Ask McEnearney

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 is the difference between dual and designated agency?

Answer: I have been working at open houses before and occasionally a buyer will come in, hoping to work with me — assuming that if I write the offer they will get a leg up on the competition. 

What I always remind buyers is that my primary agency is to the seller. I cannot give them any information about the home, or other offers, that I wouldn’t give to another agent. More importantly, I can’t guide them in the way that I typically advise my buyers. It is completely up to them to decide the offer price. I can explain how the terms and contingencies work, but I can’t give them my true expertise in this situation.

Ultimately, this is one of the only times that a buyer can’t choose whichever agent they’d like to work with. The seller has already selected if they will allow dual agency. When signing a listing agreement with a realtor to sell their house, sellers have the option to allow dual and/or designated agents. 

Also, once a buyer enters an agency agreement with their realtor they will have an opportunity to choose if they want either type of representation. The difference between the two can be a little confusing though! 

Designated agency refers to agents who work under the same brokerage as the listing agent — in my case, McEnearney. 

Per the Virginia contract, “Designated representation occurs when a buyer and seller in one transaction are represented by different sales associate(s) affiliated with the same broker. Each of these sales associates, known as a designated representative, represents fully the interests of a different client in the same transaction. Designated representatives are not dual representatives if each represents only the buyer or only the seller in a specific real estate transaction. In the event of designated representatives, each representative will be bound by client confidentiality requirements, set forth in the CONFIDENTIAL INFORMATION paragraph. The broker remains a dual representative.”

Designated is the most common type of agency, as it widens the pool of agents who can submit offers and allows for all agents within a company to represent the other side in a transaction. They just can’t represent both sides, and it should not be a concern to either side if different agents work for the buyer and the seller. There should never be an ethical gray area in terms of giving priority to an agent who works in my brokerage. It best serves my seller to give everyone equal consideration when it comes to bringing buyers. 

Dual agency, on the other hand, refers to a realtor who is representing both buying and selling sides of a transaction. One of the most common times that this happens, is when a landlord is planning to sell and the tenants decide to buy the home. Since the tenants are living in the home, there is relatively little to negotiate between the two parties, so it’s less of a risk to each party. However, with most standard sales dual agency is not as easy. The dual agent now becomes the agent for both sides, and must maintain confidentiality on both sides. This means that neither side is truly represented to the fullest extent.

Per the Virginia contract, “Dual representation occurs when the same broker and the same sales associate represent both the buyer and seller in one transaction. In the event of dual representation, the broker will be bound by confidentiality requirements for each client, set forth in the CONFIDENTIAL INFORMATION paragraph.”

Choosing the same realtor as the seller when purchasing a house, and engaging in dual agency, can present significant risks for both sides, but mostly to buyers. It can create a conflict of interest, and makes it very difficult do the best job for both parties. Dual agency can compromise the buyer’s ability to negotiate the best deal and it certainly reduces the ability to get unbiased advice. 

I always recommend that you choose an experienced realtor to represent just your interests. This assures that you get the advocacy that you need in the complicated world of real estate and that you ultimately have a smoother and more advantageous home buying experience.

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 do I prevent mold problems?

Answer: Do you really know what’s lurking in the corners and crevices of your home? Last month we looked at the causes of the mold in living environments and some basic ways to identify mold and prevent it from spreading.

This week we spoke with Paul Ramsey, Principal and Environmental Specialist with RTS Environmental Services, who has conducted over 25,000 mold inspections throughout the D.C.-region and he offers his hard-won wisdom to educate consumers and help demystify the irritants hidden within our homes.

Ramsey focuses on “environmental hygiene” which he describes as “the big picture” of a property’s overall exposure to unhealthy variables. It’s not just about keeping a home clean and disinfected, it’s a “systems approach” to identifying and eradicating mold, mildew and other contaminants caused or exacerbated by moisture.

“Climate change is having an impact on our buildings,” Ramsey said, citing weather trends that are causing higher rainfall density (the amount of rain that falls during a specified period of time) and higher humidity.

Building envelopes — which includes the walls, windows, roof, and foundation, that form the primary thermal barrier between the interior and exterior environments — are being challenged in part by excessive rainfall and aging buildings ill-equipped to manage the incoming moisture.

Fighting mold, naturally, starts with preventing microbial growth in the first place as it only takes 60% relative humidity to grow a very common mold called Penicillium/Aspergillus. “Without moisture or substrates (the surface on which an organism lives), mold can’t grow,” Ramsey observed, so it’s important to know the causes of unwanted moisture and how to prevent it.

Here are the top areas Ramsey recommends immediate inspection and regular maintenance to ensure proper environmental hygiene and allow all residents to live under a healthy — and dry! — roof.

Outdoors — Start your environmental hygiene inspection with a walk around the property to check for areas of cracks or breaks in the building envelope, areas of pooling water, and other signs of water intrusion. It’s important to keep gutters and downspouts as clear and functional as possible, Ramsey advises. This means regular cleanouts to remove any clogs and ensure that water is funneled as far away from the building envelope as possible with properly placed downspouts, piping, waterproof membranes, and grading.

Crawlspaces — Continuing the outer inspection, Ramsey cites this area as the “#1 problem with air quality,” explaining that crawl spaces are often humid, passively vented, hard to access, and can allow air to enter and condensate on insulation or other surfaces. Because these areas are difficult to access, it’s recommended to use a professional who will have specific knowledge and tools for identifying mold and where it has taken hold.

Basements — Water seeks the lowest level so it’s not uncommon that basements can accumulate extra moisture, but that’s just one factor that makes basements a harbor for mold. As hot air rises and cooler air drops, moisture can develop and attach to surfaces and particulates. Additionally, basement laundry rooms produce warm, moist air and cotton dust that can condense and colonize mold and enter nearby HVAC systems, spreading contaminants throughout the home.

Attics — Beware! The upper echelon of a home can harbor some of the worst contaminants and Ramsey advises to ALWAYS wear a mask when inspecting the attic area. A main contributor to mold and moisture problems is the presence of flex ducting, first used in the 1980s to extend HVAC (heating, venting and air conditioning) systems into attic spaces. They look and can be manipulated like a Slinky toy but their flexible construction can make them prone to damage and deterioration.

Poorly sealed flex duct ventilation can lead to higher indoor humidity levels, resulting in mold or mildew buildup if left unchecked. Flex ducting isn’t usually replaced and cleaning is difficult, allowing dust and condensation to accumulate over time and spread throughout the HVAC system to other parts of the home.

Dehumidifiers — Ramsey calls this a “must-have appliance” and they can be as simple as a portable device for around $350 that can be moved around a home or as encompassing as a whole-home humidifier built into the HVAC system for $1,000-$3,000. Maintain a humidity level around 50% make sure that no matter which dehumidifier is used, any reservoir water collected is promptly removed manually or with a pump.

Monitoring these areas will go a long way to preventing water intrusion and the development of mold, but it’s also important to watch for residents’ signs of reactions to mold. “The biggest clue that you may have a mold issue is if multiple family members are affected at the same time,” Ramsey said.

Allergic reactions to molds are the most common health effects in people, including symptoms such as runny nose, sneezing, coughing, and wheezing. People without allergies but who are exposed to mold may experience symptoms, including eye irritation, sore throat, congestion, skin rash, and headaches.

As noted in the first part of our report, mold is a naturally occurring allergen and often moves through our environments without impact. But when mold enters living environments and is allowed to grow unchecked, it can affect the health of a home and those who dwell in it. It’s education and proper maintenance that Ramsey says removes the fear about mold and encourages the best environmental hygiene.

To learn more about preventing mold in your home, check out the EPA’s book A Brief Guide to Mold, Moisture, and Your Home. Our McEnearney Associates | Middleburg Real Estate | Atoka Properties Realtors® are trusted advisors who can connect clients with vendors like RTS Environmental Services who can address mold issues and ensure a property is dry, safe, and healthy for all.

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 are VA Loans?

Answer: Happy Memorial Day weekend! That sentiment has always struck me oddly. This is the weekend we bow our heads and remember those who gave their lives for service to their country. A solemn and proud weekend where we appreciate those we lost for their bravery that allows us to live as we do. For that I am truly grateful for their sacrifice.

So, with veterans on my mind, I thought it would be an appropriate time to dive into the world of VA Loans. The government backed mortgages that only active military personnel, veterans, and their family members are entitled to. 

There are special protective features of VA Loans that are meant to benefit people who have and currently provide military service to our country. They are:

• All VA loans are backed by The Department of Veterans Affairs (VA).
• No downpayment is required. 
• Typically, they can get a better rate than other mortgage programs.
• Less stringent credit requirements, higher allowances for debt-to-income ratios.
• Limited closing costs.
• No mortgage insurance.
• It’s a lifetime benefit that can be reused (up to the eligibility amount each time).
• There are assumable loans which can have additional value for a potential purchaser of a home if the veteran no longer needs the entitlement.
• The funding fee can potentially be included in the mortgage.
• The veteran retains the right to void a contract if the appraisal does not meet the sales price.
• The funding fee may not be charged for veterans with service-related disabilities.
• If the veteran has a 100% service-related disability, they do not pay property taxes in Virginia.

(more…)