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Is There Evidence of a Flight to the Suburbs as a Result of COVID?
1849 Kalorama Rd NW, Washington, DC | Keith Milne
Ripple, Wave or Tsunami – Part II
By David Howell, Chief Information Officer, McEnearney Associates
In September we took our first look at comprehensive data to see whether there is evidence of “a flight to the suburbs” in the wake of COVID-19, wondering whether urban dwellers were seeking more elbow room and retreating from more dense living conditions. Two months ago, we said that any movement looked more like a ripple or a wave, and most certainly not a tsunami. With the passage of time and more data to examine, we’re seeing a ripple at best.
If significant movement were to occur, it would first appear in the market for condos and co-ops in Washington, DC. We took a look at the performance of that market from May 1 (when shutdown orders began to be lifted) through the end of October of this year and compared it to the same time last year. We also compared the condo/co-op market to attached and detached homes in DC to provide some additional context. Here’s what we found:
- There was actually a 20% increase in the number of newly ratified contracts on condos and co-ops. That’s actually better than attached homes (up 17%) and detached homes (up 11%).
- Most other key metrics – the average number of days on the market, sales price to list price ratio, and the percentage of homes with a price change before receiving a contract – very closely mirrored that of last year.
But that doesn’t mean there haven’t been changes in the market. The biggest shift has been in the types of condos and co-ops being purchased, and in the inventory of units on the market.
- The number of studio units – no bedrooms – going under contract fell by 15%, and the average inventory doubled.
- One-bedroom unit contracts rose by 8%, and inventory rose by 30%.
- Two-bedroom unit contracts rose by 30%, and inventory rose by 30% as well.
- The largest shift was seen in the biggest units – those with 3 bedrooms or more. Contract activity was up 42% while average inventory was up only 6%.
What does this mean? In general, the market for smaller units is softer, as demand has remained relatively flat while inventory has climbed. This suggests that more unit owners would like to leave behind those smaller units – and that means that prices are softer as well. This may also suggest that at this end of the market COVID has negatively impacted employment, so there are fewer buyers. The market for 2-bedroom units has changed with the increase in demand, but there has also been an equivalent increase in inventory, so the overall relationship between supply and demand is really unchanged. Yet the market for 3-bedroom and larger units (only about 13% of the overall condo market) is actually stronger than last year, with modest upward pressure on prices.
And to provide some additional context, while inventory of condos and co-ops is considerably higher than last year, the reverse is true for attached and detached homes in DC. The average month-end inventory of attached homes is down 40%. And since contract activity is up 17%, there is considerable upward price pressure as more buyers are competing for much thinner inventory. The same is true for detached homes in DC. Average inventory is down 54%, and with an 11% increase in the number of buyers, prices are climbing.
The softer condo market combined with a much stronger market for attached and detached homes in DC does suggest a modest shift in the most urban of the markets in the metro area to buyers looking for larger quarters, but there is no evidence of a big rush to the suburbs.
Check back with us soon for a similar look at the numbers in suburban Maryland and Northern Virginia.
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Has COVID Changed Real Estate Consumer Behavior in the DC Metro Area?
Ripple, Wave or Tsunami – Part I
By David Howell, Chief Information Officer, McEnearney Associates
There has been much national conversation that the COVID-19 pandemic has caused a “flight to the suburbs” as urban dwellers seek more elbow room. Has that happened in the metro Washington, DC market?
The region began to shut down in mid-March of this year, so we examined new contract activity from March 15 through the end of July for 2020 and compared that to the average activity of the same four-and-a-half-month time period for 2017-2019. As the chart indicates, there is no question that the outer suburban markets have fared better than Washington, DC and the close-in suburbs. Washington, DC contract activity is down a little over 9.2%, and Arlington is off over 20%, while Loudoun and Prince William Counties are only off between 3% and 4%. And in those areas most impacted by COVID, the condo market has been hit even harder. But there is nothing in these numbers to suggest that consumers are fleeing the city in droves. It’s not a tsunami – it’s somewhere between a ripple and a wave.
The impact of COVID has also been felt disproportionately at the lower end of the price spectrum. Job losses have been heavily concentrated in the service and hospitality sectors, and entry-level home purchases have been hit pretty hard. While the overall drop in contract activity in the region has been 8.7%, homes priced less than $300,000 have fallen by almost 35%, while activity for homes priced more than $500,000 has actually risen. Total new contract activity for condos is off 12.3%, while attached and detached homes are off 8.0% and 7.3% respectively. This is another indication that there has been some movement away from more dense living conditions, but it hasn’t been massive.
We are very encouraged by the rebound in contract activity since the middle of May, and the region’s real estate market is in far better health than we would have guessed just a few months ago. Yet a rebound and a recovery are not the same things. There is still an enormous amount of uncertainty about the future path of the COVID virus, and it will take a long time to fully replace the jobs lost and to climb out of the deep economic hole that COVID-19 has produced. We have been proud members of the Washington, DC real estate community for 40 years and continue to believe that this is the best place to live and work in the world. We are realistic in knowing that we are a long way from a full recovery, but optimistic that we will recover here better than almost anywhere.
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What Can I Do To Make My Home More Attractive to Millennial Buyers?
Question: As a seller, what can I do to make my home more attractive to millennial buyers?
Answer: Millennials, those born between 1977-1994, make up the second-largest sector (24.2%) of the population in the United States. There are 78.8 million millennials in the U.S., and in 2020 they accounted for 38% of all homebuyers, a percentage that is only increasing. Some are buying their first homes, but others are now ready to move into a larger home in which to raise their family.
To maximize a property’s appeal, sellers should be tuned-in to what millennials are looking for and highlight or update those features before listing to reduce the number of days that the home is on the market and yield a higher sale price.
So, what exactly are millennials looking for in a home? What features will increase the competition among this sector of buyers? Millennials, especially in the D.C. Metro market, lead busy lives and want a move-in ready property that has already been updated. They desire and seek out homes with a design that provides easy flow between spaces, high-end and trendy finishes, and smart technology.
Kitchens and baths top the list of rooms that should showcase popular, on-trend finishes and design. Creating the coveted “open-concept” is the most dramatic design modification a seller can make to attract today’s buyer. Removing walls between the kitchen and living or dining rooms allow for greater connectivity. A large kitchen island or wide-counter peninsula that allows for better sightlines, additional workspace and bar-stool seating is preferred by buyers over separate defined rooms.
Stainless steel appliances continue to be extremely popular, as well as stone or quartz countertops in light, neutral tones. Millennials are drawn to grey or white cabinetry in the kitchen, with sophisticated, clean lines. Solid hardwood flooring throughout the main level also provides the warmth, easy maintenance and visual appeal that today’s buyers want.
Sleek design trends that create a spa-like atmosphere are what millennials look for in the bathrooms. Large, walk-in showers with rainfall showerheads, free-standing soaking tubs, and natural stone finishes are all great choices in a bathroom redo. On-trend lighting and bathroom fixtures will quickly and easily improve a bath in the way that millennial buyers will love.
As technology continues to develop, the home itself has become “smarter.” Sellers should consider installing tech-forward options such as a video doorbell, an electronic smart lock for the front door, and thermostats or light bulbs that are controlled with the push of a cell phone button or voice command.
Due to COVID-19, the home office and personal outdoor space have also become vitally important. The current work from home situation could become a long-term reality for millennials. Sellers can increase their home’s appeal by showcasing dedicated office space and areas for home-schooling.
But, when the workday is finished, millennials want to be able to escape to an outdoor oasis, whether that be deck space, a screened-in porch, or a well-manicured backyard. Sellers would be wise to spruce up landscaping and outdoor spaces to showcase the potential.
Kathy Hassett and Chris Perry, Realtors® with McEnearney Associates in Old Town, have the experience and knowledge to guide their clients through the home buying process successfully and protect their clients’ interests throughout the transaction. Contact Chris Perry at 703-286-1204 or Kathy Hassett at 703-863-1546 today for assistance in your next real estate purchase or sale.
Renting vs. Buying – Which One’s Right for You?
The topic of real estate and homeowners seems to constantly be a subject of discussion, especially in the midst of the coronavirus pandemic as we find ourselves in our homes more than ever and realizing if our current accommodations are working for our new normals of serving as offices and classrooms.
The purchase of a house is the largest transaction most people will ever make. Such a big and expensive decision can feel like drinking from a fire hose in terms of the amount of information available. Where do you even start? When is transitioning from renting to buying a good decision? And how much does it really cost? Here are six things to consider when evaluating if jumping into the real estate market as a buyer makes sense for you.
1. Job and Professional Plans
First things first: How long will you be in the area? Think about your current role and employer. Do you like what you’re doing and where you’re working? Do you see yourself growing professionally and advancing, or are you considering making a jump to a different company or perhaps a different industry altogether? Even if you don’t plan on being in the DMV for years to come, buying might still be a good option because you can rent out your property if you decide to move. That way, you can (hopefully) have your mortgage payments covered by the renters, while you continue to build equity and will have taken advantage of the currently low-interest rates in obtaining the loan.
2. Personal Plans
Next, let’s dive into personal lives. Do you want a home that fits your lifestyle today or what it might be five years from now? Does the location of your immediate or extended family play a role in where you buy a home? Do you have a significant other or plans for growing your family? Will the school districts play a role in where you buy? Will you need a bedroom and full bathroom on the main level for aging parents, siblings, or other relatives who might be moving in with you? All of these questions can impact the style, size, and location of the home you seek.
3. Finances
Now let’s talk comfort levels. What you can afford to spend may not be the same as what you want to spend on a monthly basis. Ask yourself how much you are comfortable spending monthly. Do you want to spend more, less or about the same for a mortgage? Consider how much you’re earning versus spending on monthly debts (student loans, credit card or car payments), contributing to savings or retirement accounts, or personal expenses (television subscriptions, gym memberships, eating out, etc.). Write out a budget of your recurring expenses and which ones you might be able to eliminate to pay off so you have more money to direct elsewhere. It’s important to recognize that there are also additional costs that come with homeownership that renters don’t have to account for, such as home repairs and maintenance, HOA/condo fees and property taxes. Be sure to figure these into your budgets in considering how much house you can afford.
4. Time
What does your schedule look like today? Homeownership comes with responsibilities, as you are now the on-call maintenance department and held accountable for the largest investment you own. Do you have the time to dedicate to keeping up with a home? Many expensive issues that arise with homes can be prevented with regular maintenance. If you don’t have the skills or knowledge to work on your house, do you have the extra money to hire someone to help or finances to purchase maintenance contracts?
5. Credit Score
Ah, the all-important credit score. Your credit is the biggest factor in determining the interest rate a loan officer will give you when applying for a loan. Credit scores and interest rates are inversely related: the higher your score, the lower the rate you’ll get. An “excellent” credit score of 740 or higher will get you the lowest rates. If your score is less than excellent, improving it isn’t impossible, but it takes time. Your loan officer can run “what if” scenarios for you, and provide insight as to what your interest rate might be if you pay off (or at least, pay down) debts and improve your credit score.
6. Cash on hand
You will need to bring cash to the table to purchase a home. No, you do not need to have 20 percent of the purchase price, as many believe; depending on which loan program you use, the minimum amount you’ll need is 3 percent of the purchase price — the exception being VA loans for members of the military, which allow qualified buyers to put zero money down. You’ll also need money for the Earnest Money Deposit (EMD), inspections, and closing costs — plus some left over for reserves. Let’s go through those one at a time:
- EMD — This is the amount of money that accompanies your offer that shows your level of seriousness. While there’s no legal requirement, customary practices for buyers in Northern Virginia is 2 to 3 percent of the purchase price, or $10,000 to $15,000 on a $500,000 purchase, or 5 percent in Washington, D.C. ($25,000 on the same $500,000) purchase. This is the money you should expect to forfeit should you wish to get out of the contract, but have no contingency (or “out”) to do so.
- Inspections — Many buyers wish to have a home, radon, and pest inspections conducted prior to purchasing a home. Home inspections are usually based on the size of the home but can range anywhere from $450 to $650, or more, depending on the company. Radon inspections, which test for the presence of radon gas, are usually around $200, and pest inspections are typically less than $100.
- Closing costs — Closing costs are dependent upon which state and county you buy-in, and can vary greatly. These costs include the local county and state taxes for recording the deed and transferring the property (both based on the sales price of the home), plus the costs of conducting the closing, obtaining the loan, appraisal, credit report, and flood certificate, among others. We typically estimate closing costs to be between 2 to 3 percent of the purchase price.
- Reserves — You cannot use all of the cash you have on hand to purchase a home; you’ll need to show the lender that you have at least two months of expenses in reserves.
Buying a home is a big decision, and there’s a lot to consider and evaluate. Need some guidance? Reach out to your favorite McEnearney Associate, and we’ll help guide you, whether that’s buying now, or renting and saving for a future purchase.
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What Should Seniors Know About Moving During COVID-19?
Question: Everywhere you turn, there are headlines about how devastating this virus has been to people over 60. Mostly in nursing homes, and, to a lesser degree, other “congregate” settings such as assisted living communities and some life care/life plan communities. It is true: statistically, that is where a huge proportion of infections and, sadly, deaths have occurred.
So, what should this age group (I have had my AARP card for over a decade) consider if it is time to downsize?
Answer: When people decide to downsize, it is very often because the home they have lived in for decades has become too big and expensive/time-consuming to maintain. They understand that moving to a smaller home frees them to a large degree from maintenance, and allows more time for travel, entertainment and other activities they may have been looking forward to in retirement.
Trips to see the grandkids, or that trip to the Islands that has been on their bucket list. I did it 3 years ago, and would do it today if I hadn’t.
None of that has changed. Life is continuing to happen. I have younger clients moving this month into the house where they will raise a family. And older folks moving to a condo where they will launch their next phase of life. There are just a few adjustments now.
Circle back to the virus itself. This is a virus that spreads from person-to-person via droplets from coughing, sneezing and simply breathing. Now look at nursing homes and some other senior living communities: they are caring communities where, by their nature, there is a great deal of very personal contact between residents and care-givers. It is hard to imagine a more conducive environment for the spread of COVID-19.
What does not make the headlines is that the vast majority of senior moves are to “privately-owned” properties such as condominiums, or smaller single-family homes with one level. They are not to congregate communities. These privately owned homes still offer all the benefits that downsizing affords in the first place. Plus, they offer the ability for the owner to react to outside circumstances such as COVID-19, just as they would have in their previous property.
So how do you accomplish a move these days? Logistically, moves during COVID-19 are happening with all the recommended precautions: we real estate brokers are handling purchases and sales mostly online using virtual tours, virtual contracts and virtual settlements.
While I have yet to meet a virtual de-clutterer or mover, these folks are all taking the steps necessary to protect clients of all ages. Social distancing, face masks and sanitizing wipes are the new normal, and respecting the wishes of clients is paramount.
We have a great corps of vetted vendors who can help clients through the “5 Steps to a Successful Downsize.” This includes de-cluttering, donating, discarding and the like. Plus, our Signature Service preparation of the house itself: painters, flooring contractors and most of the trades if needed.
As a Seniors Real Estate Specialist (SRES), I understand that moving gets tougher as we get older. And this virus adds an additional complication. But still, life continues to happen. The congregate communities will adjust and will continue to be a very viable option. For most older folks, however, condominiums and one-level houses were and are a great option. We can help you with that downsize, now or in the future. It is never too early to explore and to plan.
Pete Crouch has been a licensed Broker in Alexandria for over two decades. Pete also has a specialty in Mature Moves and he is a Board Member for At Home in Alexandria (AHA) Senior Village. He was the 2018 National Recipient of the “Outstanding Service Award” for work with Senior Communities. Text 703-244-4024 or email PCrouch@McEnearney.com for a copy of his Downsize Alexandria! Booklet about living more simply in Greater Alexandria.
Is Now a Good Time to Start a Career in Real Estate?
Question: Is now a good time to start a career in real estate?
Answer: Real estate has never been a career for those uninterested in hard work, maintaining focus in the midst of chaos, and having an optimistic view of the future. Why else would anyone take on a job where you don’t get paid until the end of the process? This is a career for entrepreneurs looking to build a business over a long period of time with highs and lows along the way.
But there is no doubt that what realtors are facing now is complex and challenging, tying together economic and health crises with a seismic shift in the way we do business.
No one has experienced what we are going through right now, so in some sense all agents are at the same starting point of learning to sell in the midst of a global pandemic. Of course, agents who were selling during the housing crisis of the late 2000s have a better reference level for what it takes to succeed in a challenging market.
But during the Great Recession it took years for our housing industry to recover and a great deal of overhaul in the businesses associated with real estate to reclaim public trust. That is not the case today, and there are signs that the strength of our local housing market prior to the pandemic — buoyed by low inventory and low mortgage rates, two things that have not changed — is keeping us in a positive position.
As local officials designated real estate as an essential service, realtors quickly ramped up to serve the public in the safest and most efficient ways possible. From stocking listings with anti-bacterial supplies to hosting virtual open houses and guiding clients through remote-access settlements, agents have ensured that CDC guidelines on public interactions have been carefully followed. And the results show that sales are still happening at a hopeful pace.
Local stats from throughout the D.C. area, as compiled by McEnearney’s David Howell, Executive Vice President & CIO, shows that for the last several weeks, contract activity still lags behind that of last year, but the previously very wide gap continues to narrow.
For the week of May 10-16, the total number of newly ratified contracts was down just 14.6% compared to the same week last year. To put that into perspective, the previous week was off 19.3%, and that was preceded by weekly drops of 30.9%, 40% and 45%.
Absorption rates for the City of Alexandria — the rate at which properties went under contract or sold in a 30 day period — in April showed a continued seller’s market, with a 47% rate for detached homes up to $1 Million and 33% for homes over $1 Million, 50% rate for townhomes up to $1 Million and 32% for townhomes over $1 Million, and 49% rate for condos and co-ops up to $1 Million (the news was not so great for condos and co-ops over $1 Million with barely any movement in those properties). While we do not expect contract activity to catch up to 2019’s performance anytime soon, the trend is very positive.
What the last two months have made clear is that our homes have never been more important to us than they are today. They have become the center of our universe — our workplace, our schoolroom, our communications center — providing a sanctuary in a time of uncertainty.
Demographics will shift as a result of our time in quarantine that will necessitate a change in housing: families will grow, couples will divorce, working from home will mean less focus on commuting times, multi-generations will come together under one roof. There will be a lot of movement in the housing market and opportunity for savvy agents at every change in that cycle.
Real estate was key to so many things in our lives before the COVID-19 pandemic arrived. It will take professional, knowledgeable and caring realtors to guide buyers, sellers and renters, through the new market ahead.
If before the pandemic you were considering a career in real estate because you wanted to be a part of something essential, not just to our economy but to our social fabric, then now is the perfect time to start.
If you’d like to learn more about how McEnearney Associates is growing, visit us at www.JoinMcEnearney.com.
This week’s Q&A column is written by Karisue Wyson, Director of Recruiting & Agent Support at McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article, contact Karisue at 703-615-0876 or email kwyson@mcenearney.com.
Is It a Home, or an Office, or a Classroom? YES!
When we think of home … maybe we think of shelter or, somewhere we like to entertain family and friends. Perhaps it’s a quiet respite after work or a place to enjoy lazy weekends.
But, never before has it been work, school, the place to host online social gatherings, conduct Zoom meetings, field numerous conference calls, “attend” virtual conferences and workshops. It’s never been the place where you shuffle your workspace to make space for the kids to do schoolwork or “attend” an online lesson.
Never have we had to carve out workspaces, clear dining room tables, and breakfast bars, and work from home so continuously that we experience posture issues, strained eyes, and cabin fever. Until now.
We are all learning new ways to use our homes – whether we have a dedicated office or not. So, what do we do if we don’t have a home office? Where can we carve out some workspace or a place where the kids can do homework and study or where different family members can rotate into the space at different times? How do we find a quiet space to host Zoom meetings? Where can we sit, work, and be inspired to innovate and problem-solve?
I recently interviewed a couple of local business owners who had great ideas.
For instance, Niki VanEch, a talented local interior designer and owner of VanEch Studio and Design offered really smart suggestions for clever workspace solutions. She suggested ideas for utilizing corners, small nooks, and even unused wall space where a narrow profile desk or work surface might be installed.
She had a suggestion for converting a modest closet into an office – and, the coolest feature – it had small roll-away barn doors. So, if you are working and need to walk away to focus on something else, you have this beautiful and artistic design element where you can simply roll your barn doors closed.
Another good idea: Creating space under stairs to a basement that is often just a closet (frequently home to old luggage, boxes, and wayward spiders). By removing that long wall beneath the steps, finding a small desk with some shelving and offering cute and useful accessories, and great lighting – it can be transformed from an under-utilized space into something truly inviting and cozy. It is a thoughtfully designed space where one might enjoy a hot cup of tea while reading, writing, or really digging into a project.
Niki even shared some really clever and smart-looking floating desks that can become beautiful design elements in a room.
But what if you feel cramped – you have employed some good ideas but you just need more places to go? You are sick of your proverbial “four walls.”
Gifted landscape architect Pragya Mishra, owner of Artscapes, would ask you to consider what “rooms” you can create in your outdoor space. Can you create space for inspiration, reading, writing, and even meeting outside?
Pragya has helped people with beautiful patios and decks – she has designed small spaces with Adirondack chairs and firepits on a gravel base or just the simple bench or chair beneath a tree. You can get really clever with outdoor lighting and simple pergolas that have power running to them where a fan can be installed to blow the pesky mosquitoes and gnats away while you avoid pesky family members working inside!
Outside can be a great space for conference calls – no barking dogs, screaming kids, other family members on their own Zoom calls, and bouncing sounds, in general. Yes, sometimes we have to contend with the zealous neighbor who opts to mow his lawn right as you start your conference call, but – there will likely always be something with which to contend and at least this way you get a change of scenery and some fresh air.
Pragya even offered some great solutions for townhouses – so, small yards work, too!
Home – even though how we use it has changed – can actually benefit from some carefully re-thought and re-purposed space. If you would like to learn more from either of these bright professionals about great ideas for your home, please reach out to me – I’m happy to connect you!
Ann McClure is a licensed real estate agent in Virginia and Maryland with McEnearney Associates, Inc. in McLean, VA. If you would like more information on selling or buying in today’s complex market, contact Ann at 301-367-5098 or visit her website AnnMcClure.com.
How is Real Estate Evolving in Alexandria?
Question: Other than less activity in the marketplace, how else has COVID-19 changed the way real estate is being conducted in Alexandria?
Answer: Do you remember Spencer Johnson’s book, “Who Moved My Cheese?”
I re-read it for about the 20th time again recently, and it never fails to inspire me to look at my business from a different perspective. Having been in some form of sales for my entire professional career, this is far from the first time I have had to reinvent my normal way of going about my business. Luckily this time I have a terrific company in McEnearney Associates Realtors that is providing the support to make the evolution less difficult.
To highlight a few modifications and validations that have resulted over the past few months:
Professional Photography: This has always been a must at McEnearney — now more than ever. Over 95% of buyers start their home search online, therefore, high-quality photos are essential in having your listing stand out. Not only still photos, but interactive 3-D Virtual Tours where you can move through the home with a click of your mouse, to narrated videos set to music, and my personal favorite, live Facebook and Instagram virtual open houses.
421 S Payne Street, Alexandria, VA 22314 — Offered at $1,350,000
I love the feedback that I received from a neighbor recently on a listing in Old Town Village…
“I watched your live Facebook Open House last Sunday and really enjoyed it! Frankly, I liked it better than an in-person tour because you went into so much detail about each room, the upgrades and improvements, and the exterior of the home and the community.”
Believe it or not… as I was finishing up the live tour and locking up the house, the doorbell rang… it was someone that had watched the live open house and wanted to check it out. She ended up buying it!
Advertising: Since I am not holding the traditional public open houses with groups of people in and out over a three-hour period, advertising has become even more important. Between mailings, print media, email marketing, online advertising, networking agent-to-agent and agent-to-potential buyers, and social media — the goal is to encourage agents and buyers to check out the various methods of viewing a home and to set up a private tour.
Private Showings: These are being conducted by appointment only — one group at a time — with a maximum of three people per party – and are scheduled to avoid overlap. Masks and gloves are required by all parties, and we are asking potential buyers and agents to stay in their cars until their appointment time to avoid contact with neighbors or other parties leaving the home.
Paperwork Signing: Electronic signing has become the norm.
Closings: Settlements are done virtually with all parties in separate locations and include a notary. As of now, the time from contract to closing has been extended a bit to at least 30 days.
Whether you are buying or selling, feel free to contact me to discuss the market, and how I can safely help you achieve your real estate goals.
Lisa Groover is a licensed real estate agent with McEnearney Associates, Inc. in Old Town Alexandria, VA. Having had seven golden retrievers since moving to Alexandria in 1989, she is dedicated to helping other dog owners through the challenges of renting, buying and selling their home.
I Want to Sell My House. Where Do I Begin?
We are currently in a seller’s market. Home inventory is low and interest rates are, too. You know that this is a good time to sell your house, but you do not know where to begin and the process seems daunting. There seem to be a plethora of real estate agents available; how do you know who is the right choice for you?
Listing Presentation appointments allow you to interview multiple agents for the job of selling your home. Through recommendations from your family and friends, print and online advertisements, or even a business card you stumbled across on the sidewalk, you should be able to narrow the field down to a couple of agents. A good Realtor will guide you in determining what is necessary and what is not before getting your home ready to sell.
I like to call the listing appointment process the 2-step. In the first step, your potential listing agent will come to your house to gain as much information as possible about your specific property. This visit includes taking a lot of pictures, inspecting all of the nooks and crannies of the interior and exterior, asking questions about important features that a potential buyer will care about such as the age of your roof and Heating/AC systems as well as taking note of personal items that will need to be removed from your home while it is being listed and the condition of the kitchen and bathrooms and other features that a prospective buyer considers most when deciding to purchase.
The agent will then compile all of that research to determine what if anything should be done to help sell your house as quickly as possible and for the greatest amount of profit. Before you meet with your potential agent again, she will perform a comparative market analysis to determine the value of your home using recent sales in your neighborhood and other factors such as the size, style and lot, as well as taking an in-depth look at improvements of those comparable properties and adjusting your home’s prospective value accordingly.
Now, both you and your potential agent are ready for the second step. Ultimately, it is your choice what you list your house for since you are the seller. That being said, you do not want to rely exclusively on tax assessments and online estimates that utilize algorithms to determine home prices. In fact, the creator of Zillow sold his own home for 40% less than its Zestimate.
You want an expert opinion on your home’s value, and that is what a good agent will provide. Overpricing a home is the single most detrimental mistake an agent can make when it comes to listing a home since it will affect the final sales price. Along with the potential range of your home’s value, a good agent will come to your second appointment with a personalized marketing plan for you, often in the form of a calendar to help you visualize the timeline for your home’s sale. Included in this presentation will be examples of both digital and print media that will be utilized to broadcast your house to the largest market possible. Information about the importance of staging and its impact on your home’s ability to sell will also be discussed.
The listing agent works for you, so choosing the right one is important. You want someone who is experienced and knowledgeable but treats you as if you are her only client.
Remember, you only have one opportunity to make a great first impression on your future buyer. Be sure to rely on a great Realtor to help you make that impression.
Jean Beatty is a licensed real estate agent in VA, MD, and DC with McEnearney Associates, Inc in McLean, VA. If you would like more information on selling or buying in today’s complex market, contact Jean at 301-641-4149 or visit her website JeanBeatty.com.
What Should I Know Before Diving Into the Current Virginia Real Estate Market?
Question: As a buyer, what should I know before diving into the current Virginia real estate market?
Answer: Real estate sales are governed by state contract law and property law. Depending on the circumstances, buyers in Virginia can expose themselves to significant risk if they are not fully aware of their rights and responsibilities.
Virginia is one of only three states that follow the caveat emptor theory for real estate transactions. Caveat emptor is a Latin term meaning “let the buyer beware.” It is a legal principle that requires a buyer to assume the risk for the purchase and conduct the appropriate inquiries before completing the sale.
Sellers in Virginia, and their agents, are merely required to provide buyers with a signed notice of the Virginia Real Estate Disclosure Act, which alerts the buyer that the seller will make no representations or warranties about the property. As a result, sellers are not required to make any disclosures about the condition of the property or adjacent parcels, with the exception of known material defects which would affect the value of the property.
It is the obligation of the buyer to conduct the necessary inspections or to ask the proper questions to uncover any potential issues with the home.
In the “buyer beware” atmosphere what should a buyer do to ensure that they are purchasing a property in good condition? Including a home inspection contingency with the purchase offer allows the buyer to take a close look at the property and its various systems (i.e. heating/air conditioning units, electric, and plumbing) and become aware of existing or possible future problems. When necessary, the buyer may have multiple inspections take place during the home inspection contingency period.
For example, in addition to a general home inspection, the buyer may opt to have a structural engineer inspect the property and give an opinion on the foundation or have a contractor inspect the roof. The home inspection contingency gives the buyer the opportunity to discover systems or appliances that are in need of repair or replacement, or safety hazards present in the home that should be addressed.
During this time of the novel coronavirus pandemic, inspections are still taking place with extra safety and health precautions. Inspectors are wearing protective gear and performing the inspection without the buyer or buyer’s agent present in the home.
Video clips and texts, in addition to the written report, are used to provide information to the buyer about the home’s systems, appliances and structure, and the inspectors are available to discuss concerns and answer questions that the buyer and their agent have.
Following the inspection period the buyer has the opportunity to negotiate with the sellers to make necessary repairs in the home prior to settlement. As an alternative to negotiating repairs, the buyer has the option of voiding the sales contract if they determine they no longer want the property. The buyer is responsible for the cost of the inspection(s), but it is money well spent to gain information on the condition of the property.
Kathy Hassett and Chris Perry, Realtors® with McEnearney Associates in Old Town, have the experience and knowledge to guide their clients through the home buying process successfully and protect their clients’ interests throughout the transaction. Contact Chris Perry at 703-286-1204 or Kathy Hassett at 703-863-1546 today for assistance in your next real estate purchase or sale.
