real estate market, home sales, homes for sale, housing prices, mortgages and finance
3812 Keller Ave, #152, Alexandria VA 22302
Please join me for an open house in Fairlington Towne. The lovely, 2 BR/1.5 Bath townhouse-style condo is located in a perfect spot for Pentagon or DC commuters! Just down the street from Shirlington and Fairlington, it provides easy access to I-395, quick DASH ride to King street metro and Old Town. Updated and tasteful appointments make this home charming yet modern. *Kitchen to be updated with granite countertops and new cabinatry. Come and see!
Interest Rates are at historic lows hovering around 4.25%. If you are still on the fence, it may be time to seriously consider the advantages of locking in this low of a rate for 30 years. Additionally, the increase in your buying power is significant. If the rates increase just .5-1%, you will actually end up paying more per month than if you had bought at a slightly higher priced home with a lower rate. This may also mean that you can afford more home than you would have been able to if the rates had been higher. This is in the favor of sellers at the same time because they now have an increased buyer pool.
Here is an example:
| NOW | SCENARIO 1 | SCENARIO 2 | ||||
| Homes Decline 5% | Homes Increase 5% | |||||
| 1% Rate Increase | 1% Rate Increase | |||||
| HOME PRICE | $500,000.00 | $475,000.00 | $525,000.00 | |||
| DOWN PAYMENT | 3.50% | |||||
| LOAN AMOUNT | $482,500.00 | $458,375.00 | $506,625.00 | |||
| INTEREST RATE | 4.500% | 5.500% | 5.500% | |||
| MONTHLY PAYMENT | $2,444.76 | $2,602.60 | $2,876.56 | |||
| Savings – Monthly | $157.85 | $431.80 | ||||
| Savings – Life of Loan | $56,826.00 | $155,448.00 | ||||
Please join me at 212 West St S, Alexandria VA. 22314 this Sunday, October 10 from 1p-4p!
LOCATION, LOCATION, LOCATION! This home is amazingly priced for it’s location!
Delightful home with lots of recent updates including new roof, new wood floors in Living Room & Dining Room & upgraded electrical. Large Master BRM(2 BRs combined), oversized windows,wood flrs throughout, ample closet/storage space & deep yard with flagstone patio & walk. Located just steps from shops & restaurants of King Street, and just 3 blocks to King St METRO & Wholefoods Market. 1 yr HMS Warranty included.
Come and See!
Getting an offer quickly can be a double-edged sword for some sellers because they are happy to get an offer so quickly, but are wondering if the reason they got an offer so quickly is because the priced it too low or they wonder if that means their home is so wonderful that they can get an even better offer if they continue to wait.
Getting a quick offer is a function of a few different things.
The first is the pricing. Proper pricing is essential to getting offers. Some think that they should price high and then negotiate down to a more appropriate price. They think that if they price the home on the lower or mid side that they will be offered an even lower price and have to sell below what they want to sell for. This is simply a misconception. When a home is priced right, buyers working and REALTORs recognize it and move quickly. You can potentially get a higher price if multiple people recognize the opportunity and you get multiple offers. In this case, you can even get more than asking. Pricing high only keeps the property on the market longer, reduces showings and eventually leads to dropping the price. People at the upper end of the price range your home is in are often looking at higher priced homes and will go for those (because of what they offer) before they will go for yours that is priced too high for it’s size, condition or surroundings. Additionally, the longer the home is on the market, the lower the offer is when you finally get one. Buyers now have reason to offer you a lower price. If you price the property right the first time, you will get an offer sooner and due to the shorter time on the market, you will get an offer closer to asking price. The longer the home is on the market, the more opportunity buyers have to offer you a lower price because they realize that due to your lack of offers, you are likely to accept something lower to “get rid” of the house. Pricing too high will leave you paying for the home much longer and then selling it for a lower price anyway…leading to a lower NET for you. Additionally, the first offer you receive is likely going to be the best and even if you aren’t willing to accept it outright, it behooves you to at least work with it. If you turn it down the home could potentially sit on the market longer and then you still get a lower offer later because of the additional time on the market.
The second is Condition. Homes that win the beauty contest get higher prices than homes that are perceived as out of date or are in poor condition. Because buyers today do not want to have to do anything, the less they feel they have to do to the home, the more valuable it will be to them. Pricing is still very important here because a house that looks great but is priced way outside of the market, it will be perceived as a nice home that is priced too high. Again, pricing always matter. You can have the most beautiful home in the world, but if it is in a less desirable area and is not price appropriately because of that, it will sit on the market until the price reaches an appropriate level.
The third is timing. This is the one factor we can’t control. Timing can be in terms of listing in a “hot” market or in a “soft” market. Market’s can fluctuate and sometimes interest in an area dies down dramatically following a very aggressive time. On a different note, timing can mean that you list right when a buyer has been waiting for your exact model to come on the market. They were waiting for it, so regardless of who you listed with or whether or not the market is hot or cold, they would be interested in it (providing it is not outrageously priced or isn’t in terrible condition).
The key is finding the “sweet spot” between all of these factors; however, do not feel hesitant to accept the first offer if it is a very strong offer. If you get a very poor offer up front, then it makes sense to keep it on the market (providing you are not over priced and the offer doesn’t simply reflect the true market value)…but if the offer is close to asking and has favorable terms, you need to really assess what the cost of keeping the home on the market will be. You could lose a very good opportunity by passing on the first offer just because it is the first and you have only had the home on the market a few days.
A good REALTOR will advise you on what to do and you need to trust the person you chose to list your home. If you do not trust their judgement, perhaps they are not the person you should have the home listed with.
Offered for only $1850/month, this large condo in Exchange at Van Dorn. This beautiful unit has 2-Master Sized Bedrooms each with attached Bath. The unit has hardwoods in living & dining rooms, upgraded tile in kitchen & baths, updated lighting and fixtures, a soaking tub in 2nd master BA, tons of closet space including a walk-in closet in each bedroom and an additional closet in both bedrooms as well. Included is a full washer and dryer. Spacious kitchen with Breakfast bar.
WALK or take the FREE community shuttle to Van Dorn Metro OR DASH to metro or Old Town Alexandria. Close to I95/495/395. Included in rent are 2 -Garage parking spaces and FREE HIGHSPEED WIRELESS INTERNET in unit & community (@ a $40/month savings). The community boasts an OUTDOOR POOL, tons of landscaped common grounds with grilling areas, pet areas, a tot-lot/playground, a FITNESS CENTER, a library/lounge room, a business center, FREE SHUTTLE TO METRO, secured access to buildings and attached garage parking.
Meticulously maintained & tastefully appointed with many recent updates including new kitchen & baths. Expanded with a large Master bedroom and ,luxury bath & huge walk-in closet! Finished lower level with full bath. Beautifully landscaped yard with deck & garage backs to land that can never be developed! Light filled rooms,fireplace, wood floors, freshly painted inside & out! Huge Front Porch, Blocks to Metro and close to Del Ray and Old Town! Off Street Parking and Detached Garage. Come and see!
Many clients ask me how long the “typical” buyer takes to find a home. My answer to this question is it all depends! Time frame is a huge factor….if you need something quickly, many buyers are much more able to make a quick decision and also to compromise on things that they would like to have in a home. If you have tons of time…I find that the home buying process expands to meet the amount of time you have. In other words…if you would like to find a home within a year…it is likely that they will take close to that much time to find a home.
Some people always feel like something better will come along and they have trouble “pulling the trigger” because what if the “perfect” house comes on right after you buy a house. My answer to that is that there is no such thing as the “perfect” house…unless you build it yourself (and then you will still find something wrong with it at some point). There will always be something you would change about the house or that you wish was different. Even if a “better” home comes on the market after, it doesn’t mean that the home you chose was a bad decision nor does it mean that a better one than the better one will not come along…if you play that game, you will never find a house. For example, in my own home…I would love to change our kitchen, it is slightly outdated. I also painted all of the walls when we moved it because I hated the colors. These are things that can be changed though and one day I will get a new kitchen :). What I loved about the house is that it is spacious, full of light, in a fabulous community and has a two car garage…these are among the reasons why we chose it and among the top of our criteria list.
Just remember, looking and getting frustrated is part of the process. You may even have to lose the first house you decide you like to another buyer who bids higher…that happens sometimes…but if it does happen, rest assured, you will find a home you love again. Just remember…it will never be perfect, but if it has the most important criteria then don’t write it off because it doesn’t have a hall closet or something minute like that.
Another thing you may find is that the price range you thought would get you what you are looking for actually will not and you may either need to adjust your expectations or adjust your price range. Sometimes only a little extra money will broaden your pool of homes quite a bit. And typically every additional $10000 adds another $70 or so dollars to your monthly payment, so it isn’t that big of a stretch.
Flexibility is key, but that doesn’t mean you need to “settle”, it just means that you need to adjust to what is available and find something with as many of the features you are looking for as possible…also prioritize those features so that you know what you absolutely need and what you would like but can live without. Sometimes you will not be able to do this until you have seen a few though, so it is ok to look at what is available and then re-group and adjust based on what you see.
Don’t lose heart buyers, the right house is out there…it may take you 1 week, or it may take you 1 year…be patient and flexible and it will come.
This is from Weichert Market Monitor
Focusing on Housing Tax Breaks by Tim McLaughlin
Your home is probably brimming with tax advantages. Do you know about all the breaks you are entitled to? Obviously, you should always consult a professional tax advisor for details, but here’s a list of the top 5 tax deductions for homeowners:
1. Mortgage Interest – Mortgage interest on a home is usually fully tax deductible. You can deduct interest on multiple mortgages, as long as they do not exceed $1 million. The purpose of the mortgage must specifically be to buy, build or improve a home.
2. Points Paid on a Purchased/Refinanced Loan – If you refinanced, you may be able to write off any points you paid to buy down the mortgage rate. To do this, you deduct the points proportionately over the life of the new loan. For example, if you took out a 30 year loan, you would deduct 1/30th of the points you paid each year. Remember, if you’ve refinanced before, and you have points from the previous refinance that you haven’t finished deducting, you can write off the rest of those points in the year you refinance. If you bought your home last year, the points you paid at closing are deductible on your income tax statement for that year. If the seller paid some (or all) of your points for you, you may be able to deduct those seller paid points too!
3. PMI – extended through 2010! Late in 2007, Congress extended the tax deduction for homeowners paying private mortgage insurance through 2010. This one has some restrictions: for example, the borrowers must have an adjusted gross income under $110,000.
4. Capital Gains with No Income Taxes – Thanks to the 1997 Tax Act, once every two years, single homeowners can realize a tax-exempt profit of up to $250,000, as long as the seller owned and occupied the home as a principal residence during any two of the last five years. Married homeowners who file jointly on their tax returns do not have to pay taxes on up to $500,000 of gains when they sell their primary residence.
5. Refinance – Well, sure, I guess this one isn’t really a true “tax break”, but when you reduce your payment and/or loan term at historically low interest rates, it will feel like one. Need help refinancing? Ask us how!
4 GLENDALE AVE W, ALEXANDRIA, VA 22301
Looks ARE deceiving! This AMAZING home has it all & then some!
-3 story addition
-over 3,000 sq ft living space on 7,500 sq ft lot w/a NEW GARRAGE
-Custom appts & finishes!
-Gourmet kit w/center isle, fam room w/gas fireplace, Living room w/wood fireplace & formal dining room.
-3 upper lvl bedrooms including a large Master Bed Room w/luxury Master Bath.
-Lower level with oversized windows, rec room, guest suite, full bath & Wine Tasting rm.
**Blocks to METRO!
**1 YR Warr. WOW-great block!…
Come and see from 1-4pm this Sunday, August 22!
If you are in a situation where you must sell and the reality of the market in your area means that you will come to the closing table with money, you are not alone. This is what many people are facing right now…so what do you do if you do not want to sell short or allow the bank to “take the house back”.
Unfortunately, it just depends on your situation.
If you absolutely need to move, you have three options…you can sell the house for what it is worth in today’s market and come to the closing table with money or rent the house out. Your third option is to stop making payments and ask the bank to allow you to do a short sale, but remember that they can come after you for the difference. Even if you agree to no deficiency judgement, beginning in 2011, lenders will have 3 years to file a judgement against you and come after you for the money…especially if they can establish that there was no hardship.
Sometimes selling is the better option so that you can move on and you never know what the market is going to do. You can hold out and rent the home, but it could take years to build the amount of equity you need and for the home prices to raise enough to sell without bringing money to the closing table. During that time, you are holding the property which can become a burden. Renting is an option, but there are many times that renting the unit will not cover your mortgage…costing you money every month. Fortunately you can write this off, but you are now a landlord which comes with its own challenges. Additionally at the end of renting your unit, you may still not be able to sell at a price that will allow you to break even.
If you can not afford the money it would take to come to sell the home at present market value then renting is many times the best option.
One thing that is not a good idea is listing the home outside of market value to try to recoup your costs This will only end in disappointment. First you will likely have the home on the market for a long time and then end up renting anyway or settling for the price that the market will bear…all the while making the payments every month while it is on the market. Whereas if you had priced the home correctly in the first place, it would have moved in a reasonable amount of time. Additionally, even if you receive a contract for a higher than market price, it will likely not appraise for that amount. This means you will have to renegotiate the sales price or void the contract. This is frustrating and disheartening for everyone involved.
If you do not need to move…stay put for a while…you at least have a place to live while you are paying the mortgage. It may not be where you want to be for the time, but try to work out a plan where you make larger principle payments every month to reduce your principal and gain more equity in the home before putting it on the market.
There are so many facets to this situation and it is certainly a dilemma. If you are in this situation, consult your lender and possibly a CPA to discuss if you will have any tax benefits to the loss you have realized….also, speak to an experienced agent that can help you create the best plan moving forward whether that is to sell, rent or wait.
Kfoley Homes by Kristen Foley, REALTOR® 