Real Estate is Local - Always

As always, real estate is local. Freshman lawmakers are not having an easy time locating affordable housing on Capitol Hill. CNN's Samantha Hayes gives an inside look at what it's been like for some of them.

While the housing market has deteriorated tremendously for the nation as a whole, there are specific areas where unique local market conditions continue to provide upward pressure on housing prices. The situation in D.C. is a good example of this. The continued demand for housing close to federal government offices has caused housing prices to remain high there.

If you are relocating to a new city, don't forget to take local conditions into account as you set expectations for what you are able to get for your money.

What Can You Buy for $200,500?

The median home price, as of 3rd qtr 2008, is now $200,500. This is a 9% drop from the same period last year. Foreclosures are mostly to blame, but of course, the bad state of the economy, stricter lending standards, and the high number of unsold homes have also contributed to the price decline. So, what can you buy for $200,500? Sushil Cheema at the Wall Street Journal took a look to find out. I thought you'd be interested to see how far the money goes and what people are saying about it. Check it out here. See how the homes compare to what's in your city or town.

A Call From John

Just recently, I received a call from John, a prospective homebuyer, who found a few homes on my website that interested him. Wanting to learn more about these homes, he gave me a call to discuss them and his plans to buy. This call was unlike most I receive. Instead of focusing all attention on the homes themselves, his first questions centered on how I give representation and how I would work with him. Since questions like these don't come along often, I took extra pleasure in answering them all.

Whenever I receive a call or an email inquiry from serious prospects about a home for sale, I raise the subject of buyer agency as part of my "orientation" process with them. Hoping not to overwhelm or confuse, I always take care to invite questions and I take advantage of subsequent opportunities to revisit and further clarify specific points we've discussed. There are many times, unfortunately, where prospective buyers would unwittingly share sensitive information with me in an initial email inquiry regarding a home that interests them. It is the kind of information they certainly wouldn't want the seller to be privy to if they ever wished to enter into purchase negotiations. Luckily I don't represent the sellers, but what if I did?

Thinking about my conversation with John, I thought I would highlight it as a good example for homebuyers to follow. So, whenever you are ready to contact a real estate agent and before you engage him/her in a discussion about your real estate needs, do what John did. Ask about representation and what it means for you first. Ask follow-up questions if you have any and don't hesitate to ask for clarification if there is something you don't quite understand. Finally, if that agent does not welcome your questions, find one that will!