Post Real Estate editor Maryann Haggerty and author Elizabeth Razzi discussed the local housing market — from condos and investment properties to contracts and mortgages.

The transcript follows.

____________________

Elizabeth Razzi: Hello, everyone! Maryann Haggerty is still on her amazing 29-day trip around the world. Today she is in Jordan, then heading westward. Post real estate reporter Dina ElBoghdady is scheduled to join us today, but she’s tied up on a reporting trip to the wilds of Arlington. I hope she can join the conversation later. She’s our expert on all things HUD and FHA. Let’s get going.

_______________________

Arlington, Va.: My condo was a conversion from apartment to condo. Our board just learnt that for the last 3.5 years since the conversion went into effect, one bedroom owners were paying more in condo fees than the formula in the declaration allowed, while other unit holders were paying less. The board decided to correct the fees at the start of 2009, but take no other action. Are you aware of anything that can be done to help the one bedroom owners reclaim the extra money they paid? Thanks.

Elizabeth Razzi: You might want to ask your board to re-open that question. (Running for a seat on that board wouldn’t be a bad idea, either.) Perhaps some form of compensation, even if it’s short of the excess paid over 3.5 years, could be approved. Failing that, the overcharged condo owners might choose to file small-claims suits against the condo association. I’m not a lawyer, and I have no idea how effective that would be. But even the hassle would be costly for the board, and something you might want to avoid. Reparations of some sort could defuse the issue a bit.

_______________________

Anonymous: Good intel for a robber: And on Saturday, Hudson & Marshall of Texas, Inc. is offering 102 foreclosed homes in the Washington area at auction. Bidding starts at the Sheraton Premiere hotel in Tyson’s Corner at 1 p.m. (though bidding is already under way online). Doors open at 11 a.m. It’s a reserve auction, meaning homes won’t sell unless bidding passes their minimums. Buyers need to have cash or a certified check for a $2,500 deposit on any property they buy, and a 5 percent buyer’s premium will be added to the winning bid.

Elizabeth Razzi: Argues well for the certified check option, don’t you think? That kind of cash/check requirement is pretty standard for auctions, so I didn’t have any qualms about printing the amounts. And btw folks, that auction was LAST Saturday.

_______________________

Pasadena, Calif.: I bought a home in Potomac, Maryland a few years ago. I stayed in the home for a few weeks to take care of renovations. During my stay, I experienced powerful spiritual and supernatural occurrences inside the home and on the property. Later, I found out through a title search and newspaper articles that a prominent rabbi had lived and died in my home. In California, this death inside a home offered for sale would have to be disclosed. This death was not disclosed to me in connection with the Maryland home, and so I assume this disclosure was not required by Maryland law.

I am currently thinking about putting the home up for sale to ease my financial burden. What obligations do I have to disclose the death of the rabbi inside the home and the powerful spiritual/supernatural occurrences I experienced? The experiences were overwhelmingly positive and not the least bit scary. Nevertheless, do I have a legal or moral obligation to reveal these experiences to a potential buyer?

Elizabeth Razzi: How absolutely fascinating. Please send me an email at razzie@washpost.com. I’d love to know more. Now, to the question you raise, California has disclosure rules that are generally more strict than elsewhere. Around the Washington area, I don’t think you need to disclose that–especially if it was not a crime scene. But if a buyer asks you whether you know of any deaths, etc., then you’re obliged to answer. The moral obligation? That’s a tougher call. My gut says no. Many folk would just dismiss you as a kook (not my opinion, btw. And it may be a non-issue for others. Gang, help us out here. What do you think?

_______________________

Eastern Maryland: How effective is refurbishing one’s house(ie. full paint job, remodeling of bathroom or kitchen) in raising the sale value of one’s home?

Elizabeth Razzi: It’s almost a necessity if you want the house to sell at anything close to a fair price. It all depends on condition, of course. But dated or shabby paint is a must-fix. Kitchens and baths cost tens and tens of thousands of dollars to re-do completely. But a spruce-up is money well spent. And you will probably be better off replacing dumpy appliances that could turn people off.

_______________________

Washington, D.C.: This is not exactly a real estate question per se, but maybe you can lead me in the right direction. I am reviewing my renter’s insurance coverage. I live in a studio apartment. How much coverage do I need if I have all the normal things (1 TV, 1 computer, etc.)?

Elizabeth Razzi: It sure is a real estate question. And good for you for thinking about this. Way too many renters don’t realize they need coverage. Imagine Day One after a fire. What would it cost to replace your electronics, clothes (often overlooked!)books, furniture, etc. Then cover yourself for that much. Take a video camera around the apartment to document what you own, and store the file or tape outside of your apartment. An insurance agent can really help you figure out how much coverage to buy.

_______________________

Dupont Circle: I’m a first time buyer and I’m interested in purchasing a condo from a new development in D.C. Should I still use a real estate agent or is it unnecessary since its a new development from a large firm?

Elizabeth Razzi: Get somebody to help you with this transaction, especially because it’s your first time. A real estate agent can help you arrange for a home inspection (even useful on new buildings) and guide you through the mortgage and closing processes. Btw, make sure you receive your condo documents in a timely manner and take the time to review them! Get someone to guide you through the condo’s financial statement if that’s not your area of expertise.

_______________________

Washington, D.C.: Hi, I own a Capitol Hill townhome that is currently rental property and in good shape. I’m planning to put it up for sale this summer and thought of doing some painting and other cosmetic improvements for potential buyers. However, I’ve gotten some advice that I’d be better off just listing the house “as is” and saving myself the labor. My question: Do the words “as is” in real estate ads scare off buyers? Would they assume it might be a dump? Thanks!

Elizabeth Razzi: “As-is” translates to “bid low” in buyers’ minds. Yes, they will assume it’s a dump. Especially in this market, buyers expect something close to perfection. They might not even look at your townhome if you don’t spiff up.

_______________________

Washington, D.C.: We’re looking right now for a house but the interest rates have gone crazy! What do you think the medium term prognosis (next 3-6 months) is for mortgage interest rates?

Elizabeth Razzi: I really don’t know, but my gut doesn’t think they’re going to go back down. Neil Irwin has a good story on the topic in today’s Post. We’re trying to get you a link. The federal government was deliberately driving interest rates low, and it’s not at all clear that it will continue doing so. Will they zoom up quickly? Don’t know.

_______________________

Potomac, Md.: I know you don’t have a crystal ball, but if you could go back to early 2006 and tell yourself one thing about the real estate market since then – what would you say?

Elizabeth Razzi: I would remind myself of something I know is true, but which sometimes takes discipline to remember: Never assume that current circumstances will be permanent.

_______________________

Leesburg, Va.: So, back in March of this year I submitted my application to have my loan modified (we’re on time with all mortgage payments, but sadly at the expense of other bills). Our mortgage currently takes up 48% of our gross monthly salary. I’ve called Wells Fargo every week since mid April to get an update; have even updated my financials to show that we are making strides to budget more. I’ve been told that they are working on a solution. In a week or so it will be 3 months since we submitted our application. Do you have any sense how successful Wells Fargo is at completing modifications within their 30-90 day timeframe?

Elizabeth Razzi: I don’t have any stats on how they’re performing. But I have heard lots of anecdotes such as yours. Lenders have been swamped by loan mod requests–and then with a refinancing surge. It might help if you get a HUD-approved counselor to help get their attention. You can find one from the www.HUD.gov web site.

_______________________

www.washingtonpost.com: Spike in Interest Rates Could Choke Recovery (Post, Friday, June 12, 2009.)

Elizabeth Razzi: Here’s Neil’s story.

Continue reading…

Maryann Haggerty and Elizabeth Razzi
Washington Post Real Estate editor and columnist

Source: The Washington Post – U.S.A.