

If you are lucky enough to be able to buy a home, I’m sure you are looking for an incredible deal. There hasn’t been a week recently when someone hasn’t mentioned making a lowball offer and how I can help them get a steal deal.

Typical tips are to look for homes that have been on the market for a few months, don’t get emotional, to be ready to walk away from an unresponsive seller, and to make sure your written offer looks professional.

I have seen home buyers make lowball offers on my client’s homes, had their agent call me to tell me the price is too high (usually unsubstantiated), and then get pissed when my seller client told them  “no”. There have been a ton of rookie mistakes, so here are some tips to help put together a better lowball offer.

Are you ready for some insider secrets?

• Make your offer “as-is” – One concern that home sellers have is that the home buyer or home inspector will ask for a bunch of repairs be made prior to closingto the house. Realistically, most homes have issues, so look closely at the house before making your lowball offer taking note of to the overall condition as a key factor. Your offer taking the home “as-is” will give you a strategic negotiating advantage.

• Close on the sale quickly – Home sellers are hoping to get the equity or cash out of the house. If you can go to closing in two weeks then many sellers may jump at your lowball offer. Time is a valuable commodity, and if you possibly let the seller stay in the home for a period after closing then it becomes more appealing.

• Eliminate the Appraisal Contingency – You already know if you can get this home at your price then it’s a deal. Crossing out the need for an appraisal will really raise the bar and increase your chance of acceptance. Appraisals can be an item many sellers are having to sweat out since most media outlets have them believing all appraisals are coming in low.

• Pay Cash – Have you ever heard the expression that “cash is king”? The fact that you don’t need a mortgage is very attractive when making lowball offers because, as we all know, banks often cause delays.  I know one builder who writes up offers as “cash” on Vienna Virginia tear downs but then signs a mortgage at the closing table.

It is very important that you know what a good deal is on the house you hope to buy. An offer considered lowball is sometimes only 10% off the asking price depending on your market. And if your first offer is rejected, then consider making an improved one. You should be doing your research in advance and have the ability to evaluate a home quickly.

It may be like playing poker

One risk that you should be aware of when you make a lowball offer needs to be discussed up front: The home seller could be so insulted with your lowball offer that she may refuse to ever sell her house to you, even if you come back with a 100% offer. I have seen it happen, so don’t say I didn’t warn you!

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That’s a good problem for a real estate agent!

At this pint you are seeing the new version as I am rolling it out a getting to look, and feel just the way I wanted. Part of this week I have been changing some things so it may have not been working properly. SORRY!. It has been running in the “Test Drive” mode and the time has come to merge into traffic.

Please, wish me luck!

You may be surprised to know that this little blog really has helped people just like you answer some real estate questions, and get to know me.

Although the geeky tech stuff sounds cool, I understand that the success has come through writing about the real estate business from my perspective in a way that helps you. If I can get it to load faster then I am going to be really happy because it drives me crazy when I have to wait for any site to load.

If a couple things aren’t working, sorry, I’m working on it!

About 30% cash buyers

Condo buyers that pay cash are typically savvy real estate investors looking to cash in on the current low prices with plans to rent out the properties. Although there are many places where that plan is a good bet, places such as Reston, Virginia may be a whole other story.

You see, Reston is an ideal location for investors because a Metrorail line is being built from Reston to Washington DC. Reston also has an impressive workforce clustered around the Town Center and Dulles Corridor – so there is continuous demand.

This scenario sounds pretty good to me as well, but there area lot of people who want to get on that train too and are willing to do anything to get onboard.

Are you missing the big picture?

Owner occupants getting loans for condos have to jump through some extra hoops meant to protect (the lender) from placing a residential loan in a “commercial” building. A commercial residence is defined as having a larger ratio of non-owner occupied units to owner occupied units. Also, they tend to look at F.H.A. approvals and other financials.

Last week’s conversation on CNBC about real estate and cash buyers really got me thinking about what I was seeing right here in the Reston condo market with cash buyers (investors) often out bidding owner occupants.

Luckily, condo buyers paying cash don’t need all that nonsense!

Again, about 30% cash buyers

Well, it isn’t all nonsense…

So what is the Investor Ratio?

Although you may be well intentioned as a real estate investor, it is important for you to understand how many other well intentioned investors are in your building. This figure will be especially important when you plan to sell (cash out) and buy something in the future. If the ratio is too high then it may be difficult for perspective buyers who need financing.

Is the property F.H.A. approved?

Although the F.H.A. has made it tougher to maintain approval, many condos that had approval have not renewed their status. Again, this may factor into your plans when you plan to sell (cash out) and put your cash into another investment. Another investor may  impact your condo’s resale market if one investor owns more that 10% of the units.

By the way, take a look at those two charts and notice how few FHA loans were placed each month. To check on approvals, click here for F.H.A. and here for Fannie Mae lists.

How solid are the condo’s cash reserves?

Although you are going to pay your monthly condo fees, you need to know how the finances look right now because, if 10% of the building is behind on their payments, then you may want to reconsider the building. It is a slippery slope when that badly needed cash flow dries up and reserve requirement aren’t being maintained. So, examine the financials.

Read the Condominium Disclosure Documents

These will give you plenty of financial details, but look to see if there is a self imposed cap on rental properties. I know one condo where there is a very restrictive cap on rentals – at 20%. Better yet, they are at the max already so you will need to apply for a spot when it comes available. Sorry, it’s in the bylaws!

Have an exit strategy

Remember that getting your money from this type of investment is not easy, especially if you are buying it with partners. This is a trend I’m seeing since so many people are earning 0% in their money market accounts and the cash flow from a rental is appealing. It is your principal that is locked up until you sell. If you don’t have a plan then you may get stuck with a lemon for a long time.

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Classic colors are essential

Ever had a moment when you realized, “Hey, I’m one of those people!”?

That happened to me when I was showing “newer” homes to a client and kept pointing out how the homes would show much better properly painted. After 3 to 5 years they were still “builder’s white” and looked dirty.

As I walked into my own house at the end of the day, I realized that, yikes,  I was one “of those people” too.

Pick a color that will appeal to home buyers

Painting is probably the easiest thing to fix when you are planning to put your home on the market. It is essential to think strategically, which is Realtor Code for painting a color that will appeal to today’s home buyers. Finding an “in-color” is tough, but easily enough achieved thanks to countless Pottery Barn catalogues, Google, HGTV, a home stager/designer or a plugged-in real estate guy.

I have seen paint totally transform a 1950′s Vienna Virginia rambler, and shock the owner of a five year-old colonial in Clifton. After seeing the photos online of the finished job the homes looked totally different, and that is essential since your first showing is now taking place online from the comfort of the home buyer’s kitchen counter (you buyers know where you are, Panera?).

William Gonzalez

For the rambler in Vienna, it was easily painted by my trusty handyman John Blizard ( jblizard@comcast.net ), but for the bigger jobs I suggest calling in a painting crew. Recently some clients have used William Gonzalez’s ( wgmypaint@yahoo.com ) company, My Painter which is licensed and insured to get the house prepped and painted  (takes 3 to 4 days). The speed and quality of a professional crew makes is well worth the expense.

Some recent paint selections:

• Hawthorne Yellow – Benjamin Moore, flat/matte finish
• Sandy Hook Gray – Benjamin Moore, flat/matte finish
• (to see more photos of a home with Sandy Hook Gray, click here)

Take a look at the exterior of your house close up to see if there is paint chipping or fading. Some people wind up with black spots all over their nice white trim boards. That actually comes from all the wood mulch you spread around your house (at least here in Northern Virginia) and is a natural mold. With so many homes here built with vinyl or HardiePlank siding, often a good power wash solves the trick… but your trim work still needs some painting.

Home buyers will be staring at your front door

Last, but not least, one of your most important “first impressions” is your front door. From my experience, often a full minute is spent at the front door as the Realtor is opening the lock box, fiddling with the keys or ringing the bell waiting for you to get your arse to the door. So make their wait special with a freshly painted door, and, by the way, that old door handle and knocker may need replacing too.

After I painted my own house, it was amazing how much more comfortable it was. So don’t wait until you plan to move to make it look like you live in an episode of Divine Design.

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Image via Wikipedia

There isn’t anything worse than waiting for an answer.

Yes or No. Come on man, just let me know!

The tip that I give my Northern Virginia real estate clients is to respond to any type of offer quickly, and to take every one seriously. Speed is very powerful when negotiating.

In real estate, a quick response is powerful

If that answer is too vague and you need just a little more structure, then maybe these guidelines will help:

• in by 10:00 a.m then respond by noon
• in by 1:00 p.m. then respond by 5:00 p.m.
• in after 6:00 p.m. then waiting until 9:00 a.m. is okay (you can sleep on it)
• Communicate if there is a delay… and stick to that time frame

Problems happen when an offer comes in and then one party doesn’t respond back in a reasonable amount of time. In the Cold War days, it was acceptable to be a slow responder like if you were behind the Iron Curtain or if you were on the QE2 sailing to Sydney.

Here is the warning: When the submitting party has to wait,  festering begins. Are they “shopping my offer?” they ask. Are they using it to “leverage some other offer?” they ask. “Did they even get our offer?” they ask. Recently, clients negotiating on a house in Vienna broke off negotiations because the seller was dragging his feet and they, justifiably, were insulted.

Today it is just too easy to respond quickly using secure digital signatures on any laptop or iPad. A few years ago I started to use DocuSign after a client couldn’t fax his paperwork to me from Austin. This service alone has helped my clients respond quickly in competitive situations, and it actually comes across as much more professional considering so many companies have adopted digital signatures too.

DocuSign uses e-mail to secure your signature and “the cloud” to merge the completed document then delivering it back to me. Even if you are in your office in McLean, it is so easy that you will be able to respond instantly.

Remember, respond to real estate offers quickly for the best results.

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Walk to Vienna Metro

UPDATE: This Vienna Virginia home sold in November 2011

Yes, the best end-unit town home is on the market for sale and you just stumbled upon it. It is in move in condition and ready for you now!

• 3 upstairs bedroom
• 2 full, updated baths upstairs
• Open country kitchen with patio door to deck
• 20 foot wide deck
• Windows replaced in 2010
• Walk-out basement to fenced yard
• Freshly painted, and new carpet
• New kitchen appliances
• Wood burning fireplace in rec room
• Two assigned parking spots

This home gets plenty of sunlight all day, and will spend plenty of time entertaining on the over-sized rear deck. The large cherry tree blossoms in the spring with wonderful pink flowers.

Living near the Vienna Metro station will give you great access to Washington D.C. since the Orange Line goes through the Arlington Corridor before heading into Foggy Bottom, The Smithsonian and the Capital South station. There are bike racks available if you prefer to ride.

Minutes from Tysons Corner, Fairfax Hospital, Nottoway Park, Oakton High School and Whole Foods

 
View Larger Map

Call Listing Agent Doug Francis now @ 703-304-6827 for details about homes for sale in Country Creek.

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