Tanya Spotts Loudoun County Real Estate, Blogger

The number of homes sold in April was 2,904, a 5.75% increase from April 2008. Stats are from the Northern Virginia Association of Realtors. Average sales price was $331,600 in April, less than the average home price in April 2008 which was $407,500.

Our listings have decreased as I had mentioned in my other blog. It is very evident inventory is lacking especially in the lower price ranges. In April, the number of listings were 15,683 a decrease of about 33.2% than at the same time last year when the stats showed 22,471. Days on Market (DOM) was down, as well from 112 to 89 days.

Our prices have increased since March and April by 4.55%. and properties continue to show a rebounding since January with reductions in Marketing time. The conclusion is that the sky is not falling and prices are not going down, in fact, so many buyers are out there making offers and not getting properties. they are now offering contracts with escalation clauses. Many agents, especially those working with the REOs have up to 10 buyers competing for the same property.

Consider the odds of getting a ratified contract with multiple offers. Best and Final offers might just have you bidding against yourself. Make a strong offer from the start and understand that the market is rebounding. Hopefully, we will see more sellers begin to jump in and list their homes. Sellers, if you are ready to sell-jump in, you will be surprised. Just price your home well, sit back and take a look at the number of showings. You must also consider your location, the further west you go in the county, conditions are different. Purcellville and Ashburn differ greatly and so do the stats.

Consumer confidence seems to be heading up. Fall might just have us back in the doldrums, who knows? This is a crazy time. We still see plenty of short sales out there with properties needing work. These make it difficult for buyers whose home inspections have so many repairs. They can't get an FHA or VA loan without some of the repairs & need to walk away. They don't have the cash to replace carpet, paint, replace the HVAC, appliances, etc. making the first time buyer very discouraged.

The past few months, I have been telling my buyers, yes you might need to make an offer equal to the sales price or possible higher if we find ourselves in a multiple offer position. This sounds a little skeptical to most new buyers coming on the market. after all, until recently, the media and everyone else has been painting such a bleak picture of our home sale market.

Time and time again, we have witnessed that the market changes like the weather. It might be sunny in Florida, but snowing in Virginia. Well folks, it is sunny in Northern Virginia and prices have stabilized in SOME PRICE RANGES. By the time the media gets in tune with the picture, you most likely have lost several homes because your price was not high enough. Loudoun County homes are selling!!

Do you believe Chicken Little? Are prices still falling or is the end near??

Are you seeing a change in your area? We certainly are in Northern Virginia and in Loudoun County. Sellers are seeing offers in 0-3 days in some cases. My recent seller in Purcellville went under contract the day we went on the market. One of my buyers made an offer on a home in Leesburg the very day it went on the market.

Time is of the essence in most situations. Smart buyers, who have been looking and who have faced the loosing homes to other purchasers making higher offers, understand INVENTORY IS DOWN compared to a few months ago.

The sky isn't falling- prices are no longer heading down, but have stabilized. Buyers are tired of dealing with REOs and Short Sales and are now aware of the differences. They don't want to buy "as is" unless they cannot find a home in their price range. Investors are in the market bring cash which makes the FHA loans less appealing. Regular inventory or resales is down, and the buers who have been renting must make decisions on their lease agreements. They no longer wait for new construction. Many of these consumers are First-Time Home Buyers who want to take advantage of the tax incentives, especially since they will be able to use the $8000 now and will not need to wait until next years tax return.

Take for example, a a townhouse I listed in The Lakes at Red Rock in April.

My clients were smart and priced their home just a little below others in the area- not as low as the foreclosed or short sales like the one next door. Since they had one of the largest end-units, and one which was in fantastic condition, they had Realtors and clients asking to see the property immediately. We even had two agents ask to see their home at 8:00 and 9:00pm. Yes, I instructed my clients to accommodate them. With a little ho humming they left their home during American Idol to take a drive around the block so an agent could show the home.

Guess what, we received offers, one with an escalation clause. We also got a full price offer. Reality is, buyers are sick of the bidding wars with foreclosures, the wait, the frustration of short sales. They now are making good offers on well, priced properties.

My job as the market specialist is to provide my clients with the most updated information and knowledge of the market conditions. Unfortunately, it is a hard pill to swallow- they might have missed those bottom prices and will now need to pay a price more in line with the sales prices.

My listing in Purcellville want under contract the day it went in the MLS.

My last buyer made an offer on a great Little TH in Countryside. It had been renovated and showed beautifully. Priced at $199,900 this was a fair price, maybe a little high since the last one closed around $180,000 a few months ago. That one was an end-unit; therefore it should have a bit more value than an interior. I explained to my buyer that he will most likely be in a multiple offer position so he should consider making a fairly strong offer. I knew this property would not remain active for long.

You got it, by Monday, there were a total of three offers, ours was the lowest. I had called the listing agent who explained that the others were stronger, one did not ask for seller subsidy. Most likely this is the one that got ratified. If my client would have made an offer close to the asking price, and did not ask for closing cost assistance, he would be soon the proud owner of his first home. This seller took the advise of their Realtor and priced the property where the recent comps have sold. If my buyers would have taken my advise and made an offer that was more in line with the market prices or offer just a tad higher than the asking price, we would be heading toward settlement. My client would not be struggling to find another well priced property in a great location, and would not need to worry about his lease ending, or having missed the market.

None of us have a crystal ball. But what a seller and buyer need to understand is that we are Realtors, specialist, who watch the local market and can give the buyers and sellers the best advise possible. The consumer must choose to work with people they trust. You trust your doctors, your dentist, your tax consultant, your pet's vet. It is vital you search and find a Realtor who works in your best interest to meet your needs and you trust in them.

Please feel free to contact me for any information. I will be happy to give you the most up-to-date market conditions and comparable property analysis.

The majority of real estate agents do not sell Real Estate, especially the good ones! Hopefully, anyone who knows me knows that my philosophy is one which is ablsolutely founded in the Golden Rule, "do unto others as you would have them do unto you." I treat my clients, prospects, and other real estate agents with respect and dignity.

Selling with Soul is one way Jennifer Allen describes how good agents can thrive in any market. It is important to listen to sellers and buyers. You meet their needs, not your needs. You help sellers price their homes right and thoroughly explain the market here and now, not the one they would like to have. You help them through any difficult obstacle they might encounter..

I am never going to be the agent who simply puts a For Sale Sign on a property and waits for something to happen. Nor will I be a Tour-Guide/Taxi Driver for Buyers who are just out looking and not committed to buying. Nope, I am here for the long run. I am here for my clients not just for one sell or one purchase, but for all their real estate and home needs. I hope they call me to ask questions about home improvements, contractors, advise on decorating ideas, home sales, and other agents in the country. I will be happy to refer them to other experts or to other agents in areas I do not serve. I am here always and only a text or phone call away. That's the way I do business!

Don't forget Earth Day Loudoun on April 26 form 11:00-4:00pm. Stop by and see me. Your entire family will love this event. Clydes will be serving up some great food along with other vendors who will have fantastic activities for the kids. Come on out to the Broadlands in Ashburn and spend some time enjoying nature, family fun, and learning more about easy ways to help our environment.

I just committed to becoming more earth-friendly.. I know I am really not a tree-hugger, but I do feel like I have an obligation to do what I can to help conserve. I know it is good for our environment, good for the future of my children, and lastly good for my wallet.

The EPA has an easy way to pledge to do a little at a time. If we all commit to something, we will make the changes that are needed without really changing our lifestyles. It is a little like exercising. We know we need to do it, it is just hard to start the process. Start by Picking 5 from the list the EPA gives you.

Do more to protect the environment by choosing at least five actions (below) you'll commit to. Pick 5 also helps you identify more actions you can take in the future.

Mark Your Calendar! April 26th

Where? The 25th community in the nation to receive certification as a "Community Wildlife Habitat." The Broadlands in Ashburn, VA.

Rethink....Fresh Ideas

What a great place to have our first Earth Day. There will be plenty of activities and demonstrations. Live Music, Fun Stuff for the kids like...animal shows and great food to sample from Clydes.

Who will be there to Entertain you?

Leesburg Animal Park Petting Zoo, it's opening its doors on March 21st. Check out the coupon!

Live Raptor Display & Show

The National Aquarium

And ME!!

Stop by and see some of the samples I will have on display to help you become green at home. Learn how to save money and help reduce our ecological footprint one decision at a time, one day at a time.

Send me a quick email and I will register you for one of our great drawings.

For more information visit: Earth Day at Loudoun

Date of Event: Sunday, April 26, 2009

RAIN OR SHINE.

http://www.earthdayatloudoun.org/1.html

Bank addendums are somewhat un-nerving since the VA. contract is written to be as fair as possible to both the seller and buyer; it does not side with either. The bank addendum however, which the buyers must sign after they get a verbal "yes" from the seller, gives up many of the rights the buyer usually has.

1. Watch out for the home inspections. Example: Buyer has a conventional loan requiring an appraisal. Many of the REO properties have utilites off. The property needs utilities to be on for home inspection and for the appraisal to be completed.

Do you, as the buyer's agent ,call the winterization company ( the listing agent emailed me to do so if I wanted the utilities on) or is this the responsibilitity of the listing agent? Who is liable for any problems which could arise out of having the systems turned on to the property.

What if:

The buyer is planning to renovate anyway and volunteers to have systems turned on so he can get a true picture of the problems which might exist. My buyer wants to settle in less than a month and needs the inspections done NOW.

DON'T DO THIS!! don't touch this property, Even if anything is minor like having utilites on- ask yourself who would be liable?

Recently, I was involved in a very complicated issue having to do with a Bank-owned property-REO.

NO OIL in tanks= NO heat, no water No complete home inspection could take place. My buyers met with the home inspector and determined that these issues were not really that important since they were going to renovate anyway.

The agent was no help until a week after our home inspection deadline passed. he finally had or received permission to have the de-winterizing people in there and do the required things, ie replace the motor in the furnace, have oil delivered, & have authority given to the city to have water supplied to house. Meanwhile, our 3 addenda had not been acknowledged by the seller.

The big problem came with financing. They could not get the loan until the appraiser could complete his inspection and give a satisfactory appraisal. How does the bank addendum address this and are your clients protected legally if the delay is caused by the seller's lack of responding to have utilities on or will they need to close and be under penalty for a delay?

The catch 22 is that the bank never responded to any of our addenda requesting for extensions and functioning systems.

What does "AS IS" require from a seller to get this home sold? Since most buyers need loans to buy, how significant are the repairs of these issues? Will only cash buyers be able to buy this home?

I don't think the buyer can be that selective especially since he has one buyer, mine, and a ratified contract on his desk. Who knows what the banks are thinking, after all, they really are not in a position of wanting to own property. You'd think they would be a little pro-active and get the things done so closing can occur.

Love to hear from you and your experiences with REO ISSUES and bank addenda.