Matt's Real Estate Corner

Why Would A Potential Buyer Purchase Your Home?

As you consider the possibility of selling your home in Eastern Prince William County, it may be hard to see what makes the home most marketable in today’s market especially if you have lived in it for a long period of home.  I have found asking yourself the following question really helps in this area:

What about about your current home attracted you to purchase it in the first place?

Chances are there is a buyer out there in a situation similar to what you were in and would appreciate similar things in their prospective new home.

As a real-life example, here are some of the things that attracted me to my current home when I purchased it about 4 years ago and features I feel would be an asset when and if I sell (More details regarding assessing a home’s features):

• 2 car garage
• main level den/study
• main level laundry room
• 2 story foyer
• separate tub and shower in master bath
• Lot (treed back yard and backs to creek and unbuildable land)
• Location (more about assessing a home’s location based on your needs/wants here)

Even with socioeconomic trend changes over time, your home and/or its location have core features that will be attractive to a potential buyer.

Did We Just Pass Another Market Shift?

Over the past month of working in the Eastern Prince William County real estate market, I have noticed some changes that have been continuing and I wanted to bring them out in the open now.  In many local areas, including Lake Ridge and Dale City, the market (except for the upper end $500k+) has become a balanced market and in some instances slightly a seller’s market.  Some recent observations:

• Inventory levels – Except for the upper bracket homes, most subdivisions in the area have very little in terms of fully available inventory.  Recent searches of the MLS show some subdivisions with ZERO active homes with many others offer only a handful of homes on the open market.
• Prices – While some areas still have slightly declining property values, many others have seen home values stabilize or even rise to levels that were seen back in 2008.  Many homes are selling with a net sales price (purchase price minus seller contribution) of at or within 5% of original list price.  Properties listed under market values are receiving multiple bids bringing their values in line with other recent sales.
• The shift from an REO driven market (for now) – Another trend in many neighborhoods is the number of short sales that are currently pending sale.  Until the “next wave” of foreclosure described in the media come to fruition, short sales will probably be a dominant force in our market.
• The Return of Regular Sales – The number of transactions not involving a short sale or foreclosure is on the rise especially in the middle and upper brackets (300k+) as these long time owners finally decide to move up or on in their property ladder.  Some neighborhoods are now driven primarily by normal sales.  This tend may expand to lower price ranges if property values start to steadily rise and as investors decide to sell off their assets.

So is it the right time to buy or sell?  That is still a personal decision but recent market signs point away from the gloom and doom being broadcasted by the national media.

June Newsletter Now Available

The June edition of "Matt's Real Estate Corner" newsletter is now available.  Click here to view.

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Why it Might be the Time to Buy a New Car (Even If You Don’t Really Need One)

The next two week should be a very interesting time for the landscape of new car sales.  The Recently announced list of Chrysler Corporation dealer closings is already in motion with the bulk of closing occurring here in the next two weeks.

An article by CBS and other sources report dealers discounting cars by up 40% off sticker as a result of the forced inventory liquidation.

From the quick research I’ve done it looks like discounts range anywhere from nothing (Challenger) to 20-40% (Grand Caravan, Durango, Ram, Nitro, Caliber, and other models).  Time will tell if these deep discounts and Chrysler bankruptcy ultimate affect vehicle values down the road but as they say sometimes a deal “is just too good to pass up”.

How You Can use the $8k Housing Credit When It Counts

After a false start, details of the new program that allows homeowners to use the first time homebuyer tax credit at closing have finally been released here.  Below are the major points:

The program can only be used or FHA-insured loans.  VA, conventional, and other programs are not included.

The credit cannot be used towards the required 3.5% down payment.  Closing costs, mortgage discount/origination point(s), and other closing costs can be covered by the credit.

So while you cannot get your home of no money out of pocket, you can use the credit to “buy down” your mortgage interest rate and/or possibly negotiate a lower price on your home by minimizing the amount of money you would have to ask for from the seller for closing cost assistance.

When is it time to throw out the Old Rugs?

As most people know, the condition of the flooring your home is one of the biggest items that factor into a buyer’s perceived value of the property.  Carpet remains one of the more economical choices and is usually more suitable in some rooms and situations (such as rooms where people may lay directly on the floor).

Depending on the grade/quality of carpet, you can get a lifespan of anywhere from just 1-2 years to decades of normal wear and tear.  Some factors can reduce the lifespan of carpeting including the amount of traffic the carpeting receives and pets being present.

So when should you replace your carpeting rather than have it cleaned?:

• The carpet is worn to the point that it no longer has a plush feel or the backing f the carpet is visible.
• Stains in the carpet cannot be covered with area rugs or furniture and won’t come out with professional steam cleaning.
• Allergies (carpet is notorious for trapping dust and other allergens)
• Physical condition make it difficult for you to operate a vacuum cleaner.
• you want a longer lasting floo0ring surface for high traffic areas (stairs are a great example)
• Carpet has gotten wet and does not dry out fully (will cause mold to form)

When choosing flooring in general, remember to think about long term trends as choosing a fad (such as a certain color carpeting) could be an issue down the road if decorating tastes change.

Two-Story Ceilings: Square Footage Left on the Table?

Two-story foyers and family/great rooms have been an increasingly popular features in homes built within the past 20-25 years.  These features defiantly add to the wow factor and a two-story in my opinions creates a dramatic first impression of a home.

However, the arguments have been made that these volume ceilings are both a “chimney” for valuable heating energy and a loss of what could be extra  living/storage/closet space.  An article in the Washington Post a few years back cited homeowners hiring architects to see if they could convert the open space above their family/great rooms into second story recreation rooms or bedroom suites.

I cannot vouch for the energy differences as I’ve always lived in homes with volume (vaulted or two-story) ceilings .

As America becomes ore energy conscious it will be interesting to se whether this features stays popular due to its perceived value or becomes an ode to an era of perceived extravagance.

MLS Photos: Addressing the Frustration

Those who search the internet or sift through emails from your real estate professional of available homes probably see this sight many times.  It is something I get a lot of question and comments about so I thought I would address it.

 

 

 

 

First, two item to bring up that explain why I as a buyer’s broker, have no control over lack of photos in MLS listings:

• Only the listing agent or a designate has control over the quantity and quality of listing photos
• Most MLSs do not require photos for listings in their system

Even if a listing has photo(s), check the copyright date that most MLS systems put on photos uploaded to their system.  You may find that the photo on that current listing is actually from years ago.

Although many people skip over listings with no photos or put them at the bottom of the list, I educate buyers to analyze the listing based on other characteristics available to them and then see if they want to see the home in person.

Fox’s: It’s not just Pizza

OK if you’re a resident of Woodbridge and especially the Old Bridge Rd. corridor then know about Fox’s Pizza Den in The Glen.  If you haven’t, it’s a real treat and a welcome change from Pizza Hut and Domino’s.  They have recently overhauled their menu offer some new items including Stromboli.

Click here or on the picture for their site with menus, coupons, and other information

Military Transfer Sellers: How Your Employer May Help

If you are military and own a home in this current real estate climate, a transfer puts you in a bind with the choice of renting the property out or trying to sell it at a loss.

The Department of Defense’s Housing Assistance Program may be of help depending on your specific circumstances.  It is definitely worth looking to for any military who are or having a looming transfer of duty station.