Welcome

Hi, and welcome to my real estate blog site. I hope you find the information here useful, informative, thought provoking, and perhaps good for even a chuckle or two. Please feel free to join in and participate by leaving a comment, suggestion or question. On the right side column navigation panes you will find areas for getting around on this site and some helpful links as well. To search my blog site for a topic of interest to you either use the search box in the upper left hand corner menu bar or use the blog archive on the right side column pane. Thanks for stopping by... And if you, or someone you know, is looking to buy or sell a property in Northern Virginia, please contact me or call at (703) 615-1036.

Sunday, May 13, 2012

There's Water All Over The Place !! - OMG Who Do We Call ??!!

When you have a plumbing emergency in your home the last thing you want to be running for is the Yellow Pages looking for emergency plumbing services. I learned this lesson well recently when my father had a problem in his house.  

The thin copper refrigerator ice maker water line connection somehow failed or ruptured on the back of his refrigerator where it connects to the back of the refrigerator.  This caused a slow but steady leak that must have started during the day (and was unnoticed by him at the time) and continued through the night until the morning.  When my father woke up in the morning and went downstairs to the kitchen he discovered he was standing on a water soaked kitchen floor, that then leaked through to the lower level basement ceiling.  

Going through the Yellow Pages and calling local plumbing companies for "emergency service" did not get anyone to come over right away or within a few hours.  I got the frantic call from my father and was able to respond and go over to his house by mid morning and locate the main water shut off valve, as well as another separate "artery" water line pipe that fed water into the kitchen and refrigerator ice maker which luckily had been installed with its own separate shut off valve too.  I was able to stop the flow of water dripping and leaking onto the kitchen floor by shutting off the main and feeder water line valves.  

Here is another valuable lesson for any homeowner or renter in the case of a plumbing leak or water line or valve rupture, ALWAYS KNOW IMMEDIATELY WHERE TO FIND YOUR MAIN WATER LINE SHUT OFF VALVE which controls the flow of water from the street main water line into your house.  There is also another one usually located at the curb which your local water authority provider can also shut off.  

While we were waiting for an "emergency plumber" to show up (by this time it was around noon or 1:00 p.m., my father remembered that he had an extended service plan rider, attachment or addendum to his HVAC regular maintenance/service contract which covered plumbing calls as well.  We called this company and they actually showed up in an hour or so of the call (now by 2:00 - 3:00 p.m.) and the first "emergency plumber" contractor had still yet to show up!!  The plumbing contractor confirmed my diagnosis and identification of the problem and the source of the leak.  We were able to turn the main water flow valve back on to restore water to sinks, toilets and showers (and cut off the flow of water to the refrigerator ice maker from the "artery" line valve that I was able to locate and close off).  My father was subsequently able to get a new refrigerator installed (without ice maker line connected or installed) in a few days.

In this situation I learned the value of having an extended service contract addendum or rider to your regular HVAC maintenance/service contract. In this case they did not substantively do anything but confirm my diagnosis of the problem; however, they were there on site in a very short amount of time and well before another "emergency plumber" had responded.  Had I not been around and able to go over to my father's house to help him out, they would have been able to at least stop the flow of water (as I did) and to render further assistance if necessary.

An HVAC regular maintenance/service contract usually provides for the contractor or company to come out twice a year; once in the late Spring before the height of the summer to check on the functioning of your air conditioning components to ensure optimal performance and energy savings for the summer months; and the same once again in fall to check on your electric heat pump or gas furnace heater.  If you have such a regular HVAC service contract, make sure it also covers plumbing "emergencies" or calls as well.  

It is well worth having this as an "insurance" plan so that in the event of such a "geyser" - LOL or unexpected flow of water in your home, you know immediately and instinctively what to do and who to call for service instead of going through your local Yellow Pages and hoping you can get an "emergency" plumber to come out.  


Sunday, May 6, 2012

Travel VISA to the USA to Buy Real Property

Here is something very interesting to watch and track; a proposed bill in the United States Congress (S. 1746) that would give foreign investors buying real property (in cash, no mortgage or debt attached to it) a Visa to come to the USA if they purchase a home (or homes) totaling $500,000 USD or more. 

The Bill is called the Visa Improvements to Stimulate International Tourism to the United States of America Act (dubbed, the “VISIT USA Act”).


To track this Bill in the United States Congress, see link below:



Status: This bill is in the first step in the legislative process. Explanation: Introduced bills and resolutions first go to committees that deliberate, investigate, and revise them before they go to general debate. The majority of bills and resolutions never make it out of committee.

Let’s hope this one does get all the way through Congress and enacted into LAW; as it will not only benefit and stimulate the much weakened U.S. economy, but will also provide an opportunity for people from certain countries who are not automatically granted a travel Visa (i.e. Indonesians) under the Visa Waver Program (VWP). This new “VISIT USA Visa” type would be a new category to the list of Visas for Temporary Visitors.

Saturday, May 5, 2012

Real Estate Humor - Bubble Burst

Actually the real estate market bubble burst, and the ensuing recession which sprung from it, is no laughing matter if you're an investor; speculator, "flipper", a home owner, real estate broker or agent, mortgage lender or mortgage broker, or other real estate industry service provider.

Like Ancient Greek Literature and the works of Homer in the Iliad and the Odyssey; in the tragedy, we also find irony and humor in it all.... 

Here is a collection of parodies which pretty well sums it all up though....

                                                                   Too Funny


(Hitler is Briefed & Advised of the Housing Market Bubble Burst)

 


(Hitler is Briefed on the Extent of Foreclosure Fraud)



(Hitler as a Managing Real Estate Broker)



(Crash Test Dummies Discuss Using Equity In Your Home Like an ATM Card to Buy Stuff)



(90's Alternative Rock Parody on the Real Estate Market - Rage Against the Machine)



Wednesday, May 2, 2012

Update on NoVA Foreclosure Statistics - Good News & Bad News

There’s good news and bad news about foreclosures in the area.

The average price of foreclosed homes across Fairfax County is well above the average price across Virginia and the nation—that’s the good news.

The bad news is that there has been little improvement in the number of foreclosures on the market in Fairfax County in the past year.

Virginia has about 15,000 homes that were bank-owned or in foreclosure, or 1.1% of the United States’ 1.34 million foreclosures. 16% of Virginia’s foreclosures were in Fairfax County. According to RealtyTrac.com, there were 2,431 Fairfax County homes in foreclosure in late March.


Patience and Pricing

The difficulties and stigma attached to buying a foreclosed property (or a negative equity "short sale" property) have been factors that have discouraged many potential and prospective home buyers (and investors) from attempting to buy a foreclosure or "short sale" property in the past. Other favorable market conditions and an overwhelming shift from a once strong Seller's market to a "target rich environment" and an extremely strong Buyer's market led many home buyers to stay clear of foreclosures and short sales.  There was also an assumption that a distressed sale property was trashed and in need of a great deal of repairs or was a "Section 8" type of property.

The stigmatism attached to buying a distressed property is no longer the case. Home buyers are realizing that they can take advantage of some fantastic deals out there and get a property in move-in or "turn-key" condition.  Anyone who bought property around 2004 at the height, apex or zenith of the housing market or at the top of the roller coaster quickly saw their home value drop significantly beginning in 2005 when the bubble began to burst and the sub-prime debacle began to unfold and unravel and homeowners watched as home values plummeted down towards the bottom of the roller coaster. Actually it was like a car being driven off a cliff with a brick to the accelerator pedal. If someone bought with little or no money down, they quickly found themselves without any equity in the property and upside-down on their mortgage; hence the proliferation of "short-sales".  Many people realizing they had an "under-performing asset" on their hands and simply walked away and left the keys on the counter and let the property go into a "strategic foreclosure".  As a result there were and still are many foreclosure properties on the market that are actually in turn-key condition. 

The average price of a foreclosed home in Fairfax County in late March was about $321,000. That’s more than both Virginia and the nation’s average prices, which were $243,772 and $165,321 respectively.  Virginia’s foreclosure situation has seen little movement since this time in 2011, according to the Virginia Housing Development Authority (VHDA). A problem unlikely to change significantly until Virginia sees a drop in unemployment and household debt, and a rise in incomes.

Virginia’s foreclosure prevention website, at www.virginiaforeclosureprevention.com, reports that when foreclosed properties are sold, the borrowers’ loans have been delinquent for about 117 days, or four months.

The hardest part about buying a property that has been foreclosed on is being patient. Frequently, the bank will give a verbal reply or acceptance to an offer, and then send the contract addendums to the buyer later. A verbal reply, however, is not legally binding as the Statute of Frauds requires contracts (or the negotiated terms and conditions and acceptance thereof) for real property to be in writing; so in the time the buyer is waiting for the paperwork from the bank, the bank can legally accept another offer and the prospective buyer may be missing out on other opportunities while waiting on the bank.  If you're a "cut throat" investor or a "low ball" offeror with time and money to play with, that is a waiting game you can afford to play and take a chance on. If, on the other hand, you are a first time home buyer trying to capitalize on highly favorable market conditions with distress properties, you could be engaging in a wait-n-see game or chasing the curve on housing market values while you're dealing with highly problematic distress and foreclosure property contract offers that either don't go through the first time or fall apart subsequently with bank owned property, also known as "REO properties".    

The foreclosed properties that have sold so far this year have been on the market for an average of 65 days, but that number is slightly skewed.  Because it takes the banks a few days to reply or finally accept an offer, they have to keep the property listed in an "active" status in the real estate MLS (Multiple Listing Service) while they do their paperwork although basic terms and conditions have already been agreed to.

The Fairfax County government website has a variety of resources for homeowners facing difficulties paying their mortgage, including a list of Housing and Urban Development (HUD)-approved counseling agencies and information on foreclosure prevention.

Here are some links for Statistics on Home Sales & Market Conditions in Fairfax County and Northern Virginia:



http://cra.gmu.edu/

Another good indices of either how strong or weak the housing market is known as the "Absorption Rate" - which means if no new homes came on the market how long or the rate at which it would take to sell or liquidate the current inventory of homes based on current sales statistics data and market trends.