Buyers! Attention!!!!!!!!

Do you realize this is a buyers market! Despite what the medias been saying, this is a great time to buy. Here's why:

• You need a place to live-why put money every month into your landlords pocket when your mortgage payment could actually be building equity in the place you live! Let's use a hypothetical example: Let's say your mortgage payment is $1,300 a month, $900 of that goes towards interest, $200 towards taxes, $50 towards insurance (by the way you have to have insurance as a renter anyway) and $150 a month goes towards lowering your balance owed! That's called equity. When you go to sell you could actually get something back-the equity! In one year you could have over $1800 in equity!
• When you own a home you get to write off on your taxes things like interest & real estate taxes you paid on the loan for the year (payment is $1,300 a month-$900 of it goes towards interest & $200 towards real estate taxes-that's $14,400 a year you may get to write off!) (you're kidding!). When you rent, you pay $1,300 a month and you get no tax write off! All that money is going to the landlords mortgage and guess what!? He's writing your money off on his taxes!
• Take advantage of the first time home buyer programs that are out there! Who knows how long they'll be available! There's programs with incredible interest rates-lower than what you hear about on the news (they're only for 1st time home buyers), with fixed interest rates for 30, 35 and 40 year mortgages! Plus, there's even programs (that if you qualify for them) that may even give you closing help!
• Sellers are offering money!!! Yes, they want to sell, now! And they'll pay you to buy their house! Wow! Depending on the loan program you may be able to receive as much as 6% (most sellers will be more than happy to do 3%) of the sales price in closing help! On a $300,000 house that's $18,000!
• Sellers are willing to negotiate! If you have some or all of the money-don't ask for the closing help, or only ask for a portion and guess what-there's a good chance the seller will take less than asking price! But be real-if the seller has the home priced properly, take that into consideration. If they've just dropped $25,000, and the numbers are showing they are priced right, there's a good chance they may not be as negotiable as you want them to be.

And remember-the media is eating up this stuff. According to them, it's raining all over the country! It's not (not at the moment-at least outside my window)! They're so busy talking about all the doom and gloom (just like the stock market), that they're not going to let you know it's time to buy until it's too late (and guess what we're going to hear then? You should've bought! Prices are going up- at record paces! Is it to late for generation x to buy a house? What does a buyer do now-interest rates are high and all the programs are gone!?)-and at that point all these wonderful programs, and sellers help, will be gone!

So what are you waiting for! Pick up the phone, and get started today!

So I'm Buying A House!!:)
A lot of buyers ask-'Why do I need an agent, there are now internet companies out there I can use?'

Here's what you lose out on. An agent becomes a part of your family. Your agent will learn your wants and needs- you will see houses together, you will share personal information together, and most importantly a relationship will form all of this bringing you to finding the perfect house.

You are about to make one of the largest purchases you've ever made. You are buying not just a place to live, but an investment. You need a specialist to guide you and ensure you're doing what's right for your needs and for future selling. It's like if you had a bad tooth, you wouldn't pull it yourself or have someone do it over the internet, you would go to a dentist. If you had an accounting question, would you look up someone on the internet or would you go to the accountant you've been using who knows your current financial status? If your car broke down, would you find someone who gave you the instructions over the phone to fix it?

A traditional agent will point out the pros and cons of your purchase. Things to look for structurally, that you might not think of such as that small spot on that ceiling (is that a water stain). That hairline crack in the foundation (is that structural). If you go see a house using a 'internet agent' they're not going to see what you're seeing, they don't even know the neighborhood-they're sitting in an office in another state. Will they point out things like a 2 bedroom townhome may be harder to sell in the future than a 3 bedroom, but maybe in this neighborhood it's the norm. That the location at another house may be better than this one, based on that 4 lane highway they're going to install in 3 years. Do they know what a realistic price for the house is, based on the one that sold last week-they probably didn't even see it!

A tradional Agent will give you access to the best websites specific to your area. They can get you setup with automatic e-mails (which are fabulous) with interior photos, addresses, room dimensions and more! They go with you to see the houses. They know the neighborhood, the local market, the prices, etc.

You may think your going to save money using the new 'internet agents'. But did you really when you've moved in and found that this wasn't a good fit for your needs and you really didn't save all that money?

Drop the Price!

My agent says drop the price!

Oh no! I can't do that!
Here's a sample of the objections I hear:

• I put money into my house and with the improvements it should be worth $xxx. . .
• I need to get a certain amount out. . .
• I'll have to bring money to the table. . .
• But it appraised 3 months ago at . . .
• Well someone is going to come in here and low ball me if I price it right. . .

Folks-you're not the only one! But here's the reality- We're in a buyers market! That means dropping your price, period. All the marketing in the world your agent will do, will not bring a buyer to make an offer, if you're not priced below where your market analysis shows you should be! Yes, a buyers going to come in and offer you less than what you're asking. Reality is though, at least they'll come in and make you an offer and at that point it's up to you on what to accept!

If you're caught up in the terrible predicament of being in a mortgage you no longer can afford or in a mortgage you already know you won't be able to handle in the future, there are things you can do. You can talk to your lender about doing a short sale or go to the state of maryland website and they have information on a program that may be able to help you. Whatever you do, realize the realities of todays market!

The Buyers are Coming!

You've received the call. A buyer is coming to see your home. What now? Leave the house!

I can't tell you how many times I've gone with buyers to view a home and the sellers are there. We've been to see 5 houses before this home and my buyers are all excited from the photos on the internet and can't wait to see this one. We go to the door and the seller opens it. Super friendly and excited to see us. They start telling us about the house and guess what -30 minutes later we're hearing about the guy down the street or how this is the biggest family room in the neighborhood. First, the seller may follow around and talk about the house pointing out things that really are important and good for the buyer to know, but then that feeling of used car lot starts to set in. Usually after about 10 minutes buyers will make a comment (out of sellers hearng range) about how uncomfortable they feel.

If you're selling your home, get out of the house (reminds you of Ammityville). There's nothing wrong with being there for 5 minutes, when they first arrive. Tell buyers you're sorry, you were just getting ready to leave grab your keys and your dog (yes, phido shouldn't be there unless crated). Tell them about the house, but hit key points. We just did upgrades, we love the neighborhood and why, we're planning on doing __ before we sell. Then high tale it out of there! Out of the house, and out of the neighborhood. Agressive agents may track you down and corner you into doing unneeded repairs.

The main thing is you want to allow buyers to feel like their looking at a house for themselves. Part of any buying process is the buyer being able to imagine themselves in the house. Picture buying yourself a shirt- you're thinking about how it feels, how it will look, what you will wear with it. Buyers go through the same process- how will their furniture look, what colors will they paint, how will the space meet their needs.

What's with that place-Lake Linganore?

A lot of people may not know what’s going on over in Lake Linganore, even REALTORS(r). The community is so large and ever changing, but here's some information that should shed some light on that latest happenings. As always check the http://lakelinganore.org/ site for the most up to date and to ensure the information is accurate (I've tried to do the best that I can).

After years of having a reputation for 'bad roads' (I actually think they add to the character of the area and control speeding cars) a large majority of Linganore is getting new roads. It's called the CDA project and it's finally happening after several years.

Keep this in mind especially if you are a potential buyer, as homes over here are a great deal right now. I am so excited!!!! The roads have been started. If you've cruised through Coldstream recently, you've seen the new roads. It's going to be awesome when the entire community is completed!!! If you drive through there now you can actually get an idea of what the swales (ditches) will look like in the rest of the neighborhood. Also, upon completion the roads will be wider (yes, you'll actually be able to have 2 cars pass each other). Please remember only parts of Pinehurst are included in the CDA for new roads, and you can check the county treasurers website to see if a home is part of the cda. My understanding is for roads that were not in the cda in pinehurst, the hoa is working out some type of plan so that all roads over there will be done.Hopefully, when all is done, we will actually start to see property values increase, as roads have always been a sore point for buyers. So if you're a buyer, or know of a friend looking for a great place to live-feel free to pass on this information (and as always you can go to the http://lakelinganore.org/ website for the latest information or call the HOA direclty)

Why buy in linganore:

• 30 miles of trails!


• 3 Swimming Pools!


• 3 Beaches!


• Workout facility!


• Golf Course!


• Playgrounds, tennis courts, soccer fields!


• 24 hour security-they'll check your house for you if you're out of town!


• Snow removal at the sign of one snowflake!


• Vinyl Siding & Hardi Plank Permitted!


• & NEW ROADS!!!!!

No!!!! This is not what your laundry room should look like (for that matter the dogs should be crated or out of the house).

I had a seller the other day who commented to me that they were going to list their house and go ahead and move their furniture to their new house. Stop!!!! Unless your furniture is really bad, leave it. What I do highly recommend, as well as most of my colleagues, have an agent come take a look and tell you what you can take out of the house. Empty houses can be incredibly hard to sell. While you want to 'depersonalize' the house somewhat, you still want to create a wonderful setting. Furniture gives rooms scale and identity.

Yes!!! This is what you want your home to look like. Clean, organized, and most importantly well taken care of!

On that note-Buyers love model homes! When you get your house on the market, you need to start looking at your house as an investment not a home. That means you want it to look like a model. Would you sell a dirty car? (I hope you said no) Would you take the seats and carpets out of the car? (In other words don't sell a empty house) Would you clean the windows, vacuum the carpets, touch up the paint on that car which has been like ole faithful to you all these years? (Yep!) Would you pile all your stuff into the trunk and hope and pray the buyer doesn't look? (In other words a buyer might appreciate not having a game board hitting them in the head when they open that closet door) Well, that's how you have to look at your house. Clean it! Get the stuff out that's clutter. That includes closets, cabinets, drawers, medicine cabinets, etc. Don't make your buyers think there's no closet space and you've outgrown your investment. This will mean $$$$ in your pocket.

Thinking of New Construction?

Thinking of new construction? Wondering if you should have an agent? The answer is yes!

The number one reason you should have an agent is resale. There have been countless times where I've gone to list a resale home that someone purchased from a builder and missed some big money and saleability because of things they did or didn't do. There's a lot to consider! The 2 foot bump out? The fireplace? The finished basement? The granite or Formica counter tops? Will my choices be dated in 1 year? Wood Floors? Upgraded carpet? The luxury bath? The elevation? The color of the exterior? What items are going to bring me the most money when it comes time for resale? Where do the decisions end?

An agent is going to point out some key decisions. Take a fireplace as an example. Is it worth the money? Will you get the money out of the house if you add the fireplace? The real question is what if you add the fireplace later, can you? Better yet, what are all the other people who are buying in this subdivision adding? Are they getting a fireplace? Do you want to be the only home in the neighborhood, when there's 8 others on the market, and yours is the only one that doesn't have a fireplace? There's a good chance your neighbors house would sell before yours does, just because of the fireplace. Often times, the best places to put your upgrade money is in the things you can't change later or will be to costly.

Let's talk price. Builders are giving away great incentives! Some builders are even giving away more than what they're saying they'll give. But how do you know? Talk to your agent, they may have a good idea who's offering what.

Most importantly-Do you know about quality of construction? Do you know what good quality cabinets look like? Are those 'upgraded' cabinets, really upgrades? Is this builder a quality builder? Will he stand by his work when the plumber forgot to put on enough glue in that shower pipe? Better yet, did he use a plumber that likes to save money by cutting back on his glue use?:) Your agent should know who's a good builder and who is an 'economical' builder, and be able to give you that information.

Ever drive 12 hours in a day to find that new home community that was right there yesterday? Don't miss out! Save yourself the drive. Your agent has access to new home communities, custom builders, lots, plats and more!

When your sitting at the table with the nice salesperson, going over all the options and costs-it can get not only overwhelming, but emotional. Your REALTOR is there to help. A REALTOR is not going to be influenced by the beauty of the tile, or the shine of the stainless stove, they're going to be looking at the decisions you make as an investment. An investment, that if they're a good agent, you're going to hire them to sell for you in 5-10 years. And they want to know they can sell it for you as quick and at the most money as possible. Agents know what buyers wants and needs are and they're going to make sure that new investment your buying is going to appeal to the most buyers as possible in the resale market. So do yourself a favor, bring your agent with you when you're thinking of that new home purchase-it'll pay you back today and in the future!

Wow! What a 2 week run! The market definitely is busy. All of the sudden buyers are out there and looking-albeit most of the buyers are looking at single family homes that are under $325k and townhouses under $275k.

I had several sellers back in November that were considering taking their houses off of the market during the 'holiday' season, and wanting to put them back on in the spring. A lot of agents that I spoke with at that time said they had several sellers doing the same thing. My recommendation at the time was leave your house on the market. If available homes are shrinking-better chance of selling. Good call-considering the amount of showings my listings have received in the past 2 weeks. The other thing to consider is that if people are taking their houses off the market now, to put them on in the spring, are we going to have even more inventory come spring? In other words, will the market get worse? Something to consider.

Remember if your selling, make sure your house shows great! Model home condition. I tell my sellers- 1 gallon of paint is equal to $5000 in your pocket. Wow!

Some sellers say they don't want to spend the money on paint, new flooring, and updated appliances. Keep in mind, if you don't do those small items, your neighbor did and their house is showing great at the same price. If you were the buyer and money was tight, which house would you make the offer on? The house that needs $5,000 worth of work or the one that looks fabulous, shows like new and all the work is done for you?

Sellers and buyers. Where are we in this market? Interest rates are great. Lots of homes to choose from at incredible prices. So why such a slow market? Why aren't more buyers out there looking at houses.

I spoke with an agent the other day and she had a great point. In other Real Estate downturns that we've had, buyers typically had to physically go out to houses to see them. That's no longer the case. With the wonderful services that we as REALTORS can provide, we now have provided the ability for buyers to sit at home and see houses via the internet, rather than have to get in the car and drive to the houses.

So what does this mean? Do we need to limit the amount of photos that we post on the internet. I don't think so. I'm finding many of my buyers saying 'we skipped over that house, because there were no photos'. I think in this new age, photos are the key to getting the buyers out to look at houses. I do believe that photos are important, but that sellers really should keep in mind-no photo is better than a bad photo. One bad photo, and that buyers not going to have any further interest.

So what have sales statistics been showing us? This was some info I gathered off MRIS on 11/6/2206.

Here’s some stastics for you. From October 1, 2006 through November 6, 2006 in Frederick County.

There are currently 195 homes on the market between $500k and $600k- 131 homes between $600k and $700k

Contract:
4 homes in all of Frederick county priced between $600 and $700k have gone under contract. 4 homes over $700k have gone under contract. 11 homes went under contract between $550k and $600k- 6 of those priced at $599,900. In all out of 221 homes that went under contract for the entire period in all prices ranges, 194 of them were under $500k.

Sold:
91 homes went to settlement in the same time period. Of those 5 were priced between $600k and $700k. 2 over $700k. 10 between $500 and $600K.

In June of this year 27 homes went to settlement between $600 and $700k. 20 homes over $700k. 34 homes between $500 and $600
In July of this year 9 homes went to settlement between $600 and $700k. 14 homes over $700k. 27 homes between $500 and $600
In August of this year 16 homes went to settlement between $600 and $700k. 16 homes over $700k. 34 homes between $500 and $600

In August of the 66 homes that went to settlement 41 of them went under contract before July 31, 2006

Interesting stuff. Is this the normal slow down time of year when holidays are upon us. Could be. I think Spring will tell us for sure.