Real Estate 101
What Criteria DO Your or Should You Use when Evaluating a Real Estate Professional?
January 28th, 2009 Categories: Alexandria Dirt, Arlington Dirt, Falls Church Dirt, First Time Buyers Club, McLean Dirt, Real Estate 101, Reston Dirt
There are probably a hundred different reasons to give for selecting (and maybe fewer for having an on-going relationship with) your real estate professional. Some seem very rational and reasonable and quantitative, others a little more intangible, qualitative and difficult to define. I’ve been thinking about this for some time and here are my thoughts, at least looking from 10,000 feet:
Things you SHOULD look for:
Friendliness
You might think this shouldn’t exactly be at the top of the list – but I will tell you that friendliness goes a long way. I was recently successful in a multiple contract short sale situation because I was friendly with the listing agent. People WANT to work with people they like – so choose someone friendly - know that they won’t offend someone or rub them the wrong way and most of the time, it will work in your favor!
Availability – Accessibility — Responsiveness
This is really important… is your prospective agent full time? Are they managing a client load that doesn’t allow for them to make time for you? Do they cancel? Are they late? How easy are they to reach via whatever means of contact you’re comfortable with? Do they text? Do they email? How quickly do they return calls and/or emails? Are their priorities straight?
Experience
This is a tough one – I believe even inexperienced agents can do a good job - after all, we were ALL inexperienced at some point in time. But you need to judge for yourself how their experience level matches with your expectations. Are they experienced in the neighborhood that you’re interested in, but not well versed outside of it? Are they great at understanding the contract but don’t have the “systems” down to manage your transaction seamlessly and painlessly? And when contemplating the brand new agent - do they know what they don’t know? Do they know when to say “I don’t know but I’ll find out for you” and/or when they need to bring in an expert to assist? That’s what you need to gain a comfort level with.
Trust
By this I mean many things but mostly how your relationship develops with 
your agent. Sometimes your agent will need to tell you tough things – you’d rather they were honest with you but sometimes it’s difficult to separate the message from the messenger. Sometimes it’s a discussion about the pricing of your home. Sometimes it’s about the market conditions that help determine an offer price. Sometimes it’s their advice about one property over another from an investment perspective. At the end of the day, the decisions and choices are yours, but you’ve hired a professional to assist in the process – heed the advice which you should be able to do if you have that trust.
What’s NOT so important?
How many “For Sale” signs have their name on it in the neighborhood that interests you?
Why should this be important? It suggests that only the agents who have signs there are knowledgeable of the neighborhood – it doesn’t always work that way. Don’t get me wrong, I love a sign call as much as the next girl, but you have to be sure all of the other factors are in place too!
Just because your boss used him, doesn’t mean he’s right for you…
OK, I’m braced for all the flack I’ll get for that statement – again, don’t get me wrong, I love a referral as much as the next girl, but it’s not always a good fit. I try hard to earn every piece of business I get whether it’s a referral, a reader of my blog, a past client, a sign call, someone I meet at an open house, etc… But at the end of the day, all of the factors I mentioned above need to be there…
How many clients they’ve helped in the past…
While this does tie into experience, as I stated above, it’s not the be-all and end-all in determining if they’re right for you.
So the bottom line is… decide what factors are important to you, do a little research, ask some questions and then, go with your gut. It usually doesn’t let you down. I’m always available to chat if you’d like!
Happy (icy) Wednesday!
Jennifer
Serving all of your real estate needs in Arlington, McLean and the entire Northern Virginia Region!
Contact me today for a free home valuation or buyer counseling session! And remember, spring is RIGHT around the corner!
Like what you’ve read? Subscribe here
| Discussion: No Comments »
Interest Rates are FALLING - What does that mean to ME?
December 9th, 2008 Categories: Alexandria Dirt, Arlington Dirt, Falls Church Dirt, McLean Dirt, Northern Virginia Real Estate Dirt, Northern Virginia Real Estate Finance, Real Estate 101, Reston Dirt
So it seems that everyone’s fixated on interest rates – even people who are not considering buying or selling real estate - it’s a popular water cooler subject, for sure! People ask me about rates all the time and the reality is 
that I rarely give a straight answer (good strategy, huh?) 
The reason I don’t answer those questions is the answer is: “it depends”
It depends on the applicant’s credit scores, the amount of down payment they have, the program they are choosing, the lender and/or investor that will purchase their loan, etc…
Having said all of that, I wanted to take you through a real scenario of what falling interest rates could mean TO YOU as a buyer.
SCENARIO:
Let’s say you want to buy a home and you spoke with a lender to get “pre-approved” a few months ago. They would have taken your salary history, debt information, run your credit scores, etc… and let’s say they qualified you to purchase a home for $400,000 and you have $80,000 to put towards a down payment making your loan for $320,000 - with me so far?
Let’s assume that a few months ago, the interest rate quoted was 6.5% – (for the sake of keeping things simple, let’s not add any sort of loan origination fee or points into the discussion, however, please remember it’s an important point to evaluate when selecting your lender). Let’s also assume that it’s a straight, fully amortized loan (not interest only).
So your payment (without adding in taxes and insurance) which includes principal and interest would come to $2,022.62.
So we chat and we go out looking for homes and perhaps you travel for a month and you get back last week and call me up to discuss resuming your search… guess what – (assumption here) now interest rates are 5.5% and your new estimated payment on that same loan is now $1,816.92.
WOW - this means a savings of just over $200/month. You’re SO EXCITED.
The other solution would be that if you were really within your comfort zone at $2,022, at TODAY’s rate, that amounts to a loan value of $356,227 - so your PURCHASE POWER has increased by over $36,000 and now you could write an offer on a property upwards of $435K and it would cost THE SAME as it would have a few short months ago… cool, huh?
What’s the downside? Well, if rates rise, it all happens in reverse - so when you were once approved for $400K, perhaps now it’s only $365K… that hurts.
Many lenders will offer what they call a “float down” option to allow you to take advantage of ONE rate drop during the time you’re waiting to go to settlement - that’s an excellent offering, if they have it.
Bottom line is ask a lot of questions and if you’re in the home buying process, pay attention. Be sure you are working with the BEST lender you can – it’s not all about the rate (although reading this article you’d think it was) but it’s also about costs and service. Do your homework and find someone who is truly interested in your positive outcome! It will be well worth your time invested up front!
Happy Tuesday!
Jennifer
Serving all of your real estate needs in Arlington, McLean and the entire Northern Virginia Region!
Contact me today for a free home valuation or buyer counseling session! And remember, spring is RIGHT around the corner!
Like what you’ve read? Subscribe here
| Discussion: 1 Comment »
Arlington House Styles Part 5 - The Contemporary
August 1st, 2008 Categories: Arlington Dirt, Neighborhoods, Northern Virginia Real Estate Dirt, Real Estate 101
We’re ending the week on the Contemporary home. This can mean so many things to so many different people. I went searching for a definition on the internet this morning before beginning the post – it was difficult to find - even in wikipedia! The best definition/description of contemporary house design I found came from about.com. It said that modern or contemporary homes (defined as built in 1965 to present day) could be characterized as:
Contemporary houses have many of these features:
- odd, irregular shape
- lack of ornamentation
- tall, over-sized windows, some with trapezoid shapes
- open floor plan
- natural materials such as cedar or stone
- harmony with the surrounding landscape
I would also add that many contemporary homes, along with achieving harmony with the surrounding landscape, they are also more interested in sustainable design – eco-building, eco-friendly, green homes, etc…
Although we don’t have an over abundance of these homes here in the area - there are some and when done well, they are spectacular! Let’s look at some examples:
While some of these may look dark and windowless from the front - the insides are usually open and stunning!
There are so many wonderful contemporary properties to see and if they interest you, and you’d like to take a look, call me!
Happy Friday!
Jennifer
Serving all of your real estate needs in Arlington, McLean and the entire Northern Virginia Region!
Contact me today for a free home valuation or buyer counseling session! Spring is HERE!
Like what you’ve read? Subscribe here.
| Discussion: 1 Comment »
Arlington House Styles Part 4 - The Split Level
July 31st, 2008 Categories: Arlington Dirt, Neighborhoods, Northern Virginia Real Estate Dirt, Real Estate 101
Today’s lesson will be a short one – in all actuality it probably should have been included yesterday. Today I’d like to discus the split level home. These were wildly popular in the 70’s although I’m not quite sure why, but we see quite a lot built during that time period – of course some earlier, some later.
The main characteristic of a split level is that the home is quite literally split into two halves and they are 1/2 a story apart from each other. MOST of the time, the split is side to side. So, what you can expect from a floor plan is to enter into a foyer and have a living room, dining room and kitchen on that same floor. Then, you can turn to the left (or right) and choose to go UP 1/2 a flight of steps to the bedrooms (anywhere from 2–4 depending on the size of home) or DOWN 1/2 a flight of steps to a rec-room. Sometimes you can continue down 1/2 flight zig-zagging through the house from side to side to lower level bedrooms or even an unfinished storage area, laundry, etc…
You’ll hear references sometimes to a 4–level split. Conceptually, if you flattened the house out, you’d have a rambler on a basement. Instead, this just gives some interest to the spaces. The most I’ve seen is a 5–level split. Also, and I’ve only ever seen one of these, I once saw a back to front split - it was a very interesting home but you wouldn’t be able to tell it’s a split level from the outside…
Here are our photo examples: This first one is a little tough to read, but look at the window heights on the left side of the home compared with the top of the door frame…
Here’s another one that’s easier to see:
In this second example you see a more typical roof line change.
Happy Thursday
Jennifer
Serving all of your real estate needs in Arlington, McLean and the entire Northern Virginia Region!
Contact me today for a free home valuation or buyer counseling session! Spring is HERE!
Like what you’ve read? Subscribe here.
| Discussion: No Comments »
What Can a SELLER do to help their Home Sell?
June 19th, 2008 Categories: Alexandria Dirt, Arlington Dirt, Falls Church Dirt, McLean Dirt, Northern Virginia Home Selling, Northern Virginia Real Estate Dirt, Real Estate 101, Reston Dirt
Let’s face it – what sells a home is the right person walking through the door at the right time. The process is a balance between a competent real estate agent and a client, in most cases. The agent comes to the table with a plan for how to cast the widest net to catch potential buyers. This might include hosting an open house, online advertising, etc…
However, there are definitely two sides to the partnership and if the seller doesn’t truly get their head in the game, you could find yourself with a lopsided partnership - even the best marketing can’t sell a house that really isn’t prepared properly to sell. So let’s examine what the home sellers can, and should, do!
FIRST – PRICE THE HOME TO SELL
I hear this a lot on listing appointments, “Jennifer, we think your pricing strategy is right on - but we’d like to start high in order to test the waters 
to see if we can get a better offer and also, we want to give ourselves some negotiating room.”
While I agree with the sentiment, buyers KNOW when a home is priced right and while there are some knuckleheads out there who may try a lowball offer, when you’ve hit the right price, easily justified, my experience is that sellers don’t need to be braced to have to give away the farm. The negotiation process can be quite even handed and civilized!
Pricing, in my opinion, is the #1 thing a seller can do to influence the reception in the market and to get their home sold quickly. There are certainly challenges, not every home is easy to price, not every buyer will be willing to pay extra for those special inlay hardwood floors, not every home has good comps. But with good homework and a meeting of the minds, GET THE HOME PRICED RIGHT out of the gate - you won’t regret it!
SECOND – PRESENT IT WELL
What does this mean? Well, first, any obvious repairs should be done – re-caulking old icky bathroom tile; perhaps a leak was fixed but the re-painting was never done? Carpets dirty? A good cleaning can do a world of good. (See my previous article on carpet cleaning) Look around through fresh eyes if possible. Remember, when your agent makes suggestions, take them seriously. Try not to have your feelings hurt when they suggest that you remove the 1980’s curtains to freshen and brighten everything up a bit. Appearances are everything and some buyers cannot look past some 
of those “personal touches.”
The clutter and anything excess (furniture, clothing, towels, sheets, food, etc…) should be removed – yes REMOVED. Do whatever it takes. If you need to get a storage unit and it costs you $250 but nets you $10,000 more on your home because it appears to have adequate space and storage – would you be upset? NO - so go to it. Clear it out, clean it out, purge, pack it up, etc…
The exterior should be well maintained – this includes the windows looking to the exterior – clean and sparkly! Lawns should be kept tidy, toys, tools, etc should be kept put away. Garages should be cleaned out and purged just as described above. If any decks or siding require power washing, rent a power washer - it’s easy - even I can do it!
And lastly, CLEAN CLEAN CLEAN. There’s nothing worse than thinking of how much cleaning a place would require before moving in. Bleach might just become your best friend! But it’s true, a neat, tidy, bright, clean house will sell 10 times before the same house without taking those steps to prepare.
I believe that pricing and preparation are 80% of the game. However, there are a few other things that sellers should keep in mind:
1. Be Available. Have your home as available as possible to be shown. This might not always be convenient - but hey, you’re trying to sell your home. Make it as easy as possible, especially as it relates to pets, alarms, children, etc…
2. Communication. Be sure that your agent is on the ball - returning phone calls from prospective buyer agents; returning phone calls to prospective buyers from signs or Internet ads. Be sure that YOU are communicating with your agent about showings and that THEY are communicating relevant feedback to you.
3. Remain Flexible. Flexible with showings, flexible with settlement dates, flexible with finding creative solutions to help your home be more attractive to an “almost fit” buyer. Be flexible and pro-active.
It’s not always easy being a home seller in this market. Most Arlington home sellers are doing ok – I hear once you get a little further out even to communities like Vienna and Reston, the sales are farther and fewer between. However, having your home ready to go ensures that when that buyer does come along, you’ll be the best looking property in their price range!
Good luck, and if you’re thinking of becoming a home seller, give me a call!
Happy Thursday
Jennifer
Serving all of your real estate needs in Arlington, McLean and the entire Northern Virginia Region!
Contact me today for a free home valuation or buyer counseling session! No time like the present!
| Discussion: 1 Comment »
I Think I’m Ready to Buy - What Now?
April 30th, 2008 Categories: Alexandria Dirt, Arlington Dirt, Falls Church Dirt, First Time Buyers Club, McLean Dirt, Northern Virginia Home Buying, Northern Virginia Real Estate Dirt, Real Estate 101, Reston Dirt
Oh boy, I hear this all the time - and it’s music to my ears. It means 
another new face will soon be added to the list of happy, satisfied customers of mine! But I guess I’m getting a little ahead of myself.
It can certainly appear to be a complicated process and one that doesn’t present itself as straight forward as it actually is. I got an email the other day from a reader indicating that he’s ready to start the process and looking for direction on where to start - so here are a few easy steps to begin with.
Lender
This is the first and MOST important place to start – interview a few good, solid local lenders – individuals that will stand beside you during this process - answer questions, walk you through specific scenarios where rates and/or points are adjusted with various what-if situations. These people will not let you down - their reputation hangs on how well they perform each and every time. Also, you must know that no loan is too big or too small. Many lenders offer unique programs or are well versed with a particular type or style of loan (maybe VA or VHDA or FHA or jumbo) – so that’s why I recommend talking with a few.
Property Characteristics — Location, Amenities, Size, etc…
OK, now that you know what you can afford, the next thing to do is to prioritize what it is you’re looking for. Sometimes this is easy because perhaps your budget already lines up with expectations. Other times, sacrifices must be made. Through a simple process, we can easily work together to narrow down some good possibilities for you. I can also make suggestions on neighborhoods that I might be aware of that might be a good compromise and/or buildings that might offer you some built in amenities to save costs elsewhere (gym memberships, parking at work if you’re on metro, etc…).
Hit The Road
Then it’s time to hit the road – by this time we’ve gone back and forth with
priorities, budgets, etc… and it’s time to actually go and see some of the front runners. Often times, once we’re out together, certain priorities will shift – perhaps a commute that was once thought do-able becomes suddenly unbearable – but that’s ok, this is the discovery phase! Perhaps you fall in love with a place that wasn’t want you had in mind at all to begin with!
Eventually we come across a place that makes your heart skip a beat and it’s the one that you find yourself imagining making coffee in, or decorating with your “colors” or walking down the street to one of your favorite haunts! Then we know we’re on to something.
Finding a great place to live can be a fun and rewarding process. I always say if you surround yourself with good people you will position yourself for outstanding results! It’s true – if you’re thinking about beginning the process, give me a jingle. I can point you in the direction of some excellent local resources and we can get started today! No time like the present!
Happy Tuesday
Jennifer
Serving all of your real estate needs in Arlington, McLean and the entire Northern Virginia Region!
Contact me today for a free home valuation or buyer counseling session! Spring is HERE!
| Discussion: No Comments »
Mortgages 101 - A First Lesson
February 29th, 2008 Categories: Alexandria Dirt, Arlington Dirt, First Time Buyers Club, McLean Dirt, Northern Virginia Home Buying, Northern Virginia Real Estate Dirt, Real Estate 101, Reston Dirt
Mortgages 101
One question I get asked a lot is “What are rates these days?”
And the answer is, drumroll please….. “well, that depends!” You know, back in the old days, real estate finance was fairly simple. You had to save up a nice down payment of 20% and there was 1 program (an 80% first trust loan) and a rate. That’s it – simple – so simple that the real estate agents used to qualify the consumers! Yep – you met with your Realtor, filled out an information sheet, then he or she would qualify you and after writing a contract, THEN you would head off to find a lender.
Wow have things changed! Now, the lender is one of the very first things we usually like to get taken care of. 1) It helps you to understand what you can afford and 2) you can choose the program that best suits your plans.
Some of the more popular mortgage programs are:
The Classic 80% - fully amortized loan
The Classic with a twist – maybe an 80/10/10 or an 80/15/5 that involve a 2nd trust or Home Equity Line of Credit
Interest Only
ARMS
Another twist now is that the interest rates are influenced by your credit score – the better the score, the lower the risk and therefore, the lower the rate.
Let’s look at some of these programs.
You’ve heard 1st trust, 2nd trust, 80/15/5 or 80/10/10… these terms get tossed around all the time – mainly these programs are determined by how much cash you have to put down at settlement. Example: If you’re looking to purchase a home for $400,000 by the old standards you would need to have $80,000 to put down and you would then finance 80% or $320,000. If you don’t have $80K, you might look at an 80/10/10 which means your 1st trust loan would be in the amount of $320,000 and you would have a 2nd trust loan in the amount of $40,000 which would reduce your down payment to $40,000.
If you don’t have $40K, then you could either look at an 80/15/5 which would lower your down payment requirement to 5% - $20,000 – or you could even consider 100% financing which is still an option today under certain circumstances! With the credit crunch and the tightening up of loan guidelines, you may find this is no longer an option for you – all the more reason to be working with a good, local, TRUSTWORTHY lender!
Once you determine what your cash position is and how much you’d like to 
finance, then you would need to choose a program – do you want to pay down your loan amount each month? That’s called a “fully amortized” loan – if you are more aggressive (and possibly a more disciplined investor) you might want to consider an interest only loan – NO principle is paid down, but the theory is that you can take that monthly savings and place it in your investment account.
In this scenario, you are relying on housing market appreciation to allow you to make a profit and move in years ahead. It’s all about risk. You should also consider the length of time you plan to stay in your home. If you’re looking at a 5-7 year investment, you might consider a 10 year ARM or Adjustable Rate Mortgage. If you’re in shorter – there are 3 or 5 year ARMS.
These days there is an additional category of loans that should be discussed, and I will do so in another post. Those are Government backed loans: FHA, VA, VHDA and the like. These are now VERY viable options whereas they used to be looked at as options only for those with credit issues. This is quite possibly the best route to take in some cases now.
One thing is for sure - you need to be well guided, well educated and ready to make some responsible choices for yourself — especially to avoid future problems. Many people have gotten in over their heads and are now going through the foreclosure process. If you’re conservative and have good advice, there are wonderful properties out there just waiting for you to call “home.”
I hope this has given an introduction to the very complex mortgage industry – de-mystifying some terms – it’s always good to partner with a good lender that can help you navigate through this complex process, making it simple and straight forward. I can help you find some great lenders if needed – I’m always here!
Happy Friday!
Jennifer Klaussen
Serving all of your real estate needs in Arlington, McLean and the entire Northern Virginia Region!
Contact me today for a free home valuation or buyer counseling session! The Time is NOW!
| Discussion: 1 Comment »
To Inspect or Not? That is the Question…
February 19th, 2008 Categories: Alexandria Dirt, Arlington Dirt, Falls Church Dirt, First Time Buyers Club, McLean Dirt, Northern Virginia Home Buying, Northern Virginia Real Estate Dirt, Real Estate 101, Reston Dirt
One of the questions I get asked a lot is “do I need a home inspection?” ![Images[3]](http://www.thearlingtondirt.com/wp-content/uploads/2008/02/images3-small.jpg)
Well, MOST of the time the answer is a resounding YES!!! Not only is it an opportunity to uncover possible deficiencies in your prospective new home, but it’s also your chance to learn about your home. Perhaps you’ve never bought a home before? Or perhaps you’ve always had a heat pump and in your new home it’s a gas furnace… Your Home Inspector will help you learn all sorts of wonderful things about your home and about home maintenance in general.
With regard to property condition, here in Northern Virginia, our contract stipulates that there will be 6 systems to convey to the purchaser in Normal Working Order: heating systems, cooling systems, plumbing, electrical, appliances and smoke/fire detectors. Aside from those, sellers generally aren’t required to warrant or disclose to a purchaser anything about the condition of their property. This is why a home inspection becomes very important.
So let’s look at some exceptions:
Condominium Purchase
If you’re purchasing a “traditional” condominium unit in a building - you know, like a box in a building – I’m not referring to the garden style with direct entry, maybe porches, patios, multi-level, etc… – but a traditional apartment style condo – there’s not a lot for the home inspector to uncover about your property that’s not already covered by the Normal Working Order requirements as described above. So they can look at the windows, the walls, floors, doors, etc… but really in a condo, I typically recommend a Home Warranty which covers most appliances, heating/cooling systems, etc… as an added protection for the first year. The only exception being if your eyes are telling you that you suspect problems… trust your gut!
If you’re purchasing a condo unit that is perhaps structurally a little more complicated, has attic access, dormer windows, has stairs, is significantly larger or generally you’re unsure of condition, it’s always a good idea to go ahead with the home inspection
An AS-IS Sale
Sometimes around here, sellers want to sell their homes in “as-is” condition. This just means that they’re not even going to conform to the standard contract language requiring those 6 systems listed above to be in normal working order… so they’re asking the purchaser to accept it in as-is condition as of the date of the contract. So basically what-you-see-is-what-you-get. In this case, it’s still a good idea to get a home inspection but what the seller is saying is that 1) they will not remedy anything and 2) they won’t let you out of your contract based on home inspection findings. Although special language can be written in acknowledging the first point, but still asking for an “out” based on findings. Anyway, in either case, it’s a situation to be a little leary of unless you basically already know what you’re getting into OR you’re VERY handy and it doesn’t matter.
Another tactic in these situations would be to go ahead with seller permission and have a home inspection completed prior to writing a contract. Then you’ve got a little protection.
So, I hope you’re a little more comfortable on the topic of home inspections… a few more thoughts… Always hire a home inspector that’s certified either through ASHI, NAHI or NACHI.
Any other questions? You know where to find me.
Happy Tuesday!
Jennifer
Serving all of your real estate needs in Arlington, McLean and the entire Northern Virginia Region!
Contact me today for a free home valuation or buyer counseling session! The Time is NOW!
| Discussion: 5 Comments »
Earnest Money Depost - Why? Who? How Much?
January 29th, 2008 Categories: Alexandria Dirt, Arlington Dirt, First Time Buyers Club, McLean Dirt, Northern Virginia Home Buying, Real Estate 101, Reston Dirt
You’ve heard the term “good faith deposit” or “earnest money deposit” but what does it mean exactly? Who keeps it? What’s the purpose? Why does it matter? How much should it be? Let’s see if I can address all of these issues, bringing clarity to the importance of understanding the earnest money deposit.
What is it?
Here in Northern Virginia, when a buyer writes an offer on a property, our contract 
calls for it to be accompanied by an earnest money deposit of some amount – typically in the form of a personal check. This amount is usually a percent or two of the sales price… as a general rule of thumb. I’ve seen more - the higher the amount, the more seriously your offer is taken. This money belongs to the buyer, but it gets deposited prior to settlement usually with the real estate brokerage that is representing the buyer. However it is applied at settlement towards your closing costs or down payment.
Why do I need it?
The purpose of it is to show the seller that the buyer is serious about the purchase. It is the money that they are risking to lose should they default on the contract. Remember, I said “default.” If the buyer finds something with the home inspection or the association documents that they are unhappy about and can’t work out a solution, they can walk away under most circumstances and they will receive that earnest money back from the broker. However, if they walk away with no cause, or with no “out” from the contract — it’s default and they stand to lose that earnest money deposit and sometimes more. So it’s the money they’re putting forward in good faith indicating their intent to follow through on the contract.
Does it really matter how much I write it for?
From the seller’s perspective, if they received 2 contracts, one with a deposit of a few hundred dollars vs. another with one that was $10,000 - which do you think they’d consider to be stronger? Right, the one that’s higher indicating a higher degree of seriousness.
Now, it’s not all about earnest money - there are plenty of other factors that go into writing a good solid contract – but it is certainly a consideration that everyone should understand in order to be aware of the implications.
For professional guidance through the home buying process, give me a jingle! I’d be more than happy to help educate you on all of the ins and outs of good contract writing. Then, when you’re ready to move forward with your offer, you’ll be knowledgeable about the process and the process can move along smoothly!
Happy Tuesday!
Jennifer Klaussen
Serving all of your real estate needs in Arlington, McLean and the entire Northern Virginia Region!
Contact me today for a free home valuation! Spring is right around the corner!
| Discussion: 1 Comment »
Homeowners Insurance - the Ins and Outs
January 28th, 2008 Categories: Alexandria Dirt, Arlington Dirt, Falls Church Dirt, First Time Buyers Club, McLean Dirt, Northern Virginia Home Buying, Northern Virginia Home Selling, Northern Virginia Real Estate Dirt, Real Estate 101, Reston Dirt
One of the necessary things to plan for when making a real estate purchase is insurance. But what do you need? Well, I’m not an insurance agent (read: insurance expert), but I can tell you from a property ownership perspective the minimums that you should have… read on.
Condominium Insurance Needs
When purchasing a condominium, the association carries a master insurance policy on the entire building structure. This is one of the costs that your condo fee covers. However, you’re not off the hook. You should have insurance to cover your personal belongings, as well as personal liability, so if anyone ever injures themselves on your property, you’re covered.
Single Family and Townhome Insurance Needs
When purchasing any other type of property with fee simple ownership (when you own the ground and air above – exterior walls, fireplaces, roofs, etc…) then you need a full featured home-owners policy, sometimes called a hazard policy, covering the structure, contents, liability, etc. There are specialty riders as well. For example, here in Northern Virginia, we don’t worry too much about earthquake policies and not too many properties are affected by the 100 year flood plain (although there are some) and require special flood insurance.
What to do?
One of your first jobs once you have a ratified contract will be to contact an insurance agent or two, get quotes and make application for insurance.
You’ll need to know such things as:
Wiring type
age of roof
# of layers on the roof (sometimes a new layer of shingles is nailed right onto the old layer)
distance to nearest fire hydrant
etc…
They will also run a C.L.U.E. report. The C.L.U.E. report (Comprehensive Loss Underwriting Exchange) will provide a 5 year history of losses associated with an individual and his/her property.
The home insurance policy will be paid for in full for the first year at the settlement table. Your lender will then begin to escrow 1/12 of your annual policy amount so that the beginning of year 2, they will have collected enough money from you to cover the premium that will come due at that point. IF for some reason you don’t go to settlement - say the contract gets voided because of an inspection item, or an appraisal issue – you’re not on the hook at all — after all, no service has been rendered. You simply call the insurance company and tell them the deal isn’t going through. They can sit tight until the next time!
Additionally, something many don’t realize, if you move to your new residence and have to leave a property vacant, communicating that to your insurance agent is very important. Since it’s obviously vacant, you won’t need to continue to insure the contents, but you will need to carry at a minimum a basic fire policy AND a comprehensive liability policy.
The key to good insurance is communicating with your agent. There are many great insurance companies out there - find one you’re comfortable with that offers competitive rates and you should be set. As always, if you want to talk further, don’t hesitate to give me a call or email.
Happy Monday!
Jennifer
Serving all of your real estate needs in Arlington, McLean and the entire Northern Virginia Region!
Contact me today for a free home valuation! Spring is right around the corner!
| Discussion: 1 Comment »
Copyright © 2007 Arlington Dirt Real Estate Blog 