Archive for May, 2009
NEW TESTIMONIAL VIDEO
May 26th, 2009 categories: Buyer Strategies, Seller Strategies
If you are a home buyer or seller in the Northern Virginia area, or relocating to the area, and….you are doing research to find a real estate agent that will be a really good choice, may I invite you to give our TESTIMONIAL VIDEO a quick view. Read the rest of this entry »
| Discussion: No Comments »
MEMORIAL DAY – NEVER TAKE FREEDOM FOR GRANTED
May 25th, 2009 categories: Community Life
The freedom to pursue our dreams…to succeed, to fail..to work toward something bigger than self..to do any of the countless things we do each day…all of these are freedoms that have a price. Read the rest of this entry »
| Discussion: No Comments »
HOUSING STARTS STILL FLAT – ALL THINGS CONSIDERED, A GOOD SIGN
May 24th, 2009 categories: Buyer Strategies, Seller Strategies
This has been the pattern for 4 months running…and now again in April, single-family new home construction remained flat. Read the rest of this entry »
| Discussion: No Comments »
2009 CONSUMER PRODUCT OF THE YEAR – ONE WAY TO DRINK MORE WATER
May 21st, 2009 categories: Home Life
Every health commentary we read reminds us to drink more water. And there are all kinds of reasons to do so. Read the rest of this entry »
| Discussion: No Comments »
CRAFTSMAN STYLE HOMES IN GAINESVILLE, VIRGINIA
May 18th, 2009 categories: New Construction
If you are a home buyer in the Chantilly and surrounding area, you don’t often..maybe I should say ever…encounter Craftsman style new homes being built. Read the rest of this entry »
| Discussion: No Comments »
FORECLOSURE NUMBERS CONCENTRATED, BUT IMPACT IS WIDESPREAD
May 16th, 2009 categories: Buyer Strategies, Mortgage & Finance, Seller Strategies
We mentioned a few weeks back that the national foreclosure stats were disproportionately represented by just a few states.
That has been continued for a second month.
RealtyTrac.com numbers show that a little over half of US foreclosures during April came from just three states: California, Florida, and Nevada.
The population represented by those states is about 19%. That will give you a sense of how uneven the problem is in terms of geography.
Of course, you can be living anywhere in the US and the problem is still having an impact, in one way or another.
For example, Fannie and Freddie don’t just back loans made in certain states. They are in all 50. So the pinch is felt by these quasi- government organizations even though the losses are concentrated. (Maybe “quasi-government” is no longer quite accurate!)
This week, for example, both of these agencies asked for more dollars… $19 billion and $6 billion, to be exact.
Loan fees have also risen over the past year. Increased consumer charges is one way to find the finances to at least make the balance sheets a bit more “balanced.” Add to that an increase in the cost of mortgage insurance as well as bigger down-payment requirements.
So, even though the numbers are not evenly disbursed, the impact is felt all over.
You can check out the RealtyTrac’s website to take a closer look at the April foreclosure details.
| Discussion: No Comments »
CONTRACT FOR DEED – ADVANTAGES AND DISADVANTAGES
May 15th, 2009 categories: Buyer Strategies, Mortgage & Finance, Seller Strategies
[PLEASE NOTE: Attorney John Pitrelli continues his series on what home buyers and sellers should know about practical legal matters in the current real estate environment.]
This is a follow-up to my previous posts which dealt with common myths about the Contract for Deed method of owner financing. In this post I will discuss the advantages and disadvantages of the Contract for Deed.
The Contract for Deed will allow the sale of property when traditional forms of financing are not available to the Purchaser.
Unlike lease options or lease purchasers the sale is final when the Contract for Deed settlement documents are signed. This
can be extremely important for the parties who may wish to trigger time frames for capital gain rollover or exemptions.
With Contract for Deed financing closing costs are significantly less, since there is no Deed of Trust to record, no points to pay or other lender fees. The Seller may be able to take advantage of a low interest loan they have secured by the property by wrapping that loan at a higher rate.
Perhaps, the greatest advantage is the Purchaser receives the tax benefits (deductions) of home ownership, thereby making a slightly higher payment affordable when comparing ownership under a Contract for Deed to renting.
As to disadvantages, the Seller remains liable on the underlying debt which may impact the Seller’s ability to procure new financing on a future purchase. There is also a remote possibility that the underlying lender my consider the Contract for Deed as an event that triggers the due on sale clause and they elect to accelerate the loan.
A disadvantage for the Purchaser is the cost of a subsequent refinance of the property.
I have had considerable experience with Contract for Deed financing over the past 30 years and it has proven to be very successful for the majority of my clients. I do believe however that a Contract for Deed should be used sparingly and should be reserved for special situations. The parties to the transaction must be comfortable with the ability of the Purchasers to perform and the credibility and trust worthiness of the Seller. Above all, the parties should be fully advised about the risks of the transaction and should seek legal counsel as Contracts for Deed do involve risks to both the Purchaser and Seller.
[John welcome questions or comments. You can contact him at j.pitrelli@keytitleva.com]
| Discussion: No Comments »
DON’T SIT FOR TOO LONG WITHOUT A QUICK WALK
May 11th, 2009 categories: Successful Living
You may have heard about the importance of getting up and moving briefly on long flights due to the health hazards of just sitting for long periods of time.
The concern has to do with something called Deep-Vein Thrombosis (DVT). When we sit for extended periods, it can incline some folks toward a clotting of the blood within the legs. A recent study in New Zealand confirmed this concern, and suggests that caution should be taken by simply getting up and moving to break up long periods of inactivity.
REDUCING DVT RISK - THE OCCASIONAL QUICK WALK AROUND
Residents in the Northern Virginia area are getting these long periods by virtue of all the commuting and traffic, but when at all possible, consider punctuating your “sitting” with a quick “get up and walk around” break. It’s especially important if your normal day involves lots of sitting.
There are many other benefits to this kind of movement as well. Some researchers who have looked at patterns of energy within the human body and have observed that many people go through a two hour cycle in which energy flow peaks and falls during this time frame. One way to manage those periods when your energy level is dropping is to simply move around.
There are lots of good reasons to take that occasional short break, and preventing DVT is just one.
| Discussion: No Comments »
MORTGAGE RATES EDGE HIGHER ON APRIL JOB REPORT
May 10th, 2009 categories: Buyer Strategies, Mortgage & Finance, Seller Strategies
We have all been told that the job loss stats are likely to continue their downward trend for awhile, so the fact that the economy shed 539,000 jobs in April, was not a big surprise.
If there is any silver lining in that cloud, it is that it is about 10% better than predictions.
After bottoming out early last week, conforming, 30-year fixed rate mortgages rose by as much as three-quarters of a percent. So what is the connection between jobless rates and mortgage rates?
Much of human behavior..and Wall Street is no exception..is based on expectations.
People make moves with their money, including those investing in stocks and other securities, with an expectation of things to come. There was an expectation that jobless stats might be as high as 600,00 for April, so the actual number looks pretty good by comparison.
There would seem to be at least a modest recalibration of expectations going on at the moment, with some sense that there may be better consumer spending and fewer foreclosures.
Nothing is 100% in this context, but when there is a generally better sense of things to come, it may inch up mortgage rates. One lesson here, at least from where I sit in working with home buyers and sellers every day, is that “timing” a buy or sell is like timing the stock market. It is far better to make those kinds of decisions with your long term plan in mind.
| Discussion: No Comments »
PENDING HOME SALES UP IN MARCH
May 9th, 2009 categories: Buyer Strategies, Mortgage & Finance, Seller Strategies
For two months in a row we’ve had the number of homes under contract to sell increase.
I am referring to national statistics, but I have also noticed, at least in my own part of the real estate world here in Chantilly and the Northern Virginia area, that things have been up-ticking somewhat.
As reported by an industry trade association, the Pending Home Sales Index rose by 3-plus percent last month.
This set of stats refers to properties that are under contract, but have not gone to Settlement as yet.
Keep in mind that deals fall out of contract all the time, especially in the current environment. At the same time, deals go through all the time as well. Not much is 100%. So this statistical indicator is not airtight, but it certainly is suggestive.
There are always a combination of factors at play in something as complex as the national housing market. Right now we have low mortgage rates, far better home affordability than the recent past, and then there are the various tax credits coming out of recent legislation. It is having an impact on demand.
There is still a lot of “supply” out there, but if you are a home buyer, that gives you more choices.
As always, we’ll keep an eye on it.
Actually, I am doing a lot more than keeping an eye on it. I am in the middle of it! So let me know if you need help. That is what we do…help home buyers and home sellers reach their goals.
| Discussion: No Comments »
