“I’ll know it when I see it.” Buyers should come into the home buying process with a list of must-haves and wants. Buyers that want to be taken seriously get preapproved. This helps to expedite the process of making offers and also to pinpoint the price range of what the buyer can afford.
Stuart and Will Nesbitt discussing real estate related matters in the office
“I’m not in any hurry.” Realtors don’t expect to rush you through the home buying process. At the same time, they don’t want to waste their time with a client that doesn’t have any firm motivation to make offers or to buy.
“I’m not going to give it away,” or “it was good enough for me for 30 years, it ought to be good enough for a buyer.” Stiff prices based on feelings can result in a home with a price that will never sell. Realtors suggested prices factor in market value and current conditions.
“Let’s test the market at this price.” This usually means that the price is too high and that the house will set on the market until it gets stale. Because it the home sets in the market for too long, people start to think there’s something wrong with the home and as a result the home ends up selling for less. Realistic prices get realistic offers.
“My sister (brother, cousin, friend,) is a Realtor in another state and she told me that my house would be worth $XXXXXX.” This is a bad idea because no one, including another Realtor, can advise someone about real estate pricing in another state.
“Let’s toss this low-ball offer in to see how serious (or desperate) the seller really is.” A common effect of a low ball offer is rejection and no counter offer. Low-ball offers just offend sellers and result in the seller not taking the offer seriously. Realtors can help generate reasonable offers that will progress the home buying process.
“I’ve bought and sold lots of homes, so I know real estate.” Each real estate transaction stands alone because of several variables (e.g. property’s location, property’s condition, and market value.)
References:
Werner, N. (2013, November 19). Things your REALTOR doesn't want to hear.... Things your REALTOR doesn't want to hear.... Retrieved November 22, 2013, from http://normwerner.realtytimes.com/advicefromagents1/item/26647-things-your-realtor-doesn-t-want-to-hear
A landlord asks us:
Here is a view of the courtyard at the Royalton
I should know the answer to this question but does the 2 year lease actually assure me of rental income for that time period? In other words, if the tenant breaks the lease after 12 months do I have any financial recourse/protection or do I simply take my losses and start looking for another tenant?
Yes . . . and no.
The way our leases (and most leases in the Commonwealth of Virginia) are written, the lease is structured so that the tenant is agreeing to pay a large sum of money for a fixed period of occupancy. That large sum is then divided into monthly payments.
For example, if the monthly rent is $1,000 then a tenant is promising to pay $12,000 for a one year lease. For a two year lease of the same property the tenant is agreeing to pay $24,000 but will make monthly payments of $1000. The promise is to pay $12,000 not to pay $1,000 per month and this is an important distinction in the law because it means that if the tenant breaks the lease he is still obligated to pay the entire lease amount.
But here's where it gets a little complicated. If the tenant breaches his contract and defaults on the lease, then the landlord can sue and recover the entire amount left on the lease from the tenant. At the same time, the landlord is obligated to attempt to mitigate his damages. That means that if the tenant does breach the lease the landlord must try to find a replacement tenant. However, the tenant is responsible for all the landlord's damages. For example, if there is an expense for finding a new tenant, the old tenant must pay that cost. If there is any vacancy between the tenants, the old tenant must pay that to cover the landlord's loss. And a court will back the landlord up to that point.
However, if and when a new tenant is identified then the tenant is off the hook for any further debt which may be left on the lease. The court will not allow the landlord to let a property sit vacant just because the tenant breached a lease. So the tenant has an obligation to find a new tenant and to minimize vacancy and to pay for any vacancy. But the landlord has an obligation to mitigate his damages.
In theory the tenant has obligated himself to pay two years of rent, but in reality things happen and we already have established practices to extract a tenant from a lease.
For more information or to set up an appointment call Nesbitt Realty at (703)765-0300.
Here's an email I recently sent to a landlord who has questions about our property management services.
As promised here is my detailed reply. I'm numbering my answers so you can compare to your questions below.
1. We locate tenants with a multi-pronged approach but we primarily attract tenants through the Multiple Listing Service and one of our many websites. We do a background check on our applicants to learn credit history, employment history, income and criminal record. We report the results to you along with a positive or negative recommendation depending on what our investigation uncovers.
Listing a property for rent is a separate service apart from property management. Some landlords only use us to list property for rent. Some landlords only use us for property management. Most landlords do both. Each time the property is listed for rent there is a fee to the landlord.
Our structure is a little different from most companies in that we explain where the commission goes and then let you set the fee as you wish. We make a recommendation for how much the landlord should pay, but allow the landlord to set the fee at any level. I think this makes more sense than setting an arbitrary number. I would expect by glancing at your property online you will probably want to pay at least one half of one month's rent to list the property, but you may wish to pay as much as three-quarters of a month rent. I can explain this at length when you contact us but in short some landlords sometimes pay higher commissions to attract more attention from agents.
In subsequent years, if the tenant stays on we don't need to market the property and you won't have to pay a commission. When the tenant moves on we'll need to list the property for rent again. Nearly every landlord is looking for a longer term renter for this reason. The minimum lease we recommend is 12 months. In the rare event that a lease is less than 12 months, we pad the rent to recoup the additional expense to the landlord.
2. Our brokerage currently manages about 100 properties. We are a family business, not a large corporation. Our landlords and tenants know us personally and we know them personally. We do have a team approach. For example my wife handles the processing or rent checks and the preparation of monthly reports. My son often helps with dispatching handymen and with move-in and move-out inspections. But no matter who you talk to the buck always stops with me and no matter who you talk to we generally all know what is going on with our properties.
Currently, we only have one member of the foreign service as a client but we have a good number of clients who are overseas. Some of our overseas clients are high-ranking military, intelligence service agents, foreign nationals who have returned to their home countries, diplomatic persons and I can even call to mind a couple of academics who are in the wilds doing field research. We are well-accustomed to the challenges of dealing with landlords who might be 8 to 12 hours different in time zone and who may or may not have regular access to a phone.
3. I do not own any properties in 22206. We sold most of our own Northern VA rental properties a few years ago. Even then our properties were not in that zip code. We still have some property that is out of the area and for that we rely on a property manager. In fact, the only rentals we've ever had serious problems with are the properties which we owned and personally managed.
As an aside, without effort, I can call to mind 3 properties which we manage and that are in close proximity to your property. Two of these are condos and one is a single-family residence. The SFR is owned by an Indian technology guru who returned to India to raise his kids. One of the two condos is owned by a recently retired judge who move back to his home state. The third property is owned by a local attorney who does not want the hassle of managing his property. There may be a few more in your neighborhood, but those are the three that pop in my head.
4. We can inspect as often as you like, but we generally only inspect the property once per quarter. We do not do the inspection ourselves. Instead, we send a handyman who will check every system on the property and write up any deficiencies along with any recommendations. There is a small fee for this inspection ($35 or so) to cover the handyman's time. But we do not charge anywhere near 10% of the monthly rent. Our rates vary depending upon the property, but we will charge 6.5% of the monthly rent for a property such as yours.
5. We use a software called Rent Manager to track our landlord's expenses and accounts. I will copy this email to my wife Julie who can send you and example report on Monday.
6. We do not charge a fee when the property is vacant. We are only paid when you are paid. Money in general does not flow from you to us. Rather it flows from tenant to our company and then to your pocket. Rent is due on the first of the month. Most of the tenants pay sometime between the 29th and 3rd of the month. There is a grace period until the fifth day of the month. If rent is not received by the fifth of the month we charge a late fee to the tenant and swiftly ramp up to begin the eviction process. We quickly train any tenants to understand that we do not play around with rent and deadlines.
We pride ourselves on how quickly we get the money to our landlords. Some companies take 10 to 15 days to process rents. We usually deposit money into the landlord's bank account within 24 hours of receiving payment. Because of the extensive background checks mentioned above, we generally don't have much problem with unpaid or late rents.
7. Tenants contact us for repairs and we select the most cost-effective and prompt solution available. If the repairs are less than around $250 we generally do not get bids, we just make the work happen. We allow landlords freedom to set their own notification level. For most condos we recommend a $250 threshold. For most townhouses and single-family homes we recommend $350. However, yesterday a newly-made landlord asked that we set that number at $1. (Yes. ONE dollar.) We will abide by her request. A few of our busiest landlords don't want to hear about bothered by anything less than $1k.
We do not "mark-up" any maintenance requests. We do not charge anything extra to manage repairs. Maintenance is not a profit center for us.
8. Property reports are usually delivered just a few days after rents are processed.
Our clients like us because we are very responsive to both tenants and landlords. We always seek out the most cost-effective solutions for our landlords. We are not an enormous company. You can call at any normal hour of the day and most likely reach the principal broker (me). If you call at a strange hour, you still might reach me. If you don't reach me, I'll call you back promptly. Most of our competitors charge higher fees than we charge. So we believe that our combination of price and service is very tough to beat.
I look forward to meeting you and thank you for the opportunity to be of service.
Real estate investing is always good and sometimes it's red hot. When it's hot dozens of real estate seminars begin rolling across the country and thousands of people spend thousands of dollars for investing education. It's startling to learn that of all those thousands of eager folks who attend these seminars only about 5% buy…
Inlet Cove is alongside Route 1 This neighborhood of townhouses is near grocers and eateries Inlet Cove is close to Fort Belvoir, Alexandria, and Potomac Mills shops, in the city of Woodbridge Interior to these properties are multilevel Inlet Cove is serene
Home owners who can’t or don’t want to sell their homes in today’s market but must move should consider renting out the property. Obtaining a professional property manager is a good first step. Professional property managers charge 7 percent to 10 percent of the monthly rent in many areas. Nesbitt Realty is often cheaper than…
Property managers can come in the form of a person or a company. Either way, what they do can be simply summarized as: getting paid to oversee a real estate property on behalf of the owner. The responsibilities of a property manager include (as applicable) dealing with the property’s tenants, facilitating repairs or improvements necessary…
If you are a landlord, then you need a company you can trust to handle your operational responsibilities. Nesbitt Realty and Condo Alexandria have the experience you want in your property manager. Will has been a landlord for over 20 years and is a full service broker trained in property management. Nesbitt Realty and Condo Alexandria offers full service management for condos, townhouses and single family residential properties. Condo Alexandria is dedicated to maximizing your profits without sacrificing on service. Here's some of what we do for you:
Lease Administration
Our brokerage will prepare your lease, find and screen tenants.
Rental Servicing
There are a lot of annoying details that landlords must deal with: unless they have a property manager. Our team handles billing, collecting, processing and servicing your rental accounts, staying on top of your cash flow.
Rate Analysis
Nesbitt Realty and Condo Alexandria will analyze the market and find the rental rates that will make you the most money.
Building Maintenance
Condo Alexandria and Nesbitt Realty keeps your properties in top operating order.
Marketing
Our strategy is designed to keep your occupancy and tenant retention rates at maximum efficiency.
Vendor Negotiations
We only deal with reputable handymen, landscapers, appliance repairmen and service people. We'll negotiate you best deal and keep your rental operating smoothly.
For more information or to set up an appointment call Stuart at (703)765-0300.
Home contractor scams are often on the rise in the spring, and home owners should take steps to make sure they aren’t duped.
The scams often target the elderly, with scammers offering to complete yard or household work for money up-front and then never completing the work after the payment is collected. Or, contractors may complete the work but then attach a higher price than was originally agreed upon.
Several reports of home contractor scams across the country have surfaced in recent weeks. For example, a 77-year-old man in the Philadelphia area was reportedly scammed into paying for a roof repair, which he later discovered was completed using a useless, tar-like substance. In another case, an 83-year-old woman paid a contractor $4,300 and then never saw him again.
"In many cases, we see a person posing as a licensed or reputable contractor, and all checks out until the first payment is made to begin the job, and then the subject disappears,” says Tom Burnett, a spokesman for Wymoo International, a detective agency based in Jacksonville, Fla. “We see fake business cards and web sites being used, and criminals can assume the identity of a real contractor, register a company or use an alias. The goal is always the first payment."
Burnett recommends contacting the Better Business Bureau to check for any complaints against the company or contractor, asking for references and then actually contacting those references, and asking for the contractor’s license number to verify with your state’s Department of Professional Regulation or the contractor’s state license board.
"If someone offers to do a really quick job on your house for a really low price, and it sounds too sound to be true, it probably is,” says Amy Matthews, a spokesperson for Home Advisor, an online site that matches home owners with licensed home contractors.
Source: “How to Spot a Home-Contractor Scam,” U.S. News & World Reports (April 24, 2013)
Julie Nesbitt
Julie Nesbitt knows the back trails and by-ways of Northern Virginia real estate.
Established in 1974 with a mission to reduce homelessness, increase community support and promote self sufficiency, the Good Shepherd Housing and Family Services is operated by a multi-denominational board of directors and staff managing over 70 housing units. Good Shepherd Housing and Family Services is located in the Mount Zephyr Business Center at 8305 Richmond…
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Marco: Question for you--if you had a choice between investing in a small house, or investing in a condo, which one would you choose?
Will Nesbitt: As a rental, I might do a condo, if it's a well-managed association, because there are few hassles. But it's more complicated than that. Feel free to call me if you want to download the full lecture.
Marco: Here's the situation: My parents are retiring and need a place to live. They'd like to live in Northern Virginia. They have a sizable down payment but bad credit, so we have offered to buy them a little house. We're somewhat limited in what we can get because of Mom's health issues---they need a place that has at least 2 bedrooms, 2 baths, all on one level and wide hallways because she will eventually be in a wheelchair. I think they'd be happier in a house because they haven't lived in an apartment ever. But we're having a hard time finding the "right" house and they're on a deadline to move out of the parsonage they're in. They were looking at a condo in an outlying suburb, but Paul doesn't want to buy a condo. He doesn't feel like it will keep its value.
Will: That's something that comes up from time to time when you talk about purchasing a condo. There are no hard and fast rules that apply to all condos everywhere, but I'll share a few of the lessons of my experience.
Why are you buying a condo? The Location or tbe price?
Location. Yes, we've all heard "location, location, location" when it comes to real estate, and of course most of what you've heard is probably true. But here's my take on it when it comes to valuing a condominium property: if the property is in a highly desirable location the property will hold its value. There are only so many places to live within walking distance of a Metro in Northern Virginia. Until the day people stop using the Metro those properties will retain a measure of demand. Condos on the perimeter, condos at the periphery, condos that entice the buyer with a low price, won't keep pace with increases in other communities and worse yet, can lose value. So ask yourself is, is the appeal of this condo that has a fantastic location or is the appeal that the condo is cheap?
Lesson: If the price and not the location is the primary driver in the purchase, then this condo might not be a good investment.
Management. Condos are managed by an all-volunteer board of directors elected by the community. Some boards are thoughtful, logical, practical and deliberate. Some boards are incompetent, petty, well-intentioned or corrupt. Take a hard look at the condominium documents before you buy your condominium. If you see that the board has repeatedly directed large amounts of funds to the same contractor you might want to dig a little deeper. If you see that the board has repeatedly spent money on frivolous expenses, that might give you reason to pause. If the board has just authorized a large contract for debt to pay for bills the association cannot afford, that might give you reason to move on to the next opportunity.
Lesson: The condominium management can make or break the community.
Condo Fee. Let's start with this premise: every property owner everywhere pays a condo fee. This is true once you realize that utilities and building maintenance are condo fees. An owner of a single-family home might pay zero condo fees for 10 months and then pay a $15,000 condo fee for a roof repair. But a well-managed condo association puts money in reserves to prepare for future problems when they arise. A condo owner doesn't get bogged down in details of property management, but a home owner usually spends money more efficiently than a democratically elected board.
Lesson: Condo fees are not a problem. Poor management of maintenance and utilities is a problem no matter if you have 1 member or 1500 members in your association.
Bottom Line. "Location. Location. Management." If your property is located in a less than desirable neighborhood, don't expect the property to appreciate. (That doesn't means the property is a bad-buy for you or for some people, it just means don't count on appreciation from this investment.) You can minimize your exposure by picking properties that are in highly desirable locations, even if they are smaller or more costly per square-foot.
But when it comes to condos, property management is almost as important as location. A poorly management property can deteriorates or can have high condo fees, or worst of all, a poorly managed property can have both a poor condition and high fees. Nothing will kill your value faster than condo fees which are not justifiable. You can minimize your exposure to the risk of management incompetence by purchasing in condominiums with minimal amenites, no elevators, common areas that are open to the elements, etc.
Homeowner's Association or Fee Simple?
Benefits of No Association
Absence of monthly homeowners or condo fees
Less stringent rules and regulations
No homeowners or condo association that can impose restrictions without your consent
Fewer parking restrictions and fees
Homeowner Association Benefits
No need to save money to cover what condo fees will cover:
Roof repairs/replacement
Common area repairs
Yard Maintenance
Maintenance, paving, and plowing of the driveway, sidewalks, and curbs.
Siding and gutter maintenance or repair
Some have controlled access
On site community amenities from club rooms to pools and exercise rooms
Maintenance of Common Areas
No "surprises" from neighboring "improvements"
For more information or to set up an appointment call Nesbitt Realty at (703)765-0300.
Property management is a business in and of itself. If you want to invest in real estate, but you don't want to be a property manager, the solution is really quite simple: employ the services of Nesbitt Realty. Our property managers are experienced individuals who will manage the day-to-day operations of your property. We manage residential properties, multi-family properties and even homeowners and condo associations.
Amin & Will in Lowes
A big value-add provided by your Nesbitt Realty property manager is "separation". This to say, your Nesbitt Realty property manager maintains a level of separation between the landlord and the tenants and the property. As you may already know, it's important to invest in real estate without emotionally investing in tenants or property. Your Nesbitt Realty property manager helps ensure that you always make the best decision for your family, rather than making the best decision for the tenant's family.
So, your Nesbitt Realty rental property manager serves as a buffer between the owner and his tenants. Nesbitt Realty can help you find tenants, handling repair projects and maintenance, oversee improvements, collect rent, and even pay some expenses and taxes. The specific tasks we handle vary based upon upon the needs and wishes of the property owner.
Nesbitt Realty Property Management also handles commercial properties such as office buildings, freeing the owners from the day to day responsibilities. Additionally, a competent Nesbitt Realty property manager gives you protection from certain liabilities.
Crunch-time processing rents!
Nesbitt Realty usually charges a percentage of the rents collected. Every aspect of Nesbitt Realty property manager's responsibilities will be outlined in a contract signed by both Nesbitt Realty and the landlord. This agreement details financial responsibilities and specifies the types of financial reports the landlord can expect.
Your Nesbitt Realty property manager will stay current on new laws and condo regulations which may be relevant to your situation. Nesbitt Realty Property Management takes a lot of the burden off of owning rental real estate. Most Nesbitt Realty property managers are themselves landlords. They know your needs.
We appreciate the opportunity to serve and thank you for considering us to manage your rental property. We promise to give you our best effort every single day. We strive for perfection. On those very rare occasions where we make a mistake, we move swiftly to correct our errors and make the damaged party whole.
Learn more about what we do and the services we provideTo speak with a real estate professional who is concerned about your requirements, call us at (703) 765-0300.Julie and Will Nesbitt pause from property management to take a quick picture.
For more information or to set up an appointment call Nesbitt Realty at (703)765-0300.
Recently a person pretending to be a rental applicant tried to run a scam on a property we manage. They hoped to scam the landlord and Nesbitt Realty. With increasing reports of real estate scams worldwide, here are some ways you too can avoid being caught up in fraud.
Make sure all parties are who they say they are. Have an out-of-state party provide a photocopy of their driver’s license or passport that has been notarized. If someone alleges to represent an embassy or a large corporation, afford them no less due diligence that you would any other renter or buyer.
Will Nesbitt is the principal broker of Nesbitt Realty.
Verify signatures. Compare the signature on the real estate contract to other signatures on their driver’s license, passport, the original sales contract, etc.
Double-check the documentation. Make sure none of the documents have been altered. Inspect originals whenever possible. Get certified copies from a title company.
You select the professionals. Require the out-of-town party to use a real estate professional, attorney, or title company of your choosing.
Require a face-to-face meeting. The safest way to ensure that they are who they say they are is to require that they show up at closing.
Rely on the professionals. If it all possible, don't do it yourself. Let a brokerage like Nesbitt Realty handle all the details.
Nesbitt Realty will strive to make the sales process as easygoing and stress-free as possible.
For more information or to set up an appointment call Nesbitt Realty at (703)765-0300.
Julie Nesbitt
Property managers work for landlords to manage the day to day operations of rental properties.
Lease Administration --- Nesbitt Realty will prepare your lease, find and screen tenants.
Rental Servicing ---There are a lot of annoying details that landlords must deal with: unless they have a property manager. Our team handles billing, collecting, processing and servicing your rental accounts, staying on top of your cash flow.
Rate Analysis --- Nesbitt Realty will analyze the market and find the rental rates that will make you the most money.
Building Maintenance --- Nesbitt Realty keeps your properties in top operating order.
Marketing --- Our strategy is designed to keep your occupancy and tenant retention rates at maximum efficiency.
Vendor Negotiations --- We only deal with reputable handymen, landscapers, appliance repairmen and service people. We'll negotiate you best deal and keep your rental operating smoothly.
Compliance with Fair Housing Laws --- We also provide all necessary legal disclosures and disclaimers.
Will Nesbitt
If you are a landlord, then you need a company you can trust to handle your operational responsibilities. Nesbitt Realty and Condo Alexandria have the experience you want in your property manager. Will has been a landlord for over 20 years and is a full service broker trained in property management. Nesbitt Realty and Condo Alexandria offers full service management for condos, townhouses and single family residential properties. Condo Alexandria is dedicated to maximizing your profits without sacrificing on service.
Julie Nesbitt
Julie Nesbitt knows the back trails and by-ways of Northern Virginia real estate.
Established in 1974 with a mission to reduce homelessness, increase community support and promote self sufficiency, the Good Shepherd Housing and Family Services is operated by a multi-denominational board of directors and staff managing over 70 housing units. Good Shepherd Housing and Family Services is located in the Mount Zephyr Business Center at 8305 Richmond…
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