Prince George’s to Gain Upscale Grocer Wegmans

By Ylan Q. Mui and Ovetta Wiggins

Prince George’s County has inked a deal with high-end Wegmans Food Markets Inc. to build a store near Largo, a major coup for a region that has long struggled to attract upscale retailers.

The deal is expected to be announced tomorrow in a joint news conference with County Executive Jack B. Johnson (D) and Maryland Gov. Robert L. Ehrlich Jr. (R), according to two people familiar with the project.  The store will anchor Woodmore Towne Centre, a mixed-used development off Route 202 near the Capital Beltway that will include 750,000 square feet of retail and 1 million square feet of office space.  The site also features 950 single-family homes and condominiums.

“We’re looking for quality retailers that raise the bar for the available services and goods to the residents in our marketplace,” said Phillip Ross, president of Petrie Ross Ventures Inc., which is developing the project.

Wegmans fits that bill.  A family-owned company based in Rochester, N.Y., the chain offers pastries made with French butter, soy raspberry yogurt and cotija cheese.  It also boasts a European-style cafe, quality wines and a specialty housewares department and can be four times the size of the average supermarket.

The chain operates 70 stores in the Northeast, including one each in Fairfax and Sterling.  Last week Wegmans announced it is also building a store in Anne Arundel County, near Crofton.

The site in Prince George’s carries special significance for a community that has largely been ignored by upscale retailers.  The county, part urban and part rural, has an ailing schooll system and last year recorded a record number of homicides.  It is also home to expensive gated communities, a growing number of $1 million homes and a population that bristles at having to travel outside the county to spend money.

Gregory Holmes of Upper Marlboro, who helped launch a grass-roots group las summer called Upscale Prince George’s was delighted yesterday to learn about the new Wegmans.

“It’s long overdue.  The residents have a thirst and a hunger for a place like this,” he said.  “The bottom line is we live here; we’d love to spend here as well.”

Aurthur Turner, chairman of the Economic Development Committee for the Prince George’s County Chamber of Commerce, said Wegmans’ decision signifies that the county is “moving onward and upward.”

“People are recognizing that money can and will be made in Prince George’s County,” he said.

About 10 years ago, presidents of six homeowners associations and civic federations in central Prince George’s County wrote to more than 30 retail organizations, making them aware of the county’s growing middle-class population.

Turner was one of them.

“It’s been a very long fight,” he said.  “This shows that we’ve won a battle.  And we’re still not there yet.  We have more fighting to do.”

Jeffrey W. Metzger, publisher of the trade magazine Food World, said that Wegmans has pursued an aggressive growth strategy in the Washington area but that Prince George’s was a surprising choice.

“I think the demographic is narrower compared to the other sites they’ve opened in the Baltimore-Washington area,” he said.  “But one of the advantages they have is the tremendous attraction as a destination shop, and they will draw people from adjacent areas, including D.C. proper.”

Developer Ross said he is wooing retailers to the Woodmore development by touting the county’s statistics.  Household income around the town center is about $70,000, he said.

“People are well-educated, have a high level of disposable income, and this market is underserved,” he said.  “If others don’t see it, that’s too bad.  They’re missing out on a great opportunity.”

Gone are the days of listing your property and receiving multiple offers in a few short hours over the asking price (unless you have poorly priced your home).  With so many homes on the market now, it is a must that you make yours stand out as much as possible from the rest of the bunch.  It’s all about “Curb Appeal” and “Staging”.

If you want potential buyers to take a look inside your home, you’ve got to invite them in. This is where curb appeal comes into play.  Not too many people are fond of dining in establishments that look like holes in the wall – even if they have the best food in town.  Even though I actually know a few spots in DC that are holes in the wall but make off-the-chart curry tofu… But that’s a different subject!   What I’m saying is that the same logic applies to your home. Make sure your home is as presentable from the outside. If the home needs to be painted – get it painted. If the gass needs to be cut and edged – do it.  If you think a few shrubs, flowers, or plants would look nice – get that green thumb in motion.  Again, your aim as a seller should be to get the top dollar for your home!

 Staging is more than a thorough Spring cleaning. It’s what occurs after your home has been visited by every cleaning product, touch up paint kit, and spackle putty from your local home care store! It’s about creating an atmosphere, mood, or vibe if you will. Typically, a prospective buyer will make up his/her mind within the first 20 seconds of entering your home as to whether or not they would consider submitting an offer on your place. So, you want to create a mood that is inviting, open and appeals to the physical senses. Your home should look pleasing to the eye and smell fresh. Various deoderizers, potpourri, etc. will typically do the trick. You also want to minimize the amount of clutter in the home and minimize, if not eliminate, those personal photos all around the home. You want your potential buyer to begin to visualize his/her own belongings and photos. Seeing photos of family pets doesn’t help the case if your buyer doesn’t like animals.

 In short, trying to sell your home for top dollar is really about common sense and understanding human nature. Stop what you’re doing right now… Look around at the house you are pondering selling and ask yourself, “Would I buy this home for what I’m asking?” – That’s your answer! I would also like to throw in that as a Realtor for my clients, I’ve NEVER had a listing that has stayed active on the market for more than 20 days!

Copyright 2007

Douglas C. Ramsey

For many first time homebuyers the home they choose to buy is typically not the last one they will purchase in their lifetime.  I would also venture to say that the majority of first time homebuyers in the US probably haven’t accumulated a large amount of capital for a down payment on a home.  Thus, the amount of money financed through a lending institution will be much higher.  This, in turn, will spawn a higher monthly mortgage.  The likelihood of a higher monthly mortgage will put into perspective the affordability of the home you wish to purchase.

Consequentially, with these two assumed facts: 1) won’t be the last home that will be purchased and 2) don’t have a large amount of capital, it can be safe to say that the first time homebuyer may have to place his visions of the 5 acre wrought iron gated estate in an upscale community on the backburner for a few years.  In essence, you’ll have to buy what you can afford coupled with the understanding that the appreciation in the house will assist you in buying your “dream home” later.

I try to tell first time buyers that the home of their dreams will probably not be their “starter home”.  With this in mind, I also try to impress upon them the fact that they should look for something that they are comfortable with (mortgage, amenities, etc.) and can live with for the time-being while the home increases in value and equity is created.

After a few years of appreciation in the starter home you may be able to re-assess purchasing that dream home, and if not, be a few steps closer.  However, the whole point is to overcome fear of the unknown, find a good deal and “buy something” now in order to start building equity.  You’ll definitely thank yourself in the future!

Copyright 2007

Douglas C. Ramsey

Buyers relieved as market returns to ‘normal’

Experts say Prince George’s County is the most affordable in metro area

Area real estate experts agree that while real estate has slowed down in the past 18 months, the metropolitan Washington market will continue to be among the most active in the country.

Presidents of the local Realtor associations, along with an economist from George Mason University’s Center for Regional Analysis, convened to discuss the 2006 market and forecast its 2007 performance recently at the Annual Luncheon and Press Conference for Real Estate and Business Editors & Reporters held in downtown Washington, D.C.

The tone of the day was that the local residential real estate industry has entered into a healthy “market correction” phase, where prices remain more stable than in the past several years with more first-time homebuyers and previously rejected homebuying applicants experiencing relief, according to the Prince George’s County Association of Realtors (PGCAR).

Prince George’s County is shaping up to be the last bastion of affordable housing in the metro area.  According to statistics by Metropolitan Regional Information Systems (MRIS), a homebuyer could afford to buy two condos in Prince George’s County for the price of one in the District or Northern Virginia.

“Prices in the county are still the lowest in the region,” Donald Frederick, President of PGCAR, said in the news release.  “To even come close to DC’s rates, prices would have to almost double.  We expect to continue to see homebuyers coming to Prince George’s for our more affordable prices.”

Marty Almquist, president of the Greater Washington Commercial Association of Realtors, added that while D.C. is beefing up its Class A commercial space, Class B and C tenants may flee to Prince George’s County due to the rising prices in DC.

Source: PGCAR

According to popular sources 68.9% of the US population owned homes in 2005. While the majority of Americans see the benefit of home ownership, there are still a large percentage of individuals who don’t own homes and who also don’t think that home ownership is tangible given their perceived circumstances (e.g. poor credit, not enough money, consumer debt). I have always been one who believes firmly that we create our own reality and that if the desire is there to buy a home, methods do exist and will unveil themselves to the degree of your desire!

You don’t need a large sum of money to purchase real estate. In fact, that is one of the biggest misconceptions about buying a home.  Furthermore, depending on your credit score there are certain lending institutions that will allow you to finance your home at 100%. This means that you would receive a loan for 100% of the sales price of the home without coming out of your pocket with a down payment.  Now, this does have its advantages and disadvantages, of which, I will write about in a future article.  You may also be able to finance your portion of closing cost settlement charges by wrapping them up in the loan. A situation such as that would be a true “no money down” deal.

Of all the major wealth creation vehicles real estate very powerfully utilizes a concept known as “leverage”. Leverage, as it relates to real estate, is the ability to control large dollar amounts of a commodity (the property) with a comparatively small amount of capital.  What this means is that with little to no money down you can purchase a property valued at many times your initial investment.  For example’s sake, let’s say you purchase a $100,000 home by placing down $5,000 out of pocket. Let’s also say that the home appreciates 5% the first year of your ownership. This brings the value of the home after the first year to $105,000. You’ve just doubled your initial $5,000 investment in 1 year and now have $10,000 worth of equity in your home by using leveraged money! It would be very difficult to receive a 100% return on investment in 1 year in the stock market, let alone, a newly created business venture.

Another advantage that Real Estate possesses over ownership in stock revolves around taxation – that oh so often dreaded “T” word! I rather enjoy looking forward to tax season. I tend to get pretty hefty returns based on owning multiple properties. Now, I’m no tax professional, and I would suggest you seek council from your tax attorney. But, depending on your tax situation, you can deduct the amount of money you pay in interest and property taxes from your home. Moreover, if you own residential investment property the situation is almost one in which you can’t help but to do everything in your power to buy an investment property! Not only would you have tenants paying your mortgage each month, but you’re building equity AND you’re deducting the interest and property taxes that your tenants are paying. So, in essence, your tenants are paying YOU to pay your mortgage;  paying YOU to increase the equity in the home you own; and paying YOU to receive deductions on your tax return!

Home ownership is a reality that any creative person with vision can attain. If the want and desire is truly there, you can definitely make it happen!

Douglas C. Ramsey

Copyright 2007