Buy Alexandria Real Estate: April 2008

Whether you are in the market to buy a home or to sell your current home, it is important to keep abreast of market statistics (or at least to work with a knowledgeable REALTOR who does).  Newspapers, national magazines, and television news report on regional and national trends, but don't do a very good job of explaining the local real estate market.

The number of new housing starts nationwide or the percentage increase in foreclosures in the entire state have very little, if any, bearing on how quickly your Arlington condo will sell, or how much negotiating room there is with the seller of an Old Town Alexandria townhouse.

Two statistics that warrant close examination are:

1. the average number of days a home stays on the market in a particular area before a contract is ratified between seller and purchaser.
   
   
2. the average sales price as a percentage of original listing price -- this shows how willing sellers are to reduce their prices and how much negotiating room a buyer has in the current market.

If you are thinking about buying a home in Alexandria, Virginia,  or getting ready to sell one, pay close attention.  I prepared an analysis of all homes sold to date in 2008 divided up by price range.  This analysis for Alexandria looks at

• the number of sales in each price range
  
  
• the net sales price (final sales price minus any seller subsidies, or concessions towards closing costs)
  
  
• the original sales price (not the final listing price at time of sale, but the price at which the home originally went on the market); and
  
  
• the number of days on the market.

The results may surprise you. 

You might expect the most negotiating room in the higher price ranges.  Right?  WRONG.

The lower priced homes sell quicker than higher priced ones.  Right?  WRONG AGAIN.

Here goes:

This first chart shows the number of sales in each price range.

This next chart shows the average number of days on market for all sales in each price range in Alexandria.  The overall average days on market year-to-date in Alexandria is about 71 days.  The columns in red indicate an above average amount of days in that price range.  The black columns indicate a below average amount of days on market, or relatively fast sales.

One thing you'll notice is that the fastest selling price range is the $700,000 to $800,000 homes.  Homes in the $200K and $200K-$300K price ranges are actually selling at a slower pace than homes in the $600K-$800K and even the $1 million plus price ranges!

The final chart shows the average final sales price as a percentage of the original listing price.

Once again, the homes that are garnering the highest percentage of the listing price (or least discount) are in the $700,000 to $800,000 price range.  The least expensive homes -- those under $200,000 are actually selling for the largest discount from asking price.

Not what you expected?

To get started with your home search, click on Northern Virginia Home Search, and then enter your criteria and price range.  You'll get detailed information on available homes e-mailed to you on a daily basis.

If you're thinking about selling your home and want to know what it's worth, click on Value My Virginia Home for a preliminary comparative market analysis.

You've heard all the lawyer jokes and so have I. 

In fact, let me let you in on a little secret:  There's only one lawyer joke.  All the rest are true stories.

There's a lot of law involved in a real estate transaction.  There's agency law, contract law, property law, tax law, condominium regulations, homeowner's association rules, escrow accounts, and more.  Some states like New York require attorneys to write the real estate purchase contract.  In Virginia & D.C., real estate agents fill in the blanks on a form contract provided by the local associations.

In the D.C. metropolitan area, I've heard it reported that approximately 1 in 4 adults holds a law degree, although not all practice law.  If you are an attorney looking to buy or sell a home, you may find it beneficial to work with a REALTOR who speaks your language.

Introducing THE REALTOR FOR ATTORNEYS:

Brian Block, Esq., REALTOR / Attorney

Here's some background about why you should consider trusting your real estate needs to me.

I graduated from highly-ranked George Mason Law School in 1998.  For 2 years, I practiced banking litigation at a medium-sized law firm in D.C. representing major banks suing the U.S. government in the aftermath of the 1980s S&L crisis.  Following that, I worked a year in securities law advising on private placements and public offerings as well as some general practice.

After a short time handling legal matters on my own for private clients, I entered real estate in early 2002.  Reaching out to area attorneys to help them with their real estate needs, I shortly became "Of Counsel" with a real estate litigation firm in Old Town Alexandria.  For 3 years while I built my real estate sales business, at the law firm, I learned the real estate business ins and outs from the legal perspective.  

Learn about The Difference Between Realtors & Lawyers

I learned what can go wrong with a real estate transaction. 

95-97% of real estate deals go smoothly.  Everyone shakes hands at the settlement table.  Sellers get their money.  Buyers get the keys to the new house.  Everybody is happy.

These were not the people who showed up at our law firm.  The people who walk in the door at a real estate litigation firm are those 3-5% that have big problems.  Lots of money at stake.  Nobody's happy.  I've seen deceit, fraud, trickery, and big bucks litigation.  These are deals that went really wrong.  I've been to settlements where the parties did not want to see each other let alone sit at the same settlement table.  I've seen defaults, judgments, and class action lawsuits.

As a REALTOR, I incorporate my knowledge and experience of the law to best serve my clients.  While I'm not representing my clients as an attorney nor practicing law, I bring those skills to the table.  My job is to ease the anxieties and prevent those 3-5% of transactions from going awry.

Thus, as a result, many of my clients do end up being attorneys themselves.  There seems to be a comfort level. 

I can speak legalese. 

I've even had the stereotypical 20 minute discussion with attorney clients over comma placement. 

I understand contracts. 

I understand property. 

I can negotiate.  

Here's a little chart to help you make a wise decision:

As an attorney, you need to concentrate on your billable hours.  Why not leave the stress of the homebuying or home selling process to a REALTOR / Attorney that you can trust?

Contact Brian Block, Esq. today!

If you're just getting in the market for real estate, chances are you're hearing a lot of unfamiliar terms these days, especially on the mortgage side of things.  Real estate introduces you to entirely new language.  One filled with lots of words that are thrown around by your mortgage lender, REALTOR, and even your friends and family, who may sometimes make the assumption that you know what they are discussing.

Don't be afraid to pull back for a second and say "Hey, I have no idea what you are talking about."  Just as George Washington coming back to the present day would need many things to be explained to him, when you start your home search you'll be encountering uncharted territory and can make use of a glossary.

Never is this more true than with all the abbreviations and acronyms used in the real estate lingo. 

It sometimes reminds me of that famous scene in the movie Good Morning, Vietnam when Robin Williams, fed up with all the military jargon, jokingly asks:

    “Excuse me, sir. Seeing as how the VP is such a VIP,

     shouldn't we keep the PC on the QT? 'Cause if it leaks

     to the VC he could end up MIA, and then we'd all be put

     out in KP."

I remember a real estate sale I had several years ago.  A Navy Admiral was purchasing a home from an Army General.  During the final walkthrough of the home, the two of them got to talking military and the acronyms and abbreviations were flying left and right, but mainly they were flying right over my head.  That's when I spent the rest of the time talking with their wives and looking through the kitchen and bathrooms to make sure all the appliances were working.

Wondering about all these real estate abbreviations?  Here's clarification of a few of them:

APR:  Stands for Annual Percentage Rate -- shows the cost of a loan expressed as a yearly interest rate, including the interest, points, mortgage insurance, and other associated fees.

ARM:  Adjustable Rate Mortgage -- a mortgage loan that can be subject to changes in interest rate

EMD:  Earnest Money Deposit.  Money put down by a buyer to show that they are serious about purchasing the home.  Learn more here: Bring Your Checkbook With You on Your Househunt

FHA:  Federal Housing Administration.  Assists home buyers by providing mortgage insurance encouraging lenders to make loans to borrowers who might not qualify for conventional mortgages.

GFE:  Good Faith Estimate.  This estimate of all closing fees must be given to the borrower within 3 days after submission of a loan application.

HUD:  U.S. Department of Housing and Urban Development

HUD-1:  The settlement statement provided at closing that itemizes all the closing costs for both seller and buyer.

LTV:  Loan-to-Value ration.  This is a percentage calculated by dividing the amount borrowed by the sales price or appraised value of the home to be purchased.

MIP:  Mortgage Insurance Premium

PITI:  Principal, Interest, Taxes, and Insurance.  These are the four elements of your mortgage payment.

PMI:  Private Mortgage Insurance  -- can be required for borrowers with down payments of less than 20% of a purchase price.

VA:  Department of Veteran Affairs.  Guarantees loans made to veterans.

VHDA:  Virginia Housing Development Authority.  Virginia's state mortgage finance agency.

Now, when someone asks:

"Did you get the GFE for your ARM?  What's the APR and PITI and will you need PMI according to the HUD-1?  How about your EMD?" 

You'll know what they're talking about.

When deciding on a Northern Virginia REALTOR to help you learn the language of real estate, why not work with one with lots of abbreviations and acronyms after their name?

Brian Block, ESQ., ABR, CRS, EPRO, GRI, SRES 

What are the Golden Zip Codes? 

Each year, Washingtonian Magazine publishes a list of the top 50 neighborhoods in and around Washington D.C. by the median sales price of homes.  This allows the reader to determine the areas of Washington D.C., Northern Virginia, and suburban Maryland with the highest concentrations of affluent households.

Great Falls, Virginia -- zip code 22066 has topped the list for several years running and in the May 2008 issue of Washingtonian Magazine, its 2007 median sales price of $1,112,500 again places Great Falls as the frontrunner of fancy homes.

How has the housing market slump affected these priciest areas?  In other words, are the Northern Virginia "Golden Zip Codes" losing their luster?

Here's a chart of the top 10 neighborhoods in Northern Virginia by median price of home sales in 2007:

Let's compare these numbers with the overall statistics for Northern Virginia 2007 versus 2006:

2007 Median Sales Price        $460,000               2006 Median Sales Price        $470,000

% Change    -2.13%

2007 Number of Sales   19,363

% Change  -13.47% 

From this comparison, it is quite apparent that the Golden Zip Codes are faring much better than the overall market.  6 of these 10 zip codes experienced slight dips in median price.  Sales were down in all but three of the zip codes, but not as drastically as in the larger market.

One zip code, 22209 -- the Rosslyn area of Arlington stands apart from the rest.  With a 22% price increase and 21% rise in sales, the Rosslyn area is clearly booming.  This is due in large part to the construction of several new luxury condominiums in the last year. 

Interestingly, all zip codes from Arlington that appear on this chart actually experienced sales price increases over the past year.  Contrary to popular belief, prices are not falling everywhere.  Read Roller Coaster of Real Estate: Northern Virginia Home Prices are NOT in Freefall (except maybe in Prince William County)

If you're thinking about going for gold and purchasing a home in one of these Northern Virginia neighborhoods, click on some of the links below to view samples of current home inventory (around the median price) in each zip code:

GREAT FALLS:   6 BEDROOM 4 BATHROOM COLONIAL ON 2.5 ACRES

MCLEAN:  4 BEDROOM 4 BATHROOM IN CHESTERBROOK WOODS

FAIRFAX STATION:   5 BEDROOM 2.5 BATHROOM COLONIAL ON 1/2 ACRE CUL-DE-SAC

NORTH ARLINGTON:  4 BEDROOM 2 BATHROOM ALL BRICK COLONIAL

VIENNA 22182:  5 BEDROOM 2.5 BATHROOM ON  MORE THAN 1/2 ACRE

WESTOVER:  4 BEDROOM 2.5 BATHROOM SPLIT FOYER HOME

VIENNA 22181:  4 BEDROOM 3.5 BATHROOM TOWNHOUSE

ROSSLYN:  2 BEDROOM 2.5 BATHROOM PENTHOUSE CONDO AT THE ATRIUM

CLIFTON:  4 BEDROOM 4.5 BATHROOM LITTLE ROCKY RUN TUDOR

FORT HUNT:  5 BEDROOM 3 BATHROOM SPLIT FOYER HOME

The luster is still shining bright on these Golden Zip Codes! 

With the advent of online payments, credit card transactions, wire transfers and Paypal, very few carry checkbooks with them any more.  However, in the world of real estate, I suggest that you bring your checkbook with you on your house hunt. 

As much as you'd like to receive miles, hotel points, or other perks, the fact of the matter is that you just can'tuy a house with a credit card.

When you find the house you'd like to purchase and you're ready to make an offer, it's time for something called an Earnest Money Deposit or Good Faith Deposit.

Webster's Dictionary defines "earnest" as

1. a serious and intent mental state; or 

2. a considerable or impressive degree or amount 

You'll write a check for the earnest money deposit and submit that with your purchase offer.  This money is distinct from your down payment.  It's a "good faith deposit" to show your intent to move forward with the purchase.  It displays your seriousness to the seller of the home.  This check is typically made payable to the real estate brokerage that's assisting you with the purchase or to the title company.  The check will not be deposited until your offer is accepted by the seller(s).  If your offer is not accepted, the check will be returned to you or held until your next offer on another property.

The Earnest Money Deposit gets held in escrow in a trust account and at settlement on the property will be applied towards your down payment and/or closing costs.

How much is the Earnest Money Deposit?

This common question does not have an exact answer.  It's customary to put a deposit of at least 1% of the sales price of the home.  Thus, on a $500,000 purchase, you'd be looking at writing a check for $5000 to be submitted with the offer.  You can have a deposit of less or more, but just remember that the higher the amount, the more attractive your offer will be to the seller.  This is another negotiating tool available in the sales process.

Dust off that checkbook and bring it with you when you go searching for homes.

CLICK HERE TO GET STARTED 

Congratulations!  You're getting married.  From the day you popped the big question and changed your status from boyfriend to fiancé, you've no doubt been receiving lots of unsolicited advice from friends, family, and strangers about planning the wedding and about marriage.

So here comes your friendly Northern Virginia & D.C. REALTOR with some more advice for you as you begin the transition from YOUR BACHELOR PAD to YOUR MARRIED NEST.

First, a few fun quotes about marriage that every man needs to hear:

"A man in love is incomplete until he is married.  Then he is finished."  Zsa Zsa Gabor

"Courtship brings out the best.  Marriage brings out the rest."  Cullen Hightower

"Marriage is a great institution, but I'm not ready for an institution yet." Mae West

"Bachelors know more about women than married men.  If they didn't, they'd be married too" H.L. Mencken

All that aside, many things will change once you get married, not the least of which is your living arrangements.  Whether you stay where you are and your lovely bride moves in, or you decide to purchase a new place together (using the services of your favorite REALTOR), the days of dirty socks on the floor, movie posters as decoration, and nothing but beer, o.j., and salsa in the fridge are over.  Say hello to new linens, candles, and yes, less closet space.

Your Refrigerator as a Bachelor                                        Your Refrigerator after Marriage 

After you've taken your vows, danced your first dance (of course, you took dance lessons with my wife's company, The Wedding Dance Specialists), and returned from your fabulous honeymoon, it's time to settle down.

Here's some advice:

• STUFF -- with two people now sharing their lives, you'll begin to notice that there's a lot more of it -- STUFF!  You may need some more room to spread out.  Closet space is important -- just ask her.  Moving is also a great excuse to get rid of some of your excess stuff.  My rule of thumb:  If you haven't used or touched it in 3 years, ditch it!

• BATHROOMS -- I've found that one of the keys to surviving marriage is having two bathrooms.  Sure, you're married, you're intimate, but the sights, sounds, and... smells of the bathroom?  Let her apply her makeup in peace while you enjoy some toilet reading time.

• GET ON THE SAME PAGE -- before you start your home search, discuss with each other your needs and priorities.  I love working with newly married couples, but it's extremely difficult to help them find the right home when he wants a 2 bedroom loft condo and she wants a Colonial with a fenced yard.  Have a serious discussion and figure out what you want.

• IT'S YOUR FIRST HOUSE -- NOT YOUR DREAM HOUSE -- it's time to stop renting and start building some equity.  Build your first nest together.  Remember, you'll need to compromise on some things in your first home.  However, it's just that, your first home.  Your second home will be your move-up home -- maybe you got a job promotion or your family is getting larger.  Your third home will be your dream home!  That's usually the life cycle.

• MAKE IT YOUR OWN -- once you own a place, make it your own.  Choose paint colors.  Decorate.  Add your personal touches.  Have fun with it! Getting dirty and painting together can be a fun bonding activity.

Guys, you've taken the plunge for the lifelong journey of marriage.  Get started on the path towards owning your first home.  CLICK HERE TO RECEIVE INFORMATION ON HOMES IN YOUR PRICE RANGE.

One of the greatest features (especially with the warm weather finally here) is the large balconies, some of the largest around in Northern Virginia. To learn more about the building click here:

Who Wants a Big Balcony? Alexandria Knolls West Condos have the Biggest!

Here's the information on a condo at Alexandria Knolls West that I just placed on the market today.

Terrific Price for Spacious Alexandria Condo Location: Alexandria Knolls West Hurry up and see the best priced and spacious 1405 square foot condo on the 8th floor at ever-popular Alexandria Knolls West. Enjoy the sunset, plant a garden, relax and BBQ on a wonderful 40 foot balcony and never run out of space with giant walk-in closets in the master bedroom. The kitchen features a breakfast nook. Renovated bathrooms and crown molding adorn the large living area. Alexandria Knolls is convenient to I-395, the Capital Beltway, Old Town Alexandria and D.C. Utilities are included in the condo fee. Photo Gallery Information Contact Information Brian Block brian@brianblock.com 703-626-0715 Pricing Asking Price: $288,999 Condo Fees: $642/month Property Location 6101 Edsall Road #802 Alexandria, VA 22304 Links Learn More about Alexandria Knolls West View the Virtual Tour Features Bedrooms: 2 Bathrooms: 2 Year Built: 1975 Subdivision: Alexandria Knolls West Located on Floor #: 8 Floors in Bldg: 18 School District: T.C. Williams Square Footage: 1405 Agent Name: Brian Block Broker: RE/MAX Allegiance MLS #: AX6733523 Attributes Appliances Range/Oven Full Refrigerator Washer/Dryer Dishwasher Sink Disposal Interior Amenities Wet Bar Huge Balcony Walk-in Closets Building Amenities Swimming Pool Guest Parking Exercise Room Tennis Court Beautiful Grounds & Landscaping Powered by vFlyer.com EQUAL HOUSING OPPORTUNITY VFLYER ID: 1621258

If you are thinking about buying or selling a home in Alexandria, Virginia, then you are no doubt hungry for data and statistics about the market.  Just watching prices of particular homes and activity here and there is not enough since it only provides anecdotal evidence about what's going on in the market.  

So, after you finish with appetizers and side dishes, take a bite out of the main course of statistics that I'm serving up today about the overall Alexandria Virginia housing market.

MAIN COURSE OF STATISTICS ON ALEXANDRIA MARKET: 

Alexandria sales were down over 40% in March 2008 from the previous year and just over half as money homes sold this March as sold 2 years ago in March 2006.  

The good news is that sales are picking up a bit of steam from January and February.  While January 2008 saw only 77 home sales in Alexandria and February logged 105 sales, there were 112 homes that sold in March 2008.  For more information, you may wish to read Is the Northern Virginia Housing Market Ramping Up?

Prices in Alexandria are down to their most affordable level in several years. The average sold price in March 2008 was down close to 14% from March 2007 at $456,739.  Meanwhile, sellers are slow to adjust to the market changes.  Average list prices are down only about 12% to $487,431.

What does this mean?  Slightly more negotiating room for buyers in Alexandria.  In March 2006, homes were selling on average for 97.25% of the listing price.  This dropped to 94.66% in 2007, and stood at 93.70% in March 2008.  So despite the reluctance of some sellers to lower their prices, buyers (with the help of their experienced REALTORS) are able to negotiate further price reductions.

Some good news for those selling their Alexandria homes:  Homes are selling faster in 2008 than in 2007.  Homes sold in March 2008 averaged 86 days on the market compared to 109 for March 2007.  However, it is still much slower than the average 58 day pace in 2006.

Having finished up the main course, it's time to take a look at the desert menu. 

DESERT MENU -- WHAT'S FOR SALE NOW IN ALEXANDRIA:

With 815 Alexandria homes on the market as of April 17th, we're looking at just over 7 months worth of housing inventory based on March 2008 sales pace.  Six months of inventory is considered a balanced market, so the current inventory represents a slight market bias towards buyers in Alexandria.  

Approximately half the homes on the market in Alexandria are condominiums.  There are 123 single family homes available in Alexandria, and the remainder are townhouses.

88 homes are available for under $200K.  309 homes in Alexandria are in the $200K to $400K range -- the majority of these are 1 and 2 bedroom condos.  183 home are available between $400K and $600K.  In the over a million category, there are 68 available homes in the City of Alexandria. 

If you have any questions or would like further statistics about the Alexandria real estate market, I'll be happy to assist you.  Both my office and my home are in Alexandria and I'm always keeping a pulse on the market.

To get started right away follow the links below:

CLICK HERE TO START RECEIVING E-MAILS WITH AVAILABLE ALEXANDRIA HOMES

and/or 

FIND OUT THE VALUE OF YOUR ALEXANDRIA HOME

You've heard about the Alexandria community of Cameron Station. Perhaps you've seen pictures online. Or even read about it right here on my blog:

Northern Virginia Neighborhoods: An Introduction to Cameron Station, Alexandria

Cameron Station Market Update: Summer Sales in Premier Alexandria Community

Sales in Cameron Station, Alexandria

Catch a Cool Cameron Station Condo While You Can!

November Update on Cameron Station Sales

Cameron Station Real Estate in 2008

Now, I present a brief video driving tour of Cameron Station filmed on this beautiful Spring day. It's the next best thing to actually being there yourself.

DISCLAIMER: Don't try this at home. Videotaping while driving can be dangerous to yourself and others, and possibly result in a fatal automobile accident. Trust the driving to a trained professional REALTOR. (My next neighborhood tour may be a walking tour!)

CLICK HERE TO START YOUR SEARCH FOR A CAMERON STATION HOME