Whether you are selling your home as a FSBO or through a real estate agent you will no doubt encounter at least one open house during the process.  Instead of dreading an open house embrace it, this is a good way for buyers to access to see your home without their agent.  While a buyer may not directly walk through your front door at you open house, a connector to a buyer might, whether it be the buyer’s agent, friend, sibling, or co-worker.  This being said, the better impression your home can make, the more likely you will have a successful open house.

Before listing your home or having an open house please be sure that everything is done and that there are no loose ends. There are too many homes which I see too many homes in the DC area listed without pictures, with paint cans laying around and without any real consideration that the house is listed and it needs to be as perfect as it can be. Just last week there was a great house in LeDroit Park. But it showed poorly and buyers with no vision won’t see pass the junk. People looking at a home want to feel comfortable.  On the day of your open house make sure that your home looks bright, cheery, fresh, and clean.  Have your furnishings arranged in such a way that your home flows and appears as roomy as possible. You may need to stage your home and that can pay off.

Simple is good.  Have personal items and photos put away, and make sure you have plenty of space available to fresh eyes.  People want to envision themselves in your home, not what it would be like living as you.

Most importantly, back off.  Do not follow people around your home as it can make them uncomfortable.  Better yet, find something else to do on the day of your open house so that people can come in and feel at home.  If you are in need of advise, come into my office in Logan Circle and we’ll help.

When preparing to buy a home in the Washington DC area you may ask yourself: is a big down payment necessary?  Certainly there are loans, like FHA loans, which require at least 3.5% down, but for the most part lenders today want to see down payments of 10%+.  A big down payment can be beneficial as well.  A lender is a business person, plain and simple, and the more they see you willing to put in to your investment, the more likely they will be able to work with you.

The more money you put down on a home the less you have to borrow, which means that your monthly payments will be lower.  In addition when you have at least 20% of the cost of the home to put down at closing you typically won’t have to pay mortgage insurance.  The more you put down on your home purchase the less likely you are to become underwater on your mortgage.

The bottom line is that lenders are happiest with those that can put down the most money toward a home purchase.  This happiness transfers into lower interest rates, an elimination of the need for mortgage insurance, and lower overall payments than if you were to finance the entire value of your home.  The bigger the down payment the better position you will be in, and since when is that not a good thing?

Here are a few lender who you can speak with about your finances:

Patrick Gardner, First Savings, at 571-233-5230 or Pgardner@firstsavings.com

Brian Baker with Capitol One Bank at 301-806-5062 or brian.baker@capitalone.com

Jonathan Okun, Wells Fargo, 443-610-8371 or  jon.okun@prosperitymortgage.com

Jeffrey Banks, Bank of Georgetown, 202-265-4965

Steve Greene, Eagle Bank, 301-738-7211

When it comes to selling real estate in the Washington DC area, your closets might be more important than you think.  Of course sellers should know how important it is to clean and de-clutter a home, let’s just hope that doesn’t mean you are shoving everything into the closets and drawers in your home.  A potential buyer will open every door and drawer in your home, what they see when they peer inside is essential to a good impression.

Closet organizers are everywhere theses days.  Most people have heard of California Closets, but stores from the Container Store (Tenley Town or in Clarendon) and Target (Columbia Heights/U Street) to Home Depot (Brookland or 7 Corners) and Lowes have great organizers and options for home owners to spruce up their own closets as well.  There is absolutely no doubt that the more clean and organized spaces within a home are, the more user friendly they look to a potential buyer.

A lot of home owners make poor decisions when they try to add a bathroom on the first floor.  A lot of town homes or smaller colonial homes don’t have the space and need that extra closet. Sometimes there is very little recoup value. It can be very weird too if it’s right off of the dinning room and it does not pass the flushing test… that’s when the dinner party can hear everything.

Take steps to improving the look of your closets by looking online, at magazines, and at your most organized friend’s home.  There is inspiration to be had, and you will not be disappointed for making changes to the smallest, yet sometimes the most important, spaces in your home.

If you need suggestions or help, come see me at my new office at Sotheby’s International Realty at 1506 14th St NW Washington, DC 20005. In the middle of Dupont, Logan Circle, Shaw, LeDroit and U Street. Loic with the Pritchett-Simunek Team

A big focus of real estate these days is property taxes.  Real estate values have lowered across the country and subsequently property taxes have lowered too.  The tough part of lower property taxes is for local governments, who have far less money to work with thanks to lower collections.  On the flip side, homeowners will never mind paying less when it comes to taxes.  However, many homeowners are still paying more than they should be, and people in Washington DC are disputing their bills and assessments. There are plenty of examples. U Street and Logan Circle have a number of homes where the tax assessments are all over the place.

What can you do to lower your property taxes, or simply find out whether you are paying what you should be paying?

• Take a good look at the assessed value of your home.  Does it look too high?  If so you have a red flag right there and should call the assessor’s office.
• Talk with your neighbors, what are their assessed values?  Is yours similar?  If not is your home similar?  Compare and contrast as much as possible to have a good idea as to where your home stands in your community.
• Talk with an local appraiser, an educated opinion can never hurt. Please feel free to touch base with me if you need an appraiser to who is specialized in U Street, Logan, downtown Washington DC, Bethesda or Northern Virginia.

Every community in the Washington DC area is different, but there is a  chance that your home value has dropped but your tax bill hasn’t.  As in every situation, you need to be your own best advocate.  Do the research and you won’t be disappointed when your hard work pays off to get your property tax bill reduced.

  

Have you been wondering about buying real estate versus renting real estate?  Certainly it has been a hot topic of real estate news for the past couple of years, but the topic has always been a popular one and there are great reasons for both sides. The benefits to renting are clear.  Renting a home is the thing to do if you are not planning on staying in your area for long, if you do not have steady employment, and if you cannot afford the down payment or qualify for a loan. If you are not going to be in the Washington DC area for more than 3-5 years, then renting may be best for you.

Buying real estate is the route to go if you can qualify for a loan, can afford the monthly mortgage, have steady employment, and plan on staying put for a couple of years.  But, the biggest reason to buy real estate today is affordability.  Affordability rates are amazing at the moment with low home values and mortgage rates that are hovering right around 4%. Just today a client locked in at a 20 year fixed loan at 3.78 with First Savings Mortgage.

In the Columbia Heights neighborhood (east of Sherman Ave) the rents are high and the property prices for 3-4 bedroom homes are selling for less then $500,000. If you buy a town house with 20% down, your monthly mortgage with your PITI would be around $2,300 (estimates). Basement bedrooms are renting for $900+ and master bedrooms and other bedrooms upstairs can go for $900-1100+ a month. Rent two of your bedrooms and you the owner may only have $700-$900 a month to pay and that is not including the money you would be saving from uncle sam and taxes.  Home buying makes a lot of sense especially if you have a basement to rent or a bedroom upstairs.

The crazy economy is adding to real estate affordability.  There couldn’t be a better time to buy real estate, whether for an investment or for a primary residence, and in many locations it is actually cheaper to buy than rent.  The best investment is where you buy low and sell high, it’s all about timing.

Relocation can be tough or easy, and what it all boils down to is that it is YOUR choice.  Relocation is sometimes by choice and sometimes out of necessity.  Clearly when it is by choice the entire experience can be an easier one, as the move is deliberate.  Relocation because of a job, financial matters, or family is another option all together, one which can be made difficult through dread or simply digging one’s heels in, but it doesn’t have to be that way. We have the tools when it comes to outsourcing for movers, contractors and giving you insight into temporary housing.

Make relocation fun.  Consider relocating to your new town or city an adventure.  Make a list of all the restaurants that you want to try, museums you want to visit, new hobbies you want to take up, and more.  Relocating offers a great opportunity to reinvent yourself, meet new people and explore new interests. People are moving out of the Washington DC suburbs and into the city. There is a growing dismay over metro and the traffic you will battle if you commute into the city frequently. Housing prices have remained strong because people are moving in and not out.

Saying goodbye doesn’t have to be forever.  Before you move, make a date to see old friends, either by inviting them to your new home or by planning a getaway somewhere in the middle.  Deeply rooted friendships won’t disappear, and they may even become enhanced through distance.

Research your new area before leaving. A REALTOR® is an excellent resource for not only learning about local real estate opportunities but also getting a lay of the land.  We (Simunek-Pritchett Team) can help you get to know different neighborhoods and what each has to offer, provide you information on local schools and give you a variety of resources to tap into.  If you are relocating, embrace it and do your best to erase your fears.

Click here to read a recent article from Realty Times, “Relocation Tips to Help You Make Your Move Stress-Free”.

Mortgage help basics could save struggling homeowners hours of sleepless nights.  Many people are worried about finances at the moment, and the standstill taking place in congress is not helping alleviate anyone’s fears.  There is help for those who have lost their jobs, as well as those who are facing a significant reduction in income, knowing how to face these fears and get help is of the essence.

The first thing to note, a rule to live by if you will, is that communication is key.  Don’t stop making payments, don’t bury your head in the sand, talk to your lender.  This is a good first step, and if it doesn’t get you anywhere there are places to turn next. Check out my preferred lender list on my U Street Living site under home care.

If your lender is unwilling, or incapable of helping lower your monthly payments there are mortgage hotlines and federal programs that have people available to assist those facing foreclosure.  Making Home Affordable is one program in place but there are other agencies that provide information and assistance free of charge.

If you don’t know where to turn, call me.  Most real estate professionals have dealt with some type of distressed property at some point and may be able to recommend programs or people who can help you out of a jam.

Facing foreclosure was never part of the dream when you bought your home.  It is of the utmost importance to be your own best advocate, do your homework and get some assistance that will help you find a way to dig yourself out of losing your home.

Please be aware that there are loan  amount changes for the DC metro area.

DC currently benefits from a higher limit to conforming loans – up to $729,750.  For loans closing after Sept, 30th this maximum loan amount will be dropped to $625,500. FHA loan limits will come down too.

*Jumbo loans will be more prevalent;
*Lower down payments are more readily available on conforming loans;
*As the product is phased out – expect rates to rise.

To summarize – sales price ranges between $700,000-$1M will be the most impacted.  Please call your lender to discuss how this change will affect your financing post 9/30.

Real estate success is local. While many communities across the nation are seeing home values continuing to slide, many other markets appear to have stabilized or are displaying signs of stabilizing. One day we hear good news, the next bad, but overall the big picture is much better than it has been. DC homes prices have gone us. The Washington Post indicates that DC has had the sharpest increase of 20 metro areas which were tracked.

What is affecting real estate the most is jobs. Where there are jobs there is typically a more stable housing market. Where unemployment rates are high, real estate prices are still (for the most part) slipping. We see that in certain parts of the metropolitian area. It is a complicated cycle, we need jobs for real estate recovery and yet real estate is a catalyst for economic recovery. Which comes first, the chicken or the egg?

Richard Simunek with the Simunek-Pritchett team says that, “the interest rates a way down.  The market for close-in homes has been good, relative to all the real estate problems else where.  People have just refocused entirely and want to be closer in, with high gas prices and the long commutes are frustrating.”

The DC market is doing well.

Click Here to read the Washington Post article. http://www.washingtonpost.com/business/prices-rose-in-13-of-the-20-metro-areas-tracked-by-the-price-index-after-hitting-low-in-march/2011/06/28/AGotO2oH_story.html?hpid=z4

When buying real estate homebuyers may consider location, wondering how important is it?  Everyone is well aware of the real estate catch phrase “location, location, location” but what does location really mean to a real estate transaction?  Quite simply, a lot.  Location sums up your home in many ways and most real estate professionals will tell you that it is better to buy the worst home in the best location, compared with the best home in the worst location.

Location is different from community to community but each community has more desirable and less desirable locations within.  For example, buying a palace next to the railroad tracks is fine if you understand that the railroad tracks aren’t going anywhere and you will hear the train come through at all hours of the night regardless of how nice your home is. But when it comes time to listing your property, how many buyers will reject the property because of the noise etc…? You may be ok with it but that is not always the case for everyone. Just like buying on a busy street.

Good schools, proximity to amenities, appearance, available dining and shopping (like all that U Street has to offer), and parks like Rock Creek Park are but a few criteria that can create an ideal location.  Getting to know an area via an experienced REALTOR® is always a good idea before selecting a home.  The bottom line is that when it comes time to sell your home a good location can make all the difference for both the price sold and the amount of time that it takes to sell. Washington DC has an exceptional quality of life and that is why it has held its own within the last few years.

The internet plays an integral part in selling real estate in Washington DC.  Research shows that the majority of home buyers begin their search on the web, therefore anyone selling real estate in today’s market stands a much better chance if his home sticks out online.

Most REALTOR® websites have property search features that not only show their listings but all listings in their area.  These online listings display whatever the listing broker has submitted to the MLS, including a homes features and a variety of photos.

Quality photos are a very important part of internet marketing for a home.  Much like a home’s curb appeal, a good photo can grab a potential buyer’s attention and get him inside for a closer look.  It is like a 24 hour 7 days a week online open house. Unlike a drive-by, the internet can provide a wealth of information and a glimpse of the inside of a home.  If you have a great kitchen an online photo can show it as well as state it.  Likewise, poor quality photos or photos that are taken from the wrong angle can make a fabulous home look awkward and unappealing.

The internet is changing real estate marketing.  Taking advantage of showing your home off online should bring a stream of potential buyers through your front door.  A strong internet presence equals a strong leg up in today’s Washington DC and U Street world.