Pat Kennedy - Your Washington, DC Real Estate Connection

At the top of my bucket list has been learning to ride a horse.  And last week, I joined my friend, Jean, for lessons at the Woodland Horse Center.

I've been on horses before, but I'd never learned how to get the horse to go where I want to go at the speed I'd like him to go, and to stop when I'd like him to stop.

It's about communication.

So my new buddy, a gorgeous roan named Applejack, is teaching me about communication, and not just with a horse.  A lot of it applies to clients as well.  For example:

• It's subtle.  It's easy to say "canter" when you want him to trot.
• If you don't say "go" just right, he'll stop altogether.
• You really need to show the horse who's in charge, but sometimes the horse is in charge - unless you're really good.
• Sometimes the horse will give you this look like he must think you are a total idiot.
• Sometimes you are a total idiot - at least when it comes to horses.

So while I'm trying not to get too concerned about Applejack's judgments of me as the human who rides him every week, I'm learing to sit on an English saddle and post and trot and basically sit on this guy's back without falling off.

And the other fun thing is the shopping opportunity at the tack shop.  I got my cute new helmet - although I'm striving to get one with a fuzzy surface - they are really cool. 

And Jean got these chaps - I have to have some!  They are beautiful brown supple suede.

There are also boots and outfits and saddles and before long I'll be leasing a horse!  Then I'll need to buy one and move to Potomac where thre are lots of places with stables that go with the house!

My broker will love all this.  I'll have to sell a lot of real estate to support my new horse habit!

© 2009 Patricia Kennedy. Unless otherwise noted, the content, both written and in pictures, is the property of Patricia Kennedy . If you would like to use this image, please  email me (housepat@mac.com) with your request. I'll almost certainly say yes, and ask only that you provide a link back to my original content as well as an acknowledgment.  The same thing applies to any other material you see posted here on Active Rain or on any of my other blogs.

A lot of us have started to go nuts as lenders are getting more and more nitsy, driving our beloved clients crazy with last second requests for documentation and other paperwork issues that seem to come to a head about two days before settlement. 

This morning, I had a talk with a lender who has been making loans as long as I've been selling houses, and we were laughing about how it's getting to be just like the good old days!  So now, I'm coaching all of my buyers on what to expect during the process.  By preparing them for all of the stuff that is totally annoying people right now, I'm hoping that if they expect the nitsy, it won't annoy them as much.  Here are some of the things I'll have them be on the lookout for:

• For a while, the lenders were all pretty casual about pest inspections.  Well, now it there is a single carcass of a single once alive termite on the property, there will have to be some evidence that the little guy did not die of natural causes like old age.  This means evidence of prior treatment, either in the form of paperwork documenting when the treatment was done or a new treatment.  Same with repairs of termite damage.  You'll probably need someone to certify that it was done by a licensed termite repair contractor, or you will have to bring in a licensed termite repair contractor to say it was done properly.
• They are looking at condominium documents more carefully, with an eye to saying no to people buying in buildings that look like the owners' association might be in trouble.  In projects with a lot of short sales and foreclosures, this could further compound the problems they are having with owners who cannot pay either their mortgages or monthly association fees.
• If you put any money into your checking account that was not your regular pay check, you will have to account for it.  So if you are self-employed, keep good records of your clients' payments.  Same if you are on commission.  I just had some buyers need to get a letter from grandma saying the $1000 check they deposited was, in fact, a wedding present. 
  
• If you are getting a large gift from your parents, you may have to document that they did not borrow the money to give to you.  You'll also probably have other lender's guidelines about the amount as a percentage of your down payment.
  
• It is taking a lot more time to get the papers through the lender's system - getting the loans through underwriting and then getting documentation to the title companies.  It's like they are trying to do the work with fewer people, which means the fewer people are going to put your papers in higher and higher piles that take longer to get to.
• And they keep thinking up new things faster than we can add them to our What to Expect list! 
  

We used to have to deal with these situations all the time before about the mid-1990's.  All lenders were a pain, but it didn't seem like a pain at the time because we were totally used to it. 

And yeah, they expect to get picky, picky, picky!  And trust me, it will still be easier than when I was a new agent and had to walk through the snow for miles to hand deliver the extra documentation!

I have some clients who are looking for a great condo or coop downtown.  I've found some good possibilities and my clients are adding things that they come across on the Internet.

Most of their finds are already under contract or settled.  But there was one that, while not on the MRIS was on a FSBO site. 

There was a description and contact information.

But wait!

It said to call Camille.  I dialed the number then I noticed the little warning that Camille is on the national "Do Not Call" register, and any agent who calls her is subject to a gigantic fine. 

Hang up!  Fast!

OK.  There's also an email option.  But when I tried that, I got a warning from the Realtor® police that my email set off a red flag.

Now, the price is $550,000 and the remarks said it is firm.  But wait!  That's $75,000 more than anything has sold for in the building.  And it's a third floor walk up, and the fees are so high that they should include dry cleaning and groceries - which ought to include delivery up the three flights of stairs!

And before I could talk my clients out of wanting to see the place, a "friend" of the owner called my number, captured from the caller ID that showed up before I hung up.  And we do have an appointment to see the place tomorrow, and I'm secretly hoping that they hate the place.

If you're thinking about going it alone, selling By Owner, you can do it.  While most people who try give up and eventually list with an agent, you can avoid the major pitfalls -

• Don't overprice your place. 
  
• At a minimum, use a limited service company that will put your listing on the local Multiple Listing Service, and agree to pay any agent who brings in a buyer.
• Be careful about the information you have on your promotional leaflets.  Camille had a couple of serious mistakes on the piece that her "friend" emailed me.  One of them could cost her buyer an extra $8,000 or so.
  
• Don't have an unlicensed "friend" help you sell the place.  They won't know any more than you do!

You might think it's easy.  It's not. 

Now, I don't want your listing.  But you might want to buy a copy of The Irreverent Guide to Real Estate.  There is a whole section on how to do it yourself.

I have a settlement scheduled for Thursday afternoon.  The termite inspector found a few dead guys and a little bit of chewed wood, but it was evidence of a prior infestation.  Since there is no record of a prior treatment, we've got to get a bunch of nasty chemicals pumped into the ground  around the house before Thursday.  And I found out this afternoon.

So I called my friends at Dixon's Pest Control for help.  And sure enough, they saved the day.  Tomorrow they are treating the place - and it's a federal holiday!.  I'll be able to get the last piece of paper to the lender in time to settle at four o'clock.

Like many agents, I sometimes find myself needing last minute termite treatments, sometimes because I just forgot about it.  And Dixon always makes it happen.  Oh, and they do a great job when it's not a last minute request as well.

So if you need a pest inspection or treatment, they can be reached at 202-882-6565 or email them at DixonsPest@hotmail.com.

President Obama is expected to sign the revised home buyer credit some time tomorrow.  And, at the risk of looking a gift horse in the mouth, I'm not sure how I really feel about the whole thing.

With the increased income caps of $125,000 ($225,000 for married couples), more people in the DC area will be able to take advantage of it.  But think about it a minute.  Is the idea to help first time buyers?  Or is it to help sellers?  And who are the sellers? A lot of them are banks selling foreclosed properties.

Um.  Is this one more bank subsidy?

The subsidy is providing an incentive for buyers to go into the market.  With more buyers in the market, home prices are increasing in some areas, and here in Washington, we are starting to see multiple offers in the double digits for well-priced homes.  So the buyer's tax credit may be offset by higher home prices, at least at the lower end of the price spectrum. 

I have to keep in mind that the lower end of our price range in Upper Northwest DC is upper brackets in other parts of the area.  Many neighborhoods east of Rock Creek Park and in other quadrants will benefit.  And the credit will likely benefit condo sellers.  

While this isn't a bad thing for sellers and the buyers who will get the tax credit, remember that a tax credit is $8,000 per transaction being subtracted from the plus side of the

national budget, which is already bursting at the seams.

In the meantime, I will try to do my part to make hay while the credit is in effect.  Hopefully, the credit will benefit Realtors® around the country, and we will pay more in income taxes, unless of course, we make less than the income cap and buy a place.

This mural is on the side of my favorite bookstore, Politics and Prose on Connecticut Avenue.  They have a large collection of both fiction and non-fiction, as well as great historical stuff about Washington, DC's rich history. 

© 2009 Patricia Kennedy. Unless otherwise noted, the content, both written and in pictures, is the property of Patricia Kennedy . If you would like to use this image, please  email me (housepat@mac.com) with your request. I'll almost certianly say yes, and ask only that you provide a link back to my original content as well as an acknowledgment.  The same thing applies to any other material you see posted here on Active Rain or on any of my other blogs.

On my first date with my sweetie, he suggested that we go out to dinner somewhere.  I immediately thought of Yanni's Greek Taverna in Cleveland Park.  It's that kind of a place.

OK, Yanni's isn't really a dive.  It's a no-frills Greek restaurant with tasty food, great Greek wine (at least the white wine) and an owner who looks a bit like a Greek Gerard Depardieu.

And the food is fun. 

They have all the usual appetizers, hummus, tzatziki, taramosalata, grape leaves, or just get the sampler. 

The Greek salad is huge, and my favorite, the Taverna salad (chopped lettuce with lots of fresh dill, feta cheese and dressed with tzatziki) is also big enough to share.

My favorite entrees are the charbroiled squid or octopus, and you're not into eating sea creatures, they have all of the standards as well.

In warm weather, their outdoor cafe is a place where you are sure to see someone you know, either at the next table or walking down Connecticut Avenue. 

Now, the service is a little bit on the flaky side.  A couple of the waiters are known to be occasionally grumpy - no one is going to fawn all over you.  But they do get the food to the table in a reasonable amount of time, and they'll get the order right.  And when it does arrive, I've found it to taste quite wonderful. 

And that's the most important thing, after all.

There will be a neighborhood Halloween party for Crestwood children of all ages this afternoon at "The Point", located at 18th and Shepherd Streets NW. 

It starts at 3 and ends at 4:30.

There will be treats, and contributions of anything with sugar (well, not coffee) from grown neighbors are welcomed.

It could get scary as our little goblins and gouls collect their first candy of the day and check out the woods, that I'm sure will be appropriately decorated for the festivities!  So grab your costume and, if possible, find a child to bring with you. 

It should be fun!

Our office email had an interesting thread today.

Blog Buddie Ed Schneider wrote an email note to colleagues about writing an offer on a house in Mount Pleasant in a twelve-way bidding war.  Then my colleagues began to chime in, one after another, telling war stories of being in double-digit multiple contract situations over the past week. 

In these situations, here are some of the things that people are doing to get the winning offer:

• Having the house pre-inspected so they go in without an inspection contingency
• Crossing out the financing contingency
• Crossing out the appraisal contingency
• including a healthy looking financial information sheet
• Including an obscenely high earnest money check
• Settling at the sellers' convenience
• Including an escalator clause agreeing to top competing offers by at least thousands of dollars with a cap way above the asking price.

Is participating in a bidding war a good idea? To get the house, you have to eliminate every way of getting out of the offer.  So if when you wake up in a panic about three days after you are the winner of your dream house wondering what on earth you were thinking, well too bad!  It'll cost you a bundle to get out of the deal - like that obscenely high earnest money check you wrote!

Earlier in the decade, if you wanted to buy a house, you often didn't have a choice.  But today, there may be options.  And when you do participate, you are doing your part to run up the prices in the market where you plan to buy.

When I'm not the listing agent, I hate bidding wars.  Over the years, my clients won their share, but I sometimes felt a little queasy as I represented them.  More often than not, I tried to work with them to avoid these situations.  How?

• Homes that are look fabulous tend to attract multiples.  Why not use your imagination and go for the ugly and poorly staged (and reasonably priced) stepsister who, with a face lift and tummy tuck could become quite a beauty.
• Homes that are priced below market tend to attract multiple offers, often pushing the sales price to way above market.  It might make sense to look at homes that are priced at or a little above their market value.
• I never ruled out the homes that had been on the market for eons.  Often they are a pain to show, have a resident pit bull, or some other issue that isn't related to the price or quality of the property.

In the early years of the decade, it was really hard to avoid bidding wars, and we felt lucky to be writing an offer on a place with only 4 or 5 other buyers.  But today, in most price ranges and DC area neighborhoods, there is a lot to choose from. 

You need to try to avoid getting caught up in the need to win - and the same thing applies to your agent!  Just because 15 other people are going wacko over a house doesn't mean you have to do it, too!