Laura Rubinchuk - The LJR Group - Your Northern Virginia and D.C. Realtor

Contract time! Whenever I have someone considering buying a place, I always offer to meet them for coffee to go over the process from start to finish, and the details necessary to the process of buying and/or selling real estate.

A very important part of the buying process right now is the appraisal. An appraisal is an independent 3rd party opinion of the market value of a property (regardless of the type of property – condo, townhouse, detached single family home, etc.) If you’re getting a loan, you’re getting an appraisal. Your lender will “hire” a licensed appraiser to do an analysis of value based on recent sales, active listings, type of property, condition, location, etc. This is your reassurance that the price you’re paying for a place is in line with current market values.

Now, if the appraisal comes in equal to or above your contract sales price – you’re good to go! (Remember, if you’re getting cash back from the seller for closing costs, the appraised value must be on the GROSS price of the contract.) If it comes in above the price you’ve agreed to pay – congrats! instant equity!

However, IF the appraisal comes back low, you really have 2/3 options:

1. Approach the seller, provide them a copy of the appraisal, and try to negotiate the contract price to match the value of the appraisal.

1a. If the seller is unwilling to come down in price, and you’re not able to fund the difference, you can void the contract.

2. If you still want to buy the place, even with the low appraisal, you have the option of coming up with the extra cash to fund the difference. Banks will only loan as high as the appraised value.

2a. If you’re unable to gather the funds to make up the difference and the seller is unwilling to come down in price, you can void the contract.

3. If both parties come to some acceptable terms that is a combination of the above – either the seller comes down a little and the buyer comes up with the difference – then you can also proceed.

3a. If this is not a feasible option, you can then void the contract.
Feel free to take me up on my coffee offer, anytime. We go over the process in detail, and I promise, it won’t be scary or overwhelming.

The owners of Liberty Tavern are at it again. Construction is currently going on in anticipation of the grand opening of Lyon Hall, a new restaurant coming to Clarendon in February 2010. The restaurant will be located on the ground floor of the commercial building of the Phoenix Condo at 3100 Washington Blvd, Arlington VA 22201 – located across the street from Mister Days, and just 1 block from the Clarendon Metro.

Lyon Hall will feature over 20 different beers on draft, and Eastern European cuisine, which will be overseen by the head chef at Liberty Tavern, Liam LaCivita. Their tag line is “casual neighborhood brasserie.”

The restaurant will be 3 levels, with private dining upstairs, an 18-seat bar, outdoor patio, and open kitchen in the basement.

In a recent conversation with one of the owners, Brian Normile, he mentioned their idea for the name came from being located between Lyon Park and Lyon Village.

Scheduled to be open for dinner from Tuesday – Saturday.

Time to bring out my statistician side again! Here’s the breakdown for Arlington County real estate sales in October 2009, for both North (22201,22203,22205,22207,22209,22213) and South Arlington (22202,22204,22206).

Total Arlington Sales: 221
North Arlington Sales: 140
South Arlington Sales: 81

Studio Condo

North Arlington
Average Sales Price: $243,248
Range: $191,090 – $262,000
Average Days on the Market: 16
Median Days on the Market: 6

1 Bedroom Condos

North Arlington South Arlington
Average Sales Price: $299,144 Average Sales Price: $260,081
Range: $169,000 – $437,000 Range: $123,500 – $337,638
Average Days on the Market: 33 Average DOM: 40
Median Days on the Market: 15 Median DOM: 14

2 Bedroom Condos

North Arlington South Arlington
Average Sales Price: $487,708 Average Sales Price: $325,294
Range: $208,000 – $730,000 Range: $136,000 – $670,000
Average Days on the Market: 44 Average DOM: 40
Median Days on the Market: 35 Median DOM: 10

Townhouse

North Arlington South Arlington
Average Sales Price: $702,524 Average Sales Price: $380,269
Range: $427,000 – $1,130,000 Range: $130,000 – $670,000
Average Days on the Market: 36 Average DOM: 29
Median Days on the Market: 15 Median DOM: 9

Detached – Single Family Homes

North Arlington South Arlington
Average Sales Price: $787,559 Average Sales Price: $472,311
Range: $350,000 – $1,866,107 Range: $175,000 – $900,000
Average Days on the Market: 66 Average DOM: 58
Median Days on the Market: 27 Median DOM: 33

As a whole, Arlington had 9 short sales and 14 foreclosures (bank owned properties) that sold in October of the 221 units. Also, 43 of the sales sold at or above list price – thats almost 20%.

Volume and the number of units sold are both up in 2009, compared to this time last year. Average sales price is down by about 7% and the days on the market is down about 30% (selling faster!).

The market in Arlington, VA 22201 is moving QUICKLY. Check out these stats:

Total Sales: 40
Sold in less than 30 days: 26 (65%)
Sold between 31 – 60 days: 4 (10%)
Sold between 61 – 90 days: 3 (7.5%)
Sold in over 91 days: 7 (17.5%)

Shows you the importance of pricing the property correctly. Research shows that a property has to be within 10% of the perceived market value, by buyers, for an offer to be made. If you price right correctly to begin with, you’re more likely to get more for the house, rather than chasing the market.

Some overall statistics for 22201:

1 Bedroom Condos 1 Bedroom with Den Condos

Average Sale Price: $324,708 Average Sale Price: $371,438
Average Days on the Market: 30 Average Days on the Market: 45
Median Days on the Market: 8 Median Days on the Market: 42
Range: $241,350 – $437,000 Range: $295,000 – $459,000

2 Bedroom Condos Townhouse

Average Sale Price: $516,248 Average Sale Price: $781,000
Average Days on the Market: 46 Average Days on the Market: 43
Median Days on the Market: 33 Median Days on the Market: 22
Range: $451,900 – $543,000 Range: $570,000 – $1,000,000

Single Family House

Average Sale Price: $801,086
Average Days on the Market: 82
Median Days on the Market: 11
Range: $499,000 – $1,440,500

Enacted on November 7, 2009 – the $8,000 tax credit has been extended and expanded, and has added an additional $6,500 tax-credit for “move-up buyers.” Below is a synopsis of the new regulations:

First-Time Buyers

• $8,000 Tax Credit
• Must not have owned a principal residence for any part of the past 3 years
• Income Restrictions:
  • Single: $125,000
  • Married: $225,000
  • For those who have incomes exceeding these, there will be a phase out or partial tax credit up to $20,000 above these limits
• Maximum Sales Price: $800,000
• Must have a ratified contract as of April 30, 2010, and close on or before June 30, 2010

Move-Up Buyers

• $6,500 Tax Credit
• Must have lived in the home sold or used it as primary residence consecutively for 5 of the previous 8 years
• Income Restrictions
  • Single: $125,000
  • Married: $225,000
  • For those who have incomes exceeding these, there will be a phase out or partial tax credit up to $20,000 above these limits
• Maximum Sales Price: $800,000
• Must have a ratified contract as of April 30, 2010, and close on or before June 30, 2010

I think, personally, this may cause a stir in some parts of the country, but I fear some “move-up buyers” may price themselves out of qualifying in the DC Metro area. I wish I had a crystal ball, but we’ll have to see what the market tells us to measure how much activity this causes.

The National Association of Realtors(R) has prepared this handy chart with the information above.