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July 31 - August 6, 2008
EVERy day
Dominion biologist george birDsong helps hunDreDs of fly fishermen enjoy Virginia’s catch.
He’s part of a team of scientists from dominion whose job is to preserve our state’s natural resources. For example, at Back Creek in the allegheny Highlands when dominion built its hydroelectric station, the team worked with the Virginia department of Game and Inland Fisheries to protect the local trout, plants and even insects. and today, it’s one of Virginia’s Blue Ribbon trout streams. The work is never-ending—at Back Creek and all over Virginia. But, then again, so is dominion’s commitment to the environment.
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Summer 2008
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The prognosis for the housing market in Falls Church is a very good one, despite the wider misery in the industry. An extraordinary telephone conference call involving realtors from all over Virginia and two George Mason University housing policy experts was held last week, presenting a very nuanced picture of the state of the distressed housing market in the Commonwealth. The call was held under the auspices of the Virginia Association of Realtors, and although realtors are always trying to characterize the glass as half full, there were a lot of important realities that issued forth, especially ones pertaining to migratory patterns among prospective homebuyers. BURKE
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Clearly, home values and buying patterns closer into urban centers are stronger than in more outlying and rural areas, and that includes most of what’s inside the Washington, D.C. beltway. That’s because there are stronger employment opportunity pools in urban centers that can sustain home values, and shore up households that are falling behind in payments and needing to find adequate employment. Realtors from all over the Commonwealth echoed the notion that the market remains relatively strong, even though prices have dropped in most areas, in certain pockets. But no one is buying the more rural areas, such as the southern part Prince William County and Loudoun County. This is in the context of a
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likely national recession, reported George Mason University’s Lisa Fowler, director of Housing Policy Research, and John McClain, senior fellow of the Center for Regional Analysis, both on the conference call last week. They produced a paper making this assertion called,
“Virginia Housing Market in Uncertain Times, First Quarter 2008 Report.” They note drops in job growth, the U.S. Coincident Index, housing prices and consumer confidence, in the context of rising gas prices. However, they note that Virginia has fared better than the nation in recent recessions.
Home sales in Virginia have dropped from 27,000 in the first quarter of 2005 steadily to 16,000 in the first quarter of 2008. In terms of median home prices, they were down 11 percent in the first quarter of 2008 compared to the year
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The old saying “People in Washington have more money than time” easily described Washingtonians’ spending habits during the heyday of a booming housing market. As prices at the pump continue to squeeze consumers’ wallets, however, buyers in the Falls Church real estate market are looking to cut their commuting distances to work. Realtor Suzanne Fauber said the business of selling property in the City of Falls Church has remained steady throughout the current economic downturn. “I think Falls Church has a divine location. I think its location is going to win out in the end because now that [consumers’ monies are] being taken away from them with gas, they don’t have enough time or money, so commuting distance and the cost of gasoline
Summer 2008
makes Falls Church even a more divine location,” Fauber said. Fauber said buyers in the area have an advantage because of the two Metro stations serving the Falls Church community. “The only wild card that has been changed over the years has been the introduction of Metro and where we have created new employment centers, because people want to live near those employment centers,” she said. “The areas that are hurting are the ones that don’t have enough employment to sustain their residential base.”
An advocate for buying property versus renting, Julie Pearson assures prospective sellers and buyers that the real estate market is not all gloom and doom. Though properties are selling with lower interest rates, rates will likely increase as the economy stabilizes.
“Buyers are out there and they are purchasing. Our area is selling for sure. There is a possibility that interest rates will go up, so this really is a good time for buyers to get in the market,” Pearson said. Pearson said active real estate is neighborhood specific and varies city to city. “I think real estate is profitable. There are always cyclical cycles that we go through.” With three consecutive months of increasing contract activity, Falls Church continues to show encouraging signs amid a nationwide economic slump. “I do think the prices might decline a little bit more in Northern Virginia until it bottoms out and then hopefully early next year, we finally will be back to normal.”
Once Rosemary Hayes Jones realized the role realtors play in assessing the features and values of homes, she knew her next career move would lead her to real estate. Jones works personally with home buyers in Falls Church and the immediate surrounding areas in search of properties, despite today’s shaky housing market, which has been affected by increasing foreclosures. “Closer-in communities like Falls Church, Arlington and Alexandria are
not experiencing the kind of downturn we’re seeing farther out, but there’s definitely been a slow down. Buyers are hesitant and are tending to hold back because of the economic uncertainties,” Jones said. Buyer resistance has not troubled the real estate market in Falls Church to a great degree, due to its proximity to Washington, D.C., and since properties are selling for affordable prices, she said. “The market’s not bad at all, particularly in the lower price ranges in the closer-in communities. There are plenty of buyers looking to buy but they’re being very cautious and in some cases renting rather than buying because of their concern for the economy.” “The real estate market in our area, close-in, is good. Could it be better? Of course, but we’re not Las Vegas, by any means.”
When Leslie Hutchison first became a real estate agent in 1986, she knew the City of Falls Church would be the ideal place in the coming years, for those looking for a small-town feel with all the features of a big city. “We’re kind of in a cocoon in this area because our schools are so strong, we’re inside the Beltway, we’re right in Continued on Page S-14
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For two years, real estate agents have had no luck finding a buyer for the 3,800-square-foot home David Frishman built as an investment on Bradenton’s exclusive Hawk Island in Florida. Now, stuck with $12,000 monthly payments, Frishman is trying to sell the house in a less conventional way he has put it up for bid on eBay. With a day left to go, the responses have been disappointing. “Most are just sort of predatorial,” says Frishman, who has heard from people wanting him to refinance or take less than his $1.5-million starting bid. “We probably wouldn’t say it’s been a viable method.” Kerry Hann, a financial representative for an insurance company, holds a more positive view of eBay. The listing for her $645,000 golf course home in the Sarasota County town of North Port, Fla. has drawn serious interest from a prospective buyer moving to the area from California. “The exposure you get on eBay is priceless,” Hann says. With some 84-million active users worldwide, the online auction site eBay has long been a favored venue for buying and selling easily shippable items
like iPods, Nikes and Beanie Babies. But the comatose real estate market in many parts of the United States has also made it an option for those trying to unload houses and other real property. As of Sunday, eBay’s real estate category had 4,029 listings, a tiny but growing number of the site’s 17-million listings. For $150 for a 30-day listing or $300 for a 90-day listing, real estate sellers have two options: They can buy an ad in which they specify a fixed price or do an auction with a starting bid. Unlike most eBay transactions, no money changes hands at the immediate end of the auction. Instead, as a required disclaimer says, the winner is “expressing serious interest in the property and in pursuing contract discussions” with the owner. Given that real estate laws vary by state and that transactions are often complicated by title, lien and other issues, buying property through eBay can be chancy. “I just think people are concerned about how real it is,” says Angela Cegnar, a real estate agent in Florida. Cegnar’s daughter tried to sell her Maryland home on eBay with no luck but plenty of skepticism from prospective bidders. “She did get calls, but it was people saying, ‘Is that what it
really seems to be?,’?” Cegnar says. “You’re not sure who you’re dealing with.” Another Florida agent, Matt Burnett, acknowledges that “a lot of things have to be negotiated” after the auction ends. But he has still managed to sell a few houses to people who first saw them on eBay. “Florida is the kind of place where you get a lot of buyers from out of state,” says Burnett, who now hopes to find someone to take over a pool home from owners desperate to sell. Despite Burnett’s success, a look at recently ended auctions shows that most sellers don’t have any more luck on eBay than they apparently had elsewhere. Many houses fetched multiple bids, though none over the “reserve,” or lowest price the seller was willing to accept. Typical was the experience of a couple who listed a three-bedroom canal-front house in New Port Richey’s Gulf Harbors area. They got 30 bids, the highest at $160,100 and a query about trading for a log cabin “nestled in the hills of Kentucky.” But none of the bids met the reserve price on the house, which has a $370,000 market value. In Bradenton, the Frishmans turned to eBay as a last resort after failing to find a buyer for
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Handwritten markdowns on the brochures show how much the Frishmans dropped the price on their Florida home. The couple have put the home up for sale on eBay. Starting bid is 1.5 million. (Photo: Martha Rial, St. Petersburg Times) the house they and some relatives built as an investment at the tail end of the real estate boom. “We thought we could see the bubble coming for lower-end houses so we decided the best option was to go with waterfront property in an exclusive neighborhood,” says Frishman, who owns a chain of dry cleaners. But a confluence of factors doomed their hopes of profit. There were problems with the builders, the relatives were unable to make their share of the payments and the local real estate market tanked. Now the Frishmans could lose their own 4,000-square-foot home in
Lakewood Ranch, which they put up as collateral for the loans. At a starting bid of $1.5million, the assessed value, the Hawk Island house would seem a great deal in a new gated community where some lots alone are listed at the same price. But while the auction has drawn 3,804 views, not one bid had come in as of Sunday. “We’re just trying anything at this point,” Frishman says of his eBay auction, which ended Monday. “It certainly wouldn’t be our first option, but when you’re trying to save your home, you don’t leave any option unturned.”
Summer 2008
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Summer 2008
In the beginning, home buyers hired real estate agents because they needed information. How else to know which homes were for sale? Or whatprice was fair? Or the proper reaction to a form that said your children might be poisoned by lead? Agents served buyers not just as personal shoppers, but as personal reference libraries, constantly available to translate obscure language, to validate decisions, and to offer the comfort that you were making the same choices as other people. All for a handsome fee. The buyer paid for the home, and the seller gave 3 percent of the price to the buyer’s agent. As it has done to other businesses, the Internet is changing the real estate industry. A 2007 survey by the National Association of Realtors found
84 percent of buyers now use the Web to search for homes - the same share that use a real estate agent. Many buyers simply search directories created by the traditional real estate industry, the so-called multiple listing services where companies list properties available for sale. A limited version of these listings is widely available, but increased access generally requires signing up for access to an agent’s website. And even then, some of the data usually remain hidden from public view. Online real estate startups such as Redfin.com offer discounted access to complete MLS listings. Meanwhile, sellers and their agents also are listing the same properties on open services such as those found at Yahoo.com, Google.com, and Craigslist.com. Some properties listed on those sites — and others like ForSalebyOwner. com and FSBO.com - cannot
be found in the MLS directories. As a result, buyers have more ways than ever to search for a home. For example, Trulia.com offers “heat maps,” or colorcoded maps of property values that can help shoppers figure out which parts of a metropolitan area are in their price range. Google Maps (maps.google. com) lets users search by zooming in on a geographical area. The search can be further restricted by standard attributes such as price, or the number of bedrooms and bathrooms. The site also allows users to search for particular language in the listing, such as “fireplace” or “slate roof.” Once you’ve found some homes to visit, you can turn to the aptly named IdealRoute. com, which mimics another classic agent duty - mapping out a day of visits to homes. The site was created by the Virginia
Association of Realtors for the benefit of its members, but it works just as well for others. Type in the addresses of several homes you’d like to visit, and the site returns directions for the quickest route. Once you’ve found a desirable home, it’s time to take the measure of the surrounding neighborhood. While online tools are no match for a good conversation with a longtime resident, and some are more mesmerizing than practical, they increasingly offer answers to the most basic questions. Trulia.com integrates information about schools, including a quality rating from GreatSchools.net, into each property listing. Less helpful is TruliaHindsight, an interactive map that shows the development of a town over time. Walkscore.com allows users to quickly survey neighborhood amenities for a given address, including the nearest supermarkets and drugstores, coffee shops and bars, parks and libraries. The information is presented on an interactive map, with a score summarizing the “walkability” of each neighborhood. And in many cities, it’s possible to find online crime maps that can help you judge the safety of a neighborhood,
such the map of violent crime in Boston at UniversalHub/ Crime. The Internet also makes it easy for armchair analysts to research property values. Most counties have put property records online, making it simple to check the past sales prices for a particular home. Prospective buyers also can check the square footage figures used by the county - often lower than the figures listed by the real estate agent — and the taxable value of a home. Sites such as Zillow.com return immediate information on the sales of comparable properties. And several services, like Domania.com, allow buyers to purchase an automated appraisal of a property’s value — the same kind of automated assessment used by many mortgage companies to check the work of appraisers. Domania charges $30. Many buyers still prefer to work with a real estate agent, of course — they might not have the time or inclination to do their own research. Or they decide an agent with years of experience can conduct research more effectively. But the Internet does give doit-yourself buyers an opportunity. And that is a fundamental change.
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As with all trends today, the Internet has proved an invaluable asset to the eco-friendly boom of green housing in the United States. That said, it can be difficult to know how, when and with what remodeling company to start your home improvement on the Green Path. Green enthusiasts, however, will reassure you: greening is here and it’s easier than ever. Their mission: convert everyone – the homeowner, the home improvement contractors and home goods suppliers – to the simple creed of build for yourself and for the environment, given the easy access to online information and supportive local companies. Along that same line, advocates argue that green living will not rob any more green from the wallet than older construction methods, even proving to be cost-effective in the long run. According to the Green Building Center, of the popular home-improvement website Servicemagic.com, refitting older homes to be more eco-conscious or starting green from the scratch, new forms of remodeling “can save you 30%-50% in annual energy costs over traditional construction.” Web advice like this, on how to take action and bring your abode into the 21st century, ranges from the go-it-alone approach, providing homeowners and their families with the means of updating the homestead, to the search for a Leadership in Energy and Environmental Design (LEED)-certified professional remodeler. LEED is a program of the U.S. Green Building Council, a non-profit business organization whose goal is bringing the U.S. home construction industry up to today’s green standards. For more about LEED and the USGBC’s mission to champion the green movement in the absence of government-led action, see their website at usgbc.org. Faced with the daunting task of a decision, homeowners have several major resources on the web that help focus the possibilities and answer common concerns and everything environmental for the green-savvy. Blue Egg (blueegg.com) advertises itself as “all things being eco” and it certainly delivers. This is the go-to hub for the interested or active green person, where homeowners can explore all aspects of green living, including, and by no means limited to, environmentally-friendly habits around the house, safe and effective household cleaning and HVAC products,
in addition to home improvement. Coupled with a comprehensive selection of “How to Guides” (for example, “How to talk to your HVAC Contractor” or “How to insulate your Water Heater”), Blue Egg offers a directory of green product suppliers and home construction industry. One referral leads to “Ask a Pro,” where Green Home Guide (greenhomeguide.com) enables prospective shoppers to put their questions to a “network of the best and brightest green architects, designers, contractors and consultants across the U.S.” In these pioneer days of green building, “Ask a Pro” aims to ensure a level of quality and LEEDaccredited professionalism, helping homes with the initial obstacle of finding green builders and the ensuing costs to the consumer and the environment. In case homeowners would prefer a second opinion, the web-rooted green movement can offer dozens. Home and Garden Television (HGTV, hgtvpro. com) offers suggestions and links to knowledgeable design professionals around the nation, promoting renowned remodeler David Johnston and green building consultant Kim Master’s guide, “Green Remodeling: Changing the World One Room at a Time.” An Amazon.com search for similar titles testifies to the fact that there is no shortage to green building literature. On the other hand, for consumers looking for more human contact with the green
A DOOR BLOWER, used by Ardently Green, simulates high powered winds and their effect inside the house. Leaks can then be measured throughout the whole house. (Photo: Courtesy Carolyn
movement, look no further than the Falls Church-Fairfax region. Commonwealth Home Remodelers (commonwealthhome. com) emphasizes its Green Design program as “one of the core values of our company and we strive to integrate green design principles into every project we do.” Likewise, Ardently Green (ardentlygreen.com), which started up in Sterling last month, provides consumers with remodeling services aimed at lowering energy expenditures and increasing efficiency.” Ardently Green promises: “We’re with you from start to finish, serving as your whole house consultant and professional installer.” Moss Building & Design (mossconstruction.com) has played a similar role in greening Northern Virginia. Of course, a significant part of greening the home remains the job of the homeowner. Consumers must be conscious of
From small, do-it-yourself projects to dramatic large-scale procedures that require a contractor, there are several home improvement jobs that are currently all the rage. The News-Press caught up with Kevin Krom of Ardent Home Services in Sterling and John Taylor of Brown’s Hardware in Falls Church to find out the latest fads in remodeling and home improvement. From stone patios to sealing off windows, here are the three biggest trends in home improvement.
According to Kevin Krom, one of the owners of Ardent Home Services (www.ardenthomes.com) based in Sterling, Va., homeowners interested in remodeling are getting outdoors by adding on screened-in porches, patios and other outdoor living spaces. John Taylor, manager of Brown’s Hardware in Falls Church, added that many residents are creating stone-landscaped patios and straying from wood. “People want to be down on the ground instead of up in the air,” he said. The stone, according to Taylor, is more durable and does not require the staining and refinishing that wood does every few years.
Becoming energy efficient is such a large business that Krom started
what they buy and how they act; HGTV suggests that, after all, green living best begins “with the simple stuff.” To kick off a do-it-yourself green renovation, Green Home environmental store (greenhome.com) provides homeowners with eco-friendly construction and home materials – low-toxin paints, while another company of the same name, Green Home organization (greenhome. org), focuses on educating building professionals in the ways of green living. Armed with local help and the Internet, homeowners today have unprecedented access to answers for the how-to, how much and with whom of green remodeling. In the end, the act of greening the home turns out not to be as difficult or expensive as one might have imagined, thanks to local and online communities dedicated to the gospel of green. Ardently Green (www.ardentlygreen. com), a separate company within Ardent Home Services to work on those projects, including air sealing, stuctured insulated panels, heating and ventilation. Other ways to go green are with solar hot water systems or Energy Star appliances. Krom explained that energy efficient work is on a smaller scale than other remodeling projects and they range from $3,000-10,000. The economic benefits on energy efficient houses are twofold: saving on monthly electricity bills while increasing the long-term value of a home. Further, home remodeling guru Bob Vila names living green as one of the top eight Big Home Improvement Trends in 2008.
To keep from having to scrape ice off windshields, many home-owners are opting to build garage additions to their homes. Garages are also being remodeled to serve as offices, workshops or as extra living space. If your home already has a garage, cleaning it out is the first step to its new function, so install some shelves and get organized! Garages are sometimes referred to as “drive-in closets,” so maximize your storage space. Home remodeling blogs are naming garage makeovers as the hot trend of the decade, and refurbished garages include stain-resistant floor coatings, stainless-steel work tops and custom cabinets. — Stacey Marin
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