The Realst8 of Affairs

New Name, Same Game

2011-10-31T23:59:00.003-04:00

Effective November 1, 2011, Prudential Carruthers REALTORS® will merge with PenFed Realty, LLC to become Prudential PenFed Realty.

I am excited that where other firms are tightening their belts and consolidating their offices, we are continuing to grow.

Prudential PenFed Realty will begin with 1000 agents and 35 offices in DC, Maryland & Virginia, as well as in North Carolina and Texas. Look for us to expand into new territory and to continue to offer our clients the highest level of customer service.

I expect the transition to be relatively seamless and hope to be able to provide updates on the positive effect this merger will have in the coming weeks.

Stay tuned...

DCHomeQuest.com is New and Improved!

2011-01-16T15:21:00.002-05:00

Come Monday morning, January 17, 2011, I will be unveiling the newest version of my website, http://www.dchomequest.com/.

Over the past three months, I have consulted with clients, web developers and marketing specialists in an attempt to provide a more comprehensive and useful site. I have been especially mindful of technology and ease of navigation in creating this third iteration.

Since I was among the first to have a personal website in 1998, my goal is to remain ahead of the curve and provide clients and would-be clients with the latest tools for gathering information about buying and selling houses, condos and coops in the DC metropolitan area.

You will find a host of improvements, including an advanced search engine, updated information and general advice, historical data and even some real estate-related mobile apps that you can download to your Smartphone.

Please take a look and browse awhile. I welcome your comments and suggestions!

2010-11-21T23:40:00.001-05:00

It is with great sadness that I post this eulogy for my dear friend and mentor of 13 years, James M. Keane. I was planning his surprise birthday luncheon on the Monday he died. He would have been 75 that Friday.

*****

In 1997 I moved to DC with nothing but a car, a computer, some clothes and my three dogs. It was later that summer that I became a real estate agent.

While trying to decide which company to work with, I scheduled a meeting at an obscure Century 21 office on Wisconsin Avenue. As I sat for a few moments in the waiting area, I noticed several photo albums on the coffee table and began to leaf through them. This was a harmonious group. And it was clearly evident that they liked to party.

As I thought to myself, “this could be place for me,” a very distinguished-looking gentleman emerged from his office and extended his hand. “Welcome,” he said, “I’m Jim Keane.”

As we chatted in the small conference room about what it took to be a top-producing real estate agent, I began to warm to the gentleman and I knew that his wealth of knowledge combined with his insistence on ethical conduct and his willingness to provide guidance and support would serve me well in my new career.

The clincher came two days later when I received a hand-written note from Jim thanking ME for taking MY time to meet with HIM. What a class act! When I followed him to Prudential a year later, I would have followed him anywhere.

Many of you who were in that photograph album on the coffee table are here today. We’re not as young and most of us are not as thin as we were in those photos, but the camaraderie that Jim fostered shines through as we pay homage to him today.

Thanks to Jim Keane, I have a successful career that I love as he did. I have a two-dollar bill that he would give out for correctly answering the question of the week at our sales meetings. I have fond memories of Bloomsday lunches, flaming saganaki and shots of Ouzo, after which, oddly enough, I would have to search for half an hour for my car.

I am saddened that the call I placed to him last week to invite him to lunch came too late. I mourn the loss of my real estate mentor and dear friend.

Jim, I know you are watching over us here today, probably sipping white wine with a Jamieson chaser. You taught me well. You were a constant source of encouragement. I could always come to you with a problem, be it professional or personal, and know that you would have sage advice coupled with a bit of blarney.

So, Jim, today I say not goodbye, but simply farewell, for I know that we will meet again… sometime subsequent to this.

A Contest without a Prize

2010-09-11T07:58:00.007-04:00

Greetings!

For those of you who are reading this because you noticed my DC Arts & Crafts game in the September 10th issue of Metro Weekly, here are the answers to the questions I posed in the ad. This was essentially a contest without a prize and just a nice way to get to know a little something about the arts and architecture found here in DC.

1) What era constituted the American Arts & Crafts Movement?

The Arts and Crafts Movement was an international design movement that originated in England and flourished between 1880 and 1910, continuing its influence up to the 1930s. In the United States, the terms American Craftsman, or Craftsman style are often used to denote the style of architecture, interior design, and decorative arts that prevailed roughly between 1910 and 1925.

2) What are three characteristics of an Arts & Crafts-style home?

Exterior characteristics: wide eaves, exposed rafter tails and joists along the roof line, an emphasis on wood and natural materials. Interior characteristics: art glass, built-in cabinetry and wood details such as moulding and in-laid floors.

3) What three galleries are located in or near the DC Atlas District?

Studio H at 408a H Street, NE on the second floor
http://www.studiohdc.com/
City Gallery at 804 H Street, NE
http://www.citygallerydc.com/
Artful Gallery at 1349 Maryland Avenue, NE
http://www.artfulgallery.net/

4) Who was Harry Wardman and what is/was his claim to fame?

Harry Wardman (April 11, 1872–March 18, 1938) was a real estate developer in Washington, D.C. during the early 20th century whose developments included landmark hotels, luxury apartment buildings, and many rowhouses. Wardman built many of the city's rowhouses, especially in the neighborhoods of Columbia Heights, Bloomingdale, Eckington and Brightwood as well as the 1,200-room Wardman Park Hotel (now the site of the Marriott Wardman Park Hotel and Conference Center) along Connecticut Avenue in Woodley Park.

5) What 2010 HGTV Design Star contestant calls DC home?

Local designer and St. Croix native Alex Sanchez made his television debut as a contestant on the fifth season of “HGTV Design Star.” While not the ultimate winner, we cheered him on and continue to do so as he beautifies the city, one condo at a time.

6) What local artist’s paintings feature colorful DC landmarks?

Daniel Kessler. You will recognize his work at http://www.kesslerart.com/.

7) Who was first on DC’s go-go music scene?

A handful of bands contributed to the early evolution of this uniquely regional music style of the mid- to late-1970s, but singer-guitarist Chuck Brown is credited with having developed most of the hallmarks of the style. His popular hit, Bustin’ Loose, has recently gone mainstream as the music heard in a television commercial for Chips Ahoy.

8) How drunk was Pierre L’Enfant when he designed DC’s layout?

If you are a recent resident of DC, you probably think he had tee many mar-toonis as he completed the wheels and spokes of our state-named streets, but the grid system is rather simple to navigate once you understand it – just allow a little extra time for driving around the circles several times at first to find the spoke you want.

9) When and where will the next DC Artomatic be held?

We would all love to know the answer to that question. Can anyone in the know chime in?

10) Which DC Realtor® will artfully craft an offer for your next home?

That would be me, naturellement.

It’s Showtime: Setting the Stage for Successful Selling

2010-06-24T22:31:00.003-04:00

If you missed my article in the June 25th edition of The Washington Blade, read on.

Did that fabulous job in Manhattan finally come through? Is there a penthouse condo is SoBe calling your name? Perhaps you’ve fallen in love and you’re tired of the morning walk-of-shame from his place to yours. Whatever the reason, you’ve decided to sell your home.

It used to be that real estate was all about “location, location, location.” While a great location can still cause buyers to compromise on a less than stellar house, the mantra du jour is actually “location, condition and price.”

Since we cannot change the home’s location, real estate agents must rely even more on its condition and its price to achieve a successful sale. This article will address some ways to improve your home’s condition so that buyers are more likely to identify it as “The One.”

In nearly 13 years of selling real estate, I have had the pleasure of listing a dozen or so houses and condos where I didn’t need to change a thing. Most homes have needed at least some minor tweaking. Some have been candidates for Niecy Nash’s Messiest Home in the Country. And yes, a few others have been straight out of A&E TV’s Hoarders.

Often the most difficult thing for homeowners to do is to begin to think of the house they have poured blood, sweat, tears and money into as a product that will be sold to others. Like many of my colleagues, I help my sellers de-clutter, de-personalize and survive this transition so that a buyer who expects the look of a model home will not be disappointed. While you won’t find me vacuuming in my lingerie à la Annette Benning, I generally end up flexing my creative side by staging or even sometimes renovating each home I sell.

The National Association of REALTORS® has long suggested that staged homes sell more quickly and for higher prices than similar, unstaged homes. My experience has certainly shown that to be true. I have also found that staging an occupied home needn’t cost a fortune.

Here are 10 low-cost staging tips to keep in mind when living in your home while it’s on the market.
• Listen to your agent’s advice – candor is not meant to be mean-spirited.
• Pack and store non-essentials off-site; sell or donate what you no longer want.
• Experiment with new furniture arrangements to make spaces seem open and inviting.
• Use smaller area rugs to show off more of your hardwood floors.
• Refresh your paint; choose colors that tone down or rev up a room.
• Keep items on horizontal surfaces to a minimum; staging vignettes generally use no more than three items of varying heights.
• Invest in light bulbs and replace burned out bulbs immediately.
• Leave your blinds up and your toilet seats down.
• Repair or remove anything that stinks, clinks, squeaks, or leaks.
• Clean! Clean! Clean! Do it yourself or hire a service. Or call Annette Benning.

But what about a vacant house? Although some buyers see vacant space as an opportunity to turn what is into what could be, most people have a difficult time imagining how they will live in a home that is totally unfurnished. Professional staging helps your home outshine the competition by accentuating its best features. Think of it as dressing your home for a date or a job interview.

• Start with clean skin: a spotless home.
• Apply foundation: otherwise known in the trades as paint.
• Put on your favorite outfit: a great sofa, an elegant dining set, an antique desk.
• Add accessories: rugs, throw pillows, linens, art.
• Finish with a bit of bling: dishes on the table, crystal at the bar and light streaming through the windows.

With your efforts, the assistance of your agent and the talents of a professional stager, a successful sale will surely be imminent. To paraphrase Norma Desmond, “it’s just us, the virtual tour, and these wonderful people here at the open house.”

Is your house ready for its close-up? Mr. DeMille awaits.

I Am Not a Liar!

2010-05-29T18:09:00.003-04:00

OK, folks. The most recent legislation proposed to curb abusive lending practices and eliminate those “liar loans” referred to in staff writer Dina ElBoghdady’s 5/27/10 article in The Washington Post (Senate, House financial overhaul targets lending practices of mortgage crisis) is more than I can take without getting on this mini soap box and spewing forward.

First, let me state for the record that I am not in favor of abusive lending practices. I want my clients to avail themselves of the best possible loans for their individual circumstances. I want them to clearly understand the ramifications and limitations of their options. I want them to make sound financial decisions based on as much information as they can gather and assimilate.

But after buying and selling 28 homes and investment properties of my own over the past 33 years, opting for 80% loans, 90% loans, 80-10-10 loans, 80-20 loans, interest–only loans, negative amortization loans and a variety of adjustable mortgage programs that range in length from 6 months to 5 years before the payment changes, I now find that the pendulum has swung so far to the opposite side on what constitutes “abuse” that the current lending climate has hit home (pardon the pun) in a most unusual way.

I cannot get a loan!

Like many of my clients, I earn a 6-figure income. I pay my bills on time. I keep my credit score in the mid-700s or above. I support myself, my 86-year old mother who resides in an independent living facility and my ex-husband (for a short time by agreement – don’t ask). I have substantial assets. I save for the future. I pay my taxes – lots of them. I donate to charity. I have never filed for bankruptcy or sold short. I am a good person. But in the eyes of the mortgage industry, I am a pariah because…

I am self-employed.

At the moment, even though I have loans on my residence totaling more than the property is currently worth, I am probably better off than most in my situation.
In 2007 when I purchased my current home, I opted for a one-year adjustable rate mortgage (ARM) at 6% interest, with adjustments tied to the one-year LIBOR index, which sits pleasantly at 1.15% this week. The following year when the rate adjusted, it went down to 5%. In 2009, it went down again to 4.25%. This month it adjusted down to 3.175% for the coming year. I have my mortgage lender, Karen Lucey-Guess of McLean Mortgage Corporation, to thank for bringing this loan to my attention and for completing it one week before no income verification loans disappeared from the lending market.

But here’s the rub:

Because the Internal Revenue Service allows me to take legitimate but substantial deductions against my gross income, it appears on paper that I do not earn enough money to pay for groceries, much less cover the obligations I do on a monthly basis.

I have operated my business since 1997. I can show steady increases in gross income since then. I don’t pad my expenses. I keep boatloads of receipts. I was even audited last year by the IRS and cleared the process with no changes to my tax liability.

Why am I a bad risk? And why can’t lenders take into consideration that some of the deductions I claim that look like they reduce my income but actually don’t (in-home office and automobile and equipment depreciation, for example) are paper exercises only?

So I say to all the great lenders out there who are trying to do right by their clients and still earn a living, as well as to the congressional representatives and senators to whom my pleas fall on deaf ears because I live in DC and have no voting representatives to complain to,

“Check my credit. Verify my assets until the cows come home. Look at what I have been able to accomplish over the years. Tell me what interest premium I must pay for you to assume greater risk.

I am not asking to spend beyond my means. I am not frivolous in my spending. I understand what I’m doing. So don’t lump me in the category of “liars” just because my income cannot be verified by a W-2 form or because I have elected to provide quality service to people who need it while being my own boss.

Just loosen up already and give me a loan!”

Ode to The Washington Blade

2009-11-28T19:11:00.019-05:00

Hello everyone! Did you miss me?

Blogging is great fun but very time consuming. Whatever you may have heard about a troubling real estate market, I have not found that to be the case and have been extremely busy this year.

Sadly, this year brought about the demise of The Washington Blade, where I have advertised for more than 10 years. Just before the paper folded, they celebrated their 40th anniversary in business so it was totally unexpected.

My colleagues, Karen Lucey-Guess from Mason-Dixon Funding, Inc. and David Kanstoroom of North American Title and I jointly purshased two ads recently - one for the 40th Anniversary issue and the other for the Best of Gay DC issue. As you can imagine, I count among my clientele some of the very best of Gay DC, so I am reprinting for you here what was my last advertisement in The Blade (with apologies to HGTV). Enjoy!

*******

Several months ago while my partner and I were trying to Get It Together on a Monday morning after a bit too much Extreme Living over the weekend, we decided that we were tired of being Property Virgins and called Valerie Blake to see if she would help us find our Dream House.

“How can I help you?” asked Valerie. “Well,” I replied, “we were out in Rebecca’s Garden on Sunday planting Red Hot and Green chili peppers and realized that we don’t want to be
Urban Outsiders anymore. We need some New Spaces and are Desperate to Buy before the $8000 tax credit expires on November 30th.

“I’m know of a wonderful place with a Divine Design and Myles of Style that would be a great Bang for Your Buck if you’re willing to invest some Sweat Equity,” replied Valerie. “I’ll e-mail you the virtual tour and then you can call Karen Lucey-Guess to get pre-approved for your loan.”

Well, the place just screamed, “Buy Me!” We didn’t even need to Sleep On It overnight, so my partner called Karen while I e-mailed my sister.

“Dear Genevieve,” I wrote, “We’ve found our new home. It’s a bit of a Designer’s Challenge, but it’s got great Curb Appeal and I’m sure our cousin Carter Can help us find its Hidden Potential.”

“We’re approved!” called my partner from the other room. (Since we had recently found some Cash in the Attic and knew our credit score wasn’t Beyond Repair, Karen had told us, “Don’t Sweat It,” but she also cautioned, “It’s important that you don’t get Over Your Head in debt.” )

If Walls Could Talk, they would tell you that the seller had told his agent, “Get it Sold,” so within a few weeks we were at the settlement table with David Kanstoroom, who did a Double Take when he saw what a great deal we got.

And after months of dealing with Renovation Realities and Gardening by the Yard, we are finally celebrating The Big Reveal of our new home, thanks to Valerie, Karen and David.

*******

I can't wait to see what the former employees of The Blade have in store next for DC.

The Renovation Dissertation, Part 6

2008-03-23T10:51:00.004-04:00

Our group continues to expand and become even more international. Tony, Luke’s brother and our master carpenter, returned from Miami this week to be on hand to supervise the framing, cabinet and millwork installation, and to give me a hug since I hadn’t seen him for about five years. Freshly back from the Sunshine State, he noticed it had started to rain and then, in mid-conversation, ran out to his new car to find he had left his sunroof open – soggy seats and a wet ride home for poor Tony, I expect.

Mack’s crew of electricians came as a surprise – they’re from the Ukraine! One of them reminds me of the bad-guy-from-another-planet, Talec, played by German-born actor Matthias Hues in the 1990 Dolph Lundgren movie, I Come in Peace, albeit with more hair and less muscle. (Hey, I never claimed to be a highbrow film enthusiast!)

Tomorrow we order the kitchen cabinets, a beautiful tight-grained Alder in a flat panel, frameless design with a warm brown, Chestnut finish. Yum! The open den on the second floor will contain a built-in office credenza and bookshelves in a similar style with a finish called Rouge, slightly redder than the Chestnut as you might imagine, but very elegant. To top it off, the cabinets in the master suite “refreshment center” (see photo) will echo those in the den, and that area will be outfitted with a bar sink, a small refrigerator and a mini-microwave for popcorn, sodas and a movie in bed or that first cup of coffee in the morning. (Sounds like a real estate ad, doesn’t it?)

Karen and I had great fun at the condo board meeting last Thursday. Everyone welcomed us warmly and we got to meet several neighbors. We learned that the condo is incredibly well-sustained and has reserves of $94,000 – not bad for a group of only 53 homes! We also got a parking pass and chatted with John D., the appointed “enforcer” of parking and monitor of work done by the condo’s subcontractors. Good man to know. With any luck, we’ll not encounter him in his official position.

So far, we are on target for plumbing and electrical inspections by the middle of the coming week. I am headed over today with four new bathroom fans to be roughed in before inspection and on Tuesday, I will be meeting with a representative from a company that fabricates cable railings to price out our contemporary staircase rails and posts. What a treat! Then I can post a posting about posts. Whaddyathink?

The Renovation Dissertation, Part 5

2008-03-19T10:51:00.002-04:00

Greetings to all from Valerie (a.k.a. Bobbie Vila) Blake! Yes, This Old House is now on target to become Someone’s New House. It is now affectionately known as “The Job Site.” Karen also has a new title – The Queen of Riggs Street. Yes, Riggs Street at 14th in Logan Circle. We finally settled on February 27th and I’ve barely had time to take a breath since.

In the past two weeks we have accomplished the following:

* Obtained permits,
* Completed demolition,
* Finished about 15% of the plumbing,
* Finished 50% or more of the electrical,
* Designed the kitchen & baths,
* Ordered gobs of materials & supplies, and
* Spent an obscene amount of money.

The general idea here is to make a profit while using high quality construction techniques and materials deliver a superior product. I know we have the latter well in hand, but I will reserve judgment on the former until we have finished the purchasing phase of the project and see what the spring real estate market has in store for us.

The construction crew is a cast of characters. Our general contractor, Luke Stewart of Luma, Inc. (lumainteriors@comcast.net), refers to working on my projects as “creating art with Valerie.” Luke has done tons of projects for my clients and me over the past eight years. He is also affectionately known as “Sweet Baby Luke,” lead crooner of Black Sheep, to those of you who moved to the island beat at my welcome back and anniversary party last summer. Although he has lived in this country most of his life, he can still break into his native Jamaican patois at will.

Mack, the electrician, originally from the island of Greneda, is a man on a mission. Give him a plan and he’s the executioner. Bobby, our Jamaican plumber, says, “Tell me what you want and leave ma alone, Mon.” He’s a perfectionist who works his magic based on photographs and specification sheets.

David is our Demolition Man (and framing and drywall guru). He is Hispanic and supervises a small contingent of equally talented construction guys. Luke refers to him as his “right-hand man,” an inside joke if you haven’t yet met David, who his left arm below the elbow years ago. It’s simply amazing to watch him heft construction debris onto his left shoulder and balance it all the way out to the dump truck. This is one man who has not let anything stand in the way of success!

Lorrie Addison (ladesigner1@verizon.net), our kitchen designer, has done 8 kitchens for me in the past 10 years. She switched companies just as we were beginning this project and now works for Stuart Kitchens in the Lorton area. Lorrie’s best asset is the ability to take a semi-custom cabinet product and add just the right touches of glitz to make the entire project look high-end. We thank you, Lorrie, from the bottom of our pocketbooks.

Donald Williams (billiboix3@hotmail.com) and his partner, Johnnie (the Stand-up Comedian) are in charge of landscaping and a variety of other tasks. Donald is a local, my neighbor in Brookland, and a jack-of-all-trades who runs both Williams in Brookland Landscaping and D. L. Williams Auto Detailing (a must for real estate agents).

Our suppliers are numerous, ranging from Barron’s Lumber in Rockville, to Lumber Liquidators in the College Park area to a host of Internet vendors. I know we’ve come a long way when I can sit in my home office in my jammies and order faucets, cabinet knobs, lighting fixtures and, yes, toilets at 3 a.m.

So far, I have learned three new lessons.

Don’t bother with fancy moulding on the inside of closets. We spent money on demolition there and now have to replace in kind at additional expense.

Expect things to be delivered to the wrong place. I sent three notes to the vendor to use the job site address for delivery and yet I still have three toilets sitting in my garage at home, looking like a series of plywood-encased thrones for the Royal Family of Riggs Street.

Expect the wrong things to be delivered. I returned home last Tuesday to discover that my husband had kindly accepted delivery of a package for me. Well, it didn’t look like anything I had ordered, so I opened it to find a very nice air nail gun for attaching moulding. Not that it wouldn’t be handy, but it was supposed to be a jetted shower fixture. I’d rather be sprayed with water jets than nails anytime!

Karen, I think, has had the toughest job this week – trying to get signatures from the neighbors in support of our exterior renovations that must be approved by the condo board. Luckily, there seem to be several retirees among the neighbors and she was successful in time for us to submit the request to the condo board tomorrow evening. She’s a trooper and now knows most of the neighbors.

I, on the other hand, was able to introduce her to G***, who is the neighborhood “stand-on-the-corner” guy. I always make it a point to meet the local entrepreneurs.

The Renovation Dissertation, Part 4

2008-03-01T09:51:00.003-05:00

Yeah, OK. I know that by now those of you who have been following along are thinking, “So what happened? Why haven’t we heard anything more since they bought the property?”

Well, I gotta tell you that even agents and lenders are not immune to our own bureaucracy.

Unlike the folks on Flip That House, our contractors are chomping at the bit to begin, our permit applications are in process, our suppliers are tapping their feet waiting to ship our cabinets and fixtures, and our own creative juices are flowing like a burst pipe in an unwinterized, bank-owned property.

The problem? An obscure change in Fannie Mae and Freddie Mac procedures that require that the direct lender (the bank to whom our loan will be sold) review condominium documents!

Now, I ask those of you who own condominiums (condominia?) – How much time did you really spend reading those documents? Sure, I know I told you to go over them, to make sure the reserves were sufficient, that you really could keep your 200 pound Chihuahua and that you were allowed to play your Barry Manilow CDs on full volume after midnight, but did you really go through all 300 pages? Never fear! Now your mortgage bank will do it for you.

But here’s the catch…

They have to keep from losing the documents when you send them.

First, let me applaud all the listing agents, loan processors and property managers out there who do everything possible to keep the process moving along by assembling, obtaining and transmitting these valuable documents. Most of the time, this procedure is routine. The documents are simply another set of checks and balances to raise the buyer’s comfort level with the purchase (or make him run screaming from fee increases and special assessments).

Even the bank reviewers need our sympathy. They are now buried in a ton of paper, trying to sift through ground leases and insurance forms and the impact of commercial storefronts on the ground floor of high-rise buildings. Reading War and Peace would be easier (and probably faster). They ask for only 3-5 days to accomplish this task.

In our case, we are simply asking 3-5 days from when? We got our documents a bit late due to an emergency situation that is totally understandable, but well within the timelines for closing. In this case, they were not contained in a three-ring binder, on a CD-ROM, or simply stapled together, but were bound in hard cover. Try to stick that in a copier! Page by page later, by the next business day after we received them, we had a viable copy which we gave to our processor to transmit to the bank.

Our processor scanned and e-mailed them. The bank lost them. She faxed them. They lost them. She e-mailed and faxed them again. Feeling comfortable, she took a couple of days off. Guess what? They lost them! I think our 3-5 days started about four days after she first sent them, but boy was it fun to read her e-mails to the bank once she returned to work. She was not happy and was pretty direct about letting them know it.

In the days of Bonnie & Clyde, people were taken hostage in banks. Now the banks take people hostage outside their homes. Instead of settling on Friday, Karen and I had a great lunch in Bethesda at Mon Ami Gabi, where the pommes frites are simply amazing and our waiter, Omar (a fellow Boomer), kept us in stitches with childhood references to 1960’s television commercials.

My cup is always half full. Now we will get to do it again on Monday (or maybe Tuesday if the condo reviewer isn’t old enough to have taken an Evelyn Wood speed reading course). Omar awaits.

The Renovation Dissertation, Part 3

2008-02-24T16:08:00.003-05:00

When was the last time you Googled “contemporary toilets?” If the answer is never, then take a moment and do it now; you will find about 439,000 hits. During the past three weeks, I swear I have looked at them all.

I began my quest for the perfect toilet to go with the perfect contemporary vanity cabinet (another 168,000 hits) naively thinking, “So what will a toilet cost – maybe $500?” Well, think again. Sure, you can go to the orange box store or the blue box store and get one for about $100, but will it have a real chrome handle? Will it look “high end?” Will a potential buyer look at it and say, “Wow! Where did they find that?” Will anyone even care?

Now, I had in mind something that was ecologically sound such as a dual flush model. (For the uninitiated, that does not mean two people can flush at the same time, but that you have independent settings for when you need an easy flush or a tough flush – you’ll forgive me if I hesitate to explain further.)

I also wanted something that was streamlined, stylish, ergonomically designed and easy to clean. And not stainless steel, please. I spent too many years in law enforcement to be able to think of a stainless steel toilet as chic.

I cast aside the models with little painted flowers and Victorian pulley systems. I sped right through the photos of standard, two-piece toilets and went straight for the one-piece models. I looked at round ones, elongated ones, pillbox ones and even square ones (!). I studied toilets both foreign and domestic: Japanese, Italian, English, Czechoslovakian and the good old American brands we all know and love. But when the prices shot up over $4000, I sat down on my own Kohler Rialto and put my head between my knees. A toilet for the price of a granite countertop? Oh puleeease!

So for the moment, I have put the toilet search aside and have moved on to faucets. In the end, however, (pardon the pun) the toilet selection will probably be based on comfort and cost. The coveted Creative Commode Award may have to wait for another project.

The Renovation Dissertation, Part 2

2008-02-04T14:31:00.000-05:00

As real estate transactions go, this one is a peach! I certainly don’t want to jinx it, but I am delighted to have people involved in this who are knowledgeable, professional, polite and efficient. What a concept!

Our home inspection last Saturday included a cast of characters. Karen, Larry Wasson from Affiliated Inspectors (www.affiliatedinspectors.com or 301.986.8866) and I were there and were joined by Karen’s son, Brian, and his girlfriend. Brian is in construction and is part of the crew working on new condos around 14th and Church, so his expertise was extremely valuable.

We began late (unfortunately, that’s perfectly normal), but that allowed me to take some measurements and let Karen show Brian around the place. The sellers had vacated the property to give us a wide berth to look around. While that too is normal, we didn’t realize until later, when they begin straggling in to use the bathroom, that they had vacated by sitting in their van in front of the house for nearly 3 hours! Whether they were cursing us under their breath or just glad to get their house sold, I will probably never know, but I think a special gift for them will be in order at the settlement table.

When Larry inspects a house for me or for my clients (which he does frequently), he looks at it based on what would be considered “normal” for the age in which it was built. For example, what’s normal for a 100-year old rowhouse would certainly not be the same as for a new condo in a mid-rise building. Our project was built in the 70’s, so we don’t have to worry about things like the lead plumbing, old electrical wiring, or crumbling foundations you often see around town. Hooray!

The type of home inspection we had selected for our contract was “general,” meaning that we would inspect everything from nook to cranny. We had also agreed to buy the property in “as is” condition, with the home inspection giving us the basis for determining what “as is” really meant, but knowing that we wanted to upgrade the property substantially.

The result? Our project house got a clean bill of health with only minor annoyances. Our investment was heralded by Larry and Brian, and Karen and I shared a hug before she went home and caught the flu from her husband. Get well soon, Karen.

I am meeting our appraiser at the property tomorrow. Our loan is in process, the title work is being done, the termite report is clear, the house is solid, and we are on our way to settlement.

Only 22 days to go!

The Renovation Dissertation, Part 1

2008-01-30T11:55:00.001-05:00

My friend Karen and I still have so much faith in the real estate marketplace that we have recently embarked on a project to bring a 1970’s townhouse-style condo kicking and screaming into the new millennium. I have the real estate knowledge and a handle on what sells in this market, as well as experience in renovating properties all over the country. Karen, a senior mortgage lender with a local firm (klucey@masondixon.com), is both financial and design consultant on the project. We’re gonna have some fun!

Our “flip,” as they say on TLC, is a 4-level building that currently has 5 bedrooms, 2 baths, an outdated kitchen, plain Jane baths, carpet everywhere, an unfinished basement, more than 1500 square feet of finished space, a great location, central air conditioning, huge closets, a fenced yard and gated parking. I hope you will understand that until we close on the deal, I must keep the address to myself.

I am an avid watcher of HGTV and TLC, but Flip That House really makes me cringe. I commend those who are lucky enough to stay on deadline, not overextend their budget and sell the property in a reasonable amount of time. For the others, well, I feel their pain. Yet my main concern is that while people get drawn into renovating properties by the promise of large financial gains, TLC merely adds what the people paid for the house to what they spent in renovations and subtracts the total from the final sales price to arrive at the “profit.” This, I believe, does a real disservice to John and Jane out there in Viewerland, who are sitting on the sofa munching Cheetos and thinking this would be fun.

Where are the costs associated with buying the house? Where are the costs of carrying the mortgage, utilities and, in some cases, condo fees? Where are the costs of selling the house? What about the time involved in researching properties, locating and monitoring suppliers and subcontractors, and even doing your own demolition? Isn’t your time worth something? All these costs play a prominent role in figuring profit. And that figure is only a pre-tax profit, so you haven’t really even reached the bottom line until you pay Federal and State tax on the gross profit you received.

So, by using this Blog as a reality series, complete with photos, descriptions and recommendations for the uninitiated renovator, I have several objectives.

1) To let people who are thinking about renovating live vicariously through Karen’s & my experiences,
2) To point out pitfalls and celebrate successes,
3) To provide a more accurate analysis of the time and money involved in this type of work, and of course
4) To let would-be buyers follow our progress and provide input.

Stay tuned as we march from contract ratification through inspection to settlement and beyond. If all goes as planned, the Open House will be in June.

A Modern Day "Bidding War"

2008-01-18T17:58:00.002-05:00

(Note: There is a sad start to this story, but IMHO the happy ending outweighs it.)

I recently had the pleasure of helping my new clients, Robert & Onelio, purchase their first home at an incredible discount. No, this was not a “fixer-upper” or some shell in a “down and going” neighborhood, but a lovely, recently renovated condominium in Columbia Heights. So lovely, in fact, that they had rented it two years earlier and were the existing tenants when we met.

Robert & Onelio had learned from their landlord that he was going into foreclosure. He even went so far as to give them the name and number of the foreclosure trustee. Nonetheless, when they decided to try to buy the condo early in the process and shoo the wolf from their landlord’s door, he failed to respond to all attempts at contact. Since he still owned the property, there appeared no way to buy it except to bid at the upcoming foreclosure auction. It was at this juncture that their neighbor, also a client of mine, suggested that they call me for help.

Well, even old dogs can learn new tricks, I thought, as the questions poured out. “Do we have tenant’s rights?” “Will we be evicted from our home?” “How does the auction process work?” And the kicker: “Can we really afford to buy it?”

After putting them in touch with Karen Lucey-Guess at Mason-Dixon Funding (klucey@masondixon.com), who helped them through the pre-approval process, I started to make some inquiries about foreclosure auctions. I don’t purport to be an expert by any means, but here are some basic tips from my research.

1) You can find out which properties are to be auctioned at the websites belonging to the auction houses. There are several in the area.

2) The trustee (person selling it on behalf of the bank) must publish the auction in the paper in advance, so check legal notices in the Post or the Times to find out more about the property you want.

3) If you are interested in a DC property, for a mere $4 each, you can download from http://www.dc.gov/ any document available in land records, including the Notice of Foreclosure which will tell you when and where the auction will be, as well as how much is owed on the loan.

4) Go to a foreclosure auction in advance, just to see how things work. Then it won’t be as stressful when you go on “your” day.

5) You must have a certified check to play this game. Each foreclosure notice will tell you how much to bring. Make the check out to yourself.

6) Be on time. Auctions can be scheduled for as few as five minutes each. If you’re in the parking lot or the restroom when the auctioneer begins, you’ve already lost.

7) The bank will set the opening bid and it will be announced those in the room. After that, the auctioneer will invite bids. The highest wins.

8) At the conclusion of each auction, the winner will sign a contract document and endorse the certified check to the trustee. In some cases, there will be an additional deposit needed soon thereafter. Most settlements must occur within 30 days or the deposit will be forfeited.

Please remember that this process may not be for the novices among us. It is not like traditional real estate sales; this is an “as is” deal in the strictest sense. No inspections, no contingencies and no closing cost assistance. In fact, you pay both your own closing costs and those of the bank. Then, as the happy winner, you might find a tenant or the previous owner still living in the property who is not welcoming you with open arms.

So what about our heroes? Well, when all was bid and done, Robert and Onelio had left their home as tenants in the morning and returned in the afternoon as future homeowners. Maybe it was winning the auction, maybe it was the thought of instant equity, or maybe it was the celebratory bottle of champagne we shared at the Cheesecake Factory at 11 am, but the three of us were on a high all day!

Apples, Oranges and Co-op Fees

2007-07-27T07:49:00.000-04:00

Many people have a misunderstanding about cooperative ownership and how it differs from condominium ownership. There are many differences that I will go into in a later posting, but the question asked most frequently is, “Why is the co-op fee so high?”

A co-op in Kalorama that I currently have listed for $775,000 carries a fee of $1003 per month. Gasp! More than a thousand dollars a month?

But is it really a higher monthly outlay than a similar condo? Maybe, but probably not. Take a look at the property I have listed versus some recent sales.

The $1003 co-op fee at 1870 Wyoming Street NW, #202, which has 3 bedrooms, 2 baths and is approximately 1950 square feet large, includes the following items that are usually covered in a condo fee.

- General Management & Oversight
- Common Area Maintenance (CAM)
- Exterior Building Maintenance
- Custodial Services
- Master Insurance Policy (covering the building)
- Water & Sewer Expenses
- Snow & Trash Removal
- Reserve Funds

It also includes the following things that might be covered in condo fees of another building.

- 24-hour security with a front desk attendant
- Heat throughout the apartment
- Extra storage in the basement

And it includes one major thing that is NOT included in a condo fee: PROPERTY TAX.

The contrasting examples below are taken from the Metropolitan Regional Information System, our local multiple listing database and are properties listed and sold this year by my colleagues in the industry.

Unit #418 at 3881 Connecticut Avenue NW, a 2 bedroom with den, 2 bath, 1550 square feet condo was listed for a similar $779,000. The monthly condo fee was $717, which included a parking space and maintenance of a pool and exercise room (not uncommon in the newer buildings). Property taxes were listed at $6478 per year or nearly $540 each month. Added to the fee, the new owner is paying $1257 per month, excluding utility costs, even if his taxes never go up! Is a parking spot, a pool, or a mini-gym important to you? If so, this might be a great deal, depending on what you would pay for these services elsewhere.

In a building without such amenities, Unit #604, a one bedroom with den, one bath, 1283 square foot condo at 1015 33rd Street NW, sold recently for $800,000, without parking. The condo fee was $644 per month and the taxes added a monthly charge of $369 for a total of $1013 before utilities.

Some cooperative fees also include montly payments toward an underlying mortgage held by the corporation, which you assume as part of your purchase. This reduces the amount you must finance through an institutional lender. Also keep in mind that mortgage interest and property tax portions of co-op fees are tax deductible; you get no such benefit from a condo fee. Check with your accountant to see what this means to you.

Yes, there are complexities involved and each co-op building is different, but then again, so is every condo building. Before you remove a cooperative apartment from consideration as a potential home purchase based solely on the fee, be sure to add up your total living expenses to ensure you are really making a fair comparison. You might be pleasantly surprised.

A Loaf of Bread, a Quart of Milk and a New Listing Lead, Please...

2007-06-14T15:24:00.001-04:00

Ok, so it’s not your standard answer when your honeybun asks, "What do you need at the store, dear?" Nevertheless, that’s what my husband, Kelley, came home with the other day.

Our new home has an enclosed side porch that, when added on years ago, was not connected to our central air conditioning unit. While conducting our home inspection last March, my inspector turned on the existing through-the-wall AC unit, which emitted a disgusting smell reminiscent of burning rubber. (And you were wondering what the term "as is" means?)

So, in anticipation of another hot, muggy DC summer, Kelley headed out to Sears to find a replacement unit. While standing in line waiting to pay for his purchase, he overheard a conversation between the two gentlemen in line behind him. They were disappointed at not being able to find the right real estate agent to represent them in the sale of a DC property.

Now, Kelley is well-trained and knows that if he finds a new client for me, there’s a steak dinner and a bottle of wine in it for him, so he turned and volunteered that his wife was in the business, adding that we even lived near the property they were discussing. Delighted, one of the gentlemen asked if he had my business card. Alas, he did not.

An unhappy ending, you think? Well, think again! When Kelley came home with his Sears receipt and handed it to me, on it was scribbled the name and phone number of the property owner. I called him and made an appointment for later in the week - and gave Kelley a handful of my business cards.

Now, I can’t say that this is going to happen often, or even that it will translate into a listing and a sale, but I do know that it’s nice to have an advocate in the checkout line at Sears. Maybe tomorrow I should send him to Home Depot...

Moving and Other Pastimes

2007-04-28T10:39:00.000-04:00

People’s jaws drop when I tell them I have moved 40 times.

In the beginning, I followed the family. My father was in city management and promotions meant moving from a smaller city to a bigger one over and over. It wasn’t until I went to college that I finally memorized my address: the Kappa Kappa Gamma sorority house at Florida State University.

(FSU was a self-proclaimed “party school” known for its Seminoles football team, its Flying High Circus alumnus Burt Reynolds and the 70’s streaking craze. Being a college kid in the early 70’s, it’s a wonder I can remember anything at all, but Tallahassee, Florida was south of the Mason-Dixon Line; it couldn’t compete with Ann Arbor or Berkeley when it came to recreational drugs and radical politics. That part of the 70’s just passed me by.)

After graduation, I began relocating in earnest with most moves being job-related. I greeted airline passengers in Florida, inspected cargo vessels in Michigan, checked passports in The Bahamas, wrote national policy in Virginia, hosted diplomatic parties in Germany, started a home improvement company in Maryland, trained law enforcement officers in New Mexico, administered benefits programs in Minnesota, developed property in California and ran a bed and breakfast in Washington. Until 1997, my average length of stay in a given area was 30 months.

I used to be at a loss for words when someone would ask, “Where are you from?” After all, I was homeless, a nomad, a will-of-the-wisp. To some, that sounded romantic; to others, absurd; to me, perfectly normal. But then I began to notice a pattern.

In 1981, I bought a little townhouse in Alexandria where I stayed until 1982. Then I bought a tract colonial in Silver Spring where I resided until 1986. In 1988, I returned to the area and bought a detached contemporary in Upper Marlboro and lived there until 1990. I came back to DC again in 1997, first to a Victorian rowhouse on Capitol Hill, then to another contemporary in 16th Street Heights, then to a duplex condo in McLean Gardens.

Wait a minute - it was now 2005! What was happening here? Despite all the house shuffling, was I starting to put down roots?!

Well, last month, after a short detour along the west coast, I made my latest move – the 40th – to a stone-front colonial in the NE DC suburb of Brookland. It’s a great house on a one-block, tree-lined street in a friendly, well cared for neighborhood. I love it here.

If you see me on the street, please say hello. Just don’t ask me if this is my last move…unless you want to see me grin like the Cheshire cat.