Annapolis sales statistics - April 2007 vs. 2006

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

Are these homebuyers for real?

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?

Copyright 2007. Al rights reserved. Margaret Woda

Real estate is NOT like it used to be -

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 -

Copyright 2007. All rights reserved. Margaret Woda

What I Won't Tell You

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:

• National Center for Education Statistics
• GreatSchools
• Family Watchdog
• EPA Community Search
• Pollution Scorecard
• Census Quick Facts

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 REALTORS Won't Tell You
• Fair Housing and Equal Opportunity

What I Won't Tell You

Copyright 2007. All rights reserved. Margaret Woda

Annapolis Sales Statistics - January

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:

• www.MargaretWoda.com
• mwoda@remax.net

Annapolis Sales Statistics - January

Source of Data: MRIS

Copyright 2007. All rights reserved. Margaret Woda

Top 7 Habits of People With Great Credit Scores

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!

• www.EricBramlett.com
• www.FreddieMac.com
• http://www.fha-home-loans.com/fha_loan_credit_qualifications.htm

Feedback and Questions:

• www.MargaretWoda.com
• mwoda@remax.net

Top 7 Habits of People With Great Credit Scores

Choosing your real estate agent – online

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

Copyright 2007. All rights reserved. Margaret Woda

New Home Fever

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.

Related links:

• Willow Woods - Severn, MD
• The Estates at Aisquith Farm - Davidsonville, MD
• The Oaks at Waters Edge - Elkridge, MD
• The Groves at Piney Orchard - Odenton, MD
• Kinsport of Annapolis - Annapolis, MD
• Gatherings at Cedar Ridge - Odenton, MD

Feedback or more information:

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

Crofton Real Estate

New Home Fever

Copyright 2007. All Rights Reserved. Margaret Woda

Military Transfer to Maryland?

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:

• Military Assistance Program
• GSA Lodging
• 10 Core Relocation Programs
• Housing at Ft. Meade
• BRAC
• Mortgage Lender
• Military Avenue

Feedback or questions:

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

Military Transfer to Maryland?

Copyright 2007. All rights reserved. Margaret Woda

December Update - New real estate newsletter

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

How much house can you afford?

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:

• mwoda@remax.net
• www.MargaretWoda.com

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

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Maryland - more than you ever wanted to know!

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:

• mwoda@remax.net
• www.MargaretWoda.com

Maryland - more than you ever wanted to know!

Crofton Maryland Real Estate

Copyright 2006. All rights reserved. Margaret Woda

Who needs a real estate agent?

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:

• How to choose an agent
• How to choose a REALTOR
• Why choose an agent with a GRI designation?
• What is an e-Pro certified Realtor?

Feedback or more information:

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

Who needs a real estate agent?
Copyright 2006. All rights reserved. Margaret Woda