There are several key steps that your Virginia Licensed Real Estate Agent will help you through. Knowing what these are in advance can help you not be surprised later on:

• Know your budget, consult with a financial institution about what you can be pre-approved for.
• Know your needs, including:
  • Number of bedrooms
  • Location
  • Walking distance to a bus stop
  • Walking distance to a metro stop
  • Price
  • Property condition
  • Age of the property
  • Garage Parking
• Amenities (for condos)
  • Indoor/Outdoor pool
  • Putting Greens
  • Tennis courts
  • In unit washer/dryer
  • Utilities included in condo fees
  • Basketball courts
  • Bowling
  • Concierge service
  • Controlled access
• Realize that something will have to give to get what you want, prioritize your needs so that you can get the most important features.
• Budget time and money:
  • Finding any home is easy. Finding the right home requires time invested in looking at properties.
  • Money for downpayments and closing costs can vary from a couple percentage points to a cash purchase where you provide the entire amount up front.
  
  

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  About the Author ---  Ben Fornshell is a licensed real estate agent with Condo 1 Alexandria.  To learn more about available rentals and purchases in the area check out our free search.

If you are looking or even just thinking about buying a condominium home in or around Northern Virginia, it's perfectly natural to feel a little nervous. Buying a condo and owning your own home is a large, life changing purchase. Indeed, any individual thinking about buying a condo needs to know what to expect and how to prepare for those expectations. Below is a short list of 5 essential tips that any condo buyer would do well to consider throughout the process of finding a new condominium home. Happy hunting!       

1) Look at Everything in Person

First, remember to look in person at any condo unit you are interested in. It is very important that you make sure to actually see the amenities, parking space, and condo facilities personally. This simple but critical task will avoid any confusion and disappointment later on and will ensure that you are satisfied with your condo purchase. If you absolutely cannot look at the condo in person than ask the seller if you can send a friend you trust to look at the unit instead. In addition, if you are located in a different city than where you are condo shopping, be sure to ask the condo seller or realtor to send you as many pictures as possible of the condo and the condo building before you make a decision.  

2) Carefully review the Condo Association Fees First

Make sure that you know what exactly is included in your condo purchase. What amenities are included in the condo fees to make the condo right for the price? Or, on the other hand, are you going to end up paying for benefits you don't need? In addition, ask if there is any insurance included. Different condo associations may charge the same amount per month, but one may include some incidental insurance while others may require hefty fees for amenities you may not really need or want. Finally, check the condo association meetings and/or any printed bulletins that result from them. Look for any past or developing issues that you need to take into account.

3) Never Ignore the Documents that Accompany the Condo Purchase 

Always review the condominium documents very carefully before you buy. In laymen's terms, don't ignore the fine print. Here, you should check the total price and property documents to make sure that they are reasonable for the area. Be especially cautious if the price is very low because this could mean you will need a special assessment of the unit, which could cost you a lot of money, later in the future.

4) Always Review Comparable Units for Sale in the Same Building

While every condo building is unique and features different amenities, styles, policies, and location, it is important that you look into other condo units that are for sale or have sold in the same building. Here, do not simply rely on the recent sale price of another unit in the building. Consider what another units' floor plan was, what views it had, or if it had any special upgrades. Depending on the view and floor of the unit, the price of a one bedroom can vary within a condo building.

5) Work with a Specialist

The condominium marketplace is often a very specialized type of real estate and as such, you should always consider working with a qualified realtor, and particularly one who specializes in condos. With the help of a realtor, you will have access to a greater condominium market which will enable you to find the best condo unit to fit your needs at a price that you can live with.  

Home buyers who purchased a property after Nov. 6, 2009, when the extension and expansion of the first-time and move-up home buyer tax credit took effect, have reportedly been unable to get their rebates---or even file for them---because paperwork isn't available.

Robert Dietz, an economist with the National Association of Home Builders, says the delay is apparently caused by the Treasury Department's inability to quickly create new documentation that filers could use to prove they actually bought a property.

Previously, all a home buyer had to do was file a form that said they'd purchased a property. No proof was required. As a result, there were thousands of reports of fraud. This time around, the IRS is seeking ways to force home buyers to prove their eligibility.

Mary Mellem of David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, says it probably will be another three months before the problem is resolved.

Source: CNNMoney.com, Les Christie (10/14/2010)

I'm going to buy a home, what's the process?

1. Go to your bank or lending institution to obtain pre-approval.  As part of this you will discover what amount they are willing to lend.  This is important both to know your budget and to ensure your offers are accepted.  Failure to pre-approve can ruin your chances for success later.
2. Sit down with a Realtor to see what's available, what meets your needs, and to discover the hidden dangers in home buying.
3. Once you have found a property you wish to buy you can proceed with an offer.  Your Realtor will provide invaluable assistance by performing a competitive market analysis, a snapshot of recent home sales and their amounts, to determine what will make an offer that gets you the best possible price, without having the seller walk away.
4. The seller reviews the offer, if rejected the seller may make a counteroffer.  This process can continue back and forth until both parties ratify and accept the offer making the offer a ratified contract.
5. A ratified contract then puts into motion a host of background tasks that proceed invisibly to ensure your new home is in good order:
   1. Home inspected for condition, damage and hidden surprises
   2. Appraisal to ensure the banks investment is covered by the value of the home
   3. Loan approval to secure funds for the purchase of your home
   4. Title Search to ensure the seller really has full right to sell your home
   5. Walk-through inspection to ensure nothing changes at the last minute with the property
      
6. At settlement the lender's money and the title transfer come together to deliver you ownership of your new home. 
   
7. Now it's time to move in!

About the Author ---  Ben Fornshell is a licensed real estate agent with Condo 1 Alexandria.  To learn more about available rentals and purchases in the area check out our free search.

Obtaining pre-approval from a bank is a daunting process.  It is time consuming both due to the delay and because of the amount of paperwork required to satisfy a lender of your credit status. 

It is, without a doubt, the most pressing matter before beginning your home search.  Proceeding without this step can lead to angst, lost time and energy, and opportunities.  Without pre-approval you'll be facing the following pitfalls very quickly:

• Offers will be rejected in favor of lower offers by pre-approved buyers.
• Delays can result as you await approval by your bank.
• Too late you may find the home you are looking at is beyond your budget

• A better home could have been yours if you'd known what you could afford
• Time can disappear into looking at homes that disappear from the market before you're ready to make an offer and
• Effort invested into your search can be wasted as you await preapproval to have an effective offer.

About the Author ---  Ben Fornshell is a licensed real estate agent with Condo 1 of Alexandria.  To learn more about available rentals and purchases in the area check out our free search.

This week I was in a condo selling for over a million dollars.  It was a beautiful condominium home with excellent views, a state of the art kitchen and all the upgrades one might expect ... except the unit didn't have a washer and dryer.

Because my office is in River Towers, and we also serve Belle View, I often confront the question of a washer and dryer in the unit. (Neither River Towers nor Belle View have laundry in the unit.) I've talked to the older residents of River Towers about this and surprisingly many of them resist the idea of putting laundry in the unit. They like their laundry-rooms right where they are---thank you very much.

This might seem baffling to some of the younger generation, but laundry rooms have a number of distinct advantages:

• community --- You get to know your neighbors in the laundry room. This creates a sense of community and you know who belongs in the secured areas and who is a stranger.
• maintenance --- You don't have to worry about buying a new washer when the old one breaks down. More importantly you don't have to worry about your personal laundry flooding a neighbor's condo.
• square footage --- Laundry takes up space. You have more space in your unit if you have a community laundry room
• more washers --- Many folks like to wait and do an entire week of laundry at one time. If you have a laundry room you're not limited to one small washer. You have many washers available.

In a luxury community, most people don't do their own laundry anyway, so they don't care if the laundry is outside the unit. My tip to folks who are shopping for homes in Northern Virginia: don't box yourself in. If you won't consider a unit with a laundry room, you're walking past some of the best neighborhoods in Northern VA.

When you're shopping for a home, how do you price a view? The view above is from a balcony at the Representative overlooking Pentagon City in Arlington County. Does this view make this condominium home more valuable? If so, how much more valuable?

Like the Representative, Montebello sits atop the ridge overlooking the Potomac. Much of the best property in Northern VA is found on this ridge, because the elevation provides excellent vistas of the Potomac and the city.

The Alexandria House is not on the ridge, but down by the Potomac and surrounded by the smaller structures of Old Town Alexandria. Its balconies provide great views of the city and the river.

Who's to say what a great view is anyway? Some people like the city view. Some folks prefer a nature view. Some folks like the monuments. And others could care less about the view.

For myself, I never judge a view by standing at a window. Because when you live in a home, you don't stand at the window. You pass through rooms and halls on the way to do life's errands. I judge a view from the center of the room, or when seated at the couch. But in the end, it's all subjective. A view costs more, on that we all agree. But the value of a view is only known when the price a buyer will pay intersects with the amount a seller will accept.

About the Author --- Will Nesbitt is the principal broker of Condo 1 Alexandria and Will Nesbitt Realty. Will specializes in condos, townhouses and single family residences in Alexandria, Arlington, Fairfax County, Crystal City, and Kingstowne. Will resides in Belle Haven Estates just outside Alexandria VA in Fairfax County.

In an area crisscrossed with high volume commuter routes and heavily-trafficked Interstates, it's inevitable that some folks are going to live in close proximity to a highway. It's great to be near the Beltway or Route 66 because this can take a serious bite out of your commute. But the downside is that the highways can generate a lot of noise. In most areas, there are towering concrete walls to dampen sound in the neighborhoods in close proximity to the Beltway, I-66, I-395 and other highways.

In the picture above the wall has been taken down as work crews expand the road. Once the expansion is completed, they'll reassemble the wall. There's not much you can do about construction, but once the wall is back up, the neighborhood should be relatively quiet. In the homes and condos closest to the walls, I find that the noise sounds a bit like a waterfall---a wooshing white noise that is not particularly offensive. The noise is perhaps worst near an exit. Exit ramps create noise because every so often a trucker exiting the highway will use his "jakebrake". That is to say, the truck will gear down and emit a loud, low growling noise not unlike a Harley Davidson's loud pipes.

Here's a thought to consider if you are purchasing a condominium near the highway. In my travels I've found that the condos at the ground floor are much quieter. This is because the condos on the top floor are often just above the sound-break and therefore get the full brunt of the highway noise. Some folks like the noise ... it sounds like busy and they like being in the city. Some folks can't stand the noise and find out the hard way ... after they've purchased ... that they could have gotten a first or second floor unit.

About the Author --- Will Nesbitt is the principal broker of Condo 1 Alexandria and Will Nesbitt Realty. Will specializes in condos, townhouses and single family residences in Alexandria, Arlington, Fairfax County, Crystal City, and Kingstowne. Will resides in Belle Haven Estates just outside Alexandria VA in Fairfax County.

Licensed real estate agents can provide you with a competitive market analysis, this is based on:

1. Comparable properties in the area
2. Adjustments for differences in size and condition of the property
3. Differences based on location or the sale/rental date of the property

While real estate prices are fluid and certainly open to negotiation there are very real trends that affect not only the housing market as a whole, but localized areas as well.  This can include everything from:

• New construction
• Zoning changes
• Condemned properties
• Traffic pattern changes

It is important to remember when assessing property that there are three factors that will most influence the price

1. Location
2. Value of improvements (the home or unit)
   
3. Uniqueness of property
   

About the Author ---  Ben Fornshell is a licensed real estate agent with Condo 1 Alexandria.  To learn more about available rentals and purchases in the area check out our free search.

Here's a summary of the Home Buyer Tax Credit by NAR:

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Breaking news: Tax Credit Can Be Used on Closing Costs.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home---the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer's income---single buyers with incomes up to $75,000 and married couples with incomes up to $150,000---may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income---over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

FHA 203K Loan - Eligible Property

To be eligible for the FHA 203k mortgage loan, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.

Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.

In addition to typical home improvement loan projects, the FHA 203-k mortgage loan program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.

An existing house (or modular unit) on another site can be moved onto the mortgaged property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation.
health and safety of the occupants of the residential property; and (3) the rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property.

What is the minimum amount of repairs required on a FHA 203k home improvement loan?

There is a minimum $5,000 requirement of eligible home improvement loan projects on the existing structure of the property. Minor or cosmetic repairs may be included after meeting the first $5,000 worth of repairs.

What are some of the repairs that qualify for the first $5,000?

• Structural alterations and reconstruction: (Repair or replacement of structural damage, chimney repair, additions to the structure, installation of additional bath(s), skylights, finished attics and/or basements, repair of termite damage and the treatment against termites);
• Elimination of health and safety hazards;
• Changes for aesthetic appeal: (New siding, adding a dormer, covered porch, attached garage);
• Air Conditioning or replacement: (plumbing, heating, air conditioning and electrical systems);
• Installation of well, septic system or connection to public utilities;
• Roofing, Gutter Downspouts, Flooring, Tiling and carpeting;
• Major landscape and site improvement;
• Improvements to improve accessibility and functions for the disabled.

What are the qualifications to be able to obtain a FHA 203-k loan?

The qualifications requirements are the same as a typical FHA mortgage loan. The only additional item that the borrower needs is either enough cash reserved to pay for materials and labor until they are reimbursed through a draw, or a credit card with an adequate available balance. If there is to be a contractor involved, the contractor may choose to cover these costs.

The interest rate on a typical FHA 203k mortgage loan is a little higher than a standard FHA or conventional 30/15-year fixed-rate loan. The cash requirements are the same as an FHA loan, 3 percent to 5 percent, which is less than a typical conventional loan. There are a couple of additional fees which pertain to the construction aspects of the FHA 203k loan.

Can I pick my own contractor to do the work?

You may decide on your own contractor, and they should be brought into the process in the beginning stage of the loan process. Check out the credentials of the contractor thoroughly, making sure he is knowledgeable in all aspects of rehabilitation work.

The home improvements or repairs need not be made before moving into the property, depending on how extensive the repairs are and whether the house is habitable while the repairs are being made. The home improvement loan provides the ability to include up to 6 months of mortgage payments in the improvement escrow, should you not be able to occupy the property and have to pay rent during rehabilitation.

Can the FHA 203k loan be used to improve a condominium unit?

Yes, however, condominium rehabilitation is subject to the following conditions:

• Owner/occupant and qualified non-profit borrowers only;
• Rehabilitation is limited only to the interior of the unit. Mortgage proceeds are not to be used for the rehabilitation of exteriors or other areas which are the responsibility of the condominium association, except for the installation of firewalls in the attic for the unit;
• Only the lesser of five units per condominium association, or 25 percent of the total number of units, can be undergoing rehabilitation at any one time;
• The maximum mortgage amount cannot exceed 100 percent of after-improved value. After rehabilitation is complete, the individual buildings within the condominium must not contain more than four units.

By law, FHA 203k loans can only be used to rehabilitate units in one-to-four unit structures. However, this does not mean that the condominium project, as a whole, can only have four units or that all individual structures must be detached. Example: A project might consist of six buildings each containing four units, for a total of 24 units in the project and, thus, be eligible for an FHA 203k loan. Likewise, a project could contain a row of more than four attached townhouses and be eligible for a FHA 203k loan because HUD considers each townhouse as one structure, provided each unit is separated by a 1 1/2 hour firewall (from foundation up to the roof). Similar to a project with a condominium unit with a mortgage insured under Section 234(c) of the National Housing Act, the condominium project must be approved by HUD prior to the closing of any individual mortgages on the condominium units.

News from the IRS regarding the first-time home buyer tax credit:

Overview

First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit:

• Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
• Applies only to homes used as a taxpayer's principal residence.
• Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
• Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405.

For 2008 Home Purchases

The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.

For 2009 Home Purchases

The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1.

For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.

First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.

Questions and Answers

More information is available in the question and answer section.

Buying your new house or condo involves a multitude of steps.  Having a real estate agent ensures that these steps go smoothly for you.  Having said that one of the most important aspects of your new home purchase is getting a loan secured.  Doing so in advance ensures benefits you in three ways:

1. You are searching for properties that will be within budget
2. Your offer carries extra weight because of your ready to buy status
3. The home buying process will go smoother and quicker through its final stages.

The value of these three together is quite great, and can make the difference between getting the home of your dreams and that one that "just got away".

About the Author
 Ben Fornshell is a licensed real estate agent with Condo 1 Alexandria.  To learn more about available rentals and purchases in the area check out our free search.

When you've finally picked out the condo, house or townhouse that interests you, it's time to write the offer. Together with proof of Earnest Money, and lender approval, I'll present the offer to the selling agent.

Presenting an offer is a little bit more involved than simply faxing paperwork to the listing agent and then waiting for a response. It is important to get the offer over as quickly as possible. Bargains (in any market) don't last long.  Then I call the listing agent to let them know the offer has been faxed. 

When appropriate, I follow up in the conversation by sharing appropriate details with the listing agent. For example:

I can give the selling agent some personal background about my clients and what they are looking for. I can explain why they are qualified to buy or how many homes my client has looked at. In some cases, it's appropriate to tell seller what the buyers appreciate about the home.

I sometimes provide the sellers with a comparative market analysis to show the sellers the rationale behind the offer we are making.

Of course, it's my job to explain and review all of the major details of the offer;

• contingent or non-contingent,
• inspections,
• date of closing, etc. 
• and of course, price. 

When necessary I discuss a brief timeline outlining the expected milestones between the offer and settlement.

About the Author --- Will Nesbitt is the principal broker of Will Nesbitt Realty and maintains Condo 1 Alexandria. Will specializes in condos, townhouses and single family residences in Alexandria, Arlington, Fairfax County, Crystal City, and Kingstowne. Will resides in Belle Haven Estates just outside Alexandria VA in Fairfax County.

Just in from the Department of Housing and Urban Development:

DONOVAN ANNOUNCES RECOVERY ACT'S HOMEBUYER TAX CREDIT CAN IMMEDIATELY HELP THOUSANDS OF FIRST-TIME HOMEBUYERS TO BUY A HOME
FHA plan will stimulate new home sales and help stabilize housing market

WASHINGTON - Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration's new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today's action will help stabilize the nation's housing market by stimulating home sales across the country.

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today's announcement details FHA's rules allowing state Housing Finance Agencies and certain non-profits to 'monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website.

"We believe this is a real win for everyone," said Donovan. "Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation's housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders. What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."

Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent downpayment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today's announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their downpayments via secondary financing provided by the HFA or non-profit. In addition to the borrower's own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the downpayment. Today's action permits the first-time homebuyer's anticipated tax credit under the Recovery Act to be applied toward the family's home purchase right away. Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit.

According to estimates by the National Association of Home Builders, the Administration's homebuyer tax credit will stimulate 160,000 home sales across the nation - 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first-time buyer purchased their home. Given FHA's current market share, it's estimated that thousands of families will be able to purchase a home by allowing the anticipated tax credit to be applied toward their purchase together with an FHA-insured mortgage.

Homebuyers should beware of mortgage scams and carefully compare benefits and costs when seeking out tax credit monetization services. Programs will vary from organization to organization and borrowers should consider whether the services make sense for them, as well as what company offers the most suitable and affordable option.

For every FHA borrower who is assisted through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.

###

HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Here are some of the many pitfalls of a short-sale.

Time to close

Short-sales take a long time to close. Although lenders are getting better in short-sales, they are notorious for making slow decisions when negotiating. I had a client last year who agreed to pay cash and purchase a short-sale in 3 days.  The seller accepted the offer but the lender took 4 months to agree to the offer. When buying a short sale, you have to act quickly. After you act quickly, you often have to wait a long time. 

Multiple offers

Short-sales often involve competitive buying. That is to say, there are multiple offers on the property. Despite what you may have heard about this being a buyers' market, there are ALWAYS buyers who are interested in something for nothing. In addition the Northern Virginia economy has not been impacted the way places like Detroit affected by the recent economic news. In Alexandria, in Arlington and anywhere near the metro, there are many folks who want to buy homes. Homes that are nicely priced, in good condition and in good locations are selling quickly. 

The property isn't available

Fully two-thirds (maybe more) of the short-sales listed for sale right now ... ARE NOT AVAILABLE. This is perhaps the most maddening part of short-sales as a considerable portion of my day is spent sorting through properties that are listed as ACTIVE in the MLS but they are in fact not on the market. Why are these properties listed for sale when they are active?

The simple and sad answer is that many agents who are selling short-sale properties don't understand there aren't any special rules for short-sales. If a property is offered for sale, the agent has a duty to the public in addition to his/her duty to his client. His duty to the public and Fair Housing Laws require that he promptly present any offers to purchase to his client. If the client agrees to the offer, but the caveat that the contract must be approved by the lender, that contract should be listed in the MLS as under contract with a kick-out. Most agents these days leave the property as active, wasting the time of buyers and agents everywhere. 

Often, a selling agent continues to list the property as active because it is not uncommon for a short-sale buyer to back-out after the purchaser finds out just how much hell they'll have to suffer to get a bargain.  The selling agent might not be aware that listing this property as active in the MLS is unethical, but the selling agent certainly does not care if you waste your time trying to buy a property that has already sold.

The unethical selling agent wants to continue to market the property even though the property is under contract.  This way the selling agent can get a couple of back-up offers in case the first contract blows up.

The stick-up

The last and worst part of a short-sale is what I've come to call "the stick-up".  The "hold-up" occurs when the seller changes the terms of the deal at the final hour. I'll call it a "stick-up" or "hold-up" because I find this selling tactic contemptible, unethical and a form of stealing. There are no guns involved, but the net effect of the change is not much different from a stick-up or a hold-up.

The stick-up occurs come after the buyer has invested a lot of time and effort negotiating the deal. The change is simple: when you get to the final hour, the buyer finds out that the property costs more than what agreed upon. These changes come after the buyer has invested money in inspections and appraisals. These changes come after the buyer has given notice that he/she is moving or after the buyer has sold his existing home.

Not long ago, I was only the phone with an agent who was clearly very experienced selling short sales. The terms of the deal changed at the final hour to require an additional sum of money from the buyer: a sum of the buyer simply did not have. When I asked her by what rights she thought the deal could be changed, she told me with a straight-face: "This is a short sale. Short sales are different."

She informed me that she had sent me an email saying the price had changed after the deal was done. I told her that she could send me all the emails she wanted, that doesn't give you the power to change a signed contract. She seemed truly baffled about my stance.

The contract stated that the contract had to be approved by the lender. And, the lender had approved the contract.  But now, the lender had changed their approval. This agent, well-experience with selling short-sales, thought that was standard practice, and she thought the bank was acting in good faith.

We ended up with a happy ending for the buyer, but there was a lot of drama and tears and fighting before it closed. I still get a knot in my stomach when I think back at that one.

About the Author --- Will Nesbitt is the principal broker of Will Nesbitt Realty and maintains Condo 1 Alexandria. Will specializes in condos, townhouses and single family residences in Alexandria, Arlington, Fairfax County, Crystal City, and Kingstowne. Will resides in Belle Haven Estates just outside Alexandria VA in Fairfax County.

I like experts who speak in plain English that's easy for a layman to understand. That's why Bob Murphy of Camelot Inspections is one of my favorite home inspectors and I've recommended him to many home buyers.

What is a Home Inspector?

I recently asked Bob to describe a home inspector to me. He said, "A home inspector is generalist with a trained eye. They are required to have some knowledge of every system in your home. Those systems include structure, plumbing, electrical, Heating and A/C, etc. The term 'house detective' is a very fitting description. We look for little clues that add up to a big picture called 'whole house phenomenon'."

People hire home inspectors because, "A buyer needs a home inspection to give them some knowledge of what they are buying before it becomes theirs. This includes knowledge of defects, upgrades, and maintenance cost."

As you might expect, Bob is pretty passionate about home inspection. He says, "The home inspection should be a required part of the transaction.  The appraisal,title search, and even termite inspection are required. Why?? To protect the lender!   So who is there to  protect the interest of the buyer?"

Alana, meet Bob

Recently, Alana H. was referred to me by a prior client and frankly she was one of the nicest clients I've ever had the honor of serving. After her purchase was negotiated she requested a home inspector so I recommended Bob's services. Alana was a first-time home buyer, so she wanted Bob to give her new home the once-over.

Bob told her, "Food for thought....You cannot buy a car and register it without an inspection. That is a matter of public safety.

"So why then is the public permitted to make the biggest purchase of their lives without an inspection?"

Bob meets the house

Bob has seen many immediate safety issues in all types of houses. Bob met Alana and I at her new townhouse in Reston VA. He immediately unpacked his gear and began to go to work. Like any good home inspector, Bob started with the exterior and checked out the house from the foundation to the roof. He checks downspouts, guttering and any potential problem or maintenance issues.

After getting inspecting the home's interior Bob goes to work on the interior. He pulls out the flashlight and pokes around in dark corners, in the attic and in the crawl space. As he works Bob shows the homeowner what he's doing and where potential problems can hide.

As part of his general practice Bob pulls the electrical box, checks the plumbing and applicances. He checks out major systems like the heating and air conditioning.

Bob is especially helpful with the first-time home buyer. As a first-time buyer, you'll find out what systems need attention. If you have and questions, ask Bob, he's there to help.

When all is said and done, Bob will prepare a report tailored to your home, so you'll know exactly where you stand. He supplies a helpful book with tips and answers to some of the questions you might not even remember to ask.

It's always good to learn that the home is in good shape! Bob is available to inspect houses, townhouses or single family homes in Maryland or Northern Virginia.

About the Author --- Will Nesbitt is the principal broker of Will Nesbitt Realty and maintains Condo 1 Alexandria. Will specializes in condos, townhouses and single family residences in Alexandria, Arlington, Fairfax County, Crystal City, and Kingstowne. Will resides in Belle Haven Estates just outside Alexandria VA in Fairfax County.

Check out this important clip from the Wall Street Journal. Is now the time to buy? For first time home buyers, now may be the best time ever. With mortgage rates at record lows and the $8,000 first-time home-buyer credit set to expire Nov. 30, Ronald Phipps, first vice president of the National Association of Realtors, explains to Kelsey Hubbard why now is a good time to enter the housing market. Of course, you individual situation is the most important thing, but when you consider the inventory of homes available and you tax credit, it might be the perfect time. According to Phipps the average home owner is 38 times wealthier than the average renter. When you look at the long term that is another compelling reason to consider a home purchase now.

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