Home Owners' Hot Topics: Property Taxes, Income Taxes, and Refinancing

Property Taxes: Property tax bills are arriving in mailboxes. If you don't like your assessment, read about the appeal process and deadlines here, and how to build a successful case here.

Income Taxes: At least being a homeowner takes the sting out of income taxes. Remember mortgage interest, property taxes, certain mortgage insurance premiums, and points are deductible. Limits apply so check with your tax preparer.

Refinancing: Rates have ticked up from last month's historical lows, but it's still a good time to explore refinancing. I even refinanced my own house last week! But it can be difficult to see if it's worth it for you, as this article points out. Read more at my blog post "Should I Refinance?" here. And contact me if you need a recommendation on some excellent lenders and settlement companies!

Thinking of selling? This Spring could be a good opportunity - the market is not as bad as you think (see Regional News post). Contact me to discuss listing your home!

What Should I Be Doing Now To Sell My Home This Spring?

Spring is going to come early to the DC area.

No, not the weather (well, I hope so, but we'll see.) I mean the Spring real estate market. Buyers are out there, even now. Low prices, low rates, and the imminent expiration of the $7500 first time home buyer credit have them circling and looking for the right property, in the right condition, for the right price. And for those properties that are positioned and marketed properly, this could be your best shot at a smooth and quick transaction.

But putting your home on the market takes a significant amount of preparation. The first 30 days your home is on the market is absolutely critical, because those buyers who are circling will come look—once—and if your property is not exactly right then they will just continue their circling, and likely will never return to your property. You will anxiously watch the days on market tick up, and the price tick down. Buyers ARE buying, but they expect a property to be in pristine condition right out of the gate.

To catch the biggest buyer waves, typically you should plan on putting your home on the market in March or April. This year, however, I think there’s a strong argument to go out early for the reasons outlined above—buyers ARE out there. However, you can’t just throw your home into the MLS and expect the buyers to pounce. Your first chance is your best chance.

Here’s a short list of things you should be doing now to get your home ready:

• De-clutter. I can’t stress this enough. If it’s not something you use every day, get it out of sight. Put away out of season clothing. No collections of knick-knacks, no personal photos, no college degrees or awards. You want the buyer to be able to imagine themselves in the property, and trust me, buyers are easily distracted by your personal items. Don’t pile things into closets and cabinets—buyers look there too, and if everything is crowded they thing there won't be enough room for their things. Get things out of the property and into storage if you have to. Same for extra furniture pieces. Less is more. Doing this right takes weeks (or for some people, months). Start now!
  
• Paint & Clean. A fresh coat of paint does wonders, and is cheap. And clean like you’ve never cleaned before, especially the kitchen and bath.
• Make all minor repairs. The buyer is going to make you do them anyway and it will be cheaper for you to do it now.
• Start monitoring the market, both broadly and in your specific neighborhood. Pricing is absolutely critical, and you need to be realistic. Don’t get stuck chasing the market down. Work with an agent to start getting property updates now.

When you’re ready to put your home on the market:

• Consult a stager. I hire both an interior stager and an exterior landscape consultant for all of my listings. They look at your property with fresh eyes and have extensive training in how to create a neutral, yet welcoming canvas for buyers.
• Photos, photos, photos. Buyers start their search on the internet, and if you don’t have photos they will skip your house completely. Use professional photographers, or at a minimum, a wide-angle lens if you (or your agent) insist on taking them personally. If you have photos of the exterior of the home during Spring or Summer, consider using them to show your yard in its greenest state.
  
• If your home has unique features, consider how to best market them. For example, if the house has an unusual floorplan or is bigger than it looks, consider including professionally drawn floorplans in with the photos. (I do this for some of my listings.) Using an agent that has worked with a lot of buyers might help in this area--they know what buyers want and how they react. (That's not to say that you should use an agent that engages in dual agency, that is, where they will represent both the buyer and the seller in a same transaction. I feel VERY strongly that using a dual agent is a TERRIBLE idea, but that's a subject for another post.)
  

If you’re interested in hearing more about how to get your home ready, or want to learn more about the home selling process, register for my free home seller class, or just contact me for an appointment. The market is still very volatile, and the story complex. Contact me if you're interested in an in-depth view of market conditions in your neighborhood.

Read More: Seller Resources

Read More: Working with Katie as Your Listing Agent

December 2008 Market Stats Available

MRIS (the consortium that owns our regional multiple listing service) has published the December 2008 stats, and I've updated graphs at my website (click on links below).

Arlington Market Stats - Arlington continues to post strong numbers. Only 4.91 months of inventory available, and of the homes that sold in December, an amazing 40% sold in under 1 month! Days on market held steady at 70, and average price increased slightly from the prior month.

Northern Virginia Market Stats - Of note here is the 37% increase in sales in December vs November, and an 8% decline in inventory, bringing the months of inventory down to 5.09 (6 months is considered a balanced market.) December 2007 was a 7.3 months inventory level.

DC Market Stats - Average price dropped significantly from prior month and prior year, which perhaps contributed to the amazing 34% increase in sales in December over November. And when it's good, it's good...almost 40% of the homes that sold in December had contracts in under one month.

Montgomery County Market Stats - MoCo continues to be a strong buyer's market, with the average price almost 20% below the same month in 2007. And the buyers responded--sales increased 22% over the prior month.

The big picture: Still a buyer's market in terms of price and selection, but drops in inventory and huge increases in contracts means the buyers are out there, circling, and ready to jump on good properties quickly if necessary.

If you're thinking about listing your home for sale, contact me to discuss how we can make your home one of those that sells in 30 days. Or sign up for a free Selling Your Home class.

If you're a buyer, give me a ring to talk about the stats in the specific neighborhoods you're looking. Or sign up for a free first time home buyer class.

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Home Seller Classes Now Available in Northern Virginia

Equipping Home Sellers to Make Better Decisions

Our home seller classes are educational sessions designed to give an overview of current market conditions and the home selling process. We cover a recap of the market, current trends and market stats including days on market, average sales prices, and inventory levels.

We'll also discuss how to price your home, marketing channels, staging and showing your home, real estate fees and commissions, and how to choose an agent.

There's never any cost or obligation to attend our classes.

Home Seller Classes in Arlington County
The first classes of 2009 are now scheduled at Arlington County Library. As in the past, there is absolutely no cost or obligation to attend this one hour educational session where we will recap the current market conditions, discuss the future outlook, and provide an overview of the home sale process. Simply email katie@katiewethman.com to register so that we may have materials available for you. Details are as follows:

Tuesday, February 17, 2009
6:00 pm - 7:00 pm
Arlington County Library
1015 N Quincy St, 2nd Floor Mtg Room
Ballston (Orange Line)

Though there is no cost to attend, you must contact us to register since seating is limited.

Read More: Seller Resources
Read More: What to Expect when Working with Katie as your Listing Agent

Home Seller Classes in Maryland and DC
The class schedule for 2009 has not yet been determined. Classes will begin in February and will be held at various sites in Montgomery County and the District of Columbia.

We're always happy to meet with first time buyers over coffee to give a quick overview (with no obligation) if the class schedule does not fit your needs. Just drop us a line!

Contact us to be notified of the class schedule when available.

Read More: Seller Resources
Read More: What to Expect when Working with Katie as your Listing Agent