DC Real Estate News: September 2009

As in any business sometimes we just to rant to blow off a little steam.  Well here is one of those times !

Those of us in the Real Estate Profession know how a large amount of general public feel about us.  They question our professionals; our code of conduct; our knowledge and abilities.  The average Joe often wonders if hiring a Real Estate Professional is really helpful.

Well I believe that most of us are those ultimate professionals who know our business; understand the market and always look out for our clients best interests.  

Then there those "others" out there....

Currently I am dealing with two of them.  They can't even return a phone call to answer a question on a property.  My clients ask me what the other agents have said to our questions.

For days I have called and for days I tell my clients; I don't have any information.  Gee, I'm a lot of help!  The agents broker/manager?  Left the voicemail.  No return call.  I guess the grape doesn't fall far from the vine.

What these agents are doing; simply by not returning a phone call; is showing the general public that maybe Real Estate Agents are not the "Professionals" they want to hire.  Heck; if I was my clients - I would wonder if I was doing my job!

All I can say to those of you who are looking for a Real Estate Professional to work with.  Interview a few.  Ask them how quickly they return phone calls or emails.  If they don't live up to your expectations; tell them to ship off and find one who does.  Most of us actually do our job!

Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!

Office: 202-362-5800   Cell: 703.244.3971

Licensed in Washington DC, Virginia & Maryland.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100 * Washington DC 20016

Here is the breakdown as of September 29th, 2009

The number of properties on the market continues to drop as the number of homes under contract rises.  Most notably; Single Family Homes in both DC and Prince George's County; where the number under contract are at 4 year highs.

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: 1698 (Down 27 from last week)      Expired: 12       Under Contract: 722 (Up 32)

Condos:               Actives: 1242 (Down 30 from last week)      Expired: 8        Under Contract: 517 (Up 22)  

 

Arlington County

Single Family:      Actives: 440 (Down 10 from last week)         Expired: 3           Under Contract: 192 (Up 14)

Condos:               Actives: 489 (Same as  last week)                 Expired: 14         Under Contract: 196 (Up 3)

 

Prince Georges County

Single Family:      Actives: 4723 (Down 56 from last week)       Expired: 37         Under Contract: 2506 (Up 64)

Condos:               Actives: 798 (Down 3 from last week)           Expired: 14         Under Contract: 193 (Up 8)

 

Montgomery County

Single Family:     Actives: 2883 (Down 19 from last week)         Expired: 7        Under Contract: 2017 (Up 9)

Condos:              Actives: 1170 (Up 14 from last week)             Expired: 4        Under Contract: 518 (Down 14)

 

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.

Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!

Office: 202-362-5800   Cell: 703.244.3971

Licensed in Washington DC, Virginia & Maryland.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100 * Washington DC 20016

Pretty much every Renter in the world knows that when you go to rent a new home or apartment - the landlord will run a background check on you.  

They want to make sure the new tenant will pay their rent on time.

A typical new renter; will have their credit checked, a call to their past landlords and maybe a quick criminal background check.  

But who is checking the landlords?

This week a colleague of mine met some new renters at a property he had listed by his clients; an owner of a lovely home in Maryland.  The tenants had applied; been accepted; and were meeting the agent to get their keys and move in.  

The new renters showed up; complete with moving truck and then the shock by EVERYONE involved.

The Bank had Foreclosed on the home.  The agent was shocked!  Calls to his clients - the owners who were just foreclosed upon went unanswered. The new tenants; homeless.  All of their things in a big truck with nowhere to go.

So then; who is going to check the owners/landlords?  The Realtors, if there is one - don't know the home is in foreclosure.  The owners sure are not going to tell them!

Can you imagine a tenant asking the landlord for a copy of his credit report or a call from his bank to make sure his payments are up-to-date?

WELL MAYBE IT'S TIME for this ?!

How does a renter protect themselves from a landlord who isn't paying his mortgage?  Unless they are living in the home and sees some Pre-Foreclosure notice delivered in the mail - how would they ever know until it's too late?

Someone needs to look out for the Renters - But who?  How?

Well if every tenant insisted on a landlord background check - landlords would have no choice.  However; it would only work if everyone does it; otherwise the landlord will just wait for the next applicant to come along.

Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!

Office: 202-362-5800   Cell: 703.244.3971

Licensed in Washington DC, Virginia & Maryland.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100 * Washington DC 20016

Here are some statistics as complied by our Multiple Listing Service for the month of August.  

These numbers are comparing against August 2009 vs August 2008:

Total dollar amount of sold homes: $280,734,055 Up .59% 

The Average SOLD Price: $466,336 Down  16.29%

Total Homes Sold: 602 Up  20.16%

Averages Days on Market: 85 Up 6.25%

Ave % Sales Price V List Price: 92.49% Up  .16%

There were 3142 properties for sale in Washington DC; which gives us about a 5 month inventory of homes.

However; September typically seems many more properties hit the market as new listings.  Of course there are many more home buyers out in the fall than the hot DC summer.   I would predict September numbers looking pretty dismal; but October should look great.

Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!

Office: 202-362-5800   Cell: 703.244.3971

Licensed in Washington DC, Virginia & Maryland.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100 * Washington DC 20016

Now there are always those times when buyers make an offer so low - that sellers can't stop laughing.  Or - worse yet; the sellers are so mad they want to run over the buyer in their car.

So my buyer makes an offer on this property.  It was a string offer; by a well-qualified buyer.  A quick close; with a short time for an inspection.  Nothing crazy.  Of course we disagreed on price.

As what often happens; it was hard to find a comparable sale which justified this sales price.  We looked at comps from the past 90 days and didn't find anything to justify more than 92-93% of the listed price.

So we asked the sellers agent to provide the comps she and her sellers were using to justify their price.  Well she provided 4 comps.  All were from the April-May time frame and only 1 - was a property which was very similar and close to the Full Asking price.

So we offered 91% of asking price.  Crazy?  I sure don't think so.  

Now in this part of the DC area; homes are selling for 94.68% of list price.  This home has been on the market for 90 days.  Yes they have dropped the price; but it still hasn't sold.  Yet 1 mile away; 2 similar - and correctly priced homes; sold within 3 days of being listed!  Of course with multiple offers.

The sellers flat out rejected the offer.  No counter.  Nothing.

Now while the sellers may have been offended; I sure think they should have countered - SOMETHING.  Come down 5k or 10k and say 'Best & Final'; or SOMETHING.

A flat out rejection is a bit much.  The "recession may be over'; but the housing market isn't that hot - not even in DC.

Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!

Office: 202-362-5800   Cell: 703.244.3971

Licensed in Washington DC, Virginia & Maryland.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100 * Washington DC 20016

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Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!

Office: 202-362-5800   Cell: 703.244.3971

Licensed in Washington DC, Virginia & Maryland.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100 * Washington DC 20016

One of my buyers; frustrated at the lack of inventory this summer; was excited to see several new listings hit the market over the weekend. 

So we headed out early Saturday morning to start looking at properties.

She found a couple she REALLY liked.  We talked about it - and she picked the best one.  The home went on the market Friday afternoon.

I called the agent and she said; there were going to be multiple offers!

Well we made our best offer; as did several other people and the sellers picked another offer!  Shoot!  My buyer says; I saw something that came on Sunday - let's make an offer on that instead!

So I call the agent and guess what?  They already had a contract.  This property was on the market 48 hours.

48 Hours?!  Pretty crazy!  

It looks like in DC - if you have the right property at the right price -- it just may NOT be a buyers market anymore!

Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!

Office: 202-362-5800   Cell: 703.244.3971

Licensed in Washington DC, Virginia & Maryland.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100 * Washington DC 20016

Here is the new addition!!  I have been working from the Home Office more this week; so I can spend time with the puppy. Wow I have a renewed respect for those who work and have little kids.  Puppies are JUST like little kids (except I can lock her in her crate while I run to show property!).

She is a Beagle-mix - MUTT recused from the Washington Animal Rescue League in DC.  She is 100% puppy!  

For those people who move to Washington DC; finding your way around can be the 1st biggest challenge you face!  2nd of course is parking - but you can't park if you can't find where you are going!

Washington DC's streets was designed to "confuse invading armies".  I think it was a bad joke - it didn't stop the British in the war of 1812; but it sure as heck stops every tourist visiting from across the world.

Here is a beginners Guide to Navigating Washington DC:

• First of all, you need to think of DC has a Diamond shape with the lower left hand side cut off by the Potomac river. (Part of historic DC was actually in what is now Virginia).

• DC is divided into 4 quadrants.  Northwest, Northeast, Southeast and Southwest.  The diving lines start at the US Capitol Building.  So everything NW of the US Capitol is in NW DC. (However the Capitol is NOT in the exact center of the Diamond.  Thats some of the confusing part.  16th Street NW, running N/S (16 blocks West of the Capitol), is actually (almost) the exact center of the of the Diamond).

• Then we have Number Streets going out from the Capitol running North to South.  1st, 2nd up to 49th on the West and 62nd on the Eastern tip.  

• Then we have letter streets running East and West "A", "C", up to "V" in the South and "W" in the North. Of course there is no J or B streets.  I think "B" streets were renamed to Constitution and Independence and "J" - well you would confuse it with JAY street.

So what happens when you run out of letters?  What comes after "W" Street?  Well there IS a system.  Of course there are a thousand exceptions; but as a general guide here is how to figure out how far you are from the "Center" of DC:

• The letter system, A,B,C start over in 2 syllable street names. Belmont, Clifton....Varnum, Webster.   THEN we go to 3 syllable names; Allison, Buchanan...Van Buren, Whittier.  

It's not exact; but it helps!

• Now add in the "State" streets.  Alabama, Arkansas...Wyoming,West Virginia.  These run throughout the city, criss-crossing in a no-nonsense pattern on Diagonals. The most traveled like Massachusetts and Connecticut are MAJOR busy roads; while roads like Illinois and Kansas are not so much.

Just remember the most important thing when Navigating DC.  Are you meeting someone at 19th and P NORTHWEST  or  SOUTHEAST.  One is in Dupont Circle; the other over the Anacostia River, past Capitol Hill. This simple mistake is over 6 miles and 30-45 minutes in traffic apart!

Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!

Office: 202-362-5800   Cell: 703.244.3971

Licensed in Washington DC, Virginia & Maryland.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100 * Washington DC 20016

The above line has been told to a great many Real Estate agents across the country.  It actually makes a lot of sense.  If I know I am going to buy a new condo in a building; and I know exactly what I want - why would I need a Realtor?  Especially if they said; "Instead of paying your agent commission, we will give you a 'deal'!"

Well then I sure wouldn't want a Realtor if I thought the builder would give me a "Deal".

Let me now tell you a couple of REAL LIFE examples; that have happened just in the past couple of months:

A represented a couple buying a condo in a new building.  I negotiated the deal down just over $23,000 and got them a free storage unit.  How?  Well I knew from networking with other agents; what deals the developer was willing to make.  Knowing some inside info - was a huge help. The developer was also banking that I would bring back more buyers looking for a deal.

Another current client; I just helped get out of a builders contract so she could actually buy a place and move!  18 months ago she didn't think she needed an agent.  She let the developer give her the basic "builders" contract; which offered her little protection.  Not understanding the fine print; and the developer not telling her; she gave the developer $18,000 - in deposits.  She was to move into her unit over a year ago.  Construction is STILL not complete.  The fine print; allowed the builder to delay construction for over a year.  She is now out of the contract - got all her money back and off to purchase a home she can actually move into!

If you think you are getting a better deal; or don't need an agent to help you with new construction; you are probably mistaken.  They may offer you better deals; but more than likely - they are making more profit on you without a Realtor - and you may not be protected from bad appraisals, financing issues or delays in construction.

Hire a Buyer's Agent - They will explain everything to you and point out all the "fine print".  Your agent will also save you money and protect your purchase.

Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!

Office: 202-362-5800   Cell: 703.244.3971

Licensed in Washington DC, Virginia & Maryland.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100 * Washington DC 20016