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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“I have a silly question” is something that I hear far too frequently and usually followed by something that I’ve been asked before and isn’t silly at all. Frankly, in my opinion, there are no silly questions.

Before I went full time into real estate, I taught health to 6-12th graders. Like real estate, the stakes were pretty high if questions went unasked. Believe me when I reiterate my opinion that there are NO silly questions. If there is something that you want to know about one of the largest purchases you will likely make — don’t be afraid to ask!

In the meantime though, here are a few of the most commonly asked “silly” questions that I get all the time!

Does the seller have to tell me if there is a ghost in their home? AKA, What must be disclosed?

To me, this is the epitome of a “silly question” and when I say that I mean: something everyone wants to know but doesn’t want to ask. Just further proof that a silly question doesn’t exist. Anyway, to answer the question in short — not in Virginia they don’t.

Sellers are only required to disclose material facts that would affect the value of the home, but ghosts are definitively non-material. Virginia is a “caveat emptor” state, which means “buyer beware”. In fact, the Virginia Residential Property Disclosure is a document listing sixteen items, from “Condition” & “Defective Drywall” to “Sexual Offenders” & “Historic District Ordinance”. All sixteen begin with the verbiage “The owner(s) makes no representations…”

While this may sound disheartening for those looking to buy property in the future, don’t worry — there are many opportunities for you to find out most of this information. Your Realtor will help you with resources and inspectors to ensure that you are well aware of what you are getting into before moving in.

Can I look in the closet? AKA, How up close and personal can I get with a home I want to buy?

As a general rule of thumb, I’d say treat a home that you are viewing the way you would want a visiting friend to treat your home, but maybe just a little nosier. Sellers will expect potential buyers to open a closet, go in an attic and poke around in the basement. However, things like adjusting the thermostat, turning on appliances, touching personal items, and forcing open something that’s been painted shut are definitely things to avoid.

A home showing is a time to see if you like the home. An inspection is the time to check if things are in order since inspectors are licensed and insured.

Who pays who? AKA, ANY money questions

If we haven’t gotten real enough — let’s get REALLY real. No one likes to talk about money, especially in the terms of “how much am I paying you?” But, it is a very valid question and one that must be addressed.

As a home buyer, all of the money you pay will go towards your home purchase. In addition to your down payment, there are closing costs that you will owe, mostly to the lender and settlement company in order to process your loan and title work. The Realtors however, are paid by the seller.

Will I need to buy new appliances? AKA, What comes with the home?

While it is typical in Virginia for all items attached to the home to convey (or come with) the home, this doesn’t always apply. The sales contract includes a list of conveyances, and it can typically be assumed that if a home has an item on the list, it will convey. However, there can always be exceptions.

Sample conveyances list from a real estate contract

Perhaps there is a light fixture that has been in the family for generations, or a hot tub that the seller already has plans for moving into their new home. In contrast, some homeowners have custom fit pieces such as bookshelves or custom rugs that would make no sense in their new home, so they leave it behind. While Realtors know what is “the usual” in their area, it is still important to double check each listing’s conveyances so that you aren’t disappointed.

For Sellers, I’d always recommend leaving the appliances. Most buyers would be disappointed to fall in love with a home that doesn’t come with any appliances, and they can tend to overestimate the amount they will cost. It is usually much more cost effective to simply leave the stove behind for the new buyer.

All of these questions above are actual questions I’ve been asked by more than one person. They’ve also all been qualified by the descriptive “silly question”. At the risk of sounding like a broken record, I will repeat — there are no silly questions!

Even if you think you know, but aren’t sure, ask! There should be a level of trust with you and your Realtor that you don’t feel silly asking the “silly questions”. Frankly, I’d venture to say that any professional who makes you feel silly after asking a question isn’t a professional at all.

Hope Peele is a licensed real estate agent with McEnearney Associates, Inc. in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many faceted process of buying or selling a home. Contact Hope at 703-244-6115.

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1. What in the real estate market do you think has changed the most over forty years?

I would have to say technology has driven the greatest change. Look at the way we conduct our business today. Property information is available to everyone, agents and customers alike, at our fingertips. The internet, phone apps and QR codes give instant access in real time. Purchasers view photos and videos of homes for sale from their home or car. Contract offers are written, signed and presented to sellers electronically. The access to information makes everyone better informed. The systems and programs advanced through new technologies impact every aspect of the buying and selling process for real estate agents and their clients.

2. Why is it important as a business to be involved in the community?  

Our communities support our business. It seems only right that we should give back to those who make our success possible. Because we are so connected our agents naturally become involved in the many organizations, charities, business and programs that make our communities strong. We sit on boards. We contribute dollars to sponsor events. We advertise programs and fundraising efforts. Our clients do the same and make us aware of ways that we can help. We recently championed an effort to improve a park in D.C. in an underserved neighborhood. We painted structures, built new ones, cleaned up trash and had a great time doing it. That day about 60 of our agents wore their blue jeans and t-shirts and felt like we had made a difference. Why get involved? It feels really good when we do.

3. How has the pandemic changed the way your agents conduct business? 

Although real estate agents have been capable of working remotely for years, the pandemic forced us to fine tune our systems and skill sets. Instead of standard open houses we created virtual opens. Instead of on-site meetings we gathered on Zoom calls. We worked harder to communicate frequently with our fellow agents and our customers and clients. And we developed a greater appreciation for one another and longed to be together again.

4. What does your leadership role provide for clients?

At McEnearney Associates we have always believed that the benefit to our clients is delivered by our agents. The best agents in the business deserve the best support that a company can provide, so that they can in turn deliver exceptional service. Our managing brokers provide guidance, education, tools of the trade, and an environment where agents thrive and excel. That commitment empowers our agents to deliver on the promise of superior service and value to our clients.

5. McEnearney Associates has hit a new milestone in all of Alexandria, what do you think are the things that contributed to your firm’s success?

First and foremost, our agents. Without a doubt, they are the most well intentioned, skillful and determined group of real estate pros that I have ever known. They care about their clients and strive to succeed for them. They have the knowhow and tools required to tackle any situation. And they don’t give up when faced with a challenge. In addition, due to the excellence of our agents, we have a very loyal following in the communities we serve. Our reputation is nothing more than the sum of the reputations of our agents. And that is a tidy sum. A reputation well-earned and respected. Ours is a people business. We are fortunate to have very talented people.

We look forward to answering your real estate questions in 2022. Our best wishes for a Happy New Year!

If you would like a question answered in our weekly column or to set up an appointment with one of our Associates, please email: ALX@mcenearney.com or call 703-549-9292.

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When looking to buy a home, an important thing to consider is whether or not you are interested in having a home within either a homeowner’s association or condominium association. What is also important is understanding the differences between the two! While many have heard of HOAs and condos, not many understand exactly what they are. It is even a common misconception that the terms can be used interchangeably — however, they are actually quite different.

So, how can you tell the difference?

As a general rule, most apartment style homes and townhomes fall under an association and most detached homes do not. Of course, there are exceptions to every rule!

Differences Between an HOA & a COA

First of all, what is the difference between a Homeowner’s Association and a Condo Association? Condominiums usually exist within a building, in which owners own their own unit as well as a joint interest in the common areas. Common areas include community spaces such as patios and party rooms, as well as the roof and other exterior features, such as pools, tennis courts and more. Sometimes, they even designate windows and balconies to be common responsibilities. All owners in a condo building own equal share and financial responsibility for maintenance of these common spaces and responsibilities.

In a homeowner’s association, the ownership is a little different. Each member owns their own home and parcel of land. Common areas, such as playgrounds, pools, tennis courts, and parks are owned and maintained by the association. Sometimes the roads are maintained by the HOA, and sometimes it is the county responsibility. There is no joint ownership.

Both condos and HOAs have fees that the owners pay — typically monthly or quarterly. These are different from fines, which owners are required to pay if they break rules in the community. The rules for communities and associations can be vastly different from place to place. The majority of rules are in place with the intention of maintaining the integrity of the community and common areas.

Contingency Period During the Buying Process 

Once a contract is agreed upon and signed by both buyer and seller there is a required time period for the purchaser to review the association documents. In Virginia, the period to review is 3 calendar days from receipt. The documents will include meeting minutes, by-laws, rules, and other documents that can give a better understanding of the community and its financial stability.

The good thing about this contingency period is that it is required to be given to all buyers. In a competitive situation with multiple offers, buyers often waive contingencies such as inspection or appraisal. The document review period cannot be waived by anyone and puts everyone on the same playing field. All buyers have the right to know the details of the association they are joining, before they join, and will have the opportunity to cancel if they don’t like what they see.

What to Look for in Association Docs

In short, violations, upcoming assessments, maintenance plans and finances. The association will do a pre-sale inspection and there should be a cover sheet that lists any violations that the seller is required to fix. You and your Realtor should address this with the seller, because the association will expect the buyer to fix them after the sale. Also look for a disclosure on upcoming assessments. These can be hefty and if they are just under discussion at this point, and have not been finalized, an assessment will become your responsibility in future.

We also suggest that you read through any meeting minutes, as they often contain topics of discussion that are concerns to the current owners. This is valuable information if you are buying in the community. I also suggest reading through the current financial statements and most importantly, looking to see how much cash the association has in reserves for future maintenance.

If there is anything in the documents that you don’t like or feel uncomfortable with, you can void the contract during this period. There is no explanation required. It is incredibly important to look carefully and to relay any concerns to your realtor immediately.

What Can Be Included in Fees 

Of course, associations are not only about rules and fees! Common areas can also include fun things like pools, fitness centers and playgrounds. Also, some fees cover utilities like water, trash, gas — sometimes even electric, but don’t count on it! A huge selling point for many homeowners is landscaping. Some associations take care of tree trimming, snow removal, and exterior maintenance.

It is important to weigh the cost of the association with what you value most. If a 24-hour security guard is important to you, that peace of mind will cost you a little more.

A good lender should be able to include the dues when they run the numbers for your loan. They should be able to give you a very close idea of what your monthly payment will be.

It is incredibly important to ensure that you are able to pay for not only your mortgage, but also the association fees.

Pros and Cons

Of course, just because your home isn’t a condo or in an HOA doesn’t mean you can do whatever you want. Always be sure to check with the city before making any drastic changes to your home. Some homes are also in a historic district and are required to maintain the historic integrity of the home.

Like most everything else in life, there are pros and cons to all these options. For some buyers, it is perfect to have the amenities and features of a managed community, while others prefer fewer guidelines and requirements. It’s important to weigh all of the factors when deciding what is right for you. I would be happy to chat with you about your options and to share my expertise about buying a home.

Hope Peele is a licensed real estate agent with McEnearney Associates, Inc. in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many faceted process of buying or selling a home. Contact Hope at 703-244-6115.

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For many a successful Realtor, this recruiting call will sound familiar: “Technology will boost your business and make you a star.” (While I agree it helps, personal relationships and real substance mean the most to me. Signed, Ann D.)

For instance, I absolutely hate to throw out old files which, of course, can be scanned into my iCloud account, the company server or a system we have called “Skyslope.” But, much like holding a real book instead of a Kindle, I really prefer reaching for the old, ink-stained file with scribbled notes from your purchase on North Fairfax Street or Mount Vernon Circle, or sale on Grand View or Prince Street, when it is time for me to sell or help someone buy that property.

What is so blasted precious? A wide range of hidden treasures can be found in those paper files – the first name of the scheduler for the unreachable master carpenter who put in the den bookshelves, the key pricing information for the French drain contractor, as well as for the contractor you didn’t choose and why, or the cell phone number for the talented electrician and his brother who can install fans in 14- to 20-foot family room ceilings (imagine the Flying Wallendas).

Oh, I’m not such a dinosaur that these people aren’t also in my personal Excel resource list, but the context, receipts, paint colors and scribbles are often a huge help in getting onto a pro’s schedule.

Luckily, I have outgrown many out-of-date practices – heck, we used to have 25 copies of a photo made at Ritz Camera, then wield Glue Sticks to attach them to the front of cardboard brochures! Open Houses were heralded with waving helium balloons before we realized that helium is a non-renewable resource – made on earth via nuclear decay of uranium, and it is recovered from mines – TMI? – we even had a tank here in the office.

And even I have graduated to creative tools – Saved Searches, instant alerts to screen and match listings, text flashes – though just last month I went “street walking” with a pen and notebook, like a flat-foot detective, to find clues for commercial lease opportunities – unadvertised empty spaces, old signs, etc.

I also rely on the personal strength and human excellence of my full-time assistant. We take any situation and make it better with laughter and a nice dose of creativity. Using the skilled, real people of our company’s in-house marketing staff means we can personalize each one of my listings far more effectively than using a standardized format in a technology-constrained data dump.

People are just better. We haven’t hired a robo-calling program to make cold calls as some firms have. Some vendors even use call centers to create lists of homeowners who don’t hang up when they are asked whether “they’d sell their home,” then sell those lists to startup real estate companies for targeted mailings or Meta blasts.

These thoughts and years of experience are brought to you by Ann Duff, Realtor, with McEnearney Associates. Based in Alexandria, Ann is busy day-in and day-out in DC, Maryland and Virginia, listing, selling, and leasing distinctive properties with and for wonderful people – and all with a splash of fun! Let’s Get Busy… contact Ann at 703.965.8700 or visit her website AnnDuff.com.

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