Stephen Adams

Funny thing about timing. Sometimes we’re on, sometimes we’re off. When it comes to real estate, regardless of the choices and consequences, some of us made money and some of us lost money. As if watching the rising temperatures, price of gas, food and basic commodities wasn’t enough to be concerned with, many of you are stressing out trying to figure out “if it really is the time” to get out there and buy a house. Before answering that, let’s see what David Reed, author of Mortgage 101 and Mortgage Confidential, has to say about “The Best Time to Lock in Your Rate,”

“What do you think about rates … should I lock in now or wait to see if they fall further?” Think I’ve been asked that a time or two over the past 18 years? You better believe it. It’s a good question—one that goes through every single buyer’s head at some stage. A quoted interest rate is no good unless you’ve confirmed, in writing, that your loan is indeed “locked,” or guaranteed for a designated period of time. You need to be proactive with your locked rate as well and don’t assume that your loan officer already locked you in.

In fact, your loan officer shouldn’t lock in your rate without your specific instructions. If it was locked in and rates went down you’d be pretty mad, wouldn’t you? While neither real estate agents nor loan officers are in the business of predicting the future, it’s still possible to make a prudent choice in the face of uncertainty. Would you rather lock in your rate and watch rates fall or not lock in your rate and see rates go up? If you decided to lock and rates go down, you’ve secured the market rate that you were happy with. But if rates went up and you didn’t lock, you’d be paying for that mistake for the rest of the loan. There is an even worse possible scenario: After not locking in your rate, rates shoot up and you no longer qualify for the loan.

So it’s important to ask yourself: “Which way would I rather be wrong?” If you are comfortable with the rate you’ve been quoted, talk to your real estate agent about the possible consequences of waiting to lock it in.”

So I know this: As I mention in part 1 of this series, the housing market is moving - buyers are still buying, and sellers are still selling. As of the writing of this article, and according to the MLS, at this time on June 9th 2008, at 11:30 P.M. in Loudoun County, there are still over 3,000 homes, townhomes, condos, etc. for sale on the market (and that’s not incl. new homes not listed, FSBO’s, etc.). There are over 1,000 homes that are Under Contract or Under Contract with contingencies with and without Kick-out clauses. 500 properties have sold in the last 30 days that the MRIS knows of. Of those, only 72 were Foreclosures, REO’s or Short Sales. According to my trusty HP 10bII calculator, those “deals and steals” accounted for less than 15% of all homes sold in Loudoun County – again, just in the last 30 days. Evidently, this is the time to buy for quite a few folks ‘out here in these parts’.

For the sixteenth consecutive year, the Dulles Area Association of REALTORS^® (DAAR) sponsored a Loudoun County Rebuilding Together/Christmas in April project to help an area family make improvements to their home.

More than 30 volunteers donated one day on Saturday, April 26^th, to rehabilitate the home of a family in need. “REALTORS^®, clients and their affiliates worked side by side to make a difference and bring some joy into the life of a local family.” according to Sue Puleo, volunteer coordinator of the project. This year’s project took place at a home near Bluemont, Virginia.

REALTORS^®, DAAR Affiliate members and local area businesses landscaped, installed handicap accessible bathroom fixtures, made kitchen and porch repairs, and cleaned up a home in Loudoun County. DAAR extends a special thank you to project captain Kirk Arant of Arant Construction in Sterling and Mike Furr of F&L Plumbing Services in Leesburg for donating many of the skilled hours.

“REALTORS^® care about making their communities strong and vibrant,” said Candice Bower, 2008 DAAR Chairman of the Board. “Rebuilding Together is just one example of REALTORS^® making positive contributions together for their community.”

Loudoun County Rebuilding Together (www.rebuildingtogether.org) formerly Christmas in April, is a non-profit volunteer organization that works in partnership with local sponsors and volunteer groups to repair and renovate the homes of low-income elderly, disabled, and families with children. There is no cost to qualified homeowners for the services provided. Since 1991, they have repaired and rehabilitated nearly 225 homes in the Loudoun County area.

Founded in 1962, the Dulles Area Association of REALTORS® is the voice of over 1,500 real estate professionals in Loudoun County and Northern Virginia. REALTOR® is a registered collective membership mark which may only be used by those real estate professionals who subscribe to the REALTOR® organization’s strict Code of Ethics, and who are members of the National, State and Local REALTOR® organization. Visit DAAR online at www.dullesarea.com.

Okay, let’s live in the moment. There is much talk of a recession in the news. Most of us at least feel the pinch every time we go to the gas station to get gas, or go to the grocery store and pay $5.00 for a gallon of milk, $2.50 for a loaf of bread. Then at some point the discussion goes to the “economy”, and ultimately real estate. The national media can be informative but...Anyway; I’m not going to go there. “Is it the right time to buy?” “Am I going to lose money?” The government is seriously revamping its FHA program through various Lenders and Banks, along with new dollar limits. Consult one that you trust, or I can recommend you a few. What’s happening locally is what needs to be told, and you decide for yourself.

By now most of you realize that it is and always has been in the best interest of the National Association of Realtors and its members to be a bit more optimistic than the media, to say the least. After all, most of us are just trying to make an honest living. The current mortgage and financial crisis this country is facing has been, is and will continue to affect us at least for a bit longer (recall the Big Picture). Again, a house is more than just an [nest egg] investment.

When I’m not watching my son, helping a client, networking, singing in our church choir, etc., my computer is on. As a matter of fact it is usually on, and I go to the MLS system...a lot. Yes, everyday. So I decided to give you a glimpse of an early spring day in Loudoun County, VA [“declining”] real estate market right here in the middle of April 2008, according to the Metropolitan Regional Information System (MRIS):

<!--[if !supportLists]-->1. <!--[endif]-->There are 3,091 Active properties currently listed for sale (not rent, though some might be both, in which case it’s here).

<!--[if !supportLists]-->A. <!--[endif]-->This does not include For Sale By Owner’s (FSBO’s), though some with Limited Service agreements with Agents are included.

<!--[if !supportLists]-->B. <!--[endif]-->This also doesn’t include many new homes, as new home developers aren’t obligated to include their entire inventory in the MRIS.

<!--[if !supportLists]-->2. <!--[endif]-->There are currently an additional 879 properties either under Contract, Contract with a Kick Out (pending a contingency), or Contract without a Kick out clause (pending contingency doesn’t void the contract).

<!--[if !supportLists]-->A. <!--[endif]-->The ever-popular Days on Market (DOMP) for these many properties under contract varies quite large...0-910 Days on Market, and everything in between..

<!--[if !supportLists]-->B. <!--[endif]-->The prices range from anywhere from $100,000 - $3,565,000.

3. 167 Homes have indeed SOLD in the last 17 days.

So what’s my point? Buyers are still buying and sellers are still selling. Yes, in many cases the banks are making the final decision (foreclosure, short sale), but certainly not all. It just means that more people are coming to the “meeting of the minds,” regarding price, terms and condition. Not to sound like a broken record, but there are some really fantastic homes out there. It seems that many are being picked up.

Stephen Adams is a Realtor with Keller Williams Realty in Leesburg, VA