A Tale of Two Markets

The famous opening line of A Tale of Two Cities by Charles Dickens is:  It was the best of times, it was the worst of times. The residential real estate market for McLean and Great Falls in 2009 has a similar theme, depending on the price range.  I shall now tell “A Tale of Two Markets” and my opening line is:  It is the best of times in McLean and Great Falls for homes priced under $1.25 million and it is the worst of times for those priced above.

In McLean and Great Falls the overall number of transactions went up in 2009 by 14.1% over 2008.  However, the significance of “A Tale of Two Markets” is evident when broken down by price range. The number of sales under $1.25 million is up by 25.9% which is the “best of times”, and the number of sales over $1.25 million is down by 18% which is the “worst of times”.

In my view, the reason the upper bracket market (anything over $1.25 million) has suffered so much in 2009 is twofold.  First is the issue of mortgage funding.  It is perhaps obvious and may go without saying, but everyone is not independently wealthy and can pay cash for a home in McLean or Great Falls.  Most home purchasers have to obtain financing from a lender.  In this market area, the upper limit for Conforming loans from Freddie Mac and Fannie Mae for 2009 (and continuing for 2010) is $729,750.  If you add the typical buyers’ down payment of 20% to the maximum conforming loan amount of $729,750 you get about $900,000 as the purchasing power for the majority of buyers in the market.  To purchase anything over $900,000 means that the buyer would have to come up with a larger down payment and/or pay higher jumbo rates.  Other mortgage options are only now coming out allowing for financing up to $1 million, with 20% down, yielding maximum purchasing power of typically $1.25 million in 2009.  Even today, the best mortgage option is 15% down payment up to a purchase price of $1.47 million.  Any purchase price above that usually requires a larger cash down payment.  Further, once the loan is greater than $1 million, the interest on the portion of the loan over $1 million is not tax deductible (always check with your tax advisor for specifics).

The second issue is supply.   There are fundamentally fewer buyers for the upper bracket homes, therefore that supply hasn’t been absorbed and continues to not be absorbed by the market.  Thus, inventory continues to build.  Basic economics underscores that when there is more supply than demand, prices go down.

From year end data as illustrated by the chart below, homes that would have sold for over $3 million in 2008, probably sold between $2 to $3 million in order to find a buyer.  The homes that sold between $2 and $3 million in 2008 moved to the lower end of that range or sold below $2 million in order to be able to sell.  And down it went.

What is my prediction for 2010?  I believe that it will be more of the same.  While I feel that we are at the bottom of the trough in the under $1.25 Million market in McLean and Great Falls, I anticipate that we will not recover the prices of the peak of the market until at least 2012 or 2013, if even then.

One of the themes of A Tale of Two Cities is the plight of the peasantry under the aristocracy which led up to the revolution.  “A Tale of Two Markets” has a similar theme in my view.  Housing prices escalated in 2004-2006 to levels that even the average affluent person couldn’t afford.   The fundamental reality is that not everyone is independently wealthy.  As long as the majority of the buyers in the market are dependent on obtaining financing at the Conforming loan level, the upper bracket real estate market will be obtainable to only a very few and is dependent on what financing the banks can offer.  When there is a limited pool of qualified buyers in one portion of the market, that market segment is forced to shrink in order to survive.  It shrinks by lowering the price to what the market will bear.        

McLean & Great Falls Market Analysis of Homes Sales: A Tale of Two Markets
	(Based on Final Closed Price)
	>$3 Mil.	$2-3 Mil.	$1.25-2 Mil		$750k-$1.25 Mil	<$750k
2008
22101	16	20	60		111	144
22102	10	18	25		39	169
22066	7	8	47		72	41
	Total: 33	Total: 46	Total: 132		Total: 222	Total: 354
	Combined Total: 211				Combined Total: 576
			All Sales 2008: 787
2009
22101	3	29	52		142	184
22102	7	7	22		51	204
22066	3	12	38		80	64
	Total: 13	Total: 48	Total: 112		Total: 273	Total: 452
	Combined Total: 173				Combined Total: 725
			All Sales 2009: 898

Karen Briscoe

2009 Award Winners at Keller Williams Realty McLean/Great Falls

We’re happy to announce the award winners for 2009 for our office at Keller Williams Realty in McLean, VA!

Rookie of the Year - Laura Rubinchuk

Top Listing Team - The Belt Team

Top Listing Individual - Tom Francis

Top Overall Individual - Katie Wethman

Culture Awards: Ron Cathell, Derek Blain, Jennifer Klaussen, Diane Miller, Tom Francis, Eileen Aronovitch, Tara Christianson, Margaret Stewart, Pat Brosnan, Tara Miller, and Karen Briscoe

Congratulations to all of our winners!

McLean, VA Real Estate Market Update – December 2009

The McLean Virginia real estate market has been very interesting of late. Average sale prices are down just a bit from 2008 (6% for 22101 and 2 % for 22102), while the median sale price has skyrocketed from 2008 (32% for 22101 and 67% for 22102). Let’s look at the numbers:

22101

Average Net Sale Price for a Detached House: $1,085,030 after 141 Days on the Market
Range: $325,000 – $2,300,000

Average Net Sale Price for a Townhouse: $844,125 after 98 Days on the Market
Range: $549,000 – $1,050,000

22102

Average Net Sale Price for a Detached House: $1,030,428 after 166 Days on the Market
Range: $449,000 – $1,820,000

Average Net Sale Price for a Townhouse: $670,140 after 24 Days on the Market
Range: $575,000 – $806,700

Average Net Sale Price for a 1 Bedroom Condo: $260,000 after 84 Days on the Market

Average Net Sale Price for a 2 Bedroom Condo: $363,256 after 56 Days on the Market

Market Share Info: total of 64 properties sold; 7 were short sales and 3 were bank-owned…making 15.6% of the properties in distress.

The other interesting note on the market in McLean is that the days on the market for 22101 is up 26% from 2008, while 22102 has seen an 18% decline.

Laura Rubinchuk

State of the Northern Virginia & DC Real Estate Market: January 2010

Spring has sprung early as far as the real estate market is concerned.  Buyers are out and circling, anxiously waiting for inventory to hit.  I know I’m starting to sound like a broken record, but the lack of ‘good’ inventory continues to be the story in real estate circles. Check out our market data graphs:  Arlington is down to 4 months of inventory and Northern Virginia is down to just 3 months.  That’s the lowest level of inventory since August 2005. Remember August 2005?  When there were bidding wars, and properties sold for tens of thousands above asking??   Looking at the graphs, you can see that the number of contracts stays roughly the same each month (and has for many years)…so it’s not the buyers that are driving market changes…it’s the inventory.

The implication for buyers is very important: 1) get started early because it may take you a lot longer than you think to find the house you want and 2) when you finally do find one that meets your needs, jump on it!

As a result, sellers, if you’re considering selling, NOW is the time to get the house into shape and on the market!  There are buyers out there and I recommend you list sooner than later. As this article notes, the economy and tax incentives have upset the seasonal trend of a ’spring’ market.  Please contact us if you would like to discuss how to best prepare and price your home for the market.

Changes were announced on Wednesday for FHA loans, which currently account for 30% of all purchase loans. The upfront mortgage insurance premium was increased from 1.75% to 2.25% of the loan value.  While most FHA borrowers can continue to make down payments of as little as 3.5 percent when they take out a loan, those with a credit score of less than 580 will have to make a down payment of at least 10 percent, possibly starting in the early summer. The agency will reduce seller concessions from 6 percent to 3 percent of the home’s value, in line with the industry norm, this summer.  They’re also tightening the screws (again) on condos.

I’ve scheduled a First Time Home Buyer class for January 26, 2010 at Arlington Central Library.  If you or someone you know is thinking of buying, please contact me to register.  The session is free, but space is limited and registration is required.  The next class is scheduled for March 3.

Katie Wethman

The Anatomy of the Short Sale Part 1

I have been writing about short sales (primarily to STAY AWAY, STAY FAR FAR AWAY) for several years now.  The honest truth is that according to RealtyTrac, Virginia (as of Q3 2009) was ranked 16th in the nation in foreclosure rate with 1 in every 196 homes being affected - still below the national average of 1 in every 136 homes.  It’s time for me to admit that foreclosures are a part of our future.

What’s the difference between a foreclosure and a short sale?  The process of a short sale is the homeowner taking action to sell their home prior to the bank foreclosure and negotiating with the bank (or bankS) to accept less than what is owed and hopefully to forgive the remaining debt.  The moment the bank auctions that property on the courthouse steps, it has been foreclosed on and the bank is now the owner.

So having recently resigning myself to their existence long term, I decided I’d better get more knowledgeable about the process so that I may skillfully guide sellers and buyers through this process.  I went yesterday to a seminar presented by an amazing group who are taking the bull by the horns around here in Northern Virginia and really helping the process along – more on that later.  For the purposes of this post, being the first, I’d like to start at the very beginning.  I think it’s very very critical to understand how and where this starts.

Most people who are in trouble, headed towards the inevitable outcome of either short sale or foreclosure, come to the realization that they need help WAY too late.  It often begins  with an event:

• Hours are cut
• A job is lost
• 2nd job is eliminated
• overtime is cut
• pending divorce
• spouse loses their job
• unexpected medical bills
• new baby

the list actually goes on and on and on…  There are a myriad of reasons why people all over the country are facing difficult times right now – MANY of which are beyond their control.  Our economy is in trouble and yes, while we may be on the cusp of seeingsome recovery, for some people, i’s not immediate enough and they are left with few options.  Does this feeling sound familiar?  If so, read on.

In the timeline of a troubled homeowner, the very first step is “uh oh, what am I gonna do?”  Rarely at this point does a homeowner translate this “bump in the road” into “OH NO, I’M FACING FORECLOSURE” or “I’m gonna lose my house.”  The reality is, if this is where you are, or someone you know, this is EXACTLY the right time to seek help.  But where?  Well, let’s see, most people first turn to their lender – hearing stories of loan modification (which we’ll discuss in a future post) or just to get a few months break…  guess what…  your lender wants you to pay, pay now, pay pay pay – they are not concerned with your situation, your circumstances.  They will threaten you, have you believing all sorts of BAD things and you will end that conversation feeling afraid, vulnerable and without options.  Not much help, I say…

I think it’s important to understand how this little seed grows into a full blown short sale or foreclosure, so for now, we’ll end Part 1 right there – the very beginning.  Next time, we’ll delve into the self preservation that occurs along the next phase.

Remember, if you feel things are closing in – before you make ONE MORE PAYMENT or begin a process of robbing Peter to pay Paul (my mother’s phrase, thanks Mom), give me a call.  I can share what I’ve learned and see if I can help.

Stay tuned….

Jennifer Klaussen

To Continue Reading Parts 2-4, please visit www.TheArlingtonDirt.com

Market Update – December 2009/January 2010

Happy New Year!

It’s time to wrap up 2009 with our monthly real estate update.

Here’s a quick summary:

• Year-end housing inventory in our region was at its lowest since March 2006.

• Pending sales for December 2009 were still way up over December 2008.

• First-time homebuyers can still take advantage of the extended $8,000 First-Time Homebuyer Tax Credit. The extension covers contracts through April 30, 2010. (Income limits/restrictions apply). It remains to be seen whether the effect of the extension lasts & “trickles up” – or if it has a short-term effect.
• The same can be said for the Repeat Homebuyer tax credit of $6,500 that was authorized in November and also applies to contracts through April 30th.

• Finally, what we said last month is still the case today: We are seeing vastly different markets – not just by price range, but by town and even by neighborhood. Some areas are experiencing bidding wars & escalation clauses – while other areas have the same homes languishing on the market month after month after month. We are often asked, “Are we currently in a Buyers Market or a Sellers Market?” and the answer is “It depends.” What does it depend on? Factors like property type (for example – contemporary versus colonial . . .or condo versus single family), price range, school district, proximity to Metro, new construction or resale, proximity to DC and more. If you are considering buying or selling a home, make sure you contact us for an in-depth and targeted answer to this question. Northern Virginia used to be much more homogenous as a market; but in today’s market we are finding it much more diverse.

And now here is detailed market info for December. (Our most requested area for detailed information is Vienna Oakton. See below for other areas).

VIENNA: Dec 09 Dec 08

# New Listings                                    41                      70

# Under Contract                                42                      37

# Sold/Settled                                    58                      55

Average Days on Market

for December Solds                            70 days 111 days

Highest Price Sale                            $6,900,000            $1,701,437

OAKTON: Dec 09 Dec 08

# New Listings                                     20                     15

# Under Contract                                 17                      8

# Sold/Settled                                     17                     15

Average Days on Market

for December Solds                            62 days 69  days

Highest Price Sale                            $3,430,000          $1,760,000

What Sold (ie- went to settlement) in Oakton in December 2009?

Under $500,000 (none were single family homes):

• 3179 Summit Sq #2-B8 – $240,000 (no subsidy)
• 10059 Oakton Terrace Rd #59 – $262,000 (no subsidy)
• 10248 Appalachian Cir – $290,000 (less a $8,700 subsidy = $281,300 Net)
• 9946 Capperton Dr – $295,000 (no subsidy)
• 10309 Granite Creek Ln – $330,000 (less a $10,000 subsidy = $320,000 Net)
• 2960 Borge St – $370,000 (no subsidy)
• 10319 Emerald Rock Dr – $393,500 (less a $500 subsidy = $393,000 Net)
• 10228 Baltusrol Ct – $479,000 (no subsidy)

$500,000 to $775,000:

• 2919 Bree Hill Rd – $582,000 (less a $600 subsidy = $581,400 Net)
• 3112 Castleton Ct – $625,000 (less a $10,000 subsidy = $615,000 Net)
• 10168 Castlewood Ln – $620,000 (no subsidy) BELT TEAM SALE
• 10400 Adel Rd – $640,000 (less a $10,000 subsidy = $630,000 Net)
• 3304 Saddlestone Ct – $774,500 (no subsidy)

$775,000 to $999,000:

• 3433 Valewood Dr – $790,000 (no subsidy)
• 10313 Lynnhaven Pl – $897,000 (less a $5,000 subsidy = $892,000 Net)

$1,000,000 and up:

• 11110 Sweetwood Ln – $1,237,500 (no subsidy)
• 11215 Stuart Mill Rd – $3,430,000 (no subsidy)

What Sold (ie- went to settlement) in Vienna in December 2009?

Under $500,000:

• 214 Locust St SE #117 – $199,900 (no subsidy)
• 2765 Centerboro Way #347 – $220,000 (no subsidy)
• 2965 Cashel Ln – $325,000 (less a $7,446 subsidy = $317,554 Net)
• 3018 Sugar Ln – $342,000 (less a $2,250 subsidy = $339,750 Net)
• 2720 Bellforest Ct #305 – $366,000 (less a $6,000 subsidy = $360,000 Net)
• 3004 Sugar Ln – $365,000 (less a $3,500 subsidy = $361,500 Net)
• 1516 Northern Neck Dr #101 – $365,000 (less a $150 subsidy = $364,850 Net)
• 2651 Park Tower Dr #04/106 – $369,000 (no subsidy)
• 8334 Wesleyan St – $370,000 (no subsidy)
• 8612 Acorn Cir – $402,000 (less a $10,000 subsidy = $392,000 Net)
• 115 Tapawingo Rd – $405,000 (less a $6,075 subsidy = $398,925 Net)
• 8223 Goldstream Ct – $400,000 (no subsidy)
• 309 Plum St SW – $425,000 (less a $10,000 subsidy = $415,000 Net)
• 2940 Waterford Ct – $415,000 (no subsidy)
• 703 Hunter Ct SW – $420,000 (no subsidy)
• 305 Tapawingo Rd SW – $435,000 (no subsidy)
• 508 Beulah Rd NE – $455,000 (less a $6,300 subsidy = $448,700 Net)
• 1892 Beulah Rd – $470,700 (less a $7,500 subsidy = $463,200 Net)
• 2862 Sutton Oaks Ln – $481,500 (less a $5,000 subsidy = $476,500 Net)
• 1813 Prelude Dr – $485,000 (less a $5,000 subsidy = $480,000 Net)
• 413 Course St SE – $485,000 (no subsidy)

$500,000 to $775,000:

• 8045 Merry Oaks Ct – $520,000 (no subsidy)
• 2633 Skidmore Cir – $525,000 (no subsidy)
• 8884 Ashgrove House Ln – $550,000 (less a $16,500 subsidy = $533,500 Net)
• 2016 Madrillon Springs Ct – $541,500 (no subsidy)
• 9022 Dellwood Dr – $554,900 (less a $10,000 subsidy = $544,900 Net)
• 10319 Mountington Ct – $549,900 (less a $5,000 subsidy = $544,900 Net)
• 2041 Pieris Ct – $552,000 (no subsidy)
• 141 Roland Ct SW – $600,000 (no subsidy)
• 9908 Montclair Ct – $600,000 (no subsidy)
• 131 Shepherdson Ln NE – $611,000 (no subsidy)
• 8044 Reserve Way #53 – $643,069 (less a $7,000 subsidy = $636,069 Net)
• 2107 Sheriff Ct – $670,000 (less a $11,000 subsidy = $659,000 Net)
• 9504 Lagersfield Ct – $685,000 (no subsidy)
• 1605 Lozano Dr – $685,000 (less a $5,000 subsidy – $680,000 Net)
• 8955 Miller Ln – $710,000 (less a 10,000 subsidy = $700,000 Net)
• 1697 Abbey Oak Dr – $705,000 (no subsidy)
• 9508 Spinet Ct – $710,000 (no subsidy)
• 2232 Carmichael Dr – $720,000 (less a $10,000 subsidy = $710,000 Net)
• 1421 Filene Ct – $744,000 (no subsidy)
• 9927 Tartan Ct – $745,000 (no subsidy)
• 2834 Hill Rd – $766,000 (less a $7,000 subsidy = $759,000 Net)
• 8037 Reserve Way – $760,000 (no subsidy)

$775,000 to $999,000:

• 2376 Jawed Pl – $818,000 (less a $5,000 subsidy = $813,000 Net)
• 8507 Ashgrove Plantation Cir – $825,000 (no subsidy)
• 2063 Madrillon Rd – $845,000 (less a $875 subsidy = $844,125 Net)
• 305 East St – $850,000 (no subsidy)
• 10502 Hunting Crest ln – $865,000 (no subsidy)
• 347 Orchard St NW – $870,000 (no subsidy)
• 1965 Yearling Ct – $875,000 (no subsidy)
• 909 Potterton Cir SW – $891,000 (no subsidy)

$1,000,000 and up:

• 921 Park St SE – $1,015,000 (no subsidy)
• 1303 Meadow Glen – $1,035,000 (no subsidy)
• 1629 Beulah Rd – $1,365,000 (no subsidy)
• 9520 Francis Young Ln – $1,405,910 (less a $27,000 subsidy = $1,378,910 Net) BELT TEAM LISTING
• 10221 Wendover Dr – $1,675,000 (no subsidy)
• 10411 Wickens Rd – $1,950,000 (no subsidy)
• 9133 Old Courthouse Rd – $6,900,000 (no subsidy)

RESTON: Dec 09 Dec 08

# New Listings                                    68                      87

# Under Contract                                78                      68

# Sold/Settled                                    80                      83

Average Days on Market

for December Solds                             40 days 65 days

Highest Price Sale                            $1,095,000          $725,000

MCLEAN: Dec 09 Dec 08

# New Listings                                    18                       63

# Under Contract                                36                       35

# Sold/Settled                                    58                       53

Average Days on Market

for December Solds                            119 days 98 days

Highest Price Sale                            $2,300,000          $4,125,000

GREAT FALLS: Dec 09 Dec 08

# New Listings                                     8                        26

# Under Contract                                 6                        11

# Sold/Settled                                    16                       13

Average Days on Market

for December Solds                            166 days 147 days

Highest Price Sale                            $2,650,000          $3,625,000

For more information on any of these sales (or if you would like further information on other areas), or if you are thinking of buying or selling a home, please contact The Belt Team at (703) 242-3975. The Belt Team has sold more homes in Northern Virginia than almost any other Realtor since 1972 and we also offer our expertise in areas ranging from Loudoun County to Arlington to Silver Spring! It would be our pleasure to help make your real estate dreams come true!

And don’t forget to check out our blog regularly for hyper-local real estate information in between these market updates!

Regards,

Terry, Pauline, Mary Jane, Kevin, Gail, Christy, Jerry & Tara

The Belt Team, Keller Williams Realty

#1 Real Estate Team in Vienna/Oakton since 1972
#1 Real Estate Team, Keller Williams – State of Virginia

Direct Line: 703-242-3975
Email: Sales@TheBeltTeam.com

Life Cycle of Shelter

As a Realtor I have witnessed first hand a form of life cycle that people fall into in terms of choice of shelter.  The young person after completing their education and moving from the parental home typically seeks out apartment/condominium or town home living.  This selection of housing is usually in a more urban environment near shopping, restaurants, nightlife and transportation.  Access to employment centers is greater in an urban environment, so commute time is usually minimized.  Further many of these communities offer amenities that people in this stage of life desire, such as:  workout room, swimming pool and club room areas.  In exchange for the convenience, the trade off is often dwelling square footage and land.  Over the years I have sold a number of properties to people in this stage of life and they all have these similar qualities in common.

As one matures in their professional career and marry, many start to think about getting pets and having children.  It is interesting how many young people and couples get a dog as preparation for family life.  Some urban areas have designated dog parks in response to this phenomenon, which is interesting because most parks in cities were originally designed for family recreation.  What this stage turns to in housing choice is more interior living space and a yard!  If having children is part of the long range plan, then school consideration usually moves to the top of most people’s list.

Location is the most basic determination of value in real estate because as we all know it is the most fundamental quality of real estate since land uniquely cannot be moved.  Next in line in determination of value in my view is school quality as perceived by the public.  Thus the public school where the home is should be researched, even if one does not or will not have children in the public school system; it will more than likely have a significant effect on value for many years.

I recall working with a young couple who after marrying I assisted in purchasing a condo in the Pentagon City area of Arlington, Virginia.  They were happy there for a few years until they were expecting their first child and needed more space, so I helped them sell the condo and purchase a townhouse in the Ballston area of Arlington.  In my view the townhouse did not really provide any more space and there was a deck but not any yard.  Because of this I urged them to look instead at buying a single-family detached home with a small yard.  They resisted my counsel, not ready yet to give up the life style they loved of living in an urban area, walking to shopping and restaurants and metro.

Lo and behold, it was but 2 years later when that same young couple called me and said that they were totally out of space, what with the stroller, the high chair, all the toys and other child paraphernalia.  They also explained that their son needed a yard to kick a ball in and space to learn to ride a tricycle.  They even sheepishly admitted that they should have listened to me because to sell their townhouse after only living in it 2 years in a time of no market appreciation meant that they didn’t break even on the costs of home ownership.  So goes the next stage of life, which reflects the expansion of the family unit.

Typically at this stage, most people are moving into their peak earning years, thus they have the income to qualify for what will probably be the largest home purchase they will make.  If not at this point, it will probably occur sometime during the next 7-10 years as one enters middle age.  This is when many people move up and out to the suburbs, in order to gain the most living space and land for the money.  Often times this is when people are in the sandwich stage, caring for children and aging parents – this may require the conversion of a basement or other space in the home for a separate apartment for elderly relatives.

We are now at the top of the bell curve in terms of size and expense for the primary residence.  What happens on the downhill side of the bell curve, in my experience typically is the reverse of the stages it took to get to the top.  Next in line is the gradual occurrence of the nest emptying out.  As children go off to college or their own lives, then oftentimes a couple will look at each other and think “what do we need with all this space?”  The yard that was so much part of the family life what with the swing set and a place to kick a soccer ball around, now has become the weekend noose – requiring more work than anyone has time and/or desire to attend to.  Sometimes this stage is accelerated by the fact that one of the couple has deceased or there is a divorce, but most arrive at the juncture at some point.  Those that don’t and chose to “live in place” leave to their heirs the task of cleaning out a lifetime of possessions and memories.

Where do these empty nesters tend to go to downsize?  Into townhouse or condominium living, where there is less exterior maintenance demands, more turn-key so that they can travel and spend time with the grandchildren that are coming along.  Some move in with family members who can tend to their personal needs, some go directly from the family home into a retirement community or an assisted living facility.  It is interesting to note that community living in the later stages of life mirror those in the early stages.  Think of how dorm life compares to retirement center – social opportunities abound in both and 3 meals a day are served.

We have now come full circle in the shelter life cycle.  Do you see where you are?  If you are contemplating the next stage in the shelter life cycle, please contact the Huckaby Briscoe Group as we would be delighted to be of assistance.

Karen Briscoe

The Orchestration of a Real Estate Transaction

Earlier this month my husband and I were staying at The Breakers, the famed hotel of West Palm Beach.  One of the managers likened the coordination of the services at a hotel to that of an orchestra director.  The conductor is key to the coming together of many unique instruments playing sounds at just the right time and place in order for beautiful music to occur.  In a hotel with the rich heritage of The Breakers, it means team members making certain everything is in place at the right time.  And in a real estate transaction, it means the coordination of a myriad of details in the process of selling and buying a home, which also requires a master conductor.

That master conductor is often the Realtor.  In the marketing and selling of a home, the following are just a few of the details that the Realtor orchestrates:  photography of the property, preparing a marketing brochure, consulting with the client on improvements and/or staging, obtaining a plat from the county or homeowner, entering the property into MRIS and distributing to numerous internet websites, configuring a virtual tour, hosting a Broker’s Open with refreshments for other agents to view the home, installing a sign and lock box (if appropriate) or showing the home by appointment, having Sunday open houses if desired by the seller, advertising in newspaper and other media outlets, sending out “Just Listed” postcards to potential purchasers.  Until the property receives an offer, many of these aspects of the marketing chorus are repeated, in addition to contacting all the agents who have shown and/or previewed the home to obtain feedback and keeping the seller apprised of market conditions.

Once an offer is received, then the negotiations begin, a new verse in the orchestration analogy. Contract negotiations require an entirely other level of expertise.  A master Realtor contacts all other parties who have seen and expressed an interest in the property to see if additional offers can be generated, and or the current offer be bettered.  The Realtor works together with the agent on the other side to provide the best possible outcome for the client.

After the contract has been ratified, which is when all parties have agreed to all the terms in writing and the offer has been delivered, the next verse begins.  These are but some of the many steps that can occur:  home and radon inspections performed and agreement reached between parties; home or condo association documents obtained, delivered and acknowledged; meet the appraiser at the property to provide comparables and improvements; application made for property insurance; application and completion of all underwriting requirements for lender; wood-destroying pest (commonly known as termite) inspection completed; delivery of copies of the contract to and complete necessary paperwork for settlement company; determine if a re-issue rate is available on title policy and obtain documentation if necessary; be certain the survey and title have been ordered and all is acceptable to parties; verify that the earnest money has been deposited and the funds have cleared; coordinate septic and well inspections if applicable and repairs/replacement as necessary; coordinate the performance of any work required under the contract and agreed to by parties and provide receipts to parties; complete home warranty paperwork if applicable;  obtain a HUD-1 from the settlement company for review by all parties; coordinate the walk through inspection; and attend settlement with the client.

As you can imagine, harmony can flow from all of these efforts, or there can be great discord.  “Experience You Can Trust” has been the motto for the Huckaby Briscoe Group for many years.  In dealing with the purchase or sale of a home, which is frequently one’s largest financial asset, shouldn’t you be working with a Realtor who is a master conductor, who has the experience you can trust?   Please contact us if we can ever be of assistance in buying or selling a home.  It would be our pleasure to provide you with an experience that will be like pleasant music to your ears!

Karen Briscoe

McLean, VA Real Estate Market Update – November 2009

There were 55 properties that sold in McLean, VA in November 2009. Per usual, I have the city broken up by zip code since their markets are so different. See the number belows.

McLean – 22101 (30 properties sold)

Detached Home

Average Net Sale Price: $942,205 after 83 days on the market
Range: $425,000 – $2,202,550

Townhomes

Average Net Sale Price: $757,100 after 12 days on the market
Range: $665,000 – $849,200

McLean – 22102 (25 properties sold)

Detached Homes

Average Net Sale Price: $1,395,318 after 230 days on the market
Range: $465,000 – $3,904,500

1 Bedroom Condo

Average Net Sale Price: $260,090 after 79 days on the market

2 Bedroom Condo

Average Net Sale Price: $432,841 after 61 days on the market

Market Share Info:

22101 – there 2 short sales and 2 foreclosures (bank-owned) properties that sold, that’s 13.3% of the market in distress
22102 – there was 1 short sale and 2 foreclosures (bank-owned) properties that sold, that’s 12% of the market in distress

Here’s why we split up McLean by zip code: 22101 has an average sale price down about 48% from November 2008, and days on the market is also down by about 28%. However, 22102 has an average sale price about equal to November 2008, with 100% more units sold, and days on the market down about 30%.

Laura Rubinchuk

October Real Estate Market Update – McLean, VA 22101 and 22102

McLean VA is home to many businesses and personal residential pieces of real estate. The zip of 22101 is heavily populated with Businesses, so I’ve broken out the October statistics by zip code:

22101

Detached Houses

Average Net Sale Price: $1,496,948 after 176 DOM
Range: $513,500 – $3,500,000
Average % of List Price: 89.89%

Townhouses

Average Net Sale Price; $641,458 after 242 DOM (median was 34 days)
Range: $460,000 – $775,000
Average % of List Price: 95.77%

22102

Detached Houses

Average Net Sale Price: $2,004,667 after 426 DOM (median was 351 days)
Range: $1,025,000 – $3,668,000
Average % of List Price: 85.25%

1 Bedroom Condos

Average Net Sale Price: $213,500 after 47 DOM
Average % of List Price: 95.87%

2 Bedroom Condos

Average Net Sale Price: $321,590 after 14 DOM
Average % of List Price: 96.75%

Townhouse

Average Net Sale Price: $622,533 after 18 DOM
Range: $562,100 – $740,000
Average % of List Price: 98.41%

 

Interestingly enough, average sales price is up for October, compared to 2008 in 22101, but down in 22102. Volume and days on the market are up for both zip codes.

Of the 59 properties that sold in October, 2 were short sales, and 6 were bank-owned.

Search the current Homes For Sale in McLean VA

Laura Rubinchuk