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!)
Thursday, January 31, 2008
Strange and Funny Things Do Happen in Real Estate!
There is so much negative news about real estate these days, sometimes it helps to hear some random funny stories about our business! Here is the case of the missing key:
On Tuesday night I was showing some clients an investment property in Ledroit Park for a second time. (Click Here to learn more about beautiful Ledroit Park). The property has 2 units. The upstairs unit has 3 bedrooms. The first time we saw the upstairs unit over the weekend we noticed that there was one bedroom that was locked and none of the keys in the lockbox would work. Before my client would move forward they wanted to see inside that room – seems logical to me!
I called the listing agent and asked her how I could get my client into the randomly locked room. She tells me that someone is “sorta” living in that room, but he isn’t a tenant just a friend of the seller. How someone “sorta” lives in a room is not clear! She also tells me that there is a key to that room “wrapped in a tissue and stuffed under the carpet on the fifth step” in the building.
My clients, a contractor and I, all in our nice work clothes, started crawling up and down the stairs trying to peel up the nasty carpet and find this little tissue with the key for the third bedroom. When it became clear we weren’t going to find it I called the listing agent back who was a little embarrassed. She quickly went into action and called the man who is “sorta” living in the room to find out where the key was located. She got the man on the phone line with me who told me to go to the kitchen and open the dishwasher, then open the plastic flap for the detergent – eureka, there is the little tissue with the key. It was definitely a strange moment that got several chuckles from everyone there!
As always, if you are thinking of buying or selling please do not hesitate to contact me at Michael@RealAstute.com or 202-369-9821.
On Tuesday night I was showing some clients an investment property in Ledroit Park for a second time. (Click Here to learn more about beautiful Ledroit Park). The property has 2 units. The upstairs unit has 3 bedrooms. The first time we saw the upstairs unit over the weekend we noticed that there was one bedroom that was locked and none of the keys in the lockbox would work. Before my client would move forward they wanted to see inside that room – seems logical to me!
I called the listing agent and asked her how I could get my client into the randomly locked room. She tells me that someone is “sorta” living in that room, but he isn’t a tenant just a friend of the seller. How someone “sorta” lives in a room is not clear! She also tells me that there is a key to that room “wrapped in a tissue and stuffed under the carpet on the fifth step” in the building.
My clients, a contractor and I, all in our nice work clothes, started crawling up and down the stairs trying to peel up the nasty carpet and find this little tissue with the key for the third bedroom. When it became clear we weren’t going to find it I called the listing agent back who was a little embarrassed. She quickly went into action and called the man who is “sorta” living in the room to find out where the key was located. She got the man on the phone line with me who told me to go to the kitchen and open the dishwasher, then open the plastic flap for the detergent – eureka, there is the little tissue with the key. It was definitely a strange moment that got several chuckles from everyone there!
As always, if you are thinking of buying or selling please do not hesitate to contact me at Michael@RealAstute.com or 202-369-9821.
Thursday, January 24, 2008
Feeling Nosy about DC? MD? VA?
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!)
Posted by Kevin Shirley & Michael Dillon
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!)
Posted by Kevin Shirley & Michael Dillon
Losing Their Grip on Homeownership
Declining Values Put Many Who Took Out Home-Equity Loans in a Bind That May Worsen
By J.W. Elphinstone
Associated Press
Homeowners started losing hold of their homes years before spiking foreclosures and the housing slump slammed the economy.
Piece by piece, some gave away part of their homes by tapping equity to take cash out to pay for cars, weddings and vacations. Others never owned one brick. During the country's most recent housing boom, the term "homeowner" threatened to become a misnomer as lenders offered 100 percent or more financing to some buyers.
Now, slipping home prices could further erode the value of many Americans' single largest asset, curbing consumer spending and jeopardizing retirement assets.
To read more of this article, click here.
By J.W. Elphinstone
Associated Press
Homeowners started losing hold of their homes years before spiking foreclosures and the housing slump slammed the economy.
Piece by piece, some gave away part of their homes by tapping equity to take cash out to pay for cars, weddings and vacations. Others never owned one brick. During the country's most recent housing boom, the term "homeowner" threatened to become a misnomer as lenders offered 100 percent or more financing to some buyers.
Now, slipping home prices could further erode the value of many Americans' single largest asset, curbing consumer spending and jeopardizing retirement assets.
To read more of this article, click here.
Thursday, January 17, 2008
Feeling Nosy about DC? MD? VA?
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!)
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!)
Wednesday, January 16, 2008
What's Happening in the Columbia Heights/Petworth/U Street Area
Over the weekend I worked with 2 sets of buyers who were looking in the Columbia Heights/Petworth/U Street area. It was the first time I have been in that area showing property in a few months. The construction in that area continues despite all the negative news about real estate. Yes, condos are still being built, just drive down 14th Street NW!
On Saturday I showed a great new condo building to one of my buyers at the corner of 14th and W Streets NW. The condo has the incredibly original name of “1407 W Street Condo” and is located at --you guessed it -- 1407 W Street NW. See a photo gallery of the place here: http://www.homevisit.com/tour/mrisTour.asp?id=29672. The very fancy brochure says, “Boutique 12 unit building in the Hip U Street Corridor.” Prices range from the mid 800’s for the penthouse 2 bedroom unit to the mid 300’s for a 1 bedroom on the sorta-basement level. For an extra 40K you can buy an outside reserved parking place too! My client was very funny, wondering if he bought would he be hip enough for the building!
On Saturday I showed a great new condo building to one of my buyers at the corner of 14th and W Streets NW. The condo has the incredibly original name of “1407 W Street Condo” and is located at --you guessed it -- 1407 W Street NW. See a photo gallery of the place here: http://www.homevisit.com/tour/mrisTour.asp?id=29672. The very fancy brochure says, “Boutique 12 unit building in the Hip U Street Corridor.” Prices range from the mid 800’s for the penthouse 2 bedroom unit to the mid 300’s for a 1 bedroom on the sorta-basement level. For an extra 40K you can buy an outside reserved parking place too! My client was very funny, wondering if he bought would he be hip enough for the building!
Also along the 14th Street NW corridor construction continues at the corner of 14th, Florida and Belmont Streets NW. The large hole has been filled, presumably with the underground parking garage and work has begun above ground. Visit their website at http://solea-dc.com/index.htm for more info. I see that this project is being promoted as a “live and work” condo community, focused on spaces for people who work from home. I like the concept, when the building is ready I will be sure to check it out. My clients on Sunday said that a friend of theirs is working on the project and it is apparently going to be very “green” as well.
Farther north in the Petworth area construction also continues on a long awaited development at the Georgia Avenue-Petworth Metro Station.
You will note on the map that the southern exit is closed until 2008. That is for construction of the Park Place condo and retail development. You can visit their very boring website at http://www.parkplace-dc.com/. I think this development will help kick-start some more development in this area of Petworth. Lately I have noticed a serious increase in foreclosure properties going up for auction in the Petworth area. I believe that during the crazy days of 03-06 too many investor speculators were gobbling up houses in Petworth thinking they were going to be easy flips and now they are going to foreclosure. A few smaller project did come to fruition, like the small condo “New Hampshire House” at 3540 Rock Creek Church Road, NW. According to the MLS, this building has been selling quite well, with an average sales price of $258,571.00 with between 7-10K in seller subsidy. Seems like a good deal for a one bedroom within walking distance of the Metro and completely refurbished. See the pictures here: http://www.homevisit.com/tour/mrisTour.asp?id=26780. If you are looking to learn more about the Petworth community visit the Price of Petworth blog at http://www.princeofpetworth.com/.
As always, if you are interested in buying or selling, let me know! Michael Dillon (Michael@RealAstute.com)
Thursday, January 10, 2008
Feeling Nosy about DC? MD? VA?
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!)
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!)
Wednesday, January 09, 2008
Important Tax Changes Effective January 1, 2008
MARYLAND:
Starting January 1, Maryland property owners must now apply to continue receiving the Homestead Deduction savings on their tax bill for their primary residence. This application must be filed by April 1, 2008. If you haven't already received the forms with your tax assessment notice you will soon. Click Here for the form or better yet, file online at https://sdathtc.resiusa.org/homestead/. For commonly asked questions about the application see http://www.dat.state.md.us/sdatweb/Homestead_app.htm.
MARYLAND: MONTGOMERY COUNTY SPECIFIC:
New Montgomery County Transfer Tax
For Principal Residence property in Montgomery County OVER 500,000 try the following short cut: 3105.00 (covers the first 500,000 taking into consideration the 50K exemption)
Then ADD 10.00 per 1,000. for each 1,000 over 500.
Example: 750,000 will be taxed: 3105.00 plus 2500.00 (250 x 10.00) = 5605.00 recordation tax
New Rate begins March 1.
As to Refinances over 500K they will be taxed in a consistent manner except that there will be no exemption for the 1st 50K. The rule is $6.90 for each new 1000 up to 500K, thereafter $10 per 1000; rounded to the next 500.
VIRGINIA SELLERS:
Virginia State Grantor's Tax will be increased in virtually all of the Northern Virginia jurisdictions from $1.00 per $1,000.00 to $5.00 per $1,000.00.
Friday, January 04, 2008
Feeling Nosy about DC? MD? VA?
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!)
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!)
Thursday, December 27, 2007
Feeling Nosy about DC? MD? VA?
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!)
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!)
Top real estate stories of 2007
Top real estate stories of 2007
Downturn, downturn, downturn
Thursday, December 27, 2007
Inman News
"Downturn," "subprime," "foreclosures" and "credit crunch" are the top phrases that come to mind when looking back at the year in real estate news. 2007 will be remembered as the year the subprime mortgage market collapsed, causing a credit crunch whose effect on the broader economy is still to be determined. The credit crunch has caused everyone to wonder whether the housing market will now play a role in tipping the economy into recession in 2008. But even while housing markets were slowing substantially in some parts, a boom in online activity and innovation in real estate was happening this year. 2007 was marked by an explosion in real estate blogging along with some major media interest in a few newer online business models.
Here are our picks for the most memorable real estate stories of 2007:
1. Subprime market implodes; housing downturn worsens. Subprime lenders started going belly up this year as they lost access to funding in an avalanche of delinquencies and foreclosures on loans that were packaged and sold to Wall Street investors. Each week brought more bad news in the mortgage and financial markets as more lenders and securities firms started reporting losses stemming from delinquencies and foreclosures. Congress has held numerous hearings on plans to help relieve some of the fallout from the resulting credit crunch (see #4 below). This story was by far the most important one for real estate in 2007 and will continue to unravel throughout 2008. (See Inman News special report, "Subprime Tsunami.")
2. Blogging runs deeper in real estate's blood. If 2006 was remembered as the year real estate blogging really took off, then 2007 will be known as the year that real estate bloggers went deeper, passing "sport" status and placing the practice officially under the heading of "business plan." Many milestones converged to make this possible: Those who figured out blogging were gaining more and more business from it; ActiveRain, the social network for real estate professionals centered around blogging, saw its membership skyrocket, reaching 62,000 members by year end; and the slower market may have prompted many more agents to try blogging since its low cost of entry means there's not much to lose. Many of real estate's star bloggers came together for the first Bloggers Connect conference in August. (See Inman News special report on blogging.)
3. Foxtons closes shop. Foxtons, a discount real estate brokerage company that operated in New Jersey, New York and Connecticut, put a notice on its Web site on Oct. 2 announcing its intent to file for voluntary Chapter 11 bankruptcy and place its property listing agreements with another brokerage company. The bankruptcy court judge handling the case later allowed the company to auction off about 4,300 listing agreements in New York and New Jersey to the highest bidders, which included Maplewood Homebuilders LLC and Brooklyn-based Fillmore Real Estate. (See initial Inman News story and follow-up article.)
4. Foreclosure problem worsens; Bush announces rescue plan. The Bush administration on Dec. 6 rolled out a much-anticipated agreement with mortgage lenders and loan servicers to refinance or freeze the interest rates on up to 1.2 million subprime adjustable-rate mortgages for five years. The plan aims to help reduce the impact of the housing downturn on the economy and communities affected by foreclosures. The plan has met criticism from consumer advocates who say it won't help enough borrowers and warnings from some in the lending industry who say a rate freeze could discourage investors from financing future loans. The plan has the backing of the American Securitization Forum, which represents companies that issue mortgage-backed securities, as well as investors, loan servicers and rating agencies. (See Inman News story.)
5. Redfin and "60 Minutes" of fame. CBS' well-known "60 Minutes" television news program tackled the issue of real estate commissions, discounters versus full-service companies, and industry competition in a segment, "Chipping Away at Realtors' Six Percent," that aired May 13, 2007. The segment, which focused heavily on Seattle-based discount brokerage company Redfin, caused an uproar within the industry. After spending a lot of time with the show's producers explaining the Justice Department's ongoing antitrust lawsuit, the National Association of Realtors felt it got the "empty chair" treatment by not being shown interviewed in the segment. Many others said the portrayal of traditional broker and agent fees was biased and unfair. The primetime appearance was a clear win for Redfin, which saw an increase in activity in the days following the show. (See Inman News story. Watch an InmanTV analysis of the report here.)
6. Trulia and Zillow get booted from Prudential Real Estate convention. To the dismay of some of the company's brokers, Prudential Real Estate barred two of the biggest names in online real estate -- Trulia and Zillow -- from exhibiting at the company's annual convention in San Diego in March. Both companies had booked booths at the show and flew executives to Southern California to rub elbows with Prudential brokers, only to be told at the last minute they were not welcome. Trulia co-founder Sami Inkinen reported the incident on the company's blog, saying they were told that their business model was in direct competition with a partnership between Prudential Real Estate Affiliates and Yahoo! Inc. (See Inman News story.)
7. Realogy goes private. An affiliate of private equity firm Apollo Management LP in April completed the purchase of Realogy Corp., about a year after Realogy was formed as an independent publicly traded company that broke off from Cendant Corp. Realogy owns real estate franchise brands Coldwell Banker, Century 21, ERA, Sotheby's, Better Homes & Gardens and Coldwell Banker Commercial. The transaction was valued at about $8.5 billion. (See Inman News story.)
8. Well-known real estate writer dies. Beloved real estate advice columnist Robert Bruss passed away on Sept. 26, leaving a legacy behind that won't soon be replaced. For more than 20 years Bruss wrote weekly real estate columns that appeared in hundreds of newspapers across the country answering complicated real estate questions submitted by his loyal readers. He was the most prolific writer in the industry, a consumer advocate who wrote from experience and expertise honed from his years of real estate investing, teaching and attorney work. His columns were syndicated by Inman News, and the staff here considered him a close friend and mentor. (See Inman News story.)
9. NAR's Gateway project announced. The National Association of Realtors in May revealed a somewhat vague plan to develop a massive national property information database. An advisory group charged with conceptualizing the project said in November that the database would be accessible to varying degrees by consumers, agents, brokers, appraisers and government agencies. This so-called Gateway system could include information on all types of properties, including for-sale-by-owner and agent-represented active for-sale listings. The group has been careful not to call the project a national MLS. NAR's group says industry participants are demanding such a system to expand property information that is at their disposal. The project could hit one snag as NAR's current agreement with Move Inc., which operates Realtor.com, would prevent consumer access to such a database and would have to be restructured. (See Inman News story.)
10. FHA goes modern. FHA modernization was a hot topic throughout 2007 as lawmakers volleyed back and forth on how to bring FHA loan programs more in line with market prices so that more borrowers would be able to use them. Senate lawmakers in December passed legislation that would reduce but not eliminate down-payment requirements, allow for a smaller increase in the maximum-size mortgage eligible for FHA backing, and place a one-year moratorium on a plan to introduce risk-based pricing. The bill would allow the Federal Housing Administration to guarantee loans of $417,000 or more in high-cost areas, the conforming loan limit for loans eligible for repurchase by Fannie Mae and Freddie Mac. The Bush administration supports the modest increases in FHA loan limits put forward by the Senate, advocating raising limits from $362,000 in high-cost areas to $417,000, and from $200,000 in lower-cost areas to $271,000. (See Inman News story.)
Downturn, downturn, downturn
Thursday, December 27, 2007
Inman News
"Downturn," "subprime," "foreclosures" and "credit crunch" are the top phrases that come to mind when looking back at the year in real estate news. 2007 will be remembered as the year the subprime mortgage market collapsed, causing a credit crunch whose effect on the broader economy is still to be determined. The credit crunch has caused everyone to wonder whether the housing market will now play a role in tipping the economy into recession in 2008. But even while housing markets were slowing substantially in some parts, a boom in online activity and innovation in real estate was happening this year. 2007 was marked by an explosion in real estate blogging along with some major media interest in a few newer online business models.
Here are our picks for the most memorable real estate stories of 2007:
1. Subprime market implodes; housing downturn worsens. Subprime lenders started going belly up this year as they lost access to funding in an avalanche of delinquencies and foreclosures on loans that were packaged and sold to Wall Street investors. Each week brought more bad news in the mortgage and financial markets as more lenders and securities firms started reporting losses stemming from delinquencies and foreclosures. Congress has held numerous hearings on plans to help relieve some of the fallout from the resulting credit crunch (see #4 below). This story was by far the most important one for real estate in 2007 and will continue to unravel throughout 2008. (See Inman News special report, "Subprime Tsunami.")
2. Blogging runs deeper in real estate's blood. If 2006 was remembered as the year real estate blogging really took off, then 2007 will be known as the year that real estate bloggers went deeper, passing "sport" status and placing the practice officially under the heading of "business plan." Many milestones converged to make this possible: Those who figured out blogging were gaining more and more business from it; ActiveRain, the social network for real estate professionals centered around blogging, saw its membership skyrocket, reaching 62,000 members by year end; and the slower market may have prompted many more agents to try blogging since its low cost of entry means there's not much to lose. Many of real estate's star bloggers came together for the first Bloggers Connect conference in August. (See Inman News special report on blogging.)
3. Foxtons closes shop. Foxtons, a discount real estate brokerage company that operated in New Jersey, New York and Connecticut, put a notice on its Web site on Oct. 2 announcing its intent to file for voluntary Chapter 11 bankruptcy and place its property listing agreements with another brokerage company. The bankruptcy court judge handling the case later allowed the company to auction off about 4,300 listing agreements in New York and New Jersey to the highest bidders, which included Maplewood Homebuilders LLC and Brooklyn-based Fillmore Real Estate. (See initial Inman News story and follow-up article.)
4. Foreclosure problem worsens; Bush announces rescue plan. The Bush administration on Dec. 6 rolled out a much-anticipated agreement with mortgage lenders and loan servicers to refinance or freeze the interest rates on up to 1.2 million subprime adjustable-rate mortgages for five years. The plan aims to help reduce the impact of the housing downturn on the economy and communities affected by foreclosures. The plan has met criticism from consumer advocates who say it won't help enough borrowers and warnings from some in the lending industry who say a rate freeze could discourage investors from financing future loans. The plan has the backing of the American Securitization Forum, which represents companies that issue mortgage-backed securities, as well as investors, loan servicers and rating agencies. (See Inman News story.)
5. Redfin and "60 Minutes" of fame. CBS' well-known "60 Minutes" television news program tackled the issue of real estate commissions, discounters versus full-service companies, and industry competition in a segment, "Chipping Away at Realtors' Six Percent," that aired May 13, 2007. The segment, which focused heavily on Seattle-based discount brokerage company Redfin, caused an uproar within the industry. After spending a lot of time with the show's producers explaining the Justice Department's ongoing antitrust lawsuit, the National Association of Realtors felt it got the "empty chair" treatment by not being shown interviewed in the segment. Many others said the portrayal of traditional broker and agent fees was biased and unfair. The primetime appearance was a clear win for Redfin, which saw an increase in activity in the days following the show. (See Inman News story. Watch an InmanTV analysis of the report here.)
6. Trulia and Zillow get booted from Prudential Real Estate convention. To the dismay of some of the company's brokers, Prudential Real Estate barred two of the biggest names in online real estate -- Trulia and Zillow -- from exhibiting at the company's annual convention in San Diego in March. Both companies had booked booths at the show and flew executives to Southern California to rub elbows with Prudential brokers, only to be told at the last minute they were not welcome. Trulia co-founder Sami Inkinen reported the incident on the company's blog, saying they were told that their business model was in direct competition with a partnership between Prudential Real Estate Affiliates and Yahoo! Inc. (See Inman News story.)
7. Realogy goes private. An affiliate of private equity firm Apollo Management LP in April completed the purchase of Realogy Corp., about a year after Realogy was formed as an independent publicly traded company that broke off from Cendant Corp. Realogy owns real estate franchise brands Coldwell Banker, Century 21, ERA, Sotheby's, Better Homes & Gardens and Coldwell Banker Commercial. The transaction was valued at about $8.5 billion. (See Inman News story.)
8. Well-known real estate writer dies. Beloved real estate advice columnist Robert Bruss passed away on Sept. 26, leaving a legacy behind that won't soon be replaced. For more than 20 years Bruss wrote weekly real estate columns that appeared in hundreds of newspapers across the country answering complicated real estate questions submitted by his loyal readers. He was the most prolific writer in the industry, a consumer advocate who wrote from experience and expertise honed from his years of real estate investing, teaching and attorney work. His columns were syndicated by Inman News, and the staff here considered him a close friend and mentor. (See Inman News story.)
9. NAR's Gateway project announced. The National Association of Realtors in May revealed a somewhat vague plan to develop a massive national property information database. An advisory group charged with conceptualizing the project said in November that the database would be accessible to varying degrees by consumers, agents, brokers, appraisers and government agencies. This so-called Gateway system could include information on all types of properties, including for-sale-by-owner and agent-represented active for-sale listings. The group has been careful not to call the project a national MLS. NAR's group says industry participants are demanding such a system to expand property information that is at their disposal. The project could hit one snag as NAR's current agreement with Move Inc., which operates Realtor.com, would prevent consumer access to such a database and would have to be restructured. (See Inman News story.)
10. FHA goes modern. FHA modernization was a hot topic throughout 2007 as lawmakers volleyed back and forth on how to bring FHA loan programs more in line with market prices so that more borrowers would be able to use them. Senate lawmakers in December passed legislation that would reduce but not eliminate down-payment requirements, allow for a smaller increase in the maximum-size mortgage eligible for FHA backing, and place a one-year moratorium on a plan to introduce risk-based pricing. The bill would allow the Federal Housing Administration to guarantee loans of $417,000 or more in high-cost areas, the conforming loan limit for loans eligible for repurchase by Fannie Mae and Freddie Mac. The Bush administration supports the modest increases in FHA loan limits put forward by the Senate, advocating raising limits from $362,000 in high-cost areas to $417,000, and from $200,000 in lower-cost areas to $271,000. (See Inman News story.)
Thursday, December 20, 2007
Feeling Nosy about DC? MD? VA?
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!)
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!)
Fed Proposes New Restrictions on Subprime, Alt-A Loans
Sen. Dodd says legislation still needed to rein in abusive practices
Tuesday, December 18, 2007
By Matt CarterInman News
The Federal Reserve proposes imposing some restrictions that currently apply only to very costly loans -- including a ban on most prepayment penalties -- to subprime and some Alt-A loans.
The product of a series of hearings, the proposed changes in how the Fed implements the Truth In Lending Act, or TILA, are intended to protect consumers from unfair or deceptive home mortgage lending and advertising practices.
While the proposed regulations drew a mixed reaction from lenders, Connecticut Democrat Sen. Chris Dodd issued a statement slamming them as "deeply disappointing," and "a clear signal that legislation is necessary to help protect homeowners from abusive and predatory lending practices."
The proposed amendments to Regulation Z, which spells out the Fed's implementation of TILA, would require lenders making "higher-priced" mortgage loans to:
Verify a borrower's ability to repay a loan with an adjustable-rate mortgage after a payment reset, including property taxes, homeowners insurance and other expenses.
Document income and assets, using a borrower's Internal Revenue Service Form W-2, tax returns, payroll receipts, financial institution records, or other third-party documents that provide reasonably reliable evidence of the consumer's income and assets.
Establish escrow accounts for taxes and insurance, which borrowers could opt out of after one year.
The new regulations would also ban prepayment penalties on higher-priced loans unless the consumer's debt-to-income ratio does not exceed 50 percent of verified monthly gross income, and the source of the prepayment funds is not a refinancing by the same lender or its affiliate.
Only higher-priced mortgage loans on a primary residence -- including home-purchase loans, refinancings and home-equity loans -- would be subject to those provisions in the new regulations. Mortgages on vacation properties, open-end home-equity plans, reverse mortgages, or construction-only loans would be exempt, and loans to investors are, for the most part, not covered by TILA.
Higher-priced loans would be defined as first-lien mortgages with an annual percentage rate (APR) of 3 percent or more above the yield on comparable Treasury notes, or 5 percent for second mortgages.
In addition to extending some provisions of the Home Ownership and Equity Protection Act (HOEPA) to subprime loans, the proposed regulations would also create some additional new requirements for all loans, including:
Written agreements between borrowers and mortgage brokers collecting yield spread premiums, before the consumer applies for the loan or pays any fees.
Prohibitions on coercing appraisers to inflate property valuations.
New requirements for loan servicers, including crediting consumers' loan payments to the date of receipt and providing a schedule of fees to consumers upon request.
Dodd criticized the proposed language requiring lenders to evaluate a borrower's ability to repay a loan difficult to enforce, because regulators would have to show a "pattern and practice" of violations. The Connecticut lawmaker called the language a "significant step backwards" from existing guidance on the topic from regulators.
He said allowing borrowers to opt out of escrow accounts after one year could provide unscrupulous lenders a "tool to 'flip' borrowers into another, wealth-stripping refinance."
While the proposed measures don't go as far as some consumer groups and lawmakers had wanted, they represent a significant departure for the Fed, which has come under fire from critics who say it has failed to use its authority under the Truth in Lending Act to prohibit abusive lending practices during the boom.
Lenders have argued against stricter regulations, saying market forces have put an end to many of the most egregious practices and that new restrictions could worsen the credit crunch.
"There is much to commend and much to worry about in the proposed rules," the American Bankers Association said in a statement on the proposed Regulation Z changes.
While the ABA welcomed "uniform, national standards" that will apply to all lenders and target abuses by unregulated or lightly regulated nonbank lenders, the group warned that "replacing important lending flexibility with rigid formulas might also limit lending to some creditworthy borrowers."
Some consumer groups wanted the Fed to simply lower the thresholds that trigger existing HOEPA requirements. Both first-lien loans with an annual percentage rate (APR) more than 8 percent above the rate on Treasury securities of comparable maturity and second-lien loans with APRs more than 10 percent higher are covered by HOEPA.
Among the most feared provisions of HOEPA are the rights it gives borrowers to sue lenders who violate its requirements, allowing them to recover statutory and actual damages, court costs and attorneys' fees. Borrowers also have up to three years to cancel a loan that is subject to HOEPA if they can show the requirements weren't followed.
A bill introduced Dec. 12 by Sen. Dodd, The Homeownership Preservation and Protection Act, would lower HOEPA thresholds to a range of 6 to 10 percent for first mortgages, and 8 to 12 percent for seconds. Loans in which total points and fees exceed 5 percent would also trigger HOEPA requirements under Dodd's bill.
Opponents have warned that lowering HOEPA thresholds to cover subprime loans could discourage investors from buying mortgage-backed securities on Wall Street, further reducing the flow of investment capital into mortgage lending and increasing the cost of borrowing for home buyers.
"Any federal law that begins with amendments to existing HOEPA likely will be freighted with HOEPA's effects," industry lawyer and lobbyist Donald Lampe told members of the House Financial Services Committee in May. "Hardly anyone … in the secondary market funds or purchases HOEPA loans."
Instead of lowering the threshold for triggering HOEPA requirements, the Fed proposes to create a new class of higher-priced loans that would be subject to new regulations.
Lenders who followed the rule that they verify and document a borrower's ability to repay a loan would be granted "safe harbor" from lawsuits if they had a reasonable basis to believe that borrower would be able to make loan payments for at least seven years.
The proposed definition of a higher-priced loan -- 3 percent above comparable Treasury notes for first mortgages, or 5 percent for seconds -- is already used to collect data under the Home Mortgage Disclosure Act.
The definition is intended to "capture the subprime market, but generally exclude the prime market," staff members of the Fed's Division of Consumer and Community Affairs said in a Dec. 12th memo summarizing the proposed changes. There is no uniform definition of prime and subprime markets, however, the memo noted, and the proposed thresholds "would capture at least the higher-priced portion of the alt-A market."
The Fed is requesting comment on whether different thresholds, such as 4 percent for first-lien loans, "would better meet the objective of covering the subprime market and excluding the prime market," and on ways to "limit creditor circumvention" of the thresholds.
The lending industry has argued that prepayment penalties can benefit borrowers by allowing lenders to charge lower interest rates.
But critics say many consumers aren't very good at factoring in their potential cost into the price of a loan, which is not included in the annual percentage rate. Studies have shown most borrowers with adjustable-rate mortgage (ARM) loans seek to refinance before their interest rates reset, and prepayment penalties can decrease a borrower's home equity and increase their loan balance when financed into a new loan.
The new tougher restrictions on prepayment penalties "should allow the vast majority of subprime borrowers to refinance their mortgages without paying a prepayment penalty before the first payment increase takes effect," Fed staff members said in a memo to the Board of Governors.
Dodd questioned the adequacy of provisions intended to limit the use of prepayment penalties and yield-spread premiums, which he said are used to put borrowers in more expensive loans than they qualify for.
All in all, the proposal "raises serious questions as to whether the Federal Reserve is the appropriate institution to house consumer protection functions," Dodd said in a statement. "This is a clear signal that legislation is necessary to help protect homeowners from abusive and predatory lending practices."
The House of Representatives on Nov. 15 approved a bill, HR 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007, which would limit prepayment penalties, set minimum standards for all mortgages that lenders assess a borrower's ability to repay, and expand HOEPA restrictions.
***
Send tips or a Letter to the Editor to matt@inman.com, or call (510) 658-9252, ext. 150.
Copyright 2007 Inman News
Tuesday, December 18, 2007
By Matt CarterInman News
The Federal Reserve proposes imposing some restrictions that currently apply only to very costly loans -- including a ban on most prepayment penalties -- to subprime and some Alt-A loans.
The product of a series of hearings, the proposed changes in how the Fed implements the Truth In Lending Act, or TILA, are intended to protect consumers from unfair or deceptive home mortgage lending and advertising practices.
While the proposed regulations drew a mixed reaction from lenders, Connecticut Democrat Sen. Chris Dodd issued a statement slamming them as "deeply disappointing," and "a clear signal that legislation is necessary to help protect homeowners from abusive and predatory lending practices."
The proposed amendments to Regulation Z, which spells out the Fed's implementation of TILA, would require lenders making "higher-priced" mortgage loans to:
Verify a borrower's ability to repay a loan with an adjustable-rate mortgage after a payment reset, including property taxes, homeowners insurance and other expenses.
Document income and assets, using a borrower's Internal Revenue Service Form W-2, tax returns, payroll receipts, financial institution records, or other third-party documents that provide reasonably reliable evidence of the consumer's income and assets.
Establish escrow accounts for taxes and insurance, which borrowers could opt out of after one year.
The new regulations would also ban prepayment penalties on higher-priced loans unless the consumer's debt-to-income ratio does not exceed 50 percent of verified monthly gross income, and the source of the prepayment funds is not a refinancing by the same lender or its affiliate.
Only higher-priced mortgage loans on a primary residence -- including home-purchase loans, refinancings and home-equity loans -- would be subject to those provisions in the new regulations. Mortgages on vacation properties, open-end home-equity plans, reverse mortgages, or construction-only loans would be exempt, and loans to investors are, for the most part, not covered by TILA.
Higher-priced loans would be defined as first-lien mortgages with an annual percentage rate (APR) of 3 percent or more above the yield on comparable Treasury notes, or 5 percent for second mortgages.
In addition to extending some provisions of the Home Ownership and Equity Protection Act (HOEPA) to subprime loans, the proposed regulations would also create some additional new requirements for all loans, including:
Written agreements between borrowers and mortgage brokers collecting yield spread premiums, before the consumer applies for the loan or pays any fees.
Prohibitions on coercing appraisers to inflate property valuations.
New requirements for loan servicers, including crediting consumers' loan payments to the date of receipt and providing a schedule of fees to consumers upon request.
Dodd criticized the proposed language requiring lenders to evaluate a borrower's ability to repay a loan difficult to enforce, because regulators would have to show a "pattern and practice" of violations. The Connecticut lawmaker called the language a "significant step backwards" from existing guidance on the topic from regulators.
He said allowing borrowers to opt out of escrow accounts after one year could provide unscrupulous lenders a "tool to 'flip' borrowers into another, wealth-stripping refinance."
While the proposed measures don't go as far as some consumer groups and lawmakers had wanted, they represent a significant departure for the Fed, which has come under fire from critics who say it has failed to use its authority under the Truth in Lending Act to prohibit abusive lending practices during the boom.
Lenders have argued against stricter regulations, saying market forces have put an end to many of the most egregious practices and that new restrictions could worsen the credit crunch.
"There is much to commend and much to worry about in the proposed rules," the American Bankers Association said in a statement on the proposed Regulation Z changes.
While the ABA welcomed "uniform, national standards" that will apply to all lenders and target abuses by unregulated or lightly regulated nonbank lenders, the group warned that "replacing important lending flexibility with rigid formulas might also limit lending to some creditworthy borrowers."
Some consumer groups wanted the Fed to simply lower the thresholds that trigger existing HOEPA requirements. Both first-lien loans with an annual percentage rate (APR) more than 8 percent above the rate on Treasury securities of comparable maturity and second-lien loans with APRs more than 10 percent higher are covered by HOEPA.
Among the most feared provisions of HOEPA are the rights it gives borrowers to sue lenders who violate its requirements, allowing them to recover statutory and actual damages, court costs and attorneys' fees. Borrowers also have up to three years to cancel a loan that is subject to HOEPA if they can show the requirements weren't followed.
A bill introduced Dec. 12 by Sen. Dodd, The Homeownership Preservation and Protection Act, would lower HOEPA thresholds to a range of 6 to 10 percent for first mortgages, and 8 to 12 percent for seconds. Loans in which total points and fees exceed 5 percent would also trigger HOEPA requirements under Dodd's bill.
Opponents have warned that lowering HOEPA thresholds to cover subprime loans could discourage investors from buying mortgage-backed securities on Wall Street, further reducing the flow of investment capital into mortgage lending and increasing the cost of borrowing for home buyers.
"Any federal law that begins with amendments to existing HOEPA likely will be freighted with HOEPA's effects," industry lawyer and lobbyist Donald Lampe told members of the House Financial Services Committee in May. "Hardly anyone … in the secondary market funds or purchases HOEPA loans."
Instead of lowering the threshold for triggering HOEPA requirements, the Fed proposes to create a new class of higher-priced loans that would be subject to new regulations.
Lenders who followed the rule that they verify and document a borrower's ability to repay a loan would be granted "safe harbor" from lawsuits if they had a reasonable basis to believe that borrower would be able to make loan payments for at least seven years.
The proposed definition of a higher-priced loan -- 3 percent above comparable Treasury notes for first mortgages, or 5 percent for seconds -- is already used to collect data under the Home Mortgage Disclosure Act.
The definition is intended to "capture the subprime market, but generally exclude the prime market," staff members of the Fed's Division of Consumer and Community Affairs said in a Dec. 12th memo summarizing the proposed changes. There is no uniform definition of prime and subprime markets, however, the memo noted, and the proposed thresholds "would capture at least the higher-priced portion of the alt-A market."
The Fed is requesting comment on whether different thresholds, such as 4 percent for first-lien loans, "would better meet the objective of covering the subprime market and excluding the prime market," and on ways to "limit creditor circumvention" of the thresholds.
The lending industry has argued that prepayment penalties can benefit borrowers by allowing lenders to charge lower interest rates.
But critics say many consumers aren't very good at factoring in their potential cost into the price of a loan, which is not included in the annual percentage rate. Studies have shown most borrowers with adjustable-rate mortgage (ARM) loans seek to refinance before their interest rates reset, and prepayment penalties can decrease a borrower's home equity and increase their loan balance when financed into a new loan.
The new tougher restrictions on prepayment penalties "should allow the vast majority of subprime borrowers to refinance their mortgages without paying a prepayment penalty before the first payment increase takes effect," Fed staff members said in a memo to the Board of Governors.
Dodd questioned the adequacy of provisions intended to limit the use of prepayment penalties and yield-spread premiums, which he said are used to put borrowers in more expensive loans than they qualify for.
All in all, the proposal "raises serious questions as to whether the Federal Reserve is the appropriate institution to house consumer protection functions," Dodd said in a statement. "This is a clear signal that legislation is necessary to help protect homeowners from abusive and predatory lending practices."
The House of Representatives on Nov. 15 approved a bill, HR 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007, which would limit prepayment penalties, set minimum standards for all mortgages that lenders assess a borrower's ability to repay, and expand HOEPA restrictions.
***
Send tips or a Letter to the Editor to matt@inman.com, or call (510) 658-9252, ext. 150.
Copyright 2007 Inman News
Friday, December 14, 2007
Feeling Nosy about DC? MD? VA?
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!)
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!)
Understand Your Credit
Buyers often ask our team how their credit score will affect their home purchasing power, here is a quick lesson from the Realtor.com website:
Understand Your Credit
By John Adams Homestore.com
Thinking about buying a house? Then think about your credit history...the folks who lend money do!
How well you have handled your credit obligations in the past is of utmost importance to lenders today. The good news is that this information, for the most part, is available to you.
Your credit history is maintained by three different private companies called credit reporting agencies: Equifax, TransUnion and Experian. You can order your report by phone and charge it to your major credit card if you like. It usually takes about a week to arrive. Or you can order your report online and view it within seconds.
It's a good idea to get a copy of all three reports, because if an error exists on even one of the reports, it may negatively affect your chances of getting the loan you want. Your credit report lists all the consumer credit that has been extended to you over the past seven years. It will show what your highest balance has been and what your current balance was on the date last reported by the creditor. It will also show how many payments you made on time and how many late payments were late. Late payments are grouped into categories showing how late you were. For example, if your credit card payment was over 30 days late one time, it might not be considered too serious. But if payments were over 60 days late four times, over 120 days late two times and over 180 days late one time, you have had a serious problem. That problem is going to impact your ability to borrow money.
It just makes sense to find out about your credit and correct any errors now. Regardless of how many credit problems you have had in the past, there are two good points to remember.
First, negative credit information can be reported in your credit file for only seven years. After that, it drops out and cannot even be considered. The one exception is bankruptcy, which can be reported for 10 years. But after that you start with essentially a clean slate.
Second, lenders are much more concerned about how you have handled your credit recently than with what happened several years ago. Even if you have had a bankruptcy, if you have kept your nose clean and paid your bills on time since then, it is possible you could qualify for a loan after as little as two or three years.
One of the best developments in the world of lending has been risk-based pricing. That's a five dollar term for the ability of lenders to offer higher priced loans to borrowers based on their demonstrated ability to repay. In other words, even if you have slightly fractured credit, you can still likely get a loan. It just may cost you a little more.
Understand Your Credit
By John Adams Homestore.com
Thinking about buying a house? Then think about your credit history...the folks who lend money do!
How well you have handled your credit obligations in the past is of utmost importance to lenders today. The good news is that this information, for the most part, is available to you.
Your credit history is maintained by three different private companies called credit reporting agencies: Equifax, TransUnion and Experian. You can order your report by phone and charge it to your major credit card if you like. It usually takes about a week to arrive. Or you can order your report online and view it within seconds.
It's a good idea to get a copy of all three reports, because if an error exists on even one of the reports, it may negatively affect your chances of getting the loan you want. Your credit report lists all the consumer credit that has been extended to you over the past seven years. It will show what your highest balance has been and what your current balance was on the date last reported by the creditor. It will also show how many payments you made on time and how many late payments were late. Late payments are grouped into categories showing how late you were. For example, if your credit card payment was over 30 days late one time, it might not be considered too serious. But if payments were over 60 days late four times, over 120 days late two times and over 180 days late one time, you have had a serious problem. That problem is going to impact your ability to borrow money.
It just makes sense to find out about your credit and correct any errors now. Regardless of how many credit problems you have had in the past, there are two good points to remember.
First, negative credit information can be reported in your credit file for only seven years. After that, it drops out and cannot even be considered. The one exception is bankruptcy, which can be reported for 10 years. But after that you start with essentially a clean slate.
Second, lenders are much more concerned about how you have handled your credit recently than with what happened several years ago. Even if you have had a bankruptcy, if you have kept your nose clean and paid your bills on time since then, it is possible you could qualify for a loan after as little as two or three years.
One of the best developments in the world of lending has been risk-based pricing. That's a five dollar term for the ability of lenders to offer higher priced loans to borrowers based on their demonstrated ability to repay. In other words, even if you have slightly fractured credit, you can still likely get a loan. It just may cost you a little more.
Friday, December 07, 2007
Feeling Nosy about DC? MD? VA?
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 that 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!
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!
Thursday, November 29, 2007
Feeling Nosy about DC? MD? VA?
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 that 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!
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!
RealAstute.com Team Member Earns Esteemed Realtor Certification
For Immediate Release
Contact: Kevin Shirley (Kevin@RealAstute.com)
RealAstute.com Home Team Member Earns
REALTOR e-PRO® Certification
November 26, 2007 – Michael Dillon, the top producing agent at Long and Foster’s Capitol Hill Office and the RealAstute.com Home Team has successfully completed the REALTOR e-PRO course to become one of a select few real estate professionals to earn the prestigious certification offered through the National Association of REALTORS.® Kevin Reid Shirley, Michael’s business partner on the RealAstute.com Home Team has already been an e-PRO for several years.
The REALTOR e-PRO certification course is an educational program unlike any other professional certification or designation course available, comprehensive and interactive. It is specifically designed to provide real estate professionals with the technology tools needed to assist consumers in the purchase or sale of a home.
With more than 70% of consumers beginning their real estate research on the Internet, e-PRO certified agents have the experience and expertise to meet the demands of today’s buyer and seller.
“The real estate industry has undergone a fundamental change over the past several years,” said Michael Dillon of Long and Foster. “A majority of consumers are taking the time to conduct their own research prior to contacting an agent. In turn, real estate professionals must be knowledgeable of how technology can assist them in serving the needs of the buying and selling public.”
The exclusive REALTOR e-PRO certification course is presented entirely online and certifies real estate agents and brokers as Internet professionals. Because of its innovative design, students are able to complete the course at their own pace, when and where they want, via any Internet connection. The course is designed to help REALTORS stay at the leading edge of technology and identify, evaluate and implement new Internet business models.
Once completed, the e-PRO certified real estate professional joins the ranks of a special community of highly skilled and continuously trained professionals who provide high quality and innovative online-based real estate services. Consumers can identify the e-PRO through the exclusive e-PRO Internet Professional logo.
Both the content and the delivery platform were created by San Diego-based technology company InternetCrusade®. The course instructs participants in the professional use of e-mail, the development of an interactive Web site, and the use of online research tools. Graduates use the skills they've acquired to provide clients information on properties for sale, local communities, and the local real estate market.
For more information or help with your personal real estate needs, please e-mail Michael Dillon at Michael@RealAstute.com, call him at 202-369-9821 or visit the RealAstute.com Home Team website at http://www.realastute.com/.
Contact: Kevin Shirley (Kevin@RealAstute.com)
RealAstute.com Home Team Member Earns
REALTOR e-PRO® Certification
November 26, 2007 – Michael Dillon, the top producing agent at Long and Foster’s Capitol Hill Office and the RealAstute.com Home Team has successfully completed the REALTOR e-PRO course to become one of a select few real estate professionals to earn the prestigious certification offered through the National Association of REALTORS.® Kevin Reid Shirley, Michael’s business partner on the RealAstute.com Home Team has already been an e-PRO for several years.
The REALTOR e-PRO certification course is an educational program unlike any other professional certification or designation course available, comprehensive and interactive. It is specifically designed to provide real estate professionals with the technology tools needed to assist consumers in the purchase or sale of a home.
With more than 70% of consumers beginning their real estate research on the Internet, e-PRO certified agents have the experience and expertise to meet the demands of today’s buyer and seller.
“The real estate industry has undergone a fundamental change over the past several years,” said Michael Dillon of Long and Foster. “A majority of consumers are taking the time to conduct their own research prior to contacting an agent. In turn, real estate professionals must be knowledgeable of how technology can assist them in serving the needs of the buying and selling public.”
The exclusive REALTOR e-PRO certification course is presented entirely online and certifies real estate agents and brokers as Internet professionals. Because of its innovative design, students are able to complete the course at their own pace, when and where they want, via any Internet connection. The course is designed to help REALTORS stay at the leading edge of technology and identify, evaluate and implement new Internet business models.
Once completed, the e-PRO certified real estate professional joins the ranks of a special community of highly skilled and continuously trained professionals who provide high quality and innovative online-based real estate services. Consumers can identify the e-PRO through the exclusive e-PRO Internet Professional logo.
Both the content and the delivery platform were created by San Diego-based technology company InternetCrusade®. The course instructs participants in the professional use of e-mail, the development of an interactive Web site, and the use of online research tools. Graduates use the skills they've acquired to provide clients information on properties for sale, local communities, and the local real estate market.
For more information or help with your personal real estate needs, please e-mail Michael Dillon at Michael@RealAstute.com, call him at 202-369-9821 or visit the RealAstute.com Home Team website at http://www.realastute.com/.
Thursday, November 15, 2007
Feeling Nosy about DC? MD? VA?
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 that 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!
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!
Michael Attends Condo Auction in DC
On Tuesday afternoon I attended an auction for 3 condo units in NE DC’s Deanwood neighborhood. I am familiar with the Deanwood neighborhood because I already own some investment property there. I think it’s a smart investment because of the convenience to Capitol Hill and the rest of the city, with easy access both by road and by the Deanwood Metro Station. There is talk of a trolley or light rail eventually connecting Deanwood both to Benning Road as well as the retail and historic areas of Anacostia. The city’s Office of Planning has been working this year to create a comprehensive plan for Deanwood. In late September they had their latest public meeting about opportunities in Deanwood and other parts of Ward 7. Click here to see the encouraging development report.
The auction on Tuesday was conducted by Fox Residential Auctions LLC and took place on the steps of the condo building. Fox Residential Auctions LLC has a strategic partnership with Long and Foster in the Baltimore Region. They conduct residential and commercial property auctions primarily in Maryland, but also in the District and Pennsylvania. You can see both past and future auctions and learn about their auction process at their website at: http://www.fox-residential.com/.
Some people believe that property auctions are just for foreclosed properties or tax sale properties when in fact anyone can choose to sell their property at auction. In the case of these 3 condo units I was told that the owner had decided he was tired of waiting on buyers in this market and wanted to finish selling off the final units in the project before the end of the year.
The condo buildings where this auction took place were at 4200 and 4202 Grant Street, NE. These condo buildings have a total of 12 units, 6 units in each building. They have been sold over the last two years for between $154,000 and $170,000. They are each 1 bedroom units around 500 square feet completely renovated with central heat and air, granite counters, Berber carpet and washer/dryers in the unit.
Property auctions come in many different shapes and sizes, for instance an auction can have a “reserve” number or they can be “absolute” auctions. When an auction has a reserve number the seller has established a minimum dollar amount they will take for the property. If that amount is not reached during the auction the auctioneer does not have to sell the property to the highest bidder. For example, if a seller asks an auctioneer to sell a house valued at $500,000 he or she may set a “reserve” of $400,000 in order to insure a certain profit margin at the sale. If the highest bidder only reaches $380K the seller can tell the auctioneer to refuse the sale.
In an absolute auction, there is no reserve meaning the property will absolutely be sold to the highest bidder, no matter how high or low the winning bid may be. This is a risk for the seller and a huge advantage for the buyer. At the auction on Tuesday 2 of the condo units were being sold with a reserve number, but one of them was being sold absolute. I am guessing that the auctioneer encouraged the seller to sell one unit in absolute as a come-on to get people to the auction, assuming they would bid that unit up to a similar price as the reserve units.
I was surprised that they decided to start the bidding on the absolute unit. After everyone who was interested in bidding had proven they had $5000 in cash or certified funds they were issued a bid card and asked to gather in front of the building for the bidding. If you haven’t been to an auction like this before, I would highly recommend attending one. Even if you aren’t interested in buying the property the people watching is terrific. There must have been nearly 50 people hanging around by the time the auction started. Of those gathered there were less than 10 folks with bid cars participating in the auction. There were neighbors, police, investors, friends and even a homeless man who tried to bid at one point by raising his brown bag 40 oz beer as if it were a bid card!
I was there to try and purchase the unit being sold in absolute for between $50K and $80K. My investment partners and I decided that was a good range that would allow us to make a slight profit if we rented the unit out and probably wait a few years to build equity and for the market to perk up a bit before re-selling for a profit. When you go to an auction like this you need to have a concrete number that you will not go above where you will stop bidding. Each investor has a different number they are comfortable bidding up to based on their own investment strategy. If you are ever interested in pursuing this type of investment please let me know (Michael@RealAstute.com) and I would be happy to help you run comps and help you determine the right number for you and your investment.
The auctioneer started the bidding for the absolute unit at $175K. You could hear the crickets chirp. I actually chuckled when he said that number. Finally someone in the crowd hollered $10,000. The auctioneer laughed, but he had to proceed with that number for the bidding since this was an absolute auction. Needless to say the bidding ran up quickly to $50K, then me and 3 other bidders quickly ran the bids up to $75K at which point I was fairly certain by the lack of bidding that I would be the winning bidder and would be getting a great deal on one of these condos. Sadly, I was mistaken!
Just as the auctioneer prepared to award me the condo for $75K a gentleman just a few feet away took the bid to $77,500. I went to $80K. Then my competition went to $82,500 and like a smart investor I turned to my competition and congratulated him and started walking to my car parked along the side of the building. Even though you can get wrapped up in the bidding you must remember that you have a cap and you don’t want to go over that cap. I knew that my fellow investors trusted my judgment and would be pleased that I didn’t get carried away and pass our cap.
Once we passed my cap I was disappointed but I know there will be many more auctions and opportunities and this one was simply not meant to be. The auctioneer was quite funny and actually called out to me to stay and keep bidding by saying, “You know it’s still a steal at $100K, don’t leave yet.” But it was too late; I pulled off and headed back to the office, with a quick stop at McDonalds for a Big Mac!
If you think you or someone you know, or even a group of investors you want to put together might be interested in learning more about this type of auction I am happy to share my knowledge. My small investment team has successfully purchased property through the annual DC tax sale as well and I am happy to advise my clients on how to navigate that process. Further, there are more and more auctions every week with foreclosed properties being sold at discounted prices. Next Tuesday I am planning to attend one of these foreclosure auctions and I will share what I learn on upcoming blog posts.
Michael Dillon
Michael@RealAstute.com
The auction on Tuesday was conducted by Fox Residential Auctions LLC and took place on the steps of the condo building. Fox Residential Auctions LLC has a strategic partnership with Long and Foster in the Baltimore Region. They conduct residential and commercial property auctions primarily in Maryland, but also in the District and Pennsylvania. You can see both past and future auctions and learn about their auction process at their website at: http://www.fox-residential.com/.
Some people believe that property auctions are just for foreclosed properties or tax sale properties when in fact anyone can choose to sell their property at auction. In the case of these 3 condo units I was told that the owner had decided he was tired of waiting on buyers in this market and wanted to finish selling off the final units in the project before the end of the year.
The condo buildings where this auction took place were at 4200 and 4202 Grant Street, NE. These condo buildings have a total of 12 units, 6 units in each building. They have been sold over the last two years for between $154,000 and $170,000. They are each 1 bedroom units around 500 square feet completely renovated with central heat and air, granite counters, Berber carpet and washer/dryers in the unit.
Property auctions come in many different shapes and sizes, for instance an auction can have a “reserve” number or they can be “absolute” auctions. When an auction has a reserve number the seller has established a minimum dollar amount they will take for the property. If that amount is not reached during the auction the auctioneer does not have to sell the property to the highest bidder. For example, if a seller asks an auctioneer to sell a house valued at $500,000 he or she may set a “reserve” of $400,000 in order to insure a certain profit margin at the sale. If the highest bidder only reaches $380K the seller can tell the auctioneer to refuse the sale.
In an absolute auction, there is no reserve meaning the property will absolutely be sold to the highest bidder, no matter how high or low the winning bid may be. This is a risk for the seller and a huge advantage for the buyer. At the auction on Tuesday 2 of the condo units were being sold with a reserve number, but one of them was being sold absolute. I am guessing that the auctioneer encouraged the seller to sell one unit in absolute as a come-on to get people to the auction, assuming they would bid that unit up to a similar price as the reserve units.
I was surprised that they decided to start the bidding on the absolute unit. After everyone who was interested in bidding had proven they had $5000 in cash or certified funds they were issued a bid card and asked to gather in front of the building for the bidding. If you haven’t been to an auction like this before, I would highly recommend attending one. Even if you aren’t interested in buying the property the people watching is terrific. There must have been nearly 50 people hanging around by the time the auction started. Of those gathered there were less than 10 folks with bid cars participating in the auction. There were neighbors, police, investors, friends and even a homeless man who tried to bid at one point by raising his brown bag 40 oz beer as if it were a bid card!
I was there to try and purchase the unit being sold in absolute for between $50K and $80K. My investment partners and I decided that was a good range that would allow us to make a slight profit if we rented the unit out and probably wait a few years to build equity and for the market to perk up a bit before re-selling for a profit. When you go to an auction like this you need to have a concrete number that you will not go above where you will stop bidding. Each investor has a different number they are comfortable bidding up to based on their own investment strategy. If you are ever interested in pursuing this type of investment please let me know (Michael@RealAstute.com) and I would be happy to help you run comps and help you determine the right number for you and your investment.
The auctioneer started the bidding for the absolute unit at $175K. You could hear the crickets chirp. I actually chuckled when he said that number. Finally someone in the crowd hollered $10,000. The auctioneer laughed, but he had to proceed with that number for the bidding since this was an absolute auction. Needless to say the bidding ran up quickly to $50K, then me and 3 other bidders quickly ran the bids up to $75K at which point I was fairly certain by the lack of bidding that I would be the winning bidder and would be getting a great deal on one of these condos. Sadly, I was mistaken!
Just as the auctioneer prepared to award me the condo for $75K a gentleman just a few feet away took the bid to $77,500. I went to $80K. Then my competition went to $82,500 and like a smart investor I turned to my competition and congratulated him and started walking to my car parked along the side of the building. Even though you can get wrapped up in the bidding you must remember that you have a cap and you don’t want to go over that cap. I knew that my fellow investors trusted my judgment and would be pleased that I didn’t get carried away and pass our cap.
Once we passed my cap I was disappointed but I know there will be many more auctions and opportunities and this one was simply not meant to be. The auctioneer was quite funny and actually called out to me to stay and keep bidding by saying, “You know it’s still a steal at $100K, don’t leave yet.” But it was too late; I pulled off and headed back to the office, with a quick stop at McDonalds for a Big Mac!
If you think you or someone you know, or even a group of investors you want to put together might be interested in learning more about this type of auction I am happy to share my knowledge. My small investment team has successfully purchased property through the annual DC tax sale as well and I am happy to advise my clients on how to navigate that process. Further, there are more and more auctions every week with foreclosed properties being sold at discounted prices. Next Tuesday I am planning to attend one of these foreclosure auctions and I will share what I learn on upcoming blog posts.
Michael Dillon
Michael@RealAstute.com
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