Real Estate Information Archive

Prince George’s County Maryland has always been a great place to realize your American Dream, and the Prince George’s County Commissions are doing their part to make that dream a reality for more and more Americans. In an effort to combat two issues that the current housing crisis has cause;  Homebuyers not having enough money to qualify for a home, and the abundance of homes that have been foreclosed on that seem to be littering communities all over the County, a down payment assistance program has been developed for the purchase of Bank-owned properties.

The program offers down payment and closing cost assistance to purchase a vacant foreclosed home. Eligible homebuyers must be either first time homebuyers or cannot have owned a home in the previous three years.

There is an income requirement:

Applicants for DPCCA must have gross annual household incomes at or below 120% of the area median, adjusted for family size.  An income chart is provided below.

Effective Date : 4/27/2009
Median Family Income : 103,100.00 USD

Required Cash
50% or Below : 1,000.00 USD
60% -80% : 1,500.00 USD
%80 - %120 : 2,000.00 USD

This loan is a deferred payment, 0% interest. It must be your primary residence for at least 10 years, and you do not have to repay the loan if you stay in the home for 10 years or longer.

This program will provide down payment and closing cost assistance loans for purchases of vacant foreclosed properties in eligible zip-codes in Prince George’s County. The down payment and closing costs assistance will be higher for purchases in Target Areas or for Workforce Housing.

20607, 20608, 20705, 20710, 20715, 20716, 20720,20721, 20613, 20722, 20743, 20623, 20735, 20740, 20747, 20744, 20769, 20770, 20781, 20782, 20783, 20784, 20785, 20706, 20707, 20708, 20712, 20745, 20737, 20746, 20748, 20772, 20774.

Of the 33 zip codes above the following are considered Target Zip Codes:

20716, 20743, 20747, 20744, 20783, 20785, 20706, 20708, 20746, 20748, 20772, 20774

For more information on qualifying for this program, call DeHanas Real Estate Services at 301-870-1717 or 301-638-3443.

Good news for First time home buyers in Charles County, Maryland. Help has arrived in the form of a Settlement Expense Loan Program (DSELP).

The Charles County DSELP program has raised their limits so that more first time buyers are able to qualify..  You can now qualify if you make the following

 Family size              INCOME

1                                56,000

2                                64,000

3                                72,000

4                                80,000

5                                86,375

6                                92,800

This program is great for first time home buyers, that need help with there  3.5% FHA down payment. 

The Housing Authority administers the Settlement Expense Loan Program (SELP) for Charles County. The Program is sponsored by the Housing Commission of Charles County, with the support of the Charles County Commissioners. This Program provides direct financial assistance up to $6,000 to qualified low-and moderate income, first time home buyers, with settlement expenses associated with a home purchase in Charles County.

For more details and to see if you qualify, E-mail or call Leisa Brown with Bank of America Home Mortgage at 240-216-6261.

The real estate market outlook, based on results for the month of July 2009, continues to show signs of improvement in several areas, compared to last month as well as this time last year.  There were 103 homes sold in Charles County during the month of July compared to only 121 homes sold in June, which represents the only statistic moving in a negative direction. As a result the current overall inventory supply stands at 12.5 months. On a great note, pending sales are up over 50% compared to this time last year.

While home prices continued to decline, the rate of decline lessened to 9.02% over a year ago compared to a decline of nearly 17% in June. With the demand of lower priced homes on the rise, we saw the median price jump $10,000 to $275,000 over June, but still down over 8% from last year. One of the reasons for this strengthening is because the banks are becoming more rigid in the negotiations of offers for Bank-owned and short sale properties. They are not as quick to drop prices as they once were.  Although the Bank-owned inventory remains high, the lower priced homes appear to show strong signs of meeting the “bottom”.  Homes priced over the median price range are still feeling a “price squeeze” and we are continuing to see falling prices as a result.

As for properties in Foreclosure, Realtytrac.com reported 110 new properties in default for the month of July in Charles County. The rate of new defaults continues to out-pace the total monthly rate of sale, which is an ongoing trend. The total number of properties in Charles County that are in some state of foreclosure (including Bank-owned) has risen to 954 properties, compared to just 887 during the month of June.  The number of properties in a state of Foreclosure continues to rise, and all these numbers are not reflected in the MRIS Trends Report because the majority of these homes are not currently being actively sold at this time.  Also noteworthy are Realtytrac.com statistics showing a National increase of foreclosed properties increasing more than 9% over the previous 6 months.

Speaking of “Foreclosure”, as a Certified Distressed Property Expert (CDPE), my first responsibility to clients who are facing foreclosure is to council them on how to keep their home.  First and foremost a homeowner in this situation must keep communications with their bank open.  While the majority of my “distressed property” clients have not had much success with getting their mortgage companies to provide the needed modifications, it is certainly worth trying. Because of the outlook of the current housing market, and homes in default outpacing sales, many of the homeowners who choose to proceed with a short sale will undoubtedly still find themselves in Foreclosure.

Recently I sent out information to my clients asking them to contact their Congressmen and Senators to support the bill that provides every home buyer with a $15,000 tax credit.  You can go to www.Congress.org to find out who your local representative is. Please call in your support for this bill. It will go a long way towards the recovery of the housing market, and may very well turn falling home prices around over night, saving many homeowners from going to Foreclosure.

On a final note, the month of August is looking very strong. While this month is typically one of the slowest months of the year, we have seen increased buyer activity in all price points. Rental activity also continues to remain strong. 

If you know of anyone looking for a career in real estate, now is the time to begin one.  DeHanas Real Estate is looking for high quality people to help our clients buy, sell and rent homes.  A number of new systems we have recently instituted within our organization are producing a large volume of business.  In the past, we have found some of our best agents are former clients.  Please call us to discuss the opportunity at 301-870-1717.

Now here’s some news we can really get excited about!  Did you know every time a home is sold it generates an average of $63,000 of cash flow into the economy within the first year. It includes money spent on home décor, landscaping and lawn care, mortgage, title and real estate companies. So, why don’t we do for the real estate industry what has recently been proven successful to the auto industry.

There is a new $900 billion stimulus plan working in Congress.  One amendment, which is now a part of the proposed stimulus plan, includes a $15,000 tax credit for purchasing a home.  Georgia Senator, Johnny Isakson, is the main sponsor of this bill.

Specifically, Isakson’s amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislations enactment, and the tax credit would not have to be repaid.

The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase.

Another provision in this bill addresses the current tax credit now in place for first time home purchasers. The bill will forgive repayment of the current tax credit.

Although nothing has been passed officially into law yet, here are a few of the key items of interest related to real estate in the stimulus bill:

• The $15,000 tax credit can be taken over one year or spread over two years.
• The $15,000 tax credit doesn’t have to be repaid.
• The $15,000 tax credit will apply for anyone who buys a home - not just first time home buyers.
• The $15,000 tax credit is a credit - not a deduction: meaning you will get the full $15,000.
• The $15,000 tax credit is the lesser of $15,000 or 10% of the purchase price of the home.
• The $15,000 tax credit will be allowed for homes that are bought within one year of if and when the bill is passed.

I am highly encouraging everyone I know to pick up the phone and call their Senator or Congressman.  It is very easy to get contact information. Go to www.Congress.org and enter your home’s zip code.  Then CALL your Senators and Congressmen and tell then you want them to support the proposed $15,000 tax credit for all home purchasers.

The real estate market outlook based on results for the month of May, 2009 comes with some renewed optimism, as we begin to see a trend of “units sold” over last year, reach a rate of 12.26% higher. There were 119 homes sold in Charles County during the month of May compared to only 106 homes sold this time last year. There is currently an overall inventory supply of 10.4 months based on the current level of active homes for sale. Be careful not to rely on this inventory statistic as it has a “false bottom” of sorts.  There is an increasing amount of Bank-owned property that is not currently on the market, and as a result, not reflected in the MRIS Trends Report.

The pick-up in home sales, as discussed in the previous paragraph, is likely due to a continued decrease in home prices. The year over year average sold price is down 11.3% in May, and the average list to sell ratio has dropped to 90.94%, meaning that a home listed for $400,000 sold for $361,600 based on the statistics in the May Trend Report distributed by the Metropolitan Regional Information System.

As for properties in Foreclosure, Realtytrac.com reported 118 new properties in default for the month of May in Charles County, which shows a downward trend based on the 246 we saw during the month of April.  As of June 15, 2009 Realtytrac.com reported 58 new defaults in Charles County.  The bad news in all of this is that because of the  low number of available buyers, the total number of properties in Charles County that are in some state of Foreclosure (including Bank-owned) has risen to 849 properties, compared to just 777 during the month of April.  Again, not all these numbers are reflected in the MRIS Trends Report because the majority of these homes are not currently being actively sold at this time.

Back in March, I reported to you that the $5.1 Million dollars allocated to Charles and St Mary’s Counties would soon be disbursed to assist the ailing housing market on a local level.  The commissioners have still not released these funds.  I urge all home owners to contact their County Commissioner and urge them to approve a plan that will aid us in the recovery of our housing market.

You may have also heard that HUD was in the process of approving the $8,000 tax credit to be used as down payment assistance.  In a recent letter, The Secretary of HUD, Shaun Donovan, has decided against this proposal, and not allowing mortgage lenders to use the tax credit as down payment assistance.  He cites the need for buyers to meet minimum standards in the loan process, and the need for “real equity” in the transaction.  A complete copy of this letter is available on my blog at www.waldorfhomesolutions.com.

My next campaign is against the Charles County Commissioners Property Tax increase to begin July 1, 2009 for the fiscal year 2010.  The Commissioners have increased the rates from $0.968 per $100 assessed value to $1.026 per $100 assessed value.  This rate increase could not come at a worse time for Charles County homeowners and buyers.  A petition has been generated, and is being circulated by Southern Maryland real estate agents, in an attempt to have enough signatures for the general public to approve or reject the new tax rate at the next general election.  If you are interested in circulating this petition around your neighborhood, please contact me in my office at 301-870-1717 x106 or request  a petition via e-mail at don@DeHanas.com.

While some news sources are reporting an increase in consumer optimism for the Washington DC region, the recent publication of housing statistics remains grim.  During the first quarter, home values in Charles County had dropped into the single digits of decline, indicating signs that we were approaching a flattening of home values, but a huge spike in April’s statistics pushed the decline back into double digits.  Year-to-date median prices fell from – 8.6% over last year to – 12.1% as we saw a 20% decline of median sale prices during the month of April over last years data.

While there were 145 contracts written last month in Charles County, only 59% of them, or 86, actually settled.  Arguably, there are some longer-term contracts which will offset future statistics in this area, however, you should note that there is a percentage of contracts that never make it to settlement.  While the level of inventory remained consistent to the previous month, the fewer amount of sold properties increased the overall supply of inventory vs. demand ratio, which currently represents 14.3 months of inventory supply, up from 13 months supply during March.  Further indications are that the inventory supply continues to rise ahead of demand by about 1% per month.   There is a steady flow of Bank-owned inventory as well as preforeclosures hitting the market.  According to Realtytrac, there are currently 256 homes in Charles County in preforeclosure status.  During the month of April another 144 homes in the county went into default.

Another noteworthy statistic is the average sales price as a percentage of the average list price, which currently sits at 87.3%.  This percentage remains comparable to the previous month. For prospective purposes, a home is listed at $400,000. Market statistics tell us that a buyer will end up paying $349,200, which is 12.7% below the original list price.

Many buyer programs are still available, including the $8,000 tax credit for first time home buyers, and loan programs such as a rural development loan.  Many of my sellers will notice that we have begun advertising some of our homes with “100% Financing Available”. Any of our properties that qualify for the rural development loan have this banner in our ads. 

Details were expected last month from the Charles County Commissioners on the money allocated to Charles County from the Governments Housing Relief Program.  The Southern Maryland Board of Realtors is contacting the Commissioners weekly for updates, and have been told that the commissioners are still ironing out details of the program, and are making changes to it.  Currently there is no estimated time for which this program will be in effect.  The $5.1 million allocated to Charles and St Mary’s Counties is expected to assist buyers with closing help and offer incentives to purchase Bank-owned homes.

As a real estate professional, I have found that educating the public is a large part of my business. You may remember the catch-phrase used by The Men’s Warehouse clothing company; “Our best customer is an educated customer.” No truer words have been spoken when it comes to selling residential real estate. When I work with a buyer or seller who is aware of the market conditions, and understands the value of ‘doing things right from the beginning’, there tends to be a much smoother, and gratifying experience for all involved.

So why is it that some homes sit on the market and never sell (and current statistics indicate that 41% of the homes on the market in Southern Maryland will not sell), while others sell in a relatively short period of time? Two reasons; “sellability” and “Pricing”. When you make improvements to a home, like replacing the carpeting, freshening up the paint and sprucing up the landscaping, you are adding to the sellability, not to be confused with “Value”. The afore mentioned improvements do not create value. The second reason is “price”, and the biggest reason homes do not sell.

There is a common misconception about the difference between a Comparative Market Analysis, commonly known as a CMA, usually prepared by a licensed real estate agent, and an appraisal, which must be compiled by a licensed appraiser. Unfortunately, sellers will often times confuse market value with market price, which prompts unrealistic expectations of what their home will sell for.

Keeping in mind that ‘a home is worth only what a buyer is willing to pay for it’, it stands to reason that when supply outweighs demand there is more to chose from, putting pressure on pricing, and thus creating a buyers market. Maryland real estate cannot be lumped, as a whole, into one category.  There are parts of it that are experiencing significant price pressure, while other areas, like Southern Maryland are seeing flat to only slightly negative appreciation.

The secret to pricing a home that will sell (here is the real tell-all) is to price it 2%-5% in front of the market comparisons in the direction of the trend.  In an up trending market, you would price a home higher than the last home sold for, while in a down trending market, a home should be priced slightly lower that the last group of comparisons sold for.  In Charles County, for example, recent home-sale statistics show the average ‘sold’ price was –1.44% over homes sold a year ago. If you want to sell your home under the current conditions, you would price it about 2% below the CMA recommended price for your property.

Often I will hear a seller say that “it appraised for more”…….And here is the reason for confusion; there are a number of reasons a seller will get an appraisal. It could be for a home equity line, a refi, a bridge loan, or an appraisal of resale. Each of these appraisals is compiled for different reasons, and is merely supporting documentation that is required by the bank to justify the loan they have made to the homeowner. It is not uncommon at all for three different appraisals to have three different values. Also, the typical comparison appraisal only uses 3 comparables, while a CMA generated by a real estate agent uses all of the comparables within the neighborhood, providing a larger picture of the market trend. Also, the information in a CMA and an appraisal is only good for 30 days. Don’t rely on the pricing opinion you received 3 months earlier, as it will have changed.

SEARCH FOR HOMES

I am pleased to announce that the Maryland Association of REALTORS® (MAR) launched an initiative on Tuesday, November 28th known as the League of Maryland Homeowners (LMH). LMH will give homeowners and aspiring homeowners a voice in Annapolis and build an online movement for housing affordability along with the efforts of our Realtor® members.

  The goal of the League of Maryland Homeowners is to give homeowners a voice in the public discussion about how to address the challenge of keeping housing affordable. LMH will provide information to the public and tools to help them communicate with elected representatives at the State and local levels about housing affordability policies.

Signing up with the LMH is easy.  Go to http://www.leagueofmarylandhomeowners.org and follow the prompts. Once you sign up, you will receive emails from the League with information about housing affordability issues, or asking you to take action such as writing or phoning your elected representatives about issues. This website communications tool is similar to a version of the Legislative Action Center that the Maryland Association of Realtors uses.

This effort is an opportunity to create a grassroots coalition of advocates for housing affordability issues across party lines among the general public. I encourage you to visit and explore the LMH web site and to help to spread the word to family and friends.  I believe it will be productive for both REALTORS® and the public.

SEARCH FOR HOMES

With more listings coming on the market than there are buyers, it is time to get serious about competing in a buyers market.  Over the last several years, anyone who wanted to sell a house just needed to put a “For Sale” sign in their front yard, and buyers would come in droves.  What a change of events during 2006. So, what can a home seller do to get their home sold for the most money in the least amount of time?  Here are a few tips:

1. Get your home in tip-top shape.  Some of the small tasks can go a long way to getting your home noticed. Start on the outside of your home.  Take a look at the curb appeal from a different perspective. Do you need a fresh coat of paint, do windows need rescreening, could you use new shrubs or mulch? All of these items are low cost fixes that will dramatically improve the look of your home.

1. Clean & declutter.  You will be amazed at how many home sellers don’t do the basic household chores.  This is one step that, if you do it, will give you a major leg up on the competition. Remember to clean ceiling fans and vents, and get rid of piles of paper and old magazines. The fewer knick-knacks you have around the better your home will show.  If you need a fresh coat of paint, do it. If you know you need new carpeting, do it.  Offering a decorating allowance does not cut it. Most buyers cannot look past the work that needs to be done. Also remember to organize cupboards and closets.  Buyers will look inside all of them.  Your going to have to get organized before you move, you may as well do it before you have showings. Click here for a list of 25 Easy Fix-Ups.

1. Hire a great real estate agent.  The market has been flooded with new agents over the past several years, most of them looking to make a quick buck, and offering very little service.  Before you hire a real estate agent there are a number of essential question you should ask. Make sure you are in the best possible position from the beginning.  A good agent is going to know how to price your home right the first time.

1. Be open to offering buyer incentives. In a buyers market, a seller will most likely be looking at offers with terms that favor the buyer. You will most likely offer closing assistance, up to 5% of the contract price. You will more than likely need to be flexible with the settlement date. Expect the buyer to have a home inspection, or have a home sale contingency.

1. Be open to offering agent incentives.  If you are not getting showings on your home, you will probably resolve the problem by offering agent incentives, ie higher commission and/or a selling bonus.  When you are looking at comparative properties that have sold in your home, take note of any agent incentives. This is an area in which many home sellers don’t realize they are competing for agents to bring buyers. With so much inventory on the market, it is easy for a prospective listing to go unnoticed. Do something to get their attention.

SEARCH FOR HOMES

The real estate trends for the region, while slower than in 2005 are still showing positive growth signs.  I will break down the trends by county so that my readers can have more of a localized perspective. This information has been obtained by the Metropolitan Regional Information Systems, MLS.

Charles County Maryland

While the month of September produced a whopping 1328 listings on the market, only 203 of them went under contract, down 18.28% to 2005.. The largest percentage of listings fell between the $350,000 and $599,000 price range. However, good news for Charles County  home sellers, the average sales price did go up by almost 5%. Also note the average days on market has doubled over last year.

Calvert County Maryland

Similar to Charles County, Calvert County saw a small increase in sold price, but a dramatic drop in home sale transactions from 2005 sitting at -31.34%.  September's total of listings chimed in at 922, with only 10% of the market inventory selling.

St Mary's County Maryland

                                                                    2006                     2005             

St Mary's County fared the best in the Southern Maryland region, with only a 15% decline in the number of homes sold over the previous year.  In addition, St Mary's homes sold, on average, at 7.55%, posting higher gains than Charles County, Calvert County and Prince Georges County.

Prince Georges County Maryland

                                                                         2006                     2005             

With more than $300 million in total home sale volume, Prince Georges County still suffered a 28.8% decline in units sold during the month of September, over September of 2005. Prices did increase a modest 6.47%, but nowhere in Southern Maryland did the average home owner get more than their average list price, an indication that home sellers are having to negociate more than they did a year ago.

SEARCH FOR HOMES