DC Real Estate News: January 2009

While my Motto is: I refuse to participate in this Recession;  I am cutting back on some things.  I thought it would be a good idea to do regular posts about how to save $$$.  Every dollar helps; especially for families struggling to pay their mortgage and buy groceries.

Save on your Credit Cards:

Credit Card Companies LOVE to charge the consumer for everything.  One day late on a payment, monthly interest charges and those "Annual Fees".  Well I simply refuse to give them a cent.

Now I pay my bills on time.  I am a good customer of the credit card companies - except that well - I never carry balance.  They HATE THAT!  But they do make money from the Store or Merchant with every charge I make.  I charge EVERYTHING!  Why?  Miles !  Points !  Cash Back Bonus !  I love the "perks".  As long as you don't carry a balance - its not a bad deal.  Plus I have an easy statement every month which sooo helps me at Tax Time!

About a year ago, I received an offer for a crazy amount of FREE Frequent Flyer Miles from a Major Air Carrier/Major Credit Card Company.  In the fine print it read, "$50 Annual Fee waived for the 1st year".  Yes, but I could still use it for a year for free and get all those miles!  I have trips to take after all!

So a year passes and I start looking for this "Fee" to show up.  Sure enough - there it was. $50 Annual Fee.  So I do what anyone with smarts does.  I called the credit card company and explained that I had "No use for a card with an annual fee!".  The lady apologized and said she would transfer me to the Closing Department.

Well here is a clue - the closing department isn't just about closing accounts - its about saving them.  The man on the phone pulled my account and asked; why do you wish to close it?  I explained I was not about to pay an Annual Fee.  I had other credit cards with no fees.
He quickly apologized and said he could easily switch me to a different "no fee" card.  Same miles - same perks - no fee.  Same account number - just a "different" card and type of account.

Done Deal.  He of course also removed the $50 fee from my account with his apologies and that was that.

Another secret: 

Lets say you have a Credit Card with a balance and a high interest rate.  While you "could" open a new account with a (limited time) zero percent interest rate.  You don't really want ANOTHER credit card do you?  No.  

Call your credit card company and tell them you have an offer from another bank for a lower interest rate.  Ask them to lower your rate or you will leave.  If you are a good customer with a decent credit rating - Shazam! Done.  I once did this on a card I didn't even have a balance on.  It was lowered from 12.9% to 6.5%

How do you get this deal?  ASK!

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

No this isn't a story that was made up some some over-zealous Realtor in Washington DC; nor is a story written by the National Association of Realtors.  This is a TRUE Article by Forbes Magazine.

Forbes Magazine has named Washington Dc as the best place to buy Real Estate.  Since Washington DC has the lowest unemployment rate in the country at 4.1% - that coupled with the couple economic stimulus; means those government jobs just keep adding more jobs to the region.

The normal top two cities that fight for 1st place are New York City and London. Now with economic changes; foreign investors are turning towards Washington DC as a place for both Residential and Commercial Real Estate.

Read the FULL STORY Forbes.com

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

This picture was taken in Washington DC, after our supposed Ice Storm. This is also my 1st Wordless Wednesday Post.

We all know we are suppose to back-up our computer right?  I think we also all know we really stink at backing up our computers!

I was doing an "OK" job of backing up my Mac Powerbook to an external hard drive on my desk at home.  I didn't do it every week let alone everyday.  It's a hassle - especially with a laptop.  You have to connect the cable then wait.  None-the-less; I did it; but not very well.

Then when I read my blogger friend Pat Kennedy's post about how her home was broken into and they stole not just her laptop; but the device she was using to back-up.  She lost old photos, client info, everything!  I was worried.  You never know when something like this could happen.

At first I looked into on-line back-ups.  Perhaps it is the best; however many of these do not yet work with Macs.  

I now think I have an excellent solution that I want to tell everyone about!

Apple - Time Capsule

Of course being made by Apple; a 2-year old (or even me) can hook it up and start using it in minutes.  Unlike good old Microsoft's "Plug And Play" devices; this really works!

Time Capsule is a wireless back-up drive that uses the Time Machine Feature already a part of the Leopard Operating System.  Basically I plugged this wireless 1 Terabyte Hard Drive into a wall outlet; hidden away in a remote corner of my home.  I set up my PowerMac to use it in seconds and Voila!

My Laptop now backs up hourly if any changes to any files have occurred.  The best part is; I do  N O T H I N G !  It just does it.  The only way I notice anything is a see the little icon moving, which indicates it is backing up.

You can even have multiple computers in your home use the same Time Capsule.

Here are two examples of how this is better than the old-fashioned "Weekly" Back-ups.

1) Lets say this morning you were using a file and you made a bunch of changes to it.  You wanted to hit "SAVE AS" - but you instinctively hit just "SAVE" - now the original file is GONE.  But wait.... just go onto the back-up drive and grab the old file back.  It's there and it will take you less than 30 seconds.

2) Last night you were half asleep and you deleted two whole client files.  This morning you can't find them.  No problem - Time Capsule backs-up every hour.  Just go back and get them back.

It is SO EASY !!!

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

As I was making the decision to drive to a gathering last night with some fellow Realtors and Bloggers; the media was telling of how terrible it was outside.  It sounded like they were talking about the Economy or the Housing Market - "The Sky is Falling".

DC was getting 1 to 2 inches of snow then about .25 inches of ice/sleet; until it started to warm up about 6am.

"BIG DEAL"; I thought.  I grew up in the Mid-West; Michigan to be precise. Snow and Ice outside in January?  It must be a day ending in "y".  So what?!

After driving home from the gathering and getting home close to midnight; I thought - what is the big deal?  It's not so bad at all.  Then I woke up to see a city in near panic mode.

Schools in the burbs closing. (OK-so maybe some little side roads are slick).  Then the DC Public schools were opening 2 hours late?!  Huh?  I walked the 4 blocks to the gym this morning.  It was slushy and wet - but so what? It IS Winter!

Then I just read this news article and laughed!  I soo agree with new President.  Obama said:

 "My children's school was canceled today, because of what, some ice?" Obama said during a photo opportunity with economic leaders, who began chuckling. "As my children pointed out, in Chicago, school is never canceled.  In fact, my 7-year-old pointed out that you go out for recess.  You wouldn't even stay indoors." 

Obama said he would have to instill "some flinty Chicago toughness" into Washingtonians.

"When it comes to the weather, folks in Washington don't seem to be able to handle things," he said.

I have to agree with Obama: Sorry my fellow Washingtonians; Ya'll can be Weather Wimps!

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

This is some great new information about Short Sales.  These very time-consuming sales seem to get harder rather than easier; because the banks just can't seem to get a process which works.

Current Number of Homes Active and Under Contract in the Washington DC area:


Here is the breakdown as of January 26th, 2009

 
The number of homes on the market is creeping up slowly; which is typical after the New Year.  Inventories tend to be at their lowest levels - right after New Years.  Inventory levels should continue to increase until the 3rd week in June; when new listings slow for the summer months.
 

Here are the number of homes on the market including the number of homes that were taken Off (EXPIRED) the market last week.


 

Washington DC

Single Family:     Actives: 2002 (Up 25 from Last week)        Expired: 23       Under Contract: 366  (Down 6 from Last week)

Condos:              Actives: 1442 (Up 39 from Last week)        Expired: 18       Under Contract: 229  (Up 6 from Last week)

 

Arlington County

Single Family:     Actives: 490  (Up 1 from Last Week)          Expired: 3         Under Contract: 94  (Up 2 from Last Week)

Condos:              Actives: 5236 (Up 9 from Last Week)         Expired: 3         Under Contract: 94  (Down 2 from Last Week)

 

Prince Georges County

Single Family:     Actives: 6388 (Down 23 from Last Week)     Expired: 97        Under Contract: 916  (Up 29 from Last Week)

Condos:              Actives: 834  (Up 9 from Last Week)          Expired: 9         Under Contract:55  (Down 1 from Last Week)

 

Montgomery County

Single Family:     Actives: 3957  (Down 32 from Last Week)    Expired: 31        Under Contract: 921  (Up 25 from Last Week)

Condos:              Actives: 1333  (Up 24 from Last Week)        Expired: 8         Under Contract: 252  (Up 5 from Last Week)

 

It is important to see the number of homes taken "Off" the market.  While many of these homes will return to the marketplace a week or two; seeing a listing "expire" means that the seller and agent thought or expected the home to be sold by now.


 

 



  

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

According to a News release by NAR.  "Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 6.5 percent to a seasonally adjusted annual rate of 4.74 million units in December."  See the FULL STORY

While I do not believe we are nearly out of the woods yet - this does show a small sign.  A sign that YES, in fact, people can still get loans and are in fact buying homes.  Interest rates are incredibly LOW right now; and those buyers who are "On the Fence"; need to jump off and get serious.

As I have always said; if you only plan on living someplace for less than 7 years; there is some risk.  However if you are planning on putting down some roots and really live in a home; this could be one of the best times to buy.

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

The Washington DC area is filled with many different types of Condo buildings.  Some of these buildings are converted apartments built 50 years or more ago.  Some condos are small "boutique" buildings, some condos are 4-6 units in a large converted row home; and others are in the Big New Chic/Modern Buildings that litter the skyline of neighborhoods like ChinaTown, Penn Quarter or Arlington.

What everyone of these condos has in common is the Condo Fee.  Well what is in a Condo Fee and how much should it be?

Every Condominium Building/Complex has a series of by-laws which spells out exactly what the fee covers.  The typical items that a condo fee will cover includes:

-Master Insurance Policy (This is the Insurance for the Building - Not for the others "stuff" inside)

-Trash Removal

-Water & Sewer

-Common Area Maintenance & Cleaning

-Lawn Care & Snow Removal

-Operating Expenses (Hallway & Outside Lighting & Heating, Bank & Accounting costs, etc.)

-Reserve Fund (which is money set aside for future (major) repairs like a new roof or HVAC system

-Management (Although often small buildings can self-manage themselves to save costs)



Then we include the costs for the "Perks" - These will vary Condo by Condo:

-Front Desk Staff/Conceirge

-Pool

-Gym/Fitness Center

-Social or Community Room

-Tennis Courts

-Parking (which is often a separate fee altogether)



Then there are those buildings in which Utilities are often included.  Often these are the older buildings; many times there were at one time an Apartment Building. These buildings are often NOT separately metered; thus there is one large Electrical Bill and Heating Bill.  These bills are divided up by the size of each owners unit.

-Electrical

-Gas

-Heating (Which could be Electric or Gas)



The other thing which often swings the condo fees into the far reaches of affordability; is the buildings maintenance costs.  While money is often put into the "Reserves" for large repairs; an older building will have many small repairs.  Repainting a hallway, fixing old light fixtures, worn out carpet, etc.  Older buildings can easily have fees twice as much as the brand-new building with all the "perks".





In the Washington DC area; I have seen condo fees range quite a bit: (Based on 1 bedroom units. The larger the unit; the more you will pay.)

-Small building; that just covers "the basic" about $200

-Modern Building with all the perks about $400

-An older building that includes utilities $600 and up.



The biggest thing you should know when buying a condo is: How much is the Fee?  What does it cover?  How much has it gone up over the past few years?

In a future post I will talk about the dreaded "Special Assessment".







  

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

I reposted one of Teresa's posts a couple of weeks ago.  Here is another.  It is proof; Staging does work!

Think about buying a new sofa.  Do you walk into the store and see the sofa in a living room setting - with rugs, lamps and tables; or wrapped in plastic in a big warehouse?  Which one would you buy 1st?