Here is a really important question: What do sellers want in today’s housing market?

Low inventory and low interest rates mean there aren’t a lot of homes for sale, but there are lots of buyers looking to make a move. Sellers are receiving multiple offers above list price, but what do sellers want beyond escalated sales dollars?

1. High earnest money deposits and large down payments

The earnest money deposit shows the seller you’re serious about purchasing. This money is sent to the title company as part of the offer and held in an escrow account before closing. It’s also known as a “good faith deposit” and protects the seller if you back out of the contract. Typically, it’s about 1-3% of the sales price, but if you want to win a contract these days, consider offering more, even as much as 10-15%.

A large down payment also shows the seller you’re serious and have the funds to back up your offer. Sellers worry about buyers’ financing falling through, and these two strategies can help ease their minds.

2. A “clean contract”

This means no contingencies — home inspection, appraisal and finance contingencies all waived. Sellers don’t want to have to negotiate for repairs from a home inspection report and deal with the hassle of having minor problems repaired. Consider waiving the home inspection and purchasing a home warranty to cover the cost of repairs that may arise once you own the home.

Additionally, waiving the appraisal means you’re willing to bring additional funds to the closing table if an appraiser deems the home is worth less than your offer amount. You can shift dollars from your down payment to cover this gap.

Lastly, waiving the financing contingency means you’re confident in your ability to obtain a loan. If you feel secure in your job/financial situation, this may be a good option, but please talk to your lender first.

And don’t forget: Listing agents and sellers do not want to see any mistakes on the sales contract. Be sure your agent is detail-oriented and, of course, read the contract yourself before signing!

3. A quick close

Sellers want their money and to move on! Most transactions can close in as little as 30 to 45 days depending on title work and lender procedures. Check with your lender about pre-underwriting your loan to close quicker — this can be a huge plus!

4. A free rent back

This can push your contract to the top of the pile. Offering the sellers to stay in the home post-settlement, free of charge gives them peace of mind and flexibility to move to their new home or even renovate. I’ve seen this tactic work multiple times even when you can’t waive all the contingencies.

Lynn Cooper is a licensed REALTOR in Virginia with McEnearney Associates in McLean. Whether buying or selling, Lynn is 100% committed to her clients before, during, and after the transaction. Connect with Lynn at 202-489-7894, lcooper@mcnearney.com.

Take a look at our website for all of our listings available throughout Washington, D.C., Maryland, and Virginia.

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Like any industry, real estate has a ton of lingo that isn’t common to most people. To me, it’s incredibly important that someone who is buying or selling a home has all of the information and resources that they need — before the stakes get high! There is nothing worse than trying to make a difficult decision when you are unfamiliar with the terms.

When I am working with both buyers and sellers, some of the most frequently asked questions are about contingency periods. These are lengths of time written into the contract in which one of the parties has the option of voiding the contract without penalty.

There are many different types of contingencies, and they can vary greatly depending on the contract. No two contingency periods are alike! However, there are some that are more common than others, so here is a quick guide to the top three contingencies that I am asked about most often.

1. Inspection Contingency

In some home sale contracts, there is an agreed-upon number of days in which the buyer can hire a licensed inspector to examine the home for defects. Sometimes the contract allows for the buyer to void during this contingency period, and sometimes there is also the option to negotiate repairs with the seller. If the buyer chooses to either void or negotiate, they must provide the seller with a report from a licensed inspector. In a hot “seller’s market,” buyers can sometimes make this period very short, or even waive it entirely, to appeal to the seller.

2. Financing Contingency

This contingency protects the buyer in case something happens to their loan. Changes in things like a buyer’s employment or credit could potentially put the loan in jeopardy. If there is any risk of this happening, it is important to have this contingency in place so the buyer is not bound by the contract terms. Depending on where the buyer’s loan is in the lender’s pre-approval process, this contingency can be confidently waived in some instances.

3. Appraisal Contingency

An appraisal contingency gives buyers security in case the appraisal from the bank does not come in at the contract price. The bank wants to know that the loan they are approving is worth it. So, if they conduct an appraisal that values the property less than the contract price, the buyer either needs to make up the difference or come to an agreement with the seller. Without an appraisal contingency, the buyer is responsible for what they agreed to in the contract — with or without a loan. An appraisal contingency protects the buyer in case the bank will not allow the loan to go as high as the contract price.

This is by no means an exhaustive list and please remember contingencies can vary greatly from one offer to another. Each buyer and seller should work closely with their Realtor to decide what is best for them in each particular situation.

To learn more about contingencies and other real estate topics, we will be hosting a Virtual Happy Hour on April 22. We will be joined by a lender and a home inspector, and we will answer all of your questions about real estate! For an invitation, please send an email to Lori@thepeelegroup.biz.

Hope Peele is a licensed real estate agent with McEnearney Associates, Inc. She and her mother, Kim Peele, are The Peele Group serving Virginia and D.C. They are dedicated to helping clients through the challenges of buying or selling a home.

Take a look at our website for all of our listings available throughout Washington, D.C., Maryland, and Virginia.

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Despite the pandemic, or partly because of it, the seller’s market in real estate has continued. A several-years-long trend toward fewer houses on the market has only become a more acute shortage. As we all obeyed stay-at-home orders, even fewer of us were selling our houses than in prior years.

As safety measures became standard protocol, however, buyers and sellers returned to the market after the first month or so of C-19. But more buyers than sellers returned, and the number of homes for sale remains extremely low. The overall effect has been that prices have accelerated, and most well-maintained homes are receiving multiple offers when they go to market. It is tough to be a buyer these days — but great to be a seller.

That dynamic can keep a seller from considering a move, since they will likely become buyers for their next house. When you look more closely, however, it could be a wonderful time to move to smaller housing. The statistics show that the housing shortage is most acute in the single-family arena. The number of detached houses, in particular, is way down over previous years, followed by townhouses. That makes sense — shortages have been building for several years, and the pandemic has driven some folks out of apartments/condos and into single-family homes, increasing demand.

Condominiums, however, have not had as much demand. In fact, the supply of condos on the market overall is up from years past. It is much less of a seller’s market in the condo world. I’m not sure it is a buyer’s market for condos, but it certainly is different from the demand for single-family homes.

So, what is the opportunity for downsizing? First, single-family prices have accelerated by as much as 15% in the last 12 months, depending, of course, on location and condition. For many existing homeowners, that means their homes are worth much more — often $100,000 to even $200,000 more. Plus, condos are the softer area in the market, again depending on location and condition. For anyone who was considering downsizing before the pandemic, this could be a wonderful opportunity to sell high and buy low (and close in/”walkable”). If downsizing away from our high-cost area, the benefit could be even more accentuated.

Another factor is the treatment of capital gains taxation on the sale of a principal residence. Every taxpayer selling a principal residence is entitled to an exclusion of gain of $250,000 or $500,000 for a couple. (Read IRS Publication 523 for conditions, and always check with your tax professional regarding your personal situation.) So, if a house has gone up dramatically in recent years, and you are thinking of going smaller, you could have a nice opportunity to go smaller with a great tax benefit. There is, however, a hint that capital gains tax treatment may change under the new administration, so it could be the best time to take those winnings off the table, so to speak.

With the roll-out of the vaccines and the lifting of some restrictions, there is a prospect of life getting back to somewhat “normal.” It might be time to consider — or reconsider — that move to smaller housing. The opportunity right now is to take advantage of the strength of the single-family market, the relative weakness of the condo market and the current very favorable tax treatment of housing gains.

Dad always told me to buy low and sell high. Have the stars aligned for you?

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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Think about how you will use the space.

What are you trying to create? Additional living space, scenic views, privacy — all of the above?

The first thing an outdoor room does is provide additional living space with the added bonus of enjoying nature — the warmth of the sun on your face (wear sunscreen, you’ll thank me later), the chirping of birds (wow, loud!) and, yes, the occasional red fox trotting by during morning coffee. I’m used to Mr. Fox now. Initially startled, it quickly became clear that he had places to go and no time to bother with me. I look forward to his next visit. And the greatest entertainment has to be Chip & Dale who chase each other through the flower beds and occasionally peek out from under the chair as if to say, ‘We’re back for another summer of fun!’

Group your space according to the way you’ll use it. For me, that’s a conversation circle — chairs arranged in a circle (or square) to chat with friends (socially distanced, of course) or to sit and read decor magazines. The lounge chair is essential for a 15-minute power nap.

Bistro tables for an intimate dinner for two or pushed together for larger gatherings provide a fresh take on dining throughout the day — complete with an outdoor grill, which makes for easy kitchen cleanup. The umbrellas over the two bistro tables provide shade from the sun and keep a light drizzle from spoiling a meal or sending me inside. Hang a lantern under the umbrella for evening dining.

Before, during and after patio construction

You’ll need a quality contractor. Choose a patio material like flagstone or brick and determine the amount of space you have to work with. Go as big as you can — you want to be able to walk around without bumping into furniture. And don’t forget to put a PVC pipe under the patio to run wires for landscape lighting because that, my friend, is the secret to the outdoor room lasting long into the evening. Bring out a Bose wireless speaker and a few citronella candles, and you can rock the night away. Add a firepit or heater and extend the season (though a mohair blanket and a hot drink work, too).

For the landscape plan, think spring, not summer, for planting, and remember to constantly water the new trees, bushes and plants while they establish roots. Delight in blooms and color, but start with evergreens as your base. The green wall offers privacy and fabulous views even in the winter.

An essential element of the outdoor room is how it looks from inside as it draws your eye outward and makes the interior feel larger for extended, blended living spaces. Low windows and/or patio doors help create this seamless outdoor room extension.

Enjoying nature… 1)  Azalea season; 2)  and  3)  Mr. & Mrs. Cardinal as viewed from inside; 4)  Winter landscape with lighting

Give some thought to bloom timing. What blooms early spring, late spring and summer? What changes color in the autumn? (Fire bush!) What will stay evergreen all winter so you always have a serene view and privacy? Enjoy the evolving personality and color as you time the blooms. A professional landscaper — most garden centers have them — can guide you on bloom timing.

Susan Craft is a licensed real estate agent with McEnearney Associates, Inc. in Old Town. Her success has been built on the art of listening and providing excellent personal service to deliver the results people want, expect and deserve. For a no-obligation consultation, call or text 703-216-4501 or email susan@susancraft.com today!

Take a look at our website for all of our listings available throughout Washington, D.C., Maryland, and Virginia.

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In this fast-paced Washington-area market, expectations for what a Realtor does today are greater than they have ever been.

Some axioms always hold true, though, and one is you get what you pay for. This is especially true for the Realtor you choose to work with when you buy or sell your home. There are a myriad number of options available for you to choose from beginning at a limited-service brokerage (i.e., a discount broker) to a full-service brokerage (like McEnearney Associates). When choosing your Realtor, I would like you to keep these three A’s in mind: applicable knowledge, accessibility of staff, and available resources.

Applicable Knowledge

Real estate is a lot like owning a car. From an outsider’s perspective, you put the key into the ignition, turn it to start and the car takes you where you need to go.

The reality is obviously a lot more complicated than that. Like a car, the real estate industry consists of a lot of moving parts between buyers, sellers, settlement companies, mortgage lenders, etc. The list goes on… Finding a house on the internet and buying it the next day simply doesn’t happen. When your car breaks down, you take it to a mechanic to get it fixed. When looking to sell your home or buy a new one, you should look toward the experts.

A great real estate agent has seen a lot of houses and been to a lot of home inspections. In my career, I have personally attended well over a hundred home inspections. My time spent with the home inspector is not idle, either; I follow him around and ask questions on behalf of my clients. This means that I now have enough applicable knowledge to guide my clients in their home purchase and can give them a good base to make their home-buying decision.

With today’s market as it is, many home buyers are making offers that are not contingent on a home inspection. Often this means that I save my clients money in the long run because I can help steer them away from homes with real problems. I can usually tell if floors have hardwood underneath carpet. I keep an eye out for signs of unwanted water in the house, whether or not there are visible foundational issues. There are so many more things that I can point out when we are walking through a home.

Obviously, I am not a licensed inspector and I always advise my clients to have a home inspection (usually prior to even making an offer), but I can often help them avoid red flags that they would not have noticed on their own. This way they avoid making an offer on a home and paying $500-$600 on an inspection to learn that they do not want to purchase the house after all.

Accessibility of Staff

Another aspect of a full-service brokerages is that they employ a staff, including a managing broker, marketing directors, office managers and accountants. What this means is that you have more experts invested in helping you find your dream home or selling the house you already live in.

You only get one first impression with your future buyer so it is important to make a good one. Marketing materials from design experts will do that for you. For my business, in order to allow me to be more responsive to my clients, I have hired assistants to help me with paperwork, social media and various other tasks so that I can spend my time “out in the field” so to speak, meeting with clients and answering their questions. Agents who work on a discounted commission are not able to use all of the options I have because they are trying to do it alone.

This leads me to my last point.

Available Resources

Because I work with a full-service brokerage, my clients have access to a wider range of resources. McEnearney has deals with various companies to provide services to all of our clients. One of them is RealScout. This is a search platform similar to Zillow in style, but personally tailored to my buyer clients. It allows my clients to adjust their search, see properties that are coming soon, and interact directly with me via the platform so that they can tell me which properties they are interested in seeing.

For my seller clients, the wide network I have created of vendors and handymen allows them to get their home market ready in a shorter amount of time at a smaller cost. Nowadays, staging, professional photographs and small remodels are essential tools in getting top dollar for your home. Without the advice of an expert, you could be costing yourself thousands of dollars in the long run.

If you have the choice, why not choose the expert? They have the knowledge, staff, and resources to help make your next real estate transaction smoother.

Jean Beatty is a licensed real estate agent in VA, MD, and DC with McEnearney Associates Realtors® 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.

Take a look at our website for all of our listings available throughout Washington, D.C., Maryland, and Virginia.

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