Howard County Real Estate Market Update,Based on December 2009 Real Estate Information

So,how is the Howard County Real estate market? Is it getting better? Is it getting worse? Or is it the same?

The photo above is of Centennial Park in Columbia.

The answers may vary by neighborhoods/sudivisions and zip codes. The website below from mris,is an overall picture and these reports come out in the middle of each month. Information is deemed to be accurate but not guaranteed.

http://www.mris.com/reports/marketupdate/Howard%20County.pdf


Here are a couple of Howard County highlights:

1. For 2009 year to date in Howard County,the median sales price was down 9.3% compared to 2008. However,comparing December 2009 to December 2008,the median sales price was UP 3.5%! In fact,the median sales price for December 2009 was 6.35% HIGHER than it was for the rest of 2009. Perhaps 2009 Howard County home buyers "bought low" and yet the market seems to be improving for sellers.

2. For 2009 year to date in Howard County, the average days on market until sale
improved by 10.9% compared to 2008. Comparing December 2009 to December 2008, the average days on market until sale improved by 26.4%. Look at 2009 year to date raw numbers,homes were on the market for just over 3 months and just under 3 months in December. While homes weren't selling in a day,many consider it to be a "seller's market" when homes sell in 5 months or less.

3. For 2009 year to date in Howard County,new listings were down 14.5% compared to 2008 (less homes went on the market for sale). New listings were down by 18.2% in December 2009 compared to December 2008. However,there were a lot more buyers out there! Closed sales in 2009 were up 7% compared to 2008 and they were up in December 2009 by 12.4% when compared to December 2008. Looking at raw numbers,there were 220 new homes that went on the market in December 2009 and 200 homes that settled in December 2009. Those numbers practically cancel each other out! Furthermore,another 189 homes went under contract in December 2009. Housing inventory is down. People are selling and buying.





For more specific information about a neighborhood you are interested in let me know
and if you want a FREE PRE-HOME MARKET EVALUATION, let's meet.

Life is good!

Adam
adambashein@mris.com
www.basheinhomes.info
Cell: 301-943-4370

Adam Bashein
Licensed in MD & DC

Weichert Realtors
7821 Tuckerman Lane
Potomac,MD 20854
301-718-4100 ext. 132

By the way,I am always appreciative and always have time for your referrals.

Montgomery County Real Estate Market Update,Based on December 2009 Real Estate Information

So,how is the Montgomery County Real estate market? Is it getting better? Is it getting worse? Or is it the same?

The answers may vary by neighborhoods/sudivisions and zip codes. The website below from mris,is an overall picture and these reports come out in the middle of each month. Information is deemed to be accurate but not guaranteed.

http://www.mris.com/reports/marketupdate/Montgomery%20County.pdf

Here are some highlights:
1. Comparing all of 2009 to 2008, the average days a home was on market until sale improved by 12.1 %, and comparing December 2009 to December 2008,the average number of days a home was on market until sale improved by a 32.5%!

2. Comparing all of 2009 to 2008,the median sale price of homes was down 13.2%.Some buyers have taken advantage of this opportunity. On the bright side for home sellers,comparing December 2009 to December 2008 the median sales price of homes was down only. 2.9%...a marked improved from the recent of the year and a possible sign for home owners and future sellers that home sale prices are on the upturn.

3. 12.8% less homes went on the market for sale in all of 2009 compared to all of 2008,while 3.6% less homes went on the market in December 2009 compared to December 2008. Furthermore,comparing all of 2009 to all of 2008 closed real estate sales where up 21.1% and comparing December 2009 to December 2008,closed real estate sales were up 18,2%. So while less homes have been going on the market,more homes have been selling--supply of homes is down,which is good for home sellers whose houses are for sale,are priced well and show well.

Above is a photo of the Clara Barton House in Glen Echo, Maryland


For more specific information about a neighborhood you are interested in let me know
and if you want a FREE PRE-HOME MARKET EVALUATION, let's meet.

Life is good!

Adam
adambashein@mris.com
www.basheinhomes.info
Cell: 301-943-4370

Adam Bashein
Licensed in MD & DC

Weichert Realtors
7821 Tuckerman Lane
Potomac,MD 20854
301-718-4100 ext. 132

By the way,I am always appreciative and always have time for your referrals.

Check the names on the deed for your home today!

I got back from a listing appointment in Washington DC a short while ago and have a scenario:

To make a short story short...in mls and in tax records I looked up the owner(s) of X Street WDC 20037 and Jon Smith comes up as owner. I met with Mr. Smith's daughter who told me that she purchased the condo unit with her dad...at least with her name as well.
I reviewed a folder she had with the contract for purchasing the condo and the contract has both Mr. Smith and his daughter listed as buyers. Something seems to have gone wrong or astray.

I didn't see the name of the company who performed settlement and asked her to find out from her dad.

She didn't have a copy of the deed on her for me to see,so she'll ask her father about it.

The issues are at least the following: the goal was to set up the condo as a primary residence with daughter on title since daughter was living there while dad at home in Massachusetts. The plan was to set up the home as a primary residence where his daughter has in fact lived since the purchase and so he wanted her on the title for better interest rate on the mortgage. There are also tax implications (not related to and before the $8000 tax credit existed)..he might have not received first time DC home buyer tax benefits if home recorded as an investment property with an absentee owner (as opposed to a primary residence).
As is on the tax records if sold today,I believe the seller wouldn't be eligible for any capital gains benefits.

Currently as is I don't believe the daughter can sign any legal papers to list the home or to be any part of a sales contract without her father giving her power of attorney,since only he is considered "the owner".

Do yourselves a favor and check the title work for your home and make sure it reads currently,how it is intended andis it consistent with the sales contract you put on the home. If there are any problems or questions,contact the settlement attorney for your home.


So I have inquiries out to a couple of settlement attorneys who I have worked with to get their input on the matter and will tell the sellers my findings.




Adam
adambashein@mris.com
www.basheinhomes.info
301-943-4370

Adam Bashein
Licensed in MD & DC

Weichert Realtors
7821 Tuckerman Lane
Potomac,MD 20854
301-718-4100 ext. 132

If I am selling my home,should I withdraw it from the market during the winter months and put it back on the market in the spring?

This is a question sellers ask themselves and their realtors every year. Is it a waste of time and effort for my home to be on the market during the winter months?

Here are some reasons to withdraw your home from the market during the winter and to wait for the spring to put your home back on the market:

1. If you aren’t motivated to sell your home. “you don’t need to sell your home”.
You would be just as happy living where you are if at the end of the day your home doesn't sell. If that is the case,you should tell your realtor so he/she doesn't continue to pump money and energy into selling a home you don't want to move out of.
Maybe you haven't identified your new home or if you have,your purchase is not contingent on selling your current home. Or perhaps you can't get the asking price on your, but you don't need to sell because you are in financial position to continue paying your current mortgage.


2. If you are covering the mortgage with your salary and/or if you have rental income and you haven’t received any reasonable offers.

3. If buyers aren’t coming in because the weather is too bad for them to go out house hunting. It is hard to gauge this and it is probably more of an individual’s habits. There hasn’t been much traffic on your home and it could be (1) weather, (2) price, (3) property condition,(4) other.


4. While your home is off the market, you focus on home improvements,curb appeal and market activity so your home will look better and be positioned better when it goes back on the market.


5. You don’t have to worry about buyers tracking snow, rain and dirt into your home during the winter, although it can rain any time and you for snow you would be shoveling for yourself anyway.


6. Because it gets dark outside earlier in the winter there is less opportunity for buyers to look at homes and so hopefully more buyers will come out after the clock changes and the sun sets later.


Reasons to keep your home on the market during the winter and wait for the spring to put your home back on the market.







1. The spring market is upon us as we speak. There is also increased market activity with the $8000 first time home buyer tax credit being extended and the $6500 repeat buyer tax credit. Buyers trying to take advantage of the $8000 first time tax credit and/or the $6500 repeat buyer tax credit (where you need a contract by the end of April 2010 and need to settle by the end of June 201) may buy other homes that are on the market. You may lose opportunities with serious buyers.


If your home isn't attracting these buyers,then you should look at ways to make your home more appealing in appearance and price.


2. Other home owners have given up/may be giving up on selling their homes during the winter, withdraw their homes from the market, which results in less competition-less houses on the market. You could be one of the homes people notice more when other homes go off the market.


3. There are no assurances that the market will be better than it was in the winter. “Real estate forecastors” are mixed on whether the market will be better, the same or worse. The proof is in the pudding.

4. You are unable to cover your mortgage. If you take your home off of the market, you will continue to lose money each month,falling further behind. Taking your home off the market doesn't eliminate this issue. It tells buyers to look elsewhere.

5. January is a month that many people start jobs and if they are either renting locally or moving from out of town, they may consider buying. People start jobs at different points during the year and people's situations change. People start jobs throughout the year in Metro DC. There could even be buyers renting month to month waiting to find a home.I've had a buyers renting month to month and they just had to give notice to their landlords when we found their home.


6. You never know if one person may randomly during any time your home is on the market fall in love with your house and make an offer.


7. Interest rates are still historically low. If interest rates go up while your home is on the market, then buyers will be able to “buy less house” and may not be able to afford your house.

8. If your home is not on the market and your buying a new home depends on the sale of your current home, then you won’t be in position to buy and have to hope interest rates don’t change much if not get better.

9. Even if your home is off the market for a several months, many agents and buyers will probably remember your home from the first time around and no that you tried to sell your house before. People can even look on the internet for history of homes, for when they sold, when the owner tried to sell and so forth. So, if you are withdrawing your home instead of lowering your asking price and in hopes that people will forget that you tried to sell your house before, you probably won’t accomplish that goal. If your home is off the market for less than 90 days, when it comes back on the market, buyers will see in MLS the total of numbers of days you have been trying to sell your home from the first day I put your home on the market in October.

10. What if real estate prices have fallen while your home was not on the market? You would have to price your home even lower than you considered lowering it in order to be in line with other homes that sold during that time or dropped in price during that time.


The only reasons I see to take your home off the market are if:

1. You have changed your mind about selling.

2. If you want to withdraw your house from the market while working on home improvements like painting, curb appeal and to finish packing and moving your goods out of the house.

3. I think to withdraw your house from the market just for the purpose of withdrawing and planning to go back on the market in several weeks without doing anything to your house in terms of home imrprovments and adjusting the price doesn't accomplish anything. You could lose potential buyers who are looking now.


Adam
adambashein@mris.com
www.basheinhomes.info
301-943-4370

Adam Bashein
Licensed in MD & DC

Weichert Realtors



7821 Tuckerman Lane


Potomac,MD 20854
301-718-4100 ext. 132

Still good to buy short sales. Tax Issue Affecting Short Sale transactions put on hold!

Montgomery County
Legislative Update
Many buyers are interested in buying short sales.
According to mls, in both Montgomery County and PG County there are over 500 homes listed as being short sales: 28 of these homes are in 20902;3 in 20854. There are 180 homes listed in DC as Short sales and 118 homes listed as shor sales in Howard County. In Fairfax and Fairfax City, Virginia ther are 347 homes listed as short sale sales. In Arlington there are 37 home listed as short sales.
For more information about short sales in the area you are living in and or looking to buy in as well as sell in,let me know. I'm here to help!




January 13, 2010




Legislative Success - Tax Issue Affecting Short Sale

Transactions Put on Hold!!


On Tuesday, January 12, GCAAR was informed that the County's Department of Finance Transfer Office has decided to hold off on their recent position regarding recordation and transfer taxes on short sales until further review. Their position is that short sales should be taxed on the unpaid principal balance of the mortgage as if the excess debt over and above the sale price is being waived/cancelled. Below is the new memo released from the Department:



Dear Clients of the Montgomery County Transfer Office:



We have decided to initiate further review of the Short Sale issue.



Until our review is complete, you may continue to submit Short Sales for processing (at the contract purchase price) as in the past.



Note: If, after further review, the final conclusion is that "consideration" may exceed the Short Sale purchase price, we will give you ample advance notice of this result and the appropriate procedure for calculating "consideration".



Thank you,



Tim Jones

Tax Operations Manager



GCAAR's government affairs staff is working diligently on this issue and will keep members informed as we receive any new information. If you have any questions, please contact Meredith Weisel, VP of Public Policy for Maryland at mweisel@gcaar.com.









GCAAR
8757 Georgia Avenue, Suite 600
Silver Spring, Maryland 20910


This is great news for buyers who may have started to hesitate to in buying short sales and for sellers in short sale situations,who were wondering if they would have a harder time selling their homes.

Adam
adambashein@mris.com
www.basheinhomes.info
301-943-4370

Adam Bashein
Licensed in MD & DC

Weichert Realtors
7821 Tuckerman Lane
Potomac,MD 20854
301-718-4100 ext.132

Advise on home improvements and renovations

Don't solely think of how much resale value the renovation project is going to have when you decide to sell. But, to that point,consider the practicality of the project(s)you are undertaking. For instance, is that renovation going to give your home an "awkward flow"?

I've recently shown a couple of homes, where the renovations have turned my client away. I am not talking about a room being painted hot pink,if that is not your taste,which doesn't involve structural change to the home if you buy it.

We previewed a home at 523 INGRAHAM ST NW,in a subdivision of Washington DC called Petworth. The owner of the home tried to turn the home into an income property,where he & his wife would live in one area and they would rent out the other areas to help cover the mortgage. In and of itself this sounds like a good idea. But in creating "seperate living spaces" in the home,the owner hurt the flow of his home. For instance,there is one bedroom upstairs which has a seperate entrance and a kitchenette,so a person can live there as though he or she was in an apartment. However, what the owner did and I think was a huge mistake was removing the door from that room to the upstairs hallway and creating a wall. It would have been more practical to keep the door and put a lock on it from the outside so his tenant could have privacy. Somebody who wants this house as a single family home would have to undue this renovation project. Outside the owner created a 4 car garage so he could rent out spaces to his tenants. The consequence of this was that the home has no backyard and a buyer would wants a yard would have to figure out a solution. I brought a contractor out, who I thought had a great solution, but my client thought there was too much undoing to make the home how she would want it.

Another home we saw is in Columbia heights,1216 Shepherd St NW. The owner added a main level bathroom, which in and of itself was a wonderful idea. Particularly in Washington, DC, many older homes weren't built with main level bathrooms. So guests would have to go upstairs and you would have less privacy since bedrooms are up there. However, the bathroom was created in an area that used to be a walkway and door to the backyard. That no longer exists. So, you can't go from the yard and into the main level of the home without walking all the way around the home (and of course you can't go to the backyard without going out the front door and walking around the house). It makes it a little bit tedious if you want to bbq in the backyard,if you are playing in the backyard.

Another strange renovation was closing off the stairs from the main level to the basement. I don't understand it because there isn't a washer and dryer on the main level or upstairs. Obviously the idea was using the basement as a rental unit,but it would have been simpler to put a lock on the door leading through the basement. When you are in the basement apartment,it is not apparent where the steps connecting the main level to the basement would be,so you would need to bring in a contractor. Again,if you wanted this home to be yours as a single family home,you probably would undo these renovations.
An outdoor renovation project that the owner undertook was converting the front yard into an outdoor parking area. My client likes grass,so that was an issue for her. The seller has a nice yard although the home is on a quiet street with a good amount of parking. But,you are never guaranteed a parking spot if neighbors have guests over or just buy more cars,resulting in less street parking,so I will give the owner credit for this renovation.

So,when considering a home improvement project,consider the impact it will have on the structural flow of your home. Ask some friends and ask some realtors their opinions on your renovation idea(s)before doing them. Sometimes the best advise comes from people who are on the outside looking in.

Adam
adambashein@mris.com
basheinhomes.info
301-943-4370

Adam Bashein
Licensed in MD & DC

Weichert Realtors
7821 Tuckerman Lane
Potomac,MD 20854
301-718-4100 ext. 132