Looking at DC Citywide. Let’s start the year and see where it goes! Happy New Year!

FHA LOAN DISCUSSION WITH BRIAN MARTUCCI AND JUSTIN NIELSEN

Beautiful views from Condo

After following the news and looking at every single TV show about buying a home, you are READY!!!
Well, sit back and read this little story about how things have managed to go horribly wrong for the DC condominium market.
Condos became all the rage in a city that seemed to have a constant influx of new blood with capital to spend.  We have all the makings of a very successful professional town. Georgetown University, Howard University, George Washington University and American University. Congress and a ton of government and local agencies.  Let’s not forget all the embassies and other international organizations. Quite a funny mix considering…
DC is a truly unique place. Transition does not even begin to describe what this tiny southern plot of land is all about.  I have been here for about 14 years and I only know 5 others that have been here longer than me!!  Just kidding, of course!  Seriously though, when you think of it, it barely makes sense for a great deal of the population to buy something and settle down in DC.  At some point, many of these condo owners decided to become investors. The thought was to keep the condos and rent them out while they steadily appreciated. In essence not a bad idea and many a Realtor must have been pushing the initial investors with this notion.
Here we are years later.  The market has turned.  There are plenty of great condos for sale, but no one can buy them!!! Why?  Current FHA and Fannie/Freddie home loan guidelines require at least 51% owner occupancy. Many buildings just don’t fit the bill.  There are just too many renters in most condo buildings in DC. Some are officially rented out as investment properties, but many are not. Many condo associations are not aware or turn a blind eye to the situation.  Your Realtor needs to be aware of this situation because it makes it virtually impossible to get financing.

Well gee, Justin, what do we do about this?

COLD HARD CASH!!

Condo owners, you need to go to your condo/coop boards with the message that they need to start limiting rentals. Otherwise you will be hanging on to your condo for a LONG time. The condo my client wanted so dearly to buy was actually an estate sale, and we had negotiated the price all the way down. Then, through the management company and condo documents, it came out that there was only 13% (I REPEAT! 13%) owner occupancy!! That my friends makes it IMPOSSIBLE to buy unless you are paying COLD HARD CASH!!

A few years back I was getting all these emails from marketing companies. They were probably sent to a lot of Realtors in the DC Metro Area. They had great headlines to peek your curiosity.

Like,

All you need to know about staging.
* Sell your listings faster and for more money!
* Home owners need your help right now!
* Get more listings, NOW!

Sounds great doesn’t it? How could I have been an agent without this tool in my tool belt?

I naturally opened up a few and checked out what was out there. How could I acquire these new found skills? Well, for a minor sum of $ 399, they could be mine. I would spend a day or two in classes learning the latest and greatest in how to get my clients to move their furniture around. After that there was also a Feng Shui component that could be added and learned. I thought about it and realized that I would need to tell people what I thought about their tastes and styles. Hard things for an agent to say and do. I just got the listing and now I have to tell them to move everything around so we actually can sell this place. WOW!!!

But I realized that this is the core of what being a real estate agent and consultant is all about. It is having the gumption and skill to not only approach a problem but also the tact and sensitivity to do it with respect. Certainly there are things that need to happen and words that need to be said, but if you don’t believe your agent can guide you and be honest, then you have the wrong agent!

I actually believe that through the years a good consultant should be your first stop adviser on current market trends, remodeling ideas, landscaping and how to enhance without spending a fortune.

So, lean hard on your Realtor and make sure you get your moneys worth! Call them for a free consultation today.

Justin Nielsen is a Real Estate Consultant doing business in The District of Columbia, Maryland and Virginia.

Reading the Washington Post is always a mixed blessing for me. I find the information late, lacking and limited. I had for a time actually decided to stop subscribing. I prefer to get my real estate news from the source: real estate professionals. Imagine getting the news and understanding it. The trick here is naturally to convey it in a way that is meaningful and pertinent to my clients’ needs and wants. The news is used for assisting and advising. I see myself as a consultant and trusted advisor. This is not about me; however, this is about you. Where do you get your news and should you be acting upon it?

Last week’s Washington Post Real Estate Section was about FHA loans and how you should be looking into them before deciding on a home loan. Terri Rupar wrote this very good and informative article. I liked it because it went right to the point. It made me think about how easy this information could be given if there was the kind of relationship where you could just reach out and call your trusted advisor. Guess what, you can!! Yes, right now you can, and I would even say – SHOULD!, call your trusted advisor, your personal Realtor.  It is mind boggling to me that most people only call a Realtor when they want to buy or sell. So with that in mind I have started this blog to talk about the things that you should be calling your trusted real estate advisor about. Stay tuned for more…

Justin Nielsen is a Real Estate Consultant doing business in The District of Columbia, Maryland and Virginia.