Loudoun County Assessment Notices To Be Mailed First Week Of February

According to a press release from Todd Kaufman, Loudoun County Assessor, 2008 assessments will be mailed to Loudoun County property owners in the first week of February. The press release seems pretty standard as you begin to read it, but then it gets interesting.

Here’s one excerpt that caught my attention:

"The Code of Virginia and local ordinances require that assessments be made annually at fair market value. "It is important to understand that assessments are not influenced by the budget or tax rate.  Assessments are market driven.  The creation of the budget and the setting of the tax rate are independent from the assessment process," said Kaufman. "The budget is proposed by the County Administrator and approved by the Board of Supervisors.  The Board also sets the tax rate.  Assessments are the County Assessor’s opinion of the value of a jurisdiction’s real property portfolio as of January 1.  Real property tax levies are the result of the application of the tax rate on the real property assessment.  The Board sets the real property tax rate following a process which includes a public hearing and a series of work sessions."

Here’s the other:

"In order to better serve the public, the Office of the County Assessor has recently opened a satellite office in Ashburn. The office is open to the public Monday through Friday from 9:00 a.m. until 4:00 p.m.  The satellite office is located at 45201 Research Place, Suite 130, Ashburn, VA 20147."

That statement and the recently opened office makes me wonder… We’ll see what property owners think and how they react when they get their assessments in the next week or two.

D

Think It’s A Great Deal? You’re Not Alone So Be Prepared

Every home buyer and investor in Loudoun County as well as the rest of the world is looking for one thing - the best possible deal. Whether it’s an appreciating or declining market, the goal of every home buyer and investor is to buy a property that fits their needs for less than any other comparable property currently for sale or that has sold in the area.

But what if there were more home buyers and investors than great deals? This creates more demand than supply and translates to multiple buyers and multiple offers on the same property.

Think I’m crazy for making these claims in this market? Well, let’s look at my personal experiences over the last few weeks as an agent working with buyers and investors in Loudoun County…

Out of the eight offers I’ve written for home buyers and investors in Loudoun County so far this month, seven of them were competing against at least one, if not up to four other offers.

In addition, I ended up not writing two other offers because the properties that my clients were interested in went under contract inbetween the time they saw them and when they decided to present an offer.

I’m not saying that you should be foolish and make any decisions you’re not really ready to make. Nor am I saying that you should get wrapped up in the emotions of a competing offer situation and pay more for the property that you set out to spend.

What I am saying is, be prepared.

• Be prepared to be in a competing offer situation and have the highest price you’re willing to pay for the property in the forefront of your mind prior to presenting any offer.
• Be prepared when your agent contacts you asking for your "best and final offer". Your agent is simply doing their job by passing on the question they were posed by the seller.
• Be ready to walk away and move on to another property when the other offers go above your "best and final offer" and you get the call or email saying that the seller accepted another offer.

And don’t take it personal.

The moral of the story? Understand that there will be other buyers who will also think that the property is a great deal and be prepared for what comes along with that. If you’re prepared and have a game plan in place ahead of time, you will be able to keep a cool head and make smart and timely decisions should this type of situation present itself.

D

Future Of Moorefield Station and Dulles Metrorail Uncertain

The future of Moorefield Station and the new government center is uncertain due to the potentially bleak outlook of the Dulles Metrorail project, according to the Loudoun Times-Mirror. This comes after reports that the Federal Transit Administration said they will no longer fund the project over concerns regarding the areas’ economic stability and the contractor chosen to build Moorefield Station.

Loudoun County narrowed the site for the new 500K square foot government center to either Moorefield Station or one of two sites in Leesburg. The two Leesburg sites are The Village at Leesburg on Route 7 and Oaklawn, north of Leesburg Airport. With the latest news, those who favor Leesburg are rejoicing.

Even if the metrorail project doesn’t happen, Moorefield Station will be built. It’ll just be on a smaller scale with up to 4 million square feet of commercial space and 3500 homes being eliminated.

As far as the $240 million the county set aside for the project, it remains untouched.

D

Fed Makes Huge Drop in Rates!!!

In the face of a huge housing crisis that is threatening to drag down the entire economy, the Federal Reserver dropped the widely followed Fed Funds Rate .75.  This puts the Fed Funds Rate at 3.5o%.  The fear of a recession is obviously higher than the fear of inflation. 

This size adjustment was not anticipated by many.   Most people felt they would lower the rate by .25 or .50.  This was the first .75 point cut since October 1984.  With the stock markets around the world falling and our stock market deteriorating on the fear of a recession the Federal Reserve has decided to make decisive moves.

The timing of the rate cut was not anticipated either.  This was an emergency cut ahead of their regularly scheduled meeting. 

Will it keep us out of a recession?  Only time will tell.

T

Buyer Poll: Does The Number Of Photos Online Affect Your Interest In The Property?

We often come across properties for sale that have only 1, if any, photos available. We are curious as to whether having only one picture (or none) affects a consumer’s interest in the particular property or not.

That leads us to today’s poll:

D

Pulte Homes Cuts Staff and Pay Increases, Merges Metro Area Operations

According to one source, Pulte Homes is merging their metro area operations including Baltimore and Northern Virginia into one in response to the current conditions of the local real estate market. Pulte just laid off (an undisclosed number of) employees this week and cut bonuses and pay increases for 2008.

With the local and national real estate market in turmoil and new home sales way down, I’m sure that Pulte is not the only builder following this route. According to a Washington Post article that came out yesterday, new home construction dropped 24.8 percent in 2007 from 2006. This is the biggest drop since 1980. Builders are cutting back until they reduce inventory to levels that properly reflect lower buyer demand.

What affect does this have on consumers? Well, so far, neither my clients or I have seen or felt any negative affect in the level of service during our dealings with Pulte Home here locally in Loudoun County. And, in the process of trying to unload inventory, Pulte and other builders have been lowering base prices and/or offering huge buyer incentives, which many buyers are taking full advantage of.

D

Should You Buy Or Rent In This Market?

As Realtors®  in Loudoun County, in the course of a normal week, we get asked this question at least once, if not two, three or four times…

"With the real estate market being in the sad shape that it’s in, is now a good time to buy or should I wait?"

As members of Trulia Voices, we see this question posed all the time there as well. Here’s one that was just posted a few days ago in the Northern Virginia category:

"With concerns of a recession, should I hold off on buying a town house in the area? Does anyone know when home values will begin to increase? I intend to leave the area after 5-7 years."

According to the National Association of Realtors®, you should "buy now". We’re not here to echo that blanket statement.  In fact, we both agree that it may be the right time for one client to buy while it may be better time for another client to put off buying and rent.

There is no one correct answer for all. It all depends on your personal situation. You have to ask yourself some questions and answer them honestly and realistically.

• Are you buying it as a "home" or as an investment property?
• How long are you planning on living in the home before moving?
• Will your future move most likely be work related or personal?
• Are you willing to gamble on "timing the market"?
• What factors may help influence whether real estate market values go up or down in the near term and mid-term?
• What factors may help influence whether interest rates go down or up in the near term and mid-term?

None of us have a crystal ball, not even the most well respected economists who have been focused on real estate for who knows how many years. But there are certain factors that seem to always affect real estate markets over time (hence the last two questions above).

With the Loudoun County real estate market showing little signs of signicantly improving over the next year, it may be better to rent if you only plan on living in the area for and/or moving within the next 3 years. Rental market rates are low, which is good for renters. And even though they will most likely begin to rise within the next few years, you will probably be moving by that time so you it won’t affect you much, if at all.

This scenario is often the case with active military and government personnel who relocate often.

If you’re planning on staying in the area for 3 to 5 years or more, then you’d probably be better off buying a home. Though interest rates dipped down recently, they’re at historical lows and there’s a greater chance of them being higher in 3 to 5+ years than lower.  And though current rental market rates are low, they will rebound within the next year or two, which will help stabilize and increase real estate values in the mid to long term.

This scenario is often best for those who are planning on being here for a while whether it be because of their job, starting their own business or getting married and starting a family.

As we said, we can’t predict the future so our examples above may be off by a year or two. But you get the point…

Whatever your situation may be and whichever scenario works best for your specific situation, you’re in a good position.  Conditions are favorable whether you buy or rent.

D

Northern Virginia Transportation Authority Approves Six-Year Plan

Here’s the official press release from the Northern Virginia Transportation Authority regarding approval of their Six-Year Plan and John Mason being appointed Executive Director:

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PRESS RELEASE

For Immediate Release

January 11, 2008
 

NORTHERN VIRGINIA TRANSPORTATION AUTHORITY
UNANIMOUSLY APPROVES SIX-YEAR PLAN

Authority officially appoints John Mason as its First Executive Director

NORTHERN VIRGINIA – The members of the Northern Virginia Transportation Authority (NVTA) unanimously approved the Authority’s Six-Year Plan, following a Public Hearing, at its first meeting of 2008.

Over 60 people attended the Public Hearing at George Mason High School in Falls Church, Virginia. Approximately 21 people spoke and provided feedback to the Authority members on the proposed $93.3 million for each fiscal year of projects in the plan, which includes FY 2009 and FY 2010. 

The approved list of projects features a combination of roadway, transit, pedestrian and bicycle improvements.  Funding of $206 million for FY08 - FY10 for Metro & VRE combined is also included in the six-year plan. 

“We are doing what we said we would do, delivering real solutions and making smart investments in transportation for Northern Virginia.  Approval of this plan is an important step for the Authority in solving our region’s traffic woes,” said Chris Zimmerman, Authority Chairman. 

Roadway improvements include:

·         Route 3000 (Prince William County Parkway) Widening between Old Bridge and Minnieville;
·         Route 15 Road Widening (Evergreen Mill Rd to Leesburg);
·         Route 7 Widening from Rolling Holly Drive to Reston Parkway & Route 7/Route 659 Interchange;
·         Mulligan Road (Old Mill Rd Connector Road) [Fort Belvoir BRAC Related];
·         Route 1 Widening (Prince William Co.) from Featherstone Road to Joplin Road;
·         Route 28 Grade Separation Overpass (B-Line and Wellington Rd)

Transit improvement projects include:

·         Columbia Pike Streetcar;
·         I-66/Vienna Metrorail Accessibility & Capacity Improvements;
·         Rosslyn (Metro) Station Access Improvements;
·         Transit Development Plan (Fairfax Connector); and
·         Capital Improvements -76 Buses, Facilities, and Service.

For a full list of the projects please visit: http://thenovaauthority.org/PDFs/Meetings/2008/1.10.08/Six%20Year%20Plan%20Projects%20121807.pdf

Mason Officially Appointed as Executive Director

The Authority also voted unanimously to appoint John Mason as Executive Director and formally approved his contract.   

“With John Mason taking on this important role, this is yet another integral step forward for the Authority,” said Authority Chairman Chris Zimmerman (Arlington Co.)

John Mason has worked for Science Applications International Corporation (SAIC) since 1978, serving as vice president and director of the Transportation Policy and Analysis Center. 

Mason served on the City of Fairfax’s city council from 1986 – 1990 and served as that city’s mayor from 1990 to 2002.  In addition to his service to the City of Fairfax, Mason has served on the National Capital Region Transportation Planning Board (TPB), including a year as chairman in 2001; the Transportation Coordinating Council (TCC) of Northern Virginia; the Northern Virginia Transportation Commission (NVTC), including a year as chairman in 1993; the Virginia Municipal League Transportation Committee; the Governor’s Commission on Rail Enhancement for the 21st Century; and the Association of Metropolitan Planning Organizations (AMPO), serving as chairman in 2000. 

“I am honored to be appointed as the Authority’s first Executive Director.  I am eager to see that we begin to deliver what we’ve promised to Northern Virginians: to work toward fixing the region’s transportation problems with targeted transportation improvements and wise investments.  From day one the Authority has been open, transparent and inclusive I will work to maintain this.  The Authority’s members believe that by working together with the public, businesses, local governments and planning agencies we can make smart investments that have real impact on Northern Virginia’s congestion challenges,” said Mason.

Kala L. Quintana
Director of Public Outreach, Northern Virginia Transportation Commission
Interim Public Information Officer, Northern Virginia Transportation Authority

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D

Van Metre Homes Pays Government Employees To Forego Representation

Van Metre Homes is giving government employees a 3 percent credit if they forego representation by a real estate agent/broker. This sounds like a sweet deal, doesn’t it?

Most consumers will answer that question "yes!" After all, 3 percent on the purchase price of a new home is a lot of money. But is there a catch?

Consider this…

Since 3 percent is the same amount Van Metre Homes would pay a broker, it makes no financial difference to Van Metre Homes - their bottom line doesn’t change.

So why is Van Metre Homes doing it?

Is it because they don’t want you to have representation?

Without a real estate agent/broker on your side who has done this countless times before and knows a new homes sales contract backwards and forwards, they may try to put a lot of things past you.

You may say, "They would never do that to me."

Well, consider this:

• The sales consultant works for Van Metre
• The contractors/sub-contractors work for Van Metre
• The building supervisor, pre-drywall and final walk-through inspector, customer service and warranty department people all work for Van Metre

Every one of those people and others you may never meet, but are involved in the process all get their paychecks signed by Van Metre.

Since they all get their paychecks from Van Metre Homes, with whom does their loyalty lie? And does that affect who they care more about? If it does affect who they care more about, who will that be…you, or the company that signs their paycheck?

Not saying you should not save 3 percent off of the purchase price. But make sure you look at the big picture before making your decision. If you want the best of both worlds, get a great agent who has a lot of new home sales and negotiating experience and you should be able to get both - representation and 3 percent off the price.

Farewell Coach…

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