Video - 5 Things To Do To Get Mortgage Ready for Fall

Summer is ending and fall is right around the corner, the leaves are already starting to turn colors here in Alexandria VA. Now is the time of year where people start thinking about a 'new home for the holidays.' But where do you start?  It can often be overwhelming, especially when the average days on market is eight days, and there's less than two months of inventory of homes for sale.

In my latest episode of 'Facebook Live at 12:05', I'm joined by my lender partner Nathan Burch of Vellum Mortgage. Watch as I hit him with some rapid-fire questions, asking him all of the frequently asked questions that I get from buyers who are just starting their journey toward homeownership.

We narrowed it down, and he's giving us Five Things to do to Get Mortgage Ready for Fall 2024:

1. Know Your Credit - Why does the lender need to pull my credit? I want to buy a house, but I don't want my credit pulled.

2. Gather Your Documents - Why does the lender need to know that? They're asking for too much information.

3. Confirm your dates - When does my lease end? When do I have to give notice? When will my first mortgage payment be?

4. Get pre-approved - What's the difference between pre-approved and pre-qualified?

5. Take a Homebuyer Education class - How long is the class good for? Can I take it online?

Nathan dropped some great takeaways in this interview.  

Now, the talk of the town is interest rates coming down.  We've given you exactly what you need to get mortgage-ready for the fall.   Let's connect today to start your journey.

Four Key Changes To Know About Buying a Home in Alexandria VA

Starting on August 17th, the process of buying and selling a home nationwide, will undergo some notable changes. If you’re a homeowner or a buyer in Alexandria VA, it’s important to stay informed about how these adjustments will affect your real estate journey.

Background: What's the Deal with that Realtor Lawsuit that was on the news?

You may have heard of the Sitzer-Burnett case—a class-action lawsuit brought against the National Association of REALTORS® (NAR) by home sellers in Missouri. They argued that certain NAR practices inflated broker commissions artificially. As part of the settlement, which was preliminarily approved in March, NAR agreed to make changes that will impact the way real estate transactions occur, with the first phase rolling out on August 17th. While the final approval is scheduled for November, it's vital to understand what’s coming and how it may impact you here in Alexandria.

What Changes Can You Expect When Buying a Home in Alexandria, VA?

Virginia was already ahead of the curve, because written buyer agreements were instituted in 2012.  However, as a result of the lawsuit, if you're planning to buy a home, you'll need to sign a written buyer agreement with your real estate agent before touring homes, whether in person or virtually. This agreement is designed to clarify the services your agent will provide and how much they will charge. As of August 17th, this buyer agreement will need to include four key components:

1. Clear Disclosure of Compensation: Your agent must disclose exactly how much they will be paid or how that payment is determined.
2. Fixed Compensation: The amount your agent charges cannot be vague or open-ended. For example, it can no longer be tied to what the seller offers but must be a fixed dollar amount, percentage, or hourly rate.
3. No Additional Compensation: Your agent cannot accept more than the amount agreed upon in the buyer agreement, regardless of other potential offers from the seller.
4. Negotiability of Fees: You must be informed that broker fees are negotiable and not set by law. Agents can’t advertise “free” services unless they are actually working for no compensation.

These changes aim to bring greater transparency to the home-buying process, ensuring that you fully understand the costs and services associated with working with a real estate agent.

Before you Sign a Buyer Agreement in Alexandria VA, Ask These Questions

Before you sign any agreement, it's crucial to understand its terms thoroughly. Here are some important questions to ask your real estate agent:

• What services will you provide? Your agent should outline everything they’ll do for you, from finding homes that match your criteria to negotiating offers on your behalf.
• What are your fees? Transparency around agent compensation is key. Be sure you know exactly what you’ll be paying for their services.
• What is the length of this agreement? Ensure you’re clear on how long the agreement lasts.
• Is this agreement exclusive? Decide whether you’re ready to commit to working exclusively with one agent or if a non-exclusive agreement might better suit your needs.

Understanding these details can help you make informed decisions when navigating the real estate market in Alexandria, VA.

What Changes Can You Expect When Selling a Home in Alexandria, VA?

If you’re selling a home in Alexandria, VA, one of the biggest changes relate to how compensation is displayed. As part of the settlement, offers of compensation can no longer be listed on the MLS (Multiple Listing Service) or any pages linked directly to it.

While sellers can still offer compensation, it's no longer a given. This change raises questions for sellers—should you offer compensation to the buyer’s agent? Your real estate agent can help guide you through this decision. For example, in a super competitive market like Alexandria, VA, you may not want to offer concessions.  However, depending on the property type, for example a 1-bedroom condo, or a single family home with 1- bathroom, offering concessions might make your property more attractive to buyers.  Talk to your listing agent during the listing consultation to help you identify your buyer demographic and how to remove their pain points to make your home more desireable.

Will the Way You Compensate Your Buyer’s Agent in Alexandria, VA Change?

The way buyer agents are compensated may change depending on whether sellers continue to offer concessions. In the past, sellers often covered some of the buyer agent’s compensation to attract more buyers. However, with the upcoming changes, this may no longer be standard practice. As a buyer, you may need to explore other options, such as negotiating seller concessions or paying the agent directly.

It's essential to discuss these possibilities with your agent before signing any agreements so that you're well-prepared for these changes when buying a home.

Have More Questions? Let’s Connect!

These new regulations will take effect on August 17th, and while the full impact remains to be seen, it’s essential to stay informed. As a real estate professional in Alexandria, VA, I’m here to help guide you through these changes. Whether you're buying or selling, my goal is to provide clarity and ensure your experience is smooth and successful. If you have any questions about these new practices or any aspect of the real estate market in Alexandria, VA, don’t hesitate to reach out!

Beautiful Single-Family Home in Lorton's Lorfax Heights Coming Soon!

Are you in the market for a detached home in Lorton VA?  How about a detached home in Lorton VA on a half acre lot?  How about a detached home in Lorton VA with NO HOA?  If so, then our upcoming listing is definitely a must see!

This beautifully updated home offers an inviting front porch, rear sunroom extension, newer deck with TREX finishes, four spacious bedrooms, and three brand new bathrooms.  You'll enjoy the long driveway, two-car garage, plus extra parking pad that holds two cars.

This home is walking distance to all three zoned schools, which are Halley Elementary, South County Middle, and South County High School.  For the commuters, easy access to Fairfax County Parkway, 123/Ox Road, and I-95 for north and south points.

Want to schedule an appointment to see this home in person?

The owners are putting the final touches on this beautiful home to make it ready.  It will be 'Active' and live for showing appointments on May 17.

There is plenty of time to finalize your mortgage approval and drive through the Lorfax Heights neighborhood to check it out.  The listing address is 8718 Lorfax Drive.  Please call Tamara Inzunza, Listing agent at 703-623-8759, or fill out our contact form for questions.

Buying a new home is one of the most exciting experiences in life. And if you’re like most homebuyers, you’ll be planning your furniture placement and decor before the ink dries on your offer.

But before you run to the nearest home decor outlet, take a deep breath. First, you’ll need to delay any major purchases before you close on your new home. A large outlay or additional line of credit could lower your credit score and, thus, impact your mortgage terms.¹ Second, moving and closing costs can add up quickly, so it’s important to be strategic with your remaining budget.

But don’t worry! There are plenty of ways to save on home essentials, and we’ve rounded up some of our favorites to share with you. 

PRIORITIZE WHAT YOU REALLY NEED BEFORE YOU START SHOPPING

According to Home Advisor, the national average cost to furnish a new house is $16,000, but it can easily soar higher.²  That’s why we recommend starting with a thorough assessment of what you already have and what you actually need to start life in your new place. Here are some steps to help you prioritize your purchases and keep spending in check. 

• Make a list of everything you need. Going room by room could help you brainstorm—for example, you might list items ranging from a mattress to blackout curtains for your new primary bedroom.
• Inventory what you already have. Cross the big (dining table) to the small (kitchen knives) off your list as you go.
• Divide the remaining items into three groups: things you need right away (a mattress), items you’d like to have in the near future (a coffee table for your living room), and pieces that can wait (an area rug).
• Calculate your budget. Figure out how much money you’ll have available for immediate purchases after the sale has closed, and start researching the items on your priority list to understand how they’ll fit into your budget.
• Remember, don’t rush the process. Bringing older items to your new space doesn’t mean you need to keep them forever. Consider hanging onto pieces that can tide you over for a year or two until your bank account has recovered from the costs of a home purchase.  Resist the urge to break the bank just so that you can post a picture of new furniture on social media.  Likes and comments won't help you with the payments.  Sites like Pinterest can offer creative way to spruce up and breathe new life into older items.

Before you start shopping, make sure you know which appliances and fixtures are included with your home purchase. We can inform you of the standard contract terms when you’re making an initial offer and note any additional items that you would like to request.

TIME YOUR PURCHASES TO MAKE THE MOST OF SEASONAL SALES

Did you know that some home items predictably go on sale at certain times of the year? If you can wait to buy these pieces when prices are lower, you could save significantly. Here are some of the best times to buy household essentials:^3,4

• Bedding and linens: January
• TVs: Black Friday/Cyber Monday and late January (before the Super Bowl)
• Furniture: February and August, as well as Black Friday, Memorial Day, and Labor Day
• Large appliances: Labor Day through October
• Small kitchen appliances: May
• Mattresses: Holiday weekends, especially Memorial Day, Labor Day, and 4th of July
• Vacuum cleaners: April
• Tools: June
• Outdoor furniture: August through October

Generally speaking, holiday weekends (as well as Black Friday and Cyber Monday) tend to be great times to find deals. If the item you’re looking for is seasonal—like patio furniture or holiday decorations—waiting until the end of that season usually pays off.

FIND ALTERNATIVE SHOPPING SOURCES

Can’t wait for a sale? It’s time to think outside of the box (the big-box stores, that is). There are plenty of surprising places to find great furniture and houseware deals. 

• Check out overstock and liquidation stores. These stores purchase items other retailers haven’t sold and offer them at a steep discount. The inventory can be hit or miss, but you can often get a great deal if you find what you’re looking for.⁵
• Try private membership/warehouse stores. Retailers like Costco and Sam’s Club often have great deals on home goods. If you’re not already a member, ask family or friends if they are willing to take you to look around before you commit.
• Consider open-box items.  When buyers return items like furniture or electronics, retailers can’t always sell them as new, even if they haven’t truly been used. Look online for open-box deals from retailers like Wayfair and Amazon Warehouse or visit local retailers to see what they have in stock.
• Give scratch-and-dent appliances a chance. These appliances are brand new but sold at deep discounts because their external packaging was damaged. Typically, this means that flaws are purely cosmetic—but it’s always possible that the merchandise has suffered more serious damage. So, be sure to check out the appliances carefully and ask about included warranties.⁶
• Expand your window treatment search. Window treatments can be surprisingly expensive, but it’s often possible to save by buying off-the-shelf offerings in standard sizes. If you need a custom size or material, consider ordering online from a discount supplier and installing them yourself.
• Shop secondhand. In addition to thrift stores and garage sales, Facebook Marketplace, NextDoor, and Craigslist are all great places to find deals in your area. 

Are alternative shopping sources still a stretch for your budget? Check out local Freecycle or “Buy Nothing” groups, which are often hosted on Facebook. Participants offer big and small items they no longer need—everything from furniture to clothing hangers—for free to other members.^7,8 Also, you'd be surprised at who will come to your rescue when making an "ISO: " post.  That means "in search of".  Many times, friends and neighbors have things in storage that they're no longer using, and could use a little dusting off and voila, it's a perfect fit for your decor.

DON’T BE AFRAID TO NEGOTIATE FOR A BETTER DEAL

Many people don’t realize that prices for home goods, from furniture to appliances, are often negotiable. While asking for a discount can be intimidating, it’s common practice in many industries, although more so at independently-owned stores than chains. Here are a few tips:^9,10

• Comparison shop before you walk into a store. If you can find a lower price for the same item elsewhere, many retailers will match it.
• Ask the store associate or manager for the best price available. They may be able to offer additional discounts or coupons.
• If you can pay in cash, ask if you can get a discount for doing so. The seller may be happy to offer a small price reduction to avoid paying processor fees.
• Call ahead to ask about applicable discounts. Some retailers offer price reductions for active military, veterans, teachers, first responders, or senior citizens on certain days or times of the year.
• Point out scratches or dings to the sales associate. They may be willing to offer a discount to compensate for the imperfection.
• Ask about floor models. Many stores offer these pieces at a lower price, even if they’re in like-new condition. 

After you’ve negotiated a killer deal, don’t forget to ask for free or discounted delivery! Sometimes furniture and appliance stores will offer complimentary delivery or installation if you spend a certain amount or purchase multiple items.

MAKE THE MOST OF REWARD PROGRAMS AND COUPONS

Every penny counts when you’re on a budget—and spending a little extra time maximizing reward programs and discounts is usually worthwhile. 

• Sign up for a change of address kit with the United States Postal Service. You’ll need to do anyway to forward mail to your new address, and it comes packed with valuable coupons.11
• Make sure you never miss a sale.  Sign up for your favorite retailers’ email lists and follow them on social media for discounts and sale alerts.
• Take advantage of loyalty programs. If you’re making a big purchase or getting multiple items from one store, ask about free loyalty programs. Signing up often comes with an introductory coupon.
• Consider store credit cards (carefully). Store credit cards can offer significant discounts—but only charge items you can pay off right away to avoid interest, and never open new lines of credit until your home purchase is complete, since it can affect your credit score.
• Enroll in coupon and cashback programs. When you’re shopping online, programs like Rakuten and Honey can help you find coupon codes and give you cash back on purchases.

While you’re at it, why not set up a housewarming registry?12  You can share the link with family and friends if they ask what you need—and you can also use it to score discounts. Many stores offer a percentage off to help you buy unpurchased items on your registry. 

GET CREATIVE

If you want to avoid a cookie-cutter home aesthetic—and save a few bucks—try reimagining your existing furniture and how it could fit into your new space. Here are a few of our favorite strategies. 

• Repurpose what you have. Instead of buying a new item to fit a specific purpose, ask yourself if you can use what you have in a different way. For example, repurpose an old dresser as a television stand or use a mismatched dining chair in your home office.
• Upgrade existing items. Sometimes, a new coat of paint or varnish, or simply swapping out drawer pulls and handles, can lend a new lease on life to an old piece of furniture. You can also keep this strategy in mind if you see second-hand items that would be just right if they were a different color or had nicer fixtures.
• Reupholster instead of buying new. If you have a tired-looking sofa or chair that’s still comfortable and stable, think about getting it reupholstered in new fabric instead of replacing it.
• Get handy. Building furniture is certainly not for everyone, but with some basic tools and help from the internet, you may find that simple items like headboards are well within your grasp. You might also be able to repair pieces you already have and avoid shopping altogether. 

Do-it-yourself projects can be fun, but they aren’t for everyone. If you’d like some professional help, reach out for a list of our recommended service providers.

WE’RE HERE TO HELP

We know budgeting for a new home can be overwhelming, and we want to make the process easier for you. If you’re considering a home purchase, we can advise you on a realistic budget and help you review your options. We can also offer insights on other financial considerations and programs and incentives that can help make homeownership more attainable. Reach out for a free consultation. 

Mortgage interest rates have just clipped 8%, making affordability less affordable.  But what is there was a way to buy a home and get the below market rates of yesterday (or yesteryear)?

It's possible with an assumable loan.  With an assuamable loan, you're buying the home but you're also buying the current seller's loan and interst rate.  How exactly does this work and what's involved?  Watch my latest episode of Facebook Live at 12:05 where Marti Watson of Potomac Title Group Services walks us though how this works.

Despite high interest rates, the Alexandria VA real estate market is still a sellers market.  Buyers are facing competition and that can mean offering more than the asking price just to win, a double whammy of price and monthly mortgage payment.

In some cases, buying a home with an existing assumable loan, could mean the difference between hundreds, or thousands of dollars in your monthly mortgage payment.

If you have questions, let's connect and see what other strategies will help you buy a home in today's market.

Whew!  Mortgage interest rates, inflation, the supply of homes at record lows, and it's still a seller's market.  There's no doubt that there's a lot going on right now in the economy and in the real estate market.  It can be overwhelming, confusing, and down right frustrating.  And when you're frustrated, a lot of times, you can become paralyzed.

It's totally understandable to be overwhelmed right now.  The good thing is, we've prepared this 2023 Fall Home Selling Guide to break it all down, show your the facts (not the fear), and the graphics to help it to all make sense.

Here are some of the headlines in this quarter's guide:

• How Equity is a Game Changer for those Looking to Sell
• Today's Housing Inventory is a Sweet Spot for Sellers
• Your Needs Matter More than Today's Interest Rates

Download your free copy today.  You're already here, so there's no registration.  I want you to have the right information, and the accurate information you need to help you make the best decision for you and your family when it comes to selling your home in today's market.  When you're ready, let's connect and put the right plan together to help you get to where you need to be on time.

Beautiful Tayloe Ridge Home Just Sold

This luxurious Tayloe Ridge home has just sold.  Only two years young, this home included modern finishes, an abundantly spacious floorplan, and lots of storage, just what today's buyers are looking for!  With over 2800 square feet, this home had a spacious main level that's perfect for receiving and entertaining guests and a comfortable eat-in kitchen with oversized island and top-of-the-line appliances. The upper level offered a full laundry room (not closet), wide hallway, and larger than standard sized secondary bedrooms, and a primary bedroom with luxurious bath.  The lower level had 9' ceilings, a true 4th bedroom with full-sized window and closet, full bath, and additional storage.

Located between the Cardinal Drive Corridor and Dale Boulevard, this is home near Fannie Fitzgerald Elementary School is great for commuters who need to quickly get to I-95 for a north- or south-bound commute.

What makes me different as a top listing agent?  This seller called me after being frustrated with the previous listing agent.  Even though we're in a seller's market, the previous agent did not have a defined marketing plan or a communication plan to capture as many buyers as possible or to keep the seller informed on market conditions and showing feedback.

We received not only one offer, but three!  The seller had an assumable loan, which we incorporated into our marketing strategy, and one of the offers that we received was from a buyer who wanted to assume the loan (which had a 2.25% interest rate).

Are you considering selling your Woodbridge VA home?  If so, I'd love to interview with you to see if I can help you sell your home on your terms.  Let's connect so we can put together the right strategy for you.

What Barbara Corcoran Says About Mortgage Rates and Home Prices

'Shark Tank' star Barbara Corcoran recently appeared on Good Morning America to chime in on mortgage rages and prices.  Here's what she had to say:

Corcoran explains,

"The housing market is surprisingly strong, everybody's surprised by it. Houses are not staying on the market, they all sell, one third of them sell for over ask price, and there are just not enough houses to go around. So, as a result of that, the housing market is as strong as ever and it's so frustrating for buyers."

For those asking about waiting until the interest rates come down, Corcoran predicts,

"Every buyer on the sideline is going to jump into the market...and houses are going to go up in price all over again."

Does the Alexandria VA real estate market back up Corcoan's assessment?  Let's take a look.  

Regarding housing not staying on the market long, here's how long it's taking homes to sell:

When you look at the interactive chart, you'll see that it's like slicing through a piece of bread.  Clearly December 2022 and January of this year, buyers had time to look at home and think about what they were buying, but notice the dive that started in February.  Homes went from a median of 34 days on the market, to 12.  And February was the last month (the second month, first quarter) where we had double-digit days on the market.

Are homes in Alexandria VA selling for over asking price:

Can you spot the window of opportunity that buyers had?  Yep, right around the end of the year 2022.  In November 2022, Alexandria homes sold at 98.4% of original list price, in December 97.8%, and at the very start of 2023 for 97.5%  After January, sellers were getting exactly what they were asking, or more.

And finally, what about the statement, "there's just not enough houses to go around.";

For this, I wanted to go back 10 years so that you can really grasp and follow the decline in inventory.  Remember, in order to have a bubble, it must be preceded by a flood of listings.  When you look at the number of active listings in Alexandria VA, you'll see that we're not even close to the number of active listings that we saw in 2013-2018.  So, we would need double the number of houses for sale, and we still wouldn't be close to the levels of inventory that we saw in 2008 when the crash happened.

What are your thoughts on Barbara Corcoran's comments and the Alexandria VA real estate market?  Comment below.

Real Estate Review |
What Are the Experts Saying About the Spring 2023 Housing Market?

The housing market’s been going through a lot of change lately, and there’s been uncertainty surrounding what will happen this spring. You may be wondering if more homes will go on the market, what’s next with home prices and mortgage rates, or what the best advice is for someone in your position right now.

Take a look at what the industry experts are saying right now about the spring housing market and what it means for you:

Selma Hepp, Chief Economist, CoreLogic:

“We see more competition among buyers . . . Housing supply also tends to grow during the spring months. And this is also the time of year when relatively more migration happens, as people graduate and move elsewhere looking for jobs.”

Greg McBride, Chief Financial Analyst, Bankrate:

“I don’t expect big moves in prices in the span of a month, but like the flower buds of spring, the housing market is showing signs of improvement. A pick up in activity with inventory still low does bode well for home prices.”

Rick Sharga, Founder and CEO, CJ Patrick Company:

“If you can find a home you love and can afford at today’s prices, don’t wait. Home prices in most of the country are unlikely to crash, and mortgage rates will only come down very gradually if they decline at all this year.” 

Jeff Tucker, Senior Economist, Zillow:

“The market is still much friendlier this spring for buyers who can overcome affordability hurdles, but buyers are going to see more competition than they might expect because there are not many homes on the market to go around. New listings are increasing, which they almost always do this time of year, but not nearly as quickly as usual.”

Active Listings in Alexandria VA

Take a look at the inventory of homes in Alexandria VA over the past two years:

Use your mouse to hover over the interactive chart above.  As you can see, we're entering the spring market with an inventory of homes in March 2023 4.1% higher than March of last year.  But in looking at the overall trend, you can easily see how the inventory levels in Alexandria VA are nowhere near what they were in 2021.  This goes to Jeff Tucker's point where you can expect to see buyers competing, simply because there's not a lot of homes to choose from in the market.

Bottom Line

If you’re thinking about selling your house, this spring’s a great time to do so while inventory is still so low. And if you’re in a good position to buy, lean on your local real estate professional for the best advice. Whatever your plans, let’s connect to make sure you’re able to navigate the spring housing market with confidence.

Coming Soon | 1BR Reston Condo at The Savoy

Reston Town Center Condo Coming Soon

Thinking about renewing your lease? This condo may be an opportunity for you to own for less than rent.  Why not take advantage of low monthly condo fees with an abundance of community amenities, walking distance to metro, and a move-in home that has been freshly painted, plus a garage space that conveys.

Located steps away from the Reston Town Center, Inova Reston Hospital, and close to metro, this second floor condo will be listed at $310,000.  Who wouldn't want to be close to a wide variety of restaurants and shopping, also Dulles Toll Road, and Fairfax County Parkway.

Interested in More Information?

The address is 12000 Market Street, Unit 242, Reston VA.  To be notified when this home goes active on the market, give me a call at 703-623-8759 or fill out our Contact Form today.  

• More condos for sale in The Savoy at Reston Town Center
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• See if you're eligible for Down Payment Assistance