"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.

That re-usable water bottle is your best friend

Thanks to Jennifer Sass for alerting me to this article...

REPORT OUT TODAY: That re-usable water bottle is your best friend
Americans paid $12 billion to drink 9 billion gallons of bottled water last year alone. Yet, as EWG tests show, several bottled waters bore the chemical signature of standard municipal water treatment -- a cocktail of fluoride, chlorine and other disinfectants whose proportions vary only slightly from plant to plant. In other words, some bottled water was chemically almost indistinguishable from tap water. The only striking difference: the price tag. The typical cost of a gallon of bottled water is $3.79 – 1,900 times the cost of a gallon of public tap water.

The bottle water industry has also contributed to one of the biggest environmental problems facing the world today. Only one-fifth of the bottles produced by the industry are recycled. The remaining four-fifths pile up at landfills, litter our neighborhoods and foul our oceans. About halfway between Hawaii and California, an area twice the size of Texas is awash in millions of plastic water bottles and other indestructible garbage.

Full report at: http://www.ewg.org/reports/bottledwater

Halloween is going to suck this year!

Valley Mill's Spooky Hollow and The Haunted Trail

This is an event that I look forward to every year. The folks at Valley Mill spare nothing to make this a great event! Whether you are 6 or 16 or 60 there will be someting fun for you here!


Maryland's Premier Halloween Event

Haunted Trail:
As the sun sets and darkness invades the forest, our hardier guests can venture out onto the Haunted Trail. They will wander through about 20- 25 minutes of ghoulish frights and terrifying delights. Nighttime at the Haunted Trail is guaranteed to be screaming fun!

Spooky Hollow:
Spooky Hollow is an exciting time designed for all ages. Spooky Hollow features food vendors, carnival games, fortune tellers, contests, nightly entertainment, and more. Our guests can embark on a fun filled hayride to a pumpkin patch or be transformed into a Halloween creature at our face painting booth.

Hollow Hayride:
Locked in a slow moving trailer, filled with hay and fright. This dimmly light ride through the oldest part of the Valley Mill forest, has ghouls and ghost come at you from all directions. Be prepared!

For dates and directions visit the Valley Mill website: http://valleymill.com/halloween/
Or join the Facebook Group: http://www.facebook.com/group.php?gid=5315977722

Someone please help this woman!

http://view.break.com/580075 - Watch more free videos