FIRST THINGS FIRST!

IF YOU HAVEN'T ALREADY...GO VOTE!

I know I've missed Halloween, but if you're still in the mood for something scary, this article definitely fits the bill.

If you don't have time for the full article basically it says we're approaching a record 20% of all homeowners underwater on their mortgages nationally.

Headed into a recession, that's pretty scary. If you lose your job and need to sell your home, what do you do? If you get transferred by your employer and need to sell your home, what do you do?

There is a downward spiral here that someone has to find a way to stop. More foreclosures lead to lower prices which lead to more homeowners under water on their mortgages which leads to more foreclosures when "stuff" happens.

Today's election, whatever the result will not fix everything. But it'll be interesting to see what, if anything, government tries to do on this front in the next few months.

When I want to show a listing to a buyer, I use a lockbox to enter the house. Typically, in this area (Prince William, Fauquier, Culpeper, Rappahannock and Warren counties) that generally means an electronic lockbox that often looks like this:

To access this box and get the house key out, I use an electronic device that's been updated with a special code within the last 24 hours. It's an extra level of protection for the homeowner in case my "ekey" is stolen. Within 24 hours it's essentially worthless unless you know my passwords in order to get it updated.

The other advantage of this lockbox is that I know who has shown my listings. If something is missing, left unlocked, etc. I likely know who to track down to ask about the problem.

There have always been a few holdouts who still used combination (combo) lockboxes:

These boxes require only an alpha or numeric code in order to open them and access the key. If I know the combination I could, theoretically, give that information to someone else and that's all they'd need to access the keys to your home. It's a less secure method of access. The advantage in some agents' eyes is that if someone from outside our area wants to show the house, there's no problem if they don't use the same lockbox system used in this area.

With the large number of foreclosures in our area, we're seeing a big increase in the use of these combination lockboxes. Most banks will mandate that a combo box be used on their listings. I've had trouble coming up with a good reason for this. The only thing I can think of is that they want bank personnel to be able to access the property if necessary, without a real estate agent present.

I was troubled this week to learn that a local agent had mentioned that if he's unable to show a home when his buyer clients want to see it and he can't find any other agent to cover for him, he'll simply give his clients the combination and let them go in the house on their own.

Hmmmmm! The number of reasons this is a bad idea is very long. The liability to the agent should anything go wrong, is huge. It could be that his clients are good people with the best of intentions but they have trouble getting the keys back into the lockbox. It happens all the time. It is, of course, highly unprofessional and, I'd suggest, unethical. The listing agent should definitely be making a phone call to the agent's broker at the very least, to protest this behavior.

By the way, when the agent was confronted with what a bad idea this was the response was "Everybody does it." I never got that one by my Mom. And, I'm not buying it now!

Three local jurisdictions made moves yesterday to limit growth as a way of controlling the increasingly out of control traffic in our area. Or, in the case of Loudon County and Prince William County in Virginia, they hoped to send a message to the Commonwealth that the time has come for action on the issues of traffic, infrastructure and mass transit.

Loudon County and Prince William County are two of the fastest growing counties in the nation. You'd be hard pressed to find a local who feels good about that.  From the increase in gridlock to the higher taxes to pay for infrastructure, local residents are yelling "enough already"!

The question isn't whether a problem exists. It clearly does. The real question is whether their efforts to slow that growth by delaying future housing development is going to fix it. By itself, these moves won't do much of anything. Passing these pieces of legislation won't take a single car off the road tomorrow or next month or even next year. It may slow down how much additional traffic is added in future years. But with infrastructure already years behind current needs, that's small comfort.

The only way these measures are effective is if they produce action in Richmond to remedy this situation. Odds of that aren't great, despite clear signs in the most recent elections that in Northern Virginia this is a pressing voter issue. But Virginia's delegates don't always agree on either the problem or the solution. Compromise will be needed by all parties and it's yet to be seen whether either political party has the sense to put aside partisan bickering and get something accomplished.

What do you think? Will these latest measures to slow or limit growth make any difference? What are the effects likely to be, intended or otherwise? I look forward to your input!

I wanted to devote at least one entry to that subject that no client ever asks me about, selling your house on your own.  This is commonly known as For Sale By Owner (FSBO) in the industry. And the reason no one ever asks me about this is because they believe they know my answer!

But the truth is always more complicated than is comfortable. It's heresy to say this in the real estate world, but I believe there are occasions where it can be perfectly sensible to sell your own home without the involvement of a licensed agent.  Furthermore, before I ever became a REALTOR or even thought about it, my husband and I sold our first home on our own. We had a ratified contract in less than 48 hours for more than asking price and, in fact, had a bidding war. So, I know it can be done!

Let me also say, that, generally, it's not for everyone. Most people who decide to sell their own homes do so without little or no knowledge or preparation. That's probably why statistics say that on average, FSBOs sell for 16% less than homes sold by a licensed agent.

One of the reasons our experience was good is because I chronically over-prepare! I bought just about every book there was about selling your own home and then did just about everything they recommended! We were also in a very hot sellers market in a very desirable neighborhood where there was no other inventory currently for sale. And we knew this going in because we did our homework. The odds were in our favor! Obviously, that's not always the case!

So, here are some questions to ask yourself if you're contemplating doing this on your own:

1. Are you willing to invest the time to research current market conditions so you can set the price properly?

2. Are you willing to educate yourself about the process and follow the advice of the experts?

3. Do you have a good real estate attorney to assist you with the settlement and perhaps help you review the contract?

4. Are you able to make your home available to potential buyers seven days a week, at least 10 hours/day?

5. Are you (and your spouse!) able to conduct negotiations in a calm, business-like manner and set aside your emotional attachment to your home?

6. Are you able to wait longer for your home to sell than one listed by a real estate agent?

7. Are you comfortable with a higher degree of legal risk?

8. Is the current market one where you will only need minimal market exposure in order to sell?

If all of the above are answered in the affirmative, it may be worth it to try the FSBO route! But don't tell any other agents I said that!!!