Author: ARLnow.com Sponsor

Ask Eli: Top Ways To Finance Home Renovation Costs

By ARLnow.com Sponsor

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This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: If I purchase an as-is home to renovate myself, what are the best financing options available to me?

Answer: This is Part 2 of the question I answered last week about buying a home as-is. I asked one of the area’s top lenders, Troy Toureau of McLean Mortgage to provide a detailed response. Troy is a fantastic resource for any of your mortgage questions/needs. The following is his response:

If you want to own a home in Arlington or other areas surrounding the city, there is a lot of competition. The good news is that there are older homes requiring updates that many home buyers ignore, while newer, higher-priced properties often attract multiple offers.

Focusing on the renovation-ready market can expand your choices and perhaps give you access to a better location. The process of renovating can also give you a home that is more custom-tailored to your tastes and needs.

Financing a home that you will renovate is a bit more complex than a standard purchase loan. The good news is that there are several options that will help you achieve your goals of upgrading and/or customizing the house for your needs:

Construction Loans

If your renovations are projected to cost over $100,000, you can opt for a construction-permanent loan, based on the value of the home after the renovations are completed. Here is an example:

  • Purchase Price: $450,000
  • Renovation Budget: $150,000

In this case, your total needs are $600,000 and you can obtain a loan of up to 95% of that amount. You will receive the money at closing for the purchase, and then the remainder of the money in draws paid directly to the construction company as the work is completed. When the work is done, you do not have to finance the home again, as this “one-time-close” construction loan will automatically convert to a permanent loan. Larger down payments will be needed for larger loan amounts. Note that there are additional costs associated with construction loans because the appraisal is more complex and there are costs for periodic inspections and draws.

As an additional option, you can opt for a traditional construction loan and refinance into a permanent loan after the work is complete. While this will result in more costs by adding a refinance transaction, you will have more choices for permanent financing on the back end.

Other Financing Options

For renovations under $100,000, there are two good strategies:

  • If you are planning to put 20% or more down on a $600,000 loan, you can simply reduce your down payment to 10%, or even 5%, conserving your cash for the renovations. Here is an example:
    • $600,000 Purchase Price with 20% Down: $120,000
    • $600,000 Purchase Price with 5% Down: $30,000
    • Available funds for renovations: $90,000
    • In addition, the renovations may give you a higher appraised value to help eliminate the mortgage insurance costs associated with lower down payments.
  • If you do not have the cash assets for a large down payment, you can close on the property and then obtain a second mortgage or home equity line-of-credit (HELOC) after closing. To do this, you’ll need to find a bank that will lend the money based upon the renovated value of the house.

In today’s real estate market, especially in high-demand areas, it pays to explore all of your options. If you would like to discuss some of these options when you are considering purchasing a new home and/or renovating an existing home, feel free to contact me at [email protected] or (301) 440-4261.

Troy Toureau, Vice President of Production, NMLS #5618
www.AnyHomeLoans.com | 11325 Random Hills Road, Suite 400, Fairfax, VA 22030
McLean Mortgage Corporation | NMLS #99665 (www.nmlsconsumeraccess.org) Equal Housing Lender

If you’d like a question answered in my weekly column, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at http://www.RealtyDCMetro.com.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with Real Living At Home, 2420 Wilson Blvd #101 Arlington, VA 22201, (202) 518-8781.

Legal Insider: Where to File a Discrimination or Harassment Complaint in Virginia

By ARLnow.com Sponsor

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This is a sponsored column by attorneys John Berry and Kimberly Berry of Berry & Berry, PLLC, an employment and labor law firm located in Northern Virginia that specializes in federal employee, security clearance, retirement, and private sector employee matters.

By John V. Berry, Esq.

Private, federal and other public sector employees in Virginia have a number of options for filing a complaint of discrimination, sexual harassment, retaliation and/or an ongoing hostile work environment. The proper venue for filing the complaint depends on a number of factors, including type of employee, type of discrimination, type of employer and employee’s place of residence. When considering filing a complaint, it is generally wise to consult with an attorney given the complexities in the complaint process.

Federal Employees in Virginia

For federal employees in Virginia, the usual method of filing an Equal Employment Opportunity (EEO) complaint is to go through their federal agency’s EEO office within 45 days of the date of discrimination. This short deadline can usually be accomplished by contacting the relevant federal EEO counselor directly. The formal complaint process will follow later. There are also other, less common, routes for filing a federal employee discrimination/harassment complaint, such as filing a grievance and/or a complaint though the Office of Special Counsel (OSC), but these are usually not effective when compared to a federal employee’s options at the U.S. Equal Employment Opportunity Commission (EEOC).

Private Sector Employees in Virginia

For private sector employees in Virginia, there are a number of potential options for filing a discrimination or harassment complaint depending on where they live and the size of their employer. A private sector employee employed by a company with 15 employees or more may file a complaint with the EEOC, which is the most common complaint process. The deadline for filing a complaint in Virginia is generally 180 days but can be extended to 300 days, because of a work-sharing agreement between Virginia and the EEOC.

In addition, private sector employees can also file a discrimination/harassment complaint with the Virginia Division of Human Rights (DHR) if their employer has 6 to 14 employees, but less than 15 (except for age discrimination claims, when coverage extends to companies that have between 6 to 20 employees). A private sector employee who works for a federal government contractor can also file a complaint with the Office of Federal Contract Compliance Programs (OFCCP), but this complaint process is less commonly used. Lastly, some counties and municipalities in Virginia have enacted discrimination/harassment ordinances such as Fairfax and Arlington, which also have procedures for filing complaints. The deadlines can vary for county filings, between 180 and 365 days, depending on county. In sum, it is important to figure out the correct forum and to file a claim well in advance of any deadlines.

Public Sector Employees in Virginia

State employees in Virginia have somewhat different discrimination/harassment complaint options. These include filing a complaint with the Virginia Department of Human Resource Management, Office of Equal Employment Opportunity Services (OEES) or the EEOC. These rules have been in flux given that they were provided by Executive Order, which have not been renewed in the past but are currently in effect.

County and Municipal Employees in Virginia

Finally, county and municipal employees in Virginia have options for filing a discrimination complaint as well. They may generally file discrimination/harassment complaints with the EEOC, or if covered by their county or municipality, a local claim. By far, the majority of county employees take their cases to the EEOC and then to the court system, if the matter is not resolved.

Overall Concerns

It is important to consult with an attorney given the complex nature of the discrimination/harassment complaint process and multiple forums since timelines for filing complaints vary on circumstance, location, size and nature of the employer.

If you need assistance with an employment discrimination issue in Virginia, please contact our office at (703) 668-0070 or at www.berrylegal.com to schedule a consultation. Please also visit and like us on Facebook at www.facebook.com/BerryBerryPllc.

Rethink Energy: What You Can Know With Snow

By ARLnow.com Sponsor
1/11

This regularly-scheduled sponsored Q&A column is written by the Arlington Initiative to Rethink Energy team (AIRE). This county program helps you make smart energy decisions that save you money and leaves a lighter footprint on the environment. Got a question? Email us at [email protected]!

Snow cometh! What can you know with snow? Try this!

As snow falls, keep an eye on your roof and the roofs of surrounding homes. A light snow can tell a lot about the efficiency of a home. About an inch of snow is best to identify issues. Fast-melting roof snow can be a symptom of inadequate insulation.

Not all areas of missing snow are indications of energy issues. Hone your eye by taking note of tree limbs over a home, high winds and areas where direct sun may create funky patterns on a roof. Nevertheless, this is a quick way to take inventory of what might be happening in your home.

Take advantage of Arlington’s Home Energy Rebates to help make your home more comfortable and save money. Arlington homeowners can receive a rebate up to $575 to add insulation, air seal, or install an efficient furnace or water heater.

Stay warm, stay safe, and keep an eye on your roof. It might be trying to tell you something.

WWBG: Tis the Season for Winter Ales

By ARLnow.com Sponsor

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Editor’s Note: This biweekly column is sponsored by Dominion Wine and Beer (107 Rowell Court, Falls Church). It is written by Garrett Cruce, a Cicerone Program Certified Beer Server.

The Oxford Companion to Beer mentions several pre-20th century Winter beer concoctions that used heated ale and dessert ingredients like spices and egg and bread. With names like “ale posset” and “egg flip,” these drinks were like drinking beer bread pudding or custard. Since the early 20th century, however, we’ve moved on to styles similar to what’s available now.

Since a beer called Burton ale (generically referred to as an Old ale), Winter ales have been mostly brown ales that are stronger than your average beer. American craft brewers brought back the concept of adding spices beginning with Anchor Brewing Company’s Christmas Ale in 1975. Whether they are called Christmas ales or Holiday ales or Winter ales, these beers will provide a nice respite from the blistering cold outside.

Despite not containing any food like those old beer drinks, Winter ales can still be a bit like having your dessert in a glass. Not as syrupy as a flavored cocktail, but full of the sweet flavors of Winter baked goods. Whether it’s a heavy, boozy fruit cake or Christmas pudding or cookies — there’s a whole array of sweet flavors to be enjoyed.

Below are four Winter ales that take the chill off.

Blue Mountain Brewery Lights Out Holiday Ale (7.0% ABV)Blue Mountain Brewery Lights Out Holiday Ale
Located in the Blue Ridge mountains, Blue Mountain brews this Winter ale at their Blue Mountain Barrel House in Arrington, VA. It’s available through December. This relatively light Old ale is bursting with the aroma and flavor of bread pudding with raisins. Bready malts and spicy hops combine with a slightly sweet finish to evoke the dessert. Lights Out stands up well on its own and is just light enough to go well with a hearty stew or roast.

Great Lakes Brewing Company (GLBC) Christmas Ale (7.5% ABV)Great Lakes Brewing Company (GLBC) Christmas Ale
Cleveland, Ohio’s Great Lakes Brewing Company started as a pub in 1986, but had expanded to include a separate brewing space by the time Christmas Ale was born in the 90s. An early entrant in the spiced ale category, Christmas Ale has a solid fan base. Brewed with honey from the region, cinnamon and ginger, this beer jollily evokes cinnamon graham crackers. In fact, my nostalgia for the ubiquitous children’s snack made me want some chocolate and toasted marshmallow to complete the dessert as a s’more. It’s good that Christmas Ale only comes once a year, because its delicious flavor and light body might make moderation difficult. GLBC is even getting social with their #ChristmasAleSpirit contest. It doesn’t even require the possibility of winning something to put drinkers of Christmas Ale in the #ChristmasAleSpirit.

St. Bernardus Christmas Ale (10.0% ABV)St. Bernardus Christmas Ale
Brewed at one of the few remaining Abbey breweries in Belgium, St. Bernardus, Christmas Ale is a traditional Quadrupel or strong dark ale. Like a good fruit cake — an oft maligned, but tasty treat when fresh — this beer is redolent of fruit like tropical papaya and banana, as well as molasses and dried figs. Belgian ales tend to be quite effervescent as their special yeast tends to continue creating carbon dioxide in the bottle (this is know as bottle conditioning), but Christmas Ale avoids the bubbly bite with a fine mouthfeel. The result is a smooth and strong ale that is just sweet enough to please without being cloying. This is great paired with roasted meat like fowl or pork or enjoy it on its own.

Avery Brewing Company Old Jubilation Ale (8.3% ABV)Avery Brewing Company Old Jubilation Ale
This Boulder, Colorado-brewed Old ale even looks like it’s from a different time. The Currier and Ives-style painting on the can and the ornate script in the name gives this traditional ale a traditional look. If we’ve had bread pudding, graham crackers and fruit cake so far, it seems we’re missing a good old fashioned Christmas pudding. Those beguiling British desserts that are prepared by boiling in cheese cloth and are topped with a brandy-infused butter called “hard sauce” have a particular flavor combination of the caramel of dark sugar and the bright sweetness of the sauce. Similarly, Old Jubilation is a swirl of molasses and brown sugar from the combination of malts that is brightened by the light booziness of alcohol. This beer is a fantastic sipper fresh or aged. It’s just the thing to pop open after a commute in 20 degree weather!

What Winter ales are you enjoying? Tell me below. Cheers!

Just Listed in Arlington

By ARLnow.com Sponsor

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Just Listed highlights Arlington properties that just came on the market within the past week. This feature is written and sponsored by Team Cathell, “Your Orange Line Specialists.”

We have good news and bad news this week.

The good news is that our Arlington real estate market has perked up beyond a normal pace for mid-December. Some 41 new listings came on the market this week, while 43 homes sold.

The bad news is that buyers’ purchasing power is eroding. The increasing mortgage interest rates and increasing home values right now are outpacing increasing incomes. And the Federal Reserve on Wednesday increased it’s short term rate by a quarter of a point and signaled three more rate increases are likely in 2017. The Fed anticipates inflation increasing from its current 1.5% to 2% in 2017. The Fed chairman cited the strengthening economy in its decision to raise rates.

Mortgage rates have climbed 12 basis points since last week, settling at 4.27% for a 30-yr fixed rate.

Click to see all the fresh new inventory in MRIS and call Team Cathell (703-975-2500) when you find a home you like.

Healthy Paws: “All I Want for Christmas…”

By ARLnow.com Sponsor

Healthy Paws

Editor’s Note: Healthy Paws is a column sponsored and written by the owners of Clarendon Animal Care, a full-service, general practice veterinary clinic. The clinic is located 3000 10th Street N., Suite B. and can be reached at 703-997-9776.Dogs Healthy Paws

In keeping with a tradition we started last year, and since shopping for our pets is a holiday highlight, here are some of the cool products we’ve come across in the past year:

The Odin — a durable toy to hide treats in, that also can be connected with another “unit” to make a larger toy.

Snooze Pal  — a hammock and box all in one — this is definitely on Tommy’s list!!    

No Bowl Feeding System — keep your cat entertained and help control feeding portions with this nifty feeding system that has your cat “hunting” around the house.

KoolCollar 4 Dogs — help keep your dog cool on those hot summer days (we especially like this for those smoosh-faced breeds).

IFetch Interactive Thrower — a must for that dog that refuses to let you stop playing fetch! And, also comes in smaller sizes for those little guys.  

Cat & Dog “Wine” — our personal pets have not yet tested this, but a clever idea so your pet can partake in cocktail hour too!  

CatAmazing puzzle toy — a cardboard box puzzle toy to keep your kitty entertained.

And, of course, please keep in mind those less fortunate pets out there who are still looking for homes and the wonderful shelters and rescue groups who do so much to help them:

Animal Welfare League of Arlington — online donations, donate from their wish list on Amazon or stop by on December 17th or 18th from 10am-4pm for gift-wrapping to support them.   

Homeward Trails Animal Rescue — online donations or add an item from their wish list on Amazon to your next order.

Lucky Dog Animal Rescue — we have a collection box (through New Years) in our lobby if you happen to pick up any extra goodies at the pet store while out shopping for your own pet.  

Lab Rescue of Potomac — monetary gifts are always appreciated!

Lu’s Labs — they have a holiday boutique and you can support them through the Combined Federal Campaign.

Rental Trends: Pop-Up Retail Growing Ever More Popular

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This biweekly sponsored column is written by the experts at Gordon James Realty, a local property management firm that specializes in residential real estate, commercial real estate and homeowner associations. Please submit any questions in the comments section or via email.

Pop-up stores are popping up everywhere.

The pop-up retail phenomenon, once known as flash retailing, has grown in recent years. A pop-up store is a short-term, temporary business that sets up shop in an unused open space, storefront, or within an existing store. It is rented for a fraction of the cost of a long-term space and is a cost-efficient way for a retailer to increase its brand awareness and make a profit. A retailer will rent a pop-up space for as little as one day to upwards of a few months.

Standalone pop-ups come in many shapes and sizes and are found at different locations. They can include vendors, restaurants, and exhibits. Pop-ups sell almost anything: books, art, clothing, cosmetics and beauty supplies, jewelry, music, art, food, and seasonal items. They are set up where there is much foot traffic (due diligence will help a retailer choose an accessible, busy location.) These pop-ups can be located in a marketplace–such as a stand at a crafts fair or farmer’s market–or inside a shopping mall that embraces pop-ups as a way to fill vacancies and keep shoppers coming back. They can also operate as a gallery space, standalone kiosk, college campus store, a collection of tables in a parking lot or on a side street, a booth or a tent in a public park or town square, or a food truck or motorized vehicle.

While the concept is popular among small business owners, major retailers such as Walmart, Toys “R” Us, Ann Taylor, Nike, Target, and Lexus have integrated pop-up concepts into their marketing strategies to extend their brands.

An example is Toys “R” Us, which has 30 outlet center pop-up stores. Toys “R” Us started opening pop-up outlets in 2010. On July 1, it opened a new location at the Jersey Shore Premium Outlets in Tinton Falls, NJ. Its outlet stores average 2,500 to 5,000 square feet. The store features products not found at its brick-and-mortar or online sites.

A building owner is likely to be willing to rent out storefront space to a pop-up retailer for a short time rather than not rent it out at all. Also, the owner still has the chance to book a higher-paying tenant later on.

Another pop-up trend is the “store within a store” in which space is rented to a retailer within an established store. This helps the store owner offset rent. In this scenario, pop-up retailers often will match their wares with the building owner’s merchandise.

An example is at Nordstrom, which hosts its own “Pop-In@Nordstrom” specialty pop-up shops, which are a recurring series of retail products not typically found in a Nordstrom store. Jewelry retailer BaubleBar, which began as an e-commerce retailer, opened a pop-up within Nordstrom department stores before recently expanding into its own retail shops. And in 2015, London-based designer goods retailer Liberty set up within five U.S. Nordstrom locations. Another example is in New York City, where menswear retailer Rothman’s added a 750-square foot pop up shop inside its Park Avenue location to host emerging designer brands. Rothman’s rotates its pop-up tenant every six weeks. Other retailers such as Best Buy and Sears have also been successful integrating pop-ups.

There are a number of benefits to pop-ups. They can provide a starting point for someone just starting out in retail who is looking to generate brand awareness or experiment selling different products. They also give a digital retailer an opportunity to engage its customer’s offline.

Customer engagement is a strong reason to open a pop-up shop. As with commercial real estate, location is the key. A pop-up retailer has the advantage of identifying locations where customers are most likely to be, thus providing built-in foot-traffic. Scouting out the location will also identify if there is parking nearby and whether the location is accessible by public transit.

A pop-up space provides a move-in ready small space without the concerns of committing to a long-term lease, getting insurance, managing staff, and operating much equipment. Typically there are fewer costs on inventory, equipment, physical appearance, and labor. Some pop-ups serve as stepping-stones to permanent business locations, thus helping a local economy.

A critical step for a pop-up store is having a budget. This includes budgeting for inventory and rent, the design of the space, marketing and promotion, a window display and signage, Internet access, and even food and beverages for customers.

There are pop-up pitfalls. Some of the most common are the wrong location; not promoting the event on social media; not distributing flyers and promotional material in nearby cafes and shops; not having a launch event (think food and balloons); not having a window display or signage; not installing Wi-Fi; not having a welcoming atmosphere; not scheduling setup and breakdown time; and staying in a location too long.

There are organizations that help pop-up shops get set up. Launched in 2012, Chicago-based PopUp Republic has helped promote 30,000 pop-up shops, restaurants, events, and spaces and has worked with large brands to create and execute pop-up concepts. Pop-up retailers can visit PopUpInsider.com for lists of available pop-up spaces, and Storefront.com helps brands find temporary retail space from commercial real estate owners. Popupmarketplace.com allows property owners in need of tenants to list their temporary pop-up spaces. New York-based Lionesque Group is a pop-up architect and has produced award-winning pop-up shops for large brands.

According to a PopUp Republic poll, pop-up shoppers look for unique services and products, localized assortments, optimal pricing, convenience, and a fun experience.

For Washington D.C. business owners who lack resources and finances, pop-ups provide a viable and creative alternative to an expensive retail space. Recently, Washington D.C. pop-ups have grown in appeal. For example, in June digital fashion retailer ModCloth set up a pop-up inside the old Urban Chic space in Georgetown for a one-month stint. Today, Washington D.C. pop-ups offer products and services that include fashion, cosmetics, arts and crafts, farmer’s markets, beads and jewelry, eateries, coffee, chocolate, bike repair, and even supper clubs.

Both small and large retailers are embracing the pop-up trend. A pop-up store is an exciting and creative way for new retailers to test the waters, or for existing retailers to expand their niche. Having a brand, budget, and a location will give retailers the keys they need to pop-up success.

Just Reduced Properties in Arlington

By ARLnow.com Sponsor

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Each week, “Just Reduced” spotlights properties in Arlington County whose price have been cut over the previous week. The market summary is crafted by licensed broker Aaron Seekford of Arlington Realty, Inc. GET MORE out of your real estate investment with Aaron and his team by visiting www.arlingtonrealtyinc.com or calling 703-836-6116 today!

Please note: While Aaron Seekford provides this information for the community, he is not the listing agent of these homes.

Enjoy the warmth while you can.

Okay, the mid-40s isn’t all that exciting, but you will surely miss them come tomorrow and Friday when our wind chills hit the single digits. Since when did the D.C. area turn in to Chicago – they can take these temps back!

As our areas hits deep freeze territory, one thing is staying red hot: Our local real estate market. As the old adage goes, “there’s never been a better time to buy a home.” Well, in Arlington County, there has never been a better place.

Take a look at our school system, our culture, proximity to our nation’s capital, high-paying salaries and low unemployment rate. It all adds up to a perfect climate for you to ditch the landlord and commit to a place of your own.

So, when you’re ready to GET MORE our of your home purchase, I’ll be right here… with gloves on!

As of December 12, there are 180 detached homes, 41 townhouses and 281 apartments for sale throughout Arlington County. In total, 33 homes experienced a price reduction in the past week.

Here is this week’s selection of Just Reduced properties:

Please note that this is solely a selection of Just Reduced properties available in Arlington County. For a complete list of properties within your target budget and specifications, contact Aaron Seekford.

Arlington Agenda: Dec. 12-18

By ARLnow.com Sponsor

Arlington Agenda is a listing of interesting events for the week ahead in Arlington County. If you’d like to see your event featured, fill out the event submission form.

Also, be sure to check out our event calendar.

Tuesday

It's a Wonderful NightIt’s A Wonderful Night at the Drafthouse
Arlington Cinema & Drafthouse (2903 Columbia Pike)
Time: doors open at 6:45 p.m.

The Drafthouse is hosting a Holiday Social with a special screening of the award-winning movie, It’s a Wonderful Life. Tickets start at $6.50 and the movie will be playing Tuesday through Thursday, this weekend and into next week.

Wednesday

Arlington's Marymount University (Flickr pool photo by Eric)Who Can We Call When We Need Help from Arlington County?*
Marymount University Phelan Dining Hall (2807 N. Glebe Rd.)
Time: 7-9 p.m.

Join Shannon Flanagan-Watson and Robert Sharpe as they discuss their roles and share their plans for engaging in the community. Reserve online by December 11 at [email protected].

Thursday

open-house2Arlington Dems Open House
Walter Reed Community Center (2909 16th St S.)
Time: 7-8:30 p.m.

The Arlington County Democratic Committee is hosting an Open house in an opportunity to meet their Committee leadership, learn about what they’re planning for 2017 and to share ideas. Additional open houses will be in January.

Friday

sensory-friendly-santaSensory-Friendly Santa
Mt. Olivet United Methodist Church (1500 N. Glebe Rd.)
Time: 5:30-8:30 p.m.

The Arlington Special Education PTA and former Congressman Jim Moran are hosting an evening allowing children with special needs to visit Santa in a calm environment, away from the stressful, over-stimulating mall experience.

Sunday

Santa_on_EngineSanta at the Station
Cherrydale Volunteer Fire Department (3900 Lee Hwy)
Time: 1-3 p.m.

The historic Cherrydale Volunteer Fire Department is hosting their annual visit with Santa where they will have the opportunity to sit with Santa, have their picture taken, receive a toy and learn about fire safety.

* Denotes featured (sponsored) content

Ask Eli: Mitigating The Risks Of Buying As-Is

By ARLnow.com Sponsor

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This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: What does it mean to buy a home as-is and are there ways to mitigate the buyer’s risks?

Answer: Occasionally sellers offer homes for sale “as-is” and it presents a good opportunity for buyers to purchase below market and earn some sweat equity. These homes tend to be run down, require significant repairs and most owners don’t want to deal with anything other than signing the paperwork to transfer title. Homes may also be offered as-is when the seller doesn’t know anything about the property (e.g. acquired through inheritance).

Last week, I explained that Virginia is a “Buyer Beware” state (Caveat Emptor), which means that sellers do not have to disclose any problems to buyers and the burden of discovery falls strictly on the buyer. As such, selling a property as-is isn’t too different than a regular sale of property in Virginia, but there are a few negotiable differences and while a property can be marketed as-is, it doesn’t mean anything until these changes are explicitly agreed to:

  • There is no requirement to clean or remove debris. The standard is for the property to be free of trash/debris and broom clean.
  • The seller is not responsible for addressing any wood destroying insect/termite issues. The standard agreement requires the seller to pay for this.
  • The seller is not required to fix any Homeowners Association violations on the physical condition of the property.
  • The seller is not responsible for providing working smoke detectors.
  • The seller is not responsible for compliance with notices of violation from local authorities

You should be able to assess the amount of trash/debris and existence of working smoke detectors pretty easily. You can contact Arlington County about any outstanding violations. If you’re buying into an Association, the delivery of a resale package (documents like by-laws and budget) is a non-negotiable requirement and will include any outstanding violations. Wood destroying insect/termite tests are cheap and easy and can be done in conjunction with a pre-inspection or pass/fail inspection (see Mitigating Risks To A Homeowner).

What About Home Inspections?

The list above represents what the Northern VA contract says about as-is sales, but in reality, what most sellers mean when they offer a property as-is is that they intend to deliver the property in its current condition and aren’t interested in fixing anything. I always recommend my clients include a full home inspection contingency in their offer, which allows you to negotiate fixes or seller credits based on the findings of the property’s condition, but don’t expect a seller marketing a home as-is to agree to a full inspection contingency. While investors (teardowns and flips) don’t mind, it puts homeowners in an uncomfortable position.

Mitigating Risks To A Homeowner

  • Select a Contractor: If you’re planning a major renovation, I strongly recommend selecting your contractor ahead of time and asking them to do a walk-thru of the property with you before you make an offer.
  • Pre-Inspection: You can order a full home inspection prior to making an offer. The downside is that you’re paying for an inspection (usually $500-$600 for a single family home) before you’ve signed a contract, but the benefit of being fully informed on the condition of the home is worth it. Make sure you get permission from the seller before ordering a pre-inspection. Pre-inspections are popular in Washington DC right now because of how competitive the market is for buyers, who are often forced to remove the inspection contingency for their offer to be considered.
  • Pass/Fail Inspection: It’s possible to amend the standard inspection addendum to create a pass/fail option by eliminating the right to negotiate based on the property condition. The result is you can inspect the property and make a binary decision – void the contract or move forward with the purchase. This provides you the opportunity to inspect for major problems (e.g foundation issues) and walk away if necessary.
  • Talk To Neighbors: Introduce yourself to a few neighbors and ask them about the home you’re considering purchasing. Neighbors are often aware of major issues with nearby homes or whether the previous owner took care of the property, so don’t be shy.

I’d love to hear from readers about their experiences buying as-is properties and any creative ways you used to mitigate the risks.

If you’d like a question answered in my weekly column, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at http://www.RealtyDCMetro.com.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with Real Living At Home, 2420 Wilson Blvd #101 Arlington, VA 22201, (202) 518-8781.

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