Real Estate Statistics For Northern Virginia

According to real estate statistics released by the Metropolitan Regional Information System for the Washington DC Metropolitan Area:

• Prices are showing signs of a moderate recovery:  4^th quarter prices in the metro are up from the same quarter in 2008, with the Outer jurisdictions outperforming the Core and Inner jurisdictions.  Prices will likely gain traction in 2010, as buyer and seller expectations continue to move closer to a balance, facilitating an increase in transaction volume.  This is the first time prices have risen on a trailing 12-month basis since the 4^th quarter of 2007.
• Days on market continue to decline compared to both last quarter and a year ago.  Properties in the Outer jurisdictions (Loudoun, Prince William and Frederick Counties) have experienced the sharpest decline, but across the region, time on market is at or below the region’s long-term average.
• The ratio of inventory to sales continues to decline in most jurisdictions from one year ago.  The metro-wide ratio of 5.3 months’ worth of listings is below the normal, healthy standard of 6 months, signaling that demand is beginning to outpace supply.
• The gap between buyer and seller demands is closing with the average sales price in the 4^th quarter of 2009 at 93.7% of list price, the highest share in more than two years.

For Northern Virginia Counties of Loudoun and Fairfax:

Loudoun County, VA

• In Loudoun County, VA, the average sales price in November 2009 was $379,191.  This represents a slight increase over the November 2008 average sold price of $355,235.
• Listings remained on market for an average of 47 days in this time period, compared to 91 days in November 2008.
• The total number of new listings taken for the month of November 2009 was 519.

Fairfax County, VA

• In November 2009, the total sales dollar volume was $458,672,700.  This is up from $356,719,653 in November 2008.
• Listings remained on market for an average of 48 days in this time period, compared to 95 days in November 2008.
• In Fairfax County, the average sales price in November 2009 was $412,105; an increase over the $409,082 average sales price in November 2008.

Cameron Akhavan MBA, is a Realtor and Licensed Mortgage Consultant living in Northern Virginia. “Please contact me if I can be of assistance to you or your friends with your real estate needs.” Contact Cameron or visit His Website.

Investing in Real Estate

Investing in real estate can be very rewarding, however, in order to achieve success one needs to become educated in the process and learn all the facts. Below are some guidelines to consider.

The first step is to concentrate on and become a master at a specific segment within the field. An investor is faced with many property options, from single-family dwellings to apartments and condominiums; it is best to specialize in one of these fields. Within the chosen preferred segment, an investor next needs to focus on whether they want to get into foreclosures, short sales, fixer uppers, or properties geared toward first time home-buyers or seniors, etc. By choosing one or two specific property types to invest in, one becomes well positioned to maximize future benefits.

A good investor needs to understand all the costs associated with what they are getting into. These costs include taxes, loan payments, maintenance fees and so forth. Keeping good financial records of all your activities will reduce the amount of problems you may face. A financial adviser may be helpful at first; later on you can set up your own database to follow all your finances. This step is key in your success.

Another thing to consider is a detailed research of the investment property you are contemplating, including comparisons to similar properties in the neighborhood you are working in. Factors such as proximity to shopping, good schools, crime rate, or future community development plans etc.,are other things one needs to take into careful consideration before investing in a property.

Make sure you hire a good inspector to go over your property in detail. You don’t want to find yourself having problems with the foundation, plumbing, or roof damage after you have purchased; these items will cost you dearly to get fixed.

Utility costs for the property should be taken into consideration. These are such things as water, sewer and electricity. You need to figure your monthly mortgage costs and add your utilities to find how much you should charge for the rent of your investment property. Your research of the neighborhood should then tell you if that number is realistic.

A background credit check is vital to make sure you are dealing with an honest tenant, and a security deposit will certainly be required. It is also a good idea to get a pet deposit, if your tenant has pets that could damage your property. A professional management company is a good alternative if you don’t want to deal with matters discussed above, however, they will charge you a fee for their services.

Research the current tax laws to see whether they may change in the future. Obviously the calculations you make for profitability could get adversely affected if tax laws are changing. Similarly, make sure you understand the insurance costs involved and whether those costs are set to rise in the future.

A positive cash flow is what you seek to maintain throughout the lifecycle of your investment. A real estate investment is a vehicle that can provide you with years of good income and equity, but one needs to use a systematic analytical approach to each property and research all factors involved in order to understand the risks and make a sound decision.

With the fall of real estate prices the past few years, properties in Northern Virginia have become very attractive for investment purposes. In my opinion the period we are currently in, taking into account the favorable government tax breaks being offered, will be considered the golden years of investing in years to come.

Cameron Akhavan MBA, is a Realtor and Licensed Mortgage Consultant living in Northern Virginia. “Please contact me if I can be of assistance to you or your friends with your real estate needs.” Contact Cameron or visit His Website.

Buying Foreclosures

There are many opportunities available for buyers in the foreclosure market. As of December 2009, there were over 1.5 million foreclosed homes on the market and this number is expected to grow significantly in 2010. However, homebuyers should try not to get caught in the frenzy and make rash decisions when considering one of these properties. A careful approach to this market is recommended.

The first thing to watch for is not to let yourself get involved in a bidding war on a property. Banks put their repossessed homes on the market at alluring prices for two reasons. First, they don’t want to spend any money managing and maintaining the property, so they are looking for a quick sale. Second, banks are fully aware that pricing the properties way below what is generally being offered for similar homes causes many buyers to show up bidding against each other. When the bidding gets out of hand, the bargain disappears and you are suddenly buying a property that is more expensive than its equivalent on the market. Take your time when considering a foreclosed property. If there are multiple bids, find out what they are. Have your agent work with you to set a limit for your offer.

Try to locate and establish a relationship with an asset manager at a lending institution so you can be one of the first contacted when new properties are going into foreclosure. If you get involved in a short sale contract that falls through, try to keep yourself informed on the property. If it goes into foreclosure, call the asset manger at the bank who was the decision maker for the short sale and let that person know you are still interested in the property. You may be able to get the property before it even gets listed publicly.

Find out which bank is supplying most of the inventory of foreclosed homes in your market.  Get pre-approved for a loan with the same bank, this will facilitate and speed up your approval for buying a foreclosed home with them. Also remember that a pre-approval letter does not lock you in, you can later choose to get your mortgage with another lender if they offer you a better rate.

Most foreclosed homes are in need of some repair. You will have a better chance at getting the property if you agree to purchase the home “as is” and spend some of your own money fixing the place. A good way to budget for this is to visit the home with a general contractor. Not only will an experienced contractor find problems that need fixing, they can immediately tell you how much money you would need to repair them. By reserving a budget to repair the property instead of asking the bank to do the work, you will put yourself above all those contracts coming in requiring the bank to perform some of the fix ups.

Finally, get yourself a real estate attorney to look over the contract before you sign. Banks often try to unload the property the fastest way possible and there is no time for an inexperienced buyer to go through the fine print of the contract. The fee for hiring a real estate attorney is nothing compared to the trouble you may find yourself in because you didn’t understand what you were signing.

Cameron Akhavan MBA, is a Realtor and Licensed Mortgage Consultant living in Northern Virginia. “Please contact me if I can be of assistance to you or your friends with your real estate needs.” Contact Cameron or visit His Website.

Making A Short Sale Offer

A short sale is when a homeowner wishes to sell their home below what they owe on the property. Homeowners find themselves in this kind of situation mainly because they borrowed aggressively when credit was easy and now have little or no equity in their home because property values in Northern Virginia declined anywhere from 20 to 30 percent in the past three years.

Homeowners decide to sell their house as a short sale to avoid a foreclosure, which is when their lender takes title of their home and sells it directly; a process that will ruin the homeowner’s credit. Under a short sale, the homeowners are hopeful that their lender will accept a discounted payoff to release their existing mortgage. It is important to note, just because a property is listed as a short sale and the seller accepts your offer, it does not mean the lender will accept the contract and agree to the deal.

A seller does not need to be in default on their mortgage payments for the lender to consider a short sale. A lender may accept a short sale if the seller is current on their payments but the value of the home has fallen. It is less costly and burdensome for the lending institution to have the homeowner find a buyer and sell the property at current market prices, than for them to have to auction it off in a foreclosure.

The first thing to do when interested in a short sale property is to check its public records. It is important for a detailed research to be done before you make an offer to purchase. A competent agent can help you find who is on the title, whether it is under a foreclosure notice, and the total amount owed by the homeowner to various lenders. These facts will later help to determine what price to offer for the property. Remember, two loans on a property spells more problems because the homeowner has to get an agreement for the short sale from two different institutions.

Next, you would need to hire an agent with extensive short sale experience to expedite your transaction and protect your interests. You don’t want to miss any important detail due to inexperience or find out your transaction is not going to close on time because no one has followed up on all the procedures in a timely manner.

Try to find out if the homeowners qualify for the short sale. To do so, they should have no equity in the home and be unable to pay the lender the difference between what you have offered in the contract and what they owe to their lender on their existing loan.

Once the seller accepts your offer, all the documentation has to be gathered and submitted to the lender. Make a copy of your earnest money deposit and include it in the paperwork, and be prepared to increase the amount if asked by the lending institution. In addition, have your mortgage lender write a pre-approval letter for you, so the bank knows you will qualify to buy the property. Have your agent include a copy of the comparable sales in the area as well; this further legitimizes the offer you are making. You will have to wait until the bank approves and accepts your offer, then you have a deal.

On average, in most parts of Northern Virginia, buyers have to wait three months before they hear back from the lender. Be reasonable with the timeframe you give the lender to respond, your contingency statement should allow a decent amount of time for the bank to process your offer, however, you do not want to tie yourself to the property forever either. Get the name and phone number of the person processing your offer at the lending institution, and follow-up regularly.

Furthermore, it is the lender who determines the commissions that are paid, and in many instances it may be less than what your real estate agent might expect. This could cause trouble if you have signed a buyer’s agreement with an agent and agreed to pay them a specific percentage. If they get less than what is in the contract, they may ask you to pay them the difference. Make sure the broker’s agreement you sign states that your agent would waive the difference between what is in your contract and what eventually is given by the lender.

Do not, under any circumstances, agree to waive your right to have a home inspection done. Most lenders will try all sorts of tactics to make you drop this contingency. You need to know what you are getting into, the property may be seriously damaged and in need of costly repairs. Remember why you chose to go after a short sale in the first place, to save money. Don’t let yourself fall into a trap that ends up costing you thousands of dollars. All in all, if you follow the correct procedure, short sales could be an attractive opportunity that can save you money as you purchase your future home.

Cameron Akhavan MBA, is a Realtor and Licensed Mortgage Consultant living in Northern Virginia. “Please contact me if I can be of assistance to you or your friends with your real estate needs.” Contact Cameron or visit His Website.

How Much Various Renovation Projects Cost And Payoff

Full Kitchen Remodel
Average job cost: $54,000
What will you get back? % Cost recovered: 80%
% Value at sale: $43,000

Family Room Addition
Average job cost: $74,000
What will you get back? % Cost recovered: 71%
% Value at sale: $63,000

Sunroom Addition
Average job cost: $49,000
What will you get back? % Cost recovered: 66%
% Value at sale: $32,000

Master Suite Addition
Average job cost: $94,000
What will you get back? % Cost recovered: 72%
% Value at sale: $68,000

Roof Replacement
Average job cost: $14,000
What will you get back? % Cost recovered: 73%
% Value at sale: $10,000

Finished Basement
Average job cost: $56,000
What will you get back? % Cost recovered: 78%
% Value at sale: $44,000

Bathroom Remodel
Average job cost: $13,000
What will you get back? % Cost recovered: 84%
% Value at sale: $11,000

Deck Addition
Average job cost: $15,000
What will you get back? % Cost recovered: 77%
% Value at sale: $11,000

Window Replacement Vinyl
Average job cost: $10,000
What will you get back? % Cost recovered: 84%
% Value at sale: $8,500

Source: CNN Money

Cameron Akhavan is a Realtor, Licensed Mortgage Consultant, MBA and Asset Manager living in Northern Virginia. Please contact me if I can be of assistance to you or your friends with your real estate needs. Contact Cameron or visit My Website.

How To Raise Your Credit Score

The first step in raising your credit score is to make sure what is already on your credit report is accurate, a free copy can be obtained here, or from one of the three credit reporting companies: Experian, Equifax, and TransUnion. Go over the report diligently, simple errors can bring your score down significantly. If you see an entry you don’t know about or feel is a mistake, contact the reporting agencies so they can correct the information immediately. Make sure you correct outdated addresses, closed accounts that are still listed as open, old employers listed as current, incorrect credit limit values, and late payments or charge offs that are not yours.

Start paying down your revolving debt first, it would have the most effect on your credit score; this would be your credit cards for example. The next step would be to pay off as much of your installment debt as possible, such things as your car loan for example. Always try to keep your monthly revolving debt balance within 30% of your total credit limit, abiding by this rule could lift your credit score in a short period of time. It is very important that you know your credit limits with every card company, and check the accuracy of those limits in your credit report. You can also try asking your credit card company to raise your credit limit if you have always made your payments in a timely manner; this will help lower the percentage of the balance you carry from month to month. If you have been late with one or two payments in the past, but are generally a good customer, you can write to the credit card company asking them to erase those few instances from your record; many people have been successful in the past because of the goodwill shown by credit card companies.

Creditors don’t always transmit your information to all the credit reporting agencies, this discrepancy is the reason we all have different credit scores among the three bureaus. You may have closed an account somewhere or are now in good standing with a credit card company and a credit reporting agency may not be aware of this; make sure you contact them and update your status. Calling the bureaus to correct existing information or filing a dispute does not cost you anything and will not affect your credit score.

If you payoff your credit card balance, don’t close the account, this action may affect your credit score negatively. Although you may have asked the credit card company to close your account voluntarily, it may be reported as though the card company took away your line of credit. You will then need to contact the credit bureau and inform them that the account should state “closed by consumer,” a task that may cause a few headaches. If you ever want to close a credit card, consider keeping the one you have had the longest and closing the one you have most recently received; the older your credit history, the better.

The actions mentioned above should be taken a few months before you plan on buying a home. Be careful not to engage in anything that would change your credit report during the home buying process. For example, when you have applied for financing of your future home, avoid getting a new credit card or getting a loan on a new car. Suggestions explained here should raise anyone’s credit score dramatically if your score is within the poor or mediocre category. As you move up to scores above 700, the steps outlined here will have less of an impact.

Cameron Akhavan is a Realtor, Licensed Mortgage Consultant, MBA and Asset Manager living in Northern Virginia. Please contact me if I can be of assistance to you or your friends with your real estate needs. Contact Cameron or visit My Website.

Advantages Of Listing Your House During The Holidays

Most people believe the holiday season is a period when the real estate market slows down and people spend time with their families. While this is generally true, this time of year also presents a great opportunity for sellers to list their homes. Consider the following:

During the holiday season the number of people searching for homes decrease, but those who are out there looking are the serious buyers. These folks don’t have many properties to look at and competition is less when compared to the busy spring season. Therefore, your home will stand out much more than it would if it were listed amongst all the other competitors. Consider also that in January and February when the market picks up and supply increases there will be less demand for your home, which translates into less money being offered.

Homes that look their best always sell first, what better time than the holidays to decorate your home and impress buyers. Just imagine wood burning in the fireplace, an elegant Christmas tree tastefully decorated, and colorful presents all around. Here is a great idea, simmer a pot of water with cinnamon, cloves and all spice. The wonderful aroma will last throughout the day and carry through your home. This easy method is great for odor control and there is nothing more pleasant than delicious scents coming from the kitchen. A beautiful holiday decoration could play on the buyer’s emotions and they may be more willing to pay the price you are asking.

During the holidays people are less distracted with their work and responsibilities, allowing them more time to look for a new home. In addition, the month of January is usually when new employees start their jobs; it would make sense for those transferring to your area to take care of their living arrangements before they settle in their new positions. Some buyers may also find themselves in a position to benefit from taxes by buying before the year ends.

Finally, if you sell your house during the holiday season for a better price due to lack of competition, you can then buy a better home in spring when all the competition has entered the market; in effect you have sold high and are buying low. Contrary to popular belief, the holiday season offers many opportunities for homeowners wishing to sell their property and it may be wise to consider the benefits carefully.

Cameron Akhavan is a Realtor, Licensed Mortgage Consultant, MBA and Asset Manager living in Northern Virginia. Please contact me if I can be of assistance to you or your friends with your real estate needs. Contact Cameron or visit My Website.

When Are You Ready To Buy Your First Home

Buying your first home should not be an emotional decision. You are ready to buy when financially everything you need falls into place, therefore buying a home makes financial sense. But before we get to see what factors indicate you are ready to invest in a new home, let’s look at what has been taking place in the Greater Northern Virginia real estate market the past few months.

Virginia has a robust economy and unemployment here is usually around 30% less than the national average. The inventory of new homes on the market has lately gone down, homes under $500K stay less than 40 days on the market when priced correctly, and prices for existing homes have been on the rise; market stats can be viewed here. No one can foretell the future obviously, but economists believe the real estate market in Virginia will remain stable for the near future and sales will increase in 2010. So the regional market seems to have hit bottom and recovering nicely, while interest rates are cooperating by remaining close to all time lows.

A fundamental characteristic for a successful homeowner is being able to budget expenses; money management skills are essential. Buying a new home means you will be exposed to many new expenses and your money management skills will help you budget your bills and pay them in a timely manner. To do this you need to figure out how much money you are receiving every month and where it needs to go. You should consider that most of your bills, including utility, insurance, taxes and home owner association fees, will generally increase when you buy your home; so be prepared to deal with them. If you can budget for these expenses without cutting down on amount you spend each month on your family for food, clothing and entertainment, you are ready.

Next you need to see if you have enough money for a down payment. You can put down as little as 3.5% for a home with an FHA loan, but you would need to add a modest amount of insurance premium to your mortgage payments every month. Traditionally a new homeowner will put 20% down with a conventional loan, so for every 100K you need 20K as down payment. The good news is, closing costs associated with purchasing your new home, which average 3% in Virginia, can be rolled into the loan. However, you need to budget some money for initial repair work and decorating of your new home, and don’t forget moving expenses.

A new homeowner would need a reliable, dependable source of income since buying a home is a long-term commitment. They should be able to look several years down the line and still feel comfortable with their investment in real estate. A recent homebuyer approached me a few months ago, ready to purchase a new home with a sizeable deposit. Upon closer examination we found that a significant amount of his money was made in the stock market last year. When discussing his case with the loan officer to obtain a pre-approval letter, it was discovered our buyer had made very little money in the past few years. To complicate matters further, our future home buyer also wanted to keep all his funds, besides what was needed as down payment, in the stock market so he could trade daily. Obviously this was a recipe for disaster in my view; thank god he was denied a loan by the bank, it probably saved him many sleepless nights.

An emergency fund needs to be set into place to help ease any unfortunate event that may occur to you in the future. The fund should be enough to keep you going for six months, incase something happens to your health or employment. Don’t forget that you have a commitment to pay those mortgage payments every month and there is no way around that. You want to control your debt. It is a good idea not to assume any new debt unless you can easily afford it after a good examination of your monthly financial status. A good rule of thumb, what is used by most lending institutions, is the 40% rule. Basically your monthly debt payments should not exceed 40% of your monthly gross income. It is also a good idea to watch your credit card spending like a hawk; those things can escalate fast and leave you in a hole with outrageous interest rates to deal with.

Finally, maintain a good credit report by paying your bills on time. It is so regrettable seeing people with a solid monthly income have a bad credit score because they cannot organize themselves to pay their bills on time. You can now check your credit once a year for free, thanks to our government at AnnualCreditReport.com. Go over the document in detail; make sure everything is correct. Identity theft has become a big crime recently, if you see something you don’t know about, you did not initial or is an outright error, alert the three credit agencies immediately: Experian, Equifax, and TransUnion…

Buying your first home could be one of the most pleasurable experiences in your life, and only a little planning is required to make it all possible.

Cameron Akhavan is a Realtor, Licensed Mortgage Consultant, MBA and Asset Manager living in Northern Virginia. Please contact me if I can be of assistance to you or your friends with your real estate needs. Contact Cameron or visit My Website.

How To Sell Your House In A Buyer’s Market

Although The Greater Northern Virginia residential real estate market has been affected by the slowing economic activity experienced across the nation, there are many motivated buyers in our area taking advantage of this downturn and buying properties. The Washington DC Metropolitan Area is a vibrant market; it doesn’t stay down for long, and is bouncing back in a big way. As a home seller in this market there are things you can do to attract motivated buyers to your home. Here are some ideas:

Price your home correctly from the start. The first three weeks your house is on the market are very important, the interest on your property is at its highest. If your house is overpriced you will dampen the market’s enthusiasm and lose the most qualified prospects. Buyers will simply go see the other competitively priced properties, in a way you will be helping your competition sell their home. When your house sits on the market it become stale, prospects begin wondering why your house has been out there for so long and whether there is something wrong with the property. Finally, if you do get a contract your negotiating position has been reduced because the buyer knows you have been waiting for a longtime and there is no other competition around. Today’s buyers have done their homework; they are smart and educated about the market. Price it right, your home will sell quickly, and you will ultimately get the most for your house.

Try to detach yourself emotionally from your home and develop a buyer’s eye. You must try and change the inside decorations to appeal to the majority of people walking in through your front door. Try to neutralize and simplify your home and remember, how you choose to live in your home might be different than how you may wish to display your house for sale. The correct atmosphere enables the buyers to imagine themselves living at your home. Try to tone down the colors and put away all personal things, starting with the family pictures.

Try to de-clutter every room to increase space; your personal items simply make the area inside your house look smaller. A good idea is to pre-pack some of your personal belongings you don’t need and place them in storage until your home is sold. Keep your house clean and organized, it obviously shows better.  Don’t forget to organize all closets and cupboards. Make sure your storage room looks neat; you want to show the buyer you have taken good care of your house. Buyers frequently believe a clean home is a loved home. A good agent can always help and assist you in staging your home. Finally, please don’t forget to put away your valuables, such as jewelry and other expensive items, somewhere safe during open houses.

One of the best things you can do is to go out on a Sunday and visit a few open houses. This will renew your eyes for seeing defects in properties. Later when you come home you may notice many little things you had previously learned to live with, as unacceptable defects, needing repair. Go from room to room and make an objective repair list, make sure to complete those repairs before you place your house on the market. Painting is an inexpensive method to bring back life into your house; you get the biggest reward for your money. Nothing cheers a buyer more than a nice room freshly painted, and don’t hesitate to replace the worn out carpet, it makes a big difference for buyers.

Smell is the next important thing to worry about. Stop cooking exotic foods with numerous spices for a while. If you are a smoker, try aerating the room you smoke in for a good twenty four hours, then buy a good smell neutralizing spray from your local drugstore and stop smoking in the house until it is under contract. Move your pet’s belongings to the garage, this includes the kitty litter box and any caged birds or hamsters. Vacuum daily if you have dogs and cats. Nothing turns the buyer off more than a bad smell when they are touring your residence.

First impressions are the most important, so you have to create curb appeal. Buy some pretty colorful plants and flowers; plant them tastefully to enhance the beauty of your front yard. Make sure the front entrance is clean, newly painted, and inviting. Clean up any spider webs and repair the entry steps, walkways and sidewalks. Your aim is to create a fantastic first impression in the eye of everyone coming to see your home.

Studies have shown buyers make up their mind about a house within the first thirty seconds of their visit. They also tour approximately twelve homes before they make a decision. Make your home compete with others, in your neighborhood and price range, by following these simple recommendations. You will hopefully have your house sold in the shortest time possible.

Cameron Akhavan is a Realtor, Licensed Mortgage Consultant, MBA and Asset Manager living in Northern Virginia. Please contact me if I can be of assistance to you or your friends with your real estate needs. Contact Cameron or visit My Website.

What Are First Time Home Buyers Doing?

Here Are Some Stats For First Time Home Buyers

What Are First Time Home Buyers Buying?

First Time Home Buyers And Financing

Why Are First Time Home Buyers Buying Homes

Source : Reuters

Cameron Akhavan is a Realtor, Licensed Mortgage Consultant, MBA and Asset Manager living in Northern Virginia. Please contact me if I can be of assistance to you or your friends with your real estate needs. Contact Cameron or visit My Website.