Rent to Own Option Should I or Shouldn’t I – Your DC, MD, & VA Realtor

April 25, 2012 By

This question is often asked many times and usually by people who have less than perfect credit or are in transition and are unsure of what they want to do but still want the atmosphere of home ownership.   Rent to Own, how many people do you really know that have done this or is doing this now.  Very few these days.  Unlike years ago in today’s market with negative equity and many homeowners not gaining a profit, many either just rent or flat out sell their property without waiting to see how things are at the end of the lease term.

It is very important that whatever the renters intentions are that it is established upfront.  Many sellers rent their property out for a cashflow and do not have the intention of selling it but if they do, they give the tenants the first right of refusal if they do not wish to buy.  Rent is also usually higher with rent to own option than standard rent (ex; $1,000 maybe $1,250+) with the difference going towards a down payment at the end of the lease term.  Also in most rent to own options if the tenant is late 3 or more times the difference that is usually used towards the down payment is void and the renter does not get that back.  Also what the house would sell for has been a debate because if the renter goes into a property they usually want to buy if when it was at it’s lowest and in any market it could be at the beginning of the lease term or the end.  While sellers want to sell at it’s highest value.  These have been issues in the past and ALWAYS need to be established upfront.

And because of these usually when renters put themselves in a position to buy very few usually end up buying the property they are renting because they see that they have many other options once they get approved for a home loan.  Don’t get me wrong some renters do buy if they are content, comfortable, depending on location, neighbors, etc but truthfully many usually buy something else that’s usually bigger or cheaper than they paid rent.

 

Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 202-618-1382  e-mail: sold@damontheagent.com

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Ready, Set, Go….It’s Buying Season – Your Washington DC Area Realtor

March 26, 2012 By

Birds are chirping, flowers are blooming, and marathons are lining up everywhere. Ever wonder the part of year when buyers take off as if they are in a marathon? When spring hits and the temperatures rise and in our area when the Cherry Blossoms bloom are the signs that multiple offers will be on the table again.  Due to record foreclosures and short sale prices housing prices are at a all time low which creates affordability for many people who are looking to buy.  Preparation is the key to a successful transaction whether you’re on the sellers side or the buyers side.

 

For sellers, no matter if it’s a short sale or regular sale you want to attract as many buyers as possible and with a few simple things such as eliminating clutter, boxes, and extra items in the house you give your house a more visual for buyers to talk about the house rather than the clutter they see.  Once buyers get off track sometimes they don’t even focus on the house.  Curb appeal along with having the house accessible gives more traffic to a house and with more traffic comes a very high possibility of an offer.

For buyers, going to view houses without being pre-approved is so OLD SCHOOL, in today’s market pre-approval saves time and money.  It’s the reason some agents don’t answer their phone talking to someone who hasn’t been approved to purchase because they want to view the house first.  Within the last 5 years the lending process has changed drastically and their are numerous factors that can hault a potential buyer from purchasing.  Taxes are a big one, lenders today want to a 4506t done upfront and to review taxes to make sure that the deduction on the taxes doesn’t count against a buyer.  Also in a spring market if a buyer hasn’t been pre-approved and they see the house they want, by the time they get approved the house is usually gone.   Always check with a local lender or get a referral from your agent.

Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 202-618-1382  e-mail: sold@damontheagent.com

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How much closing help to ask for on Short Sales & Why – Your DC, MD, & VA Realtor

January 16, 2012 By

With so many short sale and foreclosures dominating the housing market it’s definitely a buyer’s market.  One of the misconception with short sales is how much closing help they can try to ask for.  At one point and time 6% was the normal without a doubt but today 6% is history especially with banks.  In today’s real estate market how a contract comes over to the listing agents shows the listing agent several things one is either how much knowledge the buyer’s agent has or if upon the request of the buyer how out of the loop they are if they have been educated by their agent.

Things have surely change and are changing every month so to hear someone say “when I bought my home” which was probably before 2008 is usually totally out of the loop because those rules from then don’t apply TODAY.  With short sales it’s very tricky if you’re not kept up to date with the process or how the banks are always changing their guidelines.  One of the major thing with banks is the maximum amount allowed for closing cost help is 3%.  You have very few exceptions but on September 30th 2010 they passed this rule.  But for many agents they either are out of the loop themselves or they say “let’s see if the banks gonna bend”.

For a buyer who keeps losing bids on short sales when there are other offers it’s probably because what they fail to realize is, if another offer comes in asking for the 3% and the buyer is asking for anything more the bank and agent are not even going to consider that offer.  For this very reason, it shows either the buyer is unrealistic or too demanding or the buyer’s agent is inexperienced which sometimes both are the case.   Choosing the right Realtor can be key.  Remember in today’s Real Estate market 3% is the maximum allowed for closing cost assistance, don’t waste time or paper asking for more and then wonder why you didn’t get that home when you offered slightly more than the other offer.

 

Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 202-618-1382  e-mail: sold@damontheagent.com

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Tis The Season To Buy & Sell Real Estate – Your Washington DC Area Realtor

December 21, 2011 By

Christmas is in the air, the sales are everywhere from smartphones to new cars but one of the best sales are homes.  Yes homes are on sale as well.  Prices have been dropping for the longest time and this is the season when people find deals or steals but wait if you’re trying to sell your home this is still the best time to put it on the market because right after the New Year people begin searching again hoping not to get caught up in the spring craze.  From March through September is buying season in Real Estate but the smart buyers are looking during the Fall and winter months because there is less competition and they can grab a bargain like NOW.

In Washington DC the market is still great.  Where the houses are more traditional sales than short sales.  There are two types of buyers in DC, the investors who are snatching up any fixer upper and then turning around to renovate the property and then there are the buyers who are buying the renovated properties because they want something updated, new, and nice.  In Maryland, where there are more short sales and foreclosures, the market have prices at a all time low.  Many great deals only thing is with the short sales if the agents don’t communicate well it could be a lengthy process.  In Virginia which is right behind DC with traditional sales is doing well mainly in Northern Virginia such as Arlington, Alexandria, Fall Church and some parts of Fairfax.

While people are out there buying every electronic gift that’s on sale like a smartphone, iPad, Xbox 360 connect, etc, they should stop by that Open House or visit the house they keep seeing as they drive by.  If they are considering selling their house, call that agent NOW to list (or just call me).  When 2012 comes around and you hear about people getting a great deal on a house BEFORE the spring remember you have to be in it in order to win it.

 

 

Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 202-618-1382  e-mail: sold@damontheagent.com

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