2014 Resolutions/Intention

Every New Year I pick a word. I kinda thought it was a novel little thing that only a few people even know to do, but apparently it's a thing. A trendy thing at that. That's not going to stop me. My word this year is wealth. I think that's going to take me to some good places - the bank among them.

Why wealth? Yup. For the most obvious reason. Although I can see a great many ways this will manifest itself and I'm open to all of them.

I used to avoid making resolutions since they are most often not kept but I realized they only don't get kept if I don't keep them and that if they are worth making then they are worth keeping. It's a simple thing really and worthwhile. So I make them and I keep them.

• To continue creating things. I actually managed to make a few things that were quite worth the effort. Mostly I made pictures this year which I enjoy. And the results were surprisingly pleasing. 
• In the "better late than never" spirit I started to crochet with days to spare before the end of '13 to fulfill the "learn a new skill" resolution from last year. It's surprisingly meditative and peaceful. I want to expand on that this year. 
• I find lots of things meditative, but I haven't ever deliberately meditated. I will do more of that this year. 
• I resolve to run a 10 miler this year. Hopefully the Army 10 miler. I ran that once and it was a great race. It's a great distance. I'd like to finish in under 2 hours. 
• At work, I resolve to be prompt with my paperwork. I never miss a deadline, except the ones for turning in a contract after settlement so that I can get paid. The scurry to pull it all together in the format the office wants is annoying. I'm going to fix that by being proactive about it.

Looking forward a couple of years I know that I want to do a multi-day (5ish days) solo hike somewhere. I would like to have a plan for that and to be in shape for that by the end of this year. It would be great if I could collect the materials I need and have a budget for it by the end of the year so that I could possibly make it happen in spring of 2015. Not ready to commit to a definite time frame for the hike but it would be nice to put all the pieces in place so that I can go on a whim when the time is right.

I made this in 2013.

A (lifetime) weekend of Open Houses

I have always asked, "How did you hear about the Open House?" and historically the majority have answered that they saw and followed the signs. More and more though the answer has changed and now the vast majority find an Open House on the internet and the directional signs are a convenience, but not the cause. The majority of folks find open houses on Redfin with Trulia a close second, Zillow and RE/MAX third. At least, that was true for the visitors this weekend. 

The benefit to this change is that the majority of visitors to an open house are there because they intend to be... they didn't just happen upon it. They already know the number of bedrooms and it already has the number they need. They already know the price and it already is within their range. This is a house they already know they would consider buying. 

If your Realtor is not holding your house open and doing it often then call me. Historically I haven't sold a lot of houses at the Open, but I have a feeling that is changing and changing fast. The age of real estate information is creating a "new normal", indeed. 

To go, or not to go - to an Open House

I can think of a few very good reasons to visit open houses even if you are not in the market to buy. I can think of  a few bad reasons to avoid open houses. I can also think of one very, very good reason NOT to go to an open house.

Good reasons to go:

1. Get to know your neighborhood and community - Even if you are not planning to buy or sell it's good to be knowledeable about your neighbohood, and in fact, about the surrounding communities. You will learn market trends, find out about community events, and tons of information that you'd miss out on if you stayed home. 
2. Find a pro you like - You just never know when you may get the bug to move or need to move. It's best you have some idea of who you'd call when/if that day comes. Open houses are a terrific place to meet Realtors in a professional, but relaxed setting. 
3. Share the info with friends and colleagues - Real estate is a topic that comes up often in social and work settings. It's likely you will hear from someone who is in the market to buy a home and you can tell them about your community, including specifics on houses you've visited.
4. Pick you neighbors - If you do find yourself telling someone about a home you visited you are in effect choosing your neighbor. Who better to influence who lives nearby than YOU?

Bad reasons to avoid open houses.

1. Realtors/sellers don't want nosy neighbors rooting through their houses - Quite the contrary. We do want you to visit. We want to introduce ourselves and to be of service. We want to tell you what we know about your community. Sellers want exposure and neighbors talking about homes for sale in their community is a great way to achieve that.  
2. You don't want pushy Realtors calling and emailing you - Fair enough. I personally do not call unless I am asked to. I do not do mail or email marketing either. But if I did and you asked me not to solicit you I absolutely would not. Just politely let the Realtor know that you prefer not to be added to any marketing programs and they will oblige. They won't be mad . They will understand. 
3. You can't afford that house - No? But someone you know might. Or someone your teenager knows. I once sold a house to a family who learned about it from their 13 year old daughter's friend who was spending the night at their house. 

One excellent reason you should NOT to go to an open house.

1. If you are in the market to buy and you've chosen a Realtor to work with you should not under any circumstances go to an open house that you would consider buying. In real estate we have something called "procuring cause" which basically means that the Realtor who caused the buyer to learn about the house gets the sale. So if you are driving by, see a sign, and walk in, that means the Realtor hosting the open caused the sale. Which means your agent can technically still represent you, but would not be paid for his work. Obviously no one wants this confusion so it's best to only visit homes that you are interested in with your chosen Realtor. You want to be represented and you want your pro to be paid, so let them do their job of showing you houses rather than visiting opens on your own. 

If you like real estate and you enjoy visiting open houses then you should go. If open houses bore you and you can think of better ways to spend an afternoon then by all means do what pleases you. But don't think that we don't want you or that your presence at our open would be unwelcome. 

So... see you Sunday?

The Difference One Year Makes

I've just returned from two weeks of camping deep in the Smoky Mountains of North Carolina. My husband and I really love that area. We find ourselves there several times a year and plan to continue to visit for many years to come. Naturally, we've window shopped for a cabin. Last year we took the wild step of driving past a house and we nearly called a Realtor. Crazy... I know.

But, we decided we didn't want to have to go there and that we would feel we had to if we had a house there. Ultimately we've realized that we don't go anywhere else because we like it there so much and that a cabin would be a nice thing to have. So I looked on Trulia.com today. Trulia looks quite a bit different now than it did last year.

This is the house we drove by, walked around, and had to stuff our cell phones deep into our pockets to hold ourselves back from calling on. It sold in November 2012 for $37,000.

This is a similar house a few miles away. There are a few small differences - like it only has 1 bedroom and the one last year had two. It is also further from the highway and further from the activities we enjoy. Oh, and it doesn't have electricity. It was just listed for $82,000.

Seriously kicking myself.

New Look, New Start

Since there could never be too many forums for me to vent, rant, brag, or otherwise share my days, I've spent the early morning hours giving my old blog a new face. I really like the new look!

Mission Accomplished

The intention of my real estate practice is to help people live in a place that enables them to get the most our of their lives. No matter what their passion, I want to help them live it - or at least live nearby. Mission accomplished. 

First Time Marathon Training

This was the first of the First Time Marathoners Program runs. I'm in the 12:30 pace group. Our actual moving pace was 12:22 but we stopped periodically for water and street crossings so the Garmin says it was a bit slower. I'll learn how to pause the gizmo eventually. I'm told we have 793 training miles remaining before the Marine Corps Marathon in October. 


I love running in groups - so much so that I generally do my solo long runs in urban areas just so that there are people around and things to see. I also enjoy short, intense solo runs on trails where you've got to be focused on your footing and low hanging branches. This run was on a trail bordering Kensington and Garrett Park so it provided the best of both worlds. The trail was paved but rough and muddy in places. 


The company was fantastic. I chatted most of the run with a beautiful woman named Flora who's just returned to the DC area after living in Vermont for years. I talked briefly at the end with a nice gal named Tammy who's only been running about a year and a half (like me) and who had not run a long run in a while (like me). 

Pikes Peek 10K

Of all the wonderful places to play in this area the last place you'd think of is Rockville Pike, unless you enjoy heinous traffic, fast food and strip malls - except for today. Today was the Pikes Peek 10K which begins at the Shady Grove Metro Station and ends at White Flint Mall. There's hardly anything more fun than being able to run smack down the middle of one of the busiest roads in the region. Besides, it's a net downhill race so it's fast and easy to PR, which I did, which is sweet.


Highlights of the day: Meeting Margaret Valega, a fellow Poolesville resident who runs just a bit faster than me and is also doing the First Time Marathon Program through MCRRC. New running friends are priceless! Seeing my family at the finish line was the best! I do know what it takes for them to get up at the crack of dawn to stand in the cold waiting to cheer me on for just a few seconds and I'm beyond grateful.

My Top 5

It's no secret to anyone that I absolutely love my job. Even the most routine transactions are immensely satisfying. There are, however, certain very special houses and special clients that stand out in my mind for very specific reasons and I thought it would be nice to walk down memory lane.

In no particular order I present to you my all-time top five favorites.

Jennings Road, Kensington
This is a very small cottage on a lovely lot in Kensington. It's most amazing because of what an utterly perfect fit it is for the woman who bought it. The house is warm and earthy with beautiful wood ceiling and trim. The kitchen is rustic yet fully functional with every modern amenity you could wish to have.

I recall the look on her face when she walked in. It was magical. She is a kayaker and the natural elements, clean, easy feel of this house... well, it was love at first sight.

Bayard Boulevard, Bethesda
This house is special and a sure favorite because it was owned by a woman who died and left it to her daughter who left it to her daughter. Three generations of wonderful women lived in, raised their families, and loved this home. They meticulously cared for it, rarely updating it, and the end result for the buyer was a home that was much the same in 2010 as it was in 1938 with most of the original finishes and fixtures. It's a time capsule ready for a new line of strong women.

Springfield Road, Darnestown
Mrs. Buyer called me to inquire about homes in Darnestown that were colonials, with finished basements, renovated and updated and within a very optimistic price range (which is to say she wanted to spend far less than the market would bear for a house that met her criteria). A quick search of homes and I found one in her price range - a rambler, on a slab, no basement, an estate sale, in miserable, dated condition. I told her about it and gave her the address and promised to keep an eye out for something that would be a better fit.

Later that day she called me from the drive way of this wreck and was very emotional. She said she knew this was the perfect house. She'd called her husband and he was en route from Bethesda. She asked if I could come show them the interior. They both loved it. They made an offer on the anti-ideal house that night (despite my urging that they sleep on it).

An inspection revealed, among other huge problems, a massive termite infestation - so bad that there was significant structural damage that would be difficult and very costly to repair. Furthermore, the house needed just about everything, including a new kitchen, bathrooms, appliances, and cosmetic repairs. Not to mention that a finished basement, which was so important to them, was an impossibility. I tried desperately to convince them to move on but they would not be deterred.

A few months after settlement Mr. Buyer stopped in my office on his way home from work. He invited me to come see the house now that most of the repairs were done and the kitchen had been remodeled. Walking in to the house I could see and feel how much this family loved it. I was very happy that they ignored my advice and followed their hearts. I would still try to talk them out of it - knowing that ultimately they'll be glad I cared and that they'll do what's right for them anyway.

Masonwood Drive, Darnestown
This house is hardly a favorite because the house was so beautiful or the clients were people I was drawn to personally. Quite the opposite, in fact. The house, while very beautiful, is not my cup of tea and the buyers were lovely but we did not connect personally. It was very much a professional relationship.

The reason this house is a favorite is not a squishy, warm story. My former boss's wife was about to ratify an offer for $1.4 million which would have been a record for our small company which routinely sold luxury homes around a million. At the same time I was working on selling this to-be-built home which had a base price of $1,152,500 and looked like it would sell for about $1.25 million. At the 11th hour the buyer decided on some options and customizations I'd suggested that brought the final price to $1,557,473. The boss's wife had to settle for second place when she ratified her contract a couple of days later. Yes, I am that competitive.

Park Overlook Drive, Bethesda
This house was listed for $749,900 - slightly more than my buyers could afford and in 2005 homes were generally selling within minutes of being listed with multiple offers, often for much more than the asking price. At $749K it was a steal and surely would generate multiple offers.

This was a FSBO so offers were presented directly to the owner - a 90-some year old German man with a heavy accent. The buyers made an offer for $734,000 and I had them include a handwritten personal note telling the seller about themselves and explaining their low offer in such a competitive market. They did just that and the seller accepted their offer. He would say later that he saw his young family in them and that he wanted to give them the same wonderful life he'd had raising his family in Bethesda.

I'm convinced he could have gotten close to $800,000 if he'd entertained other offers. In a market with escalation clauses and rabid greed this kind man sacrificed a good bit of his children's inheritance in order to provide total strangers the opportunity to be in the school district they wanted but could not afford, the commute that would allow them time to eat meals together in the evening, and the life they dreamed of. Pretty sweet.

Over the years I've met the most wonderful people and helped them buy and sell some pretty fantastic homes. My latest projects include a handful of very distressed houses in up and coming areas. I'm looking forward to seeing these houses restored and returned to the community. It's a beautiful thing to look back on such a rewarding career while also looking forward to the many more great opportunities to come.

Running in Historic Downtown Frederick

I am training for the Shamrock Yuengling Half Marathon in Virginia Beach on March 20th and I needed to run 7 miles this past weekend. I decided to run through downtown Frederick which has some interesting terrain, buildings and people. It was a good choice. Despite some missed turns and deviations from my intended route I managed to eek out a bit more than 7 miles and was never at a loss for interesting things to see, hear and smell. From fresh laundry to brunch to music coming from small speakers in a garden it was a sensory extravaganza!

A colleague just told me that he bought a house on Market Street that he showed to a client. The client didn't like it but he did, so he bought it! Frederick is one of my favorite places to run. It would be really fun to live there!

To give you a taste of how amazing the city of Frederick is check out Bill Adkins' blog where he takes a photo a day on the same street. Every single photo is worth a frame and a place on your wall.

New Year's Intention

We all resolve each year to make changes, improve ourselves and our lives. Even if we don't admit it, most of us see the New Year as a time of renewal. A new calendar, a fresh slate. Often our resolve is dwindling by mid-January and gone with the melting snow.

This year I resolve to try something new. I read a blog and then another about a Word of Intention that can replace the traditional New Year's Resolution. It's a non-specific word that you internalize and keep with you through out the year.

This year my Word is balance. I chose it for several reasons, not the least of which is that I have terrible balance and tend to need to tread slowly and carefully when I encounter obstacles like uneven terrain on a hike, or difficulty managing my work, family, personal life and marriage. I often take on too much of one thing to the detriment of all of the others. I am so careful where I place my feet that I manage to bang my head into the low hanging branches (and not just on the trail).

I hope this word takes me to other places and discoveries. My focus is often so deliberate and intense that I miss seeing them most basic and wonderful things in the periphery.

For more on the Word of Intention read the blog From Deeper Water and then Christine Kane's blog where the idea seems to have originated.

Happy New Year!

It's a New Year - Almost

I'm a terrible blogger. If I just blogged more often it would help matters immensely. It's New Year's Eve and time for another new beginning.

I got a pair of Vibram Fivefingers shoes for myself for Christmas. I've only run in them twice - once on the treadmill and just a few minutes ago outside. It's a beautiful night. Not too cold. I ran two quick miles (that were supposed to have been run yesterday) in my new shoes and I just love them. I can feel my legs and ankles getting stronger. The muscles and supporting structures in my feet feel revived.

We live in the most amazing place. Poolesville is so small that finding a route that takes you a whole two miles through town is kinda hard. I ran past Selby's grocery and the skate park, past Bassett's Restaurant (they're drunk in there already), past the post office, McDonald's, the auto garage, the House of Poolesville (the seedy restaurant/bar where they're even drunker), past the elementary school and back into my neighborhood. I passed several people, all of whom said hello and Happy New Year.

My legs feel strong and I feel alive. I turn 40 this year but I've never felt better in my life. Bring it on!

Trail Run, or not...

I mapped out the most perfect 6 mile out and back run on the C&O Canal Tow Path but arrived at Pennyfield Lock to an icy trail. Spring cannot arrive soon enough.

Pennyfield Lock is 15 minutes from Poolesville. There are 24 properties available in Poolesville starting at $190K. The homes in Poolesville are as expensive as $4M with every price point in between. A typical commute to Bethesda at 8am takes 45 minutes.

Call me to see what is available in your price range :)

Edwards Ferry on the Potomac River

One of my favorite things about living in Poolesville is visiting the historic places along the Potomac River. From my house in town it takes less than 10 minutes to drive to Edwards Ferry. I know that there's a ton of Civil War history surrounding this place, but my fascination with it lies in the use of the C&O Canal and the people who lived in the Lock 25 House.

Locktenders lived with their families in the Lock Houses along the C&O Canal. No matter what time of day or night, when a barge came along the Lock Keeper had to come out to raise or lower the barge in the Lock.

I can imagine the Locktender early in the morning coming out to greet a passenger barge, lowering them as they descend on their way to Georgetown. I picture the Locktender's children looking at the passengers, wondering where they're from or where they're going.

Today I go there with my children to kayak on the Potomac and we look at the old Lock House and wonder about the families that once lived there.

More about Edwards Ferry: "An Ideal Crossing - The Potomac River is calm and narrow here, making it an ideal location for a ferry crossing. In 1791 Edwards Ferry began to operate here, connecting Maryland farmers to the Goose Creek Canal in Virginia and to Leesburg markets. The ferry closed in 1836 but the community that grew around it continued, carrying on the name. Over time, a general store, a warehouse, and 36 residents composed the Edwards Ferry community. With the coming of the C&O Canal the small village prospered from the increase in commerce.

How Green is Your Home?

You know it's coming... the first electric bill of the season. For all of us "greenies" the feeling of seeing that huge electric bill is the same. Not only do we have to part with too much money, we have proof that despite our good intentions we are contributing to the environmental problem.

According to the Montgomery County Maryland Department of Environmental Protection, an average of 60% of the electricity used in a Montgomery County home is generated from fossil fuels. It is not enough to turn off and unplug appliances and switch to energy saving light bulbs. You know there's more you could be doing and now is the time to step up and get an Energy Audit.



An Energy Auditor will inspect your home - the heating and cooling systems, the water heating system, and use his specialized tools to perfom an air infiltration, duct leakage, and combustion safety testing. He will provide you with a written report, a list of recommended improvements and, if needed, estimates for repairs. The cost for an Energy Audit is around $350 and they take approximately 3-4 hours. Typically homeowners save 15-20% off their energy bills after implementation of the recommended repairs. That's a significant savings - not only on your energy bills, but on your overall carbon footprint.

For your Energy Audit I highly recommend Jim McKenna of Green Step. His number is 301-758-0410. Jim is a certified BPI Building Analyst, Green Certified Professional - NARI, and HERS Certified Rater. Jim is a better Energy Auditor than Webmaster, so call him to talk about your particular needs and to learn more about the services he offers.

REALTOR'S NOTE

Starting Janurary 1, 2009 Sellers in Montgomery County are required to provide the Buyer copies of the electric, gas, and heating oil bills OR cost and usage history for the single-family home for the immediate prior 12 months.

If you plan to sell your house anytime soon you should think about getting an Energy Audit now. Rather than burrying your energy bills with the disclosures you can include the results of the Audit along with recepits for improvements and copies of your energy bills in your marketing package. That's smart selling.

$50 Rebate for Each Rain Barrel

Install a rain barrel and you may receive a $50 rebate from Montgomery County's RainScapes Program for each rain barrel you install.

We all want to do our part to conserve water and prevent stormwater runoff polution in the Potomac River and Chesapeake Bay so check out these links to learn more about rain barrels, rain gardens, permeable pavers and other innovative approaches to help conserve our natural resources - and get some cash back for doing the right thing!

RainScapes http://tinyurl.com/2zdfvp
Rain Barrel Workshop http://tinyurl.com/qnbohj
Application for rebates http://www.potomacriver.org/cms/montcobarrels.pdf

State Public School System Ranked Best in U.S. by 2 Reports

http://www.washingtonpost.com/wp-dyn/content/article/2009/01/07/AR2009010702347.html?referrer=emailarticle

State Public School System Ranked Best in U.S. by 2 Reports

By Nelson Hernandez
Washington Post Staff Writer
Thursday, January 8, 2009; Page B02

A six-year Maryland effort to spend billions of dollars more on public education has led to major performance gains that have helped make the state's schools the best in the country, according to a pair of independent reports released yesterday.

A three-year study of the Bridge to Excellence Act came as Editorial Projects in Education, which publishes the trade newspaper Education Week, announced the results of its annual survey of state school systems. In the latter report, Maryland was ranked first among the 50 states and the District. Last year, the state ranked third.

"I'm elated," Gov. Martin O'Malley (D) said at an Annapolis High School event to promote the two reports. "We now have the No. 1, the best public school system in the United States of America, and we need to do our best to defend that."

The Education Week study evaluated school systems on several criteria, including accountability standards, college readiness of high school graduates, spending and equity. Virginia ranked fourth and the District last.

Maryland student performance on standardized tests, another factor in the Education Week report, has steadily improved since passage of the law. Annual state education spending is now $4.6 billion a year, up 80 percent from the 2002 level, according to the report. In addition, local governments have raised education spending 34 percent in that time.

The report by MGT of America found that "proficiency levels statewide have improved dramatically for all students," particularly in elementary schools. Elementary students cut in half the gap between where they were in 2004 and the goal of 100 percent proficiency in math and reading, the report said.

The MGT report found that for every additional $1,000 spent per elementary student, proficiency rates rose 4 percent. They rose 8 percent on the same measure for middle school students.

"Additional money, with strong accountability, can make a difference," Nancy S. Grasmick, state superintendent of schools, said in response to the two reports.

The reports provide ammunition for lawmakers and education leaders who are fighting to hold the line on school funding. With the state facing a $1.9 billion revenue shortfall next year, government leaders are under heavy pressure to slash spending.

Some cuts are likely to come from education, which represents more than a third of the state's annual budget. Last month, O'Malley's budget secretary recommended cutting almost $38 million from an initiative that sends additional education aid to Montgomery, Prince George's and other counties. Other proposals include making local jurisdictions pay for teachers' pensions.
O'Malley acknowledged that he was examining those cuts as possibilities -- he called the pensions "a huge burden that we labor under" -- but said the studies showed that money spent wasn't wasted.

"I think what this report means is that we, the people of the state of Maryland, have made a huge investment in education, and that investment is paying off," O'Malley said. Echoing the governor, banners draped in the Annapolis High auditorium proclaimed: "Maryland Public Schools -- A Great Investment!"

Much of the past six years' spending increases went toward hiring and paying new, highly qualified teachers. School systems spent $1.8 billion on raises and benefits for teachers, the MGT report said, and hired staff for more than 10,900 new positions, with 8,300 of those teaching positions.

"The Real" on Real Estate Values

When I tell people I sell real estate for a living their faces turn down, they ask, in a sympathetic voice, "How is it out there? Are you doing ok?" I tell them that it's really good - people are buying and selling, making money, and generally things are as they should be. They are slightly encouraged by my positive response, and highly skeptical that I'm being 100% honest.

Well, here are some facts that you will not hear on CNN.

• Nationally, only about 3% of homeowners are behind on their mortgage payments
• Mortgage rates are about 5.375% for a 30 year fixed mortgage (but that changes all the time. Check with Ray Cruz at BofA for the current rate 202-438-9700)
• Locally, houses are selling on average for 91.2% of their list price
• Locally, it is taking an average of 116 days to sell a house. Houses in good condition and priced properly are selling in much less time

Using national real estate statistics to determine the performance of the Washington, DC Metro area is sort of like using the statistics of the entire MLB to determine the kind of player Derek Jeeter is. Or using the test scores of an entire school district to learn about one child's performance. Thanks anyway, Gerri Willis, but you're not telling me anything useful or even slightly meaningful when you tell me national statistics.

It is true that some parts of the country have been hammered but DC isn't one of those areas. If you browse the listings that have sold in the past 3 months you will have a hard time finding examples of people losing their shirts on the sale of their home. Here are some examples in the Bethesda area:

5717 Roosevelt Street sold on 12 June 2003 for $699,000. The owners put in a new kitchen and updated the family room, powder room, and master bath in 2004. They sold it on 11 Sept 2008 for $1,005,000.

4977 Battery Lane #1-920 sold on 22 June 2004 for $366,450. The owner sold this condo on 28 July 2008 for $485,000. They made $118,550 in only 4 years.

105 South Brook Lane sold in 1998 for $290,000. It sold again on 7 August 2002 for $538,500 and again on 6 Oct 2008 for $650,000. In ten years three owners shared profits of $360,000.

9803 De Paul Drive sold in 1998 for $240,000. The owners took great care of the house and put in a new kitchen in the 10 years they lived there. They sold it on 15 Sept 2008 for $699,900. It was on the market for 66 days. They made almost $460,000 in 10 years.

If you bought at the peak of the market in 2005 or 2006 you might not be able to sell for a profit right now, but hang in there. As these examples show, if you can wait until 2010 or 2011 you will more than likely be satisfied with the return on your investment.

If you've been hesitant to jump into this market here are a few more things you need to know:

• Banks are lending for mortgages to anyone with average credit, with a steady job who can afford the payments. You do not need to have excellent credit
• You need as little as 3% down to buy a home
• You can have your pick of the nicest houses in the best condition
• You will be buying at (or very near) the bottom of the market

Coming soon... examples of people who bought in 2000 and sold in 2005 - the bottom of the market buyer who sold at the top.

The Mortgage Environment and upcoming changes...

Given the recent changes in the lending landscape it is important to know what the new rules are and how they may impact your next home purchase or refinance. Despite the ongoing strains in the credit markets, banks are still lending. Although underwriting standards have increased making it more difficult for marginal borrowers to get qualified, borrowers with good credit scores, stable income, and strong liquid assets will still find approvals easy to obtain and rates near historical lows. Below are some notable changes:

Conforming Mortgages - (Mortgages which are sold to, and guaranteed by, Fannie Mae and Freddie Mac.)

• Fannie Mae's new conforming loan limits are being adjusted up to $625,500 in high-cost areas, which covers most of the Washington DC Metropolitan Area, effective January 1, 2009
  
• 90% financing is the highest currently available in most areas due to problems obtaining Private Mortgage Insurance (PMI) and revisions to Fannie guidelines.
  
• 95% financing is available on single family detached primary residences only.
  
• Lower credit scores are now being penalized with risk adjustment premiums, increasing interest rates and resulting in larger down payment requirements.
  
• Investment properties are also facing risk-adjusted, higher interest rates and larger down payment requirements.
  
• New Construction Condos now face greater scrutiny and are fully vetted just as the borrower's are.
  

FHA Mortgages – (Mortgages which are insured by the Federal Housing Administration, which is part of HUD.)

• Low down payments – as little as 3.5% starting January 1, 2009
  
• Easy credit qualifying – lower credit scores accepted
  
• Lending limits vary based on property type and county
  
• FHA loans require mortgage insurance (to protect lenders against losses that result from defaults on home mortgages)
  
• FHA Secure – Helps current homeowners who have sub-prime mortgages, high interest rates and/or “upside-down” on their current primary residence
  

Jumbo Mortgages - (Mortgages that exceed the $625,500 conforming limit. They are sold on the secondary market or retained by the lender.)

• Down payment requirements for most jumbo mortgages have been increased to 20-30%, depending on the purchase price.
  
• Loan documentation requirements have increased and underwriting standards have become much more thorough.
  
• Loans in some declining markets are requiring even larger down payments and increased appraisal scrutiny. (CA, AZ, UT, FL, NV)
  

Please let us know if you have any questions.

Please feel free to forward the information and my contact information to any friends or colleagues that would be interested or in need of mortgage financing.

Best Regards,

Ray P. Cruz
Vice President


Bank of America
1801 K Street, NW, Suite 440
Washington, DC 20006
Office: 202-624-3794
Mobile: 202-438-9700
Fax: 202.350.9500
Apply Online: www.raypcruz.com

First-Time Home Buyer Tax Credit

DID YOU KNOW?

First-Time Home Buyer Tax Credit at a Glance

• The tax credit is available for first-time home buyers only.
• The maximum credit amount is $7,500.
• The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• The tax credit works like an interest-free loan and must be repaid over a 15-year period.

This credit is really a 15 year interest free loan that is repaid at $500 per year over 15 years OR when the house is sold, retitled, or refinanced. You are not required to claim the credit on your taxes, but if you choose to, this credit can be used to pay for new furniture, upgrades or repairs to the house, or anything that you want to spend it on.

This credit is good for any first-time buyer, on any house, in any state as long as you purchase before July 1, 2009. So, if you could benefit from this credit, now would be a good time to make an appointment with me.

If you would like more information about the First-Time Home Buyer Tax Credit or other provisions in the Housing and Economic Recovery Act of 2008 please give me a call.