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

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.”

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

Two Fellow Realtors, Friends Receive Inman Innovator Awards

A big “shout out” to fellow Realtors and friends Frank Llosa, founder of FranklyMLS.com and Jim Duncan, co-founder of Nest Realty Group in Charlotesville, VA. Frank received the 2009 Inman News Innovator of the Year Award. Nest Realty Group received the Most Innovative Brokerage or Franchise Award.

Frank and FranklyMLS.com

If you’ve never checked out FranklyMLS.com is, you should. It’s the most up to date and user friendly real estate search site for consumers in the DC metro area (and beyond). FranklyMLS.com is constantly updated directly from the MLS – more so than any other site including Realtor.com (Realtor.com and others can be up to 2 weeks out of date).

The coolest thing about the site is that it allows Buyer’s Agent to post reviews and photos of properties they’ve previewed or shown to clients. In a down housing market where Listing Agents sometimes stretch the truth or Photoshop photos (or not take any photos at all), it’s great to read objective reviews and see real photos.

Other cool things about the site are its cell phone mode, it loads quickly, you can search for homes by keywords, you can easily search for short-sales or foreclosure/bank-owned properties…the list goes on.

And if you don’t know Frank, check out his blog – blog.franklyrealty.com – or on YouTube. You’ll quickly find out that he’s definitely not your typical real estate broker.

Jim and Nest Realty Group

Nest Realty Group joins a small group of non-related brokerage firms across the U.S. that is raising the bar in real estate. From Nest’s “About Us” web page,

Nest Realty is changing the way real estate is transacted in Central Virginia. With the best interest of our clients in mind, Nest is built on a client-centric business model. We believe in engaging the consumer, not selling them. Nest agents are technologically savvy, up-to-date on all real estate trends, and committed to informing clients of every detail of the selling or buying process. This ensures an enhanced experience for buyers, sellers, and agents.

Jim and I have talked many times about how many brokerage firms are stuck doing things the way “they’ve always been done” despite it not being the way it should be done today. I’m fortunate to work with a brokerage firm that already “gets it” and is raising the bar – Market Advantage Real Estate – while Jim and Jonathan Kauffman (the main person behind Nest) started their own brokerage firm that built on a similar premise.

For more about Jim, check out his real estate blog – RealCentralVA.com.

Congrats once again to Frank, Jim and Nest Realty Group!

New Law Means it May Take a Month to Get a Sign Post Installed

Update: This is not necessarily a new law. What is new is Virginia’s seriousness about enforcing the law and actually imposing fines.

Virginia just passed the has begun enforcing it’s “Underground Utility Damage Prevention Act”, which requires that Realtors® and sign companies call the Virginia Utility Protection Service (aka Miss Utility) before putting up any sign that involves sticking something in the dirt (including typical spike signs).

How does this affect Virginia home sellers?

It means that the time to get a sign put in your front yard just went from a few days to well over a week, a potential delay in putting your home on the market.

Why so long?

Because Miss Utility is quoting 3 to 4 business days to mark the property (despite the law claiming it only needs 48 hours). Then, the sign company takes 2 to 3 business days to install the sign post. That equals 5 to 7 business days from start to finish.

And that time frame will soon increase dramatically. A total of 4059 new listings came on the market between 1/1/09 and 6/30/09 – in Loudoun County alone. Imagine what is going to happen now that almost every new listing in Virginia has to go through Miss Utility before putting a real estate sign in the ground. I’d be willing to bet that it will soon take up to a month before Miss Utility has a chance to make it out to mark your yard.

Who is allowed to call Miss Utility to mark the property?

Only the person/company actually installing the sign. The overwhelming majority of agents use a sign company to dig the hole and install the sign post in their seller clients’ yards. That means that only the sign company can call Miss Utility. The problem with that is, the sign company has no clue what your property looks like nor how it’s situated on the lot, where underground utilities are, etc., so they can not tell Miss Utility precisely where the sign will go nor where to mark the property. This could further delay the process and/or increase the cost.

Is there a way around it?

Home owners are exempt from the law, but I have yet to find a seller who is willing to dig up a hole and put a real estate sign in their front yard on their own. And don’t forget – whoever installs the sign post is probably going to be the person listed as “at fault” should an underground utility line be damage/broken.

The other loop hole is to use a “coat hanger” sign with “wires”, but that looks about as professional and appealing as a hand written “For Sale” sign hanging by a string from the tree in the front yard.

And no…you can’t claim that your dog dug the hole and the sign post just happened to end up in the hole somehow.

P.S. If Miss Utility finds out that the person/company who installed the sign didn’t call them first, it’s a $2,500 fine.

What’s the solution?

Allow either the homeowner or their listing agent to call Miss Utility to mark the property even if they’re not the one actually installing the sign. Miss Utility could easily be called a week or several weeks ahead of time so that when the sellers are ready to go on the market, the sign can be installed by the sign company within 2 to 3 days just like normal.

As far as the “safety concerns” cited by Virginia regarding this solution, I don’t buy it – once the property is marked, the sign company can easily see where Miss Utility marked the property and put the sign in safely.

Local and state Realtor® Associations (and others) are lobbying Virginia to come up with a solution. Until there is one, plan on at least 1 to 2 weeks to get a sign post in the ground.

Loudoun Community Spotlight: Goose Creek Bend, Brookfield Homes

This Loudoun County community spotlight falls on Goose Creek Bend, a Brookfield Homes community (click here if you don’t see the slideshow above). Goose Creek Bend is located off of Gulick Mill Rd less than a mile from Sycolin Rd on the border of Leesburg and Ashburn (click here if you don’t see the map below).

View Larger Map

All of the lots are 1+ acres and back to trees. Here’s the site plan:

All of the homes within Goose Creek Bend are luxury single family homes and offer 4 to 7 bedrooms, up to 6.5 baths and up to 4 car garages. The various models offered in the community are:

• Canterbury
• Davenport
• Halley
• Meridia
• Keenan

Base prices range from $599,990 to $709,990 with square footage ranging from 3091 to 3944 on the upper two levels.

Pros

• Large lots
• Private community
• Unique models/floor plans
• Close to ramp on/off Dulles Greenway and Sycolin Rd
• Amount of square footage, upgrades and lot size for money

Cons

• Lack of amenities
• Shopping is at least 15 minutes away (by car)
• Gulick Mill Rd is a gravel road (not good for all you sports car enthusiasts)

Brookfield Homes resumed sales in the community a short while ago and there are a handful of lots still available. If you would like to know more about the community, lots, models or available incentives, click here to contact me.

Why Buyer Agents Should Attend Home Inspections

From what I’ve seen and heard within the real estate community, some Buyer Agents attend their Buyer client’s home inspections while some do not. Personally, I believe that a Buyer’s Agent should attend every one of their Buyer client’s home inspections for a variety of reasons.

1) A home inspection almost always brings up questions and concerns that are best answered by the Buyer Agent, not necessarily the Home Inspector. For example, the Home Inspector finds out that there is a condensation leak in the HVAC unit and that the unit is near the end of its life expectancy. How does a Home Warranty affect that? And if an item is noted on a home inspection report, will the home warranty company consider it a “pre-existing condition” and not cover it in the future if it’s not fixed prior to settlement?

2) Being at the home inspection saves a lot of future emails, texts and calls back and forth between the Buyer’s Agent, Home Inspector and Listing Agent. Having everyone present at the home inspection allows the Buyer and Buyer’s Agent to get all their questions and concerns out on the table and answered right then and there. This is especially important if you’re coming up on the home inspection contingency deadline and need to submit your home inspection addendum and inspection report right away.

3) As the Buyer’s Agent, it is you who will conveying and negotiating the home inspection items with the Listing Agent. If you don’t have first hand knowledge of the issues, it will be difficult to properly explain the issues to the Listing Agent and negotiate them properly. Home inspection items can range from a few bucks to thousands of dollars so negotiating them properly is not a “small” deal.

4) As a Buyer’s Agent, your Buyer client is paying you thousands of dollars to represent and guide them throughout the entire real estate purchase transaction. Even though your Buyer’s Agency Agreement with your Buyer clients may not say, “I will attend the home inspection”, go the “extra mile” – your Buyer clients will love you that much more.

Buyers Lose Offers, Pay More Thanks to New HVCC Appraisal Rules

The new Home Valuation Code of Conduct (HVCC) rules that went into effect May 1, 2009 were supposed to protect consumers purchasing and refinancing homes by eliminating fraud and inflated appraisals. But the new appraisal rules are having a completely different and negative effect. They have made buying real estate harder and more expensive for home buyers. And it’s not only buyers getting hurt – it’s sellers, appraisers, real estate agents and lenders.

I’m not going to go into detail as to how the new process works here on this post. For a great explanation of that, check out Chris Griffith’s post entitled, “The HVCC Wal-Mart Effect”.

What I am going to discuss is how buying and selling real estate has changed since the new rules went into effect. Let’s take a look at real life examples involving either my or fellow agent’s clients…

Real life example #1: Appraisals are coming in low. And sometimes ridiculously low. Buyers who don’t have a hidden stash of thousands of dollars to make up the difference between the appraised value and purchase price are left to try and convince the seller to lower their purchase price. Any seller and their listing agent who knows the local real estate market and values will know that the appraisal is not accurate and tell the buyer to take a hike (in this market, there’s another ready, willing and able buyer nearby).

This just cost the buyer the chance to buy a home they love and they have to start back at square one. The seller has to go back on market in order to avoid losing thousands of dollars thanks to an inaccurate appraisal.

Real life example #2: Many Listing Agents and sellers no longer want to see FHA or VA financing on an offer. They’re either taking lower offers that are doing conventional financing or flat out saying, “No FHA or VA financing.”

Buyers with FHA or VHA financing are getting their offers rejected or can’t even submit an offer on many properties.

Real life example #3: Based on the average time from contract to settlement date (30 to 45 days), buyers are locking in their interest rates, setting up movers, contractors, turning in notices to their landlords, terminating leases, etc. As little as only 1 week before settlement date, the appraisal is nowhere to be found. Sometimes, not even the appraiser is anywhere to be found. Either the appraiser has to be hunted down or another appraisal has to be ordered. Either way, settlement is delayed.

To the buyer, this could lead to their rate lock expiring and their interest rate becomes higher than at the time of contract. It could also mean that they now have to pay a penalty for rescheduling movers, contractors, the lease termination date, etc. And even worse, it could mean that the buyer is in default of the contract – this could lead to a $100 per day penalty and/or loss of earnest money deposit.

Real life example #4: Appraisal fees were an average of $300 to $350. Now they’re an average of $400 to $500.

Who pays the appraisal fee? The buyer.

Real life example #5: A mortgage broker goes with lender “A” for the buyer’s financing only to find out that lender “B” has a lower interest rate and lower closing costs. Rather than lender “B” being able to use the completed appraisal from lender “A,” lender “B” has to order a new appraisal costing the buyer another appraisal fee.

The buyer has to pay another $400 to $450 for the second appraisal.

These are just some of the real life examples of what’s going on out there. As long as the HVCC stays in effect, home buyers will continue to pay more money for crappier service and, in many cases, their chances of getting their offer accepted will continue to be diminished. Not only is the HVCC screwing the transaction up for buyers and sellers, the new HVCC rules could be the single largest hurdle to US home price recovery.

The HVCC needs to be rescinded or changed – ASAP!

“On The Streets” of the Loudoun County Housing Market

You read the news and see the statistics. You hear what you’re neighbors and friends are saying. But what is really happening “on the streets” of the Loudoun County housing market?

Here you go…

Buyers looking to get a great deal on a property are seeing well priced properties sell within weeks if not days of coming on the market. Many very well priced properties are seeing multiple offers and bidding wars – 2, 5 even 10+ offers. Many buyers are bidding on 2, 3 even 5 properties before finally having the winning offer and buying a house.

Sellers who price and market their property correctly are seeing lots of buyers coming through their property almost immediately after coming on the market. An offer within the first few weeks on the market is common for properly priced properties. On the other hand, no activity and no offers is the norm for overpriced properties. In a nutshell, Value is King.

We’re also seeing an up-tick in median prices in some areas of Loudoun County (as well as some areas of Fairfax County) – though this does not necessarily reflect an increase in any one specific property’s value. Take a look at the latest statistics regarding median prices and inventory levels in different parts of Loudoun County to see for yourself.

The local market is such because inventory levels (number of homes on the market) have decreased an average of 50 percent since 2007 and an average of 20 percent since this time last year. At the same time, buyer demand (aka number of homes being sold) has increased by an average of 50 percent thanks to historically low interest rates and the $8,000 first-time home buyer credit. This translates to more buyers trying to buy the same type of property, but there are less homes to choose from. But even though more buyers are fighting over fewer properties, buyers are not being suckered into or getting frustrated to the point of overpaying for a property.

Note: Despite the majority of the Loudoun housing market showing signs of stabilization, the $1M+ home sector is not fairing as well. Inventory is stagnant as is buyer demand. This is bad for sellers of $1M+ properties, but good for home buyers in that price point.

Another trend we’re seeing is a substantial decrease in foreclosure/bank-owned inventory on the market (thanks to the foreclosure moratoriums of late 2008/early 2009) and a significant increase in short-sale inventory. This has led to increased frustration on the part of buyers and agents some of whom are not familiar with the nuances of short-sale transactions and don’t know how to properly navigate through such a transaction. Getting a response from the bank(s) on a short-sale can take as little as 45 days and as long as 6 months with the average being about 90 days (more on this in a future post over at LoudounForeclosures.com).

Up until this year, many real estate investors were sitting on the sidelines as median prices continued their downward trend and good investment opportunities were rare. But that has changed. We’re seeing investors getting back into the market buying up distressed properties, doing rehab on them and then either flipping them for a 10 to 30 percent profit or renting them out as part of their long-term investment plan. Investors are especially prevelant in parts of Sterling and Leesburg.

And that folks, is the reality of the Loudoun (and Northern Virginia) housing market.

If you would like me to go into more detail or need information about a specific town, neighborhood or subdivision in Loudoun (or north/east Fairfax County), feel free to contact me.

Sterling Housing Market Update

Here’s a look at what’s going on with the Sterling housing market (all zip codes)…

Sterling Median Price

The median price has been falling in Sterling since the market turned until about March of this year. Over the past rew months, the median price has spiked significantly (by almost $100,000).

Sterling Inventory

Inventory of single family and town homes in Sterling has dropped by 60 percent since 2007 and 56 percent since this time last year. The condo inventory in Sterling has dropped by 45 percent since this time last year. This is most significant decrease of inventory out of any large town in Loudoun County.

Sterling Housing Market Overview

The huge drop in inventory throughout Sterling along with a huge increase in buyer demand has lead to a huge shift in the housing market in Sterling. Sterling has some of the lowest price points in Loudoun and lots of foreclosure and short-sale activity making it extremely attractive to first-time home buyers and investors. We’re even seeing areas of Sterling with slight to substantial recent price appreciation.

Homes that are priced well are getting a lot of traffic and a purchase offer within 1 to 2 weeks on the market. Homes priced slightly below (or way below as is the case with many bank-owned and short-sale properties) are getting multiple offers (5, 10, 15+ offers) and are bidding up over asking price within days, if not hours of hitting the market.

We’re seeing slight signs of the inventory leveling out. Unless it levels out, we’ll most likely see median prices continue their upward trend and lots of multiple offers on properties well into the summer.

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