This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703-244-6115 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: How do I start the downsizing process?
Answer: We all know that life is short. There will inevitably be a time when we get to a point at which we can no longer be responsible for our belongings. Whether it’s death, disease, or simply downsizing due to mobility, at some point we will all need to rely on others. Someday we will leave behind our belongings, and someone we love will need to deal with them.
It’s a much better idea to address these concerns sooner rather than later, to alleviate the burden on our family, friends, and future selves.
Below is a guide for those of us who may be planning to downsize, or who may be responsible for a loved one’s belongings at some point in the future.
Before it’s time
Whether you or your family members are thinking of downsizing in the next five months, or five years, there are a few things that you can do now to help make the process go more smoothly — whenever it will start.
First, have a conversation with your loved ones! This is a collaborative project that everyone should be involved in. If you are a parent, your children may want to be involved in dividing up items that are leaving the home. You may have friends that will cherish certain things of yours. This can be an emotional process, and it’s much easier to work through before downsizing is imminent, to minimize stress and to set expectations.
In my experience, it can often happen that parents hold onto certain items, like furniture or cutlery sets, to pass on to their children. In most of these cases though, they haven’t actually told their children that these items are intended for them, and the children don’t necessarily want them. So, ask them now and get rid of the things that they don’t really want on your own.
When it’s time
Here are some of our favorite experts, that you may want to enlist to help in the process:
- Estate Sales: Maybe there are collector’s items that are worth selling at auction. Maybe there are a lot of things that can be sold in an estate sale, or just taken to a warehouse and sold there. Four Sales is a wonderful, local company who can help with all of this.
- Junk Removal: For whatever is leftover and can’t be sold, 123Junk will haul it away. They are just as careful as movers and will even empty your junk drawer. It’s as easy as sticking tape on cabinets!
- Mover: For everything else, you’ll need a mover. Hildrup Movers will even pack up part of the home and come back a month or so later in case you want to leave furniture for staging during a home sale.
- Realtor: Even if you’re not planning on buying a new home, your realtor will connect you with their trusted contacts, as I have done here. Realtors can also help with referrals to senior living communities if that’s the direction you’re going.
Throughout
Celebrate the future! It’s exciting to move into a new stage of life, and it’s important to acknowledge that while often a little stressful, this can be an exciting time. I work with many clients going through this transition — choosing a more simplified lifestyle with less maintenance, and less clutter is always a good thing!
Ready to start your own downsizing journey? Join us on April 11 at our Downsizing & Planning for the Future event for expert tips from a Professional Organizer, an Estate Sale Owner, Local Moving Experts, a Junk Removal Expert and The Peele Group at McEnearney — Kim and Hope Peele & Nancy Smith!
This will be an informative session on how to get started and accomplish your goals, with time for Q&A.
When: April 11 from 5:30-7:30 p.m. with extra time for Q&A.
Where: James Duncan Library, 2701 Commonwealth Avenue. Space is LImited. RSVP required — [email protected].
Hope Peele is a licensed real estate agent with McEnearney Associates, Inc. in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many-faceted process of buying or selling a home. Contact Hope at 703-244-6115.
If you would like a question answered in our weekly column or to set up an appointment with one of our Associates, please email: [email protected] or call 703-549-9292.
McEnearney Associates Realtors®, 109 S. Pitt Street, Alexandria, VA 22314. www.McEnearney.com Equal Housing Opportunity. #WeAreAlexandria
This week’s Q&A column, sponsored and written by McEnearney Associates Realtors®, the leading real estate firm in Alexandria, is a bit of a departure from our usual format. To learn more about this article and relevant Alexandria market news, contact us at 703-549-9292. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: With interest rates fluctuating how can I confidently search for my next home?
Answer: There are myriad programs and creative financing options that can pave the way to owning a home if you know who to ask and prepare ahead.
As we prepare for the 2024 spring market, Realtors and their clients are having in-depth discussions about what they can afford and how to secure their financing. But many wannabe buyers are dissuaded from believing homeownership is in the cards because they don’t have a big down payment, need to sell an existing home first, or are retired, among other hurdles. But with guidance from a savvy lender, the doors to homeownership start to open up.
Brian Bonnet and Eric Boutcher of Atlantic Coast Mortgage recently held classes for McEnearney agents to review financing programs and products for buyers eager to purchase but who need a little extra help putting their financing together. They reviewed common buyer challenges and the solutions available through ACM’s lending programs and those offered by housing agencies like Virginia Housing, Maryland’s Community Development Agency, and DC’s Open Doors.
Scenario 1: First-time purchaser with little available cash
Agents shared that many buyers are waiting on the sidelines because of concerns of not having a 20% down payment. In reality, there are many lower down payment options, even for conventional loans.
For Fannie Mae and Freddie Mac, who provide guidelines for the vast majority of loans originated nationwide, the minimum down payment is only 3% for first-time homebuyers (which applies even if you’ve owned a home before but not in the last three years) and for higher-priced loans of $766,550-$1,149,825 the minimum down payment is only 5%. There are even lower down payment programs, such as those provided by VH, which are income-dependent programs with 0-3% down payments. VHDA provides both conventional first mortgages up to 97% and grants that can be used toward down payments.
The Virginia Housing Development Authority (VHDA) is a key resource for individuals seeking to achieve homeownership in Virginia. Recently, VHDA introduced groundbreaking changes aimed at expanding accessibility to their programs, notably eliminating the first-time homebuyer requirement which opens opportunities for a broader range of buyers. Additionally, VHDA offers a 2% grant program, providing financial assistance towards down payments and closing costs, easing the financial burden of purchasing a home. Another noteworthy initiative is the VHDA Plus program, which offers 100% financing, and some buyers may even qualify for an additional 1.5% in funds to be applied toward closing costs. Through the recent guideline changes, VHDA is enhancing affordability and making homeownership dreams more achievable for Virginians.
In one example Bonnet shared, a qualified buyer using the Virginia Housing (VH) Plus program could purchase a $300,000 condo with a first mortgage of $291,000 and a second mortgage of $13,500 for total financing of $304,500. That means the buyer can finance $4,500 of the total closing costs, leaving them with a cash requirement of roughly $8,200.
In another example, for a $500,000 townhouse with a first mortgage of $485,000 and a second mortgage of $22,500, the borrower’s cash needed is approximately $7,900. In both scenarios, buyers do need cash funds, but as seen in these examples, the amount required was less than $10,000, much lower than many buyers expect they’ll need.
Atlantic Coast Mortgage offers a grant program for eligible buyers to help with down payment and closing cost assistance. Boutcher explained that eligible first-time home buyers can receive up to a $12,500 grant and community partners — which includes firefighters, first responders, doctors, nurses, law enforcement, educators, and more — may be eligible for a grant of up to $15,000. This program has income limits based on household size but is eligible throughout the DMV and beyond.
Scenario 2: Home to sell and can’t compete with a Home Sale Contingency
In a competitive market, a home sale contingency is generally a non-starter for sellers who want “clean” contracts with few or zero contingencies, but agents know that potential seller-buyers want to avoid selling their existing home before they have their next home to move to. Stalemate, right?
Not always, says Bonnet. “I have active customers who thought they couldn’t purchase before first selling because they needed the cash equity from their existing home, and they cannot qualify for the new traditional loan without getting rid of the existing home loan,” he shared as he explained how they worked out a plan using a bridge loan.
There are two types of bridge loans that Atlantic Coast Mortgage offers: a cash-out bridge loan and a purchase bridge loan. In the first, owners can refinance their current home to allow for a line of credit that can be used for a down payment or closing costs on a new home and must be repaid within three months.
“We have qualified them for a bridge loan on their existing home without consideration of their debt service on the next home,” Bonnet explained. With that bridge loan, they convert equity to cash to be used as a down payment on the next $1.1M home.”
Bonnet continued, “Because they don’t qualify for a traditional loan on the next home while carrying the debt on the existing home, we have also qualified them for a bridge loan on the new home without consideration of the debt on the existing home. With this unique Atlantic Coast Mortgage underwriting guideline, the seller-buyers are now able to write a contract that is not contingent on the sale of their existing home, and, if they choose, they can waive financing and appraisal contingencies and be in the hunt as competitive prospective homebuyers.”
This week’s Q&A column is written by David Howell, Executive Vice President and Chief Information Officer, of McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article and relevant market news, contact David at 703-855-5089 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: How did the Alexandria real estate market start the new year?
Answer: This week we look at market activity for January 2024 compared with January 2023 for the City of Alexandria and South Alexandria (Fairfax County portions of Alexandria). The charts below show available inventory at the end of the month, contract activity by price range, contract activity by property type (condos, attached homes, and detached homes), and the average days on the market. We have often discussed the continuing pressures of low inventory on our local market, and January shows us how strong those pressures continue to be.
If you are interested in more information, every month on our website we profile the most important market indicators for Northern Virginia — contract activity, interest rates, inventory, affordability, and the direction of the market — in an easy to read and digest summary followed by supporting charts and data.
City of Alexandria
Fully Available Listings by Price Range
- The month-end inventory for the City of Alexandria decreased 41.4% for January 2024 compared to January 2023. The number of homes coming on the market decreased 6.0% — which was 10 fewer homes coming on the market.
- Inventory reflects contract activity and new listings from previous months as well as the current month.
New Contract Activity by Price Range
- Overall contract activity in the City of Alexandria decreased 12.8% for January 2024 compared to January 2023.
- Contract activity was higher for homes priced $750,000-$999,999.
This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703-244-6115 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: Why should I use a Realtor?
Answer: Whether you are buying or selling, this is absolutely a question that is on many people’s minds — even if they don’t want to actually ask a Realtor. Of course, it is possible to buy or sell a home without the assistance of an agent. However, in my experience, it is a better choice, financially and for less stress, to use a Realtor — regardless of which side of the transaction you are on.
Here are some of the many resources that a real estate agent has at their disposal that will benefit you.
The Multiple Listing System (MLS)
Not only does the MLS show currently active and coming soon listings, but there is an abundance of other information including recently sold properties, how long it took them to sell, whether the seller paid any closing costs, and even off-market sales that you may not be aware of. Your Realtor can do a detailed Market Analysis to help you make informed decisions, which is crucial information to have when making an offer to buy a property and for pricing a home to sell.
Knowledge of the Market
Realtors do real estate all day long, every day! They have a deep understanding of the local market trends, various neighborhoods, and even new construction opportunities. They know when the market is more weighted towards the seller or the buyer, and how to price a home or make an offer accordingly. Pricing and offer strategy strongly depend on the current market. A difference of just $5k could make a huge difference in the long run (i.e. overpricing a home for sale or lowballing an offer and losing the home that you really want).
Knowledge of People in the Market
Realtors oftentimes have a professional rapport with the other agent. Sometimes they have worked together before. They know what questions to ask and not to ask (or how to ask diplomatically), to make it much more likely that you will be successful in your real estate goals. In addition, Realtors have an extensive network of other important professionals that they know to provide quality services, such as lenders, inspectors, and lawyers, who are often needed during the buying or selling process. They have access to reputable contractors, and they can get things done quickly.
Negotiation Skills
Agents are skilled, trained negotiators and can help you get the most out of a deal, regardless of the side you are on. They know how to get buyers to submit their best offers on your home sale, often generating multiple offers well above the list price. They know how to get more information from a listing agent on their buyer’s behalf, making it more likely you get that home you are bidding on. We recently negotiated an extra parking spot for one of our buyers on a new construction condo deal and our buyer is still bragging that his Realtor got more extras than any other buyer in the building! Having a trained negotiator does pay off!
Contracts and Paperwork Expertise
There is a lot of both! Your Realtor not only has access to the paperwork but knows what to look for to protect your interests. Sometimes, an offer on your home sale might look great but may contain some stipulations or red flags that an untrained eye doesn’t know to look for. Realtors handle all of the paperwork involved, making sure everything is filled out correctly and on time. And they provide legal protection by ensuring your contracts and agreements meet local requirements. Your Realtor will guide you through the process from start to finish and make sure everything is handled correctly. Read More
This week’s Q&A column, sponsored and written by McEnearney Associates Realtors®, the leading real estate firm in Alexandria, is a bit of a departure from our usual format. To learn more about this article and relevant Alexandria market news, contact us at 703-549-9292. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: What smart tech are buyers looking for in their next home?
Answer: The 2024 spring housing market has already taken off, with declining interest rates bringing many homebuyers off the sidelines and into the purchasing game. Sellers are preparing their homes for eager buyers and are learning what features will attract the most offers at the highest price. And while fresh paint and gleaming floors will always be pleasing to see in a home, there’s one thing that savvy buyers are asking for more than anything else: convenient, integrated, and affordable Smart Tech throughout the home.
We polled our McEnearney colleagues to find out what the easiest and most popular features are that are mentioned by their clients to make life easier, energy efficient, and, in some cases, fun!
Tom Hallex, a key member of McEnearney’s Digital Resources team, has incorporated many of the most common and inexpensive gadgets in his own home, including a Nest doorbell and door lock which allows for remote access to view visitors to your property and access into your home; a myQ garage-door opener that allows for individualized PIN code access and visual access to confirm activity around the garage entry; smart-outlets like Enbrighten that work with a home’s wi-fi for remote on/off control and customizable adjustments with voice or app commands; and even a wi-fi linked microwave for under $200!
Realtor Sean McEnearney is also a fan of smart-USBs after working with a tech-savvy seller client. “I was selling a townhome for a client a few years ago and there was a lot of work that needed to be done before we put it on the market, especially in the kitchen and master bath,” Sean recounts. “He replaced a few outlets and had the electrician install outlets that included USB receptacles as well as the typical electric outlets. He had them installed in the master bedroom and bath as well. It was a small thing, but a thoughtful add-on that impressed me.”
Rookie Realtor Rachel O has been learning what’s on the Tech Must-Have list for buyers, including her own husband who wanted at minimum a smart thermostat and the aforementioned USB plugs incorporated into the outlets. But it’s understanding what younger buyers, who have grown up with accessibility at their fingertips, want in a home that keeps her alert to tech trends and what makes for a quick sale.
“I’ve seen a lot of new construction homes that have (common tech gadgets) included and my newlywed first-time homebuyers in their early 30s do seem to have an expectation and preference for these inclusions. I believe if an older home had them, they would likely be more inclined to purchase,” O shared. “The best thing I’ve seen thus far is a smart oven that allows you to preheat your oven from your cell phone so that you can start it on your way home from work and then immediately pop in your food to be cooked.”
Moving up the chain to affordable luxury, Top Producer Realtor Susan Tull O’Reilly cited a recent sale that had a built-in wine cooler with select zones for different types of wines, even in a small space: colder on the bottom and less chilled on top. A quick search shows that there are intricate builds for the expert sommelier but even vino neophytes can find tech-enabled options that offer climate-centric options in a small package, ranging from the $200 range to up and above $4,000.
In a sign of must-haves to come, Realtor Christine Robinson is seeing more and more homeowners investing in tech like electric vehicle (EV) chargers — popular in both sales and rentals – that range in price from $300-700. Search recent home listing descriptions and you’re likely to see this feature spotlighted as a selling point and some sellers are willing to add them for on-the-fence buyers. She’s seen clients who both want and loathe solar panels but the trend toward sustainable construction means solar technology will continue to be a factor in home improvements.
One of the tech features mentioned most often by our agents were home generators, both portable generators that sell for an affordable $300 and up, and standby generators which are professionally installed and cost between $5,000-$7,000. Later this month we’ll look at tech features in high-end homes that are most popular with luxury buyers. Be ready to be dazzled! In the meantime, if you would like a tech-savvy agent to assist you with insight into what appeals to buyers and sellers in this busy market, reach out to a McEnearney Associate to get the right home ecosystem for your needs.
If you would like a question answered in our weekly column or to set up an appointment with one of our Associates, please email: [email protected] or call 703-549-9292.
McEnearney Associates Realtors®, 109 S. Pitt Street, Alexandria, VA 22314. www.McEnearney.com Equal Housing Opportunity. #WeAreAlexandria
This week’s Q&A column is written by Rebecca McCullough of McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact Rebecca at 571-384-0941 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: What should I know about real estate appraisals?
Answer: An appraisal is an unbiased professional opinion of the value of a home. An appraisal is needed when a mortgage is involved in the buying, refinancing, or selling of a property. Other reasons you may get an appraisal is to determine value in the case of estate settlement, divorce, or insurance purposes.
It is important to understand the meaning of unbiased which is without prejudice and favoritism. In this case the appraiser has no financial interest personally in the property or transaction. It does not say that the unbiased professional opinion will not be subjective.
What is the process of an appraisal?
For the purposes of the article, we are going to assume the appraisal is being ordered as the result of a ratified contract where the buyer needs to obtain a mortgage to pay for the property
Upon ratification the contract is sent to the buyer’s lender. The lender then requests an appraisal through an independent Appraisal Management Company (AMC). Lenders and buyers cannot choose their own appraiser.
The contract will specify a timeframe to have the appraisal completed. The assigned appraiser will reach out to the listing agent for an appointment to see the property. The appointment usually takes less than one hour.
The appraiser will measure the square footage, take pictures, and attempt to determine the age of appliances, windows, roof, and other systems. They will want to know of any major improvements made in the home and when they were done. They will also take into consideration the surrounding area, schools, transportation infrastructure, and other amenities in the community.
After the physical review they will do the same market analysis that the real estate agent does to determine the market value of the home. They will look through the most recent sales to determine the homes which best compare to the subject house with respect to square footage, number of bedrooms and baths, lot size, age of home, finishes, and condition. Sometimes those are very difficult to find because the areas have been redeveloped over time. There may be brand new homes next to old or even historic homes.
The diversity of homes in our Alexandria communities can make finding good comps very difficult. When this happens, the appraiser often goes to neighborhoods further away. That could lead to the two homes being in different school districts which could impact the value of a home.
Once the appraiser has determined what they feel are the best comps they will make monetary adjustments to the various features of a home to bring the homes into alignment. For example, one has a screened porch the other does not. What value do you add or subtract for this feature? Now do that a few times with other features and it is subjective.
It’s not an exact science, but appraisals are necessary. Flash back to the 2008 housing crisis, when lenders were loaning people more money than the house was worth. We know we don’t want a repeat of that. It’s the appraiser’s job to protect the interests of the lender and the buyer.
Once the lender receives the completed appraisal one of three scenarios can happen:
- The appraisal value is higher than the sales price. Excellent, instant equity!
- The appraisal value equals the sales price. Again, excellent parties move forward.
- The appraisal value is lower than the sales price. Uh-oh.
Low appraisals are everyone’s worst scenario. Depending on the contract, and the type of financing the buyer is applying for, the next steps are different. Let’s lay them out.
Cash or conventional financing that is contingent on appraisal value:
- The buyer and the seller will negotiate. Easy option the seller agrees to lower the sales price to the appraisal. Transaction moves forward.
- The buyer and seller agree on a compromised price, the transaction moves forward. This may mean the buyer has to add money to his down payment to meet loan requirements to preserve rates and conditions. For example, if the amount now puts the buyer’s downpayment at less than 20% they will have to bring more money to closing to avoid paying mortgage insurance.
- The buyer and seller cannot agree to a price, and if the buyer is protected by an appraisal contingency, the buyer can void the contract and walk away with no penalty. If they put an earnest money deposit down, they will receive it back in full.
VA (Veterans) Loan
VA loans are guaranteed by U.S. Department of Veterans Affairs. Veterans can borrow up to 100% of the sales price with no limit. VA loan borrowers CANNOT waive the appraisal. Even if they do waive their right in the contract documents, it can’t be enforced. This is very complicated, yet simple too when submitting contracts. There’s a lot of misunderstanding regarding this issue in the industry.
With respect appraisals coming in over, at, and under the sale price, the scenarios are all the same as above. However, the veteran does not need a Finance Contingency Addendum to be protected. They are protected by statue.
Understanding this, you can appreciate that it can especially trying for veteran’s who want to take advantage of the great rates and terms VA Loans can provide and get a VA loan. However, because they cannot waive appraisal, or the right to void based on a low appraisal, sellers are sometimes hesitant to accept offers with VA loans. This is especially frustrating in multiple offer situations. But understanding each contract is critical, and not making blanket assumptions regarding the offer because it’s a VA loan is important.
Honestly, this is one of the key scenarios where a knowledgeable agent can make or break a deal for a seller and/or buyer. Understanding and navigating a successful contract with a VA Loan can be tricky.
We are expecting another seller’s market in the spring of 2024 with inventory still very limited. Buyers are tired of waiting on the sidelines and with the slight decrease in rates they are out looking for houses to buy. The contingencies and terms that a buyer includes in their offer are critical. Please make sure you are working with a knowledgeable agent if listing or buying a home this spring, and always!
Rebecca McCullough has built a successful real estate business in Alexandria and Northern Virginia by providing excellent service to her clients. If you would like more information on selling or buying in today’s complex market, contact Rebecca today at 571-384-0941 or visit her website RebeccaMcCullough.com.
If you would like a question answered in our weekly column or to set up an appointment with one of our Associates, please email: [email protected] or call 703-549-9292.
McEnearney Associates Realtors®, 109 S. Pitt Street, Alexandria, VA 22314. www.McEnearney.com Equal Housing Opportunity. #WeAreAlexandria
This week’s Q&A column is written by David Howell, Executive Vice President and Chief Information Officer, of McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article and relevant market news, contact David at 703-855-5089 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: How did the Alexandria real estate market for 2023 compare to 2022?
Answer: This week we look at contract activity for all of 2023 compared with 2022 for the City of Alexandria and South Alexandria (Fairfax County portions of Alexandria). The charts below show contract activity by month, price range, and by property type (condos, attached homes, and detached homes). We have often discussed the continuing pressures of low inventory on our local market. As interest rates are gradually coming down, there will be an increase in buyer activity. And the same will be true for sellers who will be more willing to give up their current low-rate mortgage. 2024 will see more activity than we had in 2023.
If you are interested in more information, every month on our website we profile the most important market indicators for Northern Virginia — contract activity, interest rates, inventory, affordability, and the direction of the market — in an easy to read and digest summary followed by supporting charts and data.
City Of Alexandria
New Contract Activity by Month
- The seasonal nature of the real estate market is evident as activity increases through the spring and decreases through the fall months in both 2022 and 2023.
- Activity in 2023 did not vary as much from spring to fall. And even improved in the last few months of the year compared to 2022.
New Contract Activity by Price Range
- Contract activity in the City of Alexandria decreased 17.3% for 2023 compared to 2022.
- Contract activity was slightly higher for the highest price category, but significantly lower for the lowest price categories.
This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703-244-6115 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: How long does it take to get a home on the market for sale?
Answer: There are many steps to selling a home. However, if you are somewhat prepared, an experienced Realtor can launch your listing as active in a matter of days. How prepared are you? I would suggest that you leave it to your expert Realtor to assess and advise on whether your home is truly show-ready. In addition to the condition of your home, there are also some important pre-marketing activities that should be done for the best and most lucrative outcome for you, as a seller, and it’s best not to speed through the process too quickly. In our business, we provide each seller with a customized timeline.
If you are interested in a personalized and realistic timeline for your own home, don’t hesitate to reach out for a no-obligation consultation and you are also invited to our first “Downsizing & Planning for the Future” event on January 20th at James Duncan Library. I’ll share more details below.
In this article, I’ll break down the key steps in getting ready for a sale, with an idea of how long each step may take.
- Preparation (2-8 Weeks):
Before listing your home, it’s super important to make sure that it’s ready for buyer viewings. An outside opinion is crucial, so that you don’t waste time and money painting less than ideal colors or doing things that aren’t necessary, Most importantly, you need to declutter, make necessary repairs, and enhance curb appeal. This stage depends on your current condition, and whether you do it yourself or use one of our trusted and often speedy contractors to accomplish the task list quickly. Homes in better shape may require even less than 2 weeks for preparation.
- Setting the Right Price (1-2 Weeks):
Getting the list price is a very important step, and involves your Realtor assessing the market, comparing recent sales within a close distance of your home, and considering your homes features and the ages of the systems, such as the roof, HVAC, windows and more. This process requires thorough research and consultation with real estate professionals. It’s also important to reassess the price, just before going active, in case there have been any new sales.
- Listing Your Home (1-2 Week):
Once your home is prepared and you have decided on the list price, launching your home as active can happen very quickly. Your Realtor will need to schedule a photo shoot for high-quality pictures, produce top-notch marketing materials, and write a compelling and informative description of your home. Your Realtor’s marketing plan should include a social media campaign, a great online presence and lots of exposure for your listing.
- Showings and Open Houses (Varies, ideally 7-14 days):
This stage begins the minute your home becomes active and will last as long as it takes for your home to get an acceptable offer. If your home price is right and the photos show well, you will likely start getting requests for showings within a day or two. Usually, your Realtor will hold an open house the first weekend, and then again fairly regularly throughout the listing period until you are under contract. Hosting open houses and making it easy for buyers to schedule visits are essential for showcasing your property.
- Receiving and Negotiating Offers (Varies, ideally quickly!):
The time frame for this stage will vary depending on how many other homes are currently on the market, whether your home is priced to attract buyers (too high is a deterrent) and whether the offers received will work for you, as the seller. This is where you ideally have more than one offer and can weigh out the best options for you — price, how quickly they can close, whether they will allow you to stay for a period of time after closing (if needed), and what types of contingencies the buyer wants to include in the contract. It’s essential to work closely with your Realtor to structure the best deal for you.
- Under Contract period and closing (3-6 Weeks typically):
After accepting an offer, the home goes under contract. During this period, various tasks, including inspections, appraisals, and paperwork will take place. The timeline for these processes can be done quickly, or can take longer, depending on the contract agreement and the complexity of the sale. Unless you have an agreement to occupy the property for a period of time after settlement, you will have to be completely moved out, usually by the day before closing. The actual closing usually takes place at the settlement company, where the seller and the buyer sign all the documents (often separately) and the settlement company processes the final sale and records it with the local courthouse.
As you can see, selling a home is a multi-step process with varying timelines at each stage, and some of these steps can happen concurrently. It can be accomplished in just a few weeks or could take several months. It’s important to stay organized and to work with an experienced real estate professional for the best results and easiest process.
Ready to start your own timeline! Join us on January 20 at our Downsizing & Planning For The Future event for expert tips from Professional Organizer Terry Barlow, Estate Sale Guru Daniel Sanders, local Moving Expert Ben Frakes, Junk Removal Expert Collin Wheeler, and The Peele Group at McEnearney Real Estate — Kim and Hope Peele & Nancy Smith!
This will be an informative session on how to get started and accomplish your goals, with time for Q&A.
When: Jan. 20 from 12-1:30 p.m. with extra time for Q&A.
Where: James Duncan Library, 2701 Commonwealth Avenue. Space is limited. RSVP required — on the library website (alexlibraryva.org/event/9926105) or email [email protected].
Hope Peele is a licensed real estate agent with McEnearney Associates, Inc. in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many-faceted process of buying or selling a home. Contact Hope at 703-244-6115.
If you would like a question answered in our weekly column or to set up an appointment with one of our Associates, please email: [email protected] or call 703-549-9292.
McEnearney Associates Realtors®, 109 S. Pitt Street, Alexandria, VA 22314. www.McEnearney.com Equal Housing Opportunity. #WeAreAlexandria
This week’s Q&A column, sponsored and written by McEnearney Associates Realtors®, the leading real estate firm in Alexandria, is a bit of a departure from our usual format. To learn more about this article and relevant Alexandria market news, contact us at 703-549-9292. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: How important is pricing strategy in the current market?
Answer: Precise pricing is more important than ever! Even in a white-hot “Seller’s Market,” owners must be careful when pricing for maximum buyer exposure.
It’s a market that can be enticing for sellers and exhausting for buyers: record-low inventory, high interest rates, and competition around every corner.
However according to David Howell, McEnearney’s Executive Vice President and Chief Information Officer, sellers still need to be smart and strategic in how they price their property. In fact, in reviewing McEnearney’s most recent statistical research, Howell observes that there are four kinds of sellers in this market — the Very Successful, the Eventually Successful, the Hopeful, and the Failures.
Let’s examine who has the numbers on their side.
The Very Successful Seller:
This is what every seller aims for but only about half of properties actually meet that goal. The “very successful” are those who sell at or above their original list, and those folks usually see a quick sale. For example, in October 2023 in Fairfax County and City of Fairfax, 55% of all homes sold fell into that “very successful “category, and those properties sold in an average of just 9.4 days and 2.5% above list.
The “worst of the best” in the metro area was Washington, D.C., where 40% of homes sold at or above list, and sold in an average of 17.3 days. That’s still pretty darn good.
The Eventually Successful Seller:
These homes sold, but below their original list price and with longer days on the market (DOM). In the City of Alexandria, about 48% of homes fell into this category in October, selling in an average of 30.7 days at 3.6% below the list price. In comparison, 52% of homes sold in six days and 1.6% above list.
The differences are significant — those “eventually successful” sellers took a month longer to sell (that’s another mortgage payment, insurance, and HOA or condo payment!) and sold for much less money. Those homes weren’t priced correctly at the outset, and the significant majority had to reduce their price before getting a contract.
The Hopefuls:
The third category of sellers are the “hopefuls.” Those are homes on the market that haven’t yet accepted an offer. In every jurisdiction we track, the average DOM for these “hopefuls” is at least twice as much as the average days on the market for homes that sold. This is where “testing the market” is at a seller’s peril. Buyers are scouring inventory for the right home and if a listing comes to market and isn’t attracting offers, holding out longer for “That One Perfect Buyer” is not going to solve that problem.
In fact, buyer mindset can affect even normally-priced homes that haven’t yet sold. If the average DOM is 7 days and your listing is at 14 DOM, some buyers may assume something is wrong with the property, even if there isn’t. This in turn brings lower offers — if any.
The Failures:
That brings us to the final category of sellers: the “failures.” We know that sounds harsh, but roughly one in every eight homes that go into the MLS expires or is withdrawn before it sells. This could be for any number of reasons — inflexible seller, significant property damage, distressed sale — but the end result is the same: no buyers were interested.
So, if most of the Washington metro area is in a seller’s market, why aren’t these homes selling? As shown, even with so many market advantages, 3 out of 4 sellers won’t sell their home right away. In most cases, this is because they simply aren’t priced in line with the reality of today’s market where many buyers have been slammed by higher mortgage interest rates.
What can a seller do to ensure they land in the “Highly Successful” camp? The first step is to work with a licensed Realtor® who will provide local market insight and guide your pricing strategy. The second is to prepare your home to attract the most qualified buyers: fix, remodel, and paint for the best first impression, and consider offering credits for buyers.
Finally, have a plan to make a pricing adjustment if the home hasn’t sold within 21 days, which appears to be the local “tipping point” when sales prices drop. In a recent study by the National Association of Realtors, a listing that is 30 DOM without an offer is likely 3-5% overpriced. Be ready to make a pricing decision that keeps you within a competitive time-and-pricing window that keeps buyers interested.
As we have noted before, there are still buyers actively engaged in the market, but they make their decisions based on value. And they don’t see value in an overpriced home. So, heed the warnings of three out of four kinds of sellers who learned the hard way: price matters and time kills.
If you would like a question answered in our weekly column or to set up an appointment with one of our Associates, please email: [email protected] or call 703-549-9292.
McEnearney Associates Realtors®, 109 S. Pitt Street, Alexandria, VA 22314. www.McEnearney.com Equal Housing Opportunity. #WeAreAlexandria
This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703-244-6115 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: What are the most important things I should know about caring for my home during the winter?
Answer: Great question! I frequently get reach outs from my buyers about caring for their new (or not so new) homes. After almost no snow last year, many local weather news sources are predicting a winter with lots of snow in the D.C. area. Veronica Johnson, chief meteorologist for 7News First Alert Weather has predicted “17 to 22 inches of snow for the D.C. Metro area this coming winter.”
As we are getting solidly into winter, but not below freezing yet, this is the time to make sure that you are doing some preventative maintenance. Here are a few of the most important things to do to get ready for the winter months.
Check the inside of your home for air leaks. Check all your windows for air leaks, and caulk where needed — both inside and outside. If you have any window air conditioners, this is the time to put them in storage or invest in an insulated cover. Not only will your home be warmer and cozier, but you will also have a more energy-efficient home with a more manageable heating bill.
Check the outside of your home for open entry points and potential water issues. While you are checking for air leaks, look around the exterior of your home, and cover any openings to guard against water intrusion, and also rodents that are looking for a warm hideaway. Make sure to pile fireplace wood away from your home, so that little critters don’t migrate towards the cozy inside of your home. Double check your gutters and downspouts so that rainwater and melting ice can run freely off of your roof and away from your home.
Winterize the pipes. It’s important to make sure that all your outside spigots are protected for the winter. First, turn off the water supply to outside faucets, then unhook hoses, turn on the outside spigots and drain them of all the water. Last, shut them off from the outside only, and cover them with a spigot cover. This can prevent your pipes from freezing and bursting. You should also make sure that any pipes in unheated areas are properly insulated. On particularly cold nights, you may even want to leave your inside faucets on a slow drip, so that the pipes don’t freeze. I grew up in an 1800s home and my parents still use this technique when the temperatures drop below 25 degrees.
Get a fireplace check-up. Speaking of being cozy, there’s nothing better than a lovely fire in the fireplace during the winter. This is a great time to have your fireplace inspected and cleaned, for both heat efficiency and for the safety of you and your family.
Have your furnace and hot water heater serviced. There’s nothing worse than having a furnace breakdown in the middle of winter, so it’s best to be proactive when it comes to your HVAC system. An easy way to extend the life of your furnace is to change the filter regularly. This keeps contaminants out of the system and keeps your system running smoothly. Have your local HVAC service company service the system in early winter and again in late spring, and get their advice on how often to change the filter for your particular furnace. Have the hot water heater checked while you’re at it, so that you don’t wake up to a cold home or shower.
Change the batteries in smoke and carbon monoxide detectors. These batteries should be changed once a year, so if you haven’t done it already, do it now. And if your detectors are more than 10 years old, change them out completely. There should be smoke detectors on every level of your home, including the basement.
Be ready for snow removal. Stock up now on ice melting products and grab a snow shovel or two if you don’t already have them. The worst time to be looking for these things is the day or two before a storm. Put your gloves and hat near the front door, too, while you’re at it. It’s best to be ready for snow and sleet.
It’s best to address these maintenance tasks ahead of time, so that you protect your home, keep your energy costs down, and don’t have major repairs during the coldest time of year. For lots more great information on taking care of a home, we frequently recommend a couple of home maintenance books to our new buyers. “Home Maintenance for Dummies” by James Carey is an oldie but a goodie. Another good book is “The First-Time Homeowners Survival Guide” by Sid Davis.
If you need advice, or recommendations on local contractors, don’t hesitate to reach out. Proactive maintenance not only protects your investment, but also contributes towards a stress-free winter and a cozy home. And if you need help finding your dream home, please get in touch!
Hope Peele is a licensed real estate agent with McEnearney Associates, Inc. in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many-faceted process of buying or selling a home. Contact Hope at 703-244-6115.
If you would like a question answered in our weekly column or to set up an appointment with one of our Associates, please email: [email protected] or call 703-549-9292.
McEnearney Associates Realtors®, 109 S. Pitt Street, Alexandria, VA 22314. www.McEnearney.com Equal Housing Opportunity. #WeAreAlexandria