Woodbridge Virginia Real Estate News

Real Estate News About Buying Or Selling Homes In Woodbridge Virginia

You Can Make Your Home Burglar-Proof With A Few Easy Steps

I Know Lots Of Folks Here In Woodbridge And They Know Me

None Of The Folks I Know Have Mentioned Burglaries In Their Neighborhood, But It Could Happen

I moved to Lake Ridge And The Western Side Of Prince William County In 1983.

Over the past 27 years, I've felt safe from crime, surrounded by neighbors who watch out for each other.

I've taken plenty of 11 PM walks around the neighborhood wearing my "Neighborhood Watch" vest, carrying a flashlight.

In my personal experience as a Woodbridge/Westridge/Lake Ridge resident, I have enjoyed feeling safe any time, day or night.

The few crimes, about which I have heard, have been daytime burglaries, by crooks snatching jewels, cash, credit card statements, and other valuables that may fit in a pouch when they exit the house; your 63" flat screen TV will likely be left untouched.    

There are some really great tips here:
THIRTEEN THINGS YOUR BURGLAR WON'T TELL YOU: I am particularly interested in the part about the wasp spray...

1. Of course I look familiar. I was here just last week cleaning your carpets, painting your shutters, or delivering your new refrigerator.
  
2. Hey, thanks for letting me use the bathroom when I was working in your yard last week. While I was in there, I unlatched the back window to make my return a little easier.
  
3. Love those flowers. That tells me you have taste... and taste means there are nice things inside. Those yard toys your kids leave out always make me wonder what type of gaming system they have.
  
4. Yes, I really do look for newspapers piled up on the driveway. And I might leave a pizza flyer in your front door to see how long it takes you to remove it..
  
5. If it snows while you're out of town, get a neighbor to create car and foot tracks into the house. Virgin drifts in the driveway are a dead giveaway. 
  
6. If decorative glass is part of your front entrance, don't let your alarm company install the control pad where I can see if it's set. That makes it too easy.
  
7. A good security company alarms the window over the sink. And the windows on the second floor, which often access the master bedroom - and your jewelry. It's not a bad idea to put motion detectors up there too.
  
8. It's raining, you're fumbling with your umbrella, and you forget to lock your door - understandable. But understand this: I don't take a day off because of bad weather.
  
9. I always knock first. If you answer, I'll ask for directions somewhere or offer to clean your gutters. (Don't take me up on it.)
  
10. Do you really think I won't look in your sock drawer? I always check dresser drawers, the bedside table, and the medicine cabinet.
  
11. Here's a helpful hint: I almost never go into kids' rooms.
  
12. You're right: I won't have enough time to break into that safe where you keep your valuables. But if it's not bolted down, I'll take it with me.
  
13. A loud TV or radio can be a better deterrent than the best alarm system . If you're reluctant to leave your TV on while you're out of town, you can buy a $35 device that works on a timer and simulates the flickering glow of a real television. (Find it at http://www.faketv.com/)
  
  
8 MORE THINGS A BURGLAR WON'T TELL YOU:
  
1. Sometimes, I carry a clipboard. Sometimes, I dress like a lawn guy and carry a rake. I do my best to never, ever look like a crook. 
  
2. The two things I hate most: loud dogs and nosy neighbors.
  
3. I'll break a window to get in, even if it makes a little noise. If your neighbor hears one loud sound, he'll stop what he's doing and wait to hear it again. If he doesn't hear it again, he'll just go back to what he was doing. It's human nature.
  
4. I'm not complaining, but why would you pay all that money for a fancy alarm system and leave your house without setting it?
   
5. I love looking in your windows. I'm looking for signs that you're home, and for flat screen TVs or gaming systems I'd like. I'll drive or walk through your neighborhood at night, before you close the blinds, just to pick my targets.
  
6. Avoid announcing your vacation on your Facebook page. It's easier than you think to look up your address.
  
7. To you, leaving that window open just a crack during the day is a way to let in a little fresh air. To me, it's an invitation.
  
8. If you don't answer when I knock, I try the door. Occasionally, I hit the jackpot and walk right in. 
    
Sources: Convicted burglars in North Carolina , Oregon , California , and Kentucky ; security consultant Chris McGoey, who runs http://www.crimedoctor.com/ and Richard T. Wright, a criminology professor at the University of Missouri-St. Louis, who interviewed 105 burglars for his book Burglars on the Job
  
Protection for you and your home:
If you don't have a gun, here's a more humane way to wreck someone's evil plans for you.  (I guess I can get rid of the baseball bat.):
  
WASP SPRAY   
A friend who is a receptionist in a church in a high risk area was concerned about someone coming into theoffice on Monday to rob them when they were counting the collection. She asked the local police department about using pepper spray and they recommended to her that she get a can of wasp spray instead.
  
The wasp spray, they told her, can shoot up to twenty feet away and is a lot more accurate, while with the pepper spray, they have to get too close to you and could overpower you. The wasp spray temporarily blinds an attacker until they get to the hospital for an antidote. She keeps a can on her desk in the office and it doesn't attract attention from people like a can of pepper spray would. She also keeps one nearby at home for home protection. Thought this was interesting and might be of use. 
  
FROM ANOTHER SOURCE
  
On the heels of a break in and beating that left an elderly woman in Toledo dead, self defense experts have a tip that could save your life.
  
Val Glinka teaches self-defense to students at Sylvania Southview High School . For decades, he's suggested putting a can of wasp and hornet spray near your door or bed.
  
Glinka says, "This is better than anything I can teach them."
  
Glinka considers it inexpensive, easy to find, and more effective than mace or pepper spray. The cans typically shoot 20 to 30 feet; so if someone tries to break into your home, Glinka says, "spray the culprit in the eyes". It's a tip he's given to students for decades. It's also one he wants everyone to hear. If you're looking for protection, Glinka says look to the spray.
  
"That's going to give you a chance to call the police; maybe get out."
  
Maybe even save a life.
Please share this with all the people in your life. 

 

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

Equal Housing Opportunity

 

   

Finding A Home Has Never Been Easier..

My team scrubbs the MLS Database for you daily.

   Note: Lists below were updated on 10/2/09

 

Click Here	This Week's Bank Owned & Foreclosure List in Prince William County Virginia
Click Here	This Week's Approved Short Sale List- Close Before December 01,2009!
Click Here	This Week's "Regular Owner Resale Homes"- Aswesome Opportunities
Click Here	This Week's Immediate Inventory "New Homes:" - Awesome Incentives!
Click Here	This Week's Waterfront Homes-  "Click here to hear Erick's message"

Click Here	This Week's Golf Course Homes in Woodbridge Virginia- "Erick Says....."
Click Here	This is a list of home currently available under 10 years old.
Click Here	You Want To Look At High End and Acreage Homes
Click Here	"Do You Need To Sell By Short Sale? Learn More"
Click Here	It's Time To Sell...Learn More About How We Work

Has the Prince William County, Virginia Real Estate Market Stabilized?  Well ... READ MORE

Remember You Still Have Time To Secure A Home Before the $8000 Tax Incentive Program ends on December 01, 2009.

 We have Buyer Agents who can help you find the right home.

 Don't See What Your Looking For Just Call us 703-590-2252

 

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

 

 

 

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

      

Woodbridge  Home Buyers, It's Time For Me To Sit You Down, Look You In The Eye, And Have "The Talk"

Welcome To The CCW (Cold Cruel World) Of Woodbridge Homes For Sale

Woodbridge Real Estate News You Can Use

Okay folks, listen up!

All of you who are thinking about buying a home in Woodbridge VA priced above $450,000, stand over HERE.

All of you who are thinking about buying a Woodbridge Home priced below $450,000, stand over THERE.

Okay now that you are in your respecitve herds, here is a quick word for you folks shopping for something over $450,000... You have lots of options, you can get a lot of home for your $$, so be happy.  You are now dismissed.  Exit the room through the double doors in the back.

Now, everyone shopping for a home priced between $450,000 and $250,000, move over HERE. 

Those who are looking for a home priced below $250,000 stay where you are.

Good.

Okay, you folks in the $250K - $450K range listen up.  You are entering a battle zone as you move forward with your home search.  You will find some good options.  Go for homes where nice folks live who are selling simply because they want to, and they have the means to sell. 

 

 Forget about short sales... we call short sales "Fake Listings" because national reports show that only 5% of homes selling by short sale, THAT GET A BONA FIDE CONTRACT TO SELL, actually go to settlement.  The other 95% of short sales THAT GET A BONA FIDE CONTRACT TO SELL fall through becaue the bank holding the note does not do short sales, or the owners and agent do not meet the terms of the short sale in a timely manner. 

Foreclosures MAY be a good option, depending upon condition.  The majority of foreclosed homes need paint and carpet.  Some need appliances.  They all need a professional cleaning.  However, the bank has clear title, most of the title work is done, so you may get from contract to closing in less than 30 days.

Be prepared for 2-5 other offers from other buyers if the house is in good condition.  Ignore the list price cuz you'll probably need to bid $10,000 - $30,000 over list price to beat   Look over the recent sales for similar homes in the same area.   Offer your highest, "No Regrets" bid. 

Forget about getting the house, as folks say, "without paying too much".  Know that a bidder who is your competition has likely bid on another house and lost because they were outbid.  They learned their lesson the hard way.  You can count on them to bid a price equal to, or higher than the highest recent sale.  If you REALLY want the house, take the highest recent sale, and bid above that value.

You folks looking between $250K and $450K may now leave.  Use the double doors at the back of the room. Drive safely.

Now, it's time for "The Talk" with all y'all (all y'all... that's the Texan in me) who are shopping for a home priced below $250,000.

Be prepared for a horrible experience.  It will not be fun.  You're gonna hate the process.  The bulk of the homes are vacant foreclosures, with filthy carpet, walls with scratches, crayon scribbles, and holes in the drywall. 

Many of the houses smell like a sewage plant because the owner/bank turned off the water and the power months ago.  Over time, the water in the traps beneath the sinks dry out, thereby allowing sewer gas to fill the house with nasty stench.

     

You will see basements converted to multiple bedrooms, not built to building codes, without building permits.  The workmanship is disgusting.

The folks took the appliances when the bank foreclosed.  Other folks will take everything they can sell on Craig's List... every light fixture, every sink, every faucet, shower head, kitchen counter tops, kitchen cabinets, furnace and water heater.  Even so, 4-5 contractors will outbid each other to get the house.

There are ten (10) buyers for every habitable house under $250,000.  How do I know?  Simple.  Each time we write an offer on behalf of a client who is shopping under $250,000, we find out that the winning bid was chosen from 10-12 bids on that house.

I have watched sadly as my clients shopping under $250K lose house after house because they were outbid.  They cried, got angry, moped, and repeated over and over, "How can this be?"

I recently helped a nice lady go for a townhouse in Bristow listed by a bank for $235,000.  Recent sales for similar homes in the area SOLD for $250K-$285K.  This was her fourth home on which she bid, she lost the other 3 homes to higher bids.

She is still at the stage in the process where she fears over-paying more than fears losing the house.  You who are following in her footsteps will likely be tempted to do the same.

She offerd $245,000.  The listing agent said the house got twelve (12) bids, and her bid was second to the lowest.

The loan officer said her income qualifies her to buy up to $650,000 with only 25% of her monthly income going toward the $650,000 loan payment.  If the nice lady would push her price up to $450,000, she could get out of the madness in the $250,000 price range, and still pay less than 20% of her income toward the house payment.  She also has enough assets to pay cash for a $450,000 house and barely dent her bank account.

Get tough.  Forget what Dad said about bidding 30% below list price.  If you wish to pay no more than $220,000 for a house, don't look at anything priced above $199,000.  You need room over the price that will allow you to bid, without exceeding your limit.

Bottom line... do all you can to move your buying power out of the $200,000 - $450,000 range, so you can get a lovely home, on a quiet street, in good condition, without the "Auction Madness".

Did this post tickle your curiosity?  CLICK HERE to send your question.  Answers shall be sent by email ONLY, unless you specifically ask for phone call.

You can get computerized, automatic, customized FREE ALERTS by email when new listings of homes that fit your wish-list are posted on the Realtor's MLS.  You'll find out about the newest listings before most Realtors know about them.

That way you'll know when your dream home hits the market.

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

 

 

 

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

      

Woodbridge Virginia Homes For Sale $400K-$800K A Good Value

Forget Foreclosures And Short Sales Hassles

Owners Are Listing Homes For Sale With Realtors In Pristine Condition And At Market Prices

Back in May, 2008, owner-occupied homes for sale in Woodbridge Virginia were scarce as home owners waited on the sidelines to see if market values would bounce back.

Some sellers HAVE TO list and sell their homes this year due to company transfers, career changes, folks retiring to Arizona, etc.

Owners are listing their homes AT market prices because they have accepted the fact that their home will not sell at a 2005 price.  You can get a FREE LIST of lovely owner-occupied homes for sale, with photos, addresses, and descriptions when you click the link at the end of this insightful blog post.

BUYERS: GO AFTER OWNER-OCCUPIED HOMES FIRST

If you do not have a home to sell, and you want to buy a home that is in pristine condition, you have lots of owner-occupied homes in model-home condition from which to choose.  When you get your FREE LIST of homes, study the listings, sift and sort, then drive by them on your own. 

When you see a home you want to see inside, you can get a no-hassle private showing, WITHOUT THE LISTING AGENT PRESENT TO PRESSURE YOU, OR ASK YOU ANNOYING QUESTIONS.

Sellers: Sell Your Home Fast, For A Great Price, With The Fewest Hassles And Move Up

If you HAVE a home to sell, know that Realtors are counseling their buyers to go for owner-occupied homes, not foreclosures, nor short sales.

Owner-occupied homes like yours sell faster because the buyer gets a lovely home, at a fair price, without the hassles associated with foreclosures or short sales.

You can get a FREE, over-the-net computerized market value for your present home by clicking a link at the end of this incredibly magnificent blog post.

Your home will sell fast, so you can move up to a bigger home at an affordable price.

Foreclosures Are Not Bargains

Foreclosures are typically in shabby shape, in need of paint and carpet just to make the house habitable.

Your owner-occupied home, that is clean, in good condition, and loved will attract buyers away from foreclosures.  Foreclosures will make your home SELL FASTER.

What about homes for sale by short sale?

Buying homes offered as short sales is risky, they take a LONG TIME to close, and seller's lender has the right to change the terms at the last minute, costing you time and hassle.

In summary, all you home buyers focus on owner-occupied homes for sale that are not pending short sale or foreclosure.  Stick with owner-occupied homes.  Avoid the short sales and stinky foreclosures.  CLICK HERE NOW for your FREE list of owner-occupied homes for sale $400-$800K around Woodbridge.

You can get a private tour of any home on the list, without the listing agent present to pressure you, or ask you annoying questions.  Call Patty at 703-590-2252 to arrange a time.

All you folks who want to sell your home, and move up to a larger home, your home will sell fast, for market value, and with fewest hassles. SELLERS CLICK HERE NOW to get a FREE, no-hassle, over-the-net value for your home today.

Did this post tickle your curiosity?  CLICK HERE to send your question.  Answers shall be sent by email ONLY, unless you specifically ask for phone call.

You can get computerized, automatic, customized FREE ALERTS by email when new listings of homes that fit your wish-list are posted on the Realtor's MLS.  You'll find out about the newest listings before most Realtors know about them.

That way you'll know when your dream home hits the market.

 

 

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

 

 

 

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

      

Making Money Selling Homes For Sale In Woodbridge

Get A Real Estate License And Make A Fortune... Right???

A lovely lady said to me that she will get her real estate license and make some "quick money" so she can remodel her kitchen, and put a pool in her back yard.

"How much will your kitchen and pool cost?"

"All I need is $50,000 and I'll have a new kitchen and pool by summer," she replied.

"What's your business plan," I asked.

"My what?"

"How do you plan to make $50,000 by summer?"

"Well," she said, "all I need to do is sell three houses."

"Thre houses?  How did you figure that out?"

"Well, 'somebody' told me that the average sale price for Prince William County homes is $280,000.  So I'll ask the company I join to 'give me' three houses to sell, times 6% commission, and that will give me the $50,000 I need."

"Oh."

"Yeah," she said, "Real estate agents make big money.  I see Realtors ads where they brag about how they make a million dollars a years and get into the "Million Dollar Club".

"Are you open to coaching?"

"Sure, I'd love to pick your brain."

"First, the Million Dollar Club just means they sold two million dollars worth of property last year, they didn't MAKE a million dollar income."

"Are you sure?".  She looked puzzled.

"I've been selling real estate for a living for 23 years, I've owned real estate companies, so I think I got that down."

I went on, "Also, your business plan has a few flaws you'll need to fix."

Here is the short version of my response to her business plan.

1. The "company" you join does not give you listings to sell.  You have to find your own business... find your own customers... companies do not give out leads.

2. You will not get paid 6% of the selling price for a house you sell.  You  and your company get 3%.  That's because in a normal sale, one agent/company works for the seller, while the buyer has his/her own agent/company. 

So if a seller pays 6% commission, half goes to the listing company, and the other half goes to the selling company.

3. You sell three $280,000 houses, the gross commission to the company for the three sales is $25,200.  You don't get the $25,200, the company gets it.

4. As a rookie agent, you split the commission with the company 50/50, meaning you get paid 50%.  The company has to make money to stay in business.

So you get $12,600 for selling three $280,000 houses.

5. Now deduct FICA, federal income tax and state income tax.  She is married to a big-buck-makin' Beltway Bandit, so they pay taxes at the top bracket.

Gross earnings: $12,600
Less 15% FICA: ($1,890)
Less 36% fed  : ($4,536)
Less 5% state : ( $630)

Net income      : $5,544

Yep, sell three $280,000 and you'll earn a whopping $5,544 after taxes.

Her mouth dropped open so far, flies were flying in and around her molars.

Oh, and remember, you'll pay $2,000+ annual dues combined to the National Association of Realtors, the Virginia Association of Realtors, Prince William Association of Realtors.

MLS dues, a subscription fee to use the Multiple Listing Service is $144 per month.

Advertising your listings??? YOU pay for ads, the company doesn't pay for ads.

She said nothing... for a long time, until she finally asked, "Are you SURE?"

"Look dear, I've sold over 2,000 homes over 23 years in real estate.  I've owned a couple of real estate companies.  I think I've got it down by now."

 

Did this post tickle your curiosity?  CLICK HERE to send your question.  Answers shall be sent by email ONLY, unless you specifically ask for phone call.

You can get computerized, automatic, customized FREE ALERTS by email when new listings of homes that fit your wish-list are posted on the Realtor's MLS.  You'll find out about the newest listings before most Realtors know about them.

That way you'll know when your dream home hits the market.

 

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

 

 

 

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

Equal Housing Opportunity

 

 

  

 

Woodbridge VirginiaReal Estate Loan Limit For VA Loans Raised From $730,000 To $812,500 With Zero Down

Woodbridge Virginia Homes Priced Up To $800,000 Range Now Zero Down For VA Buyers

If you served in the armed forces, and you are elegible for Veterans benefits, you can get your dream home with Zero Down up to $812,500.

1. 
   
   
   With your VA loan, and a skilled buyer agent who knows VA guidelines inside-out, you could:
   Buy with no down payment
   Pay no closing costs whatsoever
   Walk out of closing with keys to your new home, and a check for thousands of dollars in your pocket.

Did this post tickle your curiosity?  CLICK HERE to send your question.  Answers shall be sent by email ONLY, unless you specifically ask for phone call.

You can get computerized, automatic, customized FREE ALERTS by email when new listings of homes that fit your wish-list are posted on the Realtor's MLS.  You'll find out about the newest listings before most Realtors know about them.

                           That way you'll know when your dream home hits the market.

                 

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

 

 

 

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

Equal Housing Opportunity

Woodbridge And Manassas Virginia Real Estate For Sale Bouncing Back

Still Sitting On The Fence Waiting For The Bottom Of The Market? 

Gentle reader, if you are a fan of this blog, you have perhaps noticed my series of reports month after month, quoting fast sales and falling inventory in 2008.

I have no opinion about the market direction.

I faithfully report the facts.

"The facts ma'am, just the facts please."  - Joe Friday, from the TV series DRAGNET

Here is more evidence from Forbes Magazine, a feature in a national publication reporting the rapid turn-around we are experiencing in the local real estate market.

To those who have tried to debate the facts I have reported, I give you a hearty NANNY-NANNY-BOO-BOO!!  See, I told you so.

Sign up for FREE ALERTS on our Website  at http://erickandcompany.com/search-for-homes.asp

That way you'll never miss the house you really need.

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 Erick Blackwelder or Peggy James Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252 (Office) to list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

 

Woodbridge Virginia Real Estate By Short Sale

What Is A Short Sale?

You've seen in the media about the housing "meltdown."  

Northern Virginia has not been hit as much as the rest of the country.

However, that does not mean that there are not some good buys for astute buyers.

Yes, you will find more foreclosures for sale than we've seen in a while.

You will also notice that a "new" type of sale is happening in Woodbridge Virginia homes for sale during this market correction... the short sale.

I put the word "new" in quotes because short sales have been around as long as the standard 30-year mortgage has existed.  However, during our current market correction, thousands of short sales are being listed for sale.

So, what exactly is a "short sale?"

A short sale means the homeowner owes more on their existing home loan than the property is worth in today's market.

The bank that holds the note has agreed to "settle" with the homeowner for less than is owed on the property.

For example, a home that sold at the peak of the boom in 2005 for $825,000 was purchased by Harry Homeowner with a five percent down payment, and the remaining $783,750 financed by a home loan.

Truth be told, Harry Homeowner actually qualified for a $500,000 fixed rate loan, but Larry the loan rep convinced Harry to use a "Cash-Flow Adjustable Rate Mortgage (ARM)", tied to the British LIBOR index, with a start rate of just 2%.

The cash-flow ARM was scheduled to "reset" (adjust) in three years, to the LIBOR index in 2008.

Harry was concerned that his loan rate, and house payment, could double or triple in 2008 if the LIBOR index was significantly higher, and he said so to Larry the loan rep.

Larry said, "No problem Harry... if the LIBOR rate goes that high, just refinance to a different loan you can afford.  Besides, you said you were up for a promotion at work, with a substantial pay raise, and I showed you that you could qualify for a loan of $750,000 at your new pay plan".

Just refinance if your rate and payment doubles or triples...

Fast forward to 2008...

Harry's home loan company notifies Harry that his rate and payment have doubled because the LIBOR index in 2008 was substantially higher than the 2005 rate.

Moreover, Harry's promotion with the big pay raise was put on hold because his company lost a big contract to a competitor.

So Harry dashes to the phone, calls Larry the loan rep to refinance to a more affordable loan program, but Larry's loan company went out of business in 2007, and Larry is back at the Ford dealer, selling cars again.

Harry calls one of the big-name mortgage companies for help. 

Thankfully, Harry gets an experienced loan rep on the phone, a nice lady with 20+ years in the business, Lucy the loan rep.

Lucy listens to Harry explain his situation.

Then she patiently, carefully explains to Harry that he has three GIGANTIC obstacles, road blocks, that destroy any chance for Harry to refinance to a more affordable home loan.

First, Harry's $783,000 loan is a "Jumbo" loan that exceeds the $730,000 conforming loan limit.  The cold, cruel fact is that there are NO jumbo loans offered by any bank, anywhere. 

So he needs to pay down his loan balance to $730,000 with $53,000 CASH right now to get a conforming loan.  Plus, Harry will need $12,775 to pay closing costs for the refinance.  Altogether, Harry needs to plop down $62,775 to refinance, and he doesn't have it.

Second, the house must appraise for $803,000 because the bank will lend up to 90% of appraised value; Harry needs to have a 10% equity position to qualify for the loan.

That's a problem right now...

Harry's appraisal will be based on the sale prices of homes in his neighborhood that have sold in the past 90 days.

Five homes have sold and closed around Harry's house in the past 90 days, but the average price for the homes sold is $625,000.

That's good news, and bad news.

The good news is that home prices in Harry's neighborhood show that the market has turned back up, and home values are slowly inching up again from the market "bottom" in 2007 when homes in his neighborhood sold in the $570,000 - $595,000 range.

(All you folks who plan to sit on the fence, waiting to buy a house when you think the market has hit "bottom", and you proclaim that the "bottom" has not yet been reached, well, the numbers and statistics say "you missed it"... that ship has already sailed.)

 

 

 

 

So Lucy the loan rep calculates 90% of $625,000 and tells Harry that he can only refinance $562,500, far below Harry's $783,000 loan.  Harry would need to pay down his loan balance with $202,500 cash from his own pocket, and have an extra $9,844 to pay closing costs to refinance the remaining loan balance.

Harry has $300,000 cash invested in his 401K retirement plan, but were he to cash in his 401K, he would owe the IRS a $30,000 penalty, AND pay income tax now on the money he would withdraw.

Third, Harry will not qualify for a $562,500 fixed-rate loan.... remember, his income in 2005 only qualified Harry for a $500,000 loan.  Harry didn't get the big pay raise, and rates on loans are higher.

So Harry's only remaining options would be to walk away from his house and loan, let it go to foreclosure, or ask his lender to let him sell the house with a short sale.

Remember, Harry cannot afford his new house payment now that his LIBOR loan has reset and doubled his payment.

 In my next post, you will find out why the experienced Realtors call short sales "Fake Listings".

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Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

 

 

 

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

Equal Housing Opportunity

Don't Sell Your Home When You Buy Your Next Home In Woodbridge....  Keep It And Rent It

Over the years, and decades I have been selling homes in Woodbridge Virginia, I have encouraged folks to keep the home they have now as an investment property, and move forward to their next home.

Woodbridge real estate has been a strong and stable investment over the long haul.

I have not yet met anyone who got burned owning a home in Woodbridge for 20+ years.

For example, I have helped a ton of military families buy homes early in Northern Virginia. 

Young officers who choose to make their military service a career can bet their bottom dollar that they will rotate in and out of the area as they advance.

Three or more tours of duty in this area over a 20+ year military career is a common scenario.

Why would you sell when you know you'll be back?  Keep it and rent it to someone when you rotate to a field assignment, and you'll have a home waiting for you when you come back to the DC area.

Moreover, getting back on topic, you might need a larger home when you come back to DC. 

Well, if you keep your first home rented, you can qualify for a mortgage you can use to buy a larger home as your family grows and changes.

 

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

 

 

 

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

Equal Housing Opportunity

Woodbridge Virginia Foreclosed Homes And Short-Sales Can Make You Miserable, Angry, Frustrated

I can think of no way to explain the pain and suffering that is involved with a home purchase that involves a home owned by a bank or mortgage company.

Words don't exist that could demonstrate to you how unorganized, inefficient and ridiculous the procedure is for helping you buy bank-owned property, or homes offer as short-sales.

You may become charmed by the fabulous price of a home you find on the Internet that is on the market as a short-sale. 

Only 5% of short-sales actually sell, and close, and the new owners move in. 

Nationally, 95% of homes offered as short-sales that indeed get a bona fide offer that is accepted by the owner as a contract do not go to settlement.  At some point in the process, the bank or mortgage company that holds the existing note blows the deal.

Only 5% of the homes offered as short sales, that actually get a bona fide offer, accepted by the seller, in fact go to settlement. 

How can that be?

Before I interview a prospective seller about selling their house by short-sale, I do my homework on the bank that holds the mortgage(s) on the property.

You may be shocked to find out that most banks do not do short-sales. 

The list of banks that will cooperate with sellers on a short-sale is a very short list indeed.

Next, I work with the owner to obtain a short-sale approval letter before we list the house for sale.

Sadly, traditional, ordinary real estate sales people do not obtain a short-sale approval because they think that all banks will take a short sale.  Nope.  No.  No way.

Moreover, buyer agents often show any and every short sale to their buyers without calling the listing agent to ask if the short-sale is approved.

You have a 95% chance of writing an offer on a property that will never sell by short-sale if your agent does not pre-screen houses you will see to delete the short-sales that will not be approved by the bank.

On top of that, you will probably have a home inspection on the as-is property and maybe sink in a couple hundred bucks for an appraisal while the bank is watching dust collect on your contract package.

The bank might have even agreed to the purchase price but then changed its mind because an unexpected fee popped up on the settlement statement and they didn't like it, so they bump up the sale price, with no regard for your contract at a specific price.

Just because you have a contract with a bank or mortgage company, don't expect your price and terms to be carved in stone.

Bank Asset Management in-boxes are piled with contracts involving short sales.

Many trees have sacrificed their lives for those piles.

Weeks and months go by with no answer to the question, "Mr. Lender, can I take the burden of this property off of your hands?"

It often takes weeks and months just to get your "package" assigned to an Asset Manager.

That Asset Manager typically has two or three hundred other files on his/her desk.

Banks have NO systems in place whatsoever to process the glut of short sales and foreclosures.

No two banks do anything alike.

Listing agents working with a short sale are consumed with phone call after phone call to the lender, while fielding calls from buyer agents asking for status.  If you are the buyer, you chewed off all of your fingernails weeks ago.

By chance, I strolled by an agent's desk at the office as she made the following phone call.  "Hello, this is Julie Glutz. I am calling in reference to the contract on 123 Blauman Street, file number 255-6555E-LCR2890.  I have left a message on numerous voice mailboxes every day for the past three weeks and I'm just trying to get some indication that the package was received, and who may be handling the package."

After a while it almost sounded like a jilted lover trying to get their boyfriend back. I just need to talk to you, please call me back. Why won't you call me?

At least she got voicemail for a particular person.

Often, the voicemail boxes are full so you can't even leave a message.

Employees at the banks also get shifted around and you end up losing your bank contact or they just quit because they're sick of it, too.

My pal who works in the banking business told me that the Asset Management departments are the place where errant bank employees are sent as punishment when they make a grave error so bad that firing them would be too kind, too merciful.

While all of these shenanigans are going on at the bank, people that desperately need to sell their home are suffering and people that desperately need to be in a home are losing patience.

Many times a buyer is months into the transaction and they just give up.

Then the Asset Manager calls months later and say, "We approve the sale."

In my business, I have an assistant who calls each listing offered as a short-sale to find out if the listing agant has an "Approval Letter" before we show the home to a buyer.  "No", and we don't show the home; "Yes" and we ask for a copy of the letter by fax or email before we show the home.

If the house has gone all the way through foreclosure, my assistant will find out the name of the bank.

If that bank has a record of responding to purchase offers quickly, and operating efficiently, we show it.

However, if the bank has a record of taking a week (or two, or three) to respond to each offer, counter-offer, contingency, we let the buyer choose whether or not they would be willing to ride-out the 90+ days 

They're just ignoring the elephant in the room.

First, they could make more efforts to try to keep people in their home by adjusting their rate or principal.

It has to be cheaper to discount a mortgage or the interest rate than it is to have a buyer default on their loan.

When did banks quit running their business like a business?

If you think the short sales and foreclosures happening to others aren't affecting you, think twice.

The only way to market recovery is to get excessive inventory, the short sales and foreclosures off the market and sold.

It's doable.

The banks are just prolonging the whole sordid mess by dragging out this blood bath with their inefficiency.

What the mortgage industry needs is a hero like a CEO of a bank that "gets it," will take ownership of the situation, man up and champion the industry by creating systems and developing a standard.

Buyer beware.

If you need help buying a foreclosed home in Prince William County I am here to help you.           

Just type out a comment or give me a call....ERICK

 

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

 

 

 

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

Equal Housing Opportunity