Emily's DC Blog

Restaurant Review- Zola in Penn Quarter

2010-11-18T07:52:00.000-08:00

I really enjoy Zola Wine and Kitchen for a quick lunch when I'm downtown so I was thrilled when some wonderful clients of mine gave me a gift certificate to try the main restaurant. I immediately really liked the space because there was a fun dark bar with music playing that would be perfect for happy hour or after dinner drinks but it was totally separated from the dining room, so you could still have a nice quiet dinner. We were impressed with the kitchen from the start because the bread basket was fantastic. There was wonderful pumpkin bread that could have been a dessert and these salty olive rolls that were divine. My aunt and I both decided to start with the butter lettuce salad because it sounded amazing. It definitely was; lots of little orange slices, tart parmesan cheese (or "dante cheese" which is what I now see the menu calls it but for all intents and purposes it was parmesan) and crispy butter lettuce in a creamy dressing. Only complaint is that the menu claimed there were dates and my salad only had one little teeny date piece. I wasn't too upset because I decided on the three "tastings" instead of an entree and one of my choices was the rich bacon wrapped dates (DELICIOUS). Perhaps the kitchen thoughtfully skimped on my salad because they didn't want me to be date-d out by the time my second course came out? My other two tastings were the steak tartar with quail egg yolk which was rich and amazing and the chopped liver which was good but a tiny portion. My aunt got the Tuna entree and gave me a slice of tuna which was absolutely delicious, fresh and perfectly prepared. We opted to finish our bottle of wine rather than order dessert because we were so full and satisfied. I would definitely recommend Zola to anyone looking for a great dinner and I will most certainly be back!

Home built on "parking space" lot in Japan!

2010-11-15T08:13:00.000-08:00

Notes from a financing class

2010-11-08T09:01:00.000-08:00

Last week I attended a really interesting continuing education class on financing changes in our area at GCAAR. Once again, I was reminded how fortunate we are to be in Washington. In our market 18% of homeowners have negative equity, meaning that they owe more on their home than they could sell it for. While that statistic may seem grim, it's 70% and 47% in Nevada and Florida respectively. According to this teacher, the government is starting to wonder whether the push for homeownership is a correct economic strategy. Apparently homeownership rates are back at the year 2000 levels, on a graph there is a very high peak and then it goes right back down to where we were in 2000. What is truly sad about the downturn is how the crash has disproportionally hurt minority communities. So what is coming up and what can you expect from the realtors, the lenders and the government? Expect to see a lot of adds from the National Association of Realtors promoting homeownership as part of the "American Dream" to counteract any change in government strategy. There will also be a push to standardize foreclosure proceedings (so many mistakes have been made due to the fact that each state has different laws and procedures) and reduce loan fraud. Websites like www.preventloanscams.org will hopefully hinder those out to make an illegal buck, as will a provision in the Housing and Economic Recovery Act that requires lenders to take continuing ed and pass tests to continue to lend. Apparently DC is #5 in the country for fraud rates which is why I stress to clients that they they should not be shopping around on the web for lenders and title companies and they need to use someone from my list of trusted sources for their transactions.

On a positive note, the teacher did let us know that there will be changes in the lending industry to make a past foreclosure less of a Scarlett Letter on one's financial history. If the foreclosure is "circumstantial" (job loss, illness, etc...) the borrow may be lendable again in 2 years rather than 7. The key here is that they will need lots of documentation, so I would advise anyone in a foreclosure or precarious financial situation to keep all financial records in order to prove that they didn't simply walk away from their house.

New Rental Listing in Georgetown

2010-10-29T13:16:00.000-07:00

Kevin Shirley and I have this new rental in Georgetown. You have the option of the whole house for $5300, or the main part of the house for $4300 and the in-law suite for $1700.

From $2,700,000 to $1,250,000, This Loft is Now a Steal.

2010-10-28T07:28:00.000-07:00

I blogged about this loft in the spring of 2009 after attending a party there and loving it. I did write, however, that if I were going to spend $2.7 million that I wouldn't want to live across from a Jumbo Slice! I saw on Urban Turf's tweet this morning that the price had dropped AGAIN and it's now at $1,250,000 which is a great deal for that much space. Click here for Urban Turf's article, a few comments echo my sentiments about Jumbo Slice!

C of O, friend of foe?

2010-10-12T16:56:00.000-07:00

Patting myself on the back as I type for thinking of a clever title to talk about certificates of occupancy! Chances are if you've lived in DC for a while and you have friends who are interns, hill staffers, or work at non-profits, you have been in many "english basements." Basically it's an apartment on the lower level of a house. I'm half joking about hill staffers and interns as some are deep dark basement-feeling spaces and some are largely above ground, bright and renovated to the nines (and no less expensive than any other apartment). Of the english basements, very few have a certificate of occupancy. Technically the basement apartment is a rentable in-law suite and the house is still a single family home. If you have a certificate of occupancy for the lower level, the property becomes classified as a two-unit building. These C of O's are rare as many of DC's houses are older and were not built to the specific terms of DC codes with regard to ceiling heights and having two entrance/exits.

I recently encountered a C of O issue with a deal I did and got two interesting takes on the value of a C of O. When I spoke to Ryan Dailey at Prosperity Mortgage, he felt that having a C of O was a huge asset to the owner for resale purposes. When a prospective buyer qualifies for a loan, he/she can use the expected rental income from the lower level as income. So for example, if someone expects a rent to be $1200/month, that helps that buyer qualify for an additional $200,000 of purchase price (assuming rates are such that borrowing $100,000 costs around $600/month). If a home with a C of O on the basement apartment is listed for $600,000, it can be purchased by someone qualified only up to $400,000 which greatly opens up the pool of buyers.

An appraiser I spoke with had a very different take on the value of a C of O. In his opinion, the C of O had absolutely no effect on the market rent of the basement, and therefore little effect on the value of the house. Since there are so many comparable properties with rentable "in law suites" it didn't make much difference to him when appraising a property whether the lower level had the C of O or not. He said the owners are better of without one as they will get taxed at a higher rate for owning a two unit building, so why bother?

At my office meeting this morning I struck up a conversation about this issue with a colleague who has clients purchasing a home in DuPont circle with a lower level apartment with a C of O. They don't particularly care about the C of O, as they plan to convert the home back to a single family and incorporate the lower level into their living space. However, when they went to get their loan, the bank required a higher down payment because they were purchasing a two unit rather than a single family home.

I just thought all of these different perspectives were so interesting and I am still torn as to whether having a C of O is necessary or if I should counsel clients to only shop for houses with "legal" basement rentals. I am curious to see if DC decides to crack down on this issue and start enforcing rules about basement rentals, but I really hope not. Being able to rent out part of a home has made homeownership affordable for many Washingtonians and taking that away might cause another wave of foreclosures which would be awful to see.

Bethesda's Biggest House

2010-10-04T13:43:00.000-07:00

My "ok this is tacky" line is usually drawn around 10,000 square feet. I'm no environmentalist but it just seems absurd and wasteful to heat and cool that much living space for a normal sized family. Well, this house is 35,000 square feet, three and a half times my tacky limit. It's in a gorgeous part of Avenel and the foyer shot makes it kind of look like the Von Trapp family compound from the sound of music so I guess that makes up for the ridiculous size! Pictures and info here.

Bedbugs, will they start to invest DC's real estate?

2010-09-27T07:27:00.001-07:00

I recently got a call from a client who found bedbugs in the Kalorama condo that she is renting. She wanted to know if I had previous experience with bedbugs and if I thought she could ask her landlord to pay for the extermination. DC hasn't had the problem with bedbugs that New York has had, I had only heard of a few issues here and there. My take on it is that renters could probably get the landlord to pay if it's a whole building issue; but with bedbugs, it's so hard to track how they got in the apartment. New York Magazine ran this article about bedbugs being a silent epidemic on the Upper East Side where coop boards deny deny deny and exterminators show up in unmarked vans. The article got me thinking about the real estate implications of bedbugs in condo and coop buildings. I have a feeling people would start using their 3 day walk-away option with the condo docs if they saw mentions of bedbug infestations, even if the bugs are long gone. However, if the condo boards leave that out of the budget or out of meeting notes, could that be considered fraud? I have a feeling that if bedbugs become more pervasive in Washington that these questions of disclosure and properties being stigmatized due to bedbugs will become an issue.

A "Real Housewife"s real McLean McMansion is for sale

2010-09-17T08:29:00.000-07:00

Mary Amons, one of Bravo's Real Housewives has her McLean home for sale. I can't decide if I think the family portrait over the fireplace is horribly cheesy or cool and different. Check out the rest of the pics here.

"Curbside Cook-off" for DC's food trucks October 7th and 8th

2010-09-14T08:47:00.000-07:00

If you haven't noticed there is a huge trend in DC's food scene- traveling food trucks that are steps up from the hot dog and junk food carts along the mall. Think Indian food, lobster rolls, and all natural frozen yogurt. Unfortunately these trucks don't make there way up by my office in Upper NW, so I plan to catch them at the 2010 "Curbside Cook-off" a festival for Street Truck food at the old convention center! See details HERE.

Make sure those drains are clear....

2010-08-21T10:14:00.000-07:00

...Or else you might have to do this to your newly renovated basement apartment. DC has had some crazy weather this summer (in case you haven't noticed...) and a lot of homes in the area have had issues with flooding. This house was vacant for renovations and the storm drains clogged which lead to a flood in the lower level and mold growth on the drywall and in the air pocket between the drywall and the baseboards. Luckily, this seller had tile flooring that wasn't damaged (ALWAYS put tile in basements folks!) Just a reminder to keep those drains free of leaves and sticks.

LOVE this house...

2010-08-21T10:07:00.000-07:00

No blog post necessary for this- just a house I love by Logan Circle that decided to have a little fun!

The One That Got Away...

2010-08-16T11:28:00.001-07:00

UrbanTurf just posted this great article about "Heartbroken Buyer Syndrome." Basically, in order to make a winning offer, some buyers need to get their heart broken when they lose out on a property either because of multiple offers or they took time to think about it and lost out to another buyer. Buyers in DC often think that this is such a buyers market that they can take all the time in the world or ask for unnecessary concessions and often that is not the case. I've had a buyer go back and forth a few too many times on small price negotiations that the seller got exhausted and fed up and took the property off the market- deciding not to sell it at all! All of these situations are very frustrating for buyers and once they get over that property they have the motivation to make stronger offers next time. They will pay what they have to pay, not what they want to pay, to avoid the "heartbreak" all over again! On the flip side, a lot of sellers will refuse the first offer which winds up being MUCH higher than what they wind up with 3 or 6 months later.

Under Contract! 126 Rhode Island Avenue $549,995

2010-08-05T09:55:00.001-07:00

After looking at loads of condos, my buyers fell in love with this house and decided they were house people! This lovely re-done home with lower level apartment caught their eye and the neighboring condos couldn't compare. The current owners bought it as a dilapidated foreclosure and re-did the entire home to the nines. They look forward to frequenting Big Bear and Window's Cafes in their new hood. See pics here.

Support Girls Rock Music Camp!

2010-08-05T09:49:00.000-07:00

I have friends and clients who are volunteering this year at a Girls Rock!DC, a week-long camp that helps young girls build self confidence and learn about music. The campers have a showcase at the 9:30 club from 11-1 on Saturday August 14th. For $10 you get to see a fun show (it's certainly going to be more exciting than my summer camp's talent show!), check out what the 9:30 club looks like in daylight, and support a great cause. More info here.

Under Contract! 1624 Corcoran Street #J $699,000

2010-07-15T08:05:00.000-07:00

After looking at 1 and 2 bedroom condos all over Dupont and Georgetown, my out of town buyers picked this lovely 2 BR at 17th and Corcoran to call home. They liked the more traditional separated layout over the newer units with their total openness. Having two fireplaces and a gorgeous kitchen helped seal the deal as well. Pictures here.

Under Contract! 912 F Street #1109 $849,900

2010-07-15T07:57:00.000-07:00

My buyers fell in love with the large kitchen and amazing city view that this penthouse 2BR has to offer. It's in the heart of Penn Quarter and within blocks of their favorite restaurants, museums, and shops. Check out all of the windows! Pictures here.

Coop Boards and Landlords use Facebook to Check Out Prospective Residents.

2010-06-24T12:07:00.000-07:00

The New York Times Real Estate Section recently wrote this article entitled "Caught in the Web" about Coop boards and landlords going online to check out Facebook photos and Google search records of potential building inhabitants. DC doesn't have coop boards that are as strict or political as Manhattan's, but I think that this internet searching is a fair housing MINEFIELD and I'm concerned about it happening here. In Washington the fair housing laws prohibit clients who use Real Estate Professionals from discriminating based on the following: Race, Religion, Color, Age, Sex, Familial Status, Disability, National Origin, Marital Status, Matriculation, Personal Appearance, and Source of Income. Going online and seeing that your well qualified potential tenant has a teenage soon who looks "up to no good" is discriminatory because you are judging familial status as well as personal appearance. We as members of our community, whether that be as Real Estate Professionals, landlords, members of coop or condo boards, or in other capacities need to put our stereotypes aside and focus on who is financially able and then not worry about what their Facebook photos or Google results. Long and Foster's Leasing Services does a very thorough background check on applications for our company's rental listings and if there is something misrepresented or financially questionable they will find it.

DC's Transience

2010-06-22T09:10:00.000-07:00

We know DC is a transient city, people are constantly moving in and out of the Washington area...This website shows a map of where the residents are coming from and where they are moving to. Scroll down and compare DC to LA which apparently is losing residents in droves.

Bidding Wars in Penn Quarter

2010-06-21T08:38:00.000-07:00

This lovely 3BR in Penn Quarter came on the market a few weeks ago and my clients wanted to get in immediately. There were multiple offers and my clients wrote an escalation clause into their contract that went well over the listing price of $775,000 and still were not the winning offer. This is extraordinary as the last unit with this floorplan sold for $690,000 (it was tenant occupied and in a lesser condition- but still a large difference!). Although my clients were dissapointed and it was frustrating to lose out to another buyer, I thought it was a great sign for Penn Quarter and how in-demand larger units are there.

"Close First, Then Splurge" From the WSJ

2010-06-17T16:19:00.001-07:00

Close First, Then Splurge

The Wall Street Journal, By Jonnelle Marte

June 13, 2010

The mortgage was approved and the closing date is set. Now you can go shopping for those new appliances and furniture, right?

Wrong. More mortgage lenders are pulling last-minute credit reports before the closing date, sometimes even the day before. And sudden changes to credit balances and assets could delay a closing or bump up an interest rate.

That means home buyers -- especially those trying to meet the June 30 deadline to qualify for the home-buyer tax credit -- should keep their credit profiles and liquid assets as unchanged as possible in the time between an initial mortgage approval and a closing, mortgage analysts and credit experts say.

Lenders don't want to see you take on new debt, so hold off on major credit-card purchases -- those that reduce available credit by 5% or 10% or more -- says John Ulzheimer, president of consumer education for Credit.com. So if you have a credit limit of $25,000, keep purchases below $2,500.

Don't apply for new credit cards or other loans. The credit inquiry a lender makes when you apply shows up on your credit report and can affect your credit score.

Also, avoid substantially tapping liquid assets, such as checking and savings accounts and certificates of deposit, says Keith Gumbinger, mortgage analyst for HSH.com, a publisher of consumer-loan information.

Financing frustrations after the storm

2010-05-28T07:09:00.001-07:00

So April was a HUGE month for DC Real Estate. Home sale numbers went up as buyers scrambled to get the tax credit. Well priced homes sold quickly and for great prices. While sellers were thrilled in April, they are less thrilled in May as many of the buyers' loans are not getting approved by the financing deadlines due to mortgage lenders and underwriters scrambling to service the influx of loans. Lenders are working on loans according to settlement date, hoping to have everyone approved and funded by their contractual settlement date, NOT the financing contingency date. At Prosperity Mortgage, the Long and Foster subsidiary of Wells Fargo, they have implemented forced overtime and working weekends for the underwriters. Unfortunately in cyclical businesses, there are times when the lenders and appraisers are simply going to have a larger backlog of work, and you can't hire more people just for one busy month. What I would tell sellers is this: be patient, you benefited from the robust Spring market because your home went under contract, and now it is time to ride out one of the frustrations of a busy market.

New website for basement renters and landlords

2010-05-28T06:45:00.001-07:00

DCRA has started a new website for DC basement rentals www.rentmydcbasement.com. The website contains great information about safety issues and proper licensing of basement rentals. The comments section allow readers to ask questions and so far it looks like most people have been answered or directly to the appropriate resource. I wish more DC agencies would have such easy to use and helpful websites!!

Maryland's new tax incentives for developers to convert rather than build

2010-05-24T10:15:00.000-07:00

Maryland's green version of historic tax credit bill becomes law
Washington Business Journal - by Daniel J. Sernovitz

A Maryland tax credit program aiding developers in finding new uses for older buildings got a new infusion of green Thursday. Gov. Martin O’Malley signed a bill earmarking $10 million for the state’s Sustainable Communities Tax Credit. The program replaces the state’s Heritage Structure Rehabilitation Tax Credit and expands eligibility to buildings across the state that are being rehabilitated but aren’t old enough to qualify as an historic structure under the old designation.

The historic tax credit, which was set to expire if not reauthorized, has come under fire from legislators across Maryland because it has favored Baltimore City more than other jurisdictions. That’s in large part because the city has more historic buildings than other counties in the state.

The revised tax credit encourages rehabilitation projects around transit lines and those projects that are tied to the federal Base Realignment and Closure plan. “The investments we make in our existing communities, towns and cities today significantly influence economic prosperity and sustainability in those places tomorrow,” O’Malley said in a statement.

The compromise should help main streets in places like Howard and Montgomery counties, while still fueling projects in Baltimore, said developer Donald Manekin. Manekin has benefitted from the credits for two of his projects in the city, Miller’s Court and Union Mill, rehabilitations of former industrial buildings that wouldn’t have been economically feasible without the aid, he said.

“This is seen as an important economic development stimulant and it plays an enormous part in the work we’re trying to do in and around the Baltimore area,” Manekin said in a telephone interview. Manekin’s Union Mill project benefitted from $2.9 million in tax credits, equity the developer can use to leverage more money to fund the $20 million project. Once it’s completed, the 86,000-square-foot mill will be converted into 54 apartments and 30,000 square feet of office space.

Chinese Drywall

2010-05-06T08:44:00.000-07:00

What is Chinese Drywall? Why is it in the news? Do I need to be concerned?

Chinese drywall was imported by the US from 2001-2006 due to the large amount of construction taking place and builders needing to import extra materials. The drywall from China emits dangerous levels of chemicals that are making people sick as well as corroding metals such as copper wiring and air conditioning coils. Homes with this Chinese drywall emit strong sulfur odors. Recently Hud and the Dept. of Consumer affairs has instructed homeowners to gut the houses if it was built with drywall. Senator Nelson from Florida (a state with a large construction boom in the early part of the decade and hence many unhappy homeowners) is calling for the Chinese government to step in and pay for the damages. It will be interesting to see how this plays out with the economics of rebuilding thousands of homes. Here is a good article on the drywall and the recent developments.

Note to sellers: take the weird stuff down!

2010-05-05T12:57:00.000-07:00

Yesterday I visited an open house in Arlington that clearly belonged to two movie buffs. The house itself was very cute but the basement was outfitted as a movie theater (complete with purple and brown VELVET wallcovering) and some framed displays of movie collectibles. I had to snap pictures on my camera because it was just beyond bizarre. I would highly recommend taking anything unique like this off the walls before you put your house on the market because if it was distracting to me I can only imagine a buyer's reaction!

New Vacant Property Tax Regulations & FEES

2010-04-26T14:09:00.000-07:00

Just got this e-mail blast from the Washington DC Association of Realtors urging us to fight Mayor Fenty's new vacant property registration fees...under the new rules, homes listed for sale or rent are NOT EXEMPT.

Starting this week, the District Council will begin hearing testimony on Mayor Fenty's Budget proposal to create a new $250-$5,000 Vacant Property Registration Fee.

The initial registration fee will be $250.
The renewal registration fee for the first renewal year will be $500.
The renewal registration fee for the second renewal year will be $1,000.
The renewal registration fee for the third renewal year will be $2,500.
The renewal registration fee for the fourth renewal year will be $5,000.

The revenue created by this potential fee is staggering - almost $8 million in just over 4 years.

The following existing exemptions WOULD BE ELIMINATED in the Mayor's proposals:
For Sale properties, For Rent properties, newly-constructed properties, properties under active construction, properties that are subject to probate, and properties subject to fire, flood, or other casualty.

Now, I know that DC is struggling for funds (I've never ever gotten a speeding ticket in the 8 years I've lived in the DC area and I've gotten TWO camera tickets in April...BE CAREFUL DRIVING OUT THERE) but this is a tax on listings in a city where a lot of people are already losing money on their sold properties. I understand the city wanting punish owners who leave properties vacant to become unsightly rundown houses with overgrown lawns, but if someone's house is on the market (and it sometimes will take over a year or two to sell unfortunately) it's not fair to require a fee or for them to take a tenant.

DC starting "pay by phone" parking meters

2010-04-09T10:18:00.000-07:00

This is very exciting!!
From a DDOT press release:

DDOT Launches Pay By Phone Parking Meter Pilot

Cashless Payment Service Will Begin April 12

(Washington, DC) –There’s a new way to pay for parking in the District, and all you need is a mobile phone. The District Department of Transportation (DDOT) today launched a Pay by Phone pilot program that will eliminate the need to carry change for the meters or run back to your car to add more time. This cashless payment option will be offered at 700 parking spaces in three areas: Dupont Circle, Union Station, and downtown on K Street, I Street, and New York Avenue, NW.

“This service will greatly improve the parking experience for many of our residents, because it’s so simple to use,” said DDOT Director Gabe Klein. “No one likes to carry a lot of change, but almost everyone has a cell phone, and all it takes is one call to pay for a meter.”

DDOT will begin operating the service on April 12, but motorists can sign up today at paybyphone.com or by calling 1-888-510-PARK (7275). Drivers will need to provide their mobile phone number, license plate and credit card number.

Once they are signed up with a free pay by phone account, users just follow these simple steps to make a payment:
1. Call the toll free number from their mobile phone
2. Enter the location number that is posted on the meter or nearby signs
3. Enter the parking time desired.
The appropriate total will be charged to their credit card. A history of transactions is viewable any time the user logs into their account.
When paying by phone, motorists may also select the option to receive a text message reminder minutes before their time expires and can also call back to add additional parking time remotely from any phone, provided they won’t exceed the parking time limit. That feature greatly reduces the chance of a parking violation.

Restaurant Review- Tackle Box in Georgetown

2010-03-31T08:13:00.000-07:00

Tackle Box opened almost two years ago and billed itself as a "lobster shack" in the city. I had been hesitant to try it because I am totally spoiled when it comes to lobster and nothing compares to buying them live to cook for dinner at my grandparent's house and packing lobster rolls the next day for a beach picnic. A friend of mine bought a "groupon" coupon and wanted to try it so we went last Sunday night for dinner. It's a little bizarre to have a fish shack in the middle of M Street that doesn't have any outdoor seating; and while DC is a friendly town, I didn't love having to share a picnic table with other diners. Tackle Box's menu has different meal combos and you chose one entree, one or two sides, and then a sauce. I was going to go for scallops until the cashier told me they were fried...so I asked for the grilled trout instead and got a side of mac and cheese. The mac and cheese was good and gooey and the trout was okay but nothing was exceptional. One friend got a side of sweet potato fries that were stringy and soggy and another got the lobster roll with friend green tomatoes. The tomatoes were good and she said the lobster roll was as well but not worth $20. Overall I think Tacklebox is a bit of a tourist trap and I'll stick to authentic fish shacks even if I have to drive a ways to get to them!

FYI- FHA funding fee increasing

2010-03-26T11:39:00.000-07:00

It sounds like a big increase but if you look at the actual monthly change it's not going to matter to most buyers...

From Ryan Dailey at Prosperity Mortgage:

Please be aware that, effective April 5th, the upfront mortgage insurance on all FHA loans will increase from 1.75% to 2.25% of the base loan amount. Case numbers must be ordered before the 5th to avoid the increase. Case numbers are ordered when the appraisal is ordered.

Since buyer's finance this fee by rolling it into the loan amount, this will not increase the cash required for settlement.

Examples:

Current Scenario
300,000 loan amount + $5,250 funding fee = $305,250 total loan. Monthly payment $1,638

Scenario Effective April 5th
300,000 loan amount + $6,750 funding fee = $306,750 total loan. Monthly payment $1,646

The monthly payment went up by $8/month.

Under Contract! 11236 Edson Park Place #30 $415,000

2010-03-25T09:58:00.000-07:00

My client fell in love with this wall of windows and loads of light in this Rockville condo that lives like a townhouse. Wood floors and a fireplace add lots of warmth and the location across from White Flint Mall and walking distance to the metro was a real draw. More pics here.

DC's best rummage sale this weekend!

2010-03-25T09:49:00.001-07:00

This weekend is the Junior League's annual fundraiser "Tossed and Found" in Crystal City. It's a fantastic rummage sale with really quality items that are DIRT CHEAP. Lots of furniture, books, home goods, designer clothes, etc.. For more info on the sale, location and hours, click here.

Under Contract! 1750 Euclid St NW #1 $599,000

2010-03-25T09:44:00.000-07:00

A buyer of mine got a contract on this lovely listing in Adams Morgan. It's spacious and sunny 2 Bedroom condo in a converted townhouse. Lot's of charm with a fireplace and back patio. Pics are here.

Smallest Kitchen I've Ever Seen

2010-03-19T08:32:00.000-07:00

This just made me laugh when I saw the picture of this kitchen in a Dupont circle studio (priced at $185,000) It's a nice studio/jr. 1 bedroom with a massive walk-in closet but with this kitchen I would think you would have to get used to eating take-out every night!

With Foreclosures- We'll Take Any Good News!

2010-03-11T09:46:00.001-08:00

Foreclosure rates up by smallest amount in 4 years
By ALAN ZIBEL (AP) – 2 hours ago

WASHINGTON — The foreclosure crisis isn't over, but the pace of growth may finally be slowing down.

RealtyTrac Inc. said Thursday that the number of U.S. households facing foreclosure in February grew 6 percent from a year ago, the smallest annual increase in four years. On the state level, foreclosures declined on a monthly and yearly basis in the hard-hit states of Nevada, Arizona and California, but still grew rapidly in Florida.

More than 308,000 households, or one in every 418 homes, received a foreclosure-related notice, the Irvine, Calif.-based foreclosure listings company reported. That was down more than 2 percent from January

Elephants coming to DC!

2010-03-11T08:22:00.000-08:00

(and no I don't mean Republicans...)

The circus is kicking off it's DC shows with an elephant parade from SW to the Verizon center next Tuesday March 16th. For info on the route, click here.

Can the city require recycling?

2010-03-01T13:14:00.001-08:00

D.C. to require cardboard, plastic recycling

By: Michael Neibauer
Washington Examiner Staff Writer
February 26, 2010

All property owners in the District -- commercial and residential -- will be required to separate cardboard and plastic containers from their regular trash under overhauled recycling regulations being proposed by the Fenty administration.

The revised rules also quadruple in some cases the fines for commercial property owners who repeatedly fail to properly recycle. Penalties for homeowners, generally $25, are not slated to change.

The amended regulations are an attempt to broaden the District's recycling collections and to discourage repeat commercial violations by holding down penalties for the first and second offenses, but hitting violators hard for subsequent wrongs.

The Department of Public Works in 2008 expanded the types of products it could recycle to include wide-mouth plastic containers, plastic toys, plastic lawn furniture and milk and juice cartons. But the agency only requires that newspaper, office paper, yard waste, metal and glass containers are separated from the regular garbage.

Plastic containers and cardboard can be tossed with the regular trash, for now, though some D.C. residents say they recycle those commodities today.

"I already do," said Tenleytown resident Beverly Sklover. "I would do it anyway. I think it's fabulous."

The District's fiscal 2009 residential recycling rate -- recyclables collected versus total trash thrown away -- was about 24 percent, according to DPW. But homeowners are responsible for only 30 percent of the District's trash.

The revised regulations target businesses, the most prolific trash producers, for more rigorous enforcement.

Amended fines for owners of commercial and apartment buildings would run from $200 for a first offense to $600 for a second within 60 days and $1,500 for a third within 60 days. Current penalties range from $25 to $1,000 per violation, depending on the size and type of building.

The District is right to save its harshest penalties for those who prove unresponsive to the rules, said W. Shaun Pharr, senior vice president of government affairs with the D.C. Apartment and Office Building Association. The size of the building, he said, "is completely unrelated to whether you've been making an effort to comply with the law."

The proposed rules are expected to be made available for public comment on March 5

DC residents rank 2nd on "well being"

2010-02-17T10:56:00.001-08:00

Washington Business Journal - by Jeff Clabaugh Staff Reporter

Among big-city populations, Washington area residents have the second-best feeling of well-being in the nation, according to a Gallup poll released Monday.

The Gallup-Healthways Well-Being Index is based on results from 350,000 respondents who answered more than 40 questions about the current state of their lives. Gallup said questions ranged from how they feel physically and emotionally, to the state of their social and professional lives and their outlook for the future.

Among the nation’s largest cities, Washington ranked No. 2, topped only by San Jose, Calif. Raleigh, N.C., Minneapolis, San Francisco, Boston, Seattle, Virginia Beach, Va., Atlanta and Kansas City, Mo., rounded out the rest of the top ten.

“The index differs from every other measure out there, in both scale and scope,” said Ben Leedle, CEO of http://images.bizjournals.com/email/cwatch/w.gifHealthways Inc., a well-being management company. “It looks beyond mere physical health … to encompass total well-being, all of the various facets of our lives that interweave to make us who we are, healthy or sick, happy or sad, productive or nonproductive.”

Boulder, Colo., was ranked as No. 1 among all cities, regardless of population size. In that overall listing, Washington ranked eighth. When well-being was measured by statewide surveys, Hawaii ranked No. 1.

DC's record breaking snowfall

2010-02-09T10:36:00.000-08:00

A local YouTube user set her camera to take a picture of the falling snow every 5 minutes.

Decorating on a budget

2010-02-04T08:46:00.000-08:00

Using resourceful designers, craigslist, ebay, and elbow grease this Brooklyn couple re-did their bedroom with a budget of only $1500! See NYT article here.

Choosing to walk away from a mortgage

2010-02-04T08:26:00.000-08:00

The New York Times had a very interesting article a few days ago about homeowners who are able to continue making mortgage payments but walking away (and letting the bank foreclose) now that their home's value has declined. It's a hard statistic to measure, but according to David Streitfeld, "New research suggests that when a home’s value falls below 75 percent of the amount owed on the mortgage, the owner starts to think hard about walking away, even if he or she has the money to keep paying." The article presents a few scenarios as well as what could happen to the fragile economy if many more American homeowners decide to do this. Even more interesting to me were the reader comments debating the ethical and economical repercussions (I read the "highlights" of the reader comments).

One reader wrote in:

"That secured value changes, most contracts state that non-payment will result in foreclosure (they get the asset). It seems to me like the one who made the bad bet is actually the lender, not the house owner.

If I didn't think that the house would recover its value for 5 or 10 years, I'd give the asset back to the lender. Its my contractual right written in there in the contract drafted by the lender. I think everyone in this situation should do this (its what companies do) and it is financially astute to do so in the long run unless, of course, you think that paying 150% of the going asset price (the mortgage you pay as opposed to the rent you would pay) is financially astute!"

Another argues "What's sad is that we have become a lawless society devoid of any consequences no matter how egregious the offense. I'm not saying these people are wrong for walking away, banks would and have reneged on their agreements. But ultimately we all pay, with tax dollars and our integrity."

You can still trust the market!

2010-02-02T12:55:00.000-08:00

Pricing a property is one of the difficult parts of any real estate agent's job. A seller wants the highest price possible, but when you over-price you run the risk of racking up days on the market which can turn buyers off even when you've lowered it to a reasonable price! You are much better off starting at the "right" price and that will yield a better offer. However, sellers are usually very wary of under-pricing their house, and think it's a delicate balancing act. Fortunately for our business, it's very hard to under-price because THE MARKET WILL DRIVE UP THE PRICE. A house in Chevy Chase recently went on the market and was listed for a price that was shockingly low. It was bid up and sold $185,000 OVER the asking price. This is an extreme story but I thought it was very indicative that you can trust the market!

Price Reduction! 3020 Dent Place #24W $525,000

2010-01-29T09:48:00.000-08:00

What is a parking spot worth?

2010-01-26T10:15:00.001-08:00

It's hard to put an exact price on a parking space in different neighborhoods; when new buildings are sold, parking is often negotiated or "free parking" included if the building wants to hold firm on their prices. There is currently a one bedroom listed in DuPont (18th and Q area) with a parking space available for an extra $47,500. Seems higher than I would have estimated but it is quite a luxery to have a spot in DuPont.

Capitol Hill house goes under contract in 2 days!

2010-01-25T10:54:00.001-08:00

Above is a house on the corner of 9th and G, SE which came on the market last week at $569,000. I had hoped to show this house to clients last weekend but it was snapped up with 2 offers immediately after going on the market. It's in good shape and 2 BR plus a den/nursery which is very hard to find close-in on the hill for under $600k. More pics of the property here.

Restaurant Review- Rosa Mexicano in Chinatown

2010-01-19T12:08:00.000-08:00

Last weekend I joined a bunch of friends at Rosa Mexicano for restaurant week. I've said on this blog before that I have a love-hate relationship with restaurant week and I also have a love-hate relationship with "upscale Mexican." First things first, restaurant week is a great chance to try out restaurants and get A LOT of food for a $35/head dinner. It's a fun excuse to get people together, but I often feel like many of the entrees have been sitting under heat lamps and you aren't actually getting to experience the restaurant's best food. Well this year for Rosa Mexicano we got the guacamole appetizers which they make at the table, so there's no chance of a heat lamp or the dip being anything but perfectly fresh. They also serve the guac with chips that are both pre-salted and not broken into little pieces. Listen up restaurants: there's no reason to serve unsalted chips! Secondly, I chose to order off the normal menu and get a salad with mango salsa and rare tuna, it was delicious and I think a better choice than paying for enchiladas or fajitas or something similar that I could order for half the price at a more modest Mexican restaurant. When I go for "upscale Mexican" I try to order dishes that are more adventurous or with nicer ingredients that your typical Mexican entree. We got lots of sangria and pomegranate margaritas and also tried a new drink "the Michelada" hailed as dinner's answer to the Bloody Mary, a Tecate beer with lime and spicy seasonings served in a glass with a salted rim, it was horrible but I'll try anything once! Friends who got dessert as part of the restaurant week deal ordered the apple cheescake and the hazelnut chocolate cupcake and I tried bites of both. While I love anything chocolatey, I would definitely recommend the cheesecake as the best. After a great group dinner and another round at the bar we were off to a certain dance floor on Wisconsin Avenue to work off our meal!

Enough people call MoCo's tax ridiculous and it's dropped

2010-01-14T13:00:00.001-08:00

Two days ago I blogged about the absurd new transfer and recordation tax applied to short sales and apparently enough people made noise that less than a week after it's introduction, it's already been repealed. The local title attorneys and Greater Area Association of Realtors did a great job getting the word out about this and getting it pulled quickly!

Montgomery County enacts ridiculous new tax provision

2010-01-12T13:40:00.000-08:00

Anyone who has bought or sold real estate in this area is surely familiar with the transfer/recordation tax that shows up as a pesky additional cost to both buyers and sellers on the Hud-1 Settlement Statement. Depending on the jurisdiction and purchase price the tax percentage varies but it is ALWAYS a percentage of the sales price. Now, Montgomery County has decided to raise revenue by taxing the amount the seller owes on the property in short sale situations (short sales involve a purchase price that nets the seller less than what he/she owns on the property- and requires bank approval). This is difficult in many ways because it not only increases closing costs for buyers who may only have so much cash to bring to closing, and it makes it impossible for lenders to give an accurate good faith estimate of what closing costs will be because often information about what a seller owes on the property is not readily available. What the folks at Settlement Pros have advised us is that buyers should write language into the contract that additional transfer/recordation tax on anything above the purchase price is to be paid by the seller.

DC "topples" NYC with commercial leasing rates

2010-01-12T13:36:00.000-08:00

DC is set to become the most expensive rental market in the country. New York's vacancy rate has skyrocketed due to the recession and collapse of many financial institutions and DC's market has gotten an influx of tenants due to government expansion. Detailed info from the Wall Street Journal (including a map of where the biggest newcomers are setting up shop).

Contemporary style- pared down to condo size.

2010-01-07T13:03:00.000-08:00

Can you tell which is $3 million? Many home buyers have dream houses in mind and then go looking for that feel on a more modest level. For condo shoppers, that may mean looking for scaled down architectural details (either original or added) that give the space a feel of their favorite homes. I saw this new listing on the edge of Adams Morgan and Mount Pleasant that reminded me so much of much larger (and much more expensive) contemporary homes. Pics of Adams Morgan condo ($569,900) here. Pics of Bethesda home ($2,950,000) here.

Outlook for 2010

2010-01-05T13:16:00.001-08:00

For 2010 economy, glass is half empty and half full

by V. Dion Haynes

Washington Post Staff Writer
Monday, January 4, 2010

The economic outlook for the Washington region in 2010 is mixed -- with continued sluggishness in convention bookings and commercial real estate but some improvement in employment and productivity projected.

Like much of the country, the area suffered in 2009 under the recession as unemployment and office vacancy rates rose and retail sales and construction activity slowed. But the federal government, which has largely shielded the region from the full brunt of the economic downturn, is expected to help propel it into recovery.

Federal spending, the engine that drives the region, should fuel a slow but robust recovery that will materialize sooner here than in most other parts of the country, local economists say. Stephen S. Fuller, director of the Center for Regional Analysis at George Mason University, forecast that the region's economy will grow 2.8 percent in 2010 and 4.0 percent in 2011. That would surpass projections for the U.S. economy to grow 2.2 percent in 2010 and 2.8 percent in 2011.

Over the next several years, the federal government is planning to hire as many as 120,000 workers in the region for various agencies, including the Department of Veterans Affairs, the Department of Labor, and the Food and Drug Administration. The expansion would not only boost employment but also absorb a portion of the vast supply of empty office space in the region.

Jobs lost in 2009 should be offset in 2010, Fuller said, with a net gain of 23,900 positions by year's end. That number is projected to grow to 34,900 in 2011 and 42,000 in 2012.

601 Pennsylvania Avenue NW #1206 SOLD! Full Price $449,000

2009-12-31T08:28:00.000-08:00

This one bedroom generated a lot of excitement once it went on the market. The classic and elegant renovation as well as the sought after capitol views got it sold in no time. Many other one bedrooms have sat on the market for much longer in this neighborhood which reinforces the importance of move-in condition and starting at the right price. Certain segments of the market have the demand, and if the properties are up to par, they will sell quickly!

Wesley Height's Westchester Building featured in NYTimes

2009-12-31T08:24:00.000-08:00

I always enjoy the city to city (or city to country) comparisons in the New York Times Real Estate section. Last week was what you can get for $400,000 in DC, St. Louis and Waynesboro Pennsylvania. The DC choice was a large 1BR coop near my office in a beautiful older building. Click here for article with slideshow.

New Listing! 601 Pennsylvania Avenue NW $449,000

2009-12-14T12:01:00.000-08:00

Nancy Itteilag and I have this gorgeous 1 BR 1.5 Bath condo in "The Pennsylvania" which is actually on Indiana Avenue behind Pennsylvania and away from that traffic noise. It's a lovely renovated unit with granite in the kitchen and baths and a balcony with great views of the Capitol. The building also has a great rooftop deck with amazing monument views. It's priced very well at $449,000 and $459,000 furnished. More pics here.

Great Value by U Street- $529,000

2009-12-04T11:54:00.000-08:00

Love this house- Would be great for someone who wants to renovate but keep some of the original details of the home. 1424 Florida Avenue NW, a great location! See the virtual tour here.

Extended First Time Homebuyer Tax Credit

2009-12-01T13:17:00.000-08:00

The first time homebuyer tax credit has been extended and expanded to include higher income purchasers. There is also a credit offered to "move-up" buyers. This website gives good answers to commonly asked questions about the credit and eligibility.

Shop for a Good Cause!

2009-11-19T13:55:00.001-08:00

This weekend is "A Capitol Collection" (ACC), a weekend long shopping event with proceeds benefiting the Junior League of Washington. It's a wonderful way to get lots of holiday gifts in one place (everything from specialty foods to toys, jewelry, clothing, home gifts, etc...) and contribute to one of Washington's premier charitable organizations. Click here for more information on ACC. The shopping extravaganza is located near the Woodley Park Metro at the Marriott.

Just Sold! 2121 2nd Street NW #4 $190,000

2009-11-17T12:52:00.000-08:00

My wonderful petite 1BR listing in LeDroit Park went to settlement yesterday. The buyer mentioned that one of his selling points for LeDroit Park was it's fantastic farmer's market (I haven't been but now plan to check it out). He loves most of my client's bright color choices throughout the condo but plans to re-paint her beloved red kitchen!

Wells Fargo coming out with new BUYER BEWARE addendum for foreclosures

2009-11-10T11:31:00.001-08:00

This morning at my office's weekly sales meeting we talked about the ever exciting world of foreclosed properties. Apparently Wells Fargo (who holds quite a few of the area's foreclosures) is rolling out a new 16 page addendum that SUPERSEDES any regional contract language and it's a pretty scary document. Language added includes provisions that release the seller (the bank) of any liability to fix damages. With winter coming up, many of these properties that have not been properly winterized have risk of pipes bursting and other such problems that the buyer would have no protection against. I've said this before but these foreclosed properties do not look like such deals after you pay for all the hidden problems!

Stunning Farm Between Washington and Charlottesville

2009-11-10T11:19:00.000-08:00

An agent in my office has this stunning listing out in Rapidan VA which is about 1.5 hours from DC and 45 minutes from Charlottesville. Pool, tennis courts, ponds, pretty much everything you need in a country estate! Disclaimer- this virtual tour will make you want to leave your desk job and open up a B&B in the country! Priced at $2,495,000.

Congress Passes Extension of FTHB Credit

2009-11-06T12:04:00.000-08:00

Got word yesterday afternoon that the extension of 2009's first time homebuyer tax credit has been extended to April 2010! It's not in effect until signed by President Obama which should happen any day. The National Association of Realtors designed this chart with everything you need to know!

4200 Cathedral Avenue NW #602 UNDER CONTRACT!

2009-11-05T11:46:00.000-08:00

We are seeing quite the pick-up in sales of entry level properties. 4200 Cathedral Avenue NW #602 had a recent price reduction to $160,000 and is under contract! The buyer hopes to settle in time for the first time buyer credit in case it's not extended. Everyone is hoping that the increased activity will "trickle up" and start moving into the upper bracket, which is still very slow.

FHA 5 Year ARMS

2009-10-21T14:37:00.001-07:00

I know that ARMS (adjustable rate mortgages) have gotten a bad reputation these past few years, ARMS are often cited in press about the foreclosure situation and unethical predatory lending. That said, some ARMS make a lot of sense for certain buyers. The Prosperity Mortgage's new FHA 5 year ARM rates are 3.75% for the first five years and can go up a max of 1% per year, capping out at 8.75% in the 10th year. So if a homeowner thinks they might be in a property for 5-7 years, their average interest rate over those 7 years is still less than it would be with a 30 year fixed mortgage and they get the benefit of having lower payments in the first few years of ownership. With an ARM (and with any loan) you have to read the fine print to know what you are getting into down the road should plans change and you wind up in the property for longer than 5 years.

New Listing! 3020 Dent Place #24W $550,000

2009-10-21T14:26:00.001-07:00

Perfect starter condo in Georgetown, 2BR/1 Bath with plenty of closet/storage space and it lives like a house with a nice foyer, separate kitchen, dining room, and living room. Crown moldings and nice wood floors make the home very charming. Very well priced at $550,000.

"Spite" Houses

2009-10-21T14:04:00.000-07:00

Spite houses are houses built by one neighbor out of "spite" in order to block a neighbor's access to sunlight, an alley, a view, etc... The new listing 3047 N Street below is an example of a house thought to be a spite house. This Washington Post answer explains and highlights some other spite houses in the DC area. They tend to be oddly shaped (or very skinny!).

New Listing! 3047 N Street NW $1,329,000

2009-10-16T13:09:00.000-07:00

This lovely jewel-box house will be open Sunday Oct. 18th 1-4.

Under Contract! 2121 2nd Street NW #4

2009-10-14T09:31:00.000-07:00

We've gotten a ratified contract on 2121 2nd Street- great news for my seller as well as the new buyer. I know the buyer will love this quiet street in the heart of Ledroit Park and enjoy his new condo. More pics of the unit here.

HUGE changes coming in FHA loans and spot approval process

2009-10-09T11:07:00.000-07:00

Earlier this week I got an e-mail from Ryan Dailey at Prosperity Mortgage regarding the changes coming to FHA loans. Spot approvals are not going away, in fact they are becoming easier in some regards. Lenders that have their own FHA underwriters will be able to streamline the process with in house "Direct Endorsement Lender Review and Approval Process." The change I am most excited about is that the owner occupancy ratio is currently 51% and will be changed to 50%. This doesn't seem like a large change- and isn't in a building of 100 units. But in a four unit building (like my listing 2121 2nd Street) with 2 owners occupants and 2 investor owned units- this makes a great difference! Also projects of more than four units were previously allowed 10% with FHA insurance and the limit will be raised to 30%.

Price Reduction! 4200 Cathedral Ave NW #602

2009-10-09T11:00:00.000-07:00

This lovely 1Bedroom condo in Wesley Heights is now only $160,000...the best price in NW DC for a nice building with all new windows and heating/cooling systems. Picture here is of the view looking over Cathedral Avenue.

Change in DC Vacant Property Tax- Now Applicable to "Blighted" Properties Only

2009-09-23T14:00:00.000-07:00

"Less than a year after doubling D.C.’s vacant property tax rate, the D.C. Council terminated the vacant rate altogether on Tuesday and created a new rate to target owners of blighted or nuisance property.

Last year, the council doubled the vacant rate from $5 per $100 of assessed value to $10 per $100 of assessed value at the suggestion of Councilman Kwame Brown, D-at large. It was an attempt to nudge owners of vacant homes and nuisance properties into action. The $10 rate was more than 10 times the residential rate of 85 cents and more than five times the commercial rates of $1.65 to $1.85, prompting complaints from some homeowners and real estate investors.

In a preliminary July vote, the council agreed to return the rate to $5. But in passing final budget legislation Tuesday, councilmembers — again at Brown’s suggestion — did away with the vacant rate altogether, saying it had produced unintended consequences, and replaced it with a $10 rate that will apply only to blighted properties. A blighted property is “unsafe, insanitary, or which is otherwise determined to threaten the public health, safety, or general welfare of the community” because of broken walls, roofs, windows, balconies or other poorly kept features. Boarded up properties will also count as blighted.

Owners of well-maintained vacant properties, including vacant lots, will pay the regular commercial and residential rates."

-Washington Business Journal - by Jonathan O'Connell Staff Reporter

Having a vacant property tax at 10 times the regular tax is not fair to owners who have their properties vacant for one reason or another, and I'm very glad to see the DC council has realized that. In my opinion, changing the rules to apply only to blighted properties is a step in the right direction. I agree that "blighted" properties are an eyesore in any neighborhood, however I don't think the DC government should have the power to punish homeowners with greater tax liability.

Interest Rates

2009-09-23T13:56:00.000-07:00

Breaking News Alert

The New York Times

Wed, September 23, 2009 -- 2:23 PM ET
Fed Will Keep Key Rate Near Zero for 'Extended Period'
The Federal Reserve acknowledged on Wednesday that an economic recovery was under way, but signaled that it was still much too early to start raising interest rates.

In a statement following a two-day meeting by the Fed's policy makers, the central bank repeated that it would keep its benchmark overnight interest rate at virtually zero for "an extended period." That almost certainly means until at least some time in 2010. Policy makers also announced that they would extend the Fed's program to buy up almost $1.5 trillion worth of mortgage-related securities through the end of March.

22 West Decorated Models

2009-09-22T14:04:00.000-07:00

Today I visited a Broker's Open at 22 West, the new building that has gone up on 22nd and M in the West End. I used to live in this neighborhood and have been watching the building go up for years so it was time to get over there and see some units. The finishes are beautiful- very sleek and modern without looking too cold. They had several models open for us to tour and each was decorated by a different local furniture store- Vastu, Contemporaria and Baker. Seeing the furniture, art and light fixtures that each designer chose was a lot of fun. Each unit we saw had lots of closet space and had REAL LAUNDRY ROOMS rather than a closet with a stacked washer dryer. You pay a premium for the luxury of it all- 1BR with dens start at $711,000 and the larger 2BR with den units were just under $2 million on the lower floors. Click here to see more pictures and info about the building.

New York Times "7 New Rules for First-Time Homebuyers"

2009-09-11T12:59:00.001-07:00

The Times ran this article today about the first home decision. I think it's all wise advice, especially urging buyers to think realistically about the maintenance costs.

Great Decorating on Capitol Hill

2009-09-09T14:22:00.000-07:00

I came across this new listing and thought it was a great condo with some nicely chosen renovations and good decor. $339,000 for this 2BR (really 1BR with den)on Morris Place NE. The Master is small and those windows don't look out at much, but the living space really shines. See pics here.

Restaurant Review- Blue Ridge in Glover Park

2009-09-03T12:40:00.000-07:00

I have been dying to try Blue Ridge ever since it's opening in Glover Park earlier this summer. I finally went in last week with my father and some friends who joined us for dinner. The restaurant was EMPTY which I actually loved because I hate shouting to be heard, and apparently had joined other DC restaurants in extending restaurant week since the week-long specials didn't bring out as many diners as hoped. Because several of us got the three course (with anything on the menu) restaurant week deal they gave us several other appetizers to share. We chose the deviled eggs and the sweet potato fritters, both delicious. My meal was a mixed green salad with paper thin apple slices and a lemon dressing and the grass-fed hanger steak that came with root vegetable "mash" which I think was mostly mashed sweet potatoes. For dessert I had ice cream but got to try some of the peach cobbler and pecan pie, both scrumptious! Everything was wonderful, the service was good, and the decor was country but not too kitschy. I would highly recommend Blue Ridge (it is so worth the trek to Glover Park for some grass fed beef!)and I hope it can stay open in this tough climate for restaurants!

Under Contract! 902 N. Columbus Street $498,000

2009-08-27T11:24:00.000-07:00

After looking and looking at houses in DC, my clients traveled to Old Town Alexandria to find this house. This 3BR/2.5 bath house is in great condition, totally renovated, with a lovely backyard! View pics here.

Fall Fun- Kennedy Center and National Book Festival!

2009-08-27T11:08:00.000-07:00

Two day-long events are coming up in September that provide cultural entertainment for free! On September 12th, the Kennedy Center opens it's doors for an Open House Arts Festival. I volunteer at N Street Village a transitional housing center for women who have substance abuse/mental health issues and we are taking the women there to see a performance. This year's open house has circus performers and street performers, ballet and even an "instrument petting zoo" for kids. Click here for the complete schedule. On September 26th, the National Book Festival descends on the Mall. Every year I volunteer as a "line manager" for the Junior League and it is so much fun to see all the young readers lined up to meet their favorite authors. This is certainly not just for kids, as this year's authors include some famous names like James Patterson, David Baldacci, John Irving (my personal favorite- I saw him speak at the National Book Festival years ago), Jodi Picoult, John Grisham, Judy Blume, Nicholas Sparks, Tim O'Neil and many more. It's a wonderful event for readers and if you are in a long line please be polite to the women trying to direct traffic!

New Listing! 8008 Whittier $3500/month

2009-08-27T11:07:00.000-07:00

New Listing 2121 2nd Street NW #4 $199,000

2009-08-22T10:09:00.000-07:00

Foreclosure- Buyer Beware!

2009-08-18T10:44:00.000-07:00

Foreclosed properties (houses or condos owned by the bank when the owner stopped paying the mortgage) are everywhere these days. From million dollar mansions to houses that are barely standing, banks are overwhelmed by the properties they now own. We were talking about foreclosures in my office's weekly sales meeting today and colleagues of mine were sharing stories that are very scary. When one purchases a foreclosure the bank often has "incentives" such as paying for the buyer's title insurance (a few thousand dollars in some cases) for using their title company. What I'm hearing is that these title companies are doing terrible work, not ordering title abstracts, and transferring the property without proper proof that they can do so. One agent in my office got a call last night from a client who bought a foreclosed property in March and came home to a foreclosure notice on his door from another bank. What buyers need to know is that you really should use your own title company and make sure there are no exceptions on your title policy in case claims do arise.

SOLD! 1901 Wyoming #60 $400,000

2009-08-05T14:18:00.000-07:00

Today my client closed on a beautiful one bedroom in one of Kalorama's "Best Addresses" buildings. The Altamont is a beautiful old Coop building with the original lobby and a great roofdeck. Unit #60 has an updated kitchen (with a new range with magnetic knobs that come on and off...very high-tech) as well as a re-done bathroom and lots of closet space. The arched windows, fireplace, and wood floors give the place loads of charm. See pictures here. It wasn't easy getting to settlement, my buyer had to switch lenders due to an appraisal issue, and going through the coop board approval process and interview required lots of extra paperwork, but I think he will find it well worth it!

Condo in DuPont Gets 9 Offers

2009-07-31T08:20:00.000-07:00

This condo, priced at $499,000 on S Street went on the market on Monday and they reviewed NINE offers on it last night. My clients wrote a very good offer, escalating quite a bit over the asking price and we lost out to a buyer willing to pay a higher price. I won't know until it settles what it went for but I would guess somewhere around $550,000. The condo was lovely (see pictures here) and had a real dining room area which is rare in these converted row-house condos.

Report: D.C.-area home prices up ahead of national pace in May

2009-07-29T06:48:00.001-07:00

Washington Business Journal - by Tucker Echols Staff Reporter
D.C.-area home prices rose 1.31 percent in May from April, nearly three times the national advance of 0.45 percent as measured by the S&P/Case-Shiller survey of 20 major U.S. cities.

The national gain was the first in three years. Washington is now among the majority of cities with month-over-month gains. Only six -- Tampa, Los Angeles, Seattle, Miami, Phoenix and Las Vegas -- reported declines.

The D.C. area's home price strength is also visible in longer term comparisons. In the last three months prices in the Washington area rose 3.5 percent, compared to a national decline 0f 8.8 percent. Washington had the third best gain of the four cities that recorded price gains in the last three months, behind only Cleveland, up 19 percent, and Dallas, up 15.7 percent. Charlotte prices advanced 2.9 percent in the last three months and Boston prices were unchanged.

Compared to May 2008, D.C.-area home prices declined 14.9 percent compared to a national drop of 17.1 percent. No city posted a year-over-year gain, but Dallas had the smallest price decrease of 4.1 percent while Phoenix suffered the largest drop in prices of 34.1 percent.

The S&P/Case-Shiller survey of 20 major U.S. cities uses the “repeat sales pricing technique” to measure housing markets. This methodology collects data on individual single-family home re-sales and uses the re-sold sale prices to calculate price declines or gains.

WSJ Article Concerning "Buyer Remorse"

2009-07-28T08:48:00.000-07:00

This is a great article in the Wall Street Journal about the Manhattan real estate market. New York is obviously a very different animal than DC but I think some of the points he makes are applicable anywhere. When outlining some good things to think about before jumping into homeownership my favorite point the author makes is concerning interest rates. "Think about the connection between interest rates and prices. If prices come down another 10% but interest rates increase by 1 percentage point, that would mean the same monthly payment today versus waiting."

SOLD! 1620 Corcoran Street NW #A $365,000

2009-07-27T11:16:00.000-07:00

Last Friday my client settled on this lovely 1 BR condo in the heart of DuPont. Corcoran is a quiet one way street off of 17th Street and steps to Safeway, restaurants and Mr. Yogato!

JFK's Former Home on the Market

2009-07-24T13:44:00.001-07:00

The above house on 31st Street has just been put on the market for $1,595,000. This three bedroom home was JFK's first Georgetown home when he came to Congress in 1947 (according to the listing remarks). Virtual tour here.

Watergate Hotel up for Auction

2009-07-20T07:56:00.000-07:00

The historic Watergate hotel will be going up for auction tomorrow and the sale apparently sparked international interest. The hotel closed a few years ago and was to be converted into high-end condos by Monument Realty. I visited their sales center a few years ago and was impressed by their floorplans, finishes, and of course, those views! Unfortunately the project had trouble on multiple fronts as the Watergate Coop buildings tried to stop the conversion, and the financing fell through when Lehman Brothers went under. The hotel is now in foreclosure. Click here for the Washington Post's recent article on the exciting auction.

A Note About Homeowner's Insurance

2009-07-20T07:13:00.001-07:00

This was included in the most recent Long and Foster e-newsletter to all agents and I thought it was good info to share:

MARKET VALUE VS. INSURABLE VALUE

When your client, who you have helped negotiate an amazing deal on a new home, asks how much insurance they need; what do you say? Knowing the difference between Market Value and Insurable Value can help you correctly advise your clients.

If you suggest the price paid, then your buyer will be including the land value in their insurance limit and possibly pay too much for their insurance. You cannot rely on the appraisal value, since most appraisals are a reflection of market value. Even tax assessments can be up to three years old and outdated.
The correct answer is to insure their home for its replacement cost; which is the actual cost to rebuild the house with an equivalent structure. Insurable value is the home’s replacement cost.

Example: Your client purchased a 3,000 square foot home for $300,000. But even though the purchase price is $300,000, construction costs in the area average $150 per square foot, so this structure has a replacement cost value of $450,000. This means that the home’s insurable value is $450,000 and not the $300,000 purchase price.

Use your resources. Allow Long & Foster Insurance to assist you and your clients with professional insurance expertise. By partnering with Long & Foster Insurance; you will stand out in a crowd of competitors.

Restaurant Review- Granville Moore's on H Street

2009-07-14T10:38:00.000-07:00

Granville Moore's was recommended to me by a client and I tried it a few months ago for my friend's birthday. Granville Moore's is known for their mussels and they are fantastic. It's very rustic decor; large wooden tables and booth seating, chalkboards on the walls with lists of Belgian beer, and lots of dark corners. The mussels and frites are delicious and reasonably priced. After writing in my last post that H Street was a new cool area I thought I had to recommend Granville Moore's to anyone looking to check out this neighborhood. Although I haven't been there, I hear H Street Country Club is also a lot of fun! (Not to be confused with LNS's April Fool's joke about a new bar called "Country Club")

Under Contract- 717 16th Street NE $339,000

2009-07-14T10:19:00.000-07:00

My client just ratified a contract on this lovely home by the H Street corridor. H Street is emerging as a new cool neighborhood with lots of new bars and restaurants. After looking at dozens of short sales and foreclosed properties, my buyer fell in love with this quaint house that has already been updated nicely. The backyard will also be great for BBQ's and hanging out with her dog. See more pics here.

Rumor Mill Regarding FHA Loans

2009-07-14T10:10:00.000-07:00

This has not been confirmed yet but apparently FHA may be stopping the practice of allowing "spot approvals" on condos in buildings that are not FHA approved but fit all of the criteria (such as a sub 50% investor ratio and all owners being current on condo dues). This would be truly awful for the condo market as condos require down payments of 15% for conventional financing. FHA loans have gotten so popular partially because the down payment needed for condos has gotten so high and the first time buyers can't come up with the cash. I just had a spot approval on an FHA loan denied to a client because there was already one FHA deal in the 7-unit building and they wanted to "limit exposure" in any given building, so it doesn't surprise me that the recent popularity of the program has caused them to scale back.

Two Houses With Fabulous Outdoor Space

2009-07-10T06:54:00.000-07:00

These two new listings both have fantastic outdoor space that would be perfect for entertaining or just relaxing solo.

The first photo is 4526 Brandywine which I think is VERY well priced at $875,000. It's walkable to the Tenleytown metro and on a very large lot for AU Park! The backyard is stunning in this one as well. See the pictures here.

Second photo is 3137 N Street. Price at $1,395,000 as the house is recently re-done to the nines and is quite a bit bigger than it looks from the street. The home also has a 2 car garage in back with a storage area and studio overhead! The back patio is so pretty and there is a lovely fountain. Take a look at the pics here.

Washington Post's "Lowball Appraisals Spark Uproar"

2009-07-06T15:18:00.000-07:00

This article ran in the Post on Saturday regarding low appraisals coming in on new loans and re-fi's all over the country. This is a sensitive topic for me right now as I am dealing with an appraisal that came in low and it's insanely frustrating for my buyer, the seller, the loan officer and the agents involved. I remember sitting in Econ 101 years ago and learning that the value of a commodity is the price at which a seller is willing to sell and a buyer is willing to buy. In real estate we have asking prices, offering prices, price reductions, negotiations galore and sometimes even bidding wars that eventually arrive in a number at which the buyer is willing to buy and the seller is willing to sell. I understand that banks feel like there needs to be a check in place to make sure they don't get stuck with a foreclosed property that is worth less than the amount they have lent. That itself is the reason we are seeing more loans require 10, 15 and 20% down payments rather than the no money down and 5% down payment loans we saw just a few years ago. Adding a third party (the appraiser) into the mix who may or may not know the market or be doing competent research on the "comparables" can derail an otherwise smooth transaction. These appraisers have final say on the "value" even though any econ student will tell you that value cannot be determined by one person alone. When I give a seller a suggested price that is my opinion of what someone might be willing to pay, and an appraisal is just that, an opinion. New laws handed down from Fannie and Freddie stipulate that mortgage lenders and real estate agents cannot contact these appraisers to ask for revisions or explanations of an out of whack appraisal, so options are to negotiate the price down, come up with more cash, or start the process over with a new lender. A lesson for the buyers out there: keep those appraisal contingency's in there!

DC Lower Income Tax Abatement Program

2009-06-29T13:56:00.000-07:00

DC has implemented new income limits for their tax abatement program. With one person in the household the income limit is $53,760. With two, the income limit is $61,440, and it goes up to $101,400 for a household of 8. Purchasers are exempt from property tax for FIVE YEARS (!!), do not have to pay the 1.1% recordation tax, and receive the seller's 1.1% transfer tax as a credit. The purchase price must be below $326,760. I have one client who was able to take advantage of the Tax Abatement program and has since switched jobs and gotten a pay increase but is still exempt from paying taxes on the property. It's a great program that can allow folks with moderate means to purchase property and not have to worry about their tax bills for the first five years of ownership.

New Listing in the Appoline

2009-06-29T13:52:00.000-07:00

The condo pictured above is a new listing at the Appoline, a gorgeous building just southwest of DuPont Circle. I sold a smaller one bedroom here in May and my client loves the building and the rooftop pool! It's a good buy at $399,900. Click for more pictures.

Great Economic Info From Brookings

2009-06-23T08:38:00.000-07:00

Click here for Brooking's most recent report on "Tracking Economic Recession and Recovery in America’s 100 Largest Metropolitan Areas." It's fantastic data regarding employment, salaries, home prices, and more factors. The most interesting part for me is how varied the recession is and how different cities are affected in different ways. .

Lenders Now Requiring Condo Purchasers to Obtain Additional Insurance

2009-06-19T07:40:00.000-07:00

From Ryan Dailey at Prosperity Mortgage (a subsidiary of Wells Fargo):
"NEW AND ADDITIONAL INSURANCE REQUIRED FOR ALL (attached) CONDOMINIUM UNITS - The standard coverage provided by the condo association for replacement cost coverage will still be required, however, additional replacement cost "walls in" coverage must be purchased and provided by the borrower. In LIMITED cases, the condo project insurance MAY provide this coverage, but this is likely to be the exception, rather than the rule. Many other Lenders have already instituted this, and many of you have asked if Wells was adding this requirement - they are, effective with all application dates of 7/1."

Lenders used to recommend that condo owners purchase additional insurance and now it is going to be a requirement for most lenders. The coverage is very affordable and a good idea to have anyway!

Restaurant Review- Eatonville at 14th and V

2009-06-18T08:50:00.000-07:00

The owners of Busboys and Poets have opened Eatonville, a new southern-style restaurant on 14th and V. Eatonville is named after Eatonville Florida, a town that is featured in Zora Neale Hurston's literature. Murals all over the restaurant depict themes from Hurston's books and characters. The interesting art and huge space make it quite an interesting space to be in. A friend I was with commented on how nice it was to be in such a large spacious restaurant that wasn't a chain and didn't feel at all like a chain. I went to Eatonville with a few friends which means more dishes to try! For staters we got the large hushpuppy filled with creamy "leak fondue" and rockshrimp, and we also tried the fried green tomatoes which were the best I've had. Their roasted beet salad was delicious and I got to try some of the mac and cheese, mushroom loaf, and etouffee, all were fantastic. The food was reasonably priced and they had a good wine list with several bottles under $30. I would highly recommend Eatonville.

DC Decides to Add Transfer and Recordation Tax to Coop Transactions

2009-06-18T08:21:00.000-07:00

Coops have always been exempt from transfer and recordation taxes because buying or selling involves transfering shares of stock in a building, not real property. Due to the budget shortfalls, the DC government has elected to extend the transfer and recordation tax that applies to buyers and sellers of Single Family and Condo properties onto Coops as well. Effective October 1, 2009, buyers and sellers of Coops will be taxed 1.1% on purchases under $400,000 and 1.45% on purchases over $400,000. If you are looking at any Coop buildings I suggest buying NOW to save yourself and the seller this significant expense! If you own a Coop I suggest getting it on the market asap!

Under Contract- 1901 Wyoming Ave NW #60 $425,000

2009-06-12T12:11:00.000-07:00

My buyer got a ratified contract last night on unit 60 at the 1901 Wyoming. This floor plan is a winner, three (20, 30, and 60) are under contract right now! The Altamont is one of the prettiest buildings in Kalorama with stunning architecture, a beautiful lobby and a roofdeck with fantastic views. My client loved the size of the rooms, arched windows, classic moldings, and high ceilings. Take a look at the condo here.