How the media reports and distorts the housing market

Thinking of buying a short sale or foreclosure? Read this.

One of the first things many of our new buyers say to us in our initial meetings is: “We want to buy a short sale” or “I’ve heard you can get a good deal on a foreclosure.” Our first instinct is to roll our eyes and pat them on their arm, all the while thinking about how naïve and helpless they look sitting across the table --- all wide-eyed and salivating over the inevitable steal they’re going to be getting in this “buyer’s market.” So begins the process of educating them about the process of actually buying a short sale or foreclosure.

Suffice it to say: Buying a short sale or foreclosure is not for the faint of heart.

To say the least.

Really.

We're not just saying that.

Yes, you can get a great deal on a short sale or foreclosure (note, we didn’t say “steal”), but there are many hurdles to clear before you’ll get the keys to your new home. With a bit of input from our broker, Marj Rosner, we’ve put together a list of things for you to think about before you head out to start looking at short sales and foreclosures.

• Many of these distressed properties are going to be sold in “as-is” condition, as of the time you view them. Banks do not typically make any repairs, and short-sale sellers often do not have the funds to make repairs. Further, if the bank is selling the property through foreclosure, there will not be any property condition disclosures. We advise our clients to inspect any property carefully before making an offer. Consider investing the money in a home inspection in advance; it may cost a bit (usually a few hundred dollars), but is worth it if you end up purchasing the property. Sometimes the seller and/or the bank will treat for termites if an infestation is discovered, but more often than not, it will be the responsibility of the purchaser to treat an infestation or damage. If your lender requires such repairs, be prepared to cough up the money for these repairs before you actually own the property.

• Utilities may or may not be on when you view prospective properties. Between October and April, most vacant properties are winterized, so do not attempt to use any appliances. Keep your flashlight handy! In the event that you do have a home inspection, tell your inspector prior to the inspection if the utilities are not on, and/or you will need to make arrangements with the listing agent to have utilities turned on --- usually at your expense. Invariably, there will be a fee for de-winterizing and re-winterizing the property before and after the inspection. Oh, and you’ll also need to do this before your pre-settlement walk-through inspection too.

• The bank and/or the listing agent may request that your earnest money deposit be placed with the listing agent’s broker. They may also request that you settle at a title company of their choosing. This can be disastrous. What if the listing broker mishandles your deposit? What if the seller’s title company does not adequately research the chain of title? Occasionally, these “requests” are really “requirements.” If we think it’s feasible, we recommend some pushback at this juncture. You may want to consider selecting a settlement/title company to represent your interest; and you can write your earnest money deposit to that organization. It is also important to select your settlement company early for several other reasons. First, once your offer is accepted, or occasionally before it is accepted, many banks want to see an estimated HUD-1 settlement statement at the offering/acceptance price before approving the sale. Your settlement company is usually the best place to get an accurate estimated HUD-1. Second, your settlement company will perform an independent title search of the property’s chain of ownership so as to provide you with assurance that there are no outstanding liens or encumbrances on the property and to provide you a valid title insurance policy.

• At the time you submit an offer through your agent, you should be prepared to provide proof of funds and/or a letter of approval from a lender, along with a photocopy of your earnest money deposit Check. Many banks will not process an offer without this information. Please make certain the name, address, phone, and fax of the lending institution are clearly legible on the letter.

• Most of the banks approving short sales and foreclosures are out of town, in different parts of the country and in different time zones. At best, you will need to wait several days for a response. In some cases, the wait is weeks. Occasionally, you will wait for several (or many) months for approval (last year, we had a buyer who waited NINE MONTHS for a response!). Some buyers ask us to put a written deadline in their offer. Don’t bother. Most lenders simply ignore such deadlines. The time you’ll wait for a response varies greatly depending on which bank or banks are involved. Also, you should understand that, in many cases, there is not just one lien holder, but several, and that all of these lending institutions must approve a sale. We can’t stress the following enough (so we’ll “shout” it for you): “IF YOU HAVE A RIGID TIME DEADLINE BY WHICH YOU NEED TO MOVE, THINK SERIOUSLY BEFORE ENTERING INTO A CONTRACT ON A SHORT SALE OR FORECLOSURE.” If you’re trying to take advantage of the $8000 tax credit and need to settle by June, good luck. If you want to be in your new home before your baby is born, good luck. You will have very little control over the timing of the process. No amount of calling these banks, cajoling asset managers, dropping off doughnuts (as one client did), threatening or screaming will speed this process up. We encourage massive doses of patience!

• Although it is counter to anything you have ever been told, many banks do in fact negotiate verbally. Be prepared to hear that your offer is accepted but you may receive no accompanying paperwork whatsoever. It can be days or weeks before you will see anything in writing. This can be a tense time. (Additionally, banks almost never accept offers contingent upon the sale or settlement of another property. Expect such offers to be rejected or ignored entirely.) You and your agent may feel frustrated by the absence of responses/information. This is nearly always a function of the bank(s)’ procedures and is not an excuse to abuse either your agent or the listing agent!

• Settlement and title issues DO occur with short-sale and foreclosure properties. These can delay any time frame. We advise you to have a back-up plan if settlement does not occur according to the schedule in the contract.

While this list is by no means exhaustive, we hope that it gives you a glimpse of what the process of buying a short sale or foreclosure. Like we said, these properties can be good deals. Only you can decide if you have the temperament to make it through the process!

Today's RealtorRant: Learn how to leave a content VM!

Hey, all. Kevin here.

I haven't posted in a while and wanted to get back into the swim of blogging.

This week, with all the snow, our team has been working remotely from our individual homes, and I've been giving some thought to one of my biggest pet peeves. Agents who either don't know how --- or can't be bothered --- to leave an effective voice mail message.

Because we've been trapped at our houses this week, we've each been using our cell phones to communicate with the outside world. Now, if you know much about me at all, you'll know that I'm not a huge fan of the phone. It's a necessary evil of this business. Until the time when we use Twitter to negotiate contracts (I hope that day is coming soon!) though, we need our cell phones.

I rarely answer a call on my cell unless it's one that I recognize. That means I often need to respond to voice mail messages from folks who call me. Most of the time, this is fine. If a person has left a decent content message, I can retrieve whatever information I need to respond to his or her call efficiently.

However, my least favorite type of voice mail message is what I call the "Call Me" message. This is when someone calls and leaves a message that basically says, "Hey, this is Agent Fulana, please give me a call at XXX-555-1234."

Perhaps it's not rational, but this kind of message drives me to distraction.

First, I have no idea why you're calling; second, because I have no idea why you're calling, I may not be able to efficiently help you when I do call you back; and third, if I call you back and YOU can't answer, I've wasted time in returning the call in the first place. Now, we have to continue this round-and-round game.

Tag, you're it.

So, here's an article to assist all those Realtors who need to learn this skill:

How to Leave the Perfect the Perfect Voice Mail.

You're welcome.

Feeling Nosy about DC? VA? MD?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across this week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!)

Join us for an Open House – 1732 Girard Street NE

OPEN SUNDAY 2-4 pm

Listed at $325,000

Light and bright! Move right into this totally renovated and beautiful townhouse with a lovely view of the park. New everything! Recessed lighting, handsome hardwood floors, new high-end kitchen & bath including granite counters and tile floors. The finished basement is a haven with lots of light and a full bath. Large backyard. Block from library and close to METRO. Welcome home! See more at www.1732GirardStNE.com.

Feeling Nosy about DC? VA? MD?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across this week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!)

Make Hyattsville Home!

The Hyattsville Mayor and City Council recently adopted a new stimulus program for new home purchases within the City of Hyattsville.

Eligible homeowners who purchase a home after October 1, 2009 may apply for a $1,000 payment. Homeowners must close on their property and receive their Prince George's County Tax ID number before applying.

Current funding is set at $20,000.

If you have recently purchased a home in the City of Hyattsville, please download the application by clicking HERE.

For more information, contact the City's Finance Department at 301/985-5000 or via email.

If you are interested in looking at homes in Hyattsville, the RealAstute.com Home Team is ready to help you. Just drop us a line at Hyattsville@RealAstute.com and our team will be happy to send you listings and assist you in the buying process!

Feeling Nosy about DC? VA? MD?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across this week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!)

Join us for an Open House - Fort Dupont Street SE

OPEN SUNDAY 1-3 pm: 1507 Fort Dupont Street SE

Listed at $249,900

This beautiful renovation is back on market after the 1st buyer lost financing -- their loss is your gain! Light-filled 3 bed/1.5 bath semi-detached renovated head (new roof!) to toe (basement rec room). Open floor plan downstairs features open living room/dining room w/ recessed lights, beautiful moldings & gleaming hardwoods. Granite counters, stainless steel appliances, ceramic tile backsplash & floor in chef's kitchen. Lush landscaping & a 2 car off street parking in rear! See more at http://www.FortDupontHomes.com.

First Time Buyer Credit Extended!

The first time buyer credit has been extended - read the full article below!

President Obama Signs Extension of First Time Buyer Credit (From CNN.com)

Tax break for buying a home

The legislation also will extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. The controversial credit, which many say has boosted home sales in recent months, was set to expire after Nov. 30.

The bill also creates a $6,500 credit for those who buy a home after living in their current house at least five years. That measure will apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.

The credit will be available only for the purchase of principal residences priced at $800,000 or less.

The bill will raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

"It's gonna put people back to work, the home builders, put people in the real estate business," said Sen. Chris Dodd, D-Conn. "The kind of jobs that can make a difference."

The extension will cost $10.8 billion over 10 years, according to the Joint Committee on Taxation.

Through mid-September, 1.4 million tax returns had qualified for the credit, according to the IRS. Some portion of those returns, which the IRS couldn't specify, represents buyers who took advantage of an earlier version of the tax credit, which was only worth $7,500 and has to be repaid over time.

By the end of November, the credit will have been used by 1.8 million homebuyers, at least 355,000 of whom would not have bought a house without the tax break, according to estimates by the National Association of Realtors.

"The data on the present home buyer tax credit show that the credit has had its intended impact -- sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably," said Ron Phipps, the association's first vice president, in Senate testimony last month.

The credit, however, has also posed many problems. Critics say it's a waste of money because most of those claiming the credit would have bought homes anyway.

It's also been the target of fraud. Some 74,000 people claimed more than $500 million in credits even though they may not be first-time homeowners, according to Treasury officials. And more than 580 children, including some as young as 4-years-old, have claimed the credit.

"Some key controls were missing to prevent an individual from erroneously or fraudulently claiming the credit and receiving an erroneous refund of up to $8,000," said J. Russell George, Treasury inspector general for tax administration, before a House subcommittee last month.

Great news!

Feeling Nosy about DC? VA? MD?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across this week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!)

Want to GO GREEN? Save the Date!

The Office of the People’s Counsel for the District of Columbia is hosting it's FALL 2009 ENERGY EFFICIENCY EXPO!

When: Saturday, November 14, 2009,
10:00 a.m. to 4:00 p.m.
Where: Walter E. Washington Convention Center, Rooms 146 A, B, & C
801 Mount Vernon Place, NW, Washington, DC
Click Here for More Information

It's a great place to get the latest and greatest tips and tools for going green!

Feeling Nosy about DC? VA? MD?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across this week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!)

Funny - How to Buy a Bank Owned Property

Feeling Nosy about DC? VA? MD?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across this week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!)

Hot NEW Price in Arlington!

Open House: 1600 N Oak Street, Unit 1553, Silver Spring, MD

Hot NEW price: $475,000

Open Sunday 10/18 2-4 PM

Move right into this immaculate two bedroom, two bath condo! Lovingly maintained and thoughtfully updated, this spacious unit has all the features you could want: fabulous location (moments to the Rosslyn METRO, as well as to the many dining and shopping opportunities of Courthouse/Clarendon and Georgetown); two master suites with private bathrooms; all appliances less than five years old; washer and dryer in the unit; lots of closet space (and additional storage in the building); a high floor with great light; an all weather balcony; a separate dining area; and ENCLOSED PARKING! Additionally, the full service building offers amenities galore: pool, tennis courts, and upgraded gym facilities; 24 hour security; and dry cleaning and convenience store located on premises.

Feeling Nosy about DC? VA? MD?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across this week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!)

Exciting New Rental Property

New Rental: 1954 Columbia Rd Unit #411 NW Washington, D.C.
Offered at: $2,600

Spread out in this immaculate 2 Bedroom and 2 Bath with a den. Updated kitchen with granite counters and stainless steel appliances that opens to a spacious living room. Hardwoods throughout plus lots of light! Classic Kalorama building with front desk concierge and stunning roof deck. Walk just 5 blocks to Dupont Circle or 8 blocks to U St Metro! Available November 1st, 2009. Section 8 welcome.

Feeling Nosy about DC? VA? MD?

Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across this week.

Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?

If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!)

Fabulous New Listings

New Listing: 863 Adrian St SE Washington, DC
Offered at: $179,000

Welcome home to this immaculately maintained two-bedroom townhome on a quiet, tree lined street near Fort Dupont Park-a 376 acre wooded park. This light,bright home features central air-conditioning,new windows,and a finished basement with high ceilings and tons of extra storage. Large fenced in back yard. NOT a short sale NOT a foreclosure! Real owner who will respond quickly! Move-in Ready!



Open House: 1220 Blair Mill Rd #904 Silver Spring, MD
Offered at: $349,000
Open Sunday 10/04 1-3 PM

The Mica Condominium: This spacious 2 bedroom/1 bathroom condo features handsome hardwoods, an upscale kitchen with stainless-steel appliances and granite countertops, stunning views, and washer/dryer in the unit. One garage parking spot conveys. The Mica's amenities include an outdoor swimming pool, an updated gym, and a media room. Short distance from METRO. Pets allowed. Condo fee includes all electric, gas, and water!