Buy Alexandria Real Estate: September 2010

The other week I attended the 14th Annual Economic Summit hosted by the Northern Virginia Association of REALTORS.  Before attending the Summit, I posted Get Ready for Some Economic Predictions (Prognostications) This Week!  I had meant to update you with some of the information from the Summit that week, but was getting ready for and then left for vacation.

Here's a few soundbites from the Summit which discussed the Northern Virginia regional economy and housing market:

"Nationally, 25% of FHA loans have family gift money involved.  In Northern Virginia, only 15%"

"Over 40% of people who go into foreclosure have never called their lender to discuss their situation!"

"The annual job change in the D.C. metro area was postive 41,800 from July 2009 to July 2010!"

"Northern Virginia job growth from July 2009 to July 2010 was 22,700 jobs"

"The D.C. area has had 12 straight months of a positive direction of leading economic indicators"

Here for your review is Dr. Stephen Fuller's slides from his presentation at the Economic Summit.  Dr. Fuller is the Director of the Center for Regional Analysis at George Mason University:

Recently I got contacted and asked for permission to have our Virginia real estate blog reviewed.  About a week later, an e-mail came announcing that the "blog review was live!"  It's always great to get recognition, but the really special thing is that the review writer read many of my posts and really captured the essence of the blog that I've been writing as an information resource for buyers and sellers in Northern Virginia for more than 3.5 years.

Not only did he give us a Five Star review, but some of his comments showed a deep appreciation for the personality and depth of our blog.

Here's the review from Lender411 in its entirety below.  You can see the review online at it source: Review of blog.brianblock.com.

Blog Review for blog.brianblock.com

Reviewed by Kyle Chezum

09/21/10

Brian Block, Esq., is a Realtor who works in and around the Northern Virginia and Washington D.C. areas.  He operates a blog that provides local real estate news and information as well as advice and other resources to potential homebuyers.  Subjects range from financial predictions to the usability of the Washington D.C. metro system.  The blog also chronicles many of Brian's own ideas and thoughts on real estate and the economic situation at large.

He provides frequent real estate market updates that include graphs and other visual data, making the blog highly readable and easy to understand.  But the information is not simplistic.  Brian goes into great detail on most everything he covers, especially when it comes to numbers and economic analysis.

Brian writes with a unique and flavorful style.  It's honestly fun to read his posts.  He writes with wit and finds a way to keep his subject matter interesting.  In a recent post, he outlined the results of a seller failing to abide by the exact wording of a purchase contract, and how this failure resulted in yellowjacket nests all over a house when the buyer showed up.  That will catch your attention.

Here's an example of how he begins one of his recent posts.  "The First Law of Economists: For every economist, there exists an equal and opposite economist.  The Second Law of Economists: They're both wrong!"  This is good stuff!  Imagine getting your monthly real estate updates in a similar style.  Brian has a knack for making even the simplest subjects interesting.

If you're interested in learning about local real estate market conditions or have questions about homebuying in the Virginia-Washington D.C. area, Brian is far and away the guy to get advice from.  He's knowledgeable, qualified, and conveys a sense of credibility and trust.

We're impressed with Brian's blog.  Read it and learn over at blog.brianblock.com. 

How many homes do you have to see?  How many homes do you want to see?

When it comes to the home buying process, going out and looking at homes is probably the most fun and exciting part for most homebuyers.  You get to explore the neighborhoods, check out the amenities, compare kitchens, bathrooms, and closet sizes.  If you have children, they get to run around the main level and tell you which bedroom they want.  You'll enjoy visually placing your furniture and your 52" television.

All of that is a lot more fun than going over the fine details and language in the sales contract.  Certainly more enjoyable than the home inspection or appraisal.  And a heck of a lot more fun than filling out your mortgage application and getting your W-2s and paystubs to your lender!

An agent in my office recently told me that she has shown "200 to 300 homes" to some buyers.  I stared at her in disbelief thinking that I misheard her.  She repeated "I've been working with them for 2 years and have shown them 200-300 homes!"  Well, I guess when you've seen that many homes, it can be easy to lose track of a hundred...

So, how many homes do you have to see in your Northern Virginia home search? 

While 200 to 300 is an extreme case, what's an appropriate amount of homes?  Is 5 or 6 homes enough?  Is 100 too many?  What about 50 or 60?  Or somewhere in between?

My clients often ask me how many homes they'll have to see.  That reminds me of something my high school freshman English teacher told us.  Students would ask how long an essay would need to be and Mr. Lynch would reply, "When Abraham Lincoln was asked how long a man's legs should be, he replied 'long enough to reach the ground!"  Twenty three years later, I'm not sure I know exactly what that means, but I think I've got an idea...

Here's my experience with helping clients find homes in Northern Virginia over the last decade:

One time -- just one time -- I had a client look at just one house, fall in love with it, and buy it.  That was pretty cool.

A second time, I had clients look at 2 houses.  They liked them both, made an offer on one and bought it.  That worked out pretty well too.

I've had clients look at 30 to 40 homes.  I've had clients look at 5-10 homes, and just about everywhere in between.  I'd say on average my Northern Virginia homebuying clients look at between 10-15 houses in their home search.  People who know exactly which neighborhood they desire sometimes look at less, while people relocating to the D.C. area and not familiar with the market often look at more (since they don't know the difference between Arlington, Alexandria, Falls Church, and McLean).  However, I've never had anyone look at 200 to 300!

These days with searching for homes on the internet, viewing photos and virtual tours, you can rule out many homes and neighborhoods without physically going there, thus narrowing down the search.

Remember that while visiting homes may be the most fun part of the process, you don't want to do it forever. 

The ultimate goal is to find the home that's right for you -- not to see every home that's on the market! 

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 August 2010.  All information was obtained through MRIS.

Overall, there were 82 Northern Virginia home sales topping $1 million during August 2010, a significant decrease from the 105 that sold in July 2010.  August is typically a slower period for real estate sales in every price range.

Currently, there are 745 homes on the market in Northern Virginia with list prices topping $1 million.

August 2010'S MOST EXPENSIVE SALES

Single Family Detached Homes:

• 7301 Dulany Drive, McLean, VA 22101 -- Sold on August 12th for $4,335,000
  7,300+ square foot home, 2+ acres in McLean, 20 foot by 50 foot heated pool, top of the line appliances.  What more could you want?  It also has 5 bedrooms, a carriage house with a full bath, and a flagstone patio.
  
  
• 7681 Ballestrade Court, McLean, VA 22102 -- Sold on August 3rd for $4,000,000
  This 13,000 square foot gated residence in The Reserve in McLean sits on just over an acre.  The 2 story center hall rotunda houses a sweeping staircase.  6 bedrooms, 6 full and 3 half bathrooms, plus a 3 car garage.
  
  
• 1026 Founders Ridge Lane, McLean, VA 22102 -- Sold on August 23rd for $3,450,000
  Also in The Reserve, this custom stone and stucco manor features custom marble, crystal chandeliers and sconces, 3 fireplaces, and a top of the line kitchen.  There's a theater room and exercise room too!
  
  
• 1203 Daviswood Drive, McLean, VA 22102 -- Sold on August 23rd for $2,650,000
  Located in Woodlea Mill, another posh McLean neighborhood, this home overlooks a pond and has 3 finished levels, elegant curvest stairs, a gourmet kitchen with floor to ceiling cabinets.  The home also has an elevator and is an AMX Smarthouse!
  
  
• 770 Strawfield Lane, Great Falls, VA 22066 -- Sold on August 27th for $2,250,000
  Minutes away from Great Falls Village, this 6 bedroom home on 2 acres has a media room and exercise room on the  lower level.  Overall there's 8,079 square feet of luxury living space.

CLICK TO SEARCH FOR AVAILABLE SINGLE FAMILY HOMES IN NORTHERN VIRGINIA 

Townhouses: 

• 415 Prince Street, Alexandria, VA 22314 -- Sold on August 23rd for $2,850,000
  Located in the heart of Old Town Alexandria, this 1806 townhouse has been magnificently restored.  It has 5 levels with 3 bedrooms, 3 full bathrooms and 2 half bathrooms and a total of 5,392 square feet of conveniently located space.  Oh, and there's 8 fireplaces!
  
  
• 116 S. Lee Street, Alexandria, VA 22314 -- Sold on August 26th for $1,700,000
  This townhouse was built in 1790!  It has been fully renovated with new HVAC, electric, and plumbing.  There are 55 fireplaces, a walled garden with a pond, rooftop deck, and garage parking. Wow!
  
  
• 1404 Harvest Crossing Drive, McLean, VA 22101 -- Sold on August 13th for $1,360,000
  Located in Evans Farm of McLean, this almost 4000 square foot townhouse has 4 bedrooms, and 4.5 bathrooms on 4 levels.
  
  
• 1492 Teague Drive, McLean, VA 22101 -- Sold on August 13th for $1,325,000
  Another Evans Farm winner.  This townhouse features hardwoods, a chef's kitchen luxury master suite with tray ceiling and two walk-in closets.  The fully finished basement includes a media room, office, and storage.
  
  
• 230 N. Union Street, Alexandria, VA 22314 -- Sold on August 5th for $1,025,000
  This 3 level brick townhouse on Queens Row in Old Town Alexandria features views of the Potomac River.  There are 2 off street parking spaces behind the home which was built in 1998.  There's 2,472 square feet of space inside.

SEARCH AVAILABLE TOWNHOUSES IN NORTHERN VIRGINIA

Condominiums: 

• 1111 N. 19th Street #2904, Arlington, VA 22209 -- Sold on August 31st for $1,990,000
  This Waterview Residences 3 bedroom condo is a luxury penthouse above the Hotel Palomar in Rossyln with great views of the Potomac River and Georgetown.  With floor to ceiling windows, marble bathrooms, and a $1600 condo fee, this condo tops the list for August.
  
  
  
• 1201 N. Nash Street #103, Arlington, VA 22209 -- Sold on August 3rd for $950,000
  Featuring over 2000 square feet of space, this Memorial Overlook 2 bedroom 2 bathroom condo features state of the art touch lighting, sound and video systems.  There's garage parking for 3 cars.
  
  
• 2001 N. 15th Street #1505, Arlington, VA 22201 -- Sold on August 6th for $860,000
  Built in 2006, this condo at the Odyssey in Arlington features panoramic D.C. views from every room on the 15th floor.  The building is just two blocks from the metro and this unit has 1,396 square feet of space.
  
  
• 11990 Market Street #202, Reston, VA 20190 -- Sold on August 24th for $825,000
  Located at the Midtown at Reston, this 3 bedroom, 3 bathroom condo sold for just slightly under the listing price of $839,000.  There's over 2100 square feet of space in this unit.

SEARCH AVAILABLE CONDOMINIUMS IN NORTHERN VIRGINIA 

The #1 Rule of Real Estate is Location, Location, Location.

A Close Second is: READ THE (insert favorite expletive) CONTRACT!

The real estate contract is the beginning and end, the authority, and the document with the most importance in any real estate transaction.  You've heard it said that "an oral contract is worth the paper that it's printed on!" 

In Virginia, there's a clause in our Regional Sales Contract that states that "All contracts for the sale of real property must be in writing to be enforecable.  Upon ratification and Delivery, this Contract becomes a legally binding agreement.  Any changes to this Contract must be made in writing for such changes to be enforceable."

In other words, if you want it to be part of the deal, you'd better write it down.  Moreover, when it's been written, you should

READ THAT TO WHICH YOU AGREED

Case in point:  The following is just a small example of the necessity of reading the contract.  This past Friday my clients closed upon the purchase of their beautiful home in Falls Church, Virginia.  Among other things, one of the agreed upon repairs from the inspection item list was that "the yellowjacket nests" were to "be treated by a professional exterminator." 

While the seller graciously had agreed to a long list of inspection item repairs, my buyer clients learned a day or two before settlement, that the seller tried to treat the yellowjacket nests on his own, using a spray can of Ortho.  This was not acceptable to my clients nor was it in compliance with the written words in the contract which clearly stated that the problem was to be treated by "a professional exterminator."

I reminded the listing agent of this agreed-upon language, and fortunately the seller hired a professional, remedied the problem, and we were able to settle.

Just goes to show that every word is important in a contract. 

Read it.  Read it.  Read it.

Do you know the laws of Economists?

The First Law of Economists: For every economist, there exists an equal and opposite economist.
The Second Law of Economists: They're both wrong!

It's always interesting to listen to an economist talk.  Economists can either make you feel really upbeat or make you feel like you should head to the nearest watering hole, remove your REALTOR name badge, tear up your business cards and drink yourself silly.  For the latter effect, go see Nouriel Roubini (AKA Dr. Doom) speak (which I did in January 2008 in NYC where he predicted the subprime collapse and the recession out of which we still have not managed to break free from yet!)

Every year, for the past 13 years, the Northern Virginia Association of REALTORS (NVAR) has hosted the Annual Economic Summit, bringing together regional and national economists to detail the state of the national and regional economy and discuss the economy's impact on the Northern Virginia and Greater Washington D.C. real estate market.  I wrote about last year's summit here: The Prognostication of the Economists.

Looking back and reviewing the outlook from last year, the economists were right about a good number of things.  While they were a bit light on making predictions (and rather described the then current state of affairs), those predictions that they did make were pretty accurate.

Every year, the NVAR Annual Economic Summit is a DON'T MISS EVENT.

And this year, it's even better.  For members of NVAR, the cost is FREE!  Usually the Summit costs around $35-$40, but this year the NVAR Board of Directors (I'm currently running to be on the Board for next year) voted to provide free attendance as its own form of "economic stimulus"

So, Northern Virginia REALTORS: Head on over to the NVAR Economic Summit this Thursday for a chance to hear the predictions and prognostications from:

• Dr. Stephen Fuller, Director, Center for Regional Analysis, School of Public Policy
  George Mason University, Fairfax, Virginia
  

• John A. Courson, President and Chief Executive Officer, Mortgage Bankers Association

• Dr. Charles Capone, Chief Economist, FHA, Director, FHA Office of Risk Assessment

• Gerard N. "Jerry" Giovaniello, Chief Lobbyist, National Association of Realtors®, Senior Vice President, Government Affairs

Check back here at the end of the week for a full report on the event.

Click here to register for the NVAR Economic Summit -- even though it's free, you still have to register.

Also, if you're a Northern Virginia REALTOR, please vote in the NVAR Election for Board of Directors.

You can follow my campaign at Vote for Brian Block

You keep hearing that interest rates are low.  You've been told week after week that interest rates have hit historic lows.  That's great.  Ho Hum.

Here's a chart showing just how low interest rates on 30 year fixed rate mortgages have dropped this year:

That chart is awfully pretty and you can certainly see that the trend has been down down down over the last 5 months.

But... you ask yourself, "What does this really mean?"

Ah, my friends, that's where this next, very important chart comes in:

So, here's the great news:  On a loan for $450,000 (about the average in Northern Virginia for a single family home), you're going to save almost $500 per month compared to buying that same priced home in 2003!

What are you waiting for?  Start your search for a Northern Virginia home today!

If you're not in the market to buy, but thinking about refinancing, let me know and I can put you in contact with a great mortgage lender who can help you out.