Living in DC: Columbia Heights

When looking at DC neighborhoods to reside, there are many options to choose from depending on your living criteria. One such residential neighborhood is Columbia Heights, a new hub of DC retail commerce and home of the Tivoli Theatre.





"Once farmland on the estate of the Holmead family (called "Pleasant Plains")...The area began developing as a suburb of Washington soon after the Civil War when horse-drawn streetcars delivered residents of the neighborhood to downtown. Original home of the first building for Columbian College, now The George Washington University was completed in 1822 before the campus was moved to downtown." (Wikipedia)

SHOPPING AND RESTAURANTS

In 1999, the city began it's revitalization project of the Columbia Heights area. The finished product is a combination of mixed-use projects and big box retail stores such as Target, BestBuy, Marshalls, Washington Sports Club, and Giant surrounding the Tivoli Square. Columbia Heights has become the new hub of retail for DC, it is a one-stop shop of restaurants such as Five Guys, Ruby Tuesdays, Chipotle, Ihop, and other local eateries.





CONDOMINIUMS

The majority of condominiums in Columbia Heights are condo conversions of older apartment buildings or townhomes. Columbia Heights by far has the most affordable condos in Washington DC with the average price starting around $215K. As in most urban neighborhoods, parking is difficult and a $35K premium is placed on homes with available parking. There is a huge $50K+ disparity in home pricing from 16th St to 7th St side of Columbia Heights. The condominium prices in Columbia Heights range from $175k to $700k...needless to say, there is something for everyone.



TOWNHOMES

Columbia Heights is also known for its wide array of Victorian style townhomes. The average starting price is $325K.



Call me at 301-452-4767 if you have any real estate questions!

The Greatest Homebuying Obstacle: Location vs. Space

The GREATEST homebuying obstacle facing all homebuyers is: LOCATION vs. SPACE!

It doesn't matter how many homes you visit or research is done on each neighborhood the results always comes back to this issue. When making your initial homebuying criteria list it is important that you also RANK what is most important to you.

This list is an important guide to help you with this overwhelming decision making process.

What is "LOCATION?"
-Location can range from accessibility to public transportation, major roadways, restaurants, shopping, work, schools, or even nightlife such as bars, clubs, and lounges.

What is "SPACE?"
-Space can range from square footage, floor plan, and storage.

How does my choice affect home prices?
-There is a direct correlation between Location and home prices...there is a premium placed on sought after location, especially in urban areas. The farther away from the city the lower prices fall.

How does my choice affect Space?
-It is well-known that in more sought after locations, Space is limited based on your price range. You can expect to gain more Space for a lower price range as you move further out of the city.

Now you might read this and think it's common sense...but it is inevitable that many homebuyers will have many sleepless nights tormenting over this same issue, especially since purchasing a home is a very emotional process.

It doesn't matter if you are a first-time homebuyer or second home...the obstacles and anxieties remain the same.



Call me at 301-452-4767 if you have any real estate questions!

Things to know: Homebuying on the web

For anyone thinking about purchasing a home usually starts with the internet as the primary source for information. You will soon find that there is an overwhelming array of sources to chose from whether you are looking at pictures of homes or researching interest rates and potential mortgage payments!

It will become apparent as you begin moving further into the process and speaking with your realtor and loan officer, that not all the information on the web is ACCURATE!

Here are some things you need to know as follows:

1. The status of properties for sale on the web are NOT always accurate. It doesn't matter where you look on the web...no website provides more accurate information on a property than your realtor's MLS system.

2. Mortgage calculators are NOT accurate in estimating your potential monthly payment on a mortgage. These calculators do NOT take into account PITI (Principle, Interest, Taxes, and Insurance).

3. Never judge a book by it's cover! Depending on the pictures on the web to determine the condition of a property is a poor substitute to actually visiting a property.

4. Research upcoming developments in the neighborhood where you are thinking about purchasing. There is no substitute like local blogs and following up with local representatives and agencies about the status of development projects. Projects are always beginning and postponing due to external factors.

MY ADVICE:Take everything you read on the web at face value. ALWAYS follow up with a realtor and loan officer about questions regarding the homebuying process. Make sure you have all the information to make an informed decision!



Call me at 301-452-4767 if you have any real estate questions!

Living in DC: Gallery Place-Chinatown

When looking at DC neighborhoods to reside, there are many options to choose from depending on your living criteria. One such residential neighborhood is the Gallery Place-Chinatown, a historical east community of over 20 ethnic restaurants.



"The Chinatown area was formerly populated by German immigrants; Chinese immigrants began to populate the area in the 1930s, having been displaced from Washington's original Chinatown along Pennsylvania Avenue by the development of the Federal Triangle government office complex." (Wikipedia)


SHOPPING AND RESTAURANTS
In 2006, Chinatown underwent a $200 million renovation transforming the neighborhood into a bustling area of shopping, bars, and restaurants. Chinatown looks like a mini-Times Square with huge jumbo-trons, Verizon Center, and large chain businesses, such as Starbucks, CVS, Fuddruckers, Lucky Strike, Clydes, etc.







CONDOMINIUMS
Housing in Chinatown primarily consist of modern-style condominiums such as the Residences at Gallery Place, City Vista, 555 Mass, etc. These mixed-use projects are a combination of luxury and convenience with big chain retail store and restaurants on the lower levels such as AT&T, Safeway, Urban Outfitters, etc. The average price of these residences start at $350,000 up to $1 Million for the penthouse.







For more information about the latest news and entertainment in Chinatown dc: visit GalleryPlace.com

Call me at 301-452-4767 if you have any real estate questions!

What is the DC Homestead Act?

So you are thinking about purchasing a new home in the District and you have heard about the DC Homestead Act. What is it?

Well according to the DC official website:

"This benefit reduces your real property's assessed value by $67,500 prior to computing the yearly tax liability.

The Homestead benefit is limited to residential property. To qualify:

1.
An application must be on file with the Office of Tax and Revenue;
2.
The property must be occupied by the owner/applicant and contain no more than five dwelling units (including the unit occupied by the owner); and
3.
The property must be the principal residence (domicile) of the owner/applicant.

If a properly completed and approved application is filed from October 1 to March 31, the property will receive the Homestead benefit for the entire tax year (and for all tax years in the future). If a properly completed and approved application is filed from April 1 to September 30, the property will receive one-half of the benefit reflected on the second-half tax bill (and full deductions for all tax years in the future)."

Basically...the Homestead Act saves you money on your property taxes for ONLY your primary residence.



Call me at 301-452-4767 if you have any real estate questions!

Thinking about Short Sale? What you need to know!

So you are thinking about selling your house as a short sale! Here is some information you need to know.

Short sales can be an extremely stressful experience for both homebuyers and sellers.

A bank will not even consider your short sale application unless you are delinquent with your mortgage payments. If you cannot show hardship, then your application will go at the bottom of the pile. In other words, you will have to sacrifice your credit score in order to leave the property.

You will get a lot of advise from different people. I would suggest contacting Lawrence Tucker at New Era Title. This law firm has been specializing in short sales for over 10 years. They have relationships with every bank and can walk you step by step through the process and do all of the negotiations with the bank on your behalf. This allows your realtor to focus on what they do best...selling your home.

The best part is that New Era Title fees are paid by the bank. You DO NOT pay them for their services. Here is Lawrence Tucker's contact information as follows:

Lawrence Tucker, Esquire, MBA
New Era Title
8521 Leesburg Pike, #450
Vienna, VA 22182
Tel: 703-448-4420
Fax: 703-448-7720
Email: ltucker@neweratitle.com

Many realtors might not admit it, but short sales are NOT for everyone.

Remember...the keyword with short sales is HARDSHIP!



Call me at 301-452-4767 if you have any real estate questions!

5 Things to know before investing in DC Foreclosures

So you have heard about the millions of foreclosures available...and you are thinking about investing. Here are a few things you need to know before embarking on this adventure:

1. Best Offer First:
-Always put your best foot forward! Banks do NOT accept escalation clauses and will NOT accept low bid offers. These properties are already priced under the market.

2. Bank Addenda is KING:
-Only after the bank accepts your offer will they provide you with the addenda and disclosures. Please read all addenda carefully! These bank documents override any and all buyer protections afforded to you by local real estate documents. For example, the buyer will NOT be able to sue the bank if the bank does not perform the necessary steps to sell the home, such as providing clear title.

3. Always get an Inspection:
-These properties are being sold As-Is! It is understood that the bank will not make any repairs to the property, but in rare case the bank should make repairs, they will only repair structural and/or mold issues in the home. Ask your inspector to always test the air quality and identify the sources of mold.

4. The 30-Day Rule
-On average banks revolve around the 30-day Rule when dealing with foreclosures. Every 30-days banks are requesting a price reduction. Every 30 days from contract ratification, the banks would like to sell the property. There is a misconception that purchasing a foreclosure will be as difficult as a short-sale. It is quite the opposite, the banks look at foreclosures as a liability and want to get rid of them immediately...providing the price is RIGHT!

5. Buyer pays 100% of property taxes
-So you have read that Federal law allows certain banks exemption from paying property taxes when selling properties (ie. Freddie Mac and Fannie Mae). Well, DC government does not recognize the exemption status of these banks and demand the tax bill be paid in full...in this case it is the buyer's responsibility. This is a growing trend by surrounding local county governments such as Prince Georges, Montgomery County, etc.


Call me at 301-452-4767 if you have any real estate questions!

Information about the DC First-time homebuyer tax credit

In case you were questioning if now was a good time to purchase a home in Washington, DC...look no further!

Despite the end of the Federal first-time homebuyer tax credit, DC has continued the $5,000 DC First-time homebuyer tax credit until the end of the year. Here is more information you need to know as follows:

Who qualifies for the DC tax credit?
The tax credit is aimed at people buying their first principle residence in the District of Columbia. This means that owning a previous primary residence outside of DC does not hurt your eligibility. If you haven’t owned a primary residence in DC, you qualify for the local tax credit, even if you’ve previously owned homes in other areas.

Also, you qualify as a first-time DC home buyer as long as you haven’t owned a DC home in the one-year period prior to the purchase of your home. The national tax credit had a stricter requirement; it required buyers to have no primary home ownership for three years prior to home purchase.

How much is the DC tax credit worth?
The credit’s value is the lesser of:

-Up to $5,000, if single, married filing jointly, head-of-household, or qualifying widow(er)
-$2,500 if married filing separately


What types of homes qualify for the DC tax credit?
The home must be your primary residence. It can be a single family home, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence.

Are there any income restrictions for the DC tax credit?
The income restrictions are based on your modified adjusted gross income (MAGI):

If your MAGI is $70,000 or less ($110,000 or less if married filing jointly), you qualify for the full $5000 credit.
If your MAGI is between $70,000 and $90,000 ($110,000 and $130,000 if married filing jointly), you qualify for a partial credit; the more you make, the less credit you receive.
If your MAGI is over $90,000 ($130,000 if married filing jointly), you do not qualify for the credit.

Are there any other restrictions?
You do not qualify for this tax credit if:

-You acquired your home from certain related persons or by gift or inheritance. Related persons include, but are not limited to, your grandparents, parents, spouse, children, and grandchildren.
-You previously claimed this tax credit on a prior home purchase.
-You qualified for the national home buyer tax credit.

How do I claim the DC tax credit?
You must fill out IRS Form 8859 and submit it with your annual tax returns.



Call me at 301-452-4767 if you have any real estate questions!

IMPORTANT: New Mortgage rules makes it difficult for Condos

I know it seems like everytime you turn around, there are NEW mortgage changes affecting the real estate. Well, you are absolutely right!

This time with the NEW rules, it is more difficult to get mortgage financing for condos...as if it wasn't difficult already to purchase a home.

WHAT ARE THE NEW RULES?

The owner occupancy of a building must be at least 51% owner occupied to purchase with an FHA loan.

The owner occupancy of a building must be 70% for a conventional purchase.

For both FHA and conventional, the delinquent condo dues must be under 15%.

WHAT DOES THIS MEAN FOR YOU?

This means that more than ever, as an owner of a condo, you are financially tied to other owners in the building. If they are behind in their condo dues, it will be more difficult for you to sell your home. As an owner, your options might be limited for renting your home to move to bigger and better things, if your condo building is nearing or above the minimum investor ratio.

From a buyer's perspective, you will need to inquire about the condo association's investor ratio and delinquency rate before placing an offer on that PERFECT condo.



Call me at 301-452-4767 with any real estate questions!

Property of the Week: The Metropole

LOCATION
The Metropole is a 90-unit condo building in the vibrant Logan Circle neighborhood. This mixed-use building is located on the 1400 block of P St. NW at 1515 P St. NW, and is home of VIDA Fitness, BANG Salon, etc. The building towers across from the Whole Foods, CVS, and old Duron Paint store. Metropole is surrounding by some of the city's best Zagat rated restaurants and a few blocks from metro and White House.





AMENITIES
The Metropole was developed by Metropolis Development (MDC), which also built Cooper-Lewis, Lofts 14, and Langston Lofts. Architecture by RTKL and interior design by Cecconi Simone offers a loft-style condo: with 20-foot high floor to ceiling windows, Exposed ceilings and ductwork, Bosch stainless steel appliances standard, large private terraces on all top floor units.





PRICING
The pricing of one bedroom units start at $485,000 to two bedroom starting at $700,000 - $2 Million.





Call me at 301-452-4767 if you have any real estate questions.

Living in DC: Dupont Circle

When looking at DC neighborhoods to reside, there are many options to choose from depending on your living criteria. One such residential neighborhood is the Dupont Circle, a historic district in the Northwest part of the city.



"Dupont Circle is located in the "Old City" of Washington, D.C. — the area planned by architect Pierre Charles L'Enfant — but remained largely undeveloped until after the American Civil War, when there was a large influx of new residents. The area that now constitutes Dupont Circle was once home to a brickyard and slaughterhouse." (Wikipedia)

SHOPPING AND RESTAURANTS
Dupont Circle is a local hub of activity with numerous retail stores, coffeehouses, lounges, and restaurants enjoyed by many residents and visitors. The two popular corridors of commerce are Connecticut Ave. and 17th Street with stores such as GAP, Victoria Secrets, etc. The variety of restaurants range from sit-down French Bistro to five-star Sushi restaurants. There are no shortage of happy hour venues such as Bar Dupont, Gazuza, One Lounge, and Circa.





VICTORIAN ROWHOUSES
Dupont Circle is well-known for its elegant style rowhouses. These Rowhouses were primarily built prior to 1900 feature variations on the Queen Anne and Richardsonian Romanesque revival styles. These rowhouses start at $1.5 Million.



DUPONT UNDERGROUND
Dupont Underground is an abandoned streetcar/trolley terminal and tunnel, which is located underneath Dupont Circle but above the Metrorail tracks.





The streetcar tunnel was completed in 1949. The Arts Coalition for Dupont Underground recently launched a campaign to reopen the station and tunnels as a gallery for the arts community. The Arts Community proposes a new gallery space below Dupont Circle near many existing above-ground galleries. Earlier this year, the District began seeking developers to take on this project.





Call me at 301-452-4767 if you have any real estate questions.

FHA Loan Changes and what it means to YOU!

FHA loans has been the primary source of home financing over the past 2 years. There are some changes over the next few months that homebuyers need to be aware of if thinking about purchasing a home.

FHA MORTGAGE INSURANCE PREMIUM
The increase in FHA Up Front Mortgage Insurance Premium (effective April 1, 2010). UFMIP went up from 1.75% of the loan amount to 2.25% of the loan amount.

WHAT DOES IT ME FOR YOU?
Higher up front and/or monthly expense if the fee is financed.

FHA MORTGAGE INSURANCE
Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages and it's required primarily for borrowers making a down payment of less than 20%. There is a planned increase of FHA Monthly Mortgage Insurance.

WHAT DOES IT ME FOR YOU?
Buyers with tight debt ratios will qualify for lower loan amounts. It will be an increased monthly expense to consumers.

SELLER CONCESSIONS
The sellers in today's market attract many buyers by offering to contribute monies toward the homebuyers' closing costs, known as seller concession or closing help. FHA will be decreasing the maximum seller contribution from 6% to 3% of contract price.

WHAT DOES IT ME FOR YOU?
The homebuyers who depend on seller contributions will no longer be in a position to purchase a home, which will negatively affect sales in some markets.



Call me at 301-452-4767 if you have any real estate questions.

Property of the Week: The Lacey

LOCATION
"The Lacey is a 26-unit condo development, located at 2250 11th Street on the corner of Florida Avenue and 11th Street. The development sits on the border of Columbia Heights and the U Street Corridor. It is about three blocks from the U Street/Cardozo Metro station on the green line, and about five blocks east of Meridian Hill park.



DESIGN
The Lacey was designed by Division1 Architects, a DC-based architecture firm founded in 1994 that also designed The Drost, a condo development at 2106 10th Street NW, and Lima, a restaurant and lounge at 1401 K Street." (dc.urbanturf.com)





PRICE
The building is now FHA approved with 1 bedrooms starting at $495,000 and 2 bedrooms starting at $575,000. The condo fees start at $345 per month. The building is pet-friendly, but alas NO fitness center or rooftop deck. For more information give me a call at 301-452-4767.





Call me at 301-452-4767 if you have any real estate questions.

Living in DC: Tenleytown/American University Park

When looking at DC neighborhoods to reside, there are many options to choose from depending on your living criteria. One such residential neighborhood is the Tenleytown/American University which is located in the upper Northwest part of the city.



This is the historic site of Fort Reno, "one of the forts that formed a ring around Washington D.C. during the Civil War to protect the capital against invasions. It proved to be the crucial lookout point for preventing a siege of Washington (indeed, it is the highest natural point in the District of Columbia--429 feet above sea level)." (Wikipedia)

SHOPPING & RESTAURANTS
Tenleytown has a large variety of restaurants and shopping with stores like Bestbuy, Guapos, Payless, Whole Foods, Papa Johns Pizza, Starbucks, Robecks, Crispy & Juicy, etc. There many local eateries such as Steak & Eggs, a great local dinner in the heart of Tenleytown's residential area.



AMERICAN UNIVERSITY PARK
Tenleytown is home of American University, a private United Methodist-affiliated research university in Washington, D.C. Developed in the 1920s, the American University Park neighborhood surrounding American University, consists almost entirely of single-family homes. A wide variety of architectural styles are present such as Victorian, Colonial styles, and most homes have been modified or expanded since the 1930s--there are approximately 2700 homes within closely spaced area. The single-family home prices start from $849,000.



CONTEMPORARY CONDOMINIUMS
There are very few condominiums in this area, but one such building is Cityline at Tenley located at 4500 Wisconsin Ave. and 4101 Albemarle St. In 2003, this award-winning project boasted the city’s first Best Buy and Container Store – both of which have enjoyed tremendous success. The over 200 residential condominiums were almost entirely sold out before construction was complete. The condos starting price is $370,000.



Call me at 301-452-4767 if you have any real estate questions.

What is the biggest concern for home sellers today?

The biggest concern of every home seller is the SAME as in any market...

How much money will I get for my home?

It is important for sellers to understand that if you are planning to sell your home in a Buyer's market you will ALWAYS make less money than if you were selling during a Seller's market.

Just as important if not more important is...HOW LONG will my home stay on the market?

In a Buyer's market, PRICING directly affects how long your property will stay on the market. As more properties stay on the market longer, home prices are more inclined to be negatively affected by the high inventory of foreclosures and short sales. A seller must be adaptable and realistic when weighing PRICING vs. TIMEFRAME.

Here are some things to consider before selling:
1. Comparable Home Prices
2. Timeframe allotted for selling
3. Condition of the property (ie. Does your property show well?)
4. Buyer Incentives (ie. closing help, etc.)
5. Worst-case scenario option (ie. Renting the property)



Call me at 301-452-4767 if you have any real estate questions.

What is the difference between Short Sales vs. Foreclosures?

In today's market, especially within the suburbs of Maryland and Virginia, neighborhoods are bombarded with short sales and foreclosures. Each one has a negative effect on housing values in any given area.

The common question I get from homebuyers is "What is the difference between Short Sales and Foreclosures?"

My answer: "Foreclosures are the better purchase of the two options!"

Now, I have NOT answered the question.

A Short Sale is the process before a property goes into foreclosure. Ideally during this period, the owner is currently delinquent and has the opportunity to negotiate with the bank to sell the home at a lower price than what is owed by the owner on his/her mortgage. Notice I say "Ideally!" This process can take 45 days to 365 days to settle...keep in mind while this short sale might be approved by the bank, the Foreclosure department is still foreclosing on the home. The Short Sale and Foreclosure are two independent departments which DO NOT communicate with each other.

A Foreclosure is after the short sale process and the bank fully owns the property. This process can take 30 to 45 days to settle.

From a Buyer's perspective, the foreclosure transaction is a more straightforward process of purchasing a home. From a Seller's perspective, the short sale is less detrimental to their credit score.

Keep in mind, if you are thinking about selling your home as a Short Sale...you will have to be able to show "financial hardship" to be approved by bank.



Call me at 301-452-4767 if you have any real estate questions.

Living in DC: LOGAN CIRCLE

When looking at DC neighborhoods to reside, there are many options to choose from depending on your living criteria. One such residential neighborhood is the Logan Circle which is located in the downtown area. This historic area, during the Civil War was home to "Camp Barker, former barracks converted into a refugee camp for newly freed slaves from nearby Virginia and Maryland.



Originally known as Iowa Circle, the park was renamed by Congress in 1930 in honor of John A. Logan, Commander of the Army of the Tennessee during the Civil War, Commander of the Grand Army of the Republic, and Representative and Senator for the state of Illinois, who lived at 4 Logan Circle from 1885 until his death the following year." (Wikipedia)

SHOPPING & RESTAURANTS
Since the early 1900s, the 14th Street corridor has always been a prominent area for shopping, restaurants, and nightlife. The residents of Logan Circle enjoy fresh groceries from the local Whole Foods and convenience of local restaurants like Logan Tavern, Commissary, Rice, Masa 14, Saint-Ex, etc.



ARTS OVERLAY
The 14th Street corridor is well-known for its art galleries and the Studio Theatre. The Studio Theatre is the home of live contemporary performances in Washington DC. Visit www.studiotheatre.org/ for upcoming shows.



VICTORIAN ROWHOMES
Logan Circle is known for its Victorian-style rowhomes which were built since the Civil War. These rowhomes are historic landmarks throughout the city.



CONTEMPORARY CONDOMINIUMS
Along with Victorian rowhomes, Logan Circle is full of contemporary mid-rise condominiums throughout the neighborhood. These buildings are targeted to young professionals with amenities such as fitness centers, rooftop decks, etc. A Great Buy for first-time homebuyers or people looking to be in the heart of Washington DC. The average home prices begin at $330K.



Call me at 301-452-4767 if you have any real estate questions.