Sales slow, inventory dropping

Call:  (301)943-4370

Email:  adambashein@gmail.com

www.basheinhomes.info

Who do you know that is thinking of moving?  I am here to help.  Any time they want to talk about the market or have a real estate question...even if they aren't thinking of moving, please either share with their permission, the best phone number and email to reach them or have them reach out to me...whatever makes them more comfortable. I always appreciate and am grateful for your referrals. I also pride myself on being high service and low pressure.  So I will move at your family member's/friend's/colleague's pace.

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

Maryland tackles Student Debt

 

 

 

Call:  (301)943-4370

Email:  adambashein@gmail.com

www.basheinhomes.info

 

 

 

The state of Maryland is making an effort to help potential homebuyers who have student loan debt. They’ve launched two specific programs within its Maryland Mortgage Program (MMP).

You’ve Earned It Program –This Maryland program gives a little bit more help to those first-time buyers who qualify for a MMP loan and also have a minimum of $25,000 in student loan debt (whether it’s in repayment or deferred status).

• Recipients will get $5,000 as part of down payment assistance (DPA) deferred loan with 0% interest;
• Recipients will receive 0.25% below the regular conventional and government interest rate for MMP 1^st

The home must be located in a Sustainable Community (a wide range of localities marked in orange on this map.

Other conditions include: You must complete homebuyer education. You must use an approved lender. Condo buyers will need to purchase in a FHA or Fannie Mae-approved building.

Also available with the You’ve Earned It program — The Partner Match Program and the Maryland Homecredit Program.

Check out mmp.maryland.gov/EarnedIt for more information.

SmartBuy Program — This Maryland program is different since it’s focused on a specific and limited number of eligible properties that have been selected by the Department Real Estate Owned (REO).

There’s not as much flexibility in the selection of a home, but this could be an option for some buyers. So take a look at its current list of homes available for sale.

This program will pay off any outstanding balance on a borrower’s student loan at the time of the home purchase with certain restrictions. You must have a minimum of $1,000 student loan debt and up to a maximum of 15% of the home’s purchase price.

First mortgage will finance up to 95% of the sales price. A second mortgage will be a forgivable loan to pay off the student loan balance. A third mortgage can be in the form of a down payment assistance 0% deferred loan.

You must live in the house for at least 5 years to have your student loan debt forgiven.

For more information, check out mmp.Maryland.gov/SmartBuy

Tapping into Federal Loan Programs

There are several government programs that offer loans that are better for borrowers with student loans and on a tighter budget.

Each has different requirements and may not be a good option for you. However, one may make your homeownership dreams comes true.

• Fannie Mae HomeReady Mortgage — allows up to a 50% DTI and 3% down payment.
• VA Loan Guaranty – Buyers who have served in the military can qualify for a loan with 41% DTI. That can be overridden if some of your income tax free.
• FHA Loan – Usually allows a 43% DTI but will sometime allow a higher DTI on case-by-case basis.

I hope this is helpful.

Anytime you or someone you know is thinking about buying or selling a home or has a real estate question, I would love to speak with them. Please either share their contact with me or share my contact with them...whatever they prefer. 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

RE/MAX Realty Group

Licensed in MD & DC

information deemed to be accurate but not guaranteed

 

 

 

Testimonial from a Happy Home Seller!

"Adam was lovely to work with when I recently sold me deceased father's home. Patient, kind and very accommodating, I highly recommend him." - A.L.

Call:  (301)943-4370

Email:  adambashein@gmail.com

www.basheinhomes.info

Any time you hear of family, friends and colleagues who are looking to relocate, your first move should be telling them to contact me for a free and no hassle consultation.   Even if they have a real estate question and aren't looking to move right now, I would love to speak with them. I always have 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
Licensed in MD & DC
RE/MAX Realty Group
information deemed to be accurate but not guaranteed

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