Category — Blogs

Every so often a new report is released that measures the state of the housing market based on the average price of homes sold nationwide.  Then they chart that number to see if it’s gone up or down over the last time they looked (monthly or quarterly).  The media loves to headline the result with a lot of drama – particularly if the number goes down – and then provide dire predictions from economists or other analysts. 

One of the most important rules about real estate is that it is LOCAL  The thing to keep in mind is that the numbers they measure are averages nationwide that may or may not reflect the trend in your region.  For example, nationwide there was a pretty big drop in home prices over the last few years, yet some areas were barely effected and others ended up completely under water.  Interestingly, the first markets to crash are now the earliest ones to show signs of a solid recovery (northern Virginia for example).

A housing market like none other in history is hard to predict because so many factors come into play.  Think of the last few years as a large ball that was dropped from up high.  The first bounces are big and then they get smaller and smaller until the ball eventually stops and rolls along the ground.  This is what the housing market is doing.  We are past the steep price drops and are now seeing the smaller peaks.  Eventually everything will calm down (if someone thinks they know when that will be, ask them where they got their crystal ball).  A “normal” market is balanced and overall realizes a modest yearly increase in home prices.

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Ball goes up – NAR released stats showing resale home prices have gone up 7.8% in April 2010.

Ball goes down – Prices fell 0.5 percent in March from February, according to the Standard & Poor’s/Case-Shiller 20-city index released Tuesday, May 25, 2010.

Regional Maryland statistics for Howard, Baltimore, Anne Arundel and Carroll Counties show that these markets are up over the same time last year.  The number of homes for sale and the numbers of homes sold indicate that these markets are balanced - neither a buyer’s nor a seller’s market.

It may come as no surprise that the crooks have figured out how to scam people looking for a home to rent online. 

Basically what happens is the data for a home listed for sale or rent is copied into a bogus Craigslist ad (unbeknownst to Craigslist of course).  Often the listed rent is way under market to attract attention.  Prospective tenants make contact and are told to wire the money for the security deposit and first month’s rent.  When the tenant shows up at the home the owners (if it isn’t vacant) have no idea what is going on.  Identity theft occurs when the prospective tenant emails the rental application to the fake “owner” thus giving them their social security # and other private information.

In our area this has been happening on Craigslist for sometime.  Most agents are aware of the situation and are savvy to what’s going on, but even then it can be hard to catch if your listing shows up on some website somewhere as a tool for scammers.  A home I had listed for sale and rent a couple of years ago appeared on Craigslist at a much lower rent (without my information to contact) – fortunately I caught it and had it removed, but it was impossible to trace who placed the ad.

This same scam is being done on other rental sites such as forrentbyowner.com.  So the bottom line is: beware and whenever possible use a Realtor® for all of your real estate needs.

For more information go to: http://www.fbi.gov/page2/july09/housingscam_072909.html

Condo Sellers and Buyers who are looking at purchasing a condo with an FHA or VA loan need to be aware of the new guidelines put into place by the Federal Housing Administration (FHA) last December.  Here is a  list of some of the new rules:

• The seller must have the condo management company fill out a questionnaire which can cost between $50 and $200 depending on the management company.  Some Associations are slow or not easy to work with in getting the form done which can seriously impede the buyer’s loan approval.
• No more than 15% of the total units can be in arrears (more than 30 days late) of their association dues.
• At least 50% of the units must be owner-occupied or sold to owners to intend to occupy the units.
• No more than 25% of the property’s total floor area can be used for commercial purposes.  In addition the commercial portion must be homogenous with residential use and free of adverse conditions to occupants.
• No more than 10% of the units may be owned by one investor – which also applies to developers/builders who rent vacant and unsold units.  If there are 10 or fewer units in a project, no single entity may own more than one unit in the project.
• Common elements within a facility/project must be 100% complete.
• The project must be covered by adequate insurance (hazard, flood, liability, and others as required by law) that meets the requirements of coverage established by FHA with adequate reserves.
• The condo project must not be in litigation.
• Purchaser must have contents insurance coverage – called an HO6 policy.

If the HUD website shows that a particular condominum project is “approved” each individual unit must be “re-certified” under the new guidelines when a contract for purchase is received.  Every FHA loan must meet the new guidelines regardless if another unit in the same building/development was recently sold and approved.

Keep in mind that if one or some of the new guidelines (I’ve given only a partial list here) are not met, financing will not be available.  Please check with your lender for more information.

According to Forbes, Howard County, Maryland ranked 3rd richest in the nation based on median household income!  Montgomery County, MD comes in 10th.  Other area counties in the Top 25 are Calvert, MD, Charles, MD, Louden, VA (No. 1), Fairfax, VA, Arlington, VA and Alexandria, VA counties.

To check which other counties made the top 25 visit: http://www.forbes.com/2010/03/04/america-richest-counties-lifestyle-real-estate-wealthy-suburbs_slide.html

NAR, National Association of Realtors, has a phenomenal website for homeowners loaded with great information on home maintenance, upgrades and more.  This site will help you plan and organize home projects, give you ideas for home improvement as well as timely information on taxes, insurance and finance.

If you register on the site you can save the information you find, create to-do lists and set project reminders.  You can also customize the site based on where you live, how much money you want to spend (or save) or how handy you are with power tools!

There is even a section that helps you help your community with how-to’s on starting a Neighborhood Watch program, building a local playground and participating in city/county planning projects.

Click here to check it out for yourself –  HouseLogic .

Recently, I reported that the IRS did not have a form for applying for your tax credit.  Well, the wait is over.  Welcome Form 5405!

Click Here for Form 5405 and Instructions 

Thinking of buying a home?  You need an agent of your own!

Why?

As your buyer’s agent, I:

• come free of charge!  That’s right. . .the seller pays all selling commissions!
   
• will know the very day your dream home comes on the market and can get you in to see any home quickly – this is very important if you are looking at short sale or foreclosure “deals.”
   
• work for YOU not the seller – I can’t stress enough how important this is – many times buyers go directly to the listing agent thinking they will get a better deal that way.  Rarely is this the case, because the listing agent works only for the seller not the buyer.
   
• am best equipped to negotiate with the listing agent a good deal wtih terms that benefit you.
   
• will make sure that your interests are protected when writing a purchase contract.
   
• can guide you to lenders who are honest and have good rates and loan programs.
   
• will remain your trusted real estate advisor long after your transaction is complete.
   
• am an Accredited Buyers Representative (ABR) which means I have completed extra criteria and coursework that focuses on providing the best results for home buyers. 

This is just a short list of the many things I will do for you as your buyer’s agent.  

Call me at 410-715-3261  to set up a customized buyer consultation!

EXTREME HOME MAKEOVER: Home Edition coming to Maryland —

ABC’s hit TV show Extreme Makeover: Home Edition is looking for nominations for a deserving family in Maryland. 

For more information, go to: http://mix1065fm.radio.com/2010/03/16/want-extreme-makeover-home-edition-to-build-you-a-new-home-theyre-looking-for-a-home-in-maryland  

What does it take to be picked for an Extreme Makeover?

“We’re looking for those special people who have amazing strength of character and never give up. Whether it’s keeping their chin up in really tough circumstances or going out of their way to help others. We want to help people whose stories have really affected their community or made a big difference in other people’s lives.” Shumsky added: “There are a lot of people who are heroes to those around them because of the way they inspire others and quietly serve their communities on a daily basis.”

Pass the word!–The deadline is April 2, 2010

It is becoming commonplace for Realtors^® and home buyers to require a good C.L.U.E.^® report as a contingency to a purchase offer.  The C.L.U.E.^® Home Seller’s Disclosure Report is an independent source of information about insurance losses at your home address within the past five years.

If you have not made any homeowner’s insurance claims for your home in the past 5 years, the report can provide comfort to potential buyers and you may want to order one up front when you list your home for sale.  Also, the fewer claims made against a particular property, the lower the buyer’s homeowner’s insurance will be.

Information that a home seller may wish to keep private (e.g. Name, Social Security Number and Date of Birth) are not displayed on the report.

You can order your C.L.U.E.^® report online for your primary address or by mail for other properties you own.  Cost is $19.50 – NOTE: buyers and real estate agents are not allowed to order a report for any property that they do not own.

Click Here  to learn more and order a report.

Tons of white stuff fell on Maryland yesterday and most of us are snowbound in our homes. Here’s a link to the Howard County map of plowed/salted roads to see if you can get out of your neighborhood (they update this every 15 minutes).

http://snow2.co.ho.md.us/Index.asp

Meanwhile have fun shoveling your walks and driveways. . .or maybe you’re sitting  in front of a roaring fire with some seasonal eggnog and enjoying the snow-enforced break!