Art Real Estate Group Video Blog

As a homeowner, tax assessments are something you have to deal with on every year. Upon finding out that their property tax has increased, many people simply throw their assessment in the shredder and accept the increase without giving it a second thought.

Don’t do that! If you read your assessment carefully, you’ll see that you have a right to appeal it. If you’re concerned that your assessment might not be accurate, you can save hundreds—maybe even thousands—of dollars by appealing it. Talk to a real estate professional first to get a second opinion of whether the assessment is inaccurate. 

If you decide you want to appeal, you can’t just call the county and tell them they’re charging you too much. You have to make a strong case to have your assessment reevaluated, and there’s a process you must follow, which is another reason to call a real estate professional (such as myself) to help you. When you make your case, you and your Realtor can find some bad comps to lower the assessment. 

Also, remember that there is no direct correlation between your home’s tax assessment and its market price. 

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If you read your assessment carefully, you’ll see that you have a right to appeal it.

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In some instances, it’s good to have a high tax assessment. If you plan on selling soon, for example, you don’t need to worry about a high tax assessment—you’re leaving soon anyway. Some buyers look at tax assessments when home shopping and assume that it’s good to make an offer above the home’s tax value, so in that case, the higher your tax assessment, the better. 

I actually worked with a seller once whose home had such low tax assessment that we had to call the county and have them increase it while their home was on the market. This client already failed to sell their home once with a different agent because all the buyers were comparing the home’s tax value to its list price and assuming it was way overpriced. In reality, it was just an error on the part of the county. 

So before you accept a high tax assessment, call your real estate professional and see if you can save some money by appealing it. 

As always, if you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.

For this market update, I’ve compiled the data from the Northern Virginia, D.C., and Maryland real estate markets because all of the numbers are so similar. Here’s what you need to know. 

Let’s start by looking at what the real estate market is doing today. The median sold price in the D.C. Metro is up by 2.91%. Although there is a 17% appreciation rate right now in Arlington, it’s from a much smaller sample size.

The average days on market is down by 18.97%—from 58 days to 47 days. You might think 47 days is a long time, but this statistic takes into account luxury homes, which typically take much longer to sell. 

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Our inventory remains at an all-time low.

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For attached units such as condos and townhomes, their closed units are down 3.27%. The sales for detached units, or single-family homes, is up by 3.07%.

Our inventory remains at an all-time low, sales have remained steady, and homes are still appreciating at a steady pace. Affordability, however, has taken a bit of a toll on the market as well as an uncertain economic future.

Keep in mind that most recessions are typically good for real estate markets. With the exception of the last recession, which was caused by real estate, home prices have appreciated during recessions many times in the past.

If you have any questions for me about the market or about real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Our current market is booming with activity and inventory sits at an all-time low, which is leading many of my clients to wonder if there are still opportunities to invest in real estate despite the definite seller’s market we’re in. 

Admittedly, as someone who’s almost always investing in real estate, I can tell you that opportunities are harder to come by when the market favors sellers so strongly. Still, that doesn’t mean there are none whatsoever. With the right guidance and drive, you can find a property worth investing in, and today I’ll offer some tips for doing so. 

Your priority when venturing into the market should be to look for a property that you know will break even. You can’t break even on a property if you’re having to bring money to the table each month.

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There’s no limit to the number of properties you can invest in, as long as they have a positive cash flow or are breaking even at the very least.

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As a general rule, most people invest in real estate for one of two reasons: to generate cash flow or for appreciation. It’s not often that you’ll find a property that both appreciates and generates considerable cash flow. 

As many of you know, my wife and I own property in Maryland, Virginia, and D.C. The properties we own in Baltimore have yielded double-digit cash flow, but over the last 10 to 12 years, they haven’t appreciated at all. Conversely, my properties in Virginia have hardly produced any cash flow, but their appreciation is soaring—6% to 8% annually.

Another tip when you’re out looking for an investment property is to try and stay under $400,000. Investing in a $1.3 million home in Arlington might sound like a good idea until you realize that the rent you charge will eventually cap out somewhere around $4,000 to $4,500, which won’t be enough to cover your mortgage, taxes, and the costs associated with finding a new tenant. I strongly caution against purchasing above the $400,000 price point if you don’t want your investment to become a financial liability. 

Now, there’s no limit to the number of properties you can invest in, as long as your properties have a positive cash flow or are breaking even at the very least. However, without a constant stream of cash flow, you’ll end up sinking your cash into them month after month, and those are dangerous waters to be in. 

If you have any further questions or you’d like to hear more of my tips on investing in real estate, please reach out to me. I look forward to hearing from you!

If you’ve been paying attention to the latest nationwide market statistics, you might’ve noticed that in many areas around the country, we’re shifting from a seller’s market to a buyer’s market.

In our Northern Virginia/D.C./Maryland area, however, we’re still in a seller’s market.

Let’s recap some year-over-year statistics from this past September. In Virginia, the average days on market was 39 days, which was a slight drop compared to September 2017 (41 days). In D.C., the year-over-year average days on market rose from 36 to 37 days. The total number of closed sales for detached units from all three areas dropped 12% to 15%.

This means there are fewer buyers out there, and what’s going to start happening in the next several months because of this is that inventory will climb. In fact, I think we’ll have more inventory next spring than we’ve had in the past three or four years.

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I think we’ll have more inventory next spring than we’ve had in the past three or four years.

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If you’re thinking about selling, now is the best time to do it—don’t wait until next spring. If you’re a buyer, you should also think about buying now as well. Although inventory is down about 45% overall in our area, you can lock in a lower interest rate if you buy now. Currently, the average interest rate is 4.6%, which is almost a full point higher than where it was at this time last year. If you’ve been paying attention to the latest nationwide market statistics, you might’ve noticed that in many areas around the country, we’re shifting from a seller’s market to a buyer’s market.

In the meantime, if you’re thinking of buying or selling a home or you have any other questions, don’t hesitate to reach out to me. I’d be glad to help you.

My guest Mike is a real estate broker in Virginia, Maryland, and D.C; he and I partnered up a month ago and today we’d like to talk about the importance of your property’s condition when it comes to selling your home.

Three months ago when the market was busier, people couldn’t get away with failing to paint their house, fix the grout in the bathrooms, or other such details, even though they felt they could.

We’re discovering that we have an available pool of buyers who’ve been pre-qualified, but they’re also quite particular about the homes they’re willing to bid on. If the house isn’t in top condition, they won’t pull the trigger.

This is why it’s important to have an agent who knows the area and what buyers are looking for. They can tell you what you’ll need to do in order to make a good impression on the buyers, whether it be hiring a handyman or a contractor to fix your home up.

We all know that we have historically low inventory, but still house aren’t selling. Sellers wonder why, but we’re here to say that your home’s condition could very well be a factor.

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Buyers don’t have to race to put offers on a property; rather, they can hold out until the house is in their definition of move-in condition.

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Buyers understand that our market isn’t undergoing a kind of gold rush. They don’t have to race to put offers on a property; rather, they can hold out until the house is in their definition of move-in condition. These buyers are ready to purchase, but they won’t move until it’s just right for them.

We’re still in a strong seller’s market. We have about two months of supply, though in D.C., inventory is starting to grow. We'll have to wait and see what will happen over the next month or so, but we’ll continue monitoring the market and updating you with valuable information.

If you have any questions in the meantime, feel free to reach out to us. We’d be glad to help.

Many of my investors ask me when the next recession is going to happen. The truth is that I don’t know. All I can do is look for answers. Many smart economists predict that the recession might start in 2020.

Our economy has been expanding since 2009 and we have seen almost a decade of growth. All signs point toward a recession soon. However, to my friends that invest in real estate, there’s no need to panic. With the exception of the 2008 recession, real estate has done really well in the past five economic recessions. A recession doesn’t equate to trouble in the real estate market.

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I wouldn’t be concerned about falling home prices in an upcoming recession.

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This recession will occur when the GDP begins to shrink for multiple quarters in a row. It’s more complex than that, but that’s what it is on a basic level. We don’t have any data to indicate that the real estate market will cause another recession, which is the only way a recession would really affect real estate.

So, I’m not concerned about dropping house prices during the upcoming recession. You shouldn’t be either. If you have any questions about the recession or about anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Today I want to talk about property disclosure as the seller.

Many people have asked me what they need to disclose about their property when selling. To answer this, I should start by saying that what you have to disclose depends on where you live. Each state actually has different rules about disclosures.

Virginia, for example, is a “buyer-beware” state. If you read Virginia's one-page disclosure, it pretty much says that the seller doesn't know anything about the house and the buyer will need to do their own inspection. In other words, you don't have to disclose much of anything.

However, keep in mind that if you are concealing some kind of trouble, such as a leaky roof or a crack in the foundation, that actually becomes a disclosable item and you are violating the law. You may even get in trouble after the settlement for doing it. I recommend always disclosing a problem if you're aware of it. Just because you disclose it does not mean that you have to fix it.

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There is a federal law that requires homeowners of homes built prior to 1978 to disclose whether there is any lead-based paint in the house.

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In Maryland and D.C., meanwhile, the laws are different. There is a much longer disclosure form. However, sellers can also do a one-page disclosure where they can say that they don’t know anything about the house and that the buyer will need to do a home inspection to figure it out.

Regardless of which state you live in, there is a federal law that requires homeowners of homes built prior to 1978 to disclose whether there is any lead-based paint in the house. You must also disclose if there are any inspections. Everybody needs to fill out this form if your home was built before 1978.

If you are concealing something, you may get in trouble after the settlement. For this reason, I say that it is better to disclose and to be safe than sorry.

If you have any additional questions, please feel free to reach out to me by phone or email. I look forward to speaking with you soon.

Here are the top 10 most expensive mistakes you might be making on your home:

1. Using traditional light bulbs. Did you know that if you change from traditional light bulbs to LED light bulbs, you can save as much as $150 over the life of each light bulb?

2. Ignoring a leaky faucet. If you know you have a leaky faucet and think it is no big deal, consider this: One wasted drop per second equates to 3,000 wasted gallons per year.

3. Using the wrong-sized air filter in your HVAC unit (or not replacing it regularly). You should change your air filter every 30 or 90 days, depending on which air filter you use.

4. Not using a customizable thermostat. There is no need to heat or cool your home if you’re not there. Nest or Honeywell thermostats have programmable functions that you can control with your smartphone to help you save energy.

5. Not adjusting the vents in your house. If you have a forced-air central heating system, as many homeowners do, you may be overheating or overcooling certain rooms if you are not adjusting the vents in them. 

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There is no need to heat or cool your home if you are not there.

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6. Overwatering the lawn. Inspect your sprinkler system to make sure you don’t have a broken sprinkler head. This can lead to overwatering your lawn.

7. Setting your water heater temperature too high. Unless you have a tankless water heater, you’re heating your water 24 hours of the day. Again, you do not want to burn unnecessary energy or keep your water at too high of a temperature during the summertime, so adjust your water heater temperature accordingly.

8. Having leaky windows or doors. If you can see the sun in the gap between any one of your window frames or door frames, you need to cover that gap.

9. Paying a handyman. You do not have to pay someone $200 to change a few light bulbs. Just do it yourself and save even more money.

10. Ignoring your roof’s shingles. If they are curled or some of them are missing, this is one of the exceptions to mistake No. 9. Missing shingles can cause your roof to leak, which then means you have bigger problems to worry about.

As always, if you have any questions about this topic or you are thinking of buying or selling a home soon, please feel free to reach out to me. I would be happy to help you.

Today let’s review the first quarter market of 2018 and see how it compares to the first quarter of 2017.

The average sold price for Virginia in the first quarter of 2018 is up 3.48%, which is great news for homeowners. Homes are selling on average at $511,066 this year versus just $498,880 last year. Sold units are down 2.85%; we are in a low-inventory market, so fewer homes have sold in the first quarter than last year. The average days on market is down 10.17% as well. 2017 saw an average of 59 days, whereas 2018 saw 53.

In the state of Maryland, the average sold price is up 1.93%, which is a smaller gain than Virginia, but a gain, nonetheless. The number of units sold is also down 5.37%, with 4,785 in 2017 and 4,528 in 2018. The average days on market is down as well; it dropped 3.57% from 56 days last year to 54 days this year.

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We see fewer homes to sell, which is why we see fewer homes closing this year compared to 2017.

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Washington, D.C., is not doing as well as Maryland or Virginia. The average sold price is down 3.67% from last year, going from $677,408 to $652,560. The number of units sold is also down 1.25%, or an average decrease of 24 units. The days on market did see an increase of 2.38%, however. In terms of average sold price, I wouldn’t panic about the drop; if you look at the median sold price, it’s still up 1.23%. It could be that fewer luxury homes have sold in D.C. and that the average sales price is skewed a little bit.

In addition to the specific market trends, I wanted to share a bigger picture of how we’re doing compared to 2008, when we were experiencing a recession. For the last 10 years, the number of active listings has been going down, though the closed sales were pretty stable. The inventory has shrunk over time, and yet demand has been the same. We see fewer homes to sell, which is why we see fewer homes closing this year compared to 2017.

If you have any questions about these reports, about your neighborhood, or about your property, please feel free to reach out to me. I can go deeper and explain exactly where we stand in today’s marketplace.

Many of you have asked me about what you can do to improve the quality of your home so that you get the most amount of money in the shortest amount of time when you decide to sell. Here are four things I would do if I were to sell a house right now:

1. Fix anything obvious. If you have rotten wood or a dripping faucet, take care of it. It’s going to show up in the inspection anyway. They are cheap fixes, but they can bring your home a ton of value. Changing the carpet and redoing some paint will get you at least a 10x return on your investment.

2. Fix up your kitchen and master bathroom. The other rooms don’t matter. These are the two places you need to focus on and spend your money. Repaint the cabinets, add new counters, or add a new backsplash. There are a lot of ways we can spend a little money to get a lot of value in return. If you plan on living in the house for the next three to five years, I think it’s a great idea to do it now so that you can get some mileage out of your improvements before you cash in.

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A nice, fresh coat of paint on your front door is a great idea.

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3. Curb appeal. If you’re about to list your home for sale, you need nice, brown mulch. Professionally cleaning your windows and porch is a good idea. So is a nice, fresh coat of paint on the front door.

4. Change the windows. Energy efficiency is really important to buyers. They are looking at utility costs closely, and the house with new windows looks so much better. However, if you’re not looking to be in the home for the next three to five years, it’s probably not worth the investment.

I hope this list was helpful to you. If you have any questions for me or need any help buying or selling a home, don’t hesitate to reach out and give me a call or send me an email. I look forward to hearing from you soon.