What I Learned at REBarCampDC and What It Means To You

This past Tuesday, I attended REBarCampDC – an informal “un-conference” focused on how to incorporate the latest social media and technology tools into your real estate business model. The event brought together some of the best and brightest Realtors and technology folks from around the Mid-Atlantic area – even as far away as California.

REBarCampDC proved to be a great learning experience. No matter how long you’ve been doing something, there’s always more to learn. There are always others that know more or do things differently that can give you a new/fresh perspective on things if you care to listen/learn.

But, more importantly, it proved to be a great event for my clients. Eve though my clients were not there, they will directly benefit in the form of better service and a better experience thanks to the tools I learned about at REBarCampDC.

Some of my personal highlights of the event were…

1. Home Search – the event reiterated the need to have a “Home Search” function available to my blog readers and clients. The general consensus was that FrankyMLS was the most up to date, accurate and user-friendly real estate search site in the DC/VA/MD area. I’m happy to say that I’ve had that feature available to blog readers and home buyers here on my blog since day 1.
2. Statistics – Home buyers, sellers, investors and the media want to see statistics. One of the technology gurus present present at the event was Mike Simonsen of Altos Research. Altos provides in-depth and up-to-date data in the form of tables and charts. I had the chance to sit down with Mike one-on-one to get a test run and tutorial of Altos’ new flash charts, which are interactive and should be a big hit with consumers. You can find an example of these charts on my previous blog post talking about Loudoun County housing inventory being down (click here).
3. Community Topics – Though home buyers and sellers want to know about real estate in the area, they also want to know about the area itself. Though I do talk about local businesses and community events from time to time, I will be focusing much more on this moving forward. I am currently working on several posts about local businesses and events by reaching out to owners and event coordinators for interviews, information, etc. And I’m not talking about posting the facts (What, Where, When) – I’m talking about the “feel” of these businesses and events and my personal take on them as a consumer/attendee.
4. Video – is where it’s at. This is according to many of those at the event that have been dabbling around with video. I tend to agree with them because I’ve done a few video tours of builder’s model homes and they’ve been a big hit with home buyers/consumers. Therefore, I will be doing video tours of all the builders’ model homes in the area over the next few months so that you can see what they look like from the privacy and comfort of your own home.
5. Knowing what you don’t know – is more important than knowing what you do know. Though it’s not necessarily a social media or technology topic, it was talked about a lot at the event. Blogging about or talking to clients about areas or topics that you are not an expert in is a disservice to your clients (and the general public). If you run across a buyer or seller that wants to buy or sell in an area that you’re not completely familiar with, refer them to someone who does. The consumer will value your honesty and integrity and will remember that for years to come. And what goes around comes around…the consumer you referred out as well as the Realtor that you referred them to will most likely refer people back to you at some point down the road. Same thing goes for blogging – Realtors should focus on blogging/talking about topics and area they’re familiar with rather than going outside their area of expertise for the sake of making more money.

Exchanged great ideas…one-on-one time with the top guy at a real estate technology firm…learned a lot…clients will benefit from what I learned…hung out with friends…made new friends… You can’t ask for much more!

Special thanks to Ainsley McDougal of NVAR for helping make the event possible!

The Latest Loudoun County Housing Inventory Statistics

The number of homes for sale in Loudoun County (and the entire DC metro area) is definitely either down or trending down. Let’s look at the following charts showing inventory levels of single family homes and town homes in the Sterling, Ashburn, Leesburg and South Riding/Chantilly areas:

(Note: These are new interactive flash charts – feel free to play around with them, move the slider around, etc., and let me know what you think)

Sterling

Ashburn

Leesburg

South Riding/Chantilly

Celebrating 3 Years!

Wow, how time flies! Three years ago this month, I started blogging about Loudoun County real estate and the area in general. Back in 2006, there were very few Realtors blogging across the U.S. let alone Loudoun County (there were less than a few dozen across the entire U.S. at the time).

Today, that number is much higher yet, LoudounScene.com and LoudounForeclosures.com continue to be one of the best and most up to date sources of local information and resources for home buyers, sellers, investors, residents and the mass media.

Thank you to all of you who have commented on and been loyal readers of LoudounScene.com and LoudounForeclosures.com. Without you, there would be no Loudoun Scene or Loudoun Foreclosures and I would not be able to say, “Celebrating 3 years!”

The Cat That Betrayed His Girlfriend

Make sure your sound is on. Yes, safe for work. (If you can’t see the YouTube video below, click here)

Putting Mortgage Rates Into Perspective

I’ve heard some folks saying, “Uh oh…mortgage rates are up!” and “Mortgage rates went up a lot (1/4 point) since last week and I’m going to wait for them to go back down.” Yes, mortgage rates may have gone up since last week. Yes, they may (or may not) go back down (though, in my humble opinion, the only way from here is up).

But seriously…do you realize how good we have it right now when it comes to mortgage rates and points?!

Let’s put things into perspective…

Several of my home buyers with good credit recently got sub-5 percent mortgage rates with no points (a point is equal to 1 percent of the loan amount). Not too long ago, people could only dream about single digit rates, let alone sub-5 percent. Here’s the pudding…

- In July 2006, the average 30-year fixed-rate mortgage was at 6.76 percent with .5 points

- In July 2001, the rate was 7.13 with .9 points

- In July 1996, the rate was 8.25 with 1.8 points

- In July 1991, the rate was 9.58 with 2 points

- In January 1982, rates were 17.48 with 2.2 points

When is the last time mortgage rates were below 5 percent with less than 1 point? They haven’t been this low since Freddie Mac started tracking mortgage rates in 1971.

Let’s crunch the numbers on a $400K loan…

• At a 5.0 percent mortgage rate with .7 points, your principal and interest would be $2,147.29  and your points would equal $2,800
• At 8.25 percent with 1.8 points, your principal and interest would be $3,005.07 and your points would equal $7,200
• At 17.48 percent with 2.2 points, your principal and interest would be $5,858.79 and your points would equal $8,800

Aren’t you glad you’re buying a property at today’s mortgage rates rather than those of the last two decades (especially with prices at pre-2000 levels in some areas)?!

And don’t forget the icing on the cake…the $8000 first-time home buyer federal tax credit.

So next time you say, “Rates just went up” remember that it could be worse…MUCH worse.

For a complete list of the average mortgage rate and points per month since 1971, click here.

Why You Can’t Always Trust Property Photos

Here’s one reason why you can’t always trust the property photos that listing agents take…

see more Epic Fails

To see REAL photos of properties for sale, click here to check out my Buyer Agent reviews and photos over at FranklyMLS.com. If I haven’t reviewed and taken photos of a property you’re interested in, let me know and I’ll do so.

Home Seller Tips, Part Three – Pricing (and Reality)

This is part three of my three part mini-series on how to sell your home for the most amount of money in today’s market. (If you missed them, click here for part one and click here for part two). This part deals with the number one most important issue when it comes to selling your house – pricing – as well as the issue of reality.

Pricing

In most cases, the reason why a home does not sell is pricing. If it’s not priced correctly, it will simply sit on the market collecting dust while other properties that are priced correctly sell all around it.

Folks, you can not fool today’s home buyer nor a good Buyer’s Agent.

In today’s day and age, there is an abundance of information available to every home buyer with an internet connection (which around here is pretty much everyone). Buyers can get information on recent sales, historical sales, tax records, assessed values, market trends, market statistics, photos, virtual tours, videos…the list goes on.

Buyers can and will quickly and easily figure out what the fair market value of your property is. If/when a buyer sees that you are priced above market value, they are typically very quick to pass on even seeing your property and will look at another similar property that is priced more attractively. Even if there are no properties similar to yours on the market, if a buyer thinks yours is overpriced, they will wait until one comes on the market that is priced well.

Even in the off chance they have no internet connection or don’t do the research themselves, any Buyer’s Agent worth their weight in salt will let them know whether a property is priced at, below or above market value based on the current market conditions. The Buyer’s Agent will share their opinion with their buyer clients (that’s part of what they’re getting paid to do) and once they do, the buyer will most likely pass on your property.

Tip: Once a buyer gets a list of properties that meet their general criteria, they first sort them by what they look like based on photos, virtual tour, etc. Then they sort again based on price. The remaining properties are then put on the “to see in person” list. If you are not priced correctly, you won’t make that list.

How do you price your property correctly?

Check the comps. Find out what similar properties have sold for within the last 90 days. This will show you exactly what buyers are willing to pay for similar properties. And also find out what similar properties that are currently under contract were last priced at before they went under contract. That will give you an idea of which asking prices are leading to offers from buyers.

Once you have the comps in front of you, add/deduct value based on what your property has versus what the other properties have/do not have. For example…if you have an in-ground basement while the other property has a walk-out basement, you need to deduct for that.

Another example…if the other property has an unfinished basement and yours is finished, that could be a difference of tens of thousands of additional market value for your property (depending on the square footage of the basement, quality of build, etc).

Check the current market conditions. Are prices appreciating, declining or steady? Is the home inventory increasing, decreasing or steady? Is buyer demand on the way up, way down or steady? Is the inventory mostly traditional resales, foreclosures or short-sales and what percentage does each type of property comprise? How many properties similar to yours have sold past month…3 months…6 months? And the list goes on…

Market conditions is very important when it comes to pricing correctly. This is where an experienced and knowledgeable Realtor who has his/her ear to the ground comes in. If they are on top of the market and what’s going on, they can spit out accurate statistics, advice and guidance at a split second even if you wake them up at 3am from a dead sleep.

Check how much competition you have and do some recon. In many ways, this is a battle. Your competition is made up of other sellers with similar properties that have their homes on the market as well. Home buyers that come across your property will most likely come across your competitors’ properties too. If a buyer feels that your competitors’ property is a better value than yours, they will probably place on offer on their house before they place one on yours.

This is what us Realtors call, “Selling your neighbor’s house” – a buyer comes across your house, then sees your neighbor’s house, yours makes theirs look like a better deal so they buy theirs. Congrats! You’ve just helped sell your neighbor’s house and lost a potential buyer for yours. This is the last thing you want to do – especially in a declining market.

Important: If prices are declining, you will probably get less for your home now that your neighbor has sold their house. And the less your neighbor accepted for their house, the less you’ll get for yours (see paragraph 3 above).

And do some recon. Have your listing agent take you through your competitor’s homes so you can see them with your own eyes and in person. This will help you see exactly how they compare to your property and you will know what buyers are comparing your home to and how, which helps tremendously come negotiating time.

Reality

You have to be realistic. If the comps and market conditions all point to a market value between$500K and $520K, don’t list it at $575K. Your property will just sit on the market until A) you lower your price or B) market values appreciate $55K to$75K (and we all have a pretty good idea of how long that could take).

You may say, “But I want $575K!” or “I think my home is worth that much regardless of what the comps/you say.” That’s great.

But it doesn’t matter.

Your home is worth what a ready, willing and able buyer will pay for it today. And the comps illustrate what a ready, willing and able buyer has been willing to spend on a property such as yours in the last 1 to 90 days. If you are not willing to sell your home for what it’s worth in today’s market, you may not want to list it for sale in the first place.

On a related note…If you figure out that what you owe is more than what you’ll make from the sale of your home based on your property’s current market value, you have three options,

1. Don’t sell it.
2. Do a short-sale (click here for more on that).
3. Foreclosure (I strongly urge you to avoid foreclosure at all costs for a variety of reasons).

So there it is folks…my three-part mini-series on how to get the most money for your home in today’s market.

If you have any questions or concerns about anything, click here to contact me at any time. And if you’re considering selling your home and/or are interviewing several Listing Agents in the area, I would love the opportunity to interview with you and see if we would work well together.

Home Buyer Demand, Sales Up Across Loudoun and Fairfax County

Home buyer demand/sales in Loudoun County were up 11 percent in the 3rd quarter of 2009 over the 3rd quarter 2008. And it’s up 53 percent over 2007. (Buyer demand is defined by the number of homes that go under contract during a set time period)

Fairfax County had an 18 percent increase in home buyer demand/sales in the 3rd quarter 2009 over 2008. And it’s up 62 percent over 2007.

Why the increase?

1. Lower prices – prices have come down considerably since the peak making it more affordable and appealing for home buyers. And the less expensive something is, the more people can afford it
2. Low interest rates – interest rates hit historical lows and are still very low. Lower interest rate = greater purchasing power
3. Programs/benefits – Programs such as the $8000 first-time home buyer federal tax credit has helped spark demand (click here for more info on first-time home buyer tax credit). I’ve worked with more first-time home buyers this year than in any of the last 6 years (and it’s only October). Other programs such as the Freddie Mac HomeSteps SmartBuy program have also helped increased demand (click here for more info on Smartbuy program)

Will it continue?

Maybe. If rates remain steady and/or the tax credit get renewed or a similar program come out, then we’ll probably see home buyer demand steady or continue increasing (though I don’t think there’s room for too much more increase in buyer demand).

Maybe not. If rates creep up and/or the first-time home buyer federal tax credit not be renewed and/or (more) bad economic news come out, we may see buyer demand taper off or even decrease.

Who wins?

The buyers that purchased a home at a much lower price than years prior and at a low interest rate while taking advantage of the first-time home buyer federal tax credit made out the best.

Sellers came in at a close second – increased demand and very low inventory make for a winning combination when selling your home.

Freddie Mac SmartBuy, Closing Cost Assistance Program Expires This Month

Since July, Freddie Mac has been offering to pay home buyers up to 3.5 percent for closing cost assistance and a 2 year home warranty through their HomeSteps SmartBuy program. This is a huge incentive that has come in handy for those with not a lot of cash lying around and/or wanting to use the money in other ways. But the program is soon coming to an end.

Freddie Mac’s HomeSteps SmartBuy program will expire October 30, 2009. In order to qualify, home buyers must make an initial offer on a HomeSteps home by October 30, 2009 with closing completed by December 31, 2009. It applies only to houses purchased as a primary residence.

If you submit an offer on a HomeSteps home after October 30, any closing cost assistance from Freddie Mac will have to be negotiated.

If you’re interested in purchasing a Freddie Mac HomeSteps home or have any questions about the SmartBuy program, click here to contact me.

Click here to search for available Freddie Mac HomeSteps SmartBuy homes in the area.

Brambleton Wins “Community of the Year” Award (again)!

Congratulations to Brambleton for winning 5 GALA awards including  “Community of the Year” (for the 3rd year in a row)! The Great American Living Awards (GALA) awards celebrate excellence in New Home Architecture, Interior Design, and Sales and Marketing throughout Maryland, Virginia and DC.

The GALA awards are quite an honor because they are based on votes and recognition by your peers in the building industry.

The other awards Brambleton received were,

• Best Sales Office – Brambleton Welcome Center
• Best Website – www.Brambleton.com
• Best Community Land Planning (this award is based on the community landscaping and signage)
• Marketing Director of the Year (Kim Adams)

If you have yet to check out Brambleton in person, you should do so. I would be glad to show you around the community, introduce you to everyone at the Welcome Center and answer any questions you may have – just click here to contact me.

Related Articles

Brambleton Community Receives National Honors

Brambleton Quick Facts

Various blog posts about the Brambleton Community

***SEARCH FOR AVAILABLE HOMES IN BRAMBLETON***

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