How walkable is your neighborhood?

A neighborhood that is built to accommodate access to local amenities without the reliance on vehicles of transportation contributes to its degree of walkability. Providing health, environmental and economic benefits, walkability is an imprtant factor for many when deciding which community to settle in. A town that is easy to meneuver also gives residents the opportunity to increase their social interactions, become more invilved in local issues and reduce crime as more people walk around and watch over their communities.

Curious about your neighborhood's walkability quotient? Check out http://www.walkscore.com/

Cheers,

Kevin

Homebuyer Tax Credits in DC: It's Not the End!

While the Federal first and repeat buyer credits have gone away, the District of Columbia retains its $5000 first-time buyer credit until the end of 2010. The DC credit reduces the buyer's federal taxes. The credit cannot be used as a down payment. It is a valuable incentive for buyers who qualify to continue to shop and purchase in DC. For more information, please visit http://www.dc.gov/ and http://www.irs.ustreas.gov/.

Thinking of renovating your (older) home? Read this!

New EPA Lead Paint Laws Effect Remodeling Projects

The US Environmental Protection Agency (EPA) is implementing new lead paint laws that go into effect tomorrow. The new lead paint laws require any renovation work performed on houses built before 1978 to be performed by a certified contractor. The new law is raising questions from home owners and contractors. Contractors will be required to provide home owners the "Renovate Right" brochure, which contains information about the new law.

The new lead paint law involves training and certification of remodelers, safe work-site practices, verification and record keeping. It’s very important to understand that the new law pertains to projects on any house built before 1978, with a few exceptions as follows:

• The home or child-occupied facility was built after 1978.
• The repairs are minor, with interior work disturbing less than six sq. ft. or exteriors disturbing less than 20 sq. ft.
• The homeowner may also opt out by signing a waiver if there are no children under age six frequently visiting the property, no one in the home is pregnant, or the property is not a child-occupied facility.
• If the house or components test lead free by a Certified Risk Assessor, Lead Inspector, or Certified Renovator.

What Does the New Law Mean To You?

You’re probably wondering what this new law might mean to you and your next remodeling project. The obvious answer is a healthier home for you, your family and people that perform renovations to your home. The other obvious answer is an increased cost for contractors to adhere to the new rules --- which ultimately means an increased cost to you.

Small contractors may choose to steer clear of and avoid older home renovations. A certain number of small replacement window contractors may go out of business or stop providing inexpensive window replacement services.

If you hire a contractor to do a renovation in your home that was built prior to 1978, be sure you hire a certified contractor. You should ask to see your contractors RRP certification prior to hiring them. (Contractors performing work without the certification face penalties of up to $37,500 per day.)

Built to last

The future of real estate looks bright. The long-term outlook for the housing market is very promising, thanks to the presence of the Echo Boomers --- the children of the Baby Boomers. The sheer size of this generation now reaching adulthood, combined with the increasing life expectancy of past generations, should keep household growth on track in the United States. Over time, the pent-up demand for housing and today's low levels of home building are expected to reduce the vacancy inventory, bringing housing markets into balance.

Built to last
Stemming from the most basic human need for shelter, the real estate industry is fundamentally built to last. The state of the housing market is impacted by many factors including mortgage rates and the volatility of other investment options. However, it is the limited supply along with the growing population that drives the need for housing.

The next surge in demand will be stimulated when Echo Boomers join the Baby Boom generation as active participants in the housing industry, reinvigorating the real estate market with opportunity and validating the purchase of a home as a lucrative investment.

How the media reports and distorts the housing market

Thinking of buying a short sale or foreclosure? Read this.

One of the first things many of our new buyers say to us in our initial meetings is: “We want to buy a short sale” or “I’ve heard you can get a good deal on a foreclosure.” Our first instinct is to roll our eyes and pat them on their arm, all the while thinking about how naïve and helpless they look sitting across the table --- all wide-eyed and salivating over the inevitable steal they’re going to be getting in this “buyer’s market.” So begins the process of educating them about the process of actually buying a short sale or foreclosure.

Suffice it to say: Buying a short sale or foreclosure is not for the faint of heart.

To say the least.

Really.

We're not just saying that.

Yes, you can get a great deal on a short sale or foreclosure (note, we didn’t say “steal”), but there are many hurdles to clear before you’ll get the keys to your new home. With a bit of input from our broker, Marj Rosner, we’ve put together a list of things for you to think about before you head out to start looking at short sales and foreclosures.

• Many of these distressed properties are going to be sold in “as-is” condition, as of the time you view them. Banks do not typically make any repairs, and short-sale sellers often do not have the funds to make repairs. Further, if the bank is selling the property through foreclosure, there will not be any property condition disclosures. We advise our clients to inspect any property carefully before making an offer. Consider investing the money in a home inspection in advance; it may cost a bit (usually a few hundred dollars), but is worth it if you end up purchasing the property. Sometimes the seller and/or the bank will treat for termites if an infestation is discovered, but more often than not, it will be the responsibility of the purchaser to treat an infestation or damage. If your lender requires such repairs, be prepared to cough up the money for these repairs before you actually own the property.

• Utilities may or may not be on when you view prospective properties. Between October and April, most vacant properties are winterized, so do not attempt to use any appliances. Keep your flashlight handy! In the event that you do have a home inspection, tell your inspector prior to the inspection if the utilities are not on, and/or you will need to make arrangements with the listing agent to have utilities turned on --- usually at your expense. Invariably, there will be a fee for de-winterizing and re-winterizing the property before and after the inspection. Oh, and you’ll also need to do this before your pre-settlement walk-through inspection too.

• The bank and/or the listing agent may request that your earnest money deposit be placed with the listing agent’s broker. They may also request that you settle at a title company of their choosing. This can be disastrous. What if the listing broker mishandles your deposit? What if the seller’s title company does not adequately research the chain of title? Occasionally, these “requests” are really “requirements.” If we think it’s feasible, we recommend some pushback at this juncture. You may want to consider selecting a settlement/title company to represent your interest; and you can write your earnest money deposit to that organization. It is also important to select your settlement company early for several other reasons. First, once your offer is accepted, or occasionally before it is accepted, many banks want to see an estimated HUD-1 settlement statement at the offering/acceptance price before approving the sale. Your settlement company is usually the best place to get an accurate estimated HUD-1. Second, your settlement company will perform an independent title search of the property’s chain of ownership so as to provide you with assurance that there are no outstanding liens or encumbrances on the property and to provide you a valid title insurance policy.

• At the time you submit an offer through your agent, you should be prepared to provide proof of funds and/or a letter of approval from a lender, along with a photocopy of your earnest money deposit Check. Many banks will not process an offer without this information. Please make certain the name, address, phone, and fax of the lending institution are clearly legible on the letter.

• Most of the banks approving short sales and foreclosures are out of town, in different parts of the country and in different time zones. At best, you will need to wait several days for a response. In some cases, the wait is weeks. Occasionally, you will wait for several (or many) months for approval (last year, we had a buyer who waited NINE MONTHS for a response!). Some buyers ask us to put a written deadline in their offer. Don’t bother. Most lenders simply ignore such deadlines. The time you’ll wait for a response varies greatly depending on which bank or banks are involved. Also, you should understand that, in many cases, there is not just one lien holder, but several, and that all of these lending institutions must approve a sale. We can’t stress the following enough (so we’ll “shout” it for you): “IF YOU HAVE A RIGID TIME DEADLINE BY WHICH YOU NEED TO MOVE, THINK SERIOUSLY BEFORE ENTERING INTO A CONTRACT ON A SHORT SALE OR FORECLOSURE.” If you’re trying to take advantage of the $8000 tax credit and need to settle by June, good luck. If you want to be in your new home before your baby is born, good luck. You will have very little control over the timing of the process. No amount of calling these banks, cajoling asset managers, dropping off doughnuts (as one client did), threatening or screaming will speed this process up. We encourage massive doses of patience!

• Although it is counter to anything you have ever been told, many banks do in fact negotiate verbally. Be prepared to hear that your offer is accepted but you may receive no accompanying paperwork whatsoever. It can be days or weeks before you will see anything in writing. This can be a tense time. (Additionally, banks almost never accept offers contingent upon the sale or settlement of another property. Expect such offers to be rejected or ignored entirely.) You and your agent may feel frustrated by the absence of responses/information. This is nearly always a function of the bank(s)’ procedures and is not an excuse to abuse either your agent or the listing agent!

• Settlement and title issues DO occur with short-sale and foreclosure properties. These can delay any time frame. We advise you to have a back-up plan if settlement does not occur according to the schedule in the contract.

While this list is by no means exhaustive, we hope that it gives you a glimpse of what the process of buying a short sale or foreclosure. Like we said, these properties can be good deals. Only you can decide if you have the temperament to make it through the process!

Today's RealtorRant: Learn how to leave a content VM!

Hey, all. Kevin here.

I haven't posted in a while and wanted to get back into the swim of blogging.

This week, with all the snow, our team has been working remotely from our individual homes, and I've been giving some thought to one of my biggest pet peeves. Agents who either don't know how --- or can't be bothered --- to leave an effective voice mail message.

Because we've been trapped at our houses this week, we've each been using our cell phones to communicate with the outside world. Now, if you know much about me at all, you'll know that I'm not a huge fan of the phone. It's a necessary evil of this business. Until the time when we use Twitter to negotiate contracts (I hope that day is coming soon!) though, we need our cell phones.

I rarely answer a call on my cell unless it's one that I recognize. That means I often need to respond to voice mail messages from folks who call me. Most of the time, this is fine. If a person has left a decent content message, I can retrieve whatever information I need to respond to his or her call efficiently.

However, my least favorite type of voice mail message is what I call the "Call Me" message. This is when someone calls and leaves a message that basically says, "Hey, this is Agent Fulana, please give me a call at XXX-555-1234."

Perhaps it's not rational, but this kind of message drives me to distraction.

First, I have no idea why you're calling; second, because I have no idea why you're calling, I may not be able to efficiently help you when I do call you back; and third, if I call you back and YOU can't answer, I've wasted time in returning the call in the first place. Now, we have to continue this round-and-round game.

Tag, you're it.

So, here's an article to assist all those Realtors who need to learn this skill:

How to Leave the Perfect the Perfect Voice Mail.

You're welcome.