Reflections on Connections

The tag line for my real estate business is "Smart Connections Between Hearts and Homes".  It's really my mission statement.  In my e-newsletter I provide my clients a snapshot of housing sale price and volume trends.  I'm constantly trying to stay on the pulse of the direction the market is going - because that's what my Buyers and Sellers need to know when they are in the midst of a transaction.  It actually means keeping up with multiple micro-markets by geography, price, and type of home.  I read everything I can and also track what my clients are experiencing because, quite frankly, we are creating the trends before they're reported. 

So that's the "smart" part of my mission.  It is such an important part of what I do, it is easy to miss the opportunity to enjoy the "heart" part.  I want my clients to make a smart decision, but I also hope for them a warm-hearted decision. 

Last weekend I got to visit with a client who bought a condo in Arlington back in  April 2007.  It was so wonderful to see the personal touches she had added.  Even more wonderful to hear her say how much she loved living there, she never wanted to move, and it was the best decision she'd every made.  Erika, you made my day. It doesn't get any better than that!

We spend a lot of time number crunching, looking at comps, and negotiating the best possible deal.  But the best part of owning a home is the joy and love experienced there.  It's the way the light shines in the kitchen window in the afternoon.  The sound of rain on the sky lights.  The dogs playing a wild game of chase around and around in the family room.  Loved ones gathered around the table holding hands before Thanksgiving dinner.

This holiday season, I hope each of you have time to breathe deeply and reflect on the connection you have with your own home.  I wish for you sun shining through a window and hand-holding at the table.  Peace.

Short Sale - What is a Hardship?

A short sale occurs when a homeowner owes more on their property than the property is actually worth, but their lender agrees to accept a discounted pay-off in order to avoid the foreclosure process.  In other words, a home is sold to a buyer for less than what is owed on the mortgage by the seller.

In order for a lender to agree to this discounted pay-off, they have to be convinced that the homeowner really can't pay off the loan when the home is sold.  There has to be a hardship. So what would a lender consider to be a legitimate hardship?  Some examples are:

• Job loss
• Significant cut in pay
• Divorce
• Illness or death in the family
• Increase in property taxes
• Increase in payment due to an ARM resetting

Many homeowners with ARMs tied to the LIBOR are pleasantly surprised at their new low payments when their interest rates reset. The other items on the list are commonly-occurring real life events.  When applying for a short sale, the homeowner will have to prove their hardship, providing documentation just as they did in applying for their original loan - but this time to prove they can't pay rather than that they can.  They will also need to provide a hardship letter that explains what has changed in their life that is leading them to sell their home.

What if you are the buyer of a short sale property? Why does this matter to you?  If you are taking the time to write an offer, and then commit to waiting for a short sale to be approved (which can easily take 3-4 months or longer), you'll want to have some assurance that there really is a hardship situation that would cause the lender to approve the short sale.  You won't be privy to the documentation, but your agent needs to have a conversation with the listing agent so that you have a good idea that this is a legitimate situation.  Otherwise you'll be sitting around waiting for an approval that never comes while other desirable properties are being sold.

Bottom line is that whether you are a seller or a buyer of property, you need to have a trained, experienced real estate agent to guide you through the hurdles and pitfalls that you will encounter.  I've successfully closed short sales both as a lising agent and a buyer's representative.  In order to serve my clients even more effectively, I recently received my training and certification as a CDRS (Certified Default Resolution Specialist). 

Honestly, short sales aren't fun.  It's a question mark for both buyers and sellers whether or not it will close.  There is a lot of paperwork for the seller.  And the buyer has to wait . . . and wait . . . and wait.  If you don't have the patience, don't get in the game.

With that said, it's always deeply rewarding to help people reach their goals - whether it is getting a home sold, or helping someone buy their new nest.  

What I Did on My Summer Vacation

Realtors don't really take the summer off - or weekends - but business does slow down.  Wanting to make the best of that opportunity, we undertook some renovations to our home.  My husband and I live in 1978 split foyer.  We have 4 young adult children who come and go.  Having 2 bedrooms and a bath downstairs where our guests can have some privacy is the perfect floor plan for our needs.

The problem was the bathroom.  For starters, it was literally in the family room. When someone was using the bathroom there was really no privacy, even with the door closed, if you know what I mean.  It was small, classic 70s harvest gold, and the hockey-puck size rust hole that developed in the tub meant it was definitely time for a renovation.

My husband had the brilliant idea of building a new bathroom using half of our large storage room, creating a door right next to the bedrooms. The bathroom style was inspired by the work of my favorite TV designer, Sarah Richardson.  Here is the exact bathroom that was my inspiration. (Scroll to the white and green bathroom.)  I DVRed the show and was able to show the contractor the look I was going for.

Our contractor was the wise and experienced Roger Amendola.  His right-hand man, Socrates, was the hard-working and meticulous craftsman that put it all together.

Roger guided me to some resources.  I basically chose the next-to-the-least expensive of every option I had: tile, faucets, lighting, cabinets, drawer pulls.  The only place I splurged was with the frameless glass for the shower.  Worth every penny.  I even sewed the roman shades myself. 

Here's the bathroom.  Tah Dah!

My splurge - the frameless glass shower.

This is the original bathroom.

At the same time we were able to move the washer and dryer from the unfinished storage room - exposed studs, concrete floors -  into what was the old bathroom.  Now I have a  cheery, pretty, and clean laundry room.

This is the old bathroom, new laundry.

While I was at it I redecorated one of the guest bedrooms.  Furniture from Craigs List. Hand-me-down bed linens. Carpet from Home Depot. I made the bedskirts, pillows and window coverings.  Art is from art.com and lighting from Pottery Barn.

We didn't tell our kids what we were doing, and it was an absolute blast to see their faces and hear them exclaim when they saw "their" new bathroom. Just like the HGTV shows.

Now only 2 more bathrooms, 2 bedrooms, family room, etc. etc. . . . left to do. Time to sell more houses!

Buyers are Liars - Or Not

An adage that always makes me cringe when I hear it from real estate agents is "Buyers are Liars".  My first reacion is that those buyers are my clients and their business is what helps me make a living.  So I definitely don't start out thinking negative things about them.

Second, I don't think that buyers intend to be liars.  I think they just don't always know what they really want until they actually start shopping for a home. 

I recently worked with an adorable couple who found me on the Internet.  They were newlyweds - they had only been married for two months - and they were just glowing.  (Remember that feeling? Ahhhh, yes!)  So freshly married and all smiles, they were ready to buy their first home.

They started out looking in the $300,000 price range.  They knew the neighborhood they wanted to be in which really helped. When we visited the first home, the wife said it was just too small, she wanted a separate dining room, and larger guest rooms, and it wouldn't do.  Uh oh.  Big wants, little price tag. 

We looked at many homes, several of which I thought would have been a good match, but they had very good reasons for them not being what they had in mind.  They were finally able to find a wonderful home that had, not a separate dining room but a very large open dining room that will accomodate a big table and lots of guests.  It had good sized 2nd and 3rd bedrooms.  It had a big kitchen, hardwood floors, a big deck, a view of trees, was in excellent condition, and in the zip code where they wanted to be.  The price?  (Drum roll . . . )  $405,000.

Now I don't for a second think of them as being liars.  They had an ideal price point, and an ideal home. They just had to find where those two ideals would meet.  This month they will be closing on a home that they can enjoy living in for many years to come.  And that is a better "deal" than out-growing a home in 5 years and having to move. 

A & Y, I wish you many years of happiness in your new home.  And that's the truth.

If I Can, I Will

Three of my last four transactions have been competitive offer situations: more than one buyer making offers on the same property.

For two of these transactions I was representing the buyer.  Both times I called the listing agent to say we wanted to make an offer and they said they were in mid-negotiation with an existing offer.  I was able to get a very good offer written with my buyer, get it submitted, do some quick last-minute negotiation, get that accepted and ratified.  This required that my buyers clearly understood the situation and were aggressive in their offers.  It also required 10pm meetings to write and sign offers, and driving to their homes at night to get final initials. 

For another transaction I was the listing agent representing the seller.  We had received an offer that was at list but had other issues: tiny earnest money, VA loan which is riskier when it comes to appraisals.  The other offer was also at list but huge earnest money and conventional loan.  Just for the record, in a situation like this, the commission that Long & Foster and I would have earned is exactly the same amount.  So my efforts were 100% based upon looking out for the best interest of my client. 

Reflecting on these heart-pounding transactions, I honestly feel badly for the other parties who lost.  At the same time, I was able to make my clients ecstatic by helping them get the homes they want, or the sale they want.  

There are many reasons why I can't win for my clients.  My clients don't have quite enough total resources (cash on hand plus approved loan amount).  They need more seller subsidy.  They aren't using a conventional loan, or sometimes we're competing with cash offers.  But if there is a chance at success, I won't give up.  I'll convince the other agent to keep working with me.  I'll keep gentle pressure on my clients to move forward quickly if they really want the deal. 

If you have a house to sell I'll do everything I can to get it exposed to the broadest market and bring in the best price.  If you want to buy a home, and have the resources to do that, I'll do all that I can to help you win! 

This Little Light

Before daylight savings time started, I was showing a home after dark.  It was a very nice split foyer house in Alexandria's Mount Vernon area.  My clients were just starting to shop for a home and I knew they weren't ready to make an offer.  They needed to get into a few homes and start to get their bearings on what their options would be.  Therefore I wasn't 100% focused on the condition of the house and was kind of enjoying looking at all of the stuff in it while my clients were checking out the house.  

The house was rather dimly lit inside.  We first went downstairs to the family room where a TV was on, the sound turned down low.  The channel was QVC and they were selling realistic-looking battery-powered candles.  We then went upstairs and I noticed there were candles lit everywhere.  I then realized that they were the same battery-powered candles that were at that moment being sold on QVC.  Walking from room to room there were wall-mounted flat screen TVs in every single room, all turned to QVC, all showing the battery-powered candles, and there were those same candles lit in every room.  It was surreal!

We also counted about 25 cuckoo clocks, all set to go off in sequence so you could hear each one's cuckoo separately.

This homeowner seemed to know what made her happy and she was reveling in it.  No sale, but an interesting showing!

Not-So-Little Pink House

My hubby and I went down to Charlestown, South Carolina for a meeting recently.  I always love being back in that charming city.  Our hotel was close to Battery Park and a walk along the promenade at sunset can't be beat.  As part of his meeting schedule, we were able to go inside two the amazing homes right on The Battery.  One was Roper House. Wow, what an experience. 

For me, the highlight of the trip was seeing a former client. I helped her sell her townhome in Reston - an older home that she'd lived in with her 5 cats for many years.  She did all the right things to get it ready for sale - fresh paint and carpet, all repairs made, and she even moved out to make it completely ready for a new owner.  It sold quickly after multiple offers and well over list. 

This set her on the path to having a home built for her just outside of Charleston.  What a thrill to see this huge, beautiful home.  10' ceilings.  3 bedrooms.  2-car garage.  Screened in porch.  2 walk-in closets in the master including one that was the size of a bedroom.  Tons of windows with light pouring in. All on one level.  And it was pink!  (This photo isn't the house, but hers is just as charming, but much bigger.) To say that you can buy more home there for the same dollar is a colossal understatement.

I was squealing with delight at every turn because I was so thrilled for her to have this home for the rest of her life.  The very best part for me is that, while showing me her home, she hugged me about three times saying "Thank you so much.  You helped make this possible."  Awww!

Judy, I wish you many years of enjoying mint juleps on your screened porch.