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

Curb Appeal: Creating a Lasting First Impression

Staging a home for sale also includes creating curb appeal, which is the way the outside of the home is presented. In her book Home Staging: The Winning Way to Sell Your House for More Money, Barb Schwarz, President and CEO of StagedHomes.com, said you can't sell it if you can't see it, so clients should keep their homes the center of focus. To do that, make sure clients' landscaping doesn't impede a view of their homes or is an eyesore to approaching home seekers. Great advice for sellers seeking curb appeal: Cut back all shrubs and bushes to window height, move children's toys to the backyard, and regularly clean and sweep paved driveways. Frequently rake, weed and remove fallen leaves and dead plants from your yard.

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.

Short Sale - How is it Accomplished?

The real estate market transitions from "overheated" to normal, some people are in a position of no equity or negative equity regarding their home's value. In this situation, a seller who wants to sell his or her home will have to come to closing with a significant amount of cash to make the deal work.

What happens to a seller who is in a negative equity position and either does not have the liquid assets to sell or is facing foreclosure but wants to avoid foreclosure or bankruptcy? This is when a "short sale" must be contemplated. In a short sale, the seller's lender is contacted and the financial situation is outlined, along with proof of the home's value and the seller's financial condition.

SHORT PAYOFF

Under these circumstances, lenders often will cooperate with the seller and allow the property to be sold under normal market conditions to maximize the gross sales price and subsequent net to the lender. Upon sale and settlement, the lender will receive all net proceeds, following the payment of customary closing costs including the normal real estate commission, which will generate the lender less money than they are owed, also called a "short payoff." The lender has agreed to take this short payoff and release the lien against the property, thereby allowing the new purchaser to receive clear title to the property.

AVOIDING FORECLOSURE

The short sale also benefits the lender because the alternative - which could be foreclosure - would cost the lender more money by selling the house below market, carrying a vacant house for months and paying to maintain that property. Also, FHA, VA and conventional loan holders, Fannie Mae and Freddie Mac, require lenders to work with borrowers in a reasonable manner in such circumstances.

The short sale is not a miracle cure for all sellers because some lenders will not cooperate in the program. Also, where lenders do cooperate, there is no guarantee that the lender will forgive the remaining indebtedness; each case will be determined on many factors, including a borrower's future ability to pay. Additionally, a short sale could have adverse credit complications for future loan originations plus debt forgiveness may be subject to income tax.

EQUITY STATUS

Therefore, it is suggested that when a seller is about to list a property the seller and real estate agent should discuss the equity situations. If negative equity appears and the seller does not have financial ability to pay the money due at closing, a short sale should be explored immediately. The determination by a cooperating lender will take several weeks, so if the property is listed and a contract is accepted, it would be advisable to make the contract contingent on lender approval of a short sale.

3 secrets for selling in buyer's market

Homes aren't selling like hotcakes any longer. Buyers are choosy.

Prices are soft. What can you do to speed the day when that sign on your lawn will say "Sold"?

1: Set a realistic asking price.

In a seller's market, brokers say it's often possible to ask for more than you expect to get. In a buyer's market, you can save valuable negotiating time and attract more buyers by making your "asking premium" closer to what you're willing to accept.

Before setting the price, learn all you can about your micromarket. Your agent can research recent selling prices for similar local properties. But thanks to a new wave of real estate websites, buyers too may be familiar with prices in your neighborhood. To become as sawy as they are, check out sites that cover your area (try Zillow.com, Domania.com or PropertyShark.com). Hit the road and spend a weekend looking at houses for sale within a 10-minute drive of yours.

You can order an appraisal for a specific idea of what your home is worth. But it may be more useful to pay $150 to $500 for a professional home inspection, which will look for defects that reduce your home's value. If nothing needs fixing, you can promote the inspector's clean bill of health to prospective buyers.

2: Use creative salesmanship.

Offer an incentive so buyers feel they're getting a better deal. For example, you might consider paying points or closing costs, including the appliances, giving a carpet allowance or accepting an offer contingent on the buyer's own house selling first. A competitive edge like this can help you sell your home faster without having to lower the price.

3: Help buyers to like your house.

Start by eliminating reasons for a buyer to say "no." Real estate pros say that most buyers decide in a few seconds whether a house appeals to them. Make the first impression more attractive by mulching flowerbeds, pruning shrubs, and cleaning up clutter. (See "10 ways to help your yard spring into beauty.") The entryway in particular needs to be inviting, with fresh paint or upgraded lighting if needed.

Inside, focus on sprucing up your home so it's in move-in condition. That means washing walls and windows, polishing scuffed wood floors, fixing dripping sinks and deodorizing pet smells. If you're on a tight budget, get the most impact for your investment by replacing things that could immediately turn off a critical buyer, such as stained carpet or battered countertops.

Also, think about what could make your house memorable. That comfy window seat? The built-in bookcases? The entry with the river stone floor? Discuss these elements with your agent, so she or he can be sure to point them out in a showing. If a buyer forms an emotional attachment to an unusual feature of your home, you have it made.

The most important advice for a seller these days is to be patient. Ask your agent how long your home is likely to be on the market. With luck and the help of these three guidelines, you'll see that "Sold" sign long before then.

7 Tips to Radically Update Your Home (And Not Lose Money!!!)

by Eric Bramlett

Everyone loves to update their homes, and if you live in an older home in an appreciating neighborhood, it can be a fantastic investment. There are some pitfalls to avoid, which can cost a homeowner quite a bit of money because of no return on investment. However, it's better to focus on what TO do and stay the course.

1. Raise the Roof!!!

Not literally, but gut the attic, and raise the ceiling in, at least, the living room. Older homes typically have 8 foot ceilings, and it's one of the first characteristics that buyers notice. It's relatively inexpensive, when you compare your return on investment, to demolish the ceilings of your older home and sheetrock over your new, vaulted ceiling. It's amazing how much larger and lighter your home will feel.

2. Knock Down Walls

Literally, knock down as many walls as you can and still retain the integrity of the home, and the NECESSARY separation of rooms. If you compare older homes to newer homes, you'll notice that older homes are typically "choppy" while newer homes feel "open and flow well." This is due to "line of sight." Newer homes opt for less separation in rooms. You can create this same feeling by demolishing a half-wall that separates your kitchen from the living room or knocking down the wall between the living room and dining room to create one grand room. You'll be AMAZED at the difference it makes.

3. Overhaul Your Kitchen and/or Master Bathroom

These are the two rooms in the house that you can ALMOST go overboard and still get your money back when you sell the home. Refinish or replace the cabinetry, put in new tile and sinks - even install a new, stand-up shower!
When (or if) you put your home on the market, you should see a GREAT return on investment.

4. Add a Master Bathroom

The 1-Bathroom houses from the 1970's and earlier are now obsolete.
Americans have decided that we like a private bathroom for ourselves and another bathroom for our guests and children. While 90% of the house additions are bad ideas because they don't flow well or create poorly usable space, a master bathroom addition is a fantastic way to add more square footage, and more value to your home. Make SURE that your builder ties in the new slab to the old, and make sure that the addition is done properly. A poorly designed or executed addition never adds value - most buyers immediately imagine demolishing the work.

5. Xeriscape Your Lawn

It's trendy, it's cheap - it should be a go! Your homes curb appeal is the first thing that buyers notice, and it's how buyers decide whether or not they'll "click on your house" online to further investigate the interior.
You can xeriscape a ¼ acre lot for around $3000, and you'll more than make up for that when your home goes on the market. Furthermore, it's environmentally & fiscally responsible. Stop wasting water!

6. Paint!!!

It's fairly obvious, but painting your home modern, neutral colors makes a HUGE difference in the appearance of the home. And when you factor in the cost - roughly $0.75/s.f. - it would be a HUGE mistake to forego painting your home when you decide it's time to modernize it. If you're planning on staying in the home for some time, paint it whatever colors you wish, but plan on repainting right before it's time to put it up for sale. If you plan on updating your home in order to sell it, go with neutral colors so that it will appeal to the widest audience.

7. Put in Wood Floors

You won't ALWAYS get your money out of installing wood floors. If you're in a great area, and it's time to replace the floors, look at the cost difference between tile, pergo, and wood. If your home will sell for $250k+ then forget about pergo and, if you choose tile, make sure it's not cheap tile. If the cost difference between wood and your other options is negligible, then go with wood - it appeals to the most buyers.

Updating your older home can be very fun, very rewarding, and potentially very lucrative. Older homes in established neighborhoods are ripe for updating and can draw a premium on the marketplace. Make sure and follow these guidelines, and you should see a great return on your investment.

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Sellers, the best bang for your buck!

Don't assume that because home prices are out of free-fall that you can stab a For Sale sign in your lawn and be flooded with offers. This isn't 2003. If you want maximum buck for your property, you need to make sure it makes a bang when buyers see it.
Focus on high-impact improvements that can be done in less than 30 days and enhance the two most important aspects of the buyer experience:

The first impression.
The "feel" that buyers get when they walk through your home.

The Big Five

The following five improvements give homeowners the best return on investment when they sell:

Upgrade the kitchen. The kitchen is the heart of the home and the room where luxury becomes practicality. Most buyers spend a great deal of time in the kitchen, and it sets the tone for their walk-through. If your kitchen is outdated, hire a professional kitchen remodeling company to give you a quote for new countertops and cabinets. Pick out a new sink and sleek clean cabinet hardware. When you rip out your old cabinets and counters, hire a flooring person to lay down new flooring, whether it's laminate or tile. Paint using a color that complements your tile or countertop colors. Don't install new appliances unless yours are very old and worn.
Likely cost: $20,000-$25,000.
Likely payoff: Up to $40,000 in increased sale price.

Redo the bathroom. If you don't have the budget for a kitchen upgrade, the next best place to spend your cash is in the primary or master bathroom. Here, cosmetic upgrades can make a big difference. Have the bathtub bleached so it's snow-white. Re-tile the shower/tub surround. Replace a fabric or plastic shower curtain with a glass enclosure. Replace linoleum with ceramic floor tile. Upgrade old sink fixtures. Either replace an old wall mirror or frame it in dark wood to make it look stylish. Replace outdated medicine cabinets in wood that matches the mirror frame. Replace outdated light fixtures. Paint. You can do the same in other bathrooms and create a very classy, coordinated effect.
Likely cost: $5,000 for a master bath; $1,000-$2,000 for smaller baths.
Likely payoff: Up to $10,000 for each upgraded bathroom. Main or master baths give you the most profit.

Landscape the front yard. Hire a landscaping company if you're busy; do it yourself if you're not. But turn your front yard into a frame for your home. Tile or brick the walkways and line them with lights. Lay down new sod. Replace landscaping plants or plant new ones, interspersing them with potted plants and statuary for a nice mixed effect. Upgrade outdoor lighting. Consider a subtle fountain for the sound of falling water. Pay attention to how your front door looks. If it's peeled or dated, replace it.
Likely cost: $3,000-$10,000.
Likely payoff: $15,000-$20,000, plus greater curb appeal.

Improve the entry area. What do people see when they enter your home? A dim entry foyer with stained laminate flooring and poor lighting? Consider first impressions and line of sight. For example, if you just upgraded your kitchen, why would you want something blocking the view from your entryway? Upgrade your flooring -- install new tile or laminate, or if the floor is wood, have it refinished. Try colorful rugs. Install brighter, more modern light fixtures.
Likely cost: $1,000-$3,000.
Likely payoff: $3,000-$5,000.

Paint. Color is a personal choice, true, and your buyers will probably change the paint colors when they move in, but that's no reason not to paint when selling. You're out to showcase your home in its best light, and taking the time and trouble to hire a professional painter tells buyers you have taken care of your home. Don't fall into the "white or beige" trap, but also avoid rich, dark colors, because those don't appeal to everyone. Think about richer colors with wider appeal: khakis, sage greens, rich tans, subtle Tuscan golds. Hire a pro and focus on the details: window and door trim, baseboards, crown molding and so on.
Likely cost: $3,000-$5,000.
Likely payoff: $5,000-$7,500, plus faster offers.

There's much else you can do, but these choices have shown time and again that they deliver the most money on the final sale for sellers.