Across the nation potential homebuyers have sat on the sidelines in fear or waiting for home prices to drop more. And in many real estate markets I get that. Prices have been dropping, and jobs remain a concern for some people. Those are issues not to be ignored. However, there are several issues I take with sideline sitters. Read the rest of this entry »
Here are my ten predictions for 2012. Some of these are mortgage/real estate related, and some are not. Some are serious, and some are not; and some are just wishful thinking. You figure out if you can tell which are real. By the end of 2012 we will have seen:
.Median cost of a home in the U.S. will be down from 2011, by 4%.
.Median cost of a home in Washington DC: up slightly, by 1%.
.Stock market: down over 20% from 2011. Read the rest of this entry »
Do you think real estate prices are on a straight line down? Wrong. Remember when everybody thought real estate prices were on a straight line up? Wrong! Real estate prices are up and down, and all-around. They are up in some places, down in others, and up and down in others. And of course real estate is very local, down to the state, county, community and sometimes even down to the street. You really have to dig down into the details to find out the true value of a house. Read the rest of this entry »
Looking at the above maps of foreclosures in California, Maryland/Washington, DC and Virginia (these are the states I operate in) is interesting. Read the rest of this entry »
Why does it seem that almost all real estate starts out at an unrealistic price point to some degree, whether it is a little over priced like 2% or 3%, or a lot overpriced by 10% or 20%? Read the rest of this entry »
When is a 2 unit a 2 unit? A 2 unit home, sometimes referred to as a duplex, is a home where there is a rental unit, usually in the basement. Over the years I have seen much confusion surrounding what officially defines a home as a 2 unit. I can tell you that an appraiser, banks and Fannie Mae (all the people that count when you need mortgage financing) will be looking for the following: Read the rest of this entry »
If someone told you that the first level of your home was an unfinished basement, and did not count towards the livable square footage of your home, would you be upset? It would be as if someone arbitrarily erased part of your home, and made it smaller than it really was! This is a really important story Read the rest of this entry »
Does anyone know how Realtors really get paid? I know people love to complain about Realtors and how they "get 6%" of the sales price, but that is not the whole story. It's barely any of the story. I love to beat up on any industry with grossly overpaid and inefficient workers as much as the next person, but only if it is merited. Read the rest of this entry »
Alexandria Virginia was hoping that Verizon would bring its high speed internet and video service called "Fios" to the area, and Verizon chose not to. Now Alexandria Virginia is hoping to be a test site for a new high-speed internet service being developed by Google. And anyone that owns real estate in Alexandria should hope this happens! Read the rest of this entry »
What affects real estate prices? Perception. The macro-economy. The city. The neighborhood. The street. The curb appeal. The house. The square footage. The bedroom count. The view. The neighbors. The local economy. The condition of the house. Local zoning issues, if any. Access to transportation. Marketing. Government. Tax breaks. Interest rates. Rents. The weather. The landscaping. The Realtors involved. The sellers. The buyers. Emotion. Local income patterns. Local employment. Competition. Supply. Demand. Chocolate chip cookies…and more?
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