How Much Will Your Real Estate Taxes Be?

A client recently asked how much their real estate taxes will be and how they are calculated. For those of you who wondering the same thing, here’s an explanation:

In Loudoun County, what each home’s actual tax amount is depends on two things…

1. the assessed value of the property as of January 1 of the current year
2. the current tax rate (currently $1.26 per $100 of assessed value)

The taxes you see listed on listings/properties for sale at this moment are typically for the current year. I say “typically” because sometimes, the tax amount listed is for the previous year.

The amount of taxes you owe changes yearly because updated assessed values come out the beginning of each year (in Loudoun County). And the tax rate can change as well. The county/local jurisdiction usually decides whether to change the tax rate after tax assessments come out. They look at their budget and see if they need to increase the tax rate in order to make up for a loss/lack of revenue thanks to overall lower assessed values (which typically happens in a down housing market where real estate values are/have declined).

In a nutshell, real estate taxes can and will change every year. What your total tax bill will be in the future is an unknown because of the process (as described above), but typically, the amount stays about the same or goes up rather than down.

Note: Every county/jurisdiction has a slightly different process - how Loudoun County does things is not the same as others.

If you have any questions, feel free to drop me a line or contact the local tax assessor’s office in your jurisdiction. Here are links to some of the assessor’s web sites throughout Northern Virginia…

• Loudoun County
• Fairfax County
• Prince William County
• Arlington County

Update on Van Metre Homes in Stone Ridge

Over the weekend, a home buyer client and I spent several hours at Van Metre Homes in Stone Ridge. He wanted to take a first-hand look at their models, lots, options and price out a town home to his liking. I would like to pass along some of the information to you as well (if you’re interested)…

Van Metre has sold out of their single family home collection, but they are still building town homes. You can get a fully loaded, 2 car garage Stanton model town home in Stone Ridge for just under $400K (interior unit). The exterior unit will put you just above $400K But these prices include almost all of the bells and whistles including…

• Gourmet kitchen upgrade
• Granite counter-tops
• Upgraded appliances
• Kitchen back-splash
• Hardwood entire main level
• Upgraded 12×12 tile in foyer and bathrooms
• Extra recessed lights throughout home
• Ceiling fans in all bedrooms
• Upgraded fixtures throughout
• Fireplace on main level
• Bathroom in basement
• 2-level deck - one level off of main level and another off of master bedroom
• 3 level extension (brings the square footage to 2500)
• double bay window elevation and side bay window off family room (end unit only)
• and more…

As of yesterday, there are three interior Stanton models available for March delivery. There are also several Stanton interior and two exterior units available for April delivery. The March delivery town homes are about $12K less than the April ones for two reasons…

1. Van Metre has already started construction on the building (the closer you get to delivery, the more the discount)
2. The ones being delivered in April back to a 50 foot tree save buffer rather than other town homes

If you are interested in getting more information about the community, town home models, lots, options or incentives, email or call me - danilo.bogdanovic@gmail.com - 703.582.6900. I would also be happy to meet you at the Van Metre sales center and show you around the community.

And remember, don’t go at it alone - the sales price already includes a Buyer’s Agent commission so you might as well have representation from an experienced Buyer’s Agent who is familiar with that builder, that community and the specific sales manager working there. (And no, the builder won’t discount the price the amount of the commission if you don’t have an agent)

Cost of New Homes Goes Up at Pulte Homes’ Windermere Community

New construction town homes just got more expensive at Pulte Homes’ Windermere community in Ashburn, Virginia. Though base prices didn’t go up, a large number of options that were once standard on the Tyler and Westley II town home models will no longer be standard (click here for my video tour of the Tyler model and click here for my video tour of  the Westley II model).

What is no longer standard?

The previously standard options that are no longer included for free are,

• boxed ceiling in Master Bedroom
• window, door, baseboard, chair rail and crown molding package
• 3-piece plumbing/full bathroom rough-in in basement
• 42 inch cabinets in kitchen
• 12″ x 12″ designer ceramic tile floor in kitchen and nook
• recessed lighting
• double bowl under-mount stainless steel sink
• granite counter tops in kitchen
• Energy Star appliances in kitchen
• granite counter tops with under-mount porcelain sinks in all full bathrooms
• 6″ x 6″ ceramic tile floors in all bathrooms
• elongated water closet in master bathroom and powder room
• insulated garage door with openers and remote
• electrical outlets - front and rear
• double hung insulated vinyl “Low E” windows with grid inserts and screens

What does this mean to you?

The majority of the previously standard options are pretty “standard” in today’s day and age to begin with so you’ll probably want them anyway. The estimated cost of the options listed above is upwards of $15K, which means you’ll be spending at least $15K more than you would have previously.

Don’t be bummed

Though I can’t say for sure, I have a feeling that Pulte may be raising base prices after the next release of lots. With inventory down, demand still strong and the tax credit being extended and expanded, builders have been raising base prices and/or cutting the list of standard options. If the market continues this way, they will continue to do the same thing in the future.

But…even though the overall cost went up, I know of incentives and ways to negotiate money off the total price that will make it much less of an increase in overall cost than what’s on paper.  See…told you not to be bummed

If you would like more information about this or any other new home builder in the area and to save money when buying new construction, click here to contact me - I would be happy to help.

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Pulte Homes Windermere Community Site Map

Pulte Homes King of Customer Satisfaction in Loudoun County/Washington, DC metro area

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!”

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.

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.

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

Loudoun Community Spotlight: Pulte Homes, Hamlets at Red Cedar

This Loudoun County Community Spotlight falls on the Hamlets at Red Cedar community by Pulte Homes. The community is located off of Evergreen Mills Rd in Leesburg, VA (click here for map). Once the community is complete, there will be a total of 350 homes situated on 1300 rolling acres.

Personally, I think that the Hamlets at Red Cedar community is ideal for those looking for that “private and quaint” community feel yet, be close to amenities and things to do.

The majority of single family homes in the Hamlets at Red Cedar community are located on 1/2 acre lots and the entire community is surrounded by conservancy lots ranging from 10 to 100 acres. This gives you privacy from surrounding development for up to 100 years (based on current zoning laws regarding conservancy lots).

Even though being inside of the community give you a feel of being away from the hustle and bustle of daily life, you are only 5 to 10 minutes from Brambleton Town Center, 10 to 15 minutes away from downtown Leesburg and about 10 to 15 minutes from the Dulles Greenway and the future Moorefield Station, which will include commercial, residential, retail and a Silver Line metro rail stop (coming 2016).

The Hamlets at Red Cedar is made up of town homes and single family homes. The town homes along with the Ambassador and Manor single family home collections have all been sold, but there are still some Stoneridge collection single family homes and home sites available.

The Stoneridge Collection offers 8 different models ranging from 2510 square feet on the upper two levels to 4589 square feet on the upper two levels. Base prices range from $539K to $739K. Delivery times are about 6 to 9 months though there are some quick delivery “spec” homes with move-in dates as early as November.

Lot sizes on the Stoneridge Collection are 1/2 an acre giving you more land than 90+ percent of the rest of Ashburn and Leesburg. One nice thing about these lots is that the majority of them still have trees in the back of them rather than just a flat piece of land where you can still see the house behind you.

Amenities include a club house with pool tables, a community living room, gym and pool. There are several parks, tot lots and trails throughout the community as well.

If you are interested in knowing more about the community, home models, available lots/home sites, spec homes, incentives, etc., email or call me - danilo.bogdanovic (at) gmail (dot) com - 703.582.6900.

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Slideshow of Hamlets at Red Cedar community

Because Now is Much Better Than Later

An increasing number of blog readers, sellers and buyers have been contacting me for real estate help and advice. I’m glad to help whenever I can, but many contact me after the problem has already occurred. Contacting me after the fact is often times too late - the damage has already been done. Here are two examples…

My parents just relocated from Delaware and bought a house in [city removed for privacy reasons], VA. On their 2nd look at the house they noticed the stove was different than what was pictured on the online listing.

It was at that time their agent then told them the house was “as is”, however, come to discover after the purchase and moving in and comparing the online pictures to the actual home, all of the kitchen appliances were switched, ceiling fans were removed, the replaced dishwasher wasn’t properly attached and hooked up - it leaked and damaged the hardwood flooring, and the upper air unit had serious problems (due to the “fix” the selling agents inspector supposedly made).

They only had limited time to preview homes and were basing their decision largely by the online pics. Anyway, just seems the out of town “old folks” were taken advantage of.

Your wise thoughts are appreciated. Seriously, I value your input. Thx!

“T”

I have a question that I hope you can  answer.

We just purchased a home in Loudon county…we are actually from out of state & were not familliar with any inspectors. Our agent recommended an inspector that she uses all the time. Well, he missed some obvious things such as rotten plywood for the roof & a rotten water damaged  huge window that is totally shot.

Now these are basic things for the envelope of the  house…how could he have missed them?

To top it off I had asked our agent if he was licensed,insured & bonded she said that he wass. I have since found out that he doesn’t carry any liability insurance for  what he misses–he only carries workmens comp for himself. I also have not been able to find his license# & have asked my agent to get it for me  & she has not responded to my request.

What would your recommendation be at this point? Should we file a claim with the Real Estate firm for sending us to someone who quite possibly is unlicensed & definitely not insured properly? I do not feel properly represented by our agent.

“A“

Though I would love to help “T” and “A” as well as everyone else who has contacted me, I can’t always do so. In “T’s” parents’ situation,  the problem could have been avoided had I been involved in the process in the beginning. But now, they have to battle it out with the real estate broker, lawyers, etc. The same holds true for “A” and her situation.

In many other similar situations, many folks are already working with a real estate agent and/or they are too far into the process and can’t go back and fix the issues that are costing them money and grief now.

Avoid getting yourself into the same situation as these and other sellers and buyers have. And avoid paying the price that they now are (literally and figuratively).

If you’re considering selling your house or purchasing a home in today’s market, allow me to help you now - because now is much better than later.

Click here to contact me now.

This Month’s Special: 58% Off Greenvest Land in Loudoun

Vienna-based Greenvest LC used to own 4100 acres in the Dulles South area of Loudoun County. That all changed two days ago when the land, valued by some at $165 million, was auctioned for $69 million.

iStar Financial, the company that originally lent Greentvest $130 million for the land, foreclosed on the land. The land was auctioned off this past Tuesday at the Leesburg courthouse steps.

The winning bidder?

iStar Financial (they sure love spending money, don’t they?)

What led to the foreclosure auction?

Greenvest was hoping to have the land subdivided into four communities — Greenfields, Lena, Broad Run Village and Arcola. But the public outcry against further intercounty development and the congestion that would come along with it led to the county denying requests to rezone the land. And that left the development dead in its tracks.

Last year, Greenvest tried to sell 100 of those acres to the Loudoun County school system, which wanted the land for future schools. The Loudoun School Board rejected the idea over concerns that the $20 million price tage was too high.

With no chance of moving forward with the development, Greenvest defaulted on its $130 million loan. That led to foreclosure proceedings, Tuesday’s auction and iStar Financial, the company that originally lent Greenvest the $130 million, buying the land back for $69 million.

What now?

iStar Financial will try to sell the land in order to recoup some of the money lost (and spent) throughout this whole ordeal. But they face some serious hurdles:

• previous requests to rezone the land have been denied
• tightened lending/financing guidelines
• a weak local and national economy
• increased proffers (click here for more on that)

On a related note, the $165 million valuation seems to have come from Loudoun County itself - probably for tax revenue purposes - and is most likely not the land’s true market value (just look how much it actually sold for at the auction).

At $16,829 per acre, it may seem like quite a bargain. But it may be a while before iStar sees a return on their purchase. As one real estate developer who attended the auction said, “I don’t buy green bananas.”

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