Some Rules are Meant to be Broken

There are any number of conventions, standard practices and rules in homeselling that seem to be set in stone. And for the most part, these things seems to be ironclad, but there are always exceptions…

For example, homesellers are advised to make sure their decorating scheme is neutral in order to sell.

If you read The Washington Post's Home section, you know that they have a feature called “Feels Like Home,” in which an area homeowner writes in about what they love about their home.

One man wrote in to say that he bought a condo in which the previous owner had installed leopard print carpet all over the second floor, not too long before selling the place.

Conventional wisdom would say that this was a recipe for disaster. And yet this condo did get sold. Not only did it sell, the new owner ended up keeping the carpet.

This does not mean that you should ignore the sound advice of realtors or other real estate industry professionals. You cannot count on being the exception. But you should know that there is a buyer for your home, no matter how unique or unusual it may be.

Going Green Means More Greenbacks

If you have negative ideas about “going green” or if you think that concern for the environment is something for certain people, but not for you, think again.

Investing in environmentally-friendly improvements will pay off big in the future. It will make you home safer and more efficient for you and your family. And when you prepare to sell, it will make you home more attractive. You will be able to tell potential buyers about how much they can save on energy costs because you’ll already know!

Go with the flow
If you install low-flow fixtures, you will be able to slash water bills for you and any future owners.
Low-flow doesn’t mean low pressure. These fixtures have improved over the years, so you can find low-flow fixtures and showerheads that will give you the kind of water pressure you want.

Go Tankless
A tankless water heater will heat the water you need, on demand. And it will costs about 30% less than what it costs to use your standard water heater.

Get energized
Look for Energy Star-certified appliances. It may be tempting to get other models, especially if they are cheaper, but try to think about how much you’ll save over time if you get an energy efficient washer, dryer or air conditioner.

Taking the LEED in Conservation

If you have not heard of it before, LEED certification is given to building projects that have met rigorous standards set by the U.S. Green Building Council. LEED stands for Leadership in Energy and Environmental Design. Right now LEED standards apply to commercial construction and renovations to buildings that are already standing. The council is now looking into developing standards for new homes and developments.

Buildings with a LEED certification are good for the environment because they follow strict guidelines that ensure that energy is not wasted and that the environment is not made worse because that building is there.

LEED certification is good for businesses because it shows the public that they are committed to conservation and that they care about the environment. It also doesn't hurt that the media takes note of LEED certification, either. It can also boost employee morale, since it feels good to know that your company is interested in improving conditions on the planet.

One example of a LEED certified building in Maryland is the UMUC Inn & Conference Center. In 2005 it earned the distinction of being the country’s first environmentally friendly hotel and conference center.

Companies that build homes are starting to do more and more to build “green,” so your next home may be much more environmentally friendly than your last.

Look for more on Friday about environmentally-friendly home improvements you can make that will increase your home's value

Unusual Homeselling Incentives

Pay a $100 essay contest entry fee…but no mortgage…

Buy one home and inherit the owners' retirement home…

Membership to a golf club…

A car…

What are these?

These are some of the "creative" ways in which homeowners are attempting to sell their homes.

After seeing her home sit on the market for three summers, one woman decided to give it away to the winner of an essay contest. She wants to use the $100 contest entry fees to pay off her mortgage and closing costs. (So far 500 people have entered and she is hoping for more to be able to cover costs.)

A couple thought to sell their home and will their retirement home to buyers willing to care for them in their old age. The home was sold, but the buyers did not take on the bonus of the retirement home in exchange for caring for the sellers in their golden years.

Other sellers have tried more conventional incentives, like cars and other material goods as a way to sell their homes.

Added incentives, above a market-based price and a well-cared-for home, can sell a property, but I would caution sellers before they take such extreme measures.

What is a Notice of Default?

A Notice of Default is a declaration that someone has not made timely payments. In the case of mortgage lenders, a lender can put an official notice in the public record to state that payments have not been made.

The laws differ from state to state, but usually there is a number of days that a lender must wait before they can file a Notice of Default. Once the lender has let this time period pass, they can file the notice and then must wait for another specified period of time. It is during the waiting period after a Notice of Default has been issued that a borrower can make up for missed payments. If a borrower can do this, then they will be able to keep their home and the loan will no longer be in default.

Once a Notice of Default has been issued, some people refer to this a pre-foreclosure.
Nothing with the word “foreclosure” in it is cheerful, but the “pre” means that there is a chance that foreclosure can be prevented.

If you have gotten such a notice and are foreclosure you may feel defeated, but this is not the time for inaction. Work with your lender to come up with a solution and stay in your home.

Cleaning Green

Spring is almost here...and you know what that means: spring cleaning.

Whether you are cleaning for you and your family or because you are having an open house, consider whether the products you are using a doing more harm than help.

Many of the home cleaning products we buy are convenient, but they can be potentially harmful. Sometimes these products release toxins into the air and these toxins can linger, especially if your house does not have the best ventilation.

One way to avoid this is to use natural products to clean your home. The interesting thing about these natural cleaners is that they are all things that you can safely ingest, so that tells you that there is nothing wrong with breathing them in as you clean. Just be certain that you do not mix homemade cleaners with store-bought cleaning products.

You can use a vinegar solution to clean counters, floors, and drains, Vinegar can help you say good bye to hard water build-up and ants as well.

Baking soda is great deodorizer for the refrigerator. You can also use it to scrub hard-to-clean stains on pots and pans.

You can use lemon juice in the same ways you use vinegar, with the added bonus that the lemon juice will add an invigorating scent.

Check it Out from All Angles

I know a woman who has lived in her home for many, many years and she seemed perfectly content. So I was surprised one day when she said, “If I had come over here at night, I would never have agreed to buy this house.” This woman didn’t like the fact that the end of her street was not well-lit at night. This was something she hadn’t noticed when she and her husband considered the house because they only visited the area in the daytime.

That got me to thinking: sometimes people really do not thoroughly investigate the area they are considering. Now this woman does not regret her purchase; she was simply saying that she did not do all the research she could have.

I know someone else who bought in a transitioning neighborhood and said, post-purchase, that they didn’t realize just how many vacant buildings were on the block because she was so focused on their own building.

As a potential homeowner, you do need to focus on the property you want to buy.

When you are looking at a home, don’t forget to:

Drive through the area at night
Look at the surrounding blocks
Think about the commute

Don't Wait for a Gov't Bailout

Earlier today I listened to President Bush discuss the housing situation as he addressed the nation (and the world). He did not feel that a widespread bailout was the answer to stemming the tide of foreclosures. To him, government intervention on that scale would hurt rather than help.

Whether you agree or not, the message is clear: if you are worried about foreclosure, you cannot count on the government stepping in to save you. Yes, the government is looking at how it can assist homeowners and deciding which course of action is best, but you cannot wait on them.

It is in your best interest to contact your lender or a trustworthy real estate agent now if you feel you are in danger of losing your home. They can help you decided what is the best way to proceed.

If you have been ignoring mail pertaining to your property, please open it. There is likely important information in your mail. If you have been notified of changes in your mortgage rates or been given information that affects the ownership of your home, then your lender has done their part. It is up to you to take action.

What is the risk in purchasing a Bank foreclosure?

Buyers today are faced with too many options when purchasing a home. This can be an especially difficult time for those who are new to the game and trying to buy their first home.

Bank properties are not always a bargin but they can offer great, sweat equity opportunities. I sell bank owned properties for a large national bank and I see the condition of these homes on a daily basis. In most cases the buyer is expected to purchase these homes in "as is" condition. This means, what you see is what you get. Sometimes there is no electric service or water service so you don't know if everything is working properly. Many banks will not accept home inspection or other forms of contingencies. You can however, complete an inspection prior to writing an offer to determine the condition of the property. In many cases the banks request non refundable deposits. If the buyer doesn't settle due to a reason caused by the buyer they will loose their entire earnest money deposit. Now for the bright side.

Purchasing from the bank is safer then buying at foreclosure auctions for a few reasons. Number one, you can see the inside of the property before making an offer. The bank has cleared title by going through the foreclosure process and it is unlikely that anyone will object to the sale. At a foreclosure auction you have to wait several months for a judge to sign an order approving the sale from the bank to you. You don't have this delay when purchasing from the bank directly. You also have to pay carrying charges from date of auction to date of settlement at a foreclosure auction.

There are great opportunities in the market today for buyers. Hire an experienced real estate agent who knows the geographical area you are searching in. Get pre-qualified and approved for financing prior to going out to look for properties. Make sure you are fully aware of the risks and returns of making a purchase decision. Most of all, get out there when the market is too good to be true and buy a home.

Don't Let Lowball Offers Get You Down

Some of us are newshounds, leaving the television tuned to CNN as we check online news, while some of us scan a newspaper at a newsstand for headline and figure that is enough. No matter what category you are in you’d have to be living in a cave no to know about the current difficulties in the housing market.

That said, as wonderful a job as the media does to inform us, sometimes we end up misinformed because the stories that take the forefront become overwhelming. People who keep hearing over and over that housing prices are dropping and that the real estate industry is in trouble, get the idea that they can buy a house for nothing. This is simply not true.

If you are selling, you may get some lowball offers from people who figure that you are desperate to sell at any price. If nothing else, they may think it is at least worth a shot.

Don’t let ridiculously low offers unsettle you. There are still buyers who are aware of the market and know that while they may be able to offer less than a few years ago, they cannot expect to get a house without recognizing its value.

What is a short sale and how does it work?

Short Sale....a real estate sales method that occurs when the lender(s) accept less cash from the sale of a home than they are owed. That's it. It is that simple.

Unfortunately for sellers, it is not so simple. There is stress along the way and credit ramifications that should be considered before entering into this type of sale method. Let's discuss your options and the reasons you may need to enter into a short sale.

You are behind in your mortgage payments and cannot catch up. You absolutely have to move, in both cases the net value of proceeds are less than is owed the lender. These are the two main reasons I have seen people in short sale situations. If you know your are in this situation, act sooner rather than later and employ a real estate agent that has experience with short sales. If you ignore the problem .......it will not go away!

Please understand the mechanics of the sale and what to expect before you get started. This is not for the faint of heart. You need to select an agent who is a tough negotiator, patient and experienced. First, ask your agent to prepare a "seller's net sheet" to demonstrate the shortfall of funds that is expected at specific sales prices. It is essential that you disclose to the agent any and all loans and liens against the property. The proceeds may be much different than you originally thought they would be. It is also very helpful to prepare a letter addressed to your lender authorizing the agent to discuss your account with them. Contact the lender to see if they are willing to entertain the idea of a short sale. There may be occasions when a lender may simply refuse to consider a short sale, then your options will change.

You're home should be aggressively priced and marketed by the agent you selected. If you are running out of time you do not have the luxury of playing with the pricing, you need a contract. You're agent should disclose in the listing that the sale is subject to third party approval. Even though you still own the property, you cannot clear title in this type transfer unless you can pay the lender in full. This is the reason for third party approval. Be prepared to stick this out. Most lenders today are overwhelmed with loans going bad and foreclosures. It can take months to get a short sale approved after the contract is submitted to the lender. The buyer involved must be willing to wait for the lender's decision, if not, it's not worth the time and energy to begin the process.

Make it you're responsibility to become educated regarding the ramifications this type sale has on your credit and tax situation. Real Estate Agents are prohibited from giving legal or tax advice. Our job is to bring a qualified buyer and seller together while representing the best interest of our client.

A short sale isn't for every situation and it certainly isn't the end of the world.

Call me if you need information.

When should I Buy my first house?

If you are one of those people who have been sitting on the sidelines waiting to purchase your first home, its time to move. What could a first time Maryland homebuyer be waiting for?

It is clear that we are experiencing some of the best interest rates that we have seen in many, many years. It is also true that there is an abundance of homes for sale with inventories at a 27 year high. There are also loan programs available that make purchasing your first home easier than ever. Real estate is a fantastic long term investment.

To put things in perspective, I often think of my parent’s purchase of their first home, a 100 acre farm in southern AA county. In 1954 they purchased the farm with a rather tired 18th century home on if for $12,000.00. Today, those 100 acres (if still in tack) would be worth somewhere around 1.7 million bucks. You do the math, the return is excellent. If you had invested that $12,000.00 in the stock market at a decent rate of return, you may have earned just about the same using this property and scenario. If you had done that, where would you have lived, with your friendly neighborhood stock broker? You would miss out on the joys of building equity while experiencing the pride of owning a piece of the American dream. Don’t you think that this kind of long term appreciation will continue? There are more and more people born every day. There is no rebirth of land mass in this county that I am aware of. So, get moving. Maybe your parents and possibly your negative friends have said, wait to buy. Wait for what? Do you think prices are going to decline for the next 5 years? You are wrong! Do yourself a huge favor and buy a house.

The first step is to find out what you can afford and what that translates into a monthly INVESTMENT. Yes, interest and your house payment is an investment in your future, plain and simple. I suggest you contact a bank or a direct lending mortgage company that you and most people you know have heard of. Names like SunTrust, Bank of America, Wachovia and your credit union if you have one are good starting places. It’s free and educational to meet with a lender to explore your options. Regardless of what you here there is plenty of mortgage money available. The FHA insured loan limits have just been increased, there are great first time buyer programs available. It’s possible to purchase your first home with very little out of pocket expenditure. Don’t be a cynic, the opportunities are endless with 3,861 homes for sale in AA county according to the Metropolitan Regional Information System (MRIS) our local multiple listing service, don’t your think you can find something appropriate?


Take a moment to review a Current Market Snapshot of your desired buying zip code.

Overbids

When buyers are competing for a property, this can be referred to an overbid situation. For the buyer who is really anxious to get the home they want, it can be nerve-wrecking.
There is nothing like having your heart set on a property because it is right for you and your family in so many ways. If you want to come out the winner, you have to do your homework.

Study the seller
No, don't hire a private investigator. Just make sure to find out why the property is being sold. A seller's motivation can give you clues about kinds of concessions that will be most welcome. For instance, if a home being sold to settle an estate, then the sellers will want as much money as they can get. They will likely be less willing to cut the price than a family who needs to sell a home quickly and relocate.

Study the Market
Look at the final sales price for homes that were recently sold in the area near the property you want. These "comps" (short for comparables) will provide more insight than if you simply make your decision on what to offer based on the asking price. You need this knowledge because you can be sure that the seller and the seller's agent are aware of the going rate for homes in the neighborhood.

Fearless First-Time Homebuying

Recent reports have shown that would-be first-time home buyers are being scared away from buying by the glut of foreclosures and the fear of falling prices. For a long time conventional wisdom has said that buying a home is an important step to take on the road to securing your financial future, but now some are not so sure. This is unfortunate because this fear means that many people will continue to rent at a time when they could buy a home. With more people renting and fewer buying, rents are likely to rise.

If you are in good financial shape, why not consider buying? You can take a lesson from the recent foreclosure crisis and not agree to buy more house than you can afford. You can also see the dangers in some adjustable rate mortgages and act accordingly.

There is nothing like the feeling of homeownership. Even if you think you really love the place you are renting, you cannot imagine the sense of accomplishment one gains from being a homeowner.

As long as you do your “home”work first, you will find that there is nothing to fear.

Fannie and Freddie are Changing

With all the talk about change these days, you should know that change is coming to the mortgage industry.

New York state’s Attorney General, Mario Cuomo, has agreed to end his investigation of Fannie Mae and Freddie Mac after the two organizations agreed to change the way they do business.

Cuomo was quoted as saying that he thinks this will really change the mortgage industry since Fannie Mae and Freddie Mac are so influential.

If you didn’t know, Fannie Mae, which is based in Washington, DC, stands for Federal National Mortgage Association. The Federal Home Loan Mortgage Corporation or Freddie Mac is based in MacLean, VA.

Fannie Mae and Freddie Mac have admitted no wrongdoing, but each organization will pay $12 million to set up an in independent committee to keep an eye on the way homes are being appraised.

Mortgage lenders who work with Fannie Mae and Freddie Mac will no longer be able to use their own staff for initial appraisals. Nor will they be able to use appraisal management firms that have interest in or own outright.

Location, Location, Location

You've heard those famous three words to describe what is really important in real estate. Location really does matter. If you are looking to buy a home or if you are a seller who wants to price a home, you cannot just look at the house itself. You have to factor where it is into the equation to really get a good picture of how desirable a property will or will not be.

As a buyer you cannot buy a property in isolation. The greatest features won't help if you have a burdensome commute, if there is a factory nearby blowing smog, or if you question the quality of schools in the area. On the other hand, you may want to consider a house that is not quite as pretty if it is within close range of the neighborhood amenities that you find most desirable.

As a seller, you do not want to price yourself out of a sale, but also you do not want to discount the benefits of living in a great area. If you are near transportation hubs (highway or metro), good schools, great shopping, parks, recreation or if your property provides a spectacular view, these things have to be considered as you price your home.