New Real Estate Contract will result in changes in price and expectations.

The new real estate contract, coming out in January 1, 2012 will make the housing sell in AS IS condition.  I believe that this will result in prices falling.  It will change the way we do business. 

They are planning to change the way we sell real estate here in Northern Virginia.  The homes are to sell in AS IS condition, not in normal working order.  This will change a lot of the ways that we do business.  I do believe that this will result in prices falling more than they would have without this change. 

The expectations of what the buyer is getting will be lowered.  We have already seen the market be particularly brutal to the older, single family homes.   And indeed the older homes all seem to have aged disproportionally in the past year. 

Just one year ago, the homes that were built in the 1980s or newer seemed to have features which the market wanted.  They had master bedroom baths, good closets and generally less maintenance.  Indeed the townhouses have been pulling ahead in the marketplace.  Now the homes seem dated when they were built before 1995.  The extra rain storms have taxed roofs and basements.  The droughts have been hard on trees. 

Earlier today, we saw a preview of the new real estate sales contract to be used in Northern Virginia.  For 30 years we have been transferring in real estate in "normal working order".  That is, that the buyer could expect all the items in the house to basically function as expected.  And so all parties could argue about what is "Normal", and what the buyer should expect to get.  Now all the buyer is told is "WYSIWYG" what you see is what you get; the house sells AS IS.  However the appliance, equipment or structure is operating is what you are buying.  We have already seen the market be particularly brutal to the older, single family homes.  

Seller of prime property will really benefit from offering a home inspection as part of the marketing package to show that their properties are "move-in ready".

Come on Irene

Riding the Storm Out!

Real Estate Slows in the Dog Days of Summer

Well, just when you thought that I was ALWAYS going to be positive, we are coming to a little market slow down.  Traffic is down at the open houses.  Sellers are reducing prices to stay in the game.  Even with interest rates hovering around 4.5%, making the payments very affordable, purchasers are still hesitant to commit.  If you want to sell at this time, be sure to price your property attractively, and come on the market with the property 100% ready to go.  If you are looking to buy, this is a great time to pick up some bargains.

506 Seward SquareInvestor Alert -- Grande Dame Victorian for Sale on Capitol Hill.  4 units, all rented, well priced at $1,450,000

Virgina Best Place for Business

Yesterday's CNBC survey to find America's Top States for Business found Virginia to be #1.  We also placed well in the quality of life.  CNBC rates Virginia #1 for Business

Where did all these listings come from? Investors are bottom fishing. Young Couples are everywhere.

Good morning Friends & Clients:
Well, after months of having nothing to show, all the listings finally flooded onto the market in the past week. After the upbeat real estate news in May, that the Washington DC area was the number 1 market in the country, sellers finally realized that they can offer their homes for sale.  May 2011 saw the most number of contracts for May since 2005.  Sales activity at the low end of the real estate spectrum was fierce, with investors and home owners grabbing up foreclosure listings as soon as they come on the market.  Many investors are paying cash for the properties.  And the home buyers want to take advantage of the very low interest rates, which are currently hovering between 4.6 -5.2%.  My investor clients have been grabbing up terrific bargains in Prince George's county where they are buying townhouses for about $80,000, fixing them up, and then finding tenants to rent them for about $1200/month. 
We are having trouble trying to find discounted properties in Northern Virginia.  The Woodbridge invesment properties often have 3 contract on them within a few days, and prices are rising.  The investors have tried using the Auction sites to find properties; but this is problematic, as the price in Northern Virginia usually gets bid up to pretty close to market price.  And there are not as many protections for the buyers when they buy through these auctions (for example, you may not be able to view the property).  There are a few condos in the Alexandria area where properties pop up at investment prices; but these homes will usually have condo fees in the $500/month price range.
On a really positive note, I am meeting lots of young couples at open houses.  This must be "echo-boom" we have been hearing about for a while.  There are just lots of young families out there looking at the townhouses and entry-level single family homes.  The Alexandria & Sprinfield areas both offer "Class A" real estate opportunities.  Prices are good, around their 2004 levels, and interest rates are low; so people with steady incomes and good credit can buy a home for a monthly payment pretty much the same as paying rent with a very small down payment.  Buyers love the FNMA, homepath properties where they can buy with just 3% down, and pay no PMI.  Many of the homes have already been prepared with paint, carpet and new appliances for the new buyers. 
Short sales are still here, but they are the stepchild of the industry.  Buyers love the the attractive pricing on these properties, but are often disappointed with the amount of time it takes the seller's bank to approve the sale.  Consequenty, it is often the investors, who can take a laissez-faire attitude towards the sale, or those buyers who want to wait for a specific location, who are entering into these short sale listings.
Call or email me if you are wondering if this is a good time for you to make a real estate move.
Best wishes,

Easter Showers bring May flowers

For those of us out and about enjoying the beautiful Virginia, Maryland and DC area this weekend, we know why the real estate market will be resilient in this area. Because it is so beautiful. You can enjoy the architecture in DC; checkout the new Institute for Peace building with the dove wings for a roof. Or enjoy the many inviting harbors in the area; today we went to Deale, MD for lunch alongside the boats.
It is a good time to buy investment property. Good time for a move-up.
Have fun this Easter. The spring season is a great time for refocusing on what you want to bring into your life, and how you want to enjoy life.
Best wishes,
Karrina

Karrina Taylor Brown ReMax Allegiance: Spring Northern Virginia Real Estate Market Update...

Karrina Taylor Brown ReMax Allegiance: Spring Northern Virginia Real Estate Market Update...: "Yes Folks: Our market is doing fine. Most of the foreclosures and short sales were taken over the winter time. The new Spring crop of ..."