Does Your Home’s Web and Curb Appeal Get an A+? It had better.

There are many pieces to the puzzle when selling your home in today’s market. Two of them are web appeal and curb appeal. Both are extremely important and should be a main focus when selling your home. If either are not done well, you may turn away potential buyers and/or get a lower priced offer than you had hoped for.

Web Appeal

If your home’s web appeal is not A+, your home will fall into the “possibilities” and “discarded” folders of buyers’ searches. If your home stands out from the crowd and makes buyers say, “That looks nice!”, then your home goes into the “favorites” or “must see” folders.

Speaking from experience along with countless studies done on the topic, if your home is not in the top 3 to 5 of a buyers’ “favorites” folder, the buyer will most likely not want to see your home in person. And you can’t sell a home to a buyer who doesn’t come to see the home in person.

Curb Appeal

Once a buyer drives past your home or arrives to see it in person, your curb appeal is your home’s first impression to the buyer. The first impression can attract or deter the buyer within a matter of seconds. If your curb appeal is lower than an A+, someone driving past your home may say, “Bleh. The other house around the corner looks better”.

And someone coming to see the house in person will have a less than positive outlook on the entire property if the curb appeal isn’t excellent. You may either deter a potential buyer from seeing (and buying) the house or you may lose money because anything negative equals less money that a buyer will offer.

If you have your home on the market or about to put your home on the market, what grade would your home get for web appeal and curb appeal? If it’s not an A+, there’s something wrong. No, getting an A+ in web appeal and curb appeal is not like acing a master’s level class. And it can be done by even the busiest of sellers and listing agents.

So how do you get an A+ in web appeal and curb appeal? I’m going to go into detail about web appeal and curb appeal each in a separate blog post. The blog posts will be coming out over the next 10 days so grab the RSS feed, add this blog to your Google home page/reader/Google+ or other service you are using or just check back.

Regardless of how you access the posts, make sure you read them. Though the posts are free for everyone to read, what you get out of reading them may be the difference in whether you sell your home or not and/or may make you thousands of extra dollars when selling your home.

State of the Loudoun County Housing Market

Wondering what the current state of the Loudoun County housing market is and where it’s trending? Here’s a detailed breakdown…

Loudoun County Home Buyer Activity Up

As you can see in the graph below, the average number of homes that go under contract each month in Loudoun County has been around 400 for the last half of 2010. But, starting January 2011, the number of homes going under contract increased dramatically and has been averaging just below 600 per month for the past 4 months. This means that buyers are out in greater force and actively buying properties – almost 50 percent more this year than they were the last half of 2010.

Loudoun County Housing Inventory Up…Down…Up

The number of active listings (homes for sale) in Loudoun County makes me think of the Grizzly in King’s Dominion. After hitting 1742 in September 2010, the number of active listings dropped quickly to a mere 1200-something in December, January and February (that’s a ridiculously low amount). But then it climbed quickly and is back up to 1696 as of June 2011. The increase is a trend that points away from a seller’s market, but don’t be fooled…1700 is still considered low when it comes to the total number of homes for sale in all of Loudoun County.

Loudoun County Median Sales Price Up

While the median home price in Loudoun County took another dip in the last half of 2010, it’s been on the rise in 2011. After going down in the last half of 2010 and hitting a low of $317,500 in January 2011, the median sales price hit $410,000 in June 2011. That’s almost a $100K/32% increase!

Loudoun County Average Days On Market Down

After hitting an average of only 49 days, the average days on market in Loudoun County went up to 86 (which is still not too shabby) in February 2011. Since then, the average days on market has dropped back down to 60. That’s only 2 months and is an important technical indicator that points to a seller’s market (though we need to keep an eye on the increase in active listings which may soon start to put upward pressure on the average days on market).

These statistics reinforce what my clients, myself and other active agents have been seeing on the ground…

• More buyers and investors are out buying a home or investment property this year than last year
• The extremely low interest rates have made a positive impact on the market
• Inventory is down so finding the right home for a buyer takes longer now than it did last year (patience is a virtue)
• Sellers that price, market and present their homes correctly are getting offers sooner than they would have last year
• Sellers have more negotiating power this year than last year (while buyers have less)
• Prices are higher today than they were last year (supply vs demand)

If you’re thinking about buying or selling a home in Loudoun County or would like to know what the market is like in your specific community, click here to contact me – I would happy to provide you with a free hyper-local market analysis and CMA.

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.

How The First-Time Home Buyer Federal Tax Credit Works

Bob and Sally show us how the first-time home buyer federal tax credit works (click here if you can’t see the video below)…

Hat tip to NRVLiving.com and NVAR.com

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Time’s a Tickin’ On the First-Time Home Buyer Federal Tax Credit

Time’s a Tickin’ on the First-Time Home Buyer Federal Tax Credit

If you would like to take advantage of the first-time home buyer Federal tax credit, you’ll need to act soon because time is running out. The tax credit expires December 1, 2009, which means that you have to settle on your new home no later than November 30, 2009.

What does this mean practically speaking?

Despite November 30 being the deadline, you should aim to settle by November 15th to help leave room for any delays on your or the sellers’ end. Also, settlement companies will be swamped with settlements the last two weeks of November and may be delayed themselves. And don’t forget that the Thanksgiving holiday takes away at least one, if not two business days at the end of November.

At this point, short-sales are pretty much out of the picture as far as settling in time to take advantage of the first-time home buyer federal tax credit. It takes an average of 90 days to get a response from a bank(s) on short-sale approval and then you will need another 3 to 4 weeks after that to settle. This puts you way past the November 30 deadline.

If you are a home buyer going after a traditional resale or foreclosure, you should ratify a contract no later than about October 1 to 15 depending on the type of financing (conventional vs FHA vs VA). Conventional financing takes about 30 days from date of ratification to process and fun. FHA financing takes 30 to 45 days. VA financing takes closer to 45 days. (These are general numbers – the lenders I work with closely are awesome and get everything done within 30 days no matter what type of financing you go with)

If you are a home buyer who wants to take advantage of the first-time home buyer federal tax credit, you need to start actively searching for a property to purchase immediately. This will give you about a month to search for a property, submit and ratify an offer with enough time to settle before the deadline.

Wondering how to get started in home buying process?

First - click here to read my post, “The Home Buying Timeline”

Second – Click here to contact me so we can chat more about your specific situation and see what’s best for you.

Related Articles

“Move fast to take advantage of first-time homebuyer federal tax credit” – Washington, DC Examiner

Information on first-time home buyer federal tax credit from the Internal Revenue Service (IRS)

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.

Leesburg Single Family Home Median Price up $35K

The median price of single family homes in Leesburg (20175 and 20176 zip codes) has gone up $35K since April. With inventory down 33 percent since 9/08 and buyer demand up, median prices have gone up. You can feel the effect of this in the housing market conditions in the area – Buyers have less inventory to choose from and more competition from other buyers while sellers are seeing more buyers coming through and competing for their property (if priced correctly) than since 2005.

Leesburg Single Family Home Median Price – up $35K

Leesburg Single Family Home Inventory – down 33 percent

If My Iraq War Veteran Home Buyers Just Got a 3.875% Interest Rate, Why Can’t You?

My Iraq War Veteran first-time home buyers (that’s them in the photo) and I thought we were hearing things when the lender said, “You qualify for a VA loan at an interest rate of 3.875 percent.” But we heard correctly! Qualified Veterans can get an interest rate as low as 3.875 percent on a VA (Veterans Affairs) loan.

Here’s the deal my Iraq War Veteran first-time home buyer clients got just last week:

• 3.875 percent interest rate for first 5 years
• No points
• The rate adjusts according to the Treasury ARM Rate (which is better than the LIBOR ARM Rate)
• The interest rate can’t increase more than 1 percent per year (only after the first 5 years)
• The maximum interest rate they can ever have is 8.875 percent regardless of how high future rates are
• No prepayment penalty

They are not planning on staying in their home for more than 5 to 7 years so this loan is perfect for them. A 30 year fixed rate VA loan is currently in the 5.25 percent range so they are saving about 1.5 percent on the interest rate. That comes out to a savings of $209.02 per month based on the amount they financed.

By the time they move, their rate will be between 3.875 percent and 5.875 percent. I think it’s safe to say that either of those rates will be lower than what the 30-year fixed rates will be in 5 to 7 years.

Besides saving money, why else is the low rate and cap so important?

Because the loan is assumable. This means that rather than a buyer having to go out and get their own financing/loan to buy this home, if they qualify, they can assume the existing loan and it’s terms (aka interest rate).

Let’s say rates are at 10 percent in 7 years. A qualified buyer could purchase their home and assume the loan at no more than 5.875 percent with the cap being at 8.875 percent.

And also because they’re building equity in their home more quickly. The lower the interest rate, the more of the monthly payment goes towards principal rather than interest. This means they will have paid down more principal and they will have more equity in their home than had they gone with a 30-year fixed rate loan at 5.25 percent.

How fast do you think they will be able to sell their house in 7 years when rates are 10 percent with “Current 3.875 to 5.875 percent interest rate assumable loan”?!

Can you say, “FAST!” No matter what the housing market conditions are like in 7 years, this property will stand out above the rest for the assumable low-rate financing alone.

Let’s do the math and see why.

Let’s say the property is worth $350K and rates are at 10 percent 7 years from now…

• If the buyer finances $350K at 10 percent, their Principal and Interest comes out to $3,071,50
• If the buyer assumes the current loan at 5.875 percent (the most it can be in 7 years), their Principal and Interest comes out to $2,070.38

That’s a savings of $1,001.12 per month.

In addition to saving $1K per month, the buyer will be building equity in the home much faster at the lower interest rate than they would at a higher interest rate because more their monthly payment will be applied to Principal rather than Interest.

Now you see why buyers will be all over this property like white on rice!

It’s a “win now and win later” situation for my Veteran first-time home buyers, as well as all Veteran home buyers.

If you are a Veteran and thinking about buying a home, email or call me and I will put you in touch with the loan officer that my clients worked with.

How to Buy a New Home and Still Have Representation

If you’re thinking about buying a new home from a builder, check out this question posted by new home buyers on Trulia:

My husband and I put an offer on a new house without representation from a Realtor. We have signed a builder’s contract. Can we still get a Realtor to represent us to go over everything until closing?

My response:

Yes, you can hire a Realtor to represent you at any time. But you will have to pay them out of your own pocket. The builder will not pay your Realtor any commission because you did not have them with you at the very beginning of the process and the transaction.

I’d be happy to chat with you more about this, but it’s a better phone call than an email or comment. What’s the best number to reach you on?

On a related note, you may want to read this post regarding a new home builder taking home buyers to the cleaners (to the tune of $50 million) - http://loudounscene.com/2009/07/beazer-homes-to-pay-50m-to-victimized-home-buyers.html

Here are excerpts from other responses:

I used to work New Homes for a decade. Keep in mind when you a prospective buyer enters the Sales Office of a new home commuity and you are asked to fill out and sign the little registration card, that is so the builder knows how the buyer came to the community. Builders have a formula they use to figure out the pricing of a community. Using historical information, they budget in the price the number of homes that will be sold with Realtor representation and if the advertising campaigns work well,and the road signage works well, sometimes they make out better with more buyers wandering in without representation. It’s business. They are trying to sell and make a profit. My advice for others out looking, if you have a Realtor or feel you want Realtor representation, just write on the card you have a Realtor. That way you will have that option at a later date if you feel you need it.

Remember Builders are no different than glorified For Sale By Owner situations. The person onsite works for the builder. Period. There responsiblity is to sell the homes on that site.

- Peggy James

Yes, you can, but the builder is under no obligation to pay them a commission. So if you want to pay them or they want to do it because they love you, its all good.

- Fred Wolfe

I sell new construction and new home communities with builders/developers of New Construction and New Home Developments and have so for years like many real estate professionals doing so.

This [registering of the buyer's agent/broker] must be done with broker/agent and potential buyer on the very first visit in the Sales office with the Sales Representative for the new home development on the floor during time of walk in to preview models of the new home community.

After first initial registration, the would be buyer can go back a number of times with their friends and family to preview models again in consideration of their purchase in that community once already registered with their agent representing them.

No money is out of pocket with the buyer. The commission earned to the buyers agent/broker is paid by the New Home Developer to the broker and broker/agent representing the buyer and the buyer is allowed to have his own agent represent him in the purchase of the new home development. The new home builder developer of that community represents then the seller which is the Builder of the new home development, and the agent/broker represents the new home community buyer for that developer.

- Sandra Allman

Don’t put yourself in the same situation as these new home buyers. Be prepared and you can have representation throughout the entire process and transaction – without having to pull extra money out of your pocket.

And the great thing is that being prepared is simple:

1. Before you start looking around, interview and hire a knowledgeable Buyer’s Agent experienced with new homes and builders in the area
2. Bring your Buyer’s Agent with you on your first visit and/or have them go out and preview new construction home sites and models on your behalf ahead of time

If you need to speak with an agent that knows the ins and outs of new homes and builders, email or call me. I would be glad to help.

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Brambleton Launches “Immediate Delivery/Spec Home” Blog Site

Gulick Group Lowers Base Prices, Revises Products in Brambleton

New Home Buyers: What You Don’t Know Can Cost You

Beazer Homes to Pay $50M to Victimized Home Buyers

When Does the $8000 First Time Home Buyer Credit Expire?

You’ve probably heard about the $8000 first time home buyer credit (click here if you haven’t or would like more information about it). But do you know exactly how long you have before it expires?

IMPORTANT: This is how long you have until it expires, but you must settle/close on the purchase of your home by this date. That means you should be starting your home search in the near future especially if you’re considering purchasing a short-sale property (click here to find out how much time each type of transaction takes to close).

H/T to Ken Brand for sharing about the widget

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