Real Estate and Reston, VA: October 2009

I awoke to the closing of the garage door. Since I am ALWAYS the first person awake in our family (at least during the week), this was a bad sign.  A quick glance at my alarm clock told me that it was 5:35 am.  Hmmm, why was my daughter leaving so early for school? Another glance at the cable box and I realized that it was really 6:35 am.

Surprise...the alarm clock self-adjusted itself for daylight savings time--and it is not following the new rules set by Congress!!!!!

There is nothing worse than starting a Monday morning an hour behind schedule before you even get out of bed.

My alarm clock is this really great Timex T622. It has a built in CD player and MP3 hook up. It is easy to set the alarm and easy to turn off in the morning (in the dark). There are some quirky things about it, but I have learned to live with them.

But I cannot live with a clock that randomly adjusts itself!! Of course, if it was adjusting itself on the correct daylight savings time schedule, this same problem would be a great feature.  Instead, it is a really cr_ppy way to wake up on a Monday morning.

I hope the rest of the week is better....

And to add insult to injury, this is what I just heard back from Timex:

'We apologize but there is no patch available. Consumers must change clocks.

Due to new enacted government regulations, effective this year you must change the time manually, since the calendar was programmed to change according to the time DST issued by the government, it will not recognize the change after 2006. Change the zone to Hawaiin, the adjustment will only be twice.  

Press & hold the time set button until the time flash, then release it and press the ff >> or << rev buttons. '

The hallmark of a strong marketing campaign is  a slogan that sticks with you.  Honda's new marketing campaign, 'Everyone knows someone who loves a Honda,' is one such campaign. Every time I hear one of the commercials or see one of the ads, I think of people I know who have Hondas.  There is a lot of truth in the campaign; Honda owners are a loyal bunch!

I had some friends over this week for a get together. The group was all women and I co-hosted the event with two girlfriends.  During the party, no less than 2 people mentioned to me that they had an ongoing social relationship with their real estate agent. Being a Realtor, I am used to hearing these confessions; friends want to make it clear why they might use someone else for a future transaction.  I never begrudge them this relationship--I hope that my clients are equally as loyal.

The truth is that I hope all of my friends have a Realtor that they know and trust.  Of course, in a perfect world it would be me, but in this profession, a little bit of a thick skin is a necessity. If it hasn't happened to you yet, one day you will find out that a very good friend of yours bought or sold a house without even mentioning it to you.  It may sting a bit..after all, you will feel that you could have done the best job for them. At the end of the day, what is most important is that anyone who buys or sells real estate has solid representation.

I know plenty of colleagues who are very good at what they do and would provide exceptional representation for their clients. I hope that all my friends can honestly say, 'Everyone knows someone who loves their Realtor!'

And if they can't, I am always looking for new clients....

If  you are a woman of a 'certain age,' you have probably heard the fashion adage 'if you remember wearing it before you probably shouldn't wear it again.'  In case you are not familiar with this concept, examples of  it include: hip-huggers, micro-mini skirts, thigh-high boots and leggings as pants.

Like Fashion, the Real Estate industry is experiencing a resurgence/recycling of products and processes from the past. Unlike Fashion, however, the recycled Real Estate practices are worth a second look--both for Realtors and for Buyers and Sellers.

There was a time, in the not-so-long-ago-past, when buyers would almost never consider buying a home with an FHA or VA loan.  They were complicated, took a long time and were not appealing to sellers because of appraisal processes and contribution requirements. Before you object, I know there were always people who used these products, but the majority of folks bypassed them and took out more forgiving, and easier to acquire, loan combinations. Instead of a 5% down payment and an FHA loan for the balance, a buyer would likely go for an  80-15-5.  This combination would allow them to bypass Private Mortgage Insurance (or PMI) since the 2nd loan would be used to make sure that they could get their first loan to 80%. I am seeing a resurgence of these FHA and VA loans--AND the use of PMI.  The government is working to make the process easier and suddenly buyers with these loans are more appealing to sellers because of their government backing and the likelihood  that they will get to closing.  A 'better loan' that evaporates before closing is not a better loan!

Another thing that I am seeing now is Home Sale Contingencies on purchase contracts.  We are in recovery from a period where plenty of people got burned by buying a new house before selling their old house. For a while, if you sold your house without buying a new home you were likely to end up with no house at all.  Unfortunately, as the market began to unravel, many folks who bought the house before selling their old one got caught in the bursting of the real estate bubble and ended up with two houses. There were plenty of cases where people lost both homes because of this series of events.  Buyers are more conservative now.  No one wants to be left with two mortgage payments and the days of easy-to-access money for bridge loans is in the past. The Home Sale Contingency is fashionable again because it gives the buyer some assurance that they won't be left with two mortgages. Sellers need to be re-trained to accept this reality, but when the alternative is to continue holding a house you can't sell, I suspect sellers will come around.

Longer listing periods seem to have come back in to style, too. During the boom years, a 45-60 day listing period seemed more than enough time.  If you couldn't get the house under contract in a week or two and settle within 30 days, as a Realtor, you were not doing your job!  Now days, it is not uncommon to see a really nice, well priced and well maintained home on the market for 6-9 months.  In the higher brackets, a year long listing is not unheard of. Again, just a change in mind-set, but it is is changing our approach to business. We have to adjust the expectations of our sellers and do a better job of making sure they understand how critical the pricing and preparation phase of Listing their home is to the subsequent sale.

These are just a few examples of ways that the Real Estate industry is recycling practices from the past.  There are plenty of things that will never come around again (driving around to pick up keys, anyone), but some of the old-but-good practices are helping us to redefine our industry in response to that Real-estate-gone-wild period from which we are recovering.

You might not catch me in a baby-doll dress ever again, but putting together an offer using a VA loan? Absolutely!

About a month ago, I put up a post about Twitter: My Twitter Challenge To Myself . The idea was that I would make a concerted effort to Tweet on a daily basis and see if I could significantly increase my Twitter followers and drive consumers to my website and blog.

The original personal challenge was for two weeks.  It has been about four weeks.This is what I have found so far:

1. Two weeks is not enough time to make a significant change to an on-line presence
2. My Twitter followers increased from 52 to 68.  I have no idea which Tweets resulted in the most new followers. I could probably track this in a spread sheet, but it would not account for people doing general searches and coming up with my earlier Tweets and deciding to follow me.
3. It is kind of fun.
4. Visits to my Blog are up 15%.
5. Visits to my Website are up 44%

I would have to say this experiement is a success.  My objective was to drive more traffic to my website and blog.  Of course, most of my traffic contines to coninues to come directly from ActiveRain. The other two main sources of traffic to my sites are Google and Linked In.

Given the source of my web traffic, I would have to classify my Twitter efforts as part of my overall SEO and  plan for increased on-line visibility.  I don't know if, or when, I will receive business directly from Twitter, but it another way of putting my name on-line in front of an active on-line audience. Best of all, it costs me nothing and takes almost no time.

I think for now, I will keep Twittering and see where the journey takes me. If you would like to follow me: www.twitter.com/hollyweatherwax

If you would like to start 'Tweeting,' go to www.Twitter.com and open your own account. I would love to hear how it goes for you.

Two working parents and very busy kids have made our Crock-Pot a virtual family member. While we go about our daily lives, it sits in the kitchen preparing our dinner...kind of like live-in help.

I am always on the look out for fast, nutritious, Crock-Pot meals that feel like 'Good Food' rather than just sustenance (unfortunately, Crock-Pots meals can sometimes end up seeming like mush in tomato sauce).

One of our all-time favorites is loosely based on the Beef Stew recipe that came in the recipe pamphlet/cookbook with our appliance. I have adapted it to our tastes and our pantry. As I was making it this morning, I thought it would be worth sharing--it is easy, nutritious and a big hit with my family (if you double it, it can be frozen and provide an even quicker second meal!).

Beef Stew

2 lbs of Beef Stew meat, well trimmed and cut into bite-sized cubes
1/4-1/2 cup flour
1 1/2 teaspoon salt
1/2 teaspoon pepper
3 cups beef broth
1-2 teaspoons of Worcestershire sauce
1 clove of garlic (or 1 teaspoon from jar of pre-chopped)
1-2 bay leaves
1 teaspoon of Paprika
4 carrots sliced (or what is left in your bag of baby carrots)
3 potatoes diced (sweet potatoes can be substituted)
2 onions (I keep a bag of frozen onions to use when I don't have fresh in the pantry)
1 stalk of celery

After trimming and cubing meat, add to Crock-Pot. Mix flour, salt and pepper in measuring cup or small bowl.  Add to Crock-Pot. Mix well, making sure all meat is coated with flour mixture.  Add remaining ingredients (and whatever else you want to add--today I added sliced mushrooms). Mix well. Cover and cook on Low for 10-12 hours (or High for 4-6 hours).  Check occasionally toward the end of the day to make sure there is enough liquid (either water or additional broth can be added). The stew can be thickened by mixing some cornstarch with broth until creamy and adding it the stew an hour or so before serving. Stir Stew thoroughly before serving.  Serve with Bread and cheese.

This recipe is extremely forgiving. I am constantly adding additional vegetables to ramp up the nutritional value and to clean out the fridge.

I hope your family enjoys this recipe as much as mine does--and that it makes getting a quick, nutritious dinner on the table a little easier!

Any Realtor® who has been in the trenches since the beginning of the year, and has worked with Short Sales, probably understands why the Foreclosure numbers that were released today were so high. According the the numbers released today, October 15, 2009, by RealtyTrac, the Foreclosure rate increased by 5% from summer to fall. I bet many of these homes were  unsuccessfully settled Short Sales.

I was fortunate enough to be able to sit in a Broker Only Short Sale Session with Lem Marshall, Special Counsel for Virginia Association of Realtors last week.  He spent a lot of time discussing how important the time line was to the successful settlement of a Short Sale. One of the problems discussed was that often, by the time the Realtor® is called in, the Foreclosure proceedings have been steadily moving along behind the scenes. If that is the case, the homeowner is probably running out of time to complete a Short Sale before their home is even listed.

Given how difficult it was in the mid- to late- Spring to get  Short Sales approved by many of the banks, it is not a surprise to me that far too many homes have gone in to Foreclosure. While Short Sale negotiations were going on, the Foreclosure process was moving along in parallel,  just in case the Short Sale deal fell through. As many of these deals did fall through, the banks were fully prepared to go to Foreclose (even sometimes when the Short Sale process was simply delayed).  For the banks, it is simply business; make the best of a bad situation.  If one Short Sale deal falls through, there is no telling when, or if, the next one will get to close, so they opted to go forward with the Foreclosure knowing it would move fairly quickly.

If you are a home owner who is feeling like they may need to get out from under a difficult mortgage, the lesson is not to wait too long.  This is not the time to bury your head in the sand and hope everything will work out.  Even if you have only missed one payment, you may have started the ball rolling toward bank Foreclosure. Even worse, if the missed  payment was a couple of months back, the bank may be counting every payment since as  a missed payment (this will vary from bank to bank, so be sure to check directly with your lender about your situation). Once the Foreclosure process has begun, there many not be enough time to complete the Short Sales process before Foreclosure is complete.

I hope this report is the last time that we see numbers like this.  Hopefully, as homeowners  learn more about the process and banks improve their in-house processes, it will be easier for homeowners to get the help they need--without ending up in Foreclosure.

A couple of weeks ago, during the height of the buzz about Cash for Clunkers, I heard a radio broadcast  on WTOP (Washington, D.C.). In his broadcast, the announcer said that he had received many calls from people who were disparaging  the Cash For Clunkers program--calling it another 'Washington Bailout.'  One of these callers used a few choice words to describe the program, but then shared that she was eventually persuaded to trade in her old car. What convinced her? The  $4,500 the program gave her towards a new car.  The commentator's  conclusion was that for every doubter, there is a price at which they can be persuaded to change their mind. Remember, the Cash for Clunkers program had two objectives: 1) to sell more cars, 2) to try to reduce the carbon emissions from the cars on the road by getting people into more fuel efficient cars.

This got me thinking about Climate Change and whether behavior changes can be 'bought.' Let me say up front--I am a Climate Change believer.  I realize that there are many, many people who do not believe that Climate Change is the result of man's actions. I agree that there are cycles on earth and that part of what we are seeing is likely one of these cycles. But I sincerely believe that we are making it worse by our actions. But whatever you believe is the source of Climate Change, I think that most of us agree that it is happening

Above all, however, I am a pragmatist. I understand that we all have different perspectives and different backgrounds.  Part of what makes our country great is that we are all free to have out own opinions and act in a way that is aligned with our belief system. For some that means making personal choices that minimize our carbon footprint and for others it means choosing not to.

As I see it, most Americans fall into one of three categories when it comes to Climate Change:

1) Activist (willing to do what it takes to make it stop and taking action to persuade others to make changes, too),

2) Interested participant (one who understands the arguments but is not consistent in taking actions to effect change),

3) Disbeliever (enough said).

This brings me back to the Cash for Clunkers program. If,  like that program did,  we make minimizing our individual impacts on the earth palatable (easy)  and rewarding (yes, financially) we will all benefit from the impact on our environment. 

The Activist needs very little incentive to act on some of the more minor things, but might be inspired to install a geothermal heating system or solar panels if the incentives were compelling.  The Interested Participant will try to choose the solutions that have the least negative impact on our environment, but will be more  inspired, and may take their actions a step further with greater personal incentives. The Disbeliever is a harder sell; they will probably only take advantage of these incentives if they don't cost them anything (or very little) but the personal payback is high.

Guess what? There are currently programs in place that will satisfy each of these personality types!

The Energy Department website is a treasure trove of information as are the state sponsored Energy web-pages.  Some of the more interesting programs include:

1. Residential Renewable Energy Tax Credits
Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies.

2. Home Energy Efficiency Improvement Tax Credits
Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements "placed in service" starting January 1, 2009, through December 31, 2010. See EnergyStar.gov for a complete summary of energy efficiency tax credits available to consumers.

3. State Specific Energy Credits
I know that Virginia approved credits that were announced last week (Virginia State Energy Credits Link) and that Maryland has a program, too (Maryland State Energy Credits Link). If you are in another state this information is generally available by searching for the name of your state and 'energy' & 'tax credits.' 

Many states also offer Grants, that can be used for specific energy improvement projects, such as installing a Geo-Thermal Heating System or Solar Panels.

I think that Mr. Activist, Mrs. Interested Participant and even Ms.Disbeliever might be persuaded to make some changes, even minor ones, given the breadth of incentives currently being offered.  The incentives are there, the need is great for each of us to make changes; someone is going to get the cash and the tax breaks...it might as well be you!

Many of us have an extra fridge tucked in the garage storing soda, waters, beer, juice boxes, sports drinks and generally anything that doesn't fit in the kitchen refrigerator.

The one in my garage was inherited from my husband's old office. I would guess it is circa 1988.  Every once in a while it makes a pretty alarming noise, but then all is well and it goes back to purring along. I am sure that a good half of my electric bill goes to keep this thing going.

If you live in Virginia, this might be your weekend, to finally head out to the store to replace the old junker and get the new appliance you've been considering. According to the Virginia Department of Taxation website, 'Energy Star and WaterSense qualified products purchased for non-commercial use and costing $2,500 or less will be exempt from sales tax.'

This can add up, especially if you are outfitting the whole kitchen!

You may have heard about the Cash for Clunker Appliances program that is coming.  I just researched it to find out when, and if, we can expect it. According to what I found out, each State is supposed to submit a detailed plan to the Federal Government by October 15. The Fed will review it and then provide the States money to fund it. The Program should be available at the end of this year or the beginning of 2010. As with Cash for Clunkers, there will be a set amount of funds. When the money is  gone, it is gone, so if you plan to use this option, be prepared to jump on it as soon as it is announced.

So now if you live in Virginia ,you have two options to reduce the cost of getting new, energy efficient appliances. Everywhere else has at least one option, too.

What are you waiting for? Get out there and get that new washer, dryer, refrigerator, stove or dishwasher that you have been dreaming of!

As we dig out from the 'pop' of the great real estate bubble, a lot of the blame for what happened is being laid at the feet of those unethical mortgage lenders who fueled the sub-prime mortgage market. And rightfully so (disclaimer--I am NOT talking about the many wonderful lenders who have been so instrumental to building my business).

I read an article today, The Next Big Real Estate Boondoggle (click on title to read) which asks what happened to all those lenders? Since many of them were never prosecuted, are they still practicing?

According to the article, many of these shady lenders have moved into another market, the Reverse Mortgage market. While the sub-prime market lenders often preyed on less-savvy borrowers, the reverse mortgage lenders are poised to take advantage of those folks who have worked hard all their lives and built equity in their homes, the elderly. You can see how this would happen...it is like fruit ripe for the taking: there is equity in the property, there are often difficult financial situations, and you have a population that may have counted on selling their house at a certain price and time, and is now unable to do so.

I have always believed that there is a place in the market for sub-prime mortgages and I believe there is a place in the market for reverse mortgages.  I know that is not always a politically correct opinion  A new product is created when there is a need.  There are borrowers who are not great candidates on paper who will make wonderful borrowers and a subprime loan would be perfect for their situation. There are also elderly folks who would greatly benefit from the proceeds of a reverse mortgage.

In a perfect world, we would all be able to protect each other from making stupid decisions or from signing on with a corrupt lender. Unfortunately, that is not possible.

I know many wonderful, wonderful lenders who will be straight up with potential reverse mortgage candidates--and I am sure you do, too. If you are considering a Reverse Mortgage, please make sure you are dealing with a reputable lender. Be sure to ask about fees and charges and be sure that you understand exactly what the terms of the mortgage are. If you  have a relative, neighbor, or friend who might be considering a reverse mortgage, ask them if they would like some help navigating the market and finding a good lender who will help them to refinance in to the right reverse mortgage product for them.

If we learned nothing from the crash of the real estate bubble and the melt-down of the mortgage market, let's hope that we all learned the importance of reading our paperwork, researching our options and making informed decisions.

Remember, if it sounds too good to be true, it probably is!

Yesterday,  I decided that I really had to tackle cleaning out my (super sloppy) college-aged daughter's room.  When she left for school, I told her it had to be 'guest ready ' before she got in the car to leave.  Clearly, our definitions differ.  She is coming home for the weekend and I wanted to, 1) get all the junk out of there before she brought more junk home, 2) show her EXACTLY what I mean by guest ready.

Cleaning out is really just about digging in and dealing with stuff you would rather not deal with.  Honestly, I could start a small school with the amount of discarded school supplies I found in her room. I guess I should have known they were in there somewhere since every year she was the only one of my kids who was never able to reuse any supplies from the previous year.  Now I understand why...she would have had to find them first. I just figured that she lost everything (which I guess is, technically, true).

The best thing I found was a water bottle from her middle school basketball tournament (identified with fabric paint on the neoprene cover) still filled with water.  As we all know, once a child gets to high school they never again touch anything that smacks of middle school.  For that reason, I can be sure that the water that was still in the water bottle was circa 2004....lovely. And all this time I thought she left on her shelf because she had happy memories of her basketball tournament!  I guess she just couldn't be bothered to take it down to the kitchen and wash it out!

I finally got everything out of there, hauled all the trash to the outside can and ran the vacuum.  It looks great!

Of course, she comes home tomorrow. I  will enjoy 24 hours of her room being up to the standards of the rest of the house...and then I will clean it up again when she leaves on Monday (of course, I won't tell her that).  It is a small price to pay for having her home. 

Someday, she will figure out that it is easier to keep it neat than to have to go in and wrestle back control--I can only hope!