Uncategorized

What’s HOT? The Washington Wizards and the Northern Virginia Real Estate Market!

Leave a comment

Scott MacDonald of RE/MAX Gateway offers valuable information for home buyers, home sellers, and real estate agents on the Northern Virginia real estate market trends.

What is driving the real estate housing market? Watch Scott’s Market Minute.

Want to know how to increase your odds of multiple offers? Sellers are urged to price houses competitively and make repairs as recommended by an experienced REALTOR, as this will help to ensure the home shows well to prospective home buyers.  Contact Scott MacDonald (703) 652-5777  ScottMacDonald@remax.net

Now is a great time to list your home for sale!

Scott MacDonald

RE/MAX Gateway, LLC

Video

7 Ideas For A Successful Real Estate Open House

Leave a comment

The Spring real estate market is already warming up and due to low housing inventory, an Open House can be an effective way to get your listing seen. Listen as Scott offers some great ideas that were shared in “The NEW Agent” training series on how to help ensure a successful real estate open house.

Scott MacDonald, Broker/Owner/President of RE/MAX Gateway mentors and offers practical advice to real estate agents. Want to learn more? Contact Scott MacDonald (703) 652-5777 scottmacdonald@remax.net to learn more about how to be your best as an entrepreneur in the real estate world. Read more at scottymacsblog.com

Video

LOW INVENTORY: Homes for Sale Needed in Northern Virginia!

Leave a comment

Low inventory and multiple offers – listen as Scott MacDonald explains the current housing market from both buyer and seller perspective.  Scott offers practical advice to homeowners who are thinking of selling, as well as, market trends and forecast for the Northern Virginia Real Estate Market.
Contact Scott MacDonald (703) 652-5777 scottmacdonald@remax.net to learn more about your specific real estate market or read scottymacsblog.com/

Aside

Is it over yet? Why Northern Virginia Home Sales Went On A Wild Roller Coaster Ride

Leave a comment

October took the real estate market roller coaster ride.

Rates went up, rates came down.  Sales went down, sales went up.  Inventory rose, inventory came back down.

Real Estate Market Roller Coaster Ride 31OCT2013

In some areas, the number of multiple contracts went down, then they went back up.  Inventory of short sales and foreclosures were down, then they rose but luckily by not too much.  The government shut down and the government opened back up – luckily, it was not too long and did not have a tremendous impact on the housing market.

Our emotions went up, our emotions came back down, as there was a lot of concern about delays in closings associated with the shut down because of the reduced number of employees at FHA and the IRS, but we avoided a potential disaster there.  Additionally, we were worried about the government defaulting on their debt which would have sent interest rates skyrocketing, and again, fortunately, this did not happen.

Even though there were so many ups and downs, the market in October this year was still better compared to a year ago.  There were more home sales, higher home prices and more homes for sale for buyers to choose from, although the uncertainty skewed people’s perception.  So now you know why October was such a roller coaster for real estate.

What lies ahead on the horizon as we enter the winter market?  My belief is we will be in our typical winter market.  Homes will come off the market for the holidays.  Motivated, savvy buyers will be out buying homes.  Interest rates will remain in the low 4% range.  Home prices will continue to stabilize throughout the Northern Virginia area.  Houses that are priced right, in the right condition and right location will see multiple offers and our market won’t be as up and down as it was in October.  Basically, we will continue to have a robust housing market locally.

To learn more about your situation, please feel free to call me today. Scott MacDonald (703) 652-5777.

Scott MacDonald

RE/MAX Gateway, LLC

Forecasting The Real Estate Market With Government Shutdown

Leave a comment

Wow, where did September go?  It was a very interesting month – kids went back to school, football season started, the weather has changed, the housing market remained strong and the government shut down for the first time in 17 years.

Forecasting The Real Estate Market With Government Shutdown

It will be interesting to see how the stock market reacts to the government shutdown, what the impact will be on rates, the housing market and how long it lasts.  If it is a quick shut down, we will probably see little reaction in the stock market and as a result, rates and the housing market.  If it is a prolonged shutdown of a few weeks or more, the stock market will have a negative reaction, rates will rise as bond yields decrease and we could see a loss of momentum in the housing sector of the economy.  What will happen to government backed loans in process and how will it affect settlements?  None of these are helpful to our economy since the housing recovery leads the economic recovery as a whole.  At this time, it appears as if this could last longer than just a day or two so let’s get prepared for a rocky economic road the next few weeks.

Let’s talk about the real estate market in September.  We did see a pickup in sales over last year in Northern Virginia.  Inventory increased slightly which gave buyers more choices.  As inventory increased, distressed properties made up a lower percentage of this increase which is great for home owners.  New home sales continue their strong pace of sales.  Interest rates came back down as the government eased off their threat of reducing their purchasing of mortgage backed securities and we still see multiple contracts on properties in certain price points and locations.

All in all, September was a good month for Northern Virginia real estate.  We need this trend to continue, so let’s hope the shutdown gets resolved more quickly than it appears it will.

If you have any additional questions or concerns, please feel free to call me directly (703) 652-5777

Scott MacDonald

RE/MAX Gateway, LLC

Why has the real estate market slowed down?

Leave a comment

Why has the real estate market slowed down?  In my opinion, it is a combination of a few factors.

Why has the real estate market slowed down?

First and foremost, it is interest rates.  Over the last year, rates have risen nearly 1.5%.  A lot of people say they can’t believe with rates so low, how people cannot qualify for a mortgage.  Well this kind of increase will remove buyers from the market regardless of where the rates start and where they end up – 3.25 to 4.75 or 8 to 9.5.   An increase in interest rates like this is going to have an impact on the market.

Also, house prices have increased by over 17% the last 3 years in our area.  This price increase has also helped to eliminate buyers from the market.  Higher prices in any area of our lives – cars, restaurants, food, etc. will eliminate buyers – it is a natural fact.  Couple this with the interest rate increase and we have a slower market.

Additionally, there are fewer homes to choose from in the lower price points as well making it difficult for buyers to even find acceptable housing to purchase.  There are only 1,210 properties priced below $300,000 in all of Northern Virginia and only 271 are single family homes, the rest are town houses or condos.  If there are fewer options for entry into the market, there are going to be fewer sales thus slowing down the market.

The upcoming finance reform with QM, QRM, and Basel III the first of the year together with the easing of QE 3 leaves a lot of speculation about the future of rates and sequentially, the housing market.  Keep a keen eye on these developments to measure their impact.

So is the sky falling Chicken Little? 

Why has the real estate market slowed down interest rate increase

Well, let the numbers tell the story.  The housing market today is not substantially different than this same time last year and everyone was excited about the market then.  Funny how the brisk spring market with low inventory, low interest rates and multiple contracts has clouded the vision of some people.  Inventory is up just 6% over last year – not a terrible or scary number.  Sales are up in a week to week comparison to last year by 3.5% – a pretty good increase, right?  The 2.1 month supply of homes is virtually the same as last year’s 2.0.  Distressed property inventory has dropped 40% – which is a fantastic number.  This has resulted in a majority of the increase in homes for sale being arm’s length transactions – another good thing.  The last number to mention is properties that settled the last 30 days.  We are up 14% over last year indicating we are actually experiencing more sales.  So, if looked at from a long term perspective, our real estate market is actually doing pretty well.  All this being said, we still need to price properties properly as well as get them in the right condition to get them sold for our clients.

Keep a positive outlook on the market, good things will happen.  Now, go sell something!

Scott MacDonald

RE/MAX Gateway, LLC

Video

How are Interest Rates affecting the Northern Virginia Real Estate?

Leave a comment

Scott MacDonald of RE/MAX Gateway offers valuable information as to how interest rates are driving the real estate housing market in his video blog Scott’s Market Minute.

Sellers are urged to price houses competitively to sell fast. For a free Home Market Analysis, contact Scott MacDonald (703) 652-5777  There’s still time to get your home listed for sale!

Buyers, rates are climbing, now is the time to buy a home! Email Scott for a free optimized homes for sale search list. scottmacdonald@remax.net

What You Need To Know To Prepare For A Home Appraisal

2 Comments

We had a great training session with John Chapman and Nathalie Palmer from Omni Appraisal Services about the current market and how to help get your properties to appraise for the contract sales price or at least get better results.

Here are a few key items to take into consideration when know who you are working with on your appraisal:

There are two types of appraisers – licensed and certified. Licensed Appraisers can only do values up to $1,000,000. Certified Appraisers can do any property value. Additionally, Certified Appraisers must take a test and have a Bachelor’s degree. Only Certified Appraisers can appraise FHA loans.

Did you know there are two types of appraisers?
– Licensed and Certified
Do you know the difference?

  • Larger banks are paying less to appraisers through Appraisal Management Companies.  Almost all of the banks own them so they can make more money.  This is not always a “good thing”.  Often times you will get an appraiser with less experience or one that will rush through the process because they have to make up their income by doing more volume.  Appraisal companies are in place to put a buffer between the lender, Realtor and appraiser to perpetuate a more “arm’s length” transaction.  What has resulted is that the banks are using this as a profit center and not always employing best in class appraisers.
  • Check with the appraiser’s competency and local knowledge.  Ask where they are located and if they are familiar with your property/area.  Additionally, ask how long have they been appraising homes?  Lastly, check and see if they work from home or office?   Many small owner operators work from home and as a result, don’t get exposures to other appraisers.  This lack of networking, idea sharing and updates on the market can hurt appraisals.
  • Education for appraisers is getting tougher.  There is an apprenticeship for 2 years now.
  • There are two types of appraisers – licensed and certified.  Licensed Appraisers can only do values up to $1,000,000.  Certified Appraisers can do any property value.  Additionally, Certified Appraisers must take a test and have a Bachelor’s degree.  Lastly, only Certified Appraisers can appraise FHA loans.

What you need to be prepared for your appraisal:

  • Always bring your own comparable sales – make sure they are good comps so you can build creditability.  Even bring low sales and let them know what the issues were that resulted in their low sale – pet odors, back to power lines, short sale, foreclosure, etc.
  • If at all possible, provide plat/floor plan – proper measuring is critical because if its 100 square feet off the true square footage you will have issues
  • Bulls eye approach – first look in subdivision, then do a radius search of 1 mile, 2 miles, etc. to find the right comparable properties.
  • Use a couple of higher sales, couple of smaller home, the radius approach to finding properties and a couple within the timeframe of settling within 3 months or less
  • You now need to have 5 to 6 comps
  • Provide 1-2 under contract comps as part of your presentation
  • Find FSBO too!  They can help your cause
  • Pass on any and all information you know about your property – list all recent improvements and their cost/value to help support your price.
  • Provide details on other offers if you had multiple offers
  • Provide additional pricing details like the Home Pricing Wizard, RBIntel statistics, and articles relating to escalating prices.

Steps to overcome low appraisal

  • Get a “good” conversation going, kill them with kindness
  • Provide new info that the appraiser might not be aware of when you met initially at the property
  • Be there when the appraiser wants to meet at the property
  • Use their language
    • Beneficial
    • Neutral
    • Adverse

Appraisers need to be concerned with the following items:

  • Safety –  the house needs to be safe, easy to explain
  • Soundness – the house needs to have structural integrity including but not limited to the roof and foundation
  • Security – the house needs to have locks on windows and doors

Integral issues for appraising

  • You have to know the condition and the subsequent ratings of the properties condition.  The rating scale goes from C1-C6.  One is the best and 6 is the worst.  Speak with the appraiser in terms of the condition to get more value for your clients
  • You also have to know the quality of the construction in order to help get more value.  Was the home custom built or was it a cookie-cutter built in the late 70’s with 7.5 foot ceilings?  These rankings range from Q1-Q6

As you see, it is extremely important for you to be a professional agent, do you job thoroughly for you clients and get the results that everyone is looking for from the appraisal process.  Get it?  Got it?  Good!

Now, go sell something!

Scott MacDonald

RE/MAX Gateway, LLC

 

Aside

Top 3 Reasons Why You Should Buy or Sell a Home in Northern Virginia NOW!

1 Comment

Wow, it has been a crazy 8 weeks for interest rates.  As we have discussed in the past, if someone was considering buying or refinancing, they should do it then.  Well, I hope you took that advice because interest rates have gone up three quarters of a point in just the past 2 months.  This week, we saw the largest increase in rates since April of 1987 – that’s 26 years!  The reason behind the increase is Ben Bernanke of the Federal Reserve made remarks that they may be tapering its bond purchases later this year if the economy continues to improve.  Although the stock market was up the second quarter with all three indexes recording gains of between 2% and 5%, it too took a hit on these comments.  We will have to keep a close eye on the economy and see where rates will go moving forward with this type of news on the forefront.  If you recall, at the beginning of the year, we predicted rates to rise to around 4.5% which I believe will still be the case, I thought it would be more gradual and not so drastic.

Largest interest rate increase since April, 1987

Largest interest rate increase since April, 1987

All of this being said, interest rates from a historical perspective, are still very low.  Today 30 year fixed rates are 4.25% with .75 points on conforming loans above $417,000.   While the increase in interest rates will certainly dampen some housing activity, the effect will be softened by the high level of buyer affordability, and home sales should still remain strong.

What else do we see in our real estate market?  We continue to see housing prices increase throughout the area as demand remains strong despite the increase in rates which is good news for our sellers.  We are also seeing more houses coming onto the market in Northern Virginia which is good news for our buyers. The inventory of resale homes is above 5,000 for the first time since the third week of October 2012.  Since the beginning of the year, inventory levels are up nearly 37% but we are still in a seller’s market with just a 1.4 month’s supply of homes.  The market still remains competitive with many properties receiving multiple contracts.   We had one house with 3 contracts on it this week in Virginia Run.  Distressed property inventory remains very low as well – just 6.9% of the market which is good news for everyone.   We should continue to see these trends continue throughout the summer.

Lastly, we are excited to announce we have signed a lease on our 5th office.  It is in the Clarendon section of Arlington and is located at 3000 10th Street – look for our grand opening announcement soon.  Please let us know how we can serve you.

Scott MacDonald

RE/MAX Gateway, LLC

What You Need To Know When Buying or Selling a House In Northern Virginia This Summer 2013

Leave a comment

The real estate market continues to be hyper-local today.  We are seeing multiple contracts in many areas and yet houses are sitting on the market in others.  Prices are rising in many areas while we see price reductions in others.  We see houses staying on the market for mere hours to just a few days in some areas while other markets see houses staying on the market for over 30 days to even longer further out from Washington.  If you are buying or selling it is important to seek the advice of a professional so you know what the market is like in your area of interest to give you the right advice.

Image

There are some aspects of the market that are not hyper-local.  These areas that are influencing the market are interest rates and distressed property inventory.  Interest rates have been on the rise for nearly the whole month of May.  Don’t get me wrong, interest rates are still great and people shouldn’t be concerned but if you are waiting for them to come back down to make a move, the sage advice is to do something now and don’t delay as it will cost you more in the future.  As far as short sales and foreclosures are concerned, their numbers continue to dwindle in Northern Virginia which is great news for everyone who owns a home.  As of the end of May, only 6.1% of the total inventory was made up of distressed homes and they represented only 8.2% of sales in the region.  How does this affect the market?  These numbers have help aid in the rising of prices throughout our area as there are fewer blighted properties, more people caring for their yards and homes so everybody wins.

Our real estate market continues to be one of the best in the country because of our low unemployment rates, increasing property values, tourism, plus we have easy access to water, mountains and all the Washington DC metro area has to offer.  Please let us know how we can help you or someone you know looking to buy or sell a home.  (703) 652-5777

Scott MacDonald

RE/MAX Gateway, LLC