Using Sellers Title Company Vs Buyers Choice During Short Sales – Your Washington DC Area Realtor

March 1, 2013 by

Short Sales are everywhere and with them comes anything but a short transaction.  There are many different phases of a short sale.  One of them is the seller’s bank which is the 3rd party that makes the final decision on all short sales.  Along with the seller’s bank is the title company involved in the transaction.  Which when an offer comes in before submitting that offer to the bank, a Hud-1 must be generated and submitted with the offer and the Hud-1 is generated by the title company.  There can sometimes become conflicting issues with the title company.  Because some title companies do not want to generate a Hud-1 without having the approval letter while others are not familiar with what the banks are looking for on the Hud-1 which is excluding a lot of the fees that they are not going to pay.

Listing agents who are familiar with doing short sales usually select a title company to work with in order to eliminate the confusion and a company that knows the procedure.  Now by law buyers have the right to chose their preference of title company even during short sales.  The issues that may occur and usually do is the title companies can keep getting switched up if the buyer walks and some title companies incorrectly put those fees banks do not want to pay and it becomes a hassle to the Listing Agent who is not familiar with the buyer’s choice.

To ensure a smooth transaction it would be preferred by the Listing agents to use their title company but to the buyers it’s their choice.  I would always suggest the buyer choosing a title company, asking for a rate sheet to make sure one is not charging more than the other.  If the buyer still choices their preference because by law they have that right then it also can sometimes delay the short sale process also.

If you or someone you know is looking to sell or buy in Washington DC, Maryland, or Virginia please consider The Sold Supreme Team and Damon The Agent (CEO).

Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 240-694-6460 e-mail: soldsupremeteam@gmail.com

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Should I Make A Low Ball Offer Rather Than List Price – Your Washington DC Area Realtor

February 13, 2013 by

Making a low ball offer is the normal for investors but it seems to be common among loan applicants also.  Problem is a loan cannot compete with cash so before doing so please study the subject property or else you may be wasting your time and killing trees.  Let me elaborate further on the details of both.

When houses first come on the market for a loan applicant to immediately make a low ball offer is like a sign of disrespect to the seller, some buyers wonder why they do not get a response or hear back from the seller.  It’s because most sellers who list their property at a certain price feel as though as quickly as that offer came in, another at list price will come in.  It is always better to study the history of how long the property has been on the market before making an offer.  If you are in a high demand area such as Washington, DC then if you are using a loan list price or higher should be your course of action or you maybe seriously disappointed.

When investors make low ball offers it’s usually because of the fact it’s a cash offer and the property is being bought AS-IS, can close quicker, and there are no contingencies unlike with a loan where there are contingencies that most sellers would rather by pass because it prolongs the process, loan buyers tend to want everything and the kitchen sink fixed prior to going to settlement.

The real estate professional should always educate the buyers on what’s the best course of action when making any offer, especially when the buyer is using the traditional loans, FHA, Conventional, or VA, or it could be a long, frustrating, and many times disappointing transaction.  In the past couple of months in many areas the supply of houses have been dwelling and the demand has been increasing and with this trend I strongly advise starting out at the list price at the least.

If you or someone you know is looking to sell or buy in Washington DC, Maryland, or Virginia please consider The Sold Supreme Team and Damon The Agent (CEO).

 

Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 240-694-6460 e-mail: soldsupremeteam@gmail.com

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Who Pays the Commission – Your Washington DC Area Realtor

January 31, 2013 by

In the world of Real Estate, there are numbers everywhere. From the price of the house, down payment, closing cost (which includes lender fees, title company fees, surveys, HOA & Condos) (if applicable).  There is also the commission.  Many wonder who pays the commission.  Well buyers relax because the seller usually pays the total commission but please note in some states and counties buyers maybe responsible for a portion if they are not paid their share of a full commission. Inquire locally.

In the Washington DC area the same rules apply.  The total of the commission is determine prior to listing a house on the market.  The standard rule of thumb is 6% of the purchase price.  That commission can be negotiable especially if the house is a high end property or determined by the bank on foreclosures and short sales.  In those cases the rules do not apply.  Commission has always been negotiable but how real estate agents live.  Without it we would just be working for free and we all no that we do not work for free.

Unfortunately and against the Realtor Code of Ethnics commission also plays a big role in whether or not some agents will even show a property if they feel as though they are being ripped off by being slighted their full commission.  Which is half of the total commission for example a total of 6% commission was to be split evenly so that would be 3% sellers side and 3% buyers side but over the years many agents have gradually kept 3.5% while paying out 2.5%.  This has done an injustice to many sellers because their properties have been bypassed because some agents won’t even show their property to potential buyers because of the Realtor the seller has chosen whose (in many cases is doing this unbeknown to the seller) not always necessary due to the property. In the state of Maryland in the buyer’s agency agreement there is a spot where the agent can ask the buyer for the difference.  I don’t know of anyone who does ask the buyer but it’s there.

I on the other hand will show any of my clients any and all despite the commission because it’s about the client and not about the money.  I like to put myself in my clients shoes. But money does play a factor in agents livelihood.  Again commission doesn’t come from the buyer but they originate and are paid by the seller.

If you or someone you know is looking to sell or buy in Washington DC, Maryland, or Virginia please consider The Sold Supreme Team and Damon The Agent (CEO).

Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 240-694-6460 e-mail: soldsupremeteam@gmail.com

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Earnest Money Deposit, Is it necessary? – Your Washington DC Area Realtor

January 25, 2013 by

Why do I have to put an earnest money deposit down?  Isn’t my approval letter or proof of funds good enough.  The answers are; how serious of a buyer are you or are you playing the lottery, you wanna see if you’ll win, it doesn’t work like that in Real Estate and No proof of funds ALONE doesn’t mean you are a serious buyer.

I always say if YOU want the house then it doesn’t matter because that money is going toward the house anyway. When putting earnest money down some people don’t want to be so called tied up in the contract just in case something goes wrong but what they don’t understand is history has shown that when a potential buyer does not put anything down they are more likely to walk away and that leaves the sellers empty handed.

The earnest deposit also goes toward your down payment and/or closing cost depending on the amount of the earnest deposit.  The rule of thumb is a minimum of 1% of the purchase price.  Anything higher than 1% shows that you really want the property.  Earnest deposits are necessary in today’s Real Estate transactions to separate the fakers from the want to be homemakers.

This is especially the rule of thumb with so called investors as well who will low ball with cash offers but won’t put any money down with their offers.  Remember Earnest Deposits are as necessary as the contract itself because without it you have nothing that holds the potential buyer in the meantime they could be writing offers on ten properties waiting on one to bite and leaving all of those sellers thinking they are going to settlement.

If you or someone you know is looking to sell or buy in Washington DC, Maryland, or Virginia please consider The Sold Supreme Team and Damon The Agent (CEO).

Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 240-694-6460 e-mail: soldsupremeteam@gmail.com

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Sellers Market vs. Buyers Market – Your Washington DC Area Realtor

January 22, 2013 by

Sellers Market or Buyers Market is the question, the answer is depends on the local housing market.  In the Washington DC area especially in Washington DC it’s transitioning back to a sellers market.  The inventory is getting low and the demand to move back into the city is extremely high with over 10,000 people moving in a month.  A trend that started years ago and hasn’t let up yet.  Many 20-30 year olds are moving more in the city which is causing a high demand for properties thus the continuous increase in property value.  Even during the downward trend with houses Washington DC remained at top of the entire nation and that was years ago so you can imagine how it is today.

Always with any market it’s about the supply and demand.  In a Seller’s Market it is when the demand is high and the supply is low which is seeming to be the case in Washington DC and the surrounding vicinity.  This doesn’t mean that things have finally turned to back in the mid 2000′s when prices were ridiculously overpriced multiple offers where having everything from an escalation clause to bidding $10,000 plus over list price.  This means the market is steady correcting itself.  It’s also a good sign of the economy in Washington DC because without jobs you have no money.  As the economy is, is how housing will always be because they coincide together.

In a Buyer’s Market it’s the opposite from a Seller’s.  It means the supply is high and the demand is low.  Buyers today are much more self educated than in years past with the evolution of the internet and so many websites geared to help the consumers out before beginning their start.  Buyers try to be much wiser but some buyers when using a loan tend to want to bid as if they have cash and if not properly educated by an experienced agent they can find themselves being very frustrated and even caught up in bidding wars.   Depending on the area, will determine whether it’s a Seller’s or Buyer’s market.  But currently in Washington DC it’s becoming a seller’s market so buyers beware and be careful enough to study any house of choice so that you’re not caught in a bidding war and frustrated.

If you or someone you know is looking to sell or buy in Washington DC, Maryland, or Virginia please consider The Sold Supreme Team and Damon The Agent (CEO).

 

Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 240-694-6460  e-mail: soldsupremeteam@gmail.com

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First Time Home Buyers Programs – Your Washington DC Area Realtor

January 18, 2013 by

Are there any first time home buying programs?  A question that nearly every Real Estate Agent and Realtor will be asked during there career.  The answer to that question depends on numerous factors.  Location, how much you earn annually, how many will reside in the household, your credit score, and other various factors.  Programs come and go depending on the funds that are made available until those funds are depleted.  Usually new programs are implemented yearly.

Many people are truly unaware that most of the time the programs are designed to help with down payment and closing costs that are added costs of a transaction. These programs were designed for those who income are below a certain amount set on a guideline and for household income is below a certain amount.  The programs were not designed for someone who earns a hefty amount but doesn’t want to pay the additional cost.  I had a client who had no children, it was just her and her income was $97,000/year, she wanted the program.  At that time for one person the maximum was $45,900.  These guidelines vary depending on location and needs.

Some programs are not credit score driven because they were designed to help the less fortunate.  While some may require taking a class to educate the future homeowner about the responsibilities of becoming a new homeowner.  Always looking on your state and county websites can give you an insist on what programs if any they may have.  Most lenders know about these programs before the Realtors do but an educated Realtor would also know about any and such programs as well.  Always check with both to ensure whether or not there are programs available if you qualify to participate to help with down payment and closing costs.

Also take into consideration that with programs when submitting an offer on a property some sellers do not like to wait more than 30 days and with most programs there is a 45-60 days grace period before settlement occurs.

Programs in Washington DC are HPAC.  Last known in Maryland was MyHome the funds ran out in November 2012 state is waiting for the latest programs to be released, and Virginia is Homes & Communities Assistance. Check with your local lender and Realtor for more.

If you or someone you know is looking to sell or buy in Washington DC, Maryland, or Virginia please consider The Sold Supreme Team and Damon The Agent (CEO).

 

Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 240-694-6460  e-mail: soldsupremeteam@gmail.com

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The Affects of Staging – Your Washington DC Area Realtor

January 15, 2013 by

Staging a home has always been part of the homeowner’s responsibility, but it was often as simple as keeping the grass cut and picking up dirty clothes. The seller’s agent would recommend actions if the owners were clueless about elements that turn off potential buyers. The Late-2000s recession turned real estate into a buyer’s market, wherein sellers look for any advantage to make their property stand out from the rest.

Depending on the Real Estate market locally can determine whether or not staging is cost effective or just plain effective at all.  Everything does not work for everyone, everywhere but doing something different than your neighbor can always give a homeowner an edge if there are multiple homes for sale in the same area.

When staging homeowners need to understand that it’s an array of things that occur.  Not just the traditional curb appeal, open houses, and for sale signs.  Also are the facts of de-cluttering the house, keeping the walls neutral as possible. With the growing trend of nationalities in this country, if you want to sell your house it’s a good ideal to take all of these things into consideration.  Having a pleasant smell in the air such as candles tend to give a warm and cozy feeling as potential buyers step in the house, once you get them to smile you want to add on to that with the visual of a pleasant homey atmosphere.

There are many staging companies out here to assist homeowners but if they are not in the homeowners budget I would strongly consider rearranging furniture, putting on a fresh coat of white paint, get some nice candles, clean up the curb appeal, de-clutter, and have a great Real Estate agent such as myself to increase the chances of the sale.

If you or someone you know is looking to sell or buy in Washington DC, Maryland, or Virginia please consider Damon The Agent CEO of The Sold Supreme Team, LLC of Re/Max Allegiance.

 

 

 Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

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Should YOU Rent or Should I Buy? – Your Washington DC Area Realtor

January 11, 2013 by

Should I Rent or Should I buy? Why pay someone else’s mortgage is what some say, why not rent until you find exactly what you want at the price you want is what others may say.  Truth be told is they all are correct.  There is no right or wrong answer.  Buying or renting always depends on where you are at that point in your life.

Buying has the benefits of tax purposes, monthly payment flexibility, possibly renting the house out in the future for positive cash flow or maybe renting out sections in the house while you are still there, and the feel of being a homeowner with pride which no one can take these things away.  Of course many agents would say buy, buy, buy, now, now, now but I won’t because I like to put myself in the shoes of my clients.  I say where are you at in your life.  Do you need to buy now, do you plan on staying put for at least 5-7 years, what’s your living and family situation, are you the type of person who doesn’t like change.  So many questions to which ONLY the person contemplating can answer.

Renting has it’s plus and minus as well.  Depending on whether or not a person is a position to buy, maybe doesn’t have adequate credit, doesn’t have money saved up, is indecisive in their life, going through marital issues, not sure if they want to purchase a house with the person they are with because they don’t see a future, is downsizing, likes when someone such as a landlord fixes things rather than themselves, watching the local market for a great deal or steal.  Again depending on where a person is in their life really determines whether or not a person should rent or buy.  No one can answer that for you.  Of course most lenders and agent will say BUY because of what I mentioned before but sometimes having that peace of mind is priceless.  Besides with so many people not managing their money right, going through divorces, losing their jobs, and an ever changing market it’s smart to sometimes have a plan and goal because without a goal you’re disillusioned and living in a fantasy.

If you or someone you know is looking to sell or buy in Washington DC, Maryland, or Virginia please consider Damon The Agent CEO of The Sold Supreme Team, LLC of Re/Max Allegiance.

 Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 240-694-6460  e-mail: soldsupremeteam@gmail.com

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STOP FORECLOSURE NOW – Mortgage Forgiveness Debt Relief Act (Extension) – Your Washington DC Area Realtor

January 8, 2013 by

Congress has extended the certain provisions of the Mortgage Forgiveness Debt Relief Act through the American Taxpayer Relief Act of2012 until December 31, 2013. This act benefits qualified homeowners who may have otherwise owed taxes on forgiven debt after going through a short sale. So what this basically means is that homeowners who are looking to sell their house and they know that they are upside down and that they owe more than their house is actually worth can proceed with doing a short sale and knowing the difference from the sale will be forgiven and no one is coming after them for it.

So instead of letting your house go to foreclosure because the mortgage company won’t give a loan modification, always weigh your options, sometimes starting over is the best option and there is ALWAYS an alternative to foreclosure.  Many people tend to think they have any options because many time they speak to the wrong people when in fact they do.  Did you letting a house go into foreclosure will ruin your credit (200-400 score drop plus the reputation of defaulting on a loan carries serios consequences) for the next decade, yup that’s 10 years. Compared to ONLY 3 years of having your score decreased between 80-100 points with a Short Sale. Plus with the Mortgage Forgiveness Debt Relief it’s like saying “the entire country is going through this phase and I’m an American” Short sales and foreclosure still dominant most of Washington DC area with the inventory of houses.

When it pertain to taxes with this extension answers many homeowners forever asking question.  Will they come after me for the difference?  The answer is in the title: Mortgage Forgiveness Debt Relief.  There is relief in that title.  Always consult an experienced agent/Realtor in this type of transaction because the work is tedious and attention to detail is crucial.  As an experienced Realtor I find many agents do not comprehend the slightest understanding of a short sale transaction and knowing is half the battle.  Other wise the transaction can be long, frustrating, and fail.

Homeowners will continue to receive their 1099-C forms (Cancellation of Debt Form). Please keep in mind that homeowners should always consult their tax advisor so they can evaluate their personal situation and understand their tax payments.

If you or someone you know is looking to sell or buy in Washington DC, Maryland, or Virginia please consider Damon The Agent CEO of The Sold Supreme Team, LLC of Re/Max Allegiance.

 Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 240-694-6460  e-mail: soldsupremeteam@gmail.com

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Washington DC Housing Market Outlook for 2013 – Your Washington DC Area Realtor

January 4, 2013 by

I really don’t mind well baby it’s cold outside is what maybe the weather but entering 2013 will sure turn to lukewarm to eventually even mild warm.  Will it turn in HOT will ultimately depend on the economy because they coincide with each other.  Remember Real Estate is ALWAYS local. So being cold in one area doesn’t mean another and vice versa with being warm.  Now looking at the housing trend in this local area.  Let’s look at the trend.

Washington DC has been the dominant area with prices steadily rising, investors steadily buying older homes only to convert them to renovated homes laters.  This trend has made Washington DC a primary area due to lower crime rates and new development all over the city.  Once Washington DC was the Murder Capitol of the world.  Now it’s the beautiful Nation’s Capitol.

Right across the bridge south in Virginia is the trend of Northern Virginia being very competitive in prices as Washington DC with value also increasing.  Depending if it’s north or south of the Springfield mixing bowl would determine what increase if any at all was established during 2012.  Northern Virginia however is up and coming with all of the new developments as well especially in the vicinity of the Pentagon area.

Heading north over in Maryland the price differential can vary depending on which county you are looking in.  Prince George’s county trend is totally different from Montgomery County and all the other local counties Charles, Ann Arundel, and Howard can have your head spinning if you try comparing one property from one county to another.

Moving forward during this year is sure to bring sellers an increase in value depending on location and buyers a sense of urgency with buying because multiple offers will continue to be the trend as was 2012.  Some things just gets better with time and things are looking up entering 2013.  If you or someone you know is looking to sell or buy in Washington DC, Maryland, or Virginia please consider Damon The Agent CEO of The Sold Supreme Team, LLC of Re/Max Allegiance.

 

 

 Damon J. Brockenberry (Damon The Agent)

Your Washington DC Area Realtor

Servicing Washington, DC, Maryland, & Virginia

cell: 240-694-6460  e-mail: soldsupremeteam@gmail.com

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