Note> For the most recent schedule of dates for 2008 and 2009, please visit the First Time Home Buyer class page at my website. Classes will be held in Montgomery County, DC, Arlington, and elsewhere in Northern Virginia.
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 (including stats like days on market, inventory levels, and average sales prices), discuss the future outlook, and provide an overview of the home purchase process, including common pitfalls and financing basics. Simply contact us to register (enter seminar and the date in the comments) so that we may have materials available for you. Space is limited. Details are as follows:
No doubt you’re excited about what the next four years holds for both our country as well as your own relocation.Washington, DC, Northern Virginia, and suburban Maryland are fantastic places to live, as you will soon discover.Obviously there are lots of other factors to consider in choosing a new neighborhood: schools, taxes, amenities, and lifestyle just to name a few. There are lots of great places to live in DC, MD and VA. Here are a few other tips to get you started:
2)Carefully consider your commute time in choosing where to live.Most transferees to our area are shocked by the commute time—it can easily be 30 minutes to go just 3 or 4 miles, so don’t just look at a map and decide “it’s not that far.” This area’s congestion is among the worst in the nation.Our public transportation system is very good though; our subway system (known as Metro) is fantastic, though very expensive to live near.And don’t forget VRE and MARC trains.If you’re willing to commute by rail, you can get a lot more for your housing dollar.Commute times also vary widely based on whether you choose to live in the District proper, Maryland, or Virginia.
3)Get ready for sticker shock.Despite the national downturn in housing, prices in the Washington, DC, area have held up much better than other parts of the country, especially in close-in areas with under-an-hour commute times or along a metro line. For example, a one bedroom condo in North Arlington along the orange line will run you in the high $300s.But there’s some good news: there are definitely some pockets of under-valued homes right now—areas that were hit disproportionately hard by foreclosures and short sales in recent years, and in my opinion are primed for a comeback due to their proximity to public transportation and/or area demographic and employment trends. Keep in mind, though, that foreclosures and short sales, while attractive in terms of pricing, come with a host of other challenges that may be particularly difficult for someone on a tight timeline.
Looking for more info on area schools, government, crime stats, or cultural events?Check out my web page here.There’s an amazing array of activities and events in this area.I send out a list every month as part of my monthly real estate newsletter.(You can sign up on the right hand side of my blog here.)
The area is one of Arlington's famed "Urban Villages" along the Orange line which combines public transportation, business centers, retail, and residential buildings into a walkable AND livable mini-city. The concept, ground-breaking when it was introduced, has transformed Arlington into one of the most highly sought after places to live and work in our area. North Arlington, in particular, epitomizes the best of both urban and suburban living.
Are you thinking of buying along the Orange Line? Check out recent condo prices in my post here, and contact me to discuss current market conditions and how to get started.
North Arlington/Orange Line Condo Prices Zip Codes 22201, 22203. Includes Ballston, Clarendon
ACTIVE LISTINGS: 1BR Condos / 2BR Condos Number of Active Listings: 46 / 68 Average List Price: $351,858 / $526,993 Days on Market (Property): 74 / 100
SOLD LISTINGS: 1BR Condos / 2BR Condos Number of Sold Listings in Prior Month: 18 / 14 Average Sold Price (excludes subsidies): $313,085 / $461,407 Days on Market (Property): 66 / 64
* Statistics exclude retirement communities Click here to see the previous North Arlington Condo Market Update Source: MRIS data as of 10/17/2008. All data deemed reliable but not guaranteed.
I got the nicest letter today from a first time buyer client couple. It really made my day and I wanted to share it:
Katie,
We wanted to thank for your guidance and tremendous service during our condo buying process. Given the issues with FHA and our lender situation, this process had a lot more twists and turns than we ever imagined. But at the same time, we were reassured that your innovative solutions and attention to detail would get us through and it did!
Honestly, as we told you, before attending your home buying seminar and leveraging your expertise during our condo purchase, our opinion of realtors was not the highest. However, after working with you, that has changed. We really appreciated your vast array of knowledge as well as your super prompt response to what at times were our incessant questions. Plus, the little extras like the website of preferred vendors, use of the pick up truck, and letting us borrow your dolly helped us to move in.
Finally, thank you for the card. It now graces our new stainless steel fridge and we have already put those gift cards to good use.
We had no idea how stressful this process could be and honestly, we could not have done this without you.
Thanks Katie!
If you're a first time buyer, please contact me. I'd love to help you find a home, too!
There are risks in any real estate transaction, but buying new construction has several unique ones:
1) Contract Risk - builders use their own contract and rarely (if ever) allow changes. Obviously the contract is written in the builder's favor, but how will you know which terms are commonplace in the local market and which are uniquely theirs?
2) Financing Risk - If the building isn't ready to be delivered yet, the buyer assumes any financing risk between contract date and delivery. If interest rates double between now and then, for example, it's the buyer's problem. Similarly, any change in the buyer's status (e.g., job loss) is rarely accepted as a reason to get out of the contract. Best case is that you lose your deposit and walk away.
3) Delivery Risk - Again, with buildings that aren't complete, builders write in a clause that give them a specific time frame-often 2 years in this area-in which they can deliver late with NO consequences. If a buyer's lease is up or they have no place to go, that's the buyer's issue. It also adds to the Financing Risk (see #2)
4) Sales Risk Part A - If the builder doesn't sell out, then it's nearly impossible for a resale owner to price competitively. Consider the math--a buyer purchases, and has to mark it up to cover their own sales costs. How will a resale ever compete with a builder that doesn't have that markup?
5) Sales Risk Part B - If a builder doesn't sell out, and money is getting short, they may decide to "repartment" the building - that is, convert partially to apartments. That's a bad situation for owners (who now have tenants in their building) as well as for re-sellers (who would buy in a building when they can rent for much less in the very same building?)
6) Fees - Not really a risk so much as an FYI. Don't get too excited about that huge closing cost credit with use of "preferred lender and settlement attorney." They're "preferred" because the fees are higher in the first place. Know what a reasonable fee is so you can make an informed decision.
The mechanics of buying a home in Northern Virginia and the metro Washington, DC, area can be an overwhelming process. Add the emotions of envisioning your future home and the financial commitment involved, and the result is a process fraught with challenges and pitfalls. Katie brings 15 years of experience as a CPA, investment banker, and consultant to her clients in an effort to become a trusted business adviser for one of the largest and most important investments they will ever make. Read more about her at www.katiewethman.com
Katie is a REALTOR® licensed in VA, DC, and MD.
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