People seek the perfect home. There are so many variables, needs versus wants, deal breakers on the can't-have and can't-live-without sides of the scale. Buying a house is a difficult decision. One searches for the ideal match, often torn, angst-ridden.
And the first thing they do after they move in is change it. Paint a room, swap out a light fixture, renovate the hall bath. They make it their own. And it is natural and comforting and affirming.
So don't fret over the little things when you immersed in your home search. Your new home will be perfect, and then you will make it perfect-er, and it will be yours.
This quote of the day is from my favorite Washington Nationals announcer, FP Santangelo. On August 26, 2014, top of the 7th inning playing at the Philadelphia Phillies, one out, bases loaded, up to bat was Kevin Frandsen of the Nats. FP was talking about how, as a young hitter, you might be focusing on the result, say a grand slam, and not the process. Instead, as a veteran, he stated you let the pitch dictate the at bat:
Results take care of themselves if you stick with the process.
Hold a beat, then Frandsen hits an RBI single!
As a real estate agent, I believe in my processes, both in managing a transaction, leading buyer clients through their home search and contract, helping a seller with their property's preparation, presentation and pricing, as well as my client prospecting activities. It is difficult sometimes to lose sight of the process, but the results do come. They come in the form of the perfect house for a newlywed couple, the ideal inspection contingency result for a single buyer client, and the ideal house prep and presentation to the market for a seller who needed a quick sale.
I recently had the good fortune to help some lovely buyer clients purchase a terrific home in Hyattsville, Maryland.
The original owners of house, the Mosedales, built it in 1935 and their children sold the home in 2009 to the recent sellers. These sellers found tucked in the eaves of the unfinished attic three diplomas from the folks who first built the house, including this 1925 typing certificate of Mrs. Mosedale before she was married. Although a touch dusty, my clients, the happy new homeowners, will clean these up and display in their beautiful, original framing, once they finish that attic space into a fifth bedroom.
Also found was box of original tiles for the first floor bathroom which we think was added in the 50s or 60s.
Although not part of the designated Historic District of the town, this home is just blocks away from classic four-squares and quite a few Queen Anne Victorian style homes built in the late 19th century. I also unearthed in my web research the Original City Charter for Hyattsville.
Areas like this are ripe for continued vitalization and discovery: inside the Beltway with a short commute into the District and to the University of Maryland, filled with character, charm, and history. More recent developments like the New Arts District and the continuous Green Line Metro that now goes all the way from West Hyattsville and Prince Georges Plaza stations through to Anacostia (stopping in the heart of downtown DC and the Navy Yard/Waterfront areas) are sure to make Hyattsville even more popular over time.
My real estate reality for today is your geography bee. See if you can picture where all these places are in your head or if you need a map.
I will leave my house in Bethesda, Montgomery County, Maryland, to drive to the McEnearney Associates office in Leesburg, Loudoun County, Virginia, to meet my clients (who live in that town now) in order to write an offer on a house in Knoxville, MD, (the Washington County part), which is listed by a brokerage in Lutherville, Baltimore County, MD.
Bonus points if you know the other county in Maryland where some Knoxville residents live. I'm happy I drive a hybrid because afterwards, I'll head to the Eastern Shore to our house in St. Michaels, Talbot County, MD. Love living in the #dmv.
I have a tool, adapted from my Project Management toolkit, that I use to help explain real estate choices and decisions to clients. I decided to share it in a blog post after receiving a lot of terrific feedback about it from colleagues at my brokerage, McEnearney Associates. This is the Real Estate Triangle of Triple Constraints. Of course it is just a model, but I believe it is an important one that reflects realistic constraints and relationships between different home purchase (or sale) factors.
For any given price range, or maximum purchase price, there are three main factors at play: Location, Condition, and Size & Features. There are physical and market forces that limit the houses available in any given location, and this triangle of factors must be in balance for a given price. It just is not possible to want a bigger house in better condition and located in a more desirable (or popular) neighborhood for a given price, if perhaps you've seen everything in your price range in a given area.
Another way to think about this triangle is: sometimes you need to sacrifice the condition (maybe everything was not upgraded last week) of a house to get the size and features you want (number of bedrooms, size of yard, finishes in the kitchen); or vice versa (condition is key, so the house may be smaller). Also, a buyer should share with their agent what is their driving, priority factor in their search. Sometimes a buyer might want to stay in their current school cluster, or they want to walk to the Metro or to shopping and recreation, so Location is their priority "leg" on the triangle. To get that priority feature, they may need to sacrifice on size depending on their price range.
I also use this tool to demonstrate to sellers how potential buyers will perceive their home based on comparables in their area, price, condition or size. If their house is a larger home compared to others in the same area and in similar condition, they may sell at a higher price. But if their home's condition and features (finishes and upgrades for example) are lagging behind others on the market, the price will be affected.
I am always happy to meet with buyers and sellers for an initial consultation about their situation and this is just one example of the tools and topics I share.
For those in the market for a new house now, that search may stretch into the new year. There was some talk, and concern even, among Realtors and those in the mortgage industry that there may be a reduction in the maximum loan limits for loans underwritten following standards of Fannie Mae and Freddie Mac. Great news! The loan limits for conventional financing are remaining fixed into 2014 in our area (and most of the country). In Maryland and DC, here are some relevant caps for high balance conforming loans.
Montgomery County = $625,500
Prince George's County = $625,500
Frederick County = $625,500
Anne Arundel County = $494,500
Talbot County = $417,000
Washington, DC = $625,500
And for my friends and family in Wisconsin, all counties in that state have the $417,000 limit. If you would like to know your loan limits if you live elsewhere in the US, I can let you know based on your state and county.
By the way, I have a terrific listing for a house for sale in College Park, MD, listed at $274,000, which is in Prince George's County, through my brokerage, McEnearney Associates, Inc; main office: 202-552-5600; or email or call me directly.
For first time homebuyers in Washington, DC, there are some great options you should investigate if you are considering a purchase.
First is the DC Tax Abatement program. This program has two components and is based on household income to qualify. Qualification guidelines are available elsewhere and each buyer should consult their licensed real estate agent and a settlement agent or attorney about their specific situation.
The first component of this program is the elimination of the DC Recordation Tax (for properties under $400,000 purchase price, this is 1.1% of the sales price for each side of the transaction) and a possible seller credit of the other 1.1% of the DC Transfer Tax.
The second portion is potentially more impactive. Starting in the first tax year following purchase, with the DC property tax cycle running October 1 to September 30, the buyer is exempt from DC property taxes for 5 years, assuming you live in the property as your primary residence for that full period.
In addition to these tax programs, there are currently a number of mortgage programs aimed at DC first time buyers, too. For example, the DC Open Doors program is one option available through specific mortgage lenders. There are low down payment requirements and potential down payment assistance (in some cases through a low or no-interest loan) for qualified buyers.
I have one buyer client now (and potentially a second client) working with a mortgage lender on a Community Reinvestment Act (CRA) loan for first time homebuyers. This has a low interest rate, low down payment requirements, and no private mortgage insurance.
A skilled and experienced Realtor can guide you to programs that could help make your dream of home ownership a reality, within your means, and with the right loan, and home, for you.
As I type, the view out my window is different from this picture. Now the autumn shades are decidedly rust, orange, brown. Two weeks ago, the golden yellow was radiant. This photo does not begin to capture the beauty outside my window on that day.
For some, living in the woods may bring daily reminders of the seasons, the natural world including the birds and chipmunks which live there too, and a sense of calm. That was me today, starting my early morning with gratitude for trees.
Others may crave wide open vistas and the sun shining through year round, not to mention a lack of branches to pick up after a storm and spare time in the fall while others are raking.
Everyone seeks a different combination of factors in a home, and the outside of a home is part of that equation. Gardening, a place for children and/or pets to play, outdoor dining, bird watching, and broader views may be important to home buyers. What is on your wish list as you look outside today?
I am currently reading an interesting, though a little depressing, book called "At Home: A Short History of Private Life" by Bill Bryson. I am certain I will be blogging about this book more in the future because it is filled with interesting information about the history of homes and rooms in homes more specifically.
Early in the book I read something that gave me a unique perspective on a topic many home buyers face today: debt-to-income ratios. Basically, through typical underwriting requirements for home mortgages, most lenders dictate a maximum total debt-to-income ratio of 38% for their average borrower, and that their housing debt be no more than between 28% and 33% of their monthly gross (pre-tax) income.
According to Bryson, in nineteenth century England, "Up to 80 percent of all household expenditure... was spent on food, and up to 80 percent of that went toward bread."
Think about that for a minute. Almost two-thirds of all money was spent on bread! Today, my understanding is that the average American household (appreciating that there are likely wide variations) spends about 25% on food. Housing is a high expense for many people, but I was stunned by this glimpse into history.
Three beautiful words in the Language of Real Estate.
Cleared To Close
Mortgage lending is a complex process in today's market and for many good reasons. The underwriting guidelines are strict and buyers often have to produce multiple documents and some in the final few days prior to settlement.
So when my buyers' lender sent the email today saying Cleared To Close, I did a little happy dance. My buyers will be able to close on their future home on Friday morning! Congratulations to them.
I spotted today's Quote of the Day stenciled on a window of a restaurant along Wisconsin Avenue NW in DC.
If opportunity doesn't knock, build a door.
--Milton Berle
What a great concept for real estate, in many ways. For example, if my buyers are having a difficult time getting a new home due to multiple offers with escalations and no contingencies by other bidders, we might need to be more creative with our search strategy: look for properties on the market for longer periods due to overpricing or property condition; actively communicate with other agents in my brokerage for upcoming listings so we can be first in when it hits the market; or even broaden our search to other areas where inventory might be higher.
Another way to ponder this quote is for people who might decide to stay in their current home and improve it rather than making a move. While it might seem contradictory for a Realtor to talk about a situation that does not result in a home sale, I believe in providing organized, creative, intelligent real estate solutions for clients whether they are buying, selling or staying. Give me a call to discuss how I can help you find your best solution.
As a dedicated reader to the print versions of the Washington Post "Local Living" section on Thursdays and the "Real Estate" section on Saturdays (and yes I do still pour through the Real Estate open house ads on Sundays, in print, even though as a Realtor I have access to our local Multiple Listing Service directly), a couple weeks ago I enjoyed an article about the modern kitchen of 2013. It got me thinking about my own kitchen, aka the reason we bought our house. (OK, we actually bought our house for lots of reasons like its Tudor style, the wonderful location in the woods and close to my daughters' schools, the gorgeous original wood floors, the massive fireplaces that I adore, the laundry shoot, etc.; the kitchen was the reason we insisted on coming to the open house.) I thought the Post article was a little light on function and tilted toward style and while I love the look of my kitchen, I appreciate its layout and features even more.
Most days begin, after my first sips of coffee, with making my girls' lunches. Tucked at one end of the 7-1/2 ft center island is a shallow cabinet we call the lunch station. Note the lunch boxes, water bottles, small reusable storage containers and lunch utensils. Mealtimes are made easier by the pair of refrigerator drawers installed near the kitchen table. In these we keep beverages like milk and OJ, pop and beer, as well as bagels, bread, yogurts and sour cream.
The 36 inch, 6 burner Wolf dual-fuel stove is great for cooking, although the oven does take a while to preheat and there is only one oven space, so we did have to supplement with my beloved countertop Breville toaster convection oven (not shown). I should mention some style elements that are not as in vogue today yet I do like them personally - the dark soapstone counters (I am partial to the matte finish) and the slate backsplash. According to the Post article, rich cherry cabinets are still popular. My favorite part of our cabinetry is the convenient and ample storage it gives us. This particular set is next to the table again so we can store all our daily dishes for quick table setting and dishwasher unloading. The lower ones feature pull-out shelves too.
A buzz word in real estate today is Open Concept. Well that is two words. The previous owners who renovated the kitchen and dining room into its current configuration did eliminate one wall to create the single room and open the space to the living room. They also enhanced the pass-through to the back addition (done by the previous previous owners). We use this space as a dining room plus sun room including music space, so we enjoy hearing our fourth grader play the clarinet and love it every single time we pass food and then dirty dishes through this window.
So those are the highlights of my dream kitchen, which also happens to be our actual kitchen. Kitchens are a central and important feature of any home so buying a home with a renovated kitchen or one with hopes of renovating yourself (like some current buyer clients of mine) is something I discuss with buyers almost every day. What works well in your dream kitchen? And how can I help you find or build it?
Quote of the Day: Something for home buyers to keep in mind when seeing houses.
You can't depend on your eyes when your imagination is out of focus.
-Mark Twain
A couple observations:
1. I guess I like Mark Twain quotes; I have posted at least one other.
2. Many times, buyers tour through potential new homes and fixate on one (or more) negative aspect of the house, like the ugly tiles in the owner's suite bath or the unpleasant harvest gold color of the laundry room walls, rather than taking the broader view of the space, layout, unique features, and the home's value in total. Of course the space and usage of a home are crucial to a buyer, as is location (for commute distance and options, access to services and amenities like recreation). But the surfaces like carpeting and wall color can all be easily and relatively inexpensively changed.
You cannot move a property, but you can certainly paint your laundry room.
Buying a new home is a pricey proposition. Not only do you obviously pay and borrow for the sales price you negotiate with the seller, but there are closing costs like transfer and recordation taxes, escrow funding charges, and other loan fees and deed costs. Then you need to move your belongings, and even if you move yourself, there are costs for trucks, setting up utilities, packing materials and the like.
Once you move in, there may be features of the house you want to improve right away. You want to make this house your home, to nest. Maybe your son wants his room painted orange. And you want to remove the old carpet from the den. Perhaps you want to enhance the storage capabilities of the house (more on closet extenders in another post). And you might be like one of my recent buyer clients, who wanted to invest in increasing the energy efficiency and reliability of her home's systems.
This particular home, built in 1940, came with a creaky old oil boiler which provided both heat and hot water to the house. Basically the furnace was running year round to provide hot showers and the like; not particularly energy efficient. My buyer client, now the new homeowner, invested in a new natural gas boiler for heating and a separate gas hot water heater.
The happy homeowner anticipates her energy bills to be drastically reduced. Of course there were upfront costs to invest in future savings and energy efficiency. She shared the numbers with me:
$9,800 to remove the oil tank from the utility room, leaving more space for storage too, plus the equipment and installation of the two pieces shown on the right.
$2,125 to install a new stainless steel flue liner into the chimney stack for safe ventilation of the new gas boiler.
She also gains peace of mind with new systems, a dedicated water heater, no need for oil delivery to the house, freed up a corner in the utility room with the removal of the oil tank to provide more storage space, easier future maintenance for the modern systems, and immediate monthly savings.
She nested (the dining room in particular looks great in its lovely new shade of blue) and invested (it is a beautiful new boiler).
When you move into a new home, there are many firsts. First night sleeping there, first snowstorm, first spring blooms, first time the power goes out, maybe even the first time you bring home a newborn from the hospital. This time of year I particularly enjoy the concept of the first holiday in a new home.
A long-standing tradition in my family is the collection of Christmas ornaments. We maintain lists of the new ornaments each year, documented by family member. My Mom used to keep the lists and I still have the original list from my childhood. The lists are treasured as they help me remember when I got a certain ornament and maybe even who gave it to me. We tuck the lists in a safe place for 11 months of the year, so safe in fact that one year we could not find the lists. The following Christmas season we discovered the lists, pressed between pages of the Bible.
Commemorating the first holiday in a new home with a special Christmas ornament or other holiday momento is a tradition I will carry on with my real estate clients. What holiday traditions around house and home do you treasure?
Welcome to my new occasional feature, "On the Ground." As you know from previous posts, part of my job involves previewing properties for current and future buyers and also to maintain my working knowledge of the local real estate market. A new goal of mine is to explore or rediscover neighborhoods in DC and Maryland on a broader level by viewing not only specific properties but also the surrounding areas.
My first journey took me to Southwest DC and the Waterfront area. I had previously written about the new development in this area, so I wanted to get an On the Ground look at the current market, housing options, and neighborhood amenities. Who better to assist me but a dear friend and current resident of one of the Harbor Square co-op buildings directly on the water. Al was kind enough to guide me and my older daughter Lucy around on Bikeshare bicycles for about an hour, weaving through streets and developments with running commentary on the types of units and architecture, the accessibility to amenities and job centers like Capitol Hill, and other interesting and useful topics.
I must pause here to note that the photo above was taking directly in front of Al's building and his views are amazing of the water, Haines Point across the river, and of many of the notable landmarks in DC like the Washington Monument, the National Cathedral, and the Capitol Dome. And to give Al a big shout-out for his hospitality and his time.
Back to my report on SW DC.... The recent redevelopment of the existing retail to include one of the nicest Safeway grocery stores I've ever seen (a far cry from the Soviet Safeway I used to rely on in my early days in Dupont Circle) and a CVS pharmacy add tremendous convenience to this area. When they renovated the shopping, they also reconnected 4th St SW with the Mall to the North for better driving access. With all the new planned housing development, it was awesome to discover the pockets of unique, mid-Century modern architecture throughout this area. Some development from the 60s was in the style shown here. You can't find pockets of this style in many places in the DC Metro area.
I look forward to showing buyers this unique area of the city and to my next On the Ground adventure.
Today is the one-and-a-half-year anniversary for William and Kate, the Duke and Duchess of Cambridge, and for my family's move into our home in Bethesda. To commemorate both occasions, I bought a handmade Emma Bridgewater Royal Wedding mug last year. Because we had sold our house one day before buying our new home, we were homeless for a day. Our generous friends Nick and Carrie let all four of us plus our two cats stay with them for that night. The Royal Wedding coverage started in the US at 5:30am ET on Friday, April 29, 2011, so Carrrie and I awoke before dawn to watch the ceremony. It is no coincidence that Carrie is the one who started my Emma Bridgewater collection and that we were watching the festivities together.
This is the mug I use every Friday for my morning coffee. I derive simple pleasures from the feel of the mug in my hand, that continued joy of home ownership, and the few moments of peace before the busy-ness of life.
I feel lucky every day that I wake up in my beautiful home, with its Tudor charm, gourmet kitchen, and cozy sunroom. I feel fortunate to have the opportunity to help other buyers find their dream home, too.
In a new occasional feature, maybe to become a side bar on this blog or to stay as brief posts, I will share a Quote of the Day. Sources will vary. Additional commentary is optional.
The first QOTD was printed on the top of my Franklin Covey day planner for the week of July 30 to August 5, 2012.
Striving for excellence motivates you; striving for perfection is demoralizing.
-Harriet Braiker
Ponder this in the context of a new home search. There is no such thing as a perfect house. Rather, one can strive and hope to find the most excellent home that meets the highest percentage of your needs and wants.
Recently one of my colleagues likened the final 7-10 days before the closing on a real estate contract to "being in the red zone." For those not familiar with football of the American variety, the red zone is the twenty yards before the goal line. NFL teams are ranked on their effectiveness in the red zone by percentages of touchdowns and field goals scored. This is equivalent to "closing the deal" in real estate.
When I started pondering this analogy further, I debated with myself about whether there actually are offense and defense in real estate. Occasionally as an agent, one may feel on the defensive, to protect their client's best interests. However, the period of time from agreement and signature on a ratified sales contract to the settlement table where parties transfer ownership of real property is one of mutual interest. Both sides of the transaction, the buyers and the sellers along with their respective agents, want to get to closing (while still maintaining confidentiality and the best interests of their clients). They share that goal.
Perhaps a better football comparison is the 2 minute warning. Let's consider the game clock to be the limiting factor and the whole team is working to get to the closing deadline with all issues resolved, all the money available, and the property in the condition as previously agreed in the contract. In both analogies, here is a goal and a time constraint (the number of downs or the clock).
Either way, this period leading up to settlement is busy. Real estate agents, settlement coordinators, lenders, inspectors, and other professionals are solving problems, answering questions, working together in the best interest of their clients to reach the goal line.
I use three-page checklists as a guide through the period from contract to closing. This organized process helps me be particularly effective in the red zone of real estate.
I went to a realtor event last week on development efforts in Southwest DC. Traditionally called Waterfront (because it is on the water, and that is the name of its closest Metro station), this area is the smallest quadrant of DC. It is slotted between the Potomac River, South Capital Street, a sliver of the Anacostia River, and the Mall to the North. It boasts the oldest fish market in the US (yes, even older than Pike's Place in Seattle). From SW DC rooftops, one has stunning views of the DC monuments and skyline and, of course, water.
New public and private development is afoot. A new concert hall, condos, apartments (including uber-efficiency units for minimalists), shopping of all varieties (think livability shopping like drug stores, grocers, dry cleaners, plus destination retail), office buildings, mixed use like churches with apartments attached, green space, walkable corridors, bike share, streetcars, the list goes on. There is a tremendous focus on sustainable development, LEED certification for both commercial and residential buildings, and multi-modal transportation and transit options built into the plans.
You heard it here first (well, at least that's my claim). Look to SW DC in the very near future as the place to be hip, before the word spreads. Give me call if you need help finding a rental or if you want to be notified when new properties go on the market in this area.
A couple observations:
This particular home, built in 1940, came with a creaky old oil boiler which provided both heat and hot water to the house. Basically the furnace was running year round to provide hot showers and the like; not particularly energy efficient. My buyer client, now the new homeowner, invested in a new natural gas boiler for heating and a separate gas hot water heater.
