Archive for the 'Sellers' Category
This Just In: VA Supreme Court To Northern Virginia: No New Taxes!!
February 29th, 2008 Categories: Around Arlington County, Local Real Esate Sales Numbers & Things, Outside The Beltway, Sellers
Today the Virginia Supreme Court ruled that the Northern Virginia Transportation Authority is unconstitutional. You can read the entire decision here.
The NVTA was created by the Virginia General Assembly earlier this year, to levy taxes for Northern Virginia transportation projects. I wrote about these increases in more detail back on July.
In an unanimous opinion, the court said that legislators improperly delegated taxing powers to the unelected members of the NVTA.
This decisions affects the recent increase in the grantors/transfer tax homeowners pay when they sell their homes, in addition to some other taxes that were increased in in January to help pay for the $300 million needed in bonds to finance planned transportation projects.
It’s still unclear what happens next. It’s also unclear whether people who have paid the higher grantor tax will be refunded. If you fall into this category, contact your state representative or your title company for more information. As of this afternoon – no one really knows.
But late this afternoon, Arlington County released a press release urging the Virginia General Assembly to “act quickly” to fund the project already planned.
In Arlington, these project are:
- Rosslyn Metro station access improvements
- Columbia Pike streetcar
- Crystal City/Potomac Yard transit improvements
- Columbia Pike improvements
- Re-alignment of existing roadway on Wilson Blvd
- Old Dominion Drive multi-modal improvements
- Lee Highway at Harrison Street improvements
More broadly, the other major Northern Virginia projects impacted by this decision are:
$28M for improvements to the Fairfax County Parkway
$15M to widen the Prince William Parkway from four lanes to six lanes between Hoadly Road & Old Bridge Road
$11M for improves bus service between the Braddock Road metro stop in Alexandria and the Crystal City/Potomac Yard corridor.
What’s not been said here is that Metro-to-Dulles project will have even more problems to deal with as the projects struggles to get started. Once again, the Northern Virginia commuter is left stranded by its government in Richmond.
People who relocate here from other parts of the country always ask me why there is no metro extending to areas where people really live in affordable neighborhoods. I always tell them– it’s because the capital of Virginia is in Richmond. And don’t you ever forget that.
| Discussion: 2 Comments »
Arlington County Plans to Raise Your Property Tax: Time To Have Your Say
February 27th, 2008 Categories: Around Arlington County, Local Real Esate Sales Numbers & Things, Sellers
Mark your calendars for public hearing at the county.
WHEN: March 27, 2008 (Budget) March 29, 2008 (Tax rate)
TIME: 7 PM, scheduled (could be sooner if other agenda items end quickly)
WHERE: Room 307 #1 Courthouse Plaza, 2100 Clarendon BLVD.
What Are The County’s Plan:
1. Your Arlington 2008 real estate tax assessment increases 3.7% from your 2007 tax assessment.
2. Raise your tax rate to .838 per $100 of assessed value. A 6.2% increase over the 2007 tax rate of .789 per $100.
What Does This Mean To You?
Your real estate property tax is made of of two parts. The first is the value of your home (your tax assessment) which varies widely in a county made up of single family homes, townhomes and condo homes. The second, is the rate at which the county taxes that assessed value. Your property taxes is the major source of the local government’s revenue stream.
If the county goes forward to raise these rates, your 2008 property taxes will be going up. If you plan to attend the meeting & want to have a say, you’ll have to sign up before hand. Here are the county’s procedures on how to do that. You can even register online here. If you have any further questions: call the County Clerk’s office at 703–228–3130.
Copy of proposed resolution fixing real estate tax rate for CY 2008 is on file and available for review in Office of Clerk to County Board, Room 300, #1 Courthouse Plaza, 2100 Clarendon Boulevard, weekdays between 8 a.m. and 5 p.m. A copy of the county’s proposed budget- which is driving this tax increase can also be found on the county’s web site.
The Local Governments’ Dirty Little Secret
Most of the local municipalities in the area will be raising local real estate taxes in 2008. Many homeowners wonder how that can happen when they are seeing their neighbor’s home for sale sit on the market and ultimately sell for much less than they would have a few years ago and every night the news report about this falling real estate market.
Well– one of the residual effects of the current real estate market is that the local governments are getting less tax revenue. Every time there is a “short sale” property on the market in your neighborhood, that is one less home the local government will be able to tax. And every time that house for sale cuts its price, that is less tax money the local government will collect to support it’s local services.
Even if the local government cuts its budget, it will need to make up for that lost tax revenue somewhere- and that somewhere is mostly from the other homeowners who think that this down-turn in the real estate market is not about them. Because, after all, they are responsible and pay their mortgage on time and every month.
The local government loved the last real estate market when home prices where raising at 15–20% every year. It was a time when homeowners found their tax bill rise just as quickly. The local governments all found a way to use that money. Now it’s hard to stop spending that money.
The other dirty little secret is that most of the counties inside the beltway have shown a rise in average sales price of property. That’s right– a rise. We have such a spotty market– it changes zip code to zip code. Some zip code have seen increase, while others have seen decreases. But…on average, we have seen prices rise.
What’s a homeowner to do?
Our taxes increase in sellers market, our taxes increase in a buyers market. Maybe it is better to rent! Oh wait– rents have gone up more than 30% since 2004. Someone has to pay for a landlord’s tax increase.
| Discussion: 1 Comment »
Freddie Mac Reaches Out
December 14th, 2007 Categories: Mortgages & Loans, Real Estate News, Sellers
It’s still too early to tell if the president’s compromise for the sub-prime mortgage “crisis” will have an impact on the recent increase of short sale properties. But I’m glad to see that Freddie Mac is starting to get the word out about mortgage fraud.
Thanks to Teresa Boardman and her great St. Paul Real Estate Blog for getting the word out. I’m adding it here as a public service announcement. I hope my other real estate blog buddies will add it to their sites to spread the word.
Before you sign anything– take the paperwork to a lawyer for review. Don’t be in a rush to sign anything. Don’t feel pressured into signing ANYTHING. Bring the paperwork to a lawyer. Maybe you think you can’t afford a lawyer– if you are in such a position, please contact a legal aid society. They may be able to help.
When we are in crisis and feel overwhelmed looking at foreclosure- we reach out to anyone who says they can help. Don’t be afraid to talk to your lender. Remember– they don’t want to own your home.
But, if you are behind on your mortgage and don’t know where to turn, call the National Foreclosure Hotline’s toll free number for help:
1–888–995–HOPE
Related Posts:
Bush’s Rate Freeze: An Early Christmas Present or Coal in Your Stocking?
| Discussion: 13 Comments »
Bush’s Rate Freeze: An Early Christmas Present or Coal in Your Stocking?
December 6th, 2007 Categories: Buyers, Mortgages & Loans, Real Estate News, Sellers
President Bush plans to announce, today, a compromise policy to freeze interest rates for some sub-prime mortgages for a period of 5 years.
Expect an afternoon joint press conference with the Treasury Department and members of the mortgage industry that negotiated this deal.
While the exact terms of the plans have not been officially announced, the Internet in buzzing with most of the plan’s details.
Here is what I could find:
- The plan is aimed at homeowners who are making payments on time at lower introductory mortgage rates but cannot afford a higher adjusted rate;
- The plan would apply to borrowers with loans made at the start of 2005 through July 30 2007 with rates that are scheduled to rise between Jan. 1, 2008, and July 31, 2010;
- The program would only be available for owner-occupied homes;
- Borrowers whose credit scores are below 660 out of a possible 850 and haven’t risen by 10 percent since the loan was sold will be given priority. Those with scores above 660 will be more closely scrutinized to determine whether they are eligible or must continue making payments under existing terms, said the person.
Why am I skeptical?
“Hi. I’m from the government and I’m here to help.”
- It’s always tricky when the government gets involved with the natural free market. While there are many people in the mortgage industry that are begging for a bail-out program– it may be a bandaid for a hemorrhage;
- It’s going to lead to confusion out there in the short term, many new home buyers are going to wait, once again, to see what happens to the market;
- Many of these “short sale” properties are coming off the market;
- Housing prices may actually rise again in the spring. We may be back to a sellers market;
- People who are going to take advantage of this plan SHOULD BE negotiating with their mortgage lender a solid affordable rate for a 30 year mortgage– but will instead, do nothing, ride out this five-year waiting period and will be in the same position as they are now;
- People with good credit scores (i.e, above 660), but will still have problems meeting their newer mortgage payments are going to up in arms;
- It’s still uncertain what this will do to interest rates for new loans. They will have to stay low. Interest rates are the single most important thing regular people consider when deciding to buy. (They don’t realize that prices go up when this actually happens.)
I’m not an economist so I don’t really know the short-term or long-term impact this is going to have the real estate market in our area. I’m interested to see the reaction today after the plan is officially announced.
One thing is certain: There is a presidential election coming so anything is possible.
I’d like to hear from you, what do you think of this new plan?
| Discussion: 12 Comments »
3Q07 Arlington Sales: 1,831 Reasons Why Arlington Beats the National Trend
November 20th, 2007 Categories: Around Arlington County, Ballston, Buyers, Clarendon, Columbia Pike, Courthouse, Crystal City, East Falls Church, Local Real Esate Sales Numbers & Things, Nauck, Pentagon City, Real Estate News, Rossyln, Sellers, Shirlington, Virginia Square
I haven’t been known to publish much Arlington real estate sales data on this blog. Mostly because I’m still testing the best way to present it. So bear with me while I give you some numbers. Sooner or later I’ll find a format that I like.
And don’t worry– I’m not going to list 1,831 lines of data. But– you know what that number is? It’s a way to get your attention. NVAR released it’s 3Q07 sales data. They publish all sorts of interesting and not so interesting stuff. It depends on your point of view. If you want to see it all– by county for the metropolitan area, by zip code, I encourage you to visit their website to get your number fix.
But, if you don’t have the time and want to know the Arlington sales for 3Q07, stick around.
Note– these numbers does not discriminate between condos, townhomes and single family homes.
1,831 – the number of homes still on the market 9.30.07 – the last day of the quarter.
45 – the average number of days on the market for all Arlington homes sold in the third quarter of 2007.
$571,900 - the average sales price for homes sold in Arlington.
95.9% is the average amount of money a person got in their sold price when compared to their original list price.
11.1% – the average increase– yes, I said increase, in the sales prices for Arlington homes sold in 3Q07 when compared to the 3Q06.
Now, these numbers are put together by economists employed by the Realtors Association. So you would expect a certain spin. Well, the data doesn’t spin. Sometimes my head spins when I have to look at all this data- but the data, in itself, doesn’t spin.
What does have spin– after all, we are in Washington, DC, where everything has spin; where the term spin doctor originated; where people make a very good business out of being Spin Drs, but I digress. What does have spin: the economists’ opinion. And what is their spin? That on a scale of 1–5 where 1 is a total buyer’s market and 5 is a total seller’s market, Arlington is a 3. Yes - it’s right in the middle.
I don’t depend on an economist’s opinion to tell me how the Arlington real estate market is running. After all– I’m in the middle of the market everyday. I know how I feel about the market. So I look at the data– toss is around in my head. Then I agree or disagree.
This month I agree.
Here’s why:
- I’ve been busy all year with people interested in buying Arlington real estate;
- All my appraisals for my sales have come in OVER the sales price;
- I have competed– yes competed– with other buyer agents for the same listing;
- Arlington unemployment is still under 2% (1.9% to be exact). That’s considered a worker’s shortage. So people are moving here with new jobs.
I spend a good amount of time trying to make this chart look pretty and fancy and use colors that match my blog. I just have to post it here. It is all the Arlington zip codes and the percent change of sales of 3Q07 sales when compared to 3Q06 sales.
This chart says that all the zip codes in Arlington, except for Shirlington, have seen an increase in the average sales price when you compare 3Q07 to 3Q06. Why Shirlington? After all– I write about Shirlington all the time and what a great place it is to live. Well I don’t have the answer for that right now- but I’m going to look a little deeper into it. I suspect it may have something to do with Fairlington sales, which make up the largest part of the sales.
Just in case you can’t read the chart- here are the data points:
- 22201: 11.79%
- 22202: 2.9%
- 22203: 2.72%
- 22204: 2.39%
- 22205: 12.65%
- 22206: -4.23%
- 22207: 17.26%
- 22209: 50.76%
- 22213: 3.65%
So– if you are waiting for the prices to drop in Arlington, maybe Arlington isn’t for you. Maybe you aren’t ready to buy. Maybe it’s a lot of things.
But I can tell you this– it isn’t because the real estate market is bad in Arlington. The data doesn’t lie.
| Discussion: 8 Comments »
It Ain’t All Bad. A Historical View of Interest Rates
November 5th, 2007 Categories: Buyers, Mortgages & Loans, Real Estate News, Sellers
At least once a week my broker forwards an email to all her agents from the head of Prosperity Mortgage. In case you don’t know, Prosperity Mortgage Virginia is a joint venture between Wells Fargo and Long & Foster. It isn’t Wells Fargo- but uses mainly Wells Fargo products, in addition to other products.
Ok- with that disclosure out of the way, I wanted to talk about interest rates. Because, well quite frankly, that’s the first thing that people ask with they start looking for a home.
“
What are interest rates?” I think people ask that question because they don’t know enough to ask anything else. Buying a mortgage is more than just considering an interest rate. It’s the big picture of how much are you paying now to live where you are, what are housing pricing doing, how do you want to live your life?
Interest rates are not static, they change and often. They trend and they fluctuate.
What Is A Trend?
A trend is something that happens over time. For instance, if you look at my chart, you will see that between 1983 and 1993 interest rates clearly trended down. It’s no coincidence that during this time short-term ARM products became popular. It’s easy to see the trend when you are looking back over time. It’s not as easy when you are in the middle of a
trend like today.
What Is A Fluctuation?
A fluctuation is a data point in a trend that can go up or down and often considered a random movement. If you look at that same time period 1983–1993, you will see that, although interest rates trended downward, not all data points were less than the one before. For example, in 1993, interest rates averaged 7.31% over the entire year, and then jumped in 1994 to 8.38%.
Interest Rates Trend Year-To-Year, but Fluctuate Month-to-Month
Mortgage interest rates are seasonal. They have high points & low points during the year. It’s easy to think of it this way: the colder the weather the lower the interest rates. Why is that? Because people don’t like to buy a new home or move in the colder months. Ok so maybe that’s not a scientific explanation- but I speak from experience.
If we have a warm winter, real estate numbers will be up. If we have a cold winter with snow or ice storms, real estate numbers will be down. August, everyone goes on vacation, so people do something else than look for homes.
You want to panic and cry that the bottom is falling out of the real estate market– ok–
that’s your opinion. But you are looking at this market as a snap shot, I do it everyday.
No one has a crystal ball. Predicting interest rates is no different that prediction the stock market. One thing is for certain, over time you are always ahead.
If you are making your decision based only on what you read in the newspaper or seeing on TV, maybe you are just finding an excuse not to buy a home- that’s ok. It’s your life and money. But if you are serious about becoming a home owner, call or email me or Peter Blizniak or Harsh Patel- both great loan officers. Everyone’s situation is different. I’m not shy in telling people, based on their situation, it just may be better for them to wait.
| Discussion: 3 Comments »
A Week in the Life of A Busy Realtor
October 21st, 2007 Categories: Buyers, Real Estate News, Sellers, The Road Less Taken
It’s mid-October and business should be winding down for the year. But it’s not. That’s not a complaint– trust me. Real Estate is a seasonal business and you work when it’s there. This year, despite the media reports– there has always been business.
It was a crazy week for me which started off with a flat tire. Flat tires are never fun. And when a Realtor’s car is out of commission– we’re practically out of work or at least side-lined. Of course– my new tires- or what felt like new tires, really turned out to be THREE years old- so my road-side assistance expired. Without going into details- the tire was fixed by Tuesday morning and my AAA membership- which had just expired was also renewed. Time flies when you’re in the real estate business.
Most people think that Realtors only work on weekends and we slack off during the week. That’s hardly the case. We work with people anytime they’re available and spend our week checking on listings, previewing property, visiting new construction, talking to loan officers about the mortgage market, and researching questions for clients. Before you know it, it’s Thursday and you’re scheduling your weekend of work. Whether you are showing property to buyers or planning a Sunday open house for your listings– the weekend time slots are quickly filled.
This week I was showing property every night after my clients get off work. I will show property on any day of the week– I am very flexible for my clients. I only have one rule– I won’t show property in the dark. I know that sounds silly- but not only it is difficult to find a property in the dark, there are added safety issues and you can’t see the light in a home or condo. This is a important factor in buying a home, whether you realize it or not. No one likes to live in a dark home. In the summer I don’t mind working until 8–9 o’clock- but come the fall, my day it cut short to 7pm.
One night it was the Eclipse– which has some great views and is still selling new construction.
Another night, the North Hampton West in Alexandria off Route 7– another great building, but a tricky location.
We also stopped by to see what was going on with the Parkside in Alexandria and the upcoming auction.
Then there was the West Village of Shirlington– sales are still brisk there.
I was also previewing some single family homes in Aurora Hills for another client. Let’s not forget my continuing education class, putting some advertising together for one of my listings and responding to inquiries from people about available rentals, my listings, new listings on the market and how to fix a washing machine. And sometime during the week- the leaves starting changing. Yeah, I noticed.
I will find some time to tell you what a great market this is to buy, but if you can’t wait, just email me, I’ll be sure to respond.
| Discussion: 6 Comments »
Good Fences Makes Good Neighbors
September 5th, 2007 Categories: Around the City of Alexandria, Buyers, Condos, Sellers, Shirlington
They are putting a new fence up in Windgate. I live in Windgate. It’s been 15 years now and I don’t think this fence has ever been replaced. So it’s a good thing that we’re getting a new one. It’s even better that I don’t have to pay a special assessment to do it.
The fence stretched from Windgate III to the back of the property where Windgate II resides. It’s taken four months to get two condo boards to approve this one project– so I hope we don’t have to do it again for another 20 years.
One day last spring after one of the few heavy rains we experienced this year, the fence came down. It seemed that no one was paying attention to it, that it needed some attention and care and just fell down.
Getting everyones attention.
Of course, only part of it came down– the one near my townhouse. The fence separates us from the Arlington County Yard. Arlington County tries to be a good neighbor– we don’t hear trucks coming and going all night, they finally got their mulch pile under control after many meetings with their neighbors. But that was a long time ago. We complained, they listened and fixed the problem. I have no real complaints about Arlington County’s maintenance yard being our neighbor. I do have a huge complaint that they don’t see it as their responsibility to have a fence separating our condo community from their maintenance yard. Instead– putting up that fence is our cost. But putting up this fence has kept Arlington County a good neighbor. So its all good.
As I came home every night last week, I watched the progress of this fence. It got me thinking about this fence, how it’s needed, how it creates boundaries even though we know what those boundaries are and we have no dispute with our neighbor.
Real Estate Agents Make Good Fences
It made me think that sometimes as agents we are fences, creating boundaries to separate out the emotion of selling or buying property. When we work agent-to-agent– we help the buyer and seller stay good neighbors through the process of selling a home.
I was working on a deal last week– one that could have been very stressful for everyone involved. Instead, because the agents saw the ultimate goal here was to sell a property to someone who wanted to buy it, we were able to work through issues with relocation companies, a seller two time-zones away, closing dates less than 30 days, and trying to get it all agreed to before a long holiday weekend. Late Friday, we had a deal.
I couldn’t help but think what would have happened if the buyer wasn’t represented with a buyer’s agent. There were issues that came up during the negotiations that would have confused, frustrated and angered a buyer working on their own. I’m glad my clients had me as their agent. They are a nice couple who will be getting married soon. They were open to my advice and trusted what I was telling them and weren’t afraid to ask questions. They didn’t give up. They continued to counter until we found the seller’s sweet spot. And while the listing agent didn’t and couldn’t tell us what that number was, she keep on telling us to counter with another offer.
So I’m glad we were there to create the boundary between the buyer and the seller and make the sale of this condo in Alexandria a possibility.
Related Posts:
5 Reasons to Use a Buyer’s Agent When Purchasing New Construction
FAQ #3: What is a Buyer’s Agent & Why Should I Hire One?
| Discussion: 1 Comment »
Selling Your Home in Virginia Is Going To Get More Expensive
July 16th, 2007 Categories: Commuting, Local Real Esate Sales Numbers & Things, Real Estate News, Sellers
Last week the Northern Virginia Transportation Authority (NVTA) voted to increase seven taxes in Northern Virginia to raise $300 million in tax revenues for local transportation projects.
The most important tax for residents selling their home is an increase in the Grantor’s Tax from $1 per $1,000 of your sales price to $5 per $1,000 of your sales price. The other taxes relate to vehicle registration, new car tax and various taxes on cars. Here are the all tax increases:
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40 cents per $100 increase in the real estate Grantor’s tax
2 percent increase in the rental car tax
2 percent increase in the hotel/motel occupancy tax
$10 increase in the vehicle safety inspection fee
1 percent initial vehicle registration fee (for new car purchases or those moving into the region)
5 percent sales tax on auto repairs
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$10 regional auto registration fee
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This new tax is slated to take effect January 1, 2008. It will be challenged in court– so stay tuned!
What is the Grantor’s Tax?
The Grantor’s Tax or Transfer Tax is the tax a seller pays to the county at closing. It currently is $1/$1,000 of the sales price of your home. For the average Arlington home– $739,000 the tax will increase from $739 to $3,695. It is a one time tax and only paid when you sell your home.
Why Did NVTA Raise the Tax?
Governor Kaine, as part of his legislative agenda, promoted a new transportation bill – the first in 21 years. The 21 year debate continued in the Virginia General Assembly on whether to increase taxes to raise funding for transportation projects. With most of the debate coming from the delegates outside the areas where transportation are critical (i.e, Northern Virginia and the Hampton Roads area) the bill was once again doomed. As a compromise, the General Assembly passed authority to the NVTA to raise local taxes for their own road projects. Board members from Loudon County and Manassas are questioning the General Assembly’s authority to pass its ability to raise taxes to the NVTA and may be taking it to court.
What Is the NVTA?
The NVTA was created as part of the transportation plan passed by the General Assembly and signed into law by Gov. Kaine. It is a 14–member panel made up of nine elected officials from the Northern Virginia jurisdiction, two members appointed by the House of Delegates, one appointed the Senate and two by the governor.
Arlington County Board Member Christopher Zimmerman is Arlington’s designated official on the panel and it’s chairman.
The purpose of this panel is to identify transportation projects in the Northern Virginia region and raise up to $300M/yr in tax revenue to fund its project. The idea here is causation taxing– tax the people who are living with the problem. Only they should pay for the issue– not the people in the whole state. Maybe its time for Northern Virginia to follow the lead from West Virginia and split from Richmond?
Good News/Bad News
The good news is that the politicians in Richmond have moved forward in addressing the issue of our congested roads in Northern Virginia. I commend Governor Kaine for working out a compromise that our past governors didn’t have the backbone to do.
The bad news is that only the local area is paying for it. We here in Northern Virginia are so suffocated with the traffic gridlock that we are almost grateful our elected officials are finally going to do something that most of us are willing to accept this extra tax burden while the rest of the state’s residents escape any changes. The traffic in Northern Virginia effects everything we do– our whole quality of life. The NVTA has managed to fine a way to raise $300M in tax revenue without raising daily taxes like the sales tax, gas tax or income tax.
Where is the Money Going?
$300 million is a lot of money. The large projects sited to by funded with this money is short. But it’s a start:
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- $28M for improvements to the Fairfax County Parkway
- $15M to widen the Prince William Parkway from four lanes to six lanes between Hoadly Road & Old Bridge Road
- $11M for improves bus service between the Braddock Road metro stop in Alexandria and the Crystal City/Potomac Yard corridor
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I am a big fan of mass transit– and if the politicians don’t focus on increasing the metro line or the VRE– our transportation issues will continue no matter how wide our road are.
What Does This Mean to Me?
If you are selling your home in Northern Virginia– you can save some money if you close before January 1, 2008. It’s important to price is aggressively to sell before the end of the year.
If you are buying a home in Northern Virginia– and can close before January 1, 2008– it’s a negotiating tool for offer.
This isn’t over– so stay tuned.
| Discussion: 1 Comment »