When I first saw the house I bought, I was not yet in the market.
I had great credit, but was a newbie Realtor® with a bunch of sales that had not settled yet. So in a few months, I would have a twenty percent down payment and closing costs pulled together. But when this house grabbed me by the ankles and yelled "Buy Me," I was not ready for prime time.
While I was previewing for a buyer, I stumbled across the place and returned to the office with stars in my eyes. When I told my manager and the listing agent how much I loved and wanted the house, they helped me come up with a plan to buy it.
It would be a "rent to buy" deal.
At the time, we were still in a buyers' market, and it was a time when it often took some creativity to get a house sold. Because our sellers were investors, they were willing to do whatever it took - within reason.
The market rental at the time was $1,000 a month. And we wanted to move in right away and settle within a six month time frame. So here's what we proposed:
So there were very strong incentives for us to buy the place. It gave us chance to get below market rent and Dream House if we did what we said we would do. If we didn't, the sellers would get so much of our money that they probably wouldn't be that upset - we made it worth their time.
In the end, we settled in less than six months and everybody was ecstatic with the deal.
In many cases, people who are in my position come in with a rental contract that includes an option to buy at the end of the lease for an price to be negotiated when the lease expires. For owners who really want to sell, that doesn't give any assurances that they will be able to seal the deal when the time comes. The renter is a tenant in the District of Columbia. If he doesn't want to buy, it will be extremely difficult to evict them.
My approach isn't likely to work for buyers in a hot sellers' market, because there will probably be other buyers who can just come in with a simple offer that give the sellers their money in thirty or so days.
And even in a buyers' market, this can be a risky way to go for a seller, even with a lot of protections built in.
There is nothing better than a real live buyer who can settle quickly, but there is nothing worse than having an empty house or apartment sitting there as a non-productive asset.
Oh, wait! You could get a deadbeat buyer/tenant who stops paying "rent" and won't move out! That would indeed be the worse case. But you run that any time you have a rental property.
Um. That's why God invented credit reports and background checks!
If you are planning a move to or from the Washington, DC area, I can help! I am licensed in the District of Columbia, Maryland and Virginia. You may call, email or text me at:
Housepat@mac.com
202-549-5167
SEARCH ALL LISTINGS IN THE DC METRO AREA
I followed this fellow all over the bird hosue at the National Zoo. I say "fellow" because of the amazing bright blue on his face. There was another bird flirting wih him who looked really plain Jane - no color in her feathers except for boring beige. But this one was worth stalking for a good shot.
This fellow lives in the National Zoo's bird house. And I can only wonder what he would look like with his feathers totally opened up.
If you visit the zoo, this is one building you might want to check out. The birds sort of have the run of the place, and there's a lot of interaction with their human visitors.
If you are planning a move to or from the Washington, DC area, I can help! I am licensed in the District of Columbia, Maryland and Virginia. You may call, email or text me at:
Housepat@mac.com
202-549-5167
A Great Way to Sabotage Your Short Sale Listing
Yesterday, I was showing houses in Silver Spring, and many of them were foreclosures or short sales. And while I saw many things done in the presentations of some of these homes that I would do differently, there was one listing that stood out.
Before showing the house, I called the listing agent. His instructions were to just go and knock on the front door. The people who lived there would let us in.
So I pulled up, parked the car and knocked on the door. A very puzzled gentleman opened it to us suggesting that we must be at the wrong address. This house, he said, was not for sale. I double checked my MRIS print out, and sure enough, it showed his address and a picture of this very house.
It turned out to be tenant occupied, and the short sale specialist (supposedly there to help the sellers avoid financial disaster) forgot to tell the long-term tenants that their home was for sale. They were very accommodating, however. They were nice enough to show us around, pointing out all of the deferred maintenance, crackling electrical outlets and green fuzz growing on the walls of the wet basement - all of the other things likely to send buyers screaming from the property.
It worked.
This is a part of the world where tenants have more than a few legal rights when their rental homes are being sold, as a short sale or otherwise. And their cooperation is crucial to making any deal work on a tenant occupied property.
And you know what? I think that agents like this are at least as responsible for the housing crisis and the big bad banks and politicians we like to point our fingers at.
Yikes!
Coming home from the annual Christmas Tree hunt, I looked up and saw a ribbon of bright pink across the darkening blue sky and yelled "Stop the car!"
Then I dug into my purse and pulled out my camera with a dead as a doornail battery. Oops!
I dug some more and pulled up my I-Phone 4. Low battery, but just enoughIt's a little fuzzy but oh well! It was really, really pretty.
Pat Kennedy, author of "The Irreverent Guide to Real Estate", has been selling homes in the Washington, DC area for almost 30 years. She's licensed in DC, Maryland & Virginia
Washington, DC is the seat of government for the United States, and most visitors see the White House, the Supreme Court and the Capitol. But in these days with heightened security, it's usually just the outsides of these buildings from a tour bus!
They may also see a lot of the monuments, those to Washington, Lincoln, and Jefferson.
And they often miss my Washington and that of the half-million people who make our nation's capital their homes.
Some of us work for the government, some for law firms that practice before various federal agencies, others are teachers, fire fighters and real estate agents!
Our neighborhoods are full of history! There are houses where presidents slept or died. Sometimes a tour of a newly listed home will include the rooms that were used to hide escaping slaves along the Underground Railroad.
Like visitors to Washington, the locals visit the fabulous museums and galleries. We also know where to find the work of talented local artists.
Visitors often enjoy productions at the National Theater and Kennedy Center. We also support local groups, including Wooley Mammoth, Arena Stage, The Studio Theater, and other theaters that have made Washington second only to New York as a provider of paying jobs to stage actors!
And the by-product of any serious unrest anywhere in the world is often a group of immigrants who come to open fabulous restaurants serving their local cuisine!
Many of the blogs I write are about Washington, and I try hard to bring my readers a sense of what it's like to live here. I've also posted photos and information about our neighborhoods, restaurants, the Zoo, and other things I hope you will find useful.
And, here is Washington, they throw a huge fireworks demonstration on the Mall at the drop of a hat - not just the 4th of July!
Whether your thing is a luxury condo overlooking the Potomac River, a house in horse country in Virginia or Maryland or something in-between, you'll be able to find the perfect place!
In Washington, DC and its close-in suburbs, we have gone from a white-hot real estate market to one that is balanced. In some of the suburbs that are further from the city, the market is a bit slower, and you can find some wonderful values.
It's a great time to buy - there are fewer bidding wars, and you don't have to offer sellers your first-born child to have your offer accepted. And, it's a good time to sell, because while the market has slowed, prices in most close-in neighborhoods have not substantially fallen.
People relocating to the nation's capital are often floored by housing prices - yes, I do carry smelling salts in my glove compartment! The prices are balanced out by great employment opportunities and by the fun factor of life in Washington.
You can search for homes and explore neighborhoods in the entire region by clicking on this link:
SEARCH ALL LISTINGS IN THE DC METRO AREA
And when the time comes to make your move, please contact me. I'd be honored to help.
A few years ago, I wrote the book on real estate, The Irreverent Guide to Real Estate.
And I give a copies to my clients so they'll know what to expect during the transactions.
I've tried to give good advice, making points with true stories that are often hilarious or occasionally pathetic. And I work to make the process fun - for both myself and my clients.
And I'm currently working on my Second Edition!
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