Archive for February, 2008

Last fall we were honored to participate as lead sponsor for the Capital Classic tennis tournament. The tournament started 16 years ago and each year gives substantial amounts of money to a local charity. This fall $19,500 was given to Washington AIDS Partnership, a grant-making organization that leads a private sector response to HIV/AIDS in the area. Our sponsorship allowed Capital Classic to give the largest donation to date.

We firmly believe in giving back to our community and are proud to give money to organizations like Washington AIDS Partnership through fundraising efforts facilitated by Capital Classic. We will be sponsoring the tournament again in the fall of 2008. If you know of any local charities that could benefit from the donation this year, please email or call me.

Click here to read the article in Washington Business Journal.

And you can read about this worthy cause on its website.

With the recent pick-up of foreclosure activity in the DC area, many of our clients are calling to ask if this is a buying opportunity for investment properties. It’s common knowledge that you can get a great deal in a foreclosure sale, right? The current market might prove that common knowledge isn’t always right!

In a Washington Post article on February 2nd, a foreclosure auctioneer was followed through several auctions held in northern Virginia. He stood on the front steps of the county courthouse in Prince William, and auctioned off many houses. One in Woodbridge went for $380,515. A house in Manassas went for $244,000. It was a lonely job that day - no one showed up at the auction. Not the bank, not investors, not even a curious pedestrian! The houses went to the bank for the balance of the mortgage. And therein lies the rub!

Many homes bought at the very top of the market with 90% or 100% financing are under water - in other words, the house isn’t worth what is owed to the bank. Typically, the bank will buy the home for the mortgage balance, and then hire a Realtor to sell the home at market value. In the end, the market still relies on real estate professionals to price, market, show, and finally settle these homes.

If you hear about a foreclosure on a home you are interested in, either as a new primary residence or a rental-income opportunity, please give Brandon Green Companies a call to review the different strategies available to purchase foreclosed homes.

This week I read an article in the Washington Business Journal. It caught my attention immediately when I saw the phrase “International Buyers.” The article is called “International Buyers Drive Sales of D.C. Luxury Homes.”

The article states how strong the luxury sales have been in our DC metro area thanks to international buyers. Just think about anybody you know that was born overseas. I am sure you know some people.

We are lucky to be in an international city. The strong Euro and Pound are helping the American market. The developers know that buyers looking for luxury homes are willing to buy the property for themselves and not as an investor. They know this type of buyer will pay top dollar for the luxury accommodations. Private elevators and 24-hour web concierge are some of the services that are offered in the new buildings.

What I have noticed in the DC metro area is that prices, in some particular areas and specific type of homes, have been very strong. I have seen how in certain areas (like AU Park, Georgetown, Adams Morgan, Kalorama, Dupont, and Arlington) there are not many houses for sale and prices are still strong. The few homes that sell are selling for top dollar and very fast if they show well or/and if they are properly priced. People that are buying in these areas are probably going to be there for a while and they are not concern about the current market or the prices going down next year. They understand that eventually prices will go up.

It is still a very good time to buy and sell.

If you are thinking about selling your home or you are just curious about the value of your home, please call us at 202-318-1623 or click here for a comparable market analysis.

Last week the Senate and the House agreed to an Economic Stimulus package and are sending it to the President for signatures immediately. Part of the stimulus package includes an increase in the Fannie Mae and Freddie Mac loan limits which are currently at 417K.

What this means is it will now likely be cheaper to get a mortgage for homes up to about 700K. The exact workings of this program have not been finalized, but this should stimulate markets like DC where most of the homes are above $417,000.

What should you do? Watch the news, speak with your lender, and consider refinancing if your loan is above 417K. If you’re in the market to buy, this should significantly help affordability this spring.

If you’re one of the lucky ones to receive a rebate check, here are 10 tips for homebuyers during these tough economic times – and how to use your rebate check to maximize your home buying opportunities:

1. Spend the money on a quality home inspection – most inspections run $250-$550. You want to make sure you’re not buying someone else’s problems!
2. Buy down your interest rate and make the home even more affordable! In some cases you can use a few hundred dollars (depending on the loan amount) to discount your interest rate.
3. Valuation of property in today’s market is extremely important. Use your rebate check to buy an extra appraisal – to make sure your contract price is not overly inflated.
4. Is your rent rising faster than you can calculate? Use some of that rebate to break your lease and buy sooner. Many sellers will even help you pay the fee associated with breaking your lease to get you to move on their home!
5. The difference between a short term adjustable rate mortgage and a 30 year fixed mortgage can be only a few hundred dollars. Use your rebate money to give you an extra cushion for the first few months until you get used to your new monthly mortgage payment.
6. Carrying a small balance on your Macys card you just haven’t paid off? Even small balances on cards can impact your credit score – which increases your monthly payment. Pay off those small balances now!
7. Buy a home warranty when you settle on your new home. For about $500 you can buy a 1 year home warranty which will protect most of the systems in your home.
8. Buy a one year termite warranty. Termites are aggressive – and can damage your home’s structure quickly. If the home currently does not have termites, the one year termite warranty is only about $50.
9. Now that you’ve bought a home – use your rebate money to sit down with an estate planning attorney to make sure your will is updated and your assets are protected.
10. About $500 will buy you a complete financial analysis from a certified financial planner. Now that you’re a homeowner, it is time to make sure the rest of your financial house is in order. Speak with a professional – let them create a plan for you.

I was recently appointed to the Washington DC Association of Realtors Board of Directors and we had our first 2008 meeting yesterday morning. In 2007 the Board had begun a community outreach initiative to strengthen the image of the Realtor, and to educate the consumer about the differences between Real Estate Agents and Realtors. Realtors are members of the National Association of Realtors and are required to live by a code of ethics – or be punished financially.

Real Estate Agents are licensees and not required to uphold those ethics because they are not members of the Association. During the preparation for this public outreach campaign, the Board hired a PR firm to poll and conduct focus groups and they found the vast majority of residents do not know there is a difference between a Realtor and a Real Estate Agent at all. They also found the community viewed Real Estate Practitioners unfavorably because the perception is they swoop in, make money, and leave.

Though I’m not surprised by this, I’m disheartened that we as a real estate community aren’t doing a better job of participating and contributing to the communities we live in, and educating the consumer about our business.

WDCAR’s mission is to ensure the rights of the DC homeowner are protected politically. WDCAR fights to keep property taxes low, fought (and lost) the raise of the transfer and recordation taxes, and is working with local politicians on many other initiatives. WDCAR was also instrumental in getting the DC Vote initiative on the national agenda through lobbying on the Hill. Realtors are fighting for this because we too are homeowners and together we can have a stronger voice.

Hopefully the public awareness campaign this year, which will features ads, community services, and seminars, will help educate the community that the vast majority of Realtors really are out to help our communities. I feel like an ad right now for Realtors – but I was really impacted by the meeting yesterday. We have much work to do.