Per an email I received from a loan officer I work with, Well Fargo's CDMP loan program will now be available with as low as a 2% down payment.  If you would like more information on this program and how it may fit into your purchase of a home, feel free to conact myself and/or your local Well Fargo Mortgage Consultant.

We've all been there.  You're either still living with family or renting a place that reminds you everyday that you don't own it.  Every time you stare at the white walls or sleep in the same room you grew up in the questions crosses your mind:

Should I finally "grow up" and buy a home?

Well, it's actually not as straightforward as you think.  If you're not ready emotionally and financially to take the path of home ownership, the emotional and financial strain can easily outweigh the home ownership experience.

A home is something to be enjoyed.  If you strictly look at it from an investment standpoint you will more than likely not a home that you like and it will be a decision you'll regret.  Part of the fun of owning a home is personalizing it and being able to choose the specific things you want (appliances, flooring, paint, etc.). 

Ion the same token, if owning isn't possible or just not in the cards, it's always a good idea to keep your option open.  Budget you money so you can save for a down payment and start seeing if the are you want to settle down is what you like and financially feasible.

My last point (and this I can say from personal experience), the younger you are when you purchase you first home the better it is in the long-run (not to mention you'll be the envy of all your friends who still rent).

The more competitive real estate market and the wealth of information that buyers have at their dispoal make it that much more important for home sellers to be one step ahead.  Having your home inspected before you list is one of many things that can help.

Basically, the sellers orders a home inspection in the same way a buyer does once they have a ratified contract on a home.  The inspector comes out and does a thurough inspection of the property.  A report is then generated for the seller.

The seller having one of these before the intial has many advantages including:

• the ability to correct any deferred maintnence issues before a buyer discovers them as part of their home inspection.  When that happens typically there are deadines and the pressure of negotiations and moving plans can affect good judgement.  Also, buyers tend to demand more when they find the issue.
• Transparency.  Many buyers feel more at ease making a strong ofer on a property when they feel at ease about the property.  A home inspection report give the buyer food for thought and a glimpse into the overall conditon of the property.  There are instances of buyers also waiving their home inspection contingency based on the results of a pre-listing home inspection report.
• any major isues that the seller cannot or does not want to fix can be disclosed.  This helps the seller comply with any local property disclosure laws.

This one step can save many headaches and is one of the major steps in positioning your home to get top dollar in today's competitive market.

It ceases to amaze me that in this day in age of digital photography we still have to discuss the importance of the quantity and quality of photos used in marketing a home.  As i browse through the MLS it blows me away at the number of listing where there are not photos or just one of the front of the home (many times not even current).  MRIS (my local MLS) recently changed their policy and now allow up to 30 photos to be uploaded to a listing card for free.  This definitely makes it an even playing field for ALL listings to have ample exterior and interior shots to show off the home's positives (and negatives).

Especially in this competitve maret. photos cam be the difference of a buyer wanting to see your home first or just "at the end if we have time".  With the cost of gas rising and people having less liesure time outside of work, most are searching the internet for homes and/or looking at MLS email updates from their REALTOR.  I know many of my buyer clients flag homes with no photos or just one exterior shot asking me "what is wrong with that house?".

I know the counterpoint to this is that posting pictures of a home in not so good shape will scare off buyers.  I completely disagree with that.  As listing brokers and agents we have a duty to market the home in its current condition at the time of listing.   If an agent is properly consulting their clients and pricing the home properly for its conditon, then when (and if) they take the listing they should be ready to show off the good, bad, and ugly of the home. 

Today's buyers are too savvy and have too much information being thrown at them to be playing the "there are no photos but if you jsut come and see the house you'l love it" game.  As a seller, they are your target audience.

My inspiration for this post is all the TV commercials for www.pbpipe.com and the replacement settlement they are advertising. 

Click here to view the official notice

Polybutylene pipes were used by many home builders in the 1980s and early 1990s.  It was touted for being easier to install/work with and many times using a manifold system to be able to shut off individual pipes if there were issues.

The main issues lies in the plastic deteriorating over time due to chemicals in the water reacting with the polybutylene.  There are many schools of thought as to the longevity of the system.   However, this post is meant for education/awareness and not a pro/con PB pipe discussion.  To note, many homes have had their pipes replaced already (especially when the original settlement started in the mid 1990s).

As a consultant, I let my clients formulate their own opinions from the facts available.  If a buyer points out the gray pipes and asks about them, I do say what they are and then refer them to resources to research.  However, many know about them already from family and friends.  I have had clients outright tell me it's a "time bomb" plumbing system.  If they have not heard of it, they usually find out at the home inspection and then they research and form their own opinion (had a buyer void a contract on one of my listings becuase of the existance of PB pipes which were in working order). 

In conclusion, we cannot predict the future.  There is always going to be a product or technique that looks good in the short run but has possible issues in the long run.  Owning a home is a reponsibility and if you cannot handle the possibility of items going wrong, then as I tell my buyer clients you are in for a long ride.

I wanted to contemplate on this issue since many of my neighbors have or are considering replacing the original windows in thier homes.

History:  My neighbohrood is comprised of colonial style homes built by Richmond American in 1987.  the windows used were double-hung dual pane wood frame windows with full length screens.

Here is an itemized list of what I would have to replace: 

• 9 36″X72″
• 3 27″X72″
• 2 24″X72″
• 9 36″X60″
• 2 24″X60″
• 3 27″X54″
• 2 22″X32″ (casements)

That's a total of 30 windows folks and 14 of them are considered oversized therefore requiring tempered glass per local codes.  I had a few estimate done when In early 2006 right after I moved in.  The list prices ran betwen $21,000-41,000 depending on the quality of windows.  My average gas and electricity bills together run between 175-350 epending on the season and tempature extremes.  So if I am promised a 30% reduction in those that would save me at most 100 per month.  At that rate the windows would pay for themselves in...

DRUMROLL.....................................

At least 16 years.

My overall opinion is that buying new windows just for hte promise of energy savings is probably not going to pay off.  If you windows are very drafty or do not close well or if they are deteriorating at a rapid pace those are valid reason to investigate replacement windows.  With any estimate calculate the time it will take to recoup the cost of the windows with the energy savings.

I personaly took the route of having a company come out and copletely remove and replace the original metal "guts" with new plastic ones.  then they reinstalled all of hte windows adjusting them so they would close completely.  This was done including fixing a wapred frame on one of the windows for under $3000.

I know I will get flack about this since window replacement was and is a big thing right now.  However, I believe in working with a home's existing features whenever possible and that not all capital improvement to a home pay off as advertised.

So you see the new listing that just seems too good to be true.  The pictures look good it has everything you want and it's below the other active listings.  You talk to your agent and the four words you hear are "it's a short sale".

What is a shot sale?  It is when seller owes more on a home than its market value.  The lender(s) have to decide if they will let the property go and how to deal with the negative equity. 

There are several things to consider when looking at a short sale and embarking on the offer process:

• Has the short sale already been approved.  Some lenders will approve a net proceed before the home is even listed so that buyers will feel more comfortable making an offer.  Some lenders will not start the approval process until an offer is ratified by the buyer and seller.
• Has the seller submitted all required paperwork?  Many lenders will only consider a short sale if there is financial hardship.  Submitting the required short sale package will show the seller has taken the time to explain their situation and collect all required documentation.
• Do any of the mortgages on the property have mortgage insurance?  If yes then the lender may want to wait for foreclosure so they can file a claim and receive a payout.
• Is your offer below what properties are selling for?  The lender will solicit the opinions of other REALTORS® as to what the home would go for on the open market or as a foreclosure listing.  If it is in the lender's best interest to end up the property in order to sustain a smaller loss, they will.
• Is more than one lender involved?  When a home goes to foreclosure normally the lender holding the first and larger trust ends up owning it.  The second lender will usually want the short sale so they can recoup some of their initial investment.  If the property goes to foreclosure normally the second lender receives nothing.
• What stage of default is the loan(s) in?  Most of the time when a short sale is listed the seller is already behind in their payments and has no plans to catch up.  Unless arrangements have been made otherwise,  the property could go up for foreclosure while you are waiting to get an answer on a short sale.

The banks can take months to come up with an answer.  They are overwhelmed and the properties they own usually take priority.

I have not personally closed a short sale but from reading the facts, showing short sale listings and talking with some of the listing agents handling them, I have come to the conclusion that it's mostly chasing a slim chance at a sale.  Many buyers wait it out to see if the lender ends up buying the property back and listing it as an REO property.

I wanted to discuss this subject because I feel is a one of the most contentious issues discussed between potential sellers and real estate professionals. Many sellers feel their home is fine the way it is and a potential buyers will love the existing wallpaper or the vinyl floor in the kitchen that is from when the house was originally built.   Truth is buyers are not that naïve anymore.  Although I discuss with my buyers that they need to look at the bones of the house and overlook any cosmetic flaws, buyers still remember a house for its overall condition and your home may be the one they remember for the wrong reasons.  Also, if a similar home is for sale that is in better shape, a buyer will either offer on that house or offer a lower price on your home based on what they think it will cost to bring your home up to their standards, no what it will actually cost.   I have some tips that are inexpensive ways to maximize how your home shows to potential buyers.  I do not believe in going overboard as in many markets right now spending a wad of money probably won't get you a substantially higher sales price.   Exterior - Work with what you have.  You do not have to have a brand new home or many recent updates (roof, siding, windows, etc.) to have an inviting home.  Here are some quick tips:  

• Power wash the entire exterior of your homes including decks, patios, sidewalks, and driveways
• Recoat any asphalt surfaces to give them a new look.
• Replace any rotting wood or missing roof shingles.
• Consider repainting your shutters and/or wood trim to complement the existing siding color (with HOA approval if necessary).
• Put fresh mulch in flowerbeds and prune existing bushes to enhance the interior.  Consider planting flowers that compliment the existing color scheme of the home.
• Replace any tarnished or worn exterior lights

    Interior - it's all about making a buyer feel they can move in with no worries  

• Clean or replace the carpets.  If your home is in a higher price bracket I recommend a price adjustment or carpet allowance as many of these buyer do not want baseo carpeting (if carpeting at all) and would rather pick out their own flooring.
• Touch up the paint on any scuffed or worn walls.  Repaint rooms that have any outlandish colors
• Remove any out of date wallpaper.  Buyers see wallpaper and immediate start thinking about the time and money it will take for them to remove it.
• Clean and declutter.  A clean and clutter free home can detract from dated or low grade finishes.  Also remove any trinkets and personal photos.  You do not want the buyer to know who lives in the homes.  You want them to know that they could live comfortably there.
• Update kitchens and baths - No I am not talking about complete gut jobs.  Just changing out lighting, faucets, hardware, and mirrors can make a huge difference.  In the kitchen all appliances should match in color.  Usually cabinets can be painted for a quick updated look.  Installing new counters can also refresh a tired kitchen

    When listing a property I recommend the following steps to help the home be the most marketable and attract the attention it needs to bring in potential buyers:  

• Price the home accordingly (hopefully I will cover this issue more in depth in a future blog post).  Even with all the things mentioned above, the market will still dictate the price of your home.  If closing cost assistance is prevalent in your area offer it as part of the list price to offer an incentive to purchase your property over another where they have to negotiate and hope the seller is willing to pay for closing costs.
• Perform a pre-listing home inspection.  This will show a buyer that you have nothing to hide and will make you aware of any issues ahead of time.  Many times they are minor things that you can fix.  Usually when the buyer's inspection brings up an issue that the buyer usually wants it remedied or wants a credit that is much more than what it would actually cost to fix the issue.  Even worse the buyer could walk away from the deal.  One thing I will note is that if any material defects are brought about because of the inspection may have to be disclosed depending on local laws. 
• If you do not have the time to keep up the inside and outside of your home, hire a cleaning and lawn company to keep the home in top shape.  Even though a buyer is going to live in the home they buy, they do not want to see a home that has a totally "lived in" feeling.
• Small perks can be a bonus.  Offering a credit towards HOA dues or a free decorator consultation can be little things that can sway a buyer to your property over another.

  I have probably not covered every item concerning preparing a home for sale but I have hit on what I feel are the large issues.  If you want any further questions answered contact myself or your favorite local real estate professional.

My analysis of the market will mainly focus on Northern Virginia and in particular Prince William County/Manassas City/Manassas Park.  The area is a bedroom community about 25-40 moiiles south and southwest of Washington DC.  Commuter optins including interstate highways, commuter rail, and commuter bus routes.

Housing options are varied from condos to expansive mansions on large wooded or equstrian lots.  Price ranges also vary based on the specific subdivison and the home's features.   One thing unique to the area compared to other Northern Virginia Jurisdictions is the rate of decline in home values.  Over the past 12 months, homes values in other area counties dropped about 10% overall.  However, home values in Prince Williams County dropped a whopping 25%.  While this is not a god hting for potential sellers, it allows buyers to lock in a good price for a home relatively close in to the city without having to look further out just to find an affordable home.    I can give countless examples of homes that are on the market for a fraction of what they sold for several years ago.  In extreme cases, I am seeing homes listing for 40-50% of what they were worth at the top of the market in 2005 and 2006.   I am a lifelong residenti of the area and would more than happy to help you navigate the market whetehr it be buying, selling, renting, or investing.  Feel free to contact me and let's see how we can work together to accomplish you real estate goals.