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This week’s Q&A column is sponsored and written by McEnearney Associates Realtors®, the leading real estate firm in Alexandria. 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 is the role of an appraiser in the homebuying process?

Answer: One of the most important players in a real estate transaction often flies under the radar: The Appraiser.

• How do you know that your home was worth what you paid for it?
• How did the bank determine if the loan was secured properly?
• How did the seller and their agent come up with the list price in the first place?

The work of one person — an appraiser — answers the above and represents the grease that keeps the wheels of real estate turning. An appraiser is an independent, impartial, and objective professional in the mortgage transaction who develops a report which is a credible, reliable, and supported opinion of value. The work that they do has a direct impact on how much buyers might pay for a home and whether a loan may be approved at all for the property.

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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 rent out part of my home as an Airbnb? 

Answer: Renting out part of your home on Airbnb or any of the other short-term rental websites is a great way to earn extra income, especially if you live in an area that is walkable, or close to a metro. If you own a home in Northern Virginia or D.C., and it’s close to public transportation, it’s very likely that your home will be popular with tourists.

Last February, I decided to rent out part of our home in Old Town on Airbnb and I’ve learned a lot over the past six months. Our team has also helped buyers, who are specifically looking to buy a home with a space that could easily be rented out. It’s ideal when there is a separate entrance and the space is partitioned off from your own personal living space. However, there are some hosts that have guests share part of their own living space.

For the purposes of this article, I will just speak to what I know, which is renting out an entirely separate private space in your home.

Here are my top tips to help you get started. 

1. Check Out the Local Regulations

Before listing your space, look up the local guidelines for short-term rentals. Most of the local jurisdictions do require that you apply for a permit. Some do have a grace period, but it’s best to set this up in advance, so that you don’t receive a violation notice or fine. 

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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 will industry changes impact the homebuying process?

Answer: If it’s been some time since you bought or sold a home, there are recent changes to the selling process you need to be aware of. These are part of nationwide changes from the National Association of Realtors® (NAR) and how homes are promoted in Multiple Listing Services (MLS) — regional databases across the country that compile information about homes for sale and sold, as well as rental properties that use an agent during the leasing process.

Updates are designed to give consumers a better understanding of how they can negotiate fees associated with buying or selling a home and will take effect on August 14.

It’s important to know that in our region Realtors® have been following these practices for decades, allowing for a clear and fair sales process that encourages both buyers and sellers to have their own representation in a sales transaction and negotiate their agent’s fee-for-service.

What has changed is that a broker’s fee is not only more clear to the buyer but can now be a potential negotiating item of the buyer-seller contract, rather than being listed in an MLS as a co-operating fee between brokerages.

Here are some things to be aware of:

Buyers

•  Your first step will be to sign a Buyer Agency agreement that will outline the ways your Realtor® will represent you in your search for a new home and how they will be paid for their professional services.
• Buyers can negotiate many terms in their offer to purchase, including cash concessions from the seller to help cover different costs associated with buying a home. This now includes negotiating for the seller to pay a buyer broker’s fee.
• The Department of Veterans Affairs (VA) announced a temporary policy allowing VA buyers to compensate their real estate agents directly.
• Not all sellers will consider financial concessions, so it’s important to set your home purchase budget to cover all costs associated with the sale, including your agent’s fee.
• Read more at NAR’s resource page for homebuyers.

Sellers

• Your first step will be to sign a Listing Agreement that will outline the ways your Realtor® will represent you in the sale of your home, including how they will be paid for their professional services.
• Your Realtor® will advise you on current market conditions and what will make your home attractive to the greatest number of potential buyers.
• Sellers can indicate if they will consider concessions to a buyer, but they are not obligated to do so. Sellers should evaluate offers to purchase their home based on all specific terms and conditions, which may include a request for cash concessions to cover a buyer’s costs, including their broker’s fee.
• Read more at NAR’s resource page for sellers.

A professional Realtor® is your best advocate and will work with you to develop the strategy that works best for your goals. Reach out to one of our agents to get started on your next move!

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 be thinking about when buying a home?

Answer: I have had the wonderful opportunity to buy and sell 12 personal properties in the past 30 years. I bought my first house on my own early in my career. Since then, my husband and I have bought 11 more, including 3 houses we flipped and one vacation property. Here are the key lessons I’ve learned as a buyer and a buyer’s agent.

 1. Establish your must-haves. Write down all the things you want in a property. Location, commute, schools, size, number of bedrooms and bathrooms. What kind of outside space are you looking for? Quiet with lots of privacy, or in a community with amenities? Once you’ve determined these, then prioritize your list. It’s highly unlikely you will get all, so it’s really important to know what can and cannot be sacrificed.

 2. Be patient. It can take a while to find the right house. Attend open houses, go on showings, use an agent, talk to your co-purchaser about things you like and don’t. If you are fortunate enough to have an experienced agent, they may have some good insights about the homes, and even see beyond what you might be thinking. They will likely have recommended contractors and can help fix some simple issues.

In this market, you may also lose out in a competition with multiple offers. This can be devastating, and it can happen repeatedly. But please have faith. Truly, there is always another house, and in my experience, it’s ultimately the one the buyer was meant to have.

 3. Be honest with yourself and others. Don’t try to make your partner, your mother, father, friend or agent happy. The worst thing anyone wants to hear after you moved in is, “I wish I had spoken up.” One common scenario is parents helping their children buy. It’s can be difficult to speak up to your parents if they are helping you financially. Having a Realtor can be really helpful in this situation. They can be a mediator who can diplomatically say the things that need to be said.

 4. Be realistic. This may be one of the hardest ones. If you have 5 kids, don’t pretend you can make the 3-bedroom house work, because you love how it looks! Truly imagine yourself living in the property. Does is work your needs? Imagine cooking in the kitchen, letting the dog out. Where can everyone work if needed? Can you entertain? Does it need too much updating? What’s the condition of the windows, roof and chimneys? Fresh paint and great staging can make you look past the bones — don’t let it.

 5. Be ready. Call a lender, find an agent. Both can save so much time and money. Ask friends for referrals. Go to open houses and find an agent who understands the area you want to buy in and with whom you feel you have good chemistry. Most agents have excellent lenders they can refer.

A lender can make or break a transaction. Big banks are typically open Monday through Friday, 9 a.m. to 5 p.m. During a real estate transaction, they need to be available almost 24/7, just like your agent. Things move fast, deals get competitive, timing can be everything.

 6. Be money wise. No one enjoys being “house poor.” I’ve experienced it all. It’s a lot more fun to enjoy your life without the undue pressure of a too-large mortgage. Be honest with yourself about your lifestyle and work out a realistic budget. Don’t count on a raise. Buy what you can afford now, and breathe easy if your circumstances improve.

 7. Have a vision! If the home is not aesthetically ideal for you, this is still an opportunity. If you can’t see it, find a friend or agent who can see beyond floral wallpaper. Many buyers don’t want to do the work, and you can find some great deals in less visually appealing homes.

Carpets, faucets, lighting, mirrors, paint can make a huge difference. Make the house of your dreams over time if you can’t find one you love. Already “improved”? Make sure the work is done well. Renovations can sometimes be very cosmetic. Do NOT forego a home inspection!

 8. Research the location. I don’t just mean the street address. What do the neighbors’ yards look like? Hang out for a while during rush hour, when school gets out, weekends. Talk to neighbors if you can. Is there an HOA? Review the documents! Want to park an RV in the driveway? Make sure you can. Have a passion for purple and want to paint the front door? Make sure you can. Is it under a flight path, near a train station? Is the area changing? Are there plans for community changes? Do your homework. Google, make calls, check crime rates, flood maps and permit records. Your perfect home may have other issues besides its structure.

 9. Trust your gut. I asked a recent client the best advice she got from someone before she bought. Her answer: “If it doesn’t feel right, you don’t love it, and can’t picture yourself living there every day, it’s not the right house.” Resist the urge to “make it work.” It likely never will. There will be a property out there that works better. It can be very expensive making the wrong decision. Kind of like thinking a spouse will change after you’re married! Be patient and find the right one.

 10. Finally, relax. After you’ve found your house, ratified the contract, gone to settlement, and moved in, sit back and enjoy your new home. It all doesn’t need to be perfect right away. Live in it before making big purchases. See how you end up using the spaces. Don’t rush paint colors. Take your time and settle in.

Buying a house is a big decision, whether it’s your first time or your tenth. I’ve learned many lessons personally and professionally, buying houses over 30 years. I’ve been a victim, a champion, ignorant and innocent, smart and savvy — and downright lucky.

I wish you much success in your home purchasing journey, and hopefully with good preparation, a good agent, and a little luck, you will find your dream home. Happy hunting!

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. You may submit your questions to McEnearney Associates via email for response in future columns.

Question: How was the real estate market in Alexandria for the first half of 2024?

Answer: This week we look at market activity for the first half of 2024 compared with first half of 2023 for the City of Alexandria and South Alexandria (Fairfax County portions of Alexandria).

The charts below show average available monthly inventory, new listing activity by price range, contract activity by price range, contract activity by property type (condos, attached homes, and detached homes), and the average days on the market. Higher interest rates and low inventory continue to be primary factors influencing our local market.

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

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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: When downsizing, who do I need on my team?

Answer: When you’ve lived in a home for years — decades even — there comes a time when many decide to pare things down. This is something that is always better to start on sooner, rather than later. The downsizing process can feel overwhelming, but The Peele Group likes to create a team of professionals who do this all the time and can take some of the burden off of you.

Here are some examples of who we recruit to help!

Organizer — After living in a home for years of holidays, vacations, and memories, there is bound to be a ton of things you’ve accumulated that you might not necessarily need in the next stage of your life. Perhaps you have a passion for artwork and it fills the walls of your current home. If your next home is smaller, you will need to choose which items to keep and which to pass along. A professional organizer can help you make decisions about what is important to you. They should never make you feel judged, and will work with you to establish goals as well as a pathway to get there!

Estate Sales — Many of my clients are collectors of some sort, or at the very least have a collection of beautiful things they have amassed over the years. An estate sale company will be able to assist in valuation and then go over various routes of resale, based on both the value and number of items.

Junk Removal — Once you’ve decided what to keep and what could be sold, sometimes it’s easiest to hire a company to come and haul away everything else. They should have all of the same equipment and methods as movers, keeping the home completely protected. Some companies will also go through what they gather and donate what they can. Many of my clients prefer ones that do, so that they know their things are going to a good home, plus the added benefit of avoiding the landfill as much as possible!

Mover — Sure, we all have friends and family who might offer to help us move. But in my experience, it is always worth it to hire insured, professional movers. They not only have the equipment but also the know-how on the best way to pack up your belongings efficiently and safely. There is also a recourse process if, in the worst case, anything should happen while your items are in transit. Some movers will even hold onto your things if you don’t know your final destination quite yet.

Stager — Whether you’ve decided to empty your entire home, or begin showings while you are still living there, a stager is very helpful in deciding how to give the best impression possible. Most people think of stagers as bringing in all of the furniture and creating an entirely new set-up. While this is one of the services they offer, many will also work with your existing living space. They can advise on which art pieces to show, and where, and how to best arrange the things already in your home.

Realtor — Getting this entire team together is one of the many services that we provide at The Peele Group. Engaging with your real estate agent early in the process, maybe even before you’ve fully decided on a timeline, can make everything go more smoothly. We frequently work with sellers who are planning on downsizing in the next five years or so and would like us to work with them to create a timeline that works for them.

For more information on downsizing, and to meet and hear top tips from the professionals listed above, RSVP to our Downsizing Seminar — July 13th at James Duncan Library from 2-3:30 p.m. at [email protected] or reach out for a private consultation.

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: What resources are available to help me become a homeowner?

Answer: Summer is a time for graduations, weddings, and dreams for the future. Officially June is National Homeownership Month, the time when Realtors® and housing advocates promote various pathways to homeownership, a goal for those who want to build generational wealth and create a place to call their own. It may now be July, but these goals don’t become any less important.

The truth is that buying a home in 2024 is challenging, and it is harder for some groups to take that first step to homeownership.

According to Realtor.com research, low-income earners are 22% more likely to be denied a loan, LGBTQ+ are 25% less likely to own a home compared to all Americans, one in four Hispanic individuals complete the home-buying process entirely in Spanish, seven in 10 veterans are unaware they qualify for a zero-down home loan, and the gap between Black versus white homeownership is worse today than in 1968 when the Fair Housing Act was passed.

The Census Bureau’s quarterly report for Q1 2024 showed the latest homeownership rate is at 65.6%, down 0.1 percentage points from Q4 2023 and the lowest rate in two years. On May 31, the Biden administration issued a Proclamation on National Homeownership Month 2024, calling upon “the people of this Nation to safeguard the American Dream by ensuring that everyone has access to an affordable home in a community of their choice.”

Put simply, the proclamation states, “Whether they rent or buy, Americans deserve a safe place to call home.”

Some of the proposed initiatives to make homeownership more accessible include:

• A tax credit of $5,000 per year for the next 2 years for any family earning under $200,000 — money they can put toward a mortgage when they buy their first home or trade up for more space.
• My plan would also provide first-generation homebuyers with $25,000 for a down payment.
• A pilot program run by the Federal Housing Administration (FHA) to make it more affordable to refinance a home by eliminating title insurance fees on certain federally backed mortgages, which would save buyers $1,500 at closing.
• The FHA is now considering positive rental history when making decisions about creditworthiness — ensuring that the people who could qualify for mortgage financing receive it.
• Advancement in fair housing practices, including by rooting out bias in the home appraisal process, which keeps too many Black and Brown families from enjoying the full financial returns of homeownership.

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