MRIS Releases September Housing Statistics

MRIS, Oct. 15, 2007-Selling prices are flat throughout the Greater Washington DC Metro and the Greater Baltimore Metro regions, but Northern Virginia bucked the trend with positive numbers, according to September housing statistics released by MRIS. Click here for statistics.

Loudoun County saw its first increase in selling prices since May of 2006, with a rise of 4.44% in September. Selling prices in Fairfax County rose 2.45% for the same period, but the hugest gains were in Fauquier County, where the average selling price was up a whopping 23.59%.

It was a different story in the Maryland suburbs. Montgomery County showed its first negative numbers since the market began softening in 2006. Prices were also down in Howard, Harford, Anne Arundel, Prince Georges and Frederick Counties.

“Inventory is extremely high metro wide,” said John McClain, Senior Fellow at George Mason University’s School of Public Policy. “As long as inventory is so great, we’ll continue to see downward pressure on prices.”

McClain suspects the flattening is psychologically motivated, since sub prime mortgage woes are having minimal impact in this region. He says building permits are down region wide, which should help shrink the housing supply in the coming months.

For more information about this topic, see the “Tools for Success” article below.

Article was taken from RISMedia.

Survey: Modest Gains in Buyer/Seller Activity and Appreciation Trends

Modest improvement is reported in buyer/seller ratios and in home price appreciation across the country in the third quarter, compared to the second quarter of 2007, but other key housing sales activity indicators remain largely unchanged, according to HouseHunt’s Current Market Conditions random survey of member agents.

Thirty-two percent of respondents reported more buyers than sellers; 54% reported more sellers than buyers, and the remaining 14% said the ratio is about 50-50. This is an increase of three percentage points for buyers since the last quarter and the highest total since the third quarter of 2006.

When asked about annual home price appreciation in the past 12 months, 53% of respondents reported flat to small positive gains. The biggest jump was in the 0-5% range, where 34% said prices were up. Another 19% said home prices were up more than five percent. Forty-seven percent of respondents said prices declined in their communities in the past year. This compares to 61% reported in the second quarter.

“Our latest survey shows that the demand for housing is still there,” observed Michael Bearden, president and CEO of HouseHunt, Inc., a consumer-oriented Internet firm that supplies free information and services to homeowners, home buyers and home sellers in 47 states through nearly 2,000 member agents and its primary Web sites, HouseHunt.com and moveUp.com. “Even though many buyers are on the sidelines waiting for conditions to improve, the message for Realtors is to stay in front of the customer and be ready to provide the service, the expertise and the professionalism needed as the market becomes more balanced between buyers and sellers.” Other highlights of HouseHunt’s most recent national and regional survey are:

Time on the market lengthened somewhat in many parts of the country. Eighty-six percent of member agents now report that it takes more than 60 days, on average, from listing to contract to sell a house. Of that figure, 62% estimated that it takes more than 90 days. Three years ago, 75% of respondents said it took 60 days or less, on average, to sell a house.

Asking price vs. sales price. On average, 51% of home sellers are getting 95% of their asking prices, respondents said. Six months ago the figure was 65%.

Buyer activity

Repeat buyers continue to outnumber first-time buyers by a two-to-one margin. With few exceptions, this ratio remains consistent in most markets across the country.

Multiple offers

Only 31% of respondents reported that their home sellers are still getting multiple offers. This figure is unchanged for the past three quarters.

Inventory of unsold homes

The total continues to grow toward record levels, thanks to a sluggish housing market and problems of liquidity, problem loans and bank repossessions. Nationally, 95% of respondents report a good supply in all price ranges.

“Third quarter regional results reported in the survey show just how uneven the national housing market is, especially in the Northeast where 51% of HouseHunt member agents reported more buyer activity even though homes are on the market longer and prices are declining,” Bearden noted. “Eighty-two percent of respondents reported some negative appreciation over the past 12 months.”

He also pointed to a percentage-wise decrease of first-time buyers in the West region. Only 17% were identified as first-time buyers vs. the national average of 34%.
Better results are reported in Texas, where 60% of respondents said that homes are selling in 60 days or less. Also, sellers are getting 95% of asking prices, on average.

Here are samples of individual housing market reports:

- Dianna Cannan of Keller Williams, exclusive HouseHunt member agent for Huntsville, Texas, reported that average home prices are up five to 10% and that most sellers are getting 95-100% of asking prices.

“Our job and population growth, along with our proximity to a booming Houston job market, are good reasons to buy a home here,” she said. The average home price is $125,000.

- Emmaniece Gordon of Keller Williams in Millersville, Maryland, exclusive HouseHunt member agent for Woodmore, Maryland, said average home prices are up five to 10% in the past 12 months. Average time on the market is 90-120 days. Average home price is $250,000.

- Stephanie Gilkison of The Gilkison Group, exclusive HouseHunt member agent for Shawnee, Kansas, said most of her sellers are getting 95-100% of their asking prices even though average time on the market is 120-days plus.

“Shawnee has a lot of great new homes communities that are priced exceptionally well for the current market. This is one of the most affordable cities in Johnson County in relation to the size home you can buy with your dollar,” she said. Average price home is $300,000.

- Larry Shakman of InterMLS in Naperville, IL, exclusive HouseHunt member agent for Aurora, IL, reported more sellers than buyers and an average home price of $325,000. He said most of his sellers are getting 94% or more of their asking prices. Average time on the market is 60-120 days in this Chicago metro area territory.

- Jesse Mag of Coldwell Banker, exclusive HouseHunt member agent for Brightwood, Colonial Village and Shepherd Park in the District of Columbia, said most sellers are getting 90-95% of asking prices when priced correctly. Average price is $550,000 and average time on the market is 60-90 days.
“We have lots of potential buyers, who are uncommitted, and lots of sellers who are c committed to sell,” Mag said.

- Finally, Deirdre Salomone of Prudential California Realty, exclusive HouseHunt member agent for the Silver Lake territory near downtown Los Angeles, CA, reported an equal number of buyers and sellers. Average home price is $725,000 and the inventory of unsold homes is
limited, she said. Average time on the market is 60-90 days.

*This Article was taken from RISMedia

8 questions to ask real-estate agents

Interviewing candidates serves two purposes: You get an education about your local market while learning how the agent proposes to represent you. Ask detailed questions, urges Williams.

Here are the most-important areas to investigate:

May I see your resume?

Since you're searching for an above-average agent, look for evidence of advanced training and designations, professional recognition and membership in professional organizations, all signals of commitment to the profession.

There are about 2.6 million real-estate agents in the country. They're licensed by their states, and each state's licensing and education requirements are different. (Use the Association of Real Estate License Law Officials' site to check an agent's license. Click "consumer" to get started.) About half of the agents belong to the National Association of Realtors. Those members call themselves Realtors. NAR membership doesn't have to be a deal breaker, but it provides some assurance, since the industry group requires ethics training periodically and members must subscribe to its code of ethics.

Many agents take their education further, earning designations in specialties in such areas as neighborhood zoning, staging properties, use of the Internet, property management, the 55-plus market, diversity, working with buyers or sellers or transactions involving land, farms, commercial investments, resorts , second homes, high-end properties or international properties.

What's your commission?

Traditionally, a seller pays around 6% in commissions when using a real-estate agent -- 3% goes to the seller's agent and 3% to the buyer's agent. But commission amounts aren't cast in stone anywhere. They can be negotiated -- and often are.

Negotiating works best when homes are selling quickly and easily. Today, with the real-estate market in a slump in most areas, listing (selling) agents have to work harder to sell properties in hard-hit areas, and the best agents may be unwilling to dicker. If you do find an agent willing to negotiate, consider it just one of the many factors to weigh before choosing a professional to sell your home.

What makes you special?

Don't settle for someone who just promises to show you homes or list, advertise and sell your place; every agent has to do those things, says Swanepoel, of RealtyU. What you want to know is, "What sets you apart? What will you do to go the extra mile for me?"

How often will I hear from you?

Your agent's communication style and availability should mesh well with yours. Prepare for your agent interviews by asking yourself whether, for example, you'd need a twice-weekly check-in, even if there are no homes to visit. Do you expect a report after someone tours your house for sale? Do you prefer to keep in touch through phone calls or e-mail? How promptly do you want a response? While you're inquiring about the agent's availability, remember to ask who will return your calls and show houses if your agent is out of town.

What's your plan for marketing my home?

No agent can guarantee she'll sell your home. But she can tell you what steps she'll take to bring it to the attention of buyers. Press for details like, "Are you going to post this on a Web site? Put an ad in free magazines in a shopping center? Will you have someone stage my home?"

Once you've selected an agent, Swanepoel advises requesting a one-page list of actions, each with a target date. Incorporate the plan in your sales contract so you can track your agent's progress and have documentation if she fails to live up to the agreement.

How many transactions did you complete last year?

Some agents keep score in dollars, saying, "I sold $50 million in real estate last year." But property values vary from market to market and house to house, so what you really want to ask is, "How many deals did you complete?"

Super salespeople are a mixed blessing. The bonus is, they're knowledgeable experts. "The more listings he has, the more he dominates that market, the more probability he is a good guy in that area," says Williams.

But a superseller might be too busy for hand-holding. "If a solo agent is selling more than 70 homes a year, they're not going to have time for you," says Nellis.

What do you know about the neighborhoods where I want to live?

A super salesperson is no good to you if she isn't doing an active business in your target neighborhoods, so ask how many of the homes she sold last year were located where you want to buy and how many listings she has there now.

Really great professionals specialize in one -- or maybe two -- communities. Nellis says he declined a friend's request to help her find a home in a nearby city because he didn't know the place and could not help her unearth the particulars she needed -- everything from planned airport flight paths to zoning-regulation changes to freeway expansions -- that determine a property's true value.

Agents have a wealth of data at their disposal from local multiple listing services. Good ones will share it, educating you about the median income and educational level of a neighborhood's residents, for example, or telling you what proportion of residents work close to home or suffer long commutes. They can't discuss school performance or crime -- that would violate fair-housing laws. But they should point you to Web sites where statistics on crime and school performance are listed, one of which is Sperling's Best Places. (Read more about what they can't tell you here.)

Are you a solo agent or part of a team?

There's no right answer to this question. Teams are growing in popularity. They're good for engaging several individuals' expertise at once and for allowing high-powered salespeople to concentrate on what they do best, offloading to associates tasks like filing and tracking documents, dogging details and showing houses. Being part of a team lets a salesperson handle more listings, says Nellis, who adds that he manages 60 sales a year by handing off detail work to teammates.

But a team is only as good as its players. "You can have a team with a crummy Web site and no designations, but you have a solo agent who just sparkles, and then that's your answer for you -- go with the solo agent," says Nellis.

When you get right down to it, it's that sparkle that distinguishes the superstar agents, and there's no way to find it without sitting down with a few of them and asking questions.

Why use a Realtor?

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.

But if you're still not convinced of the value of a REALTOR®, here are seven more reasons to use one:

1. Your REALTOR ® can help you determine your buying power - that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders - banks and mortgage companies offer limited choices.

2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.

3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning, schools, etc. There are two things you'll want to know First, will the property provide the environment I want for a home or investment? Second, will the property ha~e resale value when I am ready to sell?

4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase.Your agent can advise you as to which investigations and inspections are recommended or required.

5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports.

You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date

6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.

7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.

thanks to www.realtor.com

Top 7 Habits of People With Great Credit Scores

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!

Written by Eric Bramlett

Getting Prequalified

This is a great time to be in your new home for spring & summer season ahead. When you are prequalified, you are already ahead of most of other buyers. Here are some reasons to get prequalified:

• With prequalification, you have plenty of time to determine which loan program best fits your needs and which programs you quality for.
• You will know exactly how much you are qualified for. It's no fun to find the ideal home and then find out you can't afford it
• Your monthly payment will be set. This will allow you to budget your money before making this large investment.
• You will learn what the down payment and closing cost will be.
• If you are a first-time buyer, you may be able to qualify for a special program which may expand your buying power by giving you a lower rate or supplementing your down payment.
• If you feel that you can afford a higher mortgage payment but are no able to meet qualifications, co-mortgagor financing may be available to you.

Most Real Estate Agents & Lender recommend that home buyers get prequalified with a lender before selecting home to purchase. This way you will have the best information about your price range.

For any questions feel free to contact us, we have been in business for long time and work with some of the best people out in Mortgage industry. Thanks!