Art Real Estate Group Video Blog

Don’t Make These Mistakes When Buying

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Tue, 8 Oct 2019 11:49:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

Let’s say you’ve found the house of your dreams, you’ve got it under contract, and in 30 days, you’ll be handed the keys.

First of all, congratulations! That being said, if you don’t want to jeopardize your plans of becoming a homeowner, here are five common buyer mistakes you need to avoid making:

1. Quitting your job. Now is definitely not the time to quit your job or get fired. Before closing, your lender will call your employer to verify your employment status. If you don’t have a job, you might be denied financing.

2. Buying a new car. If you’ve been waiting for an opportunity to buy your dream car, don’t do it before settlement—wait until afterward. If you lease a car or use financing to buy one during this time, your debt-to-income ratio will change, and you might not qualify to purchase the home anymore. This leads me to my next mistake to avoid...

3. Creating any new credit card debt. Don’t book any expensive vacations or make any large purchases. Again, this type of thing can wait until after settlement.

4. Buying new appliances. This falls under the umbrella of creating new credit card debt, but it still warrants its own point because it happens so often. I understand you might be excited at the prospect of buying new appliances or furniture for your home, but using your credit card to make these purchases is another thing that will disrupt your debt-to-income ratio and prevent you from qualifying for your mortgage.

5. Borrowing from your down payment sum. If you agree to put down, say, $30,000 for your home purchase, it needs to be that amount exactly—not anything less.

As hard as it is to believe, I’ve seen people make all five of these mistakes during the home buying process, so keep them in mind and make sure nothing gets in the way of you closing on your dream home.

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.

How You Can Appeal Your Home’s Tax Assessment

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Mon, 23 Sep 2019 14:38:00 -0700

If you think your home’s tax assessment is too high, you can always appeal it.

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

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.

“

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

”

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.

Real Estate Market Conditions in Northern Virginia, D.C., and Maryland

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Mon, 9 Sep 2019 09:39:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

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.

“

Our inventory remains at an all-time low.

”

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.

What Are Instant-Offer Companies?

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Mon, 19 Aug 2019 12:45:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

You’ve probably heard on TV, radio, or the internet ads from companies that are launching an iBuyer program. But what are iBuyers?

An iBuyer, or instant buyer, is a company that buys properties from sellers quickly and conveniently. When you sell to an iBuyer, you don’t have to list the house for sale on the market; in fact, you don’t need to do much with the home at all as far as preparation goes. Like their name suggests, iBuyers will craft an instant offer for your property.

As of today, none of the prominent players (Zillow, Offerpad, Opendoor, etc.) are offering an iBuyer program in Virginia, Maryland, or D.C.; usually, they launch their programs in states with lower sales prices.

How do iBuyers work, exactly?

By design, they’re pretty easy to sell to. You simply call them up, and they’ll write you a check.

The downside, however, is that they’ll charge you a convenience fee of about 10% to 20%, which can be a substantial amount.

“

Like their name suggests, iBuyers will craft an instant offer for your property.

”

Why would someone sell to an iBuyer, especially in a good market where homes are selling in less than a week? Usually it’s because they need to sell quickly, for whatever reason, and they’re not interested in getting the maximal amount from the home sale.

It’ll be interesting to see how this program will unfold and whether it will stick. Discount brokerages like Purplebrick have already exited the market; they’re based in the United Kingdom but now have closed their doors in the United States. Only time will tell.

If you have any questions about iBuyer programs or real estate in general, feel free to reach out to me anytime.

The Truth About Amazon’s Impact on Home Values in Our Area

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Mon, 5 Aug 2019 09:58:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

What kind of effect will Amazon have on home values in our Northern Virginia/D.C./Maryland marketplace? Should you sell now, buy now, or wait?

The answer depends on where you live and what kind of house you have.

I did some research about the average yearly salary of Amazon employees, and truth be told, I wasn’t that impressed—depending on the position, the answer usually ranged from $58,000 to $128,000. C-level executives, meanwhile, earned a yearly average income of $220,000. This means, out of the 25,000 or so people predicted to move into our area, only a handful will be able to afford luxury homes.

If you’re a luxury homeowner, then, this means your situation won’t change at all. If you live in Arlington or certain parts of Fairfax County, though, the story is slightly different. Many organizations predicted a single-digit increase in home values in both areas for 2019, but now they upped it from 9% to 17% in Arlington and 3% to 7% in Fairfax County.

In general, the closer you are to Amazon’s HQ2 headquarters in Crystal City, the better your outlook. If you’re located outside of this area, though, your home’s value won’t be affected.

“

Our real estate market has been strong historically, and that won’t change moving forward.

”

In any case, there’s no need to panic. There are plenty of other great companies expanding in our area, including Facebook, Microsoft, and Yelp! Our real estate market has been strong historically, and that won’t change moving forward.

If you have any more questions about this topic or you’re thinking of buying or selling soon regardless, don’t hesitate to reach out to me. I’d love to help you.

Should You Invest in Real Estate Today?

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Fri, 19 Jul 2019 11:38:00 -0700

Given that today’s market leans heavily toward sellers, should you invest in real estate? The answer is yes, but not without following these tips.

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

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.

“

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.

”

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!

A Quick Virtual Tour of a Gorgeous Property

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Mon, 24 Jun 2019 12:07:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

Our newest Great Falls property is absolutely gorgeous. Listed at $3.69 million, this luxurious home boasts a whopping 14,000 square feet. You’ll definitely want to see the stunning photos of this incredible home, both inside and out. We’ve even captured some incredible shots using drone photography. If this home has captured your attention or if you have any questions, feel free to give me a call.

What Do the 5 Richest Counties in the U.S. Have in Common?

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Fri, 7 Jun 2019 10:38:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

What do the five richest counties in the U.S. have in common?

Before we answer that question, let’s add some context to it. According to U.S. News & World Report, the median household income for counties around the nation is $57,652.

What constitutes a household? According to the Census Bureau, a household refers to a single housing unit and all of the people that live in it. For example, a studio apartment, one half of a duplex, and a mansion are all considered a single household. Family households have related residents, such as a husband, wife, and children. People who aren't related who live together, such as roommates or unmarried couples, also constitute a household.

Also, the median household income refers to the income level earned by a given household where half of the homes in the area earn more and half earn less. It's used instead of the average or mean household income because it can give a more accurate picture of an area's actual economic status. Median household incomes are frequently used to determine housing affordability.

“

Median household incomes are frequently used to determine housing affordability.

”

Now, the one trait that all five richest counties in the U.S. have in common is...they’re all located around the DC area:

1. Loudoun County, Virginia: $129,588
2. Fairfax County, Virginia: $117,515
3. Howard County, Maryland: $115, 576
4. Falls Church City, Virginia: $114,795
5. Arlington County, Virginia: $112,138

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 be happy to help you.

What’s Going on in Our Spring Market?

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Mon, 20 May 2019 08:27:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

It’s hard to believe that it’s already May. Now that the first quarter is behind us, let’s take a look at what’s been happening in the market. Specifically, we’ll be going over data related to how conditions have changed since this time last year.

Let’s start with Northern Virginia. Year over year, the median home price has risen by 3.3% (up to $465,000). This rise is likely thanks to the current high demand, which has also caused the average days on market to drop by 23.81% over that same period. It now takes an average of 48 days for homes to sell in our market.

It’s also worth noting that the average list-to-sales price ratio in Northern Virginia reached 98.8% this May.

“

We’re still in a seller’s market, but conditions are beginning to shift.

”

In Maryland, home prices rose 2.26%. The average days on market, meanwhile, dropped 10.81% to 68 days. Also, the average list-to-sales price ratio in Maryland is 98.5%. And in D.C., specifically, the median sold price rose 3.27% year over year, while the average days on market in the district dropped 17.19% (to 53 days) in that same period.

So what does this all mean for you?

In general, we’re still in a seller’s market, but conditions are beginning to shift. So if you’ve been thinking of selling, now may be a good time to do so.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Make Your Yard Shine With these Spring Cleaning Tips

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Thu, 2 May 2019 12:27:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

Here are a few spring cleaning tips for your property that will help make the outside look clean and organized:

Trim the trees. Sometimes I trim the trees on my property during the fall, but this year we decided to do it in spring.
Remove any dead plants or bushes and plant some new ones in their place. Adding dark mulch always is always a nice touch.
Reevaluate the lawn. You might have some bald spots leftover from the winter.
Clean the gutters. You don’t want your basement to end up flooded because of clogged gutters, so be sure to check that water is able to flow freely through your downspout as well.

If you’re selling your home, it’s very important that your lot looks great, so these tips become even more crucial to follow up on before entering the spring market.

If you’d like to know more spring cleaning tips you can apply to your home or you have any other real estate questions, don’t hesitate to reach out to me. I’d be happy to help you.

How the Latest Stats From Our Market Compare to Last Year’s

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Mon, 8 Apr 2019 09:00:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

What’s the latest news from our Northern Virginia/Maryland/Washington DC market? Here are the latest statistics and how they stack up compared to this time last year:

Northern Virginia:

The median sold price rose 4.65% to $450,000
The average days on market dropped 19.23% to 63 days—this number is higher because it includes luxury homes, which often take two or three years to sell
Homes are selling at 98% of their asking price

Maryland:

The median sold price rose 4.02% to $329,900
The average days on market dropped 8.43% to 76 days
Homes are selling at 97.1% of their asking price

Washington DC:

The median sold price rose 7.77% to $555,000
The average days on market dropped 14.08% to 61 days
Homes are selling at 97.5% of asking price

If you’d like to know what these statistics mean for your buying or selling plans or you have any more questions about our market, don’t hesitate to reach out to me. I’d love to speak with you.

Tips for Getting off the Mortgage Treadmill

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Fri, 1 Mar 2019 13:33:00 -0800

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

I just jumped off the treadmill in my home gym, which got me thinking about a different kind of treadmill: the mortgage treadmill. Many of us jumped on this treadmill whole-heartedly, but we can’t wait to get off of it.

Truth be told, I’d rather be paying my mortgage than paying someone else’s, so that’s fine. Reports show that people who own homes have a net worth that’s 44 times higher than renters. Even the millennials are catching up and understanding that real estate will be their No. 1 priority in the next few years.

If you do already have a mortgage and you want to pay it off faster, all you need to do is make one extra payment per year. You could put a work bonus toward it or simply increase each mortgage payment by one-twelfth. That will shorten your payment period by four years, which will save you a lot of money.

If you are like most Americans and only plan on living in your home for five to seven years, you may want to consider refinancing to an adjustable-rate mortgage that’s fixed for five to seven years. This can save you tons of money as well.

The money won’t come out of nowhere. Sacrifices will need to be made. However, if you cut some wasteful spending and just apply it to your mortgage, your run on the mortgage treadmill will be much shorter.

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

The Top 5 Mistakes Sellers Make

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Tue, 12 Feb 2019 12:40:00 -0800

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

Are you having trouble selling your home? If so, it may be because you've made one of these five home selling mistakes:

1. Overpricing the home. People think they can simply price their home high and negotiate if necessary. While it’s possible, this is not recommended. When you sit on the market for months before adjusting your price, it doesn’t reflect well on your listing. Even after the price has been lowered, buyers will think something’s wrong with it since it’s been on the market for so long. Avoid this by pricing your home reasonably from the outset.

2. Doing a “For Sale By Owner.” 92% of FSBO sellers end up using a real estate agent, so it’s best not to waste your time. Let the professionals handle it.

3. Not getting the house ready. If you want to sell your home quickly and for top dollar, your home needs to be adequately prepared. A Realtor will tell you what needs to be done and show you where you should put your money for a great return on investment. You’re basically entering a beauty contest for your home, so it needs to look great.

4. Not having a walk-through inspection. Go through the home with an inspector, contractor, or agent to find issues that need to be addressed before you list.

5. Being present for showings. Buyers will want to look through your home, but if you’re looking around in the background, they won’t feel very comfortable exploring. While you’re there, you’re actually hurting the showing. It’s best to simply leave your buyers in peace.

If you have any questions or need further information, feel free to reach out to me. I look forward to hearing from you soon.

Buy the Right Home at the Right Price By Following the 5 P’s

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Tue, 29 Jan 2019 13:33:00 -0800

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

If you’re a homebuyer in our market, here are the five P’s you need to remember to find the right home at the right price:

1. Professional: Find a real estate professional to work with. Work with someone who knows the area you want to buy in and knows how to negotiate. We’re in a low-inventory market here in the DC area, so if you don’t hire an expert to represent you, you won’t get the property you want.

2. Price: Know your price range. You don’t want to waste your time shopping for homes you can’t afford.

3. Preferences: Know your preferences. What are the items you must have regarding your new home? For example, do you need to live in a certain school district?

4. Perspective: Gain some perspective on the neighborhood you’re buying in. Start driving around the area and checking the comparable home sales from the past few months so you can make an educated buying decision. Having a knowledgeable real estate professional by your side can really help you with this process.

5. Put it all in play: This one is self-explanatory. Once you understand the previous items on this list, it’s time to put it all in play and buy the home you deserve.

If you have any questions about this method or you have any other real estate needs I can take care of, don’t hesitate to give me a call or shoot me an email. I’d be happy to help you.

Happy Holidays, From Us to You

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Tue, 18 Dec 2018 08:35:00 -0800

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

2018 was a wonderful year for our team, and we’d like to thank you for the business you’ve given us—we couldn’t be where we are without you. This holiday season, we hope you’re able to spend plenty of time with family, friends and loved ones. May this new year bring you and your family joy and prosperity. We look forward to continuing to meet your real estate needs in 2019 and beyond. Happy Holidays!

Should You Build a New Home or Renovate Your Current One?

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Tue, 4 Dec 2018 12:59:00 -0800

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

People say renovating is actually a nightmare—it’s painful and difficult. Well, so is moving; there’s no real easy way out. So if your home has run out of space, you have two options: build on or expand your existing home or move to another.

Now, many of you like your neighborhoods, and if you live in Arlington and want to stay here, let’s explore the option of expanding your home.

You’ll need to make sure that when expanding the existing footprint of your home, it’s still within county allowances, that it meets setback requirements, and that your property can carry the additional weight added to your home. But the most important thing to pay attention to is the cost. You don’t need to have the most expensive house in the neighborhood; when it comes time to sell, you’ll see that you made a mistake by sinking too much money into it. If you’re spending $200,000 on a $1 million home, that’s fine, but if the house is worth $500,000 and you spend $250,000 on it, that may not be the smartest move.

You also need to figure out if expanding your house will actually fix your long-term problem. If you’re planning to have three more kids, adding one bathroom might not solve the issue, so you might want to look at purchasing a larger property. It really depends on your personal needs.

“

You also need to figure out if expanding your house will actually fix your long-term problem.

”

Building a custom home is very expensive; if we can find you a house that’s already been built in an established neighborhood, that will probably be the better option. There’s a lot of development in Loudoun County, but like a lot places in the area, it’s very tight.

Additions to homes are, of course, fine, as long as we can support and document evidence so that we can recoup your money when it comes time to sell.

Hopefully this information was valuable for those of you thinking about building additions on your home or moving to a larger home altogether. If you have any questions, feel free to reach out to me. I’d be glad to hear from you.

The National Market Is Shifting, but Are We Shifting Along With It?

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Tue, 23 Oct 2018 09:17:00 -0700

Selling a home? Get a free home value report
Buying a home? Search all homes for sale
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.

“

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

”

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.

Buyers’ Standards Are High—Does Your Home Stack Up?

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Thu, 13 Sep 2018 13:08:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

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.

“

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.

”

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.

What the Upcoming Recession Means for Real Estate

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Fri, 17 Aug 2018 12:33:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

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.

“

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

”

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.

What You Need to Disclose in Virginia, Maryland, and Washington D.C.

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Fri, 3 Aug 2018 08:25:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

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.

“

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.

”

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.

The Benefits of Multi-Generational Living

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Fri, 29 Jun 2018 08:47:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

What is multi-generational living?

Multi-generational living refers to a person sharing a household with their parents or in-laws. It has become increasingly popular over the last few years with more people searching for homes that have finished basements with a separate entrance so they can have their parents live with them. I am currently selling a house in Vienna which has live-in parents and in-laws. This totals to three families living together.

Why is this happening? People are living together in this way because of the cost of living in Virginia, Maryland, and DC. It is becoming cost-prohibitive. When people retire, they may only have the choice of moving out of state because they can no longer afford to pay their property taxes. Some, meanwhile, choose to live with their children.

“

Multi-generational living has become increasingly popular the last few years in the United States.

”

Some people consider living in an assisted living community, but that is a huge expense. It could be $10,000 or more per month to live in assisted living. If you do not have that kind of money, there is a chance you may be moving in with your kids.

As you may know, I am from Lithuania, where generational living is very common. People grow up in a house and raise their own families who then have their own children. Multi-generational living in the United States, though, has become a new trend. I think that it will continue to become increasingly popular and be similar to the European model. This means that people will look for large homes and maybe even combine two or three households into one which will create tremendous savings for all members of the family.

If you are interested in finding out more about generational living or are looking at buying or selling, please feel free to reach out to me. I look forward to speaking with you soon.

5 Lessons Learned From the Housing Crisis of 2007

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Thu, 14 Jun 2018 09:08:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

Though it was a bad time for many reasons, there were still lessons to be learned from the 2007 financial crisis. Today I want to discuss how those lessons apply to the 2018 market, and how we can avoid making the same mistakes that we did 11 years ago.

1. Don’t buy a house you cannot afford. As a real estate professional, I still see a lot of people who aren’t meeting with their lenders to ascertain how much they can afford. Sticking to a reasonable price range per your budget will be easier on you and your finances.

2. Don’t expect your house to appreciate. Back in 2005 and 2006, people thought that if they didn’t buy a house then, they wouldn’t be able to afford one later on. That wasn’t the case, as we learned a few years down the road when the bottom of the market opened up. If you look at the long term, homes will absolutely appreciate. However, it’s never a straight line of appreciation; there will be ups and downs. The real estate cycle usually restarts every seven to eight years, but we’re about 10 years off from the last one, so if we end up seeing price reductions soon, I wouldn’t be surprised.

3. Make sure you have adequate cash reserves. Most financial planners and economists will tell you that you should have six months’ worth of reserves in your savings—if it costs $5,000 a month to live in your home, you should have $30,000 in your savings.

“

Sticking to a reasonable price range per your budget will be easier on you and your finances.

”

4. Put down a healthy down payment. Many people are doing 100% financing, which was part of the problem we saw back in 2007. Even if you have to sell a few years down the road when you haven’t yet accumulated a lot of equity, a healthy down payment will allow you to sell your home if your life changes to where you need to move.

5. Sell high and buy low. 2018 could be the best time to sell your home if you bought the house with the intention to flip it and make money. Now is a good time to get your home on the market—the market is hot, inventory is low, and we don’t know what will happen tomorrow.

If you have any questions or need the assistance of a professional agent, please feel free to reach out to me. I’d be glad to help you out.

10 Expensive Day-to-Day Mistakes You May Be Making as a Homeowner

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Tue, 29 May 2018 12:43:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

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.

“

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

”

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.

2018 vs. 2017: A Q1 Market Comparison

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Fri, 27 Apr 2018 09:00:00 -0700

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

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.

“

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

”

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.

4 Ways to Add Value to Your Home

Art@ArtRealEstateGroup.com (Art Real Estate Group ) — Tue, 10 Apr 2018 09:24:00 -0700

No matter when you plan on selling, you can always add value to your home. Here are a few of our top tips.

Selling a home? Get a free home value report

Buying a home? Search all homes for sale

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.

“

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

”

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.