How We Helped Paul Find a Home as Well as the Right Contractors for the Job

“He was great! The results were exactly what we thought it would be and he found us our home. He hooked us up with all of the construction workers and contractors that we needed and made sure everything was in line.”

The Election’s Impact on Home Values

I’ve been fielding a lot of questions from people recently. The thing people want to know about most is what effect the new president will have on interest rates.
 

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I’ve been getting a lot of questions lately about what’s going to happen to real estate values now that we have a new president. The short answer is there is going to be little impact, but here’s why.

There are roughly 32,000 jobs tied to the political arena. Additionally, 24,000 of them are located on Capitol Hill. Of those 24,000, 9,000 are considered nonpartisan jobs. They are there year round, no matter who is in place as leader. The remaining jobs are staffers who are not in a position to buy something. In the end, you have about 2,250 people who are qualified buyers that will be looking in the area.

Even though people are leaving with the old administration, there are people coming in with the new one. In this type of turnover in the past, we haven’t seen an exceedingly high supply. There is a net gain and a net loss. The policies put forth by the new president are what will have a large and lasting impact

We are going to see more increases in interest rates.

Based on indicators in the marketplace, we are going to see an interest rate increase this month and maybe another one soon after. You need to be prepared for those higher rates if you’re thinking about buying. A rise in rates will affect your buying power and the type of home you can afford.

Keep in mind that right now, interest rates are historically low; under 4%. Don’t be concerned about them going up, as this is a normal part of what looks like an improving economy. It’s just something to be aware of moving forward.

If you have any questions for us, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.

Do You Know If TOPA Rights Affect You?

Today we're talking about new TOPA regulations and how they affect property owners that have tenants. The new regulations affect sellers of tenant-occupied properties.
 

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If you're buying or selling a property, do you know about TOPA rights? It's an important thing to understand to protect yourself in a real estate transaction.

TOPA is the Tenant Opportunity to Purchase Act. In Washington DC, landlord laws are very stringent, so you have to be careful when dealing with properties that have tenants. You must understand timelines of when you serve notice to tenants and what their rights are as tenants under those notices, as well as the assignability of those rights. You want to work with a real estate professional who can properly maintain a transaction and be a consultant for you in these situations.

Keep in mind the recent change in TOPA regulations as well, because it is important relative to the companies that underwrite your title insurance. Just recently on the jurisdictional addendum in Washington DC, there was a change to add a clause titled 'Tenancy.' Under this clause, it states specifically that 'seller represents the property that is or is not subject to an existing residential lease or tenancy at the time seller decided to sell.'

New TOPA changes could affect anyone selling a property with a tenant.

It's very subjective, but the new regulation essentially says that you can't sign listing paperwork with an agent until 1) the lease on the property has expired and 2) the security deposit has been returned to the tenant in order for you not to be subjected to TOPA rights.

This means having to go back to that tenant—even if they moved out three months ago—if you signed listing paperwork before returning the security deposit to that tenant. You'll then be subject to TOPA rights, and will have to track them down, serve them the proper notices, and go through those various processes. This change is because underwriters of the policy now see it as a liability if you had a tenant in that property within three to four months of signing listing paperwork. They want to know that the tenant isn't coming back to you and making any claims for the security deposit or monetary reasons, like rent that wasn't returned.

This is especially important with a lot of people selling units right now in the Washington DC area. More specifically, we're seeing people who owned condos and were using them as investment properties with tenants and are now going to sell them. Be sure to talk to your real estate professional to make sure they’re aware of these new changes to help ensure you have a smooth transaction.

If you have any questions for me about these changes, give me a call or send me an email. I'd be happy to offer my expertise.

The Importance of a Vendor Network

Why is it so important for agents to have an extensive network of trusted vendors? So they can recommend service providers to clients that reflect their own values.
 

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Today I wanted to talk to you about the importance of a provider network when selecting and working with your real estate agent.

Over the 13 years I've spent in real estate, I've created and vetted a list of number vendors like contractors, lenders, and title companies to essentially create an extension of my brand. I know that these people that I recommend will provide the same level of reliability and consistency in their service that I provide to my clients.

Our network is essentially an extension of our brand.

This is important because there are a lot of components that go into finding a home, writing an offer, and negotiating a contract, when there's still a lot of heavy lifting that needs to be done to get the deal closed smoothly. That involves your insurance agent, your lender, and the title company. Finally, you need to consider your contractor network whether you're a buyer or seller. That could be for remodeling, landscaping, painting, or anything in between; you want them done at a reasonable price with a high level of professionalism.

We always look at things from an owner's perspective and ask how we would want something done ourselves. We do this for peace of mind for our buyers and sellers and to ensure that our deals close on time and successfully.

If you have a need for any type of contractor, please feel free to let us know, because that's what we're here for. Give us a call or send us an email and we'd be glad to help.

How the New Radon Testing Guidelines Impact You

If you’re a seller, there are new radon testing guidelines about to take effect that could have a significant impact in how you list your property.
 

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The new radon testing guidelines of Montgomery County impact sellers more than buyers, but it’s still important for buyers to understand their rights based on the new real estate transaction process.

Under the old law, there was a radon contingency in the contract stating that buyers had the opportunity to conduct a radon test and, based on those results, either request remediation from the seller or have the ability to walk away from the transaction.

The new law requires that within one year of the date of settlement, the seller must provide radon testing results of the property to the buyer, allow the buyer to be able to conduct the test themselves or allow the buyer to mandate that they conduct the test. In essence, the seller is responsible for paying for and conducting the test. This doesn’t mean that the seller must remediate if the radon levels come back higher, but it does mean that they have to provide the tested results in their disclosures to all parties interested in buying the property.

The new guidelines took effect on October 1st.

These new guidelines took effect on October 1st of this year. Anybody who owns a single-family or fee simple property will be included in this. REO properties, foreclosures, estate sales, condominium properties, and co-op properties will be excluded, however.

There are additional guidelines that apply to this rule regarding the logistics of how you can conduct this test and how it affects the way you list your property, so it’s important to work with a Realtor who knows what they’re talking about and is informed about the most recent changes to the law to make sure that you’re protected when it comes time to conduct your business.

For more information, you can visit our website at www.scottsachs.com where I will have a link posted with additional radon regulation rules, here. I will also have a list of the approved radon testing devices you can use or pay someone else to use prior to listing your house.

How We Helped Liff Through the Purchasing Process at All Hours

“The night we put in an offer we finally completed submitting or approving the offer at about 1 AM. His availability and willingness to be available at our convenience were great.”

How We Helped Josem Move into His New Home and a New City

“My experience was great! It was awesome and exceeded my expectations. I feel like he did everything above and beyond. Specifically, I did not expect them to help me with the moving company before I got to the property or before I even moved to the city. He actually helped me with that so he is someone that I would definitely use again.”

Check Out This Newly Remodeled Townhouse

I have a new listing I would like to show you. It won’t last long, so take a good look at it if you think you’re interested.
 

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I’m standing just outside my new listing at 1913 11th St. NW, Washington, D.C. 20001. This townhouse is a total gut renovation that’s been contemporarily remodeled with a sleek new design. It now features a spacious open floor plan, four bedrooms, 3.5 bathrooms, and a rooftop deck with a gorgeous view.

This townhouse is a total gut renovation with a sleek new design.

This one’s going to go fast, so check out the video above to get a better look. Inside the 1,594 sq ft interior, you’ll also notice things like the dramatic entry with the restored brick walls and the kitchen lined with quartz countertops.

If you would like to know more about this property or have any other questions, feel free to email me or give me a call. I look forward to hearing from you!

What’s Happening in the D.C. Real Estate Market?

Because rates are so low and we have a historically low level of inventory, most of the greater D.C. area is in a seller’s market.
 

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We’re right in the middle of the fall market season now, which has thus far been very busy. It’s typical for the market to slow down once kids go back to school in August but then pick back up after Labor Day weekend, and we saw that again this year.

There was a lot of new inventory that hit the market, but we also saw a lot of buyers come back into the marketplace. A lot of that new inventory, then, was absorbed. What we’re left with now is a historically low level of inventory. We’re currently sitting at a three-month supply, and since a six-month supply is considered balanced, most of the greater D.C. area is in a seller’s market.

As you go a little bit further out, you’ll a see a little softening in areas like Potomac, Great Falls, Vienna, and even as far as Reston. This is indicative of the price points that are prevalent in those areas. Anything under $750,000 or even $800,000 is still extremely popular given that interest rates are still so low. That kind of borrowing power is forceful, and you’re seeing a lot of people step up their bases a little bit to get that property. We’ve also seen some softening in the more expensive markets between the $1.3 million and $1.4 million price points. Because interest rates are so low, many lenders have offered some really great jumbo loan packages, and these are starting to help the even more expensive markets between the $1.6 million and $1.8 million price points.

We’re seeing a historically low level of inventory.

If you’re a buyer, it’s a great time to be out there looking, particularly to lock in on something while the rates are so low. The next Fed meeting is happening in December, and they are expected to raise interest rates, so it might be a good idea to protect yourself from what could be a one-quarter to a half percentage point rate increase.

If you’re a seller and you’re looking to downsize, now is a great time to do that as well. There are a lot of buyers out there, and because of the interest rates, you’ll likely be able to find that higher price point you’re looking for.

If you have any further questions about the D.C. real estate market, feel free to give me a call or send me an email. I would be happy to assist you in any way I can.

Improvements with the Best Return on Investment

If you’re a seller with $40,000 to spend on home renovations, there are many other home improvements you should consider making besides a kitchen or bathroom renovation.
 

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How do you get the best return on your investment for home improvements? What should you really be spending your money on?

The best improvements you can make from a purely ROI perspective are minor kitchen and bathroom improvements. These typically return over 100%. There are other repairs, too, that will usually return over 80%, including windows, roofs, and HVAC systems.

If you’re a seller and have $30,000 or $40,000 you plan to spend on a kitchen or bathroom renovation, though, stop and consider the items that you really need to be spending your money on. Imagine what a buyer is going to look at when they look at your home. When I go through homes today, I see too many properties where owners have renovated the kitchens and bathrooms but have neglected more obvious repairs that should have been made instead.

For example, if you have a double layer of shingles on your roof, then that roof probably needs to be replaced. If your gutter system is draining into the foundation, you should consider getting a new system, adding extensions to your leaders, and installing a sump pump into your basement so it doesn’t get musty.

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Consider the items you really need to be spending your money on.

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You could also have single-pane windows that are leaking. These are upgrades that are not only great for resale, but they improve your finances by both eliminating future deferred maintenance and reducing your electric bill by increasing your home’s energy efficiency.

The worst-case scenario for me is having to see buyers “spend good money after bad,” meaning they’ve bought a house that’s been recently renovated with bottom-line products and materials. With Home Depot and other home improvement companies having their own websites, it’s not hard for people in today’s market to distinguish between what’s quality and what’s not quality. They get stuck, then, having to make improvements to something they’re already paying a premium for because the seller considered their materials to be top-quality before they sold. 

If you’ve recently purchased a house or are thinking about selling yours, please feel free to reach out to me so that I can provide you with a consultation on what’s really going to give you the most bang for your buck. Just give me a call or send me an email, and I’d be happy to help.

How We Helped Marc Move a Unique Home in a Cookie Cutter Neighborhood

“Very Satisfactory! He understood what we needed to accomplish and got the job done. He came up with his own ideas. He was very responsive to all of our ideas and the net result was that we were able to move a very unique property in a cookie cutter neighborhood.”  

Join Us for Our 16th Annual Client Appreciation Party

Today I’m announcing some exciting news:

Our 16th Annual Client Appreciation Party will take place on Saturday, September 24th from 10:30 a.m. to 1:30 p.m. at Rock Creek Park in D.C. Picnic Area #13!

This is a wonderful opportunity for us to thank all of our past and present clients, since a majority of our business is referral-based. We really appreciate our clients and their trust in us in referring their friends and family so that we can provide that high level of service to them as well.

So please mark your calendars for September 24th. We’re going to have lots of family-friendly activities like face painting, balloon animals, games and prizes, as well as some great food on the grill.

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See you on September 24th at Rock Creek Park!

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The event will also be located right next to the Nature Center, Planetarium, and Horse Center of Rock Creek Park. I will be coordinating a tour of the Nature Center and Horse Center in the morning, as well as a 1 p.m. show at the Planetarium. If you have kids over the age of 5, please let us know so that we can sign them up.

This is also in observance of the Centennial of our National Parks Service, which was started in 1916, so this is a great way to celebrate the protection of our environment while simultaneously appreciating our clients.

If you have any questions, please don’t hesitate to call or email us. I look forward to seeing you all!

How We Smoothly Helped Jonathan Find a New Listing, Put in an Offer, and Buy a House

“The results were great. We got our first home. It’s exactly what we wanted and in a great area. It’s something for me and my family, we can see ourselves grow in and it’s just what we needed so it’s perfect. We were looking to buy a house last year and when we reached out again he remembered our whole situation and he remembered the name of my daughter. He just makes you feel at peace and comfortable in a difficult situation. I think he’s a great guy and a great realtor and he’s going to continue his success.”  

The Impact of Brexit on the D.C. Real Estate Market

How has Brexit impacted the D.C. housing market? So far, there is a lot of uncertainty in financial markets and long-term implications there.

In our local real estate market, however, a lot of people are putting money into really safe securities, like treasuries and bonds. When that happens, the value of the U.S. dollar goes up and interest rates go down. As far as the 10-year treasury, Brexit may also lower the yield.

Locally, we haven’t seen any changes in home prices, so don’t worry about home values going down. In any case, they continue to go up. Home value is more closely tied to supply and demand than what happens in the global financial market.

If anything, Brexit has created a great buying opportunity for people in the real estate market. In fact, there is a lot more international money coming back into the United States real estate market. People see the U.S. as the best, safest place to park their money. Investors are using cash to invest in our real estate market.

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Interest rates have dipped even lower since Brexit.

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The bottom line is you should not be concerned about Brexit’s impact on home value. Again, home value is affected more by local economics and policies than anything in the global market.

So, take advantage of these historically low interest rates. You can get a 30-year mortgage for 3.5% or 3.625%, which is unbelievable. It’s also a great time to be in a 15-year amortization - that is under 3%.

If you have any questions, give me a call or send me an email. I would be happy to help you!

Taxes Are About to Go Up for Washington D.C. Home Buyers

 

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Today I’m here with a public service announcement about the upcoming tax increases for Montgomery County, specifically for the county transfer tax. Anything settled after September 1st is subject to these fees whether you are the primary resident or an investor.

To clarify, these tax increases don’t apply to homes under contract; this is for actual settlements. If you are looking to buy something and you want to get in before these deadlines, you need to act very quickly and be under contract in the next week or two.

What are these increases and how will they impact your bottom line? Let’s say you bought a $575,000 home. Under the old county tax fees, $50,000 would be exempted from the first $500,000 of value if the property is your principal residence. The next $450,000 would be taxed at $6.90/$1,000, which would add up to $3,105. The additional $75,000 would be taxed at $10.00/$1,000, which would give you another $750. All told, you would pay $3,855 in taxes.

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The county transfer tax increase takes effect on September 1st.

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Under the new rules for that same $575,000 property, you will get a $100,000 exemption off the first $500,000 of the home value. The next $400,000 is then taxed at $8.90/$1,000, bringing you to $3,560. The remaining $75,000 is taxed at $13.50/$1,000 for an additional $1,012.50. Your tax under the new increases would be $4,572.50 total.

As you can see, that is an increase of $717.50 (or 19%) under the new tax increases. That’s if the property is your principal residence. If you are buying an investment property, there will be no exemption and taxes are due in the full amount.

I think I speak for everyone who lives in the area when I say we expect better roads, less crowding in schools, and a variety of other things from the city council after these increases are in place.

I hope you have a better understanding of what your settlement costs will be after September 1st. If you have any further questions, please don’t hesitate to reach out to me. I would be happy to help you!

6 Tips for Keeping a Vacant Home Secure

 

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I was recently going through a listing for one of my investors who is selling soon. I was doing a final walkthrough, making sure there were no surprises, until I found one. Well, two actually. I found a couple of broken windows in the rear of the property from kids throwing rocks through the windows. This is the perfect opportunity to discuss how you can secure your property against these surprises. Here are six tips:

1. Make sure you have tracking mechanisms in place. You want to be able to know when anyone enters the property. We actually use two. One is a central card reader that timestamps everyone in and out. We also have a centralized showing device.

2. Get an alarm system. Many different companies offer wireless set ups and systems that are easy to install with low maintenance fees. Even cheaper options are available in home improvement stores. They only run around $40 or $50 but can still give you that next level of security.

3. Simply put notices on the windows showing you have an alarm system.

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You want to be able to know when anyone enters the property.

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4. Add flood lights to the property. Motion tracking flood lights make sure that if you do have someone walking around, the area will light up.

5. Be diligent. Inform your neighbors if your property is going to be vacant so they can help keep an eye on it for you too.

6. Have your agent check up on the property. I make it a point to stop by every vacant property of ours periodically.

Security issues will arise, but all you have to do is be prepared. If you have any questions for me, don’t hesitate to give me a call or send me an email. I look forward to hearing from you!

How We Went the Extra Mile to Help Paul Buy and Sell a House

“He put our home on the market and shortly after we had a full price offer with no contingencies so we were very pleased. He worked hard, had some open houses, and talked to a lot of agents, so we were very happy with what he did. He was traveling long distances at any given time just to try and work for us and help us find the right house. We were appreciative of that.”

How We Helped Cara Sell and Purchase a House

“He sold our house we were in and helped us purchase a new house. When he was helping us negotiate the sale of our previous home he really went above and beyond to help us understand all of the offers that were coming in. He spoke with each of the agents that had come to the open house and helped negotiate those offers and was vital with helping us get a full price offer. So, he did an awesome job.”

How an Increase in Interest Rates Will Impact Your Mortgage

 

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On June 15th, Janet Yellen and the Federal Reserve will decide whether or not to increase interest rates. While a potential 0.5% increase in rates might not seem like much, it can actually significantly impact your mortgage payment.

For example, let’s say you’re buying a $600,000 house and you put 10% down. That means your mortgage is $540,000. If you have a 4% interest rate, your mortgage payment on that loan is going to be $2,578 a month. If rates go up to 4.5%, your mortgage will be $2,736. That’s a difference of $158 a month.

While that might not seem like much, you have to consider how the loan is amortized over that period of time in order to understand the true cost of the loan. Let’s look at that same example again. If you have the 4% interest rate, $1,800 of that mortgage payment goes to the interest and $778 goes to the principal.

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A small rate increase can significantly impact your mortgage.

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If the rates go up 50 basis points, your total interest payment is $2,025 and your principle is only $711. That’s $225 more going to your interest rather than your principal. That’s $2,700 a year in additional interest paid because of that rate increase. The loan is amortized differently because it’s a higher interest rate.

On June 15th, we’ll know whether rates will increase or not. If you have any questions, give me a call or send me an email. I would be happy to help you!

Four Things to Do Before Listing Your Home in DC

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How you maximize your marketability and your sales price before you sell? I like to think that there are three really important criteria to consider when preparing to sell your home:

1. Get rid of the clutter. Potential buyers want to see your home, not your belongings. Clear off counter space and closets, as well as garages. You don’t want your home to seem small and cramped. We go through homes room by room in order to form a more appealing look for potential buyers.
2. Depersonalize your home. Remove photos of your family, any collections of art or other memorabilia, and anything else that would portray your sensibilities and lifestyle. Buyers want a home that feels new and fresh, not a home that’s been lived in. It can be uncomfortable to walk through a stranger’s home, and this can be a big help.
3. We always recommend a pre-inspection of the home. Although it may cost you a few hundred dollars, it can be a deal-saver. This makes sure that the home is in proper working order, and if there are any major defects with the home, they can be caught right away, instead of further along in the process when they might spook a buyer.
4. Professional photography is extremely important. Because homes are listed online almost 90% of the time, professional photos are no longer a luxury, they are a necessity. Professional photographs will drive buyers to your home and increase showings. 

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Clean, organized homes always sell.

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If you have any further questions, please don’t hesitate to contact me. I look forward to continuing this conversation!

What You Need to Know Before Investing

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 Washington DC Real Estate: Are you interested in property investment?

A lot of people in Washington D.C. want to invest in real estate because it’s one of the greatest ways to build long-term wealth and a steady stream of passive income. But why invest in today’s market?

The stock market is extremely volatile and is actually down on the year. Also, a lot of people have money sitting in a savings account that’s earning nothing or even in some cases, earning them negative rates.

As for property investing, you can choose commercial, which includes buildings like offices and retail. Then there’s multi-family housing, which is defined as having two or more units in a single building. A lot of first time investors like a one-off unit; which would be a single-family home, townhouse or condo that they see as a long-term cash flow stream.

Many people come to me saying they want to invest for the appreciation. That’s the last thing you want to do. There’s no guarantees in property appreciation. You should invest in the cash flow stream; which is how every investor values a property. They do so on certain criteria:

1. Cash on cash return (or COC): This is your actual investment. If you invest $100,000 and you want a 10% COC return, your net operating income should be $10,000 after all of your expenses out of the property. It’s important to know your threshold for what you’re comfortable with investing to get that COC return.
2. Net present value (or NPV): This probably gives you the most accurate indication of the liability of value of an investment by factoring in interest rate risk into an annual five- or 10-year return of what that investment will produce in cash flow, and it gives you a present value of what those cash flow streams are worth.
3. Internal rate of return (or IRR): This gives you an overall return for not only the cash flow streams, but the sale of the property at a later date, rolled into the overall investment, and what that return would be. This is a good benchmark, but not as accurate as the previous two options.
4. Return on investment (or ROI): This is simply whether it’s a leveraged or unleveraged investment, what that return is going to be based off of how you structure the deal. 

Hopefully this gives you a good basis for property investing. If you have any questions I can certainly explain your options in more detail, just give me a call or send me an email. I’d love to work with you!

Why Should You Get a Home Inspection Before Buying?

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Today, Kevin Richardson of Capital Infrared joins us to discuss the importance of home inspections. For most people, buying a home is the single largest investment they’ll ever make, so it’s critical to protect that investment by hiring a professional inspector to evaluate the property.

The primary focus of home inspectors is to alert buyers of potential defects, major deficiencies, and adverse conditions. It’s also an educational process; inspectors go through the home from top to bottom, inside and out, to educate the buyer about the different components within the property. All of this serves to make sure the buyer is making an informed decision.

Home inspections are an essential opportunity to learn more about a property before making a big purchase. If you have any questions about the details of the inspection process, or if you would like to reach Kevin directly, give him a call at (800) 520-4367 or shoot him an email at info@CapitalInfrafred.com.
 

Of course, if you need help on the real estate side of things, we’re always available as well! We look forward to helping you soon! 

How to Avoid the Problems Many Washington DC Buyers Run Into

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In today’s tech-savvy world, many buyers are willing to jump into a home search without sitting down with a real estate professional to have a buyer consultation. Today, I want to stress the importance of buyer consultations for both the buyer and the agent.

It doesn’t matter whether you’re a first-time buyer or a highly experienced one: circumstances are always changing, and a buyer consultation will help you navigate the market at any given time. The idea is to save you time, save you money, and save you any added anxiety throughout the purchase process. 
 
The first thing we do in a buyer consultation is look at your finances in order to identify the type of loan that will suit your needs. In order to do this, and to make the buying process a whole lot smoother, it’s crucial to get pre-approved before you start looking for a home.

After we do that, we will go over all of your needs. What are you looking for in a home? Do you like to go out? Do you want to live in a great school district? How important is it to live close to work? These are just a few of the many questions we’ll ask to get to know you and your lifestyle so that we can find you the perfect home.

Next, we’ll start to plan the entire process. We will try to eliminate as many unnecessary surprises from the process as possible. This includes covering the many unexpected expenses that may pop up, as well as various things things that could speed up or slow down the process. Knowing about these things ahead of time is a huge part of easing the process and making it a whole lot more enjoyable.

The Cost of Renting vs Buying in DC

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A lot of people think that owning a home is more expensive than renting, but this isn’t the exact truth. There are a lot of benefits to buying a home, and sometimes it can be less expensive than renting.

In the spreadsheet, I have chosen a home with a monthly payment of $3,500 dollars. This is a similar payment you would make on a nice two bedroom condo in the area. Over the course of five years you would pay $232,076 if you were renting, and you would pay $223,406 if you were buying. However, when you buy, that invested money goes back into your pocket.

When you pay rent, you’re basically just throwing money away. You’re paying someone else’s mortgage off, so why not pay off your own? At the end of the 30-year loan on this home, you would have a $750,000 property in your portfolio. If you rented, you would have nothing to show for spending all of that money. 

I often help buyers decide whether they should rent or buy. I think it’s always better to buy unless you’re going to be moving quickly. Rental prices are only getting higher, and interest rates are supremely low right now.

Please don’t hesitate to contact me if you have any questions or feedback. I look forward to hearing from you!

Beware of Zillow's DC Home Estimates

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We recently did a case study about Zillow, and we found that Zillow underpriced homes that we had sold by an average $9,000. That's a ton of money to leave on the table!

It's been estimated that Zillow's home estimates are only right 7% of the time. That means that they are wrong 93% of the time! That is a terrible success rate.

Remember, Zillow can't take features or upgrades on your property and compare them to other recently closed homes in your area, even though doing so gives you a more updated value on your property. Zillow doesn't walk through your home, and that's where my team can come in and place an accurate value on your home.

Ultimately, if you want the most accurate price for your home, make an appointment with a real estate professional. We will go over your home and the local market data in order to give you the most accurate home value. You can also use our free home evaluation!

If you have any questions, or if you're interested in a home valuation, give us a call or send us an email. We look forward to hearing from you!

The Risks of Overpricing Your Home in Washington DC

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When selling your home, the most crucial thing you can do is price it properly. Overpricing your home will scare buyers away and could potentially sabotage the entire selling process. Putting the proper price on your home, along with a few other strategies, should ensure the process goes as smoothly as possible.

If you think about it, the price of your home is its #1 piece of marketing and advertising. It's also what can make or break a deal.

A lot of sellers believe they can price a home high and then come down if they don't receive offers, but this is a risky move.

Buyers are often off-put by homes that are priced too high, and they kind of take it as an insult that you think they would pay that much for a home. They will also begin to wonder why the home has not sold, and they will likely think that something might be wrong with the roof or the foundation.

In this case, it will sit on the market, become stale, and probably sell for much less than you hoped for.

The best thing to do is to price the home correctly the first time, and you can do this by pricing it right at or just below the market value. We have multiple metrics that we take into account when determining an accurate list price. We find that the longer a home sits on the market, the less it will sell for.

If you have questions about how to nail the price the first time, please don't hesitate to contact us. We would love to help you sell for top dollar!

Buying and Selling in a Flat Market

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Recently, a few clients expressed interest in scaling up, despite a slow economy and buyer favoritism in the D.C. market. They ask, "Does it still make sense to sell a home even when there's not much activity in the market?" It might sound counterintuitive, but right now is actually an opportunistic time to be a move up a buyer in the marketplace.

For example, you own a condo or small townhouse worth $450,000 last spring. Since, the market has changed and property values have gone down by 5%. Today, your property will sell for $427,500. That's $22,500 less than it would have sold for last year!

Perhaps you were looking to buy a property worth $750,000 last spring. That property has also experienced a 5% decline, and will sell for $712,500 in today's market. That saves you $37,500.

Although prices have decreased, you will profit by selling your home and moving up. Even though that 5% market decline cost you $22,500 on your sale, it also saved you $37,500. This means you make $15,000 in this transaction.

There are other variables that may impact your transaction, but ultimately, now is a good time to be a move up buyer. Take advantage of this opportunity today! Give us a call or send us an email with any questions. We would be happy to help you!

What's Happening in the DC Real Estate Market?

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The real estate market in Washington DC is in a transitional period due to the holidays. The Fed interest rate increase is also playing a factor right now.

So, what can we expect moving forward to 2016? I don't think that the Fed interest rate increase will have any long-term effects on your buying power. Interest rates are still hovering around 4-4.5%.

The metro DC market has many smaller markets within it, and these all play roles in forming different market conditions. I would argue that we're still in a seller's market. Just the other day I sold a home with multiple contracts, escalation clauses, and contingencies.

Inventory appears to be rising in Great Falls, Reston, Rockville, and Potomac. Prices are also starting to decrease and the number of days on market is decreasing. Price reductions are also becoming more common, and a buyer's market appears to be forming here.

Because we have such a dynamic real estate market with so many micro-markets, it's recommended that you work with a professional who knows what's going on.

Overall, it is a very opportunistic time to be a home buyer. Interest rates are very low, and we're seeing a buyer's market form in certain areas.

As for sellers, I recommend that you have your agent run a competitive market analysis on your property in order to gauge whether a home sale would benefit you.

Please don't hesitate to come to us with questions. We look forward to hearing from you!