Real Estate Live

Welcome to Real Estate Live, an online discussion of the Washington area housing market, featuring Post staff writer Daniela Deane.

In her Live Online discussions with the audience, Deane discusses the specifics of the market, from condos and investment properties to contracts and mortgages.

Deane has covered real estate for The Washington Post since 1999 and has worked as a reporter for more than 20 years.

The transcript follows. Editor's Note: Washingtonpost.com moderators retain editorial control over Live Online discussions and choose the most relevant questions for guests and hosts; guests and hosts can decline to answer questions.

Editor's Note: Washingtonpost.com moderators retain editorial control over Live Online discussions and choose the most relevant questions for guests and hosts; guests and hosts can decline to answer questions.

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Daniela Deane: Hello everyone and welcome to Real Estate Live on a beautiful day in Washington. Let's hope the weather lasts through the weekend. Thank you for joining me today. I've got lots of questions, so I'll dig right in. Please chime in with your astute observations, impressions, and experiences.

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Montgomery County, Md.: Is there a significant disadvantage to listing a home for sale in the fall as opposed to spring or summer? I have a townhouse in a desirable area and am planning to list it in about a month.

Daniela Deane: I wouldn't say there was a severe disadvantage, no. In fact, some agents believe there's actually an advantage to selling when there's not as much else to compete with. And I can see the logic. Do you want to be the only girl at the dance? Or one of 100 pretty girls at a dance? You'll have less competition selling in a month than you would have selling in the spring. And you'll get more buyers who are serious about buying. There's something about spring -- the change in weather -- that brings people out looking when they're not really in the market for buying. Don't worry about it. Just be sure you put a reasonable price on it. And good luck!

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Alexandria, Va.: The people across the street from us (in Mount Vernon) have just listed their modest looking brick rambler with a small addition on a 1/2 acre lot for $485K! They have put on a new roof, siding & windows, as well as put in hardwood floors, but they bought the place (according to tax records) for $250K a couple of years ago. Around the corner the huge center hall colonials are going for $450K. Are they crazy?

Daniela Deane: The market will speak in this case...You'll know soon enough if they were crazy or not. If it sits there unsold for awhile, then yes, they probably were crazy. If there's an Under Contract sign on it in a couple weeks, then they were probably right to shoot that high...Plenty of people are over-pricing houses these days. Let me know what happens!

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Washington, D.C.: Can you tell me what the rate of apreciation is for the Dupont Circle area for a one bedroom condo? Thanks.

Daniela Deane: No, not a precise figure off the top of my head...But I can tell you that they've certainly appreciated more than 10 percent over the past year...It's incredible. Nobody is expecting that to continue every year ad infinitum...But most real estate watchers are predicting a continued, albeit slower, rate of appreciation for the District.

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D.C. area: My wife and I are very interested in buying a condo in the District. Can you tell me what the differences are between a co-op and a regular condo purchase? Advantages and disadvantages? Thank you very much!

Daniela Deane: Hello. There are some beautiful co-op buildings in the District, that's for sure. Some of our most beautiful historic buildings are co-ops. Basically in a co-op situation, owners own shares in the building, a bit like owning stocks, rather than their individual units like in a condo building. Co-op buildings tend to have stricter rules than condo buildings about things like how many people can rent, who can buy, pets, all kinds of things. Also, it can be a bit trickier to get financing on a co-op over a condo, although there are banks who do it. You should talk to some co-op owners before you do it, so you know exactly what you're getting into...A colleague of mine just said to me earlier today that she loves her co-op building in the District, but that it drives her crazy to. Do some research on it.

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Bethesda, Md.: Daniela-

My wife and I have a 2 bedroom condo in downtown Bethesda and are also ready to purchase a house in Silver Spring. We are trying to decide whether to keep the condo as a rental (thanks to fanatical saving over the past few years we can afford to), or cash out.

We've already ridden the wave of appreciation on the condo over the past 4 years, and wonder if with all the talk of a real estate bubble, it wouldn't be smarter to get out now. What are your thoughts? Thanks.

Daniela Deane: My own personal thought on this is keep that condo in downtown Bethesda! That area is just so desirable -- one of the most sought-after neighborhoods in the entire D.C. metro area -- that I can't see it ever going down really....Okay, if there's some horrible attack, but let's not even go there...And it should be really easy to rent too. If it were me, and of course it's not, you couldn't pry that thing out of my hands....

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Upper Marlboro, Md.: I want to purchase a new home and rent out my current condo. Will a lender allow you to have two mortgages? Basically, I would like to know how it is done. Thanks.

Daniela Deane: Oh yes....I'm in debt up to my eyeballs, just as a matter of reference! Sometimes banks ask to see a rental lease on a rental property to help them see that you'll be able to make both payments. So it might help to line up a renter...Talk to a mortgage broker, but in general, the answer is yes.

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D.C. area: Does switching listing agents help sell a house?

My house has been on the market for two months, and there have been no offers and little traffic. It's relatively expensive (but the asking price is in line with comparable houses that have sold in the area in less time). My agent says it's just a slow time for houses in this price range.

I've heard that changing realtors would make the listing seem "fresh," but I'm wondering whether that would do the trick. My current agent has it listed on the Internet and is putting ads in the papers, so people should know the property is out there.

The alternative would be to lower the asking price, which I couldn't do with the other agent since the commission would be higher. Any advice?

Daniela Deane: I'm not sure how changing listing agents would make it seem that fresh...When I see that, it makes me think a house is just not selling. Agents always tell me that selling always comes down to price...That there's a buyer for every house if the price is right. And that the number 1 reason a house doesn't sell is that it's overpriced. Is that the problem here? A house near me just went through several months of different agents and different prices...It finally sold for about 150K less than it's first price....Good luck...Let me know what happens.

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Falls Church, Va.: Do you ever get letters/emails from people talking about how happy they are they moved (and bought houses) outside of this area?
My new bride and I would love to have a home, but just don't see it happening here.

Daniela Deane: I have gotten emails from people saying how much more they were able to afford once they left here...And I've talked to lots of people who have been just shocked at the prices here once they came from somewhere else...All of a sudden, we are in one of the most expensive housing markets in the country...A lot of it has to do with the fact that there is so much work here. Someone from Freddie Mac was saying to me the other day that we could soon become like the Bay area of California, where more moderate-income people like teachers and firemen, have to live two hours away from their jobs...So are you going to leave?

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RE: Bubble?: We bought our 3br modest townhouse for $310,000 back in December. It recently appraised for over $400 and several in our neighborhood - walking distance to Metro - have sold for well over that amount. While I think the $1M+ mcmansions and other such homes may see a bubble, isn't there a supply/demand argument to be made about Metro accessable homes, that being that there is virtually no more room within walking distance of these stations to build nice homes, so they will keep appreciating. I mean, I'm certainily not expecting 33% in Year 2, but I don't see the market falling anytime soon.

Daniela Deane: I agree with you.....

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Connecticut: Hi, woe is me, no one will give me a loan. My previous company down-sized, I got laid off, couldn't find another job, relocated to another state, had to start the job search all over again. Long story short, was out of work for exactly 2 years but never missed a bill payment, and have now been at my current job only 6 months (worked steady for 15 years prior to layoff). Also had to take a $20k salary cut, so haven't necessarily stopped looking...nevertheless, have been living with relatives while job hunting, but have recently come into a legal settlement and have $25k to spend. I want to buy a house before my relatives and I throw each other off the roof, but the one mortgage (bank) person I talked to said my recent work history and low salary don't qualify me for enough of a mortgage to buy anything. Funny, I thought $25,000 would have gotten me at least a foot in the door....I can't keep living where I am now--can you recommend a next move? I hate to throw away money in rent when I can afford to buy!! Thanks.

Daniela Deane: I'm sorry you've been through such a hard time...Try talking to other mortgage brokers to see if anybody else might say something more encouraging. You have nothing to lose there. Careful though of any predatory lending situation. Also, perhaps you should look around for a better-paying job? Whatever you do, don't leave the job you're in now...After awhile, your unemployment will have faded in time....I know I'm always preaching buying, but there are times in life where renting is necessary and a good option. That may be where you're at now. Renting your own place seems preferable to having a falling-out with relatives...This too will pass....Best of luck.

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Fairfax, Va.: Daniela, I want to vent a bit and hope you'll indulge me. I'm looking for a house passively online, not yet ready to work with a realtor. (Maybe in another month when life settles down.) In the meantime, if I stumble upon a promising listing, I could be ready to bid pretty quickly.

So here's my beef: Agents who have out of date web sites. Agents who don't return e-mails. Agents who seem like you're imposing on them when you might be a prospective client.

Listen, agents: Having a web site confers responsibility on you to keep it current. Hundreds, if not thousands of people might look at it. It's a reflection of you to potential buyers and sellers, and people will judget you on it.

Earlier this week, I e-mailed a Realtor who had an interesting property on her site. No response. I called her office, which said that she was on vacation AND that the property was "long gone." Fair enough, I know this market is quick. But if you're representing something as available when it's not, you're wasting both of our time. And when you waste my time, I make a note that I will never hire you.

Thanks.

Daniela Deane: Like in any field, there are good realtors and there are bad realtors...The ones you mention seem bad to me. And there are realtors who are incredibly tech-savvy and others who can barely check their email...I think some realtors who aren't that comfortable with the Web pay to get a site done and then basically forget it and never update it...That's why it's worth it to shop around for a realtor who you have chemistry with, who responds to you in the way you want to be responded to...There are so many realtors out there. Work with one you like. There are many good ones.

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Alexandria, Va.: Daniela,

Is the market slowing down?
It seems as if those sold signs are not popping up immediately after house is put one the market, and that several homes which do not seem all that outrageously priced do not sell.

Daniela Deane: It does seem like it's slowing down, doesn't it?? In the summer, when I asked realtor sources that, they all just said, oh, it's summer...But now it's no longer summer. I think I should do a market story in the next few weeks. There does seem to be a change in the air. What have others seen?

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Falls Church, Va.: Thanks for your answer!;
I do think we will leave, but not for another few years. I agree with what other people have told you, though. We want more bang for our buck and that's not what we can find here.
For now, we're renting and trying to accept the fact that this isn't a real estate boom, it's a way of life around here.

Daniela Deane: There's certainly a time and place for renting....I think I haven't stressed that..There are times in our lives when renting is the best option....

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Washington, D.C.: Why can't the person from Connecticut get a "no docs" mortgage? The interest will be higher but that may still beat renting ...

Thanks!

Daniela Deane: Yes, that's why I was suggesting talking to other mortgage people. Thank you.

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Anonymous: I currently live in Woodley Park and am not under any delusions that I can afford to buy there, but I live in fear of being trapped in strip mall suburbs. Any advice for pockets of areas to check out within the District or barely outside? I'm pre-approved for $270K, would love a 2br and am really big on the "quaint" factor and walkable neighborhood shops.

Daniela Deane: In general, look eastwards, my friend....

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Gaithersburg, Md.: Hi: My wife and I bought a house together, then sold it when we split. We divorced several years ago. No, I'm interested in buying my own home. Do I qualify for any first-time-homebuyers programs since the last one I bought was bought with someone else? Thanks!

Daniela Deane: Hi Gaithersburg....I think that if you've bought, even if it was with another person, you no longer qualify as a 1st time buyer...Sorry about your split.

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Falls Church, Va.: I visited my brother in Pittsburgh over the weekend and was amazed at the quality and value of the housing stock. Houses in an nice close-in neighborhood with very good schools (Mt. Lebanon) that sold for $250,000 twenty years ago are now selling in a glutted market for not much more than that. My wife and I could sell our 900-square-foot brick rambler here and move to a house with much more style. Too bad I have one of those government jobs that has no real application outside this area.

Daniela Deane: You've hit the nail on the head! It's all about our jobs!!! That's why our market is like it is....Pittsburgh just doesn't compare as a job center to the Washington area....

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McLean, Va.: Daniela,

We live in the Chesterbrook neighborhood in McLean, it is comprised of modest ramblers and cape cods built in the 1940's and 50's. As is happening everywhere, these houses are being torn down and replaced with larger houses. However, there is a house being built on our street that is gigantic, totally out of proportion with the lot. It is hideous, so much so that people throughout McLean know of it. Supposedly it is within zoning limits, however we know that it is not true. As citizens, how do we combat this? A neighbor contacted our Fairfax County representative to no avail.

Thanks, SPM

Daniela Deane: Hi Chesterbrook....Those houses just make me so mad. And so many times, they're for two people!!! Beyond contacting your local authorities, I don't see what else there is to do...I think a lot of people in beautiful old neighborhoods in this area are feeling exactly like you...Look what happened to that house on Sycamore St. (which isn't that far from you.)...It is bigger than zoning allows, and it's still sitting there...It's for sale now, and anybody who buys it has to shave some house off each side...But it's already been sitting there like that for ages..and who knows how much longer it will..Maybe we should all get together and lobby our local elected officials to do something about the zoning laws in our jurisdictions?

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Washington, D.C.: Just a reminder to Connecticut:

If you have to get a mortgage to live somewhere, you are renting. You're just renting money (i.e., paying interest) rather than the rental property.

Yes, there is some tax advatage to a mortgage, but if you can rent cheaply put some money in some investment account and you'll be just as well off.

Daniela Deane: I'm not sure I agree with your conclusion, but anything to make Connecticut feel better at this stage....

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Manassas, Va.: To the person who is angry at out of date listings on the internet. Break down and get a realtor. When my wife and I began searching the first thing our realtor asked is if we had used the internet listings to research potential properties. After was answered yes, he said the internet listings for the D.C. market are quickly out of date because things sell so quickly. My advice, get a realtor and have them do MLS searches daily for specific areas and prices. There will be a lot less headaches that way.

Daniela Deane: Yes, you make a good point...But that person was complaining more about realtors who didn't answer and whose sites were hopelessly out of date....But yes, you can't find a house on a realtor site these days, I wouldn't think....

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Washington, D.C.: Hi Daniela,

Do you have any thoughts about homes on somewhat busy roads? We live in D.C. and would like to buy, but we are in no particular rush as we have very low rent. After a few weekends of looking, we found a home we like, but it is on a fairly busy two-lane road in Silver Spring. Should we skip it, since it may be harder to resell and time is on our side? Or, does a somewhat busy street not make that much difference? The noise doesn't bother us much; it's the resale value I'm worried about.

Thanks!

Daniela Deane: Houses on busy roads (in the suburbs, I'm talking about mainly) are usually not as desirable as similar houses on quiet streets. Families don't like them because they have to worry about their kids running outside into the traffic, for example. Noise from outside certainly can make a house less desirable too. Most agents would tell you to try not to buy on a busy road, if at all possible. That's what the agent who helped me buy my house in Arlington told me when I was first looking. I'm sure there are exceptions to this rule, but I'm speaking in general.

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RE: Pittsburgh real estate: I think that Falls Church person need to think about what kind of money they'll be getting if they were to sell a Pittsburgh property. You basically will just be paying down your mortgage to get any kind of equity (real or paper!) Prices here are high but if you buy, there is at least some hope that you can count on making some money when you sell (provided it wasn't overpriced when you bought).

Daniela Deane: That's the theory anyway, huh?

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Daniela Deane: Folks! I'm signing off now...I apologize for not getting to as many questions as I usually do today...We have a new format here that took a bit of getting used to. I'll do better next time, which is October 7. Read you then!

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