2012 May Be a Great Year for Real Estate?

Capital Economics has shown a good deal of positivity by saying they expect housing crisis to end this year and one of the vital reasons: loosening credit. 

The firm states that in order to qualify for a loan, the borrower should attain an average credit score of at least 700, a bit higher by pre-crisis standards but has been consistent with what was required a year ago.

It may come as a surprise but banks are now eager to lend up to 3.5 times the borrower’s earnings compared to a staggering low of 3.2 times during the crisis. It’s an affirmation of loosening of credit availability with our current situation.

Loan-to-valueratios (LTV) are being loosened, as Capital Economics reiterates as “the clearest sign yet of an improvement in mortgage credit conditions.”

From 74% in mid-2010, banks bumped up to lending 82% LTV.

This should not be taken as an upfront silver lining though. Loosening of credit conditions does not mean lenient approvals as some potential homebuyers are struggling with credit requirements. Capital Economics came out with a figure, in November, 8% of contract fallouts were due to potential buyers not being able to qualify for a loan.

With everything laid out on the table, Capital Economics see this whole situation’s significance is not enough to pull actual house price gains up a notch and more so, difficulties from the euro-zone may potentially be a threat to future credit availability. 

Any thoughts about the improved credit conditions? If you have questions on how how this current improvement can help you in buying your dream home, call me, Mynor Herrera, I can also give you expert help buying or selling in the DC, MD, & VA areas! I also specialize in Bethesda and Chevy Chase, as well as the sub-divisions of Rosemary Hills, Rock Creek Forest, East Bethesda, and Whitehall Condominium.

Work with the BEST Real Estate team!

Keller Williams Capital Properties is currently looking for driven individuals who are qualified for the two open positions being filled in.  It’s an amazing opportunity to work in a dynamic environment with people who value teamwork, integrity and service among others.  Any of you or people you know who might be interested to work as:

Busy real estate office seeking Financial/Operations Officer (MCA position) in DC

Candidates must have very strong interpersonal and computer skills, be very detailed and action oriented, and able to work effectively under strict deadlines in a fast paced environment.  Training will be provided but candidates must have a background in accounting / bookkeeping and office management.

Job responsibilities cover three specific areas: 

1. Operations and Administration - Responsibilities include: maintaining personal and working relationship with staff, associates and vendors; purchasing supplies and equipment; ensuring professional appearance of physical facilities; communications distribution; coordinating maintenance of office equipment; overseeing and working with computer hardware, software and training specialists; delegation of tasks to staff; managing coverage of reception area.
2. Accounting - Responsibilities include: full office accounting including PNL reconciliation, deposits, vendor invoicing , budgetary items and accounts, computerized bookkeeping, payroll, distribution of funds, and maintaining all accounting files; maintenance of general ledger files, associate files, employee files, and contract files;  monthly reporting to International affiliate within strict deadlines.
3. Support - Responsibilities include: understanding, demonstrating and promoting company culture; assisting with new agent / employee orientation, training and retention; providing computer services as needed; providing support and feedback in all matters affecting the productivity and operation of the office; gathering materials and distributing to appropriate parties; calculating and reporting for local, regional and international awards; attendance at National Events outside of the area once a year.

CLICK HERE if you wish to apply.

 

Busy real estate brokerage seeking Information Technology Associate 

Responsible for directing all Tier 1 IT related functions for the organization.

Primary Duties  

• Provide first level support for all technology needs of the organization
• Provide support for VoIP phone system - add new users, administer system updates
• Maintain backup files, both on and off-site - server based sites
• Ensure that all PC's are updated and properly protected from virus and malware intrusions
• Maintain and update Intranet 
• Provide support for company shared site
• Coordinate new equipment purchases based on request from department heads
• Set up of new workstations - install printers, map network drives
• Set up of new users email and add to server - sever based sites
• Connect staff and agent computers to WiFi and printers
• Initiate maintenance and service request for all leased copier/printers
• Manage the maintenance and upgrade of computer operating systems
• Provide support to company Tech Coordinators to establish and maintain tech related classes for all company associates including website set up  

Required Skills and Knowledge

• Broad knowledge of Windows Operating Systems including Small Business Server
• Basic knowledge of VOIP and PBX phone systems
• Proficient analytical and problem solving skills
• Ability to manage multiple tasks and time proficiently
• Results driven
• Ability to excel under pressure
• Sharp communication skills (written and verbal)
• Effective organizational skills 

CLICK HERE if you wish to apply.

Keller Williams has one of the best working environments! If you have any questions regarding the job opening, call me, Mynor Herrera, I can also give you expert help buying or selling in the DC, MD, & VA areas! I also specialize in Bethesda and Chevy Chase, as well as the sub-divisions of Rosemary Hills, Rock Creek Forest, East Bethesda, and Whitehall Condominium.

Trends for Bathroom Remodeling this 2012

Your bathroom can become your entertainment room annex this 2012! Here are the trends that will make your bathroom experience more fun!

Trend #1 CONSERVE WATER.

These days, everything seems to be scarce,  water supply included. As the country’s water reserves are stressed, the government will regulate each home’s water consumption. As a result, these regulations will greatly affect your remodeling plans structurally.

A lower flush-per-gallon rating is inevitably one being considered. You can choose any dual-flush or low flow toilets available in the market that fits your style.

Your current shower system which delivers more water with pressure will be changed to the ones utilizing the Venturi Principle – which adds air to the mix to maintain the strong pressure, ideally conserving more water. Shower heads that are in right now are Rain Shower models which are sold in every price range, from the affordable ones to luxurious.

Trend #2 TECHNOLOGY.

You will always have that great showering experience. Customize your shower system, right down from the water pressure and temperature, volume and even massage setting. The price ranges from the simple controllers ($300) to more luxurious sets (up to $3500) and these systems will allow you to digitally customize your preferred settings.

You can start docking your iPhones, iPods or MP3 players directly with your speaker-equipped toilets so you can continuously enjoy your playlists the first thing you wake up in the morning until you prepare for work, no bathroom breaks. Kohler Numi is what’s popular out there with the price ranging from $4000 to $6000 but look for more competitive models in the market.

Weather forecasts, news updates that you usually miss while prepping before work? Not anymore. Your medicine cabinets can have television screens integrated into them so you can always get your early morning news.

Trend #3 SAFETY AND CONVENIENCE.

A bathroom looking so stylish does not have to compromise convenience or safety. Here are the tips on how to get the best of both worlds.

Linear drains are taking the market as of the moment as they are ideal in creating safe, zero-threshold shower designs.  Unlike the more traditional, round drains that are usually mounted near the front end, these long, straight drains minimize the slope of the shower floor as they can be installed in different locations. You’ll spend about $500-900 for these sleeker designs.

This 2012, floor and wall designs will lean towards faux-wood, linen and uniquely-textured looks. The texture will add aesthetic attitude to the place and functional advantage for better traction of wet feet, slippery floors being the usual culprit to bathroom injuries.

Goldberg, Jamie;  houselogic.com, Jan 9th 

Do you want to know the best ways to remodel you bathroom cost-effectively?  Call me, Mynor Herrera, I can also give you expert help buying or selling in the DC, MD, & VA areas! I also specialize in Bethesda and Chevy Chase, as well as the sub-divisions of Rosemary Hills, Rock Creek Forest, East Bethesda, and Whitehall Condominium.

Was the Bethesda-Chevy Chase middle-school site selection rushed?

 

The critics have been expressing their concerns that the middle-school site selection was rather rash and the people behind it did not see through the complete cost and impact analysis. 

It was only last February 22 that the committee voted to recommend Rock Creek Hills Local Park as the building site of the new middle school, with North Chevy Chase Local Park as an alternative.

The final report included recommendations from the committee of residents, parks, school officials and the minority reports of the committee members that did not approve of the decision.

Brook Farquhar, supervisor for park and trail planning for the county parks department and one of the opposing members, stated in her report that costs were not thoroughly evaluated in the process and misinformation may have prejudiced the votes of committee members.

She also added that sites should have been analyzed more thoroughly to allow for consistent comparisons, and the cost of replacing lost parkland and facilities was not analyzed.

Sandra van Bochove, a representative of Rock Creek Hills Citizens’ Association, voiced out that there has been an underestimation of over $18M for the entire cost of building the school.

According to John Tierney, the construction manager hired by the association to oversee the project, overall cost would be $64.5M. A feasibility study done in 2011 by Montgomery County Public Schools only had $46.5M estimation.

The new middle school is the answer to overcrowding at Westland, the lone middle school in the area. All the sixth-graders at Chevy Chase and North Chevy Chase elementary schools will also be reassigned to this new school. MCPS stated that the new school must be operational by 2017.

Community Planner Fred Boyd indicated in his minority report that the site selection committee did not delineate the consequences on Westland or the delay of site selection beyond 2017. He also added that time constraint turned the committee towards parks as opposed to getting better public and private sites.

On the approving side, director of long-planning for the school system Bruce Crispell promoted the selection process and added the MCPS does value the parks and don’t consider them vacant land.

Potential loss facilities at Rock Creek Hills Park include a playground, two soccer fields, two tennis courts and woodland with the Rock Hills Citizens’ Association being more critical of losing the two soccer fields.

Farquhar’s report also hinted that athletic field users in Bethesda are frequently turned down for field time as the area has the lowest level of park and recreation services per capita in the whole county.

She also recommended that private sites should be kept on the table and while she principally dissent the plan of building on parkland, she said that using the old Lynbrook school site would result to a less impact on the recreational system in general. It would require the high school sports teams to relocate to another field on weekdays.

Teresa Murray, a Parents’ Council representative, pointed out about the new school’s effect on diversity. If the new middle school were built in Rock Creek, students coming from more affluent, predominantly white portions would most likely be assigned to Westland while those coming from more racially and economically diverse areas would be assigned to the new school.

Is building the new middle school in Rock Hills a good idea?

This decision would surely change our lives as residents of Rock Creek, any thoughts? Call me, Mynor Herrera, I can also give you expert help buying or selling in the DC, MD, & VA areas! I also specialize in Bethesda and Chevy Chase, as well as the sub-divisions of Rosemary Hills, Rock Creek Forest, East Bethesda, and Whitehall Condominium.

Bringing Paris to Rosemary Hills Primary School Silent Auction!

Experience Paris for a night, buy your RHPS Auction Tickets NOW!

Take pleasure in this year’s “Paris in the Park” themed auction which will take place this Friday, March 23^rd at the Audubon Naturalist Society’s Woodend Sanctuary from 7 – 11PM. 

Heavenly French cuisine in mind? Feast on these scrumptious menu options: stuffed crepes, caramelized onion and bacon feuillette, ratatouille, spiral sliced bourbon ham and brie en croute. Bon appétit!

Cap your Parisian night with a glass of old world French wine and relish the moment to connect with the RHPS community while bidding for the items that interest you for a good cause, raising funds for our kids and our school.

Auction tickets will be available at the door for $75 which will all be worthy as buying a ticket for a night in the City of Lights!

Do you have any questions with regards to the auction? I am going to answer your questions both as a proud parent and a dedicated realtor. Call me, Mynor Herrera, I can also give you expert help buying or selling in the DC, MD, & VA areas! I also specialize in Bethesda and Chevy Chase, as well as the sub-divisions of Rosemary Hills, Rock Creek Forest, East Bethesda, and Whitehall Condominium.

How to Deduct Your Mortgage Interest & Equity Loan Costs Read

Deducting mortgage interest is a great tax benefit that can make home ownership more affordable. Your first mortgage isn’t the only loan that qualifies, either. In many cases, you can also deduct interest on home equity loans, second mortgages, and home equity lines of credit, or HELOCs.

If you want to deduct all of your mortgage interest, there are limits on both how much money you can borrow and on what you do with the money you get. You also need to itemize your return to reap the benefits of these deductions. Calculations can be complicated, so consult a tax adviser.

Know your loan limits  

A good place to check out what you can deduct before you borrow is the chart on page 3 of IRS Publication 936. It’ll walk you through the requirements you must meet to deduct all of your home loan interest. It’s an hour well spent.

The first hurdle you’ll run into is the total amount of your loan or loans. In general, individuals and couples filing jointly can deduct the interest on up to $1 million ($500,000 if you’re married and filing separately) in combined home loans, as long as the money was used for acquisition costs, that is the cost to buy, build, or substantially improve a home. Any interest paid on loan amounts above the $1 million threshold isn’t deductible.

The same $1 million limit applies whether you have one home or two. Buying a vacation home doesn’t double your loan limits. And two homes is the max; you can’t deduct a mortgage for a third home. If you have a mortgage you took out before Oct. 13, 1987, you have fewer restrictions on claiming a full deduction. The calculations for “grandfathered debt” can get complex, so get help from a tax professional or refer to IRS Publication 936.

Whatever you do, don’t forget that you can also deduct the points and fees associated with a first or second mortgage when you initially buy your home. If you refinance the same house, you have to deduct those costs over the entire term of the loan. If you refinance again, you can deduct all the costs from the earlier refi in the year you take out the new loan.

Spend loan proceeds wisely
The other limitation on how much you can borrow and still get your deduction comes into play when you take out a home equity loan or HELOC that you don’t use to buy, build, or improve your home. In that case, you can deduct the interest you pay only on the first $100,000 ($50,000 if married filing separately). This loan limit also applies in a so-called cash-out refi, in which you refinance and take out part of the equity you’ve built up as cash.

That means if you decide to take out a $115,000 home equity loan to buy that Porsche, you can deduct the interest on the first $100,000 but not on the $15,000 that exceeds the limit. Use the same $115,000 to add a new bedroom, however, and the full amount is allowable under the $1 million cap. Keep in mind, though, that the $115,000 gets added into the pot of whatever else you owe on your other home loans. In many cases, points and loan origination costs for HELOCs are deductible.

Consider this simplified scenario: You borrow $250,000 against your home at 8% interest. That means you’ll pay $20,000 in interest the first year. Spend the $250,000 on home improvements, and all of the interest is deductible. Spend $150,000 on improvements and $100,000 on your kids’ college tuition, and all the interest is still deductible. But spend $100,000 on improvements and $150,000 on tuition, and the improvement outlays are deductible, though $50,000 of the tuition expense isn’t. That’ll cost you $4,000 in interest deductions. Preserve the $4,000 deduction by coming up with the extra money for tuition from another source, perhaps a low-interest student loan or by borrowing from a retirement plan. For someone in a 25% bracket, a $4,000 deduction lowers taxes by $1,000, plus applicable state income taxes.

Beware the dreaded AMT
Even if you’ve followed all the loan limit rules, you can still get stuck paying tax on mortgage interest. How come? It’s all thanks to the Alternative Minimum Tax. Congress created the AMT, which limits or eliminates many deductions, as a way to keep the wealthy from dodging their fair share of taxes.

Calculating the AMT can be complex, but if you make more than $75,000 and have several kids or other deductions, you might well be subject to it. Problem is, if you fall into the AMT group, you may not be able to deduct interest on a home equity loan, even if the loan falls within the $1 million/$100,000 limit. If you’re subject to the AMT and borrow money against the value of your home, you’ll have to use it to buy, build, or improve your place, or you may not have a chance to deduct the interest.

This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction. Source: houselogic.com

Would you like to work with a Realtor who offers valuable information and provides the highest level of customer service to his clients? Call me, Mynor Herrera, today for expert help buying or selling in the DC, MD, & VA areas! I also specialize in Bethesda and Chevy Chase, as well as the sub-divisions of Rosemary Hills, Rock Creek Forest, East Bethesda, and Whitehall Condominium.

Should Buyers Take the Plunge this Spring?

Pending sales are up, and experts say the economy is stronger. With mortgage rates still pretty attractive, it might be time for some fence-sitters to become home buyers.

Just as the spring selling season is nearing, there are some encouraging signs that it might be time for buyers to dip their toes in the housing pool again. Pending sales are up, inventory is down and some economists are predicting an end to the housing crash this year. What does this mean for home shoppers? How should it shape their strategy?

What should buyers expect this spring?
 

Falling home prices have made most buyers understandably nervous about pulling the trigger on a purchase. Why buy before the market hits bottom, right?
 

The latest numbers showed that the housing market isn't quite there: S&P/Case-Shiller's 20-City Composite Home Price Index fell 3.9% in the 12 months ending in December, and price declines escalated at the end of the year. The bad news was widespread, with 18 of 20 metros posting declines. Miami and Phoenix were the only markets to pick up at the end of the year, and Detroit was the only city to post an annual uptick.

So why should buyers get off the fence? The good news is there's really not much further to fall, says economist Paul Dales of Capital Economics. Case-Shiller's report showed prices dropping faster at a time when housing prices typically do decline. Prices continued to drop at a slightly faster rate at the end of the year, but Dales says they won't be dropping much longer. "There are compelling reasons to believe that the end of the housing crash is finally in sight," Dales says.

That's because housing prices — now back at 2002 levels (2000 if you adjust for inflation) — are now below "fair value," or what market observers consider justified relative to incomes and market demand. Home prices are 10% below rents and 24% below disposable per-capita income.

The economy is stronger, banks are more willing to lend and mortgage rates are still hovering near historic lows. And there are already signs that demand is coming back. Contracts to purchase existing homes neared a two-year high in January, rivaling the period before the expiration of the first-time homebuyer tax credit, according to the National Association of Realtors. Pending sales increased 2% in January over the previous month and 8% over January 2011. That figure also suggests that home sales will have increased again in February after ticking up in January.

Signs also indicate that a fair amount of excess inventory of housing has been wrung out of the market in the past year, which is good news for sellers but could mean buyers have a little less to choose from and a little less authority.

The inventory of existing homes for sale declined 21% in the year ending in January, bringing the supply to 6.1 months, the lowest level since April 2006. Of course, analysts say this not only was a matter of buyers snapping up foreclosure bargains but also had a lot to do with people taking homes off the market because of sluggish demand and falling prices.

More houses should hit the market in spring, analysts say, including a large number of bank-owned, or REO, properties that were held up in processing last year. With these distressed properties padding supply, prices should remain low for buyers this season.

Housing market snapshot 

Existing-home sales ticked up 0.7% to 4.57 million in January from 4.54 million during the same period a year earlier, according to the NAR. The sales represented a 4.3% increase from the 4.38 million homes sold in December, which is typically a slower month.

NAR chief economist Lawrence Yun says buyers are finally responding to favorable market conditions, including record-low mortgage rates and bargain home prices. The U.S. median existing-home price declined 2% from January 2011 to $154,700, as distressed properties continued to figure prominently, accounting for 35% of all sales.

Do you have a question about buying, or a suggestion for a future topic? Contact me, Mynor Herrera, for expert advise on buying or selling in the DC, MD & VA areas. I also specialize in Bethesda and Chevy Chase, as well as the subdivisions on Rosemary Hills, Rock Creek Forest, East Bethesda and Whitehall Condominium.

Source: MSN Real Estate 

Kitchen Remodeling: What’s IN this 2012?

We all want to make our kitchens look like a Chef’s haven but the underlying costs of overhauling one of the most expensive sections of our home seems to hold us back. Here are the top options that would keep our expenses at bay.

Trend #1 MAKE A STEP BACK.

It’s nice to buy new, expensive things but with our current economy it’s nicer to fix what you already have. Take care of your current appliances, you’ll be amazed at how good safekeeping and maintenance can save you a lot of money. Instead of deciding on a new purchase, a presently working model still bakes the cake and obviously keeps you from hemorrhaging money from unnecessary buys.

Your cabinetry is an integral part of your kitchen, almost always these things were made as an immovable part of it so the best way to save is to work your way around it. Always choose functionality over design, invest on practical stuffs like roll-out drawers which you actually use on a daily basis rather than decorations which, in time, get outdated.


Trend #2 LEAN ON SIMPLER, WARMER STYLES.

Be a minimalist. Choose monochromes of dark or Earthy palettes over fussy hues. These designs present timeless taste and value-conscious style.

The trend of warmer styles will go on for years, darker hues will be in for a long time that will feature natural Earthy and stained woods. Walnut, in particular, is growing in steadily as one of the more popular choices.

If what you have in mind is contemporary, laminate countertops will continually surge in popularity for the kitchen aficionados. In the recent years, we have seen great improvement in laminate finishes especially those European-inspired designs. It is apparent that exotic kitchen furniture is out of most homeowner’s reach because of their price range; glossy, laminate-versions are the answer and can be had for much lower prices.


Trend #3 EMBRACE TECHNOLOGY.

Technology is everywhere. Soon enough your regular kitchen appliances will be equipped with USB sports so you can digitally display family photos, reminders or your kids’ artworks.

You may also have the chance to operate appliances with built-in cooktops which can remember your cooking temperatures while you move around your kitchen doing other things, very time-efficient.

Standard cabinet kitchen doors are fast becoming outdated in your techno-filled kitchen. You’ll opt for remote controlled cabinets which you can control with one-light touch. You’ll start paying 40-70% more for electronically-controlled cabinets than the standard ones.

Smartphones and tablets will soon become your kitchen assistants. You can control your appliances using them anywhere you have a hotspot Wi-Fi connection. You can also shop online from major manufacturers.

Regulars lights will soon be out and LEDs will be dominating your kitchen space. You will start opting for LEDs for your recessed light, under-cabinet task and color-changing accent lightings.

What will also come out for your purchase are affordable microwaves with convection and steam control that give owners with smaller kitchen spaces a more high-end cooking experience.

Are you ready to make your kitchens look hip?

If you are interested to work with a realtor who knows a great deal about kitchen remodeling, its trends and current market situation, contact me, Mynor Herrera, today for expert help buying or selling in the DC, MD, & VA areas! I also specialize in Bethesda and Chevy Chase, as well as the sub-divisions of Rosemary Hills, Rock Creek Forest, East Bethesda, and Whitehall Condominium.