Alternative Energy & Your Home

I had the privilege last week of attending an alternative energy expo in Warrenton.  I'm very much hoping it becomes an annual event!  I thought it was wildly successful and juding by the comments I heard from other attendees, they thought so too.  There were people here from as far away as Baltimore!

There were so many wonderful ideas on alternative energy.  Not all of them were specifically related to your home.  But those are the ones I'll focus on here.

They had everything from energy efficient appliances for the home, all the way to how to design a home that's entirely energy self-sufficient.  One of the items we're considering for our own home is the tankless water heater.  Rather than having a big reservoir of constantly heated water sitting in your home, the water is heated only when needed.  Since in my mind one of the biggest downsides of water heaters is their tendency to spew all that water onto the floor when they bite the dust, I think this is a splendid idea!

Appleton Campbell is a local plumbing company that carries this water heater.  If you're interested in more information you can call them at 540-347-1004.

There was a display by a company called TerraBuilt where you use subsoil or a combination of subsoil and cement to make bricks.  It produces them at a rate of 4-5/minute!  This material is both energy efficient and cost effective! If you'd like more information check out their web site at http://www.terrabuilt.com

There were also companies that acted as consultants to help you to either build a new home that's energy efficient, or advise you in how to retrofit your current home to take advantage of newer technologies. If you're starting from scratch I'd recommend talking to Oesch Environmental Designs.  You can see who they are and what they do at http://www.fredoesch.com

Or, for consulting on how to make your current home more energy efficient contact Commonwealth Sustainability Works at http://www.commonwealthsustainability.com

There were tons of other ideas there and if you have a specific need in this area don't hesitate to contact me and I'll do my best to point you in the right direction.  I'll be adding some additional information to my web site soon on this topic so stay tuned!

Agent Education

It's an exceptionally busy time in my business right now.  In fact, I told my better half this week that I need to remind myself to breathe I'm so busy!  And so, in the midst of this busyness, on Wednesday of this week, I headed into DC for the National Association of REALTORS mid-year convention. Someone who knows how busy I am right now questioned my sanity in taking out an entire day in my schedule to do this.  Thinking about my response to him, it seemed worth an entry here.

First of all, I had made a commitment to work at the Habitat for Humanity booth at the Trade show for a couple of hours that day.  A commitment is a commitment is a commitment!  I will try to move heaven and earth to keep a commitment I make.

But I also believe that I am a better agent for the time I spend at such events. No, I KNOW I'm a better agent because of it!  The current state requirement for continuing education here in Virginia are that I complete 16 hours of continuing education during each two year period.  That's a ludicrously tiny amount of additional education and training in a profession that's changing almost daily!  And so, I'm constantly pushing myself to learn more,  know more, take more classes and get more information.  That information is not only a competitive advantage for me in my business.  It also gives my clients an edge as I help them buy and sell homes.

I had the pleasure of taking a two day training course not long ago on the implementation of systems in a real estate business.  While that topic sounds likely to be beneficial in making my business run more efficiently you wouldn't necessarily think there'd be any immediate benefit to my clients. However, within 24 hours of returning from this course I had two occasions to use insights gained from the class to better negotiate on behalf of sellers I am representing.  That course will directly translate into more money in my seller's pockets and less aggravation throughout the home sale process.

I'd like to see the state requirements for continuing education increased dramatically.  But I'd also like to see the other members of my profession step up and challenge themselves to learn more.  If this profession wants more respect it's up to each of us to work to earn it!

New Warrenton Restaurant

There's a great new restaurant in Warrenton, Virginia and I had the pleasure of eating there this week. 

The restaurant is McDonough's Irish Pub and Restaurant. They've just opened on Broadview Avenue in Warrenton.  The outside of this restaurant brought back great memories of our trips to Ireland before we'd even stepped foot in the door!  They've done an amazing job of remodeling the outside and it's charming!

You walk in and the doorway to the non-smoking pub is on your left. That's right, there's both a smoking and a non-smoking pub!  What a great idea!  As a non-smoker I love this concept! This is the first time I've run across this in a bar or pub.  I wonder if it will catch on?

We were warmly greeted and when we asked whether we were attired properly for the dining room assured heartily that there was no such issue.  We hadn't dressed up much, as our experience with pubs hadn't required that.   But when we got there we started to wonder and thought we ought to inquire whether they'd prefer to stick us in the pub!  They escorted us to the dining room and they were right, our clothes were not in the least out of place.

The menu was wonderful.  There was almost nothing on the menu that didn't sound good to me. Mike is a little pickier but still had lots of choices that appeal. We were both drawn to the traditional Irish dishes on the menu.  I've always had a fondness for bangers and mash and so that's what I decided to try on my first visit. Mike, in the end, decided he was in a cheeseburger mood.

Our food was terrific!  Mike was very excited to see that my meal came with asparagus.  I'm not a big asparagus fan but Mike loves the stuff.  And this asparagus was apparently delicious!  The bangers and mash were wonderful as well.  And Mike's burger was tasty and big enough to have probably fed a couple of people!

Although the desserts looked good, there was definitely no room for them.  However, we hope to go back and try them another time.

Beginning this Sunday, McDonough's will now be open for lunch as well.  And, although they're not doing any catering right now they assured me they might consider that down the road.

I'd highly recommend you stop by and check out this great new restaurant!

Underground Oil Tanks

I took a class this week in underground storage tanks (UST).  It's a pretty occurrence in this area for there to be an underground oil tank.  And while I was aware that the state of Virginia has a plan to assist homeowners who have a leaking tank, I did not know the details. This was something I knew I needed to remedy and was glad to have the opportunity.

The class was taught by John Pollard from Pollard Environmental.  He's an excellent instructor and clearly knew his subject matter inside and out.  If you have a need for in-depth information on this subject I recommend his web site.

The law is interesting in that there is no requirement for any homeowner to ever test their tank for leaks. Still, it will be in the best interest of many homeowners to go ahead and do this now.  The state has established a fund that will pay most of the expense for most homeowners.  But the fund has a finite amount of money and no guarantees that when it's gone there will be any more.

This lack of a requirement for testing means that if you're purchasing a home with an underground oil tank your real estate agent would be well-advised to write in language that requires a test of the tank for leakage. Whoever owns the property at the time the leak is discovered is considered the Responsible Party by the state and is ultimately responsible for any clean up necessary and for ensuring the tank never leaks again.

Once testing has determined there is a leak, the Virginia Department of Environmental Quality steps in and determines the extent of the leak and how much clean up, if any, is required.  At a minimum, the tank must be emptied and sealed so that it will never again be an issue.  Depending on how much oil has leaked and where the tank is located, the state may require that surrounding soils be removed.

There is a deductible and the homeowner should expect to ultimately pay $1,000 to $1,200 out of their own pocket.  But the rest of the costs will likely be covered by the state fund.

If this is a subject that interests you or if you've got concerns in this area, feel free to contact me for more information.  Or, of course, for the real experts contact Pollard Environmental!

Never Give Up

I've been working on a deal for the past two weeks that's been due to close any day!  It's been a tremendously frustrating experience for all of the parties involved as one road block after another has appeared.  I'm representing the seller in this transaction and I know that she's definitely wishing this would be over already!

But the truly amazing thing is that this transaction isn't dead!  By all rights it should be.  Given all the problems that have appeared late in the process, most deals would not have survived!  I believe there are a couple of reasons that this one continues to have life.

First of all, both the buyer and the seller want this deal to happen.  The buyer really wants to buy this particular house and doesn't want to begin the whole house hunting process again.  The seller would really like to sell the house and move on rather than putting it back on the market.  Both parties, of course, will act in their own self-interest and if the deal gets to a point where they believe they have no recourse, they will certainly walk away.  But meanwhile, they are both making good faith efforts to keep things moving forward, even if it's occasionally at a snail's pace!

It helps in this instance that the fault here does not lie with either the buyer or the seller, but with the lender and with things outside anyone's control. If either party had acted in such a way that the other questioned their good faith or seriousness about this deal, surely we would not still be working at making this happen.

The other factor that I believe is making a difference here is that there are two real estate agents committed to working on behalf of their clients best interests without making this adversarial.  Plenty of deals are killed by agents who take zealously representing their clients' interests to mean that they should be belligerent. If the clients' best interest is really in getting or selling that particular home they can do a lot more harm than good!

It's nice to be working on a transaction where so many are doing everything they can to get to a successful outcome!  I hope we're all celebrating very soon!

Local Market Statistics

The April numbers are now available.  I thought most of you would find them interesting.  These are the counties I do the most business in.  Additional information is available on other Virginia counties.  Contact me if you're interested.

County          # of Active Listings       April Closed Sales

Culpeper                     556                              56

Fauquier                     641                               67

Prince William           4397                              520

Rappahannock             52                                  2

Warren                        457                                39

Given current inventory levels and the rate of sales, most counties are looking at close to a year to sell all current inventory with no more being added.  Since it's a certainty that inventory will continue to be added, we're all hoping the buyers begin showing up in droves!                        

Pricing in a Flat Market

Discussions regarding pricing with prospective sellers are very interesting right now.  The market has clearly undergone significant changes since last year at this time.  Inventory is substantially higher and close rates are substantially lower.  Prices are, at the very least, flat.  Unlike last year at this time, we're seeing lots of price reductions as all of us: buyers, sellers and agents, adjust to the new realities of the market.

Now the tricky part of this is that sellers typically decide they're going to sell their home months ahead of when they actually put that house on the market.  But they're already looking at what things are selling for in the neighborhood.  So a year ago there were people planning on selling this year saying to themselves "Wow!  The neighor's house just sold for $X! The market is appreciating at 25-30% annually. And our house is much nicer than theirs!"  And, so they have a number in their head as to what their house will sell for next year.  And, once that number is in their heads they begin to mentally spend the money they'll take away from closing. Once that happens, it's very, very difficult to get a seller to change that number in his head!

But the buyers out there shopping and watching the market know very well that things have changed!  They're watching those listings daily and watching prices come down.  They're in the mood to be choosy and to negotiate hard.  And, they know time is on their side right now.

And, yet, when confronted with all the data on current market conditions, what recent homes have sold for, how long things have been on the market, many sellers will still want to try for the big number in their heads.  And, believe me, I understand that temptation!  Who doesn't want several thousand extra dollars in their pocket?!

But if you look at the situation as you would if you were car shopping sometimes it's easier to push past this dilemna. If you were in the market for a 2001 Ford Explorer right now and had been watching the ads for a few months and looked online at prices you now have a good idea what they sell for.  Let's say that number is between $10K and $12K depending on condition and exact model.  If you see one that's advertised in the paper for $18K, you don't say to yourself "let's go see what's so special about that one and if it's worth the extra money!"  No, you just laugh at the crazy price and go see the ones that are priced appropriately.

Same thing with your house!  And you never get back those critical first few of weeks when your house is new to the market and everyone should be coming to look.

My advice is to price conservatively.  It's a lot easier to say no to a low offer than it is to negotiate up on an offer you never get!