Northern Virginia Real Estate Podcast with AJ Team Realty

Today I wanted to talk to you about a recent opportunity I had to be a blessing to my community through a mentorship program. Today I want to talk about what “be a blessing” means to me, and how I recently had an opportunity to really serve my community. “Be a blessing” is our core value and is one of the things we take extremely seriously. It goes beyond just being a blessing to our clients, but also to our community, our family, and the other agents in the office. We want to make sure that wherever we are and whatever we do, we come from a standpoint of contribution to those around us. Awhile back, we held a toy drive in the community and had such an amazing response that we ended up with more toys, school supplies, and other needed school items than we anticipated. I called Lori Williams, who is on our county school board, and asked her what school would benefit most from these items. I got the number of a local school, Featherstone Elementary, and called the principal to ask her if I could come drop off those items. Later while I was there doing so, I asked her if there was anything else that we could do to help. She told me that they needed mentors, and from there we were able to build a fantastic mentoring program. We had a group of 5th graders that we met with regularly and taught them things they weren’t learning in the classroom—including life skills like conflict resolution, how to tie a tie, how to shake someone’s hand, and how to look a person in the eye. "We taught them things they weren’t learning in the classroom." We really wanted to show these boys how to be cool young men, and give them a space where they could learn from college-educated business owners and other professionals about these life skills.  The biggest challenge with this mentorship program was the time. We went there every Tuesday for the hour right after school, which cut right through the middle of the work day. We had a few instances where parents were unhappy that we were keeping them after school and confrontations would happen. It helped me remember that what we were doing there was showing the boys that there was a better way to handle situations just like that, which was a huge motivator in bringing us back every week. I’m grateful that I had the chance to serve my community in this way. If you have any questions about this mentorship program or you’re looking to buy or sell a home in our area, give me a call. I’d be happy to help.

How can you tell if your home is a good candidate to convert into a rental? Consider these three points. Should you sell your home or rent it out? It's a question we've been discussing recently, and you can see the first part of our discussion here.  The question we'll address today is how to determine whether your home makes for a good rental property. There are three points to consider when making this decision: 1. Is it a smart rental property? Have you done so many cosmetic improvements that it will cost you a lot of money to get it back to a saleable state when the times comes to sell it down the road? A renter living in the home for around five to seven years might leave it in a condition that isn't conducive to selling the home. "Condos and townhomes tend to be easier to rent." 2. The type of home: Is it a single-family home, a condo, or a townhome? Condos and townhomes generally make smart rental properties because they're small and easy to rent. You'll always have tenants looking for a smaller property to rent. Single-family homes tend to be larger and rented less often than condos and townhomes. Condos and townhomes also tend to be cheaper to turn over when it's time to sell them since they're smaller. You also won't have to spend as much on things like flooring and paint in a smaller space. 3. Growth potential: If a property is in an area with lots of growth potential—meaning it will look very different in five to 10 years—it might be better to keep it as a rental property. Eight years ago, I bought a property in South Arlington based on the potential, and it has paid out in spades. I'm always able to rent it and its value has increased.  All these keys should give you an answer as to whether your home will be a good rental property. If you're thinking about moving and you're not sure if it's smarter to sell your house or rent it out, don't hesitate to give me a call or send me an email soon. I'd love to help you make the right decision for your home.

The decision of whether to sell or rent your current home can be a difficult one. Here are a few tips to make it easier. Today we’re going to answer a question that our clients ask us all the time. That question is, "Should I sell my home, or should I keep it as a rental property?" Now, I speak from two angles here. One is as a person who has owned rental properties for over a decade in the northern Virginia area; the other is as a broker that has sold a lot of properties over the past 14 years. The first question that you should ask yourself is whether you are ready to be a landlord. There are three things to take into consideration should you decide to make that leap. 1. Landlord issues. Landlord issues aren't necessarily bad things, but issues will arise that you must deal with. This can include renewing leases, minor things that need to be fixed, rent checks that may be lost in the mail, or lay issues that may be going on with your tenant as far as their job. Things always come up when dealing with someone else's household, and it’s always on someone else’s schedule. "Issues with rental properties never happen on your schedule." 2. Will you hire a property manager? Issues with rental properties never happen on your schedule, so unless you hire a great property manager (which will take away from your bottom line), none of the issues happen when you're free. Ask any landlord! Issues tend to happen when you are the busiest. If you are going to be renting out your property, you should be ready and available. Too often, issues arise that must be handled immediately and cannot be placed on the back-burner. 3. Do you have a team in place? You may already have a Realtor (hopefully it's me), but do you have a plumber, electrician, handyman, and a lawyer? You need a solid team in place when these issues arise because when they do, you won’t have time to shop around for the best rate. You can’t always control when things happen, and it’s important to have a team on standby that has your back. We hope you’ve found this information helpful! This is just one part of an ongoing series discussing renting versus selling because there are instances where it’s better to rent, just as there are instances in which it’s better to sell.  If you have any questions for us, don't hesitate to give us a call or send us an email. You have the dream, we have the address. See you soon!

Our average sale price increased and our average days on market decreased during the first quarter, but what does that mean for buyers and sellers? As you know, I’m a real estate geek. I love to study statistics, and I have some important numbers to show you to give you a snapshot of how our northern Virginia market did during the first quarter.  First, our average sale price increased 3%, which was pretty predictable and we don’t expect that number to climb much higher throughout the rest of the year. Our average days on market decreased 21%, which signals a more competitive spring market. We’re expecting that number to go down, meaning homes should sell faster than they did at this time last year.  "If you’re thinking about selling your home, now is the perfect time to do so." The number of townhome sales increased 13%, which indicates a very hyperactive market. If you’re looking for an entry-level property anywhere in our area, it’s going to be very competitive. You’ll likely face multiple offer situations, but there are strategies we can employ that will prevent you from overpaying.  The number of single-family home sales increased 6%, which means we’re starting to see a subset of people move up from townhomes into single-family homes, but they’re not necessarily staying in the northern Virginia area. Some are relocating down south or out west. Many baby boomers are retiring and moving to parts of the country that are less expensive. There aren’t any shifts happening that you should be worried about, but being mindful of these trends can put you in position to win in our market. If you have any questions, please feel free to give me a call. I’d be happy to speak with you.

We’re giving back to those in need in our community, and we need your help. Here’s how you can give back, too. Today we’re taking a break from real estate to talk about how we’re fulfilling one of our core values, which is to be a blessing to others in our community.  First, we have an initiative this month with the ACTS Homeless Shelter here in northern Virginia where we’re acting as a drop-off site to help them collect donation items for those in need. ACTS is a transitional shelter intended for those who are going from one phase of their lives to the next, and they’re in need of simple things that you and I take for granted. We want to help them collect these things so they can be a blessing to the less fortunate.  "A generous person will prosper; whoever refreshes others will be refreshed." If you would like to help and make a donation, you can either call us or drop off any items you want to donate at our office. We want to be a resource for you to be able to give back.  Click here for more information on how you can support ACTS Secondly, we plan on donating the proceeds from our 100th transaction to your charity of choice. We’ll be holding a poll on our Facebook page where you’ll be able to vote which charity gets the proceeds. The grand total will be up to $5,000.  We want to know what you care about and which charities move your heart and soul. If you could take some time and think about this, we’d love to hear about it and we’d love to see you vote.  Submit your nominee by Wednesday, May 31th for a chance to win up to $5,000 for the local charity of your choice! Remember, you have the dream and we have the address. If you have any other questions, please feel free to give us a call. We’d be happy to assist you.

Supply is down and demand is up in our market, which means if you’re thinking about selling your home, you should do so soon. What do the latest numbers tell us about what’s happening in our market? The number of properties for sale is down 12%, which is a big drop. Our average days on market is down 27%, which is another large decrease. In terms of supply and demand, supply is down 12% and demand is up 1%.  "Our market has a healthy supply problem." In other words, our market has a healthy supply problem. There aren’t enough good homes on the market, and the ones that are sitting on the market are sitting unsold because they’re not priced right or not being shown right.  If you’re thinking about selling your property, I would do it soon. These numbers will change once the market heats up. In the meantime, study these figures. When supply is low and demand is high, you’re more likely to net more money from your home sale.  If you have any questions about this latest information or you’re thinking about selling your home, don’t hesitate to reach out to us. We’d be happy to help.

How can you sell your current home and buy another one without ending up homeless in between? I’ll explain the answer today. How do you sell your home and buy another home without being homeless in between? Whether you are moving up from a townhome or condo to a single-family property or downsizing, this can be a tricky transition.  Basically, you will need to use the home of choice contingency in the standard contract. So, if you have a property to sell and the buyer makes an offer, you can tell the buyer that you will accept the offer as long as they give you enough time to find the home of your choice. You can ask for two weeks, two months, 60 days—it all depends on the buyer.  "The home of choice contingency gives you the freedom to find your next home." The buyer may be concerned because their deal depends on you being proactive about finding a property. The good news is that the contingency gives you freedom to find the home that you want because you already have a contract on your current home. Once you have a contract on your next home, give your buyer notice and you will be able to close on both transactions.  Now, there are a lot of moving parts to this process but it is necessary because a lot of people don’t have the extra cash to facilitate another home purchase. However, it has worked out well for many of our clients.  If you have any questions or would like to talk more in-depth about this process, give me a call or send me an email. I would be happy to help you!

Interest rates may go up soon, and home buyers aren’t the only ones who will be affected. Today I’ll go over everything sellers need to know about interest rates and home value. Help us be a blessing to 15 families in need. To learn more, go to www.ajteamrealty.com/adoptafamily2016 Last year, we were fortunate enough to bless five different families who needed gifts for their kids. You guys went out of your way to help them in an extraordinary way. Each year, we try to level it up, so this year, we’re trying to help 15 families here in the Northern Virginia community. When you’re blessed, you’re able to bless even more! We’re reaching out to you in hopes that you can help us be a blessing to these families this holiday season. Click here to help us give gifts to these families and their children, and help them with a few things that we take for granted. I can personally tell you that giving gifts sure makes my two favorites assistants here happy! There are plenty of things you can give—anything helps. We like to give the parents time to give these gifts to their kids, so we love for you to hustle up with us and help us give a happy holiday to some families in need. If you have any questions about how to help, give us a call or send us an email. We look forward to hearing from you!

If you make a lowball offer on a home you love, there’s a good chance you’ll lose out on that home to another buyer. Today I want to tell you why. Today I want to talk about the dangers of making a lowball offer.    In our industry, a lowball offer is when a buyer makes a drastically low offer on a home that’s listed for sale. Why is this dangerous? Let me provide some context—if you don’t love the property, it doesn’t matter what you offer. You can make an offer as low as you want for a property you don’t love because if you don’t get it, it doesn’t matter. I’m talking about the property that you absolutely love. It’s dangerous to make a lowball offer on a property you love because you run the risk of the seller not countering your offer and meeting you somewhere in the middle.  "There is a better strategy than making a lowball offer." If you love a property, you have to have a strategy to get a good deal on it, and there are better strategies than making a lowball offer. If you make a lowball offer, what often ends up happening is another buyer will come along after you and make an offer somewhere between your offer and the seller’s asking price. The seller will then accept that other offer because of what your lowball offer did to their psyche. You made them feel angst about their home sale, and the other buyer’s offer made them feel better. Remember—you have the dream, we have the address. If you have any questions about this topic or have any other real estate needs, don’t hesitate to reach out to us. We’d be happy to help.

I predict that over 40% of homes in northern Virginia will go down in value over the next few years. Here’s why. Today I’m going to put my neck out on the line. I predict that over 40% of homes in the Northern Virginia area will go down in value in 2017, 2018, and 2019. Here’s why. We’ve been selling homes in the area for over 15 years. We’ve sold over 600 of them and we’ve seen the ebbs and flows of the market. We know there are certain things you can look at that indicate where the market is going. If you’re working with an agent who can’t break that down, you need to call us. "You need an agent who can break those numbers down for you, so let AJ Team Realty help." There are three things in particular that you need to look at when it comes to which properties may go down in value in the next few years. The first segment of homes that I believe will go down in value are homes built between 2004 and 2007. Most of the homes built during this time had adjustable rates that will balloon sometime soon if they haven’t already; When you have loans that are ballooning and home values that have not increased to those pre-recession levels, that’s a recipe for a foreclosure or short sale. If you’ve got a home built during this time, especially in tertiary markets like Prince William and Loudoun County, expect prices to drop over the next few years. Next up is poor renovations. If you've done renovations to your home, buyers are more picky about them today than they have been in the past. They are watching HGTV, House Hunters, and YouTube when looking at potential homes and they can spot poor renovations. These homes are undoubtedly going to go down in value. Finally, if you have active builders in your area, you have built-in competition. Builders will have dozens of homes to sell in some cases and you only have one. They have much more flexibility in price and terms when it comes down to it. If you’re selling a single-family home for $500,000 and there is a builder across the street selling homes for $500,000, you’ve got some stiff competition.