The up curve…or is it?

With interest rates slightly rising and inventory moving it feels good to be an asset to my clients these days.  I know we have all been through the whirlwind but most of us have made it and came out stronger on the other side. 

Just last week I had an Open House on a cold dreary Sunday at a new listing I just recently acquired in Bristow and had an astonishing nine groups of people through the door in just a few hours.  If you have ever been to and Open in the past few years you might have heard the crickets in the background and the tumbleweeds rolling past your feet.  TODAY is a new day and consumers are much more confident and it just feels different…a good different.

Even in recent articles from many top economists they are predicting that job growth will provide a stronger stimulus for home sales this year more so than that of the tax credit in 2010.  With consumers making larger purchases such as furniture and new automobiles there is a better sense of job security in the years to come.  When you’re out there pounding the pavement keep and eye out for how many homes are standard sales as opposed to short sales or foreclosures, you might just be surprised and you may even be more surprised of the price tag.  Sometimes waiting three to six months for a short sale or getting a great deal on a foreclosure then having to spend money out of your pocket that makes up for the great deal you just got does not always have to be your only options. 

I believe we are on an up curve headed into 2011 and the excitement is building; a new year with better opportunity and greater possibilities!

Last minute shopping…?

December, December, December….the slowest time of the year for Real Estate to move.  What does this mean?  This means MOTIVATED sellers and lots of them. 

Let’s face it, its cold, windy, your running here and there trying to find those last few gifts, your planning your trip to go out of town,  having to deal with family, so the last thing you could possibly imagine is the stress of looking and buying a home.  I’m here to tell you folks it just may be genius if you can handle the pressure.

Real Estate agents are doing all the things listed above just like you and we tend to slow down too knowing the end of the year puts a damper on clients looking to purchase homes no matter how hard we work.  That being said there are still great deals out there on the market and with the holidays and the turn of the New Year right around the corner SELLERS are desperate!

If you were thinking of buying the end of the year is always the time to have a step ahead on the competition!

There’s no “I” in TEAM!

When looking to BUY or SELL a home many factor contribute to either side of the process.  Not only should you interview your agent but ask them to introduce you to their TEAM and who it’s made up of.

A Realtors team should consist of a few major players.  One of which should be an excellent lender that the agent has worked with and feels extremely comfortable that their lender of choice will have the absolute best interest in mind when it comes to their clients.  A versed Realtor will recommend that you look into a few separate lending opinions not only from their team but outside lenders as well to make certain you are comfortable with your choice.  Typically the lenders a Realtor will have on their team will have an excellent reputation and that Realtor knows thier lender will make certain all his or her clients meet at the settlement table on time!  Settling ON TIME is the #1 item in a transaction that clients felt was most important when polled by a nation wide association.

A few stand-ins on the team should be a very reputable Home Inspector that will walk you through that home and give you extremely detailed information as if he were purchasing it himself.  Here is a video of my Home Inspector David Sfreddo of Patriot recapping the details after performing a thorough home inspection http://www.youtube.com/watch?v=eWvRsDUPNfw.

Another addition to the team should always be a Title Company with competitive rates and outstanding reviews.  Ask your Realtor for a least two Title companies he or she would recommend and compare fees, this will be one of the most parts to the puzzle. 

Last but certainly NOT LEAST a list of contractors are always a great help to any transaction process.  Plumbers, electricians, and general contractor can MAKE or BREAK a deal, so if the Realtor can call in favors you stand a much better chance of closing your deal if any problems arise.  Remember a family member or a referral from a friend can be an EXCELLENT choice for a Realtor BUT make certain they work well with YOU and YOUR expectations and make certain there is more than “I” in their TEAM.

Last Quarter, HUGE deals!

As many of us know even if you are not in the Real Estate industry, the LAST quarter of the year are where the deals are when looking to purchase a home.  With the inclimate weather, all the Holidays knocking at our door and everyone traveling, who wanted to MOVE?  Well, if you are a trooper and can take the good with the bad you might just be in store for a GREAT deal that is hard to pass up.

In my experience in this business I have seen some of the best deals happen at the end of the year.  Believe it or NOT many times current home owners selling their property are generously motivated by the time they finally generate that ONE offer on their property after numerous months of being so patient.  They know consumers don’t want to come out on cold weekend mornings, they know they don’t want to be bothered with the total uprooting of their comfort zone during the holiday season and they know that many people are taking time off work and spending money on travel, gifts, and entertainment.

In my attempts to keep this short and sweet with this entry I’ll leave you with this; if you have slowed your search because of any or all of the reasons listed above it MAY just be a reasonable idea to call your Realtor today and tell them your back in.  This is a win win if you are a buyer with seller’s low level of expectation when it comes to selling their home in a timely manner and with interest rates at the lowest we’ve ever seen these deals are out there if you can sway the idea of the inconvenience at this time of year.

Investment property…or DREAM home?

Many buyers are skeptical in this market on where to go, what to do and who to listen to and to be honest I can’t blame them.  In the past five years everyone in this industry including, buyers, sellers, home owners, Realtors, Lenders, etc have seen it ALL!  From foreclosures that are incredible deals that need minor work to short sales that have been neglected, there is something out there for all budgets and tastes.

When looking into the purchase of an investment home OR taking that leap and going for the dream home you have fantasized for years, I really don’t think there is a right or wrong decision.  With interest rates at their lowest in our lifetime and prices finally at rock bottom either direction you sway when taking that next step in building for your future won’t be an uneducated move.  That single family home that was just a pipe dream so many years ago can actually be a reality in 2010. 

I recently wrote on a single family home for an investor that I had been working with for a few years now that was originally looking into investment homes year after year.  Investors tend to write offers low balling the banks or home owners in hopes someone with eventually bite; ALTHOUGH with all the buyers and competition out there today this strategy that worked for a few years is no longer something that is affective.  After loosing out on contract after contract my buyer called me and said “Joe, you know what, I think I have been doing this wrong all along”.   After a little back and forth with some questions and answers he said, ”I live in an investment home, I think its time I start looking into the dream home my wife and I have always wanted”.  Within a week we found “THE ONE” a gorgeous 4000 sq ft single family home, wrote the offer and had a short sale approval letter in less than 30 days, which is a REMARKABLE amount of time if you know anything about Short Sales.

In closing I’m here to tell you go with your gut.  In this market it is very difficult to make a poor Real Estate move when you take your time, educate yourself and work with the right agent of whom you feel is truly in your corner.

2010 Fall Festival

It’s that time of year again where we all love to carve pumpkins, go on hay rides and enjoy some great treats.  So, if you are in need of a great event to enjoy all of that I have just the place for you. 

I have enjoyed Cox Farm for as long as I can remember so if it’s just you and your significant other or the whole family this place is the spot to be for seasonal fun.  The festival runs weekdays and weekends from Sep 25th – November 7th 10am-6pm.  They have everything from food, to rides, to a huge assortment of pumpkins to choose from and even a large array of farm animals the kids are sure to enjoy.  This place has it all and then some and it’s not to far no matter where you reside here in northern VA.

Now if this wasn’t enough fun for you and the family bring back your old jack o’ lantern and Cox Farm will recycle them in a unique way November 6th and 7th.  High drop, catapult, squisher, and smasher are the terms used to describe how the recycling process is done and IT’S SO MUCH FUN!  If the little ones enjoyed picking their pumpkin and carving it they are sure to enjoy watching these events after it’s all over.  

For more information, ticket prices, and event times take a look at their website http://www.coxfarms.com.

Renting in this market? Why?

I’ve heard quite a few people tell me in the past months they are going to wait it out and rent for a few more years in this market.  This is hard to hear as their potential Realtor when I know this is the “TIME TO BUY”!  With the amazingly gorgeous homes out there, the INSANE interest rates and a little patients you can pick up the home of your dreams in this market where five years ago you would have had to start with a tiny condo.  Yes the majority of homes for sale are leaning towards the short sale market although given the right circumstances you can snag a steal.

I just recently got off the phone with my lender Melissa Hoover of George Mason Mortgage where she just expressed to me rates are at 4.125% with no points!  This is historic because this is the lowest rates have ever been in the history of lending.  To make this even sweeter banks are now expediting many of their short sales and the typical six months of waiting has improved in most cases.  Just last month I had and approval in 64 days from the date of ratification….YES that’s just over two months!   We settled an enormous town home in new condition with every upgrade imaginable in just over three month as the lowest sold in the neighborhood!

There are many deals out there to be had so keep your eye on the ball work with a great Realtor and Lender and really weigh that options before you sign another rental lease.

TAX CREDIT OVER?…Dont worry

So with the new month of MAY buyers now have to endure the NEW way of buying a home….WITH NO TAX CREDIT, RIGHT? Wrong!  YES, the $6500 – $8000 was a great opportunity to purchase a home and make a little cash on the side….or so that is how a lot of first buyers used to look at it from my experience.  Buyers were so blinded by the credit and even after teaching clients on a repetitive basis their tendency was to look past all the benefits other than the TAX CREDIT.  As a past buyer myself I completely understood and sympathized with human nature, so NOW  let me extend the additional benefits by means of this portal. 

Here are some of the really GREAT reasons to buy EVEN when the tax credit is gone: RENT is on the RISE, interest rates are at an ALL TIME LOW, if you qualify there are grants and incentives out there that act as FREE money and another BIG ONE is you will still receive a SIZABLE TAX CREDIT by purchasing a home by writing off the interest paid.  If you speak to any landlord, Real Estate Agent or person that plays a role in a Real Estate transaction they will tell you that rentals are on the upturn.  Reason being is partially due to all of the homes that were foreclosed on and people needing a place to live after. Another reason is due to all lack of inventory for a buyer to purchase.  Studies show that buyer’s confidence is way up and their momentum is full force.  Although if there is nothing to purchase buyers have limited options, one of which being to rent for the time being.

One of the biggest reasons to buy is due to the interest rates being so incredibly low; just over 5% as of today.  It’s hard to believe that buyers were paying nearly 20% at one point in our Real Estate history.  As for grants and incentives out there, if you qualify there are incredible chunks of money lenders are granting and incentives builders are offering.  If this is not enough to wet your appetite just keep in mind that as the end of the year you will write off all the interest paid from your mortgage payments and can either increase your paycheck throughout the year or receive a large refund when you receive your return.

With the prices and incentives I just explained you are still able to make an intelligent informed decision when it comes to moving forward in purchasing a home.

$8K for FREE “Who needs it?”

After the President extended the $8k tax credit for first time home buyers and added a $6500 return for existing home owners everybody took a huge sigh of relief.  Not only are banks and home owners paying your closing costs you are getting $6500 – $8000 back for FREE!  In addition there has NEVER been a better time to buy with interest rates hovering around 5%. 

If short sales, foreclosures or standard sales are not something you’d like to dabble with New Home Builders might be right up your alley.  New Construction has a vast assortment of opportunity and the incentives are amazing right now!  If you are looking for more of a deal with a little more leg work and cosmetic repairs needed a short sale and or foreclosure may work better for you.   

All in all NOW is the time to BUY!  There is no doubt that these are the best deals Northern Virginia and many points beyond have seen in the past decade.  There is no talk of extending the tax credit dead line again so get in while it’s HOT!  Home prices are on the rise believe it or not and missing this boat might leave you in the dark.

Do YOU know the difference between being prequalified vs PREAPPROVED?

If you are a first time home buyer OR adding to your portfolio of investment properties you’d be surprised by what you don’t know about securing a loan to buy that home. 

Upon meeting with your Realtor of having a phone call with them they will first and foremost express to you after assessing your needs and wants that you will need to speak with a lender to determine what price range you are eligible to purchase.  This process takes no more than 15-30 mins and after completion your Realtor will then know what price range you can afford and from there you can tell him/her what price range you feel comfortable with.  This process is known as being PREQUALIFIED.

PREQUALIFIED:

• snapshot of your buying ability
• unofficial process & easy to acquire
• unconfirmed, undocumented financial information
• will not suffice when submitting and offer
• Signifies no obligation by lender to complete loan

Upon finding a home and writing an offer on the property you will need a preapproval that is accompanied by a letter to be submitted with your offer.  This letter is a verified document stating that you can afford the home you are looking to purchase and will also be accompanied by a statement showing all of the figures you can expect to spend on your new home.  This process takes a little additional time with your lender while filling out required documentation.  After your lender has all the requirements filled out in their entirety, he/she will issue you a preapproval letter.  This letter accompanies the offer and is then submitted to the listing agent of the property you intend to purchase.   This process is known as being PREAPPROVED.

PREAPPROVED

• detailed overview of your buying ability
• official process and harder to acquire
• confirmed, documented financial information
• required when submitting and offer
• signifies obligation by lender to complete loan

Every Realtor can explain to you the pros and cons of using a reputable lender in that they will come through by getting you to settlement on time and make the loan process a breeze.  A good rule of thumb is if it seems too good to be true it almost always is.