http://www.LoudounScene.com

Focusing on my outside Loudoun and Fairfax County real estate Blogs. Peace out!

Tue, 16 Dec 2008 10:55:03 -0600

After being an active member of AR for quite some time, I've decided to focus my blogging efforts on my own "outside" real estate blogs. I'll be posting Loudoun and Fairfax County real estate related posts directly on my local real estate blogs - LoudounScene.com and LoudounForeclosures.com - and will continue writing about real estate in general over at Agent Genius and VARBuzz.

Thank you to everyone who's read my posts, commented and engaged in discussion. I look forward to continuing the relationship I've built with many of you here on AR on the "outside".

Peace...

-Danilo

The Issues With Short-Sales

Wed, 08 Oct 2008 12:24:18 -0500

Many sellers and buyers ask me if a short-sale is the way to go whether it's to "get out" of their current mortgage/property or when buying a property in order to "get a great deal". There are lots of issues with short-sales whether you're a homeowner or a buyer and the cons many times outweigh the pros.

To better explain the issues with short-sales, check out the post entitled "Short Sales Not The Solution For Eveyone" by Joe Ferrara and Gustavo Blachman over at the Sellsius Real Estate blog. Here's an excerpt:

"Short Sales are simply not the solution for everyone. It is a dangerous idea that preys on people's hopes, not to mention makes the current mortgage crisis worse. The truth is that most short listings will never get to the closing table. There are just too many factors to take into consideration. The short sales agreement is subject to the lender's approval. Closings can be subject to marketable title. There could be multiple liens on the property. The offer presented could be too low for the bank's expectation or below the appraisal/broker's price opinion. The seller may not qualify for the program. The buyer may lose interest during the process, which can take as long as six months. The area or condo may be blacklisted. There are simply too many uncertainties surrounding this dangerous practice in these unprecedented times."

The moral of the story is that short-sales are not for everyone. If you're a buyer trying to purchase a property that's a short-sale, you may be wasting your time if your buyer's agent, the listing agent on the property, the seller and the bank are not all on the same page and know what they're doing. And even then, the chance of it being approved is less than that of you winning at a Blackjack table in Vegas.

For more resources and information about foreclosure/bank-owned and short-sale properties in Loudoun County, VA, check out my local RE blog LoudounForeclosures.com.

Demand For Distressed Properties Outpaces Supply For First Time

Wed, 08 Oct 2008 12:21:00 -0500

The foreclosure/bank-owned and short-sale portion of the Loudoun County real estate market has been steadily improving over the last 6 months. But last month brought some of the best news we've had in a long time - demand outpaced supply!

For the first time since the market turned, there have been more distressed properties sell than new ones come on the market in a one month period. August had 326 distressed properties sell versus 306 new ones come on the market.

Here's a graph showing new listings (supply) versus solds (buyer demand) for 2008 (click to enlarge):

Notice that in January, the number of new listings was more than double the amount of solds. Since then, the number of solds has been steadily increasing. The number of solds in August was more than double those in January.

As for inventory, there was a spike in new distressed property listings last spring, but it's back down to the 300 per month level.

This is very good news for not only the foreclosure/bank-owned and short-sale property market, but the Loudoun County real estate market in general. The key ingredients to a stabilization of the market is lower inventory and higher demand, which is what we're seeing across the board in Loudoun County.

Related Articles

No "Summer Slump" For Loudoun County Real Estate In 2008

Loudoun County Real Estate Market Statistics - 1st Half 2008 vs 2007

Loudoun Real Estate Inventory Levels Well Below National Average

Loudoun County To Help Employees Buy Foreclosed Homes

Wed, 08 Oct 2008 12:19:39 -0500

Loudoun County officials are currently working on a program that will help Loudoun employees buy foreclosed homes. The program would provide $5000 in grants to county and school system employees in order to purchase foreclosed property in Loudoun County.

Loudoun County officials are currently working on the proposal which will go before the Board of Supervisors next month.

This comes after the Loudoun County board last month approved a program that would low-interest loans to those making up to $99K per year.

Loudoun has been hit hard by foreclosures and the county is trying to be a part of the solution as well as make it more affordable for county employees to actually live in the county they work in. This is definitely a step in the right direction.

Related Articles

Loudoun County Considering Foreclosure Program For County Employees

Source: WUSA9.com and The Washington Post

Mortgage Guidelines More Important Than Mortgage Rates

Wed, 08 Oct 2008 12:14:09 -0500

Many buyers worry about one thing when it comes to a mortgage - the rate - and they pay little attention to mortgage guidelines. But in these market conditions, mortgage rates should be no higher than number 2, if not number 3 on the "worry list" with mortgage guidelines being number 1.

Why? Because mortgage guidelines dictate whether you qualify for a mortgage in the first place, regardless of the rate. If you can't qualify, then the rate doesn't matter. Private lenders, as well as the FHA, are getting more strict on their guidelines every day.

Here are some examples of how guidelines are tigthening up:

A few years ago, you needed a minimum of 620 score to qualify for a "prime" or "A-paper" loan. Now, most lenders require a 720 or higher
Rather than one month's cash reserves, most lenders are now requiring 3 to 6 month's reserves
The amount of the down payment required by the lender has gone from none or 3 percent to a minimum of 10, if not 20 percent
"No-Doc" loans are a thing of the past. Now you have to have all your paperwork and records for several years back otherwise the lender won't even touch you
Banks are going belly-up left and right and the ones that are still standing and healthy (only a few left) are making it even more strict to get financing.

There's an excellent video you should check out by Dan Green over at The Mortgage Reports explaining mortgage guidelines and why they're becoming more strict. Click here to check out the video

As you can see, it's about much more than just rates these days. And as more banks go up in flames and credit gets tougher to get, these guidelines will get more strict. So rather than watching rates, watch mortgage guidlelines.

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FHA Guidelines Tighten On 2nd Homes, Rental Income

Help Out Local Causes at the DAAR Charity Auction

Wed, 08 Oct 2008 12:11:21 -0500

The Dulles Area Association of Realtors (DAAR) is sponsoring the 17th annual charity auction and dinner to raise funds for Loudoun County charities at River Creek Country Club in Leesburg.

More than $39,000 was raised and donated to local charities last year. Proceeds benefitted Rebuilding Together-Christmas In April, Good Shepherd Alliance, Loudoun Abused Women's Shelter-Children's Services, Loudoun Cares, Loudoun Families for Children, Volunteers of American Emergency Shelter and Volunteers of America Transitional Housing Shelter.

The silent auction will be held on October 24 from 6 to 11pm. Donations of $100 or more are requested from area businesses for the event. Auction and dinner tickets are $65.

For tickets to the DAAR charity auction and dinner, click here. To be a sponsor and/or donate an item(s), contact Kathleen Mellot, Director of Member Services, at 703.777.2468 or kmellot@dullesarea.com.

How The Fed Bailout Affects You and Your Ability To Get a Mortgage

Wed, 08 Oct 2008 12:09:36 -0500

The question I've been hearing a lot lately is "How will the Fed bailout affect my ability to get a mortgage?" I came across a short and sweet explanation of the bailout's affect on mortgages over at Bankrate.com and wanted to share it with you here...

"Conforming mortgages. Home loans for $417,000 or less that meet guidelines devised by Fannie Mae and Freddie Mac, the government-controlled housing finance giants. The guidelines require borrowers to have good or excellent credit histories, and to have some equity in their houses -- either by making a down payment (when buying a house) or by having a house that's worth more than the amount borrowed in a refinance.

Mortgages are likely to remain available for qualified borrowers who get conforming loans, as long as they have sufficient equity. To qualify for conforming loans, borrowers might need to have equity of at least 5 percent or sometimes 10 percent or even 20 percent. The amount of necessary equity depends on where the home is, whether it's a condominium and other factors (such as credit history).

People who need to refinance, but owe more than their houses are worth, will not be helped by the powers the Treasury seeks. The Treasury's proposal isn't designed to bail out upside-down homeowners.

Jumbo mortgages. Home loans of more than the conforming limit. The jumbo limit varies, depending on location. In some places, it's any mortgage of more than $417,000. In expensive markets such as Los Angeles, it's a loan of more than $729,750. In some places, the limit is in between.

Lenders say jumbo loans, when available, have high rates and fees. This is a result of the credit crunch. If the Treasury's proposal goes through, jumbo loans might become more available and affordable. There's no guarantee of that, though.

Mortgages insured by the Federal Housing Administration (FHA). Loans for people who have so-so credit histories or who have down payments of only 3 percent or so. Those loans remain available for purchasers and for refinancers who can jump through multiple qualifying hoops."

Ultimately, you'll want to chat with a loan officer for further guidance. A loan officer will be able to determine which option is best for you, whether or not you'll qualify and what guidelines you'll have to meet based upon your specific financial situation.

Leesburg Real Estate Market Statistics (20175, 20176) - September 2008

Wed, 08 Oct 2008 12:07:38 -0500

Here are the September 2008 statistics for the Leesburg real estate market (20175 and 20176 zip codes):

Leesburg - 20175 - September 2008

New listings = 52. This is a 20 percent decrease in new inventory as compared to September 2007
Solds (Under Contract) = 36. This is a 45 increase in buyer demand as compared to September 2007

Leesburg - 20176 - September 2008

New listings = 101. This is 29 percent decrease in new inventory as compared to September 2007
Solds (Under Contract) = 71. This is a 236 percent increase in buyer demand as compared to September 2007

Though buyer demand increased significantly year-over-year in the 20175 zip code of Ashburn, it really spiked in the 20176 zip code. These statistics confirm what my clients and I have been seeing and feeling while searching for and writing offers on properties - there are less properties to choose from and more buyers fighting for the same property.

Related Articles

Sterling Real Estate Market Statistics (20164, 20165, 20166) - September 2008

Ashburn Real Estate Market Statistics (20147, 20148) - September 2008

No "Summer Slump" For Loudoun County Real Estate In 2008

Loudoun County Real Estate Market Statistics - 1st Half 2008 vs 2007

Loudoun Real Estate Inventory Levels Well Below National Average

Sterling Real Estate Market Statistics (20164, 20165, 20166) - September 2008

Wed, 08 Oct 2008 12:06:12 -0500

Here are the September 2008 statistics for the Sterling real estate market (20164, 20165 and 20166 zip codes):

Sterling - 20164 - September 2008

New listings = 126. This is a 7 percent decrease in new inventory as compared to September 2007
Solds (Under Contract) = 114. This is a 317 percent increase in buyer demand as compared to September 2007

Sterling - 20165 - September 2008

New listings = 52. This is a 27 percent decrease in new inventory as compared to September 2007
Solds (Under Contract) = 31. This is a 172 percent increase in buyer demand as compared to September 2007

Sterling - 20166 - September 2008

New listings = 11. This is a 45 percent decrease in new inventory as compared to September 2007
Solds (Under Contract) = 15. This is a 214 percent increase in buyer demand as compared to September 2007

The 20164 zip code had the largest increase in buyer demand out of the three zip codes in Sterling. In fact, Sterling's 20164 zip code had more sales and the highest increase in buyer demand in September 2008 out of any zip code in Loudoun County.

But the rate at which new listings came on the market in the 20164 zip code remained relatively steady as compared to last year. This is mostly due to the large number of sub-prime loans and distressed properties found in that zip code which are helping fuel new short-sale and foreclosure/bank-owned listings.

Also.. notice that there were more sales in that zip code than there were new listings. That's great for sellers and the real estate market in general, but not-so-great for buyers looking in that zip code.

Related Articles

Ashburn Real Estate Market Statistics (20147, 20148) - September 2008

Leesburg Real Estate Market Statistics (20175, 20176) - September 2008

No "Summer Slump" For Loudoun County Real Estate In 2008

Loudoun County Real Estate Market Statistics - 1st Half 2008 vs 2007

Loudoun Real Estate Inventory Levels Well Below National Average

Ashburn Real Estate Market Statistics (20147, 20148) - September 2008

Wed, 08 Oct 2008 12:04:45 -0500

Here are the September 2008 statistics for the Ashburn real estate market (20147 and 20148 zip codes):

Ashburn - 20147 - September 2008

New listings = 86. This is an 11 percent decrease in new inventory as compared to September 2007
Solds (Under Contract) = 71. This is a 40 percent increase in buyer demand as compared to September 2007

Ashburn - 20148 - September 2008

New listings = 31. This is a 9 percent decrease in new inventory as compared to September 2007
Solds (Under Contract) = 31. This is a 258 percent increase in buyer demand as compared to September 2007

Though buyer demand increased significantly year-over-year in the 20147 zip code of Ashburn, it really jumped in the 20148 zip code. In fact, the 20148 zip code had the same number of sales last month as it did new listings (31).

These stats confirm what's being felt on the "street" - there are less properties to choose from and more buyers fighting for the same property. This is especially true with properties in the lower price brackets and those that are great deals. This bodes well for sellers and the market as a whole though it's not news most buyers want to hear.

Related Articles

Sterling Real Estate Market Statistics (20164, 20165, 20166) - September 2008

Leesburg Real Estate Market Statistics (20175, 20176) - September 2008

No "Summer Slump" For Loudoun County Real Estate In 2008

Loudoun County Real Estate Market Statistics - 1st Half 2008 vs 2007

Loudoun Real Estate Inventory Levels Well Below National Average

IRS First Time Home Buyer Credit FAQ's, Is It a Gimmick?

Wed, 08 Oct 2008 12:00:46 -0500

Curious as to how the IRS "first time home buyer credit" works, whether you qualify and how to take advantage of it? There's a good FAQ section over at FederalHousingTaxCredit.com that goes over the "first time home buyer credit" in detail.

Here's an excerpt:

1. Who is eligible to claim the $7,500 tax credit?

First time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.

2. What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3. How do I claim the tax credit? Do I need to complete a form or application?

Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to be sure they qualify for the credit under the income limits and first-time home buyer tests.

4. What types of homes will qualify for the tax credit?

Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.

For the full set of questions and answers regarding the IRS "first time home buyer credit", check out the FAQ section over at FederalHousingTaxCredit.com.

***NOTE: Before you get too excited about the tax credit, make sure you go through all the FAQ's and then go over to CNNMoney.com to read this post about how it may not be all that it's cracked up to be.

Heading to Vegas for RE Blog World and New Media Expo

Fri, 19 Sep 2008 04:53:26 -0500

I'm off to Vegas! No, not quite for pleasure (though I'm sure to have at least a little bit of fun). I'll be attending RE Blog World, the Real Estate & Mortgage Conference at Blog World and New Media Expo at the Las Vegas Convention Center.

The three day event (today through Sunday) features more than 50 seminars, panel discussions and keynotes from iconic personalities on the leading-edge of online technology, and internet-savvy business. Not to mention all the pre and post session networking with these folks...

RE Blog World presents a unique opportunity for myself and others attending to learn from the top new media and blogging personalities, inside and outside of the real estate vertical. And these folks aren't just bloggers or tech-geeks. They're extremely talented, skilled and successful real estage agents, brokers and mortgage professionals - some of the top guns in the industry.

I look forward to learning a great deal at RE Blog World and implementing that new knowledge and those new technologies into my daily business as a Realtor here in Loudoun County. This will further elevate the level of service I provide to my clients and fellow real estate professionals.

Here are some of the speakers at RE Blog World:

Dan Green

Daniel Rothamel

David Gibbons

David Smith & Rich Jacobson

Dustin Luther

Jason Berman - Event Organizer

Meet our moderators. Jan O'Brien, Kevin Boer, & Pat Kitano

Todd Carpenter - Event Organizer

To my clients and those looking to contact me... I will have full access to my cell phone, email, IM, Twitter, Facebook, Skype, etc. If you wish to see a property between today and Sunday, let me know and I will have a fellow Realtor I trust and have worked with for years show you the property and be available to you as well.

What, How Much Are Buyer's Closing Costs in Virginia?

Fri, 19 Sep 2008 04:51:43 -0500

Two questions I get asked often by buyers are, "What are closing costs?" and "How much are closing costs?" Let's answer those two questions in detail.

"What are closing costs?"

Closing costs are the costs/fees associated with purchasing real estate. These costs/fees are in addition to the sales price and are paid to all the other parties involved in a real estate transaction. Closing costs are due at settlement and must be paid in order to complete the real estate transaction.

"How much are closing costs?"

In Virginia, closing costs typically run about 2 to 3 percent of the sales price of the property. They can vary depending on the sales price of the property, the vendors you use and the amount and type of financing and loan program you go with.

Here's a break down of a buyer's closing costs in Virginia:

Lender's Fees

These fees vary from lender to lender. Different lenders charge different amounts for the same items and may charge additional fees depending on whether they're a direct lender or mortgage broker (make sure you check out my post on issues surrounding mortgage brokers).

Application Fee - Some lenders charge application fees to cover their upfront time and costs associated with qualifying you. The application fee is usually not refundable even if you don't close on the loan, but some lenders will credit the application fee back to you if/when you settle. This fee ranges from a couple to several hundred dollars.

Credit Report - Every lender you apply with will pull your credit report. This typically costs between $50 and $70 depending on the lender (even though they all get it from the same place).

Loan Origination Fee - Some lenders charge this fee to cover their administrative costs. Some charge it and some don't. But the ones that do tend to have lower rates. (They have to make money somehow, on the front end or the back end) The amount you see most often is 1 percent of the loan amount.

Discount Point(s) - This is a one-time fee paid to the lender to lower the mortgage rate on your loan. One point equals one percent of the loan amount. Every point you pay wil lower your rate a certain amount, typically between 1/8 and 3/8 of a point. The point(s) is either paid up front or added to the total amount of the loan.

Appraisal - Every lender requires an appraisal and you, the buyer, pay for it. An appraisal typically costs between $350 and $450 depending on the size of the property.

Flood Certification - All lenders will require a Flood Certification determining whether or not your property is in a flood plane. The reason for this is because you must purchase flood insurance if you're property is in a flood plane in order for the lender to approve your loan. This typically costs less than $20.

Tax Service Fee - In most cases, lenders engage a third party to monitor and/or handle the payment of your property tax bills. The Tax Service Fee covers the cost of this service. The purpose of the tax service fee is to ensure that the payments are made on time, and to prevent tax liens from occurring. This fee is typically under $100, but varies from lender to lender.

Title Insurance - Check out my post on Title Insurance for more information on what this is and the cost of Lender's and Owner's Title Insurance is.

Other Lender Fees - Different lenders have different fees and some may charge them and some may not. If you see a fee on your Good Faith Estimate that you're unsure of, make you sure you ask what it's for. A lot of these fees are often referred to as "junk fees". These fees can vary from a few hundred to a thousand dollars.

Pre-Paid Items (including monies put into reserves)

These are items that lenders require you to pay in advance at settlement. Some of these amounts are paid directly to the lender while others are collected by the lender and put in an escrow amount and paid out at a later date on your behalf. Any monies left in your escrow account once you sell the property are given back to you. Different lenders have different guidelines as to how much they collect in reserves. Here's what they are and how they work:

Remaining Month's Interest - Even though you pay your mortgage in arears (for the previous month), the lender will collect the interest on your loan for the remainder of the month in which you are settling. For example...if you settle on the 15th, the lender will collect the interest from the 15th through the end of the month. You will pay this amount at settlement (on the 15th). The amount of interest depends on the loan amount and the interest rate.

Mortgage Insurance Premium/Private Mortgage Insurance (MIP/PMI) - If your loan amount is more than 80% of the property's value, lenders will charge you a premium. Much like Discount Points, this fee is due at settlement or added to the financing in the form of a higher interest rate. If you pay upfront, the lender will also put about 2 months worth of premium payments into your escrow account as a cushion. You don't see this often anymore because most borrowers get a second loan rather than paying for MIP/PMI. MIP/PMI can cost several hundreds of dollars and is usually not tax-deductible. This premium is not cheap and varies by lender. Check with your specific lender for more details.

Hazard Insurance (aka Home Owner's Insurance) - This protects you as the home owner from things such as fire, wind, storm and other natural disasters. This type of insurance does not always include hurricane or flood insurance, which is not common in Loudoun County/Northern Virginia. But if you do live in a flood zone, you will be required to also purchase flood insurance. The lender will typically collect one full year's premium plus about 3 months worth of premium payments to be put into your escrow account as a cushion. You can opt to pay this directly to the Hazard Insurance company yourself, but you must provide proof of coverage and payment prior to settlement date. The cost for this insurance is typically $2.50 per $1000 of the sales price.

Property Taxes - These vary by jurisdiction/county and are typically paid twice per year. A part of your monthly mortgage payment includes your property taxes. Each month's amount is 1/12 of that year's tax bill. The lender will pay your taxes on your behalf as required by the jurisdiction/county you live in (typically twice per year). You will get a notice in the mail from saying that the property tax you owe is "X" amount, but you should not pay that bill since your lender is paying it on your behalf. Lenders typically require 3 months worth of reserves in your escrow account.

Homeowner Association/Condo Association Fees - Some lenders require that this amount be paid upfront. This amount depends on what your speficic Homeowner's Association/Condo Association charges per month.

Transfer Fee - This is the fee that Homeowner Association's/Condo Association's charge all new homeowners. This fee covers their administrative costs associated with getting you set up in their internal system (and their way of saying "Welcome to the neighborhood!"). This fee can range from $50 to $150.

Settlement Company Fees

These are the fees charged by the Settlement Company and some of the other third parties that perform work on their behalf. These fees include the city, county and state fees those governements charge as part of the real estate transaction.

Settlement Fee - This is the fee charged by the settlement company for performing the actual settlement. This fee can range from $190 to $500+ depending on the settlement company.

Abstract or Title Search - This fee is usually paid out to a Title Search firm that specializes in doing title searches. This fee is typically between $100 and $200. Note that this fee may be bundled into the "Settlement Fee".

Title Examination - All settlement companies have their in-house lawyer examine the title for discrepancies and "red flags". This fee is typically between $100 and $150. Note that this fee may be bundled into the "Settlement Fee".

Title Insurance Binder - The settlement company has to prepare a Title Insurane Binder for the lender. This typically costs between $175 and $250. Note that this fee may be bundled into the "Settlement Fee".

Delivery/Courier Fees - This covers the charge for having a courier hand-deliver and record the deed in Land Records at the local courthouse. The fee for this is between $50 and $75 depeding on which courier company the Settlement Company uses.

Survey (only applies to town homes and single family homes, not condos) - This usually costs between $275 and $350.

Recording of the Deed and the Deed of Trust (Mortgage) - State Fees: $2.50 per thousand based on sales price AND the loan amount. County Fees: $0.8333 per thousand based on sales price AND loan amount. (Some people use another equation which comes out to the same amount: $33 plus $3.34 per $1000 of the sales price and $46 plus $3.34 per $1000 of sales price) Note that these are actually 4 separate fees, one for the deed AND one for the deed of trust for the county in addition to one for the deed AND one for the deed of trust for the state.

Power of Attorney (if applicable) - The fee varies from company to company. The fee for recording the Power of Attorney at the local courthouse is $42.

Misc. Fees

Home Inspection - Not necessarily a "closing cost" in the traditional sense, but still a cost incurred by a buyer as part of the transaction. The fee ranges from $250 to $600+ depending on the size/square footage of the property.

Radon Test - Not necessarily a "closing cost" in the traditional sense either. The test costs between $100 and $150 depending on whether you bundle the Radon Test in with the Home Inspection with the same vendor.

Pest Inspection (if applicable) - This is usually paid for by the seller, but may be paid by the buyer sometimes. Typically runs between $35 and $60.

If you have any questions or concerns, don't hesitate to drop me a line - 703.582.6900 or danilo.bogdanovic@gmail.com.

Mortgage Rate Round-Up - September 13, 2008

Fri, 19 Sep 2008 04:49:08 -0500

This was a great week for borrowers locking in their rate - rates plunged almost half a point. Rates are below 6 percent. Several loan officers I spoke with yesterday said that they saw rates as low as 5.75 percent with no points.

Why did rates suddenly plunge? They plunged due to the Fannie Mae/Freddie Mac take-over by the Feds which brought some much-needed calm and (some) stability to the market. Now that the Feds are running Fannie and Freddie, GSE mortgage-backed securities are more appealing to investors. That effect is felt by you and I in the form of lower rates.

What will rates do in the short to mid term? Many are expecting rates to stay at or below 6 percent through the end of the year (and the election).

What affect does this have on the real estate market in Loudoun County? We should see a tick up in buyer demand as buyers take advantage of the very low mortgage rates and prices. This summer saw less inventory and greater buyer demand and this trend should accelerate this month and next due to the even lower rates.

Source: Darran Anthony, Suntrust Mortgage and BankRate.com

LoudounExtra.com and ABC 7 News Now On Twitter

Fri, 19 Sep 2008 04:47:50 -0500

When Twitter first came out, it seemed to just be a "tech geek" communication platform with no practical business applications. Well, that's changing. Mass media such as LoudounExtra.com (Washington Post) and ABC 7 News have all gotten on Twitter and are using it to connect with those in the community.

Feel free to follow LoudounExtra.com and/or ABC 7 News to keep up with what's going on in the area as it happens. And feel free to also follow me on Twitter if you'd like.

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A Way To Find Others With Similar Interests

Court Ruling On Purcellville High School, "Loudoun 5" Now "Tuscarora"

Fri, 12 Sep 2008 13:56:17 -0500

The Virginia Supreme Court ruled today that the Loudoun County Planning Commission must review its plans for a new high school to be located just outside the town of Purcellville. Here's an excerpt from the article on Loudoun Extra:

"The town has fought the county for years on the issue, objecting that the location of the high school differs from what was contemplated in a growth plan adopted in 1995, and that the planned school would bring unwanted traffic and infrastructure problems to an area that has already experienced fast-paced growth.

The nuanced court ruling asserts that the location of the planned school is at odds from what was in the original growth plan - a point the county had disputed. That will trigger a review by the planning commission with jurisdiction over the area. The court ruled today that commission is the county's, not the town's.

The ruling seems in some ways a setback for the town, leaving relatively few roadblocks to construction of the school."

In a related story, the Loudoun County School Board has officially named the county's newest high school, to be built in Leesburg. It's official name will be "Tuscarora High School" after an American Indian tribe. Find the full story and a map of the proposed school site over at Loudoun Extra.

For more about Loudoun County including real estate market statistics and resources, check out LoudounScene.com and LoudounForeclosures.com.

Pulte Homes King of Customer Satisfaction in Loudoun County

Fri, 12 Sep 2008 13:35:46 -0500

Pulte Homes has been ranked as the new home builder with the top overall customer satisfaction in the Washington, DC area including Loudoun County, VA by J.D. Power and Associates. Pulte Homes was the overall winner also ranking as the top builder when it comes to overall customer satisfaction in 11 U.S. markets and in new-home design in 6 markets.

Van Metre Homes and Winchester Homes came in 2nd and 3rd in the Washington, DC area including Loudoun County, VA.

This is of no surprise to me based on my personal experience selling several homes at Pulte's Hamlets at Red Cedar community off of Evergreen Mills Rd in Leesburg (around the corner from Brambleton). Their sales staff has never been pushy nor tried to push options. Their building supervisor and his staff have been excellent and have corrected any problems immediately and without hesitation. The pre-drywall and final home inspections have all found very few items that needed repair. And the post-sale inspections conducted by the home owners (at 3 months and 11 months after settlement) have all had very few items on them and were corrected immediately.

Pulte Homes does things right from the start, follows through with what they say and they focus heavily on putting the customer first. These are all qualities that I wish other builders would take note of and exhibit.

Pulte Homes Communities in Loudoun County

Pulte Homes - Hamlets at Red Cedar - Manor Collection (Leesburg)

Pulte Homes - Hamlets at Red Cedar - Stoneridge Collection (Leesburg)

Pulte Homes - Windermere (Ashburn)

Loudoun County Acquires 257 Acres For Regional Park, Broadlands Hospital Approved

Mon, 08 Sep 2008 21:17:59 -0500

This just in...the Loudoun County Board of Supervisors today approved the acquisition of 257 acres from the Hanson Family Partnership for a regional park serving the southeastern part of the county (the Route 50 corridor and Dulles South planning area). And the Loudoun County Planning Department gave the initial go-ahead to build the Broadlands Regional Medical Center.

Acquisition of 257 acres

Part of the deal included a land exchange of a county-owned 5-acre park site located off of Old Ox Road (Route 606) to Dominion Power and the U.S Department of the Interior. The land will be used to construct two monopole transmission lines as part of the powerline approved in 2004.

The Hanson Family Partnership has agreed to sell the property for $5 million, well below market value, to establish a regional park in memory of Hal and Berni Hanson. The park will be located at 23862 Evergreen Mills Road, near Fleetwood Road, in Ashburn. Dominion Power is providing the funding for the purchase in exchange for the utility's ownership of the five-acre parcel.

Final settlement on the land and approval of the land exchange is still about a 7 to 13 months out.

For the full story, check out the article on Alert Loudoun.

Broadlands Regional Medical Center

The Loudoun County Planning Department gave the green light Friday to HCA Virginia's plans to build a full-service, 164-bed hospital in Ashburn known as the Broadlands Regional Medical Center (BRMC).

If the Planning Commission and the Board of Supervisors approves BRMC, HCA officials hope to break ground on the hospital in 2009 and open the facility in 2011.

Not everyone is a fan of the new hospital, especially Innova Loudoun Hospital who doesn't want a competitor only 5 miles away.

The Planning Commission will hold an off-site public hearing to review BRMC's application at 6 p.m. on Sept. 25 at Eagle Ridge Middle School in Ashburn.

For the full story, check out the article at Living in LoCo on LoudounExtra.com.

Update on Brambleton Development, Builder Quick Deliveries, New Homes

Mon, 08 Sep 2008 21:15:40 -0500

Here's an update on development in Brambleton including quick deliveries/spec homes available from the various builders within the community:

Brambleton Development Update

Beacon Terrace Community Pool is now open. It's Brambleton's second pool. The new pool consists of a main pool with a waterfall, spa, wading pool, club room, outdoor fireplace and grill, music zones throughout and wireless connectivity
The Brambleton Town Center security staff has ditched their cars for eco-friendly Segways.
The Blue Ridge Grill is anticipated to open on September 24th
Winwood, Brambleton's first day care provider is set to open late Spring '90. Site development will begin soon at the Creighton Road location
An update on the Fitness Club at the Brambleton Town Center is coming soon

Quick Delivery/Spec Homes

Gulick Group - The Gulick Group builds estate style, 4-sides-brick homes in Brambleton. Some home sites have water views and the option of a 4-car garage.
1. Currently, there are 2 immediate deliveries from their Garden Terrace Series priced at $945,900 and $1,269,500 (the Hampton and Townsend floor plans).
2. There is also an Ashcroft home from the New American Series available for a winter delivery with views of water and parkland. This home has almost 5,000 square feet on 3 finished levels including a walk-out basement.
Miller and Smith - This builder builds smaller, more affordable homes for those looking for high-quality, but not all the space and sticker price of an estate home.
1. Rhapsody (home site 1273) - September Delivery, $586,770 Approx. 3,400 sq. ft.
2. Rhapsody (home site 1274) - October Delivery, $573,078 Approx. 3,400 sq. ft.
3. Rhapsody (home site 1306) - October Delivery, $593,660 Approx. 3,400 sq. ft.
4. Clara Bow (home site 967) - October Delivery, $661,360 Approx. 4,200 sq. ft. (backs to trees)
5. Clara Bow (home site 966) - November Delivery, $668,840 Approx. 4,200 sq. ft. (backs to trees)
Stanley Martin - This builder competes with Miller and Smith at this price point.
1. 23223 Christopher Thomas Lane - Homesite 1194 - Elden Model - $639,990. 4 bedrooms, 5.5 baths, finished lower level w/private bonus room. Move in Fall/Winter 2008.
2. 42576 Ringneck Place - Homesite 1804 - $617,795. 4 bedrooms, 4.5 baths, finished lower level. Move in Fall/Winter.
3. 42481 Spring Splendor Dr - Homesite 1801 - $584,050. 3 bedrooms, 3.5 baths, finished lower level. Move in Fall/Winter.
4. 42477 Tourmaline Lane - Homesite 1833 - $569,990. 4 bedrooms, 3.5 baths. Move in Fall/Winter.
5. Model Home with lease back - 42477 Ringneck Place - Homesite 1680 - $649,990. 3 bedrooms, 3.5 baths, over 3,300 finish SF.
Miller and Smith Town Homes
1. Site 1347 - September Delivery - $439,990. Grand Houdini I end unit, corner site with wooded view. Three finished levels and 2,669 finished sq. ft. Standard features include granite kitchen counter,s extra third full bath, hardwood flooring in the kitchen/breakfast/great room, oversize tile, upgrade padding, bonus electrical and home theater pre-wire and more. For a limited time, Miller and Smith is offering a "Staycation" in your new home.
Beazer Homes Condos
1. September deliveries available. Prices range from the low $300s, depending on the model and if it is an interior or end home.

The Brambleton Town Center is still a ways from being completed. Here's a map showing the future development of the town center and the businesses coming in (click to enlarge):

If you'd like more information about the Brambleton community, builders or available lots/homes, please don't hesitate to contact me - danilo.bogdanovic@gmail.com or 703.582.6900 (cell).

Demand For Distressed Properties Outpaces Supply For First Time

Thu, 04 Sep 2008 15:56:39 -0500

Here's a graph showing new listings (supply) versus solds (buyer demand) for 2008 (click to enlarge):

As for inventory, there was a spike in new distressed property listings last spring, but it's back down to the 300 per month level.

Related Articles

No "Summer Slump" For Loudoun County Real Estate In 2008

Loudoun County Real Estate Market Statistics - 1st Half 2008 vs 2007

Loudoun Real Estate Inventory Levels Well Below National Average

No "Summer Slump" For Loudoun County Real Estate In 2008

Wed, 03 Sep 2008 16:34:50 -0500

Many people talk about the July/August "Summer Slump" and how Loudoun County home sales "mysteriously" drop. Well, there's been some truth to that in years past. But not this year. In fact, 2008 had one of the most fast paced residential real estate buying summers in recent years.

To show you what I'm talking about, let's look at a comparison of the summer of 2007 and this summer (2008)...

In 2007, we did see a bit of the "summer slump", specifically in July and August. Here's a graph showing the number of new listings coming on the market (supply) and the number of homes selling/going under contract (demand):

As you can see from the graph, the rate of new listings coming on the market stayed fairly steady only dropping 7.5 percent from June '07 to August '07. But buyer demand dropped 26 percent from June '07 to August '07, which is a significant amount. A significant drop in buyer demand compared to only a slight drop in inventory levels is one of the main reasons why prices decline. And a drop in prices is exactly what happened during the summer of 2007.

Now let's look at what happened this summer:

This graph tells a completely different story. The rate of new listings coming on the market dropped 13 percent, nearly double that of 2007. This meant less new (and existing) inventory on the market. Looking at the number of solds, it's clear that buyer demand actually increased from June to July and was still higher in August than it was in June.

So what does this mean to buyers and sellers?

For sellers, it means:

Less competition
More negotiating power
Higher chance of selling faster if priced correctly

For buyers, it means:

Fewer homes to choose from
Less negotiating power when it comes to price
Higher chance of competing/multiple offers on the properties that are "deals"

If you're a seller who was waiting for this year's "Summer Slump" to be over before listing their property, you missed a great opportunity. With many sellers waiting until the "fall market" to sell their property, it'll be interesting to see what happens with inventory levels and buyer demand this month and next.

For more information about the Loudoun County real estate market, check out LoudounScene.com.

Moorefield Station Developer's Update

Wed, 03 Sep 2008 16:32:22 -0500

Representatives from the developers of Moorefield Station gave a presentation today at the Dulles Area Association of REALTORS® office in Leesburg, VA. The project is being done by Clark Construction and Edgemoore Real Estate Services, a sbusidiary of Clark Construction.

Here are some of the specifics:

The project was approved in 2002 by a "Smart-Growth" administration
The project is about 9.5 million square feet of mixed-use space
The proposed Dulles Metro Rail will end at Moorefield Station
Moorefield Station is being compared to Reston Town Center and Rockville Town Square - "a community defining place"
Civic plaza, art center, concert stage, retail, restaurants, office space, etc
Bike/walking trails will connect to other trails throughout Loudoun and the W&OD Trail

Loudoun County is also looking for a new administrative/government center. Here are some details:

Loudoun County sent out RFP in 2007 due to need for more space for administration/employee
Loudoun County wants to own space rather than leasing it
Need 500K square feet with expansion to 800K total
Final 3 sites for Loudoun Administration/Government Center were narrowed down to Moorefield Station, Oaklawn and The Village at Leesburg
Loudoun County will announce the final location of its new government site sometime early next year

The also talked about the economic development and impact. Here are some of the stats:

$25 million in yearly real estate taxes from new development
New jobs from businesses moving to Loudoun from surrounding counties and from out of state
Will stimulate additional commercial development as companies/businesses expand
Dulles Metro Rail is predicted to produce an estimated $41 million in taxes

Some other points:

Not "green buildings", but LEED certified
Can't do a "Kiss and Ride" due to layout
Rail will be on one side while entrance will come in on other side - that may prove to be a little tricky
George Mason University (GMU) has been in talks wtih Moorefield Station about new campus, but GMU wants free land

Claude Moore Charitable Foundation, which has given over $9 million in grants to local organizations is donating 27 acres to the project along with funding assistance. Part of the future profits from Moorefield Station will go back to the Claude Moore Foundation to go back to the community.

In a nutshell, it's a ways out, Loudoun County hasn't chosen it's new administrative/government office site and the Dulles Metro Rail is still in limbo. I'll keep you posted as new things materialize...

For more information about the Loudoun County real estate scene, check out LoudounScene.com.

Mortgage Rate Round-Up - August 23, 2008

Mon, 25 Aug 2008 13:28:03 -0500

Rates dipped down for the second straight week despite the not-so-good news about inflation. Wholesale prices jumped 1.2 percent in July, much more than expected (and at the fastest pace since 1981). Normally, you would expect interest rates to rise on such news, but they didn't.

Despite the lower rates, mortgage applications fell to their lowest level in almost eight years. The Mortgage Bankers Association's index of loan applications was down 1.5 percent compared with the previous week, and was down 34.2 percent compared with the same week last year.

One thing to keep a close eye on is the Fannie/Freddie situation. Both suffered further losses to their stock prices especially after the Barron's article "The Endgame Nears for Fannie Freddie" was published August 18. Some say that a government takeover would lead to an increase in rates because of uncertainty regarding the transaction. Others say that a takeover would end the period of uncertainty, not start one, and the effect on rates would be minimal, if any. We'll have to wait and see...

Source: BankRate.com

***UPDATE: The Department of Veterans Affairs (VA) is raising their loan limits from $417,000 to as much as $729,000 in some areas. The increases are effective immediately under the Housing and Economic Recovery Act of 2008.

Ameridream and Nehemiah Downpayment Assistance Programs In Jeapordy

Mon, 25 Aug 2008 13:26:42 -0500

The Ameridream and Nehemiah seller-funded downpayment assistance programs are in jeapordy. They may be eliminated this fall unless Congress approves the FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694).

For more on this story, check out the post over at LoCo Real Estate Musings. Here's an excerpt:

The Department of Housing and Urban Development apparently would rather eliminate these programs entirely than regulate them.

...the bottom line is that thousands of potential homebuyers will not be able to purchase homes if the programs are discontinued.

If you're a future home buyer that may be interested in utilizing seller-funded downpayment assistance programs such as Nehemiah or Ameridream, take the time to check out the links and make your voice heard.

Further Reading

http://www.supporthomeownership.com/

Groundswell - Fighting To Save Downpayment Assistance

Your Asking Price Determines If and When You Sell...Period.

Thu, 21 Aug 2008 14:11:40 -0500

Not all sellers understand that their asking price is the ultimate determination of whether they will sell their property or not. Not only does the asking price affect if you'll sell, but when and for how much. The longer it takes you to get to the correct fair market value asking price, the greater your Days On Market are and the more of a negative stigma buyers will have of your property. This can translate into lower offers and ultimately, a lower selling price.

Sure, how well your agent markets the property matters. But even the best agent in the world can't fool today's buyer and a good buyer's agent. Today's buyer has access to way too much information and data to overpay for a property. And a good buyer's agent will provide comps and their personal expertise to even the most uniformed buyer so that they don't make a bad decision and overpay for a property.

If you're wondering how much of an effect getting the asking price right has on if and when your property sells, consider this...

I took a look at the last 30 properties (not including foreclosure/REO or short-sale properties) that have sold (gone under contract) in Loudoun County. Here's what I found:

These properties went under contract in an average of 25.4 days of their last price change/adjustment
Some of these properties had been on the market for months, but once they adjusted their price to or below the correct current market value, they sold in less than a month
Some of these properties went under contract in as little as 4 days and had multiple offers
Some of the properties that sold were at the $700K mark and a few were over $800K so even the properties in the upper price brackets are selling quickly when priced correctly

No matter how well known your agent is, how good your marketing plan is or how many open houses you hold, it comes down to price.

It takes a good and gutsy agent to be honest and share with you your property's real and accurate market value - no matter how much lower it is than you thought. It's then up to you to listen to them, review the comps and data (aka CMA) and be objective with yourself and the situation. Once you do that and then list your property at a price that reflects today's fair market value and market conditions, you will actually sell it.