Sarahiously Speaking

I have received a nasty-gram from USAA about this post.  They aren’t very happy about my disclosures.  They have pointed out that some of my information is inaccurate, in their eyes, while admitting to most of it, or choosing to read my words in a way that suites their purpose.  The purpose of this post is to explain to consumers why I will not participate in their program, nor will I work for a company that does.  If a consumer chooses to be a part of their incentive program, that is their right.  It is my right and duty as a licensed REALTOR(R) to offer the best services to my buyer clients without the intervention of a bank.  If you would like more information about their incentive programs, go to their websites and look it up.

Nor Do I Want To Be

It seems that as the market begins to show real signs of stabilization, more and more buyers are looking at purchasing a home.  In recent weeks I’ve received several calls from perspective buyers asking about my services and wanting to hire me.  For the first time in 2 years, many of these buyers are bringing up the USAA and NAVYFED Incentive Programs.  For those readers who are not familiar with these incentive programs here’s a recap.  If a buyer or seller uses a USAA or NAVYFED Preferred REALTOR(R) and obtains a USAA or NAVYFED loan product, the buyer will enjoy a cash incentive at closing.  The cash incentive is based on the purchase price of the home and changes depending on how the market is doing.  Most cash incentives are around $1000.  Seems like an awesome deal, doesn’t it.  However, cash isn’t free and banks aren’t in the business of giving money away.  USAA and NAVYFED are not required to make many disclosures about this program to the consumer.  So, I will make the disclosures for them.

The buyers calling me are a little shocked to find out that I am not a USAA or NAVYFED Preferred REALTOR(R) and if they choose to be in that program they have to choose a buyer’s agent from specific brokerages in the area.  So, if they want to be in the program, USAA or NAVYFED will require them to use a brokerage and agent they may not have chosen on their own?  Yes.  To top it off, not all agents in a preferred brokerage are certified or qualify to be in the program.  How does an agent qualify for the program?  The agent has to take classes to be certified for the program.  Some agents are told they must pay a few hundred dollars for the privalege of taking the class.  This fee can be charged yearly.  Is the training good?  If you are not a disciplined agent, yes, the classes can be beneficial.  They teach you how to make yourself accountable to your clients.  But more important to USAA and NAVYFED, they teach the agent to be more accountable to them.  It’s the agent’s job to make sure the buyer doesn’t stray from the USAA or NAVYFED loan product… even if another lender has better options.  An agent can lose their certification by not closing enough business with USAA and NAVYFED.  So, who does the agent work for?  The buyer or the bank?  As a buyer’s agent I have a legal obligation to look out for my client’s best interest.  How can I do that with a big bank breathing down my neck every other week?

Let’s move on to another issue.  Where does the incentive money come from?  As I stated earlier, banks don’t just give money away.  It has to come from somewhere.  If it’s not coming from them and it’s not coming from the consumer, then it must be coming from the agent.  Yes, in order to be a Preferred REALTOR(R), the agent must agree to pay USAA and NAVYFED a portion of their commission to cover the incentive program.  Some consumers may say, “$1000 isn’t alot for an agent to give up if the bank is funneling clients to them.”  It’s not $1000.  The agent actually gives up upwards of 47% of their commission to participate.  If a house costs $250,000 and a 3% buyer’s commission is being offered by the seller, the commission is $7500.  If an agent is paying the highest referral fee they would be giving the bank $3525.  The consumer is only getting $1000.  Who gets the rest of the money?  USAA and NAVYFED.  They are getting the equivalent of a loan origination fee out of the real estate agent.  By the way, I’ve just made 2 disclosures for these banks.  1.  The money doesn’t come from the bank, it comes from the agent.  And 2.  The bank is not required to tell you what they do with the overages.

Here’s my last disclosure about this program; and this only has to do with USAA.  If your loan is not a jumbo loan, roughly $625,000 and over, you aren’t getting your mortgage from USAA.  This can account for the crappy service you receive.  The mortgage is actually coming from PHH.  PHH Mortgage is a “mortgage outsourcing solution.”  Yeah, otherwise known as a third party originating loans under someone else’s brand.  This is NOT disclosed  to USAA mortgage clients.  When most consumers are getting a USAA loan, they aren’t actually getting a USAA loan.  They are calling into a large call center and becoming a number on a file.  I can’t tell you how special I feel when I become a number at a call center.  You won’t meet your loan officer which limits the accountability needed in today’s real estate transaction.  I’ve actually been told by a PHH loan officer, working under the USAA name, that my client’s file had been placed on the back burner while she dealt with larger loan amounts for others.  Okay, I’m paying a company thousands of dollars to treat my buyer like crap?  How does this make sense?

In case you missed it, I don’t like the USAA and NAVYFED Preferred REALTOR(R) programs.  It’s not because I’m jealous that other agents are getting the clients.  I’ve actually had many clients opt out of the program in order to work with me.  I don’t like the program because it is dishonest.  If the bank thought the program was on the up and up, they should have no problem disclosing all aspects of the program.  They actually forbid Preferred Agents from disclosing these things to consumers.  I also believe that once an agent starts losing money on a transaction, even the most ethical and fantastic agents, customer service begins to slip.  It’s the difference between a server at McDonald’s and a server at Old Town Steak and Seafood.  You do your job better when you know you will be rewarded for your work.  The policies of the program also don’t allow me to carry out my fiduciary duties.  I can’t be loyal to a bank and be loyal to my client.  One of them has to lose out.  In my world, it will always be the bank.

** It would only be prudent for me to disclose that I was banned from being a USAA Preferred Agent 4 years ago for expressing my dislike for how my client was being treated by USAA on the internet.   I took to Twitter and tweeted that I hated USAA.  USAA contacted my broker and demanded I be sensored.  I chose to work for another broker. **

The American consumer is being introduced to a new, shiny, unicorn.  As a part of the Attorney General’s settlement with 5 major loan servicers – Bank Of America, Wells Fargo, Citi, Chase, and Ally (GMAC), new short sale guidelines are being rolled out that will (supposedly) speed up the short sale approval process.  Currently the five servicers listed have pretty horrible track records for short sale approval time lines.  The long time lines for approval increase the likelihood that viable buyers will walk away from the transaction and the property will end up in foreclosure. 

Here are the new guidelines:

1.  Servicers must provide borrowers with a short sale decision within 30 days after receiving a short sale package request.

2.  Servicers will notify borrowers, also within 30 days, if documents are missing from the short sale package.

3.  Servicers must notify the borrower immediately if deficiency payments will be required.  An estimate of the deficiency amount must also be provided. 

4.  Internal groups at each servicing institution must be formed to review all short sale requests.

5.  Banks will be considered in violation of the settlement agreement if more  than 10% of their short sales exceed the new time lines.  A fine of up to $1 million and up to $5 million for repeat offenses. 

It is important to remember that only the 5 servicers listed are required to participate in these new guidelines.  What is unclear is how 3rd party servicers for these 5 banks will weigh into the equation.  Bank of America has begun to unload many of their defaulting loans to Green Tree Servicing.  Green Tree does not participate in the new guidelines or any of the short sale transaction management systems Bank of America has in place. 

This isn’t the first time we’ve seen short sale guidelines handed down to banks.  HAFA unveiled their guidelines in 2010 and not many short sales have adhered to the time frames outlined in the program.  Heck, many borrowers who qualify for HAFA are being turned down for the program with little to no explanation from the bank. 

It will be interesting to see how this all pans out.  Actually getting a servicer to adhere to these guidelines may be as allusive as capturing a unicorn.  I’m participating in my first short sale under these settlement guidelines.  So far so good, but the 30th day is still a week away.  I’ll keep you posted.

A frequently asked questions I get is, “Why does short sale approval take so long?”  Many consumers, and real estate agents, are confused by the term “short sale.”  They think the “short” refers to the time frame.  Well, it doesn’t.  “Short” refers to the fact that the lender will be “shorted” the amount that they are owed.  It will and does take time for banks to decide if they are in the position to let you short sale your home.   

One of the largest factors in the short sale timeline is the number of people involved in short sale approval.  Many are under the impression that the bank’s short sale negotiators are also decision makers.  They aren’t.  Negotiators are just what their title implies, they negotiate on behalf of the bank.  It is their job to get the highest possible sales price for the property in order to help the bank mitigate loss.  If the numbers that are turned in by the seller and listing agent don’t make good business sense for the bank, the negotiator will reject the contract or negotiate more favorable terms.  You can cut down on approval time by making sure offers to the bank make sense.  The less negotiating the negotiator has to do, the quicker the decision maker will get the short sale package. 

After the negotiator has reviewed and accepted the terms of the contract, the package moves on to a supervisor.  The supervisor will review the package again and decide if the package should be elevated to a group of decision makers.  This is where the process gets held up.  The decision makers aren’t sitting around waiting to review short sale packages.  They have other jobs and duties.  Decision makers meet at regularly scheduled meetings and review a large number of short sale packages at once.  They will come to an agreement on how each package should be handled.  Some are accepted as-is and an approval letter can be issued.  Some packages require more negotiations or contingencies and add to the timeline for approval.  Once the defaulting seller agrees to the approval of the short sale or the counteroffer from the bank, the package is sent to a higher ranking official within the bank to get a signature of approval.  This is when, and only when, you have complete short sale approval. 

So, those are the key players in the short sale approval timeline, but what else can hold up the process.  A newer player has appeared in the short sale game, the servicing company.  Servicers are different than originators.  Servicers have no authority to modify loans, refinance properties, or approve short sales.  They act as a 3rd party for banks as debt collectors or short sale negotiators.  If your short sale is being handled by a servicer, you have just added another entity to the process, thus increasing the time frame it will take for approval.  The servicer can preliminarily accept terms for a short sale, but still need the originator to sign off on the approval.  In the meantime, the loan can be sold to a new servicer and the process has to be started all over again.  It becomes a vicious cycle. 

A third factor that holds short sale approval up is banks are only open 5 days a week, if we’re lucky.  The time it takes to review a single short sale package is staggering.  Add to that the number of short sale packages a bank receives, the number of man hours a bank dedicates to short sales, and the number of packages that are turned in with inaccurate information, there just isn’t enough time in the day to make this process more efficient.  Efficiency depends on the human element, and let’s face it, humans are not efficient.  The short sale approval process is based on a system of steps that must be completed before the next step can be started.   These steps are only reviewed Monday through Friday, during normal business hours. 

Examining short sale approval timelines requires you to look at this type of transaction from a business perspective.  We have to remember, short sales are a privilege, not a right.  Earning this privilege takes time and due diligence.

Pitfalls of Highest and Best Offers

The Fredericksburg area real estate market is definitely heating up.  With a hopping real estate market comes less inventory, multiple offers, and more competition.  Today’s housing inventory is moving fast, and buyers need to be wary of writing offers they may not be able to close. 

It’s 2012 and banks are getting wise to pricing and negotiation tactics.  Banks are also sick of hemorrhaging money and need to find a way to stop the excessive bleeding.  A not-so-new tactic for pricing properties has emerged, list it low – sell it high.  Yes, sellers are actually listing their homes at low prices in hopes of garnering multiple offers and creating a bidding frenzy, thus increasing the sales price.  This is wreaking havoc with buyers and buyer’s agents.  After several years of properties being listed at reasonable prices, buyers are falling for this marketing trap.  They see a home listed for $260,000, fall in love with it, write an offer, only to find out there are 6 other offers and the seller now wants the “highest and best” offer.  Keep in mind, this is not just a bank tactic, but short sale sellers and traditional sellers are now playing this game.  

If a buyer is making a decision based on their emotions, they may be tempted to bid higher, even higher than proven market value (recent solds in the area).  This can lead to some pretty serious problems.  If a listing is a short sale, the offer the seller accepts may not be an offer the bank is willing to accept.  A property may be listed at $260,000, gets a ”highest and best” offer of $285,000, and the bank comes back and says they will only accept $295,000 to allow the short sale.  That’s a $35,000 difference between the list price and what the bank will accept.  Or, what if the bank accepts the $285,000 price and then the appraisal comes in at $275,000.  How is the buyer going to make up the difference or do they really expect the bank to lower their expectation… that the buyer set by offering such a high sales price. 

This is a foreclosure problem, as well.  Many banks are now making buyers who write offers over list price sign an addendum that states the buyer is responsible for any difference in contract price and appraised value.  But wait, the bank listed the foreclosed property at a low price in hopes of getting higher offers.  And, the bank put the perspective buyers in a “highest and best” situation.  Yes, yes they did.  The bank is trying to mitigate loss.  Your high offer is helping them do just that.  (Also, please pay your taxes so banks can get more bail out money).   

Ultimately, it is the buyer’s responsibility to make sure they are writing offers they can follow through on.  It is also the buyer’s responsibility to make sure their offer price is within market value and that the home will meet lending guidelines.  A good buyer’s agent will walk you through the pitfalls of “highest and best” offers.  A great buyer’s agent will help you decide if you are even eligible to play this high stakes real estate game.

Valentine’s Day is less than a week away, and if you’re anything like me, you’ve failed to make your dinner reservations.  The well-known restaurants will most likely be booked solid by now, especially for the peak dinner hours.  Well, you’re in luck.  Here are a few suggestions of over looked restaurants in Fredericksburg to try.  (All have been tasted and approved!)

1.  Wegman’s- Yes, I’m suggesting eating at a grocery store.  Fredericksburg let out a cheer when Wegman’s opened it’s doors.  Many will be letting out another cheer this Valentine’s Day as they lay a pre-prepared meal on their dinner tables.  Leave the cooking up to Wegman’s and the ambiance up to you.  Wegman’s offers an assortment of culinary delights from main course and side dishes, to delectable desserts.  While you’re there, grab some flowers, a card, and/ or candy!  This is a one stop shop!  Wegman’s is located in Celebrate Virginia, across the street from Central Park.  2281 Carl D Silver Pkwy.

2.  Lee’s Retreat Brew Pub- Lee’s Retreat, the restaurant connected to Fredericksburg’s Blue and Gray Brewery, is reopening for Valentine’s Day!  They are offering a beer and wine pairing dinner menu.  Reservations are for 6:30pm on Valentine’s Day, only.  The dinner consists of  5 predetermined courses and experts’ selections of beer and wine.  The cost is $75 per person and gratuity is not included.  Lee’s Retreat Brew Pub is located in the Bowman Industrial Park off of Rt. 2.  3300 Dill Smith Drive. 

3.  Pueblo’s Tex Mex Grill- This is my new favorite restaurant!  Keep in mind, this is a very intimate dining space.  There are not many tables, so I highly recommend making a reservation to ensure seating.  Pueblo’s takes Tex Mex to a whole new level for the Fredericksburg area.  Food is made to order and the menu offers so much more than “order-by-number” dining.  The wait staff is very friendly, the food is delicious, and they offer a full bar.  Pueblo’s is located on Jefferson Davis Hwy across the street from Eagle Village Shopping Center.  1320 Jefferson Davis Hwy. 

4.  Poppy Hill Tuscan Kitchen-  Poppy Hill is a cozy environment offering farm fresh ingredients, homemade pasta, and fresh herbs.  Go as a couple or go with friends, you are sure to have a good time.  The restaurant is not handicap accessible, but is located in a historic building… it’s actually in the basement.  Poppy Hill is located at the corner of William Street and Charles Street.  1000 Charles Street. 

5.  The Kenmore Inn- This popular bed & breakfast offers a full service restaurant in the basement.  Overlooking a brick courtyard, this dining experience includes a seasonal, eclectic menu.  Be sure to visit the bar area to enjoy relaxing conversation and a beverage of choice.  Make it an overnight holiday with one of several packages offered by the bed & breakfast.  The Kenmore Inn is located near the heart of downtown Fredericksburg on Princess Anne Street.  1200 Princess Anne Street.

So, whose market is it anyway?  Is it a buyer’s market?  Or, is it a seller’s market?  I’ve been saying it for 4 years now, it’s neither.  It’s a bank’s market.  This is not to say that banks are coming out rosy in real estate transactions.  Many banks are still losing money on individual transactions., even if their reported earnings include profits.  However, in a market that consists mostly of short sales and foreclosures, banks have the upper and.  On the selling end banks set the price they will accept for the sale and on the buying end banks order the appraisals and decide if the property is a good investment.  With the majority of the transaction in the bank’s hands, it’s a bank’s market. 

If banks have so much power, how much can you negotiate when trying to purchase a home?  I’m going to go ahead and lay this out there, this country has lost the fine art of negotiation.  Most consumers are looking for a “win.”  Very few consumers know how to pinpoint their breaking point when it comes to purchasing and even fewer can determine the seller’s breaking point.  Without these skills, negotiations can go south fast. 

The first step in negotiating real estate is figuring out, as the buyer, how much you want the property.  Your desire to obtain the property will determine your starting point. 

The second step is determining what comparable properties are selling for in the neighborhood and area.  Some real estate agents will price a property well under comparable sales in hopes of obtaining multiple offers.  When in a multiple offer situation, be wary of relying on being the highest offer.  The home will still need to appraise.  Highest is not always best.  On the flip side, if a home is priced much higher than comparables, it may be signalling an unreasonable seller. 

The third step is investigating the other conditions you will be including in your offer.  If you want a home inspection and expect repairs to be made, you may want to consider offering closer to market value.  If the property is sold “as-is” you need to weigh how many apparent repairs are needed in to your offer price.  Many “as-is” properties are priced with needed repairs taken in to account.  It is also important to remember that “as-is” means “as-is.”  The more conditions/ contingencies a seller sees, be it a bank or consumer, the less likely they are to favor your offer. 

After compiling all of this data, make an educated offer.  Real estate is not a game, especially if you really want the property.  If you treat it as a game, you may come out on the losng end more times than not.  It’s much harder to resubmit an offer once a seller rejects an initial offer or is offended by an original offer.  I’m not saying give the seller exactly what they want, but if their listing makes sense, make sure your offer makes sense, too.

October was none too shabby.  Low interest rates are fueling the market right now.  It will be interesting to see what happens to the market as banks release more of their foreclosure inventory.  The REO properties are coming.  The market inventory should increase after the holidays and we could see prices dip to stay competitive.  We are definitely not out of the woods yet and should expect at least another 4 cycles of foreclosures before we can see teh hint of light at the end of the tunnel.   

Fredericksburg City

• 79 days on market – this is 38 days less than in October 2010
• Sellers received, on average, 90.5% of their list price when the home sold
• There is 5.8 months of inventory on the market
• 18 homes sold in October 2011 – this is 3 more than October 2010.
• The most popular price range was $200,000-$299,999.
• The median sold price was $210,250, compared to $219,000 in October 2010.
• Financing Terms:  Conventional – 4, FHA – 2, VA – 4, Cash – 7, Other – 1

Orange County

• 121 days on market – this is 33 days more than in October 2010
• Sellers received, on average, 91.1% of their list price when the home sold
• There is 12.84 months of inventory on the market
• 25 homes sold in October 2011 – this is 5 more than in October 2010
• The most popular price ranges were $150,000-$199,999.
• The median sold price was $153,000, compared to $183,255 in October 2010 
• Financing Terms:  Conventional – 3, FHA – 8, VA –2, Cash –8, Other – 4

Spotsylvania County

• 82 days on market – this is 15 more than October 2010
• Sellers received, on average, 92.8% of their list price when the home sold
• There is 4.87 months inventory on the market
• 126 homes sold in October 2011 – this is 5 less than in October 2010 
• The most popular price range was $150,000-$199,999
• The median sold price was $178,000, compared to $184000 in October 2010 
• Financing Terms:  Conventional – 32, FHA – 36, VA – 24, Cash – 25, Other – 9

Stafford County

• 63 days on market – this is 7 less than October 2010
• Sellers received, on average, 95.3% of their list price when the home sold
• There is 4.04 months inventory on the market
• 123 homes sold in October 2011 - this is 9 more than in October 2010 
• The most popular price range was $200,000-$299,999
• The median sold price was $246,000, compared to $263,550 in October 2010 
• Financing Terms:  Conventional – 28, FHA – 31, VA – 43, Cash – 17, Other – 4

Prince William County

• 54 days on market – this is 11 more than October 2010 
• Sellers received, on average, 96.4% of their list price when the home sold
• There is 3.58 months inventory on the market
• 394 homes sold in October 2011 - this is 53 less than in October 2010
• The most popular price range was $200,000-$299,999
• The median sold price was $244,500, compared to $250,000 in October 2010
• Financing Terms:  Conventional – 101, FHA – 153, VA – 77, Cash – 56, Other – 7

Caroline County

• 121 days on market – this is 33 more than October 2010 
• Sellers received, on average, 89.1% of their list price when the home sold
• There is 6.25 months inventory on the market
• 32 homes sold in October 2011 - this is 2 less than in October 2010
• The most popular price range was under $100,000-$149,999
• The median sold price was $137,500, compared to $150,950 in October 2010
• Financing Terms:  Conventional – 12, FHA –10, VA – 2, Cash – 4, Other – 4

All data provided by MRIS.

Just a few days ago, Redfin unveiled it’s newest, latest, greatest thing in real estate – The Scouting Report.  The Scouting Report ignited a firestorm in the real estate community almost immediately.  What seemed to be designed to help consumers evaluate turned out to have alot of bugs and inaccuracies.  Redfin admitted, a day after launching The Scouting Report, that there were at least 12 bugs with the program.  The quirks in the system weren’t the only problems with the program.  It appears that Redfin was also indexing agents’ names. This means that if a consumer searched for an agent through Google, then Redfin would pop up in their search as one of the top options.  If the agent is not a Redfin agent this can cause some problems.  The brokerage disclosures for each agent were not readily apparent to the sites’ readers.  This directed internet traffic away from the agent’s brokerage and to Redfin.  This practice is frowned upon in the real estate industry because of the way information was presented to the public.  Many agents expressed that they do not mind their sales statistics being available to consumers; they just want that data to be accurate. 

How Would You Rate Your Last Agent?

What I think it boils down to is that statistics don’t tell the whole story.  The Scouting Report reported information on average days on market for an agent’s listings, average number of listings that had price drops, average sales price and sales price range, etc.  While Redfin now acknowledges that there were “bugs” in the days on market data; seeing an accurate number of days doesn’t tell you if an agent is good or not.  There are a variety of reasons why a home sells quickly or languishes on the market.  Many consumers would think that less days on market would be a good thing.  However, less days on market may be due to under pricing, or having a specific buyer in mind when a property is listed.  A lengthy time on market may mean that the seller has set a list price that is higher than what the market will bare.  Or, the property is very unique and requires a unique buyer.  The numbers mean nothing without context.  This is just ine example of why a rating system, such as this one, is not what it may seem on the surface. 

After many complaints and several Multiple Listing Services pulling their agent information from Redfin all together, The Scouting Report 1.0 has been taken offthe Redfin site.  The Northern Virginia MLS  (MRIS) was one of the mls’s that took this action.  It seems that The Scouting Report is a good idea in theory, but there are just too many variables in real estate transactions to make it work effectively and accurately.  MLS data relies on mls members (agents) to inport accurate data.  Let’s face it, mistakes are made.  If any rating system pulls human-imported data, then there is a great chance that errors will be reported as accuracies.  Redfin’s reference to their report being a 1.0 tells me that they may try to relaunch at a later date.  It will be interesting to see if that system will also be an “opt-out” instead of a “opt-in.” 

So, what’s the best way to evaulate a agent before you hire them?  It’s simple.  Ask questions.  If sales stats are important to you, have the agents you interview bring their sales stats with them.  Every agent knows how many deals they have successfully completed.  It shouldn’t be hard for them to answer questions about them.  You can also check the Department of Professional and Occupational Regulation for any state regulation violations.  You will need the agent’s full name to look up this data.  See if the agent has a Facebook profile, Facebook business page, and/ or Twitter account.  You can learn alot about a person by how they interact online.  The important thing to remember is that any agent rating system will be flawed.  Be prepared to seek out those flaws and do your own research.

I know you’ve heard about the great bed bug infestation that has hit the United States.  Well, it looks like it has finally made its way to Fredericksburg.  There has been an uptick in bed bug reports to landlords and doctors across the area.  The important thing to remember is that bed bugs are not a social class epidemic.  The can be found in any house, clean or not.  Keep in mind that many bed bug infestations happen in hotels and college campuses, not low-income houses.  Bed bugs feed off of human blood, not dirt.  So, as long as you have blood in your body, there is a chance you can have a bed bug infestation.  No one is immune from these little critters.  Makes you feel all warm and cozy, huh?

So who is responsible for the costs of exterminating bed bugs in a rental property in Virginia?  The quick answer is:  The Tenant.  That’s right.  Unless the tenant can prove that the landlord knew, or should have known there was an infestation before the tenant occupied the property, then the tenant is responsible for treatment and remediation.  The Virginia Residential Landlord Tenant Act also requires the tenant keep the premises free and clear from any bug infestation.  Section 55-248.16 states:

The tenant shall … keep that part of the dwelling unit and the part of the premises that he occupies free from insects and pests.

So, landlords will argue that it is the tenant’s responsibility to treat and remediate bed bugs at the tenant’s expense.

If you think your bed bug infestation is the fault of your landlord, you need to document everything and contact a local attorney.  There is no guarantee that the cost of bed bugs will end up getting paid for by the landlord.  Moving out in the middle of the night is also not an option.  The landlord has a right to sue a tenant who has abandoned the property for lost rents, cleaning fees, and pest remediation.  You may not live there any more, but you’ll still get a bill for the bed bugs.  So far, Virginia has not had a bed bug case go to court.  It is hard for lawmakers to address an issue if they haven’t acknowledged there’s a problem.  It’s kind of like a out of sight, out of mind mentality. 

What does bed bug treatment look like and how much does it cost?  Simply washing linens, clothing, and carpets isn’t going to rid you of bed bugs.  These little guys are super great at hiding.  The extermination of bed bugs includes using monitoring devices, removing clutter where bed bugs can hide, applying heat treatment, vacuuming, sealing cracks and crevices to remove hiding places, and using non-chemical and chemical pesticides.  Because the treatment process is so intense, the cost is much higher than the treatment of other insects and pests.  Getting multiple quotes from reputable pest control companies is highly recommended.

I’m giving August a thumbs-up, but barely… just barely.  Inventory is pretty low, which is actually a good thing as we head into the fall selling season.  However, rumor has it that banks are releasing a new wave of REO properties in the next month or two.  This should create longer days on market and more months’ inventory.  Unfortunately, sales price ratios will most likely also see a decline.  Those pesky banks!   

Fredericksburg City:

• 84 days on market – this is 67 days less than in August 2010
• Sellers received, on average, 98.5% of their list price when the home sold
• There is 5.8 months of inventory on the market
• 20 homes sold in August 2011 – this is 4 more than August 2010.
• The most popular price range was $200,000-$299,999.
• The median sold price was $220,000, compared to $283,500 in August 2010.
• Financing Terms:  Conventional – 8, FHA – 5, VA – 3, Cash – 2

Orange County

• 116 days on market – this is 31 days less than in August 2010
• Sellers received, on average, 89.5% of their list price when the home sold
• There is 7.95 months of inventory on the market
• 41 homes sold in August 2011 – this is 10 more than in August 2010
• The most popular price ranges were $100,000-$149,999.
• The median sold price was $150,000, compared to $160,000 in August 2010 
• Financing Terms:  Conventional – 16, FHA – 6, VA –1, Cash –14, Other – 4

Spotsylvania County

• 75 days on market – this is 20 more than August 2010
• Sellers received, on average, 93.8% of their list price when the home sold
• There is 4.19 months inventory on the market
• 157 homes sold in August 2011 – this is 20 more than in August 2010 
• The most popular price range was $200,000-$299,999
• The median sold price was $187,000, compared to $200,000 in August 2010 
• Financing Terms:  Conventional – 38, FHA – 41, VA – 40, Cash – 32, Other – 6

Stafford County

• 66 days on market – this is 5 more than August 2010
• Sellers received, on average, 95.3% of their list price when the home sold
• There is 4.7 months inventory on the market
• 120 homes sold in August 2011 - this is 43 less than in August 2010 
• The most popular price range was $200,000-$299,999
• The median sold price was $225,000, compared to $249,625 in August 2010 
• Financing Terms:  Conventional – 31, FHA – 30, VA – 41, Cash – 17, Other – 1

Prince William County

• 53 days on market – this is 10 more than August 2010 
• Sellers received, on average, 96.8% of their list price when the home sold
• There is 3.10 months inventory on the market
• 498 homes sold in August 2011 - this is 89 less than in August 2010
• The most popular price range was $200,000-$299,999
• The median sold price was $277,500, compared to $265,000 in August 2010
• Financing Terms:  Conventional – 156, FHA – 143, VA – 116, Cash – 74, Other – 9

Caroline County

• 95 days on market – this is 2 more than August 2010 
• Sellers received, on average, 88.7% of their list price when the home sold
• There is 5.78 months inventory on the market
• 33 homes sold in August 2011 - this is 10 more than in August 2010
• The most popular price range was under $100,000-$149,999
• The median sold price was $110,000, compared to $150,000 in August 2010
• Financing Terms:  Conventional – 7, FHA –11, VA – 3, Cash – 7

All data provided by MRIS.