valentinosdcpulse: May 2009

If you're at the time of your life when living in an interesting, vibrant neighborhood is what you want, the Columbia Heights section of D.C. could be your ideal destination.  The area boasts a rich cultural heritage, ethnic diversity, affordable housing, and a huge new shopping center across from the Metro station.  This is why I have called the neighborhood home since September 2008.

Located in the Northwest quadrant of  D.C., the area is bordered by Spring Road, Georgia Road, Georgia Avenue, and 16^th Street.  About 40% of the area residents are between 25-40.  One in four residents is a homeowner, although the area is a popular area for rentals too....so if holding onto a condo as an investment (down the road) sounds appealing, this could be your golden spot!  Dominated by Victorian style architecture, Columbia Heights saw a rash of luxury modern-style condo building in anticipation of the opening of the D.C.USA shopping center in 2008.  Given the sluggish economy, some of the condos have since been converted to rentals but are still thriving.

Columbia Heights was named after a college which has since changed its name to George Washington University and moved most of its operations to Foggy Bottom.  The government bought some of the college property to build Meridian Park (also known as Malcolm X Park) the site of famous statues of historic figures.  Only 15-20 minutes from downtown Washington, it quickly became the upscale home of government employees, Supreme Court justices, and military officers and other wealthy residents.  The area became more urban as apartments were built to meet demand.

Demographic shifts in the 1940s made the area more middle class and changed the racial composition.  Like many other Washington, D.C. neighborhoods, Columbia Heights was devastated by riots that followed the assassination of Martin Luther King in 1968.  In the decades following the riots, the area lay dormant....but all of this has changed in the past 5 years.

Now, Columbia Heights has been rediscovered.  First, a Metro station was opened, which served as a catalyst for economic development and population influx.  Much of the development has centered around 11^th Street, already the site of a popular neighborhood bar called the Wonderland Ballroom (a favorite happy hour spot!), Columbia Heights Coffee, and other bars and restaurants.  The mix of cultures that now populate the neighborhood make for an interesting mix of cuisine and cultural events.  The biggest area attraction, DCUSA, has Target, Buy Buy, Marshalls & Washington Sports Club as anchor stores, plus ample underground parking (only $1/hr!), to serve neighborhood residents and pull in people from all over D.C. 

The revitalization has made Columbia Heights properties attractive yet some of the most affordable in D.C..  Median values for a single family home is $597,000, while the condo median price is $399,000.  

Does the "median value" still seem out of your price range?  Right now on my Atlantic Coast Connection website, I have 90 properties in Columbia Heights that are listed for less than $250,000.  Finding an affordable home in the area with parking or proximity to the Metro is part of what Rachel Valentino can do for you!  Check out my website today to see my full array of listings in the greater DC area.

If you've been working in Washington for a while, you might be thinking it's time to put down some roots and buy a place....and you should. You want the pride of ownership but you don't need loads of space, right? Is your career taking off so you're left wondering how you would do any yard work or maintenance?  And when you're free, you want to entertain or travel - or enjoy amenities at home? I've got you covered. A condominium or loft is your perfect housing choice. It's not your dream home, but believe me, when you look back in 5 years, you will be glad you made the leap & jumped on this opportunity!

A condominium is an individually owned unit in building that often looks like an apartment building.  Most individuals consider condos because they feel the environment offers convenience, safety, freedom from maintenance, and a sense of community.  Sometimes, the larger condo buildings will even offer pools, fitness facilities, tennis courts, maybe roof deck with views, concierge service, and valet service.

Lofts are living spaces often carved out of buildings that were originally intended for some other purpose.  It might be a factory or warehouse that was converted for urban living. These offer interesting spaces that might be sold ready to use or ready to convert.  Many times, loft buildings often feature high ceiling and lots of open space and require low maintenance...once you get your space the way you want it to look.

In both scenarios, the residents are usually governed by a homeowner's association which oversees the community, collects monthly fees, and maintains the common areas.  While you do have to live according to "their rules", it is still a very good housing choice for young professionals who are first time D.C. homeowners - and for those who like the many lifestyle advantages.

Condos and lofts are plentiful here, from older ones to new construction.  While you can spend millions, you can also find a nice place that is affordable and convenient within the greater D.C. area.  Right now, the $8,000 tax credit and D.C. housing credit might apply to you, so you will need a professional real estate agent who knows the neighborhoods, knows the condo/ loft market, and knows the financing landscape. 

I specialize in finding just the right condo or loft for clients like you, whether you are starting out or moving up.  Give me a call at (202) 270-6972 - we can meet for coffee to discuss your real estate plans.  While you are getting ready to buy, I offer you plenty of resources to guide your decision.  Subscribe to my valentinosdcpulse blog for the latest tips on buying a condo!  Check out my Atlantic Coast Connection website for the D.C. area latest listings and information on the D.C. condo scene!

Suppose you want to be a player in the buyer's market you hear so much about and take advantage of a great deal on a foreclosed property or a "fixer -upper."  The properties you see need so much work that you don't see how you could manage the repairs.   The 203K loan was set in place for situations like this.

The 203K loan allows a buyer to wrap repair costs over $5,000 into the mortgage.  The deal is that you work with a consultant and a contractor in addition to your Realtor® to assess what needs to be done with the home and develop a plan to complete repairs within six months.

Technically, the program does not have a ceiling but the amount of the total loan must fall within the amount the buyer was pre-approved for.  Dollar amounts up to $35,000 are processed under a streamlined plan.  The program will not finance repairs that will put the home out of line with other homes in the neighborhood.  To assure this, the property is appraised as is and in view of its value after repairs.  203K funds can be used in conjunction with community development block grants or other financing.

Many repairs and updates are covered by a 203k loan.  The program does not support luxury updates but will cover a wide range of repairs and renovations.  These include:

• Remodeling bathrooms or a kitchen, including new built-in appliances
• Replacing a roof, gutters, and downspouts
• Adding a family room, bedrooms, or bathrooms
• Replacing flooring, tiling, or carpeting
• Completing a basement or attic conversion or adding a second story
• Expanding or building a garage or carport
• Renovating a deteriorating property, such as repairing a chimney, termite damage, or structural problems
• Upgrading plumbing, heating, air conditioning, or electrical wiring
• Eliminating health and safety hazards, such as removing lead-based paint
• Making the home accessible to the disabled
• Installing a well or a septic system
• Adding a porch, deck, or patio
• Adding or repairing siding or repainting
• Installing energy efficient windows or doors
• Repairing an existing swimming pool

With this loan, the buyer will end up with an FHA loan that is structured so the contractor receives incremental payments as work is completed in the first six months.  Because there are many regulations covering the program, a special 203k consultant is assigned to each project to assure compliance.

A successful 203k project requires an owner with vision - and a lender, contractor, and Realtor® with experience in processing the loan.  The results can be amazing for both the new homeowner and the neighborhood.  The 203k loan offers a potential buyer who can see past the current state of a home an opportunity to acquire a great home at a great price.

Rachel Valentino can help you get a 203k loan in motion on properties in DC.  Check out her ACC website today for a great selection of properties in Washington, as well as Virginia and Maryland.

Homeownership in Washington, DC isn't just for the wealthy.  Since 1978, the Home Purchase Assistance Program (HPAP) has offered downpayment and closing cost assistance to low and moderate income DC residents.  When used in conjunction with the $8,000 tax credit and tax abatement programs currently in effect, new homeowners can get settled in an affordable home within the District.

The HPAP is actually a low-interest loan which has the payments deferred for five years.  It can be used for single-family houses, condominiums or cooperative units used as a primary residence.  Participants can qualify for up to $40,000 in downpayment assistance based on their income, credit rating, household size, and assets.  The program does require a good credit rating but reaches out to low-income, elderly, handicapped, and disabled residents.  The borrower needs to contribute $500 or 50% of his liquid assets over $3,000, although many needy residents usually pay no more than $500.  Another condition of the program is that the borrower must maintain the property in line with DC building codes.

The income guidelines of the program are set up so that the less you make, the more assistance you get. Income limits for the program are $58,100 but single person households making between $34,450 - 43,050 are eligible for the most help.

The program is aimed at helping DC residents buy local property but the definition of who qualifies opens it up to those who have worked in the District for a year prior to applying for the program or who have lived there three years as an adult.  This means that young professionals starting out their careers in the District or families who moved away for a time can qualify.  Preference is always given to current DC residents.  The program is open to those who have not owned a home in the past three years.

Chart, Courtesy DC Housing and Community Development

Hopeful participants in the program should call Rachel first! You will want/need a skilled agent to help yo navigate this program. She will sit down over coffee with you and talk about the ins & the outs of this program & the effects on your purchase process. Then, Rachel will assist with your application at one of the following organization:

Housing Counseling Services Inc   2410 17th St NW Washington DC  20009  202/667-7006-108

Marshall Heights Community Development Organization   3939 Benning RD NE Washington DC 20019   202/396-1200

Lydia's House   3939 S Capitol St SE Washington DC 20032   202/373-1050

Latino Economic Development Corp   2316 18th St NW Washington DC 20009   202/588-5102-16

University Legal Services 220 I St NW  St 130  Washington DC 20002  202/547-4747

University Legal Services    3232 Pennsylvania Ave SE St 4 Washington DC 20020  202/547-4747   

 The organization will process the paperwork and forward it to the Greater Washington Urban League, which will approve or deny it.  Once the would-be homeowner has a certificate of eligibility that defines the amount of assistance granted and the price range of the home, he can find a home and proceed through the closing process.

The term of the low-interest loan is 40 years, but the balance is due if the homeowner sells or transfers the property, refinances (except under certain conditions), or does not maintain it as a primary residence.

Developed in 1978, HPAP loans used be as high as $70,000 but budget cuts curtailed them at the end of 2008.  The program was reactivated in January, 2009 with a $40,000 cap.  Funding for the program through 2010 has been supplemented with Federal stimulus funds.

Before looking into this further, you will want a skilled agent to walk you through the HPAP jungle.  Rachel Valentino has helped MANY first time buyers qualify & then navigate the HPAP process with skilled execution. Let Rachel help you find the perfect DC home. 

These are some very unsettling times. Unemployment in DC is at near record highs. DC property values are amazingly holding steady."So, what's going on?!" It seems that most consumers are in the Land of Paralysis. Major purchases are delayed, vacations are put off or downgraded, and people are more cautious in all their spending.

I understand. If my only source of information was the media, I would be confused, misinformed, and scared too! And while I can't tell you the exact time when the housing market will turn (not a single soul can!), I do know that home ownership is still a GREAT long-term investment & renting will NEVER increase your wealth. I also know it isn't about timing the market, but rather time in the market.

During this phase, when real estate in much of the country can be bought for relatively low prices, you need an expert on your side. These windows of opportunity only come around about once every 15 years or so and traditionally last maybe 12 to 18 months. I'm not talking about buying & flipping here. I'm talking about buying & holding. But by the time it's on the front page, it is always too late.

Smart Financing:Today, I see more & more individuals worried about getting the wrong financing. And that's a healthy & legitimate concern. Buying a home with the wrong financing is just as bad (or worse) than buying the wrong home. The predicament with foreclosures is a reflection of previous poor lending practices. It should have never happened, but if you're working with a reliable Realtor®, they should also be putting you in touch with a trustworthy lender.

Some customers fear that they may not qualify for a mortgage, especially since standards have tightened in response to the foreclosure crisis. Believe me, if you are a good credit risk, you can get a mortgage with a fixed interest rate under 5% - not the lowest ever, but pretty darn close! Now, to me, that is far more important than most other media headlines!  Even if your credit isn't perfect, FHA loans offer some good options.

At the moment, first time homebuyers can take advantage of an $8,000 tax credit.  This may be made even better after the recent hntst that it might be applied to the down payment in some cases. In DC and many areas, there are incentives to encourage home buying as well.  Your Realtor® can fill you in on any special programs that can help you ease into home ownership!

Price it Right from the Get-Go:Sellers want to move on and take advantage of the great deals available for their next home. The single biggest mistake sellers make is pricing their current property unrealistically high. The longer a home sits without selling, the staler it looks-and the greater the perception grows, accurate or not, that something is "wrong" with the property. This mistake should be avoided by pricing the house correctly. Markets establish price and letting emotions dictate pricing decisions can be costly. Additionally, flawlessly staging a space is a must. Clear all clutter, deep clean, paint & remove all the bulky furniture - be committed to do whatever it takes to make the home shine!

There's Still No Place Like a Home:Homeownership is STILL where it is at. During these market fluctuations, don't lose sight of the big picture. Buying & holding real estate has done an amazing job of generating phenomenal wealth for the average American. And beyond the financial benefits are the personal rewards.

Home is where we create memories & dreams. It's where we find our respite, our calm, our love. We enjoyed an eight year real estate boom, and now we're stabilizing - unpleasant yes, but certainly not surprising...or permanent. Don't let the current media negativity cloud your decision making. This is a VERY good time to buy a home. 

By the way, I put my own money where my mouth is. Just bought a NW DC house in late September.

What are your goals? Let's grab a coffee & discuss your real estate aspirations. 

Hope. Desire. Expect. Accomplish. - Rachel

Rachel Valentino, President & Managing Partner

The Atlantic Coast Connection: Long & Foster Real Estate

Cell: (202) 270-6972

www.rachelvalentino.com

2009 is a great time sell real estate.  I say that as someone fairly new to the industry, but also as someone who got off to a rapid start.  Based in DC and also licensed in nearby Maryland and Virginia, I am very much at home in this fast paced city.  The last few years have been a challenging time but I did very well because I worked hard and remembered a few basic principles.  Good realtors have a grasp of business, economics, finance, and marketing, but real estate is in essence a customer service business.  If you can package what you know for the customer, you will be successful.

I found you can do well selling a professional her first condo in exciting DC or an executive a luxury home in Virginia.  By being helpful, well prepared, and enthusiastic in the present transaction, you can build for the future.  I am confident that when my clients move to their next home or venture into investment property, I will be the one they call.

Let me share a few customer testimonials with you that underscore what's important to be successful.  I appreciate my customers and love the industry.  As I venture out into Active Rain, I am sure that many of you can add to my lists of tips for success. 

1.  Be prepared - you are entering into a relationship.

"Rachel Valentino forgoes sleep and laughs at the concept of downtime. This is how she gets so much done. And this is why her clients are so happy.   Her work ethic was evident from the start; before our first meeting she had prepared a packet of materials that anticipated all of my questions. It was a reassuring flourish of professionalism.   Rachel listens carefully and traffics in empathy. She expertly lays out all possibilities. She asks for unvarnished thoughts along the way.  She treats you like a friend, not like a means to a commission."

Brenden Jackson

2. Listen to the customer - he usually knows what he wants even if he can't put an address on it...

"Every step of the way Rachel did a perfect job, so much so that I was left confused by the horror stories I had heard from so many other people when buying a home. I almost couldn't figure out why I didn't have any of these problems, but I know it was because Rachel did an excellent job.....She also did an excellent job finding places that fit into what I was looking for. So much so that the third place I saw on the first day we went to see houses was the one I ended up buying. I naturally we went to see a lot of other places after that, because as a first time home buyer I felt the need to see a lot of places and get a better handle on the market. I have been in my townhouse for only two months now, but I know that it is the perfect place for me at this stage in my life, and I have Rachel to thank for that."

Kevin Hines

3.  Treat every individual as an important client - especially if you want to build life-long business relationships...

"Rachel always treated us like V.I.P. clients, which we greatly appreciated. If people can be judged by the company they keep, then it speaks very highly of Rachel that all the professionals she has referred us to have been top-notch. From our mortgage broker to the locksmith, even right down to the neighborhood pizza joint, Rachel's referrals have made moving into our first home a smooth transition."

Anne Marie & Brian Frere

4.  Know your area - and freely share your knowledge with your clients.

"The only reason that I'm in my home today is due to the dedication, willingness, devotion, eagerness, diligence and perseverance of Ms. Rachel Valentino. She took the time to research and send properties that were in my price range and desirable neighborhoods, listened to my complaints and frustrations, was organized and made every appointment, all the while demonstrating exceptional professionalism.... I was very pleasantly surprised to witness her vast knowledge of the Washington DC area and her willingness to visit all of my interested properties."

 Deanna McPherson

5.  Be available to your clients.  All the hi-tech communication devices in the world won't matter to your clients if you aren't accessible.

"Rachel was extremely responsive to all our emails and phone calls, emphatic to the emotional whirlwind we were experiencing . . . To all first-time home buyers, Rachel makes a stressful, but extremely rewarding experience, a little bit easier to handle."

Kristofer Dodge and Kelly Rain

6. Follow through for your clients so that the transaction is smooth for them.

"As first-time homebuyers, we appreciated your willingness to take the time to walk us through the whole process, from taking us from home to home (to home...) all the way through negotiations with the sellers and final closing. Your positive attitude, good listening skills and attention to detail made the process a surprisingly pleasant experience."

Chris French

"As a first-time home buyer I was very nervous about the huge financial commitment I was about to make. On top of that, I worried that my home search would drag on in what was a turbulent market. Rachel made sure that I saw only the properties that met my many requirements while also serving as a fantastic guide in writing and negotiating my purchase agreement. Thank you, Rachel, for helping put my mind at ease during what is normally a nerve-racking process. I couldn't imagine being happier with the way things worked out."

 Adam Cole

 Are you ready to buy or sell your Washington DC property with Rachel Valentino?

The Atlantic Coast Connection: Long & Foster Real Estate

Cell: (202) 270-6972         www.rachelvalentino.com