Once More, With Savings

Once More, With Savings
Homeowners increasingly are selecting used building materials to make projects look better, cost less and save resources.

By Allan Lengel
Washington Post Staff Writer
Saturday, August 4, 2007; F01

On a sizzling Saturday, inside a toasty warehouse, Eunice Youmans walks past the vintage fireplace mantels, unhinged doors and light fixtures at Community Forklift, a nonprofit store in Prince George's County that peddles reusable housing materials.

In one hand is her 10-month-old son, in the other a tape measure. Her two young daughters trail behind her like ducklings. She zeroes in on a used 48-by-17-inch kitchen cabinet.

It needs some work. It has been sitting for months. One door is chipped. The white paint is old. She plans to fix it up, refinish it and put it in her dining room.

The price is $50. She gets it for $30.

"It's much cheaper and good-quality stuff," the Cheverly resident says of the store's products, extolling the benefits of buying used rather than going to the large home stores. "I come here all the time."

In a disposable society, where new is often equated with better, where big-box stores such as Home Depot have become the temple of home improvers, a growing number of homeowners are turning to reclaimed or reused products. In the past five years, the number of reused-material stores around the country has doubled, from 150 to 300, according to the Building Materials Reuse Association.

Driven by economics, environmental concerns, aesthetics or old-fashioned quality -- or all the above -- do-it-yourself homeowners, as well as contractors, handymen and landlords, are buying construction products at a fraction of the retail cost -- such things as marble countertops, cast-iron radiators, sunken bathtubs, toilets, sinks and solid five-panel pine doors. Some come from homes built more than a century ago, some from new-home construction sites.

Sometimes there's even historic value: The Community Forklift recently landed marble from a federal building and a chandelier and several mahogany doors from a penthouse at the Watergate.

"Most people are proud of themselves for recycling cans and recycling newspaper and buying bags that are made out of recycled plastic, but people don't realize that they can recycle entire houses and that they can buy recycled products for their homes," said Ruthie Mundell, outreach director for Forklift, which opened in November 2005.

"When we first started, we had probably five customers a day. Now we probably have 150 sales a day," she said. "People are finding out about the concept. They realize how much it makes sense financially and environmentally."

In the Washington region, the Building Materials Reuse Association and Habitat for Humanity's Habitat ReStore Web site together list 60 for-profit and nonprofit operations that collect or sell reusable and reclaimed products: three in the District, 17 in Maryland and 40 in Virginia.

Nonprofit organizations such as Community Forklift, the Loading Dock and Second Chance in Baltimore, and Habitat ReStores in Virginia and Maryland get all or most of their products from donations, many of which come from homes that have been torn down or "deconstructed" instead of being demolished by bulldozers and wrecking balls.

"I would say about 85 percent is donated," said Desiree Carter, general manager of the Loading Dock. In addition, "We get some materials from landfills" and buy some from places going out of business, such as plumbing supply shops.

Often, about 80 percent of a disassembled home can be salvaged or recycled, experts say. In that case, donating the materials is a boon for everyone, recycling advocates say. Homeowners get a tax write-off by donating the disassembled materials to the nonprofit stores and save on trash fees at the landfill. The environment benefits, as do the people who bought the products.

"Some homeowners can't stand good material -- hardwood floors, kitchen cabinets, and on and on -- just being dumped in a landfill," said Paul Hughes, president of DeConstruction Services of Fairfax, which tears apart homes and donates the materials to nonprofit organizations. "Many builders are starting to feel the same way."

For many people, such as Gregory Cavanaugh, the savings are attractive, but more important is "the durability of the product."

Cavanaugh, a contractor, said he saved more than $1,000 recently by buying six used doors -- five from Community Forklift and one from Second Chance -- for a restoration job at a Capitol Hill home built in the 1800s.

He said he paid $58 for an entrance door instead of about $300 new; $260 for a walnut Victorian-style door that "you'd probably pay upwards of $1,000" for; and $25 each for the interior doors that would run "upwards of $150" each at a lumber store.

On top of that, he said, he got a good deal on used yellow pine, a couple of hundred years old, that he used for door and window frames and windowsills. He said the quality was superior to that of lumber sold today.

"Basically, what you buy in the stores today is white pine, and it's junk," he said. "In two to three years, it can start to rot."

Still, not all reusable material is cheap.

Mountain Lumber in Ruckersville, Va., which manufactures products from reclaimed wood, charges an average of about $3,000 for flooring for a 300-square-foot kitchen and about $8,000 for an 800-square-foot one. And that's just for the product -- the company does not do installation.

Willie Drake, president and founder, said the wood averages 100 to 600 years old and comes from barns, ancient temples, buildings and schools around the world, including countries as far away as China. Recently, he said, the company bought 25-by-25-foot wooden Guinness beer vats from Ireland to convert to flooring.

Drake said most customers are from the United States, particularly the mid-Atlantic, but he "just shipped an order to Moscow and just sent an order to Italy."

"We have never cut down a tree to make our product," he added with pride. "It's all from 100 percent reclaimed wood."

Some places specialize in certain products.

The Brass Knob, a for-profit store on N Street in Northwest Washington, has an impressive collection of cast-iron radiators, some from the early 1900s, that cost about $85 to $500. It also has more than a thousand used doors. There's a second location, in Adams Morgan, which operates under a different owner.

Ron Allan, owner of the N Street shop, said he attracts a lot of homeowners, architects and contractors who work on old homes.

"I've almost become a Victorian Home Depot," he said.

Jim Schulman, president of Community Forklift and a big believer in the reuse business, concedes: "This place is not for everybody. Not everybody is a do-it-yourselfer."

Sometimes, even the do-it-yourselfers bump up against a task too great.

That was the case with Pamela Preston of Clinton, who was at Community Forklift one recent Thursday with her 9-year-old son Jelan, hunting for kitchen cabinets.

She had been to Home Depot, which wanted about $5,000 for new kitchen cabinets. She picked out used cabinets at the Community Forklift for about $500.

They needed refinishing, which she said her husband would do. She seemed excited.

"I'm going to put him to work," she said with a smile. "Five thousand dollars is ridiculous when you have other things to do with your money."

She took pictures and measurements. She asked the store to put the cabinets on hold until she could talk to her husband.

By the next day, it was a no-go: Her husband thought it would be too much work.

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

NAR: Market Shows Signs of Improvement

Daily Real Estate News August 1, 2007

The market is likely to stabilize in the months ahead, according to the NATIONAL ASSOCIATION OF REALTORS®’ forward-looking indicator on pending home sales.

The Pending Home Sales Index, based on contracts signed in June, was 5 percent higher from the downwardly revised May index of 97.5, but is still 8.6 percent below June 2006 when it stood at 112. The 5 percent monthly gain is the largest in more than three years, since a 6.1 percent increase was recorded in March 2004.

Lawrence Yun, NAR senior economist, says it’s encouraging that the increase occurred in all four major regions of the United States. “However, it is too early to say if home sales have already passed bottom,” he says. “Still, major declines in home sales are likely to have occurred already and further declines, if any, are likely to be modest given the accumulating pent-up demand.”

The index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed.

What Happened Regionally

Here’s a breakdown of what the PHSI showed across the country:

-West: the PHSI increased 8.6 percent in June to 103.6, but was 5.5 percent below a year ago.

-Northeast: the index rose 3.1 percent from May to 96, which is 2.4 percent lower than June 2006.

-South: the index increased 4.7 percent in June to 111.6, but was 12.7 percent below a year ago.

-Midwest: the PHSI rose 3.5 percent in June to 92.5, which is 8.2 percent lower than June 2006.
— REALTOR® Magazine Online

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

Real estate: Good curb appeal helps sell a house

BY JESSICA DAMIANO
Special to Newsday
July 26, 2007, 7:56 AM EDT

Terry and Maureen Ferrante of Sea Cliff had always taken pride in the property around their painted-lady Victorian. But after they placed the house on the market early this month, they worked even harder to ensure the gardens were impeccable.

"We pruned all the trees and bushes and planted flowers," Maureen Ferrante, 58, a mental health counselor, says. "Terry planted about 150 impatiens in various colors and put down wood chips so it would look neat. He cleaned everything up and made sure that when you pull up to the house, you see how beautiful it is."

That's exactly the approach homeowners should take in landscaping their property to speed up the sale of their house, says Barb Schwarz, creator of the home-staging philosophy and founder of the International Association of Home Staging Professionals, which educates stagers, or stylists, to prepare houses for sale.

"We've found that staging the outside is crucial because otherwise you can't get people inside," Schwarz says, adding that homeowners who stage the outside of their houses will garner a 3.95 percent higher selling price than those who do not.

John Langone, a partner and associate broker with Richard B. Arnold Real Estate in Sea Cliff, says some buyers won't even go into a house if they don't like its outside appearance.

Something as basic as an unobstructed view of the house can add to its appeal, Langone says. "If bushes and trees are blocking the house, it definitely detracts," he says.

Neatness counts
So how can sellers entice shoppers to get out of their cars and come inside?

One thing many homeowners forget to do, Schwarz says, is to declutter the yard of toys and little pots. "It's far better to have fewer bigger pots than the clutter of smaller hanging pots," she says. "They just weigh down the house."

Another tip from Schwarz, who reminds sellers that buyers only know what they see: "If the grass is dead where the dog has urinated, paint it. I recommend using Sherwin Williams Emerald Green. That's the right color."

Just as you'll likely vacuum more often and keep your countertops clear while your house is on the market, Val Allocco, owner of Staged 2 Sell NY, a home staging company in Northport, says the same effort should be put into the garden.

Changes don't have to be upscale or expensive, she says.

She suggests that sellers aim for a neat and well-manicured look: Be sure the grass is cut and bushes are trimmed, that nothing is overgrown and that garden beds are free of weeds.

If there's no color in the garden, plant some flowers and place planters outside the door or along the walkway. She says adding color can be as simple as purchasing an inexpensive hanging planter filled with impatiens. Clip the hanger and set it on the porch.

Landscaping touches
Allocco also recommends paying a landscaper to do a good weeding and to edge the lawn. "This is where people get their first impression," she says. "If the yard doesn't look well-manicured, then they feel the home hasn't been well maintained."

Schwarz recommends trimming trees from the bottom to allow the house to be viewed through them. "Don't chop off the tops," she instructs. Foundation plants, on the other hand, should be rounded off and trimmed from the top so they don't block windows.

She also recommends looking at your house from across the street. "It's a different view than you'll get from your own driveway," she says. "It's the only way to see what buyers will see."

Cindi Wardell of Huntington recently went into contract on her four-bedroom Colonial near her asking price of $849,000 in less than eight weeks. Although she didn't hire a stager, she did arrange to have her garden designer, Marie Knapp of Laurel Hollow, visit more often. She did more weeding and kept the garden more spruced up than usual and she changed the flowers in the planters to keep them fresh.

"I always start with annuals," Knapp says. "I added spring flowers in pots and along the edges of borders. When they faded, I put in summer annuals like Vinca periwinkle, and I jazzed up her pots."

Knapp recommends dressing up bare spots in the garden with flowerpots. "The great thing about pots is you can move them around," she says. And if there's time to plan ahead, she suggests a trio of shrubs that provide season-long interest: Lilacs, roses and hydrangeas.
Knapp, who favors annuals like Plumbago and Angelonia, also took care to ensure the willow and Annabelle hydrangea in Wardell's garden match the off-white trim on the house and the picket fence.

Her pet peeve? "I think it's such a turnoff when you go to a house and the foundation plantings are out of scale. It's so uninviting," she says. "If something is overgrown, I would consider removing it and putting in something smaller."

Planning far in advance
Wardell, 52, who is retired from the real estate industry, says she believes the presentation of her house helped counter its location on a busy road that might have been unappealing to some shoppers. "I knew it needed something extra because of where it was situated," she says.

"When I bought the house three years ago, there was no landscaping at all," Wardell says. "What I did was mostly for myself, but I also thought about resale value. In the backyard, I put in 12 of the fastest-growing evergreens ever - Leland cypresses - so you can't see any of the homes behind me anymore. I think the secluded feeling really added to my selling price."

In addition to landscaping, Allocco says other front-yard items often are overlooked. The driveway should be clean and presentable. The walkway should be free of stains. If it isn't, she recommends power-washing. If it's made of cement, be sure there aren't any weeds growing through the cracks, she advises.

For a finishing touch, Allocco says buyers should purchase a new front doormat. "The little things really make a difference," she says.

The bottom line, Langone says, is pride of ownership. "When people take care of the outside, it shows that they love their home. When buyers see that, it gives the impression they take care of the inside as well."

Tips for a snip-shape yard
Even if you think you already have good curb appeal, Northport home stager Val Allocco says "styling" can help you get top dollar. And you don't even have to spend a lot of money. Here are five elements you can borrow from successful seller Cindi Wardell's Huntington home for creating an inviting entrance and getting you on your way to that coveted "sold" sign.

-Planters on front steps add color.
-Lawn is well manicured.
-Bushes are neatly trimmed.
-Plantings create symmetry.
-Garden beds are weed-free.

For a winter wonderland
What about winter? There isn't much you can do by way of landscaping during the winter months, but these tips from Northport home stager Val Allocco might make your house more inviting:

-Keep the sidewalk shoveled.
-Make sure the walkways are never icy.
-Put a welcoming wreath on the front door.
-For a manicured look, buy two inexpensive, small evergreen trees and place them in planters on either side of the front door.

- JESSICA DAMIANO Copyright 2007 Newsday Inc..

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

6 Incentives to Attract Buyers to Your Listings

Daily Real Estate News July 17, 2007

6 Incentives to Attract Buyers to Your Listings

Flashy buyer incentives — such as a new TV or car — may entice some buyers, but bottom line perks are more likely to close a sale, say experienced real estate professionals.

Here are the six most common buyer incentives in today's market:

1. Reduce the price. "The price is something that is a common currency — it appeals to everybody," says Gene Rivers, who owns four Keller Williams offices in Florida.

2. Pay points. One point is 1 percent of the loan amount, charged as prepaid interest. Sellers can pay these points on behalf of the buyer, so for the first year or two, the buyer has a lower mortgage payment.

3. Assist with the down payment. First-time buyers without enough money for a down payment appreciate this kind of assistance.

4. Pay closing costs. Closing costs generally add up to somewhere between 2 percent and 7 percent of the loan value, according to Freddie Mac. Buyers who are stretching to make a down payment will be attracted to this type of help.

5. Add a home warranty. A residential service contract is some insurance that the buyer won’t encounter high repair costs in the first year or two of home ownership.

6. Pay home owner association fees or pool maintenance. Paying these kinds of predictable maintenance costs at the beginning can be a nice welcome to the buyer when money undoubtedly will be tight for them.

Source: MarketWatch, Amy Hoak (07/15/07)

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

NAR: Home Prices to Recover in 2008

Daily Real Estate News July 11, 2007
NAR: Home Prices to Recover in 2008

The latest economic forecast by the NATIONAL ASSOCIATION OF REALTORS® shows home prices recovering in 2008 as housing inventory falls from current levels.

“Buyers now have an overwhelming advantage given the wide selection of homes available in many markets,” says Lawrence Yun, NAR senior economist. “But with profit margins coming under pressure, homebuilders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state.”

NAR says existing-home sales will begin picking up late this year, rising to a total of 6.11 million for 2007 and 6.37 million in 2008. Those numbers are both lower than last year's 6.48 million.

Meanwhile, new-home sales are projected to reach 865,000 in 2007 and rise to 878,000 next year, compared with 1.05 million in 2006. Housing starts, including multifamily units, are forecast at 1.43 million units this year and 1.44 million in 2008, down from 1.80 million last year.will start to rise early next year.

Prices Seen Rising for New, Existing Homes

Existing-home prices are likely to rise 1.8 percent to a median of $222,700 in 2008 after a 1.4 percent decline this year to $218,800.

The median new-home price should rise 2.2 percent to $245,400 next year following a 2.6 percent drop in 2007 to $240,100.

“Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008,” Yun says. “Local conditions vary considerably, but with historically low mortgage interest rates this summer and sustained job gains, it could be a good time for first-time buyers with a long-term view to test the housing waters.”

Other Predictions: Mortgage Rates, Jobs, GDP

The 30-year fixed-rate mortgage is estimated to average 6.7 percent during the second half of this year, and fluctuate around 6.6 percent in 2008.

Growth in the U.S. gross domestic product (GDP) will probably be 2.0 percent in 2007, compared with a 3.3 percent growth rate last year; GDP is forecast to grow 2.8 percent in 2008.

The unemployment rate is likely to average 4.6 percent in 2007, unchanged from last year. Inflation, as measured by the Consumer Price Index, is projected at 2.6 percent in 2007, down from 3.2 percent last year. Inflation-adjusted disposable personal income should rise 3.0 percent this year, up from a 2.6 percent gain in 2006.

— REALTOR® Magazine Online

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

'Groundbreaking' Celebrates The Old and New

By Jacqueline DupreeThursday, June 28, 2007; Page DZ03

Ballpark and Beyond is from Jacqueline Dupree's blog on development in Near Southeast Washington, an area between Capitol Hill and the Anacostia River that is being transformed by the construction of the Nationals baseball stadium.

On Tuesday, the D.C. Housing Authority had a ceremonial groundbreaking at Fourth and K streets SE to celebrate the redevelopment of the old Arthur Capper/Carrollsburg public housing project.

It was a pretty warm day, but the tent was air-conditioned. There was a bit of a revival feel as authority Executive Director Michael Kelly, D.C. Council member Tommy Wells (D-Ward 6) and other officials sang the praises of the federal-city-private partnership that has leveraged a $35 million U.S. Housing and Urban Development grant into a nearly $500 million revitalization project.

Kelly and others spoke with particular pride about how all 707 units of public housing at Capper/Carrollsburg will be replaced in the new development, which will include 525 affordable rental units and 330 market- and workforce-rate homes. The 23-acre project is a joint venture of Forest City Enterprises, Mid-City Urban and the authority.

The townhouse portion of the redevelopment, now named Capitol Quarter, will have about 121 market-rate and 91 workforce-rate ownership houses. An additional 65 townhouses will contain 111 subsidized rental units and Section 8 ownership units.

The market-rate houses are being made available for reservation in monthly blocks, with tents popping up at the sales center as hopeful homeowners stake their claims. There was a lottery in October for the first 20 workforce units. I imagine another will be coming before too long, although nothing's been announced.

Construction will begin on the first homes in early 2008, and infrastructure work at the site has begun.

Many former Capper residents were at the groundbreaking, clearly excited about what they will be returning to. Kivette Abraham, whose mother moved there when the complex opened in 1956, spoke of being one of the 55 Capper households participating in the community support services homeownership education and counseling program, which will help her to buy a home in the community where she's spent almost her entire life.

As for the rest of the project, 300 low-income rental units have been completed since December in two new buildings for senior citizens and low-income residents. Four mixed-income apartment buildings planned along the new Canal Park between Second and Third streets and I and M streets SE will eventually complete the residential component. Construction probably won't start before 2010. In the meantime, temporary surface parking lots will soon appear on those blocks to help ease the expected Nationals stadium parking crunch.

Office buildings totaling 700,000 square feet are also part of the long-range Capper plan, as are 50,000 square feet of retail. A new community center is on the boards as well, replacing the one demolished earlier this year.

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

Road to a Retail Makeover

Road to a Retail MakeoverD.C.'s Plan to Revive Shopping Areas Leads Through H Street NE
By Ylan Q. MuiWashington Post Staff WriterMonday, June 25, 2007; D01

On H Street Northeast, there are hipster bars that draw weekend crowds large enough to rival those of U Street. There is a dance studio that teaches ballroom, ballet and Afro-Caribbean. A massive red-brick luxury condo building is rising on the western end, touting the slogan "DC's next great quarter."

The corridor once infamous for race riots and crime is in the midst of an urban revival. But one critical piece is missing: the shopping.

A few veteran mom-and-pop stores have survived the decades of neglect. A handful of national chains, such as Payless ShoeSource and Rite Aid, have staked out ground. But retail along H Street has not caught up with the rest of the development. Check-cashing stores, tax preparers and liquor stores dominate.

The District is looking at the street as one of the first places where it can influence the shopping landscape. Recently, Mayor Adrian M. Fenty (D) and Planning Director Harriet Tregoning said the District will develop a citywide plan to keep and attract retail, and stem the $1 billion in sales tax they say is leaked to surrounding jurisdictions. The plan will target 20 neighborhoods where stores have failed to take hold.

H Street is on the list, along with Georgia Avenue, Shaw, M Street SE, Nannie Helen Burroughs Avenue, East Capitol Street and Bladensburg Road. The other neighborhoods have not yet been identified.

Each faces its own challenges. Some require redevelopment from the ground up, others resemble suburbia. But H Street is perhaps the closest to a turnaround.

The community hopes the city's plan will create a better environment to attract retail. Among their requests are tax breaks for restoring old buildings, an expedited permitting process and cleaner streets.

"They talked about H Street in the theoretical and now we're here," said Joe Englert, who owns several popular bars in the neighborhood. "Now they've got to get in a different mind-set."

During a bumpy van ride through the corridor, Tregoning and Neil O. Albert, deputy mayor for planning and economic development, spoke about their visions of higher-quality stores on the street.

Over the next 10 years, the city thinks the neighborhood could support 300,000 square feet of retail. Through its Great Streets program, the city plans to spend $27 million sprucing up the corridor with wider sidewalks, more trees, flattering lighting, bike racks and signs for community attractions. There are plans for a trolley to ferry residents along the 1 1/2 -mile stretch.

Build it and they will come seems to be the prevailing philosophy. There are hopes for more apparel retailers, a jewelry store, book shop, pet store. The blocks from 7th to 12th streets are designated as the retail epicenter. To the west is the residential neighborhood that, with any luck, would feature a grocery store like Trader Joe's. To the east is the arts-and-entertainment zone, ending at Hechinger Mall.

"You can almost never begin with retail first, because retail wants customers," Tregoning said.

About 40 to 45 of the street's 300 buildings are vacant, according to Anwar Saleem, head of the city's Main Streets initiative on H Street, which aims to spur business. That's an improvement from the roughly 150 that were empty four years ago, he said. A slew of new businesses have moved to the area -- clothing boutique and salon Stella Bleu, coffee shop Sidamo, a gym called WillPower that advertises pilates classes. There's also a Subway, Rainbow clothing store and GameStop.

Retailers that can keep up with the $2 million condos going up down the street are still several years away by the most ambitious estimates. A strip shopping center called H Street Connection dominates the corridor's retail district -- not quite the historic feel that residents and city officials envision.

Henry Fonvielle, executive vice president of the Rappaport Cos., which owns the center, said he just now is starting to think about remodeling.

He would eventually like to raze the building and replace it with a mixed-use development with retail on the bottom floors and residences above. But rents have to rise substantially to make it worth the effort, he said.

Still, Fonvielle said he is excited by the changes underway. It's all a matter of timing.
"Every time a storefront turns over on H Street, it's going to be a turnover for the better," he said. "It's just an evolutionary process."

High Costs of Change

City officials say they envision a shopping district on H Street populated with lots of small, unique shops and a few national retailers. But independent businesses have struggled to gain footholds in the corridor because of the age and poor conditions of many of the buildings, as well as their small footprints.

Englert was one of H Street's pioneers, opening several trendy bars and restaurants in the past two years. Englert estimated that he spent $500,000 to get Rock and Roll Hotel off the ground -- nearly double the cost to open his businesses in more upscale neighborhoods such as Dupont Circle and Cleveland Park. Most of the money went to rehabilitating the building, with $85,000 for the heating and air-conditioning system.

"It's like you need an advanced degree or an incredibly astute permit person to get the littlest thing," he said. "In reality, you're not going to get a lot of breaks."

But Englert helped prove that people would make H Street a destination. Now he is planning a Belgian restaurant with mussels and frites in the 1200 block of H Street, and an indoor mini-golf place in the 1300 block.

"I know we're going to do well there when all's said and done," he said. "But you have to be a realist and say that's tough going. Really tough going."

Space is another issue. Many of the properties are small and narrow, with the tiniest at about 1,250 square feet -- too small for most national retailers to even consider. The average restaurant needs at least 2,000 square feet. A drug store such as CVS is generally 5,000 to 9,000 square feet. Even a small grocery store such as Trader Joe's claims about 40,000 square feet.

That means most property owners are searching for small, independent retailers to lease the space. But as property values rise, so do taxes -- and rent. And many merchants have found it difficult to sell enough merchandise in their small spaces to pay off the growing rents.

There have been several casualties as well. The pet shop. The bookstore. The women's specialty store, all felled by high rents and slow sales.

"What can you do about that?" Saleem said. "If they can't pay the rent, they aren't coming."
Smokey Maye has owned the building that houses his barbershop, at 1338 H St. NE, since 1999. It's been in business at the same location since 1966. People in the neighborhood know him by name.

In 2005, Maye said, his property taxes were $2,100. Last year, they more than doubled to $5,400. At this rate, he figures he will have to increase his prices by a few dollars just to stay in business.

Still, he said, he is glad that change is coming to H Street.

"It's bringing people down here," he said. "It's just been a few businesses down here for so long."
'I Don't Want to Evolve'

Developer Jim Abdo is building Senate Square, a luxury condo building on 3rd and H streets NE that will begin to deliver this fall. He said the corridor is strikingly similar to 14th Street NW.

Abdo watched change come slowly to the businesses on 14th Street, like the liquor stores that once sold 40-ounce beers and switched to stocking expensive wines instead. They adapted to the needs of the new residents.

"This is a whole new level of buying power that we're bringing you," he said. "Look at ways to respond to that to allow your business to grow, not leave the neighborhood."

But not everyone wants to change. One H Street merchant, who spoke on condition of anonymity for fear of jeopardizing his business, said his core clientele are low-income residents. He said it is easier to leave H Street and follow them than to rethink his business model.

As for the residents moving to H Street? They don't want to shop at the stores there now, he said, even though they might carry products they need. The new folks want stores that look fancy, he said. His is not among them. He figures he can last seven to 10 years.

"I don't want to evolve," he said. "It's the haves and the have-nots, and they would like the have-nots to please leave."

Saleem is trying to bridge that gap. He grew up in the neighborhood, and his parents, family and friends still live there. He doesn't want the moms-and-pops who stuck with H Street during the hard times to leave. But he also wants to see new life breathed into the corridor.

"You may not get what you want today. But they may morph into what you want tomorrow," he said. "It's a whole lot better than it was."

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

Developers, Managers See Green Building Perks

Daily Real Estate News June 20, 2007

The real estate industry — most notably the commercial side — is slowly but surely embracing sustainable business practices and green technologies, according to an analysis of the industry by Progressive Investor, monthly newsletter that’s focused on sustainable investments.

"The benefits will make green ubiquitous over the next two years," says George Caraghiaur, vice president for energy services at Simon Property Group, owner of 300 shopping malls.
Developers are using green construction in their projects, real estate consumers and tenants are showing a preference for sustainable buildings, and it’s becoming more affordable to make earth-friendly choices, the newsletter says. What’s driving the trend? Progressive Investor identified these factors:

Energy prices are rising. Developers and building owners are feeling the crunch of high energy and water costs, which, according to the Building Owners and Managers Association (BOMA), constitute 28 percent of operating costs for downtown office properties, and 30.4 percent for suburban properties. They see the quick payback and cost savings energy efficiency and other green building upgrades offer.Construction costs are coming down. Building green no longer costs more. Turner Construction's 2005 Green Building Market Barometer shows it costs a just 0.8 percent more for basic LEED certification, easily recouped through lower operating costs.

Tenants are demanding it. Increasingly, clients and tenants show a preference for green buildings, which have been proven to increase productivity, retain employees and lower absenteeism. The combination of reduced operating costs and more satisfied occupants translates into 3.5% higher occupancy rates, 3% higher rents, and a 7.5% increase in building value, says the McGraw-Hill 2006 SmartMarket Report.

Green gets visibility. Corporations with sustainable business policies are building highly visible green headquarters including Bank of America, Toyota, Goldman Sachs, Hearst, IBM, JPMorgan Chase and Herman Miller. The Freedom Tower, which replaces the World Trade Center, will be LEED-certified.

States are requiring it. Green building is increasingly being mandated. Nine states and 40+ municipalities have passed legislation mandating LEED-certified buildings. Six percent of commercial developments are LEED-certified, and it’s projected to jump to 10 percent of the market by 2010.

REITS Fill Demand for Green Investments

Because there are more green buildings, there also are more choices for investors who want to put there money into an environmentally friendly funds. Some 41 percent of the 300 U.S. real estate investment trusts (REITs) are actively pursuing energy efficiency and green building upgrades and another 27 percent plan to do so.

For now, U.S. investors can gain exposure to the sector through the Forward Progressive Real Estate Fund (FFREX), the first SRI REIT mutual fund, and through about two dozen individual securities, including Simon Property Group (NYSE:SPG) , Weingarten Realty Investors (NYSE:WRI) , Prologis (NYSE:PLD) and SL Green Realty (NYSE:SLG) .

Outside the U.S., leaders include Investa Property Group (IPG.AX), Australia's largest owner of prime grade office space, Lend Lease (LLC.AX), Land Securities (LAND.L), British Land (BLND.L) and SEGRO (SGRO.L), in the UK.

Progressive firms are increasingly focused on urban infill buildings rather than suburban greenfields and incorporating advanced energy efficiency measures, as well as recycled building materials, gray water systems, rainwater capture and green roofs, the report says.

— REALTOR® Magazine Online

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

How Home Buyers Can Make Sure They Get the Best Mortgage

By Ruth Mantell, MarketWatch

RISMEDIA, June 14, 2007-(MarketWatch) - Think you're getting a good deal from your mortgage broker? Try looking at the fine print.Your mortgage broker could be getting paid by a lender to sell you a loan. The practice is perfectly legal.

It's also controversial. Critics complain that brokers looking for a fat check from a lender can lead consumers into unnecessarily pricey loans.

"One thing that consumers need to understand is that a broker's interest is not always aligned with theirs," said Ira Rheingold, general counsel with the National Association of Consumer Advocates. "You need to be very wary. Despite what the broker may say about getting the best loan for you."

Here's how mortgage brokers get paid: They can get a fee from you. Brokers can also collect a premium from a lender that is based on the rate of the loan — the higher the rate the more they make.And that's where the trouble begins, consumer advocates say. Brokers describe themselves as independent contractors, meaning that they provide services to consumers, as well as lenders. Critics charge that brokers sometimes push a pricey product to pocket higher fees.Borrowers don't need to despair, though. Experts say there are ways to make sure you're getting a good deal from your mortgage broker.

1. Do your homework

Some fees and rates are negotiable — so don't say yes to the first deal you hear.

"My first advice would be to shop around. Check with a variety of lenders," said L. Jean Noonan, a partner at law firm Hudson Cook and former associate director for credit practices in the Federal Trade Commission's consumer protection bureau.

Also, consumers should be wary if their broker is offering a nontraditional mortgage that doesn't require full documentation of income and assets.

"Those mortgages almost always carry a high interest rate, and the consumer should be very sure that that's the right mortgage for them," Noonan said. "If they are able to document their income and assets, it's almost always worth doing that and getting a more favorable rate.

"It's important to understand all of the fees, as well as the interest rate, associated with a loan."

An inexperienced or fast-talking broker may not explain it well. A good broker understands his business is largely referral business, and unhappy customers don't give referrals," Noonan said.

2. Bring a buddy

Get help from someone you trust — other than the broker.

"It's fine to bring someone with you who can help stand up for you if you're feeling pressured," Noonan said.

The key is to ask for help from someone who isn't getting paid. You can turn to a home-ownership counselor, or friends and family with professional expertise or at least experience in real estate."Consumers should not rely on brokers, when all is said and done, to find them the best loan to take. They ought to turn to experienced professionals who can give them candid and informed advice," said Allen Fishbein, director of housing and credit policy at the Consumer Federation of America.

3. Don't be shy

It's important to ask questions, experts agree.

"You want to look for the loans that best meet your needs and budget," said Carole Reynolds, a senior attorney with the Federal Trade Commission's financial practices division.

You need to know whether the loan has a fixed or adjustable interest rate, whether it includes a balloon payment, and how soon you could face an interest-rate adjustment.

"You should understand these points before you become obligated because otherwise you may end up in a mortgage that is not truly right for you and that can lead to a payment shock," Reynolds said.And, perhaps most important: Be wary of terms such as "no cost" and "no fees."

"You really need to look into the loan," Reynolds said. "You should be comfortable and understand the terms before you sign."

4. Don't sign under pressure

Take a deep breath, and remember that you are in charge of choosing the best mortgage for yourself.

"When brokers use high-pressure tactics, if a broker presses them to sign a contract, that should be a telltale sign that this broker is someone they should be wary of," Fishbein said.

Don't sign a contract you don't understand just to get the process over with.

"You are paying for settlement services and you shouldn't sign the papers and leave before you understand everything," Noonan said. "Don't rush to the settlement. When a purchase is hanging in the balance, they can still walk away but it is much harder to do. There's a time pressure to close by a certain date."

It's easy to be intimated at a closing. After all, there are many pages of loan documents to review, and some of the language is cryptic or in small type.

"They may feel that they are slowing things down, or they appear dumb if they ask questions," Noonan said. But don't let fear get the better of you when it comes time to choose a loan.

5. Know the score

Before you enter negotiations, look at your credit score. That way you can research loans ahead of time and find out what sort of rates you qualify for. You can get the information from an array of Web sites.

Also, credit scores can be wrong."If you see problems with your credit report, you need to get that fixed," Rheingold said.

Ruth Mantell is a MarketWatch reporter based in Washington.RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

The State of the Market

By Jack Guttentag
The Washington Post
Saturday, June 2, 2007; F23

Over the past two weeks, I have explained that the immediate cause of turmoil in the subprime market has been the halt in house price appreciation and that the underlying cause has been a myopic tendency by lenders to make loans that worked only if prices continually rose. What's the state of the market now?

The pain is uneven. The dozens of subprime lenders that have failed have garnered little sympathy. Put simply, they gambled and lost. Some borrowers fall in that category as well because they were trying to profit from house price appreciation. Instead, they face foreclosure.
Investors in securities issued against pools of subprime mortgages have also felt pain as the market value of these securities has declined. Lehman Brothers estimates the decline at $19 billion. Most of it is concentrated among the riskiest securities, which promised the highest yields. (Few tears are being shed for those investors, either.) Securities rated AAA, which are first in line to be repaid and last in line to take losses, have been hurt very little.

Mortgage brokers have not been significantly affected. A few have lost access to subprime lenders, but most have been able to replace defunct lenders with other lenders.

The big losers are those borrowers who, as unwitting victims of hype and deception, took out mortgages that were unworkable if house prices stopped rising. Now, with values stagnant, many of these borrowers are waiting for the next shoe to drop. They have adjustable-rate mortgages on which the rate will reset to a much higher level.

The subprime market remains open. This is the good news, and it should not be taken for granted. When the international banking crisis erupted in the early 1980s, the market adjustment stretched over a decade, during which there was almost no new lending.

The subprime lenders who remain are the more cautious ones. They are also more likely to be affiliated with other firms with deep pockets, which will help them ride out future market disturbances.

Of course, the profit potential in subprime lending is not what it was. Investors require a higher yield than before, especially on the riskiest securities. This has caused tightening of underwriting requirements, which has effectively lopped off the riskiest segment of the market.

Underwriting requirements are more restrictive. Underwriting requirements are the conditions that borrowers must meet to be eligible for a loan. They are significantly more restrictive now than they were a year ago. One of the most important shifts is the near-disappearance of the 100 percent (no-down-payment) loan.

Periodically, I receive an advertisement from a subprime wholesale lender rep advertising what is available from his firm. (He thinks I am a mortgage broker.) One came to me on April 19, showing that a borrower with a credit score of 620 (which is low) could qualify for a loan of $650,000 with a down payment of 10 percent. In my records, I found a message from the same rep dated June 20, 2006. At that time, he was offering the borrower with a 620 score a loan of $1 million with nothing down.

The 2006 offer was insane, a product of the euphoria created by steadily rising real estate prices. The current rules are no longer based on the inevitability of rising prices.

The prospects for some are poor. If house prices begin to rise again this year, the problems of the subprime market will go away. In 1998 and 1999, we had a similar episode, in which as many as 20 subprime lenders failed. But in 2000, house prices took off, the problems disappeared and few people today even remember the episode.

This time, however, the prospects for a quick revival of house price appreciation are poor. A further weakening is much more likely. Under these conditions, there is an ominous cloud on the horizon: Subprime borrowers who took out 2/28 ARMs in 2005 and 2006 will have their interest rates and payments reset to much higher levels this year and next. A significant number will not be able to make the new payments and won't be able to refinance because the equity in their houses is not sufficient to meet the new underwriting requirements. They will face foreclosure.

Next Saturday, I will discuss what if anything should be done about that.
Jack Guttentag is professor of finance emeritus at the Wharton School of the University of Pennsylvania. He can be contacted through his Web site, http://www.mtgprofessor.com.


Copyright 2007, Jack Guttentag
Distributed by Inman News Features

Area Home Price Appreciation Ahead of National Average

Washington Business Journal - 1:05 PM EDT Thursday, May 31, 2007
by Jeff Clabaugh
Staff Reporter

The latest report on housing prices comes from the federal government, and it shows that price gains in Maryland, Virginia and D.C. have outpaced the national average.

The Office of Federal Housing Enterprise Oversight says prices in the first quarter were up an average of 4.3 percent from a year earlier, the slowest pace in 10 years.

But Maryland posted average price increases of 6.37 percent from a year ago and 0.46 percent from the previous quarter. The District had an annual gain of 5.91 percent and a quarterly gain of 0.5 percent. Virginia's increases were 5.42 percent and 0.68 percent.

Compared with other states, Maryland had the 18th strongest gain. The District ranked 20th and Virginia 24th.

The OFHEO does not include actual prices in its quarterly report, only percent changes.

"As always, real estate prices are local with seven states showing double-digit annual appreciation rates and seven with rates of less than 2 percent," said OFHEO director James Lockhart. "Seven states, including California and Florida, also showed home price depreciation in the first quarter."

When price appreciation is measured by metropolitan area, Washington records a 3.65 percent rise in the past year.

Two separate reports this month paint different pictures of Washington-area home prices. An S&P/Case-Shiller report released earlier this week said median prices in Washington are down 4.8 percent in the last year. The National Association of Realtors said earlier this month that Washington-area home prices were 1.2 percent above year-ago levels in the first quarter.

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

RealAstute Listing Featured in Examiner Profile

Click below to read the article:

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

District Home Sales Jump in First Quarter

Washington Business JournalTuesday, May 15, 2007
by Jeff Clabaugh Staff Reporter

Home sales in the first quarter were down 6.6 percent from a year ago nationally, but sales of existing homes in the District jumped 9.3 percent, the second biggest increase in the country.

A quarterly report from the National Association of Realtors also says Washington-area home prices rose a modest 1.2 percent from year-ago levels, while nationally, median home prices fell 1.8 percent to a two-year low. Prices fell in almost half the U.S. cities listed in the NAR report.

The median price of an existing home in the Washington area was $427,800 last quarter, compared with $422,800 a year ago.

The biggest gain in year-over-year median prices was in Cumberland, Md., up 17.1 percent, to $100,000.

Sales in the District were outpaced only by a 20 percent gain in Wyoming, but sales were down 5.7 percent from a year ago in Virginia and down 10 percent in Maryland.

While the numbers look better locally than they do nationally, the National Association of Realtors said the report shows a broad stabilization in the housing market.

"It appears the worst of the price correction is behind us," said NAR President Pat Combs. "More stable home prices and declining mortgage interest rates are increasing buying power, which should encourage potential buyers who've been on the sidelines."

The most expensive market in the nation last quarter was San Jose, Calif., with a median home price of $788,000. The cheapest market was Elmira, N.Y., at $75,300.

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

Military Moves Swell Populations in 11 States

Eleven states are about to welcome hundreds of thousands of U.S. military personnel and their families as the 2005 Base Realignment and Closure (BRAC) Commission recommendations take effect.

Eleven states are getting additional troops — Alabama, Colorado, Georgia, Kansas, Kentucky, Maryland, Missouri, North Carolina, Oklahoma, Texas, and Virginia. The population boost will create a need for everything from housing, roads, and schools to services like pizza parlors and dry cleaners.

The Fort Meade area of Maryland expects the troop shifts to generate 22,000 federal and private-sector jobs. Fayetteville, N.C., home of Fort Bragg, expects up to 25,000 new residents.

Columbus, Ga., Mayor Jim Wetherington met recently with the City Council to discuss a bond issue for roads and other needs, such as water and sewers, as Fort Benning anticipates possibly doubling its population.

"This is going to be a pretty big deal for us," Wetherington says. "We think we're going to be ready, but we've got a lot of work to do."

Source: USA Today, Larry Copeland (05/08/07)

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

Noise a Top Consideration for Condominium Buyers

The price might be right, the layout spacious, and the commute short, but that perfect condo will be less than ideal if the noise from the upstairs neighbors rivals that jackhammer on the street.

For condo buyers, particularly those exchanging suburban quiet for urban hubbub, what they hear or don’t hear can make a difference in quality of life after they move in, says Mike Komula, an acoustician with Dudek, a California environmental consulting firm that helps builders assess the acoustic qualities of new buildings.

To help buyers learn what living there will be like before they sign a contract, Komula offers the following tips:

Make some noise in an adjacent unit. Have a companion turn on a radio, flush toilets, walk along the floors, and turn on bath and sink taps. Plumbing noise can be an issue when pipes are too small or transmit vibrations through the walls, he says. Check the layout of the floors in multistory buildings. See if compatible rooms are stacked. For example, rather than a kitchen or bath you want another bedroom above your bedroom. Look for dual-paned windows. Dual panes absorb more sounds. “Thicker panes and a wider air gap between the panes will increase sound reduction,” he says. Swap hollow interior doors for solid-core doors.

Quiet Construction

Builders are becoming increasingly cognizant of noise, and they know that “managing noise makes their multifamily projects more attractive to buyers,” says Komula. He recommends asking the builder, if possible, about construction details that enhance noise reduction.

Are the shared walls double walls? Two, rather than one 2 x 4 foot stud wall absorbs more noise by creating an air gap and separating the walls.

How many layers of drywall are on each side? Two layers absorb more noise than one.Do walls and ceilings use resilient metal channels that act as shock absorbers? Does the floor have a lightweight layer of concrete on the top? This adds mass, reducing the transmission of airborne and impact noise.

Additionally, Komula suggests buyers ask about the Sound Transmission Class rating for walls between units and levels, floor-ceiling construction, between units. Most states include a rating in their building codes. California’s minimum is 50. An STC rating of 65 indicates a very high quality in terms of noise reduction.

— By Camilla McLaughlin for REALTOR Magazine Online, April 27, 2007

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

Top 10 List of Defects Found During Home Inspections

Recently, we've had a lot of home inspecions that have uncovered problems many of our buyers have never even considered. We often reccomend using US Inspect (www.USInspect.com) and they have a TOP 10 List of Defects commonly found during home inspections, here they are:

Top 10 Defects

Knowing what some of the usual situations our consultants discover during an inspection allows you to be a well-informed buyer. Over the years, and borrowing on over a half million inspections, here’s what we’ve discovered as the top 10 defects in most homes. Repair and replacement costs for such items could cost you thousands of dollars!

1. Roof leaks due to flashing and valley problems

2. Water penetration in the basement or crawlspace due to the surface water conditions

3. Electrical safety issues due to age of home

4. Deterioration of the wall material or substrate behind ceramic tile in shower and tub areas

5. Roof material failure due to age and deterioration

6. Heating unit and distribution system inequities due to age and workmanship or system compromises

7. Structural issues due to improper construction and/or alterations, or excessive unbalanced load (ie. Failing concrete block foundation wall)

8. Fire safety issues related to fireplace chimneys

9. Termite and other wood destroying organisms due the local environment and conducive conditions

10. On-site waste (septic) system failures usually due to lack of maintenance

U.S. Inspect strongly encourages home buyers to attend the inspection with our consultants. In our 2 to 3-hour walking consultation, you’ll learn all about your new home—first-hand information about the condition of the property, how the house operates, where the main shut-off valves to the utilities are located, and much more. And if defects are discovered during the inspection, we’ll explain the possible cause as well as your options to have those defects corrected.

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

Buyers in Charge: 4 Strategies

The good news: Rocky real estate markets mean home shoppers finally have the upper hand.
By George Mannes, Money Magazine senior writer
April 12 2007: 8:54 AM EDT

NEW YORK (Money Magazine) -- You'll find no better experts on the real estate boom and bust than Joyce and Louis Bertulfo.

Between 2004 and 2006 the couple successfully navigated a hot San Jose housing market, buying and selling two homes for a profit.

By the time they relocated to Tampa with their three children this January, however, the winds had shifted. The pace of home sales in the area had fallen by 40 percent from a year earlier. Prices were already softening.

So Joyce, 32, and Louis, 33, spent weeks looking for just what they wanted (four bedrooms, three full baths and a three-car garage), adopting a decidedly more philosophical mind-set.

"We said, 'If this one doesn't work out, we'll find another house,'" says Joyce. When they saw the ideal home, they bargained hard. The house they finally bought, originally listed at $539,000, had been marked down to $479,000.

Still, the couple offered $410,000, 14 percent below the asking price. The sellers countered with $465,000. A few rounds later they met at $430,000.

"Now that we've settled in, we're just ecstatic," says Joyce.

Welcome to real estate's new reality, where prices are down, foreclosures are up, experts are jittery, and a lot of for sale signs are getting weather-beaten.

That may be bad news for homeowners, sellers and investors. Buyers on the other hand, have a rare point of advantage.

"We don't often have a buyer's market like we have now," says Ned Marrs, a longtime broker in Colorado Springs. "Every decade it happens for a year if we're lucky. Then it's a seller's market for another nine years."

Gene Trinks, 35, moved to the San Francisco Bay area in 2002, but the engineer couldn't bring himself to buy a house in that frenzied atmosphere. "People were just overbidding wildly," he says. "There was a danger of paying too much without regard for what a house is really worth."
In January, though, he and his girlfriend closed on a four-bedroom home in Oakland, paying $880,000 for a house originally listed at $979,000.

"We were the only offer, we bid below ask, and they accepted without any counters, which is a great position to be in as a buyer," says Trinks. "We could be a little bit more in control of the process."

As a buyer, you now have plenty of choice, as well as the upper hand in negotiations. You also still have the benefit of low interest rates. If you're tempted to upgrade yet worry that your home isn't worth what it was six months ago, keep in mind that the home you want to buy is worth less too.

Moreover, if prices have fallen at the same rate on all homes in your market, the discount, measured in dollars, will be bigger for a more expensive house.

Say you're in a $200,000 home and want to move up to a $500,000 home. Your cost of upgrading will be $300,000.

But if prices drop 10 percent, your current house is worth $180,000; the one you've got your eye on is worth $450,000. Cost to upgrade: $270,000.

Last fall Vinse and Kathryn Sullivan, 29 and 28, of Charleston, S.C., decided they wanted to move from their 2,000 square-foot home in the western part of the city to a larger one on the north side, putting them closer to Vinse's pharmaceutical-sales territory and giving them more space for their son Carter, 2, and daughter Kate, now nine months old. They listed their home, which they bought in 2003 for $215,000, for $358,000, and they expect to spend as much as $500,000 for a four-bedroom house with a home office.

Once they sell, the Sullivans are confident they can trade up. "I know I can pay the bills on a bigger house," says Vinse, "and at the end of the day, that's all that matters."

Vinse has that right. You can't be sure that a house you buy today won't lose more value before prices recover, but if you can pay well below what sellers were getting last year, you've already built in a comfortable cushion against price drops.

For extra protection, buy only if you can make a 10 percent to 20 percent down payment and heed the lessons from the current mortgage madness: Adjustable rates do adjust, and when you're paying interest-only, eventually you will have to pay the principal as well.

Can't afford to buy the home you want at today's fixed rates? Keep renting or look at cheaper homes. Once you jump into the market, follow these tips to make the most of your powerful position.

Free yourself to act fast Buying may be easy, but selling isn't, so you have to guard against getting stuck with two mortgages. The best way to avoid that trap is simply to sell first.

That's what Veronica and Maxwell Green, both 28, did last year after the birth of their baby. Realizing they were outgrowing their two-bedroom Tampa condo, they were desperate to find a bigger place. But they held off on house hunting until they had a sales contract on their condo.

"We didn't look. We didn't research. We didn't do anything," says Veronica. "We didn't want to find something we loved and not be able to sell our house."

Freed of their condo, they bid $275,000 for a four-bedroom home listed for $289,900. Two weeks later the seller took the offer.

Another option is to include a contingency clause in your purchase contract, which lets you exit the deal on your new home if you can't sell your old one. Shortly after the Sullivans put their home up for sale, they signed a contract to buy a newly built one but added a clause that they could bail on the deal if their home didn't sell by the time the new house was finished.

It didn't, but their only loss was $800 they paid for upgrades to the new house, which the developer subsequently sold. "Lesson learned," says Vinse. "I'm not losing sleep over it."

Know how strong you are The longer a house has been for sale, the more powerful your position as a bidder. "Time on market is a good indication that someone is likely to be really hungry," says Gary Eldred, author of "The 106 Common Mistakes Homebuyers Make (and How to Avoid Them)."

If you're browsing a public multiple-listing service, don't trust the date of that listing; sellers can game the system by briefly taking a home off the market, then re-listing it.

Ask your broker to look at the privileged MLS data, which details a home's full listing history, complete with time on market and any asking-price changes.

Pick allies carefully You can often hire an agent who works exclusively on your behalf. Typically, these buyer's brokers earn a 3% commission, usually paid by the seller (though if you buy from a seller using a discount broker, you may have to make up the difference).

Keep in mind that buyer's brokers, who theoretically work just for you, may have a financial incentive to push certain homes. In some markets builders and even individual sellers are offering higher-than-usual commissions to buyer's brokers, which can tempt your pro to skimp on negotiations or steer you to more costly houses.

Hire a broker who will work for a set fee or will sign a contract stipulating that his or her cut will be the same for any home you buy.

Wield your power If you see a house you like, chances are you can find another one that is similar. Exploit that advantage. Make demands you never would have dared ask for in crazier times, such as requiring the seller to make repairs or the builder to throw in free upgrades.

Sellers may be trying to make what their neighbors made two years ago, but they're too late, says broker Marrs.

Don't be afraid to start with an offer that's 15 percent below asking price.

In February, Joyce and Louis Bertulfo passed on a house over a $5,000 difference between their offer and the seller's. Where is it now? Still on the market, with the advertised asking price cut from $475,000 to $440,000, just $5,000 above their best offer.

Joyce's expert advice to sellers: "Buyers are scarce these days, so when you find some, don't let them go - especially over $5,000."

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

Looser Lending Had Upside: New Homeowners

NPR: Morning Edition, April 9, 2007 · Subprime loans are likely to put upwards of a million Americans out of their homes through foreclosures. The payments on many of these unorthodox adjustable rate mortgages are going through the roof and homeowners can't afford them.
But at the same time, looser lending standards for more traditional kinds of loans permitted millions of Americans to buy homes in recent years ... and keep them. Some economists see that as a major achievement.

To hear this entire report, please visit: http://www.npr.org/templates/story/story.php?storyId=9469959
by Chris Arnold

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

Growing Number of U.S. States Mull Mortgage Refinance By Gilbert Le Gras

Tue Mar 27, 4:11 PM ET
A growing number of state housing agencies are developing or considering issuing bonds to assist subprime mortgage holders to refinance their obligations at fixed rates, officials at housing agencies said on Tuesday.

The Ohio Housing Finance Agency intends to launch a refinance program on April 2 to accept applications from lenders. That program would be funded by taxable bonds issued probably later that same month in an amount likely around $100 million, said Bob Connell, director of debt management for the agency.

The aim is to allow low- to moderate-income mortgage holders who have not entered the foreclosure process to refinance their mortgages at a fixed rate likely around 6.75 percent, Connell said.

A U.S. Treasury official said the tax code places limits on such issuances through a series of "volume cap" rules.

Other states are implementing, drafting or considering similar measures.

"Maryland has had a similar refinancing program for subprime mortgages for the last few months," said Garth Rieman, director of housing advocacy at the National Council of State Housing Agencies.

Officials at Maryland's Department of Housing and Community Development were not immediately available for comment.

In recent weeks, financial markets have been shaken by increasing delinquencies among subprime mortgages offered to borrowers with damaged credit. This has triggered concerns that the fallout may spread to mainstream lenders and damage the U.S. economy. For more on subprime mortgage markets, please see:

Rhode Island, Massachusetts and Virginia are now "running or developing similar programs and are further along than other states," Rieman added.

Colorado, California, Washington and Wisconsin, meanwhile, have been inquiring about the details of such refinancing programs, Rieman said.

Indiana, meanwhile, is about to open a hotline to help homeowners facing foreclosure and is offering referrals to advisors who are able to assist with loss mitigation, while the state legislature is considering a bill that includes a public awareness campaign.

"We are not currently offering such a (refinancing) program," Indiana Housing and Community Development Authority spokeswoman Amber Seidler said.

"Tax exempt bonds are, pursuant to the IRS (U.S. Internal Revenue Service) Code, limited to being used to fund new mortgages, not refinancings," she added.

"A couple of other states have set up pilot programs utilizing taxable bonds to target subprime borrowers, but they are very new and we have not reached that stage of having a program ready to offer," Seidler said.

Copyright © 2007 Reuters Limited. All rights reserved.

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

Major Changes to the Seller’s Disclosures in DC

There have been major changes to the Seller’s Disclosures in DC, this article from Sunday’s Washington Post details those changes and clarifies some of the confusion that is out there regarding the new disclosures.

New Requirements Govern Seller's Disclosure in the District

By Benny L. Kass
Saturday, March 24, 2007; F07

Q: I am a real estate broker in the District. I understand that effective Feb. 9, we have been required to provide potential home buyers with a new Seller's Disclosure Statement, and that once a buyer gets that statement, they have the right to cancel their sales contract by giving written notice to the seller no later than five days after receipt of the form.

Here's my problem: On Jan. 20, I obtained a listing agreement from a seller and was fortunate to get a full-price contract on Feb. 4. The contract purchaser was provided with the Seller Disclosure Statement then in existence.

The buyer has not gone to settlement yet. Must I provide the new form to that purchaser? I am concerned that the purchaser may get buyer's remorse and use the new form as an excuse to terminate the contract.

A On Feb. 9, the D.C. Department of Consumer and Regulatory Affairs published a revised Seller's Disclosure Statement in the D.C. Register, which means that the requirement to provide the new form became effective that day.

First, I have to correct one of your statements. According to the regulations promulgated by the District (17 DCMR Chapter 27, ?2708.13), "the Seller, not the broker and not the management company, condominium, cooperative or homeowners association" is required to complete the form.

If the property in question consists of one to four residential units and the transaction involves a sale, exchange, installment land sale, a lease with an option to purchase or any other option to purchase, the disclosure form must be provided to a potential buyer. The purchaser must express an interest, in writing, in residing in the property in question. This requirement will normally be met in the sales contract itself.

The disclosure requirement does not apply in the following situations:

Court-ordered transfer.

Foreclosure sale.

Transfer by a fiduciary (such as a personal representative, guardian or conservator) if the person conveying the property was not personally occupying it.

Transfer between parents and children, or from one spouse to another.

Sale of a newly constructed property that has never been lived in.

Generally, the disclosure statement must be provided to a potential purchaser in all other circumstances.

Although the new form contains more detailed information about the property, it is easier to read than the previous one and is more logical. It consists of many subtopics broken down in four general areas: structural condition, operating condition of property systems, appliances and fixtures, and exterior and environmental issues. For all practical purposes, however, the substance is the same.

What rights does a potential buyer have under the law?

When the buyer is given the disclosure statement, he has five calendar days in which to terminate the sales contract by giving written notice to the seller. However, this right to terminate is waived if not exercised before:

The buyer applies for a mortgage loan and the lender discloses in writing that the right to rescind will terminate when the loan application is made.

Settlement on the property takes place.

The person with a lease with an option to purchase begins to occupy the property.

The seller of a condominium unit, cooperative apartment or a house in a homeowners association is obligated to disclose information as to the unit or house only, not the common elements or areas outside of the property being sold.

Can a buyer rely on the disclosures provided by the seller? That's a legal question that the courts in the District have not yet addressed. The form specifically states, "This statement is not a warranty of any kind by the seller or by any agent representing the seller in this transaction, and is not a substitute for any inspections or warranties the buyer may wish to obtain."

Nevertheless, the statement is a disclosure by the seller of the defects or information actually known by the seller. Thus, while all buyers should obtain an independent home inspection and make their sales contract contingent upon receiving a favorable inspection report, the fact remains that if the seller makes material misstatements or omissions in the disclosure form, the buyer may have a legal case.

You asked whether the new disclosure form should be provided to contract purchasers, even though they have already received the old form. Connie Maffin, who heads the D.C. Real Estate Board, told me that she is "encouraging everyone to immediately use the new form on new and existing listings."

According to Maffin, the law is in effect, and although the board will not immediately enforce violations in the immediate future, sellers are required to honor the law.

Does this mean that a buyer who receives a second form has another chance to terminate the contract? That is another legal issue that has no definitive answer. Because the new disclosure statement is substantially similar in content to the old form, and because the potential buyer already had the opportunity to cancel when he received the older form, a strong argument could be made that the court will not permit the termination. Sellers and buyers should consult their own counsel for more specific legal advice.

Benny L. Kass is a Washington lawyer. For a free copy of the booklet "A Guide to Settlement on Your New Home," send a self-addressed stamped envelope to Benny L. Kass, Suite 1100, 1050 17th St. NW, Washington, D.C. 20036. Readers may also send questions to him at that address or contact him through his Web site, http://www.kmklawyers.com

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

D.C. Officials Look To Help Homeowners Keep Homes

WASHINGTON -- The D.C. City Council said it is trying to help homeowners who are having trouble making their mortgage payments, saying it is crafting legislation that will crack down on foreclosure rescue scams and subprime mortgage money.

Inday Williams said an inflated mortgage led to $8,000 in missed payments on his home, leading to a threatened foreclosure if he did not come up with the money in 30 days.

Williams said that's when he turned to someone that had contacted him, promising to loan him the $8,000 and allowing Williams to keep his home.

Williams said it wasn't until he tried to repay the loan that he realized that he had been the victim of a bait-and-switch scam and he no longer owned his house.

Experts said foreclosures are at their highest rate in 40 years. Last year, the District had 2,900 foreclosures, officials said. By February of this year, the city already had 700, experts said, on pace to a record.

As property appreciates and increasing numbers of subprime loans go to unqualified buyers, experts said, foreclosures will continue to rise and scam artists will find fertile ground to snatch equity or property.

District officials said they are now looking to create legislation that would tighten protection for homeowners.

source: nbc4.com

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!

Don't Forget to 'Spring Forward' One Hour this Weekend!

Due to new legislation, Daylight Savings now occurs on the 2nd Sunday in March (March 11th) instead of the initially scheduled date of Sunday, April 1st.

Check your PC and other systems to make sure they update properly on Sunday due to the above change.

The legislative change also modifies when Daylight Savings ends. It will now end on the first Sunday in November (November 4th) instead of October 28th.

Feeling Nosy about DC? MD? VA?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!