"Retirement homes" have come a long way, baby. Navigating the world of senior communities--from independent "active" communities, to assisted livings, to continuing care communities, to nursing homes--can be daunting. I know. I just spent an amazing amount of time researching and touring communities in our area. If you think it's hard finding a place for yourself, try finding a place for your mom! And I'm in the business!

The resources out there to help are, surprisingly, not very substantive. There are 'referral' services that I found to be shallow and not very good listeners and so were a complete waste of time. There is a very good magazine that served as a starting point: the Sourcebook from Retirement Living. Though it's primarily a big book of ads, at least it's a list of communities to start with and their charts are a great way to quickly cull the communities that will work for your situation. It's worth an in person visit to a few different places, and make sure that you come armed with an interview guide you have thought through in advance. (I'll work on another post with mine, but if you need one feel free to email directly and I'm happy to share.) They all have their pitch and are very good at the tours so you may forget to ask about some of the items that are particularly important to your situation. There are many excellent communities in our area, but you may be surprised to know that there are widely different financial models for different types of communities. Some are pay-as-you-go, similar to a rental apartment. Others have a 'buy in' fee up front, which can quickly run into the hundreds of thousands of dollars. Some are refundable, some partially, some not at all. And yet others are 'life contract' communities where the fee is steep, but it 'guarantees' you a stable and consistent fee regardless of the level of care you need, which can be a huge benefit to someone on a fixed income like most retirees. Obviously financial and estate planning will play a huge role in your decision, so start pulling together a list of assets as well as a detailed monthly budget early in the process. Most communities are not real estate 'sales' that go through a traditional real estate agent (though there are a few notable exceptions in our area, like Leisure World and the Jefferson at Ballston). However, having just gone through the process, I'm more than happy to share with you my 'lessons learned' so far. I would love to 'pay it forward' and give anyone a head start on the process.

It's hard enough juggling our own lives every day, and throwing in such a huge research project on top of daily living can seem overwhelming at first. Just shoot me an email and I'll see if I can help. And if you know a senior looking to buy or sell in the DC area, I'd be happy to help with that too :)

I'm often asked if winter is a bad time to be buying or selling. My answer is always the same: Though there are fewer properties on the market and therefore less to choose from, buyers will often have more negotiating leverage than they do in the spring, when sellers are confident and buyers are plentiful. This is especially true if a home has been on the market for many months. If a property is new, you can bet the seller is on a deadline. Given a choice, most sellers would prefer to wait until spring. Sellers: Buyers who are looking when it's cold and snowy are much more likely to be very serious buyers on a deadline, so don't rule out an "off-season" listing. As an added benefit, it's often less disruptive if you're still living in the property since there are fewer showings. This past week I wrote two offers, one of which was competing against two OTHER offers, all within eight days. In winter, it's more important than ever to price it to sell! And note to buyers: Don't assume you have plenty of time, even in the midst of winter, as we found out last week. But you might as well start looking now—if nothing else, it will give you a running start in the spring since you will already be familiar with the market to better "know it when you see it," and you may get lucky and find a deal.

Homeowners in the DC area can be thankful for our continued strong market. In fact, homeowners nationwide can appreciate that the numbers continue to rebound, as the Atlantic's "Chart of the Day" interestingly illustrates. However, every story has at least two sides...the jury is out as to whether the "rebound" illustrated actually reflects the artificially slower rate of foreclosures this year.

In financing news, we in the DC area got a bit of good news (in addition to the ridiculously low rates, that is): FHA loan limits were upped back to the previously "temporary" limit of $729,750. That's great news in terms of affordability for homes in the $800,000-$900,000 price range. FHA continues to be a thorn in the side of many condo complexes, though; communities lost their certification earlier this year and many are finding it hard to win approved status. Despite that, the market continues to be more active than usual for this time of year.

Low rates are bringing out buyers and investors, but low inventory keeps them frustrated. Homes at the "right" price ARE selling.

If you know someone looking to move, please contact us. And if you're thinking of selling, contact us for a no obligation market analysis of your home and review of statistics in your local neighborhood. You can"introduce" yourself to us via our HGTV Show "My First Place" airing again on November 25 (this Friday) at 8 am.

This year, once again, we are thankful for all of you—our clients and friends who refer us business. Thank you for your continued support and we wish you a happy and healthy holiday season!

The Fall market continues to surprise--it's been really, really busy,  fueled by another batch of record low interest rates.  (Need a good lender to re-fi?  Ask me!)    Our market continues to outperform the nation.  Builder magazine named DC #13 on its list of Healthiest Housing Markets.  It notes that while builders noted a step back in prices, "Moody's expects permit activity to pick up substantially in 2012, partly due to a strong jobs market. With an unemployment rate well below the national average, D.C. is expected to add 40,000 jobs this year. The region's population continues to grow at about 1.2% annually."       And  it was doubly good news for Arlington, which also made Bloomberg Business Week's List of 50 Best Cities, coming in at number 2 (behind Raleigh, NC).    On another note, homeowners, don't forget your Fall home maintenance.  This is the perfect time to drain hose bibs, seal drafty windows and doors, check your chimney for loose or missing mortar, and don't forget to keep those gutters clear of falling leaves.      In this month's trivia section, ever wonder why it's called "real estate"?  After all, of course it's "real," and it's only sometimes part of an "estate." Get the Straight Dope here.    If you know someone looking to move, please don't hesitate to contact us. And if you're thinking of selling -- contact us for a no obligation market analysis of your home and review of statistics in your local neighborhood.

Falls Church City was named the richest county in America, according to an article on Forbes.com. Falls Church City brought home the honor by having a median annual household income of $113,313. But Falls Church isn't the only Washington suburb to make the list of the 10 richest counties in the nation. Loudoun County came in at number two with a median annual household income of $112,021, with Fairfax County taking the number three spot on the list ($104,259). Two other local jurisdictions made the top 10: Howard County, Md., has a median household income of $101,003 and placed 5th, and Fairfax City nabbed the tenth spot on the list with a median household income of $96,232. While many areas of the nation are plagued by unemployment, Falls Church and the surrounding suburbs are home to people who work as government contractors, lobbyists, lawyers, and consultants, with federal dollars stoking the economic engine of the area. The area also boasts strong school systems, which helps attract wealthy residents.

It’s a tricky thing to time a home purchase with the expiration of a lease. Often buyers ask me: Can I make an offer on a house I like now even though my lease isn’t up until later this year to minimize the overlap?

Typically contract to close will be 30-60 days. There are several reasons for this. The first is your loan. You can not lock in an interest rate until you have a property (the letter has a rate, but if you read the fine print it will say somewhere that it’s ‘subject to’ an acceptable property…at that time they give you whatever the current rate is. Once you find a property, a lender will lock you in for 45 days for free, and beyond that you need to pay a rather hefty fee (thousands of dollars). For that reason, most buyers look to close within 45 days of contract.

Most sellers obviously want a quick close as well (unless you pay a premium to make them wait), so it’s rare to see a closing that is many months away on a resale. Occasionally sellers will want a ‘rent-back’ or post-settlement occupancy agreement, wherein they reimburse the buyers for their costs to stay in the property for up to 60 days past settlement. More than 60 days will create problems with your lender, as that’s typically the time frame after which they will consider it an ‘investment property’ and your loan terms will be different. Buyers should also remember that the first mortgage payment isn’t due until the 2nd full month after you settle. So, for example, if you settle in April, then your first payment isn’t due until June 1. This is because you make mortgage payments in arrears, rather than in advance like you do with rent.

Of course every situation is different, but an experienced agent can help you utilize some of the contract’s clauses to minimize any overlap between your lease and your mortgage. Every situation is different, so contact us to discuss your rent-to-own transition or attend a free first time home buyer class.

Barcroft Hills is located off Leesburg Pike (Rt. 7) just east of Bailey’s Crossroads in Falls Church. The community comprises 233 single-family homes and condos, according to local tax records. Construction on the single-family homes in the neighborhood began in 1954, and in 1967, Barcroft Hills Condominium was constructed. The detached homes sit on lots ranging in size from just shy of a 1/4 acre, to just over a 1/2 acre, and the condominium offers studio, one-, two-, and three-bedroom floor plans. The condo offers a picnic area, party room, a tennis court, and two swimming pools (there’s a separate pool for kids).

Currently, there is just one active listing in our local MLS for Barcroft Hills. It’s a one-bed, one-bath condo unit being offered for $112,500. Three homes are currently under contract—one condo and two single-family homes, ranging in price from $149,900 to $580,000.

In the past year, ten homes sold in Barcroft Hills, so turnover is fairly low. And the units sold quickly—they averaged just 22 days on the market. Five of the units were single-family homes and the other five were condo units. The average sold price for the condos is $127,400, while the single-family homes averaged $440,100. If you’d like to learn the value of your Barcroft Hills home, click here. You can search for a Barcroft Hills home here. Get more info on other Falls Church Neighborhoods. And if you have any questions, just drop us a line.

Source: MRIS as of 2/9/2011.

Right on schedule, the Spring market is proving to be an interesting one in our area.

Inventory is shockingly low - check out these graphs for Northern Virginia and Arlington, in particular--inventory is running about half of prior year's in some areas. Frustrated buyers are asking 'where are the listings?' But the market is divided...there is a subset out there that just sit and wait for buyers. So what's going on? I believe that there are two factors at play: first, buyers are used to having a lot of choices of top condition homes, and so expectations are high but they are eager to find a bargain. On the flip side, sellers who bought in the last 3 or 4 years don't have any appreciation to fall back on, so are trying to get top dollar for their homes, which sometimes are not in the best condition, leading to an impasse. Even so, with inventory hovering around 3-4 months, versus 7 months this time last year, something's gotta give.

Home affordability (a combination of prices and interest rates) is at pre-bubble levels (WSJ), leading even the Journal to note: "Confusing though the various statistics may be, they do point to one overarching conclusion: Now is a good time for upper-income buyers in most markets to start looking." in its article "Housing: Is it time to buy?" Know anyone thinking of selling? Please have them contact us for a quick discussion of what's going on in their local neighborhood! We need sellers!

Renters are getting anxious...several local areas made Bloomberg's list of cities with the biggest rent hikes, including Bethesda (#25) and DC/Arlington/Alexandria (#9), and double digit increases may be on the way according to CNNMoney. In related news, DC was named the #1 real estate "Market to Watch" by Inman News, having been one of only two markets to see year over year gaines in the Case-Schiller Index.

We have several upcoming classes for first time home buyers, and investors on May 11 - click here to register.

Do you know someone thinking of buying or selling? Forward them this newsletter! If you know someone looking to move, please don't hesitate to contact us. And if you're thinking of selling -- contact us for a no obligation market analysis of your home and review of statistics in your local neighborhood.

I’m often told by buyers “I won’t look at anything with high condo fees.” Often this can be a mistake. We need to look at what condo fees cover, and why some buildings may be higher (or lower) than others.

 

What’s included in condo fees varies—sometimes widely—from building to building. First you need to be sure that you’re looking at a condominium, rather than a co-operative. While they may appear similar, in legal terms that are very different (see my page on condos vs co-ops here.) When it comes to fees, co-ops appear much higher because they include property tax and occasionally an underlying mortgage, which results in fees that look much higher on paper, but when a buyer calculates their all-in housing expense, can actually be a bargain compared to condos.

 

Condo fees generally include a master insurance policy for the dwelling. You will need to have an HO-6 (aka “condo rider” or “walls-in”) policy, but this is much cheaper than the policy you would need to purchase for a townhouse or single family home.

 

Units in older buildings generally are not individually metered, meaning that certain utilities are often included in the condo fee. Heating and air conditioning bills can add up!

 

Are there expensive amenities like an indoor pool or a staffed front desk? These drive up fees quickly. Is the building new construction and still being managed by the builder? Builders are notorious for underestimating fees (and often not adequately funding reserves.)

 

Finally, a buyer needs to look at reserves. There is no right or wrong answer on funding reserves. Condo boards make decisions annually about the amount they need for their annual operating expenses, and the amount they want to put aside for future capital repairs and improvements (new roofs, new windows, redecorating common areas, etc.) Board members are owners that are elected by other owners. Just like some owners save for a rainy day, so do some Boards. And just like some owners live paycheck-to-paycheck and pray that nothing breaks, so do some Boards. So having fees that are too low could indicate that a building is not properly funding its reserves, which could lead to future special assessments.

 

More Resources:

Search the MLS for properties

Contact us to discuss your home search

Attend a free First Time Buyer Seminar

In Virginia, buyers of condominiums and properties within a homeowner’s association have a three (calendar) day review period to review the “resale package” or “condo docs” following a ratified contract. In the District buyers have three business days. (Typically these are not available in advance because associations charge a fee, and most sellers are reluctant to incur that fee before receiving an offer. Several items in the package are also time-sensitive, so if the package is too old then sellers will need to pay for an updated package, so most sellers choose to wait until the offer is received before ordering.) Sometimes the documents are electronic or online, or often they come in a big binder for your reading pleasure.

Some of the items that are supposed to be included* the resale package are:

- Bylaws, rules, and regulations of the community (e.g., pet, noise, and rental policies)

- The annual association budget

- Two months of Board minutes

- A statement from the property manager about whether the unit is currently in compliance with rules (do NOT assume that if there is a violation the seller will remedy it prior to settlement!)

- Master insurance policy

*Unfortunately sometimes items are missing from the resale package. You can ask for the missing items, but it does NOT extend your three day window for rescission.

There will be a lot of information to read through in a short amount of time, so I recommend buyers first prioritize these items:

- Review the rules and regulations to make sure you can live with them. Even if you’ve verbally been told otherwise (e.g., “oh, no one actually carpets over the hardwoods and it’s never a problem” or “there are lots of owners with dogs even though the policy says no pets”, or “of course you can install a washer/dryer.” These are the rules and you should be prepared to have them enforced. There are no guarantees that a lax Board will always remain lax.

- Look at the percentage of units that are more than 30 days past due on fees. Could it be indicative of a financially strapped community with short sales and foreclosures to come?

- Compare the reserve balance to the engineering study, which is a study that estimates the remaining useful life and cost to replace or repair for community items such as parking lots, roofs, and common areas. Engineering studies are typically performed every five years.

- Is there a move in fee or capital contribution required at settlement? This is becoming a big trend for condos to assess buyers a fee to help fund their reserves, sometimes it can run into the thousands of dollars.

The three day period can be a stressful one, because it’s difficult to get more details if needed in such a short amount of time. Property managers are often restricted from giving information to non-owners, further complicating the ability to get details related to a buyer’s concerns. The remedy is to negotiate with the seller for an extension of the period, or to void the contract, so it’s best to read the documents immediately upon receipt to identify any potential issues early.

More resources:

Search the MLS for properties

Contact us to discuss your home search

Attend a free First Time Buyer Seminar