What Buyers Want: Basic Edition

If you are preparing to sell your home, you should think about what it is that people shopping for homes really want. There are some things about your home that you will be able to change and some thing that you cannot change. AT the very least, you can play up your home's best qualities so that these things attract more attention that some of your home's weak spots. And if you are thinking about improving your home, pay attention because you want to invest your home improvement budget wisely.

Kitchen
Although you may have heard that people are no longer looking for the huge homes that were all the rage even just a few years ago, buyers still appreciate a large kitchen and they really like kitchens with islands. Experts say this is one area where it pays to do some remodeling.

Home Office
Whereas people once wanted home theaters, they now want home ofices. Some say they'd even prefer a home office to a dining room.

Energy Efficiency
Buyers are looking for homes with energy-efficient appliances, good insulation and energy-efficient windows, both because they are concerned about the environment and they want to keep energy costs down.

Perfect Glen Burnie Area Home

This is a Perfect Home, and a Great Deal !

Anne Arundel County - 817 Sunnyfield Lane

I see lot of homes and I was amazed at how well maintainted this great colonial is in northern Anne Arundel County. Property has three finished levels, an in-law first floor bed and bath with private sunroom.

Updated home with gas heat, fresh paint, sparkling tile and hardwood floors, garage and too many beautiful items to mention.

Agents show this one, after looking at fair to below average homes, your buyer clients will thank you for bringing them here. Great price for what you get. Seller is motivated to head south to Florida.

SEE MORE DETAILS AND VIRTUAL TOUR HERE.

Contact John Day for a private showing.

When You Sell On Your Own, You Miss Out, pt. 3

All week we have been discussing why although selling your home on your home may look like a great way to save money, you may not save that much in the end.

Most of us consider ourselves to be savvy consumers, but how often do we really enter into negotiations? We know how to find bargains, but we are not skilled in the art of the deal. If you sell your own home, you may be working with a seller who had contracted with professionals with years of experience and they will use their knowledge to their advantage. If any thorny legal issues crop up, you may find that you are in way over your head.

As we mentioned earlier, you will need to be able to overcome buyer skepticism about FSBO and get the word out there. If your efforts do not work, you may find that your home sits on the market much longer than you expect and you may end up lowering the price, while still paying to maintain that home.

Sometimes it is good to get a little help. If you are looking for a knowledgable, experience real estate professional in Maryland, call John Day at 410-507-2909

When You Sell On Your Own, You Miss Out, pt. 2

Earlier this week, we discussed how it might be really tempting to try to sell your home on your own to save money, but you have to decide if you are really prepared to take on all of the work of a real estate professional without all of the advantages that come when you work with someone in the business. Consider—

Marketing power
With so many print and marketing avenues open to the general public, it may be easy to assume that you do not need a realtor's help to advertise the home you want to sell.

What you may not have considered is the cost of all this advertising. Many real estate brokers will assume the costs of print ads in local, regional and maybe even national publications. Do you want to pay these costs?

Also, when you work with a real estate broker who has well-connected, they will have resources to help locate interested buyers in the immediate area or even nationally or internationally. Some homes do not sell to a family acorss town, instead they are bought by wealthy firms who need to locate residences for their executives. Are these the kind of networks that you can access on your own?

When You Sell On Your Own, You Miss Out, pt. 1

In this do-it-yourself, recessionista climate people are trying to do more for themselves and "outsource" less. This is great for some services, but if you are thinking that you want to try to sell your home on your own, consider some of the advantage of working with a real estate professional.

Do you have the time?
Most things take more time and effort than we think. It will be very difficult to to go to work, raise your family, hang out with friends and do all your regular activities, while at the same time putting in the time and energy necessary to get your home sold.

Is there a FSBO stigma?
Some (but certainly not all) buyers may be turned off when they see a "for sale by owner" sign. They may worry that the owner will be unprofessional or not sure of what they are doing. You may be confident and quite professional, yet you have to know that selling a home on your own will invite some skepticism.

Foreclosure Listing in Millersville, MD

Fannie Mae Foreclosure

412 Aurora Drive, Millersville, MD

$249,900

This rancher is on a 1/2 acre lot with fenced yard, large paved driveway, several sheds/outbuildings in rear, deck and patio.

Interior has 3 Bedrooms on main level with two full baths. Hardwood floors. Kitchen is missing or borrowed but not here. Needs appliances and cabinets.

Basement had some discoloration problems but professionally cleaned up.

Bank owned foreclosure, special financing may be available with Home Path.

Click the following URL to see the listing:http://mrislistings.mris.com/Matrix/Public/Portal.aspx?ID=34984837546

Want to Buy a Fixer-Upper? FInancing is Your First Challenge

If you think you have the know-how, energy, time and patience to buy a fixer-upper, then you should go for it. However, before you take the plunge, be aware that one of the first hurdles you will face is getting financing for your dream project.

Lenders are already wary of giving people money to buy homes that are recently built and/or in amazing condition, so of course they are also skittish about lending money for houses that involve work.

You can strengthen your loan application if you have a report from an engineer or contractor estimates that show how much time and money it will take to finish fixing up the home you want to buy. You can also get a real estate professional to help you with a report to reassure lenders that you will not be improving the property to the point where it must then be priced way above the prices for comparable homes in that neighborhood.

You can turn to John Day with your questions about Maryland real estate. Call him anytime at 410-507-2909.

What makes a great real estate agent?

Better yet, maybe we should ask why are there bad real estate agents. I struggle with this topic because I do not like to accept the fact that in the real estate business there are unqualified agents and unfortunately unscrupulous agents. There are not so nice people in all industries.

When I read statistics that say much of the public's perception of real estate agents is equivilant to that of their perception of used car sales people it hurts. Personally, I have only had good luck with the used cars I've purchased and I have met, what I considered, good and bad used car professionals. Real Estate is my profession, it is also the profession of hundreds of thousands of quality, dedicated, honest, knowledgeable people. I know many of these people who care deeply that they do the right thing for their clients and customers each and everyday. I know the ones that loose sleep if they think they have done anything to hinder a transaction.

So what's wrong with the real estate industry? Do we have more "problem children" than other industries or do we hear more about the problems than in other industries? Possibly the public sets itself up for very high expectations when buying or selling a home. This transaction, involving the purchase or sale of a home is extremely emotional for most people. It is very stressful and nerves are sensitive to stimuli, including the ups and downs in the process. It's easy to pull the trigger and point the finger away from ourselves.

I believe that the industry is overcrowded and too many people think there is easy money and little work involved in this business. Why do they think this? Maybe it's because of the education requirements and minimal investment to become an agent. It takes 4 semesters to complete courses in your chosen field to get a BA or BS degree but it takes one week to complete a basic real estate course. This needs to change. If it were much harder to become an agent, people with a bit on the ball would be those allowed in and the rest would walk. Most courses are free, it takes a few hundred dollars to get E&O insurance, join a MLS service and a board of real estate. How easy is that? Too easy and I for one would like it changed dramatically. You cannot train people to take pride in what they do, you cannot train them to work from a center of integrity but you can make it really hard to be part of this group. I get frustrated because in many cases it's harder to deal with agents than very difficult clients. A real estate agent with not so good intentions or skills can ruin a transaction and leave the seller/buyer and industry in a worse place than before.

Statistics show that most home sellers interview less than two real estate agents when selling their home. Why? because the perception is, "they are all the same", how far from the truth. When you get ready to sell your home, negotiate a short sale, buy your first, second or third home you must interview several people for the job. Use the same criteria as you would for hiring a home professional. You should call references, ask for proof of how many homes they have sold, preview their online marketing abilities and find out who they are. Buying or selling a home is tricky today, the average contract I see is 40 pages with addendum.

I doubt my little Blog here is going to change the real estate industry.

In the meantime, you should hire a real estate agent that shows an interest in continued education in their field and don't settle for the first person through your door, there are over a million of us across the country so there are plenty to talk to.

Read Inman News Article by Teresa Boardman who has hew own perspective.

Foreclosure in Arnold Great Deal!

Perfect Opportunity To Own A Bank Owned Home in Annapolis. Interest rates are Still.....very good, it's still a buyer's market and Foreclosures are often good values.

If you have been waiting for a better real estate deal, maybe it's time to get off the proverbial fence and make a purchase. House needs some TLC but you can handle it.

CLICK HERE FOR MORE DETAILS

What is an assumption (in real estate)?

Years ago, someone told me that a relative of ours got a beautiful house because they had taken over the mortgage from friend who were moving to another city. According to family folklore, this relative only paid $100 or $1000 on the house (depending on who you ask). How was this possible?

This was an assumable mortgage made possible by an agreement called an assumption. This means that they buyer agrees to assume responsibility for the payments on an existing mortgage. These agreement alleviate some of the hassles the buyer and seller would have in a conventional home sale. And if, as in the case mentioned above, the remaining mortgage balance is very small, it is great for the buyer. (Although we know few home sellers who could afford to be so generous.) The buyer avoids having to take out a brand new mortgage loan and doing this may help the buyer avoid higher interest rates.

But the buyer does not always get to just take over the mortgage: sometimes the bank will ask the buyer to pay an assumption fee.

Foreclosure and Credit Card Interest Rates

Foreclosure (or any other negative filing in your credit history) does not happen in a vacuum. Foreclosure can have an effect on your credit cards. Because of universal default, a credit card company can see that you have had trouble paying back one creditor and raise your interest rate because they now see you as a high-risk customer. It does not matter that you may have always made timely payments in the past. Past good behavior can be ignored in the light of any present difficulties. So if your house is foreclosed upon, you may find that your credit card interest rates increase. At least this is how it has been up until now…

Starting February 22, new legislation that will cut into the power of universal default will go into effect. One change will be restrictions on rate increases during the first year and borrowers must be given notice in a more timely fashion if their rates for future purchases are going to increase.

Read more about this new legislation: Clearing up some misconceptions about the Credit CARD Act

Things Sellers May Neglect to Tell Buyers, pt. 2

Earlier this week we discussed some things a seller may neglect to tell a potential buyer, emphasizing how important it is for buyers to do some research on their own and not rely solely on the seller’s word. Here are some other areas to consider researching on your own--

Atmosphere
When it comes to an owner's point of view of their neighborhood, you have to take it with a grain of salt. Anyone who wants to sell is going to play up the more positive aspects of an area. And no matter how forthright a seller may be, what bothers you might not bother them. It is up to you to take the time to visit the area on different days (weekdays, weekends) and at different times (night, morning) to see what things are like.

Neighborhood Attractions
Whether you are buying in an up-and-coming neighborhood or an established one, you may hear from the seller that great things are coming to he area or to the specific development you are considering. If promised retail or schools or any other facility factors heavily in your decision, verify their arrival with other sources and don't just take the sellers word for it.

FHA LOANS HARDER TO GET...FIRST TIME BUYERS AFFECTED!!

The FHA is expected to announce publicly some major changes to their lending requirements. Weeks ago I mentioned that changes were coming because of the huge increase in the use of FHA loans. Someone at FHA is paying attention and has made two positive changes in the last several weeks. One has a positive effect on investors regarding flipping and one on new lending requirements is overdue. Although I am all for first time and for that matter all home buyers having as much advantage to buy a home as possible, it should not be at the expense of taxpayers.

The new rules will increase minimum down payment requirements for those borrowers with credit scores of 580 or below. I would assume they researched foreclosure rates and found a correlation between credit score and foreclosure. These borrowers will be required to put down 10% of the sales price of a home instead of the current 3.5%. This, unfortunately may prevent many from buying their first home.

Secondly, the MIP (mortgage insurance premium) will be increased from the current 1.75% to 2.25%. On a $200,000.00 loan that is an added $1,000.00 to the total loan amount. MIP is charged on FHA loans as an insurance policy in case of default. The premiums are placed in a fund controlled by FHA to help offset losses on defaulting loans. This is a change will have little effect on borrowers. They can finance this in the loan, making an insignificant change in the monthly payment.

Thirdly and in my opinion one of the toughest changes is the reduction in the amount of money a seller can contribute to the closing costs of a buyer. 3% is a big reduction and forces buyers to have more up front funds. Gift funds may be needed more than ever by FHA borrowers from family to help borrowers offset this change in seller contributed funds.

Overall these changes are needed to protect the financial vulnerability of FHA. This agency provides a valuable service to homebuyers and has been under emmence pressure since the mortgage crisis began several years ago. It has become, in essence, the only game in town for borrowers with little money down. FHA is still one of the best options for borrowers in todays marketplace.

Things Sellers May Neglect to Tell Buyers, pt. 1

Real estate professional John Day encourages honesty in all transactions, but we want you to know that sometimes a seller will hide things from a potential buyer. In these tough times, it is unfortunate that sometimes people are really desperate to seal a deal. In other cases, the seller does not intend to be dishonest-they may underestimate or forget an expense.

If you want to purchase a home, you need to do your own research. Here are some things you might want to check out for yourself--

Property dimensions
A listing agent who takes the seller at their word when they give property dimensions probably means you no harm. The listing agent should verify, but that does not mean that they all do. Some buyers have learned the true dimensions of the property they want to buy when they get the appraisal.

The Costs of Ownership
Some sellers do not remember to include all of the bills or may forget that an expense has increased. The same may happen with property taxes, so one way to avoid surprises is to ask the tax assessor for the latest tax info on the property.

Short Sales, likely a Waste of Time, and not better than foreclosure.

Let me be clear that this is my opinion alone. Each day I hear horror stories from agents, sometimes buyer's and an occasional seller about the status of a short sale they are involved in. Now, let me preface this by saying that weeks ago I wrote, saying that short sales may be the way of selling foreclosures in the future. THE ONLY WAY THIS WILL HAPPEN is if the lenders set up a clear cut, QUICK process for handling these types of sales. Now, most short sales are taking in excess of 4 to 6 months to get approved, if in fact they do.

If you are a first time buyer, I suggest you stay away from this mess. Most agents are not prepared for it and you have no idea how long a stretch you are in for. Many asset managers are sitting on hundreds of files, stacked in a corner and in their data bases. They are bombarded daily with, incoming files, getting existing files to settlement that were sold REO and on top of that, Short Sale requests. They have no process for handling these and their aretoo many decision makers in too big of a chain to get an answer. In a foreclosure process, they know what to do and how to do it. It's much easier for them. For you, the buyer, a short sale, most likely will waste your time, frustrate you, prevent you (possibly) from moving forward on other opportunities. Stay away, go buy a bank owned if you think there is a better deal to be had with that approach. At least there is an offer price by the seller that they already know they will accept and that is the basis you and they can negotiate from. Save yourself, don't get involved in a short sale.

For banks, shame on you. You net more from a short sale most of the time, but you are stuck. Your biggest hurdle is probably mental. Who knows if the seller is really in bad shape, maybe you can get more through foreclosure (doubtful) maybe they are commiting fraud to get out from under. For me, I think they (the seller) are trying to do what is right. They don't want to trash their credit (probably will be trashed anyway) and they should research that. I think they will find that a short sale does plenty of damage. They don't want to run away, lock the door and let you guys get it in 6 months after it's been vacant and possibly damaged. It's one heck of a predicament. Too bad for the lenders they can't trust a few good agents to research the market, see the house write an opinion and then accept it. Instead the value of the house declines, the seller is left with few options and the lenders continue with what they know, foreclosure.

For the sellers, wow! bad times. I know, I see it everyday. You are hard pressed. If you absolutely have to sell and there is no equity you are in a bind. The lender's you have spoken with don't really want to talk unless you are way behind in your payments. You don't want to get way behind in your payments, it's not you, you don't want to trash your credit standing, you don't want to feel guilty etc. and you probably are damn mad. Mad at the lender who gave you a rotten deal, mad at the real estate agent that sold you an overpriced house and mad at the gov't. for the years they regulated nothing. Doesn't matter, you are here and living in the now. Preserve yourself and your family as best you can. Make a concerted effort to deal with the lender, document everything they do and say. If you can't make any headwayand the lender will not communicate look at your options. I can't give legal advice but would suggest you get some. You find the best route for you and family and follow it. This mess may or may not pass but you need to move on. Don't wait for a lender to help you, most likely they won't.

Most likely this is not your fault. You did not see this crash coming, you did not over borrow, you did not intentionally try to lower the homes value. You, most likely were trying to make a decent life for you and yours. So continue to do so, this will be a story to tell the grandbabies about in a few years.

Banks are not much better to work with then they were 7 months ago

What is Redlining?

Redlining is unethical at the very least and some instances, it has been proven to be illegal.

When it comes to real estate, redlining refers to when lenders make it hard for people to purchase property in certain areas. At some point, some lenders would mark a map with a red line to show where they were not going to invest.

The definition of this word has changed over the years. Sometimes it refers to not allowing people from certain groups to borrow money to purchase homes, regardless of the area.

And reverse redlining refers to when lenders make it a practice to charge people from a certain group more than they would charge someone else with similar qualifications and income.

Redlining hurts neighborhoods in many ways. The recent spike in reverse redlining during the housing boom led to some areas having a record number of foreclosures. This is compounded by the fact that boarded-up homes attract criminals.

Conduct Your Home Search Research in Multiple Mediums

Earlier this week, we encouraged you to Market Your Home Sale in Multiple Mediums-both traditional media outlets and internet sources. The rationale behind this is that you can reach a much wider audience, even if you feel certain that your ideal home buyer is sticking to the internet or regular newspapers.

Today we want to extend that same advice to those of you who are in the process of looking for a home to buy. You need to do all the research you can about the areas you are considering because once you make a purchase, you are invested in an area, and barring changes in circumstances, you will likely live there for a while.

Nowadays we want to find out all there is to know by typing a few words into Google and there is not doubt that the internet has really changed the way people go about looking for a house. But do not underestimate what you can learn from local weekly newspapers or from just taking a stroll through a neighborhood you are considering. Getting out to experience a place firsthand will give you all kinds of information that you cannot get from blogs, online forums and articles.

Market Your Home Sale in Multiple Mediums

If you want to sell your home, you need to take full advantage of all of the mediums that are available for marketing your home. This doesn’t mean making yourself crazy trying to advertise your home sale everywhere, but it does mean giving some thought to making sure people in a variety of settings are aware that your home is available for purchase.

We tend to 'go with what we know' and select advertising mediums that we already use. For example, internet-savvy home sellers may feel like a virtual tour and using online forum is the only way to go in our high-tech age. And people who rarely use a computer may think that an ad in major and neighborhood newspapers will be the way to attract buyers.

I would encourage you to step out of your own box when advertising that your home is for sale. Someone from out of town who is moving to your area for a new job may not find your home in your local weekly paper. And a person who would love your home, but isn't crazy about the internet will not know it is for sale if you only market your property online.

Why can't I sell my house?

If you are wearing the shoes of a seller today, you must be feeling the frustration. It's hard to be noticed when there are so many properties on the market. You have to work closely with your agent to find the reason for stagnation. Usually it is one of three factors; condition, location and price. These three need to be in sync in order for your home to get sold.

One of the biggest complaints I hear is that many seller's just don't take the time to get their home in pristine, saleable condition. In a market that is filled with foreclosed homes, that traditionally don't show well, it's such a benefit to have your home in perfect showing condition. This means, fresh paint, clean carpet, neutral colors, any and all minor repairs made and so much more. Get an objective set of eyes to look at your home. Ask your most critical friend to let out all the stops and walk through your home, room by room and give you feedback. You, as the seller, cannot be objective. Condition is something that you can and must change. Make sure it's just right before even thinking of marketing the property.

I took my own advice on three properties that I sold this year that were mine. I forgot about the things I could not change, ie; sizes of rooms, location of house etc. I put my efforts in things I could change. I rented a storage facility for one of my homes, practically emptied the house, staged it and sold it in a week. It showed great and was priced fairly.

Let's talk price of your home. If you absolutely have to sell and you absolutely cannot clear what is owed on it you must consider discussing a short sale with your lender. If, in fact, all the feedback you have received is, "it's overpriced", and you can afford (but of course don't want to) to lower the price you must if you want to sell it.
I know that makes you angry, especially if your neighbor sold 4 years ago for 35% more. Just remember if you are going to make another purchase after yours does sell, there are deals out there. It's a wash, sell for less, buy for less.

These are tough times I know you don't need me to remind you. What you must do is try to step back look at the situation objectively and act. Either tighten the boot straps and get the house in tip top shape, if you have done that, then it's time to work at the price.

If you are in Maryland and have questions, I am more that willing to listen. No sales pitch, I promise.

Lenders Must Inform Consumers if Credit Rating Affects Loan Rates

A recent Washington Post column alerted readers to the fact now "rules require lenders to alert consumers whenever derogatory credit data cause them to be charged higher rates, higher down payments or less than optimal terms on a "risk-based pricing" system."

This will help protect not just the individual consumer in question, but other consumers as well. How? Well, what some of you may not have known was that some of the wave of foreclosures in the housing crisis was a result of lenders deciding that instead of rejecting applicants that did not fit their criteria, they would just give them loans at higher rates. Giving homes loans to high-risk borrowers at increased rates, masked problems that rose to the surface later.

You can take matters into your own hands by monitoring your credit own reports and making sure that they are free of errors. That way, when you go to get a loan, you will already know your rating, will have a good idea of where you stand, and will not need any alerts from a lender.

Short Sales Can Help the Seller and the Buyer

Earlier this week, we urged people out there who are worried about their ability to remain in their homes to seek help as soon as possible. One of the arrangements that can be made is a short sale. And while we are always saddened to think that a family must leave their home, it is better that they have the opportunity to leave on their own terms rather than be forced out.

On the other side of this equation are the people who are able to purchase homes through short sales. Just last night, a friend confided in me and asked me not to tell her roommate with whom she has lived for several years that she has made an offer on a condo. She is excited at the prospect of her own home and knows that it is only possible because she bid on a home that was made available through a short sale.

Click on the title of this post to see our listings, some of which are being sold via a short sale.

Benefits of the Propsed 'Cash for Caulkers' Program

Late last year, we told you about the possibility that the federal government would enact a 'cash for caulkers' rebate program that might work in similar fashion to the 'cash for clunkers' program that was initiated to help struggling automakers.

We have heard people wondering aloud just why the government would choose to help homeowners in this way--after all shouldn't they concentrate their efforts on sluggish home sales and not on helping people who already own homes to fix them up?

We can tell you that one of the reasons for the proposed program is that the construction industry is also seriously ailing. And putting people back to work is one way to assist all areas of the economy.

Another reason for this program is putting some action behind our nation's ongoing commitment to "going green." If we can get a large part of the American home-owning public to make their homes more energy efficient, this will go a long way towards cutting down on carbon dioxide emissions and conserving resources.

Take Real Estate Lessons from 2009 into 2010

Many real estate agents are all too happy to day goodbye to 2009 and embrace 2010 since any new era comes accompanied with optimism and enthusiasm. And really, we have no choice but to embrace this new year and this new decade since they are already here, right?

There is no doubt in our minds that 2009 was a tough, tough year for many people, but there is no need to despise it. Instead, we need to gain whatever insight we can from it as we move forward into this new year.

One thing that we said over and over in 2009 was that it is important not to wait until the last minute to get help. If things are getting tight and you feel as if you will not be able to remain in your home, get help sooner rather than later.

If you are in Maryland, call John Day at 410-507-2090 for advice because he can help you arrange a short sale if that option will be more beneficial to you than foreclosure.

To learn more:

Short sales may become the preferred way of selling pre-foreclosures!

Tips to Start off the New Year in Your New Home

Perhaps you are starting the new year off in a new home--if you are congratulations! Once you have gone through the home buying process, the journey does not end because if this is your first home, you are now going to have to learn more about the home owning process. Even if you have owned a home in the past, you may need some reminders on what to do after you first move in:

1. Have the locks changed. I learned this lesson the hard way when a real estate agent who was under the mistaken impression that my home was still for sale, came through my front door.

2. Have the utilities placed in your name.

3. Locate your nearest hardware store and gas station. (If you have no car, locate the nearest bus stop, convenience store or whatever you need to survive.)

4. If you don't have them already, buy some basic tools (hammer, pliers, tape measure, screwdriver).

5. Put new batteries into the smoke and carbon monoxide detectors.

Home Buying Resolutions for 2010

Earlier this week, we listed some 2010 resolutions for home sellers, and because turnabout is fair play, we also want to give some tips to people who plan to purchase homes in the coming year.

Take the time to really read documents
Sometimes we are presented with so much stuff that we consider to be 'legal mumbo-jumbo' that we just sign without really knowing what we are getting ourselves into. Purchasing a property is serious business and you have the right to question and challenge what you see in the offer to purchase and the loan documents...but you can only do this if you have read them.

Take negotiations seriously
Since people keep hearing that it is a buyer's market, they are sometimes taking it for granted that they will get what they want. Every home owner is not so desperate to sell that they will agree to anything and another buyer can present an offer that beats yours. Don't be hasty; work with your real estate agent to present an offer that respects the seller and shows that you are genuinely interested.

Home Selling Resolutions for 2010

If you have been trying to sell your home or if you have plans to sell your home in the coming year, here are some tips to make sure that 2010 brings you the home selling success that you want.

Do your research
If you have not done so already, find out what kinds of homes are selling in your area, the selling prices and how long these homes stayed on the housing market. How does your home compare to these? Remember that even if these homes are in your general area, they may be on a block that has some advantages or disadvantages over yours.

Determine that you will go above and beyond
Some home sellers recognize that they need to work to overcome objections that the buyer may have, but the home sellers who decide to really “wow” potential buyers are the ones who really have home selling success. It seems really obvious, but sometimes people who are selling a property fail to remember that salesmanship is key to sealing the deal. The buyer knows you have your own motivations for selling, but what are you doing to get them motivated enough to choose your property over another?

More First-timers Are Getting into Real Estate

Earlier this week, a friend of ours updated her Facebook status to announce that she was officially a homeowner. She had just closed on her house. For years, this friend had said she didn't see herself ever buying a home and she was content to rent. However, the tax incentives offered by the federal government had her singing a new tune.

According to the National Association of Realtors, first-time buyers have really stepped up and made a difference in the housing market. Data from a survey NAR conducted this fall indicated that the percentage of homes sales that went to first time homebuyers rose six percent (from 41 percent of all transactions last year to 47 percent this year).

If you are in Maryland and think you are finally ready to take the plunge, call John Day at 410-507-2909 and he can get you started. John Day is an experienced real estate professional who specializes in selling and buying homes in Anne Arundel County, Calvert County, Charles County, and Prince George's County.

Get a Second Opinion on Chimney Repair

If Santa slides down the chimney and in addition to gifts, leaves you a note suggesting that you might want to get your chimney inspected, you may want to pay attention, but don’t just take his word for it.

According to a recent article in The Washington Post (The chimney fix: How to keep it working without wasting money),
“Experts recommend hiring only industry-certified companies for inspections and being cautious when offered a discount on a routine cleaning.”

Unless you yourself are a chimney expert, it will be hard for you to determine just what is going on inside your chimney. So you should not be afraid to get a second or maybe even a third opinion. Although you are not a chimney expert, you can still arm yourself with information before having your chimney inspected because this may help you to at least have a general idea of the recommended repairs sound reasonable.
Also remember that when you sell your home, you will need to disclose any recommended repairs.

Home Prices Have More Declines to come

Recent news on TV lead us to believe that the housing market is on the rebound. They base this on an increase in sales in November. There was a surge in sales. Where did that come from? The fraud consumed first time buyer tax credit is credited with some of the upswing in existing home sales.

The real story is this; according to First American Core Logic there are 1.7 Million homes in shadow inventory. These are foreclosures that banks are sitting on that have not yet hit the market. In my practice, I expect to see a huge jump in new foreclosures hitting the market just after the first of the year. Prices will continue to drop during the first quarter of 2010. The expectations according to the report is that prices will continue to decline by another 4% on average. So we have not seen the bottom of the housing market as our government would like us to believe. Even though we are told differently. Loans are still hard to get even though interest rates are very low. FHA is going to continue to tighten the requirements for borrowers to obtain loans and we may see a substantial increase in required down payment amounts. This tells me, things are not better and the time to take advantage of this down market is now. Now is the time to buy a home. It's time to buy if you want the deal. Soon you will need more money to buy and in 6 months you will pay more than you will in the next 3.

The attached report shows a different picture. Its often the case that reality is much different than our government would like us to believe.

Money is getting tighter, unemployment is still growing, home prices continue to decline yet, "the economy is on the upswing", oh yes.

Snow Shoveling Safety Tips

Maintenance is an important part of home ownership and snow removal is a part of this.

We hope these snow removal tips do not come too late for some of you since surely you there was snow to be removed after this past weekend’s big snowstorm.

It is our hope that you did not injure yourself and we want to share with some suggestions to prevent injuries should you need to dig yourself out of snow in the future.

You should:
-Dress in layers. This is not just done to keep your skin from getting exposed to too much cold, it also helps your muscles stay warm.
-Wear gloves that help you get a good grip on the shovel. This is prevent blisters.
-Wear boots or other footwear that gives you good traction.
-Stretch before you start. If you can take a short walk to the end of the
block before you start shoveling.
-Shovel with one foot forward and keep your toes pointed in the same
direction as the shovel.
-Tighten your stomach muscles as you lift the shovel and bend your legs
at the knees.

Buying a Home on a Busy Street

Conventional wisdom says that if there is one place where you do not want to buy a home, it is near any kind of highway or on a very busy street. Many times when driving down a major traffic artery, one feels for people who are attempting to get out of their driveways and cannot because there are so many cars whizzing by. But who’s to say that living on a street that sees a lot of traffic is all bad?

The Washington Post published an article (Life on the highway) to examine the pros and cons of buying a home on such a street. Some of the cons could include: noise pollution, compromised air quality and a lack of off-street parking.

One of the biggest pros is that the prices for homes on major roads may be lower that the prices for similar homes in the area. Other advantages may be access to the major road itself and to nearby commercial establishments, being a priority when it comes to snow removal and having a home that is simple for friends and family to locate.

Some Forms needed For Sale Buy Owners

In this market, it may not be the wisest decision, however, some sellers are determined to sell their homes themselves. I have done it successfully and so have many others, but in this market it is a different environment. The first problem today is marketing. Where will you market your for sale by owner property? There is craigs list, Facebook, For Sale By Owner Website and a slew of newspapers and other publications. Without a great web presence you won't get the exposure that may find you a buyer. Also, if you utilize the Multiple Listing Service with a real estate agent you automatically present your property to 65,000 real estate members of the local Metropolitan Regional Information System, MLS. You can sell your home yourself, it may take longer and you may get less according to the national Association of Realtors but your will save some commission According to the 2003 NATIONAL ASSOCIATION OF REALTORS®Profile of Home Buyers and Sellers, the typical FSBO home sold for $145,000, compared to $175,000 for a salesperson-assisted home. This means that even if FSBOs pay you a 6-percent commission, they will realize $164,500. The NAR website goes on to say. Many FSBOs think that once the purchase agreement is signed, their work is over. But you know better. Develop a list of the tasks that must be completed before closing, including home inspection, termite inspection, title insurance, building permits for improvements, and so forth. Once again, sellers may decide they need professional help once they see what it takes to get the deal completed.

If you do decide to sell your home yourself there are a few forms you should get. If you are in Maryland you are required to fill out a property disclosure/disclaimer statement. This form simply notifies the buyer that they have the right to review a disclosure statement prepared by the seller. Should the seller prefer not to fill out a complete disclosure they can sign a disclaimer. That means they are basically selling the home as is. You still are obligated to disclose any latent defects.

You will also need a lead paint disclosure form and contract of sale. The other documents such as local disclosure addendum's are good tools to protect you because you will disclose Homeowners Association, and Front Foot fees, special assessments etc.

If you are in Maryland and determined to go it alone but want some advice or have questions please feel free to contact me. There is a wealth of information at www.realtor.org for sellers. There are firms that will charge you a fee to put your house on the market as well. Your options are wide and vast.

New Gov't Program May Standardize Short Sales

The Washington Post recently reported that the federal government has plans for a standardized short sale plan that we will be hearing more about in the months to come.

If you did not know already, a short sale is when the bank agrees to accept less than what a homeowner owes on a mortgage. Why would a bank do this, you might ask--isn't their main goal to make money? Yes, but if a bank believes that permitting a homeowner to do a short sale will bring in more money than a foreclosure will, they are more likely to agree to a short sale.

The recent Washington Post article states:

"This usually means you need to bring in a real estate agent who knows the ropes..."

If you are considering a short sale and own a home in Maryland, then John Day is an knowledgeable agent with experience in negotiating short sales. Call him today at 410-507-2909 or click on the title of this blog post to learn more.

New Gov't Program Might Help With Energy Efficient Home Improvements

Of course we don't want to count any stimulus chickens before they are hatched, but some people were cheered at the news that President Obama is considering a new program that has been dubbed, "Cash for Caulkers." As you can guess, that name was modeled after the name of the “Cash for Clunkers” program that allowed people to get help in buying cars that were more energy efficient.

Under this new program homeowners who buy energy efficient appliances like washing machines, refrigerators or get new energy efficient windows and installation installed will be able to save money on both the products and the installation costs.

There are no firm guidelines yet, but it is believed that the cap for such a rebate will be $12,000.

In addition to the stimulus funds, energy-conscious homeowners would get under such a plan, they would also see energy costs do down over time. And they would get the added bonus of knowing that when they sell, energy efficient appliances and additions will be an important selling point.

FHA Gets Stricter with Condo Buildings Too

We have already mentioned that new rules and changes brewing at the FHA could have detrimental effects on the housing market and we must include condos in that mix, along with stand-alone residences.

The FHA will now limit the number of buyers in a condo building who can receive an FHA loan. This move will shut out many potential condo buyers, since the FHA is behind about one out of every four new loans. It also puts added pressure on developers—so much so that some developers may have to cancel new projects since they will not be able to be certain of finding enough buyers who do not need to rely on the FHA for a loan.

In addition to the rules that restrict the number of FHA-backed loans for a condo building, they agency has also decided to up the ante on the number of condos that must be pre-sold before they will insure loans in a condo building. For now, 30 percent of the units in a building must be pre-sold to get FHA backing; in 2011 that percentage will increase of 50 percent.

Read more on the stricter FHA guidelines:

Homebuyers Hurt if FHA Changes Rules

FHA Guidelines May Become Stricter

What Really Goes On at Open Houses

Just last week, The Examiner had a very interesting article on prospective buyer behavior at open houses. While you may just think that you are there to get the skinny on the house, you should realize that real estate agents are also there to get the skinny on potential buyers and possibly potential clients.

If you have already contracted the services of a buyer’s agent, that agent may give you their business card and ask that you present it at any open houses you may visit. Since you may tour a house without your agent, having the card to present will let the listing agent know that they should not try to woo you as a potential client.

You should also be aware that agents note how much time you spend looking through the house. They are also paying attention to what you say. So if you are serious about a property and are very vocal about how wonderful you think it is, an attentive seller's agents will take note and use this knowledge at the bargaining table.

To read more:
The smart, savvy way to visit real estate open houses

Recent Drop in 30-year Mortgage Rates

Last week some news outlets reported that the average interest late for a 30-year mortgage had dropped to a very low point-4.71 percent. If you were not already aware, this low rate is influenced by the fact that the federal government is really trying to encourage homeownership. Homeownership is the cornerstone of economic prosperity and the government hopes that an increase in homeownership will have a ripple affect throughout our shaky economy.

Although the federal government would love to see you buy a home, this does not mean that buying a home is without its challenges. Lenders have become stricter about lending people money to buy homes. After all that has happened with high numbers of people defaulting on their home loans, you can see why lending institutions are wary.

If you think you would like to buy a home and feel that you are financially stable, this is great time to consider homeownership. With low interest rates and owners who really want to find qualified buyers, you may be pleasantly surprised.

Also read:

Are You Ready to Buy a Home?