Military Appreciation Monday

Supports

Neighbors Foundation

- Come join us at The Old Brogue in Great Falls on February 27^th for this month’s MAM event in support of the Neighbors Foundation.  All you have to do is show up and eat a great meal.  Myself and my co-sponsors will each donate a 10 percent match of whatever you spend on dinner.  In November, 220% of the receipts were donated to the  group Stop Soldier Suicide.

110 N. Garfield St.

Arlington, Va

Offered at $1.595 million

This fabulous custom built Craftsman style home is located in the Lyon Park area of Arlington.  Only minutes from DC and within walking distance of Clarendon Metro stop.  Highlights of the home include a TRUE front porch with more than ample space to entertain.  The interior details leave nothing to be desired including solid six panel doors w/Baldwin crystal knobs, a 15′ X 19′ family room, main level office, plantation shutters and two kitchenettes.  The main kitchen includes Cherry Cabinetry/granite countertops and GE Monogram Stainless appliances. The beautifully landscaped yard with custom designed hardscape is perfect for those outdoor barbeques. 

CHECK OUT THE VIRTUAL TOUR BY CLICKING ON THE PHOTO

For the past 2+ years, we have been hearing that housing starts are down. In the shallow way in which our media reports things, this has been presented as something less than desirable. Although not an economist, for the same 2+ years, I have been saying that this is actually a very good thing for the long term health of both our housing market and the U.S. economy in general. Builders and investors got carried away with home construction during 2004 and 2005. They ended up putting way to much inventory into the market place than was needed. We are just now entering into a period where there is beginning to be housing shortages (in certain markets). This in turn has caused rents to increase. This is very much the case in parts of Fairfax and Arlington Counties.

The June 20th issue of the Economist contains an article entitled: “Will housing save America’s economy?” that is discussing the fact that there is a large pent up demand for new housing. To read the full Article, click on the link: Economist Article. Hope you find this of interest.

Offered at $1,900,000

This fabulous Craftsman style home is located within minutes of DC. The elegant dining room is perfect for those formal occasions. The main level kitchen/family room and the lower level club room with bar and fabulous home theater provide a more casual venue. The kitchen features granite countertops and maple cabinetry with Subzero refrigerator, Viking range, Thermador wall oven and microwave, and Bosch dishwasher. The lower level bar area includes a refrigerator, ice-maker, oversized wine chiller and Bosch dishwasher.

Five Reasons You Should Sell Your House TODAY!

Selling your house in today’s market can be extremely difficult.  It is for that reason that every seller should take advantage of each and every opportunity that appears.  Each fall, such an opportunity presents itself.  This fall, that opportunity may be just too good to pass up.

Below are five reasons you should consider pricing your house to sell in the next 90 days.  Meet with your real estate agent and mortgage professional today and see whether it is the right move for you and your family.

1. Entering this time of year, the buyers are more serious.

We all realize that buyers are not quick to pull the trigger on the purchase of a home today.  There is no sense of urgency with the supply of eligible properties at all time highs.  However, at this time of year, the ‘lookers’ are at the stores doing their holiday shopping.  The home buyers left in the market are serious and are more apt to make a purchasing decision.  Less showings – but to more motivated purchasers.

2. If you are moving up, you can save thousands.

The Chicago Tribune stated in an article last week that sellers who want to ‘trade up’ should act now:

It could be a bigger house, different neighborhood or a better school district, but it comes with a higher price tag. Do the math; this might be the right time.

A home that was once worth $300,000 may now be worth $240,000 in a market where prices have fallen 20 percent.  Wow, you think, the seller is taking a bath.  But that seller may also be a prospective buyer who wants a house that once was valued at $400,000. With an equivalent market drop and a realistic listing price, that house may now sell for $320,000.  So, in effect, the person is losing $60,000 on the sale of one home but coming out ahead $20,000 on the purchase of another.

Keep in mind the spread may be even greater.  There’s a smaller pool of potential buyers for more expensive homes, so sellers may be more willing to cut their price to get a deal done.

3. Interest rates just fell again – to 4.19%.

Professor Karl E. Case, the founder of the Case Shiller Pricing Index in an article in the New York Times last month actually did the math for us:

Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833 … housing has perhaps never been a better bargain.

4. You beat the rush of inventory that is coming next year.

Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. As an example, here is the number of listings available for sale in each of those months in 2010.

-  January – 3,277,000

-  February – 3,531,000

-  March – 3,626,000

-  April – 4,029,000

You won’t have to worry about this increasing competition if you sell now.

5. You have less ‘discounted’ inventory with which to compete.

This year, sellers of non-distressed properties have been given an early holiday present. With banks declaring a suspension on the sale of many distressed properties (foreclosures), there has been a large supply of discounted properties removed from competition.  No one knows how long this self imposed moratorium will last.  However, while it does, every homeowner has a better chance of selling their property.

Bottom Line

If you are looking to sell in the near future, there may not be a more opportune time than this fall. Serious buyers, great move-up deals and less competition from foreclosures creates the perfect selling situation. Don’t miss it!

As I have been saying (and writing about) during the past two years, our local real estate market will likely be the first to return to normalcy.  This is based on the fact that our local economy continues to be a fairly strong once.  A recent Washington Post Article entitled, “In Throes of Recession, D.C. Stands Apart”.  I have also been warning that we may well see a spike up in prices for both first time home buyers and move up buyers.  This due to what I believe will be a severe lack of new homes coming into the local inventory.  Many first time buyers have been looking at foreclosures as a means of getting into the market.  This is beginning to wane as those opportunities become less and less.  While the number of foreclosures currently at 179 for Fairfax County may seem high, a total of  225 sold in October alone in 2009 compared to only 113 for September 2010.  If you or someone you know is contemplating a purchase in the near term, I would suggest they consider doing so during the next three to four months.  I fully believe that once our spring market kicks in, we may well see a spike in prices as the inventory gets eaten up quickly.  This has already begun to happen with homes located inside the beltway in Virginia with homes receiving multiple offers and in some cases offers that include escalation addenda.   We also have record level interest rates for 30 fixed mortgages.

While nationally, the real estate market continues to barely limp along, locally we have been quickly moving towards a greater balance between buyers and sellers.  This, of course, depends on where you are considering buying or selling.  The general feeling among my co-workers has been that the closer to the beltway, the stronger the market.  There have been repeated stories of buyers paying more than asking price for homes located inside the beltway.  While out with some clients on Tuesday, they told of friends who had withdrawn their offer on a home in Mclean once they learned that one of the three other offers included an escalation addendum stating that they would pay $5,000 more than the highest offer.  Anyone familiar with the market during the 2003-2005 period may recall that this was very much the norm at that time.  I have been saying for the past year that Northern Virginia may well be headed for a severe shortage in housing in the not too distant future.  We have slowly been edging towards this potential shortage since builders have essentially stopped construction on new homes.  This despite the fact that Northern Virginia continues to grow in population.

Whether you are considering selling or buying a home, you really do need to remain focused on the critical do’s and don’ts highlighted in a recent Rismedia article entitled:  Be-Smart:  Dos and Don’ts for Home Sellers and Buyers.

James Gaudiosi with Wells Fargo just informed me that the first time home buyer tax credit is extended for military and certain other federal employees serving outside the U.S.  Myself and I would have to believe most Realtors were not aware of this stipulation in the tax credit legislation.  Please see below for the specifics.

Members of the U.S. military and certain other U.S. federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.

In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community. This relief applies where a home is sold or stops being the taxpayer’s principal residence after Dec. 31, 2008, in connection with government orders received by the individual (or the individual’s spouse) for qualified official extended duty service. The credit is still allowable even if this happens during the year of purchase. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer’s principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.

If you know of anyone whom meets the above criteria and would appreciate the level of support provided by myself and the Bob Nelson Team, please give me a call or drop an e-mail.  I will be more than happy to help them out.

A native of upstate New York and a long time resident of the Boston, MA area, Tim Heil came to Great Falls, Virginia in the spring of 1998 while employed as a National Sales Manager for Lucent Technologies. After retiring from Lucent in 2001, he began work as a teacher in the Fairfax County school system teaching Civics and History at the middle and high school levels. He also was a Lacrosse coach for 4 years at Langley High school.

In 2008, Tim started his new career in real estate and has sold homes throughout Northern Virginia and as far south as Stafford County. He specializes in single-family detached homes and townhouses. This former teacher truly enjoys assisting first time homebuyers with: (a.) The home selection and contract process (b.) Helping them understand the complexities of obtaining a mortgage and (c.) Ultimately guiding them through myriad details leading to a successful home settlement. As a member of the Bob Nelson Team, Tim takes particular pride in what we have been doing to help our servicemen and women in their need to find both short-term and permanent homes in the northern Virginia region. We all feel privileged to provide any and all assistance to the members of the U.S. armed services.

Tim recently gained certification in selling “distressed properties” and  would be glad to assist anyone who might be contemplating buying or selling a home under a Short Sale arrangement.

On the personal side, Tim lives in Great Falls with his wife Susan, who is a director at Ernst and Young LLC located in Tysons Corner.  The Heils  have two children, Lily and Gordon. Both children went through the Fairfax County School System and are now attending James Madison University and the University of Mary Washington, respectively. Tim and his wife are members of St. Francis church in Great Falls and the family continues to maintain an active role in the northern Virginia community.

After working for another real estate firm for some time, Tim decided to join the Bob Nelson Team at Keller Williams Realty in August of 2009.  After serious consideration, he made this switch with the firm belief that this will enable him to best serve the interest of all his current and prospective clients. Please feel free to contact Tim at Tim@BobNelsonTeam.com and learn how the Bob Nelson Team difference will make your real estate transactions a pleasurable experience. And Oh by the Way… we are never too busy for your referrals.