Tag: home value

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The facts indicate that there is a market shift in progress. Higher interest rates with minimal inventory is spurring some sellers to remain aggressive when pricing their homes for sale. Last year at this time, some listings were selling for as much as 33% over their list prices. However, interest rates were in the low 3% range. In the end, it is about what buyers can afford to pay in a monthly payment.

The active homes (for sale) inventory across our region is at historic lows. The current Washington, D.C. Metro inventory is between a 30-60 day (depending on location) supply based on last week’s contract activities.

My market analysis disclosed that the active to under contract prices show a dramatic price disparity of 15% to 60% (location based) higher than the average prices of the properties that went under contract. Accordingly, the average days on the market for the active properties is also 33-57 days longer (about 66%) than the under contract properties.

In our recently wild market, it was impossible to underprice a property because it would get bid up to above its market value. Therefore, the real estate agent’s role was that of order taker and contract dissector. That condition has now changed. Now, the experienced, knowledgeable agent will analyze the market’s activity, study recent comparable sales, and recommend the best pricing for your property to get is sold as quickly as possible because that is when the optimal price will be received.

Under today’s changing circumstances, we often hear, “If they don’t like our price, they can make us an offer.” The reality is that they will not make an offer and will buy another property that they deem better priced. Buyers do not want to get too creative or too aggressive. They do not want to enter into negotiations that could end badly while losing better opportunities.

In any market, an overpriced property will languish. In fact, not only will the property languish, but it will ultimately sell for below market value. The chart below shows how the initial price affects the sales price. You can see the importance of pricing the property correctly from the outset.

If a property is overpriced by five percent, it is not unusual to have a final sales price of 3%-5% below actual market value. Why give up value on the gamble that a buyer will overpay in today’s market?

In our industry, the saying goes, “The first offer is usually the best offer.” The first offer typically comes in quickly with a good price and strong terms. Missing out on that first offer will diminish the seller’s ultimate return.

How is market value determined? The skilled, experienced, and knowledgeable real estate agent knows their market, their buyers’ expectations, and is well connected with the top agents in the area. Their wealth of knowledge and experience will help you make the correct pricing decision.

The bottom line: properties that are priced in line with buyer affordability are selling quickly. Properties pushing prices beyond market values are staying on the market.

Are prices falling? No. Many homes are being priced incorrectly and need reductions to bring them in line with actual market values.

If you are thinking about selling your property this year, do yourself a favor and call one of our exceptional agents for a market analysis at 703-624-8333. You will know that the price you set on your property will be competitive, thus bringing you the best returns.

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As an extreme analytical, I like to research things to death, ruminate on the findings, ruminate some more, and then maybe–just maybe–make a decision. So when a client mentioned to me that they had decided to install solar panels on their roof, I was intrigued…and then I went down a rabbit hole.

For six solid months, I researched, interviewed solar companies, evaluated cost versus benefit, researched some more, discussed ad nauseum with my husband, and then finally made the decision to install solar panels on my roof.

Obviously, I decided that the pros of installing solar panels outweighed the cons for me. But is it the right decision for you? Let my research and rumination benefit you—below are the pros and cons of installing solar panels:

Pros:

  1. The most obvious: solar reduces your electric bill. Not only can solar offset your electric usage, but you could also be eligible for net metering, an electric billing tool that sends the excess power your panels produce back to the electric grid. If in a day your solar panels produce 20kWs and your home only uses 15kWs, 5kWs get sent back to the grid and offset your electric bill.
  2. Your potential monetary savings will increase over time as electricity continues to increase in price year over year.
  3. You should be eligible for federal tax credits, if you own your system. Currently the Federal Solar Tax credit is 30% of the cost for installation (until 2032). So, if your system costs $30,000, you could be eligible for a $9,000 tax credit, thus lowing the net cost of the system to $21,000. Obviously, consult with your tax professional to make sure it works for you.
  4. You also could potentially sell SRECs, or Solar Renewable Energy Credits. SRECs are created for each megawatt-hour of electricity generated from the solar energy system. Some states have created SREC markets to boost solar installations by requiring electricity suppliers (Pepco, BG&E, etc.) to purchase SRECs produced by in-state solar energy systems as part of their obligation under the state’s Renewable Portfolio Standard (RPS). In our area, the District of Columbia and Maryland offer SREC programs. The value of the SRECs can vary state by state and month by month. DC has one of the more robust SREC markets.
  5. Solar panels are low maintenance. You don’t really need to do anything to the panels other than keep debris off of them.
  6. Solar will decrease your dependence on non-renewable resources. Because saving the planet is always a pro.

And the Cons:

  1. The up-front cost can be cost prohibitive. It can cost between $2,750-$4,000 per kW system, so if you have a 10kW system the range should be $27,500-$40,000. Obviously this is a lot of money up-front and it can take years to recoup the cost.
  2. Some HOAs may not allow them or restrict where they can be placed on your home.
  3. If you live in a wooded area or in the shadow of larger buildings, you won’t be able to reap the maximum benefits.
  4. If you don’t own your roof (common element of a condo/co-op), you likely won’t be able to install solar panels.
  5. The overall aesthetic. Let’s be honest: they aren’t the most aesthetically pleasing part of a house.

I have not regretted my decision to install solar panels for one minute. Since doing so, my husband and I have been able to take advantage of the tax credit, we’ve been able to sell our SREC credits (we live in DC), and our electric bills have reduced significantly (we’ve even had negative balances some months). And the most fun part is logging into the app to see how much energy we’re producing.

If you are thinking of adding solar to your home, give us a call at 703-624-8333. Properties on the Potomac would be happy to talk you through the process and make recommendations.

Here are some additional solar resources.

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“My house is the red brick one . . .”

Red brick is distinctive. It has commanded attention over the centuries and does not disappoint today. The Victorian red brick house dates back to the 1870s and was typically a sign of wealth among homeowners, as yellow bricks were far less expensive.

The Empire State building, completed in 1931, is faced with 10 million red bricks. At the time of its opening, it was the tallest building in the world. Why the choice of red brick instead of some other color?

All bricks are not alike. Bricks are classified by color, class, size, and purpose of use. The bricks used to face residences are typically “First Class Bricks.” These bricks are thoroughly burnt, and are copper, dark red, or cherry in color. The bricks should be free of cracks, flaws, or stones. Their texture must be uniform and not be able to be scratched or dented by a fingernail. When two bricks are struck together, they should have a metallic ring. They should not absorb water and lime must not be visible in a brick fracture.

Bricks are made of clay and earthen components. The clay or material used affects the color and class of the bricks. Additionally, the length of time of “firing” affects the color. Extra burning makes a browner brick. Red bricks have to be made “just right” to optimize color and important features.

Because of the careful process needed to create the red bricks, the cost increases accordingly. Lighter colored bricks will have sand or even cement in their mix. Sand based bricks are more porous, thus less water resistant. Those bricks require sealing to remediate water absorption. There was a building in Washington, D.C. constructed with a very attractive red brick façade. Its sides and back were covered with yellow brick. If heavy rains hit from a particular direction, the interior walls of that building became damp. The walls behind the red bricks of the façade remained dry.

In short: the color of brick chosen for a home makes a statement. With today’s technology in brick manufacturing, more colors are available that qualify as first class. And while red brick may no longer be considered prestigious, a red brick house typically sells faster (subject to many other criteria) than a lighter colored brick, or homes clad in other materials.

Looking for your perfect red brick home? Call or text us at 703-624-8333.

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The houses may look the same. The lots may all be the same size. In some communities, there may not be a lot differentiating one house from the next, at least not externally. But living on a cul-de-sac is different. A cul-de-sac adds value. And when it comes time to sell, houses in a cul-de-sac have the upper hand over their non-cul-de-sac neighbors. Here’s why:

  1. Instant community
    For a new buyer, living on a cul-de-sac means it might be easier to get to know your neighbors. It is often easier to share a refreshment, make introductions, and, maybe, find common ground.
  2. Security
    Quite literally, being at the end of the road makes it difficult for cars to speed past your home. It’s safer to walk and to congregate outside. Children can play, ride their bikes, skate, or play ball, while the windows of 3-4 homes overlook the area.
  3. Social activity
    On warm summer evenings, it is not unusual to see neighbors enjoying a beverage together on the cul-de-sac where children have played most of the day. It is a great place to invite children and adults alike to get away from screens and get some fresh air and human interaction.
  4. Relaxing environment
    Without having cars driving past your front yard, the noise and level of activity is greatly diminished. Relaxation comes with an absence of movement and noise. Yes, children might laugh and shout, but these are the happy sounds of life – not the road noise and speed of business life.
  5. It is a throwback to earlier times of children playing outdoors
    The cul-de-sac is where children of all ages can play together. It is heartwarming to see the older kids teaching the younger ones to shoot a basket in a hoop or to learn to ride a bicycle. It frees up parents to relax without managing children’s every activity. It stimulates sociability and friendship and expands energy for a good night’s sleep. “It is one of the last remaining ways to give children an old-fashioned childhood,” says Patricia Shannon of Southern Living magazine.

While there are exceptions to all of these, my 37 years of serving clients has proven that cul-de-sacs are a great place for building friendships, relaxing, and hours of safe play for children. Historically, homes on cul-de-sacs command higher resale values. Why? Limited supply with greater demand (as listed above) boost value. The cul-de-sac is a special place.

Is a new home on your list for this year? We know where the cul-de-sacs are. Call or text us at 703-624-8333 to help you find the perfect setting.