Loudoun Scene

What the Heck is the Difference Between “Contingent” and “Contract”?!

2009-12-16T21:25:32Z

Here’s a two-part question one of my clients recently asked me… “Can you explain to me the difference between ‘CNTG/NO KO’, ‘CONT/KO’ and ‘CONTRACT’? Can you still put offers on houses like that?”

The abbreviations stand for the following:

CNTG/NO KO means that the property is contingent upon one or more things, but the seller can not “kick out” the offer to take another offer. The type of “no kick out” contingency you usually see is an appraisal, financing and/or home inspection. Unless the buyer is paying all cash and has absolutely NO contingencies, the status is CNTG/NO KO
CNTG/KO means that the contract is contingent upon one or more things, but the seller can “kick out” the offer to take another offer. The “kick out” usually involves some sort of notice and short time frame for the buyer to remove the “kick out” contingency or the seller can accept another offer. One example of a “kick out” contingency “Sale of Home Contingency” by the buyer
CONTRACT means that all contingencies have been removed and the buyer and seller are locked into the contract. Typically, there is no way out of the contract that doesn’t involve default on the part of one or both parties.

As far as still being able to put an offer on a property in each of these three situations…

CNTG/NO KO - you could put an offer on it if the seller is accepting back-up offers. Your offer would be considered only if the original buyer/contract falls through
CNTG/KO - you can place an offer on it at any time. If the seller likes your offer better, they can give the original buyer notice requiring them to remove the “kick out” contingency. If the buyer does not comply with the terms of the notice and doesn’t remove the “kick out” contingency in time, the original contract could become void and the seller could accept your offer
CONTRACT - at this stage of the game, the chance of the deal falling apart is extremely small. If you’re really interested in the property, have your Buyer’s Agent contact the Listing Agent and ask them to keep you in the loop should the contract fall apart. Your Buyer’s Agent and you can also place the property on your “watch list” which will alert you of any change to the status (aka from CONTRACT to ACTIVE/back on the market)

A few important things and disclaimers…

1) If you have questions about the status of a specific property or whether you are able to submit an offer on it, contact your Buyer’s Agent. If you don not have a Buyer’s Agent, contact me directly - danilo.bogdanovic (at) gmail (dot) com - 703.582.6900.

2) These abbreviations are used by the local MLS here in the DC metro area. Different real estate search sites and different MLS’ use different abbreviations/terms so none of this may apply to you/your area.

3) I am not a lawyer - this is not intended as legal advice nor guidance - every contract and its’ terms is different - every MLS and area is different - check with your Buyer’s Agent/Realtor and others for guidance.

New RESPA Guidelines and Good Faith Estimate - Good or Bad?

2009-12-16T22:22:43Z

New RESPA (Real Estate Settlement Procedures Act) guidelines have come out and they will change the way Good Faith Estimates look beginning January 1, 2010. The changes will also increase the level of accountability that goes along with the lending process - for both lenders and borrowers. Some are “hootin n hollerin” about the changes while others are happy about them. Here are two people’s reactions to the changes…

“Hootin n hollerin” about the changes…

On the training conference call on Wednesday were originators from across the country who worked for direct lenders, brokers and banks. The common sentiment was that the consumer will in reality end up paying higher costs for loans as originators will not want to risk under-disclosing costs and fees, not just their own but those of escrow companies, title companies, appraisers, surveyors, etc, and be stuck with the tab.

- Excerpt from an article in The Orange County Register by Marilyn Kalfus

Happy about the new Good Faith Estimate and RESPA guidelines…

It completely evens the playing field on both sides of the table. It also comes with like a definition page that outlines what is encouraged to shop around for and what is not negotiable. No more “nickel and diming” over every line on the GFE.

The best part is that the definition of “application” has SSN as a REQUIRED field.

There are LOTS of skeptical people out there (rightfully so) that do not like to provide a SSN, but ask us to provide a “ball park” GFE based on the information provided. RESPA no longer allows a GFE to be offered without a SSN. This allows lenders to provide a responsible and more accurate GFE and prevents prospects from calling 10 banks asking for GFE’s just to see what their fee’s are.

Ooooh, just lots of good stuff – once again, for both borrowers and lenders…

Honesty, reliability and accountability is what the new GFE provides.

It puts the Good back in Good Faith Estimate!

- Christopher Koegler, Operations Manager - American Funding, Mclean, VA

I think that the new RESPA guidelines and Good Faith Estimate are good in theory, but theory and reality are two different things. We’ll have to wait and see just how they actually effect borrowers and the real estate industry as a whole.

What do you think?

P.S. Here is the new Good Faith Estimate (if you don’t see the embedded document below, click here)…

New Good Faith Estimate beginning January 1, 2010 -

I Gradumatated from VAR’s Virginia Leadership Academy!

2009-12-18T16:14:10Z

Being a successful Real Estate Consultant and REALTOR® is not just about selling lots of homes. I believe you have to be three-dimensional - take lots of continuing education, stay on top of current and upcoming real estate events and regulations, give back to your community and get involved in your local and state REALTOR® association. Part of being involved in your local and state association includes attending the Virginia Association of REALTORS®, Virginia Leadership Academy.

The Virginia Leadership Academy, which involves several retreats and many meetings over a period of 9 months along with a huge class project, accepts only 22 REALTORS® per year. There are over 33,000 REALTORS® in Virginia so the competition is stiff and the acceptance standards are high. That’s one reason why I was so honored to be accepted into the Virginia Association of REALTORS®, Virginia Leadership Academy, Class of 2009.

And I didn’t just attend… I gradumatated! (Yes, the misspelling is for humor purposes - so please chuckle now)

The Virginia Leadership Academy proved to be quite the learning experience…

We learned a bit about the way the Virginia Association of REALTORS® works. But, more importantly, we learned about leadership, how to better serve our clients and we created relationships with some of the best and brightest REALTORS® in Virginia. This may not sound like it would help you - the consumer - but in fact, it does greatly.

“How?” you ask… Here’s how…

Being in the same room with another 21 REALTORS® always leads to “shop talk.” But this was “shop talk” with some of the best and brightest in the biz. Exchanging ideas and experiences with these folks proved to be more valuable than many of the continuing education classes I’ve taken. (Not that the classes were bad, but just sayin…)

The most important part for me was learning about leadership. That’s important to me because I believe that there is a great deal of room for change and improvement in the real estate industry - particularly in the consumer experience department.

How do you bring change to the real estate industry and help improve the consumer experience?

Besides doing the right thing yourself in day-to-day business dealings, get involved in your local and state REALTOR® association. That’s why I serve on several committees at the local and state level and hope to get more involved in a leadership role down the road. Graduating from the Virginia Leadership Academy will help me be more effective in bringing change for the better once I am in more of a position to do so.

In addition to great “shop talk” and the leadership lessons, there’s the whole “creating relationships with fellow classmates.” I have been able to confidently refer several clients moving to other parts of Virginia to fellow Virginia Leadership Academy alumni. And I’m completely comfortable doing so because I know them personally, trust them and know they will take great care of my clients.

The Virginia Leadership Academy proved to be a great and rewarding experience and I’m honored and happy to have gone through it. Thank you to VAR for accepting me into the program. Thank you to DAAR for sponsoring me. And congratulations to my fellow Virginia Leadership Academy alumni!

Buying New Construction, Financing and Future Interest Rates

2009-12-18T16:29:57Z

Here’s a three-part question recently asked by a new construction home buyer I’m working with… “If my new home won’t be ready until June, how will that affect my financing contingency, when can I lock in my rate and what happens if rates spike up between now and June?”

That’s a very good and important question.

To answer the first part of that question, your financing contingency depends on the what the builders’ contract says. In my clients’ particular case, the builders lender has 45 days from the date of ratification to find him a loan. If they can’t do so within those 45 days, they can extend that time period for another 30 days.

Notice that I highlighted “date of ratification.” Whether you settle in 30 days, 6 months or 9 months, the financing contingency usually starts when you sign the contract and it’s then signed by the builder’s rep.

But - and a very important “but” - if you were to do anything to adversely affect their credit, you could lose the financing contingency time period and could be in default (aka lose your $20K deposit).

To answer the second part of that question, the typical interest rate lock is done 30, sometimes 60 days before settlement. If you would like to lock it in for longer, you should check if it’s possible with your particular lender. Even if it’s possible, you will most likely have to pay a point(s) upfront to do so. (One point is equal to one percent of the loan amount)

If you’re 6 months out from settlement, you may have to wait 4 or 5 months before locking in your rate. Yes, that can be a gamble, but it’s the price you pay for buying new construction.

Which leads me to the third question…

Even if rates go up between now and when your new home is delivered, you may still be responsible for buying the property. And if you don’t move forward with the purchase, you may be in default and could lose your deposit.

Now before you take any of what I just wrote as gospel, let me give you the mandatory disclaimer:

I am not a lawyer nor a loan officer/lender - this is not intended as legal advice nor guidance - every new home builder’s contract is different - every lender’s guidelines and offerings are different - check with your Buyer’s Agent/Realtor, your loan officer/lender and others for guidance.

***If you are interested in new construction in the Northern Virginia area, contact me before you head out to new home sales centers - danilo.bogdanovic@gmail.com - 703.582.6900. You need to have your own Buyer’s Agent representing and guiding you through the process. Remember - the builder’s sale rep works for the builder - NOT you. And your Buyer’s Agents/Brokers fees are already built into the sales price so it’s of no additional cost to you.

Killer Year-End Deals at Van Metre’s Linden Row in Lansdowne Town Center

2009-12-15T17:33:51Z

There are some killer deals on the few available spec condos at Van Metre’s Linden Row community in the Lansdowne Town Center in Lansdowne (Leesburg), Virginia. Here are the details:

Prices on the specs have already been reduced thousands to help get them sold ASAP
You get $8,000 off the price if you settle by the end of December 2009
You get $10,000 in closing cost assistance and/or off the price
Van Metre will pay all of your HOA fees for 2010 - a $4,596 value
There is one Chelsea model spec and a few SoHo model specs left that come with these great incentives and prices

Once these specs have sold, you’ll have to go with their February/March deliveries. But those will cost you more…

You will pay regular base prices without any money off
Base prices have been increased by $5,000
You do not get $8,000 off the price
Closing cost assistance has been reduced to $7,500

Basically…if you buy one of the available spec homes and settle by the end of December 2009, you’ll save over $20,000.

If you would like more information about the Lansdowne Town Center community, Van Metre, the different models and lots available and how to save the most amount of money possible, email or call me - danilo.bogdanovic@gmail. com - 703.582.6900.

Dulles Airport Impact Overlay District Disclosure Requirements

2009-12-09T18:52:29Z

Several of you have asked me about the Dulles Airport Impact Overlay District and any required disclosures. To best answer your question, my broker and I spoke with the Dulles Area Association of Realtors (DAAR) about the subject. Here is what DAAR had to say…

As a follow-up to our discussion this afternoon, the attached section of the Loudoun County Zoning Ordinance states that Homeowners Associations are required to make disclosure if the property is in the Airport Impact Overlay District. This would require a home being resold within a particular subdivision that has an HOA to provide the disclosure as part of the HOA “Packet” that is transferred to new owners. As you know, the rules covering subsequent disclosure are in the Virginia Property Owners Association law. The county ordinance also clearly states that all deeds of conveyance are required to have the disclosure. Since the county ordinance states that all deeds of conveyance must contain the disclosure that covers all transactions for properties that do not have an HOA.

A great tool created by the Washington Airports Task Force for buyers and the real estate community is “The Homebuyer’s/Broker’s Guide to Compatible Land Use Around Washington Dulles International Airport” found under http://www.washingtonairports.com/noiseandlanduse/homeownersguide.htm. The intent of the guide is to assist potential homebuyers and the real estate community in assessing the effect of aircraft noise and flight operations on homes in areas close to Washington Dulles. You may also find useful a presentation conducted before DAAR members last month by the Washington Airports Task Force on this issue.

If you or your clients would like to determine whether a particular property lies within the AID, visit Loudoun County’s mapping system at http://gisinter1.loudoun.gov/weblogis/default.htm An address can be typed in and determination made as to whether the property lies in any type of overlay district (ie Historic, Mountside, etc.)

If there are further questions about flight activities in or around Dulles, contact:

Anita Kayser, Director, Washington Airports Task Force anita@washingtonairports.com, Phone: 703-572-8714, Address: 44701 Propeller Court, Suite 100, Dulles, Virginia 20166

If there are further questions about the AID designation within the Loudoun County Zoning Ordinance, contact:

Loudoun County’s Zoning Hotline at 703/777-0118. They are really great about getting back to you within 24 hours.

In addition, check out the Loudoun County Zoning Ordinance that covers this subject (click here if you do not see the embedded document below)…

Loudoun County Dulles Airport Impact Overlay District Disclosure Requirement -

Photo credit

Why You Should NOT Bring Your Husband Shopping With You?

2009-12-10T04:48:08Z

(If you do not see the image below, click here)

Hat tip to Jason P.

Compare Cost of Living in Northern Virginia/Loudoun County to Other Areas of US

2009-12-08T16:32:17Z

Many of you who are thinking about moving here from other parts of the U.S. ask me the question, “What’s the cost of living difference between (enter your town here) and Loudoun County/Northern Virginia?”

To help answer your question, I’ve compiled a list of web sites you can check out. Each of these sites will give you anywhere from a little to a lot of detailed comparisons of cost of living of your town to any city/zip code in Loudoun County or in the Northern Virginia/DC metro area.

Here are some sample searches from each site:

If you would like to see how far your salary goes when moving from a major metropolitan area to the DC metro area in general, check out,

If you have specific questions regarding cost of living differences, what stores and price points this area has to offer in general or in detail per city/zip code, drop me a line any time. I can be reached at danilo.bogdanovic (at) gmail (dot) com or on my cell - 703.582.6900.

Save Money by Shopping at the Leesburg Corner Premium Outlets

2009-12-08T16:34:10Z

Seeing how we’re in the middle of a recession, the Leesburg Corner Premium Outlets may be just what the pocket book ordered. You can save 20 to 70 percent by shopping at the Leesburg Corner Premium Outlets as long as you don’t mind buying last year’s merchandise.

If you live in Loudoun County, the Leesburg Outlets are not very far of a drive at all. They’re located right next to the intersection of Route 7 and Route 15. If you live in Fairfax County or elsewhere, you may be thinking, “Leesburg is a long way to drive!” Perhaps. But consider the savings - 20 to 70 percent off the majority of your holiday shopping is no small chunk of change and well worth the drive.

If you’re wondering whether there are enough stores at the Leesburg Outlets to cover most or all of what’s on your shopping list, here’s a partial list of the stores you’ll find…

Adidas
Ashworth Golf
Banana Republic Outlet Store
BCBG Max Azaria
Calvin Klein
Eddie Bauer Outlet
Gap Outlet
Guess
Izod
J. Crew
Kenneth Cole
Motherhood Maternity
Old Navy
PacSun
Saks Fifth Avenue Off 5t
Washington Redskins Official Outlet Store
Wilson’s Leather Outlet
Osh Kosh B’gosh
Gymboree Outlet
Tumi
Samsonite Company Store
Seiko, The Company Store
Coach
Kate Spade
Zales Outlet
Crate and Barrel
Pottery Barn Outlet
Williams-Sonoma Outlet
Bose
Yankee Candle
If you get hungry, there is a food court located inside and restaurants nearby

(Click here for the full list of stores at the Leesburg Corner Premium Outlets)

Hours

Holiday hours (Nov 30 - Dec 23) are 9am to 9pm Mon-Sat and 10am-8pm Sun. For all you procrastinators, Christmas Eve hours are 9am to 6pm. Closed Christmas Day.

Directions

Click here for Google Maps - Leesburg Corner Premium Outlets. Once the new window to Google Maps has opened, simply click on “Get Directions” near the top left of the page and put in your starting address.

Special Events/Store Promotions

Click here for special events and in-store promotions going on at the Leesburg Premium Corner Outlets this holiday season.

Note: The Leesburg Corner Premium Outlets is outdoor style mall so dress warm and check the weather to see if it will be raining or snowing before heading there.

Happy shopping!

Another Happy Seller!

2009-12-04T23:28:39Z

I haven’t written about clients I’ve worked with to sell or buy a home before, but someone suggested I do (maybe because some of you may think that all I do is blog rather than “work”). That’s why I’m here to share with you one of the latest stories of me helping a client sell their home.

This particular property is located in Mclean, VA. It’s a 3 bedroom, 2 bathroom condo in the gated Colonies community located just down the street from Tyson’s Corner. We went with an aggressive list price because of the lack of inventory in the community and area in general, as well as the market conditions, which were favorable for the seller.

We also went with a marketing approach that was focused on today’s buyers and those that would be the most likely to be searching for a condo in the Mclean/Tyson’s Corner area in this price range. And we took it to another level..

a custom single property blog site with all the information a buyer would need all in one place (click here to check out the site)
custom business cards inside the property with the address and URL to the site rather than the typical, “Look at me!” listing agent’s business cards with their face plastered all of it (which does little to sell the home)
complete list and date of upgrades/renovations both, in a brochure and on-line
(and other things I won’t reveal for the sake of my competitors reading this post - sorry)

Guess what…the approach worked as planned! We received an offer within 24 hours of going on the market - even at the aggressive list price. After some negotiations, my client and the buyer came to an agreement on price and terms.

Though the buyer had some hurdles along the way which directly affected the seller (no transaction is ever without at least one hurdle), the property settled at the end of October. The seller was very happy with the outcome and the buyer was excited to move into their new, and first home!

Here is what the sellers had to say,

We listed with Danilo in September and closed in October. Yeah! Don’t let that easy-going, nice-guy exterior fool you, Danilo was aggressive and I definitely recommend him next time you need to buy or sell. No, this is not a paid advertisement.

Though this is the latest seller I’ve worked with, it is by no means the only one. Here are a few other examples of sellers I’ve worked with and helped sell their home…

If you would like to chat about selling your home, buying a home or the real estate market in general, feel free to contact me any time (click here for contact form/info).