Should buyers avoid Short sales?

This question is one that many buyers out there are contemplating at this very moment.  Short sales are not a sure thing when it comes to getting ratified and going to closing.  The bank is in control on the price and condition and settlement date.  For these reasons many buyers avoid short sales.  Many buyers cannot remain flexible and up in the air on the settlement date.  They must have a specific timeline to follow and be able to rely on the dates.  The short sale is not for this buyer.

Yet, if a seller is short selling for the right reasons and under the right conditions, there is no reason why buyers should not consider the short sale home versus a regular sale provided they have the flexibility to roll the dice and take their chances should the property not close in a timely manner or not at all.

The seller should be in a position of having to sell.  Foreclosure must be imminent to the seller or they should not be short selling.

 The seller must also have a particular hardship that is placing them in the short sale position.  This could be job loss, divorce, health issues and so forth.   On top of being underwater (they owe more than the property is worth), they must be able to prove that they are financially unable to pay off their mortgage with other assets.  If all these reasons apply to the seller, there is every reason to believe that the sale will be successful.

Each bank is different on how they deal with the short sale process.  And of course, more than one loan on the property complicates the situation a bit more.

With 30% of all real estate transactions being short sales, it is worth considering these properties as possibilities.

If you'd like to make the most of your real estate transactions, call me today, I will treat your transaction as if it were my own....


                                            Carla Brooks
                                             703-577-4960
                                            


PS All photos are a courtesy of http://www.freedigitalphotos.net

2012 Real Estate Trends

1.  More Buyers will appear in the market in 2012 than have appeared in the last 6 years.  This is because the economic conditions in the country will continue to improve.  There is alot of pent up demand for housing in that many buyers have been sitting on the fence and waiting for the right moment to buy.  They will see the favorable interest rates and softening housing prices as a signal to buy in 2012.

2.  Foreclosures will rise since the "robo signing" fiasco halted many foreclosure proceedings in 2010.  Distressed properties sell for less than market value so this foreclosure trend will adversely affect the non-distressed property values.

3.  Housing prices will soften as a result of the increase in foreclosures.

4.  Since housing prices will soften, there will be more short sales created by the "negative equity".  Banks will probably ease up on the short sale process to expedite the sale of distressed properties and keep their costs down.

5.  2012 will be a great year for real estate sales and restore the consumer confidence in owning vs renting.

If you want to make your real estate dreams come true, call me today.  I am ready to assist you in any way I can.  I will treat your transaction as if it were my own....

Carla Brooks

703-577-4960

email: brkslong@aol.com

PS all photos are a courtesy of free digital photos 

Buyers and Sellers: Protection is the key!

For those of you that are currently in the process of buying or selling a home (or those who will be) :

The one single thing that you can do to protect yourself is to purchase a home warranty immediately when you list your home or when you put a contract in on a home.  Why is that?

For many reasons.  No party wants to deal with surprise expenses during the course of a transaction or worse yet--- at the settlement table.  The home warranty usually covers all things "that run".  That includes electrical systems, plumbing systems, the heating and air conditioning unit(s), major appliances and so forth.  To replace any of these items would be expensive and a nuisance to say the least.  Just do it--buy a home warranty and be done with it.  No more worry over pre-existing conditions and unexpected large scale expenses during the listing period and for a year after settlement.  And the policies are usually renewable!

Long & Foster has recently put their stamp of approval on the 2-10 and HMS warranties.  What does this mean for buyers and sellers?  It means that with Long & Foster adding their name to the product, this will add them in the picture and hold them accountable should anything go awry.  Hows that for backing up their clients?  Thumbs up for Long & Foster for taking this bold step!

They (we) sincerely want you to have a smooth transaction and we want you to be happy in your new  home!

If you'd like to buy or sell a home call me today.  I will treat your transaction as if it were my own.

Best regards,

Carla Brooks

703-577-4960

Ps All photos are a courtesy of:  http://www.freedigitalphotos.net/

QRM's: The latest threat to the US economy?

What is a QRM? A QRM is a Quality Residential Mortgage product created by the Dodd-Frank financial reform bill. QRM's, in theory, are being developed to prevent future economic crisises brought on by mass defaults on residential mortgages. Defaults on mortgages are to blame for the "Great Recession" the world has been experiencing from 2005 to present.

No one is arguing with the fact that underwriting standards for home mortgage loans became so lax that those who had no business buying a home qualified for and obtained mortgage financing.

The Frank-Dodd legislation will reguire that the originators of loans maintain some risk along the way so they won't be so quick to hand a "ticking timebomb" to some unsuspecting investor (i.e. bankers, investment firms etc). A reasonable requirement at first blush. Let's examine this further however.

Initially, it was thought that a 20% down payment would be required by the borrower to qualify as a QRM. Banks would be allowed to offer more riskier loans of course....yet higher interest rates would be required to shoulder some risk in each loan. The QRM would be the standard and borrowing costs for other loans would be higher. (Some experts predict the difference between the two types of loan cost could be as high as 3%!) Other proposed QRM provisions include: a debt to income ratio <=28%, no more than two 30 day late payments.

With housing being a significant force driving the national economy its understandable why many economic experts, financial gurus, banks, and realtors are quite concerned that the QRM standards could significantly reduce the number of real estate transactions at a time when the economy needs them the most. Are QRM's an over-reaction to the mortgage crisis? Many concerned citizens feel that they are.

No one denies that loan underwriting standards must be more realistic and stricter than the standards of the late 90's and first half of the 2000's yet has the pendulum now swung too far in the opposite direction? Many believe it has, since hard working people with good credit are now being turned away. If the QRM legislation requires 20% down this could be enough to put the country in a double dip recession.

The reality is that a 20% down payment would be a hardship for many hard working buyers with great credit scores. Some experts have guestimated that it typically would take a good 15 years for a first time buyer to save up the 20% to buy in high priced metropolitan areas such as the Washington, D.C..

Similarly, the FHA's conforming loan limit of $729,750 is expected to drop to $625,500 in the fall. High priced housing markets will feel the repercussions from this change as sellers and buyers struggle to negotiate their way to the settlement tables.

Its a good time to call your local congressional representatives and let them know how you feel about the proposed QRM legislation. Every voice counts when the stakes are as high as they are!

Keep in mind that according to a recent article in the Washington Post "about 90% of the home loans written these days are guaranteed by Fannie Mae, Freddie Mac or the Federal Housing Administration. The remaining 10% are loans didn't qualify under the Fannie Mae, Freddie Mac, or Federal Housing Administrations underwriting guidelines and are part of the originating banks portfolios. Currently, a majority of investors, are not generally interested in purchasing the mortgages not backed by the federal government. Can we blame them?

If you'd like to make the most of your real estate experience call me today- Your transaction will be treated as if it were my own!

Best,

Carla Brooks

PS All photos displayed in this post are from http://www.freedigitalphotos.net

The Persuasive Power of Professional Design!

Been to a model home lately?

Even if you're not interested in purchasing a new home, touring model homes is a great way to keep up with home interior construction trends, fashion, and the latest and greatest in home accessories . As many of you already know, builders typically hire high-end quality home interior designers to create that irresistable "wow" factor for potential buyers.

I recently stopped in to view a model home in Vienna by Courtland Homes. The entire interior color scheme is grey neutral with organic fabrics, nature inspired accessories and artwork and functional "purpose" based living spaces. I took lots of pictures and will share them with you:

Here are a few of the light fixtures, many of which, are of European origin:

The entryway is light filled, spacious and accented with wood paneling that looked more like clapboard siding than the traditional wainscoting found in many upper end homes:

The living room, decorated with painted furniture and sand dollars framed in a neutral setting, invokes a sense of calm and understated elegance:

The dining room, with tone on tone wallpaper, a worldly sphere light fixture, painted furniture, pussy willow filled vase and casual makeshift sideboard evoke lifestyle choices made for functionality versus pedigree:

The library, complete with fireplace, is located in a light filled corner not in the center of traffic:

The kitchen sports painted cabinetry, small tiled backsplash, soapstone countertops, stainless steel appliances, butcher block topped island, shaded lighting fixtures--clearly arranged to welcome all visitors to share the experience of whatever meal is being prepared and whatever sport game or movie is being viewed:

The main level family room, an open continuation of the gourmet kitchen continues the theme of relaxed living and understated elegance geared toward functionality:

First floor optional master bedroom: A plus for those transitioning to one level living and/or those with a handicapped or elderly relative.

The upper level master suite is a delight to behold. The nautical theme continues with all the latest and greatest in home construction materials.

An ocotopus inspired framed piece:

Master bedroom dressing area with nautical window and light fixture:

gorgeous shower!

love the carerrra marble!

The hallway bathroom is loaded with earthy state of the art materials:

oiled bronze fixtures look great with the soapstone counters,

The jack and jill bathroom on the upper level features double custom square cut sinks with stone countertops and small tiled flooring.

The 2nd bedroom is decorated with a pale pink paint & bedspread. Accessories include:

a grassy casual throw rug under the bed, drippingly sweet bedspread & painted furniture...

The third bedroom continues the theme of understated elegance with muted pastels and casual furniture:

Sweet gingham curtain panels add loads charm and a casual air....

The lower level is a fabulous multi functional collection of casually arranged furniture and accessories all intended to satisfy the needs of todays modern family ( combination craft/laundry room, billard & bar area, workout room with sauna, movie sized flat screen, game tables etc.

chess anyone?

crisp and playful...

Pool table and bar area...

combo craft room, laundry room....

sauna anyone?

At around 6,000 square feet this home has it all....

Hope you enjoyed the tour. The design firm that decorated this model home can be found here:

www.dreamhousestudios.net

If you'd like to make the most of your real estate experience call me today. I am here to earn your trust and I will treat your transaction as if it were my own!

Best,

Carla Brooks