Many homebuyers will encounter a slew of new and sometimes confusing terminology when embarking on the journey of purchasing a home. It is times like these that a trusted Realtor or real estate agent can help wade through the technical jargon and provide translations that make sense to you.

Just recently, what is traditionally called the “master bedroom” has been replaced with the term “owner bedroom” in floor plans for residential real estate. Some other terms now used for this room are “owner’s suite” or “owner’s bedroom” and even “mastre bedroom.” Why the change? It was thought that the imagery evoked by the term “master” – male vs. female, master vs. slave – is not conducive to how the industry wants to portray properties.

In fact, six out of 10 large Washington-area homebuilders have made this switch and are already employing the new term throughout all steps of operations.

Recalling a few lawsuits over the phrase “master,” Randy Creaser, owner of Washington, D.C.’s Creaser/O’Brien Architects PC, said his company stopped using the term in home design in the early 1990s. In high-end listings, the term “owner’s bedroom” is most frequently used, according to Brian Block, managing broker for McLean’s RE/MAX Allegiance.

The refreshed terminology carries with it a sense of luxury and sophistication, which fit particularly well in larger homes with large bedrooms, sitting areas, walk-in closets, large bathrooms, and more. And in the current market, where even small distinctions can make all the difference, slight changes like this can add a bit of gusto to a seller’s toolkit in attracting potential buyers.

Often times, Realtors and real estate agents will hear clients note skepticism at some of the more vague terminology used in home listings. This, in turn, makes it all the more important for buyers to team up with a trusted agent who maintains strong ties to area Realtors. These agents will have the experience to prepare potential buyers with the right questions and information to put them in the right mindset when attending open houses and evaluating multiple properties.

By Becky Wang, Realtor, Metrostar Realty

For over a decade, I’ve enjoyed helping the homebuyers of Northern Virginia employ inventive strategies to find their dream homes. My job as a real estate agent is not just about selling homes, but also about building strong and lasting relationships with Realtors and clients. This has been a great way to support the growth of strong communities throughout the region, by finding the best “fits” while also searching for good deals.

This is an especially exciting time for NoVa, as the housing market continues to rebound and the overall economy steadily continues to improve. The landscape is actually so healthy that I’m finding many homes are receiving multiple offers – even cash offers – which sometimes adds to what can be an already stressful time for homebuyers. My solution to ease the pain of home buying is to always give my clients as many creative options and solutions as possible.

Recently, I worked with a family of seven – mother, father, three children, and one set of grandparents – looking for a home in the Northern Virginia area. While they were able to find a house they loved, it was an incredibly competitive bidding situation – seven offers on the table, including four cash offers. Through some background research, I learned that the seller of the home had purchased the original land and built the home with her late husband. This insight helped me craft a unique strategy for my client—the seller may be more receptive to selling the home to a family, rather than to an investor seeking an asset property.

I advised the family to write a “love letter” to the seller expressing how they felt when walking into the house; how the schools and activities in the community would be a perfect place for their children; and how their intent was to create a safe and secure nest for their extended family unit. They also added that the seller would be more than welcome to visit the home whenever she liked and they would welcome her as an honored guest. The family delivered the letter in person and gave the seller a true sense for how her house would be home for this growing family, much like it was for them.

The family’s offer was about $40,000 less than the average offers on the home, and they still got the house!

A piece of advice for potential homebuyers in this market: trust your instincts, but also make sure you know what you’re looking at when you walk into a home. Often times, homebuyers will get distracted by the décor, furniture and other staging elements, rather than getting a sense for the structure, location, and more concrete elements. The right Realtor or agent will help you make these distinctions and guide you to purchasing your perfect home.

What does this mean for the Commonwealth?

In Virginia, quarterly home sales were up in over half of its geographic areas – for Northern Virginia, there was a reported 5.1 percent increase in sales. Up 11.3 percent, total quarter home sales volumes for the state jumped from $4.86 billion to $5.41 billion. Record-low interest rates, combined with rising prices, have breathed life back into the market.

Sell and buy. If you want to move, sell now, buy now. Buying six months ago would be even better, buying a year ago would’ve been even better. But buy. Over the next year, two years, it’s going to be a good market.

– Gerald Hanweck, professor of finance, George Mason University

The average selling price for homes in Fairfax County between February 2012 and 2013 came in at a 10.23 percent increase, with foreclosures and short sales shrinking as a proportion of the market.

According to buyers broker Gregg Bernadette, “Today’s buyer must have an on-call mentality.” In this fast-paced market, it is critical for buyers and sellers to be equipped with the information and prepared to make quick decisions to get into their dream homes. Though a daunting task when under time pressures, the right real estate agents will guide both homebuyers and sellers through this process.

The housing market in Northern Virginia is poised for continued success, making this a great time to explore the market and take advantage of these sustainable, positive financial incentives.

According to board Chairman Walter Tejada, “This is not a year in which we can do many new things…[we] can, however, maintain the fundamental commitments that Arlington has made, especially in areas like public safety, affordable housing, the social safety net for our most vulnerable residents, our natural environment, and our schools. This budget reflects those values.”

The leadership of local officials is supporting what has proven to be a consistently strong and attractive housing market. As reported by RealEstate Business Intelligence, in Arlington, homes sold in the month of March spent less time on the market on average while some brought in larger, or over 100 percent of the listing price.

The Sun Gazette reported that sales in the 22201 zip code of Arlington took less than 20 days from being listed to bringing in a ratified sales contract, and totaled 38 – up from 25 sales the year before. Homes in the 22203 zip code of Arlington yielded an increase in percent of listing price, from 96 to 99.2 percent.

For some communities in Fairfax County, the demand for both homes and condominiums has increased so quickly that many places are bringing in multiple offers well over list prices. This is the case in Reston, VA, where a much-anticipated metro line will allow residents to customize their lifestyle wish list, while connecting them to the sprawling network of communities in the area.

“It’s as healthy as it’s ever been,” said Dane Work, an associate broker with RE/MAX Preferred Properties in Fairfax. “Everything is a hot potato. The whole market is red hot, white hot.”

Being a homeowner requires responsibility. Owning a home comes with yard work, repairs, insurance and of course, figuring out your taxes. With tax season in full swing now is a good time to review what tax benefits are available to homeowners.

“If you’re not already aware, a Realtor^® can tell you about the significant savings that comes with owning a home,” said Jon Wolford, 2013 NVAR Chairman of the Board. “Especially now when many families are struggling financially and the economy is still recovering, the tax benefits that come along with being a homeowner are a welcome relief to many. Owning a home is one of the best ways to build financial security over the long term, providing both equity accumulation and tax benefits over time.”

One of the most notable tax benefits associated with homeownership is the mortgage interest deduction. The MID allows homeowners to deduct the interest paid on a mortgage debt of up to $1 million on a primary residence and one additional residence.

“The ability to deduct the interest paid on a mortgage can mean significant savings at tax time,” said Jon Wolford, 2013 NVAR Chairman of the Board. “For people who don’t have hundreds of thousands of dollars in savings to buy a home outright, tax benefits like the MID help them begin building their future through homeownership.”

Another tax benefit allows sellers to exclude certain capital gains from the sale of a principle residence. Couples who file a joint federal return can exclude from taxation up to $500,000 of any gain in their home’s value. Singles can exclude gains of up to $250,000.

The American Taxpayer Relief Act of 2012, which was signed into law in January 2013, also extended two important tax incentives for homeowners, which had expired. One is the deduction for mortgage insurance premiums. Homeowners with incomes of no more than $100,000 can deduct their mortgage insurance premiums if they were required to obtain insurance as a condition of receiving financing for the home.

The other provision is a credit of up to $500 for making certain improvements that increase a home’s energy efficiency. The tax credit included costs related to buying and installing certain products such as a new water heater, central air conditioner, insulation, windows or roof.

“Homeownership is an investment in your future,” said Wolford. “It provides social benefits, strengthens communities and offers homeowners financial stability. These tax breaks are just one of many benefits to being a homeowner.”

For housing statistics about Northern Virginia, visit http://nvar.com/market-statistics/housing-market-statistics.

To learn more on homeownership and tax tips visit www.houselogic.com.

February 15, 2013
For Immediate Release

Jill M. Landsman
Vice President, Communications & Media Relations
703.207.3226; jlandsman@nvar.com

Ann Gutkin
Manager, Communications & Media Relations
703.207.3216; agutkin@nvar.com

Housing By The Numbers: January Looking Good With Northern Virginia Realtors® Citing Lots of House-Hunting Activity
Long-Term Cycle of Recovery is in the Right Place For Now

Fairfax, Virginia – For many, 2012 was the year that housing turned the corner. Citing different takes on why, economists agree that housing is no longer pulling down the economy, and will contribute to the economic recovery expected this year. With the Northern Virginia area showing a nearly 8 percent rise in the number of homes sold in January, the year does begin on a positive note. A total of 971 homes sold last month, compared with 902 homes sold in January, 2012.

“Closing out 2012 with an 11.5 percent increase in sales compared to the previous year is highly encouraging,” said Jon Wolford, Chairman of the Board of the Northern Virginia Association of Realtors®. “Many people are saying that housing market has been a bright spot in the economy. Starting the year with solid local home sales supports that. That trend should continue provided interest rates remain low.”

Other Realtors® agree with Wolford. “I had the busiest January I have ever had,” said NVAR “Ask Me!” Ambassador Sue Elbertson with Prudential PenFed in Alexandria. “I wrote four contracts in two weeks!” 

“Ask Me!” Ambassador Ron Tardif with RE/MAX Gateway in Gainesville has been busy since the year began. “Everybody woke up on January 2 and picked up the phone because they wanted to buy a house,” Tardif said. “To say that my business picked up is an understatement.” 

Year-end numbers released from the Metropolitan Regional Information System MLS show that the market’s uptick is strong for Northern Virginia. The median price for existing single-family homes in the NVAR footprint jumped 12 percent, up to $425,000 in January, 2013 compared to $380,000 in January, 2012. Average sale prices rose more than 9 percent, too, up to $499,412, from $456,538 last January. The median price represents the mid-price point whereby half of homes sold fetched higher prices, individually, and half of those that sold were priced below.

The only lean numbers are active listings, the number of homes for sale on the market now. In January in Northern Virginia, there is only a two-month supply, much below the healthy six-month absorption rate needed for a truly balanced market. Such low inventory severely limits options for young families and other first-time homebuyers who rely on the entry level price range, which remains in the shortest supply.

January 2013 NVAR statistics can be found here:

http://nvar.com/images/market-statistics/monthly-sales/2013-01-northern-virginia-statistics.pdf

Evidence of a housing recovery began to mount from October through December, which supports that 2012 ended as a turnaround year. The NVAR region had 19,248 homes sold in 2012, up 10.75 percent from 2011 and reminiscent of the sales boom in 2004 and 2005. In 2011, there were 17,380 home transactions. The average home sold in 51 days, down from 60 days in 2011.

The 2012 Year- to Date data from Real Estate Business Intelligence are found here.

http://go.nvar.com/RBIstats

“We need listings,” said Tardif. “We are back to the time where agents in the office are asking if anyone has a new listing coming on the market that they could show today.

“New home purchases are way up because of the lack of resale inventory,” Tardif added. “[As a result,] price increases and reduced incentives are what we are seeing from the builders in the area.”

Just as we are seeing nationwide, Northern Virginia is experiencing rising house values in many zip codes, while low mortgage rates continue to help drive the recovery in housing. 

***

All Realtors® should take a look at their personal mode of operations and systems in order to ensure that all their clients receive the top-notch service that they deserve–no matter what.

Last year, one of my most amazing experiences came from an opportunity that I didn’t expect to cross my path, not in a million years.

Let me start by saying that every one of my clients becomes a lifelong friend. Think about it: buying a house is a very emotional process. You get to experience the good, the bad and the ugly.  Sometimes, all of those happen in a condensed amount of time. Real estate transactions are  a bonding experience, and I choose to make them the best they possibly can be for my clients so that we can have that friendship for years to come.  I want them to know that I’m in it for the long haul. So, when one of my clients sent me a referral, I was thrilled to be able to provide them with that same commitment.

We started out emailing back and forth, and I got the gist of what was going on in their lives that brought them to the place where they needed to sell a condo a buy a new home. Like I do with all of my clients, I ultimately spoke on the phone with this awesome referred couple and set a date to meet at my office.

Our meeting date came, and they were running a few minutes behind.  I peered outside and saw two folks pacing back and forth, with guide-dogs. I opened the door and said, “Do you guys need help finding an address or getting a cab?” The young professional woman, who was dressed to the nines, turned toward my voice and the sleek black lab tilted her head at me. “Are you Gen?”

I was confused. These two blind folks are here… for me? Oh! Wow. These are my new clients.

“Hi! Yes! I am, come on inside, let’s chat!” Inside, I asked, “Am I allowed to engage the dogs?”

They thanked me for asking and replied that I shouldn’t when they are working. I got the low-down about the dogs and then we got into the nitty-gritty.

I tried as much as I could to focus our conversation on everything that they needed and how I could make things easier for them. I told them how I operate and asked how, if I were to become their Realtor®, that I could make things more simplified for them. They really appreciated it, but said, “Hey… we’re exactly like you, we just can’t see.” Duly noted.

This young married couple was like the power couple many of us aspire to be, and all I wanted to do was make sure that they had the same fantastic real estate experience that our mutual friend had been given. But I felt like maybe I needed to give them something extra. Was I supposed to coddle them? Should I do anything extra? Well, the answer was, sort of.

Vague? Yeah. But let me tell you about how things worked out. The backstory is that they had purchased a condo that they were really rather bullied into purchasing with another Realtor®, and we needed to get it totally updated and staged. I worked with the couple, her in-laws, contractors and stagers. I helped do the staging myself since they would have a difficult time doing the design work. We picked out paint colors, flooring and, working as a team, got their condo ready, set, and SOLD in less than 48 hours once it hit the market.

All the while, we were using automated searches to go through the MLS to find listings, just like anyone else would, but their computers would use a screen reader to tell them the information. When documents needed to be signed, we used electronic signature software (I love being an EcoBroker and using this on a regular basis– this time it was just a bonus).

During showings, I would pick them and their guide-dogs up and we would go to no more than three or four viewings in a day.  I learned after my first viewing with them, having to describe every detail from flooring to molding and everything in between that I was going to lose my voice. We’d discuss views from the windows, paint colors and parking situations for resale purposes, plus optimal furniture placement for functionality.  Their beloved working dogs would find a corner to rest in as soon as they could when they weren’t “working.” 

Something cool that I learned was that cooking with gas was very important to these un-sighted people because they can smell when it is on and feel the heat immediately, instead of potentially burning themselves trying to check if the heat is ready. On that note, they could tell me a lot about smells (and I have a good sniffer!) They would also tell me what they thought about ceiling height and the difference between vacant homes and homes with furniture. It made me think about working with sighted people who feel like one space is larger… and you have to remind them that it isn’t, it is just vacant! 

When these clients-turned-friends went to closing, this was something that we had to do that was a bit different: we had to have the title company and lenders give all documents at least two days in advance so that my clients’ PDF reader could go over everything. Otherwise, we all knew we would have been at settlement for eight hours! We worked diligently to get this done, and with a bit of push back, I cracked the whip and made it happen. At the settlement table, the sweet couple who was purchasing my clients’ condo said, “Hey… we see you at the Metro sometimes.” My client quipped…. “I don’t see you.” We all laughed and then his dog sighed… it was like his very own Jay Leno-style bum-dum-dum drum-roll. We developed our very own inside jokes, as I tend to end up with when working so closely with any client. They are an awesome pair – two brilliant kindred souls.

Things to take away from this experience: our clients are not all the same, but certainly deserve to be treated the same – which is like how we would treat a friend or family. My initial fear of doing too much or too little shifted when I realized that I just need to do what I do… but step it up and then repeat that for everyone. Always.

Our clients all have different life stories that have brought them to where they are and have brought them to you, so take that and run with it and you’ll be amazed at what comes to you.

One of the most important lessons I learned was at the start of my real estate career. I worked with a couple who had moved to Northern Virginia for work and were looking to move into a townhome that was a convenient commute to both of their jobs.

The wife was working in the Fairfax County Public School system and the husband in the Fair Lakes area. After talking with the couple and really listening to everything they wanted, we began our search in West Springfield and the Fair Lakes area.

I took the couple on a driving tour of the two areas and we looked at a few different townhomes. While driving, we talked about the values of homes in Northern Virginia, the differences in homes in various areas, and I gave them a chart of townhomes where we were looking so they could compare both areas.

As we looked at a number of townhomes, we saw that similarly priced townhomes were smaller and dated in West Springfield compared to those in Fair Lakes. I also knew that the wife wanted a large kitchen and a layout built for entertaining.

More importantly, I knew that in order to stay in budget and get them the house they wanted, we would have to move out of the West Springfield and Fair Lakes area.

A few of the wife’s co-workers lived in Manassas in Prince William County, so we shifted our search to there. Just as we had in West Springfield and Fair Lakes, I gave them a driving tour around Manassas so that they could compare. While Manassas was a bit more of a commute, they still liked the area. They asked me which area I thought was better.

I told the couple honestly that I couldn’t legally answer that question. What I could do was help them learn all they could about each area to help them make an informed decision.

Since I had already given them driving tours of West Springfield, Fair Lakes, and Manassas, I encouraged them to check out police websites for each area, learn about the school districts, etc.

The couple did just that and decided that although they would have a slightly longer commute to work, Prince William County would allow them to purchase a bigger home while staying within budget.

This situation taught me a lot about my job as a Realtorâ. The couple told me that a previous Realtorâ whom they were working with kept dodging their questions about which area was best to live in. They appreciated my approach of doing tours of each area and the personalized attention I provided.

Their feedback helped me realize that as Realtorâ, my job is not to only show houses, but to be the best resource that potential homebuyers and sellers have while making this important home buying decision.

By Ellen Hope Moore, Realtor® at RE/MAX Premier, Fairfax, VA

As any agent will tell you, every situation in the real estate world is unique, and we are forever sizing up houses, detail-by-detail. Good agents are very detail-oriented and know it is a big part of their job. However, during a recent transaction I was reminded that to be a savvy agent, one must focus on the big picture as well.

I was working with a young couple who wished to buy a townhome within a low price range, and who were remaining flexible on both location and features. Taking a look at a number of homes and watching how quickly the properties in their price range were being snatched up, we realized we would have to be ready to move speedily and strategically to place an offer.

After searching for a while, we found a townhome that was closer to their ideal than anything else we had seen. It had the layout they desired, and the neighborhood and location were perfect for them. They got very quiet when they saw the house, and told me in disbelief that it looked just like pictures they had torn out of a magazine the day before when trying to visualize their perfect home. This was the one!

After seeing the house the first morning after it went on the market, we quickly wrote up a competitive offer. My buyers offered the asking price with no closing costs. We included an escalation clause that would bump up the sales price in $1,000 increments to a certain amount, if there were multiple offers. Escalation clauses, which have not really been used much in recent years, appear to be making a big comeback in the last six months due to high competition among buyers as a result of this area’s historically low inventory.

The property did receive another offer, well above asking price and requesting hefty closing assistance from the seller. Whereas that offer would have garnered a bit more cash for the seller, their agent was wisely focused on the big picture of smoothly getting to settlement. He was concerned that the home would not appraise at the higher sales price. As every agent knows, deals can fall apart completely when appraisals come in low, and he advised his sellers of this risk.

The sellers chose our offer. Because my clients requested no closing costs, it kept the total sales price a bit more reasonable for appraisal purposes. Our escalation clause also allowed the sellers to push our offered price very close to what they’d have netted from the higher offer. Both sellers and buyers were happy. We all love a win-win situation, right? And how happy we agents are to find an involved, proactive agent on the other side of the deal!

Both buyers and sellers have experts on their side when working with Realtors. Not only can we look out for sellers like this savvy agent did, but we can help buyers put forward competitive and smart offers. So many times, buyers are solely focused on the price of a house and believe that their higher offer will win. In the same vein, sellers can get caught up in their “bottom line” and forget that the ultimate goal in their sale is to make it to settlement. Realtors can help remind everyone to keep their eye on the big picture!

About two years ago I was working with a couple that was looking to buy a home in Alexandria. After looking at several listings, we came across a beautiful house, that despite minimal updates since its construction in 1970, was a great value and was worth more than the asking price. This was on a Thursday.

Knowing that the house was listed under value and that houses were going quickly due to the lack of inventory, I advised my buyers to put in an offer that was $50,000 over the asking price. Friday morning I received a call from the agent saying that she received an offer from another couple and it was identical to the one I submitted. The agent then asked if we would drop the appraisal requirement.  I never would recommend that to a buyer, so I advised them to consult with their lender who also advised against this.

The buyers really wanted this house and decided to drop the requirement. So did the other couple. It appeared we were in a head-to-head battle for this house.

On Saturday I was at a wedding and I was going back and forth between the listing agent and my buyers to negotiate a deal before the scheduled open house the next day. Finally, the agent called back and said that both offers were identical, including the fact both couples were military, one Navy, mine the Marines, which was a perk for the seller who was also military.

It came down to me, as the representative for this couple, to really sell them as the ideal occupants of the home. I knew my couple loved this home, so I spoke from the heart about how they could see themselves growing their family in the home and living there for years, Three hours after I sent an e-mail to the listing agent, I received a call from the listing agent saying, “The Marines have landed.” They got the house!

This unique situation taught me a very important lesson – Realtor are the best advocates for potential buyers; we will go above and beyond for you.

With the low inventory in the Northern Virginia area, now is a great time to pair up with a Realtor, because as the market gets more competitive there is nothing better than having a knowledgeable advocate by your side who knows the market.  And a Realtor who knows how to go the extra mile for her clients.