PG County Real Estate

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.

This may be familiar territory for some of you, but here is a comprehensive guide to purchasing a bank-owned property.

• Your first step is to secure loan pre-approval.  If you are not already working with a lender, we have several we would be happy to recommend.  While you’re free to use a vendor of your choosing, know that certain banks may require you to be approved by their lender before you can proceed with buying one of their foreclosed properties.
• Next, select one of the homes the bank has available.
• For the offer to be considered, you must submit your Earnest Money Deposit to the listing agent.
• If your offer is accepted, you will receive a list of bank addendums from the listing agent.
• After you have reviewed this document thoroughly, send it back to the listing agent, who will then forward it back to the bank and obtain the necessary signatures.
• During this waiting period, you should reach out to a loan officer to secure more accurate figures.  Give them the sale price, the interest rate, the monthly payment amount and the closing cost, at which point the loan officer will provide you with a Good Faith Estimate, and a list of the documentation necessary to complete the loan application.  Items on this list will include pay stubs, w-2 forms, and bank statements among others.  While you must ultimately select the mortgage that is best for you, we have found the 30 year fixed rate mortgage to be an excellent choice.
• The lender will require that you have Homeowner’s Insurance, so your next move should be to obtain a quote.  We recommend that you choose a plan covering your home and belongings in the event of a fire, robbery or other unforeseen set of circumstances.  As always, shop around for the best deal, and be sure to consult your car insurance agent, as you may be able to arrange a multi-policy discount.  After providing your insurance agent’s name and phone number to your loan officer, they will then order Hazard Insurance for you.
• You should receive your fully ratified (signed by both you and the lender) contract within a matter of days.
• Next, we will reach out to the listing agent and confirm that all utilities have been activated before scheduling a home inspection.  The inspection process typically lasts about 2-3 hours, and can be performed by an inspector of your choosing.  Once again, we would be happy to recommend one to you if you do not have one in mind.
• The loan officer will then request Appraisal and Title work.
• A full termite inspection will then be performed by either you or the seller.
• HOA documents should then be ordered by either you or the seller.  Review these thoroughly, and let us know if you have any questions.  We need to ensure that neither the bank nor the home’s previous owner are behind on paying HOA dues, and that there haven’t been any HOA code violations.
• You should then perform a final walk-through inspection, either before or the day of closing.
• When closing day arrives, your loan officer or title company will inform you of the materials you will need to bring (along with proof of identity) to complete the process.

As we have said many times before, we have the expertise and experience to represent you as you purchase a bank-owned property. And, we also have many bank-owned properties for sale since we work with a number of national banks and the Federal Government. Contact us at Info@ExpressRS.com or 703-752-1380 for more information or any comments you might have.

If you’re considering either buying or selling a home, here are some statistics and graphics from the month of April that may help you make a decision.

The first graphics we’ve included are pretty self-explanatory, they feature side-by-side comparisons of the average period of time our homes spend on the market with that of all other homes sold within the DC and PG County areas.  We take pride in how quickly our homes sell, as we feel it reflects the fact that they are quality products whose prices are set reasonably.  Take a look at how we stack up:

Our next series of images shows the trend in units sold per month from 2006 – Present in the Northern VA, PG County and DC areas.  The first thing you’ll probably notice (and this shouldn’t come as a surprise) is that sales have fallen off considerably with each year; there’s no escaping it, we’re caught in an economic downturn, and when companies (and in this case, people) are bleeding money, major purchases like homes and cars are not at the top of their list.  Still, there’s something of a silver lining here.  If you compare the 2008 numbers to those of 2009, an argument can be made that home sales are on the rise; without going so far as to say that the worst of the recession is behind us, these numbers should be at least somewhat encouraging to professionals within the industry as well as homebuyers such as yourselves.

Let’s take a closer look at the trend graphics, first at the  PG County stats.  Although January 2009’s 306 units sold is 79 less than the 385 that were sold in the final month of 2008, all 4 of the years listed here started slowly; in fact, January tended to be a weak month across the board, and the same can be said for February.  March and April of 2009 featured more home sales respectively than the same months in 2008, which bodes well for the rest of the year.

As was the case in PG County, 2009 began poorly in DC; January and February’s 253 and 253 units sold were markedly less than the 318 and 369 units that moved in the first two months of 2008.  However, the ship appears to have been righted in March and April, as the unit sales in each of these months eclipsed their 2008 levels.

Here are the statistics:

We want to assure you that, by showing you these numbers, we’re not trying to give you false hope, or trivialize how terribly current economic conditions are affecting everyone.  What we would like you to take from these statistics is the realization that 2009 has the potential to be better than 2008, and that if more people are starting to buy homes than they did at this same time last year, it means either they have more money to spend, or home prices are becoming increasingly affordable.  EITHER WAY, this is good news for you.

First-Time Homebuyers Seminar: Mortgage Assistance. Credit Repair. Home Selection. Closing.

This is a great opportunity to gain valuable insight into the process of purchasing your first home.

May 16, 2009 10:00AM to Noon
Capitol Hill Presbyterian Church
201 Fourth Street SE Washington DC
Corner of 4th and Independence Ave. SE.
Located close to the Eastern Market or Capitol South metro stations. Please note that parking for the event is extremely limited.

This seminar will:

1. Suggest ways to improve your credit rating. Credit scores can be raised by as much as 100 points through our simple, legal, and no-hidden-costs method.

2. Explain how you can secure up to $18,000 in down payment assistance. No strings attached, and available to all qualified first-time home buyers. This is grant funding you won’t ever have to pay back if you occupy your home for a certain length of time.

3. Teach you to identify and target the best DC-area properties for your budget. Learn simple tricks and techniques to get the most value for your money.

4. Remove the mystery from the closing process. Learn to understand concepts such as deeds, closing costs, title and ownership.

This Home Buying seminar is unique in that you can pre-qualify, apply and view new home opportunities right on the spot. You won’t want to miss out!

Hosted by Express Realty Services – www.ExpressRS.com.

Featured Speakers:      Marc Hershkowitz – Realtor and Host
Kristine O’Neill – Senior Loan Officer, Virginia Heritage Bank Mortgage
Mark Schrader – Principal, Millennium Title
Steve Conover – Credit Guru, MyCreditABC.com

Seating is limited. Sign up today to reserve your spot or arrive early take advantage of our first-come-first-served seating.

Please contact Tina@ExpressHomebuyers.com or 703-752-1374 to make a reservation or for any further information you may require.

If you’re wondering whether it’s the right time to buy property, we’ve found a recent article by the Inman Group that goes over some of the concerns people have about the process.  The data they discuss was collected by the Century 21 Group for a March 2009 survey of 1000 potential first-time homebuyers.   The link to the document is at the bottom of this page, but here is a quick summary of some of the article’s main points and findings, along with some suggestions on our part:

Almost 50% of the people surveyed were unaware of the $8000 tax credit provided by the economic stimulus package (for more details, see our March 20th DC Real Estate Blog posting).   If you’re looking for some money to put toward a down payment, it’s worth looking into the tax credit and learning more about the qualifications for the tax credit.

42% of the people who took the survey claimed they would consider buying a home in the present economy, while another 48% are holding out for market conditions to improve.  69% of current renters worry that prices may rise if they don’t act soon, while 68% of those who took the survey believe that rates are better now than they were 6 months ago.  Most of these people seem to agree that the time to act is now.

Almost 60% of the homebuyers who took the survey admit to a limited understanding the real estate market, and more people use real estate listings for research than websites.  The trick with the internet is knowing where to look, and avoiding fake sites and scammers as you search for quality homes.  We take pride in selling homes quickly; according to MRIS Research’s “Local Market Updates for the month of March, the homes we offer in the PG County area sit on the market an average of 32 days before they are sold, compared to 166 days for all other homes sold in the area.  We feel this reflects the fact that we provide a quality product at an affordable price.

Overall, most participants feel that now could be a great time to pull the trigger on a new home, but are worried about the economy and the possibility of losing their jobs while they’re saddled with a new mortgage to pay off.  It’s important to know the risks involved in becoming a homeowner, and weighing them against the reasons for buying property now before you make a decision.  Remember, we’re always happy to answer any questions you may have.

To read the Inman News article, please use the following link: http://www.inman.com/news/2009/03/27/first-timers-worry-about-jobs-credit

With the number of house flippers and fortune hunters increasing in today’s sagging real estate market, we feel it’s important to be as clear as possible about what we do.  Like any other crisis, the current economy has created its share of “miracle workers,” scammers who promise to make your foreclosure troubles disappear for a modest fee, or to provide renovations that they guarantee will help your home sell immediately.  Like any other predator, they view the difficult choices homeowners are faced with as a golden opportunity to take advantage of their concerns about the future, and see a way to turn a quick profit.

Unlike the kindsof companies (or in some cases, individuals posing as companies) described above, we don’t make any such promises.   We’re not asking to work on your house, or offering you a surefire way to avoid losing it.  Like our name suggests, Express Homebuyers is interested in buying homes.  Any and all renovations to the home occur after it has been purchased, not before.  The only service we provide is to pay you for houses that you’re having trouble affording (or are tired of constantly repairing and worrying about).  Our Express Realty Services branch is responsible for selling the homes once they’ve been completely restored, but this isn’t a two-step process unless you already keep tabs on the Express RS website and find a more affordable residence that you’d consider buying after having sold yours.  We aren’t looking to buy your home, refurbish it and then sell it back to you, or make any extravagant guarantees- the only step you should be focusing on as you consider moving forward with us is whether or not you feel the time is right to sell your home.  It is our sincere hope that we can be helpful to you in these difficult times, but know that we won’t promise anything we can’t deliver on, or suggest any “quick fixes” for your situation.  Express Homebuyers is here to buy your home if you’re ready to sell it, and if this is a move that makes sense for you, we’re only a call away.

Most of this is directly from a news release kindly provided by RGS Title. Since the news is very good for first time buyers in PG County, we thought we’d share it with you immediately:

Great News for PG County Buyers – An Improved First-Time Home Buyer Credit
As we have mentioned in previous posts, there have been some recent optimistic signs for buying a new home:

1. National home inventory is at a 2-year low; prices are down and much more more affordable than in the past.
2. While January, 2009 showed a dip in sales activity, a lot of hesitation can probably be attributed to buyers waiting to see what benefits the federal government would offer in the way of stimulus (See last week’s blog).
3. One of those benefits is outlined below, an improved First-Time Home Buyer Credit.  The increased credit of $8,000 is a true tax credit and THE CREDIT MAY BE CLAIMED ON YOUR RETURN, EVEN FOR PURCHASES IN 2009.  See IRS FORM 5405 and instructions for more details.
4. The maximum Fannie Mae and Freddie Mac conforming loan amounts have been raised back up to $729,750 for high cost areas such as metropolitan DC through 2009.

SUMMARY OF THE 2009 FIRST-TIME HOME BUYER TAX CREDIT
NOTE:  For qualifying buyers, who purchased from April 9, 2008 to December 31, 2008, the credit established last year is still in place [10% of purchase price, but not more than $7,500, which has to be repaid as additional tax over 15 year period in equal installments and would be due in full if sold prior to end of recapture period]

For  purchases AFTER December 31, 2008 and before December 1, 2009 (YES THAT IS DECEMBER 1st, NOT THE 31st), the maximum is increased to $8,000 and is a true tax credit – IT DOES NOT HAVE TO BE REPAID, unless the property is sold or no longer primary residence within three years of purchase.

The principal provisions for 2009 are as follows:

1. Credit amount:
   10% of purchase price, but not more than $8,000 ($4,000 if married and not filing jointly); if unmarried joint owners qualify, the credit is allocated between them, but total is limited to $8,000
2. Qualifying Property:
   Same as before. Single-family real estate used as Principal Residence
3. Limitations:
   First-Time Buyer – means individual had no present ownership interest in a principal residence during 3-year period prior to purchase date.  No limit for AGI up to $75,000 ($150,000 joint filers); not available for buyers with AGI over $95,000/$170,000 and there is prorata credit reduction for incomes between.
4. Recapture:
   Due in full if sold, or no longer used as primary residence, prior to end of 36 months from date of purchase; there are some exceptions to the repayment requirement, including death of the taxpayer, which are detailed in the instructions for IRS FORM 5405

As you may have heard, President Obama launched the Mortgage Relief Plan on Wednesday, March 4.  This plan was created to help an estimated 9 million Americans stay in their homes by helping them qualify for cheaper mortgages.  It works in two parts:  as many as 5 million homeowners will be able to refinance and end up with more affordable fixed-rate loans, while up to 4 million homeowners will be eligible to modify their loan terms.

While this sounds like a great idea, what matters to you is whether or not you qualify for help.  Here is what you need to know about the Refinancing Plan:

• For starters, you must be a homeowner whose loans are with Freddie Mac or Fannie Mae in order to be eligible.  The easiest way to find out whether or not your loans are held by either Freddie Mac or Fannie Mae is to ask the lender or mortgage service you currently use.  Check one of your monthly mortgage statements for the phone number.  If you’d rather get in touch with Freddie Mac or Fannie Mae directly, their contact information is:

1.800.FREDDIE
www.freddiemac.com/avoidforeclosure

1.800.7FANNIE
www.fanniemae.com/homeaffordable

You can fill out the necessary request forms online at the email addresses listed above.

• You cannot owe more than 105% of your home’s current value on your first mortgage.  If you have a second mortgage, you could still be eligible if your first mortgage isn’t over 105% of your home’s value.

• You must be the occupant of your home, and you need to have enough income to make your new mortgage payments.

• You won’t be allowed to take out cash during the refinancing process to pay off other debts.

• The deadline for you to register for this program is June 2010.

Here are the requirements for signing up for the Modification Plan:

• Only mortgages you have made on January 1, 2009 or earlier are eligible.

• Your total mortgage payments must be more than 31% of your monthly income.

• The home you are mortgaging must be your actual residence, it cannot be vacant, condemned or owned by someone else.

• If you live in a single family property with a loan larger than $759,750, you will not be able to register for this program.

• To prove your eligibility, you need to provide your most recent tax return, two pay stubs, an official “affidavit of financial hardship,” and explain why you are going through financial hardships.

• If you do qualify for this program, you can only have your loans modified once.  The program will only continue until Dec. 31, 2012.

Hopefully you found this information helpful, it’s important to know your options as you consider your future as a homeowner.  If you have any further questions or if you’re interested in purchasing one of our affordable newly renovated homes in MD, please visit our website at www.ExpressRS.com.

Last time we took a pretty hard look at the statistics for the end of the year, and they told a pretty compelling story about how the real estate market looks for PG county, today. simply stated, it’s a pretty good time to buy. Dso, does it still make sense to rent?

Rent-vs.-Buy Break Even Analysis – the Simple Way.
Here’s a simple way to find out. If you live in PG county, and your rent is more than $600-700 a month, you should probably consider buying a home. Here’s why:

1. With interest rates on home mortgages hovering in the 4% range, the mortgage payment without taxes and insurance on a $150,000 house would be in the range of $500-600. realistically, you have to add in a couple of hundred dollars a month for taxes and insurance, so your payment might be as high as $650 to $750 a month.
2. Now, give yourself a tax break. Because your interest on a house is deductible, you can lower the deduction on your paycheck, you’ll see $200 to $250 a month in additional cash that’s no longer being deducted.
3. If you subtract that additional cash from the new payment, you’re left with somewhere between $450 and $500 net payment for the house.
4. Here’s the big advantage – YOU ARE A HOMEOWNER!
5. Keep in mind that the house should increase in value an average of 4% a year (based on the economic history of US home values including today’s market drop). When you go to sell, that increase in value will be yours to take to the bank!

Here’s Another good Reason to Buy.
History shows prices on homes stop dropping and hit the floor when rent covers the mortgage. Remember that a rental property is a business, and the owner, your landlord, is in it to make money. At the end of the day a home’s value comes from its ability to produce that income. Prices have gotten so out of whack recently that they had to drop, otherwise, no one could afford to pay rent either. It’s no different from any other business. Right now, because rent is often more than the monthly payment on many homes, it’s the perfect time to buy.

Now that real estate has dropped because the rents were so much lower than landlords could afford to charge, you can rally benefit from buying at these all-time low prices. In PG County, this is particularly true because the average price of a three bedroom home is now well with the reach of the average PG Country wage earner.

That’s you.

So Buy Now. Before Prices Start to Climb.

Contact us for the best value in a new home: www.ExpressRS.com. We sell many affordable homes including fully-renovated homes in PG County at fair market prices and guarantee our homes are the best in the neighborhood.

Welcome to our blog on how to buy a home in Prince Georges County, Maryland. Since many of the homes we sell are located in the County, we thought you might enjoy having a place to go where you can have your questions answered honestly.

Sure, We’d Like You to Buy One of Our Houses…
But we’ve been in this business long enough to know that, even if you don’t, you’d like to have access to the kind on information that can help you make a wise choice no matter what or where you buy.

But What About This Economy?
Right now, if you’ve got the means, this economy is the absolute best time to buy a home in PG County. Consider this from November 2008. These are the actual prices people in PG County are paying now compared to last year:

PG COUNTY HOME SALES:

Prices continue to drop, and days on the market continues to decrease – houses are selling faster, a sign of a strengthening market. November and December of 2008 were also months where seller-assisted down payment assistance (DPA) was not available. When DPA returns – which in our opinion will happen early in 2009, you will see tons of buyers jumping off the sidelines. Especially when interest rates hit 4%, the lowest in memory.

So Why Pay Rent?
With rates in the 4% range, it will not make sense for you to rent unless your credit is an absolute disaster or you are looking for short-term (under 2 year) housing. . The mortgage payment without taxes and insurance on a $150,000 house would be as low as $500-600. Add a few hundred dollars for taxes and insurance and you’re paying 600-750 a month.

Get Ready To Buy!
It’s a pretty intriguing time. If you have held off buying, we don’t think prices are going to drop much more. Get your financing approved, and start looking for homes. If you want help, call us, of course. But no matter what you do, beat the rush. Get started today.