How Amazon's HQ2 will -- and won't -- have an impact on the Northern VA housing market

Earlier this week, I attended a forum on Amazon and the Northern Virginia Housing Market, which was hosted by the Center for Real Estate Entrepreneurship, part of the George Mason University School of Business.

There's been a lot of hype in Northern Virginia since Amazon announced they are opening a headquarters (HQ2) in Crystal City, a neighborhood in Arlington that is being renamed "National Landing" as part of Amazon's arrival. Clients have been telling me they are hearing that there will be a big housing boom and that real estate values will increase dramatically in the near future.

The truth is that while Amazon coming to NoVa is a good thing, and that it will bring growth to the area, that growth isn't going to be as dramatic as some people expect. The rollout of HQ2 will happen over 16 years, and in 2019 is expected to bring only about 400 new jobs to the area. To put that in perspective, the metro area creates about 43,000 new jobs each year; Amazon will account for less than 1% of that growth in 2019. From 2020-2035, HQ2 will create an average of 2,400 jobs each year, resulting in a forecast 1-5% growth in the demand for housing over that time.

Housing inventory in Northern Virginia remains low, and interest rates are rising. Those are the two biggest drivers for the current sellers' market we're seeing in the area.

But don't just take my word for it. Click this link to read an analysis by Dr. Lisa Sturtevant, the Virginia Association of REALTORS® Chief Economist, on the impact of HQ2.

For Your Protection, Get A Home Inspection

A friend who's buying a home out of state sent me a text message last week asking if getting a home inspection was, in her words, "a total racket."

I asked what was going on and she explained that her agent had recommended a home inspector, and that she didn't think it was worth doing the inspection because since the agent had recommended the inspector, the inspector had "skin in the game/incentive to make sure [the deal] goes through."

I explained to her that I always tell my buyer clients to get a home inspection, and that the inspectors I recommend are professionals I trust to protect my clients' interests. Sometimes they find nothing serious, other times they find something that sours the deal. Often, they find things that either need to be repaired before the transaction (such as faulty equipment), or that the new owners need to be aware of for the future (such as a water heater nearing the end of its useful lifespan).

Regardless of whether the deal goes through, the home inspector usually gets paid at the time the inspection is done, so there is no incentive for them to make sure the deal goes through.

The bedrock of my business is referrals from clients, so if I recommend a home inspector who doesn't do a good job, that reflects badly on me and is something my client is likely to tell others when they ask for recommendations for a REALTOR.

My duty as your agent is to protect you and your interests, not the transaction.

In your corner,
-Rob

What Will You Do When You Win Mega Millions?

I was on the phone with my friend who is a financial advisor today and the conversation inevitably turned to the Mega Millions Lottery, which is up to a $1.6 billion jackpot (just in case you've been living under a rock for the past week). He confessed that he hadn't bought a ticket yet, and I confessed that I'd bought a few. In fact, last week, while I did not win the $900 million jackpot, I did walk away with $2 — and I promptly reinvested it in another ticket.

Since I was talking to a money guy, I asked him how I should take the money when (not if) I win the jackpot tonight.

As it turns out, taking a one-time cash payout is the best way to go. Yes, you walk away with less than 50% of the full jackpot after taxes, but if you invest most of the money and get a return of more than about 1.5%, you will ultimately do better than if you take the annuity option. With some sound financial advice, you can parlay that paltry $750 million into billions.

And when you do I'll be there to help you find a sweet place to live while you watch your fortune grow.

Incidentally, my friend told me he'd give me $1 million if he wins tonight — and I'm holding him to that. 

Updating a home you're planning to sell - what pays off?

I recently met with a homeowner who is planning to sell her late 1950s home within the next year. She wanted some advice about what improvements she could make to increase the resale value of her home.

This is a subject that comes up frequently with seller clients, and my advice is almost always the same: invest in things you will be able to enjoy while you're living here, and/or invest in home maintenance items you have been putting off doing.

A few years ago I had a client who had invested significant money in the interior of their home, but the HVAC was very outdated and the home had windows dating back to the 1970s. Potential buyers who came to open houses commented on the bright colors and modern look of the kitchen, but ran away when they noted that the HVAC was not keeping the home cool on a hot day, party because the air was escaping through the old windows.

Eventually the home sold — after my client invested in new windows and updated the HVAC system — and my client made that money back on the home because it sold above the asking price.

Replacing outdated HVAC, old windows, and/or an old roof are investments that will reap rewards when it's time to sell.

For this client, I suggested new windows and updating the HVAC, and she was planning a master bath remodel that she will get to enjoy until she's ready to sell the home.

For more information on renovation ideas that pay, visit: https://www.hgtv.com/design/decorating/clean-and-organize/which-home-improvements-pay-off

As always, if you have questions I'm here to help! I also work with a number of contractors who can help make your home renovation needs, so don't hesitate to call or email!

In your corner,
-Rob

Preparing for Hurricane Florence in Fairfax County

The Commonwealth of Virginia has posted some great infographic on preparing for hurricanes. These and other useful tips can be found at http://www.vaemergency.gov/.

Hurricanes and Other Natural Disasters: Are You Prepared?

Hurricane Florence is bearing down on the Central Atlantic region and my social media filled with posts from people wondering how to prepare.

The National Oceanic and Atmospheric Administration (NOAA) website features a page with recommendations for preparing for hurricanes. These recommendations can also be applied to other types of extreme weather events and disasters.

Here are some steps you can take to be prepared for hurricanes and other types of disasters:

Know where to go
Sheltering in place is often a good recommendation, but what if you or a family member is injured and needs medical help, or what if your home is rendered unsafe during a disaster? Where are the nearest hospitals, and where can you go if you need emergency shelter? Write down addresses and phone numbers in a safe place — you may not have access to the internet (even from your phone) in the event of an emergency.


Be prepared for power and water outages
If the power goes out, how will you feed yourself? What if the water isn't running, or has been contaminated? NOAA recommends that you keep an emergency rations kit with foods that don't require any preparation or refrigeration, and that you keep these emergency rations in a water-tight container. Make sure everyone in your household knows where this container is located. If the food is canned, make sure you include a can opener and utensils in your kit. You can also store first aid supplies in this container. Keep enough food and fresh water on hand to last 2-3 days.

A generator and/or a camp stove can be extremely helpful in a crisis. Make sure you buy it well ahead of an emergency to avoid low supplies right before a forecasted weather event, and never operate a generator or portable gas stove indoors as these devise produce carbon monoxide (CO), a colorless, odorless, tasteless gas that can cause sudden illness and death (See my blog from last year on CO). It is produced any time a fossil fuel is burned and is, according to the CDC, the leading cause of accidental poisoning deaths in the U.S. CO results in more than 430 deaths and 50,000 emergency room visits each year in the U.S. alone (See the CDC FAQs about CO.)

Have a plan for everyone in your household
Sometimes disasters strike suddenly. Have a plan for you and everyone in your household in the event that you're not together when something happens. Plan where to meet up if communications are down, and how to communicate if power is out (charged, hand-held walkie talkies with a range of more than a mile can be useful in this situation).

For more information visit the NOAA website.

As always, if I can be of service in any way, just let me know.

-Rob

Rob Traister

REALTOR®

RE/MAX 100

Licensed in VA

(703) 935-6891

1471 Davis Mil Rd., Lancaster, VA 22503

Property Site: http://tour.circlepix.com/home/SWCRD7/1471-DAVIS-MILL-ROAD-LANCASTER-VA-1000069885

Exceptional investment in historic Northern Neck. 15 minutes from crabbing & fishing. Was operated as an assisted living facility until 2001, now serves as a retreat. 16 bedrooms, 8 full baths, in-ground pool, tennis court, dock, detached single family residence with detached garage and workshop, and Chapel on site. Great opportunity. Adjoining properties also for sale -- up to 190 acres!

Bedrooms: 16

Bathrooms: 8

Price: $1,200,000

For more information about this property, please contact Robert Traister at 703-642-3380 ext. 4721 or rob.traister@gmail.com. You can also text 4182709 to 67299.

See more listings at: www.traister.com

MLS ID: 1000069885

https://www.facebook.com/RobTraisterRemax100/ https://twitter.com/robtraister http://https:://www.youtube.com/channel/UCJYV3Vzpb57DXoL7ONZawaw

554 Catron Ridge Rd., Bentonville, VA 22610

Property Site: http://tour.circlepix.com/home/SEFCV3/554-CATRON-RIDGE-RD-BENTONVILLE-VA-1001907176

PRIVATE COUNTRY RETREAT! 3 bed/3 bath house on 6.3 acres overlooking the Shenandoah Valley. Beautiful hardwood floors throughout, ceramic tile in all baths, spacious kitchen, walk-out basement, huge deck, covered sitting porch. Basement could be converted to in-law suite/guest apartment. 2nd small house on property could be renovated for office space/guest house. Sep. workshop w/elec. AC and heat.

Bedrooms: 3

Bathrooms: 3

Price: $289,000

For more information about this property, please contact Rob Traister at 703-642-3380 ext. 4721 or rob.traister@gmail.com. You can also text 5094900 to 67299 (Message and Data Rates May Apply, see terms and privacy policy).

See more listings at: www.traister.com

MLS ID: 1001907176

https://www.facebook.com/RobTraisterRemax100/ https://twitter.com/robtraister https://www.youtube.com/channel/UCJYV3Vzpb57DXoL7ONZawaw

How that $3,000 discount broker "rebate" can cost you more than $5,000

I had coffee with a new client the other day. He's looking for a house in Fairfax and told me he had pretty much decided to go with a discount broker, but one of his friends told him he should talk to me before he made up his mind.

When we sat down the first thing he said was "How much of a rebate will you give me if I go with you?" When I told him I don't give rebates he said that was all he needed to know, and that he was going to use the discount broker.

I asked him how much of a rebate the discount broker offered him and he said it would be around $3,000, which is what they advertise on their site.

"That's a lot of money," I said. "And do you know how much that rebate is going to cost you?"

He looked at me like I was speaking another language. "It's not going to cost me anything -- they're giving money to me!"

That's when I "dropped some truth" on him about buyer rebates -- they cost the buyer money.

Here's how the buyer rebate from this particular broker works: The company gives the buyer a percentage of the commission they receive from the seller, and according their site they typically pay buyers as much as $3,000.

Whoo hoo! Free money, right?

Not even close.

The commission, while paid by the seller, comes out of the purchase price of the house. So when you buy a house, the seller gets that amount minus the commissions and other closing costs. If the buyer is financing the purchase, that "rebate" is money the buyer already borrowed, and he has to pay that money back to the lender with interest.

At today's mortgage rates, a $3,000 "rebate" could cost the buyer more than $5,000 over the life of a 30-year loan.

Then I explained my approach. Using all the tools at my disposal, I negotiate the best deal for my clients to get them the lowest price.

Using those skills, I work to save my clients as much or more than they will end up paying for a discount broker "rebate." 

Let's talk about how much money you can save by working with me. Call or email today.

-Rob

What The Latest Federal Reserve News Means for Buyers

The Federal Reserve announced after its May meeting that they believe recent lower-than-expected economic numbers are an irregularity and not a sign that the economy is slowing.

So what does this mean for buyers?

Well, it means that for now interest rates are not going up on home loans. The key words in that sentence are "for now," because when the Federal Reserve meets again in June there is a good chance -- 67% according to experts -- they will raise interest rates if current trends continue.

If you are starting to look for a home right now you may be feeling anxious. Rates are rising and home inventories are low, which means there's less to choose from and more competition for what is out there. It's a seller's market, and making the right offer can be the difference between locking in your rate now or having

That's where I come into the picture. If you are looking contact me and I'll walk you through every step of the process, from getting pre-approved for a loan to making a strong offer that sellers will take seriously.

Give me a call today and let's talk. No pressure, no hassle, just straightforward real estate advice.

Rob Traister
RE/MAX 100
Licensed in VA
(703) 935-6891
rob.traister@gmail.com

Why is a Dip in Existing Home Sales Good News for Sellers?

A report published recently in The Washington Post noted that interest rates are rising and that pending home sales have dipped recently. Sounds like bad news, right?

If you're thinking about selling, this is actually really good news.

The reason home sales have been down recently is because there just isn't enough inventory to meet demand. In the areas where I work, if a home comes on the market and is priced competitively, it's under contract in a matter of days -- and often at a price higher than the listing price.

Think of it this way: there's a hot new toy, like the Fidget Spinner. Everyone wants it, but most stores sold out last week and don't expect more until next month. If you look at sales reports for Fidget Spinners for this month, you'll see a dip in the number of sales. If you happen to have a Fidget Spinner to sell, you'll probably be able to sell it for a price that's higher than the retail price.

With interest rates on the rise, buyers want to lock in NOW before they go any higher. And when inventories are low, it's not uncommon to receive multiple offers on a competitively-priced home and even see bidding wars.

According to the WaPo article, the National Association of Realtors (NAR) has increased its estimate for home sales growth in 2017 from 2.5% to 3.5%, and home prices are expected to rise 5% -- another increase from the 3.5% projected by NAR at the end of last year.

If you're thinking about selling, contact me today. I'll do a comparative market analysis to show you what comparable homes in your area have sold for over the past six months, prices for currently-listed homes, and what your home could sell for in the current market.  

Rob Traister
RE/MAX 100
Licensed in VA
(703) 935-6891
rob.traister@gmail.com

Don't Always Believe Prices You See Online

Last year I met with a potential client who was thinking about making a move from a home in a very desirable neighborhood in Alexandria. I showed him comps for his home -- nearby homes that are comparable in size, amenities, and style, and are active or have sold recently -- and told him the price he could expect in the current market.

He mentioned that a website (rhymes with "Pillow") showed the estimated price of his home as being higher than the one I recommended. I explained that the estimated prices shown on that site tend to be off by 5% or more in our market.

He said when he was ready to make a move he would let me know.

A few months later I saw that home was on the market for $30,0000 more than the market will support in that neighborhood. After two months on the market, the price has been reduced $80,000 -- $50,000 below the market value -- and still has no buyers.

Pricing your home correctly can be the difference between selling and not selling, or having to sell at a price that is below market value. It's that important.

If the home is priced too high, buyers who are looking at homes in that price range will dismiss it, and buyers looking below that price range won't even see it. And if you do manage get an contract at a price that is above market value, most contracts have a clause that allows the buyer to back out if the home doesn't appraise for the contract price.

The longer a home sits on the market, the harder it is to sell. In this market, many homes are under contract in a matter of days or weeks; if a home has been on the market for months it raises red flags and potential buyers pass it over in favor of newer listings.

By not pricing the home correctly from the outset, the seller I mentioned earlier will ultimately leave tens of thousands -- perhaps even $100,000 -- on the table that could have been in his pocket. Had he priced the home correctly, he would have had more showings and might have even seen multiple offers, resulting in a higher sales price.

When I price your home, I give you all the market data at my disposal to help you make the best decision so you can sell quickly, and at the best possible price.

If you have any questions about the real estate market in Northern Virginia, give me a call or send an email. I'd love to hear from you. 

Carbon Monoxide Dectors a MUST for Your Home

Recently a friend posted on social media that 2:00 a.m. is not a great time to figure out if the beeping from a carbon monoxide (CO) alarm means low battery or impending death.

It was a funny comment, but having a working CO alarm in your home can literally be the difference between life and death.

Carbon monoxide is a colorless, odorless, tasteless gas that can cause sudden illness and death. It is produced any time a fossil fuel is burned and is, according to the CDC, the leading cause of accidental poisoning deaths in the U.S. CO results in more than 430 deaths and 50,000 emergency room visits each year in the U.S. alone. See the CDC FAQs about CO.

Improper use or malfunction of a fuel-burning appliance such as a furnace, water heater, clothes dryer, stove, oven, or generator can produce dangerous levels of CO indoors. Other potential sources of CO in the home include poorly vented fireplaces or vehicles left running in an attached garage. When CO gas builds up inside a home, it can quickly lead to illness or even death. Because CO has no taste or smell to alert people to its presence, the only safe way to detect it is with a properly working, properly placed CO alarm.

According the National Fire Protection Association (NFPA), CO alarms should be installed according to the manufacturer's instructions, usually about 5 feet from the floor, in a central location outside each sleeping area on every level of the home. They should also be installed in other locations as required by applicable laws, codes, or standards. NFPA also recommends that homeowners interconnect all CO alarms throughout the home so when one sounds, they all sound.

It is recommended that you change the batteries in your CO alarms every six months, just as you do with your smoke alarms. Doing this when you change the clocks for daylight saving time is a great way to remember.

Carbon monoxide alarms also have a limited lifespan, typically 5-7 years. In the case of my friend who posted about his alarm chirping at 2:00 a.m., his CO alarm was letting him know that it was at the end of its useful life and needed to be replaced. Older models may not have this feature. If in doubt, replace your detectors and then follow the manufacturer's schedule for future replacement

For more information on CO in the home, click the image below to download the NFPA fact sheet on CO Safety.

Fall is a Great Time to Sell Your Home

Fall is a Great Time to Sell Your Home

I stepped out my front door one morning earlier this week to walk my dog, Sadie, and instead of a wall of hot, humid air I was greeted by a crisp, cool morning. The cicadas were louder than I'd heard them all summer, but everything else about that morning said "fall is coming."

Fall is a time I never hear anyone complain about the weather. The may complain about the leaves they have to rake, or the fact that winter is right around the corner, but they never complain about the weather.

"I'll be really glad to see fall end. I don't have to run the heat or AC for nearly two months, I keep my windows open every day, and the colors are amazing. I hate every second of it!"

- No One Ever

Fall is also a great time to put your home on the market. Inventories have been low for most of 2016 and this time of year they are traditionally even lower. This means you have a unique advantage because:

• You're on the market at a time when there are fewer homes to choose from,
• Your landscaping can look it's best because of lower temps and fall colors,
• People who are looking at this time of year tend to be serious buyers, and
• People actively looking now tend to want to be in their new homes -- your home -- before the holiday season.

Call me today to get a free market analysis for your home. There’s never any obligation following the call. Worst case, you get some excellent advice and information about selling your condo. Best case, we work together to get you top dollar for your condo.

Give me a call at (703) 935-6891 or send me an email at rob.traister@gmail.com and let's connect.  No hassle, no pressure, just honest straight-forward real estate advice.
 
Rob Traister
REALTOR®
RE/MAX 100
Licensed in Virginia
(703) 935-6891

You Haven't Really Started Looking For A Home Unless You've Talked To A Lender

You Haven't Really Started Looking For A Home Unless You've Talked To A Lender

You’ve decided to buy a home. Congratulations! This is one of the most important decisions you will ever make. You want to make sure you choose a home that’s right for your needs – now and in the
future.

So what’s your first step? You'll probably look at some homes online and go to a few open houses, but then what? Call me and start looking, right?

Choosing the right agent is an important step on this journey, and when you choose me I’ll work hard to find the right home for you. I’ll ask you questions about where you want to live, what kind of home you want, how many bedrooms and bathrooms you want, and whether you want a yard or something that requires less maintenance, like a townhouse or condo.

One of the first questions I'll ask is if you've spoken to a lender and gotten approved. This is an integral part of the process, and until you’ve spoken to a lender you haven’t really started a serious home search.

Talking to a lender lets you know how much home you can afford. Your time is valuable; knowing your budget helps me efficiently find homes that will fit your needs and your budget. Going through the approval process also gives you the opportunity to check your credit score and shop for the best interest rate for your loan.

In addition, the type of loan you get may exclude certain properties from your search. For example, homes purchased with FHA, VA, and USDA loans have to meet certain requirements that don’t apply to conventional loans.

Finally, when you make an offer you will need to include an approval letter from your lender showing that you qualify to purchase the property at the offer price. This shows the seller that you are serious about your offer. While it doesn’t happen every day, some people who are “just looking” find the home of their dreams on the first day of looking. If you've talked to your lender and gotten approved, you can make an offer quickly before someone else decides that your dream home is their dream home.

As always, if you have questions I'm here for you. Call or text me at (703) 935-6891.

What to do with pets when your house is on the market

I need to start this posting by disclosing that I am a dog owner. Sadie is a 9-year-old golden retriever mix I rescued when she was a year old. She’s laying at my feet as a write this. She’s a constant companion and always up for an adventure.

Some people are dog people, some are cat people, and some don’t like pets at all. One thing they all have in common is that they are potential buyers, and the presence of a pet in the home can turn off some buyers. I can’t count the number of times a cat has tried to run out the door when I’ve showed an occupied home, or that a crated dog has barked at me and my clients throughout a showing.

For pet owners, our pets are members of the family. For potential buyers, they’re a distraction and can make it difficult for them to envision themselves in your space. A dirty litter box or barking dog can mean the difference between a looker and a buyer.

A vacant, sparsely decorated home usually shows best, but that’s not always option. If sellers can’t move out of their home when it’s on the market, I encourage them to put most decorations and large pieces of furniture into storage. When pets are in the home, I recommend sellers send their pets to day care or make other arrangements during the day and set showing times accordingly.

Contact me today to find out what your home make be worth in today’s market. If you need a place for your pet while your home is listed, I’ll work to help you find an option that fits the needs of you and your pet.

Getting Your Home Ready to Show

Your home is unique. It’s your space. It’s where you spend more time than anywhere else except work. It’s your home, and the way you decorate it expresses your taste and style.

To potential buyers, your home is a space they’re considering using as their home. The more of your unique taste and style is evident in that space, the harder it is for potential buyers to see themselves there instead of you.

When preparing your house for showing, think of it as a model home. As much as possible, remove personal and decorative items and put all but the most necessary furniture in storage. Minimal decoration and furniture helps buyers envision how they’ll use the space instead of seeing how someone else uses it.

Call me today to find out what your home could be worth in the current market. If you need to store belongings while your home is on the market I can recommend nearby storage solutions for your needs.

Right now may be the perfect time to list your home

It’s February and the weather in the DC/Maryland/Virginia (DMV) area has been pretty rough. We had a record snowfall that took weeks to dig out, and then temperatures dipped into sub-freezing territory. The last thing anyone is thinking about right now is selling a house, right?

You may be surprised to learn that right now may be a perfect time to put your home on the market.

You’re probably saying, "Wait, what? I always heard March is the best time to list."

Well, March is right around the corner, and home inventories are remarkably low right now. Putting your home on the market ahead of the March rush helps you take advantage of those low inventories and possibly get a better price. The time to sell is before everyone else decides to do the same thing and home inventories rise.

Buyers are in a good position to buy, given today’s very low interest rates as well as historically low fuel prices.

The only thing missing is your home. Call me today to get a free market analysis and find out how much you could get for your home.