December 18, 2012
New VA Loan Limits.
The VA has determined the new loan limits for 2012. In the DC Metro Region, the maximum VA Loan will be $625,500 for loan originated between 1/1/12 and 12/31/12. The loan amount may increase slightly if Congress passes proposed legislation.
The VA guarantees 25% of the total loan, and a Veteran with full entitlements will be able to borrow the $625,500 with no money down. If the Veteran has partial entitlements, then either they could take a smaller loan, or increase their down payment. Lenders will have varying requirements for down payments and loan amounts. A veteran can obtain a certificate of eligibility by making application on VA Form 26-1880, Request for Determination of Eligibility and Available Loan Guaranty Entitlement, to the local VA office.
This compares to a maximum loan amount of $729,750 for FHA loans on one family properties.
The conventional conforming loans are available for up to $417,000 the same amount as previous years.
The new Northern Virgina Real Estate contract will result in huge changes.
Monday, December 5, 2011
The new real estate contract, coming out in January 1, 2012 will make the housing sell in AS IS condition. I believe that this will result in prices falling. It will also change the way we do business.
Just one year ago, the homes that were built in the 1980s or newer seemed to have features which the market wanted. They had master bedroom baths, good closets. Indeed the townhouses have been pulling ahead in the marketplace. Now the homes seem dated when they were built before 1995. The extra rain storms have taxed roofs and basements. The droughts have been hard on foundations. Buyers' are very cautious when looking a these properties because they do not want to just take on someone else's problems.
Sellers should do their bet to put the properties in top condition and consider replacing older systems. It is better to get permits when doing remodelling so that they can assure a buyer that the work was done properly. When putting a house on the market, be prepared to do a home inspection prior to marketing so that you can let a buyer know that you are ready to sell. Also, home warranties are important as they truly do mitigate costs when moving into a new home (Old Republic paid out 8 times so far this year to my clients).
In this ever changing real estate world, this new challenge of selling the properties as they are presented will lead to new norms in how we do business.
They are planning to change the way we sell real estate here in Northern Virginia. The homes are to sell in AS IS condition, not in normal working order. This will change a lot of the ways that we do business. I do believe that this will result in prices falling more than they would of without this change.
The expectations of what the buyer is getting will be lowered. We have already seen the market be particularly brutal to the older, single family homes. And indeed the older homes all seem to have aged disproportionally in the past year. Just one year ago, the homes that were built in the 1980s or newer seemed to have features which the market wanted. They had master bedroom baths, good closets. Indeed the townhouses have been pulling ahead in the marketplace. Now the homes seem dated when they were built before 1995. The extra rain storms have taxed roofs and basements. The droughts have been hard on trees.
Earlier today, at the NVAR convention, we saw a preview of the new real estate sales contract to be used in Northern Virginia. For 30 years we have been transferring in real estate in "normal working order". That is, that the buyer could expect all the items in the house to basically function as expected. And so all parties could argue about what is "Normal", and what the buyer should expect to get. Now all the buyer is told is "WYSIWYG" what you see is what you get; the house sells AS IS. However the appliance, equipment or structure is operating at the defined time is what you are buying. We have already seen the market be particularly brutal to the older, single family homes. And indeed the older homes all seem to have aged disproportionally in the past year. Just one year ago, the homes that were built in the 1980s or newer seemed to have features which the market wanted. They had master bedroom baths, good closets. Indeed the townhouses have been pulling ahead in the marketplace. Now the homes seem dated when they were built before 1995. The extra rain storms have taxed roofs and basements. The droughts have been hard on foundations. Buyers' are very cautious when looking a these properties because they do not want to just take on someone else's problems.
Sellers should do their bet to put the properties in top condition and consider replacing older systems. It is better to get permits when doing remodelling so that they can assure a buyer that the work was done properly. When putting a house on the market, be prepared to do a home inspection prior to marketing so that you can let a buyer know that you are ready to sell. Also, home warranties are important as they truly do mitigate costs when moving into a new home (Old Republic paid out 8 times so far this year to my clients).
In this ever changing real estate world, this new challenge of selling the properties as they are presented will lead to new norms in how we do business.
New Real Estate Contract will result in changes in price and expectations.
Tuesday, October 11, 2011
The new real estate contract, coming out in January 1, 2012 will make the housing sell in AS IS condition. I believe that this will result in prices falling. It will change the way we do business.
Seller of prime property will really benefit from offering a home inspection as part of the marketing package to show that their properties are "move-in ready".
They are planning to change the way we sell real estate here in Northern Virginia. The homes are to sell in AS IS condition, not in normal working order. This will change a lot of the ways that we do business. I do believe that this will result in prices falling more than they would have without this change.
The expectations of what the buyer is getting will be lowered. We have already seen the market be particularly brutal to the older, single family homes. And indeed the older homes all seem to have aged disproportionally in the past year. Just one year ago, the homes that were built in the 1980s or newer seemed to have features which the market wanted. They had master bedroom baths, good closets and generally less maintenance. Indeed the townhouses have been pulling ahead in the marketplace. Now the homes seem dated when they were built before 1995. The extra rain storms have taxed roofs and basements. The droughts have been hard on trees.
Earlier today, we saw a preview of the new real estate sales contract to be used in Northern Virginia. For 30 years we have been transferring in real estate in "normal working order". That is, that the buyer could expect all the items in the house to basically function as expected. And so all parties could argue about what is "Normal", and what the buyer should expect to get. Now all the buyer is told is "WYSIWYG" what you see is what you get; the house sells AS IS. However the appliance, equipment or structure is operating is what you are buying. We have already seen the market be particularly brutal to the older, single family homes. Seller of prime property will really benefit from offering a home inspection as part of the marketing package to show that their properties are "move-in ready".
Real Estate Slows in the Dog Days of Summer
Tuesday, July 26, 2011
Well, just when you thought that I was ALWAYS going to be positive, we are coming to a little market slow down. Traffic is down at the open houses. Sellers are reducing prices to stay in the game. Even with interest rates hovering around 4.5%, making the payments very affordable, purchasers are still hesitant to commit. If you want to sell at this time, be sure to price your property attractively, and come on the market with the property 100% ready to go. If you are looking to buy, this is a great time to pick up some bargains.
506 Seward SquareInvestor Alert -- Grande Dame Victorian for Sale on Capitol Hill. 4 units, all rented, well priced at $1,450,000
Virgina Best Place for Business
Wednesday, June 29, 2011
Yesterday's CNBC survey to find America's Top States for Business found Virginia to be #1. We also placed well in the quality of life. CNBC rates Virginia #1 for Business
Where did all these listings come from? Investors are bottom fishing. Young Couples are everywhere.
Sunday, June 12, 2011
Good morning Friends & Clients:
Well, after months of having nothing to show, all the listings finally flooded onto the market in the past week. After the upbeat real estate news in May, that the Washington DC area was the number 1 market in the country, sellers finally realized that they can offer their homes for sale. May 2011 saw the most number of contracts for May since 2005. Sales activity at the low end of the real estate spectrum was fierce, with investors and home owners grabbing up foreclosure listings as soon as they come on the market. Many investors are paying cash for the properties. And the home buyers want to take advantage of the very low interest rates, which are currently hovering between 4.6 -5.2%. My investor clients have been grabbing up terrific bargains in Prince George's county where they are buying townhouses for about $80,000, fixing them up, and then finding tenants to rent them for about $1200/month.
We are having trouble trying to find discounted properties in Northern Virginia. The Woodbridge invesment properties often have 3 contract on them within a few days, and prices are rising. The investors have tried using the Auction sites to find properties; but this is problematic, as the price in Northern Virginia usually gets bid up to pretty close to market price. And there are not as many protections for the buyers when they buy through these auctions (for example, you may not be able to view the property). There are a few condos in the Alexandria area where properties pop up at investment prices; but these homes will usually have condo fees in the $500/month price range.
On a really positive note, I am meeting lots of young couples at open houses. This must be "echo-boom" we have been hearing about for a while. There are just lots of young families out there looking at the townhouses and entry-level single family homes. The Alexandria & Sprinfield areas both offer "Class A" real estate opportunities. Prices are good, around their 2004 levels, and interest rates are low; so people with steady incomes and good credit can buy a home for a monthly payment pretty much the same as paying rent with a very small down payment. Buyers love the FNMA, homepath properties where they can buy with just 3% down, and pay no PMI. Many of the homes have already been prepared with paint, carpet and new appliances for the new buyers.
Short sales are still here, but they are the stepchild of the industry. Buyers love the the attractive pricing on these properties, but are often disappointed with the amount of time it takes the seller's bank to approve the sale. Consequenty, it is often the investors, who can take a laissez-faire attitude towards the sale, or those buyers who want to wait for a specific location, who are entering into these short sale listings.
Call or email me if you are wondering if this is a good time for you to make a real estate move.
Best wishes,
Well, after months of having nothing to show, all the listings finally flooded onto the market in the past week. After the upbeat real estate news in May, that the Washington DC area was the number 1 market in the country, sellers finally realized that they can offer their homes for sale. May 2011 saw the most number of contracts for May since 2005. Sales activity at the low end of the real estate spectrum was fierce, with investors and home owners grabbing up foreclosure listings as soon as they come on the market. Many investors are paying cash for the properties. And the home buyers want to take advantage of the very low interest rates, which are currently hovering between 4.6 -5.2%. My investor clients have been grabbing up terrific bargains in Prince George's county where they are buying townhouses for about $80,000, fixing them up, and then finding tenants to rent them for about $1200/month.
We are having trouble trying to find discounted properties in Northern Virginia. The Woodbridge invesment properties often have 3 contract on them within a few days, and prices are rising. The investors have tried using the Auction sites to find properties; but this is problematic, as the price in Northern Virginia usually gets bid up to pretty close to market price. And there are not as many protections for the buyers when they buy through these auctions (for example, you may not be able to view the property). There are a few condos in the Alexandria area where properties pop up at investment prices; but these homes will usually have condo fees in the $500/month price range.
On a really positive note, I am meeting lots of young couples at open houses. This must be "echo-boom" we have been hearing about for a while. There are just lots of young families out there looking at the townhouses and entry-level single family homes. The Alexandria & Sprinfield areas both offer "Class A" real estate opportunities. Prices are good, around their 2004 levels, and interest rates are low; so people with steady incomes and good credit can buy a home for a monthly payment pretty much the same as paying rent with a very small down payment. Buyers love the FNMA, homepath properties where they can buy with just 3% down, and pay no PMI. Many of the homes have already been prepared with paint, carpet and new appliances for the new buyers.
Short sales are still here, but they are the stepchild of the industry. Buyers love the the attractive pricing on these properties, but are often disappointed with the amount of time it takes the seller's bank to approve the sale. Consequenty, it is often the investors, who can take a laissez-faire attitude towards the sale, or those buyers who want to wait for a specific location, who are entering into these short sale listings.
Call or email me if you are wondering if this is a good time for you to make a real estate move.
Best wishes,
Easter Showers bring May flowers
Sunday, April 24, 2011
For those of us out and about enjoying the beautiful Virginia, Maryland and DC area this weekend, we know why the real estate market will be resilient in this area. Because it is so beautiful. You can enjoy the architecture in DC; checkout the new Institute for Peace building with the dove wings for a roof. Or enjoy the many inviting harbors in the area; today we went to Deale, MD for lunch alongside the boats.
It is a good time to buy investment property. Good time for a move-up.
Have fun this Easter. The spring season is a great time for refocusing on what you want to bring into your life, and how you want to enjoy life.
Best wishes,
Karrina
It is a good time to buy investment property. Good time for a move-up.
Have fun this Easter. The spring season is a great time for refocusing on what you want to bring into your life, and how you want to enjoy life.
Best wishes,
Karrina
Karrina Taylor Brown ReMax Allegiance: Spring Northern Virginia Real Estate Market Update...
Sunday, March 20, 2011
Karrina Taylor Brown ReMax Allegiance: Spring Northern Virginia Real Estate Market Update...: "Yes Folks: Our market is doing fine. Most of the foreclosures and short sales were taken over the winter time. The new Spring crop of ..."
March Real Estate News *Northern Virgina
Friday, March 4, 2011
Our market is hot.
*Inventory is low; it is hard to find a good home for sale.
*Buyers want to take advantage of the low interest rates.
*There are often multiple bidders for foreclosed properties.
*The bottom fishers are out in force, scooping up the discount bargain basement properties with cash.
*Meanwhile people and money is flowing into the Washington area from all over the country and from all over the world.
*We have a good job market which brings people to our good jobs from all over the country.
*The high end of the market is out in force. There have been 25 sales this year at the Turnberry Towers (That is, 25 sales of $1M+/- properties in only 2 months.)
*Locals want to buy their next property at today's prices, and then keep their own properties until prices improve.
*The rental market is strong.
*Builders have started building again.
In spite of dire economic warnings all around us, the Spring weather is bringing good prospects for Northern Virginia and DC area real estate.
** Join me at my new Alexandria home listing, open this Sunday 1-4pm ***
http://mrislistings.mris.com/Matrix/Public/Portal.aspx?k=1746191XTKBC&p=DE-134897853-956
*Inventory is low; it is hard to find a good home for sale.
*Buyers want to take advantage of the low interest rates.
*There are often multiple bidders for foreclosed properties.
*The bottom fishers are out in force, scooping up the discount bargain basement properties with cash.
*Meanwhile people and money is flowing into the Washington area from all over the country and from all over the world.
*We have a good job market which brings people to our good jobs from all over the country.
*The high end of the market is out in force. There have been 25 sales this year at the Turnberry Towers (That is, 25 sales of $1M+/- properties in only 2 months.)
*Locals want to buy their next property at today's prices, and then keep their own properties until prices improve.
*The rental market is strong.
*Builders have started building again.
In spite of dire economic warnings all around us, the Spring weather is bringing good prospects for Northern Virginia and DC area real estate.
** Join me at my new Alexandria home listing, open this Sunday 1-4pm ***
http://mrislistings.mris.com/Matrix/Public/Portal.aspx?k=1746191XTKBC&p=DE-134897853-956
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