What is the crime rate? How do I find a “safe” neighborhood?
March 9, 2010 by admin · Leave a Comment
One of the things that is frustrating to both clients and Realtors is that we are prohibited from commenting on whether or not a neighborhood is “safe” due to Fair Housing Laws. (See article “What Real Estate Agents Won’t Tell You.”) The web, however, fills that void nicely with a variety of tools, and now there’s a new one that looks very useful: CrimeReports.com. Just enter the address and the map populates with recent crime data, including police calls and arrests.
The site had its inspiration in a local Arlington County resident, and is not without its own controversy around privacy and other matters. Nonetheless, it’s a valuable tool for buyers investigating potential neighborhoods.
It doesn’t appear to have Virginia data yet (the site has a form where you can request the data from your local police department); DC and Montgomery County, MD are already online. Another valuable tool as you narrow the search? The local police department — just give them a call and get the rundown on crime.
One more useful site as you are getting to know the area is the sex offender registry. There is no requirement in our area that sellers disclose that a sex offender is nearby, so do your homework! Here is the link for the DC registry, and Virginia registry.
Where is “Northern Virginia”?
January 24, 2010 by admin · Leave a Comment
If you’re relocating to “Northern Virginia” (often referred to locally as “NOVA”) you may be wondering where, exactly, that is. Of course generally, we know people are referring to the northern end of the state, but just how far south and west does it include?
It depends whom you ask. For real estate statistical purposes, the local association defines “Northern Virginia” as Alexandria City, Arlington County, Falls Church City, Fairfax City, and Fairfax County. These are also the counties covered by our local association Northern Virginia Association of Realtors (NVAR), and NVAR members have access to all the homes for sale in those jurisdictions.
But if you ask locals, many would also include Loudoun County to the West, Prince William County to the West and South, and sometimes Stafford County to the South as well as part of our metropolitan area. You can see a map of counties at Wikipedia here. To look at homes in these ‘outer’ counties, you need to work with a realtor who is a member of those local associations.
The Washington, DC, Metropolitan Statistical Area (MSA) includes counties in VA, MD, and also includes the District of Columbia–a large swath! It is further divided into two divisions:
- the Washington–Arlington–Alexandria, DC–VA–MD–WV Metropolitan Division, comprising the majority of the metropolitan area, and
- the Bethesda–Gaithersburg–Frederick, MD Metropolitan Division, consisting of Montgomery and Frederick counties.
Counties include:
- MD: Calvert, Charles, Frederick, Montgomery, Prince George’s
- DC: District of Columbia
- VA: Arlington, Clarke, Fairfax, Fauquier, Loudoun, Prince William, Spotsylvania, Stafford, and Warren Counties, PLUS the independent cities of Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas, and Manassas Park.
- WV: (Yes, you read that right…our MSA stretches all the way to West Virginia) Jefferson County
Obviously the MSA is too large a tract to be looking at for your next home (and be careful drawing any conclusions from real estate statistics based on such a large area). Commuting times here are a big issue, so it’s critical to narrow your search based on where you’ll be working. Contact our team for help thinking through what some viable options are for you!
Read More: Wikipedia entry on “Northern Virginia”
Northern Virginia & DC Market Update – January 2010
January 23, 2010 by admin · Leave a Comment
Spring has sprung early as far as the real estate market is concerned. Buyers are out and circling, anxiously waiting for inventory to hit. I know I’m starting to sound like a broken record, but the lack of ‘good’ inventory continues to be the story in real estate circles. Check out our market data graphs: Arlington is down to 4 months of inventory and Northern Virginia is down to just 3 months. That’s the lowest level of inventory since August 2005. Remember August 2005? When there were bidding wars, and properties sold for tens of thousands above asking?? Looking at the graphs, you can see that the number of contracts stays roughly the same each month (and has for many years)…so it’s not the buyers that are driving market changes…it’s the inventory.Should I be looking at short sales if I’m relocating?
January 16, 2010 by admin · Leave a Comment
In our market, like many others around the country, you’ll find an abundance of short sales amongst the homes listed for sale. In particular you’ll find a lot in the outer suburbs, including near Fort Belvoir and Quantico. If you’re PCSing to the Washington, DC, or Northern Virginia area, should you be looking at short sales?
Probably not. Let’s cover some basics to see why.
What is a short sale?
It’s a sale where the debt owed combined with the costs associated with the sale exceed the property’s market value. In other words, the borrower (owner) is “underwater” on the house. The creditor(s) MAY be willing to agree to allow the property to be sold for less than the loan amount.
You can recognize these listings by key phrases in the comments section such as “short sale” or “third party approval required” or “lender approval required.” They are typically priced very aggressively so they get a lot of buyers’ attention.
How long do they take and why don’t they close?
Though the stats are far better than they used to be, relatively few short sales close – about 1 in 8. The reasons are varied: they are tremendously complicated transactions, they require demonstration of true financial hardship (not simply being underwater), they required reams of paperwork, they take a long time causing frustrated buyers to walk away, and all the while the seller is playing ‘beat the clock’ against the foreclosure department. There are even some who say that banks make more money in a foreclosure than a short sale so the incentives for the bank to cooperate are not there. Of course, you have to look at each case individually, and there ARE some ways that you can optimize the odds of (though not guarantee) a short sale closing.
So in summary, it is notoriously difficult to close a short sale, and the timing is impossible to predict. You can read more here. If you’re on a timeline for a move, then short sales, in most instances, are not going to be a viable option for you. If you do decide to pursue a short sale, make sure you have contingency housing plans in place.
If you’re PCSing to the DC area and starting your home search, call us to talk about timing and the current state of the market. We’d love to help you find your next home!
$8000 First Time Home Buyer Credit & $6500 Repeat Buyer Credit
January 16, 2010 by admin · Leave a Comment
It’s officially passed the House and Senate, and is now awaiting the President’s signature. Along with the extension of the $8000 First Time Buyer credit (now applies to any buyer under contract by April 30, 2010 and settling by June 30, 2010), there is now a new credit category: long-time residents of the same principal residence which has been given the shorthand name of “move up buyers”–though in reality it could just as easily apply to “move down buyers.”
If a homeowner has owned and used the same residence as their principal residence for any five consecutive years in the last eight (as of the date of purchase of a subsequent residence), then they are treated as a “first time home buyer” eligible for a (up to) $6500 tax credit when they file their next return. Other key points:
- This credit applies to purchases under contract between December 1, 2009 and April 30, 2010.
- Income limits are higher than with the previous credit: $125,000 AGI for a single individual and $225,000 AGI for a married couple (and then phases out until $145k/$245k).
- Homes purchased for more than $800,000 are ineligible.
- Thanks to all the fraudsters out there, purchasers must now submit documentation of purchase along with their tax return.
Some other restrictions apply (e.g., must keep the home for at least a year), but the key points are above. Update 11/14: here’s a nice summary article that appeared in the Washington Post. Some other FAQs that have since been answered:
- There is no requirement that you sell your current home. You can rent it out, or sell it later. BUT you must occupy the new home as a primary residence
- Many types of dwellings are eligible: new construction, existing homes, condos, mobile homes, or boats that function as a primary residence BUT in no case can it cost more than $800,000 or the property is ineligible.
- If you close between Nov 6 and Dec 31 of 2009, you can claim the credit on your 2009 return or even amend your 2008 return (important to know if your income has changed, making you ineligible in 2010!)
And there are some special provisions for military buyers: If you or your spouse served on qualified official extended-duty service outside the country for at least 90 days between Jan. 1, 2009, and April 30, 2010 then you qualify for an additional year (through April 30, 2011)!
This is key news for our area, which has seen a dramatic drop in housing inventory, especially at the first time buyer price point–this could well create demand in the next category up (up to $800,000 that is) of homes, and will create some breathing room, inventory wise, for the continuing first time buyer demand.
This could be the ideal time for these move-up or move-down buyers:
- Prices for inventory at the first time buyer price point are stable or even rising
- Interest rates are still at historic lows
- Upper end homes have dropped (and are continuing to drop) in price
Combine these three points and you get “sell high” and “buy low”. If you’re thinking of selling your home to “move up” or “move down” and want more information on the tax credit, please contact me.
Read More: Why is the $6500 tax credit important?
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Read more: How Do I Protect Myself if I Buy and Sell a Home at the Same Time?
Sign up for a free MLS Market Snapshot to see what’s been going on in your neighborhood (Northern Virginia, DC, and Maryland only)
Read more: Six Myths About Choosing a Listing Agent
Read more: Marketing Your Home
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Client Testimonial
December 27, 2009 by admin · Leave a Comment
It’s such a privilege to help clients during a transition as important as buying their first home. It’s even more delightful knowing that they appreciate my help and recommend me to friends, as is the case with Dan & Beth, a Navy couple whom I recently helped as they sought to buy their first home.
Dan & Beth were truly a pleasure to work with, and it was my honor to help them find their home just in time for Dan’s recent deployment. Here’s what they had to say (I find their individual differences in style hilarious, so had to share them both here):
Katie doesn’t just help you buy a house in the dc area. She takes
the time to teach you about how to find what you are looking for and is there with you throughout the entire process. She is trustworthy and intelligent and offers resources and information we didn’t find elsewhere. We feel very fortunate to have had the chance to work with her and recommend her whole heartedly! – Beth
Katie is a straight shooter who knows her stuff. – Dan
Thanks, Dan & Beth, for the kind words!
If you are PCSing to the Washington, DC, or Northern Virginia area, I’d love to help you find a home, too.
What’s the cost of living in the Washington, DC, area?
December 27, 2009 by admin · Leave a Comment
In a word: High. You can use a calculator like this one to compare a salary in your current location to Washington, DC. As of the date of this post, here’s a sample of how various locations stack up vs Washington, DC…
Atlanta, GA – 45.3% higher in DC
Dallas, TX – 44.7% higher in DC
Denver, CO – 44.1% higher in DC
Fayetteville, NC – 61.2% higher in DC
Philadelphia, PA – 25.2% higher in DC
San Diego, CA – 11.2% higher in DC
Wichita, KS – 76.2% higher in DC
There ARE a few places more expensive though…
Honolulu, HI – 5.9% lower in DC
New York, NY – 12.2% lower in DC
San Francisco, CA – 9.3% lower in DC
With such a high cost of living, the cost of housing often creates ’sticker shock’ in those relocating. The lengthy commute times, along with school district quality, are big drivers of housing prices. If you can be flexible on either of those it will go a long way towards finding affordable housing.
Don’t despair about the high cost of living though — DC is a great area to live! We have mild weather with four seasons, plenty of cultural activities, a central east coast location with plenty of transportation options, and an ethnically and culturally diverse area. Plus all the politics you could want! (wait… is that a ‘pro’ or a ‘con’??)
Need help or looking for more information on your relocation to the DC or Northern Virginia area? Contact us – we’re happy to help!
City vs County: Falls Church City, Alexandria City, and Fairfax City
December 12, 2009 by admin · Leave a Comment
Learning a new city or county can be overwhelming enough, but to add insult to injury, here in Northern Virginia we have:
- Falls Church City AND Falls Church in Fairfax County
- Alexandria City AND Alexandria in Fairfax County
- Fairfax City AND Fairfax County
It’s critical to know which area you’re talking about — services and schools are provided by the jurisdiction and can vary widely! Falls Church City, for example, has its own school district. But you could have a mailing address of Falls Church and instead be part of Fairfax County, and part of their school district. Even within the “Falls Church” portion of Fairfax County, the high school district might be Marshall, McLean, Stuart, or something else! (And to make it even more confusing for out-of-towners, the East Falls Church metro stop is actually in Arlington County!)
Similarly, there is a portion of Fairfax County that has a mailing address of “Alexandria” which is a different jurisdiction from the “Alexandria” that is actually Alexandria City. And again, with “Fairfax” in Fairfax County vs “Fairfax City” (at least they use “city” to help us out on that one.)
With all this confusion, it’s no wonder that many agents in their real estate listings don’t enter the school pyramids in the listings. Even if they do, it’s best to check the address using the individual jurisdictions’ school boundary locators on their websites (see right hand side bar).
When looking through our Multiple Listing Service (MLS) for a home, you can tell the jurisdiction by the MLS code, which is a two letter code followed by 7 digits.
AR = Arlington County
AX = Alexandria City
FA = Falls Church City
FC = Fairfax City
FX = Fairfax County
So read carefully! And when someone asks whether you’re interested in “Falls Church” or “Fairfax” or “Alexandria,” ask them “Which one?!”
For help with your real estate search in Northern Virginia, please contact us!
What are the Best High Schools in Northern Virginia?
December 12, 2009 by admin · Leave a Comment
Several of Northern Virginia’s High Schools were recently named to US News & World Report’s “Gold Medal List” of Best High Schools in the nation!
Alexandria’s own Thomas Jefferson High School for Science and Technology, with its application/merit-based admissions, was named #1! Serving grades 9-12, it has 1805 students and scored a perfect 100 on US News’ “College Readiness Index.”
Coming in at #47 is McLean’s Langley High School, with a College Readiness Index of 77.6. It’s an open enrollment school in Fairfax County, serving grades 9-12.
Of course US News is the only report out there. Newsweek’s 2009 Top Public High School rankings included many area schools as well: Arlington’s H-B Woodlawn came in at #37, Rockville MD’s Wooten at #59, Arlington’s Washington-Lee at #68, Fairfax County’s W.T. Woodson at #72, and Potomac MD’s Winston Churchill at #95, and Arlington’s Yorktown at #100.
Not to be outdone, Business Week also puts out its own list.
Northern Virginia Magazine also reports on the local schools, and named Thomas Jefferson, Langley, McLean, George Mason, and W.T. Woodson as the top 5 high school picks back in 2006, and has this helpful public-vs-private article with some key stats by school.
How can you evaluate the quality of a school district? There are so many factors to consider; you must decide what’s important to you and your child. Is it curriculum? Test scores? Diversity of student body? There are many sources of information online, like greatschools.net, schoolmatters.com, and the National Center for Education Statistics. And, of course, you should visit the school if possible.
When researching school districts for your move, be warned: Fair Housing laws make it very difficult for real estate agents to answer your questions because we cannot be perceived as ’steering’ buyers towards or away from a particular neighborhood in a discriminatory matter. (Same goes for crime stats, as discussed in this article.) So it’s imperative that you do your own “homework” on school districts.
For links to local school districts, see the right hand sidebar.
What is traffic like in the Washington, DC, area?
December 6, 2009 by admin · Leave a Comment
In a word, terrible. Washington, DC, was recently named the second worst traffic city, right after Los Angeles. According to one study, drivers here wasted 62 hours in traffic annually.
As a result, as you might imagine, property values tend to be higher in easy commute areas, or said another way, the closer you are to major employment centers, the more expensive the housing is likely to be. In particular, being close to a metro stop is likely to drive up home prices significantly.
How can you investigate what your commute will be like once you relocate? The easiest thing to do is to ask some of your future co-workers. Ask them where they live, how long it takes, and how they travel (car? metro? bus?) Try listening to traffic reports from a local radio station (WTOP reports every ten minutes) so you can get a sense for where the backups occur, since they typically occur in the same areas each day. You’ll also want to be aware of ongoing major projects in the area, like the extension of the metro line through Tysons Corner, which will tie up traffic in that area for the next few years.
You might also want to check out traffic websites during the hours that you expect to be commuting (try traffic.com and trafficland.com for cameras.) Finally, once you arrive in the area for a visit, try some test runs from the area you’ll be commuting from–yes, it’s painful to get up extra early so that you can leave your future home at the expected time, but there’s really no other way to be sure of what your commute will be.
While metro proximity is at a premium, don’t forget that the DC area has extensive bus service, as well as VRE railway service. And if you live near a slug line, that’s a creative option too. Look at some of the links in the right sidebar of this page under “Traffic & Transportation” for some helpful resources.
Read more: Visit our main blog about real estate in Washington, DC, and Northern Virginia.
PCSing to Virginia?
December 2, 2009 by admin · Leave a Comment
We’re currently building out this site. Contact us with information you would like to see here! Our hope is that we are able to provide you with helpful information about PCSing to the greater Washington, DC, area including the Pentagon/Navy Annex, Fort Belvoir, Fort Myer, Quantico, and other military installations. We will be adding information specific to:
- Rental Resources
- Purchase Resources
- Schools and Other Local Information
- Traffic & Commuting
and more. Please bear with us as we add resources, and don’t hesitate to contact us if you are relocating and need information. You can also visit our main web site at: www.wethmangroup.com and our other blog at http://blog.wethmangroup.com
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