Category: Uncategorized

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“We plan to list in spring.”

Most people believe that selling their homes in spring (after March 21) is the best time. However, that is not real estate’s “spring” market.

Real Estate in no longer just regional, but national and even global. What happens in one area affects many others. Our properties in the Washington, D.C. Metro area are affected accordingly. Making decisions that affect one of your largest assets must be made with all of the best possible information. With this in mind, below are the five reasons to consider listing your property for sale now:

  1. We are not in last year’s market. There are no guarantees of unlimited buyers.
  2. The economy and corresponding interest rates are volatile.  
  3. In our decades of professional experience, the BEST time to sell is January, February, and March.
  4. Buyers have been planning their moves before the holidays and purchase after the holidays.
  5. Because most people count on the later market, the serious buyers have already made their decisions and purchased; leaving the inventory of listings to increase while the pool of buyers declines.

An example is from the post-2007 recession market: a client was being relocated to another state. They had to sell their home. We recommended listing it in February. After completing their presale activities, we put the house on the market in February. The first three groups who toured the house made competitive offers. Our clients made their move according to their best plans. Several months later, their neighbors listed their house for sale. Their house remained on the market for considerably longer than our clients’ property; selling with a single offer for slightly below my clients’ price.

In volatile markets such as this, delays can be costly.

If you are planning to sell your property this year, please contact us today so that we can help you make your best plans. Call or text us at 703-624-8333.

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Should You Invest in Real Estate? Shakespeare Did!

Shakespeare’s Birthplace in Startford upon Avon. When he inherited this property, he developed it
as “mixed use” – residential, commercial, and a pub.

William Shakespeare penned the famous words for his play, Hamlet, sometime between 1599 and 1601. He was already a successful poet and playwright because in May 1597, he purchased the 107-year-old “New Place” to be the home for his wife, Anne, their daughter Susanna, and twins, Hamnet and Judith. He was 33 years old when he purchased the enormous 20+ room house with five gables, two orchards, and two gardens.

Shakespeare purchased New Place, the second largest real estate holding in Stratford upon Avon

In 1601, Shakespeare inherited his parents’ house, his “birthplace.” He enhanced and added on to it and turned part of it into an income producing pub.

In 1602 he purchased 107 acres of land from which he received handsome rental returns. Stanley Wells, professor and editor of the Oxford Shakespeare, is quoted in an April 18, 2014 Financial Times article by Annie Maccoby Berglof, “He bought New Place; a lot of land in 1604; a cottage in Cottage Lane. For much of his life, he was investing in property,”

In Shakespeare’s society, using “other people’s money” was well accepted. He used a mortgage with which to buy the Blackfriars Gate House in 1613.

In addition to being a savvy real estate investor, Shakespeare invested in other profitable ventures as well as in his performance and theater companies.

To recap, for most of his professional life, Shakespeare invested and acquired real estate. He made his initial capital from acting and writing plays. Then he diversified.

“Money buys lands, and wives are sold by fate.” Merry Wives of Windsor, Act V Scene 5


Why does this matter and how does this translate to our lives today?

Mark Twain and/or Will Rogers are credited for saying, “Buy land. They are not making any more of it.”

Did you know that more than 90% of today’s wealthiest people made their fortunes in real estate?

You can enjoy tremendous benefits by investing in real estate –

  1. Appreciation
  2. Favorable tax treatment
  3. Leverage
  4. Borrow more through refinance
  5. Others repay your principle
  6. Income
  7. Land always has value

There is nothing new under the sun in 425 years!  Should you consider diversifying and adding real estate to your portfolio?

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Dear Friends:

This is a message written just for you because we care about your future and your economic welfare.

As most of you know, I am not a spring chicken and I have been a student of real estate markets since 1963 (no, I’m not that old, but that experienced). Markets have come and gone and for the most part, my clients who worked with me have done well regardless of market conditions. For better or worse, based on the data that I use (not from biased associations or the media), I have been able to accurately anticipate the 1989 and 2006/7 market declines and the 1996 and 2013 market recoveries.

The recent world events have opened a Pandora’s box of potential economic fallout. Your real estate is a major part of your economic portfolio. To put this matter in perspective, prior economic downturns were national with some international repercussions. Today’s situation is global.

What does this mean for your real estate?

  1. Today IS 2007 (the peak of that market). Property values might be at their peak.
  2. There are over 2 million mortgages in forbearance now.
  3. If you have been thinking about selling your property THIS might be your best opportunity – why?
    • There is a scarcity of inventory (available properties),
    • Interest rates are very low,
    • Buyers still want to buy,
    • Many agents lack the experience to anticipate economic events with which to advice their buyers,
    • Putting your sale proceeds in the bank (or wherever you like to put it) puts you in a brilliant cash position. Why is that a good thing?
      • If, as I expect, property prices decline, you will buy much more for less, and
      • You will be helping a seller get out of trouble.

We cannot predict the future but can use past experience as an indicator.

The point of this message – If you are thinking of moving up,  down, or around – now might be your best opportunity.

If you want to discuss this matter in greater depth, please reach out to me.

Wishing you good health, prosperity, and a minimum of inconvenience.

Krasi

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Have you decided that 2020 will be the year that you upgrade or change your residence?

If you are like most people, you plan to put your house on the market in the “spring.” Spring begins on March 19 this year. This makes sense since winter weather is unpredictable. Who would looks at houses in bad weather?

Because I have been actively involved in the Metro real estate market since 1986,  a curious phenomenon takes place in the winter – houses sell, quickly. In fact, inventory that had not sold the prior summer and autumn sell in January and February. along with the new listings. Another interesting observation is that houses that listed for sale in April and onward, took longer to sell.

Since properties sell in January, February, and March,  this also means that some of the best properties will also sell before “spring.”

While this might seem soon, if you are serious about your new home, sooner will be in your best interest.

We are prepared to help you have a great real estate experience.  The first step – give us a call and let’s discuss your hopes and plans.

 

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FHA

For many people condominium ownership is the gateway to real estate ownership. Stringent FHA guidelines have hampered many people from being able to purchase a home. The much awaited revised guidelines provide enhanced flexibility in three key aspects as follow:

  • FHA certifications on condo developments will be extended from two years to three years, reducing the compliance burden on condo boards.
  • Allow for single-unit mortgage approvals—often known as “spot approvals”—which will enable FHA insurance of individual condo units, even if the entire property does not have FHA approval.
  • Secure additional flexibility in the ratio of investors to owner-occupants allowed for FHA financing in a condo building. This will help both new buyers and owners of existing condos.

The new guidelines will provide flexibilities for buyers and sellers to be able to increase homeownership to more people. Additionally, more units will be available for buyers to choose from, thus widening the real estate inventory opportunities.

Have you been priced out of the market or been unable to find and eligible condo to buy? With newly reduced interest rates and more flexible guidelines, NOW is your time! CAll TODAY 703-624-8333 or visit our website – http://www.POTPHOMES.com and contact the agent of your choice directly.

The full rule for single-family condo financing was published in the Federal Register on Aug. 15, 2019, and available online at https://federalregister.gov/d/2019-17213, and on govinfo.gov.

 

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interst rate graphic

As expected, and going against the wishes of some, the Fed increased policy rates by a quarter percent at their December meeting. This is the fourth hike this year and the ninth since 2015. Previously, the benchmark rate was kept at a record low for seven years.
What does an increase mean?

• It could cause banks to increase their “prime rates,” which are often used to calculate interest on consumer products like credit cards, private student loans, and home equity lines of credit (HELOCs). Adjustable Rate Mortgages (ARMs) may be directly impacted as well.

• Fixed mortgages are typically based on long-term rates, which are not directly affected by Fed rate changes. However, Fed policy does influence mortgage rates, which can rise in anticipation of future Fed action. There are exceptions, yet home loan rates will typically follow overall interest rate trends over time.


Here’s something new:

Officials initially projected three additional Fed rate hikes for 2019, but that number dropped to two. Fed members say they will continue monitoring economic data to make future decisions.

In this volatile economic season, please reach out to us to discuss how all of this might affect your real estate decisions.

NOTE:  this article was graciously shared by Mark Ferguson, Senior Loan Officer, MVB Mortgage.

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Amazon Effect

 

Amazon recently announced their selection of Crystal City – Arlington, VA as the future home of one of their two additional headquarters. The news was met with delight and trepidation by the Northern Virginia and general Metro community.

Homeowners, naturally, had visions of dollar bills dancing through their heads as they anticipated accelerated appreciation of their homes. Commuters  feared traffic congestion beyond present levels. Developers envisioned windfall profits.

Increased employment, greater appreciation, and profits, oh my!

A few facts (as presented by NVAR and their panel of experts during their December 12 presentation on the “Amazon Effect” at George Mason Business):

  • Amazon HQ2 will be located in Crystal City which is part of South Arlington. That areas has been renamed, National Landing.
  • The HQ2 timeframe will be 16 years to complete the process.
  • 25,000 employees (will be really 38,000 jobs) are expected.
  • 75% of the effect will be “inside the Beltway.”
  • The Washington, D.C. area is larger and denser than Seattle.
  • The absorption rate is expected to be about 1% per year over the 16 years.
  • The biggest bump in real estate values came to the Arlington area in early fall 2018.
  • The arrival of Amazon does not increase the housing demand significantly over time.
  • The residential markets with greatest impact will be Arlington and Alexandria.
  • The average Amazon employee income is expected to be approximately $150,000
  • The employees will flock to the best schools.
  • The Amazon Effect will not only impact residential, but commercial properties, as well,
  • Existing real estate problems of supply and affordability will remain.

The six experts all warned to guard against the “hype wave” and to be strategic.

The KEY: this will be a 16 year project, which according to the experts, will be absorbed within ordinary area growth.

The question asked almost daily, “How will this event impact our real estate value?” is best answered by, “The impact happened at the anticipation phase.”