Real Estate and Reston, VA: October 2007

In Northern Virginia we have seen a decided slow down in sales.  Things will sell, if prepared and priced properly, but not necessarily on the Seller's time line. 

I think that WHEN the market turns around, it will be in large part due to the first time buyer.  The way I see it, when you have listings at the top of the market sitting for months on end, it is due to the listings a tier below sitting, too.  Those listings are sitting because the listings in the starter-detached home market or the large townhouse market are not selling.  It goes all the way down the food chain to the vacant condo.

If the first time buyer gets back in the market, suddenly you will see some of the condominiums and small townhouses sell. That will free up the sellers to buy up to the next size home.  This cycle continues with a series of move-up purchases until the top-tier listings begin to move.

The Real Estate industry, and the mortgage industry, can facilitate the recovery by focusing on these buyers. They are the least confident buyers, often with no experience, and can be very gratifying to assist with a purchase. 

My question, just like yours, is where are the First Time Buyers and how do we get them back in the market? There are great programs available with good terms.  I am not being overly optimistic when I say that I really believe this is a great time to buy.  If you are a first time buyer, please don't hesitate to contact a Real Estate or Mortgage professional to find out how these programs can help you. I hate to hear that home ownership is down when there are so many great homes avaialbe at great terms.

A year or so ago, I bought this great new alarm clock that never needs setting.  This morning I had the luxury of sleeping in, awakening at the late hour of 8:45 am.  I had to pick my daughter up 40 minutes away at 10:00 am.  I went downstairs to browse the Sunday paper and have a  cup of coffee. Imagine my shock when I glanced up at the clock and instead of being 9:00 am it was 10:00 am!  Of course, you have figured out what happened...my really smart alarm clock adjusted for the end of Day Light Savings Time--only this year it takes place in November (the first Sunday in November, to be exact). The bad news, I was really late to pick up my daughter, the good news...wow, did I sleep in!

So before you hit the pillow tonight, double check the time on your alarm clock and make sure that it is not automatically setting itself to reflect the end of Day Light Savings Time---a week early!

There are on-line tools available that can help a prospective buyer evaluate a neighborhood. These include school websites, police departments, community websites, just to name a few.

I advise my buyer clients to take it a little further than the research they can do on-line.  If they need to commute, I advise them to show up at the forecasted time and do the commute.  If they need to be at the office by 8:30 am and think the new neighborhood will allow a 30 minute commute, I suggest they get here early one morning and simulate the drive.  This helps them to determine if they are being realistic--both about the commute and the house!  That evening reverse the commute...sometimes start times are staggered more than end-times and a commute that is fine in the morning can be awful in the afternoon.

If they do, or do not, want a lot of children in the neighborhood I suggest they spend some time around school dismissal time.  School bus drop offs are a great indicator of how many kids live in the neighborhood.

There is no substitute for personal observation. Even if you find the house in the middle of a weekday afternoon,  make sure to recommend that they see the neighborhood on a weekend.  During the week when adults are working and children are in school it is really difficult to gage anything at all about the people who live there.  For someone who wants shelter only, this may not be important, but I find that my clients often hope to forge neighborhood connections.  Dropping by offers them an opportunity to find out how friendly the neighborhood is going to be. It can also be a great opportunity to talk to the neighbors and get more information than you will be able to provide them on a listing sheet.

I realize that any of these things, particularly the discovery of a bad commute, could kill a deal.  But at the end of the day, I am committed to helping my clients find the house that BEST suits them!

Every day we are bombarded with stories both about the rebound in the housing market and the horrors that yet await us. As a real estate professional, I wade through these stories, comparing them with what I know to be true about the consumers in my market.  I look at my local employment and job creation numbers and I make a determination about how to answer when I am inevitably asked, "how's the market?" 

The problem as I see is that most consumers have neither the interest, nor the patience, to wade through and evaluate all of the news and speculation that is out there (most catch an occasional news story or article). As a result, the are petrified!  I have seen/heard more than one expert tell them they would be stupid to buy right now.  Why? Prices are down and interest rates are down. That sounds like a good scenario to buy as far as I am concerned!

I read a report today that dealt with my own market, the Washington D.C./Suburban Virginia area. This report  shows that job creation is up, unemployment is down, Listings are up and Contracts are down (specifically in Fairfax County, other counties had statistics that were specific to their counties). The report indicated that buyers were out there and they were interested in purchasing homes.  There was no conclusion as to what would get them to make a purhcase. I followed this report with a story from MSN that called the housing market a "horror" and estimated that it will take 10 years to recover.  Obviously, a huge contrast between the two sources.

I realize that we all have to make a living (reporters included), but how about some responsible, well-researched, thoughtful articles?  It would be fair to present some facts and confess that you really can't predict the future.  Why scare people into immobility about their largest personal investment? SOMETIMES PEOPLE JUST NEED A NEW HOUSE!  I am not saying people should proceed without caution, but isn't that always true when you spend that much money?

The National Association of Realtors has been accused of being overly optimistic.  I think if you really look at what they are saying, they are making an effort not to be negative while at the same time reminding people that their house is more than just an investment.

Finally, every market is different, so those who are writing about the general "real estate" market are not doing anyone any favors...each area has its own pros and cons to deal with and "general" articles should be so vague as to really be pretty light reading!

P.S. It would be great if writers could refrain from using words like 'horror' in their housing articles!  I am sure it generated a lot of hits, but it was an unfair way to characterize the real estate market!

Sometimes we all feel overwhelmed with the things we MUST do...leaving little time for the things that we SHOULD do.  I have been trying to improve my little piece of the world taking baby steps and thought I would share some easy ways that you can make a difference in your town or community. The easiest way is, of course, to give money. When the finances don't allow, or if you just want to be more hands-on, here are some ideas.

1. Give Blood!  There is never enough blood supply for all of those who need it. I find the American Red Cross makes it very easy and it is only an hour out of my day every couple of months.
2. Donate your time to a local organization.  It doesn't have to be philanthropic (although it could be).  Your help is needed at schools, senior centers, libraries, Children's sports teams.  Be aware, many of these organizations will require a TB test and may even do a background check.
3. Speak at a Local Career Fair.  It doesn't matter what you do to earn your living, students would like to hear about it.  Imagine being a 12 year old and hearing that someone was a "Program Manager."  We all know what that means (I think), but they have no idea.  Contact your local Middle Schools, High Schools and even Elementary Schools. If they have a Career Fair, they will be thrilled to have your help!
4. Recycle.Our family has always recycled, but I am trying to drive our efforts up a notch by encouraging more than just soda cans.  What about shampoos bottles (the act of carrying them downstairs has somehow excused us all from this effort) and the the cardboard boxes that personal care products come in?  We shred anything with our name and address on it and then put all the shredding into a clear plastic bag for paper recycling--we used to just throw it out.  If you area does not actively recycle, how about trying to get a program started?
5. Walk More. Next time you need to deposit something at the bank or drop something at the post office, take a walk!  Who cares if it is a mile (or two, or three)?  Don't you remember walking everywhere when you were a kid?  This one is a 2-fer since besides reducing your carbon footprint, it could count as your daily exercise.
6. Vote.If you don't like the way things are going in your area, speak up!  Unless we all make our voices heard, a small minority of people decide the way things will be.  Make sure you don't ignore this very important right (and privilege).

These are just a couple of ideas.  Think about things that are important to you and find a way to contribute!  I would love to hear about your suggestions for other easy ways to make a difference.

This weekend I had an opportunity to view local homes that were placed on the Reston Home Tour here in Virginia, by their owners. The homes were lovely and my husband and I really enjoyed the opportunity to see them. 

It was a little awkward, however, when at two of the homes the owners were present at the property.  I felt, just like I do when I hold an open house, that the owners should have left the homes. The first time it happened I was a little uncomfortable when I realized that one of the "docents" was really the owner.  I had to mentally review my previous  comments to my husband  about the property...I am pretty sure I had only been complimentary, but people need to realize that not everyone shares their vision (and taste).  Of the two homes where the owners were present, one property had the owners serving as docents (sort of undercover) and at the other, they immediately introduced themselves (and in fairness to them, we slipped in just before the event ended). My preference was for the home where they introduced themselves; at least at that home I knew to expect them! 

It is likely that most of us don't have homes that warrant being displayed in this fashion, but if you choose to participate in this type of event, I would recommend leaving the property. Trust those folks who are in charge, and those of us who have paid for the privilege of seeing your home, to take care of it and treat it respectfully.  I would say the same for a real estate open house--and I do!

By the way, congratulations to the members of the Reston Historic Trust who sponsored this event.  You all did a wonderful job!