Real Estate Live

Welcome to Real Estate Live, an online discussion of the Washington area housing market, featuring Post real estate 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.

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Daniela Deane: Hi there folks!! Sorry I'm a few minutes late starting...I'll give you the 4 minutes on the other side! Welcome to Real Estate Live where I unsuccessfully try to hold my exclamation marks down....I've got a lot of questions, so without further wise-cracking, I'll dive in!!!

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Bethesda, MD: Hi Daniela,

I'm doing a market study and have noticed that the Post publishes maps showing the (median or average?) home sale price by ZIP Code. Do you know if this data is available in tabular format from a government or commercial source?

Thanks,

Don Segal

Daniela Deane: Hi Don...Actually we get that information directy from the counties involved and then crunch it all ourselves...Counties have information on sales and the like...Wanna come work here as a number cruncher? Sorry I can't be more helpful....

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Arlington VA: Please, please write an article about the big blue monstrosity on Sycamore. I guarantee you that a lot of people are interested, and not just Arlingtonians . . .

Daniela Deane: Okay, Arlington...I will, in the New Year, though, okay? I'm booked for the rest of this month...Tell me: Are you my neighbor?? The one with the cool old car??

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washigton, DC: I want to buy a place, but I hit a snag in my application process. I just changed jobs (due to a layoff) and became an independent contractor.

Now, no one will touch me with a 10 foot pole since I'm considered a high risk!;

I have excellent credit, a guaranteed contract, and making a lot more money than at my previous job. Any ideas? Can I get a co-signer (I'm a single guy)

Daniela Deane: Really? When did you become an independent contractor? My husband is an independent contractor and what we've had to submit are profit-and-loss statements for him year-to-date, plus income tax returns. I really feel that with excellent credit, proof you're making money now, and two years of returns, you should be able to get a mortgage. Email me at deaned@washpost.com and I'll give you a couple names of mortgage brokers you can call that might be able to help somehow...Doesn't seem fair.

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silver spring: I hear that there is a surplus of apartments, and rents are slipping or at least not going up much. How is that affecting the single family house rental market, especially in the Silver Spring area?

Daniela Deane: Yes, you've heard right...The rental market has changed dramatically from just a couple years ago, when people used to line up at every rental. A lot of renters have taken advantage of the low interest rates we've had and become homeowners. At the same time, more rentals have come onto the market. Many big national Real Estate Investment Trusts (REITS) discovered the Washington area in the past few years (when the rental market was tight) and decided to build here, or build more here. From what I know the single family rental market is also much easier for rentals, although I don't know enough specifically about the Silver Spring rental market to comment on it...I do know a colleague of mine will soon put her Silver Spring townhouse on the rental market!...You guys just expect too much from me, you know that??? (Lots of question marks too.)

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Rockville, MD: How can I find a good, reliable home inspector? My husband and I live in a home his father owns. We want to buy it from him since we've spent a lot of money remodeling it but he wants us to get it inspected first before discussing further. Thanks

Daniela Deane: Check the American Society of Home Inspectors, or ASHI, for accredited home inspectors in your area. Online they're at ashi.com....Be sure to get a licensed, accredited one. Good luck!

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Chevy Chase, MD: Good day Daniela,
Remodeling - what are your thoughts on these 'national estimates' from Remodeling magazine? They estimate around $110K for a 2 story addition in this area, and some local company told me at least $250K!;

Thanks!;

Daniela Deane: Good day Chevy Chase....Well, we're an expensive area, so national estimates I would guess are low for our area...I bet remodeling costs less in Poughkeepsie! (Where is Poughkeepsie anyway? just joshing) Get different estimates before deciding...But your higher figure sounds more like it for this area to me..Remember you can save money by not having the fanciest bathroom in the world and not having the most expensive hardwood flooring they sell and things like that....A remodeling job can be done nicely with good materials, not just TOP-OF-THE-LINE expensive stuff.

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Warrenton, VA: Dear Daniela:

I enjoy your discussions!; I have an etiquette question.

We're closing tomorrow on a FSBO and one of the buyers is an agent. I've been contemplating whether it would be appropriate to give the buyers a nice gift basket, or if that would be unusual. Thank you!;

Daniela Deane: That's a very nice gesture, I would say...Not required, but certainly gracious. And gracious gestures enrich our lives and make us -- and others -- feel good, don't they? I'm sure it'll be appreciated, but again, it's not required...You must be pleased with the price you got, huh!

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rockville, MD: Just wanted to share good news!; I finally did it!; I settled and moved into my new, albeit small, condo!; What I found is that half of it is plain persistence and then the other half is the team of people- settlement attorney, loan officer- you have to work with. Good Luck everybody. As Daniela has said JUST DO IT!;

Daniela Deane: I'm so glad it worked out for you, Rockville! (that definitely deserves an exclamation mark.)...I tell you if the market goes down the toilet, I better run for the hills...You guys are gonna come after me with machetes! I haven't said this in awhile: Remember this is all my opinion, although it is an opinion based on a lot of reporting on real estate (constant). But I COULD BE WRONG...and so could all my SO-CALLED EXPERTS!

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Fairfax, VA: Daniela - thanks for your columns - I love them (especially on the craftsman home - that's my favorite style)!; Can you give me some advice on good "up and coming" areas in Arlington County? Somewhere where it's still possible to get a bargain (low 400s?) Thanks!;

Daniela Deane: Thanks for the compliment, Fairfax. I'm truly honored you're reading. I love that Craftsman style too. Okay, this is going to open up a huge can of worms, but I'll say it: Look in South Arlington....

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Dupont Circle: I have a 2 BR/2 BA condo that I will be selling in the next year. There was another condo in my building that just went on the market; went to check it out in the open house. They had gotten all new appliances, and the showing agent said the new rage is small wine refrigerators in the trash compactor space (these were 1980's condo conversions!;). I'm planning on getting a new refrigerator and dishwasher (and have a new stove) but are the mini-wine things really selling points?

Daniela Deane: Geez....I've seen the mini-wine-coolers (the under-the-counter ones) in new high-end condo buildings, but I've certainly not seen them become mainstream....Perhaps they are selling points, but I wouldn't bother myself...I don't have a wine cooler? Okay, who out there has a wine cooler???

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Derwood, MD: I may have an opportunity to move out of town for a promotion. (If I do go, I'll still read you online. ;-)

I started researching real estate prices online. Anyone who thinks the DC real estate market can't go much higher only needs to look at the prices in the San Francisco Bay Area. Lordy!;

Daniela Deane: Thanks for sharing, Derwood...The truth is that even though prices have risen dramatically in this area, Washington is still below many other large American cities, like New York, San Francisco and L.A....That's one of the reasons a lot of people feel there's still upward potential here. A question: Are you the Derwood of many chats? Congrats on your new job!

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Washington, DC: What is South Arlington? Zip code? Boundaries?

Daniela Deane: Okay, folks, I'm throwing this out to you! What is South Arlington?? Hmmm...Could it be the southern part of Arlington County??? which is a county right by the District...? That has more than one zip code...Washington, go to the gas station or bookstore right now, without delay, and buy a friggin' map! Before you start looking at property, I beg you..Now, here's a question you all love: Why is South Arlington generally cheaper than North Arlington!! Ah, I'm running for cover!

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Washington, DC: I have a good credit score of over 775 and am the primary wage earner. My husband earns a lot less and is under 700. Does only his score count?

Daniela Deane: Gosh no...as long as both of you are applying for the mortgage. Have you heard of women's lib, Washington? We're people now too!!!! And we get mortgages! And buy houses! And have good jobs! And high credit ratings! And crack stupid jokes! Welcome to the 21st century!

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Arlington, VA: We're taking the dive...we're going to settlement in 10 days on our first investment property!; How would you say the single family rental market in N. Arlington is doing right now? I'm getting tense...

Daniela Deane: Not as good as it was. Sorry. The key to renting quickly is price, price, price. (i.e. if it's taking too long to rent, PUT THE PRICE DOWN!) Price is king in real estate.

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Forest Glen, MD: Please help, my husband and I are so confused. We are planning on buying a new house next year, the down payment will be from equity built up in his current home. How does the timing on something like this work? Do we have the closing from the current house in the morning and the closing on the new house in the afternoon? What if the first house doesn't sell as quickly as we would need it to?
Finally, what happens if we decided to have a new house built? Are we expected to come up with the down payment now or just some sort of deposit?

Daniela Deane: Need to sell your house first...that's how you get the money, right? (Okay, I'm going overboard today..You're all going to hate me soon.)...OR ...here's another consideration..Get a home equity line on your present house, pay the deposit with that (you can get the line set up and use it whenever you want-- like two years later even.). And keep both. And be landlords. And blow your brains out..(Just kidding! I love being a landlord!....uh..Not)

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Arlington, VA: On a RELATIVE basis, the difference between North and South Arlington is comperable to Potomac and NORTH Potomac, NO? Or perhaps some would say the relative difference is more like NW DC vs. Anacostia...

Daniela Deane: I'm not touching this...I've been there too many times before....One of your examples has a very wide differential though. At this moment anyway.

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re: wine cooler: get real. yeah, lots of high-end homes have them, but if YOU don't plan on using it, don't include it in your remodel "just for resale value." Plenty of us out here who are into high-end homes that aren't wine fanatics and are happy keeping a bottle of plonk in the fridge. Upgrade and remodel your home based on your own living requirements. I'm not spending money on something I won't use, that will eventually break, and take up valuale kitchen space for someone else in the future when I MIGHT sell who MIGHT want it. Besides, the techonology changes all the time - you won't keep up.

Daniela Deane: More on wine coolers. I agree with this poster...I hate to tell you this: I'm drinking mountain Chablis out of the box, folks! Do wine coolers have room for big boxes?

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Washington,DC: Another about rentals, with all the 'luxury apartments' popping up and what you said about the lowing rental demand, do you think that the 'luxury apartments' will lower their rents (hopefully) or just go condo? The little people need some help here!;!;!;!;!;!;

Daniela Deane: Many will go condo and are in the process of deciding that right now. Others will try to keep base rents high by offering one-time incentives, like one and two month's free rent...A lot are doing that already. So the renters gets two month's free rent then pays the high rent for the rest of the time they're there! That's how many rental developers do it.

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Burke, VA: How can you determine how much rent to charge? I live in a townhouse area, but I don't know any that are current rentals. If I just look for any "3 bdr, 2.5 bath" in Burke, it may be quite different than mine. I want to break even, but not cheat myself either.

Daniela Deane: This is how I do it: Look at our very own Washington Post classifieds on Sundays for a few weeks...Go see some of the rentals listed to see how they compare to yours in terms of location (proximity to Metro, bus, big highways) and condition (new appliances, old appliances, new carpet, new paint, etc). Then decide on that research...Just a hint: I did that for one of my mom's condos (she's in assisted living and if you want to believe this, I manage her condos...no wonder I'm crazy). I rented the place to the first renter who called and came...I think I should have been about $50 higher...Oh well. I'm trying not to beat myself up about it...

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Springfield VA: Is it a good time to sell the house during Christmas or winter time? I need to sell my 22 yrs old, 3 levels, 2 bedrooms 1.5 bath, walkout basement and back to woods townhouse in Springfield.Do u think it is easy to sell the small house like this or wait till spring time next yr? What is the price range for this kind of house in Springfield? Thanks for your time and consideration. I really appreciate it.

Daniela Deane: The holiday season can be a good time to sell. As one agent once said to me, do you want to be the only cute girl at a dance or one of several? The buyers who are out there during the holiday season (and the sellers for that matter) tend to be motivated, i.e. they want to make a deal. That's why they're out there looking when they could be flooding the malls buying junk they don't need. You can also decorate your house beautifully, which can add to that feeling of home people want in a house...But yes, most sellers wait until the spring market, which some agents are telling me starts after the Super Bowl, so earlier than you would think....Does all that rambling help at all?

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Washington, DC: My husband and I recently got married and need to move to a larger place. We're currently in my one-bedroom apartment in Woodley Park, paying only $900 a month. We're both from the West Coast, and may move back there in 1-4 years, to be closer to family. We're debating whether we should rent a place, or buy. It seems we could buy for the same price as renting, and have enough for a down payment. But we're concerned about the high prices of the current market, and selling in a few years. What would you advise?

Daniela Deane: People know that my usual advise is buy rather than rent...BUT if you're truly leaving in a year, then I would say rent. Real estate is a long-term hold, it's not a get-rich-right-away thing...(Although the last few years, homeowners have seen outrageous appreciation just in a year or two). Generally agents say you have to hold a property 4-7 years, considering all the costs associated with buying and selling. If it were me (and it's not), I would buy and if I had to leave in a year, rent. And if I was here 4 years, be happy ... But again, that's me. NOT YOU.

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Falls Church, VA: Inspire me, Daniela. Let's say you (I) had the East Coast to choose from, from Vermont down to Virginia, and wanted a house with land (2-20 acres) and had a budget of 250-500k (wide range, I know). Scenery and less traffic preferred over city life and action. Jobs will take care of themselves.

Where would you (I) move?

Daniela Deane: Wow, what a question...What can I say? I live here and work for the paper that's here...So I guess my choice at some point was here, wasn't it? (lots of considerations went into my choice, including my elderly parents). To get 20 acres of land anywhere around here, it's basically not around here...but out in West Virginia or something....I love New York City, but Donald Trump may not even own 20 acres there...Boston's cool, but that's expensive..and cold...Prices in the South tend to be cheaper...Raleigh? Others have any suggestions?

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MD: no need to post, but just wanted to say you're a good daughter for taking care of your mom's financial stuff now. Asst. living eats up a ton of $$ and every little bit helps, but figure the value of getting a place rented in 1 renter is DEFINITELY worth $600 ($50 a month for 12 months). Look how much time (and aggrevation) you saved. That has a cost too.

Daniela Deane: Gotta post this...Frankly, it's hard taking care of all my mom's financial -- and emotional --- needs (this is way too much information, I know) but I guess it's worth it (haven't decided if it is really)...Anyway, you're so right on your calculations, a lesson for all budding real estate investors and landlords...Sometimes the bird in hand looks awfully attractive...I couldn't cope with schlepping there a hundred times frankly, not to mention the cost of more ads...And ohmigod, assisted living costs are INCREDIBLE..And I would guess, only going to get worse as all of us age...(Not a pretty picture).

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did I read you right?: You said to Derwood that there's still price "upward mobility" here? Good Lord, we can barely afford things here as they are.

Daniela Deane: Yes, you did read me right, I'm afraid....I had coffee yeseterday with a very smart guy who runs a market research firm here and his assessment and that of many others too, is that prices will continue to rise here, albeit at a much slower pace than they have been. People still see prices rising?

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Warrenton VA: What is an English Basement?

Daniela Deane: Think a rowhouse with the stairs going down from street level to an apartment at the bottom of the house....

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Wash DC: Daniela

You were a little flippant with the Forest Glen, MD question. She really sounded like she didn't know what to do. So...

Generally, yes, you need to sell your house first before you can close on the loan on the next house. But you can, many times, get a bridge loan. If you have a contract and a closing arranged for the first house, you can get a bridge loan for the period after the closing of the second house until the closing of the first house. This happened to us.

Of course, you can go the home equity loan route too, as Daniela indicated. It gives your the deposit money and possibly the downpayment.

Talk to your relator and mortgage banker!;!; That is what they are there for!;

Daniela Deane: Sorry...I knew someone was going to jump on me soon. You all have been so kind so far....

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Washington, DC: We're looking to buy a house in the $400-$450k range. I just started looking into closing costs. Am I screwing it up or is it really going to cost about $14k in Maryland v. $8k in Virginia?????

Daniela Deane: Closing costs run about 3-5 percent of the sales price. Check out my recent story (on this site) on How Much Is This House Really Going to Cost? It's an eye-opener. It was for me too.

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Arlington Village: If CPRO has its way and "revitalizes" the Columbia Pike corridor, then South Arlington will be just as white as North Arlington by 2010.

Daniela Deane: Columbia Pike is a very interesting area and one I particularly like..That's a good place to look. So much is planned there. And it's got a lot of charm already. Thanks for pointing out a specific area.

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Places to Live - : Upstate NY!; Friends (who work at Syracuse University) recently bought a 4 br 2.5 ba house, (w updated kitchen) on 2.5 acres on a lake for . . . $189,000. They think we are nutz to live here

Daniela Deane: Wow...That does sound nice.

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Washington, DC: Re South Arlington. I think that officially, South Arlington is everything on the south side of Route 50. I noticed from the chart in Saturday's Post that South Arlington had the second most expensive zip code in the County, so it's not all cheap.

Daniela Deane: Yes, it's not all cheap. That was a stupid generalization, of which I make many on this chat, typing as fast as I am.

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washigton, DC: I'm the new independant contractor. I've been a W-2 employee for 8 years. I've been an independant contractor for 3 days. My mortgage lenders (USAA and State Department Credit Union) have said they need 2 years of independant contracting.

What's frustrating is that I was approved for a loan a year ago, but I just wasn't ready to buy a place.

Daniela Deane: Ah, 3 days...I guess that's the problem, huh? You have no track record in independent contracting yet..Do you have any freelance contracts with anyone, any clients that are going to use you regularly that could provide a letter for you, any leads like that?

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Washington, DC: Regarding Chablis in a box.

I now know I don't want to live in South Arlington.

Daniela Deane: I live in north Arlington, you wise-cracker! And you know what: That Chablis in a box isn't half bad...And I'm Italian, darn it!

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Alex, VA: re: North Arlington vs. South Arlington

Well, duh. It's a race and immigrant thing. Wealthier white people live in North Arlington, while south arlington more populated by immigrants who need more affordable housing.

Daniela Deane: ........

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Washington, DC: The reason I ask about my husband's FICO is that on another online chat someone said the mortgage lender will base the interest rate on the lower of the two scores, rather than an average or other formula. Hence, if true, only my husband's score would count. I am sorry to see you assumed this was a woman's lib (or lack thereof) issue, rather than a prudent question coming from a woman who makes more than double what husband earns.

Daniela Deane: Okay, I've managed to irritate everyone today....I was just trying to be funny....From what I know, your salary..and your FICO score...is counted as well as your husband's. That's what's always happened to us. My husband took a long time to build up credit here because he's British and an independent contractor so his score is much lower than mine (mostly because of longevity of credit, which was nil). We've always managed to get a loan with a good interest rate though. I'm glad you're earning a good salary. I guess that's what women's lib is all about, huh?

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Warrenton, VA: Yes, I agree with you about nice gestures!; They tend to have a domino effect. Yes, we are pleased with the price we got and grateful the property sold in a few weeks. We used a local 'real estate by owner' company and paid about $150 to get listed in the MLS. I'm assembling the gift basket now!;

Daniela Deane: That's nice. I think you should do it, considering what you paid in fees...Wow. You're an inspiration to us all.

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Fairlington, VA: The schools in South Arlington are improving in response to middle-class political pressure. See today's Post for Wakefield High School's improvement in AP participation and exam scores.

Daniela Deane: Good point. I love Fairlington, by the way. My best friend in third grade -- Becky Rios -- lived there and I spent many an hour playing there. Gosh, is Becky Rios, a sweet Uruguayan girl, going to come out of the woodwork now? I'll have a heart attack.

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South v. North: It is not race or immigrant thing. It is the Metro - plain-n-simple. One has it and one does not. It is more bus snobbery than anything else. Hey, I admit it. I hate the bus.

Daniela Deane: More on the north-south Arlington debate, which always gets Arlingtonians going...

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College Park, Md.: I just bought my first house, and I couldn't be more thrilled with it. My question is, how do I stop looking at real estate prices in my new neighborhood? I can't stop thinking maybe I paid too much.

Daniela Deane: Don't worry. Be happy! (that's a cliche, right?)

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Washington, DC: Italy makes some great wines. Check out the last crop of Tuscan reds. Don't blame Chablis in a box on your people!;

Daniela Deane: You guys are all pretty high-falutin'...Chablis in a box is better than some of the "loose" wines I used to buy in Italy, i.e. in those big demi-johns...Now this is a really stupid discussion...

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Adams-Morgan, DC: Arlington Village was really saying that the Columbia Pike efforts are an effort at ethnic redistribution to a more Anglo population. A sensitive subject in my neck of the woods as well.

Daniela Deane: More on north-south Arlington.....or Adams-Morgan...or whatever.

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Wash DC: ummm - there's a reason you can get a ton of house for little $ in Syracuse:
YOU LIVE IN SYRACUSE!;

Daniela Deane: ...Syracuse-bashing! Rather than Chablis-in-a-box bashing!

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Burke, VA: Thanks for the rental pricing question. This is sort of related. I know about the $250K limit in "free" capital gains if you live in the house for 2 of the last 5 years, but does this mean 2 years from move-in time . . . or does re-financing start your 2 years of ownership all over again? Am I making sense?

Daniela Deane: No, re-financing doesn't have anything to do with it. It's living in property an AGGREGATE 2 of the past 5 years...

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Washington, DC: For the person needing inspiration, move to Delaware!; Think about it, it's close to DC, Philly and NYC, has nice beaches, and no sales tax. There are some lovely rural/farm areas as well as cities like Wilmington.

Daniela Deane: Delaware, rather than Syracuse....

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Rising Prices - 22207: 3 BR 1Ba house on a slab (across from monster house, btw) was on the market for $399,000 - Sold sign went up last weekend, and it WAS on the market for 2 weeks, but consider: the house RIGHT NEXT TO IT, and identical in all ways, sold less than a year ago for $294,000.

Daniela Deane: Thanks for sharing what you've seen in the trenches...

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SOUTH Arlington, VA: Um, we have Metro, thank you very much - I walk to the Pentagon City station every day.

And I have to say, as someone who thought I wanted to buy in North Arlington and ultimately bought in South Arlington, if you write off our side of Route 50 without even looking around, you are making a mistake. Granted there are sections with aren't, um, a quaint as some in North Arlington, but there are definitly pockets where anyone could be quite happy (ever visit Arlington Ridge??).

Daniela Deane: Yes, you do have Metro...I'm just posting all your musings, so you can look ridiculous rather than me!! Yey! This is fun!

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Arlington Metro: Actually, N. vs S. Arlington isn't simply a Metro thing. There's Metro in Crystal City and Pentagon City. Those are still cheaper than North Arlington. Of course, it's more condo canyon there (but not entirely).

Housing stock is arguably a little nicer in North Arlington.

Daniela Deane: More on Metro, housing, Arlington (it's that county right next to D.C...on the left side of a local map...)

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Daniela Deane: Folks, I've made up my four-minute time lag...and I gotta go. Plus I'm offended that nobody gets my stupid humor and gets mad at me...(No, I'm not! I don't really care!)...My next show is January 8, because of the all the holidays..Have a great great Christmas, Hannukah, or whatever you celebrate. And please come back again on January 8...I'll be nicer then...(maybe.). Decorate your properties for the holidays...It makes you feel good about your homes...And let's hope we don't get much snow this weekend...I love you all. Stay safe.

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