Sarahiously Speaking

Fredericksburg City:

• 52 days on market – this is 144 days less than in March 2008
• Sellers received, on average, 86.51% of their list price when the home sold
• There is 11.36 months of inventory on the market
• 14 homes sold in March 2009 – this is 1 more than in March 2008
• The most popular price range was $100,000 and under. 
• The average sold price was $235,850, compared to $265,100 in March 2008

Orange County

• 137 days on market – this is 30 days less than in March 2008
• Sellers received, on average, 82.15% of their list price when the home sold
• There is 16.56 months of inventory on the market
• 25 homes sold in March 2009 – this is 5 more than in March 2008
• The most popular price range was $140,000-159,999
• The average sold price was $169,908, compared to $255,868 in March 2008 

Spotsylvania County

• 123 days on market – this is 8 less than March 2008 
• Sellers received, on average, 86.55% of their list price when the home sold
• There is 6.85 months inventory on the market
• 151 homes sold in March 2009 – this is 22 more than in March 2008 
• The most popular price range was $140,000-$159,999
• The average sold price was $211,146, compared to $263,469 in March 2008 

Stafford County

• 111 days on market – this is 34 less than March 2008 
• Sellers received, on average, 89.51% of their list price when the home sold
• There is 6.66 months inventory on the market
• 138 homes sold in March 2009 - this is 55 more than in March 2008 
• The most popular price range was $200,000-$249,999
• The average sold price was $230,573, compared to $318,644 in March 2008 

Prince William County

• 102 days on market – this is 32 less than March 2008 
• Sellers received, on average, 90.43% of their list price when the home sold
• There is 4.11 months inventory on the market
• 750 homes sold in March 2009 - this is 248 more than in March 2008
• The most popular price range was $300,000-$399,999
• The average sold price was $210,060, compared to $299,586 in March 2008

The most common asked question in the last month has been, “So, when’s the market gonna turn around?” My answer is usually the same.  “The market will turn around when consumer confidence is up, employment numbers are up, the world’s confidence in the U.S.’s economy is up, when banks have either restructured or short sold the majority of their bad loans, when consumers stop thinking they can get something for nothing, and when we all finally take responsibility for each of our roles in the housing market collapse.  So, about 3-4 more years.” 

These are alot of variables that need to fall into place before we start to see a huge improvement in the housing market.  We are making strides toward stabalization in this area.  Many banks involved in the predatory lending market have now streamlined their short sale process; making it easier to either restructure a predatory loan product or sell the house at a loss.  The easier it is to sell a home and buy a home, the more confident a consumer will be to enter this market.  We are also seeing a decrease in the number of days homes are staying on the market.  I chalk this up to marketability and price.  If the house is in good condition and priced well, it won’t be on the market long.  Now, I’m not saying to price a home under market value, but to realize what market value is.  We are holding steady at the sales price to list price ratio, averaging in the mid-80% range.  And, the number of homes we are selling every month continues to rise across the board. 

The larger part of the equation is convincing consumers that not everyone deserves to own their own home.  I know!  This is blasphemy!  The American Dream is to be a homeowner.  But, nowhere in the American Dream does it say that everyone deserves to a homeowner, hence the dream.  I get calls every week from consumers who are still looking for a “great deal.”  They have caviar dreams, but a Happy Meal budget.  If there is one lesson we can learn from this market it is that we need to purchase homes for our needs, not our wants.  It is important that consumers are realistic about the market and what they can afford.  It is equally important for REALTORS to advise their clients on the market and help set realistic expectations within the limits of the client’s financial situation and current market availability. 

When’s the market gonna turn around?  When we finally learn from our mistakes and get back to old fashion values of working for the American Dream, not just taking it for granted.

April is Fair Housing Month!  (I’m a licensed Fair Housing Instructor and I must say that Fair Housing is absolutely my favorite class to teach!)  Why April?  Well, two reasons.  First, this is the month that Congress passed Title VIII of the Civil Rights Act of 1968.  This Act prohibits discrimination in housing based on race, color, religion, or national origin.  The second reason April is Fair Housing month actually triggered the passing of Title VIII.  On April 4, 1968 Martin Luther King Jr. was assassinated.  It was 7 days later that Congress finally passed Title VIII which had been floundering in Congress for several months.  Since 1968, other Fair Housing protected classes have been added. 

Today we have 7 nationally protected classes – Familial Status, Race, Sex, Disability (Handicap), Color, Religion, and National Origin.  In Virginia we have an additional protected class – Elderliness, which is defined as being 55 years old or older.   Some Northern Virginia areas have protected other demographics.  Alexandria City, Arlington County, Fairfax County, and Fall Church City have protected children, marital status, ancestry, age and sexual orientation.  No one can discriminate in housing based on race!  No one!  Period.  (Refer to the Civil Rights Act of 1866 if you have any questions about this).   

Fair Housing laws prevent a real estate licensee from discussing anything related to a protected class.  This extends to discussing a licensees opinion on school systems and the best neighborhoods to live in.

So when do Fair Housing laws apply to the average consumer who does not have a real estate license?  Remember, no one can discriminate based on race.  It doesn’t matter who you are.  If a consumer owns four or more properties, then Fair Housing laws apply.  And, if a consumer hires a licensee, then Fair Housing laws apply.    

Since the real estate market turned I’ve become more and more aware of the importance of the consumer’s right to choose their own representation in all aspects of a real estate transaction.  This includes the right to choose a REALTOR, lender, home inspector, and settlement agent.  Now the law is pretty clear on this subject.  No one can make a consumer use a particular tradesperson as a condition of an accepted offer or loan approval.  However, I am seeing more and more companies violate this law, or bend the law, as times get tougher.  I guess it is the “protect your own” mentality.  The reasons these laws are in place is to help prevent anti-trust violations and kickbacks.  Yes, kickbacks are illegal in real estate.

The most common example of the consumer’s right to choose being ignored occurs when trying to purchase a Foreclosure.  Virginia law says that the purchaser has the right to choose the settlement company.  Why is it the purchaser’s choice?  Well, in Virginia, the purchaser pays for the title work and title insurance.  Therefore, the purchaser has the right to choose the company that will be ordering the title work and supplying the insurance policy.  (This varies from state to state.  In some states the seller pays for title work, so the seller gets to choose the settlement agent).  Many Foreclosure banks are conditioning an offer’s acceptance on the buyer using the bank’s settlement agent.  Many times this settlement agent is located well outside the area the of the foreclosure and is rather inconvenient to get to.  This scenario violates RESPA and the purchaser’s right to choose their own settlement agent.  Some banks are getting around RESPA by offering the buyer free title work or a discount title policy.  Just remember, you get what you pay for.  Sometimes it’s worth paying full price to make sure you are getting the most protection.     

Are incentives for using particular tradespeople allowed?  For example, if you use this particular tradesperson you get a bonus as a seller or a buyer.  Yes, incentives are allowed.  However, the consumer needs to weigh what they may be giving up for accepting an incentive.  Who is the tradesperson working for?  Are they working for the person or company referring them the business or the consumer?  Should the consumer still interview out of network tradespeople?  Yes, by all means, you should be interviewing out-of-network tradespeople to make sure you hire someone that will represent your best interests.  This is not to say that tradespeople within the network are not going to represent a consumer well.  I know many in-network tradespeople that are fabulous to work with.  In-network tradespeople may go through additional training and may be required to carry certain designations in order to remain in the network.  But, the consumer has the right to explore all of their options and no one can prevent a consumer from hiring an out-of-network tradesperson.  You just may not get your incentive if you go outside the network.    

The important thing to remember is that consumers have a choice.  A consumer’s decision to waive their right to that choice can alter a transaction’s outcome greatly.

(In my attempt to draw more consumers to downtown restaurants and attractions I’ve decided to mention, and critique, some of my favorite places to go.  Capital Ale House is first up!)

My husband has been begging me to go with him to Dollar Burger Night at Capital Ale House for several weeks and we finally had an opportunity to go this past Monday.  Of course, when a restaurant offers food for a dollar you can expect a crowd.  We were not disappointed.  We got there at 6pm and were told it would be a 45 minute wait.  The hostess was less than hospitable, but I will let it slide because the wait staff and bartenders are usually very friendly.  After 15 minutes of waiting, two seats opened up at the bar and we grabbed them.  There are 3 burgers that are $1 and the other burgers are $2.  If you want cheese added it is an extra 50 cents.  Still, not a bad deal.  I ordered the Ale House Burger (with cheese) and my husband ordered the Smokehouse Burger.   You can add on fries as a side item or an appetizer.  The side item is cheaper, but may not be enough fries for two people.  We ordered the appetizer and there were enough fries for 4 people.  You can not get your burger made to order on Dollar Burger Night.  The burgers were delivered to our seats within 15 minutes of ordering and were cooked medium well.  They were actually quite juicy, however, a little bland.  But for $1.50, it was a good burger.  Once we added the cheese, fries, and beers to our order we spent $40 at Dollar Burger Night, but it was a good meal and would have been a $50 tab on a normal night.  Next time we will know to order a $1 burger (maybe add cheese) and waters and get out of there for under $6! 

Do I recommend Dollar Burger Night?  Yes.  But I highly encourage you to make a reservation and prepare to spend at least $20 a person if you want upgrades! 

Dollar Burger Night:  Every Monday Night

Location:  917 Caroline St. Fredericksburg City