No FHA

I showed a property for sale today. Regardless if my client liked it or not (Which they did). The listing agent said no FHA contracts. That sounds pretty silly. Especially considering that the FHA loan is the bulk of the loans going through these days. It was a bank owned property that was relatively well priced. The listing agent told me that the seller, the bank, didn't want to take the property off the market for an FHA loan/contract that wouldn't happen. He said the community wasn't FHA approved. He is right. It isn't. But there are always exceptions. I know good loan officers who have worked hard to get spot approvals on individual cases. In this community, The Gates of McLean, this seller believs that the high investor ratios of the community prohibit FHA loans from being approved. This is a challenge I've alluded to briefly in a past blog on 9/23/08 "Guilty Party or Victim of the System" (http://gatesofmclean.blogspot.com/2008/09/guilty-party-or-victim-of-system.html).
Now it is a very real problem.

Available in February = 3 Bedroom for Rent

Great Gates of McLean property coming up for rent. It will be available before you know it. This property has granite counters, upgraded flooring, crown molding, and many other nice improvements.

3 Bedroom 2 Bathroom home available for rent, you can move-in during February 2009. Around 1275 square feet of living area. There is also a deck/patio. This home is easy access as the parking spaces are right in front, and it is a first floor property. No lugging groceries up stairs or in the elevator.

For more information, or to schedule an appointment to see the property contact:

Jeff Wu
Weichert, Realtors
240-994-7938
703-938-6070 x198
Jeff@AgentKnowsHomes.com

What happened last month at the Gates

November, a month for Thanksgiving and real estate sales. Well one property at the Gates of McLean sold. It was a two bedroom two bathroom home in a mid-rise building. This property Sold for $350,000 and gave back a closing cost credit to the buyer of $5,000. The property was on the market a paltry 9 days.

The rental market fared slightly better than the Gates resale market in November. There were 3 properties that Rented in November. One was a 3 bedroom, renting for $1850 in 21 days on the market. Both of the other properties that rented were 2 bedroom 2 bathroom homes. They rented at an average of $1750 and in an average of 17 days on the market.

Overall not a ton of activity. But what activity that did occur happened at a very good pace.

(Data taken from MRIS)

Not Enough People

The Gates of McLean annual meeting was held yesterday evening. There was a good agenda. It was filled with useful information and effective presenters. I was very happy to be able to help coordinate the attendance of the first presenters, the Dulles Metro and the HOT lanes. Both groups talked about their projects, the updates, the benefits, the construction, and the timing. There were good explanations of what they're trying to do to improve our area transportation options. The metro stop will be literally a block or less from the Gates of McLean. It could end up being a real benefit to the community. The HOT lanes will also have specific on and off ramps into the Tysons area. Both projects are slated to finish around 2013.

Next on the agenda was the Fairfax County Police. They gave a good presentation on safety in the community. It was stressed that everyone can be a part of this effort. All residents should make it a habit of noticing things in the community throughout the day, at all times. The residents are the eyes and ears of the police. And no one should be afraid to contact the non-emergency police phone number if they feel something is not right.

Then there was an update on the community budget. The general assessment will be going up 3% in 2009. It was stated that this is very low, compared to the norm, and compared to other communities. A CMC official that was present, said that one of his communities was raising their assessment by 14%. The board also mentioned that they worked hard to keep it as low as possible. They also mentioned that all residents are welcome, throughout the year, to be involved in the financial meetings and help plan the future budgets. This is not new.

The next item on the agenda was supposed to be an election to fill the 2 open board spots. This did not happen. A quorum wasn't reached so voting couldn't be held. There was a 5% shortage. Hopefully this can be overcome next time.

At the end of the meeting there were prizes drawn for residents who did attend. Although the overall attendance was much greater than the normal board meetings, it can still stand for improvement (as the lack of quorum evidences).

The speakers from Dulles Metro, HOT lanes, and the Fairfax County Police all had handouts. I have copies of them for anyone who missed the meeting.

3rd Quarter Sales Summary

There were 9 of home sold in the Gates of McLean in the 3rd quarter of 2008.

3 One Bedrooms
- Average Sold Price = $226,000
- Models Sold = Danielle (2) + Shannon

6 Two Bedrooms
- Average Sold Price = $333,583
- Models Sold = Modified Christine, Preston, Dalton, Logan, + Chandler (2)

0 Three Bedrooms
- Note of interest = However, one of the two bedrooms was a modified three bedroom.

The 3rd Quarter had an increase in sales over the 5 total sold homes in the 2nd Quarter of 2008.

(data from MRIS)

September Sales/Rental Stats

The weather is getting colder, and so is the pace of real estate.

See the September statistics below:

1 home SOLD in September at The Gates of McLean

- One 1 Bedrooms
--> SOLD Price = $225,000
--> Model SOLD = Danielle

- Zero 2 Bedrooms

- ZERO 3 Bedrooms

RENTALS:

3 homes RENTED in the month of September

- One1 Bedroom
--> RENTED Price = $1300/month

- Two 2 Bedrooms
--> High RENTED Price = $1800/month
--> Low RENTED Price = $1700/month
--> Average RENTED Price = $1750/month

- Zero 3 Bedroom

CLICK HERE --> For more Stats and Downloadable Gates of McLean information

Information gathered from the MRIS. Information is deemed reliable, but not accurate.

Guilty Party or Victim of the System?

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.
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.....?

Asking Prices don't mean a lot

I've been in communication yesterday and today with a couple of possible sellers. They would like to sell, but are afraid of the market. Heck, who can blame them, it's tough when you need to sell in a down market.

However, in order to be me, and do my job the way I believe I should. I have to do something not everyone is doing. I have to do something a lot of people are afraid to do. It's very important though. I have to tell the truth. Whoa! That was a revelation. It may come as a shock, but some people and even some real estate agents aren't telling the truth. I'm not saying they're lying, but with the listing prices we're seeing people definately aren't getting an honest look at what homes are selling for, and will most likely sell for in the near future.

Ah, what do I know, it's probably those darn sellers being stubborn. They can do that sometimes. I have seen too many sellers that are setting asking prices based on their debt load. It must be the sellers. I can check the tax record, and see what they paid. When that figure isn't far from what they're asking, and yet the market price (most recent closed sales in the neighborhood) are averaging significantly lower, what else could the rationale be?

I know everyone wants to make as much money as possible, or for that matter lose as little as possible. We all have to realize, and I mean you, me, any other sellers or agents, basically everyone, that not a one of us controls the market. We can control what we do in relation to the market, such as pricing our homes to sell or not sell (when pricing unrealistically too high). We have entire control over what price we ask, and whether or not that will incite people to visit the property and make offers.

When working for a seller, as I do work for both buyers and sellers (but never at the same time - that' s a discussion on dual agency for another time), I always do my best to get my seller the most money possible within the realm of the terms that are most important to them.
That said, before and during the listing period, I will always tell the truth. Sometimes it's easy to swallow, sometimes it's not.

2 Bedroom 2 Bathroom, Chandler, for RENT

One of the most desired floor plans, the Chandler, is now available for rent. This top floor 2 bedroom 2 bathroom model has a good separation of space. There is a dining area off the kitchen. And the kitchen itself is well proportioned. Plus the home has lots of windows and good natural light. There's also a nice long deck for relaxing. And being the top floor, no one is above you! There are wood floors in the living areas, and carpet in the bedrooms. This great home comes with 2 assigned parking spaces.

Vital Information:

- 2 Bedrooms

- 2 Bathrooms

- 2 Assigned Parking spaces

- Top Floor!

- Washer + Dryer in Home

- Pets Allowed

- $1750/month

Contact me for more information:





Jeff Wu


Weichert, Realtors


703-938-6070 x198


Jeff@AgentKnowsHomes.com


Equal Housing Opportunity

2008 August Sales Stats

See the August statistics below:

1 home SOLD in August at The Gates of McLean

- ZERO 1 Bedrooms

- One 2 Bedroom
--> SOLD Price = $25,000
--> Subsidy = $0
--> Model SOLD = Dalton

- ZERO 3 Bedrooms

RENTALS: 7 homes RENTED in the month of August

- Two 1 Bedrooms
--> High RENTED Price = $1400/month
--> Low RENTED Price = $1300/month
--> Average RENTED Price = $1350/month

- Three 2 Bedrooms
--> High RENTED Price = $1800/month
--> Low RENTED Price = $1600/month
--> Average RENTED Price = $1725/month

- One 3 Bedroom
--> RENTED Price = $2000/month

CLICK HERE --> For more Stats and Downloadable Gates of McLean information

Information gathered from the MRIS. Information is deemed reliable, but not accurate.

Garden versus Mid-Rise

Garden versus Mid-Rise

Garden versus Mid-Rise. Some people care, some people don't care. Before I get into it I better make sure you know what the two terms mean in this context.

In the Gates of McLean there are 10 residential buildings (the clubhouse would be the 11th building of the community, but no one lives there). 3 of the 10 are what they term Garden style. The other 7 are referred to as Mid-Rise. All of the 10 buildings are 4 floor. All have a variety of floor plans. So what's the difference?

The Garden style are distinguished by their open air hallways. Someone can walk through the hallway on any of the 4 floors and feel the wind blowing. That's the main distinction. Some people like it and some people don't. I'd say it's great on nice days in the spring and fall, maybe even the summer too (because the hallway is at least shaded). I don't know if everyone would feel the same way though in the winter, or if there was a blowing rain.

I have already given light to the main distinction between the two building styles. However there are two other things I failed to mention in the previous paragraph. First is that the Mid-Rise buildings also have secure entrance. You need a key card or fob to gain entry to the main part of the building. So even though everyone, all 10 buildings benefit from the Gates of the Gates of McLean in terms of security, the Mid-Rise buildings have an added level of security with the secure entrance to the building. The second differentiation that I failed to mention is that the Mid-Rise buildings also have a level of garage parking underneath the building. Not all units have a garage parking space deeded to them, but there at least is a possibility of having one. Whereas the Garden style buildings have no garage parking whatsoever.

So where are the pluses and minuses, the benefits and the drawbacks, to having a home in a Garden style building or a Mid-Rise building? Some people talk about energy efficiency. In the Garden Buildings it is arguable that the utility bills will be higher because the home is exposed to the elements on more sides. The Mid-Rise homes are insulated by the heated and cooled, as needed depending what time of hear, hallways. These nice common area hallways are carpeted and painted. However, this cost differencial is offset by a minor increase in the condo dues. The Mid-Rise home owners have an increased monthly assessment every month because of these comfortable hallways. Well what about the elements and parking? Which style is better. It would be easy to say the Mid-Rise since they have the possibility of garage, and protection in the hallways. But then again, it seems that more of the Garden style homes have more parking spaces. So would it be better to have one garage parking space? or two outdoor assigned spots?

The last part of the equation that I haven't put much weight on, but matters a great deal to some, is the floor plans. Although there are more than 10 different floor plans in the community, they are split as to which style building you can find them in. For example, you can only find the Christine, the only 3 bedroom model, in the Garden style buildings. Considering the number of floor plans I could go on for a bit telling which is in which style building, but that is for another discussion.....

So basically, it's not easy to say Garden is better than Mid-Rise, or vice versa for that matter. It's a decision that each will have to make for his, or her, own.