Jeff Wu

The lending environment is tighter than ever right now. Well at least much, much, and super much tighter than recent years. In fact FHA loans have become back in style because they are pretty much the lowest down payment loans available now. Sure, don't get me wrong, there are always some unique programs out there that may or may not work for people. However I'm speaking in generalities right now. And right now loans are harder to get.

Well one of the market areas, or sub-markets, of the real estate market that is affected even more so by these changes is the condominium market (lovingly referred to as condos). FHA has an Approved condo list in every area. Many areas have few to even fewer approved communities on this list though. Why is that? I don't know. It may have something to do with the developer when the community was created/converted. Or it may have something to do with the FHA not being pro-active in getting communities involved. I have no idea, and don't claim to know why these lists are so bare. However, it doesn't change the fact that there are so few communities on these "approved" list.

The Fountains at McLean and the Gates of McLean is one of these communities missing from the list. Not being on the "approved" list means that it is harder, if at all possible to get that increasingly popular and increasingly necessary FHA loan through. This is now the loan of choice and necessity for first time buyers. And in our area a first time buyer buys a condo.

This is a Catch-22 that must be addressed. But by who, and how.....?

This Monday the Tysons Land Use Task Force will be meeting with the Fairfax County Board of Supervisors. There they will be revealing the results of lots of money (<$1,000,000) and lots of time (3+ years).
No one knows what the future holds for the area and it's growth, but this plan will most likely play a major role. Will they be able to create a blend of entertainment, shopping, work/office space, and other real estate that people enjoy frequenting? Will it be commuter friendly? Will it be walker friendly? What will the parking situation be? If you really want to know show up at the Board of Supervisors Meeting on Monday (9/22) at 10am or before.
My hope is that they don't try to make things too big too quick. We already have our traffic challenges now. Lets have everyone, land owners, developers, companies, residents, government, and the general public all work together to make this area something special!

For more on this coming meeting =
read this article
http://www.fairfaxtimes.com/news/2008/sep/19/tysons-take-two/
and check out the agenda for the meeting 9/22
http://www.fairfaxcounty.gov/government/board/bdagenda/9-22BoardPackage.pdf

Wow, that title sounds a lot more harsh than I meant to come off. So let me make a disclaimer, I care a lot about everybody else, and helping people. That's why I'm in this business. I really enjoy the impact of being a part of this "life event." To some people getting their home is like getting married. It's a huge, one time thing. Not everyone does either of those things just once, but everyone is an individual (bad joke).

What I'm referring to with the title is everyones opinion on the real estate market. WHO CARES!?! Not me! Because it doesn't matter. Don't get me wrong, it's important to know what's going on. It's important to know about Freddie and Fannie. It's important to know about my region, and my neighborhoods. It's important to know in general about interest rates. It's important to know sales statistics, and market trends. All those things are important.

But other peoples opinions on the real estate market = NOT IMPORTANT!

This newscaster says things are in the tank. This agent with a different company says "whoa is me." The head of my company puts out a company wide voicemail that says we've hit bottom. I heard someone say Greenspan, the former fed chairman, says we've hit bottom. Other people saying we're only half way through the "bad stuff."

Doesn't matter.

I am focused on helping my clients everyday. Whether that's a client buying right now, selling right now, or someone I put into a home who needs a handyman. I'm there to help those people. I make my living helping people in real estate. They are better off for it. And the more people I help, the better off I am for it.

So I have a good attitude everyday.

But what really matters is that people are buying and selling real estate everyday. Is the local, regional, national, or worldwide population trend going up or down? I don't think anybody is going to stop having babies anytime soon. And that's good, because babies are cute! But really, we need a place for all these people to live. That's what drives the market. People decide to move because of their life circumstances. They're tired of living with mom and dad. They're getting married. They're expecting a child. They're expecting another child. They're expecting another child. -> I can do this for a while, my wife's father is one of 8. They're emptynesters and need to downsize. Then they can't handle the home on their own. Whatever the circumstance. Life happens. Not that other four letter word, LIFE. So who cares about all the opinions. Focus on your family and all the people you care about, make sure they stay happy and in good situations. Don't worry about all the opinions.

I wish I had more cash. Right This Second.

I don't say that because I'm greedy. I don't say that because I'm focused on money. In fact I have a very different mindset. I believe in helping people. Whoever the famous person who said it is (many have said Zig Ziglar), but I relate very well to..."When you help enough other people get what they want, you will get what you want."

I see so many opportunities around me. Part of it probably has to do with all the change, and the fear that goes with it. Everyday brings change to our industry. Change to the market, or markets. Financial markets, real estate markets, commodities markets, etc. It's all inter-related. People are afraid. They're afraid of the unknown. This fear is a tremendous opportunity for those who are ready to act. To capitalize on what paralyzes many.

Buy Property! Buy it now! Buy it tomorrow! At the very least, have a plan to buy it.

The only reason I say I wish I had more cash, and "right this second," for that matter, is because I've got a lot of things on my list: Food, Mortgage(s), kids, charity, 401k, 529 - college savings plans, life insurance, reserves, budgeted expenses, IRAs, and more.

Well I guess it's just not my #1 priority right now,

but The Opportunities are out there.

During the past 30 days in the 22102 zip code, the primary Tysons Corner zip code, every single one of the SOLD properties (there were 26 [necessary disclaimer = all data is taken from MRIS, and deemed reliable, but not guaranteed]) settled for a net price below asking price. This is not a shock. However the average negative differential was just about -6% list price to sold price. And some of these had been on the market a while and dropped their price a few times already. So even that figure is misleading. The highest reported differential was -13.86%. The average days on market was 86 days for these 26 properties that did sell. There were another 24 properties that were either EXPIRED or WITHDRAWN from the market in those same 30 days.

Good news is I know there will always be opportunities. Now, tomorrow, and the next day. So when I'm ready to act, I will. But the rest of you, make sure you get ready to act sometime soon too!

We all know how important it is to work with professionals. Whatever industry you're in communication, honesty, and skills are going to be important. There are also some little things that can make a big difference. To me, one of these "little things," is when the loan officer shows up at settlement.

I like it when they show up!

I know it's not a make or break. And by then everything should be finished, rock solid, finito, etc.

It's a nice touch. It shows that they care. It shows that they're a professional. Most of all, it shows that they're accountable. I like it when they show up, and the ones I work with almost always show up. It's funny, this isn't one of the things I ask when we first start working together. I only work with great loan officers. And I make it a point to find out: who they are, what they know, how they operate, how they treat their clients before, during, and after the transaction, even how they treat their family, friends, and strangers for that matter. All that is important, but coincidentally, the ones I end up working with, they all tend to show up at settlement. And I think it's great!

Once or twice there has been some confusion with the loan documents. They are right there to explain it. Or even be the person to take action and get it corrected, if necessary. Settlement should be a formality. Something that's nice and smooth. But a true professional sees it through. Makes sure it gets done the way it's supposed to, the way it was promised, the right way.

I like it when they show up!