Buy Alexandria Real Estate: August 2009

There's the dictionary definition of contingent.

Whether you're buying a home or selling a home in Northern Virginia, you're likely to have a contingent contract and need to understand the different contingencies that may exist.

In essence, a contract contingency is a mutually agreed upon escape clause that allows one of the parties to the real estate deal to unilaterally terminate the contract without penalty.  The Regional Sales Contract in Northern Virginia (which is generally used in D.C.) contains a number of contingencies that can affect buyers and sellers of homes.

The most prevalent contract contingencies are the following:

• FINANCING -- These clauses make the contract dependent upon the purchaser getting approved for the mortgage financing for which they apply.  Unless purchasing a home for all cash, a buyer will need a mortgage loan.  If they cannot be approved for financing, they will not be able to buy the house.  This contingency protects the buyer to be able to withdraw from the contract after a specified number of days if they cannot be approved for a mortgage.
  
  
  
  
  

• APPRAISAL -- An appraisal is a third party independent professional opinion as to the value of a home.  Every lender requires an appraisal to be completed before they will proceed with lending money.  The mortgage lender bases their lending decision upon the appraisal number and will only loan up to the amount of the appraisal or the sales price, whichever is lower.

What happens if an appraisal comes in lower than the sales price? There are several options for the buyer:

1. Buyer can proceed with purchase regardless of appraisal value.  The buyer will have to bring extra cash to the table to be able to buy the house.
   
   
2. Buyer can ask the seller to lower the sales price to the appraised value and seller can agree to do so.  More often than not, especially in a market with declining values, we see this option happening.
   
   
3. Buyer and seller can negotiate a sales price somewhere in between the previously agreed upon sales price and the appraisal amount.  This too happens regularly.
   
   
4. If the buyer asks the seller to lower the agreed upon sales price and the seller flat out refuses, the buyer can void the contract.

• INSPECTION -- In my philosophy, EVERY buyer purchasing a home should get a home inspection.  Read Take Your Northern Virginia Home for a Test Drive: The Importance of Home Inspections for further information.
  
  
  
  Alongside the general home inspection, you can have a contingency for a radon inspection and for a termite inspection in the contract.

• SALE OF HOME -- If you are buying a home, but first need to sell your home, you'll need to use the Sale of Home contingency.  This provides you with an out from the contract for the new home if your current home does not sell.
  
  On the flip side, if you are the seller, you may have a "choice of home" contingency so that until you find your new home, you may not be held liable to consummate the sale of your home.

With contingencies, there's always the chance that a sale will fall through.  When searching the MLS, you'll see contingencies marked as CNTG/KO, or CNTG/NO KO -- kickout versus no kickout.  That's a discussion for another day and another blog post.

When it comes to contingencies and your rights and obligations under a contingent contract, it is advisable to discuss the implications with an informed real estate professional and/or a real estate attorney.

Oooh... I happen to be both. :)

It's time to get Extreme!

Extreme Makeover: Home Edition is here in the D.C. area.  You've seen the show before.  They knock on the door of an unsuspecting family and send them away for a week while a huge army of volunteers builds the deserving family a brand spanking new home.

Several weeks ago, my brokerage, RE/MAX Allegiance announced that we had the opportunity to participate in this build.  There's a twist on this edition.  In one week, there going to be building two projects, a new home in Hyattsville, Maryland, and a community center in Washington D.C.

In just 24 hours, we had about 200 agents, staff, and family members sign up to volunteer.  Wow!  What an outpouring of volunteer effort.  Then last week, we were told that only 40 people from our brokerage would be able to participate due to overwhelming support from the community.  So we held a lottery drawing to see who would be involved.

Watch this news clip about the Extreme Makeover going on right now in D.C. and Maryland (short commercial may play first):

Guess who's going to be working on the volunteer crew?  That's right, your friendly neighborhood RE/MAX Allegiance Broker, Brian Block!

Not satisfied with just being extreme... I'm going to be extremely extreme -- that's right, I'm working on the 3 a.m. to 9:30 a.m. shift this coming Friday morning.

Check back for updates.

As you're heading down Edsall Road in Alexandria coming from either I-395 or Van Dorn Street, you'll turn onto Winterview Drive and along the windy road be transported back and away into the wonderful community of Overlook.  You'll pass a mock guardhouse, a tennis court, and lots of open space on your way to...

This Huge Townhouse in Overlook!

Located at 5263 Morning Mist Lane, Alexandria, VA 22312, this luxury 3 bedroom 3.5 bathroom townhouse offers plenty of space.  The home is beautifully decorated and shows like a model home.  As of August 20th, the sign's in the front yard, the lockbox is on the door, and 5263 Morning Mist Lane is waiting for you to call "her" home.

Attractively priced at just $565,000!

The size of the Master Bedroom alone will blow you away!

With a 3 level bumpout, this elegant Overlook townhouse will make you fall in love with your home search all over again. The owner's suite (master bedroom) has a sitting area and 2, count 'em 2 walk-in closets.

The beautiful open layout of the main level is perfect for entertaining. Upgraded ceramic tile, a center island, granite counters, and a gas cooktop making cooking a joy!

You'll love the fact that the laundry room is on the top floor with the bedrooms.

Downstairs the finished basement offers the option of a home gym, entertainment room, or use your imagination. There's also a full bathroom on the basement level.

With a 2 car garage,  a backyard, and the amenities of the Overlook community (pool, tennis court, open space, convenience), you will love this townhouse!

View the online virtual tour of this Overlook townhouse.

Watch a YouTube video of this Overlook home (please ignore the background music or turn off your speakers!)

For more details on this lovely home or to arrange a private showing, call me today at 703-626-0715.

As you're probably aware of by now, Uncle Sam is providing an $8000 tax credit to first-time homebuyers who purchase and close on their homes by November 30th (time is running out -- just over 100 days left).

Take a look at this entertaining RE/MAX video:

What Would You Do for $8000?  You don't have to do anything crazy... you just need to buy a house.

I can help with that.  Give me a call at 703-626-0715.

Or click here to start your home search in Northern Virginia or D.C.

What will you do with your $8000?

Here's a few suggestions:

• new furniture for your home
  
• replace carpeting with hardwood floors
  
• pay off credit card bills
  
• enjoy a vacation
  
• throw a killer housewarming party
  
• save it for your kid's college fund

 

Thank you for reading my blog post.  If you like what you’ve read, then please:

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If you plan to purchase or sell a home in the Northern Virginia or D.C. area,
you can visit my main Northern Virginia & D.C. real estate website at www.VirginiaRealEstateNews.net.

START YOUR NORTHERN VIRGINIA HOME SEARCH TODAY!

Are you wondering about Northern Virginia real estate and pondering what has sold recently?

Here's some information about the most expensive home sales in Northern Virginia (Arlington County, Alexandria City, Fairfax City, Fairfax County, and Falls Church City) for July 2009.  All information was obtained through MRIS.

Overall, there were 90 sales topping $1 million during the month of July 2009, keeping pace with the 92 $1M+ sales in June.

JULY'S MOST EXPENSIVE SALES

Single Family Detached Homes:

• 1201 Towlston Road, McLean, VA 22102  -- Sold on July 31st for $4,150,000.
  After a $1 million price reduction, this home sold for $825K below the asking price. This 7 bedroom home on 5 acres within 3 miles of Tysons Corner features almost 11 square feet of space and green design.  It was built in 2007.
  
  
• 8104 Spring Hill Farm Drive, McLean, VA 22102  -- Sold on July 28th for $3,850,000.
  Built in 2008, this almost 8,000 suare foot home features three finished levels and 5 bedrooms, 5 full and 2 half bathrooms. It sold for $350K under the asking price of $4.2M.
  
  
• 917 Douglass Drive, McLean, VA 22101  -- Sold on July 7th for $2,590,000.
  This brick colonial home features 4 upper level bedroom suites.  Built in 1996, it sits on 3/4 of an acre and has 3 fireplaces.  It went for $405K under asking price.
  
  
• 10351 Elizabeth Street, Great Falls, VA 22066  -- Sold on July 31st for $2,400,000.
  With over 12,000 square feet of space, this massive 1 year old home also has a 4 car garage.  On 2 acres, this house has 7 bedrooms and as many bathrooms.  There's also a tennis court on this cul-de-sac lot.  The home sold for $199K under the asking price.
  
  
• 1303 Kirby Road, McLean, VA 22101 -- Sold on July 9th for $2,225,000.
  After a price reduction of $250,000, this home then sold for another $225K under listing price.  In the Langley Reserve area of McLean, this 2006 home features a master bathroom with heated floors, 5 bedrooms and 6 full bathrooms.

While luxury homes continue to sell at a good pace, you can see from above that they are going for well below the original asking prices.

CLICK TO SEARCH FOR AVAILABLE SINGLE FAMILY HOMES IN NORTHERN VIRGINIA 

Townhouses: 

• 225 N. Royal Street, Alexandria, VA 22314 -- Sold on July 10th for $1,225,000.
  In a prime Old Town Alexandria location, this Victorian townhouse built in 1875 was completely renovated and the kitchen overlooks a great 4 season garden.  It sold after just 15 days on the market at asking price.
  
  
• 302 S. Fayette Street, Alexandria, VA 22314 -- Sold on July 31st for $1,220,000.
  This courtyard style townhouse in Old Town Village features 2,780 square feet of space with over $150K of designer upgrades.  It also has two gardens.
  

• 5706 Cricket Place, McLean, VA 22101 -- Sold on July 16th for $1,185,000.
  Originally built in 1978, this townhouse in Merrywood on Potomac was renovated and has a kitchen with the best appliances: Subzero, Dacor, and Kitchenaid.  The bathrooms were redone with granite and marble and custom built-ins.  The townhouse had nearly 4,000 square feet of space.
  
  
• 1036 N. Stafford Street, Arlington, VA 22201  -- Sold on July 1st for $965,000.
  Selling for just $20K under the asking price, this Bromptons at Ballston townhouse is right in the heart of N. Arlington.  It has 3 bedrooms 3.5 bathrooms and a 2 car garage.
  

SEE AVAILABLE TOWNHOUSES IN NORTHERN VIRGINIA

Condominiums: 

• 1111 N. 19th Street #2302, Arlington, VA 22209 -- Sold on July 3rd for $1,005,000.
  A corner unit at Waterview Residences provides views of the Potomac River, Key Bridge, and Georgetown through the floor to ceiling windows.  The condo is atop the the Hotel Palomar and room service is available -- how do you like that?
  
  
• 1200 N. Nash Street #854, Arlington, VA 22209 -- Sold on July 31st for $830,000.
  Prospect House is perenially one of the favorite luxury condos in Arlington.  Why?  The view.  This 8th floor unit offers breathtaking views of the DC monuments and skyline from the large balcony and two story living room.  The 2 bedroom condo has 1,398 square feet of space.
  
  
• 2001 N. 15th Street #1212, Arlington, VA 22201 -- Sold on July 15th for $825,000.
  This condo at the Odyssey was reduced over $300K from the original asking price.  It was professionally decorated at a cost of over $100K and also has great views from the floor to ceiling windows in the 1635 square foot unit.
  
  
• 2121 Jamieson Avenue #1104-1105, Alexandria, VA 22314 -- Sold on July 9th for $790,000.
  1,745 square feet of space make this Carlyle Towers condo very spacious.  3 bedrroms and 2 baths plus add the 216 square foot glass enclosed balcony.
  

SEE AVAILABLE CONDOMINIUMS IN NORTHERN VIRGINIA 

Contact Brian Block, Managing Broker, REALTOR/Attorney, RE/MAX Allegiance: Licensed in Virginia & Washington D.C.  703-626-0715. If you are interested in purchasing or selling a property in Northern Virginia including Arlington County, Alexandria City, Annandale, Burke, D.C., Fairfax County, Falls Church City, Great Falls, Lorton, McLean, Springfield, Washington D.C., contact Brian today.

Gentlemen, start your engines!

My engine's revved up (and the A/C is working).  Is yours?

Contact Brian Block, Managing Broker, RE/MAX Allegiance, McLean:
Licensed in Virginia & Washington D.C.  703-626-0715.
If you are interested in purchasing or selling a property in Northern Virginia or Washington D.C.,
contact Brian today.

You finally build up the confidence to peer around the corner and mosey your way into his or her office -- your boss -- the head honcho.  You've been diligently working at your job for over 18 months and you think you've been doing a mighty fine job.  In your mind, it's time... time for a raise.  In fact, you probably should have asked for it 6 months ago.

Let's imagine how this conversation with your boss might go:

YOU:  Sir, I've been with the company for 18 months and have been working very hard and think that I deserve a raise.

BOSS:  Yes, you have been working here for a while, haven't you?

YOU:  I'm never late for the job and always finish my projects on time.  Certainly you've noticed.  How about a raise?

BOSS:  Well you know, we're in the midst of a recession and cutting costs.

YOU:  Didn't we get stimulus money?

BOSS:  Why no!  No government bailout here.  To be honest, you're lucky to still have a job.

YOU:  So, what about a raise... maybe just a small one.

BOSS:  Sorry not this year.

You sheepishly head back to your cubicle hoping that things will turn around.

Well, they just might, especially if you decide to relocate to the Washington D.C. area.  If you want a raise, D.C. is the best place in the country to get it.

According to a survey by WorldatWork published in the Washington Business Journal, D.C. is the No. 1 metro area for getting a raise.  Among the top 10 major metro areas in the country for getting a raise in 2009, D.C. has a planned salary increase of 2.3 percent for middle performers in 2009 and an impressive 77 percent of companies plan to award raises.

How many companies are giving raises where you live?

Ready to relocate to the Washington, D.C. area?