DID YOU GET THE MESSAGE?

Did You Get The Message?

HOME INVENTORIES ARE AT AN ALL TIME HIGH!

NOW is the TIME to BUY a home.



HOME PRICES ARE AT AN ALL TIME LOW!

NOW is the TIME to BUY a home.



SELLERS ARE MOTIVATED TO SELL!

NOW is the TIME to BUY a home.



INTEREST RATES ARE AT AN ALL TIME LOW!

NOW is the TIME to BUY a home.



THERE IS AN ABUNDANCE OF MORTGAGE LOAN PROGRAMS AVAILABLE!

NOW is the TIME to BUY a home.







One of the largest monthly bills that the typical family has in their monthly budget is the Mortgage payment on their home. With home prices and interest rates at the incredible lows that they are RIGHT NOW there could be no better time to buy that home that you have wanted and to get a mortgage payment that will afford you to live a lifestyle that includes some of the enjoyable things that you would like to do in addition to owning a home. Savings in dollars that could be used toward clothing, education, food, entertainment and family vacations.

Low home prices and Low interest rates mean lower than rent mortgage payments. Why rent when you can own your own home? Rent payments are final....when you pay that monthly rent payment it is gone forever. When you make a mortgage payment it is reducing your mortgage balance and building your equity in your home. You also enjoy the tax benefits of deducting your property tax and mortgage interest payments.

With inventories running high there is an abundance of home available for you to choose from. You will be more likely to find the perfect home that suits the needs of you and your family. You might even be able to get that EXTRA room that you have been needing. A place for the kids to have a Playroom or that Home Office that you have been needing. The possibilities are endless.

Home Sellers are not the only ones that are motivated. With the slow down in New Home Starts there are Developers with Lots that they need to remove from there inventory. These lots have been released to sell at reduced prices to Individuals and not just Builders. Your situation may be that you just need to purchase the lot now and build your home later. Or you can select a lot and floorplan and be moving in about 6 months from now. (Just in time to qualify for the First Time Homebuyers Tax Credit deadline of July 1, 2009).

A very important point to remember is that historical what comes down will eventually go back up. It happens in the stock market, it happens at the department store, it happens at the gas tank and it WILL happen in the Real Estate Market. Don't be the one that is looking back and saying " I sure wish I had bought that house when the price was lower and the interest rate was incredible".


DON'T LOOK BACK AND SAY "I didn't get that MEMO"Just give me some insight on what your needs are. What is the best area for us to concentrate on based on your job or a particular school district. What price range do you need to stay in? Not sure? Let's get with the Mortgage Company and find out. How many bedrooms? How many baths? Do you want a basement or prefer walking out ground level? Do you like the idea of living inside a neighborhood or do you prefer more privacy?

Once I have the details I can lay the ground work and get busy researching the market to decide which homes are the best for us to go and preview. It is an EASY process and you will be moving into your new home in no time.

This Holiday Season Seems More Serene!

I have made it through the cookie exchange, Christmas Eve services, dinner for 12 on Christmas Eve, opening gifts on Christmas morning, dinner for 18 on Christmas night, and my daughter's 15th birthday on the 26th. We sent our son back to New York City today after a mad dash to the train station and now my daughter is off to a Wizards' basketball game with friends. I am exhausted. Thank heavens we didn't try to go away after Christmas like we had originally planned.

When I look back at this holiday season, it seems like one of the best I have ever had. Even though it was hectic, there was a serenity to it that I haven't felt before. Gathering with friends and family mattered more this year. The gifts were smaller, but somehow, they seemed better because there was more thought in them. I gave homemade fruitcake to some friends. We received cookies in exchange. The gifts had more imagination this year than splash. The friends seemed more appreciative to be included in the chaos and joy of our holiday meals. It just seemed nicer.

The Christmas Eve service was really special this year. (I have to say that I am a lapsed Episopalian who frequently only gets to church twice a year - Christmas and Easter). We always go to the early family service and the Christmas pageant never changes. The youngest children are sheep. The next age group are angels, and so they work up through the ranks to shepherds, kings, and finally the wise men and if you are truly lucky to Mary and Joseph. Looking around this year at friends and fellow parishioners I have known for 25 years, I felt so contented to be part of an extended community - Children I have known since they are 5 or 6 are now married with children. Others who were young when we joined the church are now elderly with oxygen bottles! The continuum of life felt good. It is important to know this year that life goes on and we will all survive! The things that really matter are still here, and it seems easier to find them with so much of the fluff gone. This is a Christmas I will cherish and remember because the important things came through so clearly.

Christmas is technically over now. I have already met with a client this morning, written a low ball offer on a short sale, and am getting ready to write another offer on a property that was a short sale last summer, but is.now redone and very attractive. Okay, so that is all in a day's work, because I am a Realtor! I am always delighted to be of service. But even in the midst of the sales activity, there is a glow that still lingers - a sense of connection that I haven't felt in recent years. I hope your holidays were good too. Happy New Year Too!

New Homes are Good Deals!

Okay, so we all know that buying a new home isn't as easy as it once was given the state of the economy and all the requirements to get a loan, but there are still excellent deals to be had if you are financially ready to buy a new home.

There are great deals out there being offered by new home builders, who use a number of incentives to entice you to purchase a home in their community including
some significant discounts for select workforces.

Read on to see seven great ways to get an amazing deal on a new construction home.

Included "Bonuses" in Price - For many city dwellers it can be a daunting
thought of moving to the suburbs. One of the biggest concerns is commuting to and from work in the nearest major city. Some builders are now offering a free vehicle lease for as long as 24 months to help you ease into suburban life with a new set of wheels. Other bonuses include free home theater systems, LCD tvs and more.

Slashed Pricing on Move In Ready Homes - Depending on your moving
situation, this is the golden egg of builder incentives. New home builders
build "spec" homes, also known as move in ready homes, to cater to home
buyers who are looking for a home to move into right away. The builder has already built that house and included certain options. If you are able
to move in right away, you will get a good deal this way. The drawback of course is that the builder probably chose mid range options in very neutral colors like light grey or light beige carpet, white kitchen cabinets, and the most popular of granites or very inocuous countertops. If you are someone who gravitates toward strong colors or upgraded finishes, be prepared to sacrifice some of your own tastes for a good buy!

Armed Forces or Civil Workforce Discount - Many home builders, especially
larger builders, offer discounted home pricing to people who serve in the
military or buyers who work in civil service fields like medical, police,
fire and government.

Builder Financing Incentives - National home builders tend to have their
own private financing company that they prefer to do business with as it
streamlines their work flow and makes the home sale easier for the
builder. To help you decide to use their preferred lender builders offer
appliance packages, upgraded flooring and other incentives for using their
lender.

Upgraded Included in the Price of the Home - Builders have a standard
features list that they use to build all of their base models but now
builders are including popular upgrades like granite countertops in the
asking price of their homes. I always encourage buyers to ask for these upgrades as a way of negotiating with the builder. You get a better house and the builder gets something close to his asking price.

Less Expensive Options - The average home buyer spends about 10% of their
total home sale price on upgrades for their new home. To encourage the
purchase of more upgrades builders have lowered the cost on many of their
upgrade packages. For example, you may find hardwood flooring in the
kitchen costs significantly less than it did a few years ago. There are
also more options per upgrade category to choose from.

Reduced Lot Premiums - Builders know home buyers will pay a premium for
their most desirable lots whether its because they have an ocean or
mountain view, private tree-lined backyard or more level terrain. To sell
more homes numerous home builders have reduced the premiums on the most
desirable locations in a community.

As you begin your search for a new construction home your best bet is to
get in touch with a buyer agent (LIKE ME!). Not only will a buyer's agent be able to give you the pros and cons of communities in your area but they will also help you dissect each opportunity and find the best incentives to help you save the most money on your new home purchase.

Have more questions? Please just give me a call at 240-401-5577 or email me at lise@lisehowe.com

Going to An Auction in Chevy Chase

Last week the Government of Singapore auctioned off a property that it owned in the community of Kenwood Forest in Chevy Chase, MD. The Government of Singapore wasn't selling the property for any obvious reason, other than a desire to divest itself of a property that it had owned for more than 20 years. (The townhouse had been home to a series of diplomats and other people working at their embassy.) According to the listing agent, the Government of Singapore chose to sell the house by auction because that is the way properties are generally sold in Singapore.

The house was available for buyers to preview for several weeks leading up to the auction. The house was empty, clean, and in reasonably good condition, but not updated in the last 5 to 10 years. No granite or stainless, no bowl vanities or tumbled marble in the baths. On the other hand, it was a 3 level townhouse with 3 bedrooms, 2 full baths, 2 half baths, a tablespace kitchen, and a fireplace in a well maintained community just 10 minutes walk from the Bethesda Metro and an even short walk to all the restaurants and shops.

I went to the auction, not as a bidder, but as a realtor. I have been "farming" the Kenwood Forest community for years. I have listed, sold and rented many homes in the community, and consider lots of the residents to be my friends. I have watched the values rise and now fall in Kenwood Forest. so I was very interested in how this auction turned out.

The auction was scheduled to begin at 11 o'clock. When I arrived at 10:45 at the house, it was filled with neighbors, realtors, and potential bidders. You could tell who was bidding by the $5,000 certified checks they were carrying: the auctioneer required a $5,000 check as a condition of bidding. The start of the auction was delayed shortly by the late registration of a last bidder who was waiting for his wife to arrive with the check!

At 11:10, we all tromped out to the courtyard in front of the house and the auctioneer started to explain the process of the auction. Key facts were the 6% buyer premium which applied on top of the final bid price, the requirement that the buyer settle within 30 days, and that the buyer pay all the transfer and recordation taxes, even though these are usually split in Montgomery County between the buyer and the seller. The weather was dry but it was still chilly standing outside, and I am sure I was not the only one who was anxious for auctioneer to stop talking and the auction to begin.

Still we waited while the auctioneer's assistant took pictures of the 60 of us standing outside the property facing the auctioneer standing on the front steps of the townhouse. Finally we were ready to begin!

The auction started with the call for an opening bid. Silence! Nervous giggles. The auctioneer asked for an opening bid of $500,000. More silence. He called for any bids. More silence. I couldn't imagine that sixty people were there and no one would bid. Was everyone there to watch? Finally there was a bid of $400,000. The bids progressed steadily from $400,000 to $425,000, to $450,000 up to $500,000. There were probably 4 people bidding, one of whom already owned 2 properties in Kenwood Forest. At the $500,000 point the auctioneer said that the auction was now real, since the reserve price had been met, and the house would definately be sold now.

At $500,000 the bidding began to slow down. Bids of $1000 more were offered, but the auctioneer said that the least he would accept was a bid of $2500 more. We were down to two bidders, neither of whom seemed eager to buy the property. The time began to drag between the bids with the auctioneer coaxing the two bidders slowly higher. At $522,500, we stalled. A third buyer obviously wanted to jump in but her husband held her back. The auctioneer called for final bids, but there was silence from the group on the lawn. Going, going, gone. The house was sold for $522,500.

Did the buyer get a good buy? Yes! Did the buyer get a great buy beyond the trend of the market? Not so clear. On top of the $522,500, there was the 6% buyer premium and all the transfer and recordation taxes, so it really was closer to a $560,000 sales price. The most recent sale of a similar townhouse in the community was last summer for $599,000, with a contract date in early August and a settlement date 6 weeks ago. Prices have dropped in Montgomery County in the last few weeks as buyers have stalled and sellers find themselves up against the wall.

The good news for the seller was that the property is sold, and quickly. Probably they would have received more money if they had used a realtor and gone the conventional route of putting the house out there for sale, but it might have taken a lot longer, and who knows what the market would be like by then.

In the end, the auction wasn't bad or good. It just is. The Government of Singapore sold the house, and someone new will move in. Not a bad day when you think of it!