Problem Solving 1031 Style

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I recently had a investor client call saying they would need my services to help rent out their property in Vienna VA. This is a property they bought for $225,000 and is now worth $325,000. They are blessed to have been able to pay off the home and own it free and clear.

This client has called a few times over the past two years and asked about buying another property but even though they were able to pay off the existing rental, there is not much cash available now to purchase a new investment and for various reasons (mainly being that they recently purchased a principal residence with me) the numbers never seemed to work for that next investment. So when I heard that their long term tenant had left and they wanted to rent it again, I proposed they sell it instead and here is why.

Tales From The Front Lines: The Power of Previewing

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Technology is great. When I started in the business in the late 80s I would have never thought I would be writing a blog (and would not even have known what the word meant). I would have never thought my clients would be using a computer to find homes. And that they would be able to pull up pictures, get aerial views, estimated values and more – unfathomable.

This is all wonderful but despite all of our advances, nothing beats old fashioned “boots on the ground” (just saw Acts of Valor with my son). Let me explain what I mean

First Time Buyer: Should I Buy or Continue to Rent?

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I believe that everyone should own a home of their own and that everyone can own a home of their own with proper planning. The question is when. Is it this year or some point down the road? This post will help answer that question.

One decision factor that does not come into play is the condition of the current market. Really, it doesn’t matter. When your personal situation lines up in favor of buying, it is time to make the move. Homes are not stocks – short term investments that may be traded weeks or months after a purchase. The hold time for a home needs to be years. During that time the market may go up and the market may go down. It is confidence in the long term market one needs to consider, not a guess as to what will happen in the next year or two. So the first question one needs to answer is…..

My Real Estate Tax Assessment Changed. What Does It Mean?

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From Centreville to Vienna to Arlington and points in between, homeowners have already received (Arlington) or will shortly have their new real estate tax assessment in the mail. (Fairfax County assessments will be available 2/28) I am guessing most will be higher than last year since we had an overall 3% increase in prices in 2011.

I am often asked if the assessment is reflective of market value and the answer is

Sales and Inventory In Northern Virginia By Month

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I must admit, I am a bit of a stat nut. I have detailed sales and inventory data for the Northern Virginia market for the last 15 years and additional sales data going back to 1975. (Using baseball parlance, I might border on being called a seamhead) Don’t worry, it is safe to read on. My blogs will never get too deep into a statistical interpretation of the market. I will leave that to others. Under the Market Stats tab above are several good resources for those interested in viewing a stunning array of charts and graphs. Here we will just review very simple data that can help a buyer or seller in deciding what time of year may be best to act.

Tales From The Front Lines: Crime (???) in Vienna

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I read with great amusement Gene Weingarten’s column in this Sundays Washington Post magazine titled, “Soft Boiled Detectives, A suburban police blotter” which featured excerpts from the weekly Vienna VA police reports. Ripped from the headlines were stories about a dispute between a landlord and his tenant over which toilet each should use (they shared the house) and another about an intoxicated individual with sushi in his pants.

A Recap of the 2011 Northern Virginia Market

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For years I have kept a record of the market stats. I have tried to keep my summaries simple. I look at the 3 major categories of housing: single family detached, townhomes and condos. Through different market cycles, they move in different directions. I also pay attention to days on market, inventory levels and the percentage of sale price to list price.

For a more thorough analysis, I would recommend clicking on the Real Estate Business Intelligence link under the Market Stats tab above. There you can not only look at a variety of charts and graphs but can drill down to very specific sub markets including zip codes.

The chart below gives you a good overview of how 2011 compared to 2010. The numbers reflect activity in Fairfax County, Arlington County and the cities of Alexandria, Falls Church and Fairfax.

Move Up Thoughts Part II: Timing The Market

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Often homeowners move up because of a life event. Perhaps two single homeowners are getting married and need to sell their current homes and buy a home better suited to their new life. (A Realtor’s dream – 3 transactions!!) Or perhaps an expanding family requires more space. Or a wonderful career opportunity pops up outside of Northern Virginia.

However, other moves are discretionary. The homeowner has the financial resources to move to a new home and desires to do so for a variety of reasons; more space, bigger lot, smaller lot, more amenities, better schools, etc. The actual timing of the move is not critical so these folks often ask, “How is the market? Should I do this now or wait?” There may be some personal financial factors that dictate the proper response but the market is not really a factor. Here’s why.

Tales From The Front Lines: Short Sale Shorts

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Recently I wrote a blog outlining the basics of buying foreclosures, short sales and other distress property. I mentioned in that post that short sales are a vast wilderness with many pits, traps and paths leading nowhere. The stories below reinforce that statement. These are real cases I have worked over the last few years. The names and some other data have been modified to protect privacy but the key points are accurate and, most importantly, the timelines are real. The moral of all of these stories is that before deciding to pursue a short sale, make sure you have enough time and resources to wait for the bank to make a decision. If you are one who likes certainty and control, the short sale world is not for you. There is very little the buyer or buyer agent can do to shorten the time between contract and settlement. The pace of the transaction depends on the bank negotiator, the seller and the listing agent. On to the stories….