Archive for the 'Real Estate News' Category
Yes, Mortgage Money Is Still Available
October 20th, 2008 Categories: Mortgage Update, Real Estate News
In the recent turmoil around bank failures, government relief packages and an extraordinarily erratic stock market, the words”tight credit” have been a regular part of media coverage. Unfortunately many potential buyers have assumed that those two dreaded words applied to them. Not so! Mortgage money is still available.
Our colleague, Rob Clark at Preferred Mortgage, offers this encouraging news:
1) Mortgage product is widely available. Preferred has sold loans to 21 different state and national investors and brokered loans to dozens of others.
2) Borrowers can still qualify for a loan. It is absolutely true that today’s underwriting standards are stricter than those of the recent past - a very good thing for the mortgage industry. Borrowers are now required to document their income, their assets, and prove that they are credit worthy. Old fashioned? Maybe. Prudent? Absolutely. A borrower with proper documentation and the appropriate income to loan ration will have no problem obtaining a loan.
3) Preferred Service Mortgage was never a major player in the sub-prime market. In 2005, at the height of the subprime frenzy, Preferred Service did just 3.5% loan volume in this category. This means Preferred is in an excellent position to take on the long anticipated upswing in the housing market.
Questions? Feel free to contact me at 703.548.0938 or Rob at 703.518.2814. We’re ready when you are.
Michael
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The Emotional Cost of Buying and Selling Real Estate
October 13th, 2008 Categories: Real Estate News
A few months ago I reviewed a book that chronicled the story of a young family who, despite all odds, succeeded in making a run down, ramshackle house a home. The point being that buying a house is about so much more than getting a good deal or making a wise investment.
Yesterday in the Washington Post, staff writer Ylan Q. Mui made a similar point in an article that chronicled her and her husband’s own hunt for a house during the past six months.
Mui notes that “Sellers become depressed as homes stagnate on the market. They get insulted when they receive lowball offers. Buyers feel entitled to a deal and fret about finding the bottom of the curve. The process has become so emotional on both sides that psychologists rank it on par with divorce and even death.”
She also quotes Ruth Peters, a psychologist who has worked with us at Coldwell Banker. “People have a preconceived notion that it’s like walking into a store and and you’re going to see something and pick it out . . . Those are expectations that are generally not met. It’s going to take emotional work and physical work.”
I couldn’t agree more. I’m currently working with a couple who first came to me over a year ago as renters. Now they are ready to buy. We have looked at a lot of property. We have lost one contract on a short sale. We are writing another contract today. It’s been emotional and physical work on both sides.
I understand it but I don’t think my clients bargained on it being this tough. They have been real troopers though - they have stuck to their budget, they continue to trust the relationship we have built and, perhaps best of all, they have remained calm and optimistic.
They are not looking for a castle, they are not trying to gauge the ‘next hot neighborhood’ or where the military might relocate a large facility. Instead they are looking for a house that is within their means; a house that feels right, a house that will become home.
We’ve got more work to do but when we do find that house, all that work will become a distant memory.
What about you? Are you ready to dig in and do some work? Give me a call at 703.927.4554 and I’ll be right there with you.
Michael
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September Home Sales in Alexandria’s 22301 Zip Code
October 7th, 2008 Categories: Real Estate News
There were 9 September home sales in zip code 22301 which encompasses the Alexandria neighborhoods of Rosemont and Del Ray. Median sales price was $558,000; median list price was $575,000 for a 1.92% differential. Median days on the market - 14.
This is a drop from the 15 homes that sold in August in 22301. In August the median sales price was $510,000 and the median list price was $525,000 for a 1.71% differential. Median days on the market - 17.
If you are interested in more information about any of these sales or about other properties in the neighborhood, call me at 703.927.4554.
Michael
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