Testimonial from a recent transaction

Call:  (301)943-4370

adambashein@gmail.com

www.basheinhomes.info

"We were renting in the community and casually in the market to purchase a home for a very (very) long time.  Adam was incredibly patient with us, kept us posted when relevant listings came up, and never made us feel pressured with our decision.  When the right home did come up, Adam helped us make the right offer and helped to push our offer through.  If Adam had not been our agent, I suspect that someone else would be living in our home today.  After we went to contract, Adam continued to go beyond for us.  We needed to get work completed on the house before our lease was up, so he helped expedite the closing date and arranged for us to access the house before the closing on a dozen occasions.  In order to get us over the difficult hump of purchasing a home, Adam far surpassed the normal responsibilities of a realtor and acted like a true friend."  -S.G.

If you know anyone who is looking to move, whether it is buying or selling, and/or has a real estate question, please connect us!  I always appreciate and have time for your referrals.

Life is good!

Adam

adambashein@gmail.com
www.basheinhomes.info
Cell/Direct:  (301)943-4370
Office:  (301)921-4500 - ask for Adam
Licensed in MD & DC
RE/MAX Realty Group
information deemed to be accurate but not guaranteed

How buyers can make the most out of time when their offer to purchase a home includes a contingency for reviewing association documents

Cell:  (301)943-4370

Email:  adambashein@gmail.com

www.basheinhomes.info

I want to start today's post by saying that it inspired by Ken Harney's recent article in the Saturday Real Estate Section of The Washington Post. He regularly has articles published in their Saturday Real Estate Section.  This article by Ken targets people who may purchase homes in communities that are governed by associations---they have a board and bylaws.   This is most often found in condominium, cooperative and Townhome communities.  There are also communities that have single homes with a homeowner's association, subject to community rules. 

Currently, the sales contract says that buyers have the right and entitlement to receive the association documents. So a seller cannot decline to give them to you.  A buyer must receive the documents no later than 10 business days after a contract is ratified (is fully signed in agreement of terms), otherwise a buyer can back out of the contract by giving the seller notice of voiding the contract prior to receiving the documents. However, make sure it is clear whether or not the sellers or buyers in your jurisdiction customarily pay for buyers to receive a copy of the documents or if this is something that needs to be negotiated in the offer. ask your realtor and or real estate attorney.

Once a home buyer's offer on a home gets accepted, he/she have to take care of a number of matters which may have contingency time periods by which they need to be completed and so buyers prioritize what needs to be accomplished when and if there are things they don't have to worry so much about.  One of the things that a number of buyers make less of a priority is the contingency related to review of association documents/condominium documents/h.o.a. documents (or however they may be called/referred to in your jurisdiction). These documents contain vital information, which a number of people are negligent about reviewing before the purchase is complete.  The question is whether the buyers overlook the documents because they are overwhelmed with everything else that needs to be taken care of during the contract period or they just can't image how 'serious' the documents might be and how they might impact the buyer's decision whether or not to go through with the home purchase.

As Ken points out in the article, the biggest challenge of the association documents is how you thick/dense they are and how short the contingency period is, considering how detailed the documents are and considering everything else you have to take care o during the contract period.

For Washington, DC, the contract states that currently, the review period for association documents is 3 business days --- this is for condominiums, coops and H.O.A.'s.  Business days are defined as M-F, excluding federal holidays.

For Maryland, the review period for association documents is currently 7 days for condominium documents, 3 business days for coop documents and 5 days for H.O.A. documents.

The GCAAR Sales Contract, which is often used in Montgomery County, MD and almost always in Washington, DC (there may be a few exceptions) currently defines days as calendar days, which would include every day, including the weekends and defines business days as Monday through Friday, excluding holidays.

THE MAR Sales Contract, used exclusively in Maryland, currently defines days as including the weekends and holidays, whether state, federal or religious.  It doesn't spell out business days, but one can talk with his or her real estate attorney,agent about that if the regular day contingency period doesn't work for him/her.

In his article, Ken suggests that if you think the contingency period for reviewing the association documents gives you enough time to actually review the documents, then you should consider slashing the number of days for the contingency period and write in a new number, proposing adding a few more days to the contingency, giving you a little more time for due diligence in reviewing the documents.  I think this is a wonderful idea, however, I would only caution against doing this if the home is fairly new to the market and the seller is expecting multiple offers on his/her home.  Altering something in the contract to give the buyer's 'an advantage' could make other buyers' offers look more attractive in a multiple offer situation.  If the home has been on the market for a little while and it seems like there are no other offers being presented, then I would consider asking the seller about additional time for reviewing the association documents.  Every real estate market is different and every jurisdiction has its rules, regulations.  So follow your real estate attorney and realtor's advise.  I defer to them.

Remember, any time you or someone you know is thinking about moving, has a real estate question or wants to talk about the market, I always have time for you referrals.  Thank you.

Life is good!

Adam

Licensed in MD & DC

adambashein@gmail.com

www.basheinhomes.info

Cell:  (301)943-4370

Office:  (301)921-4500

RE/MAX Realty Group

information deemed to be accurate but not guaranteed

Possible ways to keep your interest rate lower when purchasing a new home or investment property

Call:  (301)943-4370

Email:  adambashein@gmail.com

www.basheinhomes.info

Most every time a person buys a home, one says to him or herself "the numbers have to work" or I can't go through with the purchase. 

Home buyers, whether looking at a place as their potential home or investment property look at the property condition, what work needs to be done, what work they would like to do, can they afford the work and with the help of their realtor, the home is priced correctly based on the property condition or if they need to get a lower price for the purchase to make sense for them.  (Yes, by all means, if you want, by all means try to negotiate on price, terms if the home is priced correctly, but also know the real estate market conditions in your neighborhood. But that is a for a different discussion.). 

When the buyers are investors, if they are looking to purchase the home and keep it as a rental, they also need to calculate whether they will be adding value with the repairs, improvements and be able to rent the property for more money than they would in the property's current condition.  If the property is move-in ready, than they don't have to calculate repairs and improvements.   On the other hand, when buyers are looking to flip houses, they need to make sure after the repairs and renovations that they will be able to sell for a good margin.

The starting point is getting a loan approval for the potential purchase, knowing up to what price range you are approved for, what the interest rate and payment is with a few different loan options, so you know up front your purchasing power and what you potentially need to rent out the property for (if it is to keep the home as a rental and not flip it) in order to have a positive cash flow on the rental.

Interest rates for investment properties tend to be higher than interest rates for primary residences.

There are a couple ways to possibly get a lower rate for a loan on an investment property.  These only apply for people who already own a home.  Use a home equity loan or line of credit.  Since rates on home equity may fluctuate, it might be safer to do this for a flip, because your intention is to repair and renovate the home as fast as possible and then sell it. So, fluctuating rates may not be as relevant to flippers since they, by definition aren't holding on to their homes.  

If you are planning to hold the property as a long term rental, a home equity loan or line of credit is a move to consider if you are planning to refinance at a certain point, which is trying to predict what the future market interest rates will be in the future.  Something else to consider if you are doing a home equity loan or line of credit is that you are using your current home as collateral.  Some people are comfortable with this and others aren't. The right decision for some is the wrong decision for others.

The simple, traditional route, if you don't like risk is simply apply for a mortgage on an investment property, knowing the interest rates may be higher and taking that into account especially if you are looking to purchase a long term investment property (considering your cash flow every month after collecting rent, paying the mortgage, if you pay a property manager, any expenses).

As I am sharing these ideas, I defer to your lender, financial advisor for guidance on what the rates for the different financing options are and what, in their opinion, is the most  are advantageous move for you.

Whether you or someone you know is thinking of buying/selling an investment property, a home, has a question about the real estate market or has a general question about real estate, please feel free to contact me.  I always have time for and greatly appreciate your referrals.

Life is good!

Adam

adambashein@gmail.com

www.basheinhomes.info

Cell:  (301)943-4370

Office:  (301)921-4500 - ask for Adam

RE/MAX Realty Group

Information deemed to be accurate but not guaranteed

When the rental situation at your investment property is going through potential changes

Call:  301.943.4370

Email:  adambashein@gmail.com 

www.basheinhomes.info

As the saying goes, the only constant in life is change.  Changes can be expected as well as surprises.  Whenever a possible change is about to come up, whether it is business or personal,  we must we the positives and negatives,  flesh out the implications and make sure these changes can be smoothly and legally implemented before going forward (or not going forward with the change).

Recently an investor who owns a rental property and discovered that there was a change in tenancy.   The rent check came in the mail and when the investor looked at the envelope, he saw an address label with the tenant's name and a second person's name with the property's address.   He opened the envelope and the rent check had both the tenant and this second person's name on it.  Sometimes the check comes in with a second person's name,  because the tenant and the tenant's parents have  a shared account.  This name wasn't familiar but the investor remembered that the tenant was dating someone.

So the next logical step was to ask the tenant if he now has a roommate because a second name was on the address label and on the rent check.

The answer was confirmed. They decided to move in , left for the holidays and forgot to tell me.  To say it was an unexpected change would be an understatement.

There are several things for the landlord/investor to consider:

1.  Does the lease between the landlord and renter allow a sublease,  adding to a lease and if so, what are the procedures for approval.

Legally speaking, the tenant didn't ask up front  permission  (even if we'll intended).

2.  Legally, with an additional tenant in the property, is the landlord's property in compliance with the jurisdiction's department of housing occupancy standards and regulations.

3.  If the property is in part of an association,  what rules and procedures need to be followed when someone moves in to the property....yes there can be community association rules and regulations,  fees for changes in tenancy. 

Assuming that the answers to 2 and 3 are yes and it is manageable from the investor's standpoint,  there are additional considerations:

4.  Has the tenant been responsible in paying rent on time, taking good care of the condo and is a fair and reasonable person who you get along with or if you have a property manager,  the property manager has had easy and pleasant dealings with.

5.  How will this impact utility bills?  Well, if that is a tenant responsibility, then is it really an issue?

6.   In relation to 5, how much additional wear and tear will be put on the property, appliances and is it worth it?

7.  Does the additional tenant smoke or have pets?  This is important particularly if you don't want smokers and/or you don't want pets/additional pets if the first tenant has pets.  In addition if in an association are there smoking and pet restrictions?

So these are several issues that a landlord has to consider and there are probably additional considerations.   If the landlord is OK with a second tenant moving in, then he and the tenant have to come to an agreement on any changes to the rental terms,  the tenant should agree to pay the association any fees associated with a new tenant and the new tenant has to agree to comply with all the terms of the lease and community rules.

If you add a tenant to a lease make sure to put all the terms and conditions into an addendum to the lease,  make the association...if you live in an association aware of the situation and give them a copy of the addendum. 

Mostly,  if you encounter this kind of situation,  bring in a real estate attorney to work things through if you don't have a professional property management company who deals with this as part of their job.  I am just giving you things to consider. 

Amazing how this situation came about because the landlord is old school and gets rent checks in the mail rather than getting paid via PayPal or the tenant directly placing/transferring money into the landlord's bank account.

Any time you or someone you know is looking to make a move, has a real estate question or just wants to know about the current real estate market, call or email me.  I always have time for and am grateful for your referrals.

Life is good!

Adam

Licensed in MD & DC

RE/MAX Realty Group

Adambashein@gmail.com 

www.basheinhomes.info 

Cell:  301.943.4370

Office:  301.921.4500-ask for Adam 

Information deemed to be accurate but not guaranteed.

7

Just rented in Kemp Mill Estates, a subdivision in Silver Spring, MD.

Cell:  (301)943-4370

adambashein@gmail.com

www.basheinhomes.info

I just helped a family who needed more living space than an apartment but wasn't ready to buy yet

find a detached single family home to rent in Kemp Mill, a subdivision in Silver Spring, MD

The home is a split foyer model, located at 904 Hoyt Street.  This corner lot home also has a garage, which is rare for the older homes in Kemp Mill.   This home is in a great location, with a public bus stop currently located around the corner on Arcola Ave, so easy metro access if one doesn't have a car. Though out of season right now, Parkland Pool is also very close. In addition the home is just a few blocks away from Kemp Mill Shopping Center.

904 Hoyt Street makes a great commuter home for people who use the metro or drive to work in DC and Virginia as it is close to the Red Line Wheaton Metro and to the beltway, Route 495.

While the majority of my business is helping people in selling and buying homes, I am here for all your real estate needs and was happy to help this client secure a rental property.  If you are ready to move and as a home owner aren't sure if you are ready to sell, I would be happy to discuss with you the positives and negatives of renting your home vs. selling it or selling it.  If you are moving from out of town into the area, unless you know the neighborhood very well, I suggest you rent first for 6-12 months before buying to make sure you are happy with what the community you are thinking of planting roots in and, at the same time, keeping your options open to explore other neighborhoods before buying.

Whenever you hear of a family member, friend or colleague who is thinking of moving, looking for guidance or has a real estate question, please think of me. I always have time for and appreciate your referrals.

Life is good!

Thank you!

Adam
Licensed in MD & DC

adambashein@gmail.com
www.basheinhomes.info

Cell:  (301)943-4370
Office:  (301)921-4500 - ask for Adam

RE/MAX Realty Group

information deemed to be accurate but not guaranteed

My listing at 302 Burnt Mills Ave in Burnt Mills Manor, a subdivision in Silver Spring, MD Just sold! I used an out of the box open house to secure the buyers

Cell/Direct:  (301)943-4370

adambashein@gmail.com

www.basheinhomes.info

On Monday we closed on my seller's now former home at 302 Burnt Mills Ave in Silver Spring, MD., located just off of Colesville Road/Route 29 in a subdivision called Burnt Mills Manor.

The home is a cozy 4 level brick  split with a custom addition that created an eat in kitchen.  Most split levels in this neighborhood don't have eat in kitchens.  The home has good bones and was a good opportunity for these buyers to get into a home, in a neighborhood they like, at a price they could afford and put their personal touches on the home to make it their own.

Despite being just off of a main road, Burnt Mills Manor is a quiet destination subdivision, meaning you don't drive through this coming to enter another community, almost like a no outlet street.  And, 302 Burnt Mills Ave is at the end of the street, very close to a walking trail.

On the selling side, I did target marketing, moved some items around and out of the house during the listing period, did some small home improvements to make the home show better and took a new set of pictures to show the changes to the home from when it was first listed.

The biggest challenge we faced and other sellers may face depending on the draw and desirability to specific neighborhoods was finding the buyer with the desire as well as vision to update the home.  Some buyers are of the mindset/temperament that they only want to buy fully updated/renovated homes.  

Late in the summer, to re-fresh the listing, since I thought the home showed better than when it was first on the market, we had a new set of pictures taken with floor plans of the home.

Labor Day Weekend was quickly approaching and I had a vacation planned.  So I decided to have a Pre-Labor Day weekend open house, holding the house open Thursday from 5 p.m. to 7 p.m. and 1 of the buyers came through the house with her agent.  On Sunday, the buyer's agent brought her and her husband back to the house to write an offer and after a few days of negotiations the buyers and sellers agreed to terms, I came back to town from vacation for the day to meet the seller and he signed off on the contract.

I wish the buyers happiness in their new home.

Congratulations to my seller and a thank you for the confidence to work with me through the sales process.  I am thankful also to the person who referred you to me and hope you will refer me to others in the future.  I wish you all the happiness in the world.

Any time you or someone you know is thinking about moving, whether it is selling, buying or both, the first move you should make is reaching out to me for a free, no-hassle consultation. 

My cell is (301)943-4370 and you can also email me:  adambashein@gmail.com

Even if you aren't looking to make a move but have a real estate question, please call or email me.  I always have time and am thankful for your referrals.

Life is good!

Adam

adambashein@gmail.com

www.basheinhomes.info

Cell/Direct:  (301)943-4370

Office:  (301)921-4500 - ask for Adam

RE/MAX Realty Group

information deemed to be accurate but not guaranteed

Shortage of Appraisers and how to plan as both a buyer and a seller

Cell/Direct:  (301)943-4370

adambashein@gmail.com

www.basheinhomes.info

http://www.msn.com/en-us/money/realestate/massive-shortage-in-appraisers-causing-home-sales-delays/ar-BBwHkuC

Part of the sales contract includes the option of having an appraisal contingency. When getting ready to write or review an offer, depending on whether I am on the buying or selling side, I ask the lender how many days the appraisers he/she works realistically need to to complete this contingency to make sure it is in line with what is on the contract.

As you can see from reading this article, there is a shortage in appraisers which is often resulting in delays during a sales contract period so it is extra important for sellers to do as much upfront diligence on a buyer to make sure they are qualified financially to buy their home before accepting a contract as sellers should have it in the back of their minds that as a consequence of the shortage of appraisers, the contract period may take a longer time. 

http://www.msn.com/en-us/money/realestate/massive-shortage-in-appraisers-causing-home-sales-delays/ar-BBwHkuC

Some buyers try to wait until after the home inspection contingency is fulfilled before giving their lender the green light to order an appraisal but doing so can put the buyer behind the 8 ball on the contingency if it takes a long time to get the inspector out to the house and/or there are lots of back and forth between the buyers and sellers in negotiating inspection items. A domino impact is that the lender cannot give a financing commitment until the appraisal is complete and a delay in that could delay in settlement. And, if you delay settlement, you may have to pay to extend your lock-rate, though interest rates remain very low.

If timing is tight a buyer can always write an addendum asking the sellers to extend the appraisal contingency. The selling side must be agreeable and this may depend on how friendly or abrasive negotiations have been, how long the house has been on the market and how long it has been off the market under contract.

Sellers, my biggest piece of advice is that your agent should do as much diligence up front in reviewing each buyer's offer, talking with their lender and making sure that the buyer is strong financially before accepting an offer.  If the buyer is strong and has otherwise presented a contract that works for you as is or is negotiable,then I would keep it in the back of my mind that if the buyer needs to extend the appraisal contingency (which could also mean extending the financing contingency and the settlement date), I would agree unless the buyers are not being reasonable during the inspection period and you want to start fresh with a new possible buyer.

 In addition, before considering backing out of a contract, I would factor into this how many days your home was on the market before getting any offers, if the market is strong or weak for sellers.

Any time you or someone you know is contemplating a move or has a real estate question, please call me:  (301)943-4370 or send me a note to adambashein@gmail.com.  

I always have time for and greatly appreciate your referrals.


Life is good!

Adam
adambashein@gmail.com
www.basheinhomes.info

Cell/Direct:  (301)943-4370
Office:  (301)921-4500  - ask for Adam
RE/MAX Realty Group

Information deemed to be accurate but not guaranteed