Archive for the 'Real Estate News' Category
Let History Not Repeat Itself
October 6th, 2008 categories: Real Estate News, opinion
This past week our country made history. We saw one the largest decreases in stock value we have in years and our government signed a 700 Billion Dollar Bailout plan to keep our economy from sinking any further.
I spoke to many lenders, Realtors, and spectators during this time and ultimately came to the conclusion that other than the government not too many people knew the implications of this bill. You begin to get the feeling that you are on a plane and hear a loud noise. Everyone knows that something bad is happening but all you are allowed to know is that you can’t leave your seat and the stewardess is going to bring you a complimentary Pepsi while acting like all will be fine.
To assist with all of this co-motion the elections are taking place with both sides magnifying the issues and acting as if these issue would have never happened under their guidance. The truth is, these issues are bigger than that last 8 years of George Bush. Don’t get me wrong, this current administration has way overspent. Nevertheless, it was the Clinton administration that re-emphasized the sub-prime lending market to get low income families in to homes they could not afford.
I remind us of this because the finger pointing is out of control. Both parties have created this issue and we as the American people have created this issue. WE HAVE OVERSPENT. Government doesn’t force us to run up credit card bills or buy homes. Our greed has gotten the best of us and now we need to fix it no matter who takes office. Remember, government if supposed to be FOR THE PEOPLE.
There have been steps in that direction this year. It is much tougher to get a loan now than it has been in the past. This makes my job more difficult but overall creates a stronger economy. This is a time for American maturity. This is a time to take responsibility for our debt. Maybe you don’t need a bigger home. If you can afford your mortgage payments- PAY THEM. Stop walking away and making everyone else clean up your mess. For those who walk away from mortgage payments they can afford, there should be steep penalties and restrictions on them purchasing again.
We can get out of this. The foundation of our economy is strong (no matter what they say), and the sky is not falling.
Stop living in fear of the market. And turn off the news! If more people do this, the market will change. I guarantee it.
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Appraisers Are Trump
October 2nd, 2008 categories: Real Estate News, opinion
The real estate game has changed.
- What you can get a buyer to pay for your home doesn’t matter.
- How much money you need to go to settlement with doesn’t matter.
- Many of your homes details don’t matter.
When selling your home, the price you can get should be based upon what YOU think it is worth. However, buyers will only pay what they feel THEY think it is worth. The delima is that the bank will only give a loan for what THE APPRAISER thinks it is worth.
The bank figures out how much it really is worth by having an appraisal done on the property. They view your homes size and features in comparison to comparable properties in the local area that have recently sold to try to figure out your homes value. This is becoming more of an issue in the current market conditions since prices have declined.
How will prices ever increase in value if appraisals come in a little higher than previous sales? What comparable properties are appraisers to use if the only homes that compare to your home are foreclosures and short sales?
These are some of the issues we are currently dealing with in our market. It is very important in this market to be aware of these issues when pricing your home. Features do matter, square footage and acreage matters, but most importantly not overpricing your home matters since you will not be getting rid of your home for more than the bank is willing to lend which depends on the appraisal value.
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Redskin’s Taylor Scores Big For Loudoun’s Kids
September 19th, 2008 categories: Real Estate News
The Jason Taylor Foundation made a huge impact on 50 Loudoun County middle school students this past week with a $300 back-to-school shopping spree at Old Navy In Leesburg.
The event included a DJ, dinner, and ”celebrity shoppers” helping the kids to make their selections. The celebrities included players from the Washington Redskins, Washington Wizzards,
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Rates Drop Again…
September 12th, 2008 categories: Real Estate News
On September 11th, Freddie Mac reported that their 30 year fixed rate mortgage averaged 5.93% for the week end, down from last week when it averaged 6.35%.
Last year at this time, the 30-year FRM averaged 6.31%.The 15-year FRM this week averaged 5.54% down from last week when it averaged 5.90%. A year ago at this time, the 15-year FRM averaged 5.97%.
For more info go to: http://www.freddiemac.com/news/mediaroom/
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Buyers That Need FHA Loans With Sellers Help Must Act QUICK!
August 19th, 2008 categories: Real Estate News
If you are a buyer needing SELLER PAID down payment…. You better act quick!!!
The recently passed Housing and Economic Recovery Act of 2008 is ELIMINATING this program for buyers all together through programs like Nehemiah, AmeriDream, etc… You can still receive help from family members but NOT from Sellers.
Many lenders have already stopped offering this program. There are a few left like Bank of America that are still offering it with contracts that they receive UP TO September 5th and settle by October 1st, 2008.
If you need some great lenders to consider check out my vendor list.
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New MLS Rules Should Help Market And Home Searchers
August 18th, 2008 categories: Local Issues, Real Estate News
Searching for homes has become a lot like digging through a bag of your friends thrift store pile to hopefully find one good shirt that may fit.
You can find 80 homes within your price range. But to actually find one that is not a short sale or foreclosure in decent condition has become an art form.
Who has time for this?
The good news is that MRIS (the Northern VA MLS provider) is now requiring Short Sale homes that have contracts signed by the seller on them but are simply awaiting bank approval to be removed from active status in the MLS. They now go under a status called Contingent Kick Out which in the computer looks like “Cko.”
This is good news for buyers who don’t want to waste their time looking at homes that already have offers on them. For those who want to bid on these homes while they wait bank approval, they still can.
Many Realtors have not adapted to this rule yet and some do not like it since they want to receive multiple offers. However, it is much better for the market as a whole and makes it a lot easier for purchasers to find the deals they are looking for.
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The Washington Post Has Spoken
August 14th, 2008 categories: Real Estate News
I have written a few articles concerning the new government tax credit available.
Here is an article from the Washington Post to back it up. Check it out HERE.
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Possible New Changes To The Mortgage Industry Coming VERY SOON
July 28th, 2008 categories: Real Estate News
Some times we need our Uncle… Some times we don’t.
With Fannie and Freddie Mac in trouble with debt Uncle Sam has had to step in and make some quick revisions to the current mortgage industry to hopefully strengthen it. There was a House Rescue Bill that was approved on July 23rd that should be signed by the President in to law very soon.
Our nation holds around 12 trillion dollars of mortgage debt. Fannie and Freddie together hold around 5.2 trillion of that. If those guys go under, we would be in trouble. So… The 700 page Rescue Bill has a few bullet points that I will share with you that will hopefully strengthen the industry and continue to enable qualified buyers to purchase.
- The bill includes provisions to increase the market share of mortgages insured by FHA. It raises loan limits to high-cost areas, allows the agency to vary the premiums it charges borrowers based on their credit risk, allows for lower monthly payments for borrowers who make on-time payments for the first 5 years of a loan and extends the max loan term of the FHA single- family loans to 40 years.
- The house amendment provides $300 billion in new guarantees to help refinance at-risk borrowers into mortgages that borrowers could afford to pay.
- Down Payment Assistance Programs are banned in the program. Nehemiah, Genesis, and Ameridream would be affected.
- FHA minimum down-payment would increase from 3% to 3.5%.
- Lenders may receive a government incentive to lower interest rates and loan amounts for current mortgage holders experiencing trouble.
Until the President signs this bill in to effect these bullet points could change. Nevertheless, if you are a First Time Buyer and taking advantage of a FHA loan it would be in your best interest to move as quickly as possible or you can expect to pay more before you know it.
Search the MLS.
Have your VA home price evaluated for free
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Rule 1# Know Thy Credit Score
July 21st, 2008 categories: Real Estate News
$15 could save you A LOT of money…Many people wait until making a large purchase before checking their credit score. This can be a costly decision when you are ready to purchase since to a lender your name is only as good as your credit score. If you are planning on purchasing a home any time in the future it is a good idea to know where your score is at. Your score can always be improved, but some times you will find that there are issues that you didn’t know about that you can fix rather easily.
I had a client a few years ago that while applying for a loan found that there was a small $12 dentist bill that she thought was paid years before. The credit report revealed that it wasn’t ever paid. Because of this discrepancy, it lowered her score by around 50 points! After addressing the issue she was able to raise her score and therefore get a better interest rate on her loan which saved her hundreds of dollars over the life of her loan!
Here are a few sites where you can pull your credit score….
- FreeTripleCreditScore.com
- FreeCreditReport.com
- myfico.com
Make sure that whoever pulls your credit score shows you your scores from all three credit agencies… Experian, Transuniun, and Equifax since it is the average of these 3 scores that count.
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Funny MLS Photos: These Come With The Home
July 18th, 2008 categories: Real Estate News
There are many benefits to home ownership, and these real estate agents are quick make sure we recognize them in the photos of the homes they list…….
Momma always said, “If you have it… flaunt it.” This here my friend is a ga-rage.
Mr. Agent, make sure that the purchaser knows that if they purchase OUR home… we are gonna let them keep those logs out in the yard.
The dining room. I wonder what happened to that other light?
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