Archive for April, 2011

I read this article today in Realtor magazine and thought I’d repost.  Can you imagine a market without a 30 year fixed mortgage?  That is a difficult thought and I hope we don’t have to figure out how it would actually change the market.  I believe we are in the process of a delicate recovery and we must stay the course on that recovering.  Sales figures are up in most of the DC area, though the pockets of activity are most impressive close to the metro.

Location location location – some things never change…

30-yr-mortgage.pdf 

The real estate market is just now starting a recovery from a near death case of pneumonia and so I’m worried to hear congress is thinking of sending us back to the hospital with real estate related budget measures like eliminating the mortgage deduction provision of the tax code.  I think there may be some wisdom to this long term but now is not the time to touch this.  Real estate is the back bone of our economic engine and has lead our country out of every recession – except this one.  Eliminating the mortgage deduction provision, or Fannie/Freddie right now would create a massive hole in our market momentum and would surely have a disastrous effect on values, destroying our recovery.

NAR is increasing Realtor dues by $40 to fund a nationwide effort to protect real estate related budget provisions.  I support this 100%.

To learn more about the initiative to here  http://naractioncenter.com/

It has been raining all week here in Washington and I’ve been touring houses seeing signs of water in basements, windows, in corners and on ceilings.  I did a little bit of research thanks to Dave Moersen of Home Check Home Inspections and the stats are telling.  Only 600 sq feet of roof space sheds approximately 800 gallons of water after only 2 inches of rain.  4 downspouts emptying water at 4 different locations would each discharge 200 gallons of water.  Most water seepage into basements is less than 20 gallons!

90% of property condition issues I see are water related so if you’re a home owner (or potential seller) look carefully for signs of water infiltration.  During the next heavy rain that lasts more than a few minutes, walk around the inside and outside of your home – during the rain – with a flashlight and watch where and how the water flows.  This will tell you want you need to do to maintain proper water flow on your property.

If you’re a buyer, look for staining, rotten wood, musty smells, and damp areas of the house.

For more information about property condition signs to watch for, please contact me.  Brandon@BrandonGreen.com

This March has seen a dramatic increase in buyer traffic in many areas of the country which has resulted in multiple bids on the best deals, giving some power back to the sellers who are asking buyers waive appraisal contingencies.  As a buyer, does this make sense?  It depends…  Are you planning to put a lot of cash down?  The bank will give you a loan based on the contract price or appraised value – whichever is lower.  If you’re putting more than 20% down, the appraised value is less important because you probably have the cash to accommodate.  If however, you’re buying with an FHA loan putting 3.5% down, you have no room for error and a contingency would be very important.  Here are my two simple rules for waiving an appraisal contingency.

1. Putting more than 25% down – YES, waiving should be fine as long as you are comfortable with the value.
2. Less than 20% down – NO, it can change the terms of the loan dramatically causing you to lose the house.

As always, consult with your Realtor to determine what the best approach is for your situation.