This regularly-scheduled sponsored Q&A  column is written by Will Wiard, Arlington-based real estate broker, voted one of Washington’s Best Realtors of 2015 by Washingtonian. Please submit your questions via email.

Q: I’m thinking about buying a condo and hear that the condo association for the building should be providing me with information in a Resale Packet or Certificate. What’s included in this packet? Is there anything I should be on the lookout for as I’m reviewing it?

A: When purchasing a condo in Virginia, a condo association for the building, if intact, is required to provide you with information about the building under the Virginia Condominium Act. If a condo association exists, the Seller of the unit must seek out and provide you with a Resale Certificate for that unit and any other documentation they have specific to the unit, and building, prior to settlement.

What is the Resale Certificate? The Resale Certificate includes important documentation about the property, including the homeowner association’s description of rules and regulations, financial standing and planned assessments, as well as condo board meeting minutes and articles of incorporation. This is not just “routine paperwork” and should be carefully reviewed by the purchaser.

The Virginia Condominium Act gives a purchaser three days from receiving the Resale Certificate or being notified that the certificate is not available to cancel the contract at any time within the three days of notice for any reason and without penalty.

Here are the top things to look for when reviewing the Resale Certificate:

Pending Special Assessments: Be on the lookout for any special assessments, or charges for special projects planned in the building, that are pending or have been approved. These should be listed in the Resale Certificate. If a special assessment is listed, it could be the purchaser’s responsibly to cover the cost of this assessment after closing. Some special assessments can exceed $10,000 per unit, or more.

Are there restrictions (on pets, grills, etc.)? The most common situation for a purchaser to void a contract is because of a restriction in the building. Many buildings have restrictions on pets. If the building allows pets, there may be strict policies on the weight of the pet, often intended to keep large animals out of the building.

Is the condo association in good financial standing? You can find out by reviewing the amount of funds in the association’s reserves. If the association is in the red or has low reserves it could mean there’s a problem. It’s also a good idea to review the minutes from association meetings to identify any pending issues that could affect you financially upon purchasing the unit.

Thank you for this week’s question. Please keep them coming to [email protected]. This is also a great place to reach me for anyone looking to buy or sell a home in the Arlington area.

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

This regularly-scheduled sponsored Q&A  column is written by Will Wiard, Arlington-based real estate broker, voted one of Washington’s Best Realtors of 2015 by Washingtonian. Please submit your questions via email.

Q: Is there a difference between a REALTOR® and a real estate agent?

A: Good question. Many people use the terms interchangeably, but there is a difference. While, both a real estate agent and a Realtor® are licensed, a real estate agent is not held to the same level of ethics and standard of practice as a Realtor®. This is primarily because to be called a Realtor®, a real estate professional must be a member of the National Association of REALTORS® (NAR) and agree to uphold the Code of Ethics and Standards of Practice.

Of course, both agents and Realtors® are required to operate within the law. However, the NAR Code takes things a step further, for example, by requiring a Realtor® “to protect and promote the interests of their client” and “treat all parties honestly,” among many other articles that real estate professionals are not necessarily bound to under the law. You can find more detail in this great resource by NAR.

How does this apply to buyers and sellers? Well, it means that there isn’t necessarily anything binding a non-Realtor® to offer you the same level of representation. Additionally, the NAR and a state-based chapter strictly enforce the Code of Ethics and Standards of Practice.

In Virginia, in most cases a Realtor® is a member of not only the NAR, but also the Virginia Association of Realtors® and a local association of Realtors®, for example the Northern Virginia Association of Realtors®. With all these checks and balances created by NAR over 100 years for Realtors®, it’s probably a good idea to look for “Realtor®” when you’re searching for representation. And, while you’re at it, you might also want to throw in a question about the Code to test their knowledge, such as:

Q: What does the NAR Code of Ethics and Standards of Practice say about representing both a buyer and a seller in a transaction?

A (for your back pocket): Realtors® shall not accept compensation from more than one party without disclosing to all parties and securing the informed consent of the Realtor®’s client(s).

I’m hoping some readers can share any additional advice they have in comments.

Thank you for this week’s question. Please keep them coming to [email protected]. This is also a great place to reach me for anyone looking to buy or sell a home in the Arlington area.

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

This regularly-scheduled sponsored Q&A  column is written by Will Wiard, Arlington-based real estate broker, voted one of Washington’s Best Realtors of 2015 by Washingtonian. Please submit your questions via email.

Q: I see a lot of houses in Arlington County with room additions. I’m trying to decide whether it’s better to move to a larger house or renovate/add to my existing home. We like our neighborhood and would prefer to stay; however, I don’t know how to determine whether it’s cost effective to renovate. From my understanding of the process, an appraiser won’t give an estimated value until the architectural drawings are complete. But, I’m trying to avoid a situation where I pay for architectural drawings for a job that turns out to be impractical (say only 50 percent of reno costs added to value).

A: This is a great question, and it’s not only common in your circumstance, but for buyers, as well. It’s not always necessary to go through the full process to pay for architecture drawings to reach a final property valuation. There are some other areas to explore that might help you reach a decision before making that investment.

Budget: When contemplating renovating your home or selling for an upgrade, your budget comes first. It’s a good idea to look at other recently updated homes in the area and reach out to the builder or contractor to explore the costs. If any of these homes are on the market, keep an eye out for an open house to get an idea of the finishes and style. If you like the updates and the price, it could make it easier to decide if an addition is right for you. Before taking the next step, make sure to talk to your lender about the different loans available. A home equity loan may be an option and could add a financial boost when making major home improvements.

Timeframe: Before you move forward with the addition its important to consider how long the work will take. It’s also a good idea to plan the addition around a time of year that works well for you and the builder. At minimum, you will want to pick a time of year when weather delays are rare. Keep in mind that projects can be complete within the planned timeframe; however, delays do frequently occur. You’ll want to plan for them in advance. Work in at least 1-2 months for potential unknowns, such as delayed shipments. Further, county-permitting approvals for the project can take some time as well.

Scale of work: What is the level of work you are planning? Will you be living in the home during the updates? If you plan to live in the home, there could be further delays based on having to complete the updates in stages. Depending on the age of the home, there may also be special, time-consuming and expensive precautions taken to ensure your safety. You’ll want to weigh the pros and cons, including the costs (or costs savings), of temporarily re-locating during the renovation.

Resale: Consider whether the renovation or addition is going to give you a return on investment when you go to sell. The level of finishes and the market trends will be a deciding element for the end value. In some cases, depending on the lot size and the location, at the end of the day, it might make sense to sell and move to a bigger home.

I’m hoping some readers can share any additional advice they have in comments.

Thank you for this week’s question. Please keep them coming to [email protected]. This is also a great place to reach me for anyone looking to buy or sell a home in the Arlington area.

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

This regularly-scheduled sponsored Q&A  column is written by Will Wiard, Arlington-based real estate broker, voted one of Washington’s Best Realtors of 2015 by Washingtonian. Please submit your questions via email.

Q: My wife and I recently discovered a home that we love, but are concerned about the state of disrepair because it is being sold as-is. What do you suggest for ball-parking repairs before finalizing our offer?

A: Regardless of the type of home you are buying–new construction, remodeled or as-is–there are typically minor repairs, at minimum, that will be flagged by a home inspector. When buying an “as-is” home, regardless of the condition, the buyer is not entitled to a home inspection or to any fixes or credits from the seller.

There are several reasons a seller would list the home in this category, but the most common is the need for repairs to the property that can be costly.

If you’re interested in buying a home as-is, or even a fixer-upper, it’s a good idea to get an estimate for the costs of the repairs before making an offer. Here’s what I recommend.

1. Find a contractor. Before you start your home search, look into hiring a contractor or homebuilder. Talking to three or four professionals will help you get a better understanding of the average costs associated with certain projects before you begin the house hunt.
2. Bring him/her to a showing. Once you’ve found a home you like, ask a contractor to join you at a showing. If they can’t be there, take photos and notes so you can provide the contractor or builder with additional details on needed updates.
3. Check for a sound structure. The roof and the foundation are two primary structural elements to pay close attention to, as fixing them can be costly. However, identifying if both are in sound condition can be difficult if the property is being sold as is. Keep an eye out for cracks in the foundation both inside and outside of the home, and look and smell for any signs of water leaking into the home. Water damage on the ceiling, damp walls and floors and the smell of mold could be a bad sign.
4. Budget for unknown repairs. As anyone who has made home renovations can attest, additional repairs are often uncovered once the updates begin. Make sure to add some room in your budget for these unknowns.
5. Select your finishes. Are you trying to save on costs by selecting generic or sale finishes? Or are you looking for the perfect aesthetic regardless of the price? Swing by your local hardware store to get a better idea of the tile, flooring, wall covering and other finishes available. Your price range for these updates could vary greatly based on what you select.

I’m hoping some readers can share any additional advice they have in comments section below.

Thank you for this week’s question. Please keep them coming to [email protected]. This is also a great place to reach me for anyone looking to buy or sell a home in the Arlington area.

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

This regularly-scheduled sponsored Q&A  column is written by Will Wiard, Arlington-based real estate broker, voted one of Washington’s Best Realtors of 2015 by Washingtonian. Please submit your questions via email.

Q: I’ve heard of people buying and selling parking spots in the Arlington and D.C. areas. Is this common? Don’t most homes come with parking?

A: Yes, it is pretty common in the area, but it’s more likely to see a spot on the market in D.C. than in Virginia. Most people acquire a parking space when it’s deeded to them as part of a condo purchase. I’ve often heard of homeowners selling the parking space if the property originally came with more than one spot. Currently, there are about 10 parking spaces listed on the regional multiple listing service, called MRIS, starting at $10,000 going up to $100,000. Whether buying or selling, a licensed real estate professional can assist you throughout the process.

Many condos do come with parking, but it could be owned, assigned, rented or first-come, first-serve. When buying a condo that includes parking, it’s important to find out the details before closing.

If the space is deeded (you own it) it’s a good idea to check the tax records and talk with building management to confirm the space location and existence, and ensure it was not sold by a previous owner. I know of a few cases where a prior owner sold a space and did not update the tax records. When the owner sold the unit, the purchaser was misled to believe it came with a parking space, but found out at closing that the space was previously sold. If the space is deeded, the MRIS listing should include all of the information.

The condo could also include a parking space that is assigned to you, but in this case, it’s most likely owned by the building and part of the common elements. In this case, you would not have the option to sell the space; however, you may have the option to buy a space from the building, which would be a separate transaction from your home purchase.

Lastly, if you are purchasing a condo and there is no space assigned to your unit, it’s most likely you will have open or permit parking. In some buildings, the association or a developer owns the parking area, and the parking is first-come, first-serve or rented for a fee.

If you’re having trouble getting to the bottom of the parking situation, talking to your title company and agent, they can help you better understand whether parking is included with your purchase, and if you will have ownership over the space.

I’m hoping some readers can share any additional advice they have in comments.

Thank you for this week’s question. Please keep them coming to [email protected]. This is also a great place to reach me for anyone looking to buy or sell a home in the Arlington area.

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

This regularly-scheduled sponsored Q&A  column is written by Will Wiard, Arlington-based real estate broker, voted one of Washington’s Best Realtors of 2015 by Washingtonian. Please submit your questions via email.

Q: I’ve heard of a few real estate wiring scams going around. What do you know about them? Any tips to avoid them?

A: It’s true. There are several wiring scams out there that could affect a real estate transaction, and all involved in the transaction need to be aware. The most common issue recently seems to be the hacking of email accounts to change the wiring instructions and intercept the release of funds. One way this can happen is by clicking a link sent via email giving a hacker access. It’s important to verify the sender before clicking or downloading anything sent to you.

Whether you are a buyer or a seller, when closing on a home in Virginia you have the option to have the funds mailed as a check instead of a wire. If you choose a wire, be wary of any emails that request a change in the wiring instructions and make sure the title company has the correct account information before they release the funds.

Here are a few examples of recent scams:

Hacking of an agent’s account

A scam that is all too common is when someone hacks into an agent’s email account and sends emails pretending to be the agent. Title companies have seen hackers send emails to clients instructing the client to wire funds for a transaction to a specific account, purporting to be either the agent’s account or settlement company account. For agents, it’s best to warn clients not to alter any wiring instructions without confirming an email with a follow-up telephone call.

Fake email from the seller

Another variation on this is a hacker spoofing a seller’s email address and sending an email requesting that the sale proceeds be wired to a different account than that requested at settlement. Having investigated the situation at two offices recently, a local title company found that the hackers gained access through the seller’s email accounts and obtained information about the sale by reading the seller’s emails.

Many title companies operate under a policy that prohibits the distribution of funds anywhere other than where they were instructed at settlement by a signed proceeds authorization. If the seller wants to change the account, they are required to have a new signed and notarized proceeds authorization for the seller’s protection.

The key takeaway

Regardless of the scam, it’s always best to confirm any changes in wiring instructions received via email with a phone call or in person. Once a wire goes out and the funds are transferred it can be very difficult, if not impossible, to retrieve the funds.

I’m hoping some readers can share any additional advice they have in comments below.

Thank you for this week’s question. Please keep them coming to [email protected]. This is also a great place to reach me for anyone looking to buy or sell a home in the Arlington area.

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

This regularly-scheduled sponsored Q&A  column is written by Will Wiard, Arlington-based real estate broker, voted one of Washington’s Best Realtors of 2015 by Washingtonian. Please submit your questions via email.

Q: I’m planning to move overseas within the next few months and am interested in renting my condo for the first time. Do you have any tips to make the self-management of the property go more smoothly?

A: If you’re renting out your home for the first time and are not using a property management company or agent, there are some steps you can take to help prepare before you sign onto a lease agreement. The goal is to minimize property maintenance and rental issues during the term of the lease, and allow the tenant quiet enjoyment of the property.

Ensure solid leasing terms up front. There are a lot of places online that claim to offer fully enforceable lease agreements, but they can be risky. Depending on the state and jurisdiction, there are special modifications that need to be included to ensure you are protected. If you want to do rent your property on your own, without involving a management company or realtor, I suggest you consult with an attorney before finalizing the lease agreement.

Consider preventive maintenance. Before you rent, conduct a self-inspection of the systems and appliances in your home and consider replacing those that are in (or nearing) disrepair. For example, if your hot water heater on its last leg it may be time for an update. Making these updates can limit inconveniences for both your tenant and yourself if they were to fail while you are away. This can also help avoid any further damage that may come as a result (i.e., water damage). Keep in mind these updates can also be a tax write off (talk to your accountant!).

Discuss ongoing maintenance needs during a pre-rental walkthrough. Holding this in-person walkthrough with your tenant can help them understand how to conduct routine maintenance, such as replacing filters or the appropriate light bulbs, and identifying and operating shutoff values for plumbing, electric and appliances.

This may also be a good time to explore the condition of the property with the tenant so they can identify any imperfections in advance of signing the lease. Providing this opportunity can help avoid any issues that may fall beyond normal wear and tear once the tenant vacates.

Establish a system to receive regular payments. Whether you’re moving out of the area or staying local an automated monthly payment system can help protect against any hiccups with late payments from your renter. I recommend asking your tenant to enroll in direct deposit or e-checks that are automatically sent from the bank each month. This helps remove the anxiety associated with receiving the mailed payment, and the possibility of it getting lost in transit – especially if your are moving overseas.

Plan for emergency repairs. If you’re moving out of the area, make sure to have a system in place to ensure your property and your tenant are taken care of in the event of an emergency. Outside of property management companies, there are companies that offer 24-hour emergency services should your tenant have a last-minute issue and you’re not available.

While many homeowners in the area rent on their own, renting and property management are not for everyone. Should you find this situation daunting, property management is always an option. Many local brokerages offer this service, and I am also happy to make a referral for anyone interested.

I’m hoping some readers can share any additional advice they have in comments.

Thank you for this week’s question. Please keep them coming to [email protected]. This is also a great place to reach me for anyone looking to buy or sell a home in the Arlington area.

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

This regularly-scheduled sponsored Q&A  column is written by Will Wiard, Arlington-based real estate broker, voted one of Washington’s Best Realtors of 2015 by Washingtonian. Please submit your questions via email.

Q: We are in the process of preparing our home for sale and have received mixed advice from our friends that have sold houses in the last few years. Is there anything we can do to sell our house more quickly? Some say to consider staging, but it’s expensive. Any advice would be great.

A: Preparing a home for sale can be quite a process. But, there are a few projects you can undertake early on to move the property faster. Here are a few ideas:

Stage the home to make living easy to visualize: It’s true, staging a home can help potential buyers visualize room arrangements and give ideas for living in the home, but it can be expensive. Hiring a staging consultant is a possible alterative to a fully staged home. Typically, this type of professional charges by the hour and uses the furniture currently in your home, which can help you save money in the long run.

Tuck away the items that make it yours: When selling a home, removing your personal photos and other items that make it yours allows potential buyers to better visualize the home as their own.

Pay attention to the little things: Sometimes it’s the smallest things that turn away potential buyers. Go through your house with the eye of a buyer. Is a door handle loose or an outlet cover missing? These are among many simple projects that are worth the fix. Buyers may see these minor blemishes as a hassle or a potential symptom of a larger problem.

Highlight your home’s unique qualities: Don’t be afraid to stand out in the crowd. If your home features a den, roof deck, wine cellar, or any other area that other nearby homes don’t – use it to your advantage. Draw special attention to that room by adding or removing furniture to make it memorable during a showing.

Weigh the pros and cons of aesthetic updates: Bright colored paint? Stained carpet? Make a list of some of the less pleasing aesthetics in your home and talk with your agent about your options. Rather than making the updates before sale, you may want to offer a credit to the buyer for such repairs so they can select exactly what they’re looking for. Want to take it a step further? Provide some paint or carpet samples in the home for the potential buyer to pick from.

Unclutter your clutter: Most lived in homes have at least a small amount of clutter. Remove items that take up too much space or take away from a room. If your budget allows, look into a temporary storage unit to hold these extra pieces and personal items.

I’m hoping readers can share any additional advice in the comment section below.

Thank you for this week’s question. Please keep them coming to [email protected]. This is also a great place to reach me for anyone looking to buy or sell a home in the Arlington area.

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

This regularly-scheduled sponsored Q&A  column is written by Will Wiard, Arlington-based real estate broker, voted one of Washington’s Best Realtors of 2015 by Washingtonian. Please submit your questions via email.

Q: I’m in the process of buying a home and have submitted a few offers that have been out bid. Is there anything I can do to improve my chances?

A: Buying a home in the Arlington can be highly competitive, particularly is there is limited inventory in your price range. You are not alone if you are having trouble navigating the bidding process. It can be tricky, but there are ways to improve your chances. Here are a few tips:

If possible, try to match the seller’s timeframe to close. While your offer may be competitive, your bid may not be selected because your timeframe to close does not match the sellers. If you have some flexibility on a closing date, ask your agent to speak with the listing agent to determine the seller’s motivations and if a shorter time frame would help improve your chances of having your bid selected.

Submit an offer at a competitive price. If you submit an offer lower than the listing price in an area where the comparable home sales support the listing price your chances of being out bid are higher. However, if you match the listing price and are still out bid your only option is often to offer more.

When buyers find themselves in this situation, they may want to consider offering more than the listing price, but ensure the offer is contingent on appraisal so in the end they don’t pay more than market value. This strategy could help you win in a bidding war and keep you from paying more than the house is worth.

Take a close look at your loan and lender. In some cases the amount of your down payment or loan terms can give you a competitive edge. Some sellers like to see a buyer with a higher down payment or a lender they are familiar with. When it comes down to these nuances, the seller is often looking for the deal that appears more likely to close within the ideal timeframe and less likely to fall through due to lender not meeting the closing date or approving the loan.

Be willing to discuss the removal of contract addendums. The selling agent may ask to waive some or all of the contract contingencies, which may occur when there are multiple offers on the home. Make sure to discuss each contingency with your agent and your options before removing them from the contract.

For example, the seller may ask to have the home inspection addendum removed. Instead of removing this addendum, you may want to replace it with a home inspection for informational purposes or a shorter home inspection timeframe. Removing the home inspection might not be a good idea, however – make sure to talk through the pros and cons with your agent.

Stand out with a personalized cover letter. If you’re competing with other buyers, including a cover letter personalizes the offer and illustrates for the seller why you want purchase the property. It can make all the difference for some buyers.

I’m hoping readers can share any additional advice in the comment section below.

Thank you for this week’s question. Please keep them coming to [email protected]. This is also a great place to reach me if you’re looking to buy or sell a home in the Arlington area.

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

 

This regularly-scheduled sponsored Q&A column is written by Will Wiard, an Arlington-based real estate broker. Please submit your questions via email.

Q. Do you have any tips on working with a real estate agent in a longer-term house hunt? I don’t need to buy immediately, and want to take the time to find the perfect place. I would like to find an agent who can recommend and show me properties that meet my criteria as they come on the market, as well as offer advice not biased by his or her personal interests.

A: It’s never too early to consult with a Realtor. And as with any major investment, you’ll want to be sure you don’t rush through this process and take the time to select the property that best meets your criteria. Here are a few things to keep in mind:

1. Discuss your goals and expectations upfront.

It’s important to be honest and disclose your goals, expectations and timeline with the agent from the beginning. Whether you are in a rental lease for the next six months, still saving for a down payment or generally just not in a hurry to buy – these are all key things to tell your agent to ensure they properly represent your interests throughout the process.

2. Find a local realtor.

In any house hunt you will want to find a realtor that is an expert in the location you are looking to buy. This will make it much easier to stay apprised of the homes coming on the market and effectively navigate the negotiation process when the time comes to make an offer. Selecting someone nearby also makes it more convenient to arrange meetings and showing times.

3. Set communications preferences.

Are you more easily reached by phone, email or text message? How frequently do you prefer that your agent contact you – weekly, bi-weekly or monthly? Discussing communications preferences with your agent will help him or her better meet your expectations.

4. Get pre-approved for a loan.

If you are among the majority homebuyers that plan to secure a loan to purchase the home be sure to secure a pre-approval letter from a lender you trust who is familiar with the market before seeing property. Even if you don’t plan to buy something for the next few months, or even year, getting pre-approved can help you avoid any financing challenges down the road.

Don’t have a lender? No problem. An experienced agent can recommend someone they have worked with and trust. Keep in mind that pre-approval does not bind you into working with the financial institution that gives you loan pre-approval, but will help you and your agent understand the price range you can comfortably afford. Most agents also require pre-approval before showing property. Even if you’re not ready to see property, talking with a lender to explore financing options can give you a better understanding of the loan programs that may be the best fit for you.

5. Select your home criteria.

Are you looking for a condo, a town house or freestanding house? How many rooms and bathrooms do you need? Is there a city, or even neighborhood, you prefer? These, and many other criteria, are important for narrowing your housing search. Even if you aren’t yet ready to start seeing property, your agent can set you up with an electronic listing alert where you can peruse for-sale homes and get a better idea of your options and related pricing.

As you continue your house hunt, your criteria may change, as it often does for buyers. It’s important to keep your agent updated on all of your criteria and let him or her know if something changes, so he or she can refine your search.

6. Protect your interests by entering into an agreement.

Once you’ve found an agent who you feel comfortable working with for your home search you should enter into a signed agreement with that agent and company. Created in July 2012, Virginia law requires a buyer and an agent who have agreed to work together in an agency relationship to define the terms of the agreement in writing. This helps protect the interests of both parties, and helps to ensure that the agent is representing your interests first to the best of his or her ability.

In many cases this will be an exclusive right to represent buyer’s agreement, but the terms of the agreement are often negotiable. Your agent should work with you to finalize this agreement before showing you property.

I’m hoping readers can share any additional advice in the comment section below.

Thank you for this week’s question. Please keep them coming to [email protected]. This is also a great place to reach me for anyone looking to buy or sell a home in the Arlington area.

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.