Want to piss some money away? Why not replace your windows?

I know the title is somewhat inflammatory but it just drives me crazy when I show an older home in the DC Metro region to prospective buyers and the first thing I hear about is the need to replace the old windows. There are so many reasons that this is a bad idea and in my opinion a bad investment. My home was built in 1938 and it has the original double hung sash windows. I love them and they add to the charm and feel of the home. It is unfortunate that most things written about replacement windows are  the product of the same people who have a vested interest in getting you to drop a wad of bills on new windows. They tout the ease of use of new windows and the energy savings but when you look at the costs of new windows vs the benefits of keeping and repairing your old wood windows, then perhaps keeping the old will sound more attractive. Here are some of my reasons.

• No matter how expensive you go, your new windows will not be the same quality as your old windows. It is a fact, new windows cost a lot of money and they will never last as long as good quality older windows. Most replacement windows are vinyl and the quality can vary depending on the price. However vinyl eventually wears out and the average useful life of vinyl windows is about 20 years and you then will need to replace them again. Even high dollar (and good quality) wood replacement windows are not as good as old windows because older windows were made from high quality old growth wood that is not commercially available any more.
• Energy savings with new windows may not be as much as promised. The reason is only a small percentage of your energy losses is through your windows. Most energy loss in a home takes place in poorly insulated attics. Instead of spending thousands of dollars on new windows, you probably can spend less just upgrading your attic insulation and save more money in the end.
• Double pane vinyl windows are not necessarily better insulators that old wood windows. It is most important to understand that wood is a better insulator that plastic. A well maintained wood window with good storm windows may actually provide better insulation.  They now make decorator, low visibility storm  windows to replace the older exterior aluminum ones that do look pretty bad.
• As long as the old window is not totally rotted out, it can be repaired by a competent handy man. Some projects such as sash windows  that have been painted shut (quite common) will require a bit of restoration but broken sash cords, replacement window panes, glazing are all fairly simple jobs that either you or your handyman can do.
• I don't care what you say. Original windows just look better and will always complement the style and architecture of your home over any replacement window you can find. Simply put, these are the windows that the original builder intended your home to have. They reflect the era that your home was built. Street appeal adds value to your home and the wrong replacement windows can cost your value. 

Now there are times when you should replace those windows. Stay tuned for my next post.

Here is a nice simple video about old windows. I like the video because the old gent talking about them obviously knows his stuff. No slick sales pitch here.

I love old homes. If you are a fan and want to see values for older homes in Silver Spring or other areas pay to my web site.

Five cheap Washington DC things you can do in five days. Day one: The National Cathedral

We took my niece and grandniece down to the Washington National Zoo two weeks ago. Although my niece loved the zoo, she told me that the most amazing thing about the zoo is that admission is free. She is from Austin Texas and the nearest zoo in San Antonio costs money to get into. That got me thinking about Washington versus other cities. We really have a unique city in that so many great tourist sites are free to see, or cost very little. Here are a few of my favorites. The first that comes to mind is the National Cathedral.

When I was a kid, they were actually still building the cathedral. My mom used to take us downtown to see the stone work that they were preparing to place on the walls and spires under construction. In addition when you visit we visited  the cathedral there were all sorts mysterious passages and staircases that are closed to the general public. I can't imagine many ten year old kids who would not fantasize about climbing up those narrow stone spiral staircases? Well, it turns out you can. For my birthday a few years back my wife took me on a special guided tour of the cathedral that allows you to see all sorts of magical places.  Best part was that we went on a weekday in the winter (always the best time to go see things) and we were the only ones on the guided tour given by two very elderly and knowledgeable docents. Our tour included plenty of fun nooks and crannies such as a trip onto the roof (made of lead, you know) where we could gaze on unseen gargoyles and panoramic vistas of DC, and a trip to the attic vaults to see some of the "brick and mortar" bones of the cathedral.

Two of the many gargoyles on the cathedral. The creature to the right is from the move "Alien."





There are a number of specialty tours of the National Cathedral that you can take as well, such as a climb up the massive bell tower. Our tour was called "Behind the Scenes" and took about 90 minutes to complete. Fee for the tour was $15 and was well worth it.

Four things you need to do if you looking to buy a home.

If you have been looking for a home or are considering looking for a home in the District and most close-in Maryland communities you need to be prepared for a seller's market. This is especially true in DC, downtown Silver Spring and Bethesda where home inventory has been low for over a year now. We simply have too many buyers chasing too few homes. The result has been a steady increase in values and a lot of multiple contracts. There is no reason not to expect the same situation for the coming year. For home buyers this means difficult times ahead.

Many purchasers are losing out on homes because they are not prepared. They are either not getting into see the home in a timely manner or are not writing the best or winning offers. This can be very frustrating. If you are a buyer here are some suggestions that might help you.

1. Find an experienced Realtor and set up a buyer's consultation.
2. Select a lender and make your loan application now.
3. Find a good mobile real estate search app and download it onto your phone and pad.
4. Commit yourself to the process.

When I hold open houses, I am surprised at the number of potential buyers that are out looking at a home but have no affiliation with a Realtor. It tells me one of two things.  Either some of these prospective clients are not seriously looking or they do not understand agency and the importance of having their own advocate who will look out for their interests. A good buyer's agent will not only be there to advise you about the home and surrounding neighborhood but will be ready to act in your interest when you are ready and the need for speed is urgent. Find a good agent and put him or her to work for you.

You must have your ducks in a row as far as the loan process goes. As a listing agent, whenever there are multiple offers, the first thing I do is look for offers that can be weeded out of the process. This serves to help me and the sellers as well. The first offers to get rejected are those that are not perfect financially. To protect my sellers, I need to know with confidence that your loan will get approved. You the buyer must be working with a reliable local lender (forget about getting a loan over the Internet) and have already made application.  Along with your offer, you need to submit a signed financial information sheet, a solid lender's commitment letter and the name of a contact with the mortgage company that I can actually reach by phone. It is important that your lender and loan officer are available for questions from the listing agent. Sometimes a quick phone discussion about a minor detail will make the difference between acceptance and rejection.

If you have been looking at homes on Trulia and Zillow  now it is time to wean yourself off of these web sites and get a good mobile search app that is linked to the local MLS service. I get frequent complaints from clients about how out of date these large web sites can be. In a competitive market you need an app that works all the time and is completely up to date. We live in a world of instant information. In a hot market the quicker you know the better.  Why not start with Keller Williams new mobile app? Click here to download it. Then ask your agent to set you up with a listing alert that will send you new listings as soon as they are placed in the Multiple Listing Service.

This is not a time to be indecisive. Either you have a need to find a new home or you don't. I have seen so many times when a casual buyer walks into my open house on a Sunday and all of a sudden finds themselves in the home of their dreams. However so frequently this sort of buyer is just not prepared to act quickly and as a result they lose out on a home that the should have had.  Don't waste your time and set yourself up for heartbreak. Take the leap and commit to finding your home. Then give me a call. I will make sure that you will get the home that is the right fit for you.

Meridian Hill Park Comes Full Circle

Until recently not many people were up to spending time in Meridian Hill Park. Located between 15th and 16th streets in the District, this lovely Washington DC landmark fell into decay and became fairly dangerous for the average visitor. Most stayed away as it gained a reputation as a haven for drug traffic. Vandalism and lack of care was an issue as well. I lived in the area all my life and up until last summer had never been in the park. However, I had passed by the park many times and wondered what was inside. From 16th street it sort of looked like a palace or fortress to me. And now that I have seen the park it has quickly become one of my favorite DC haunts.

Helped by the recent changes in the local neighborhood and  the efforts of some committed volunteers the park has undergone a transformation. There has been a lot of restoration work with more  scheduled but the beauty of this early century masterpiece is inescapable. Designed and built between 1912 and 1936 and  representative of the type of classical parks found in urban areas of Europe, the park sits on top of a the meridian fault line and offers some great views of the surrounding area. The focal piece is the Italian Renaissance style cascading fountain which was built to take advantage of the fall line running through Washington that separates the coastal plane from the Piedmont.

There are some very nice and unique statues in the park including my two favorites. The first is a fine statue of Dante and the other of Joan of Arc sitting on a horse. The park also features a  large memorial to James Buchannan, a lesser president who many do not know much about. Many locals also refer to the park as Malcolm X Park. Back in the 1970s there was a popular movement to change it's name to that officially. However since there is already a memorial to a past president, national park policy prevents a name change. Every Sunday for years the park has featured a famous "drum circle"- a popular local event that draws folks of all walks and many talented local drummers. I think the best time to visit the park is in the early morning or take a picnic and go sit by the fountain in the evening. You won't regret the trip.

I stopped in last week while doing some real estate work in the District and took some photos on my pad. Enjoy!

A Case for FHA loans

There seems to be a lot of disdain for the old FHA loan these days. Many sellers and listing agents do not like to see a purchase contract with an FHA loan rather than a conventional loans. The worry is that these loans have stiffer requirements for the seller and take longer to settle. A FHA government loan also many not seem attractive to a buyer because the mortgage insurance premiums have gotten more expensive. Today a buyer can put a bit more money down and seek a conventional loan if they can afford the extra money..

However, aside for the fact that a FHA government backed loan takes less money down to get int,o and is easier for a buyer to qualify, there is one very important reason why this type of loan is a great loan to have if you are the owner of a home. This reason is that a FHA loan can be assumed by a qualifying buyer. What exactly does this mean to you? Well interest rates today are insanely low. Everybody agrees that they will have to go up. Historically the average interest rate over the past three decades has ranged between six to eight per cent and to really have a strong economy will have to go back up to these levels.. And I have been around long enough to remember when rates were briefly at 17 per cent. Believe me that was not a fun time to be a Realtor.

If you have a very low rate government backed loan on your home then if the market goes up-especially if rates go up and the housing market softens, then you actually may have a valuable asset. Ask yourself this, in a slow market with higher rates, if you are trying to sell a home that has an assumable FHA home and your neighbor is selling the exact same home, then all things other things being equal you then have a much more attractive bargain. Imagine if you will a real estate market where interest rates are around ten per cent. (Yes, it can happen.) And your home can be bought with its assumable four per cent mortgage. That would be a pretty sweet looking deal in any market.

So think twice before you get your new loan. Perhaps a FHA loan is a better investment in the long run. If you want to read more and go into the numbers involved here is link to a good article in the Washington Post from 2010. The information is still relevant to today's market.

Outlook for 2013

As we hit mid January and the threat of the fiscal cliff is behind us. I feel that this is a good time to write a brief  post on the current market for the Metro area and state where I think we are heading. First and foremost, the real estate market is looking pretty darn good. Well, darn good for sellers that is . Not so much for home buyers who are facing a shortage of suitable homes to look at and a very competitive market in most jurisdictions. It is hard to believe but we are experiencing a critical shortage of listings on the market. We simply have very little inventory to offer home buyers. And, this shortage of homes for sale means that there will be pressure on home prices to go up. We are already seeing may full price and above price offers, along with multiple offers coming in. A well priced home that has been updated will not usually go unsold for more than a few days.

The improved market is visible everywhere around Washington DC and it's suburbs but some jurisdictions and price ranges are seeing it have a more dramatic effect. The best market is in the District and Montgomery County but even Prince Georges County which had been hit very hard by the downturn and featured a record number of foreclosures and distressed homes is finally beginning to turn.

There are a variety of reasons for the shortage of listings for sale. A lot of unsold homes were taken off the market and rented out by the owners. Many of these homes are now tied up in long term leases. Also, there are still a lot of  "underwater" homes out there and many homeowners who survived the downturn and do not have to sell will opt to wait for prices to go up before selling. I expect to see more homes on the market as the weather warms this year but also expect to see more buyers out there as our local economy continues to expand. For this reason I do not foresee listing shortage situation improving this year and predict that we will be in a good market for home sellers all year. And this means that home values will have to go up.

For a detailed report on the current market data click here.

To Pad or not to Pad. That is the question.

I have been on the verge of taking the Pad plunge as of late but a very good article today in the Washington Post (Yes little Timmy, reading the newspaper is sill a good thing.) has made me rethink the issue. They have been pushing the new IPad and cell phones with the new 4G network hookup like crazy these days but apparently it may not be such a good deal for the average consumer. Apparently these super fast networks come at a cost in that they are monster bandwidth hogs. Many experts think that with the explosion of on line demand for streaming video and music that the existing system just will not be able to handle the load. As a result virtually no cell phone companies is offering unlimited data downloads anymore and the costs for watching high data content is rapidly going beyond the reach of the average consumer's checkbook. So, do I really need a new IPad with super 4G if I am not willing to lay out the dough to pay for the data?

One thing they noted, they do make an IPad that can only utilize local wireless access and does not use the 4G network at all. This is probably the best option for me. But that begs the question. What real value does the super high resolution then have if you can make use that screaming fast hookup? Dunno really, but I do know that I want one of those things.

This Just in, The Recession is over!

This past Sunday I took a new listing in Elkridge, Maryland. It is a nice house in great shape and is priced around $450,000. Within a half hour of entering the home in the computer, I got a call from a fellow agent to show the house and she delivered an offer to me that evening. In 25 years this may be the fastest that I have ever seen an offer come in on a listing of mine. And this seems to be happening on a lot of homes. The housing market in the Metro area is not just recovering but is "hot" and taking off. Purchasers have been flocking to open houses and I know for a fact that three new listings out of my office had multiple contracts presented this week after just going on the market. Only three months ago agents were crying about how nobody was showing their listings. Now, just a few months later my fellow agents are crying about the shortage of suitable houses to show their clients! It has been that way in Montgomery County for about a month now and I am seeing this market activity expand out to Howard, and Frederick Counties in the past two weeks or so. The DC market is a little different as it has been very hot since the middle of last year.

Well, I am a bit cautious as I know that there are still things that have to be sorted out in Europe and many parts of the US still have an oversupply of homes on the market. In addition, we still have good number of distressed homes that will come on the market both in the region and nationwide. However, the expanding market is to me a refection in a resurgence of consumer confidence. I firmly believe that where the housing market goes the economy will follow. Right now it looks pretty darn good to me and this is the first time in over four years that I can say that. Let's see how this plays out.

Underwater on your loan? Bank of American customers might get some help.

This kind of passed under the radar last week but if you have a underwater home loan mortgage with Bank of America. (including old Countrywide Mortgage loans) you may want to give them a call to see if you are eligible for some help. You could potentially have your loan balanced reduced by thousands of dollars. Bank of America is not doing this out of charity but in the hopes of reducing the penalties it owes to the government under the big settlement announced previously. So far, BOA is the only bank to be doing this but they hold a lot of loans in the Washington area and this could come as relief to some homeowners in the area who purchased their home at the height of the bubble. For more information on this see this article.

Speaking of mortgages, I think one of the key reasons that the economy is starting to work again is that consumer spending is up. One of the reasons is that many home owners are refinancing due to the amazingly low rates being offered today. I have been in real estate for over 25 years and never thought I would see interest rates so low. (I recall they were 17% when I bought my first home in 1982) The savings in monthly payments for the average five year old home loan can be quite a bonus, and this is freeing up extra money in households for people to spend on consumer items. Overall this is good for the economy as our economy is driven by consumer spending more than anything else.

If you are sitting on an older loan it might be a good idea to talk to your lender about refinancing. You may cut your monthly mortgage expense by hundreds of dollars by refinancing now. I can't imagine rates going any lower than they are now, so better look into it.

National Zoo

Went to the zoo last week. It has been a while and we took the opportunity of a beautiful, warm February day to sneak down for a few hours in the late afternoon. We thought we would have the whole place to ourselves but as it turns out it was, well, at total zoo. If you like strollers then this was the place to be. It is amazing the stroller culture in the US. Man, some people blow a wad of money on strollers these days. Most interesting to me is the number of older kids who really had no business being pushed around in strollers. These kids are big enough to be running around and really could use the exercise in my opinion. I really think it is a control issue. It is easier for parents to schlep their older kids around in strollers and keep tabs on them. But really now, five year old kids in strollers?

But I digress. The zoo as always is amazing. They have really been pumping some money into the place over the last few years. Biggest improvement is the new "Asia Trail" which is quite nice and fun. Lots of cool animals to see including my favorite, the "Maned Wolf" from Asia. The best kept secret and our favorite place of all is the Invertebrate House located behind and underneath the Small Mammal House. Never a crowd there and lot of cool things going on. Our favorite is the Octopus feeding and the cuttle fish-whenever they have live cuttlefish. Apparently these highly developed invertebrates actually do not live very long (two to three years) and there are periods where they do not have them. However, when they do it is well worth the time to visit the invertebrate house just to see them. Lots of spiders and cool bugs and things for kids to put their hands on.

If you have not been to the National Zoo in a while then put it on your list of places to go revisit. You will be glad you did.

State of the Market

As we wind down 2011 and head into 2012, I think it is a good idea to give you a few of my thoughts on the market and what to expect in the next year. 2011 was an erratic year for real estate in the Washington area. What looked liked to be shaping up as a decent year this past spring came to a screeching halt when congress got caught up in the budget crisis. The situation never really got better as we passed from one crisis to another. Right now with the uncertain financial situation in Europe the market remains in the doldrums. It is hard to find much in the way of consumer confidence when everybody is worried about the global financial situation. The problem is not being helped by the partisan battles that continue to plague our own congress.

The good news is that there will be a housing recovery and prices are bound to go up. The bad news is that nobody really seems to know when this will happen. Some areas in our regions have felt the pain a lot more than others. The western portion of Montgomery County is doing well and the District seems to be one of the strongest real estate markets in the nation. But the rest of the region is still bothered by low prices, high inventory and an abnormal number of distressed properties that keep prices depressed.

But there is one thing that I do know and feel pretty confident about. Recessions do eventually end and when they do, area property values in this area should rebound and prove to be very healthy. I firmly believe that the Washington area is one of the best places to own property. My 25 plus years in the industry and proved this to me. We are going to be just fine. Just be patient and give it a little time.

National Building Museum

For a birthday treat I took Elizabeth (my wife) downtown to the National Building Museum for a few hours to take a look see. There are some nice things there-a few interesting exhibits including a cool exhibit of giant buildings made entirely of Legos. (great for kids). However, the real item of interest is the actual building itself. The Museum is now housed in what used to be called the Pension Office. Designed and built after the civil war by the amazing Montgomery Meigs this brick building is one of the finest in Washington DC. And, it nearly got demolished before wiser heads stepped in and saved it. On a winter's day you can go down and have a great visit without having to experience any sort of crowds or the overwhelming security one might find at the more mainstream DC attractions.

Go see it. It is time well spent.

Lincoln Cottage at The Old Soldier's Home

For a birthday treat, my wife took me down to the grounds of the Old Soldier's Home in Washington, DC to see the Lincoln Cottage. This was the summer home that Ole Abe used for three summers while he was president. The home has only been recently restored but it is a fascinating place for a fun day trip. It is a typical summer retreat for the era and if you are a fan of old houses, you will love this. Since the museum is very new and fighting for funding just like everybody else in this recession, the home is very sparsely furnished so in many ways the tour is not as interesting as say, The Douglass House in Anacostia or the The Tudor Mansion in Georgetown. They just have not had the time or experience to put together a polished tour and the separate museum building is a little lacking. The tour and museum seem to have been set up for school tours and really won't impart anything new to someone who already knows something about Abe Lincoln (that would be most of us). I might add that the grounds are very large and accommodate the VA hospital, The Soldier's Home and the first National Cemetery where over 5,000 Union soldiers are buried. Many of the buildings are quite old and lovely, and once on the grounds you can pretty much wander anywhere. A rare treat in this day of heavy security.

Where are we going?

Well, there is not much I can say about the housing doldrums that we are going through right now. However, I caution all against using this recession as a gauge for analysing the housing market in Montgomery County and the metropolitan area. Housing prices go up and down with the economy-there is no secret about that and with the large recession of the past few years prices are down. I have seen it before and know that you cannot allow a few years of recession to bias your thoughts about property ownership. I tell all my clients that real estate should always be looked upon as a long term investment. If you happen to buy at the right time and reap the benefit of a rising market, so be it. However, you can also get caught with your fingers singed if you purchase at the wrong time and are looking for a quick gain.

Now, just look at Montgomery County and the long term projections for population growth. With just over a million residents now, it is projected that the population of the county may double within the next 25 years. With this influx of people comes job growth and most importantly demand for housing. People have to have homes and the fact is that much of the county has already been built out. There are two predictions that are of interest. One, is that due to the lack of suitable housing more people will be forced to live further out from their jobs (Frederick, Howard, Anne Arundel Counties) and commute longer distances. And as a result, the demand for homes that are in Montgomery County will be very high. So high in fact that the long term concern is that there will be a critical shortage of housing in the county far into the future and that home values "will go up" to the point where new residents will be priced out of the market.

In short, more people and not enough homes. What does this tell you about the overall value of homes in Montgomery County? This is not rocket science. If you can look beyond the current recession then you will see that over the long term this is a great place to buy property. It has been for the last half century. Recessions come and go but for the long term, owning a home in Montgomery County is a good thing. I would think that this data applies to the Washington Metro Area in general and expect the housing market for the overall area to be strong once the economy gets back on track. In short, buy property and plan on holding it. Property in the area is cheap now. It won't be for long

Playdate at Tudor Place

For our birthdays, my wife and I try to find some hidden gems in Washington or surrounding areas to visit. Since it was her birthday this time I got to choose and picked "Tudor Place" in Georgetown for our visit. Built just after the turn of the 19 century by a granddaughter of Martha Washington, the house and grounds are quite impressive to see and well worth the trip. Go on a weekday and you are almost guaranteed a private tour. The tour takes about an hour. I tried but could not get them to let me go up into the attic. It was well worth an afternoon visit and there was plenty of parking on the street around the mansion entrance.

Next time I am going call ahead and work out a look see into the attic.....