Student debt joins weather in slowing housing sales

Source: Jeff Clabaugh, Washington Business Journal

Sales of existing homes in February were down 0.4 percent from January, and sales were 7.1 percent lower than a year earlier, according to the National Association of Realtors. 

It blames much of the slowdown in closed sales in February on severe winter weather, but there are other factors dragging on the housing market now, including record student loan debt. 

NAR president Steve Brown says 20 percent of buyers under the age of 33, a prime group for first-time buyers, are putting off buying their first condo or house because of outstanding debt. And a NAR survey found 56 percent of younger buyers who took longer to save for a down payment identified student debt as the biggest obstacle. 

"It's clear there are other people who would like to buy a home that are not in the market because of debt issues, so we can expect a lingering impact of delayed home buying," Brown says. 

A slowdown in sales is not hurting prices, though. The median price of a closed sale of an existing home in February was up 9.1 percent from a year ago, largely because of continued tight inventory, NAR says. 



The number of home sales may be down nationwide, but sale prices are certainly going up! Current inventory in the DC metro area is as tight as anywhere in the country, meaning now is the time to get the most out of selling your home.
If you are interested in selling your home, 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 subdivisions of Rosemary Hills, Rock Creek Forest, East Bethesda and Whitehall Condominium.

Marketing Your Home for Sale: Find Some Time and Some Distance

Marketing Your Home for Sale: Find Some Time and Some Distance

Source: Jon Nunan, Home Advisor

 Many detail-oriented tasks and larger decisions will be made when you're putting your house on the market for sale. One of the most important things to remember, however, to successfully sell your own home is that there's a difference between the building as a property and the building as your home. While moving out can be emotional, being able to look at your house objectively is crucial for good house staging. Here are some tips that can help you attain that ever-beneficial objective eye, and hopefully lead to a good selling price, too.

House Staging Step 1: Thorough Cleaning
One of the most important facets of home staging is cleaning. Your house staging scouring should include the basic spring cleaning list:

• Washing walls, floors, countertops, and other surfaces.
• Cleaning blinds and curtains
• Removing clutter

You'll also want to begin to empty your house of items you don't need for daily use. Any items you want to keep but don't need, you can store at a friend or family member's place or storage.  Once you consider your property thoroughly cleaned, it is a good idea to have a friend or co-worker come in and give your house a once-over; chances are he or she will be better able to spot areas where more attention is needed.

 Remodeling to Sell Your Home Faster
Bathroom and kitchen remodels are always among the most common home improvement projects, they also tend to have a significant impact on the final value of your home. Take the time to focus on these rooms and see what can be done to make them more appealing. While completely remodeling is a bit of an extreme for simple house staging, be sure to fix any leaky faucets or appliances that don't work. Paint walls that are dirty or chipped instead of just trying to clean them. You'll also want to walk around the rest of your house and identify areas that need to be worked on.

Home Inspections for House Staging
While much of house staging is focused on appearances, there are benefits to hiring a service professional to complete a structural inspection of your home. Many home buyers will ask for this inspection anyway and this will allow you to ensure the buyer upfront that you're not hiding anything. A typical home inspection will include a general structural evaluation including:

• the foundation, roofing, gutters, and siding and windows on the exterior
• electrical, heating and air, ducts and vents, insulation, and smoke alarms on the inside
• Not Typical: asbestos, termites, and other specific issues.

 

Putting Your Home on the Market

Just before your house goes on the market, go through everything again. Remove any worn or cumbersome furniture and rearrange the furniture that remains to make it look more attractive. Shampoo your carpets and stop wearing shoes inside. Once your house staging is complete and you begin showing the house, don't let your diligence go to waste! Continue to vacuum and dust everyday.

Read more: http://www.homeadvisor.com/article.show.Marketing-Your-Home-for-Sale-Find-Some-Time-Get-Some-Distance.14128.html#ixzz2wWt4lAZm

More Americans Confident About Buying

Source: Jason P Miller, RealtyTimes.com

Last week, Fannie Mae released their January 2014 National Housing Survey results. Two categories reported all-time survey highs. 

• 52% of respondents thought it would be easy for them to get a home mortgage today. 
• 70% of respondents said they would buy if they were going to move.

Doug Duncan, senior vice president and chief economist at Fannie Mae explained what this may mean to the real estate market moving forward:

"A majority of consumers now believe that it is getting easier to get a mortgage. For the first time in the National Housing Survey's thee-and-a-half-year history, the share of respondents who said it is easy to get a mortgage surpassed the 50-percent mark. The gradual upward trend in this indicator during the last few months bodes well for the housing recovery and may be contributing to this month's increase in consumers' intention to buy rather than rent their next home. The dip in overall home price expectations, though notable, is consistent with our view of moderating home price gains this year from a robust pace last year, while positive trends in perceptions about the economy and personal finances over the next year support out view of stronger growth in the broader economy."

With home prices projected to increase in 2014 (albeit at a slower pace than they did in 2013) and with mortgage rates projected to increase, it is good news that consumers are becoming more confident in their ability to buy a home if they so desire. 

Low inventory and increasing demand to buy homes makes this a perfect market for you to sell your home. If you are interested in selling your home, 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 subdivisions of Rosemary Hills, Rock Creek Forest, East Bethesda and Whitehall Condominium. 

Tax breaks for homeowners and home sellers

Earlier this month, The Washington Post published a helpful column about several tax breaks home owners and sellers should know about.

Benny L. Kass, a Washington-based attorney, notes the reprieve these critical tax breaks received at the first of this year when Congress enacted the "fiscal cliff" legislation:

Home mortgage interest remains deductible, and the exclusion of gain up to $500,000 from the sale of a principal home is very much alive, even though many influential organizations, including the Simpson-Bowles deficit commission, strongly recommended limiting (or even eliminating) those two sacred tax breaks.

Kass then gives detailed yet understandable explanations of the tax ins and outs.

Washington Region a Seller's Market

The Washington, D.C., region “is a seller’s market,” reports Where We Live, The Washington Post’s real estate blog. “Housing prices are going up, days on the market are going down, and the scarcity of houses for sale indicates that the Washington region is a seller’s market,” wrote Kathy Orton, blogger for The Post. The assessment comes from a report by RealEstate Business Intelligence and the GMU Center for Regional Analysis on January housing data. “Yet, homeowners remain reluctant to put their homes up for sale. The number of new listings in January was the lowest for that month in 15 years,” Orton notes.

She proposed several theories to explain why so few homeowners are putting their homes on the market. “Many are underwater on their mortgages and can’t afford to sell. Others are worried about finding something to buy after they sell. And some are concerned about how the pending federal budget cuts might affect them and don’t want to undertake a large purchase because of that uncertainty.” The Washington region’s median sales price continues to increase compared to last year, she points out. “It climbed to $343,200, which was up 10.7 percent from January 2012, the fourth consecutive month it has shown a double-digit increase. However, it was down 4.4 percent from December, which is typical for this time of year.”  The median price for townhomes rose 13.3 percent over last year, condos climbed 13 percent, and single-family houses rose 3.8 percent.

Orton breaks down the numbers:

Sales of single-family houses had the biggest gain, up 8.8 percent. Sales of condos rose 5.4 percent, while townhouses were up 3.9 percent. This is the first time since March that single-family houses led the other two property types.
Active listings fell by more than 4,000 from January 2012 to 6,049. Townhouses are in the shortest supply, accounting for only 16.2 percent of listings. This is the lowest on record for this property type in the region dating back to 1997. There were 4,004 new listings in January, down 4.2 percent year-over-year.

She adds that the median of the number of days properties are on the market has fallen to 32 days, 25 days fewer than January 2012. An inventory shortage is driving this number down.
As always, please contact me, Mynor Herrera, for expert advice on everything real estate. I am licensed in D.C., Md., and Va., and I specialize in Bethesda and Chevy Chase, as well as the subdivisions of Rosemary Hills, Rock Creek Forest, East Bethesda and Whitehall Condominium.

Tactics for a Successful Home Staging

After months and months of pondering about the pros and cons of selling your home, you have finally decided to put it on the market. Huge weight off your shoulders? Hardly. This is the point where you actually get in the game. Stepping into the labyrinth of our current real estate market needs strategic approach to secure a sale --- or your house will be sitting out in the open for months, or even years.

The best way to put up a good fight: a well-priced, beautifully-staged home.

A lot of potential home-sellers begin feeling adamant or at certain times ambivalent when it’s time to stage their homes. Understandable --- staging can become extremely stressful. Your house can become a sitting duck for criticisms (good and bad) so a great working relationship with your trusty agent is definitely a big plus at this point. An open communication with someone who understands real estate more than anyone, who knows what the place needs to get it ready for listing, will make things a lot easier.

So now that you’ve reach the point of no return, leave your emotions at bay and start getting technical --- and hardcore. A Trulia article shares 7 tactics to win the game.

• Conduct a recon mission. Jargon, that’s right. But it simply means scope out the competition. The moment the thought of selling comes into mind, go out and visit other homes being sold in the area during their Open Houses. That way you’ll be able to gather ideas about what potential buyers look for in a quality home.

• Create your plan of attack. Home-selling should be dealt with a scientific approach. Write down everything, be systematic. Comprehensively plan out your steps.

• Deploy the stealth tactic of demolition. It always seems like a great idea to buy new things for a more polished home pre-staging but with a very limited budget, bear in mind that the most powerful staging techniques are the basics: removing and getting those unsightly features out.

• Pre-pack. Taking the pre-packing approach harnesses the power of momentum toward the end of putting everything but the items you actually need to live your daily life in boxes and putting those boxes in storage or - neatly - in the garage, so they’re ready to go when your home sells.

• Wash, rinse and repeat. The kind of cleaning we are talking about is not the friends-are-coming-over type. No, no. You will be covering the entire home, corners, surfaces – even the places you haven’t thought existed. To achieve efficiency, clean from the outside in. It would also be a wise idea to hire a professional, a local cleaning crew for example.

• Fixate on trims and details. The scope of the whole homestaging process can be overwhelming so you will naturally think of the bigger things to do: house painting, floor stripping, moving furniture etc. Be aware that these things are just mere distractions that will knock you off your focus. Think of DETAILS. Concentrating on these little details will help you save both money and energy. 

One pattern you might note on your recon mission is that the homes that show as the most pristine, the most polished, are often the ones which were prepared with the most attention to detail. On the outside of the house, this involves making sure details like mailboxes, window shutters, eaves and even shrubbery are meticulously painted, trimmed and even replaced. Adding attractive flowers, door kick plates and knockers and house numbers are some inexpensive ways to add visual detail and a polished, cared-for look to an otherwise plain property.  Inside, window trims, door casings, moldings and baseboards have the same effect, as does ensuring that drawers and doors operate smoothly and that walls are scuff mark-free.

• Be brutally honest with yourself. After all the hard work, it’s time for evaluation. This may seem to look like the easiest of all the tactics but NO, it is not. This entails a high level of self-awareness. Have you done everything right? What else can you do? Go visit some more Open Houses and see for yourself. You think you do not have the technical observational skills, talk to your agent.

Do you want to work with a Realtor who provides quality home staging tips to his clients to help them save time, energy and money? 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 subdivisions of Rosemary Hills, Rock Creek Forest, East Bethesda and Whitehall Condominium.

10 tips for a smooth home sale

Putting your house out in the market can be exasperating. The entire process needs your time and energy for a good result – but almost always, when done the right way, the end result would more than satisfy you.

It is very important to surround yourself with experts who know the ins and outs of the business. They will guide you on how to effortlessly go through the entire process of getting yourself a buyer and achieving a smooth transaction.

Choose the right Real Estate professional

               If you are planning to sell your home 

              choose a Realtor who  is knowledgeable 

              about the current market situation and has

              the credentials to prove it. Your Realtor is  

              going to be your advocate and  

              represents your best interest. He must 

              be trustworthy and upfront in all your

              transactions.

Understand the process

Meet with your broker, lay your cards on the table. Keep on asking, a great Realtor won’t mind questions. Voice out your realistic expectations and have him walk you through the entire process from start to finish.

Choose a good attorney

Choosing an experienced, local real estate attorney is crucial. Ask your broker for recommendations. A good lawyer  can help you save time and energy.

Prepare your home to go on the market

The golden rule is “Less is more.” Walk systematically through your home with your broker to decide what needs to be done to make it ready.

Market your home

Your broker needs to be using print and Web advertising, social media, YouTube videos, individual domain sites, blogs, key words, etc., to reach today's buyer who is sophisticated, knowledgeable, and online.

Pricing is everything

If the price is right, a bidding war can happen. A realistically priced house obviously sells more quickly. Always remember that buyers are value-conscious, they always do research before they embark on this equally life-changing journey.

Host open houses

Making the effort to host regular open houses is important. Your broker should be available and excited about the opportunity.

Negotiate an offer

With our current market situation, offers usually start low. Don’t fret, it’s perfectly normal. Keep your emotions at bay, you never know where the offer will go so do not be afraid of countering. Working through the details in a calm manner always achieves the best results.

Deal with the inspection

Understanding the importance of the inspection is the first step to maintaining the emotion-free tone necessary during negotiations.

Move on

Your house is finally sold. It’s time to organize and move things out of the house. Your broker will disclose to you the local laws regarding smoke/carbon dioxide inspections, utility transfer etc. Now you can celebrate your successful sale and move forward to even greater things.  

 

Do you want to work with a Realtor who never fails to keep his clients updated about Real Estate trends?  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 subdivisions of Rosemary Hills, Rock Creek Forest, East Bethesda and Whitehall Condominium.

How do we know it’s a good time to sell?

No matter how difficult it is in the real estate market now, homeowners and realtors can still find their silver lining. And it’s not imaginary. According to Dian Hymer, all we need to do is read the signs that would tell us “it’s about time to sell a home.” In her article, we can learn that our real estate market has shifted its predictability.

Gone are the days when seasons or specific months of the year were the solid indicators of the best time to sell. Years ago, real estate opportunities during spring months are expectedly high compared to dark wintery months – but that’s not the case anymore. Weather patterns nowadays are as volatile as our economy. 

It is hard for sellers to prepare their houses for the market when there is non-stop raining and bad weather, so as much as we would want to take these natural occurrences which we cannot control as deterrent factors, we simply can’t. The weather does have an effect on home-selling.

Last year, real estate had its meltdown when both natural and economic disasters affected the selling rates immensely. When a big quake hit Japan, it caused unimaginable effects on almost all industries economically – Greece on the verge of bankruptcy and European Union’s future in question. 

Headlines about these economy-affecting occurrences have lowered consumer-confidence. They rely on news and economic development to jump in on a huge decision to buy a house, which is a major responsibility.

To state the obvious, it’s a great time to sell when the economic news are mild, interest rates become low, consumers’ confidence are in the upswing and the law of supply and demand is in the positive slope. It is best to start selling competitively when there are increased demands for home in your local niche as to the supply of homes for sale.

These factors can certainly affect the real estate market but when really is the best time to sell? When your instincts tell you it’s the RIGHT time to sell. The decision always has to come from you despite the odds.

As a top Realtor, I have more ways than one in determining when is the best time to sell your home. I can help you deal and convert these factors into something beneficial. If you have questions,  feel free to 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 Keep the Power On in Bethesda

Anyone who lives in Bethesda, Chevy Chase or the general DC metro area has had their power knocked out by a storm. Sometimes it’s only gone for minutes, but in extreme situations it can be hours or days. If you have a critical need to keep your power on at all times, consider a standby generator. This is a stand-alone unit that sits outside your house and is run by an alternative power source such as propane or natural gas. If the electricity fails, the unit is signaled to turn on even if you’re not home.

These units are pricey, from $5,000 to $40,000, but they do recoup about 48 percent of their cost when you sell. What follows is some information from Houselogic.com on how to assess if this is really what you need.

Buying a standby generator is like buying insurance—you really can’t tell when or if you’ll need it. Some critical decision factors are:

·         Your area has frequent, prolonged power losses.

·         You and/or your family rely on medical equipment that needs electricity.

·         You work at home and need to stay connected to your office.

If you live where it’s hot, a generator ensures that children and the elderly are protected from the heat. This obviously works in reverse in cold areas and can also help prevent pipes from freezing and flooding the house, which can be a lot more expensive than the price of the generator.

Once you’ve decided this is for you, evaluate your power requirements. Home wattage use varies, and the more power a generator will supply the more it costs. Then decide what you want or need powered in an emergency. It can be as little as the AC, the fridge, and some lights, to as much as the whole house. A 3,000 square-foot house could need 25 to 30 kilowatts of power. Just running a few things requires as little as 17kW. The bigger the need, the larger the generator required.

Whenever possible, have your generator supplier set up your service, as they’re most familiar with the product. Otherwise, you need a plumber to connect the fuel source and an electrician to connect to your home’s power supply. Make sure anyone you use is licensed and certified for your unit, that they know the local codes regarding location and fuel storage and whether a permit is needed.

Along with the cost of the generator and its installation, remember to budget for the type of fuel it will use. In addition, will you need to plumb for a gas line or perhaps purchase and install a propane tank? It’s a good idea to talk with your plumber or utility company before you buy the generator to ensure you can get an affordable alternative power source in your area.

Once set up, you can relax and know that you’ll have power despite Mother Nature’s whims, and that you’ve also added value to your home.

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 & Whitehall Condominium.

How to Weather a Short Sale

What is a short sale? It’s when homeowners in a bad financial situation sell their home for less than the amount due on the mortgage, and all proceeds revert to the lender. This is sometimes referred to as being underwater. And while short sales can be an appealing alternative to a foreclosure, it’s not necessarily an easier process. If you live in Chevy Chase, Rosemary Hills, or any other neighborhood and are contemplating a short sale, here are some things you need to know from the AOL Real Estate website.

Consult the Experts - If you’re considering a short-sell, talk to three crucial people: a CPA, a real estate attorney, and a qualified real estate agent. They will know your state’s laws regarding short sales and foreclosures and can help you determine if a foreclosure would be better than a short sale in your specific situation.

Use a Qualified Agent - Many agents will say they are short-sale experts when they have no real field experience. To find a qualified agent, look for the title Certified Distressed Property Expert (CDPE) or National Association of Realtors Short Sale Specialist. Then ask how many short sale listings they currently have and request names and phone numbers of their last five short-sale clients.

Verify Your Home’s Value - You can do this yourself using various on-line tools, you can ask your real estate agent to give you an estimate, or you can use an independent appraiser. Use the Appraisal Institute website to find someone in your area. Know that your lender will want the house priced as close as possible to market value.

List Appropriately - This is a key step. Start out listing your home at slightly above market value and then lower the price at pre-determined intervals until you get an offer. This will show your lender that you’re trying to get them the most for your home. It’s a balancing act of enticing buyers while satisfying a lender’s profit needs.

Make Your Package - This includes, but is not limited to, a hardship letter, tax returns from the past two years, and last two pay stubs. The entire package could be 60 to 80 pages. Be sure all required documents are there or the bank could put off your short sale.

Be Patient - It can take 30 to 45 days for the lender to get your package, input your information, and assign a negotiator to the sale. You could actually wait as long as three months for this.

Negotiate - The lender’s negotiator will offer you an appraisal or broker price option (BPO) of your home. If a buyer’s offer is within five percent of the BPO and the lender has all your information, the short sale will be approved. If the offer is too low, the lender might come back with a higher sale price. Negotiations will follow, but that’s just how it’s done.

The entire short sale process can take from six weeks to a year or longer, but don’t get discouraged. If you have a good team behind you, you’ll end up making the sale and will be satisfied with the results.

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 & Whitehall Condominium.