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If you own (or live in) a Sears house or other mail-order/ kit house, please click here
Local Lenders… A Buyer’s Best Friend
Buyer beware. There’s a tempting mortgage rate being dangled in front of your eyes, and it just might come from an e-lender (gasp!) or an out-of-town lender. Here’s why we will always advise you to opt for the local guy/gal:
- Appraisals. Local lenders know who to call upon for accurate appraisals. Banking laws have changed a bit, so an individual appraiser can’t be assigned to your “case”. However, local banks can arrange for a pool of hand-picked, talented, accurate and regional appraisers to handle all of their business. Although one of the “pool” will be randomly assigned to your loan, no matter who you end up with, chances are your appraisal will properly reflect current and local values. Our local banks pay top dollar for appraisals and because of this the folks that work for them can turn things around quickly. Work with an out-of-town/big box lender, and you’ll likely end up with an appraiser who lives 60 miles out-of-town and is willing to accept half the standard fee (somebody else keeping the other half). In other words, you’ll be assigned someone randomly. Trust me, this appraiser doesn’t know that school district A homes command considerably more than school district B. And because the volume of real estate sales is down, appraisers have to work twice as hard for the money- often venturing outside of their comfort zone. Travel costs can eat considerably into their already reduced fees, so a distant appraisal might not get you placed on the top of their list. It’s luck of the draw. Do you really want that puppy mill appraiser placing a value on the home you just fell in love with?
- Accountability. Ever been frustrated with your phone provider (I won’t name names)? One can get the same treatment in the mortgage world. Only, it’s not over a couple hundred bucks, it’s over the biggest purchase of your life! Don’t get me wrong, they aren’t all bad. But if you keep it local, and work with someone who comes highly recommended (hopefully by me), then we have someone to turn to if something goes wrong. I recently slogged my way through a loan with a New Jersey lender where things were delayed by over 2 weeks, costing my client thousands of dollars. Trust me, that New Jersey lender doesn’t care what I think. They aren’t trying to win my business, or impress me. The loan officer who took the application and wrote the pre-approval letter checked out of the deal the minute it went to Underwriting. And guess how much Underwriting cares…
- Timeliness. Jumbo loans can be difficult. And DC/Bethesda/Chevy Chase is a jumbo loan kind of market. Our local lenders are quite accustomed to getting these loans through in a timely manner (actually adhering to the terms of the contract!). Our friends in New Jersey have been good at letting us know how lucky we are just to be talking to them. One of the loan processors actually said to my client “oh, you have a jumbo loan. I haven’t seen one of those go to settlement on time in I don’t know how long…” What! A delayed settlement can jeopardize your purchase.
- Theater of the Absurd. I once had a lender tell me that the sellers had to get rid of a 2nd refrigerator in their house because it was considered “personal property” and had to be removed from the premises prior to settlement. You can’t make this stuff up. Was this a Big box lender following some absurd guideline? You got that right.
My rant is done. I fear I’ve been a little snarky. No doubt, there are economies to be had by working with the big guys. But it’s served up with a side of crazy. Buyers… I’m begging you… keep it local! It will save you energy, time, possibly money, and certainly your sanity.*
*We’ve got a long list of tried and true lenders. Give us a call and we’ll happily share.
2012 Takoma Park House & Garden Tour
Cati and I had the pleasure of meeting Diana Kohn (President) and Lorraine Pearsall (VP for Preservation) of Historic Takoma, Inc.* Cati has been involved in the upcoming Takoma Park House & Garden Tour, having sold one of the houses on the tour (and discovering in the process that it belonged once to the daughter of Frederick Douglass!). Long story short, she was able to identify several houses on the tour as Sears Kit Houses (our specialty!), much to the delight of an owner or two. We were treated to a mini walking tour on Wednesday. It was a lovely indulgence!
Anyway, the Takoma Park House & Garden Tour is this Sunday, May 6 from 1-5 pm, rain or shine. For ticket and tour information, visit HistoricTakoma.org
There are some real beauties on the tour, ranging from old to new. Don’t miss it!
(If you own (or live in) a Sears house or other mail-order/ kit house, please click here)
*(Historic Takoma, Inc. [HTI] is a membership-based, all-volunteer, 501(c)3 non-profit organization, founded to preserve the heritage of Takoma Park, MD and the Takoma Park neighborhood of DC through educational activities and the preservation of historic landmarks and artifacts, especially documentary archives).
Should You Get Your House Officially Appraised Before Putting It On The Market?
In the hot market seven or eight years ago, pricing was rarely an issue. Multiple offers (and the escalation clauses that came with them) would take care of getting the price where it should be.
Not so now. Read my latest piece for the Washington Post real estate blog here.
Did You Know That…
1) Housing affordability conditions are the best since NAR (National Association of Realtors) started recording such things in 1970. (The index is based on median home price, median family income and average mortgage interest rates).
*From the National Assoc of Realtors.
2) Inventory in the Washington Metro area is the lowest since the last quarter of 2005- the peak of the market. (Housing inventory is considered balanced when it is a 6-month supply. We now have a 3.2 month supply. This is sure to drive prices up, especially in the hottest areas with the most demand.)
*statistics provided by MRIS.
So Close, And Yet So Far…
This is the first time I’ve written about a kit or catalog house. Cati has a few years on me with this recent obsession, and on our drives around town names of kit houses flit off her lips like old multiplication tables… it’s no longer a novelty… rather, it’s ingrained. “Oh, there’s an Alhambra. Oooo, look at that Americus. Isn’t that a Vallonia?” I have some catching up to do. She’s also very descriptive in the way she writes about these homes, having been a former journalist. I mean, how will I ever top a title like “A Sears Winona Kit House and a Gallon of Blood”? It’s just not in my make up. It’s sorta like having Springsteen be your warm up band.
But, persevere I must. Cati and I like to keep an eye out for the latest real estate listings that we think might have kit house “potential.” Some weeks the listings are a plenty; others, we really have to scrape the the bottom of the barrel. This was the case with a house we recently viewed on England Terrace in Rockville, MD. With a great deal of misplaced enthusiasm, we managed to talk ourselves into thinking that it was an original Sears “Winona.” After all, on paper it seemed to share many of the characteristics. It appeared to have roughly the same (original) footprint, it was
built during the right era, a dormer on the left side of the house appeared to be exactly where the dining room would fall, and it had this cool looking odd little door in the middle of the living room wall…once we spied that in the house photos, we were smitten.
Tires screeching, we raced out to Rockville, took a few false turns, and eventually found the house.
Almost as soon as we entered the house, we knew it was a bust. Why? The trim–where it hadn’t been replaced–was all wrong. And the dormer favored the front of the house, not the middle as in the Winona. The distances of the bedroom windows from the corners were wrong. The odd little door in the middle of the dining room wall (which we had seen in interior photos of “real” Winonas) was still in place, but the similarities stopped there. The basement entrance had been modified when the addition was put on, so there were no identifying marks near the stairs (where we’ve discovered them in the past). And a good deal of the basement had been re-built, as evidenced by the newer beams & shiny metal plates at just about every corner.
The biggest revelation, however, were the darkened original beams: roughly finished and a crude kind of wood–nothing like the high-quality lumber that was the trademark of even the simplest Sears house.
It’s possible that someone built the house based loosely on the design of a Winona he’d seen somewhere. That was done a lot in those times, that sort of “borrowing.” It’s also possible that a builder bought the kit and modified it, though in this case the building materials didn’t point that way. It could be a knock off from a competitive kit company that we just don’t know about. The possibilities are endless. All we can tell you, for sure, is that it’s not a Winona.
While the outcome was a disappointment, it got us away from our desks and computer screens, out into the brilliant blue afternoon, checking out houses, which is what we love. Next!
(Click here for an authentic, though modified, Winona in Arlington, VA)
10 Mighty Good Reasons to Ditch Your Real Estate Agent
Some might find it a little odd that we are promoting reasons to fire your agent… on our website. But, good advice is often hard to come by (and we’re full of it)!
Not all real estate relationships are a good match. Sometimes there are compelling reasons for parting ways with your agent. Here are our top 10:
- The Yes Man (or Woman). Some agents “buy” listings, meaning they will take a listing at any price just to win it. They figure they can always lower the price down the road when it doesn’t sell. It’s a silly business plan. We don’t get paid until your house sells, so it’s in our best interest to provide you with the best pricing advice, period. If an agent comes in with an inflated price, or agrees to your own ludicrous one (no disrespect, Seller), make sure they have the chops to prove it. Pricing a home isn’t a science. That said, demand to see recent comps and ask a lot of questions.
- Length of Service. This one might surprise you. Experience counts. But so does attention to detail, enthusiasm, and follow through. We’ve had dealings with some very “experienced” agents that were nightmarish, and delightful transactions with some agents in the green category. So, you shouldn’t necessarily shy away from a newer agent. We were all new, once.
- The Know-it-all. Don’t you just hate being with people who claim to have all the answers. Real estate is an evolving, ever-changing practice. Cati and I have been in the business for almost 30-years combined, and trust me, we don’t have answers to everything. Occasionally we have to ask… and we’ll let you know if that’s the case.
- Do you click? Sometimes people just don’t mesh well. Real estate transactions can last a long time. Be honest with yourself (and your agent). If it’s not working out, cut the cord and move on.
- Can you find your agent? Quite often we get calls from buyers wanting to see our listings. Sometimes, with a little digging, we learn that they already have an agent, but said agent is vacationing in Bimini for the next 2-weeks, and can we let them in? For goodness sake! Make sure your vacationing agent has a back up plan. For that matter, make sure your agent returns your phone calls and e-mails in a timely manner. Things are competitive out there, folks. You need someone who can react quickly.
- Market Updates. Anyone can send them. Heck, you can set them up yourself now with all of the Search Engines out there. What you really need is someone to cull through the batch and pick out the ones on which you should focus. We do this obsessively. Our goal is to let you know when to JUMP TO IT.
- Location, Location, Location… and we don’t mean this in the traditional way. Where does your agent live? Where do they typically practice? If they live over in Fairfax County, VA, chances are they can’t point you the way to the nearest coffee shop, let alone elementary school, if your search is focused in on Bethesda, Maryland. Hire a local agent and soon you’ll know the ins and outs of the town.
- It’s a rather Zen-like thing to say, but think of us as your Guide… not as your Dictator. If you’re selling a house, you set the price – we merely advise (sometimes quite strenuously). As a buyer… you get to choose the house, not us. You should never feel guilted into putting an offer in on a house, or pressured to live in a particular neighborhood because the realtor says so. If you do, it’s time to run.
- It’s our job to take you through the steps. Sometimes we get rushed for time and race through the signing of an offer… but we’ll always try to summarize what you are signing and why. If you’ve got an agent with a “sign here” mentality, be very careful.
- It is our duty to look out for your best interests. Always. We’ll look out for you as we negotiate the terms of a sale, work our way through inspection contingencies, or discover irregularities with title. If an agent brushes aside some of your legitimate concerns (should I be worried about a wet basement? Or a neighboring fence that sits on my lot?, etc.), challenge them. If it doesn’t ring true, chances are, it ain’t right.
So, if you’re feeling like the pained guy in the photo, for goodness sake, ditch your agent.
And if we can help answer any questions about buying or selling, or administer some friendly advice about real estate, please give us a call. We’re here to help.
Sold in Five Days — How Much Is The Historic Sentiment Worth?
On my DC House Cat blog, I regularly introduce historic kit houses that are for sale in the Washington DC area. Many of them were once ordered from the (probably best-known) Sears catalog, others came from companies such as Aladdin and Lewis Manufacturing (a particular favorite of the in-town suburbs in the 1920s).
It’s virtually impossible to put a sticker price on the value of house history (although we frequently get that question). What we have found is that in neighborhoods which are highly aware, and often proud, of their history and significance it makes more of a difference. In other neighborhoods, where there’s more turnover, sometimes more privacy and less use of community facilities or organizations, owners seem less interested.
A lack of interest (or perhaps knowledge) leads to thoughtless renovations and modernization that strips the poor house of everything architectural history buffs and catalog house aficionados love it for. But when owners find a way to compromise between their need for comfort and updates and the one hand and the respect for the original materials and sensibilities of the home design on the other, it often pays out. My latest featured Kit House Of The Week, a 1925 Sears “Maywood” in Chevy Chase, is a good example (check out the agent’s virtual tour). And guess what? It sold in just 5 days!