WASHINGTON, October 08, 2008
Pending home sales activity surged as buyers took advantage of low home prices and affordable interest rates, according to the National Association of Realtors®.
The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in August, jumped 7.4 percent to 93.4 from an upwardly revised reading of 87.0 in July, and is 8.8 percent higher than August 2007 when it stood at 85.8. The index is at the highest level since June 2007 when it stood at 101.4.
Lawrence Yun, NAR chief economist, said home buyers were responding to improved affordability. “What we’re seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island and the Washington, D.C., region,” he said. "It’s unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we’re hopeful most of the increase will translate into closed existing-home sales.”
Friday, October 10, 2008
Grant Programs Encouraging New Home Buyers!
Johns Hopkins Expands Home Buying Grants for Employees
Johns Hopkins recently announced a major expansion of its Live Near Your Work grant program, which encourages employees to buy homes in certain Baltimore neighborhoods. Full-time, benefits-eligible Hopkins employees may qualify for up to $17,000 in down payment and closing cost assistance. The program applies to employees of Johns Hopkins University, Johns Hopkins Hospital, Johns Hopkins Health Care, Johns Hopkins Community Physicians, or Johns Hopkins Bayview. Employees must contribute at least $1,000 toward the down payment and/or closing costs at settlement. Additionally, eligible employees must obtain a certificate documenting the completion of home ownership counseling prior to signing a contract of sale. There are no income restrictions, but the home must be purchased as a primary residence, and graduated repayment provisions do apply, if the home is sold or ceases to be the buyer’s primary residence within five years of the date of purchase. To see more program details and view a map of the targeted neighborhoods go to: www.jhu.edu/lnyw
CHAI Receives Foundation Grant - Charitable Foundation’s Board of Trustees recently awarded Comprehensive Housing Assistance, Inc. (CHAI) a $10,000 grant to support its Housing Services Program. The Foundation’s grant will enable CHAI to deepen its ability to serve clients in foreclosure and financial crisis and increase the emphasis on foreclosure prevention and financial literacy in its educational and counseling services. Since 1983, CHAI has been dedicated to increasing home ownership and economic stability in northwest Baltimore. CHAI’s Housing Services Program provides homebuyer and renovation loans and grants, homebuyer counseling and workshops, foreclosure prevention counseling, referrals to housing professionals, and links to public homeowner assistance programs for potential and existing homeowners in northwest Baltimore City. The Housing Services Program also acquires and renovates neighborhood properties to combat blight and spur neighborhood investment.
Johns Hopkins recently announced a major expansion of its Live Near Your Work grant program, which encourages employees to buy homes in certain Baltimore neighborhoods. Full-time, benefits-eligible Hopkins employees may qualify for up to $17,000 in down payment and closing cost assistance. The program applies to employees of Johns Hopkins University, Johns Hopkins Hospital, Johns Hopkins Health Care, Johns Hopkins Community Physicians, or Johns Hopkins Bayview. Employees must contribute at least $1,000 toward the down payment and/or closing costs at settlement. Additionally, eligible employees must obtain a certificate documenting the completion of home ownership counseling prior to signing a contract of sale. There are no income restrictions, but the home must be purchased as a primary residence, and graduated repayment provisions do apply, if the home is sold or ceases to be the buyer’s primary residence within five years of the date of purchase. To see more program details and view a map of the targeted neighborhoods go to: www.jhu.edu/lnyw
CHAI Receives Foundation Grant - Charitable Foundation’s Board of Trustees recently awarded Comprehensive Housing Assistance, Inc. (CHAI) a $10,000 grant to support its Housing Services Program. The Foundation’s grant will enable CHAI to deepen its ability to serve clients in foreclosure and financial crisis and increase the emphasis on foreclosure prevention and financial literacy in its educational and counseling services. Since 1983, CHAI has been dedicated to increasing home ownership and economic stability in northwest Baltimore. CHAI’s Housing Services Program provides homebuyer and renovation loans and grants, homebuyer counseling and workshops, foreclosure prevention counseling, referrals to housing professionals, and links to public homeowner assistance programs for potential and existing homeowners in northwest Baltimore City. The Housing Services Program also acquires and renovates neighborhood properties to combat blight and spur neighborhood investment.
Thursday, October 2, 2008
Market News
The number of days on the market before a property is sold is significant information for a buyer when deciding on an offering price. For example, if a buyer were interested in two very similar properties - one that had been on the market for 210 days and the other for only 10 days - the buyer would make a lower offer on the one for 210 days thinking that the seller is probably desperate to sell and would accept a lower offer whereas the other seller would not take a lower offer yet. Buyers may also feel that there might be something wrong with the house or someone else would have already purchased it. For educated buyers, usually what is "wrong" is the price is higher than the buyers' perception of value of the house.
What does that mean for sellers? Every day a property is on the market the price goes down in the minds of buyers. That is why a property sells at its highest price in the first days of exposure to the market. There is another reason for that fact. The buyers most ready to make an offer in the first days are the seasoned buyers who have been educated about the market by a REALTOR® and can act immediately because they have the cash or a mortgage pre-approval letter. If the price is too high initially, they move on and wait for another to come on the market. Sellers should therefore position their property to sell when it first hits the market.
When buyers work with me, we discuss total days on the market as they contemplate an offer. When I am representing sellers, I assist them in understanding that first days of exposure usually generate the highest offering prices.
What does that mean for sellers? Every day a property is on the market the price goes down in the minds of buyers. That is why a property sells at its highest price in the first days of exposure to the market. There is another reason for that fact. The buyers most ready to make an offer in the first days are the seasoned buyers who have been educated about the market by a REALTOR® and can act immediately because they have the cash or a mortgage pre-approval letter. If the price is too high initially, they move on and wait for another to come on the market. Sellers should therefore position their property to sell when it first hits the market.
When buyers work with me, we discuss total days on the market as they contemplate an offer. When I am representing sellers, I assist them in understanding that first days of exposure usually generate the highest offering prices.
Sunday, September 28, 2008
Our Local Market Share
I am proud to announce that my office, Coldwell Banker of Roland Park/Cross Keys, has the #1 Market Share in 21209, 21210, 21212, 21217, 21218!
What does this mean for my buyers and sellers? This means that you will get not only me but my office's listings and clientele as well. I can share my buyers and sellers needs with my colleagues and we have been known to sell a house before even reaching the market & my buyers will have access to listings before they hit the market.
Are you relocating to Baltimore and looking for an attentive high energy realtor?While I don't recommend this, I have even helped a client purchase a home without them physically seeing the property. Whether you a new professor at Johns Hopkins or a executive with Legg Mason, I have a knowlege base and work pace that will fit your needs.
Let me put my expertise to work for you!
What does this mean for my buyers and sellers? This means that you will get not only me but my office's listings and clientele as well. I can share my buyers and sellers needs with my colleagues and we have been known to sell a house before even reaching the market & my buyers will have access to listings before they hit the market.
Are you relocating to Baltimore and looking for an attentive high energy realtor?While I don't recommend this, I have even helped a client purchase a home without them physically seeing the property. Whether you a new professor at Johns Hopkins or a executive with Legg Mason, I have a knowlege base and work pace that will fit your needs.
Let me put my expertise to work for you!
Upcoming Changes to the MAR Contract of Sale
MAR Residential Contract of Sale as of 10/08:
· Paragraph 16 – Lead Paint. This paragraph was revised to be more concise. The paragraph requires the seller to specify the date the home was constructed. Given this information, the parties will then be able to determine the extent to which the property is subject to the federal and/or Maryland lead paint laws. If the property is not subject to either law, the parties are not required to do anything else.
Paragraph 50 – Notice to the Parties. In response to the 2008 Protection of Homeowners in Foreclosure Act, paragraph 50 was revised to add a statement alerting the parties that a seller who is 60 days or more in arrears on the seller’s mortgage has a 5 day right to rescind the contract. The Act provides other protections to distressed sellers and the parties are given a reference to the law in case the parties wish to seek additional information.
New/Revised Addenda:
· “As-Is” Addendum. This Addendum allows the parties to agree that the property will be sold “as is.” There are two options. In the first, the parties can agree that the property will be sold “as is” without any inspections or contingencies regarding the condition of the property. The second option allows the buyer to inspect the property and terminate the contract if the buyer is dissatisfied with the results of the inspection. Regardless of the inspection results, the seller has no obligation to make any repairs. Finally, the Addendum language states that it supersedes any conflicting language in the Contract.
· Short Sale Addendum. The new addendum is designed to assist in navigating a short sale. The addendum:
· Property Inspections Addendum – The report and notice language in the Radon provision has been amended to mirror the report and notice language in the other sections dealing with inspections.
· Lease Option to Purchase Agreement. The Lease Option to Purchase Agreement will be used when the parties have entered into a separate lease and wish to provide the tenant with the right to purchase the property at a later date. The Option to Purchase provides that an agreed-upon portion of the monthly rental payments are applied to the purchase.
· Paragraph 16 – Lead Paint. This paragraph was revised to be more concise. The paragraph requires the seller to specify the date the home was constructed. Given this information, the parties will then be able to determine the extent to which the property is subject to the federal and/or Maryland lead paint laws. If the property is not subject to either law, the parties are not required to do anything else.
Paragraph 50 – Notice to the Parties. In response to the 2008 Protection of Homeowners in Foreclosure Act, paragraph 50 was revised to add a statement alerting the parties that a seller who is 60 days or more in arrears on the seller’s mortgage has a 5 day right to rescind the contract. The Act provides other protections to distressed sellers and the parties are given a reference to the law in case the parties wish to seek additional information.
New/Revised Addenda:
· “As-Is” Addendum. This Addendum allows the parties to agree that the property will be sold “as is.” There are two options. In the first, the parties can agree that the property will be sold “as is” without any inspections or contingencies regarding the condition of the property. The second option allows the buyer to inspect the property and terminate the contract if the buyer is dissatisfied with the results of the inspection. Regardless of the inspection results, the seller has no obligation to make any repairs. Finally, the Addendum language states that it supersedes any conflicting language in the Contract.
· Short Sale Addendum. The new addendum is designed to assist in navigating a short sale. The addendum:
· Property Inspections Addendum – The report and notice language in the Radon provision has been amended to mirror the report and notice language in the other sections dealing with inspections.
· Lease Option to Purchase Agreement. The Lease Option to Purchase Agreement will be used when the parties have entered into a separate lease and wish to provide the tenant with the right to purchase the property at a later date. The Option to Purchase provides that an agreed-upon portion of the monthly rental payments are applied to the purchase.
Saturday, September 6, 2008
Charming Unique, & Architect Designed Patterson Park Listing!
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I have a new listing coming up on the market Monday 9/8!!
~This home is a work of art, lovingly cared for, and oozing with character~
Two skylights shower every room with natural light, entertain on your rooftop deck and enjoy romantic evenings in your beautifully landscaped courtyard. Airy & open loft feel upstairs with two rooms separated by a light & bright bath w/ claw foot tub. All this and within walking distance to Patterson Park, Creative Alliance, & located in the Highlandtown Arts & Entertainment District. This one-of-a-kind property is a must see!
~This home is a work of art, lovingly cared for, and oozing with character~
Two skylights shower every room with natural light, entertain on your rooftop deck and enjoy romantic evenings in your beautifully landscaped courtyard. Airy & open loft feel upstairs with two rooms separated by a light & bright bath w/ claw foot tub. All this and within walking distance to Patterson Park, Creative Alliance, & located in the Highlandtown Arts & Entertainment District. This one-of-a-kind property is a must see!
- Master Bedroom with office/addtl. bedroom, 1.5baths
- Central Air/Gas heat
- Hardwood floors throughout
- Original stained glass front window
- Exposed brick throughout
- Partially finished basement
- Roof top deck w/ amazing view of the city
- Fenced rear courtyard w/ beautiful landscaping
- Full bath w/antique pedestal sink & claw foot tub
- Location! Location! Location!
Call me for a private showing or come visit me at the Broker's Open on Wednesday 12-2:30pm.
Monday, September 1, 2008
The Real Estate Investment Benefit
In the first half of this decade, most areas in the Mid-Atlantic experienced a substantial increase in home prices. So far in the second half of the decade, most areas are experiencing a decrease in home prices due to the oversupply of houses on the market. Let's say someone purchases a house in 2000 for $300,000, and by 2005 it appreciates to a market value of $500,000. Today, after the recent decrease in the market, that house might sell for $400,000, and the seller would see $100,000 net appreciation. If this seller only remembers the $500,000 at the peak of the market, the seller may think they lost $100,000 instead of gaining $100,000 from the $300,000 originally paid. In fact, homeowners who have purchased several houses over the years should look at the cumulative equity gains for all of the purchased houses. For example, if you bought your first house years ago for $150,000 and sold it for $250,000 to buy a $400,000 house that appreciated and sold for $600,000 to buy an $800,000 house in 2005, you would see a total gross equity gain of $100,000 for the first house and $200,000 for the second house for a total of $300,000 net appreciation. For an investment in the commodity of residential real estate, $300,000 net appreciation is a significant gain. In today's market, if you sold that last house purchased for $800,000 for a price of $680,000 (15% less or a "loss" of $120,000), your total real estate equity gain would still be $180,000. As a commodity, real estate prices go up and down, but historically over time houses have proven to be an excellent investment as well as contributing to a satisfying lifestyle. Although the primary purpose of owning a home is the lifestyle it brings, the secondary benefit is the investment potential. Sellers should look at the investment benefit over a longer period of time to see the gains that eventually come from real estate.
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