Tanya Spotts Loudoun County Real Estate, Blogger

I simply love my job!! I love people, love how they differ, and love trying to understand what is inside their heads.

I took a great webinar which Long & Foster promoted to its agents. Here I found a great graph which indicated the 11 stages of two different types of buyers- The Internet Buyer and the Traditional Buyer.

The Internet Buyer:

• In the beginning stage, the buyer is greatly satisfied with his findings/ His Dreaming Stage

• As the time-line continues, his satisfaction drops to a low point

as he begins to scale his choices down to what is more realistic Wants vs. Needs

• After Viewingthe properties he has selected, the buyer feels more satisfied, but any decision making, especially one of this magnitude, take s time.

THE PROBLEM- Time is of the essence in real estate. For example:

Recently, I had a call from a buyer who was relocating here from Texas. they saw online one of the homes I had listed and wanted to know more about the area. Unfortuantely, the site they visited had the home listed as active; it had actually sold.

I completely understand how hard it is for anyone trying to relocate to the Washington D.C. area. Our real estate market has dropped, but not like some parts of the country. From recently attending a Dulles Area Association Economic Summit, several economists revealed this information:

"Greater Washington Economic Conference

Dr. Steve Fuller, Economist at George Mason University says "The payroll job loss as likely to go deeper and longer - perhaps 18-20 months. There are currently 13 million unemployed, and many of these people will stay unemployed because the new jobs will have different qualifications than those for the people getting laid off. He predicted oil will still be below $80 per bbl in 2011. Normally there are 5 million house sales per year (it got up to 7 million a few years ago), and we are currently around 4.5 million now. Consumer spending will be a negative 1% in 2009 vs the normal 2.5% growth per year.

The Washington economy will have a 1.5% growth in GDP vs the negative nationally due the presence of the federal government. Where Detroit has autos; LA, films; Houston, oil; a third of our economy is directly tied into the feds, and that component is rising. Federal spending here will total some $135 billion in 2009. Federal procurement dollars have tripled over the last 10 years with much of the corresponding job growth going to Northern VA.

Job growth has averaged 46,500 per year since 1991 with some recent years as follows:

• 2003 - 56,000
• 2004 - 71,000
• 2005 - 63,000
• 2007 - 29,000
• 2008 - With one more month's numbers to come in, he thinks it will net out at 25,000
  

Washington is double the national job growth rate in professional and business services which have an annual salary of $75,000. Due to the region's wealth, our retail trade job growth is 3 times the national average, and other services (such as daycare, etc.) twice. Steve sees the spread between our unemployment rate and the national rate (now 3%) perhaps growing to a 4% spread.

He thinks our economy will begin to rebound the second half of 2009 with a total net new job growth of 230,300 for the region over the next 5 years as follows:

• 2009 - 23,700
• 2010 - 36,500
• 2011 - 42,400
• 2012 - 48,100
• 2013 - 54,000
  

Of these new jobs, Northern VA will have 125,900 and Suburban MD, 66,000." "

As you can see, The outlook according to the major economist who study the Washington and Northern Virginia economy and housing market is not all that bad. We are very fortunate to live where we do.

The Economic Summit which was held by Dulles Area Association of Realtors in December had me feeling pretty good about our job growth and the local economy. Speaker, John McClain from George Mason University showed the many interesting statistics through his graphs and forecasts.

Fortunately, my past career with United Airlines gave me the opportunity to get to know parts of our country and the types of communities typical of the area. So when this client began to ask me questions, I knew their frame of reference, I could almost predict the places and communities they will most likely gravatate to in our area.


My Texas client was easy. I had many conversations with both he and his wife prior to their arrival. They also were extremely detailed and capable of making decisions quickly since they had done this many many times before. The use of a spreadsheet was a terrific idea to help with their plan of action.

I committed myself to the entire weekend after Thanksgiving even though my college daughter was only home for a few days. I knew they would find "their perfect spot", but never dreamed it would take a mere 5 hours after their arrival.



Just think of all the great locations we have...Arlington, Alexandria, so close to D.C. and such an easy commute. And then you have Reston, a fantastic, internationally known planned community which incorporates easy living among corporate offices, open space common grounds, walking paths, and plenty of lakes and parks. And to the west, Ashburn, Leesburg, andPurcellville. You can't forget about the historic areas surrounding Waterford, Midddleburg, and Aldie. I can't forget South Riding and Stone Ridge, smaller than Reston, they have the conveniences of being planned communities, but with a small town feel. Where should I begin?

Experience is the worst teacher; it gives the test before presenting the lesson."
--Vernon Law

Thankfully, all of us had the experience needed for this situation.

Anyway, their openness, their experience as a buyer, and their decision making skills worked!

Take a look at the graph and see if you can figure out where you are in the process.

What are those things sticking up in the back yard?

I thought it might be good to let you know that Loudoun County Board of Supervisors voted the other week on alternative septic systems. I am trying to find out more information and therefore will not provide you with the details; however I do think it is important for those of you looking to buy property in Loudoun to make sure to investigate these systems. Do your due diligence and have a study period to determine if a conventional system will work or not.

Now, you have nothing to be concerned over if you are on a public septic system. However, if you are considering moving to an area in the country or in a subdivision which does not hook up to a public system, you should first check with the county.

You are probably asking why are alternative systems needed. The most common problem is that soil is unsuitable for conventional systems.

• shallow water tables
• shallow depth to rock
• soils with low permeability
• high clay content

So then, why all the fuss if alternative systems can remedy the situation. there are several reasons for concern: First, these systems are not passive.

• they rely on power, electronics, and mechanical equipment
• they are very sophisticated and are more sesitive to amount of water, biological materials received, they can be affected by chemicals- paint, cleaners, etc.
• they can be effected by weather conditions
• they need to be maintained and serviced

A great place to begin is Loudoun County's website and the Health Department. Here are some important telephone numbers, as well.

Alternative Systems

Service Desk- 703 777 0234

Environmental Health Director- 703 771 5135

Wastewater Engineering and Policy Development- 703 737 8931

Inspection of Systems- 703 771 5802

The proposed ordinance to restrict the use of NEW non-conventional septic systems on homes, businesses, and churches for five years is a concern to all of us. Please visit www.savemyloudounhome.org. This ban will impact homeowners and be another source of frustration to our local economy and market conditions.

I hate winter.... I hate sitting in front of the TV wrapped up in my blanket, I hate getting out of the shower and trying to put lotion on my goose pimply body, and most of all I hate the heating bills. We have 3 beautiful gas fireplaces, but my husband will not let me use them.... to much fuel is burned, especially when gas prices are so volatile. But what I did learn yesterday was that energy audits are the best way to determine how you can lower your utility bills and make your home feel much warmer. The best news is that in 2009 you will have a tax savings on energy improvements you make on your home.

"On October 3, 2008, President Bush signed into law the "Emergency Economic Stabilization Act of 2008." This bill extended tax credits for energy efficient home improvements (windows, doors, roofs, insulation, HVAC, and non-solar water heaters). Tax credits for these residential products, which had expired at the end of 2007, will now be available for improvements made during 2009. However, improvements made during 2008 are not eligible for a tax credit."

My first step is that I am getting an energy audit done on my home. You can do some of these test yourself if you have five minutes and your last 12 moths of utility bills. Use the Energy Star Home Energy Yardstick. I have decided to hire a Professional Home Energy Auditor. I will be happy to give you some recommendations, if fact, I plan to post another article on my results. The first test a good auditor does is the Blower Door Test to determine the extent of the leaks in a home's envelope. they then use infrared cameras which reveal hard-to-detect areas of the air infiltration and missing insulation.

The great news is if you live in Loudoun County, the county is giving away two free audits, the bad news is that you will most likely be amazed at the findings and be totally impressed with your results if you choose to have the problems corrected. A good auditor will provide the stats to show your savings. Some utility companies are giving away energy audits. WHY?? Because they realize it is far cheaper to have homes energy efficient than to build more power plants. Unfortunately, Dominion Power is planning on building new plants and has no intention of offering to help home owners become more energy efficient.

Go Green and put more Green in your pockets. As a Green Real Estate Certified Leader, I will be more than happy to refer you to the professionals you need or discuss what you should be looking for when buying or selling a home. I have more information on my website; please feel free to contact me.

By the way, some builders are now boasting that they are building Energy Star Homes or offer Energy Star products that go beyond appliances. Make sure to ask and make this a priority if you decide to buy. You will be way ahead of the ball game. Watch and see if the wave of the future is Energy Star Homes.


Energy Star government site indicates these to be the most common problems:

• High Energy Bills High utility bills in summer and winter can often be traced to air leaks in your home's envelope, inefficient windows or heating and cooling equipment, or poorly sealed and insulated ducts. I know of one individual who had a heating bill last winter of $3000. There was absolutely no insulation between the exterior siding and his interior wall. He is now suing the builder

• Mold, Mildew or Musty Odors.

• Damp Basement

• Cold Floors in Winter

• Drafty Rooms

• Dust

Sellers today must be prepared to deal with appraisals which can be lower than the negotiated purchase price. In fact, I am hearing that FHA is requiring two appraisals be done on jumbo FHA LOANS . While everyone is sitting on pins and needles, it is important we agents discuss the problems of appraisal contingencies to both buyers and sellers before we even begin negotiating.

One agent I know found out the hard way. She represented the seller. They were so elated to have received an offer for the full list price. Nervously they awaited the appraisal to come in. Alas, it did and it appraised for the contract price. Unfortunately, this was an FHA loan and a second appraisal was required.

Appraisers can factor a declining market into their appraisal.

Our Virginia contract has language addressing the purchase price and appraised price. If this happens, a seller can lower the sales price, the buyer can bring funds to the table to make up the difference, or the buyer and seller can split the difference in whichever way feel is equitable, or the contract can be void.

In the long run, it is far better to have done the research and have an asking price which is in line with market values. Because many homes are located in declining markets, it is difficult to keep up with valuations. Each week,

I touch base with my sellers, calling & sending the most recent solds, just to keep them in tune with what is happening. I meet to re-evaluate the listing and make changes to the price, if need be. If your agent is not on top and doing his homework, you set yourself up for low ball offers and low appraisals.

You can't always believe the listing agent's list price; some agents just list for what the sellers want, just to get the listing. A few years a go, you might have gotten the deal done, but today is another story and another market. Appraisers would have made the deal work, but today they are just too scared and under new rules.


Negotiating after a low appraisal can be tricky.

Recently, during my listing presentation, a seller had an appraisal which was $40,000-$50,000 over what my comps indicated. That appraisal had been done several months before. I was not able to speak to the appraiser, and am not sure if he used homes in the immediate area and how he had come up with this value. My comps were around the suggested list price of other agents the seller had interviewed.

I knew this was going to be a difficult listing and knew that this home was a unique property, one that was not in a subdivision, not a cookie-cutter home, and one which had some of the most spectacular views in Loudoun County. What price can you put on views and how will this add to the price? That is why I always try to make sure that my sellers realize value is in the eyes of the buyer. The buyer determines the price, not the seller, not the agent. If the buyer has enough cash and he is willing to disregard an appraisal, the seller will not need to be so concerned. That is only apparant after you find the perfect buyer!!

Today's market conditions require you think clearly, do the homework on recent solds, and understand that appraised values need to always be considered. Unless you have a buyer who is willing to pay more than the property is worth, not too many of those people out there, the offer will need to be re-negotiated.

My client's objectives were to sell quickly, for the most money, and to do this before the winter season kicks in. He got his price and GOT IT SOLD within a week.

One more piece of the puzzle- the buyers had a desk-top appraisal done since they had a large down payment. The desk-top appraisal was extremely low. We therefore supplied a copy of the first appraisal my seller had done. Both the seller and buyer felt they made out fine and both are happy. Winning solutions to a win win situation.

Fall is for falling in love with the Virginia countryside. Most every year our family goes touring to see the changes of colors of the Blue Ridge, Short Hills and Sugar Loaf Mountains. I am so excited to hear about Loudoun's Farm color Tour, a self-guided tour. Saturday, October 18 and Sunday, October 19. You can drive down tree-lined country roads and tour the thirty-seven participating sites or visit the 14 wineries:

Bluemont Vinyards, Breau Vineyards,Corcoran Vineyards, Fabbioli Cellars, Hiddencroft Vineyards, Lost Creek Winery, Loudoun Valley Vineyards, North Gate Vineyards, , Notaviva Vineyards Sunset Hills Vineyards, Tarara Vineyards, Village Vineyards, Willowcroft Vineyards, Zephainiah Farm Vineyards

You will need your own personal driver for the way home!

Children will love visiting the horses, sheep, or alpacas in their natural environment and taking a hayride through the fields.

One such stop and new this year is the Philomont General Store. I have found some very special wines there, they carry about 150 from around the world, and a variety of other unique gifts. Gourmet foods and fine cigars are offered, too .

You will find a list of participants on the Farm Color Tour's website.

Have a happy escape to some of the most beautiful Loudoun countyside. let me know any spots I should include to this blog. I will be sure to include them next year.