U r b a n T r e k k e r

No Sign of Relief Yet in Property Assessments

Though, housing boom might have passed, property assessments have not been adjusted to reflect the current market conditions. In the financial world, they use the disclaimer "past performance is not an indicator of future results." But, assessment is entirely a different ball game. Assessors are using values (or formulas) that are not necessarily reflected current market conditions.

According to Washington Post, DC just has released their assessment. And guess what?! DC sets the trend to increased its assessments way up there, by 41%.

Property values in Congress Heights, an older community in Southeast Washington, have increased 41 percent, nearly double the city's average, an indication that the skyrocketing housing boom has crossed the Anacostia River.

The figures are contained in assessment notices that the D.C. Office of Tax and Revenue mailed Friday to more than 173,000 residential property owners. On average, assessments citywide will increase 21.8 percent, and even with legislative changes designed to limit property taxes, most homeowners are expected to pay slightly more when they are taxed on the new values next year.

Fairfax County follows DC in that order. I feel the pain.....

UPDATE: This is funny, the regulators also got hit big time with the new assessments. Fairfax Bosses Got Hit Big with Assessments. [DC Examiner]

* DC Property Values Spiral High [Washington Post]
* Fairfax Tax Bills to Rise for 6th Year [Washington Post]

Real Estate Links

Here are selected stories from around the Internet on real estate:

* Baltimore's Central Light Rail Line - Second Time A Charm [Planetizen]
* At the Core of Inflation, Housing Sales Are Merely Rentals [Matrix]
* When an Automobile Serves as A Home [Planetizen]
* Taking Affordability in Housing to a New Level [CoolTown Studios]
* Fire: The New Granite [NYT]
* Lamont Street Lofts [DC Gentrification]

On The Market: Stockwell Manor

Stockwell Manor is a community of luxury 29 single family homes and 71 townhomes located right in McLean's neighborhood that borders with Falls Church. These are spacious customized homes with state-of-the-art features that comes with the homes.

Cross-posting with New Home Trekker.

The builder's approach is to give you a refreshing take on urban living in McLean neighborhood. McLean, is quite unique because it is in the middle of a cross section between urban and suburban living. Though, it's a different kind of urban living here, not like Arlington or Alexandria, where you find compact density in almost every corner of the neighborhoods. Because the builder wants to create a community that gives a sense of urban living, they selected their site which is off Great Falls Street in McLean borders with Falls Church. It provides easy access to all of Northern Virginia and the District -- access made even made it easier with West Falls Church Metro stop that is less than a mile away from here.

Pricing starts in the $900's for townhomes and $1.4 million and up for single family homes.

* Stockwell Manor [New Home Trekker]

Bankruptcy Auction

We haven't seen too much of bankruptcy auction for million dollars home for years. But, here is one that caught my attention. Click on photo to enlarge.

Palatial Estate Home in Northern Virginia
on 5.6± Fenced and Gated Acres

Wednesday, March 15, 1 p.m., On-site

Property features include:

• 11,946± sq. ft., plus guest house and cabana
• Grand, two-story foyer with marble tile and dual, curved staircases
• Large gourmet kitchen, indoor pool, and spa
• Master bedroom suite of over 800± sq. ft.
• 5.6± acres, fully fenced with gated drive
• Private pond

A master bedroom of over 800 square feet? Wow. That's the size of one bedroom condo, right there! I am interested more to learn what's the story behind this auction, so am going there today for their open house.

Real Estate Links

Here are selected stories from around the Internet on real estate:

* [Getting Graphic] Genius on a Napkin: Housing Boom Phase Diagrams [Matrix]
* Poorly Designed Transit Systems Don't Market Transit Well [Rebuilding Place in the Urban Space]
* Enclave Development Won't Save Anacostia [Rebuilding Place in the Urban Space]
* Building Owner Sells Rental to Focus on Short-Term Buys [Real Estate Journal]
* Builder's Offer to Fill Void on Roads [Washington Post]
* Recognizing A Revival in Pattern Book [Washington Post]
* Take Action Early to Avoid Foreclosure [Realty Times]
* Forelosures Lowering Boom on Home Owners [Realty Times]
* Fort Detrick Neighbors Jittery Over Expansion [Washington Post]
 

Rehoboth Beach To Change Assessments

How nice to have waterfront beach homes on Rehoboth, DE, worth millions and pay annual tax bill of less than $300? That's because their way of assessing properties dates back to 1968.

I can tell you one thing -- ain't gonna happen here! Not in a million years. Now, according to Washington Post, Rehoboth reconsiders to change its assessment method.

* A Tax Proposal Taken in Stride [Washington Post]

Photo: Washington Post

Appraisal in Softening Market

Hats off to Matrix, who provides analysis to insight into the appraisal world in a softening market. Appraisers play a big role in housing transactions. Mortgage financing depends on valuation of the property, whether the property is appraised to or below offering price will determine how much your loan will be. If the valuation falls below the offering price, then buyers need to come up with extra money to close the gap between what is offered and what is appraised for. However, if the valuation is exceeded the offering, then the buyer is in a great shape.

Via Matrix.

In the article Bogus appraisals stress housing market [Kansas City Star] the author states An independent and unbiased appraisal — once considered the bedrock of any home sale or loan — today is often built on shifting sands, according to concerned appraisers in Kansas and Missouri as well as nationwide.

Appraisal fraud is relatively easy to hide because most consumers have no idea how an appraisal works. Many consumers never see an appraisal — though they pay for them — unless they ask for one at closing. But while they may appear subjective, honest appraisals are supposed to adhere to well-defined principles.

When we're still in frenzy market, it was not uncommon to see multiple contracts on the table. Sometimes to win, appraisal clause was scratch off from the sales contract. That means - the buyer is ready to take the property at whatever price it appraised for. The story is different today.

* Not Everyone Is Ready For An Appraisal of Reality [Matrix]

Title Insurance To The Rescue

Part of the closing costs when you purchase a home are the three biggies. They are the three big itemize fees that help added the cost of home buying: loan origination fees, grantor's tax or the State transfer tax, and title insurance.

Title insurance is there to help protect the unwanted claims to your home ownership. Here is a good advice on why you need them, especially if you plan to purchase a property in DC.

Via Washington Post.

After years of military life, Elizabeth and Stephen Allenbach were ready to settle down, so in 2002 they purchased a 100-year-old Victorian townhouse on Capitol Hill. But after they had been there for six months, a yellow summons arrived asserting a legal claim to title to the property.

Fortunately, they didn't have to move out of the house.. because they have title insurance to help clear the claim.

It turned out there had been a split in the title at some point, creating both a legitimate and a fraudulent deed to the property. The Allenbachs had the bad one. The ins and outs of the settlement are complicated and lawyers won't discuss them, but one thing is clear: Despite their initial fears, the Allenbachs weren't tossed out.

When they bought the house, they had also purchased owner's title insurance, and the insurance company helped with a lot of "legal maneuvering" over the next two years to clear the way for the house to be deeded back to them, said Stephen, now a civilian budget analyst for the Army.

"If they had not had . . . [an owner's title policy], they would not have been protected," said their real estate lawyer, Nathan I. Finkelstein of Finkelstein & Horvitz PC in Bethesda.

There are two types of standard insurance, lender's and owner's title insurance. Most lenders usually requires title insurance when you take loan from them. The enhanced policy variation goes a long way because it covers also zoning violations. The cost for title insurance depends on the value of the property and its premium is paid all at one time. The policy provides the coverage for as long as you own the house. Something you gotta have it for your peace of mind.

* Insurance Untangles Ownership [Washington Post]

JUST IN: Marriot Courthouse Expansion OK's

The long-awaited plan to expand Courthouse Residence Inn is finally OK'd by County Board.

Via Arlington County News.

ARLINGTON, Va. – The Arlington County Board today approved a site plan to build a 10-story hotel at Courthouse Plaza, completing the western end of the plaza.

The hotel will be an extended-stay Marriott Residence Inn, with 176 rooms plus ground-floor retail and a high-end restaurant. Scheduled to open in 2008, the project represents a major milestone as it finishes off Courthouse Plaza. The hotel will add to the plaza’s civic character and provide coordinated streetscape and open space systems, while also continuing Arlington’s successful mixed-use approach along the Metro corridor.

“This project marks a key step toward completing the vision for the Courthouse area,” says County Board Chairman Chris Zimmerman. “The hotel will bring even more vitality to Courthouse Plaza and Clarendon Boulevard, while also blending well with the surrounding residences on Adams and 14th Streets.”

“Arlington is an incredibly vibrant community, with a thriving Metro corridor. We’re excited and pleased to bring our Residence Inn by Marriott brand to the Courthouse Plaza area,” says Laura Bates, senior vice president of Extended Stay brands for Marriott International, Inc.

Friday Real Estate Links

Here are selected news from around the Web on real estate:

* New Info on Home Ownership [BW-Hot Property]
* And the Survey Said - It's Not How Much You Have, How Much You Can Borrow [Matrix]
* Time to Rent or Buy in Job-Driven Market? [Wash Home Guide]
* Finding A Home that Suits Both You and Your Pet [Real Estate Journal]
* Market Records First Year-End Fall in Homeownership Rate [RealtyTimes]
* The Ant and Grasshopper: A Story of Investments [RealtyTimes]
* House Proud [Southern Living]
* Interest Only Borrowers Are Rolling the Dice [Washington Post]
* What We Own vs. What We Owe [Washington Post]