When we bought our first house, I couldn’t understand the long lead time between contract acceptance and the day of settlement. We were expecting our first child and I was anxious to get moving! Wow! What I know now that I didn’t know then! So much happens between contract and settlement.

The title company, or settlement company, coordinates all aspects of the closing. They order a title search to make sure the seller can deliver clear, marketable and insurable title to the property. If there are any title issues, they work to clear them up.

It is important to keep in mind that the title company selected (it is the buyer’s option in Virginia) is not representing the buyer or the seller – they are representing the contract to make sure that all aspects that have been agreed to are adhered to at settlement. Of course, the seller and the buyer have the option, in addition, of being represented by their own attorney.

The title company also receives lender-required documents and prepares them for the buyer’s signature, in addition to preparing the seller’s deed of conveyance, the instrument used to convey title to the new homeowner. Finally, the title company is also responsible for recording the new deed at the appropriate local jurisdiction, and if there is a seller loan involved, they ensure the payoff goes out to the seller’s lender in a timely manner.

Some final thoughts and tips:

– Be sure the date you put in your purchase offer is a date you can meet as the Virginia sales contract reads “settlement will occur on or before _____ with mutual consent.”

– Lastly, don’t expect the sellers to be at settlement at the same time as the buyers. Those days are largely over. Often, the sellers have already left the area and sign ahead of time. The point is, be prepared to get answers to any questions you may have for the sellers ahead of time. It may well be your only opportunity. It’s important to work with an experienced buyer’s agent who has good communication skills. Your agent will work with the listing side to garner specifics prior to settlement.

Martha Floyd is a licensed real estate agent in Virginia with McEnearney Associates Realtors® in McLean, VA and a Lifetime, Top Producer. If you would like more information on selling or buying in today’s complex market, contact Martha at 703.408.9478 or visit her website MarthaFloyd.com.

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If you’re a buyer now, or will be in the near future, you may be asking yourself, “do I really have to risk so much to win a home?” I challenge you instead think of it this way, “what strategies can I implement to reduce risk and position myself to win a home?” In our market of multiple offers, escalated costs, and the practice of waiving “everything,” it can feel like you, the buyer, are taking all the risk. However, the risk to you can shrink if you come in with a good, solid strategy.

Here are two contingencies that you can discuss with your Realtor about waiving and how best to flip the script on their risks.

Home Inspection Contingency

Writing an offer on a home is an exciting time, but the responsibilities of homeownership are real. As a potential new homeowner, it’s always important to know what you’re getting into when purchasing a new, unfamiliar home. There are ways to check on the health of the home on a regular tour, but an inspection will peel back certain layers that you can’t see or would otherwise miss.

Inspectors are the professionals and I liken them to the medical field. Home inspectors are like your generalist. They have mass amounts of knowledge about homes, can point out any red flags, and connect you to specialists to further diagnose any potential issues.

However, the market can be very competitive, so you’ll want to put your best foot forward on your offer. One way could be waiving a home inspection. Yet, that can feel uneasy to a lot of buyers. To eliminate this fear of the unknown, you can request to do a pre-offer inspection. This means having a home inspector out to the property prior to submitting your offer. A pre-offer inspection is usually no more than an hour and is performed between the time the home is active until the offer deadline, if there is one. While you do pay for this inspection prior to even writing your offer, like an ante in a poker game, it can save you so much money and headache down the road.

Your inspector won’t be able to check every window or every electrical socket. This pre-offer inspection is intended to focus on the high value items in a property: HVAC system, roof, electrical and structural, to name a few. Knowing the health of the most expensive parts of a home can help you make a more informed and confident decision about moving forward (or bailing) on your offer.

Appraisal Contingency

First off, we should define what an appraisal is in a real estate transaction. An appraisal is an unbiased, third-party opinion of value for a particular property and is performed by a licensed professional. An appraisal is always needed whenever a mortgage is involved in the transaction.

If you have a lender, you’ll have an appraisal. This appraised value is important because the lender is only going to approve a loan based on the lowest value between the contract and the appraised values. If the appraisal is lower than your contract price, then a contingency would protect you as a buyer and allow you to negotiate with the seller on how to cover the difference between the two values. If you waive this contingency, you, the buyer, would have to cover the difference. The higher the escalation, the higher the amount you may need to cover. It’s not a choice to take lightly.

Certainly, this is a discussion to have both with your Realtor and your lender. When figuring out what to offer for the home, your Realtor will do many things to assist you with this decision and one way is to run a Comparative Market Analysis (CMA). This CMA evaluates the market activity for similar properties in the same area, focusing on properties that have sold within the last 3-6 months. Relying on this data as well as current market conditions will assist you in deciding if waiving the appraisal contingency is right for you.

You should also speak with your lender and discuss your financial pros and cons. This lender should be someone that is working in the local market because they know the current market conditions and can speak about appraisals from real-time experience. By getting the full picture of the property-specific market and running pricing scenarios with your lender, you can make a more informed decision about whether waiving the appraisal contingency is right for you.

The finest strategies are usually those that were planned. You should be having these discussions with your Realtor prior to entering the market so you are prepared, ready, willing, and able to make the best (and quickest) decisions.

If you are looking to start your home search, please give me a call!

As a fifth generation Realtor and the granddaughter of an architect and builder, Sallie has deep roots in real estate. She is passionate for the charm, history, and architecture of Alexandria and its surrounding communities. If you would like more information on selling or buying in today’s complex market, contact Sallie today at 703-798-4666 or visit her website SallieSeiy.com.

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Realtors don’t judge, but we have seen everything . . . and we could write a book.

Tell-all books continue to be the rage, but the story you want to tell about the home you are going to sell or lease should be happy, not scandalous. Buyers or potential lessees should be delighted to see the space you are offering, not bombarded with unexpected situations.

Just this week I visited a lovely home to prep it for a spring sale. It offered an up-close look at the lingering impact of COVID donfinement. At the moment, this house takes real imagination to picture former bedrooms in their original state, littered as they are with ring lights, files, PCs, office chairs and more files.

Unwanted surprises can be the simple crunching of a Lego piece or ink pen under a boot, or shocking eyeballs out of their sockets with inappropriate “artwork” of unclothed subjects, animals mounted on the wall and framed political revolution flyers.

You would think that owners would put prescription drugs away, stash the cash and watches and hide their private correspondence, Social Security numbers and password lists.  Unfortunately, in many cases you’d be wrong. Also, often in plain view are too many personal photos, knickknacks and geegaws distracting the visitors.

And, if not just distracting, you can unintentionally create worries. Obviously broken items, all-too-fresh paint and sticky notes claiming “as-is,” “plumber coming back,” “mold test underway” or “pardon the mouse traps” can raise concerns about the level of maintenance the house has received during your ownership. Reading any detailed brochure copy will be helpful, but a now-startled buyer may offer thousands of dollars less than originally considered or simply walk away.

Corral the pets, too, because hyper-amorous dogs or slinky cats in need of attention can literally trip up buyers or tenants. If you leave the house, take the four-legged ones along. Slow-moving tortoises in a glass terrarium are just fine, but keep the other animal life out of the tour. Even a screeching macaw makes just too much noise and suddenly the rooms feel small, I know from experience.

Under construction? Just removed those steps to the basement? Forgot to put up yellow “caution” tape? A dear real estate friend took a step through an unmarked doorway and broke both of her arms when she suddenly landed on the basement floor below.

Remember The Shawshank Redemption. “Why?” Think twice before plastering a room with posters, even if it is your personal shrine to Justin Bieber or Raquel Welch, because people might think someone is either hiding wall imperfections or an escape tunnel.

Humans are a tricky commodity, as well. Tenants may not “get with the program.” Even after giving hours and sometimes days’ notice, my compatriots and I have walked in to find bodies in the shower, racked out in bed, cooking some odorous food or smoking cigars and more. Lordy, you’d be surprised what Realtors see!

Owners can be careless, too. Good grief, they agreed to the appointment. You’d think they’d move the ragged pile of magazines from the den, announce the wet deck stain, clean up dog “bombs” in the yard or throw some mosquito poison pellets in the stagnant fountain to shoo away the flying carnivores.

Discretion is always the by-word and the goal is to have happy buyers and tenants thrilled by what they see when entering your residence. Boring as it may be, creating appeal for all simply means neutrality, fresh paint, good lighting and no nudes.

Wish we could leave this tome with gentle reminders, such as “do not wax the wood steps” or “sweep acorns off the steep driveway,” since I will absolutely fall on my “duff” again, but I have a public service challenge here – to keep you out of the annals of real estate lore or the book I might write!

Ann Duff is a licensed real estate agent in VA, DC and MD with McEnearney Associates, Inc. in Old Town Alexandria, VA. If you would like more information on selling or buying in today’s complex market, contact Ann at 703-965.8700 or visit her website AnnDuff.com.

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Home Sellers are bombarded these days with offers to buy their homes, ways to renovate to get the highest offer, and how to obtain the absolute highest price. It can be confusing, even paralyzing — the answer is a resounding “it depends.”

As in most elements of life, there is a spectrum of possibilities here. Essentially there are three ways to sell a home — it doesn’t have to be perfect.

“As-is, where-is.” This is often when a property has not had many updates or upgrades along the way, and now there is a need to sell. There may not be the funds or desire to undertake any work, and a sense of just wanting to be done with it. This is what the folks sending the postcards are looking for — to purchase a property well under market and “flip” it. They will even take care of contents left behind.

As you would expect, this produces the lowest monetary result for the Sellers. Many of these Buyers are looking to purchase that property for 50-60% of “ARV” — After Renovated Value. Rarely a good deal for the Seller.

Fully Renovated at Top Market Condition. At the other end of the spectrum, the houses which receive the highest prices are the ones fully updated, with all the new and modern features that appeal to today’s Buyers. They are often exquisitely staged, and clearly at the top of their game.

It is one thing, however, to have continually updated one’s property and arrived at this top condition just as it is time to sell. It is another to think of enduring a big remodel just to sell: braving potentially lengthy disruptions, risking supply chain issues, and spending tens of thousands of dollars? Is it worth it? Maybe. Maybe not.

Today there are options to have the renovation work completed by companies who specialize in quick turn-around renovations just before a sale. Some will even front the cost and are paid when the house sells/settles. The McEnearney Advantage features a partnership with such a company, Curbio, and that type of renovation can absolutely be accomplished for a Seller. It works best when the house is empty, but it can also be done around residents. We are happy to help obtain estimates to see if it is right for you. Often, when the dust settles, you can reap very nice returns on the time and money spent. If it is the right approach for you.

In the middle of the spectrum: Clean, Fresh, Nothing Broken. In this approach, a home is decluttered or emptied (depending on whether it is occupied or not), then cleaned, painted, the flooring replaced/refinished, and any items fixed that are worn out or broken.

In many cases, the cost can be fronted and paid at settlement. This not only keeps the preparation time and cost down, it allows the Buyers to put some of their own personal touches into the house after settlement. This approach, in this market, usually yields a price a little below Fully Renovated.

In reality, most houses are prepared for market at a level somewhere between Clean, Fresh, Nothing Broken, and Fully Renovated. Perhaps a powder room near the entrance foyer gets a new pedestal sink, faucet, light and mirror. Or new light fixtures in the kitchen or primary bath. Or new appliances. These relatively minor items can be among the most cost-effective a Seller can undertake.

At McEnearney Associates we believe that preparation for the market, to the extent that works best for our clients, is one of the great values we add. And no, it doesn’t have to be perfect.

Pete Crouch is a Seniors Real Estate Specialist, which means he is well-versed in all aspects of moving as we age. His own downsize gave him tremendous insights into what is involved, from emotional matters to real estate considerations. Pete is a Board Member of At Home in Alexandria (AHA), our local Senior Village, and was the 2018 National Recipient of the “Outstanding Service Award” by the National Association of Realtors for his work with Senior Moves. Text 703-244-4024 or email PCrouch@McEnearney.com for a copy of his Downsize Alexandria! Booklet about living more simply in Greater Alexandria.

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