Buyers Guide to Metro DC Real Estate

What is Planned for Bethesda?

2009-05-07T16:53:00.000-07:00

Woodmont East is starting to take shape!
The Montgomery County Planning Board gave preliminary approvals last Thursday to the JBG Companies, which are now actively moving ahead in plans to develop Woodmont East. The last vacant parcel next to Bethesda Row is going to be host to a large-scale, mixed-use project which will include 208,579 square feet of office space in one tower, and 250 residential units and 9000 square feet of retail space in the other tower. Running between the two will be the much loved Capital Crescent Trail, which will remain open for, at the very least, most of the construction period.

“The trail will come right through the two of them,” said Matt Blocher of JBG. “As far as what happened at the hearing, [the approval] permits us to close the trail for up to five days at a time if there is significant construction procedures. At this point, we’re not sure if we'll need to close it, except for at the end of the job when we have to do the paving.”

Although the formal approval process is nearly completed, several key components need to be worked out before construction can proceed. The JBG Companies have not started to design the building beyond the site plan guidelines required by Montgomery County. Design and permitting is anywhere from 12 to 24 months, and then construction is 24 months.

50 Buyers in the Rain on Sunday

2009-05-05T20:13:00.000-07:00

Even though it rained cats and dogs on Sunday, I had more than 50 people lined up to visit my listing at 12307 Old Canal Road, Potomac, MD. At one point I felt like I was in a wedding reception receiving line as I stood at the door greeting people and shaking hands, and ushering in people lined up outside. I think it is a great house at a really good price. It has 4 bedrooms, 2.5 baths, a family room, huge mud room, lovely deck, updated kitchen with corian counters, a finished basement, one car garage, all for just $599,000. It is in the Richard Montgomery High School district with its international baccalureate program, so it is a very well regarded program. It is even very close to I-270 and the Beltway so that the new buyer can get to Dulles Airport or Baltimore really easily! In addition, it is very close to several orthodox temples so that families can walk to temple on holy days.

I actually ran out of flyers after 2 hours - who would have thought that 40 flyers that said "Just Listed" wouldn't be enough to get through the afternoon!

The good news is that we are working on an offer which would be wonderful for my sellers. The pressure is on me since this is my daughter's hockey coach's house (and the home of a classmate of my daughter!) They both play for the Montgomery Youth Hockey Association - the Montgomery Blue Devils!

Please keep your fingers crossed for me and for all of us that there actually is a spring market and that maybe there is a small rally coming along. I will keep you posted.

If you would like to see the house for yourself - here is a tour link!
http://www.realtourinc.com/index.cfm?action=Tour&ido=27052515

The Views in DC are Monumental!

2009-05-05T20:09:00.000-07:00

For the last 2 weeks I have been showing properties in downtown DC to a couple who want a balcony for morning coffee or a roof terrace for dinner parties. The thing that I have been struck by time and time again as we go around the city is how incredible the views are from so many condos in downtown DC. I step out onto the balcony and turn my head to the right or left - - and there it is - a national landmark. Frequently it is the Washington Monument, peeking over the nearby buildings. Then my thoughts immediately turn to the Fourth of July when I know that the city's night sky will be illuminated with starbursts of color around the Monument.

Sometimes it is the dome of the Capitol (or just the Indian atop the dome) which I can see. Occasionally it is the National Cathedral on Mount St. Albans, gleaming serenely at night, or the Shrine of the Immaculate Conception in NE Washington with its distinctive Byzantine dome.

This afternoon I was on a roof terrace in Columbia Heights with an incredible view of the Washington Monument, the Capitol, and St. Matthews Cathedral (where John Kennedy's funeral service was celebrated in DC). In many ways the Washington cityscape is like any other city, but it is blessed with spectacular landmarks that represent the United States around the world. I am having so much fun showing condos right now!

My advice to buyers right now is that there are some wonderful condos out there with incredible views! Call your realtor or better yet, call me and let me show you the best of my hometown. Along with the spectacular views are the incredible prices coupled with the low interest rates, plentiful choices, motivated sellers, and 1st time buyer credit. For the first time in a long long time a buyer can get an incredible deal on a wonderful condo that promises enjoyment for years to come! Don't miss out on it.

NEW STORE IN BETHESDA

2009-04-19T20:09:00.000-07:00

The Apple Store is Open
After months of secrecy (that really wasn't a secret), the new Apple store has opened on Bethesda Ave in Bethesda. The new space is directly across from the old Apple store, but easily three times as big as the old location. I ducked in to the new location today to retrieve my 15 year old daughter who was hungrily eyeing a new computer - funny how her "old" IBM is suddenly unsalvageable! The store is beautiful, even on a grey rainy day, but I was struck by how empty it seemed. There probably were just as many people in the new store as there had been on similar days in the space across the street, but the new space is so big that people seemed lost in it. The old space which almost crushed everyone into one another created a visual energy level that said to passersby that something exciting was going on inside. How could it not be exciting - look at all those people there. No doubt Bethesda will grow into the new space quickly. Betheda Avenue is enhanced by the sleek storefront which replaced the old Blockbuster, but I miss the congestion of the old location!

For any questions about real estate in Bethesda or Chevy Chase, or if you are planning to relocate to my home town, just give me a call at 240-401-5577 or check out my website, www.homesinchevychasebethesda.com

KENWOOD CHERRY BLOSSOMS

2009-04-19T20:07:00.000-07:00

The long winter is finally coming to a close and the cherry trees exploded last week in a cloud of pale pink and white blossoms. Spring is finally returning to Washington as the peak blooming period for Washington's beloved and oh-so-delicate cherry trees took place in the first week in April. Thousands of tourists and Washingtonians alike took advantage of the warmer weather to stroll around the Tidal Basin or take out a paddleboat. The traffic came to a standstill as tourists dodged between the cars on their way from the Lincoln Memorial or Washington Monument to the Tidal Basin. Fortunately, however, the Tidal Basin is not the only place to enjoy the blossom. Some very smarat tourists have discovered that cherry trees also line the street of Kenwood, just over the District line in nearby Bethesda, MD. The streets of Kenwood are lined with cherry trees, and when in bloom, neighborhood children set up lemonade stands for the visitors who are picknicking on front lawns or among the cars threading their way through the neighbhood. On weekends, even the adjacent streets are full of couples and families taking a stroll in the sunshine. But even if it's slightly congested, it will be nothing compared to downtown DC, and I can guarantee you'll feel as though you're walking through a soft sweet smelling cloud.

If you want to check out real estate in Kenwood, or anywhere else in the DC metro area, just visit my website, www.homesinchevychasebethesda.com

Most Expensive Home Sales in Bethesda/Chevy Chase 1st Quarter 2009

2009-04-19T19:54:00.000-07:00

Top 5 Sales in Bethesda and Chevy Chase, MD in 1st Q 2009 (edit/delete)
The top sale in Bethesda and Chevy Chase, MD in the first quarter of 2009 was a condo at the Somerset , 5630 WISCONSIN AVE #1405, which sold for $3,635,000. This 3 bedroom, 3 bath condo, a FSBO, is 3396 sq ft unit with a monthly condo fee of $2100 and annual taxes of $23,783.

8813 CHALON DR, BETHESDA listed for $3,499,000 and sold for $3.100,000 on January 30. This home was a custom built all brick 6/7 BR,8.5 Ba Colonial with over 9000 fin sq.ft. on 1.3 ac. Some of the amenities included custom woodwork, a 2 story marble foyer, 2 staircases, 5 Fpls, top of line finishes, materials & features throughout.

On January 21st, 6409 GARNETT DR, CHEVY CHASE sold for $2,900,000 (with a list price of $3,100,000.) Sitting on nearly 1/2 an acre, this 12 year old home has 5 bedrooms, 6.5 baths, a pool, 3 car garage and a semi circular drive. It even has an elevator to go to all 3 levels and 6400 square feet of living space.

5320 Wapakoneta sold on March 2, 2009, for $2,680,000, without ever going on the market. This is another custom home with an elevator, copper roof and gutters, slate deck, 3 stone and wood fireplaces, a sun room, gym, wine cellar, theater, and mud room with lockers. 6350 square feet of living space on a 12,000 sq ft lot!

Number 5 in the top sales was another condo at the Somerset - 5630 WISCONSIN AVE #305, CHEVY CHASE- for $2,395,000 (listed and sold). 2710 sq feet, a $1900 a month condo fee, renovated by Frank Bell with high ceilings, cherry hdwd flrs,(din/liv rm) custom builtins,grand liv rm, balcony,sep din rm, study,Chef's kit,Master suite,addit bed/bA 2PK SP/ Amenities inc indr/outdr pools,tennis,clubhse,gym,spa.

Update on Kenwood Forest

2009-04-08T18:40:00.000-07:00

Market Update on Kenwood Forest One of the best neighborhoods in Chevy Chase is Kenwood Forest, a community of nearly 400 townhouses and one level one bedroom or studio condos, created between 1978 and 1980 from an apartment complex built after WWII. While prices have dropped over the last 2 years, buyers still call me frequently asking to be notified whenever a new listing comes on the market. Small wonder since Kenwood Forest townhouses are well designed with at least 2 baths upstairs and a half bath on the 1st floor; the community is very well maintained with amazingly low condo fees; and homeowners can walk to two metros and every imaginable cuisine in the many restaurants of Bethesda. Want more info about Kenwood Forest, just check out www.kenwoodforest.com for floorplans and answers to all your questions.

Basic Statistics - grouped by Status
Provides Basic statistics on listings

Status: ACTIVE (1)
List Price Bedrooms Baths FB HB DOMM DOMP Lot Sqft Yr Built
Min $533,000 3 3 2 1 39 39 - 1980
Max $533,000 3 3 2 1 39 39 - 1980
Avg $533,000 3 3 2 1 39 39 1980
Status: CNTG/NO KO (1)
List Price Bedrooms Baths FB HB DOMM DOMP Lot Sqft Yr Built
Min $568,000 3 3 2 1 6 6 - 1980
Max $568,000 3 3 2 1 6 6 - 1980
Avg $568,000 3 3 2 1 6 6 1980
Status: SOLD (8)
List Price Bedrooms Baths FB HB DOMM DOMP Lot Sqft Yr Built
Min $375,000 2 3 2 1 2 2 - 1977
Max $599,000 3 4 3 2 100 100 - 1982
Avg $524,469 3 3 2 1 25 31 1980
Status: All (10)
List Price Bedrooms Baths FB HB DOMM DOMP Lot Sqft Yr Built
Min $375,000 2 3 2 1 2 2 - 1977
Max $599,000 3 4 3 2 100 100 - 1982
Avg $529,675 3 3 2 1 25 30 1980

HERE COME THE CHERRY BLOSSOMS

2009-04-08T18:37:00.001-07:00

Cherry Trees Are Blooming Again
It happens every year! The 3750 cherry trees around the Tidal Basin burst into bloom and the city explodes with tourists. Most of the trees are Yoshino Cherry, but there also are Kwanzan Cherry, Akebono Cherry, Takesimensis Cherry, Usuzumi Cherry, Weeping Japanese Cherry, Sargent Cherry, Autumn Flowering Cherry, Fugenzo Cherry, Afterglow Cherry, Shirofugen Cherry and Okame Cherry.

In 1912, the people of Japan sent 3,020 cherry trees to the United States as a gift of friendship. The First Lady, Mrs. Taft, and the Viscountess Chinda, wife of the Japanese Ambassador, planted the first two cherry trees on the northern bank of the Tidal Basin. These two original trees are still standing today near the John Paul Jones statue at the south end of 17th Street. Workmen planted the remainder of the trees around the Tidal Basin and East Potomac Park.

Then in 1927 school children created the first festival when they reenacted the earlier tree planting. By 1934 the festival had grown to a three day celebration, and then in 1935 the first Cherry Blossom Queen was crowned. By the early 1990s the festival had become a 2 week celebration.

If you haven't ever had a chance to walk around the Tidal Basin when the cherry blossoms are in bloom, you have missed one of the truly wonderful DC experiences. Families bring small children, grandparents, and family pets for picnics and a leisurely stroll around the Tidal Basin. Another wonderful event is to rent a paddle boat and see the blossoms from a water view.

I hope you get a chance to enjoy the blossoms this year!

A New Look for Southeast DC

2009-03-10T13:07:00.000-07:00

St. Elizabeths Hospital Gets Green Light

After years of delay, DC’s St. Elizabeths Hospital (home to criminally insane people such as John Hinckley) possibly will begin a huge redevelopment effort to become the next headquarters for the Department of Homeland Security (DHS). General Services Administration (GSA) has received two crucial approvals necessary to relocate the DHS to the vacant St. Elizabeths West Campus, in Southeast Washington DC. According to GSA, the only hindrance now is to allocate the funds and select the team.

In December, the agency received a favorable Environmental Impact Statement concerning the project; in January, the National Capital Planning Commission (NCPC) gave approval of the GSA’s master plan for the site. This is the first relocation of a federal government agency east of the Anacostia - and one that paves the way for the District to pursue their own redevelopment initiatives in the surrounding Congress Heights neighborhood.

Since DHS is currently housed in 70 buildings at 40 locations throughout the city, GSA determined a move to St. Elizabeths “to be the only reasonable alternative.” It’s a maneuver that will require the construction and renovation of some 4.65 million square feet of office and shared use space, plus construction of a new Coast Guard headquarters and the requisite parking.

With approvals in hand, the GSA expects actual construction to commence by the third quarter of 2009. While this all seems to be great news for the area, locals fear the project may become a high-security fortress that encourages no interaction with the local economy. Others worry about potential harm to the environment from such a massive build-out. Preservationists are most disturbed about changes to St. Elizabeths historic character.

The NCRC report acknowledges that damage will occur to St. Elizabeths buildings, despite the fact that the West Campus was designated a National Historic Landmark by the Secretary of the Interior in 1990. Since the West Campus is a federally-owned parcel, the District's own, typically stringent Historic Preservation Review Board has no bearing on what happens to the structures on the property.

The Fenty administration, Office of the Deputy Mayor for Planning and Economic Development and Office of Planning also has plans to redevelop the District-controlled Eastern Campus into more than 2 million square feet of mixed-use development.

St. Elizabeths West is to be built in three phases over the next 8 years – the first of which is intended to start by the end of the year. Though the District has yet to commit to a timeline for their development of the campus' eastern flank, McGill says that, “In terms of putting people in place on campus, the Coast Guard is going to be the first tenant. We anticipate that to be far enough along for them to begin moving in in 2013.”

WHY BUY NOW?

2009-03-10T05:04:00.000-07:00

Okay - I admit that I like selling homes, and I like helping people like you find a new home that is that perfect match and a good investment for you. I came across the following remarkable quote from the author, David Bach, which says, "The average homeowner is worth 35 times more than the average renter." If that is true, then that is an amazing statistic!

David Bach advises renters to take action immediately and start saving part of their paycheck every month to help accumulate a down payment. He also encourages renters to borrow 10-20 percent less than what the bank is willing to lend; that way they're only buying as much home as they can afford. (I promise as a point of honor that I never will push you to buy more than that which your comfort level allows.)

The longer you rent, the longer it may take you to eventually get into homeownership. If the market conditions have scared you, perhaps you're not looking at the other side of the coin. Even though you are buying a home for shelter and emotional factors, owning a home still becomes part of your investment portfolio, provides tax benefits, allows you to build equity (it still exists), and, if you buy now, you may get an excellent deal.

However, it is a scary time to jump into the market. As the Washington Post has continually noted, buyers are sitting on the fence, waiting for something to change. In fact, someone recently told me that they were still casually looking for a home, but planning to make a purchase in 6 months since property values were going to continue to go down.

Now, I absolutely agree that property values probably are going to stay soft. Certainly, I don’t expect prices to start to turn up for quite a while – years in fact. However, I don’t agree that waiting is necessarily the best approach.

According to a MarketWatch news article, buying a home now can provide some real negotiating power to request improvements, price reductions, help with closing costs, and more. "People can get a lot of what they need and almost all of what they want today," said Jay Papasan, one of the authors of "Your First Home".

While poor market conditions have created a troubling situation for some homeowners, the downturn has made the buying market ripe for others. The affordability of homes is better than ever. The National Association of Realtors' housing affordability index concluded that homes in December of 2008 were more affordable than at any other point since 1970 (the start of the index). And with numerous foreclosures on the market and prices dropping in many areas, now is a good time to buy. But in order to make your purchase profitable, here are some things you should consider.

How long will you be in the home? Some experts advise that if you are planning to move within a year or even two years, buying may not be the best option because of the expenses associated with moving. However, if you're searching for a place to live for, at least, several years, buying now could be a good choice for you, particularly if you buy a property that has good rental potential in case your plans change unexpectedly.

How much you can afford. Don't let tighter lending regulations scare you off from making a purchase. Instead, understand what you truly can afford. Don't get caught up in buying too much home. In fact, these days, the trend is moving toward smaller homes - simpler living.

Mortgage rates drop to historical low. How much home you can afford is affected by mortgage interest rates that, right now, are highly appealing. Good credit, documenting your income, and a substantial down payment will make you a better candidate for the better mortgage rates.

Freedom to choose. Now, unlike several years ago, the market has a large inventory in many areas. The market time to sell a home has increased which creates a large inventory of homes, everything including new, existing, and foreclosures. Buyers can peruse the market and have the freedom to select the home they really want. If you're interest is in a new home, know that many developers are getting more competitive with their pricing because they also have taken a hit by the ailing economy.

Quality of life. Buying a home can create a higher quality of life, giving you pride of homeownership, and something to enjoy improving and developing over the years.

Tax credit benefit. The American Recovery and Reinvestment Act of 2009 provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1.

There are lots of opportunities out there. Last night I saw a new listing just posted - a 2 bedroom 2 bath condo on 13th St. near M St. It is a foreclosure listed for $339,900 - 1000 sq ft - loft style. A one bedroom in the same building sold in October for $333,000- but was only 680 sq. ft. The foreclosure is being sold as is and is a perfect candidate for a loan that includes renovation financing. (That is the building at the top of this blog.)

So - if you are ready to take advantage of this very interesting market, just give me a call. I will be glad to help you find your dream home.

Last Year When We Used to Be Rich - or the Tale of My Washing Machine

2009-03-03T21:28:00.000-08:00

I have been waiting for over 5 weeks for Sears to repair my one year old washing machine. Sears repair men have come out four different times with various new replacement parts but the washing machine is a big, new, complicated front loading steam washing machine, which can't be fix. These days, nothing is fixed any more - whole panel boards are pulled out and replaced because all our appliances are so computerized that they defy repair. Of course, every time that Sears replaced a component in my washing machine, they either ordered the wrong part or identified and fixed only part of the problem. Hence, the 5 week wait.

Finally yesterday I lost my temper when Sears said my next appointment was scheduled for March 20th. I demanded that they replace my unrepairable machine. Surprisingly, Sear agreed! Score one for the home team. Not only that - they are giving me a full credit for the machine. Now here is the embarassing thing. I had spent a ridiculous amount of money on the now old machine - because I could. I bought the best machine I could - not the best machine for my family of 3 - the machine I had bought before was (1) in retrospect, ridiculously expensive; (2) more "versatile" than I ever needed; and (3) way too complicated.

Now of course, all I want is a basic machine, powered by two gerbils in the basement, so that I know it won't break, but I am using the credit they are giving me to buy my new machine (and I hate to leave money on the table....)

The lesson I take away from this is that the last few years have been an incredible ride of unnecessary consumption - I didn't need a machine that complex or that offered so many bells and whistles that I never used and only broke faster. All of us have been spending our energy acquiring shiny toys rather than things we need. In addition, I really do believe that we no longer make anything in this country, and apparently we can't even fix anything that we rely on. We really are in a sorry state of affairs.

Now that everything is crashing, we have stopped consuming entirely. Instead, we all are pulling in our belts, as we now lurch the other way, afraid to spend on anything. There has got to be a better balance.

So, on behalf of Americans every where, please go out and buy something - something with quality and value. Buy something that should work longer than 3 nanoseconds and stimulates the economy (like a house) or a car or even a good washing machine. Don't be a spendthrift like we have been for the last 10 or 15 years, but don't be so frugal that we stall the economy even more!

We have got to get back to some kind of rational thought process, and where better to start than with a revival of the US real estate market, which is the engine of the US economy. It is filled with great deals for buyers! Go to it!

2009-02-27T19:14:00.001-08:00

In seaside Ocean City, MD, where 91 percent of the homes are vacation home properties, owners were buoyed by the prospect of reduced property taxes after assessed values dropped 36 to 45 percent over the last three years, according to county officials.

Scouting the slopes in Colorado's ski resort areas of Aspen, Beaver Creek, Steamboat and Vail will uncover some home prices in the toniest areas still holding steady, but overall sales are down by about 40 percent, according to a University of Colorado's real estate center.

In Maui, both home prices and sales are down about 25 percent each, according to the island's real estate association.

And don't forget California's resort areas. Home prices in the Golden State are down by 50 percent or more in many locations.

That's only the beginning. Lower prices and less competition are the tip of the iceberg-sized list of factors that make it a good time to consider a vacation home buy.

"In many vacation markets, you can pick up a beach condo or a mountain cabin at a decent price. In some markets, homes are back to 2000 prices," said vacation home guru Christine Karpinski, director of Owner Community for HomeAway.com (an online vacation home rental Web site).

She says a host of market conditions have converged to make buying a second home a smart move right about now.

Take the stock market. Please.
"Stock market woes have always pushed people to look for alternate investments, and real estate is a consistent stronghold," she says. "Yes, home values are down right now but they have always rebounded. I wouldn't recommend buying a second home with the expectation of flipping it for a quick buck, but if you hang onto it for a while -- and better still, turn it into a vacation rental property -- you'll make a nice profit," Karpinski says.

Interest rates are cooperating.
On Dec. 24 Freddie Mac's Primary Mortgage Market Survey revealed 30-year fixed-rate mortgage hadn't been lower since Freddie Mac started the survey in 1971. "Rates have been reasonably low for awhile, following earlier rate cuts toward the beginning of the year. That's good news for anyone who's in the market for a mortgage," Karpinski added.

The pressure of bidding wars is off.
"Housing bubble or no housing bubble, you're not going to get bargain basement prices on, say, a cottage right on the ocean—but if you're willing to buy a few rows back, you'll likely find that prices have fallen substantially," notes Karpinski. "Because houses aren't flying off the shelf, there's less pressure on you to make a quick decision. You can afford to take your time, do your research, and refine your plan," she added.

Vacation rental demand is on.
Economic pressures on travel budgets are forcing those who once traveled abroad to stick closer to home. To further save travel dollars, domestic travelers want the most bang for their getaway bucks. Vacation homes provide all the comforts and options of home (eating in, game rooms, wirelessness, etc.), often at a per-person rate that's cheaper than a hotel.

Karpinski says, "Vacation homes tend to be less expensive than hotel rooms. This is especially true if you're traveling with extended family or a group of friends. Not incidentally, in many areas of the country, rental demand exceeds supply. The Sunshine State (Florida) is a prime example. Buy a vacation home in a market like Cape Coral, Daytona, Destin, Fort Lauderdale, Indian Rocks Beach, Kissimmee, Madeira Beach, Orlando, Panama City Beach, Sanibel Island, West Palm Beach, or Windsor Hills, and you can't lose."

The weak dollar makes American destinations attractive to European travelers and others holding stronger currencies. Also, business travel continues to generate vacation rental income -- especially when foreign business associates come calling.

"It's a far more comfortable option; plus many companies work out deals with homeowners whereby they can get volume discounts," said Karpinski

A vacation home can pay for itself.
When your monthly mortgage payment is less than or equal to one peak week rental, twelve weeks of rental will cover your mortgage payments for the entire year. Other costs, including bills for your phone, power, cable, and association dues, may be paid out of your earnings from approximately five off-week rentals, Karpinski says.

The calculations don't consider the added cost of a property manger you may need if you are not a do-it-yourselfer. Despite the convergence of positive factors pointing to an opportunity to buy a second or vacations home, the fundamentals still apply. Strong credit, low debt, high savings and other assets are a plus

Get Ready for the Spring Market and Landscape that Yard!

2009-02-27T19:05:00.000-08:00

A lot has been written about landscaping yards for curb appeal because buyers see the outside first when they drive up to a home. So it makes sense to make this area as attractive and inviting as possible. Doing that requires thinking about what would really make a property alluring.

You don't have to spend thousands of dollars landscaping a home when you're about ready to put your home on the market. Instead, investing a few hundred dollars could make a huge difference to a buyer. In fact, curb appeal can be the sole reason prospective buyers ever end up entering a home. That's why listing agents will often give their sellers tips to help them fix up their homes. Here are a few things you can do.

1. Color is key.
An attractive landscape usually has color. Many people add flowering plants along the walkway and porch area to create a focal point on the home. The colorful plants add a cheerful welcome and create a memorable landscape. Remember, buyers will generally visit numerous homes in a day, so anything you can do to help them remember yours, in a positive way, will increase the chance of a second visit or even an offer. Colors that grab the most attention are red, orange, and yellow. Cooler colors such as blues and purples help to relax people and can be perfect in meditation gardens.

2. Use colorful mulch.
Maybe you have an area that needs some sort of mulch. You don't have to use the traditional wood chips, which soon deteriorate, to fill in planter boxes or backyard playgrounds. Rubber mulch uses recycled ground rubber that comes in several different colors including green, brown, blue, and cypress. "Make sure any recycled mulch you buy is tread-free. You don't want to have any steel. You don't want to have a lot of tread. You need to look out for that. There are companies that just offer black tires recycle and that's usually going to be pretty dirty," says Paul Parker, owner of San Diego Backyard Adventures.

It can be bought in small quantities such as 40-pound bags or large super sacks. "It will not deteriorate; it's going to last," says Parker. A 40-pound bag will cost approximately $20. Parker adds, "This product is going to look good for literally five or 10 years and, if you're concerned with the short-term, you can put the [mulch] down and it's going to add color and be pleasing to the eye."

An added benefit is that if your home has a backyard playground and you put mulch underneath it instead of wood chips, you gain a higher level of protection and an additional selling point to feature. "It's definitely going to add value because oftentimes if you put a play system on a hard surface there's no safety—but if the [rubber mulch] is already there, it's going to add a lot of value," says Parker.

3. Artificial grass.
Green grass is a beautiful feature in a yard but keeping it green can be a challenge no matter where you live. Using synthetic grass in various areas of your yard can transform an ugly area of dirt into a lush-looking yard. Parker cautions homeowners to choose the grass products carefully, "There are some products out there that are being cheaply made. So [the grass] has a single blade rather than a much thicker weave. You want to make sure the grass you buy has at least a 10-year warranty," says Parker.

4. Illusion of space.
Hide boundaries such as fences and walls. Make them appear boundless by breaking up the line of the wall which can create a closed-off feeling. Paint and the placement of plants help give an illusion of more space. Using tall but thin plants in your yard (as opposed to wide ones) can make a small area look bigger. Curved lines can help soften the look of a home that is constructed with too many straight lines or right angles.

5. Clean up the driveway.
If you've been a do-it-yourselfer with your automobiles (oil changes, etc.) then maybe it shows on your driveway. Oil spills are highly unsightly and will, if not chase away prospective buyers, at least create a memory of your home that you don't want. Clean up the spills and move the parked cars to give buyers a chance to take in the entire residence. Many will snap photos and make notes to review for later. Don't let an oil mark leave a black mark in buyers' minds.

The Silver Lining to Foreclosures

2009-02-22T18:22:00.000-08:00

Yes, I realize that it is hard to put the words "foreclosure"and "silver lining" together in the same sentence. However, while the foreclosure is a tragedy on a personal level for someone or a whole family and a national tragedy for all of us, it does create an opportunity for home ownership for someone who had been priced out of the housing market before.

The Washington Post just did an article in its real estate section on Saturday, February 21, 2009, which described one of the beneficiaries of the housing bust - young couples who couldn't afford to buy a home before. These buyers are helping all of us by taking those vacant houses off the market and turning them into homes again. They are helping to rebuild the economy by buying new furniture and renovation or construction supplies from Loews or Home Depot.

The National Assocation of Realtors said earlier this month that 45 percent of all sales in the fourth quarter of 2008 were distressed sales. Working with foreclosures is not profiting by someone else's misfortune as one ActiveRainer said recently. There are a lot of potential homeowners out there who can benefit from the supply of foreclosed homes, and finally get a chance at that best of American dreams, home ownership. If the financing is done responsibly this time, it can be a great turn around and one in which I am proud to be a part.

If you are interested in find a foreclosure, please give me a call at 240-401-5577 or email me at lise@lisehowe.com.

There's More To Washington Than Politicians!

2009-01-29T11:37:00.000-08:00

Welcome to Washington, which is not just home to Presidents and other politicians, but regular people too. Even if you aren't planning a trip to DC any time soon, I would like to share a little of my hometown. Maybe you will come to Washington some time - and I hope you look me up! It's a great city and I love to tell people a little of its history and some of its quirks. It's like any hometown, but more famous!

You probably saw the concert on Sunday afternoon of the Inaugural weekend in front of the Lincoln memorial. Did you know that there have been other famous concerts and performances there? Here is a little history of the Lincoln Memorial, and maybe some things you don't know.
Of course, the Lincoln memorial is a monument honoring the 16th President of the United States, Abraham Lincoln. Construction was begun in 1914, and its design by the New York architect Henry Bacon is based on a Greek temple with 36 doric columns. Each column represents one state of the Union at the time of Lincoln's death. Inside the 99ft tall marble temple is a large sculpture of Abraham Lincoln seated in a chair. The northern wall contains an inscription of Lincoln's second inaugural speech, the southern wall has the Gettysburg address inscribed. Above the inscription is a mural depicting the angel of truth freeing a slave. The memorial has been used many times as a gathering place for protests and political rallies. The most famous was the March of Washington in 1963, when Martin Luther King delivered his famous speech 'I have a dream' A marked tile on the memorial's steps shows where Dr. King stood. On August 28, 1983, crowds gathered again to mark the 20th Anniversary Mobilization for Jobs, Peace and Freedom, to reflect on progress in gaining civil rights for African Americans and to commit to correcting continuing injustices.
In 1939, the Daughters of the American Revolution refused to allow the African-American Marian Anderson to perform before an integrated audience at the organization's Constitution Hall. At the suggestion of Eleanor Roosevelt, the wife of President Roosevelt, Harold L.Ickes, the Secretary of the Interior, arranged for a performance on the steps of the Lincoln Memorial on Easter Sunday of that year, to a live audience of 70,000, and a nationwide radio audience.
As a girl growing up in DC in the '60s I remember that on summer evenings the National Symphony used to perform on a barge on the Potomac in front of the Lincoln Memorial and crowds would sit on the steps leading down to the river from the traffic circle around the Memorial. Eventually the city could no longer tolerate having one of its major commuter roads, Rock Creek Park, closed to traffic several nights a week, and the concerts stopped.
The memorial is located at the west end of the National Mall. From the top of the stairs in front of the temple, you have a great view of the Washington Monument and the US Capitol. You might remember the view of all the people in the reflecting pool during one of the protest scenes in the movie, "Forest Gump."

There are some great legends about the Lincoln Memorial, but they aren't true!
For instance, people claim that Robert E. Lee's face is carved onto the back of Lincoln's statue, looking back across the Potomac at the Custis Lee Mansion in Arlington Cemetary.
Another popular legend is that Lincoln is shown using sign language to represent his initials, with his left hand shaped to form an "A" and his right hand to form an "L". The National Park Service denies both stories, calling them urban legends.
But, there really are stalactites growing under the Memorial in the "basement." 20 years ago I took a n evening tour of the Lincoln memorial and its stalactites. The tour was fun, but they have cancelled it for secuirty reasons!
So the next time you see a picture of Washington, I hope you will put the city on your to do list, and plan a trip with your family. I would love to show you around!

Posted by Lise Howe on 01/27/2009 10:20 PM

DID YOU GET THE MESSAGE?

2008-12-27T16:32:00.000-08:00

Did You Get The Message?

HOME INVENTORIES ARE AT AN ALL TIME HIGH!

NOW is the TIME to BUY a home.

HOME PRICES ARE AT AN ALL TIME LOW!

NOW is the TIME to BUY a home.

SELLERS ARE MOTIVATED TO SELL!

NOW is the TIME to BUY a home.

INTEREST RATES ARE AT AN ALL TIME LOW!

NOW is the TIME to BUY a home.

THERE IS AN ABUNDANCE OF MORTGAGE LOAN PROGRAMS AVAILABLE!

NOW is the TIME to BUY a home.

One of the largest monthly bills that the typical family has in their monthly budget is the Mortgage payment on their home. With home prices and interest rates at the incredible lows that they are RIGHT NOW there could be no better time to buy that home that you have wanted and to get a mortgage payment that will afford you to live a lifestyle that includes some of the enjoyable things that you would like to do in addition to owning a home. Savings in dollars that could be used toward clothing, education, food, entertainment and family vacations.

Low home prices and Low interest rates mean lower than rent mortgage payments. Why rent when you can own your own home? Rent payments are final....when you pay that monthly rent payment it is gone forever. When you make a mortgage payment it is reducing your mortgage balance and building your equity in your home. You also enjoy the tax benefits of deducting your property tax and mortgage interest payments.

With inventories running high there is an abundance of home available for you to choose from. You will be more likely to find the perfect home that suits the needs of you and your family. You might even be able to get that EXTRA room that you have been needing. A place for the kids to have a Playroom or that Home Office that you have been needing. The possibilities are endless.

Home Sellers are not the only ones that are motivated. With the slow down in New Home Starts there are Developers with Lots that they need to remove from there inventory. These lots have been released to sell at reduced prices to Individuals and not just Builders. Your situation may be that you just need to purchase the lot now and build your home later. Or you can select a lot and floorplan and be moving in about 6 months from now. (Just in time to qualify for the First Time Homebuyers Tax Credit deadline of July 1, 2009).

A very important point to remember is that historical what comes down will eventually go back up. It happens in the stock market, it happens at the department store, it happens at the gas tank and it WILL happen in the Real Estate Market. Don't be the one that is looking back and saying " I sure wish I had bought that house when the price was lower and the interest rate was incredible".

DON'T LOOK BACK AND SAY "I didn't get that MEMO"Just give me some insight on what your needs are. What is the best area for us to concentrate on based on your job or a particular school district. What price range do you need to stay in? Not sure? Let's get with the Mortgage Company and find out. How many bedrooms? How many baths? Do you want a basement or prefer walking out ground level? Do you like the idea of living inside a neighborhood or do you prefer more privacy?

Once I have the details I can lay the ground work and get busy researching the market to decide which homes are the best for us to go and preview. It is an EASY process and you will be moving into your new home in no time.

This Holiday Season Seems More Serene!

2008-12-27T15:14:00.000-08:00

I have made it through the cookie exchange, Christmas Eve services, dinner for 12 on Christmas Eve, opening gifts on Christmas morning, dinner for 18 on Christmas night, and my daughter's 15th birthday on the 26th. We sent our son back to New York City today after a mad dash to the train station and now my daughter is off to a Wizards' basketball game with friends. I am exhausted. Thank heavens we didn't try to go away after Christmas like we had originally planned.

When I look back at this holiday season, it seems like one of the best I have ever had. Even though it was hectic, there was a serenity to it that I haven't felt before. Gathering with friends and family mattered more this year. The gifts were smaller, but somehow, they seemed better because there was more thought in them. I gave homemade fruitcake to some friends. We received cookies in exchange. The gifts had more imagination this year than splash. The friends seemed more appreciative to be included in the chaos and joy of our holiday meals. It just seemed nicer.

The Christmas Eve service was really special this year. (I have to say that I am a lapsed Episopalian who frequently only gets to church twice a year - Christmas and Easter). We always go to the early family service and the Christmas pageant never changes. The youngest children are sheep. The next age group are angels, and so they work up through the ranks to shepherds, kings, and finally the wise men and if you are truly lucky to Mary and Joseph. Looking around this year at friends and fellow parishioners I have known for 25 years, I felt so contented to be part of an extended community - Children I have known since they are 5 or 6 are now married with children. Others who were young when we joined the church are now elderly with oxygen bottles! The continuum of life felt good. It is important to know this year that life goes on and we will all survive! The things that really matter are still here, and it seems easier to find them with so much of the fluff gone. This is a Christmas I will cherish and remember because the important things came through so clearly.

Christmas is technically over now. I have already met with a client this morning, written a low ball offer on a short sale, and am getting ready to write another offer on a property that was a short sale last summer, but is.now redone and very attractive. Okay, so that is all in a day's work, because I am a Realtor! I am always delighted to be of service. But even in the midst of the sales activity, there is a glow that still lingers - a sense of connection that I haven't felt in recent years. I hope your holidays were good too. Happy New Year Too!

New Homes are Good Deals!

2008-12-15T16:40:00.000-08:00

Okay, so we all know that buying a new home isn't as easy as it once was given the state of the economy and all the requirements to get a loan, but there are still excellent deals to be had if you are financially ready to buy a new home.

There are great deals out there being offered by new home builders, who use a number of incentives to entice you to purchase a home in their community including
some significant discounts for select workforces.

Read on to see seven great ways to get an amazing deal on a new construction home.

Included "Bonuses" in Price - For many city dwellers it can be a daunting
thought of moving to the suburbs. One of the biggest concerns is commuting to and from work in the nearest major city. Some builders are now offering a free vehicle lease for as long as 24 months to help you ease into suburban life with a new set of wheels. Other bonuses include free home theater systems, LCD tvs and more.

Slashed Pricing on Move In Ready Homes - Depending on your moving
situation, this is the golden egg of builder incentives. New home builders
build "spec" homes, also known as move in ready homes, to cater to home
buyers who are looking for a home to move into right away. The builder has already built that house and included certain options. If you are able
to move in right away, you will get a good deal this way. The drawback of course is that the builder probably chose mid range options in very neutral colors like light grey or light beige carpet, white kitchen cabinets, and the most popular of granites or very inocuous countertops. If you are someone who gravitates toward strong colors or upgraded finishes, be prepared to sacrifice some of your own tastes for a good buy!

Armed Forces or Civil Workforce Discount - Many home builders, especially
larger builders, offer discounted home pricing to people who serve in the
military or buyers who work in civil service fields like medical, police,
fire and government.

Builder Financing Incentives - National home builders tend to have their
own private financing company that they prefer to do business with as it
streamlines their work flow and makes the home sale easier for the
builder. To help you decide to use their preferred lender builders offer
appliance packages, upgraded flooring and other incentives for using their
lender.

Upgraded Included in the Price of the Home - Builders have a standard
features list that they use to build all of their base models but now
builders are including popular upgrades like granite countertops in the
asking price of their homes. I always encourage buyers to ask for these upgrades as a way of negotiating with the builder. You get a better house and the builder gets something close to his asking price.

Less Expensive Options - The average home buyer spends about 10% of their
total home sale price on upgrades for their new home. To encourage the
purchase of more upgrades builders have lowered the cost on many of their
upgrade packages. For example, you may find hardwood flooring in the
kitchen costs significantly less than it did a few years ago. There are
also more options per upgrade category to choose from.

Reduced Lot Premiums - Builders know home buyers will pay a premium for
their most desirable lots whether its because they have an ocean or
mountain view, private tree-lined backyard or more level terrain. To sell
more homes numerous home builders have reduced the premiums on the most
desirable locations in a community.

As you begin your search for a new construction home your best bet is to
get in touch with a buyer agent (LIKE ME!). Not only will a buyer's agent be able to give you the pros and cons of communities in your area but they will also help you dissect each opportunity and find the best incentives to help you save the most money on your new home purchase.

Have more questions? Please just give me a call at 240-401-5577 or email me at lise@lisehowe.com

Going to An Auction in Chevy Chase

2008-12-14T20:44:00.000-08:00

Last week the Government of Singapore auctioned off a property that it owned in the community of Kenwood Forest in Chevy Chase, MD. The Government of Singapore wasn't selling the property for any obvious reason, other than a desire to divest itself of a property that it had owned for more than 20 years. (The townhouse had been home to a series of diplomats and other people working at their embassy.) According to the listing agent, the Government of Singapore chose to sell the house by auction because that is the way properties are generally sold in Singapore.

The house was available for buyers to preview for several weeks leading up to the auction. The house was empty, clean, and in reasonably good condition, but not updated in the last 5 to 10 years. No granite or stainless, no bowl vanities or tumbled marble in the baths. On the other hand, it was a 3 level townhouse with 3 bedrooms, 2 full baths, 2 half baths, a tablespace kitchen, and a fireplace in a well maintained community just 10 minutes walk from the Bethesda Metro and an even short walk to all the restaurants and shops.

I went to the auction, not as a bidder, but as a realtor. I have been "farming" the Kenwood Forest community for years. I have listed, sold and rented many homes in the community, and consider lots of the residents to be my friends. I have watched the values rise and now fall in Kenwood Forest. so I was very interested in how this auction turned out.

The auction was scheduled to begin at 11 o'clock. When I arrived at 10:45 at the house, it was filled with neighbors, realtors, and potential bidders. You could tell who was bidding by the $5,000 certified checks they were carrying: the auctioneer required a $5,000 check as a condition of bidding. The start of the auction was delayed shortly by the late registration of a last bidder who was waiting for his wife to arrive with the check!

At 11:10, we all tromped out to the courtyard in front of the house and the auctioneer started to explain the process of the auction. Key facts were the 6% buyer premium which applied on top of the final bid price, the requirement that the buyer settle within 30 days, and that the buyer pay all the transfer and recordation taxes, even though these are usually split in Montgomery County between the buyer and the seller. The weather was dry but it was still chilly standing outside, and I am sure I was not the only one who was anxious for auctioneer to stop talking and the auction to begin.

Still we waited while the auctioneer's assistant took pictures of the 60 of us standing outside the property facing the auctioneer standing on the front steps of the townhouse. Finally we were ready to begin!

The auction started with the call for an opening bid. Silence! Nervous giggles. The auctioneer asked for an opening bid of $500,000. More silence. He called for any bids. More silence. I couldn't imagine that sixty people were there and no one would bid. Was everyone there to watch? Finally there was a bid of $400,000. The bids progressed steadily from $400,000 to $425,000, to $450,000 up to $500,000. There were probably 4 people bidding, one of whom already owned 2 properties in Kenwood Forest. At the $500,000 point the auctioneer said that the auction was now real, since the reserve price had been met, and the house would definately be sold now.

At $500,000 the bidding began to slow down. Bids of $1000 more were offered, but the auctioneer said that the least he would accept was a bid of $2500 more. We were down to two bidders, neither of whom seemed eager to buy the property. The time began to drag between the bids with the auctioneer coaxing the two bidders slowly higher. At $522,500, we stalled. A third buyer obviously wanted to jump in but her husband held her back. The auctioneer called for final bids, but there was silence from the group on the lawn. Going, going, gone. The house was sold for $522,500.

Did the buyer get a good buy? Yes! Did the buyer get a great buy beyond the trend of the market? Not so clear. On top of the $522,500, there was the 6% buyer premium and all the transfer and recordation taxes, so it really was closer to a $560,000 sales price. The most recent sale of a similar townhouse in the community was last summer for $599,000, with a contract date in early August and a settlement date 6 weeks ago. Prices have dropped in Montgomery County in the last few weeks as buyers have stalled and sellers find themselves up against the wall.

The good news for the seller was that the property is sold, and quickly. Probably they would have received more money if they had used a realtor and gone the conventional route of putting the house out there for sale, but it might have taken a lot longer, and who knows what the market would be like by then.

In the end, the auction wasn't bad or good. It just is. The Government of Singapore sold the house, and someone new will move in. Not a bad day when you think of it!

Logan Circle - A Neighborhood to Consider

2007-10-25T07:08:00.000-07:00

Local History of Logan Circle

The Logan Circle neighborhood, on and around the circle at the intersection of Vermont Avenue and 13th Street, N.W., is almost a textbook illustration of the beauty of the L’Enfant Plan’s vision for the evolution of the federal city. At the point where a diagonal state-named street crosses the underlying grid pattern of numbered streets, the creation of a large open urban space (the circle itself) is the focus of a graceful residential area. In the case of the Logan Circle historic district, whose late 19th-century character is preserved almost intact, the elegance and simplicity envisioned by L’Enfant and implemented by his successor Andrew Ellicott can be seen today.

This neighborhood, very close to downtown, is a delight for the pedestrian. Almost all the townhouses that line the circle and the streets radiating from it were built between for their prosperous owners between 1875 and 1900 in the Late Victorian and Richardsonian architectural styles. While the houses are varied in detail, displaying a fascinating array of turrets, porticos, and roof lines, their unity of scale and character give Logan Circle a unique charm. Visitors can easily imagine that they have gone back in time to the century before last. The neighborhood was originally very fashionable. After falling on hard times, it is now a hive of revitalization and once again becoming a prized place to live.

A bronze equestrian statue of Union Major General John Logan is in the center of the circle. Logan, who also represented Illinois in the House of Representatives and the Senate, is buried in the Soldiers’ Home National Cemetery. As commander in chief of the veterans’ organization, the Grand Army of the Republic, Logan began the practice of putting flowers on the graves of the Civil War dead, an observance that led to the establishment of May 30th as the national Memorial Day.

South of Logan Circle, at 1318 Vermont Avenue, is the Mary McCleod Bethune Council House, a grand Second Empire house that was the headquarters and sometime home of Mary McCleod Bethune, founder of the National Council of Negro Women. An educator and national political leader, Bethune was one of America’s most influential African American women. The house, a National Park Service site, is now a museum and archives and an important place for studying the history of African American women and the black community.

Logan Today

These days, the Victorian-architecture-filled zone could be called Condo Central, with loft-apartment buildings going up on what seems like every block. And it's no wonder people want to lay down urban roots here: Some of D.C.'s hippest cafes, shops and theaters line 14th Street Northwest and surrounding blocks.

As areas to the west (Dupont Circle, Georgetown) became too pricey and developed, Logan Circle once again became a desirable zone. Neighborhoods to the south, west and north of Dupont Circle were all already well-established at that time, and Logan's close-in location made it an obvious choice for developers.

"Logan Circle remains a trendsetting market due to the smaller boutique-style buildings and location," said Mark Franceski, an analyst for a market research company in Alexandria. Logan's proximity to downtown, Dupont, U Street and the business districts of McPherson Square and K Street make it attractive to professionals looking to live close to work. Residents and business owners also cite the appeal of the Whole Foods grocery on P Street Northwest, which has become an ad-hoc town center for everyone from taxi drivers to moms and kids on play dates. Plus there are countless other city-cool shops and restaurants.

But architecture may be what truly sets the area apart. Late 19th-century town houses, the finest of which ring the circle itself, now mingle with modernist lofts and early 20th-century storefronts. "Washington, as a city, just has such great bones," said Scott Pannick, president of Metropolis Development, the company behind the condo complexes the Metropole and the Cooper Lewis, two hot properties on P Street Northwest between 14th and 15th streets. "Much of the original architecture is intact, and restoring the existing buildings has been paramount in the neighborhood's renaissance."

This rampant gentrification -- and Logan Circle's increasing prestige as an address -- has blurred the boundaries of the neighborhood, especially to the east. But the Logan Circle Community Association (LCCA) continues to define the neighborhood as the area between 10th and 16th streets Northwest, running north-south from S to O streets.

And condos, many of them quite luxe, have been a big part of Logan's rebirth. Take the Metropole, Metropolis Development's latest venture at 1515 15th St. Northwest. Metropolis has designed other area buildings, but the Metropole may be the showiest, with its illuminated glass tower rising at 15th and P streets Northwest. Among the amenities: an interior courtyard, full concierge service, the on-site, state-of-the-art gym Vida, and guest suites for out-of-town friends and family of residents. Developers hope these perks make the building stand apart from its many, many neighbors.

"It's a changing marketplace. Buyers today are more able to differentiate between different developers and different products," said Pannick. "Originally, the focus was on the fact that 14th Street was a bit edgy and cool. Now we're dealing with a more sophisticated marketplace. Every unit has got to have a 'wow' factor."

And like many newer projects, the Metropole trends away from the loft apartments which originally appeared in the neighborhood, said Pannick. "We're headed toward more traditional layouts. What we're going to go toward is buildings that have smaller units and more amenities -- more public spaces, things like that. We think people are a little past the loft concept." Metropole offers 630- to 2,400-square-foot units, which are available as single- and two-story floor plans. Prices began in the $300s, with the first units delivering in 2007.

Other showy developments include The Matrix (1529 14th St. NW), a rehabbed building from the Holladay Corporation that will bring more retail to 14th Street on its lower floors. Residents get to live behind a historic facade in 44 units with ultra-mod appliances and floor plans. Prices range from the $400s to the $700s for 700- to 1,700-square-foot flats. For even fewer neighbors, Logan Row, in the 1400 block of 11th Street Northwest, boasts only 28 units in a complex that merges renovated historic buildings with new construction.

One of the first companies to start putting up condo complexes in Logan in the early 1990s was Abdo Development. "It had a real stigma attached to it," said Jim Abdo, president and CEO of Abdo. "Logan Circle was an area of significant transition, and there wasn't a lot of confidence in this area. My vision was to re-establish the housing and the retail corridor."

Abdo, in particular, began renovating the vacant space already available, mostly repurposing early 20th-century townhouses and apartment buildings. Condo projects included The Willison (1425 Rhode Island Ave. NW) and The Ashton and The Dalton (both at 14th and Q streets Northwest). Like a sign of things to come, ragged, often-decrepit buildings morphed into sleek lofts.

These redos were all part of an attempt to balance historic preservation with the growing market for urban living spaces fed by yuppies, empty nesters and gay couples. "We didn't want to just build residences or businesses; we wanted to build communities," said Abdo.

"Gentrification doesn't have to be an evil thing. It can be a good thing provided there's an inclusive approach. That means jobs and opportunities for small businesses."

This ability to renovate "found space," as Studio Theatre Artistic Director Joy Zinoman calls it, is why her then-upstart theater company moved into a shabby warehouse on Church Street in 1980, converting it from a hot-dog cart storage center into a performance space.
These days, Studio is far from fledgling. Its sleek, glass-walled four-theater venue in a former auto showroom sits at the corner of 14th and P streets Northwest, a kind of cultural capstone to the ever-more-artsy neighborhood. "We're a deeply urban theater and the building is a reflection of that," said Zinoman.

Zinoman and her fellow theater folks were really the first organizations back on the block after the 1960s riots. Groups that made their homes here included the Woolly Mammoth Theatre Company (now relocated to Penn Quarter) and the now-defunct, fringy Source Theatre. The latter's black-box building at 1835 14th St. NW was recently saved from being converted into a pool hall by the Cultural Development Corporation, a local arts advocacy group that plans to run it as a performance center.

Living in a zone that mingles fresh complexes with older businesses and architecture appeals to many residents. "There are a lot of other neighborhoods that are being developed and coming up, but this neighborhood is particularly appealing because of the new mixed with old," said Philippa Hughes, 37, who bought a condo in the Metro complex on Church Street in December 2003, moving in when the building was finished in late 2004.

That melting-pot feel also means home-decor businesses are opening up almost as fast as developers put up "for sale" signs. Last year, Kimberly Hessler relocated her Reston, Va.-based Asian import store, Dragonfly Design and Decor, to a former auto repair shop between 14th and 15th streets Northwest on Church Street. In a space with exposed brick walls and a showy skylight, Hessler shows off Qing dynasty altar tables and gilded Buddhas, which she said look swell in the surrounding modern lofts. "We get a lot of condo buyers, because our pieces mix so well with the contemporary homes," said Hessler, who, like many Logan Circle business owners, also lives in the area. "Most likely, you're going to furnish your place with modern, sleek designs. When you incorporate an older piece, it provides some warmth and an element of surprise," said Hessler. "What's unique about Logan is that there's always a new restaurant or new boutique open, so you can stay in a four- or five-block radius and meet all your needs."

Other businesses thriving here include P Street's Logan Hardware (1416 P St. NW) and a slew of art galleries. Annie Gawlak, owner of G Fine Arts (1515 14th St. NW), set up shop here in 2001 because she saw so much else going on. "The neighborhood is vibrant, and there's a real love for the arts community," she said. Her gallery's stock features young, cutting-edge artists, which seems on target for this neighborhood.

Some days, Logan Circle also feels like one of the final frontiers for mom-and-pop shops, albeit sophisticated ones. Besides Hessler's Zen den, residents enjoy browsing at Candida Mannozzi's travel bookstore, Candida's World of Books (1541 14th St. NW) and Reincarnations (1401 14th St. NW), a furniture store with dramatic, yet well-priced chaises, gilded mirrors and statues. At the edge of the neighborhood, between R and S streets Northwest, one of the city's most vibrant blocks holds Garden District (1801 14th St. NW), an urban plant store, Muléh (1831 14th St. NW), a chic clothing and furniture shop, and several other businesses.

Many residents and business owners point to the addition of Whole Foods in December 2000 as the moment when Logan turned from edgy to livable. "Before we opened the store, that whole corridor was quite dark at night. It was almost as if the neighborhood had two different profiles, one during the day and one at night," said Sarah Kenney, Director of Marketing for the Mid-Atlantic region for Whole Foods. "The first day we opened, that night, the streets were literally full of people. People want to be able to walk out at 9 at night and get an ice cream cone."

New residents are attracted to Whole Foods for its stock of French wines and Maryland organic veggies, but longtime Logan and Dupont Circle dwellers themselves helped bring the cavernous gourmet grocer to the area. "They went out of their way to reach out to Whole Foods, to tell the story of Dupont and Logan, and whenever there is a group that is that passionate, it's hard to say no," said Kenney.

This cohesive community spirit is no accident: The Logan Circle Community Association is one of the most active residents groups in the city. In addition to art events and Memorial Day celebrations -- Maj. Gen. Logan was the grandfather of the holiday -- the association organizes popular summertime jazz concerts in Logan Circle.

Overall, the personal investment of this diverse group makes the neighborhood a warmer place to live. "Everyone knows each other, and you always run into people," said Jennifer Trock, President of the LCCA (and neighborhood condo owner). "It's such a changing neighborhood and people are invested in it. You have a real opportunity here to be part of where the neighborhood is going."

And look for continuing changes and additions to the neighborhood. "As soon as you get over [to 14th Street Northwest], you can build up to seven stories," said Trock. "It has to do with the zoning of 14th Street, really, the street is zoned for 7,500 square feet and very few buildings are that tall. If I say to somebody 'I'm looking at land on 14th Street,' they'll say, 'Oh, isn't that already all built up?' And my response to that is that we've barely started."

Hughes also detected the area's strong civic spirit when she moved into the area. "I figured Logan would be the typical urban environment where you don't even say hello to people in the elevator," she said. "It turns out it's really easy to get involved on the condo boards or organizing activities on our street."

"The people who move here are very like-minded," said Hughes. "We're people who appreciate art and good food, those kinds of things."

A Neighborhood to Check Out - SHAW

2007-10-25T06:55:00.000-07:00

Shaw is a rapidly gentrifying neighborhood in central Washington, D.C., roughly bounded by M Street NW to the south; New Jersey Avenue NW to the east; Florida Avenue NW to the north; and 11th Street NW to the west--although there is a westward panhandle that extends to 16th Street between S Street and Florida Avenue. Shaw once included the areas of smaller neighborhoods, such as Logan Circle and Truxton Circle, but in recent years those neighborhoods have grown into their own and become separate from Shaw.

History

Shaw grew out of freed slave encampments in the rural outskirts of Washington City. It was named after Civil War Colonel Robert Gould Shaw, the commander of the 54th Massachusetts Volunteer Infantry.

Shaw thrived in the late 19th and early 20th centuries as the pre-Harlem center of African-American intellectual and cultural life. Howard Theological Seminary received its first matriculates in 1866; by 1925, Professor Alain Locke was advancing the idea of "The New Negro," and Langston Hughes was descending from Le Droit Park to hear the "sad songs" of 7th Street. The most famous Shaw native to emerge from this period—sometimes called the Black Renaissance of DC—was Duke Ellington.

Following the assassination of the Reverend Martin Luther King, Jr., on April 4, 1968, riots erupted in many D.C. neighborhoods, including Shaw, Columbia Heights, and the H Street NE Corridor. The 1968 Washington, D.C. riots marked the beginning of a decline in population and development that would condemn much of the inner city to a generation of economic decay.

Shaw, like Logan Circle, is a mostly residential neighborhood of 19th century Victorian row houses. The allure of these houses, Shaw's central location, and the booming D.C. housing market have begun to transform Shaw through gentrification. According to Census records from 1970, 92% of Shaw's residents were black; in 2000, 56% were black. Shaw's notable place in African American history has made the recent influx of affluent professionals particularly controversial.

Infrastructure and landmarks

Shaw is served by the Mt. Vernon Square Metro, Shaw/Howard Univ and U St/African-Amer Civil War Memorial/Cardozo Green Line Metro stations.

Shaw's landmarks include Ben's Chili Bowl, the Lincoln Theatre, and the north portion of the Washington Convention Center.

AGENCY IN A NUTSHELL

2007-10-24T06:44:00.000-07:00

UNDERSTANDING AGENCY
Agency is a legal relationship between a principal (client/buyer) and an agent (the broker and salesperson) that arises when the principal delegates authority to the agent to perform acts on the principal’s behalf and the agent consents to the delegation. An agency agreement should be in the form of a written contract.

Types of Agency-Brokerage Relationships With Consumers

Seller’s agent.Also known as a listing agent, a seller’s agent is hired by and represents the seller. All fiduciary duties are owed to the seller. The agency relationship usually is evidenced by a listing contract. Once a property is listed, the seller’s agent either can attempt to sell it or, in addition, may be permitted by the seller to cooperate with another licensee who will attempt to find a suitable buyer for the property, A seller’s agent negotiates the best possible price and terms for the seller. The agent represents the seller's best interest throughout the transaction.

Buyer’s agent. A real estate licensee is hired by a prospective buyer as an agent to find an acceptable property for purchase and to negotiate the best possible price and terms for the buyer. The agent represents the buyer's best interest throughout the transaction. The buyer can pay the agent directly through a negotiated fee, or the buyer’s agent may be paid by the seller or a commission split with the listing agent. In this area, buyers agents typically are paid at settlement through the commission split, so you get great representation without having to dig into your pocket!

Subagent. A cooperating agent who works for a listing broker-salesperson in the sale of a property. The subagent represents the seller, and therefore, works with the buyer, but not for the buyer. The subagent owes fiduciary duties to the listing broker and to the seller. Although subagents can’t assist the buyer in any way that would be detrimental to their client the seller, a buyer-customer working with a subagent can expect the subagent to treat him honestly. A subagent generally may provide the buyer with certain types of services, often called ministerial services, which are factually based and do not require the licensee’s judgment.

Disclosed dual agent. Dual agency is a relationship in which the brokerage represents both the buyer and the seller in the same real estate transaction. Dual agency relationships don’t carry with them all of the traditional fiduciary duties to the clients; instead, dual agents owe limited fiduciary duties. The fiduciary duty of loyalty to the client is limited. This focuses on confidentially and the negotiation process. Because of the potential for conflicts of interest in a dual agency relationship, it’s vital that all parties to the dual agency relationship give their informed consent. In many states, this must be in writing. Disclosed dual agency is legal in most states.

Make Your Offer the One They Take

2007-10-24T04:55:00.000-07:00

Developing a Winning Offer

Some factors to consider in setting an offer price are:The listing price of the property. Do your own competitive market analysis to determine if the listing price is reasonable.
The real estate market. Determine recent trends in the sale price vs. listing price of properties to determine the market’s strength.
The condition of the property. Estimate the cost to repair deferred maintenance on the property and to replace major components that are near the end of their useful lives. These costs should be deducted from the offer price if the seller is not going to remedy defects before closing.

TIP: For a quick reference list of how long different home components and major appliances last and how much they cost to replace, local vendors or manufacturers’ Web sites are good sources of information.

Ways to Have Your Offer Come Out on Top

Get your Realtor to analyze the comparables with you before formulating your offer. Your Realtor will explain to the sellers during the negotiation why seemingly similar neighborhoods have different average prices and which homes are true comparables.

Assess the strength of the market.Strengthen your negotiating position by knowing which markets are active, which are overbuilt, and which are taking off.

Ask your agent to find out what the seller expects from the transaction—a quick closing, a top-dollar offer, and a big downpayment. Then tailor your offer to those needs.

Determine what's included in the price. Who will pay for repairs, closing costs, commissions? What fixtures will be sold with the house?

Work with your agent to get the paperwork in order. Be sure the offer is typed, clearly presented, and includes all necessary addenda, buyer qualification information, and signatures. A cover letter from you humanizes the offer.

Talk with your agent about what she/he thinks is the best way to present the offer. Salespeople disagree as to whether offers should be presented in person or electronically. Some like the personal touch, while others prefer to keep things at arm's length.

TIP: Many people find it harder to reject a fact-to-face offer. Personal encounters also allow you to work out areas of contention more quickly.Buyer's Checklist

The following items are typically contained in a purchase contract (but study each contract carefully for variations before signing):

Personal property to be included or excluded from the sale
Who pays for required repairs or retrofits
The buyers’ inspection rights
The sellers’ disclosure obligations
The sellers’ obligation to maintain the property
What the seller warrants about the property
What happens if either party doesn’t comply with the contract
What date the sellers will vacate and contingencies for noncompliance

5 Things to Know Before You Negotiate

1. What is the highest price you are willing to pay?

2. What negotiating points will you give in on and what is each worth?

3. Are you prepared to walk away from the deal?

4. What contingencies must you have as part of the deal?

5. What impact does time play for either you or the sellers?

WHAT ARE BUYERS LOOKING FOR?

2007-10-24T04:53:00.000-07:00

Market Intelligence

What Buyers Want
Highlights from NAR's Profile of Buyers' Home Feature Preferences

by Dr. Paul C. Bishop, Harika “Anna” Barlett and Jessica Lautz, NAR Survey Research

Times have changed for home sellers, and the housing market isn't what it was. Sales of both existing and new homes are down, price appreciation has fallen from its breakneck, double-digit pace of a year ago, and the supply of homes available for sale – housing inventory – is at record levels. The mortgage market is still recovering from the subprime fallout. While owners trying to sell their homes in the current housing "doldrums" certainly face challenges, home buyers benefit from an ample supply of homes and the opportunity to find homes with features and amenities that most closely match their needs.

So how can sellers "attract" buyers to their homes. One way is to make sure that homes listed for sale offer those potential buyers the features that they really want. NAR’s recent 2007 Profile of Buyers’ Home Feature Preferences looks at those home features considered important during the search process, the presence of those desired features in the homes purchased, and in those cases when the home purchased lacks particular features, home buyers’ willingness to pay extra for them. Below we present highlights from the Profile that address those issues.

Home Features Desired Most by Potential Buyers
The most desired home feature was central air conditioning, ranked “very important” by nearly three quarters of home buyers. An oversized (two-or-more car) garage, a walk-in closet in the master bedroom, and a backyard or play area were also rated as “very important” by at least half of recent home buyers.

Repeat vs. First-time Buyers. The preference for certain home features can differ based on whether a potential buyer is a repeat buyer or a first-time home purchaser. Repeat buyers placed more importance than first-time buyers on almost all home features examined, with the exception of proximity to work and a backyard or play area. The features repeat buyers were much more likely to desire than he first-time buyers included oversized garages, a walk-in-closet in the master bedroom and a separate shower in the master bathroom. Buyers of new homes were also more likely than buyers of previously owned homes to consider most home features, including many luxury items, to be very important.

Regional and Location Differences. The importance buyers place on particular home features also varies by region. For example, while buyers in all regions rated central air conditioning as one of the top two most important features, it was very important to over 90 percent of buyers in the South and over 80 percent in the Midwest, compared to 41 percent in the Northeast, and 59 percent in the West. Buyers in the South also placed higher importance on newly built homes, porches, single-level homes and monitored security systems. Buyers in the West had a higher-than-average preference for lawn sprinkler systems, fencing, patios, and oversized garages. Fully or partially finished basements were more important in the Midwest, and reserved parking in the Northeast.

Buyers' preferences also differ by the location of the home purchased, mostly based on the neighborhood features. Those who purchased a home in an urban area had a higher-than-average preference for being near public transportation, reserved parking, and proximity to work. Suburban home buyers indicated a higher preference for oversized garages, walk-in closets, and new homes. Buyers in rural areas were more likely than average to prefer wooded lots and a water treatment or filtration system.

Preferences by Age. Home feature preferences also vary by age of the home buyer. For example, among older buyers, features such as a walk-in-closet in the master bedroom and a separate shower enclosure in the master bathroom were more often viewed as very important; and a backyard or play area, and proximity to work and schools were less often considered as important among these buyers. Buyers over 44 years old had a higher preference for single-level homes than the younger buyers. Buyers aged 55 or older were more interested in homes that are cable or satellite TV ready, equipped with a lawn sprinkler system, and on a flat lot. Buyers over 64 years were more likely to prefer sidewalks and an air filtration system, and less likely to prefer fencing and porches.

Features in the Home Actually Purchased
Home buyers consider many features as important when searching for a home, but they sometimes need to make compromises when actually purchasing a property. Among recent home buyers who considered each of the features examined as somewhat or very important, the home purchased most likely included cable-satellite TV readiness, high speed Internet access, central air conditioning, an oversized garage, and neighborhood features such as proximity to schools, to a park or playground, and to shopping. Among the desired features least likely to be present in the home purchased were an intercom system, a water treatment or filtration system, homes with handicap accessibility features, and extra-wide doorways.

Repeat vs. First-time Buyers. There are differences on what features buyers comprised on depending on whether they are repeat purchasers or those buying their first home. Repeat buyers were more likely to purchase a home with most of their preferred features, including many luxury items. Compared to first-time buyers, they compromised most on neighborhood features, such as proximity to work, a park or playground, and public transportation. Buyers of new homes did not make many compromises on the size or luxury items, but mostly on neighborhood features.

Regional Differences. The likelihood that a preferred feature is present in the home purchased varies by region. Desired features much more likely to be present by region included intercom systems, hardwood floors, bay windows, skylights, proximity to public transportation and reserved parking in the Northeast; a water treatment or filtration system, an intercom system, and homes more than 100 years old in the Midwest; a tennis court, being near or on a golf court, porches, and a monitored
security system in the South; and lawn sprinkler systems and fencing in the West. Among the desired features, the ones much less likely to be present in homes purchased in each region compared to the national average were lawn sprinkler systems, fencing, patios, and new homes in the Northeast; lawn sprinkler systems, fencing, and monitored security systems in the Midwest; proximity to public transportation, fully or partially finished basements, and intercom systems in the South; and usable/ accessible attics, wooded lots/trees, and whirlpool baths in the West.

Age of Buyer. Recent home buyers aged 25 to 44 purchased a home with most of the features they desired. As the age of the buyer increased, the likelihood of compromises increased, particularly among those aged 65 and over, and especially on neighborhood features. For example, less than 50 percent
of buyers 65 or older purchased a single level home, despite ranking this feature as important.

“Will Pay for AC”
Home buyers value some features so much that they reported being willing to pay more for a home if that feature was present. The most frequently reported features for which buyers would be willing to pay more included central air conditioning, walk-in closets, hardwood floors, high-end kitchen appliances, oversized garages, and patios. The least frequently mentioned features for which buyers would pay extra included homes that were more than 100 years old, a tennis court, a sloping lot, being on or near golf course, and handicap accessibility. Home buyers who purchased a home without a valued feature were willing to pay the most for a waterfront property, typically an extra $4,760; a home less than 10 years old, typically an extra $3,800; and fully or partially finished basement, typically an extra $2,970.

Among buyers who purchased homes below and above the median price, the rank ordering of the features for which they were willing to pay extra changed little. However, there were significant differences in the amounts that buyers would typically pay for some of the features. For example, buyers of homes below and above the median price were willing to pay the most for a waterfront property; but among those with homes priced below the median, the typical extra amount was $3,360 and $8,240 among those homes priced above the median. For a cul-de-sac lot, and proximity to shopping or public transportation, those buyers with above median priced homes were willing to pay almost twice as much as those with homes below the median price. For features including central vacuum, high-speed Internet access, and intercom system, there was not much difference in the extra amount these two groups of buyer were willing to pay.

What Does It Mean to REALTORS® and Their Clients
The information provided in the Profile provides insights into the priorities of home buyers. For instance, sellers considering putting their home on the market may want to consider what “buyer preferred” features might be added to the home before it is listed. By so doing, the home could attract more buyer traffic, and likely increase the sales price. REALTORS® who are working with clients to sell homes can more accurately determine the “value” of each home feature and thus determine a proper listing price. The data and analysis in the 2007 Profile of Buyers’ Home Feature Preferences is another tool for real estate professionals to use as they market their clients' homes to potential buyers.

The 2007 NAR Profile of Buyers’ Home Feature Preferences is based on a survey conducted earlier this year. The 39-question survey questionnaire was mailed to a random national sample of 40,000 home buyers who purchased a home between late 2005 and early 2007. The survey gathered information about those features that buyers considered very important when searching for a home and whether or not those features were present in the home they actually purchased

Are you scared? Is it okay to buy in this market?

2007-10-23T19:48:00.000-07:00

The Long View

by Lawrence Yun, Vice President, NAR Research

“How much have real estate investors lost due to the housing market bust?” That was the (highly loaded) question posed to me recently by a producer of one of the major evening news programs. The show wanted to run a story about the "pains" being felt in the market.

Hmm. Well, exactly how much real pain are we talking about? Let's look at a couple of examples. An investor who bought a property in Las Vegas five years ago would be ahead by $150,000; up $200,000 in Miami. The average investor nationwide – up $54,000. Only the recent buyers (flippers) who bought last year in few specific markets would have encountered a loss.

Not All Losses Are Created Equal

I’m not discounting the discomfort of those who lost big, especially lenders and hedge funds who had large exposures to subprime loans. Investors in homebuilder stocks have certainly experienced pains. But nearly all real estate investors who have a reasonable holding period are doing quite fine. Some of these fortunate buyers who got into the market several years ago will still consider a modest give back as a loss without considering the large gains reaped during the housing boom.

That’s the nature of the human mind. A gain of $190,000 in Miami feels like a $10,000 loss considering that the gain had been $200,000.

A Home is Not a Stock Certificate -- Thank God!

Foreclosures are rising and construction workers are being laid off. However, consumers and homeowners who are in it for the long-term are once again coming out well ahead. Because of the power of leveraging, $10,000 used for a down payment on a typically priced home in the United States at a typical appreciation rate of 5 percent will return $110,000 after 10 years. The same $10,000 invested in the stock market appreciating 10 percent annually will result in $23,600.

No wonder the data from the Federal Reserve show consistent results year-after-year of the staggering difference in net worth between homeowners and renters. A typical homeowner had $184,400 in net worth versus only $4,000 for a typical renter.

The Spooky Thing

The lack of buyer confidence to enter the market has been the one principal reason in holding back home sales. Many would-be buyers are spooked of a possible home price decline. And the media is fueling that fear. Some of the most popular market gurus who offer their advice on television and other media say so.

Caution is in order, however.

As a recent Barron’s article pointed out, stock picks made by one such expert actually underperformed the market.

Opportunities to Seize

It’s also important to point out that times of crisis often turn out to have been times of opportunity in hindsight. With over four million net new job additions in the past two years– the time frame during which home sales have steadily fallen – a significant pent-up demand has developed.
Home sales and home prices will be higher in 2008 compared to 2007. And, as with any investment, look longer term. Those investing in a home and keeping it for a typical holding period of six to ten years will likely see their investment pay off; those homes will have been a good investment.

As for stocks, they are not the enemy of real estate. Many REALTORS® own stocks. (So do many economists!) The latest NAR research on vacation-home buyers reveals that many of them rely on stock market wealth to fund that second-home purchase. Stocks and real estate both promote the importance of private ownership.

Where to Throw the Darts

Of course, with housing figures down, all eyes at looking to the stock market. Indeed, the stock market is at an all-time high. That's terrific in and of itself and reflects confidence in the U.S. economic outlook. Just be careful about taking specific advice from any hyper-emotional TV personality. Darts should not be thrown at publicity posters of any "mad money" host. You’ll likely have just as good of luck by reining in your emotions (and money) and throwing them randomly on the financial pages of your newspaper for your next stock pickings.