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