Maryland Real Estate Blog

Moved My Blog

2007-10-01T11:49:00.000-05:00

This Maryland Real Estate Blog is now at rest, and I am focusing my blogging efforts elsewhere.

Look for more than 100 of my posts on ActiveRain and its partner site, Localism, where you'll also find 50,000 other real esate agents, lenders, stagers and other real estate professionals - with LOTS of good reading about real estate and other topics.

I've also been posting to my new blogsite now under construction, Focus On Crofton, which is being created especially for and about Crofton. Watch for the site to be unveiled soon, with its custom format featuring Maryland's state flower, the Black-Eyed Susan.

Helping my real estate clients is my primary goal and responsibility, and blogging will always come second to that. For that reason, I had to make the difficult decision to let this Maryland Real Estate Blog rest for now.

I hope you'll visit my website or another of my blogs, and contact me if you're looking for an experienced real estate professional in the Baltimore-Washington area.

Traffic Jams - Another good reason to live in Anne Arundel County

2007-07-14T07:54:00.000-05:00

Traffic Jams – Another good reason to live in Anne Arundel County!

I read something online today about America’s 12 Worst Traffic Traps. As I watched the slideshow, a familiar “traffic trap” appeared before my eyes: The I-495 and I-270 Interchange in Montgomery County, Maryland. This is one of the worst commuting spots in the nation, according to the AAA, costing 19 million hours of delay a year for commuters in our local area. I believe it... I've been there!

Anne Arundel County residents rarely travel this stretch of “the Beltway”, I-495. We tend to travel into D.C. directly, via Rt. 50… and to Northern Virginia by going through the District rather than around the Beltway. Remember, there is more to estimating your commute than checking Mapquest or other online map to determine the distance, because traffic delays often make distance an irrelevant factor.

In fact, it is not unusual for Northern Virginia residents to have more time-consuming commutes than their Anne Arundel County co-workers, in spite of their proximity to work. Not only that, but the sun rises in the east and sets in the west – meaning the sun will always be at the back of a commuter from Anne Arundel County, while in the eyes of a commuter from Northern Virginia. If you don’t think this matters, listen to a traffic report on the radio during the winter, when the sun is low.

There are many other good reasons to choose Anne Arundel County when you relocate to the D.C. area. These are just a few of them, in no particular order:

Low real estate property taxes
Excellent public schools
Excellent local hospitals as well as proximity to nationally renowned hospitals in both Washington and Baltimore
No personal property tax (which they do have in Virginia)
Convenient to BWI, arguably the most traveler-friendly airport in the region
Miles of shoreline along the Chesapeake Bay and its tributaries for recreation (and living
Lower home prices
Convenient to Baltimore, as well as D.C.
Public transportation via Metro and/or MARC
The BRAC effect on property values

If you’re relocating to the D.C. area, let me show you Anne Arundel County. I think you’ll like it!

For comments or additional information:

Do you have a "secret sauce" ?

2007-07-11T06:11:00.000-05:00

All good cooks have their favorite recipes, and these recipes often begin or end with a secret sauce. That "secret sauce" is the difference between good and delicious, between delicious and delectable, between... well, you get the point!

After 33 years in real estate, I finally found the right ingredients to make MY secret sauce:

A fabulous website (if I do say so myself). Many thanks to Tom Glynn at AgentImage for all your help and encouragement during several weeks of photo selection, content writing, etc. You were amazing! EVERYONE compliments my website, and I know it contributes to my success.
Consistent follow-up, using an Action Plan I created in Top Producer. The effectiveness of my follow-up is due in large part to lessons learned from Michael Russer, who taught me to always ask myself (from the perspective of a consumer) "What's in it for me?" Each and every follow-up email provides the recipient with a helpful real estate tip and a related link. I've been surprised and pleased at how effective this has been.
Negotiating skills developed through years of training and experience. I know, you can't buy that - but it is one of the ingredients, so I have to mention it.
Online advertising such as iHousespotlight.com, ContactAgents.com, Crofton.com, MarylandInfo.com, MilitaryAvenue.com and others. I don't believe it matters exactly where you place your online ads - only that you DO place online ads that direct consumers to your website. It's a fact that many hits to my website come from another online ad, so the website would be less effective without them.
Blogging - It's been said that someone has to know you, like you, and trust you before they will do business with you. A perfect stranger can develop the "know, like, trust" relationship with you through reading your blog. This is where ActiveRain and Blogger come in. If you write informed and interesting blogs, people will get to know you, like you and trust you so they will hire you.

Yes, these are the ingredients of my "secret sauce"... but there is no recipe, per se - no fixed formula for putting them together. As I look back at my recent business successes, not one of these ingredients was missing from a single case. Even the referral from a former agent I worked with 30 years ago was brought to fruition through a combination of my website, follow-up, negotiating, online ads, and blogs.

Now that I've told you about the secret ingredients in my secret sauce... what's in yours? What factors consistently work together to make YOUR business a success?

Advice to new real estate agents

2007-07-01T09:32:00.000-05:00

WELCOME TO THE DANCE!

I encourage all new agents to bring your enthusiasm and new ideas to the world of real estate, while you learn some of the basic steps. As we all know too well, real estate licensing classes don't really provide the day to day "how to's" that mean the difference between success and failure in this business. So here are a few practical suggestions from an old pro:

1. Preview, preview, preview. Any day that you don't have a live warm-bodied client to work with, preview properties on the market. This will help you develop a comfort level with what's available at what price. It also helps you find your way around your marketplace, as you go from one listing to another (good idea to try out that new GPS system before you have clients in the car). And knowing the inventory will give you something to talk about in social and business situations. Previewing is to real estate success, what crawling is to walking.

2. Practice using a lockbox. You laugh. Well, let's pretend you were the lucky agent on duty in your office when a homebuyer came in and wanted to look at homes. He didn't know you were new, and he was very impressed with your professionalism. You made appointments to show him homes, and off you went. "This is going great!", you thought to yourself. But you couldn't figure out how to open the lockbox when you got to the first listing... Why don't real estate managers teach new agents how to work their lockboxes?!?!?!

3. Practice your presentations. Now that you have graduated from licensing school, you are expected to share your wisdom with consumers... to come across as knowledgeable about real estate, while being enthusiastic and natural. Believe me, there is nothing "natural" about it - that takes practice!

Assuming you already have a listing presentation (purchased, corporate, or one that you created yourself), sit down at your dining table and turn the pages (or power point presentation on your laptop) in the direction of an imaginary home seller across the table, and go through your presentation OUT LOUD. You must be able to look at it upside down, and know what your script is for that page. Same thing with contracts: Turn a contract towards an imaginary buyer on the other side of the table, and summarize each and every paragraph OUT LOUD without peeking. My children did grow up to be normal healthy adults, in spite of sitting through many practice presentations over the years before I took them to the pool.

4. Reach out and touch someone. Many someones. Personally speak to at least 5 people a day about real estate - it can be purely conversational, such as "I saw the most beautiful home today..." - but it has to be about real estate! When you run out of friends and family, go to the grocery store and talk to the person in front of you and behind you... and the clerk. Go to the gym and talk to the person on the treadmill next to you. 15 seconds and a business card. It works. Do it every day for a week, and you will probably get an appointment with a live warm-bodied buyer or seller - especially if you've been previewing and have some houses to talk about.

5. Read, read, read. Your clients and prospects are reading the newspaper (or news online), and they are watching/listening to news reports in the broadcast media. They are very interested in learning about interest rates, market trends, and local political decisions that may impact their home value. If you want to carry on an intelligent conversation which convinces others that you know more than they do about real estate (you're not just another real estate licensee), you have to read, listen to and talk about anything you can find that has to do with real estate.

One of the things I love about being a REALTOR is the community of agents, lenders, and other professionals that I interact with every day. Not to mention the clients who have become friends, and the friends who have become clients. It doesn't matter what age, ethnicity, or years of experience - we can all enjoy the real estate dance. Hopefully some of this advice from an old pro will help make it more fun for you a lot sooner than learning from the school of hard knocks.

Hey, old pros, if you're still reading this, please share YOUR advice to new agents in the comments.

http://www.margaretwoda.com/

mwoda@remax.net

Are home sellers in denial?

2007-06-25T13:20:00.000-05:00

Now that is a very good question, and everyone has an opinion. I'll bet you've already framed an answer in your own mind, and now you're waiting to hear what I have to say. Well, here's my answer:

Yes, I think that's true. I've talked to a number of sellers, and even agents, who are convinced that their home is worth 10% higher than it's likely to get in today's market. In fact, even the experts are making that same observation. Just today, I was reading an article in MarketWatch by Rex Nutting, and he quoted the Chief Economist for Naroff Advisors as saying that "we still seem to be in the sellers'denial phase of the market and we haven't even hit the buyer's denial portion of the market, when people don't realize that prices are no longer dropping." What's your opinion?

Many REALTORS are true experts who study real estate, the economy, market trends, the home building industry, and local real estate sales statistics because that is what it takes to be "the real estate experts" in our area. These agents really do know more about real estate than most home sellers, buyers and many agents, and THAT is why we bring value to consumers' real estate transactions. It's why we earn the "big bucks!" (And it's the reason we're more valuable than mere real estate licensees who don't do these things.)

When consumers ask a REALTOR a question - even a casual one like "Are home sellers in denial?" -they'll know the REALTOR is more than one of those "here today, gone tomorrow agents" when the REALTOR quotes statistics and the experts, in addition to sharing anecdotes from their own experience.

Use the links below, if you'd like to read the entire article that is the source of each quote.

Joel Naroff, Chief Economist for Naroff Advisors: "We still seem to be in the sellers' denial phase of the market and we haven't even hit the buyers' denial portion, when people don't realize that prices are no longer dropping." U.S. inventory of homes for sale in May rises to 15-year high

Rex Nutting, Washington Bureau Chief of MarketWatch: "Starts of new homes in the United States dropped by 2.1% to a seasonally adjusted annual pace of 1.47 million in May, the softest pace of groundbreaking since January, the Commerce Department estimated Tuesday." U.S. housing starts fall in May to 1.47 million pace, down 2.1%

Patrick McPherron, economist for Moddy's Economy.com: "The bottom of the housing market appears nowhere in sight." Home builders' confidence falls to 16-year low
Lawrence Yun, Senior Economist for NAR: "I think psychological factors are currently the biggest drag on the housing market, in addition to a disruption from tighter credit for subprime borrowers." Existing-Home Sales Show Market is Under Performing.

Office of Federal Housing Enterprise Oversight: "U.S. home prices increased 0.5% in the first quarter, the slowest quarter-to-quarter price gain in 10 years." Home prices rise at slowest pace in 10 years

Mike Englund, Chief Economist for Action Economics: "Inventories of homes on the market rose by 5% to a record 4.43 million, representing an 8.9-month supply at the May sales pace." Dollar stalls after home sales data.

You can keep up with the experts through MarketWatch, as well as NAR press releases. You can even register to receive a MarketWatch Alert any time there is an article related to the Real Estate industry.

Contact Margaret in Maryland for real estate in the D.C.-Baltimore-Annapolis triangle. (Margaret Woda, RE/MAX Vision)

For more information:
http://www.margaretwoda.com/
mwoda@remax.net

Are home sellers in denial?

Lesson learned (again) - Appaisals are not the last word!

2007-06-22T08:30:00.000-05:00

Well, actually, that was lesson #3 learned from my listing at 1697 Walleye Dr.

The Internet IS a source of business. This listing came to me directly through an ActiveRain.com contact form. The property is located about 3 blocks from my office, in the heart of my target area in Crofton, MD.

Do not walk away from any listing, even if it is overpriced. I did at first, but had second thoughts as I drove down the street. The next morning I called the seller and said "If anyone can sell your property for more than $300,000, I can." Over the next few weeks, I had several sign calls on that property, ending up with at least one other listing and sale.

Appraisals are not the last word! We did get a full price offer of $333,000 about 30 days later. Concerned about the appraisal, I asked the seller to provide her receipts for renovations, which I then gave to the appraiser. In spite of documentation for more than $50,000 of renovations, the appraisal came in at $295,000, just $11,000 more than she paid for the property in October 2006.

The mortgage lender, new ActiveRainer Don Wilkins, immediately ordered a second appraisal. Again, I met the appraiser and gave him the package of receipts. This time, the appraisal came in at $306,000 - better, of course, but still $27,000 away from the contract price. Many agents and lenders would have let the appraiser have the last word and this sale would have died at this point.

But not me, not us... Super-heroine Margaret, along with super-hero co-op agent, informed our respective clients of the situation and asked how they felt about going forward (without mentioning our own doubts). My client said she would consider it, if the buyers could/would waive the closing help in the original contract. The buyers told their agent that they would waive the closing help in the original contract, if the seller would accept the sale price. Voila! They came together on their own, and they both feel they "won" because the solution was THEIR OWN IDEA.

The buyer and seller reached a fair compromise, facilitated by two experienced agents and a lender willing to seek a second appraisal. They, not the appraiser, got the last word. Settlement will be next week, and all are expected to live happily ever after!

Today's real estate trends, unofifcially speaking...

2007-06-17T13:05:00.000-05:00

In the past, I've shared statistics with you from MRIS, the regional multiple listing service, so you would have a realistic picture of real estate activity in Maryland. There's nothing like real data, when it comes to dispelling rumors (and media reports, which tend to be rumors), so that is why I usually go with the facts. Yet there is also a place for informed opinions, and that's what I have to offer you today.

This change of direction was inspired by a phone call yesterday from Andre, one of my blog readers who is relocating from Georgia to Maryland. So here goes:

It is my opinion that home values are relatively safe, at least in my market. They have rarely gone down during my 30+ year career - certainly not in the big picture over any number of years. Home values have gone up pretty consistently, with only a few plateaus. In today's so-called "down" market, we're seeing more of a plateau than a drop in property values, at least in the D.C./Baltimore/Annapolis triangle - UNLESS the property was purchased at the height of the five-year price balloon we saw recently. In those cases, motivated sellers may have to sell their homes for less than they paid... and more than they owe.

Most people own a home for a number of years, however, and property values are likely to be on the rise again for the majority of "balloon" home buyers when they're ready to sell. BRAC is a factor that pretty much guarantees that for local homeowners.

For anyone who doesn't know, BRAC is the Base Realignment and Closing Report, which recommends the consolidation of some government and military services by closing some facilities and expanding others. Maryland is on the receiving end of new jobs in this round of BRAC, and the D.C./Baltimore/Annapolis area is short of housing by tens of thousands for anticipated newcomers. Given the impact of supply and demand on prices, I think that housing is still an excellent investment in this area. The rest of the country may have a very different experience, but Marylanders have good reason to be optimistic - especially those in Anne Arundel, Howard and Harford Counties.

Thanks, Andre, for your phone call yesterday. That report I promised you will be in your email tomorrow. If you have any questions, please don't hesitate to contact me.

Today's real estate trends, unofficially speaking...

Crofton MD - Market Statistics May 2007

2007-06-10T11:24:00.000-05:00

Each month, when new sales statistics are published by the Metropolitan Regional Information Systems, Inc. (MRIS) – the multiple listing service for Crofton (21114) – the first thing I look at is the Total New Listings (76) and the Total New Contracts (41). If these numbers are not close, then I can predict the future. How, you might ask? Well, certainly not from watching TV or reading the print media - it’s a case of relying upon my experience, and recognizing the effect of Supply and Demand.

If 76 property owners put their homes on the market in a month when only 41 homebuyers elected to purchase a home, the inventory of homes for sale will continue to grow. Under these circumstances, the number of sold units and $ averages will continue to decline, while days on market will continue to increase over last year as we move forward into the summer of 2007.

Here is a look at the statistics for May 2007, the most recent month for which statistics are available, compared to May 2006:

Total Sold Dollar Volume: Down 20.78%
Total Units Sold: Down 13.79%
Average Sold Price: Down 8.10%
Median Sold Price: Down 7.91%

As you might expect, the average days on market is another statistic that does not bode well for home sellers: Up 20.69%

It is more difficult to know an accurate percentage for Average Sale Price vs. Average List Price (97.68% in 2007 vs. 97.39% in 2006) because the published information provides the List Price at time of Contract. It does not take into account the original price or any subsequent price reductions. I don’t pay much attention to this, other than to warn my seller clients that they should not expect a full price offer.

Again, the message to home buyers is this: IT'S A GREAT TIME TO BUY A HOME!

For a report on market conditions in YOUR neighborhood, or one in which you're considering a purchase, click on Market Snapshot. You may view it once, or subscribe to ongoing reports on a schedule you specify.

For more information on this topic, visit Margaret Woda at RE/MAX Vision in Crofton.

Annapolis sales statistics - April 2007 vs. 2006

2007-06-02T13:05:00.000-05:00

April was NOT good for home sellers in Annapolis (21401 and 21403). But it was GREAT NEWS FOR BUYERS! Let's take a look at the facts, comparing real estate statistics in April 2007 with April 2006:

21401 zipcode:

Total Sold Dollar Volume: - 35.17 %
Average Sold Price: - 12.02 %
Median Sold Price: - 27.15 %
Total Units Sold: - 26.32 %
Average Days on Market: +28.17 %
Average List Price for Solds: - 10.41 %
Avg Sale Price as a percentage of Avg List Price: 94.38 % (2007), 96.10 % (2006)

21403 zipcode:

Total Sold Dollar Volume: - 47.56 %
Average Sold Price: - 32.14 %
Median Sold Price: - 18.37 %
Total Units Sold: - 22.73 %
Average Days on Market: - 8.18 %
Average List Price for Solds: - 36.62 %
Avg Sale Price as a percentage of Avg List Price: 93.87 % (2007), 87.68 % (2006)

MRIS publishes market statistics monthly, and these are just the highlights. For information, contact me at mwoda@remax.net

Don't shoot the messenger!

2007-04-21T10:15:00.000-05:00

Do your sellers shoot the messenger when they don’t like the message? In other words, do they list with someone else who does not tell them the truth about their house?

How do you handle it when you walk into a home and your reaction is something like this:

I can't breathe... what is that odor?

This house looks like an annex to the city dump!

Has your bathtub ever been cleaned since you moved in (15 years ago)?

The price you want is about 20% higher than other similar homes in this area.

One, two, three, four, five, six, seven, eight, nine... how many cats do you have?

There really is no way to diplomatically handle situations like these. And I find that many sellers will acknowledge them without too much resistance, although they may not have any intention of correcting them. Frankly, if these sellers shoot the messenger – i.e. don’t list with you because of your candor – who cares? Any listing with extreme “issues” is going to be a tough sell anyway.

The truths I have trouble with are the ones that may offend very nice people who are very very proud of their homes. Handling these situations with kid gloves is important if I don’t want the seller to go searching for another agent who doesn’t tell them the truth. More important, I don't want to insult the homeowner who has a wonderful home for them. Yet I can't forget that the buyer won't be looking at the home through the seller's eyes. My message has to communicate the truth in a helpful way:

The truth: Yikes, this color reminds me of ___________!

Your message: Mr. and Mrs. Seller, this color is perfect with your things, but statistics prove that neutral homes sell more quickly and for more money. Let me give you the name and phone number of a painter who can help you neutralize your home before we put it on the market so buyers can imagine their own things in this home – and that’s our objective, right?

The truth: This furniture is way too big for this room.

Your message: Mr. and Mrs. Seller, that furniture will be perfect in your new home, but there’s too much of it for this home. Why don’t you move some of the pieces (be specific) to storage while your home is for sale so buyers can focus on how their own furniture might fit in this room. And the side benefit is that the room will look much larger to buyers with just one couch instead of two.

The truth: Pictures, pictures, pictures – not an inch of wall or furniture-top to spare.

Your message: Mr. and Mrs. Seller, you have a wonderful family. I’ll bet you really enjoy these pictures… why don’t you tell me about them. You know, I’m afraid that buyers will want to stop and look at your pictures when they walk through, and that may distract them from making a buying decision. Why don’t you get some neutral paint on these walls so the buyer can focus on the updates in your home.

Proud sellers want you to like their home and to realize that they've put a lot of time and effort into it. They need you to validate their choices in decorating, storage, landscaping,etc. Yet you can tell them the truth without it coming out of your mouth sounding like a personal opinion. These sellers are eager to please and eager to sell, and they will appreciate your telling them how buyers are likely to react. The buyer becomes the messenger...

Your sellers can’t afford to "shoot" any prospective buyers, so you’ll be safe. You will get the listing. And everyone will live happily ever after.

Feedback and Questions:

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Don't shoot the messenger!

March Real Estate Sales Statistics

2007-04-16T09:08:00.000-05:00

MRIS, the regional multiple listing service for 25 local Associations/Boards of Realtors in Maryland, Virginia, Pennsylvania, D.C. and West Virginia, has just released sales statistics for March 2007. It's not surprising to anyone working in Anne Arundel County, Maryland, to see that everything is down EXCEPT days on market, when compared with last year. What is surprising is the fact that it's barely down - the sales figures are really almost stable. I'm certain that agents in other markets around the country would be very pleased to have numbers like these:

Total sold dollar volume is down 2.91% from March 2006 to $ 250,453,279
Average sold price is down 1.08% from March 2006 to $ 395,037
Median sold price is down 3.96% from March 2006 to $ 326,000
Total units sold is down .94% from March 2006 to 634
Average days on market are up 82.26% from March 2006 to 113

Here is some more information that some people will find interesting:

New listings taken in March 2007: 1316
New contracts taken in March 2007: 738, including 208 contingent contracts
Sold/settled units in March 2007: 634

Of the 634 homes settled, the majority (246) had been on the market over 120 days, while 178 sold within the first 30 days of listing. 544 of buyers for the 634 homes settled used Conventional financing and only 35 used VA or FHA loans.

In my specific marketplace, Crofton (zipcode 21114), sales statistics differ slightly from the county-wide numbers:

Total sold dollar volume is up 9.43% to $ 17,875,623
Average sold price is up 1/2% to $ 364,809
Median sold price is down 4.91% to $310,000
Total units sold is up 8.89% to 49
Average days on market are up 97.73% to 87

While average days on market in Crofton have increased since March of last year, they are exactly the same as February 2007 and down significantly from January (113). That's good news, in my opinion. Of the 49 homes that sold and settled, almost half (21) had been on the market less than 30 days, while 14 had been on the market for over 120 days.

Again, Conventional financing was the most popular, with 43 settlements, while only 2 buyers used VA or FHA loans. That is good news for home sellers, since sellers' closing costs tend to be lower for Conventional loans than any government loans. It's also somewhat surprising, given Crofton's proximity to Fort Meade, the U.S. Naval Academy and Andrews AFB.

Statistics are published monthly by the Metropolitan Regional Information Systems, Inc. (MRIS) at http://www.mris.com/reports/stats/ if anyone would like to check on another zipcode or obtain greater details. You don't have to be a MRIS member to access this information.

Are these homebuyers for real?

2007-04-08T07:25:00.000-05:00

Your home is on the market. It’s 9 a.m. The phone rings with a warning that prospective buyers are coming between 10 and 12. You rush the kids through their cereal and send them to perform their assigned chores. Mary makes all the beds; Jerry loads the dishwasher, takes out the trash, and wipes down the kitchen; you quickly check all the bathrooms to make sure no one left yesterday’s clothes on the floor and grab the Windex to polish the faucets and sinks.

Your spouse closes the closet doors, pulls open the drapes and blinds, turns on all the lights, turns off the TV, and changes the radio station from talk radio to soft rock. There is barely enough time for everyone to grab their sweaters and get out the door by 10. Oh, don't forget to confine the pets. Whew! You can only hope this buyer is the one who will make an offer so you won't have to go through this drill any more.

Determining whether prospective homebuyers are “real” or “fraud” is up to the agents. You assume they wouldn’t waste their time or yours. That’s one of the reasons you listed your home with a real estate agent and agreed to pay those “big bucks”. You KNOW that a FSBO (For Sale By Owner) has to let every caller in to see the house – including the people looking for decorating ideas, the people who can’t afford your home, and even criminals who are “casing the joint”. So how do agents separate legitimate buyers from the pretenders?

1. Come into the office –

If a prospective buyer is not willing to come into the agent’s office, chances are they’re not serious buyers. I generally begin by asking buyers for photo identification and leaving it in my office before I get into a car with them. I figure that an axe-murderer, rapist or robber probably won’t be inclined to provide this identifying information. As far as I’m concerned, these folks will have to settle for open houses and FSBO properties – they’re not getting into a car with me! (P.S. – That’s one of the reasons I do not hold Open House.) Of course, I have a standard questionaire for all prospective buyers - Fair Housing Laws require that I treat each buyer the same, and this "standard procedure" is the best way for me to document that I do.

2. Loan pre-approval –

If a prospective buyer has a loan pre-approval from one of the lenders I recommend, the loan officer who I know and trust has verified to the extent possible that this individual is who they say they are by verifying employment, assets, and cash on hand. If someone walks into the office with a loan pre-approval in hand, as far as I’m concerned, they might as well not even have one. This prospective buyer may or may not be pre-approved (anyone can "fake" a loan pre-approval), and may or may not be who they say they are. They could be frauds! And, assuming they are who they say they are, the agent should show them only homes for which they qualify financially.

3. Match properties to buyers –

Having completed the first two steps – verifying the buyer’s identity and financial qualifications – the next step is to match the buyer's wants and needs to properties. Does this home purchase require something to happen before they can buy such as selling their current home, getting a new job, receiving an inheritance that is in probate? Is this move necessary, such as relocation for a new job, or optional, such as a move-up to a larger home? Do they want/need to settle in 30 days, a year, or somewhere in between? Does your home have the features they are looking for in a home? You rely upon agents to know these answers before they bring strangers into your home… don’t you agree?

While I can’t promise that all real estate agents take these same precautions before showing your home, many do. Frankly, these three steps are essential for any buyer’s agent for two reasons: 1) The safety of you, your family AND the agent; and 2) so you and the agent don’t waste time with prospective buyers who won’t or can’t buy your home.

Determining that homebuyers are real and not frauds BEFORE agents show your home is a reasonable expectation for you as a home seller when you list your home. You shouldn't have to ask yourself "Are these homebuyers for real?" Agents, if you’re reading this, take note.

More information:

www.MargaretWoda.com

mwoda@remax.net

Are these homebuyers for real?

Real estate is NOT like it used to be -

2007-04-01T08:08:00.000-05:00

We’ve been reading a lot lately about today’s market, how different it is now from last year. I thought it might be fun to look back a lot further – to the 70’s, when I started in the business. Some of you might not have been alive yet, and others were too young to be home buyers or sellers then, so maybe you will find this interesting:

A brand new 3 bedroom, 2 bath brick-front townhome was priced in the low $20’s. Today, that home in that community sells for about $300,000; and new townhomes sell for more than a half million dollars.
A real estate sales contract was 2 pages long, hand-written on legal-sized paper. Today’s real estate contracts are commonly about 45 pages long, computer-generated on letter-size paper. The half-page listing contract has been replaced with a dozen or more pages.
The multiple listing service was alive and well, but home information could only be found in a book published weekly. New listings usually did not have any photos – a black and white exterior photo appeared a week or two later. Today’s listings are published worldwide on the Internet within minutes of going on the market, often with a dozen or more color photos.
Real estate agents could show other company’s listings, but they had to go to the other company’s office to get the key. Then they had to return it before they could show another house, in case another agent needed that key. Today’s agents just aim their cell phones at an electronic key lockbox to obtain the key for a property.
Speaking of phones, when an agent was running late or got lost (no GPS systems in those days), he or she had to stop and find a pay phone to place a call. Today they can make a hands-free phone call from their car.
Telephone tag was the norm, with buyers and sellers having to leave a message with a receptionist and then wait for an agent to call them back with information about a property or anything else. Today, we not only have voice mail, we have text messaging and email; instant communication is the norm rather than the exception.
Real estate agents always represented the seller, even when they worked with the buyer… even if the buyer was a friend or relative. Today’s buyers have their own exclusive representation from a buyer’s agent who looks out for their best interests and has no fiduciary relationship with the seller.
The interest rate was about 7%… shot as high as 17% during the Carter Administration… and remained double-digits for most of my career. Who ever thought we’d see five or six percent in our lifetime? Yet we did, and the rate has hovered in the 6’s for over a year.
There were only three loan choices: VA, FHA and Conventional. All of them were 30-year fixed rate loans. If the buyer was not active duty military or a veteran , VA was not an option; the FHA loan limit was $33,000 so that was not an option for higher-priced properties; that left Conventional. Adjustable rate loans, buy-downs, wrap-around mortgages and other creative loans were the market’s answer to high double-digit interest rates… yes, 17%. And these programs remained available when rates went down.
Most contracts were written subject to loan approval, which required verification from employers, creditors and banks via "snail mail" (i.e. U. S. Post Office) - this often took about two months. Loan processing then took a few more weeks, so settlements did not occur until about 90-120 days after contract, in many cases. By contrast, today's buyers usually obtain loan approval within 24 hours, and only then do they go home shopping. After their contract is accepted, only an appraisal of the subject property stands in the way of settlement - and settlement usually occurs within 30 days of contract.

As you consider how different this year’s market is to last year’s, perhaps this little stroll down memory lane will help you to realize that it’s not as dramatically different as the media would have you believe. Okay, prices are down and sales are slower - slightly. But this is a “normal” market adjustment, and nothing to be afraid of.

If you want to buy or sell a home this spring, find yourself an experienced agent who has “seen it all” and is not intimidated – one who knows what steps to take to maximize YOUR profits in today’s market because they’ve lived and worked through similar situations (and worse!) in the past.

Feedback and questions:

www.MargaretWoda.com

mwoda@remax.net

Real estate is NOT like it used to be -

What I Won't Tell You

2007-03-25T07:56:00.000-05:00

Why Agents Don't Answer Your Questions

This is the topic addressed in an article appearing on MSN’s homepage today, and I opened it with the expectation of reading yet another attack on professional real estate agents. As it turns out, the article gave a relatively fair and honest analysis:

“Fair-housing laws prevent agents from talking about neighborhood demographics, and they often don't want to discuss other details, such as crime stats. Luckily, the Web picks up where agents leave off.”

The fact is that your agent probably DOES know “who” lives in the neighborhood – the demographic mix, crime statistics, and the school’s reputation. Candidly answering the question, however, could get the agent and their broker in a lot of trouble, especially if the individual asking about these details happens to be a “tester” looking for fair housing violations. As the article indicates, agents are forbidden from giving information that could be interpreted as "steering," i.e. directing a client toward or away from a particular property in a discriminatory manner.

Ten years ago, I would have suggested to a customer or client that they return to the neighborhood after our appointment to talk with residents and visit local schools, shopping and recreation facilities. Today, with almost everyone having access to the Internet, I suggest they go online for answers to their questions.

If you visit my website at http://www.margaretwoda.com/, you will find over a hundred links to resources that include the Maryland Sex Offender Registry and School Matters, a snapshot of academic performance that allows you to compare your child’s current school with any prospective school. Other helpful links mentioned in the MSN article are:

Before you buy real estate, it is important to be familiar and comfortable with the neighborhood and broader community, as well as the home itself. So don’t hesitate to ask questions because your real estate agent may suggest additional helpful websites. Yet it’s still not a bad idea to do it the old-fashioned way: make a personal visit to the neighborhood to become better acquainted with your prospective neighbors, schools, shopping, and recreation facilities BEFORE you buy a home.

And please understand that your real estate agent is not trying to be coy when they don’t give you a straightforward answer to your questions. They are trying to follow the law.

Related Sites:

What I Won't Tell You
Copyright 2007. All rights reserved. Margaret Woda

Loan pre-approvals falling through!

2007-03-17T08:01:00.000-05:00

The following information was contained in an email I received this week from Chris Washburn, a branch manager for FNMC Mortgage. He was kind enough to give me permission to share it with you:

I've received a bunch of calls recently from REALTORS who heard or read alarming news concerning the sub-prime mortgage market troubles and how that might affect their business.

The sub-prime mortgage market generates approximately 15-20% of the real estate business done in the Washington Metropolitan Area. As you are probably aware, the sub-prime mortgage market has gone through drastic changes and overhauls over the past thirty days. How does this affect you?

Loans available 30 days ago for buyers may be gone now. Pre-approved customers who qualified for a sub-prime loan in December may not qualify today. Don't worry though, we have many in-house programs that can approve your buyers or bail you out of a bad situation. With our community reinvestment loans, FHA and other aggressive in-house underwritten mortgage programs, we are #1 in this area for a reason
.
Long term, the tightening of sub-prime mortgage rules is a good thing as some loans really put people in a bad situation. The future foreclosures that will happen because of this may put a drain on the economy as evidenced by the recent stock market jitters. The silver lining may be lower rates if the economy does slip as some suggest. Lower rates typically boost home sales….

In this fast changing mortgage world, stick with a lender who has everything in-house. We process, underwrite and close the loans here in my office. Your business is too important to let a rule change or uneducated underwriter kill your borrowers dreams. We understand the importance of each customer and don't take your business for granted.

Chris Washburn, FNMC Mortgage
301-220-1000

Related articles:
Sub-prime Market's Sinking Fortunes
Sub-prime Market Gets the Squeeze from Freddie Mac
A Subprime Market for Subprime Securities
What is a Sub-Prime Mortgage?
FHA Comes to the Rescue
A Full-Court Press on Bad Loans, But Who Will Referee?

Questions and comments:

www.MargaretWoda.com

mwoda@remax.net

Loan Pre-approvals Falling Through

Source: Chris Washburn

Crofton (21114) - February Sales Statistics

2007-03-13T20:32:00.000-05:00

I consider it great news that last month's home sales (59) exceeded new listings (56) in the 21114 zipcode. This is important because the size of the housing inventory directly impacts the days on market and prices.

Here is some additional data from MRIS regarding the February market in Crofton:

Average "sold" price DOWN 4.45% to $359,269
Median "sold" price DOWN 6.3% to $325,500
Total homes sold UP 7.5% to 43
Average days on market UP 58.8% to 87

If you would like information about another zipcode, please contact me or leave a comment.

Other articles regarding market trends:

Questions and comments:

Crofton (21114) - February Sales Statistics

Sentinels of Freedom

2007-03-08T21:28:00.000-05:00

There were many inspirational moments during my last week at the International RE/MAX Convention in Atlanta, Georgia. None touched me more than the introduction of Sentinels of Freedom - a grassroots effort initiated by a California RE/MAX associate to help severely wounded veterans transition to their new realities of lives without limbs, hearing, sight or with other serious handicaps. Dave Liniger, Founder of RE/MAX, has joined this effort as a national sponsor and invited interested RE/MAX associates to "make room at their table" for one of these American heroes. My husband Larry and I have made a commitment to do just that.

Let me share this article with you, and perhaps you will join us in our efforts to bring "Sentinels of Freedom" to Maryland:

'We Owe Them Our Support'
By Amanda Okker, RE/MAX Times Associate Editor

Mike Conklin knows something about the struggles disabled veterans face as they transition back into society after months of rehabilitation. He's personally helped four readjust to civilian life and their new physical challenges through a community program he founded: the Sentinels of Freedom Scholarship Foundation.

Recognizing its sound framework and meaningful mission, RE/MAX International has become the foundation's first national sponsor and aims to support Conklin in expanding the Sentinels of Freedom program to deserving and qualified service members across the United States.

"We have a unique opportunity to be part of something that's never been done on this scale before," says Dave Liniger (ABR, CRB), RE/MAX International Chairman and Co-Founder. "I know our Broker/Owners and Associates have the heart and drive to get behind the program, too, and we're ready to see just how far we can go."

The father of three Army Rangers, Conklin - most recently an agent with RE/MAX Accord in Danville, Calif. - was inspired to reach out to wounded veterans after one of his sons was injured in Iraq three years ago. "I was so impressed by the level of care my son received at the military hospitals that I decided I wanted to do something tangible to support our troops - aside from wearing a yellow ribbon," Conklin says. "I wanted to put my support into action. It didn't take long before I realized that my community could sponsor a disabled veteran."

News of one soldier's impending return to the San Ramon Valley area of Northern California caught Conklin's attention. Jake Brown was severely injured when he was run over by a tank while serving in Germany in 2003. Word that Brown had no family or friends to turn to for support upon his return home motivated Conklin to create a program that would keep Brown from slipping through the cracks.

Conklin created the Sentinels of Freedom Scholarship Foundation in 2003 just in time for Brown's return to the community just east of Oakland.

Criteria

The criteria for qualification are straightforward: Only service members who've suffered service-related amputations, blindness, paraplegia or severe burns on or after Sept. 11, 2001, are eligible for the program.

"The program applies to this war and all future wars," Conklin says. "Anyone with severe wounds directly connected to their military service are on my radar. They don't necessarily need to have served in Iraq or Afghanistan to qualify."

After enduring 26 surgeries and nearly a year of rehabilitation, Brown was welcomed back to San Ramon in 2004. He was introduced to the support system Conklin created by recruiting help from friends and business associates.

"We call the servicemen and women who join the program Sentinels, because that's just what they are," Conklin says. "They've guarded our country and protected our freedoms, and they deserve our thanks and support."

Today, Brown is on the dean's list at his college, has been promoted twice by his company, UPS, and is entirely independent.

Conklin saw potential for the program to extend across the United States and rally other communities looking to give back to men and women who've served the country.
"So many people want to help but don't know how," Conklin says. "Our program gives people a way to reach out."

The program

Started as a grassroots effort, the program remains community-focused. The foundation calls on volunteers to set up and carry out the program in their areas. A core team of mentors forms to coordinate local efforts and to provide friendship and guidance to the Sentinels.

"There are hundreds of support groups for disabled veterans popping up, but there's no telling how long they'll be around," Conklin says. "The Sentinels of Freedom is designed to go beyond this war to future wars. We've built it plumb level and square so others can follow our design."

The Sentinels of Freedom Scholarship Foundation framework includes assistance with rent-free housing, household supplies, adaptive vehicle needs, career-placement assistance, tuition assistance and mentoring - all for up to four years.

Each service member's needs vary, so not all scholarship recipients will require every component. However, communities commit to meeting a Sentinels' unique needs.
"We're not talking about a community helping hundreds of individuals," Conklin says. "We're talking about one community, one wounded warrior at a time. It's as simple as that."

By mid-2006 the foundation and the San Ramon Valley had accepted three more severely wounded veterans into the program: Manuel Valencia, Joey Bozik and Ben Crowley. Valencia, like Brown, was from the Bay Area; Bozik and Crowley were invited to build new lives there.
Each Sentinel is welcomed home with a ceremony in his or her honor. Local military leaders, dignitaries, veterans and community groups, and area residents are invited to show support and gratitude.

Word spreads

Soon after forming, the Sentinels of Freedom Scholarship Foundation established solid partnerships with local builders and corporations who hired the Sentinels, as well as with military leaders at the Pentagon. The program also attracted a good deal of high-profile attention in the area, including extensive local newspaper coverage and meetings with California Gov. Arnold Schwarzenegger and other state leaders.

It certainly caught the attention of RE/MAX Accord Co-Broker/Owner Jerry Stadtler, a Vietnam veteran who saw potential for the program to grow. He invited Conklin to join his brokerage in early 2006.

"I was just in awe of what he was doing - the time, effort, heart and soul," Stadtler says. "It struck a chord in my heart. I don't always have time to do it all, but this was something to be involved in vicariously by supporting Mike through RE/MAX."

Conklin sees the Sentinels of Freedom extending to other communities across the country - and says RE/MAX Broker/Owners and Sales Associates are uniquely positioned to support that mission.

"My vision is that if I get a call from the Pentagon and there's a guy from Biloxi on his way home, I can pick up the phone and give an agent or broker in Biloxi the heads-up," Conklin says. "Whether they're directly involved and become part of a mentor team or not, who knows better than a RE/MAX agent or Broker/Owner where to go in town to find the support these soldiers need?"

First national sponsor

Liniger, also a Vietnam veteran, was drawn to the program's potential as well.
"When Mike presented the program to me, I knew RE/MAX could play an important part in helping it become a national scholarship," Liniger says. "Like our sponsorships with Children's Miracle Network and Komen, supporting Sentinels of Freedom adds to our goal of Premier Community Citizenship in a way that really hits home."

Lending marketing and advertising support along with other resources, RE/MAX International encourages Broker/Owners and Sales Associates to be aware of how they can help, too.
"We can put our referral network to great use to get the word out," Liniger says.

Affiliate involvement can range from donating money to volunteering on a community team to picking up the phone and contacting a local builder about donating housing. Other business associates and acquaintances may be willing to help out also, and perhaps serve as mentors to a scholarship recipient.

"No one has refused to lend support yet," Conklin says. "People of all ages have pitched in at the community level. And politics doesn't come into it. It doesn't matter who sent the soldiers to war or who our president is. None of that matters. These wounded veterans are our responsibility, and we owe them our support."

If you are interested in helping Larry and me bring The Sentinels of Freedom to Maryland, please contact me at mwoda@remax.net

Annapolis Sales Statistics - January

2007-03-03T10:07:00.000-05:00

If you did not read last week's article - Top 7 Habits of People With Great Credit Scores - be sure to scroll down and check it out. This is GREAT information!

Now is a GREAT time to buy a home in Annapolis, based upon this snapshot of the market for Annapolis (21401) zipcode during January 2007 (comparing it with January 2006):

Total Sold Dollar Volume is down 26.27% to $16,035,510
Average Sold Price is down 12% to $ 517,275
Median Sold Price is down 6.59% to $425,000
Total Units Sold is down 16.22% to 31
Average Days on Market is up 80.33% to 110
Average List Price for Sold Properties is down 10.34% to $559,300

As I've mentioned before, two statistics that always grab my eye are New Listings and New Sales. I like to see both numbers about the same. In January, however, there were 81 new listings in the 21401 zipcode of Annapolis and only 49 new sales. As inventory grows, supply and demand get further off balance and prices are more vulnerable - NOT good news for home sellers, but GREAT news for home buyers!

To obtain learn about real estate activity in YOUR neighborhood, click on Market Snapshot.

Larry and I are headed out to the RE/MAX International Convention in Atlanta, Georgia, where we expect to meet other RE/MAX pros from around the world and attend education sessions from dawn 'til dusk. In the coming weeks, I promise to share some of the new and innovative real estate solutions that we learn, so be sure to check back. I try to post a new article each weekend.

Feedback and questions:

Annapolis Sales Statistics - January

Source of Data: MRIS

Top 7 Habits of People With Great Credit Scores

2007-02-24T23:28:00.000-05:00

Eric Bramlett, of Austin, Texas, has some excellent suggestions regarding good credit habits that I want to share with my readers. The following article appeared in BrokerAgentNews on Feb. 24, 2007:

People with great credit scores have earned them for a reason - they have always borrowed money, and paid it back on time. There's really no trick to what they've done, and there is no one action that will help you get a great credit score. When someone asks me how to earn a good credit score, I tell them to look at the spending habits of those with great scores, and to develop the same habits. Here are the 7 habits of people with great credit scores.

1. Never Pay Cash

People with great credit scores want every purchase to count. And a purchase doesn't count unless the 3 bureaus know about it! The only way to make sure that the bureaus know how much money you're spending is to put everything on your card(s). Rather than deposit your paycheck and spend, think of your spending as a monetary cycle: Put your paycheck in the bank, spend with your credit cards, and pay off the cards with the funds you've already deposited. It's one extra step that pays off big with the added security and boost to your score that credit cards provide. Credit cards aren't just for larger purchases anymore. Using your credit cards for items like soft drinks and gum has become so common that credit card companies have given a name to them: "Micro-purchases."

2. Never Use a Debit Card

You won't find a debit card in the wallets of people with great credit scores. Debit cards provide you absolutely nothing that a credit card won't, and credit cards will build your credit score! Furthermore, if someone steals your credit card, you're protected against fraudulent purchases, while with a debit card, you're out of luck! People with great credit scores take every opportunity to build their credit - going to the grocery store, buying gas, or renting movies!

3. Pay Off Your Balance(s)

People with great credit scores don't typically carry high credit card balances. The easiest way to emulate this is to make sure that you don't carry ANY balances. You'll obtain the best credit score if you make sure that you're using the smallest portion of your potential limit - which means "Zero." People with great credit scores make sure to use their cards, but pay the balance off every month.

4. Put Yourself on a Bill Payment Schedule

In order for the credit bureaus to reward your good spending habits, you have to pay your bills on time. However, you have a little leeway. While it's not a good idea to pay your bills a few days late because your creditors will charge you late penalties, it won't affect your credit score negatively unless you pay them more than 30 days late. The easiest way to stay on top of your bills is to pick one day out of the month to take care of everything.

5. Consistently Request Higher Credit Card Limits

Because people with great credit scores habitually borrow money and immediately pay it off, the credit card companies are very comfortable consistently raising their spending limits. People with great credit scores consistently request higher limits because it allows them the freedom to borrow and keep a balance, if the need arises, without lowering their scores. You will have the best credit score if you keep the balances of your cards below roughly 35% of the spending limit of each card. People with great credit scores don't habitually spend over 35% of the limit of their cards. Furthermore, if you have high limits, you can take advantage of the promotional offers that the banks offer from time to time. A borrower I know with a great score recently transferred the second mortgage on his home to a 1.99% APR promotional rate on his credit card - the rate is good for the life of the loan!

6. Never Close a Credit Card Account

The credit bureaus take into account the age of your credit lines - and people with great credit scores know this, and exploit it. Many times, people with mediocre or low scores will pay off a card they've abused and close the account because they subconsciously think it was the card's fault they let the balance get as high as it did. This is NOT the correct thing to do in this situation. That card has a great history behind it! You've shown the bureaus that you're willing to borrow a large sum of money and then pay it down to zero. People with great credit scores NEVER close credit card accounts because they want to show that they have a long history of properly using credit.

7. Never Rent

Your home is probably the largest purchase you will ever make in your life, and is the one purchase that can make the biggest impact on your credit score. When you purchase a home, you're showing the bureaus that you can consistently budget yourself to pay a large portion of your income towards an account on a monthly basis. There are a number of reasons people with great credit scores refuse to rent, and the impact of paying a mortgage on their scores is one of them. When a first time homebuyer finally closes on their home and pays the mortgage on time for a few months, they will see their credit score jump around 50 points - and sometimes higher!
People with great credit scores haven't achieved anything too terribly difficult - they've merely adopted some fantastic spending habits. If you would like to earn a great credit score, borrow these habits and watch your score climb. Along with your score, your financial health should benefit, as well!

Feedback and Questions:

Top 7 Habits of People With Great Credit Scores

Choosing your real estate agent – online

2007-02-18T12:02:00.000-05:00

Professional Knowledge, Business Accomplishments, Community Involvement, Industry Leadership, and Integrity - These are the criteria used by Realtors themselves for honoring one agent annually in their local, state and national associations. Aren't these the same qualities you want in the agent YOU choose?

I've always felt that a sixth category is important: Philosophy and personal qualities. It is my feeling that you and your agent should be “on the same page” and like each other. Today, in 2007, I would add a seventh quality to my criteria for choosing a real estate agent: Tech-savvy.

If you are tech-savvy in your work and life, don’t you want an agent who is, too? Frankly, not many are. It is easier than ever for you to evaluate a prospective agent by simply going online to check out the web presence of any agent you consider hiring. You can effectively interview dozens of real estate agents through viewing their websites, if you like, before you every even speak to one.

What does the website say about the agent’s ability to use today’s technology in helping you achieve your goals?

Has the agent invested in today's technology to create a personal website? or...
Does the agent at least have a personal page on the company website - including a photo, contact information, and testimonials or references?
Is the agent's website or page static, or is does it appear to be updated periodically? (Look for a blog, news feed or other indication that information reflects current market conditions.)
Are there technology tools on the website for YOU to use? (Look for a link to the MLS, to recent real estate sales statistics and other calculators or tools.)
Is it easy to contact the agent or obtain personalized information with a simple “click”? (How about business address and phone number?)

What does the website say about the agent? Does it set this agent apart from average agents by communicating his or her qualifications, based upon the first six criteria?

Professional knowledge (Helpful real estate advice and tools to help you with your home sale or purchase)
Business accomplishments (Agent's resume indicating professional licenses or designations and awards earned)
Community involvement (Emphasis on the area and communities)
Industry leadership (Evidence of leadership roles in professional organizations)
Integrity (References or testimonials)
Philosophy and personal qualities (As reflected in the style and content of the agent’s website)

If the agent passes this scrutiny, contact him or her and ask more about his or her technology use in business. For example, if you communicate a lot using text messaging, is this something that he or she does also? Will he or she promptly receive inquiries on a PDA from prospective buyers for your house, or have to wait until returning to the office? Will your home be featured on his or her website as well as in the multiple listing service?

It is easier than ever for you to choose the "right" agent with the help of the Internet, but don't choose an agent based on website alone - be sure to look for those all-important first five criteria: Professional Knowledge, Business Accomplishments, Community Involvement, Industry Leadership and Integrity. They are the most important qualifications for choosing your real estate agent - online or in person.

More information:
Choosing your buyer’s agent
Choosing your listing agent

Questions and feedback:
mwoda@remax.net
www.MargaretWoda.com

Choosing your real estate agent – online

21114 Sales Statistics for January 2007

2007-02-09T21:50:00.000-05:00

The Metropolitan Regional Information Systems, Inc. (MRIS) released sales statistics for the first month of 2007 this week, and they are not pretty. The first thing I looked at was “Average Days on Market” in the 21114 zipcode, where my own home and office are located. Knowing that the figure for Average Days on Market in December was 86, I was stunned to see that it was 117 in January. Okay, here is the comparison of 21114 sales statistics for January 2007, compared with January 2006:

Total Sold Volume – DOWN 7% to $14,716,525
Average sold price – UP 10.13% to $387,277
Median sold price – UP 9.52% to $339,599
Total units sold – DOWN 15.56% to 38
Average Days on Market – UP 160% to 117
Average List Price for Solds – UP 14.73% to $414,050
*Average Sale Price as a Percentage of Average List Price – DOWN to 93.3%

*Does not take into account the original list price of properties, only their list price at the time of the sale.

As I mentioned in earlier posts, I like to keep track of whether sales are occurring at the same rate as new listings are coming on the market. Unfortunately, they were not in January: 61 new listings, and 47 properties sold (contingent and non-contingent combined). As the inventory of home grows, the supply and demand balance is getting further and further off kilter. When this happens, prices are driven downward – NOT good news for home sellers, but good for buyers.

I will be happy to post sales statistics for other zipcodes - Just let me know what zipcode you would like to see.

Feedback or Questions:

21114 Sales Statistics for January
Source: MRIS and Margaret Woda

Have you heard of buySAFE.com?

2007-02-06T07:43:00.000-05:00

Okay, I admit it - this has nothing to do with real estate. There are plenty of posts for you to scroll down and read about a variety of real estate topics (and I hope you do). For a moment, though, I'd like to be just a proud mom and quote the article that appeared in yesterday's Washington Times about my son, Steve.

http://washingtontimes.com/business/20070204-101331-6529r.htm

BuySafe founder guarantees delivery
February 5, 2007

Steve Woda knows what it's like to get burned buying products online. In 1999, he bought a hand-held computer on EBay, or so he thought.

"I thought I had done all my homework; I thought I was safe, but the product never arrived," said Mr. Woda. "I was upset. As a starving grad student, I didn't have $400 to lose." Today, as founder of BuySafe Inc., an online shopping security firm in Arlington, Mr. Woda hopes to end online shopping fraud.

Mr. Woda, a former portfolio manager of USF&G Insurance Co., a surety bond company based in Fairfield, Calif., saw how surety bonds could bring accountability to online shopping and decided to change the way consumers make purchases online.

Mr. Woda refined his business plan for BuySafe at the Wharton School of the University of Pennsylvania, where he earned his master's degree in business administration in 2001.

Mr. Woda founded BuySafe in 2000 with the idea that he could guarantee online transactions with bonds that would reimburse buyers if they don't receive their goods.

"Basically, we vouch for [sellers] and put our money where our mouth is," Mr. Woda said. Online sellers can apply to become BuySafe bonded merchants. BuySafe uses its data analysis software to determine the trustworthiness of merchants by evaluating their selling history and buyer feedback.

If approved, an online merchant then pays 1 percent of the sales price of every transaction to display the BuySafe seal on the items it sells. In return, BuySafe guarantees the transaction up to $25,000 and will reimburse a buyer if the seller fails to deliver a product. "This is the perfect solution to the EBay problem," Mr. Woda said. "Buyers no longer have to worry about who they are buying from, whether the product will arrive broken or not arrive at all."

BuySafe has 40 employees and has authorized more than $10 billion in online transactions. The percentage of bonds it has had to reimburse is in the single digits, Mr. Woda said.

Starting an Internet company in 2000, at the bottom of the dot-com collapse, was no easy feat. "Times like that sort the good businesses from the bad," said Mr. Woda, who managed to raise $21 million in venture capital in a difficult environment.

"Steve is a guy who can learn from [his] mistakes. He builds aggressively and largely for the future," said Jonathan Silver, a managing director with Core Capital, a venture capital firm in the District. "I think what he and his company are working on is very big and very important," said Mr. Silver, who is an investor in BuySafe and serves on the company's board of directors.

In the future, Mr. Woda said, he plans to expand BuySafe's services to small- and medium-sized businesses and begin working with larger sellers and search engines.

He lives in Arlington with his wife, Sharon.

-- Bryce Baschuk

The Washington Times

MORE INFORMATION ABOUT buySAFE:

www.buySAFE.com

http://blog.swoda.com/

http://buySAFEshopping.com/

http://www.marketwire.com/mw/release_html_b1?release_id=211449

Feedback or request real estate information:
Email: mwoda@remax.net
Website: http://www.margaretwoda.com/
Crofton Real Estate

Annapolis Sales Statistics

2007-02-05T12:26:00.000-05:00

December is the most recent month for which MRIS sales statistics are available for the Annapolis, MD real estate market, comparing 2006 to December 2005:

Total Sold Dollar Volume is DOWN 22.39% to $28,934,980
Average Sold price is UP 15.59% to $615,638
Median Sold Price is DOWN 5.11% to $390,000
Total Units Sold is DOWN 32.86% to 47
Average Days on Market UP 130.91% to 127
Average List Price for Sold UP 22.82% to $684,140
Properties

In December there were 39 new listings and 38 that received contracts (contingent and non-contingent). In the final analysis, I think this is one of the most important factors to consider: The inventory did not grow markedly – i.e., properties listed and sold at about the same pace.

It is interesting to note that buyers for 39 of the 47 sold properties used Conventional financing. Only 11 of the 47 sold properties were listed for less than 30 days before the sale, and 15 properties were listed for more than 120 days before the sale.

Please note that MRIS statistics do not currently take into account the “original” list price of properties, only the list price at the time of sale. MRIS is currently working towards release of an update that will track both “original price” and “list price at time of sale”. Since I am on the MRIS Subscriber’s Advisory Council, you may hear it from me first when this is available. Keep watching this blog for January sales figures and year-end sales figures when they are released.

If you would like market statistics for another zipcode in the area served by MRIS, please just ask.

Feedback or more information:

Website: www.MargaretWoda.com
Email: mwoda@remax.net

Annapolis Sales Statistics

Source: Margaret Woda and MRIS

New Home Fever

2007-01-27T14:35:00.000-05:00

As spring approaches, so does the annual rush to new home communities with their professionally-decorated model homes that impress, attractive landscaping that gives new meaning to the term “curb appeal”, and deals that seem too good to overlook. It is so easy to buy a new home, that you will wonder why you ever considered resale.

Before you go down this path, let me share my seven rules for buying a new home:

1. Never step foot into a new home model without your own licensed buyer’s agent.

Reputable builders who offer to co-op with brokers, and most of them do, have already included this expense in their pricing. In other words, you’re paying for a buyer’s agent in the price of the home whether you have the benefit of an agent’s representation or not. You will not get a “break” in your home price when you buy new construction without an agent.

2. Never step foot into a new home with a lender’s pre-approval in hand.

Builders do tend to have their own in-house lenders whose job it is to enable you to buy the new home. And you may decide to work with this lender, rather than the one who pre-approves you. But the pre-approval assures you an independent assessment of your home-buying qualifications from a mortgage professional with no affiliation to the builder.

3. Don’t agree to use the builder’s lender without comparison-shopping.

Some lenders recommended by builders provide a kickback or finder’s fee to the builder and they pass on that cost to borrowers in the form of a higher interest rate or closing costs. When a builder offers you incentives (free finished basement, closing cost help, upgrades) for using their recommended lender, realize that you probably are paying for those items in the higher costs of your loan. Otherwise, why would the builder care where you borrow your money?

4. Before you sign a contract, research the builder.

The best way to do this is to knock on the door of homeowners that previously purchased from this builder in the same or other nearby communities. Don’t stop with one or two if you run into unhappy homeowners, because any community will have a certain number of people who are impossible to please. Walk away from the builder and new home if a substantial number of current homeowners report bad experiences with the purchase or after-closing service.

5. Before you sign a contract, research the area.

This is particularly important if there is vacant land nearby, because you want to know what the zoning is currently as well as any proposed changes. But don’t stop there – be sure to check with the Department of Transportation to identify any possible road construction that could interfere with your property or the traffic patterns you expect to encounter.

6. Include a home inspection contingency in your sales contract.

A new home is not automatically “okay”. Most people do this for re-sale homes today, but few make the small investment to do so for new construction. The local building inspector only looks for compliance with building code, not for best practices. Even if a home inspector finds no major issues, that peace of mind is worth every penny spent on the home inspection.

7. Get everything in writing.

Buying a home is always an emotional experience, especially if it is a brand new home with other prospective buyers walking through the model as you’re sitting in the sales office contemplating a decision. Most reputable builders will accept a deposit on the home and lot you’re considering for at least a few days so you have time to preview their standard sales contract and do a little planning without the house selling out from under you. Be sure to ask for this.

During that time, sit down and make a list of every detail including your choice of lender, payment by the builder to your buyer’s agent, options, guarantees, the home inspection contingency, timing for completion and anything else you have discussed with the sales person, your agent, and your spouse. Make sure that everything YOU want is included in the sales contract, not just the builder’s standard wording. In fact, challenge any of the contract provisions if you do not fully understand and agree to without hesitation.

Buying a new home can be a wonderful experience, and living there can be even better. If you have new home fever, contact me for some additional hints to assure a smooth and pleasant experience.

Military Transfer to Maryland?

2007-01-20T10:45:00.000-05:00

This dreaded word has haunted military families since the frontier days: “Orders.” (Army Wives on the American Frontier by Anne Bruner Eales)

That little bitty paper called “orders” can have a big impact on many lives (that’s a polite way of saying your life and that of your family is about to turn upside down). Goodbye, friends. Goodbye, familiar schools. Goodbye, familiar doctors. Goodbye, scout troop. Goodbye, favorite restaurant with the world’s best Rueben sandwich. Goodbye, soccer team. Goodbye, routine. Daddy or Mommy is going to ______ and you’ll be “fine” in the new location. It will be an adventure. You’ll make new friends.

Ahhhhhh… I remember those days. I’ll always remember the year that my husband drove to Maryland from Rhode Island to pick me up on Thursday night (about 8 hours), and we drove to Charleston, South Carolina to look for a home (about 10 hours). Our two children stayed behind with grandparents – thank goodness! We arrived on Good Friday afternoon, when many of the real estate offices were closed for the Easter weekend, and we had to look at houses and neighborhoods, select a place to buy, write an offer, and get a loan by dinner time on Saturday so we could drive back to Maryland on Sunday in time for my husband to continue back to Rhode Island and try to get a little rest before the next morning. I wouldn’t wish that experience on anyone, yet I know it is not unusual for military families, even today.

If you’re expecting orders to any of the many military facilities in the D.C. – Baltimore area, you will face enough upheaval that you cannot control – so take charge of at least one factor that is within your control: work with a real estate agent and lender who “get” what you’re facing… who understand the whole military pay thing, and the fact that some portion of it will be different in this area than it is in your current duty station and some of your income is not taxable.

Yes, the Internet is great, and you can sit at a computer in Germany and look for homes in Maryland. The truth is that your relocation will be much easier if you put this job in the hands of an experienced real estate agent who is familiar with the area AND has specific experience in working with the military. Even with all those fancy websites you can visit to learn about an area, there’s still nothing like a relocation package prepared especially for you that is filled with home listings and brochures about area sites and businesses. There is something about holding this information in your hand that makes you feel more in control.

And wouldn't it be nice to have someone waiting and ready to show you homes when you arrive - someone with whom you've been communicating for several weeks or months, so they know your expectations and concerns?

If you have orders, contact me today for a FREE Maryland Relocation Package or for help in finding a military-friendly real estate agent in one of the 63 countries around the world that is served by RE/MAX offices and agents.

Related links:

Feedback or questions:

Military Transfer to Maryland?

CHANGING MARKET - It's not as bad as you imagine!

2007-01-13T09:47:00.000-05:00

One of my website visitors recently commented that “homes just aren’t selling now”, and I assured him that they are selling in his zipcode – at a slightly lower sale price and longer timeframe than a year ago, but they definitely ARE selling.

It occurs to me that the pace of home sales could be a concern for many of you, so let me share with you the statistics for December (the most recent month for which they are available):

December 2006 vs. December 2005 in Crofton, MD (21114)

Contact me for statistics in any other zipcode served by the Metropolitan Regional Information Systems, Inc., the regional multiple listing service for parts of Maryland, Virginia, Delaware, Pennsylvania and Washington , D.C.

The average “sold” price is UP 1.32% – $363,155
The median “sold” price is DOWN 4.32% – $330,000
Total units sold is up 18.38 % – 38
Average days on market more than doubled – 86
Total new listings – 27
Total new sales – 38

I think it’s a very good thing to see that there were more sales than new listings in December. “Days on market” is still less than the 4-6 months that has often been the norm in Crofton over the years. And prices in Crofton are not nearly as low as the media would have you believe. So take heart!

And make your plans accordingly, if you're thinking of selling. First, sell your home BEFORE you contract to buy a new one in order to decrease your stress and increase your negotiating power for the next home. Second, start trying to sell about four-six months BEFORE you want to move. By the time your home is on the market for about 90 days and it gets to settlement, you could be looking at that much lead-time. Be prepared, however, to make a two-step move because you will want to accept any strong offer you receive – even if it comes in the first week. A quick sale like that may not fit your schedule if you list six months before you plan to move, and you may have to make temporary arrangements for a few weeks or months.

In a buyer’s market, it is critical that you find an experienced real estate professional who has worked in a buyer’s market before and knows how to handle it. Don’t underestimate the importance of this advice. This choice will impact whether your home sells, for how much, and how long it takes.

Again, if you would like to see similar statistics for any other zip code served by the MRIS, please contact me directly for the information.

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com
Crofton Real Estate

CHANGING MARKET – It’s not as bad as you imagine!
Source: Margaret Woda and MRIS

New real estate investors, this is for you.

2007-01-07T08:50:00.000-05:00

Is “Invest in Real Estate” one of your New Years Resolutions?

I’m not referring to experienced investors who already have several transactions under their belts, who recognize that they are still learning, and who soak up all the information they can from experienced real estate agents and other experts. These real estate investors are probably already on the right track, although it never hurts to go back to the basics.

I am addressing this to folks who have decided to purchase a property for investment yet never done so, who do not comprehend the difficulties they face, and who consider themselves expert because they attended a seminar or read an article or two. If this describes you, be sure to continue reading...

1. Walk before you run.

You probably wouldn’t run a marathon without training because you want to minimize the risk of injury and you don’t want to collapse before the finish line. Well, you shouldn’t start investing in real estate without training either.

Start by talking to the real estate pros and considering every word of advice from experienced investors and real estate professionals alike. Keep notes, and keep track of who suggested what so you can follow up with these advisors later if you run into a situation they’ve faced in their own situation. Then, start small. You can minimize your risk with that first investment property – and there are many risks – by controlling your variable costs.

If you’re buying an income property, for example, choose one that’s already rented, preferably to long-term tenants. This will enable you to realistically anticipate the cash flow for your new investment without likelihood of immediate vacancy factor or rental costs. If you’re buying a property to "flip” – i.e. rehab and sell for profit – remember that it comes with carrying costs as well as hidden construction costs that are difficult to anticipate. “Flip This House” is fun to watch on TV but, as Eric Bramlett says, that’s about as realistic for the average investor as “Sponge Bob Square Pants.” (Bramlett is the broker and owner of One Source Realty in Austin, Texas.)

2. Remember that real estate investing is a marathon, not a sprint.

Quick profit in real estate is more of a myth than a reality. Buying houses to rehab and flip may seem like the best and fastest route to profit, but it is hard work and requires skill, foresight, market knowledge and financial resources. It’s hardly a good first step into real estate investing. Again, the best advice is to start small.
Choose a property that you can purchase at a price significantly below market; one that is structurally sound and needs only cosmetic touches or clean-up to sell at top dollar.

And don’t forget to use a 1031 Starker Exchange, or you will have a hefty tax bill eating into your profits. Income-producing property will appreciate and add to your wealth with minimal risk and without significant effort on your part. With the help of an experienced real estate agent, purchase a property that is structurally sound and likely to appreciate, hire a property management company to deal with the day-to-day hassles, and go about your life – with the bonus of a small rental income check in your mailbox every month. A few years later you can re-finance the property to pull out cash for other investments or sell it for a profit. Again, don’t forget your friend, the 1031 Starker Exchange.

3. Make and follow a business plan.

After you learn everything you can and build a team of real estate professionals – an accountant or tax advisor, experienced real estate agent, property management company, and home-improvement contractor – it’s time for you to sit down and develop your short-term and long-term business plan.

You want to know how much money you have to spend up-front, how much reserve you can set aside for unexpected expenses, how much monthly expense you can handle, how much time you can devote to this. You want to know how much income you hope to generate and whether you want to focus on rehabbing and flipping or income-producing properties. Be sure to include the cost of real estate professionals in your budget, and remember that you get what you pay for. It is likely that experienced and knowledgeable professionals may charge you more – but your end profits, with the benefit of good professional advice, are likely to be optimized. Decide upon an area, a type of property, and an approach to purchasing… Ask yourself if you plan to “rent with an option” or use some other deferred settlement strategy, buy foreclosure properties, or search for hidden gems in the marketplace. Do you plan to use the equity in your home to pay cash for the purchase or do you have a pre-approved loan in place for investing?

Make a plan, execute it – and stick to it! ‘Chances are that other investors are looking for similar properties, and the best ones get snapped up quickly. For example, I recently listed a property for a distressed seller, and the price was very, very low for a quick sale. Numerous agents and investors contacted me within hours of the property going on the market, but one investor wrote a full-price non-contingent cash contract within an hour of its going into the computer – sight unseen! He had a plan, kept his eye on the multiple listing service, and knew this property met his guidelines; he didn’t have to give a second thought to purchasing the property before anyone could even look at the property.

A word of caution: Like any investment, whether it is the stock market or real estate, income potential is real but not guaranteed. You should never invest money that is not discretionary, i.e. money that you can’t afford to lose. Minimize your risk of loss by working with experienced real estate professionals.

Feedback or more information:

New real estate investors, this is for you
Copyright 2007. All rights reserved. Margaret Woda

On-line home searches

2006-12-29T10:11:00.000-05:00

It's no secret that today's home buyers begin their home search online. But it's not just anecdotal -

According to the latest release from the Pew Internet & American Life Project, 51% of all Internet users had taken an online home tour as of August of 2006. This is an increase from 45% just two years ago, in November 2004. With growth like this, it's no wonder that real estate brokers and agents are going online to promote themselves and their listed properties.

Pew found that age, not income, is the best indicator of who will go online to search for a home: 27% of Internet users age 50-64 have looked at homes online, while 43% of users age 30-49, and 51% of users age 18-29. This suggests that perhaps brokers and agents should target their websites to tech-savvy young adults rather than more mature homebuyers - even though it may be more likely that mature homebuyers will have the resources to buy the expensive properties. (Perhaps I knew that instinctively, and that's why my new website - coming soon! - will have a flash slideshow, a do-it-yourself mortgage calculator and home search tools.)

Education is another indicator of likely online homesearchers: 46% of Internet users who are college graduates have looked at homes online; 38% of those who have some college, and just 34% of high school graduates. Online experience also factors into the decision to look online for a home: Those with 6 or more years of online experience are 50% more likely (45%) than those with 4-5 years experience (30%), and nearly double those with less than 3 years experience (23%).

There are many more facts and figures in the full Pew Report published earlier this month by Senior Research Fellow Deborah Fallows. But this is not the last, or only, word on this topic.

Market Research finds buying power is hiding in empty nests, according to an article released on December 6 in Houston by The Media Audit. Among other things, the article reports that the Internet, along with newspapers, dominates the media interest of this group. So perhaps there is an online target market for real estate brokers and agents, after all, for more mature Internet users. As Tim O'Keefe says, in his real estate marketing blog, it's a little like "eggs are bad, then they are good for you type of thing."

The National Association of Realtors surveyed actual home buyers in 2003, rather than Internet users in general (as Pew did), and found that 71% began their home searches online. Given the growth in Internet use over the past 3 years, one can reasonably surmise that the number would be greater in a similar study today.

The bottom line, of course, is that online home searches are here to stay. It is my goal to make the most of this phenomena by developing a truly effectivce real estate website. I'd be very interested in hearing YOUR input about what you'd like to see in a broker or agent's website, so that I can incorporate it into my new and revised website which is now in development.

Other links:

Lisa Phillips - Senior Analyst
Talk about Online Real Estate - eMarketer.com

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com
Crofton Real Estate

On-line home searches

December Update - New real estate newsletter

2006-12-21T09:17:00.000-05:00

If it seems to you like all the real estate economists are forecasting doom for the market, take a look at REAL TRENDS - DEC. 2006, which I'm sharing with you today. It may help you separate fact from fiction; it will, at least, provide some interesting reading for anyone who may be interested in real estate, whether you are a real estate professional, homeowner, investor or potential buyer.

I had intended to piggyback on some of these articles and insert my own 2 cents, but it's fairly lengthy. Why don't you take a look, send me your comments, and I'll decide from there which elements of the report to expand upon in future blogs.

This update is published by the Metropolitan Regional Information System (MRIS), a regional multiple listing service owner by local associations of REALTORS in the Middle Atlantic states.

REAL TRENDS - DEC. 2006

For feedback or more information:

mwoda@remax.net
www.MargaretWoda.com
Crofton Maryland Real Estate

December Update - New real estate newsletter

All Offers Are Not Created Equal

2006-12-17T18:59:00.000-05:00

After weeks of preparation, agonizing over the pricing decision, the inconvenience of showing your home… you finally get that phone call you’ve been eagerly waiting to receive. “There’s an offer on your home!” Now what, you ask yourself.

There are a number of issues to consider when you evaluate any offer on your property. For example:

Price

Price is always the first thing that homeowners want to know about an offer. How close is the offer to your asking price? Remember, the bottom line is actually more important than the sale price. For that reason, estimating your net proceeds is an essential element when considering whether to accept any offer. You may also wish to consider the strength of the market – ask yourself how likely it is that another buyer with a “perfect” offer is just around the corner. In a seller’s market, you can be more picky; in a buyer’s market, you’d better work with any offer you receive to reach an agreement.

Contingencies

Virtually every home purchase contract has some contingencies, and many of these are extremely reasonable. But it's important to consider the potential impact of these conditions. It may be advisable to accept a lower price with few contingencies over a higher figure with a large list of conditions.

Financing is a contingency that appears in nearly every contract – if the buyer cannot obtain financing for any reason, the contract will terminate. You will find an appraisal contingency in most contracts – if the property does not appraise at the agreed upon sale price, it’s back to the drawing board! Another common contingency is a home inspection; while this is a reasonable contingency, it can become a starting point for renegotiating terms of the contract.

Some contingencies can be very risky, such as a home-sale contingency. In this case, a home seller simply trades the risk of selling his own home for the risk of selling a different one - and with far less control over factors which impact the sale of the buyer’s current home. There must be a compelling reason (or two or three) for even considering a home-sale contingency, let alone accepting one as a condition of your home sale.

Buyer's Qualifications

Since it is unusual for homebuyers to have a suitcase full of cash for purchasing your property, a pre-approved buyer is the next best thing. It is important to distinguish between pre-approved and pre-qualified buyers, so let me explain the difference: Pre-qualification is simply an opinion of whether the buyer appears credit-worthy, as opposed to pre-approval which is based upon verification of the buyer’s income, assets, and other obligations.

Please keep in mind that even a pre-approval is not final, however, because it will always be subject to an appraisal of the property and possibly certain inspections.

Seller's Concessions

A buyer may ask you to pay some or all of their closing costs; to include some personal property such as window coverings; to make changes to the property such as restoring a finished garage to its original state; to allow the buyer to occupy the property prior to settlement. Concessions such as these could mean the difference between selling your property or keeping it on the market for several more days, weeks or months.

You will have to consider each request to determine how it impacts your home-selling goals. It’s possible that a buyer would ask for several concessions that you are more than willing to make in order to sell your home. However, you are not obligated to make any concession that isn’t offered in your initial listing for the property.

Multiple Offers

If you are fortunate enough to receive multiple offers, review each one carefully and rank them based upon pre-determined factors such as the bottom line, timing, buyers’ financial qualifications and the presence or absence of contingencies and concessions. Once you decide which contract offers terms most closely aligned with your priorities, begin negotiations with that homebuyer. If agreement cannot be reached, move on and negotiate with another homebuyer. Just be careful not to negotiate with more than one homebuyer at a time, because you only have one house to sell, and you don’t want to end up in court.

Your Response

You have three choices when you receive an offer: accept it, reject it, or make a counter-offer. Frankly, it is rare that home sellers receive a “perfect” offer than can be accepted without any negotiations, but it does happen occasionally. I’ve even had sellers who received thousands of dollars over the asking price, no contingencies (not even financing or appraisal), and perfect timing. But don’t count on this happening – especially not in a buyer’s market.

I rarely recommend rejection, even when an offer seems outrageous, and even when it’s a seller’s market. Some buyers and buyers’ agents use a strategy of testing the priorities of home sellers by offering an extremely low price and asking the seller to accept multiple contingencies and concessions. You have nothing to lose, except a few minutes, by making a genuine counter-offer that reflects the bottom line you will accept. At least this keeps the door open with this buyer for future more realistic negotiations.

Most buyers make an offer in good faith, asking only for concessions and contingencies that reflect the buyers’ priorities. More often than not, we can compromise and reach agreement. If you are my client, I will help you craft a counter-offer to satisfy your goals as well as those of your prospective buyer.

For feedback or more information:

mwoda@remax.net
www.MargaretWoda.com
Crofton Maryland Real Estate

All Offers Are Not Created Equal

Source: Margaret Woda

The GoHomeNetworks, Inc.

Metropolitan Regional Information Systems, Inc. (MRIS)

How much house can you afford?

2006-12-11T13:45:00.000-05:00

Throw out all those magic formulas you heard about for calculating what price home you can buy. The truth is that there are many factors which go into the answer to this question. You cannot rely upon the online calculators, either, because different lenders have different programs and criteria that the calculators do not take into account, and the criteria may be flexible.

The best way to find out how much house you can afford is to touch base with me and my financial partners – or an experienced loan originator of your choice. In the meantime, here are the factors that impact the answer to "How much house can you afford?":

Down payment

The amount of cash that you invest, together with your loan amount, will equal the price of the house. The larger your cash down payment, the more house you can buy, and vice-versa. That being said, housing is not a liquid investment; it is necessary to sell, or at least re-finance, to take cash out of your home once it is invested.

For this reason, most people make a down payment no greater than 20% of the purchase price. Some homebuyers put down as little as 5% or even no money at all. It is important to know that borrowers who put down less than 20% may be charged an extra closing cost and/or monthly fee known as Private Mortgage Insurance (PMI), which protects lenders against loss if a borrower defaults. My lender partners usually help my clients obtain a loan with minimum down payment and no PMI charge – but this is an exception rather than the rule in the mortgage market.

Generally speaking, the down payment should be your personal funds such as savings, insurance proceeds, investments, equity from a previous home, or a gift. As part of your loan application process, your lender will verify your assets to confirm that your down payment is not borrowed money; if your down payment is a gift, the donor will be asked to provide a letter stating that no repayment is required or expected.

Credit qualifications

It’s a good idea for you to obtain a credit report in advance of making loan application so you can identify any inaccuracies and report them to the credit bureau(s); it could take 30-45 days for any inaccuracies to be verified and corrected on your credit report. If you do this several weeks before you start shopping for a home and mortgage, you may save time in the mortgage loan processing, which could be delayed if inaccuracies are not discovered until the lender orders your credit. While doing this is desirable, it is not required, and most people do not have inaccuracies on their credit reports.

Your credit-worthiness is indicated by the FICO Score on your credit report; borrowers with higher scores will have more loan programs to choose from and a better interest rate than borrowers with a lower score. My lender partners have a knack for finding the best loan for each of my clients – whether they have a recent bankruptcy, no credit at all, or the best credit in the world. Don’t let concerns about poor credit stop you from pursuing home-ownership because I’ve helped many clients overcome this obstacle to buy a home!

Monthly payment

The monthly payment for which you qualify depends primarily on these factors:

Monthly income and obligations are measured against your gross income to make sure your mortgage payment does not exceed your ability to pay. First, your housing expense (PITI) is calculated as a percentage of your gross income (before any deductions), and then your total debt obligations (including your housing expense) are calculated as a percentage of your gross income. For example, if the ratios required for a loan are 28/36, that means your housing expense (PITI) cannot exceed 28% of your gross income and your total debts cannot exceed 36% of your gross income. The ratios permitted will vary from one loan program to another – some are more liberal than others.
Current interest rates will significantly impact the amount of your home loan because just 1% could make it harder to achieve the required ratios. As interest rates increase, more creative mortgage loan programs become available to help homebuyers cope with the situation. For example, adjustable rate mortgages (ARM) or buydown mortgages. You can trust my lender partners to work with you to obtain a loan that works for you, whatever the interest rates may be. Whenever interest rates come down, you can refinance at minimal cost to take advantage of an improving market.
Taxes, Insurance and Condo/HOA fees will be included in your totally monthly payment. For that reason, it may be prudent to purchase in a community with lower costs, assuming the purchase prices are equal.

Generally speaking, I am not a fan of online mortgage mills which may have a fancy website, but may be operated out of someone’s garage in Iowa or Pakistan. Local lenders work every day with appraisers who know this market well, who provide prompt turnaround and can be counted on for all of the background information required by the firm’s loan underwriter. And local lenders work on a first-name basis with local title companies to handle all the paperwork for your settlement.

It has been my experience that working with a local lender is the best way to determine how much house you can afford. If any lender quotes you significantly lower closing costs or interest rate, you can be sure that the loan will come with hidden costs that more than make up for any savings. Disreputable lenders rely upon the fact that you may not know what questions to ask, and even some credit unions rely upon your loyalty over common sense.

Instead of relying upon the Internet, online do-it-yourself calculators, or obsolete “magic formulas” to determine how much house you can afford, obtain a reliable answer from a local lender, or contact me through my website.

For feedback or more information:

How Much House Can You Afford?
Copyright 2001. All rights reserved. Margaret Woda

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Feedback Regarding Real Estate Fees

2006-11-30T10:25:00.000-05:00

Yes, I was one of many real estate professionals who responded to "Last Stand of the Six-Percenters", a posting (based upon a New York Times article with the same title) that appeared on brokeragentnews.com a few weeks ago.

A follow-up article appeared today, containing responses from many other real estate professionals who feel as strongly as I do about the value of my professional services, compared to a typical discount real estate agent or firm. (My response is not in the follow-up article, but I couldn't resist adding a few words to one agent's comments and additional comments are added after this article.)

Please note that this is NOT to say that I, my company, or anyone quoted in this article charges 6% or any specific fixed fee, because fees charged by real estate agents and companies are negotiable; real estate fees are not fixed by law, custom, or the policies of any organization. Reference to the 6% figure is ONLY to the article's title.

The principal under discussion is this: Quality real estate service at a higher price or minimal real estate service at a lower price. I think you would agree that you can buy a better quality shirt at Nordstroms for a higher price than you can for a lower price at Kmart or Target. Replies in the following article are a defense of high quality real estate services to the public in the face of competition from discounters that provide little service, if any.

Here's the article (and please feel free to provide your feedback regarding this topic):

Online Marketing: Agents Sound off About How to Combat Discounters
by Michael E. Parker
BrokerAgentNews.com

A recent article we wrote attracted more customer feedback than any other we have ever written. That article, "Last Stand of the Six Per-centers" - taken from an article of the same title in the New York Times - seemed to strike a chord with so many professionals that it seemed some of their excellent ideas for how to combat the tactics of discounters should be shared with everyone reading this column.

Before doing so, however, first, let me thank you all for taking the time to respond and for agreeing to share your good ideas with others. Comments received were overwhelmingly favorable (you can read that article by clicking here.

Although I'd like to publish everyone's comments, there isn't enough space available to do so. We received only two negative comments: one started out, "you are a fool" We won't be quoting that one! Another accused us of offering opinion without factual back up; it's like the writer did not believe in the practices of the discounters we cited. We sent that writer a reference to validate that we did not make it up. Here, then, (with some editing and rephrasing done by us) are points to ponder when resisting discounters:

The liability issue.
"I believe agents are also not emphasizing the value of their liability reduction strongly enough. These "fly-by-night" discounters are here today and gone tomorrow. It might not be a matter of "If you get sued" it's more like "When you get sued." If a seller happens to be hit with a lawsuit over the sale, that seller had better hope that the broker is still in business so that someone else is helping defend them. How can any discounter be on top of local disclosures, local codes, cc& r's, and how could any generic discounter who is not involved in the community protect the seller?" - Loren Prentice, a RE/MAX agent from Southern California.

Making the distinction between yourself and ordinary agents.
"Most agents are not working full time, nor are they good at what they do. The barriers to entry are minimal and there is no regulation of the industry: anyone can print up a card that says "real estate agent" and demand to be treated equivalently to a real professional. Your prospect needs to know that you are NOT barely hanging on by your fingernails, but that you are prospering, even in the hard times, as all true professionals manage to do. True professionals seem to have no problem generating enough business to make a healthy income. For those who cannot, that's the nature of competition." - Brian Short, a C21 Agent from Idaho.

Letting the prospect know the damage done to them by discounters.
"Heavy discounters often cut the co-broker commission. How many agents are going to emphasize a home with a __% commission when the market is flooded with homes at a higher commission rate? When this happens, often the home - unbeknownst to the seller - is doomed to have the listing expire unsold, or take forever to sell because other agents won't emphasize that property to their clients. It's one thing to negotiate a lower fee for yourself and agree to do the full job, but to think that the other side of the transaction will accept that is unrealistic." - An Independent realtor in Jacksonville, Florida

Create value in everything you do for the consumer.
"I manage a Coldwell Banker office in Ventura, CA and it's a constant struggle to maintain our fees in the marketplace. Commissions of __%, __% and even a flat fee are always available. I constantly remind my agents that they must create value in everything you do for the consumer. The consumer doesn't understand what we do and they cannot relate to the hard work encompassed in selling property, especially in a hard market. All they see is the large commission on the listing agreement. While it is true that some agents do not deserve a full fee for what they do, my agents know that if they are going to expect to earn a full fee that they must now their market better than competition, offewr outstanding service and creative marketing techniques and be skilled and savvy about the entire process, from marketing, to negotiating to closing escrow. That's what the consumer deserves, and if they got it more often, there would be no discounters." - Jeff Haring, a Coldwell Banker Branch Manager in Ventura, California

Remind the consumer that fees have not increased in 50 years! "Real estate commissions have always been __% in my area, whether the home sold for $15,000, $150,000 or $1.5 million. Sellers have traditionally seen the value in that because they know that a Professional real estate agent is ethically and morally giving them services that they can trust. Houses were not meant to be piggy banks; rather, they are your place to call home. As home prices have increased, so has the cost of living and the amount of commission that represents. Nonetheless, it's the same percentage as back when homes cost $15,000 and a good job was one that paid $10,000 a year. Virtually every professional service has increased proportionately to the rate of inflation and the decline in purchasing power of the dollar. What sellers need to consider is that it has become more difficult and expensive to market homes properly and to call attention to them just for viewing, because inventories have doubled - or even tripled - in some areas. Buyers need to be reminded that they get what they pay for, and that a __% commission is a good value when negotiating all that comes with buying or selling a home these days. Besides, how many sales generate the full commission to one party? The buyer should know that the commission is usually split FOUR ways, and that while the commissions can appear handsome, the work necessary to earn them requires professionalism (plus a hefty financial investment, extensive training, a strong support team and very long hours)." - Chris Weingert of Hanson Realty (additional comments added by me)

Point out that you are the consumer's partner in the transaction. "Our management services include much more than shuffling paper! Try managing a divorcing couple in a transaction without being there in front of them. It's almost impossible to do on line. Who is going to answer the phone at 10 p.m. to answer questions that keep the buyers awake at night? Who will save the deal when buyer's remorse sets in?

It's true that our services come at a cost, but experience and knowledge become invaluable whenever the doo doo hits the fan, and it hits the fan a lot more often than people may think. We put out fires before they become emotional, psychological and financial conflagrations. Paper factories can't and won't do that. Just wait until the banks are wining and dining us again because their REO's are again forcing them to open a special department just to deal with them. So, today, it seems to be discount services in exchange for a fast buck and volume.

Those of us who have been through the 80's and 90's have learned some valuable lessons, and among those lessons, none stands out more than this one: It takes a lot more than a paper shuffle to hold a transaction together when interest rates climb, when the market is flooded with properties that aren't selling: it takes a real professional realtor. It is only then that consumers seem to recognize that the value of our services is true and justified." - Clay Madisen, Leadingham realty

Take advantage of this tremendous opportunity for skill to work. "I remember talking with our of our office's veteran producers when she said "I just can't justify charging my customer six percent. Prices have gone up so much it just isn't fair!" 'Fact is, she was depressed. We talked and I reviewed the marketing plan for the property. I suggested a professional photographer, a virtual tour with music. I pulled comps, found that: 1) Nothing was moving in this area; 2) Everything else was __% to the selling office; 3) Most of the listings seemed to be overpriced, perhaps to make up for the slashed commissions. We applied the marketing, we lowered the price a little bit, and we raised the commission to __%. Two weeks later, the property was in escrow.

The moral to the story is that you are not only charging __ percent because you are worth it, you are doing so in order to get the listing to stand out to the buyer's agents! CAR says that a majority of the time, an agent brings the buyer. We have over 2800 listings, yet only 400 sold last month. It stands to reason that if you do not discount, and make the listing stand out to the buyer's agent, it will be looked at more and have a better chance to sell. It's money that motivates people to work, not discounts!" - Keith Sorem, KellerWilliams in Glendale, California

Use technology to make yourself stand out from the crowd. "Despite a dramatic fall-away in the market this past year (sales in the area down 1/3, and prices down about 15%), I have gone from $10m of sales in 2005 to $12m closed and $2.6m still scheduled to close in 2006. Median sale price of homes in my area is about $275k (though I achieve above that). I work on my own, no assistant or "team". I rely heavily on technology (I am also a member of the Allen Hainge Cyberstars), but keep the personal touch, and nearly all my business comes from referrals, repeat business, and my website.

I had one of those "weak" agents ask me a few weeks ago "how have you managed to do so much business with this market" and I simply replied "service and reputation". He said "nah, it's just because of your website". Well yes, that's all part of it. My website is part of the service (great marketing, virtual tours, Client Service Center [Settlement Room] ) and helps attract the new business, but it's the personal touch, experience and expertise that they all appreciate and retains them, brings them back, or encourages them to refer others." - Chris Laurence, RE/MAX Choice, Front Royal, Va.

Remember that for all the high tech, a big part of it still is about prospects finding you on the Internet and your having a presence there. "I listed and sold 32 listings in my area's most exclusive area last year. My buyer's agent had 90% of his buyers come off the Internet last year. One client from San Francisco found me through the Internet and drove up here and bought a home on the golf course and five acres of salt waterfront.

I am convinced that being able to show prospects my Internet presence and relate to them the tie-in to how many transactions start on the Internet is a big factor in closing listing transactions at full commission. Once people see that you spend the money to succeed, they want to have you working for them and they understand that the money paid in commission is spent, in part, on finding them a buyer." - An independent realtor in Seattle, WA.

So, there you have a small portion of the ideas that were floated by readers last week. I can't tell you how many people took the time to write and say something like this:

"The bottom line is that you get what you pay for. I am proud to be a Realtor and take my job very seriously. I am a professional who expects to work hard for my client and do a good job to take care of his/her needs in real estate. I earn my commission. It's too bad the public is constantly being fed a line that we are expendable and that what we do could be done by a clerk." - Diane Gomez Re/Max Austin Associates, Austin, Texas

I think there are probably a lot more ideas out there, but they all seem to be a variation on one thing: It's up to us to let our prospects and customers know how valuable what we do is to them when buying or selling a home. It's a little like the self esteem issue that so many face in adolescence: If we don't value ourselves highly, how can we expect anyone else to do so? It's my personal opinion that if discounting were the answer, no fortunes would have been made in real estate. As we've said before, oats have two prices: one before the horse eats them, and one after the horse eats them. Commissions are a quality issue. Prove yourself worthy, and they will come.
-------------------

Now I'm going to add my comments, and I hope you will feel free to add your own feedback.

I'm in the business of creating success stories for home buyers and sellers - not churning out computer data to them so they can approach one of the most important business transactions of their lives from a position of inexperience and ignorance.

Did you ever hear the expression "You have a champagne taste on a beer budget"? It refers to people who want the best but can't or won't pay for it. Yet, even among champagnes and beers, you will find variance in quality with accompanying variances in pricing. The bottom line, of course, is that you get what you pay for!

Real estate agents who invest in advanced training, state of the art technology services, strong support teams, attractive office environments in convenient locations, helpful brochures and up-to-date real estate forms, and personal service are worth more than licensees who operate out of their garage with little more than a web presence to offer consumers. Consumers usually pay more in the long run to use a discounter because they go into negotiations without the advantage of an experienced real estate professional to advise and advocate for them.
If in doubt, just read some of the client success stories on my website.

Okay, now you're read what real estate agents say about their value; would you like to comment?

-------------------------------------------------------
Additional articles on the topic:

Last Stand of the Six-Percenters. NY Times
Seller Unhappy with Discount Broker. Realty Times
What do Agents Really Bring to the Table? Realty Times
Study: 83% of Sellers Use a Full-Service Broker. REMAX.net
Are Full-Service Real Estate Agents Worth the Extra Money? Elizabeth Weintraub

For feedback or more information:

Feedback Regarding Real Estate Fees
Source: Broker-Agent News

Maryland - more than you ever wanted to know!

2006-11-27T12:03:00.000-05:00

While collecting information for my new website (watch for my announcement around the end of December), I came across a lot of random information and links about all things Maryland to share with you.

For example, do you know how Maryland got its name? The charter that Lord Baltimore received from King Charles I of England specified a name for the new colony - It was to be called Maryland to honor King Charle's wife, Queen Henrietta Maria (Queen Mary).

I also learned that Maryland has more than one nickname:

The Old Line State
This nickname is a reference to the Maryland soldiers who fought courageously in the Revolutionary War, the Maryland Line. It is said that General George Washington referred to these soldiers as "The Old Line." Maryland was the only state that had regular troops "of the line" and these soldiers were ranked among the finest and best disciplined in the army.

This nickname is sometimes given another origin that goes back further in history. It is said that Maryland is referred to as "The Old Line State" because it was the dividing line between the land grants given to William Penn and Lord Baltimore.

The Free State
This nickname originated in an article written by Hamilton Owens, the editor or the Baltimore Sun. In 1923, a Georgia Congressman, William D. Upshaw, attacked Maryland as a traitor to the union because it never passed a State enforcement act supporting Prohibition. Hamilton Owens' article, "The Maryland Free State" was a mocking response to Mr. Upshaw, suggesting that Maryland should secede from the Union before acting to prohibit the sale of liquor. This article was never published but Mr. Owens referred to Maryland as "The Free State" in later editorials.

The Cockade State
This nickname, coined during the Revolutionary War, again refers to the Maryland soldiers. According to King's Handbook of the United States, 1891, the Maryland Old Line was made up of young men who "...wore brilliant cockades". Cockades are badge-like ornaments usually worn on hats. These decorations inspired Maryland's nickname, "The Cockade State."

The Monument State
In the early 17th century, Baltimore was given the nickname of "The Monumental City" and this nickname was transferred to the state over time.

"The Monumental City" was bestowed upon Baltimore by President John Quincy Adams, probably in reference to the monuments he saw on his visit to the city in 1827. The "Battle Monument" honoring Baltimore's defensive victory in the War of 1812 was standing on the site of the old court house. Construction was under way on the first major memorial to George Washington. President Adams was also taken to North Point to view the Aquila Randall Monument erected to honor a member of the First Mechanical Volunteers of the Fifth Regiment who was killed on September 12, 1814.

At a dinner engagement, Adams thanked the citizens of Baltimore for the kind reception he had been given during his visit and proposed a toast" "Baltimore, the Monumental City--may the days of her safety be as prosperous and happy as the days of her danger have been trying and triumphant!"

The Oyster State
This nickname refers to the large oyster fisheries in the state.

The Queen State
Probably because Maryland was named after Queen Henrietta Maria, Maryland has been referred to as "The Queen State."

Here are the Maryland State Symbols:
Bird: Baltimore Oriole (Icterus galbula), 1947
Boat: Skipjack, 1985
Cat: Calico Cat, 2001
Crustacean: Blue Crab (Callinectes sapidus Rathbun), 1989
Dinosaur: Astrodon Johnstoni Fact Sheet 12 from the Maryland Geological Survey, 1998
Dog: Chesapeake Bay Retriever, 1964
Drink: Milk, 1998
Fish: Rockfish or Striped Bass (Morone saxatilis), 1965
Flag: Find out more, 1904
Flower: Black-eyed Susan (Rudbeckia hirta), 1918
Folk Dance: Square Dancing, 1994
Fossil Shell: phora gardnerae gardnerae (Wilson) Fact Sheet 6 from the Maryland Geological Survey, 1994
Gem: Patuxent River Stone, 2004
Great Seal: Find out more, 1876
Horse: Thoroughbred Horse, 2003
Insect: Baltimore Checkerspot Butterfly (Euphydryas phaeton), 1973
Reptile: Diamondback Terapin (Malaclemys terrapin), 1994
Song: Maryland, My Maryland". 1939
Sport: Jousting (Maryland Jousting Tournament Association), 1962
Team Sport: Lacrosse, 2004
Tree: White Oak (Quercus alba), 1941

Many more links:

· Maryland – the official website
· Annapolis - the state capital (and “sailing capital of the world”)
· Maryland Area codes
· Maryland Climate
· Maryland Geography
· Maryland’s 10 Largest Cities
· Maryland Maps
· Maryland Motto
· Maryland News
· Maryland Topography Image
· Maryland Weather Conditions

Maryland Government
· Maryland Constitution.
· Maryland Counties
· Maryland General Assembly
· Maryland Judiciary
· The Maryland State House

Maryland Services
· Maryland Birth Certificates
· Maryland Board of Elections
· Maryland Death Certificates
· Maryland Driver Licensing Information
· Maryland Libraries
· Maryland State Lottery Agency
· Maryland Marriage Certificates
· Maryland Veterans Affairs
· Maryland Vital Statistics Administration

Maryland History:
· Maryland at a Glance: Historical Chronology
· America's Story: Maryland
· Maryland History
· Marylanders in History
· Maryland Government History
· Maryland Historical Society

Maryland Economy:

Agriculture: Livestock products comprise the bulk of Maryland's farm income. Broilers (5 to 12-week-old chickens) are Maryland's leading farm product, followed by milk. Other livestock products are beef cattle, eggs, hogs and turkeys. Most of the rest of Maryland's farm income is from greenhouse and nursery products (flowers, ornamental shrubs, young fruit trees). The state's leading field crops are corn, soybeans and wheat. Other field crops are barley, hay and tobacco. The most important vegetables are sweet corn and tomatoes. Apples are the biggest fruit crop. [Find out more]

Manufacturing: Computer and electronic products (communications equipment, surveillance and navigation instruments) are Maryland's most important manufactured products. Food processing (soft drinks, alcoholic beverages, poultry products, spices, bread) ranks second. Chemical production (soaps, other cleaners, pharmaceuticals, paint) ranks third.

Services: Community, business and personal services such as private health care (doctors offices, private hospitals) and support services for business/government (computer programming, consulting, data processing, janitorial, security) lead in the services sector. Finance, insurance and real estate ranks second. Baltimore is a leading financial center in the eastern United States. Government services (operation of public schools, hospitals, military activities) is Maryland's third-ranking service industry.

Mining: Crushed stone, used in the construction industry, is the most valuable mined product of Maryland. Other mined products are limestone, marble, sand and gravel, coal, natural gas, clay, peat and portland cement

Fishing: Maryland is a leading state in the production of blue crabs. Other products are Atlantic croakers, catfish, clams, crabs, menhaden, oysters, scallops, striped bass, flounder, white perch, swordfish and tuna.

· Fishing in Maryland
· Summaries of Maryland Fishing Rules
· Fishing Licenses In Maryland

Well, that’s about all the information I can handle for one day. If you’re planning a visit to Maryland, and want more travel information, I recommend http://www.mdisfun.org/ for information published by the Maryland Office of Tourism.

Sources:

Shearer, Benjamin F. and Barbara S. State Names, Seals, Flags and Symbols Greenwood Press, Westport, Connecticut - 1994
Shankle, George Earlie, Phd State Names, Flags, Seals, Songs, Birds, Flowers and Other Symbols H. H. Wilson Company, New York - 1938
George, Christopher, John Quincy Admas and "The Monumental City," (http://www.baltimoremd.com/monuments/adams.html), October 21, 2002
http://www.netstate.com/states/intro/md_intro.htm

For feedback or more information:

Maryland - more than you ever wanted to know!

Crofton Maryland Real Estate

More on the Maryland Market

2006-11-19T10:55:00.000-05:00

Third Quarter data has been released by the Metropolitan Regional Information System, Inc. (MRIS), the regional multiple listing service (MLS) for 25 local Associations of REALTORS in Washington, D.C., Maryland, Virginia, Delaware, Pennsylvania and West Virginia. Based upon this information, I’m going to provide you with a glimpse of real estate trends in Prince George’s County – a suburb of Washington, D.C. – and, more specifically Bowie, on the eastern edge of the county adjacent to Anne Arundel County.

Before we get started, though, I’d like to refer you again to articles by Ken Fears, David Lereah, and Lawrence Yun which I mentioned in my earlier blog about Second Quarter data for Anne Arundel County and Crofton. I’d also like to point out again that this information was obtained from data released by MRIS, and therefore includes only properties listed on the MLS. It does include all forms of residential property, i.e. single family homes, town homes, condos and co-ops.

In Prince George’s County, as a whole, average sold prices remained steady from the same period last year – $342,200, up from $341,500. In Bowie, the average sold prices for the 3rd quarter were $379,000 in 20715 (-1.33%), $335,500 in 20716 (-.94%), $513,900 in 20720 (+15.17%), $474,900 in 20721 (-.69%), and $320,200 in 20722 (+16.86%).

Countywide, 3,281 homes sold this quarter, down from 3,653 in the 3rd quarter of 2005. In Bowie, the drop in number of sales was more dramatic: 129 in 20715 (-24.56%), 146 in 20715 (-12.57%), 100 in 20720 (-21.88%), 90 in 20721 (-20.35%), and 26 in 20722 (+8.33%).

Days on Market have increased only slightly on a countywide basis – from 32 in the 3rd quarter of last year to 40 this year. I think this is remarkable, given the “buyer’s market” nationwide and even statewide. However, Bowie sales have taken longer: 48 days in 20715, 39 days in 20716, 60 days in 20720, 53 days in 20721, and 44 days in 20722 – a significant increase from last year throughout Bowie.

Home sellers in the Bowie have apparently faced the reality of the market, however, and priced their homes to sell because the ratio of sold price to list price is 99.4% to 100.6%. This may or may not reflect price reductions from the original listing to the time of sale, however – MRIS does not make this distinction in their statistics.

Overall, I’m not finding any surprises here from anecdotal information among my peers - local area REALTORS. It’s always reassuring to have our observations and opinions validated with actual statistics, of course For anyone thinking of selling or buying a home in Bowie, this is valuable information that will help you and your REALTOR make the “right” pricing decision. If you’re interested in similar information for another area served by the MRIS, please feel free to contact me by email.
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The Washington Area Housing Council
Housing Tracker.net
InstaCompare Report
Prince George’s County

For feedback or more information:

Should you sell your home or keep it for a rental property?

2006-11-13T09:51:00.000-05:00

In a recent comment, L. K. Hurwitz asked this question and now I'm going to answer it briefly.

The truth is that there is no one right or wrong answer to this question because it will vary from one person to another. It depends on your own personal financial situation AND the market.

For the sake of this discussion, I am going to assume that the property is in good condition and it is located in a neighborhood that is likely to continue increasing in property value.

If you do not need the equity from your current home to buy your next home, then you might want to consider keeping your current home as a rental property.

If you do, the next factor to consider is whether potential rental income will cover your monthly costs of ownership, including any vacancy factor. It's a good idea to allow for 30 days vacancy to allow for turnaround and fix-up chores. In other words, will 11 months rent cover 12 months costs of ownership?

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com

Should you sell your home or keep it for a rental property?

Crofton Maryland Real Estate

Source: Margaret Woda and MRIS

Truth about the Crofton real estate market

2006-11-04T07:45:00.000-05:00

Don’t be surprised to see a lot of “for sale” signs in Crofton, Maryland. It’s true – those signs are staying up longer because home sales are taking longer. Almost 2 months longer!

Walter Moloney reports that home sales on a national level are expected to remain steady in the coming months. He points to The Pending Homes Sales Index as his source of data, which shows home sales dipped just 1.1% from August of this year. (Yet he says they've dropped 13.6% from September of 2005, and I don't consider that exactly "steady".) David Lereah, Chief Economist for the National Association of REALTORS, says the index indicates that home sales will not be moving much in either direction during the coming months.

But I say, "WHO CARES?!? That may be great information, but I only want to know what's happening in MY neighborhood. That's all I really care about." You probably feel the same - right?

So, let’s limit today's look at the real estate market to Crofton, MD, where I live and work, using the most recent month that statistics are available: September 2006. This information was published by the Metropolitan Regional Information Systems, Inc., the multiple listing service used by member REALTORS in the area.

* The Average List Price in Crofton was $358,085 (compared to $350,524 in 2005).
* The Average Sold Price was $336,255 (compared to $345,909 in 2005).
* The Median Sale Price was $300,000 (compared to just $294,000 in 2005).

In other words, with higher listing prices and lower sold prices, homes in September 2006 are selling at just 93.9% of listing price (compared to 98.68% in 2005). It's important to pay attention to the details - this statistic may be somewhat misleading because home sellers are foolishly listing their properties at prices even higher than last year's sales instead of facing the reality of this year's market. The difference between list and sale price, therefore, is over 5% (especially if you consider that some of these list prices might have been even higher initially and reduced during the listing period); but the average sold prices are down less than 3% from last year. ...And average sold prices are the figure that is most relevant when I make pricing recommendations to clients or consider my own property value.

Differentiating these details is one of the important things that REALTORS can do for consumers to help them with pricing - something that zillow.com and other web resources often don't and can't. (But web resources is a topic for another day.) Frankly, even the "Market Snapshot" and "InstaCompare" reports that website visitors receive from me are very general in nature - computer-generated and based on public records of recent sales in proximity to the subject property - without any "hands-on" analysis of either the subject property or the other properties cited in the report.

While the average sold price may be down less than 3% from September 2005 to September 2006, the days on market are up from 21 days to 76 days. Another telling statistic is that only 52 homes sold in September of this year – 6 fewer than September of last year – and the greatest number of sold homes (22) were condos priced between $200,000 and $300,000. That might be good news for the condo and townhome sellers, but less encouraging for single family home owners. Of course, it could be pure coincidence based upon what was on the market in September. This is something that would be interesting to track over a few months, to see whether or not this is "typical" in the Crofton market.

Market conditions are one of those things that you can’t control when you’re ready to buy or sell a home – along with the economy, politics, weather, season, competition and other factors. Yet they must be considered as you deal with factors you do control: pricing, condition, your choice of agent, and terms, for example. This is more of an art than a science – and that’s where an experienced REALTOR comes into the picture. The ability to balance the factors you cannot control and the ones you do will determine how fast your home sells, and for how much. This competitive edge in buying or selling a home is priceless, so don’t make the mistake of trying it on your own. It’s likely that you’ll lose, if you do.

While you're looking at the qualifications of different real estate agents and agencies, remember that REALTORS belong to a professional organization that dedicates itself to self-policing the industry. With a proliferation of discount real estate brokers in recent years, it's no longer safe for you to assume that all real estate service providers are REALTORS. Once you make that determination, be sure to consider the REALTORS' experience (how long in the business - have they been licensed more than 5 years and therefore worked in a buyer's market before), their professional designations (CRS, GRI, e-PRO), their industry leadership (what leadership roles do they serve in their Local, State and National Association of REALTORS?), and their reputation in the community - not just their fee structure. With real estate agents, as in other things, you usually get what you pay for! (More info on choosing an agent)

‘Want to know the market statistics in another zip code? Contact me today. If I don't have access to the information, I'll refer you to someone who does.

Related links:

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com

Truth about the Crofton real estate market

Crofton Maryland Real Estate

Source: Margaret Woda and MRIS

Who needs a real estate agent?

2006-11-02T08:31:00.000-05:00

If you're thinking of buying or selling a home, you might also be thinking...

I can find a home without an agent
I can look at homes without an agent
I can use a “standard” contract to buy or sell
I can find a buyer for my current home
I can show my own home
I can save LOTS of money

Have these thoughts crossed your mind since you first decided to make a move? Most people want to save money when they buy or sell a home - that's certainly a reasonable goal. And doing it without a real estate agent is the obvious way to save money. Right?

Real estate sales are so easy these days… It’s hard to imagine why there are so many real estate laws on the books to protect consumers; why real estate professionals take licensing classes and continuing education classes throughout their careers; why they invest thousands of dollars annually for tools of the trade ranging from key lockboxes to technology; why they invest thousands of dollars annually in advertising – print, mailers, the Internet. Why, when anyone can buy or sell a home at no cost just once every 10 or 20 years and save the real estate fees? You can pull your own tooth when you have a toothache, and you don’t pay a dentist or dental surgeon for help, do you? Why pay a real estate professional?

Ask some of my former clients:

Angie found a home for $100,000 less than she expected to spend; and the sale of her previous home was “saved” when the appraisal came in low – did I mention that the buyer of her home wrote a full-price offer before even going inside?
Charlotte and Dan made an extra $35,000 by selling their side yard separate from their home. This “extra” money enabled them to buy a home in the community of their choice, and not settle for less.
Ben and Jane made almost $100,000 profit when they bought and sold a one-bedroom condo, then bought and sold a two-bedroom condo in the same community the next year – that is more than their combined annual salary!

The next time you think about buying or selling a home on your own, or you consider choosing a discount agent to save money, think about those success stories and the countless success stories of experienced real estate professionals and their clients across America. (You can read some other success stories on my website www.MargaretWoda.com.)

If you really want more money in your pocket, you might want to touch base with me or another experienced REALTOR before you get started. Maybe - just maybe - a few decades of real estate experience and training could come in handy when you buy or sell a home. If you don't know an experienced REALTOR, just contact me and I'll put you in touch with someone in your area.

Related links:

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com

Be a RENT-BUSTER!

2006-10-16T08:58:00.000-05:00

Yes, you can be a RENT-BUSTER!

Buy a home this week, and move in before New Year’s Eve. You can do it! You have a lease ‘til Spring, you say… okay, we will simply adjust our words of encouragement to accommodate that: Buy a home this week, and fire your landlord instead of renewing your lease! 'Doesn't matter if he's a villain or a nice guy - he's not your friend. He's taking your money and building his wealth, not helping you build your own wealth and security.

I found surprisingly little about the benefits of renting vs. owning a home on Google. A search for “why rent” lead me to articles about automobiles, trade show exhibits, musical instruments, furniture, computers and many other items besides houses. Another search for the “benefits of renting” lead to similar results. A “benefits of home ownership” search lead me to hundreds of marketing websites for both mortgage brokers and real estate agents, but very little genuine content. So I’m going to rely upon my own 33 years of experience in real estate to help you become a RENT-BUSTER. I want to help you FIRE YOUR LANDLORD before the month is over!

I’ve found that there are three primary reasons why people choose to rent a home rather than buy:

* Can’t afford to buy a home
* Don’t plan to stay long in the area
* Don’t want to be responsible for home maintenance

Dan Aiuto, an Alaska appraiser and real estate agent as well as author of Magic Bullets in Real Estate, says that "The large numbers attached to a real estate purchase can often overwhelm first-time home buyers, so they continue to rent as a result," Yet I’ve found that these “large numbers” are more fiction than fact. There are plenty of loan programs available that enable first-time buyers to get into a home with less cash than it takes to move into a rental property. And it’s not unusual for a mortgage payment to be equal to or less than the monthly rent for a similar property. The biggest obstacle to affordability may be the fact that many renters simply don’t investigate to find out if they can buy a home, and that’s the real reason they continue to rent. Let me ask, have you spoken to an experienced loan officer or real estate agent about buying a home? This is the first place to start.

It’s understandable that you might want to rent if your residency in an area is relatively short-term. But consider this: Military families often buy a home at each duty station, even if they expect to be there only a year or two, and then keep it as an investment property when they get transferred. By the time they retire, they have accumulated equity in real estate all over the country – a nice little nest egg. With their investments spread out geographically, they’re following the real estate version of wise advice “Don’t put all your eggs in one basket.” If BRAC closes down one military base and nearby real estate values suffer, chances are they expand another base and real estate values increase dramatically. With little or no down payment, and rental income to offset mortgage payments, home ownership is worth considering – even if you plan to be in an area for a limited time.

Convenience appears to be a “plus” for renting – if something breaks or a tree falls on your home during a storm, all you have to do is call the landlord. Is this what you’re thinking? Of course, your landlord always returns your calls. Your landlord always makes repairs promptly. Your landlord always makes quality repairs. Sure. Well, here’s a news flash: When you own a home, you call a repairman instead of your landlord. The repairman works FOR you; if he doesn’t respond promptly, you fire him. The quality of workmanship is subject to YOUR standards. Really, the convenience of having a landlord handle property maintenance is highly over rated.

Melissa M. Ezarik wrote for bankrate.com that there are six top benefits to owning a home:

1) DEDUCTIONS: Although they're the stuff that bill-paying grumbles are made of, mortgage interest and property tax obligations are a homeowner's best friend come April 15. For both federal and state income taxes, these payments are usually fully deductible. And in the first years after a home purchase, most of the money paid toward those mortgage payments represents interest. Think of it as a government subsidy on the purchase. In addition, many closing costs, such as points paid and fees for your loan application and appraisal, may be deductible, either immediately or down the line when you plant that "For Sale" sign in your lawn.

2. APPRECIATION: We're talking about the financial kind. Homes are considered a safe, steady investment, with values that rise while debt amount drops. The national median home price has risen every year --even during recessions and periods of sales declines -- since 1968, when the NAR began tracking it. Typically, the values appreciate at the rate of inflation, plus 1 or 2 percentage points. Sometimes it's a greater increase. In 2004, for instance, the median price went up by 9.4 percent. A long-term investment? Yes. Harvard University's Joint Center for Housing Studies found a dramatic increase in the rate of return on housing the longer it's held. For example, a buyer who makes a 10 percent cash down payment with an annual home appreciation rate of 5 percent could expect a 94 percent return on the cash after three years of home ownership . After five years, the return increases to 225 percent, and after 10 years, a whopping 623 percent

3. EQUITY: The portion of property that's actually owned, or equity, also rises over time. "Owning a home allows you to build the equity that accompanies appreciation," explains Timothy Spangler, CEO of a real estate investment company and author of "From the Rat Race to Real Estate." He adds, "You can't build equity if you are a renter." Moira Cotlier of New Haven, Conn., is a good example. "We paid rent to landlords for nine years before buying our house. Nine years," she says. "Do you know how many tens of thousands of dollars that was for places we had no stake in? What a waste!" Since 2001, she and her husband, Keith, have been paying themselves instead. Mary and Rich Hallahan, who own a Madison, N.J., home, think of the investment this way: "You are forcing yourself to save by investing in an asset over time," she says. Their home, purchased in 2002, has appreciated by about 10 percent since then. What's more, a first home often leads to a better second home. Equity buildup and appreciation in a first home help in the transition to a second. According to the NAR, first-time homebuyers' median down payment is 3 percent; repeat buyers, meanwhile, put down 22 percent.

4. BORROWING POWER: For owners who opt to stay put, equity still comes in handy. It can be used to secure a loan or obtain a line of credit, meaning "more buying power to fund home improvements or to assist with the purchasing of investment property," Spangler says. Cash for emergencies or big-ticket items is also an option.

5. STABILITY: Renters generally have no idea what they'll be paying a few years down the line. Home owners with fixed-rate mortgages, however, essentially have the same payment for up to 30 years. Even those with adjustable rates have a cap and can figure out their maximum potential mortgage payment. The stability also comes from the sense homeowners get of being anchored to their community. "It gives you a little more leverage when it comes to community issues and activism," Cotlier says. "When you own your home, and you're paying taxes on it, you might have your voice a little better heard when it comes time to speak up about neighborhood or community issues."

6. FREEDOM: Speaking up within your home is also much easier when you own it. No need to worry about "the downstairs neighbors complaining you're too loud, or the upstairs neighbor stomping around at 1 a.m.," says Sandy O'Keefe, who rented for about eight years before purchasing a Mansfield, Mass., home with her husband, Rob, in 2004. O'Keefe also appreciates the decision-making autonomy. "You ... pick every paint color [and] won't get fined for scratches on the wall," she says. The decision-making extends to the yard as well. Cotlier sums up the homeownership benefits in one word: roots. "You can plant perennials and enjoy them forever. You can plant a tree and watch it grow and grow. You can plant a family and watch it blossom."

Let me wrap this up for now by saying that it’s time for you to stop renting and start owning, while rates are still low and there are bargains available in the housing market. At least promise yourself that you’ll contact me this week to find out who in your area can give you the help you need to get honest answers about home ownership. If you act now, you can be in your own home to celebrate New Year’s Eve!

If you are located in the Anne Arundel, Howard, or Prince George's County areas of Maryland, you might want to attend the next RENT-BUSTERS WORKSHOP in November, featuring loansumlou of WBIS 1190 AM radio.

Related Links and Articles:

Personal Finance: Owning a Home is Good for You – and Society by Emily Brandon for USNews.com

The Benefits of Buying a Home In a Cooling Real Estate Market by Amy Hoak from Marketwatch for the Real Estate Journal of the Wall Street Journal

Rent vs. Buy Calculator

The Tax Benefits of Owning Your Own Home by Deborah Rankin for the New York Times (a 1983 article that still applies today)

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com

Be a RENT-BUSTER!

Crofton Maryland Real Estate

Who says the market is "bad" -

2006-10-08T08:49:00.000-05:00

Carl Case, in a NEWSWEEK article, talks about the "inevitable downturn" with Daniel McGinn. Alex Tarquino says "JUST when it seemed that real estate funds couldn’t keep clobbering the market, they did it again." Marilyn Lewis reports for MSN that "Home sales cool dramatically and prices begin to fall..." William C. Wheaton reports in THE WASHINGTON POST that "signs point to continued slowing" in housing, and Les Christie, a CNN staff-writer, reports on the "Sharp home price pullback".

Everywhere you turn, the media forecasts are glim for housing and home sellers, in particular. I do not see this in my own real estate circles, however.

Homes in good condition and priced right continue to sell in less than 30 days, often with multiple contracts. Just this past week, a client I referred to another agent in Northern Virginia ended up paying over full price in a feverish bidding war for a detached home in Arlington, VA. - a well-priced home in model home condition that was listed with an experienced (30 years) RE/MAX agent. A recent listing of mine in Crofton, Maryland for a well-priced townhome, again in model home condition, had competing contracts last month and settles in a few days. I have a new listing for a condo in Upper Marlboro, and about a dozen agents have contacted me to show it - I fully expect at least one contract and probably more within the week.

I'm not suggesting that all sellers have the same positive experience in today's market - facts are facts, and there are plenty to support the theory of a declining housing market. We can't control some of the factors that impact housing prices and sales - the economy, politics, and the media for example - but home owners CAN AND SHOULD take control of factors that are within their control - property condition and price and, of course, the choice of real estate agent. Each of the real estate success stories that I cited have these three things in common.

Anyone who is thinking of selling their home can take heart in this. Don't get bogged down by the doomsday forecasters. Take control!

A word to buyers: This is a GREAT time to buy if you're prepared to take on some fix-up after settlement, because a lot of homes are not in good condition, and the owners know it. If YOU are represented by an experienced buyer-broker, you will be in a good position to take advantage of those situations. Of course, if you want a home in good condition that is priced right - you'll still have to pay top dollar for one of those.

Just my opinion... based on 33 years experience.

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com

Who says the market is "bad"

Crofton Maryland Real Estate

Put more $$$ in your pocket

2006-09-05T20:32:00.000-05:00

Selling residential investment properties
with a 1031 Exchange

Not all agents have the experience and training to handle sophisticated real estate transactions, such as the sale of residential investment properties. I have handled many successful tax-deferred exchanges — both sales and purchases. Let me help you get started by answering some of your questions on this topic. Please feel free to contact me for help with buying or selling your residential investment properties.

What is a Tax-Deferred Exchange?
A 1031 exchange (also known as a Starker Exchange) is a process that allows real estate investors to defer paying capital gains tax on investment or business property at the time of sale.

What is the criteria for a tax-deferred exchange?
The properties must be “like-kind.” For example, townhouse rentals, land, farms, or vacation rentals.

Can I trade several small properties for one?
Yes, and vice-versa, provided they are “like kind” and you abide by current guidelines.

How is the capital gain calculated?
A capital gains tax is based on the profit plus all the depreciation taken on the “old” property.

What is “boot” in an exchange?
“Boot” is unlike property received in an exchange, such as cash, notes, personal property and reduction in mortgage, which is subject to taxation.

Can my Realtor® handle a tax-deferred exchange for me?
YES and NO… you can hire me to find a buyer for your “old” property or to help you find “new” property; I can help you meet the deadlines, provide required notifications, and answer your questions. However, I cannot serve as your qualified intermediary – the middle man who is required for facilitating your exchange.

How can I find a qualified intermediary?
I can refer you to a professional who specializes in this. The fee for a qualified intermediary is usually about $1000-1500, and less for additional properties in the same exchange.

Related links and articles:

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com

Put more $$$ in your pocket

Crofton Maryland Real Estate

OVER 55 - and loving it!

2006-08-30T22:19:00.000-05:00

There's no place like Leisure World - especially at the unbelievably low price of $239,900. Where else in the D.C. area can you find a home this nice AND this affordable?

Just imagine life in a gated community, where you can feel safe going for a walk. Not only that, but you can step out your back door onto the "Broadwalk" - a paved walking path that winds through the community.

The golf course, swimming pool, and one of two club houses are located just blocks away. If you want, you can eat in the club house once or twice a day and never have to cook. And you could use your own golf cart to get around the community (you have your own private golf cart parking pad next to the screened porch). Places of worship are located in and adjacent to the community, there's a community medical center, and Leisure World Shopping Plaza is just outside the front gates.

Home maintenance is easy - everything is included in your monthly co-0p fee, even repairs and replacements of appliances and mechanicals. You won't have any separate utility bills, property tax bill, or first mortgage payment. This is a dream come true for people who hate to sit down and pay bills!

This home is ready for you to move in - fresh paint throughout, new carpet throughout, new flooring, several new appliances, updated lighting... even new doorknobs. What more could you want?

If you like to travel, or if your permanent home is in another State and you live here when you work in the D.C. area, this community makes it possible for you to be gone for long periods of time without worrying about your home.

Take a look today. Contact me at mwoda@remax.net.

January update: Property sold for $210,000. All cash. Settlement in 3 weeks.

More information about this home, Leisure World of Maryland, Leisure World News, AARP, Olney, MD, Senior Housing - What You Should Know, Our Lady of Grace Church

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com

Over 55 - and loving it!

Crofton Maryland Real Estate

Real Estate Market Trends

2006-08-30T06:13:00.000-05:00

August 2006

Look to the experts...

What is the saying... something to the effect of "Opinions are like belly buttons - everybody has one". While that may be true, some opinions are based on greater expertise, and these are the ones that matter to me when I advise my real estate clients:

NAR Economist Predicted Higher Interest Rates Would Slow Market - by Blanche Evans, Realty Times Correspondent

Housing Market Returning to Normal - Margaret Kelly, RE/MAX CEO

Two sides of the Coin - David Lereah, Chief Economist

Real Estate's Battle of the Bulge - Ken Fears, Economist

The Forecast - Lawrence Yun, Senior Research Forecaster

Existing Homes Sales Down with Softening Prices - Walter Moloney, National Association of REALTORS.

Market Conditions - Carla L. Davis, Realty Times Columnist

Far better for you to look to experts like these, than to rely on media reports that interpret the experts with their own "spin" - seldom are such articles accurate! Remember, the media needs to sensationalize every story with the goal of catching the attention of consumers and selling newspapers, NOT accurately informing the public.

While I don't pretend to be an economist or an expert, I do know where to find their reports. I try to keep my website up-to-date with Market Trends, so you can always look there for links to reports like you see here - www.MargaretWoda.com.

Look to the experts for real estate market trends!

Sources for the above reports:
RE/MAX, National Association of REALTORS, Maryland Association of REALTORS, Realty Times, Metropolitan Regional Information Systems, Inc. (MRIS)

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com
Crofton Maryland Real Estate

Real Estate Market Trends

HOMES FOR SALE - Crofton, MD

2006-08-29T08:24:00.000-05:00

LAKE LOUISE
In the Baltimore/Annapolis/D.C. triangle

$344,999

You can just move in and start enjoying this charming home, conveniently located within walking distance of the Village Green and Crofton Country Club.

As you step into the foyer, you’ll notice beautiful wood floors that continue through French doors into the living room and dining room. The view from the living room is so lovely that the current owners couldn’t resist placing their desk in front of the window. The kitchen was recently re-done with an old-time diner motif, including new cabinets, countertops, and flooring. But that’s not all - the 3 full bathrooms and half bath have been updated, as well!

New carpet will tickle your toes upstairs in all three bedrooms, each tastefully decorated with a unique look that might easily be found in a magazine or on HGTV. Lighting, ceiling fans, interior doors, and even door hardware have been updated recently. The spacious lower level opens to a fenced brick patio that is nicely shaded in the summer by nearby trees. There’s even a wet-bar off the family room and plenty of storage in a separate area.

This home is very low-maintenance with brick front and back, and new windows on the back of the home. So start packing, and move your family to this lovely Crofton home in time to enjoy the beautiful fall leaves from your windows and patio.

Related links:

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com
Crofton Maryland Real Estate

7 Home Seller Mistakes to Avoid

2006-08-16T09:43:00.000-05:00

You're getting ready to sell your home. You want top dollar, perfect timing, and minimum hassle. That's not too much to ask, is it? Yet your success in achieving these goals is easily derailed by making a single mistake. Here are seven big ones to avoid:

1. Overlooking a critical detail

Good preparation is essential for a successful home sale. That includes gathering all the facts about your home and the marketplace BEFORE putting it on the market for sale. Be prepared to answer buyers' questions about the square footage, the property taxes, the average utility bills, the type and age of roofing, the local schools, community covenants, and more. Make sure your home is clean, uncluttered, in good repair, neutral, and "staged" for showing at its best. The more time you spend preparing to sell, the less time it will be on the market.

2. Relying upon open houses and print

A buyer must know your home is available for sale before he will purchase it. A good real estate agent will create an accurate and effective buyer-profile for your home, and will target marketing efforts to those buyers. Face it, if a qualified and motivated buyer spots the sign in front of your house or calls on your ad, it will be pure luck!

3. Being unavailable to show your home

No one is going to buy your home without first seeing it. Buyers must be able to inspect your home at THEIR convenience, so you should make arrangements with your employer for a more flexible schedule until your home is sold. If you list your home with a licensed real estate agent, he or she will handle all inquiries and appointments while you maintain your normal routine.

4. Allowing "anyone" into your home

How will you minimize the possibility of unqualified or unscrupulous strangers coming into your home? I address this concern by requiring my buyer-clients to be pre-approved by a lender-member of my professional team who verifies the prospective buyer's identity, home address, employer, and financial qualifications. I'm optimistic that most axe-murderers, rapists and robbers are not going to allow this vigorous personal scrutiny.

5. Overpricing or underpricing your home

Pricing your home is both an art and a science. The science of home pricing begins with gathering data about recent sales in your area. (For a snapshot view of recent sales near your home, visit http://www.margaretwoda.com/hvalue.shtml.) The art of home pricing involves the many other factors in today's marketplace: politics, economy, weather, season, and competition, for example. You need to balance the home sale data with these other factors to determine the likely selling price for your home.

6. Appearing too anxious when you follow-up

I could share countless stories with you of sales that resulted directly from my follow-up calls after a buyer inspected my listing and initially ruled out the property. You MUST obtain feedback from any prospective buyers and agents who inspect your home. Yet you must be careful not to sound too highly-motivated, because that could compromise your position in any negotiations. For this reason, it is helpful for a third party handle the follow-up.

7. Making unnecessary selling concessions (or failing to make necessary ones)

You must determine in advance what your bottom line is on price, timing, inclusions and exclusions. Then you must decide how flexible you can be on any of these considerations. You must know the line you cannot cross without seriously compromising your home-selling goals. You must not be afraid to counter-offer. At the same time, you must strongly advocate for your own best interests and know when it's "best" to let a buyer walk away.

Remember, you will be competing with thousands of professional real estate agents as well as other home owners. You can't afford to make mistakes in your home sale. If you have any questions about selling your home, you may find answers on my website. Or feel free to contact me - whether you live in Maryland or Anywhere, USA.

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com
Crofton Maryland Real Estate

Where have all the buyers gone?

2006-08-11T07:06:00.000-05:00

There weren't enough homes to go around this time last year. Sellers expected multiple offers within days, even hours, of going on the market. Many of these offers were above full price and without any contingencies, even so-called standard ones like appraisals and home financing. That was then.

This is now: Homes setting on the market for weeks and months without any prospective buyers even walking through. Low-ball offers that sellers are glad to see. Real estate agents dropping out of the business.

Yet there have been no huge interest rate increases. Traditional motivations for housing changes are still there - growing families, shrinking families, new families, relocation, different needs. This is a puzzle for all of us, consumers and professionals alike. I have a theory, based on my 33 years experience and my observations.

It's the media's fault! Seriously!

The ol' story of record-breaking housing sales had lost its sizzle. The housing boom that was fueled by fear of price increases became "ho-hum". So it was time for a change to keep the real estate story alive. Media reports chose to quote the negative-thinking experts instead of the postive-thinking ones. (Both are ALWAYS out there.) They predicted a housing bubble and pending crash. And a lot of people DO believe what they read. After months of pushing the "housing bubble" theory, the story became self-fulfilling. 'Truth is, the factors which typically impact housing sales didn't change significantly from last year to this.

It doesn't really matter who's fault this is, however. Home buyers have retreated to wait for ..., well - I don't know exactly - but I'm going to venture a guess: an experienced real estate professional to lure them back into the market place.

It's true. Home sellers need an experienced real estate professional more than any time in the four decades I've been selling homes. Notice the emphasis on the word "experienced". Real estate agents who have been in the business for five years or less have never sold homes in a buyer's market. Buyers have come to them. Agents haven't had to prospect for buyers. Agents haven't had to SELL buyers. Agents haven't had to MARKET homes for sellers. This is no time for any home seller to base their agent selection on whom they like, regardless of qualifications. Home sellers need to focus on choosing an agent with home-selling experience in a buyer's market. It will make the difference between success and failure in their home sale.

Experience is defined as "the act of living through something" and/or "knowledge and skill developed through repeatedly doing the same thing". Fewer than 50% of licensed real estate agents in most market areas have been in the business more than 5 years, so home owners can't risk their home sale to just any agent. When you interview agents, don't just ask about their recent business accomplishments; ask about the sales strategies and tactics they used in the last buyer's market. Find out how many homes they sold in previous buyers' markets.

A real estate agent must be pro-active with an accurate buyer-profile, creative and consistent marketing, exceptional service, and patience to literally coddle them long-term until they make a buying decision. Home buyers are out there to be found, they're even willing to come out of their hiding places with a little courting, and they do still appreciate a home that is priced "right" and in good condition. But those are topics for another day.

Today's lesson is this: If you want buyers to find your home, choose an experienced real estate professional to represent you in your home sale.

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com
Crofton Maryland Real Estate

Where have all the buyers gone?

Why Margaret Woda?

2006-08-10T22:20:00.000-05:00

EXPERIENCE (ek-spir~-e-ens) 1. The act of living through an event 2. Knowledge and skill gained from doing the same thing repeatedly.

You'll benefit from my 30+ years of real estate experience and training when you choose me as your real estate agent. Here's my promise to you:

An efficient and pleasant experience for you - Proven real estate systems and partners who are dedicated to a standard of excellence that you and your family deserve.
Negotiating advantage - Unwavering advocacy and professional representation of YOUR best interests.
Expert advice - In-depth knowledge of local real estate customs, practices and laws, based on thousands of hours of advanced training.
More choices and options - A wide range of services to meet and exceed YOUR wants and needs. Be sure to ask for more information.

Feedback or more information:

Email: mwoda@remax.net
Website: www.MargaretWoda.com
Crofton Maryland Real Estate

Why Margaret Woda?