Is Selling Your Home in the Spring a Good or Bad Thing?

February 5, 2010 by Danilo Bogdanovic  
Filed under Seller Resources

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Many sellers wait until the Spring to sell their home. Why? Because they think the “Spring housing market” is the best time to sell their home. But is selling your home in the Spring a good thing or is it really a bad thing?

Selling your home in the Spring could be a good thing for reasons such as,

  • you have a pool that looks better open than winterized
  • the thousands spent on landscaping a million times better in full bloom than in the winter
  • having leaves on the trees in your backyard hides the fact that your neighbors are right up on your lot line
  • you want to time it so that you settle on the sale of your home and move right after school lets out

But, selling your home in the Spring could be a bad thing. Consider this…

Business/Economics 101: Supply vs Demand

We all know the centuries-old golden rule of business/economics - the more the supply in relation to demand, the longer it takes to sell the supply and the less it will be worth.

Let’s translate that to real estate and the housing market

Your home on the market + more other homes on the market at the same time (”Spring housing market”) = longer time to sell and less money.

Let me explain further

By waiting until the Spring, you will be listing your home when,

  1. All of your neighbors (aka competitors) who waited for the “Spring housing market” list their home for sale too
  2. The home buyers you want focused on your home and your home only will have more homes to choose from
  3. Your home will more easily blend in “with all the others on the market” (actual words from home buyers)
  4. A competing seller relocating once the school year is over who has a buy-out package from their employer lists their home at a reduced rate because they don’t care so much about the price rather, selling quickly

I can hear some of you now, “But the Spring is when most buyers come out to buy homes.” Let me respond with some facts you may not be aware of…

Statistics show that January and October have been the #1 and #2 busiest months for homes going under contract (aka buyers buying a home) in Loudoun County/Northern Virginia over the past 6 years (despite Armageddon-size snow storms like the one here this weekend). For me personally, December, January and February are the three busiest months of the year when it comes to home buyers house hunting and writing a contract on a new home.

And if you haven’t checked out my post from the other day entitled, “When Does the ‘Spring Housing Market’ Start?” click here to check it out now.

Other than having to wait until Spring due to work, family, life or some important  selling factor (such as one of the three listed earlier in this post), you should be on the market in January/February. If you can’t list your home in January/February, then aim for another month when the fewest number of other sellers/competitors are listing their homes for sale.By following this approach, you’ll face the least amount of competition and have the greatest chance of selling in a reasonable time and for top dollar.

If you have questions or concerns about selling your home or the local housing market, click here to email me or call me - 703.582.6900 (cell).

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    Loudoun Real Estate Assessments, Assessed Values and Appeal Process FAQs

    February 4, 2010 by Danilo Bogdanovic  
    Filed under Taxes/Assessments

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    I spent part of yesterday at the Dulles Area Association of REALTORS(R) for a presentation given by Todd Kaufman, Loudoun County Assessor (pictured above), regarding Loudoun County real estate assessments and the appeal process. Speaking alongside Todd Kaufman were Jennifer Sanderson, Operations Manager for the Loudoun County Assessor’s Office and Jim White, Supervising Appraiser, Ashburn Office, Residential Division.

    Here are some of the highlights of the presentation and what they had to say…

    2010 Loudoun County Real Estate Assessment Overview - Todd Kaufman, Loudoun County Assessor

    • The Loudoun County Assessor’s Office revised their mission statement - “biggest change and push is customer service”
    • Hard to fight budget and tax rate as an individual through court system, but easier to appeal tax assessment
    • Different classification of properties (7 total) based on type, use, density, acreage, etc
    • Tax rate is the same for all areas and properties except for Route 28 corridor (commercial)
    • Loudoun County real estate assessment is down overall, but much less of a decline in 2009 than previous years
    • Some areas in Loudoun such as Sugarland Run saw an increase in the average assessed value
    • 64% of Loudoun County’s tax base comes from residential property. About 20% comes from commercial/industrial property
    • Loudoun’s residential tax base is down almost 10% over last 5 years while commercial is up about 5% over same period
    • Dulles District is by far the number one area for tax revenue/base (mainly because it has the most number of residential properties located within it)
    • Overall change in real property assessments in Loudoun County - declined 3.29% ($1.97B) from 2009 to 2010
    • Change in “equalized” value - down average of 4.79%
    • Loudoun County new construction/growth up $569M in 2009 to $899.6M in 2009, but down from almost $5B 5 years ago (during the boom market)
    • 25,000 parcels (aka lots) are ready for development in Loudoun County
    • “2010 assessed values show sign of recovery”
    • Average assessed value in Loudoun County is $354,000 (not to be confused with market value or average sales price)
    • Assessed values up almost 500 percent since 1992. Rapid upswing from 2001 to 2006 and then sharp decline to 2009. Slight decrease in 2010. “Hoping for stabilization moving forward”
    • Loudoun County has $4.8B in total assessed value in exempt properties
    • Howard Hughes Medical Center is tax exempt, but gives $1M to schools and $200K to fire/rescue on their own (completely voluntary)
    • Loudoun has 1600 foreclosures in 2009
    • Decline in foreclosures, but increase in short-sales
    • Most number of foreclosures in 2009 were in Sterling (which only has 7000 parcels/homes). Dulles District was number two, but it has 30,000 parcels/properties. Overall number of foreclosures is diminishing overall though
    • 30 year old system being used to determine Loudoun County assessed values
    • Each assessor in the Loudoun County Assessor’s Office is responsible for assessing an average of 7,000 properties (between the 30 year old system and 7,000 per person work load, no wonder it’s hard to get the assessed values right)

    Louduon County Assessed Value Appeal/Review Process - Todd Kaufman, Loudoun County Assessor

    • There is a mandate as to how the appeal/review process works
    • Loudoun County has to follow statutes and codes as to process
    • There are 5 steps to the Appeal/Review process…
    1. Assessment notice sent out by Loudoun County and reviewed by home owner.
    2. Home owner must submit application for review (processed within assessor’s office).
    3. Home owner must submit a written request for reconsideration of current assessment based on “erroneous error” (aka you can’t just say “I don’t think it’s worth what you say it is”)
    4. Formal appeal to Board of Equalization (BoE)
    5. If you don’t get the results you want from the Board of Equalization, you can go through the court system

    Deadlines for Loudoun County Assessment/Assessed Value Appeals/Reviews

    • March 5 - deadline for office review by Loudoun County Assessor’s Office
    • June 1 - deadline to file formal appeal to BoE
    • December 31 - deadline to file with court

    Sample of Questions Asked By Attendees and Answered by Todd, Jennifer and/or Jim

    • Question: One Ashburn Farm resident asked how her assessment  is up 21% when her neighbors’ assessments are down.
    • Answer: “Could be mistake. Make sure you check the data that the county has on file.”
    • Question: How do you account for unfinished/finished basements?
    • Answer: “Picking up finished basements is done through the MRIS [the local MLS].”
    • Question: Why is the BoE’s decision only good for one year?
    • Answer: “Often times, there is a lack of supporting data from the BoE as to their decision so we put the value back at what we think it is the following year. But they’re [BoE] is getting better.”

    Personal Observations and Comments

    • How the Loudoun County Assessor’s Office treats bank-owned properties and short-sales is completely gray - no clear answer was given as to how nor what formula is used
    • Todd said his office goes back through last year’s BoE decisions and takes those into consideration
    • The Loudoun County Assessor’s Office has 4 people that do nothing else but collect data for the purpose of assessed values
    • County Assessors Office “put sinformation into system to come up with value” (aka they don’t do it themselves nor is it a traditional appraisal - it’s a “mass appraisal”)
    • They kept talking about how the assessments are formulated through a “system” yet, they couldn’t define what the “system” was except that it’s been in place for 30 years

    Questions I had for the Loudoun County Assessor

    1. How many licensed appraisers are conducting assessments and what standards are they held to (USPAP)?
    2. How many homes do you actually go inside of, if any?
    3. How many homes do you drive by?

    I’m still waiting on answers to these questions and will keep you posted if/when I hear back.

    If you have specific questions regarding your assessment, you can contact the Loudoun County Assessor’s Office by email, phone or in person….

    In order to make your case stronger when appealing your assessment, contact me to get comps (recent sales of properties that are similar to yours) to submit with your appeal application - danilo.bogdanovic@gmail.com - 703.582.6900.

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    When Does the “Spring Housing Market” Start?

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    Many sellers and buyers are waiting until Spring for the “Spring housing market” to sell their home or buy one. But when does the “Spring housing market” really start?

    The most common answer is, “Spring!” Is that correct?

    Nope.

    The “Spring housing market” has already started. In fact, it starts in January. In the 6 years of being a Realtor, January has been the busiest month of the year for me (and in general) when it comes to buyers house hunting and writing a contract on a new home. The third busiest month? February. (The second busiest month is October)

    “Really?”

    Yup. And here are some guesses as to why based on what buyers have personally told me…

    More time + more money = more buyers in the market to buy a home.

    People are busy with end of year work, holidays and their children’s winter break in December. This puts selling their home or buying one on the back burner. Once January rolls around, all of that is behind them and they have more time on their hands so they start house hunting.

    December and January also equal Christmas/year-end bonuses. And let’s not forget that many people know they have tax money coming back to them from Uncle Sam soon so the thought of a hefty down payment is a bit more bearable.

    What it means to you if you’re a seller

    If you’re thinking about selling your home, for these and other reasons, you may want to strongly consider listing your home in January/February (more on this in another post coming soon).

    What it means to you if you’re a buyer

    If you’re a home buyer house hunting in January/February, know that other buyers are doing the same thing so be prepared for increased competition (aka multiple offers) on properties that are great deals.

    If you have specific questions or concerns regarding buying or selling a home or the local housing market in general, click here to email me or call me - 703.582.6900.

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