Fairfax Living Real Estate Blog

New Thoughts on The Interest Deductions for Homeowners

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Fri, 03 Sep 2010 20:24:08 -0400

Maybe not so new since our Canadian friends to the North have a similar system in place. The system rewards one for paying down debt sooner rather than spreading it out and deducting the interest, if I am reading the article correctly. The maximum amount of time one can have a home loan in Canada without an interest rate reset is 5 years. Encouragement to lower the debt as quickly as possible. The article was in Today's Op-Ed section of The Washington Post.

The concept is interesting and even more interesting since the Canadians have not had the number of foreclosures that we have had here in the U.S. since the financial meltdown. The piece quotes that 14 percent of U.S. mortgages are in distress while the number is only 1% in Canada. If it weren't so doggone cold there in January (Summers are real nice though).

Real Estate Optimism

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Thu, 02 Sep 2010 09:51:07 -0400

I just read an short blurb in this mornings paper about the current economic situation of the country. Despite all of the recent bad news it gave several reasons why the economy is on the mend. The one point that got me thinking was that even though approximately half a million housing units are being built each year, it is only half that required to sustain the current population growth of the country. That means that eventually, and probably sooner than later, the glut of foreclosures and short sales, will start to disappear because of natural demand for housing. Although we should not expect the boom of the freewheeling first decade of the century, a healthy robust real estate market is likely to return with historical price growth. Prices and interest rates will never be better (in my humble opinion). We are in a unique time where homes are truly affordable. If you are able to buy, this is the time to do it.

The article was Five Reasons for Economic Optimism.

Who I Want To Be When I Grow Up - Create A Housing Utopia for Lower Income Families

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Mon, 09 Aug 2010 08:29:50 -0400

No, This is not a government throwback to the Johnson Administration or "The Great Society." This is a private business enterprise run by developer John K. Freeman who bought a run down townhouse development in Falls Church, VA and has turned it into a modern day utopia for (I don't want to use the words poor or disadvantaged) families with limited incomes. If I go to my grave having completed a project like Mr. Freeman has done, other than raising two fine sons, my life would have been well worth living. I would understand my reason for "being" on this earth. Please read this article. It will show you what can be done through private enterprise to make a profit yet fully benefit a community that was once run down and crime ridden in many ways including providing a safe prosperous way for our next generation to grow up. Why it matters: One of Fairfax County, VA's highest performing schools (and Fairfax County has one of the best school systems in the nation), is "Graham Road Elementary." Two thirds of the schools children are from Kingsley Commons, the development revitalized by John K. Freeman.

Investing in Utopia

Need a Job in Northern Virginia?

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Tue, 03 Aug 2010 10:18:03 -0400

I recently did a post on the job market and housing market in the Northern Virginia (Fairfax County) area. This morning while working at my computer, I heard the garbage truck making its way down the block. I rushed out nearly falling and breaking my neck to get the can out to the street. I noticed the truck was moving slower than usual down the street. The driver hopped out and grabbed my can and dumped it the truck. He apologized for not getting my trash quicker and said "we need more workers!"

Throwing trash might not be your idea of a career but if it means getting the rent or mortgage paid, or keeping your family fed, there is certainly nothing wrong with it. It is a necessary service that the public needs. You may want to give American Disposal and Recycling a call at (703) 368-0500 to see if they need any trash men or women.

Sideburn Run Pool Trashed by Juveniles

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Fri, 30 Jul 2010 16:09:57 -0400

Fairfax County Police are trying to identify two juveniles who threw animal feces, deck chairs, and other items in the Sideburn Run Pool on Zion Road in Fairfax. If you can identify the juveniles in WUSA9 video in the upper right corner of the page of the link, please contact the Fairfax County Crime Solvers at 1-866-411-8477.

Delegate Washington to the Nation

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Sun, 25 Jul 2010 10:54:15 -0400

An interesting article in this morning's Washington Post regarding the wide discrepancy between the D.C. metro area and the rest of the nation. The article notes that if Washington were a financial or arts capital like New York or L.A. then the wealth in the area would be more widely acceptable by the masses elsewhere.

This is a wealthy area. I came here 23 years ago unemployed expecting to hang out with my brother for the Summer and head somewhere else from here. What drew me? The incredible job market. I found a job (obviously not a government job) in less than a week when I had been looking for months in Florida. That was 1987 but even today, the regions unemployment is about 6%.

The article goes on to state that with today's technology, the government departments could be spread out through the nation. The truth is, much of the jobs are spread out throughout the nation but the highest concentration is at the center of government like it is almost anywhere else in the world.

This is a great real estate market, even in today's financial mess, compared to much of the rest of the nation. It's very difficult to find a good flip or investment property right now, but it is still possible, as homes are selling at close to market value whether they are foreclosures or not. Short sales you may get a break on but paid for in hassle.

Here is the article.

Here is another article on re-entering the real estate market in general for those who sold at the height of the market and decided to "rent it out: rather than own during the downturn.

Fannie May Sue Mortgage Defaulters!

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Mon, 12 Jul 2010 19:07:36 -0400

Here is another one from the Virginia Association of Realtors Newsletter. It seems that Fannie Mae is looking at sueing specifically, but not limited to, "Strategic mortgage defaulters." I have preached about this before, those who strategically default think that they will not pay any price for walking away. One way or another you will pay (and we all will pay for them not paying). I have mentioned in blogs before that the money one might save by a mortgage default could cause your credit card rates to skyrocket among other things. Good luck getting a good rate on that next car loan. I had said before that before anyone considers a strategic default, they should look at the long term consequences. Well, here is another one, a potential lawsuit from Fannie Mae. I can only imagine (I am not a lawyer) that any judgement would include garnishment of one's wages and harassment from the IRS. The message here is: If you are thinking to default because you just don't feel like paying, perhaps you should step back and think about the results of your actions for awhile. Then decide if it really is the best course of action to take.

Virginia - #20 in the Nation for Mortgage Fraud!

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Mon, 12 Jul 2010 18:58:36 -0400

I just read an email from the Virginia Association of Realtors that Virginia is ranked #20 nationwide for mortgage fraud. The blurb went on to say that Virginia is doing its best to get off the list by "licensing all mortgage originators" through the National Mortgage License System. The final comment was "Make sure your lenders are licensed!"

Downturn in Jobs Not As Bad As Thought!

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Fri, 02 Jul 2010 21:44:38 -0400

This morning, I wrote a short blog on the reason,based on what I had been reading, that the economy was in turmoil due to a lack of jobs. We have historically low interest rates yet home sales are way down. It turns out the predictions were not as bad as thought regarding jobs. The stock market took a tumble but we are not necessarily set for a double dip as the talking heads originally had said. Here is an article on the less than expected job losses.

"Many People See Service Members As Cash Cows"

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Sat, 10 Jul 2010 15:06:57 -0400

That's a quote from this week's Parade magazine that may be,depending on your paper, on your doorstep in the morning if not delivered early on Saturday like mine is. The title of the article is "Red, White, and Scammed," and it focuses on one person, Diann Traina who was ripped off by an unscrupulous car dealer outside her base in Fayetteville, N.C. You've seen them. These are the low class car dealers that have the big signs that say "No Credit, Bad Credit, No Problem." The article goes on to talk about the insurance, rent, pawn shop and check cashing outlets that prey on military personnel. It has become such a pervasive problem that the The D.O.D. have labeled it a threat to national security.

The truth is the average person in the service is about 19 or 20 years old. I didn't know a whole lot at that age, and if I hadn't had my dad or mom around to take with me on a major purchase, I could have easily been ripped off. That's seems to be what is happening. These young adults haven't yet gained enough experience in some instances to understand that they may be ripped off. It has become such a large problem that the Navy has their lawyers involved going after enterprises and individuals who are ripping off servicemen and women. The Georgia Insurance commissioner is going after unscrupulous insurance agents to the point that insurance companies have paid $70,000,000 in refunds to service persons.

I could go on but I'll just say this; General Petraeus typed "military loans" into Google and got 2.5 million results. The military now requires new recruits to take a personal finance class as a part of basic training. Legal services are now offered to military personnel, and they are encouraged to use these services before they sign anything. The full article.

Tenant Services

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Fri, 02 Jul 2010 21:59:58 -0400

With the downturn and lack of sales, I have decided to spend more time in an area I am familiar with and that is landlording or more specifically, tenant placement. Through my KW office in Kingstowne/Alexandria, VA. I will be working more on placing tenants in the Northern Virginia and D.C. Area. I actually have a couple of buyer/renter clients that are on the fence with renting verses buying so its a natural thing to offer these services. I am not planning on directly offering property management but have several sources should a client (i.e. - Landlord in this case) need those services in addition to tenant placement.

For Landlords, the big savings on tenant placement is covering all of the legal bases for renting and time savings. There are a number of required forms and disclosures that must be provided to tenants. As for the general renting of a unit or home, there are the phone calls from prospective tenants, agents, applications processing (that includes credit checks, income verification, and reference checks) as well as showing the property and the move in process.

Many Landlords (and sellers too) may not realize that when they can only show the property after 5:00pm or on weekends, that they are turning away potential tenants. For example, I have tenants flying in from the West Coast to look at homes for three days next week. Are they going to wait around all day to look at you rental? I doubt it unless it is a "hot" property and less expensive than other options. If you have to lower the rent to get people to look at your property then perhaps you should charge a higher rent that reflects market value for the property and have an agent show it all day long, handle the paperwork, and cover your legal requirements?

I can do that for you and set you up with a property manager to manage the property either directly or indirectly. So, if you are interested in tenant placement for your properties in Northern VA or DC, please call me.

Jobs Are More Important Than Interest Rates

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Fri, 02 Jul 2010 08:15:56 -0400

Looking at today's paper over the angst at the looming jobs report where 250,000 temporary census workers are expected to lose their jobs. The recent, predicted here on Active Rain by many, 30% drop in existing home sales after the tax credit ended April 30th, are clear signs that what is keeping the economy down is a lack of a J-O-B. In some cases, the fear of losing ones job is enough to make you want to stay in your apartment.

A case in point, in my neighborhood are several families within spitting distance of my house that have contemplated selling their homes and cashing out. All of them have lived here long enough to still have equity. They are the lucky ones. One neighbor says work is drying up for his government contracting. Another says his wife is probably going to lose her job. I spoke to my webmaster in Maryland the other night, and he tells me his wife has been laid off. Things are tight. I am not sure where my income is coming from either. In better times, I am sure I would have had the security of knowing another one was just around the corner. I am not sure that I feel that way these days. I am certain that is what is keeping most potential home buyers out of the market.

Hopefully. the ecomomists will be wrong and the market will turn out better than anticipated. Wall Street seems to be expecting the worst. Lets just hope they are plain wrong and its better than anyone could expect.

What's In A Building?

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Wed, 30 Jun 2010 23:05:43 -0400

As I write notes for this blog on my Blackberry to be edited later,I am noting that I am sitting in the #1 high school in the entire nation. The public school was for two years in a row rated #1 in the nation for academic achievement by US News and World Report. Apparently, they slipped a bit in 2008 and came back for the #1 spot in 2009.

My son is here tonight to play basketball. He tells me on the way that the "Nerds" at his school say "TJ" is a dump. "TJ" is the nickname of Thomas Jefferson High School for Science and Techology. You don't go there because you live in the district. Even though it is a public school, you have to pass an exam to enroll. This is no ordinary high school.

My son is right. It is a little worn and looks like it was originally built about the same time as the school I went to Junior High School was built; in the late 50s or early 60s. My sons school often is in the top 100 nationally so it is a good school. His school is more modern even though it is 36 years old and looks a heck of a lot better. "TJ" looks like a prospect for the wrecking ball or at least a major rehab job (except the state and county government are flat broke). If my memory serves me, I think the #1 school in the county, with the exception of this "special" one, is "Langley High School" in McLean. McLean screams money! Its a little worn but in a little better shape than "TJ."

So, what's in a building? some of the local school buildings are dumps but they are the best academically in the nation. Several I have seen look worse than the schools I went to in Florida in the 1960s and 70s. Florida schools, with some exceptions like Cocoa Beach High School, are general somewhere between mediocre to good. Some of the best schools in the South but that is not much to brag about.

The point here is that it is not the building, it's what is in the building that matters. Kids grow up dirt poor in shacks, go to one room schoolhouses with dirt floors and grow up to be successful every single day (Well, they used to). The same could be said for a house. Do you really need a 14 bedroom house, with a bathroom for each one and a few to spare? The latest economic trends, according to the Washington Post, are that Americans are going to come out of the current economic crises with a new austere lifestyle much like our grandparents came out of the depression era. I was at the Wal-mart the other day, the place was standing room only, and it was just another Tuesday night. It's not the building, it's the soul within that matters.

Sideburn Run - 4th of July Pool Party - Kegs will be tapped!

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Wed, 30 Jun 2010 07:52:17 -0400

One of my favorite events as a bond owner of the Sideburn Run Pool in Fairfax, VA is the annual 4th of July pool party. Every year there are at least a couple of kegs of beer flowing, Chateau de Cardboard wine (wine in a box) and plenty of sodas and bottled water. Luckily, I can walk to the pool (or walk home if I need to). Even though the pool has a large parking lot that is rarely filled at other times, cars will be double parked for this event and the pool will be packed. There will be a waiting list to play pool basketball. You can forget doing laps. No room for that except in the one lap line that will be open (you may have to wait to use it). Every year thus far, in addition to the drinks, the Sunburn Run Recreation Association (SRRA) has supplied some chips and other snacks. If you would like to order something like pizza, wings or other more substantive food, there are plenty of pizza carriers and fast food deliveries coming to the pool (you even get a pool special for making a pool order). If you are a bond member or just a Summer pool user, we'll hopefully see you there. If you live in 22032, 22015, 22039, perhaps you should consider joining the pool. This has been the hottest June on record in the D.C. area.

The Passing Overnight of Sen. Robert Byrd (D) West Virginia

Tom Robinson (Keller Williams Realty - REO and Short Sale Specialists ) — Mon, 28 Jun 2010 11:11:47 -0400

Senator Robert Byrd passed away last night at age 92. No matter what you may have thought about him personally, he was an icon in the U.S. Senate and he fought for the people of West Virginia. Senator Byrd was know for moving federal jobs to West Virginia to help the state with its high unemployment and reputation as one of the poorest states in the country. An example is the FBI fingerprint office which was moved from Washington, D.C. to West Virginia several years ago. Senator Byrd will be missed in the Senate and by the people of West Virginia. Here is a link to the article from marketwatch.com.