Maryland Real Estate by Pamela DuBois: FALL IS A GOOD TIME TO SELL - LESS COMPETITION

Maryland Real Estate by Pamela DuBois: FALL IS A GOOD TIME TO SELL - LESS COMPETITION: I prefer to celebrate the coming new year in September -- the month when everything really important happens. Fall is for the first day of ...

Maryland Real Estate by Pamela DuBois: TO BUY OR NOT TO BUY

Maryland Real Estate by Pamela DuBois: TO BUY OR NOT TO BUY: In life, and in real estate, there are decisions that, if we had them to do over again, we might do x, y or z differently. But all in all, w...

Montgomery County Features in CNN Money Magazine's Top 100 Places to Live

I've lived and worked in Montgomery County for over 25 years, mostly in the Gaithersburg and Germantown areas, and I have to agree with CNN Money Magazine--Gaithersburg and Germantown are great places to live!

In their yearly survey of the best places to live, five Maryland cities made the list of the top 100: Columbia, Ellicott City, Gaithersburg, Germantown, and Waldorf. Gaithersburg is #23, and Germantown is just behind it at #24. What a great time to be living in Montgomery County!

The rankings are based on things like job opportunities, quality school systems, low crime, health care, housing, and entertainment. If you live in this area, you know we've got all that and more. If you don't live here, wouldn't you like to?

FALL IS A GOOD TIME TO SELL - LESS COMPETITION

I prefer to celebrate the coming new year in September -- the month when everything really important happens. Fall is for the first day of school, fresh notebooks, new shoes, empty backpacks and chocolate milk. It's simply the season of change, and nature herself confirms it. Leaves start changing color, the air gets crisp, and all the hanging flower baskets around my house die because I forget to water them (so sorry!). Football kicks off, root vegetables begin showing up on the dinner table, and all the best TV shows are back in the prime-time lineup. September is also the month when folks who've had their home on the market during the summer question whether to cancel their listing. Conventional wisdom says the window of opportunity passes with the summer sun and only the homes of "desperate" sellers remain for sale after the first day of school. I hear it all the time from sellers, "We'll list our home until school starts." It's not a decision based on their needs or desires, but on the idea that buyers looking for a new home will be too busy to find one in the fall, or somehow sellers will fool buyers into thinking their home is a "new listing" in the spring. Tricky, tricky! Granted, summer is the time of the year where more homes are bought and sold. I get that. But, the market doesn't suddenly dry up and disappear in September! People who genuinely need to move are still going to buy a home. As for "hiding" days on market? Yeah, that really doesn't work. Like, ever. This autumn is a great time to have a house on the market, says Realtor.org: Inventory is down and so are the days on market. Sellers can over complicate the process. But when it comes right down to it, a sale is about motivation and money. Supply and demand. Simple, simple stuff. Like going back to school, freshly sharpened pencils and new haircuts, real estate is elementary. And always worth celebrating. Go September!

TO BUY OR NOT TO BUY

In life, and in real estate, there are decisions that, if we had them to do over again, we might do x, y or z differently. But all in all, we are not too upset about how things turned out. "C'est la vie," as they say. Then there are the decisions and actions we actively regret, worrying over their long-term consequences, wishing we could have a cosmic do-over, stewing and ruminating over what we did wrong. (In truth, it's a sign of emotional maturity to see every experience as an education, and to be free from ruminating over even the worst of our regrets. But I digress). Contrary to popular belief, my experience shows that the vast majority of home buyers commit what they see as the first type of mistakes, but not those deep, dark regrets. However, those that do have serious regrets can lose many hours of sleep and many thousands of dollars trying to remedy them. Their only gain? Experience and gray hairs. Here are the top 5 true, deep regrets of home buyers and some insights for how to prevent them from taking over your own life: 1. Premature buying. This is not at all about timing the market or making sure you get in at the "just-right" moment. There's not much you can or should do about that. But buying before your life or your finances are ready for home ownership is a transgression that ends up causing serious, long-term regrets for those who end up doing it. Premature buying takes several forms, the most common of which includes jumping the gun and buying before you've saved as much as you really need, or before you've paid your debt down to the level you really needed to. Another pervasive form of premature buying is to buy before you've truly, deeply, seriously run all your own personal financial numbers, which puts you in the position of forced reliance on what the bank, lender or someone else thinks is affordable, which is often wrong. Similarly, buying because you feel pressure to get in while the market is keeping prices and interest rates low, rather than because you want and can afford a home, is a surefire path to real estate regret. 2. Buying too small of a house. People who buy too large of a home often realize, several years in, that they simply aren't using all of their rooms and many either sell and downsize or find ways to put the extra space they have to better use. People who buy too small of a home, on the other hand, are acutely aware of it from the moment their children start fighting, they find themselves and their energy levels deactivated by clutter or they end up realizing that there is no room at the inn for the family members or friends they'd like to house, short or long term. Buying too large of a home is potentially wasteful of the money spent maintaining, heating and cooling the place; buying too small a home is uncomfortable and frustrating, sometimes intensely so, on a constant basis -- hence, the regret it can create. Avoid this regret by starting your house hunt with a visioning exercise: What do you want your home life to look like in 10 years? Who will live with you? Do you entertain or have overnight guests? What activities do you want or need to be able to do there? Do you want to practice yoga, crafts, have kid-sized homework spaces, work at home, collect classic cars or move your parents in? If so, seek to buy a home that can comfortably fit all these people and their activities, even though they might not all exist -- yet. 3. Buying a home you can't truly afford. You might think that one of the top 5 regrets of homebuyers would be buying at the top of the market. But that's not the case -- I know plenty of buyers who bought at the top, paid top dollar and are still upside down on their homes, yet are still happy with their homes because they can well afford the payment and bought homes that will serve their families very well for the very long term (which will allow their home's value to recover). It is much more problematic to simply overextend yourself on a home -- no matter what the market dynamics are at the time you buy. People who both bought at the top of the market AND overextended themselves made up the large majority of folks who lost homes, as the mortgage gyrations they went through (i.e., taking short-term, interest-only, adjustable-rate mortgages) in order to qualify for the home in the first place also caused them to be utterly unable to sustain the mortgage once the market declined and their mortgages weren't able to be refinanced. If you can't foresee being able to make the mortgage payment on your home 10 years in the future without refinancing it, that's a sign you might be approaching the unaffordability danger zone. 4. Incompletely resolving co-buyer conflicts. Many co-buyers are couples, but I've also seen parents buy homes with their children, siblings buy homes together and even good friends team up to co-buy a home. Any time there is more than one buyer, there is a chance that the co-buyers will have one or more disconnects in their wants, needs and priorities. Often these are resolved almost effortlessly by the realities of the homes that are on the market (e.g., neither party's dream home turns out to actually exist, or pricing realities require everyone to compromise); other times, people simply work things out like mature individuals, seeking first to understand their co-buyer's position, then working out a compromise that works for everyone involved. But in still other cases, the conflict is never truly, deeply resolved; even on closing day, one side feels completely misunderstood, or caves in for the sake of avoiding conflict, or someone simply throws a tantrum, insisting that they get their way. In these cases, it's common for the party who feels undermined and trampled on to ruminate on it as they live in the property every single day, ending up with great resentment and anger over the years. 5. Taking on fixing beyond their skill, patience and resource level. It can be heartbreaking to tour one of the many homes on the market that was clearly the subject of a previous owner's fixer-upper dream but was abandoned in the middle of a remodel. Often, these abandonments happen because the owner simply underestimated what the project would take and ran out of time, energy or, most commonly, money to get the remodeling completed. But it's even sadder to tour the home of a frustrated fixer whose owner and family still lives in a half-done, very dysfunctional property, and who are getting more and more disgruntled with their situation every time they make a mortgage payment.

Washington DC housing market surge

http://www.housingwire.com/content/washington-housing-resurgence

Important tips for buying a home

Buying a home is an important decision and that step should not be taken without doing your research. An educated buyer is in the best position to make the right decision about this major purchase. If you are knowledgeable about the housing market and procedures your transaction will go much smoother. The best advice for prospective home buyers is to hire a real estate broker. Again, research the brokers in your area. Talk to several and go with one you feel has a grasp of what you are really looking for in a home. Three items to look for are; an understanding of the market, knowing their client’s needs and finding properties that are great investments. A good broker will take the guesswork out of purchasing a home. Value The value of a home is different for each buyer based on how they are planning to use it. Herman states that lifestyle, transportation needs and schools. This value will be different for a family with children or a family with no children. The value in their eyes will be different. Cost Herman states that many sellers believe the cost of the house is what they paid for it plus improvements and renovations made during their tenure. By improving the home they are increasing the value of the home even though the cost of the home may remain the same. Herman emphasizes, “Cost and value are not what the price of the home should be or shouldn’t be.” Price/Fair Market Value The fair market value price is what the property is worth at today’s financial level. Fair market value may be determined by looking at other properties similar sold in the last six months. She goes on to warn that Comparative Market Analysis will not tell you everything you need to know. There are a few things that CMA will not be able to help you in some areas. A house built in the same neighborhood, by the same builder and at the same time will look totally different from one another in ten years. Looks and market value will depend on the condition of the property inside and out and such things as cleanliness and general upkeep. Another item that can affect the value of the property is the view. If the view is a beautiful lake, mountain, or stunning forest people will pay a premium for the view. School districts can also determine the fair market value of a property. A buyer needs to do some online research will tell you what the schools are like, crime statistics and other important information about the location. Neighbors might also be a consideration when looking at the fair market value of the home. If the house you are looking at is immaculate and well maintained, neighbors who are not tending to their lawn and the upkeep on their home may decrease the value of the property you are looking at. Once you have all the information, ask your broker to give you all the information on the homes you have selected to look at as a possible new home. Nothing takes the place of actually looking at the property. Appraising a house is an estimate and Herman states, “there is no exact science to pricing.”

Making sure you have everything in writing in your Real Estate contract

One reason sellers prepare and stage their homes for sale is so buyers can imagine themselves living there. It can be difficult for buyers who are emotionally involved with the home to picture what the place will look like after the sellers move out. To avoid after-closing problems, make sure that your purchase contract is clear about what stays with the house and what does not. Real estate law and custom vary from one area to the next. Ask your agent for help if you have any question about what's included in the sale and what is not. The multiple listing service can provide some information. For instance, if there are washer and dryer hookups only, then the washer and dryer are not included in the sale unless otherwise specified in writing in the purchase agreement. To be enforceable, real estate contracts must be in writing. Verbal agreements to sell real estate aren't binding. The MLS is the REALTORS®' listings of homes for sale and an offer to cooperate with other agents in finding a buyer. It is not a contract between the buyers and seller. So, even if the MLS information on a listing says the washer and dryer are included, you should write this into the contract so there's not confusion when the sellers move out. HOUSE HUNTING TIP: Typically, items that are permanently attached to the property, such as built-in appliances, tacked-down floor coverings, window coverings, light fixtures and bookcases, are included in the sale unless they are specifically excluded in writing by the sellers. For example, the dining room chandelier might have been in the sellers' family for years. It has sentimental value. The best approach would be for the sellers to remove and replace the fixture before the home goes on the market. Otherwise, ask the sellers to replace the fixture before they leave so that you're not left without light if this is the only source of light in the room. Satellite dishes and wall mounts for flat-screen TVs can create ambiguity. In some contracts, they are included. If you don't want them to be included, ask the sellers in writing to remove the wall mount and satellite dish and to make necessary repairs before they leave. If the sellers are taking these items with them, be sure to require in writing that they make necessary repairs. Special attention should be paid to the roof covering where a satellite dish is removed to avoid leakage into the home. Buyers are often taken by items of personal property that belongs to the sellers. They are a perfect fit for the house, like a fountain in the front courtyard, outdoor furniture or potted plants that enhance the garden, or a table that fits the breakfast nook perfectly. These items, unless permanently attached, are usually not included in the sale. Just because the sellers haven't offered to include a piece of personal property you covet doesn't mean you can't ask for them. Again, to ensure that they are included, write it into the contract, or an addendum to the contract. When should you ask for personal property that's not included in the sale? If you're in competition, postpone the request until the sellers accept your offer. When you remove contingencies might be a good time to bring up the subject. If the sellers can't part with the item you want, ask where they bought it. Even if the sellers have specifically said they are not leaving items like the washer and dryer, they might be willing to do so if your offer is good enough.

Has the housing market hit bottom?

http://online.wsj.com/article/SB10001424052702303644004577520414196790098.html

What do you as a seller if your neighbor is scaring buyers away..

http://lowes.inman.com/newsletter/2012/07/02/news/192590

Foreclosures and short sales - 203K Loans can help

Foreclosures and short sales always look so enticing, but these kinds of deals are not for people who are expecting in live in property within 30 days of ratifying contract or those who don't have the resources. Buying a residence that is not newly built usually requires immediate rehabilitation and remodeling to be followed by regular maintenance. Taking on a foreclosure or short-sale property requires a lot of patience. One of the most overlooked FHA programs, the 203(k) loan, can help with all those problems if you want to take on the burden of the foreclosure investment. I bring all this up because I wanted to discuss the 203(k) loan program, which is an under appreciated FHA opportunity that can combine purchase price and fix-up costs into one mortgage, and, secondly, because there have been increasing discussions about the virtues of buying a new home instead of a cheaper property where the mortgage is busted. Just like the purchase of a new car instead of used one, many prefer to buy a new home because it comes with all the modern bells and whistles and since everything is brand-new; as a homeowner, one shouldn't have to deal with structural and systematic breakdowns. Recently, the National Association of Home Builders pulled some data from the 2009 (most recent) American Housing Survey, a joint production of the U.S. Census Bureau and the Department of Housing and Urban Development (HUD), to see how frequently maintenance was required in a new home (four years old or younger) versus an older property. Its conclusions: 26 percent of all homeowners spend $100 or more a month on various upkeep costs; only 11 percent of owners of newly constructed homes spend this amount. In addition, 73 percent of new homeowners spend less than $25 a month on routine maintenance costs. The same holds true for energy expenses, NAHB reported. On a median-square-foot basis, homeowners spend 78 cents per square foot per year on electricity. Owners of new homes spend 65 cents per square foot per year. For homes with piped gas, homeowners spend on average 53 cents per square foot per year; owners of new homes spend 38 cents per square foot per year. "The message is, when you compare the average new-home price to the average existing-home price, new homes are more expensive, but when you consider additional, incremental costs, you are getting additional value," said Robert Dietz, an economist at the NAHB. "Obviously, the new home is going to be in superior condition, which means less expenses in the early years." Although the numbers from the 2009 American Housing Survey are getting a little ripe, Dietz doesn't foresee a big change when the next survey appears. If anything, he said the gap should be wider because homes are much more energy and maintenance efficient; meanwhile, the cost of energy and maintenance has only increased. "When you hear someone say, 'Hey, I got a short sale and the price is good,' the economist in me would respond, 'There's no free lunch,'" Dietz said. "It is going to require some effort and dollars to bring that home up to the standard the homeowner wants. In new construction, you get that standard in day one." Still, buyers of short sales and foreclosed homes seem to know what they are doing, and really, really want to purchase existing residences at what they consider bargain prices. They know there will be some fix-up costs, and if they're smart they'll be aware of one of the better FHA programs, the 203(k) loan. "A lot of people don't know about this loan; it's really a tight-lipped kind of thing," he said. "A lot of REALTORS® when I call to them about (the) 203(k) loan, they say, 'What is that?' Everyone is selling foreclosures, but they don't know what the 203(k) loan is." That's unfortunate, because it is a great selling point. Just a few notes from the FHA 203(k) loan website: --This is the Department of Housing and Urban Development's primary program for the rehabilitation and repair of single-family properties. --The program operates through FHA-approved lending institutions, which submit applications to have the property appraised and have the buyer's credit approved. --To purchase a dwelling and the land on which the dwelling is located and rehabilitate it, and to refinance existing indebtedness and rehabilitate such a dwelling, the mortgage must be a first lien on the property. The best feature of this loan is that it can be rolled into the mortgage. Robison explains: "The reason people should use this loan is because it is a way to not have to come upfront with cash. You bring the home's value up and roll it into your mortgage. It really opens up what's available on the market because if someone is looking at homes and saying, 'I can't buy this one because it is going to take $30,000 to redo the kitchen and put in a new carpet, they can get the expense wrapped up into one loan with one closing." There is even a streamline version of this loan that can go up to $35,000. Otherwise, the FHA loan limits vary by market, which, according to one website, range from $271,050 to $729,750. The same website offers this note about qualifying: minimum down payment of 3.5 percent; credit score of 640 or higher; no other FHA loans; and you do not have to be a first-time buyer.

Gaithersburg, MD - one of the top places to live in Maryland

http://money.cnn.com/magazines/moneymag/bplive/2010/snapshots/PL2431175.html

How to avoid a low home appraisal

http://www.wptv.com/dpp/money/consumer/how-to-avoid-a-low-home-appraisal

Mortgage rates rise

http://www.businessweek.com/ap/2012-04/D9U87AV80.htm

Short sales by-pass foreclosures

http://www2.timesdispatch.com/business/2012/apr/18/tdbiz01-house-deal-comes-with-a-mercedes-ar-1849852/

Foreclosure update

Foreclosure filings hit their lowest level in more than four years in the first quarter, according to a report from foreclosure data aggregator RealtyTrac.

Default notices, scheduled auctions, and bank repossessions were filed on 572,928 properties in the first quarter, or one in every 230 U.S. housing units -- the lowest number of filings since fourth-quarter 2007, when 527,740 properties received filings.

Last quarter's foreclosure activity was down 2 percent from the fourth quarter and 16 percent from first-quarter 2011. March accounted for nearly 38 percent of the quarter's foreclosure activity, with 198,853 properties receiving filings. That was the lowest monthly total and the first under 200,000 since July 2007, the report said.

On an annual basis, foreclosure activity fell 17 percent in March.

"The low foreclosure numbers in the first quarter are not an indication that the massive reservoir of distressed properties built up over the past few years has somehow miraculously evaporated," said Brandon Moore, RealtyTrac's CEO, in a statement.

"There are hairline cracks in the dam, evident in the sizable foreclosure activity increases in judicial foreclosure states over the past several months, along with an increase in foreclosure starts in many judicial and nonjudicial states in March.

"The dam may not burst in the next 30 to 45 days, but it will eventually burst, and everyone downstream should be prepared for that to happen -- both in terms of new foreclosure activity and new short-sale activity."

States that use the nonjudicial foreclosure process lead the nationwide decline in foreclosure activity, RealtyTrac said. Those 24 states and Washington, D.C., saw foreclosure activity drop 8 percent from the fourth quarter and 28 percent from first-quarter 2011.

Several nonjudicial states saw significant year-over-year drops in activity in the first quarter: Arkansas (79 percent), Nevada (62 percent), Washington (55 percent), Arizona (41 percent), Texas (31 percent), and California (21 percent).

By contrast, foreclosure activity rose 8 percent quarter to quarter and 10 percent year over year in the 26 states that mainly use the judicial foreclosure process.

Judicial states that posted some of the biggest annual increases include Indiana (45 percent), Connecticut (38 percent), Massachussetts (26 percent), Florida (26 percent), South Carolina (26 percent), Pennsylvania (23 percent).

Credit Smart tips

http://www.experian.com/live-credit-smart/10tips.html

Real Estate Tax break

One of the biggest financial advantages of owning a home is the mortgage interest deduction, but the amount many taxpayers submit is often greater than the allowed limit.

And, while home offices have become more popular because of convenience and the downturn in the economy, many homeowners may be better off not taking the deduction because of the depreciation recapture upon sale.

Both the mortgage interest and home office topics need to be double-checked before the April 17 deadline. Why April 17 this year instead of April 15? According to the Internal Revenue Service, taxpayers will have until Tuesday, April 17, to file their 2011 tax returns and pay any tax due because April 15 falls on a Sunday.

In addition, Emancipation Day, a holiday observed in Washington, D.C., falls this year on Monday, April 16. According to federal law, Washington, D.C., holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have two extra days to file this year.

Taxpayers requesting an extension will have until Oct. 15 to file their 2012 tax returns. Remember that an extension of time to file is not an extension of time to pay. You will owe interest on any past-due tax and you may be subject to a late-payment penalty if timely payment is not made.

In a recent column, we discussed the benchmark for the mortgage interest deduction is set at acquisition debt, which is the amount of debt in place when the home is acquired. For example, if you buy a $200,000 home with a $50,000 down payment, your acquisition debt is $150,000.

Many consumers stay in their homes for years, accumulate appreciation and then refinance to put a child through school, mom into a nursing home or attend a much anticipated family reunion. The new debt on the refinance will qualify as home acquisition debt only up to the amount of the balance of the old mortgage principal just before the refinancing.

For example, let's assume your home is now worth $300,000 and you need to take cash out for college tuition. The balance of your loan before you refinance is $135,000 and you take $100,000 "cash back" for a new loan balance of $235,000.

However, the maximum allowable mortgage interest deduction remains $135,000 -- the acquisition debt, not the bigger number from the refinance.

Another popular deduction that is often taken yet needs additional consideration is the home office deduction. It's relatively easy for taxpayers to deduct the cost of a home office. To qualify for a deduction, the space must be used exclusively and on a regular basis for either the entire business or its administrative and management activities.

If you are an employee, additional rules apply for claiming the home office deduction. For example, the regular and exclusive business use must be "for the convenience of your employer."

A home office deduction is comprised mainly of depreciation, utilities and insurance. For example, if a home has 2,500 square feet and the detached garage now deemed "the office" is 250 square feet, then 10 percent of the utilities and insurance are deductible.

The actual office depreciation is 10 percent of what would be a depreciation deduction if the entire home were being depreciated for tax purposes. (Depreciation is not allowed on a typical principal residence, so the square footage allotted to "residence" would not qualify.) Supplies and other expenses directly related to the home office are fully deductible.

However, all these benefits do come at a price. The tax law originally stated that if you sell your home at a gain, any depreciation for a home office will have to be "recaptured." That means that any profit on the business portion is taxable as capital gain.

On Dec. 23, 2002, the IRS issued new regulations concerning gain on home sales. As long as the home office was in the same structure and not separated from the home, only the depreciation taken for the home office after May 6, 1997, is subject to tax.

Still, that depreciation recapture amount could be a lot more than you expect. It may be worthwhile to simply work from home and not deem the space a "home office."

Tom Kelly's

What to look for in a Real Estate Agent

If you are either buying or selling a home in today’s market, you need a real estate expert. However, we must realize what the term ‘expert’ actually means. An expert in any area cannot give perfect advice as no one can predict the future. But they can give excellent advice based on their insight into their field.

If you go to an attorney with a legal challenge, he/she will look over your case and give you your options. They realize they cannot guarantee the outcome of any of the options. Still, they give the best advice possible and allow you to decide the option with which you feel most comfortable. They then will put together a strategy which hopefully will bring about the most favorable conclusion.

If you go to a doctor with a serious ailment, he/she will give you your options and work with you to develop the best treatment program. They cannot guarantee any program’s success. They will, however, monitor your progress and adjust your treatments or medications. They will stand next to you until the best result is achieved.

Real estate is no different. A true real estate professional will understand your options and simply and effectively explain them to you and your family. Once you chose an option, they will make a plan to help you accomplish your goals. They will standby you as the process evolves and will help you make the necessary adjustments if necessary.

They cannot see the future any better than doctors or attorneys and thus their advice will never be perfect. However, just like those other professionals, an expert agent will give you excellent advice that will bring about the best possible outcome.

Market upbeat

http://blogs.wsj.com/developments/2012/03/28/forecast-upbeat-on-housing-recovery/

Housing buying tips.

http://www.cbsnews.com/8334-505144_162-57404806/8-home-buying-tips-for-2012/?pageNum=2&tag=next

Home prices re-bound, Nough said!!

http://www.kcmblog.com/2012/03/26/enough-said/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+KeepingCurrentMatters+%28The+KCM+Blog%29

Is the Real Estate market moving up to positive news?

WASHINGTON (AP) -- U.S. builders are betting that the housing market is finally on the path back to health.

They requested 5 percent more permits in February to build single-family homes and apartments in the coming months. That increased the annual rate to a seasonally adjusted 717,000 permits, the Commerce Department said Tuesday.

While that's still half the rate considered healthy by most economists, it's the highest since October 2008.

"This report is one of the more encouraging new construction reports we have seen in the last four years," said Patrick Newport, an economist with IHS Global Insight.

Builders have grown more confident over the past six months after seeing more people express interest in buying a home.

The rise in permits suggests builders see that interest translating into sales over the next 12 months. That's how long it typically takes to build a home after a permit is obtained.

Economists cautioned that construction levels remain depressed and the housing market has a long way to go before it is back to full health.

In an indication of that challenge, the government said builders broke ground on slightly fewer homes in February. The seasonally adjusted rate of 698,000 housing starts fell from January's revised level of 706,000, which was the highest since October 2008.

"The key numbers in this report are the housing permits -- not the starts," said Newport. "The permits are better measured than starts, are
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less influenced by weather and are forward looking."

Ian Shepherdson, chief U.S. economist at High Frequency Economics, said he expects further gains over the next few months.

"Housing will add to growth all year, and beyond," Shepherdson said.

A mild winter allowed builders to keep working in most parts of the country. And an improving job market has many slightly more optimistic about home sales this year.




Copyright 2012 Daily Democrat. All rights reserved.

Will gas prices affect the housing market?

http://realtybiznews.com/real-estate-market-experts-acknowledge-rising-gas-prices-will-impact-housing/98710490/

Buying a home - is it still the best investment?

Not long ago, buying a home was the best investment you could make. Not only did it provide a place to live, but it provided instant wealth for many homeowners through rapid home-price appreciation. Renting seemed risky. If you didn't own a home, you'd miss out on equity buildup that would bankroll a move to a bigger, better home.

In this market, the realistic way to look at a home is a place you want to live. Buying a home doesn't guarantee that you'll make a big return on your investment. You might if you stay long enough. Over the long term, home-price appreciation usually outpaces the inflation rate. However, this varies from one locale to the next.

HOUSE HUNTING TIP: Today, many homeowners who want to move to a bigger or smaller home are choosing to rent for a while rather than buy. The pressure of rampant appreciation is nonexistent in most places. Even though interest rates are low, they're expected to stay low. So buyers trading homes have the luxury of renting until they find a home that will work for them long term.

This means you aren't under pressure to buy quickly. If you buy a home that you find out doesn't work for you and sell it again within a year or so, there's a good chance you'll lose money when you take into account the costs of buying and selling.

No one knows for sure when the economy will substantially improve. Last year, some economists predicted a double-dip recession. That appears to be less risky at the moment. In the fourth quarter of 2011, the nation's economic output grew at an annualized rate of 2.8 percent, which is not recession territory, but is not considered good enough by some economists.

On the housing scene, the number of homes sold nationally increased over the previous year in each of the last three months of 2011, according to the National Association of REALTORS® (NAR). However, sale prices still haven't caught up with 2010 prices in most places.

Will 2012 be the turnaround year for housing? Lawrence Yun, NAR's chief economist, thinks that the combination of increasing home sales, record-low interest rate and low home prices "demonstrates a market in recovery."

Other good news for housing is the recent increase in consumer confidence and the decrease in the inventory of homes for sale to a level not seen since March 2005, according to NAR. Yun thinks that the drop in inventory will contribute to price stabilization and possible modest price growth in the near future.

The housing market may have hit bottom for this cycle, but any bad economic news here or abroad could cause a rocky recovery. The unemployment rate is still high; there are millions of foreclosed homes yet to be sold; and approximately 25 percent of homeowners owe more on their homes than they're worth in today's market.

There is pent-up demand on both the buy and sell side. One problem for buyers has been the lack of quality inventory. That may improve this year as some sellers decide they're tired of waiting for a better time to sell.

The new normal is not the bubble market, but it's possible to buy and sell successfully as long as your expectations are realistic. Many sellers still think their home is worth more than it is. Overpriced listings don't sell in any market.

Buyers have the advantage of low interest rates and home prices. Buyers who can find the right house and stay put for five to 10 years will probably be happy they bought now.

THE CLOSING: Many buyers who can't stomach uncertainty won't buy now but may regret that they didn't when the market turns and buyers come rushing into the market.

Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author of "House Hunting: The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide."
Contact Dian Hymer:

Wahshington Homes Prices rose 6 percent in February

http://www.washingtonpost.com/blogs/where-we-live/post/washington-home-prices-rise-6-percent-in-february/2012/03/09/gIQACOge1R_blog.html

Bill to speed up pre-foreclosure - Great news!!!

http://www.linkedin.com/news?actionBar=&articleID=5577406286816878657&ids=djgOcP8Qc38QdPkUcPcNcPwRdiMUdPcQcjkMe34PcPkMej8Oe3kRb38Sc3sTdPANc3kMcjcNejATdjkIdPkSe3sUdz4UdzwOdz0QdPsRdiMTdz4Uc3AOe3gScjkPcPsTdzkR&aag=true&freq=weekly&trk=eml-tod2-b-pub-1&ut=3A5OPzF5kuz581

America's Housing market

http://www.economist.com/node/21548995

Question for Sellers selling Real Estate in current market

http://www.kcmblog.com/2012/02/28/is-it-the-price-of-your-home-or-the-price-of-your-happiness/

Is the bank responsible for issues that come up after settlement on foreclosed homes

Below is an example of what may happen if you buy a foreclosure.

Buyer: We bought a foreclosed home, as is, from a bank. When we removed the old carpet, we found large cracks in the slab, leading to costly foundation problems. The contractor who repaired the foundation found evidence of previous foundation repairs that were done incorrectly.

We searched the county records and found that this older work had been done without a permit. Is the bank that sold us the properly liable for not disclosing this problem?

Answer: Banks are exempt from disclosure laws because, in most cases, they are unfamiliar with the homes they acquire through foreclosure.

If you had bought the home from a private party, that person might have had knowledge of the substandard foundation repairs and would have been required to provide disclosure. In your case, the bank was probably unaware of the problem and could not have provided disclosure.

Unfortunately, some banks take advantage of the disclosure loophole by avoiding information that they might have to disclose. For example, if you had hired a home inspector and had then decided not to buy the property, the bank would probably not have requested a copy of the report.

Without having seen the report, the bank could maintain plausible deniability with other buyers.

Housing market shows signs of turnaround

http://www.csmonitor.com/Business/2012/0222/Housing-market-showing-signs-of-turnaround

Building permits and final inspection for buyers and sellers

Not only is it a good idea for buyers to check the permit history on a home before they buy, but sellers are wise to check the permit history on their homes before putting them on the market. This way, they can correct any permit issues before the listing goes public.

Homeowners often assume when they hire a contractor to do work that requires permits that the contractor will take responsibility for this. This may not happen, particularly if it is not specified in the work authorization contract.

Sometimes there is mis-communication between a contractor and the homeowner. One thinks the other is going to call for a final inspection and meet the inspector, but neither does. It's a good idea to follow up on this because it will cost more renewing a permit if it expires before the final inspection is done.

Another issue that can create problems is work done without building permits that adds living space to a home. In most cases, due to changes in mortgage lender requirements, appraisers can't count unpermitted work as livable square feet, even though it is used as such by the current homeowners.

In older neighborhoods, there are often homes where an attic or basement has been converted to add living space. Until recently, if the work was done professionally by a contractor, the appraiser could usually count it as usable square feet. Today, underwriters may require copies of permits for all work that adds square footage in addition to what shows in the public record.

The public record on a property is not always accurate. For example, an addition that was done with permits may not show up in the public record. In this case, the error should be corrected before the home goes on the market. Your real estate agent or assessor's office should be able to help you with this.

Many homes have been renovated without the benefit of building permits and final inspections. In today's real estate market, this could have an effect on value.

Even so, the last thing a seller should do is make representations that can't be substantiated. Sellers who had work done without a permit should let the buyer know, in writing.

Maryland Mortgage Deduction taken away.

http://capwiz.com/mdrealtor/issues/alert/?alertid=60933501

Foreclosures

http://lowes.inman.com/newsletter/2012/02/21/news/178434

Tips for Selling your home in Today's market

Some homeowners have been waiting for years for a better housing market and a good time to sell. Is it better to wait a few more years and see if you can get a higher sale price, or sell now and just move on?

The motivation for selling is the big question. Are you commuting to work several hours a day and the commute is just too long? Are your children grown and your home is too big, in addition to being a burden to maintain or it it too small? Are you moving out of the area for job transfer? Can you no longer make the payments? Do you no longer want to pay the price it costs to own and maintain a your home?

These are all good reasons to consider moving. Not only do current market conditions enter into the equation, but making a move like this is usually more complicated than it was the first time you bought a home.First, you need to find out the probable sale price of your home and access the state of the current home-sale market in your area. You also need to know what you can do to maximize the saleability of your home. Then you should consider where you'll live next and how much that will cost.

If you don't already have one, find an experienced real estate agent who specializes in your area. Friends whose opinion you trust are the best source of agent referrals. Meet with your agent at your home and ask for a comparative market analysis. This will help you figure out what you may be able to net from the sale of your home in the current market.

You'll also want to know how long you can expect it to take to sell your home. How many homes like yours have sold recently? Are homes like yours in high demand? Or, is it located in a less desirable area that could mean a longer marketing time and, perhaps, a lower price than you were expecting?

Ask your agent to walk through your home with you and point out what should be done to make your home marketable. Homes that sell today are priced right for the market and are in move-in condition.

You want to make cost-effective improvements. If the kitchen and bathrooms are outdated, consider a cosmetic redo. Update paint, hardware, light fixtures and floor coverings, if necessary. Don't do a complete remodel unless you plan to stay in your home for years; otherwise, you won't recoup your investment.

Deciding where to move -- and when -- can be difficult. Some buyers can afford to buy a new home before selling, and prefer to make the move that way. Most repeat buyers can't afford to buy first. Others who can won't buy first due to market uncertainty and the stress of owning two homes at once.

The most prudent approach to making a move from one home to another is to sell first and rent if necessary until you find the right home to buy. By selling first, you will know exactly how much money you have to apply to a new home. Today's housing market is volatile. A dip in the market could shave tens of thousands of dollars, or more, off your selling price.

The other benefit of renting before buying is that you're under no pressure to buy the first listing you see. Interest rates are low and are expected to stay low through 2012. Prices are also low and aren't expected to move up much for the next several years.

Buying a home without representation

Should we use an Agent to Buy a home?

When they first begin looking for a home, many buyers ask "can't we do this on our own? Do we really need to use a Real Estate Agent?" The answer is yes, you can do it on your own. There is no law that prevents you, as an individual, from buying property without professional Real Estate assistance. You can search for homes, arrange showings, and even negotiate on your own (although, in some localities, the actual contract for purchase will need to be drawn up by an Attorney). The real question may be "do we want to do it on our own?"

There is a misconception among many first time home buyers that by using a Real Estate Agent, they will be subject to paying a commission. In virtually all situations, this is not the case. The commission for the sale of a home is paid for by the seller, not the buyer. If you went to your local appliance store and bought a new refrigerator, you wouldn't expect to pay a commission to the salesperson. The same applies when you buy a house--it is the seller of the item (in this case a house) that is responsible for paying to have it sold.

If you do decide to "go it on your own," your choices will obviously be very limited. The only homes that you can buy without any Agent assistance are those that are "For Sale By Owner" (FSBO)--generally a small percentage of the market. These are home owners who, for whatever reason, have decided not to use an Agent in the sale of their house. It may be because they think they can get more return by not paying a commission, or it may be because there was no Agent who would take their house listing at the price they demanded. Many Real Estate analysts have found that the selling prices of FSBO homes are equal to--or higher--than those listed by Agents. A problem arises when, as a "do-it-yourself" house buyer and without the benefit of a Comparative Market Analysis, you need to make a determination whether or not the house is worth the asking price. How do you decide? There is too much money potentially involved to make a "seat of the pants" decision. In this case, you will need to either secure an independent appraisal to determine a realistic price range for the property or develop your own determination of value.

The next mistake that many buyers make, when they find that their choices are so limited by only dealing with homes for sale by owners, is to jump into the "listed" market by checking advertisements and calling Listing Agents directly or visiting Open Houses. There is not a dime to be saved with this strategy (the seller is still going to pay a commission) and you run the risk of ending up with no representation, since the Listing Agent is duty bound to represent the seller.

Has the housing market a stablized?

The CEOs of some of the nation's biggest home building companies said Thursday that they feel the housing market has stabilized.

But they were careful not to be overly optimistic even with the spring home-selling season coming up. A year ago many housing experts forecast housing would begin recovering in 2011, only to see it play out as the worst year for new home sales on records going back a half-century.

Executives at Pulte Group Inc., MDC Holdings Inc., M/I Homes Inc. and Beazer Homes USA Inc. weighed in on the housing market after their companies reported financial results for October to December.

In that period, sales of new homes rose nationally as builders slashed prices to compete with sales of previously occupied homes, including many that had been foreclosed.

Beazer's and M/I's sales and new orders rose sharply in the quarter, while trends were mixed for Pulte Group and MDC Holdings.

Only Pulte Group ended the quarter with a smaller backlog of homes under contract than a year earlier, and its backlog fell less than 2 percent. Backlog is an indicator of potential home deliveries and revenue for home builders.

So the increases bode well for the spring. But executives were cagey about forecasts.

Pulte Group President and CEO Richard Dugas said it's still too early to get a read on whether spring will be a boon or a bust — though he was pleased with business activity in January and said sales representatives in the field were positive.

Depreciation in today's market.

Seventy-two percent of homeowners say they are satisfied with home ownership, according to a recent survey of more than 1,400 homeowners conducted by HomeGain, a provider of online marketing programs that connect agents and brokers with home buyers and sellers.

Among the 28 percent who said they were dissatisfied, 63 percent cited price depreciation as the main reason for their dissatisfaction.

Other dissatisfied homeowners cited the costs of owning and maintaining a home as major reasons for their dissatisfaction.

HomeGain also assessed satisfaction levels by sales type and found that homeowners who purchased a home through a short sale were the most likely to be pleased with their choice.

Eighty-three percent of short sale purchasers were satisfied homeowners.

Homeowners who purchased foreclosed homes were the group next likely to be satisfied with owning a home. The group reported a 79 percent satisfaction rate.

Existing-home and new home purchasers were least likely to be satisfied, though a majority of these homeowners

were still satisfied. Seventy-one percent of existing home purchasers and 73 percent of new home purchasers said they were satisfied.

Home ownership satisfaction varied somewhat by region with the highest satisfaction rates in the Northeast – 77 percent – and the lowest in the Midwest – 68 percent.

The Southeast and West fell in between at 73 percent and 71 percent, respectively.

When comparing satisfaction among homeowners of different age groups, HomeGain found that satisfaction was greatest among older homeowners and least prevalent among the youngest homeowners.

Homeowners ages 18 to 25 were the only homeowner to report more than a 50 percent dissatisfaction rate.

Fifty-five percent of homeowners ages 18 to 25 were dissatisfied with homeownership, while 24 percent of those 55 and older expressed dissatisfaction with being a homeowner.

The survey also found that home value was inversely related to home ownership satisfaction. Those whose homes are valued at less than $75,000 are 77 percent likely to be satisfied homeowners.

The rate trends steadily down as prices rise, with the highest category in the survey – homes valued at more than $801,000 – bringing in the lowest satisfaction rate – 69 percent.

Sixty-seven percent of dissatisfied homeowners with homes valued more than $801,000 cited price depreciation as a primary source of their discontent.

For those with homes valued less than $75,000, price appreciation was not a major factor in their outlook. Fewer than 40 percent of these homeowners cited price appreciation or depreciation as the primary reason for their position on home ownership.

written by HomeGain.

Selling your home and being scarce when buyer is looking.

The location, the time of year, the economy — these are just some of the factors that can impede the sale of a property. One of the biggest impediments to successful sales often is the homeowners themselves — particularly the ones who are trying the most to be helpful.

One of the things that can hinder a sale is when the buyer is looking at the home and the seller is following around with comments on each room. I once had a seller that was talking about the neighbors and how they don't like them.

It's best to not be there when you're selling the home. Buyers like to look at homes freely and not have someone follow them around, even if it's to help explain all the wonderful details and upgrades that have been done.

If you're in a situation where you have to be home, then move around to different rooms as the buyers look. Better yet, if it's possible,just go outside while they are looking. In some cases, that may not be possible, so the best thing to do is just stay put in one area.

Buyers really like to look at homes freely, open cabinets, closets, etc. If a seller is present, they will not be comfortable doing any of those things. Some cases they may not even come back to see the property again when seller is not there. So don't take the chance and be gone if at all possible. As inconvenient as it is, it's the best thing to do.

Remember your home is now a product and the buyer has to check it out thoroughly before putting an offer.

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Ten Home winterized MUST

http://www.inman.com/buyers-sellers/columnists/burnettbrothersinmancom/10-home-winterization-musts

Maryland Schools No. 1 in Nation

http://www.fredericknewspost.com/sections/news/displayUpdate.htm?StoryID=130487

Change Stresses importance of Home inspection

http://www.wtop.com/?nid=41&sid=2698895

30 year mortgage falls to the lowest in years

http://www.marketwatch.com/story/30-year-mortgage-falls-to-lowest-level-in-years-2012-01-03