How Is Today's Market? Are Multiple-Bids Back?

Read this SmartMoney article and this Wall Street Journal article, in which I was quoted discussing another sign that the market is making a come back in stronger markets such as ours. Find out what buyers should expect, especially in purchasing well-priced homes and foreclosures.

Competition is back for home buyers, says the Wall Street Journal web site, and it’s a good sign. Competition signals housing market recovery, but it also creates bidding wars.

Winning a bidding war can generally snag you a house at a bargain price, but bidding wars actually drive home prices up because they play on buyers’ worst fears. When a bid is rejected, it makes a buyer want to be more aggressive and move faster on the next offer.  This can then push home prices higher than they are really worth.

Experts say there are three things you can do to avoid a bidding war or to survive should you find yourself involved in one.

• Research a neighborhood’s home inventory – Find out the number of active listings in an area versus those under contract. Many active listings mean prices have dropped significantly in that area due to a glut of available homes. In this case, a bidding war might work in your favor—even if buyers bid up the price, the house could still sell for less than it’s worth.

• Check employment numbers – Where there are strong employment numbers, there are people with the good buying credentials, i.e. a down payment and work documentation. Expect bidding wars in these areas.

• Be prudent with foreclosures – Don’t lose track of your goal with a foreclosure—to get a huge discount on the home you buy. Bank-owned homes sell for about 36% less than regular listings, so you wipe out any savings by bidding the price up above that level. And that doesn’t include potential renovation costs. 

Be aware of when you might be walking into a bidding war so you can choose whether or not to engage in battle. Know your price limits and when to walk away to fight again another day.

Contact me today for expert help buying or selling in the DC, MD, & VA area!

Working Successfully with Short Sales, Foreclosures and Mortgages

As a member of the Board of Directors for both the Affordable Housing Conference and the Greater Capital Area Association of Realtors, I'm helping to organize a free three credit hour class with lunch for Realtors that is geared at successfully navigating short sales, foreclosures and mortgages in our current working environment.

For additional information or to register, click here.

SPANISH IMMERSION PROGRAM AVAILABLE FOR MONTGOMERY COUNTY ELEMENTARY SCHOOL STUDENTS

Many of you living in the Rosemary Hills, Rock Creek Forest and East Bethesda area have always had a strong interest in learning more about the Spanish Immersion program offered by Rock Creek Forest Elementary in Chevy Chase, MD. Yes, there is an application and lottery process. To learn more, click here to download a PowerPoint presentation that was recently given on this topic.

Buena suerte!

PREPARE YOUR HOME FOR THE COLD SEASON

This was sent to me from a respected home inspector...It's fall and that means it's time to get your home ready for the upcoming cold weather. Check out the tips below for ideas on how to keep your home more comfortable and efficient this winter.

Seal Drafts - Seal holes, cracks, and openings in your home to stop the flow of heat through the walls and ceiling.

Keep Your Pipes Pumping - Pay less for hot water by insulating pipes. This will also decrease the chance of pipes freezing.

Clean Those Gutters - Once the leaves fall, remove them and other debris from your home's gutters so that rain, melting snow, and ice can drain properly.

Bundle Up - If you have a tank style water heater, wrap it in an insulation blanket to prevent needless energy use.

Turn It Down - Many conventional water heaters are set too high. Try lowering the temperature setting a notch. A lower setting may be hot enough. When you leave the house, turn down your thermostat so you aren't paying for heat you don't need - or consider installing a simple programmable thermostat that will adjust the temperature automatically.

Furnace Care - A simple way to keep your home warm while cutting down on energy waste is by replacing your furnace filters or cleaning them as needed. Follow the manufacturer's instructions.

Insulate - One of the most effective ways to keep a home warm is to install adequate insulation. This is especially true in attics and crawlspaces. Insulation helps keep the home cool in summer and warm in winter.

Use Energy Star® - Energy Star qualified products help you save energy and reduce greenhouse gas emissions. The Energy Star label can be found on more than 40 different kinds of products for the home including heating and cooling equipment, electronics, lighting, and appliances.
Stay warm!

IT'S TIME TO BUY...TWO IF YOU CAN!

I have been preaching this to my buyers for some time.  It is time to buy, especially now that interest rates are at 4.5% on a 30-year fixed loan!  Here are two articles that do a better job verbalizing my opinion.

 If You Don't Buy a House Now, You're Stupid or Broke

Granted, this is an old article that ran in Business Week.  However, interest rates are even lower now, so the point is even stronger.  This article does the math for you to illustrate the point.  Every  .25% change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of 30 years.  Thus, you pay approximately $50,000 more for a $400,000 loan if the interest rates tick up .50%.  Do you get it now?

Enough of the Doom and Gloom about Homeownership 

This piece ran recently in the Wall Street Journal.  The only thing I would add is, it is not a buyer's market in sought after areas.  We are seeing multiple offers and a lack of inventory because homes are selling so quickly.  However, there are a lot of areas where you can still get GREAT deals.  If you can buy, buy two!

Welcome to my blog!

Welcome to my new website and blog. I'm very excited to launch after embarking on this adventure over a year ago. What can I say? I've been busy selling homes!

So I won't bore you with more details about me. You can go to my About page to find out I'm top 5% nationwide. ;-)

What I do want to do is encourage you to send me your questions and comments so that I can discuss with our little community. I would also like for you to check back every now and then to see what I have to say about current market conditions, specific homes, benefits (and downsides) of communities where I do a lot of work and anything else that's relevant to real estate or the communities in which we live. Basically, start to consider me as your resource for all things real estate.

Thanks for reading. I hope you find my information useful!