PG County Real Estate

Want to buy more house in Prince Georges County than you ever imagined for your money? A foreclosed or bank-owned home can give you the chance to.  The downside is that these homes often require repairs far more extensive than a little TLC.  For many buyers, the economics do not add up if they lack the finances to make the repairs.

High Cost of Repairs? Roll it Into a 203K

One way to change this scenario is for the buyer to take out a 203k loan, which can roll the cost of the mortgage and needed repairs over $5,000 into one payment.  An FHA product, the loans can be used to purchase a home needing rehab, as well as to pay off existing house debt and renovate the property or even move a house to another location.  The program, in its streamlined form, covers repairs up to $35,000, while the full program is available for more extensive repairs.

Here’s What’s Covered

The most common types of updates covered by a 203k loan include:

• Remodeling bathrooms or a kitchen, including new built-in appliances
• Replacing a roof, gutters, and downspouts
• Adding a family room, bedrooms, or bathrooms
• Replacing flooring, tiling, or carpeting
• Completing a basement or attic conversion or adding a second story
• Expanding or building a garage or carport
• Renovating a deteriorating property, such as repairing a chimney, termite damage, or structural problems
• Upgrading plumbing, heating, air conditioning, or electrical wiring
• Eliminating health and safety hazards, such as removing lead-based paint
• Making the home accessible to the disabled
• Installing a well or a septic system
• Adding a porch, deck, or patio
• Adding or repairing siding or repainting
• Installing energy efficient windows or doors
• Repairing an existing swimming pool

Not all lenders offer 203k loans; those that do must comply with FHA rules.  A smart buyer will hook up with a knowledgeable Realtor® to guide the process.  The amount of the total loan for the property and the repairs must fall within the amount the buyer has been approved for, so a good Realtor® should direct the buyer to get a pre-approval letter and then help the buyer find affordable properties within the limits.  Once the buyer makes the offer and has it accepted, he will get a home inspection and be assigned a 203K consultant to oversee repairs and administer draws.

At this point, the property is appraised and the loan is processed and closed.  The repairs are then begun.  As is true with construction loans on new homes, payments for repairs are submitted by contractors and reimbursed.  If the buyer cannot live in the home until repairs are completed, he can finance up to six months of mortgage payments.  When the repairs are complete, the home is inspected again.

The goal of the loan is to assure habitable property within six months.  In most cases, contractors are required to perform the repairs, unless the potential buyer is skilled and licensed. For loans over $35,000 architectural drawings are required.  This program requirement is intended to overcome a common DIY phenomenon: many home repair projects that people undertake themselves drag on forever due to lack of time or money and are completed with poor workmanship.

A 203k loan could make your dream of homeownership a reality.  Express Realty Services can show you properties where a 203K loan would be helpful.

For the last couple years, it’s been a buyer’s market in housing, which has been bad news for sellers. Some homes in Prince Georges County have moved, but usually at a price much lower than the seller expected and over a longer time period.  In the 3^rd Quarter of 2009, the market is stabilizing so that sellers have reason to be happier.

Prices Have Dropped, But Appear to Have Stopped

Prices in PG have dipped 21% in the past year, but prices have dropped off by only .5% since last quarter.  Sellers can expect to receive a price nearer to their asking price than they could a year ago, though the average concession in the area is still nearly 7%.  Average days on the market has dropped in the county to 86 days from 97 last quarter and 101 a year ago, so sellers can busy themselves with buying their next home with reasonable expectation that their old one will not be on their hands so long.  With buyer activity brisker than in the past, the number of homes on the market is declining which has restored some of the power to sellers in the transaction.

The DC Economy Means Faster, Higher Selling Prices

Sellers also gain some other advantages, too, from the improving economic climate.  Generally, the economy of the DC region is better than elsewhere in the country so buyers are more willing to put their economic lives on the line for a house.  Projections for 2010 show jobs in the region increasing as unemployment continues to drop; most home buyers with higher incomes will find that their own jobs are solid.  If they want to move to a bigger, better place, apartments are harder to get as vacancy rates are low, so they may look toward buying a home.

Consumer Confidence in Housing is Up. Great Time to Sell!

As sellers reap the benefits of continued consumer confidence, they can expect swifter sales and firmer prices.  The only known cloud on this horizon is the climate of stricter credit conditions, as banks put more constraints on would-be buyers.  That’s why savvy sellers work with Express Realty Services, the fourth largest Keller-Williams agency worldwide.  We bring sellers together with qualified buyers in less time.  Our motto is We Sell Your Home Fast. Contact us today to make our resources work for you. Ask us about our Guaranteed2Sell program when you call.

If you seek proximity to the District but long for a more suburban feel and a lower price tag, Prince Georges County, MD could be your new address.  With average prices about $80,000 less than in the core city, you can maximize your housing dollar in this area just outside DC.

Current prices in PG County average $395,463, down 21% from last year.  The drop is the most substantial in the area, but the fall off between the second and third quarter of 2009 has only been .5%.  As prices level off, potential buyers looking for the bottom of the housing market may be looking at it.

Those who waver about whether to buy now or not can take courage from a few positive signs in the local economy:

• Employment in the DC metro is stable. The 6% unemployment rate is lower than the national average of 10.2%, and significant job growth is in anticipated in 2010.  Though nothing is certain in life, you, as a potential buyer, can bask in the aura of DC Metro-area consumer confidence as you make your way to the bank.
• Interest rates are low, often attainable for well under 5% for buyers with very good credit.  Over the course of a fixed-rate loan, these lows rate can mean a savings of tens of thousands of dollars in interest alone.  Immediately, the low rates enable you to purchase more home for the same monthly payment.  This extra buying power is expected to disappear by spring, as the government backs off from buying mortgage-based securities.  When the Fedsend their shopping spree, market forces are expected to send interest rates back up.
• Just a week ago, the first-time home buyer tax credit was taken off life support and extended another five months. The program was also expanded to allow current homeowners who qualify to receive $6,500 if they buy another primary residence.  Since a broader group of home buyers now share incentives, first-time home buyers will have more choices available as some current homeowners put their houses on the market in hopes of moving to their next home.  Income-level requirements were raised to $125,000 for singles and $225,000 for couples so those who earn more can apply the credit too.  Some PG County buyers can also benefit from local programs in conjunction with the Federal program.

There are many good home values in Prince Georges County.  At Express Realty Services, you can stretch your dollar even further by buying one of our renovated, remodeled, and refurbished homes, renovated from our sister company Express Homebuyers.   We can even help you find a lender from our extensive base of contacts.  Contact us today to make your home buying dreams come true. we’ll sell your house fast, too.