Recently, I received a call from one of our clients who purchased a home two years ago.  He wanted to know why he was unable to refinance the current mortgage on his home.

After taking a look at recent sales in his neighborhood, the answer was crystal clear.  There had been some properties in his community that were sold as foreclosures.

So, how do foreclosures affect your home's value?  Well, it is important to know that when a home is foreclosed on, the bank has taken back the home and the people who owned the house were forced to move out - so the bank now owns the home.  Obviously banks do not want to own homes - they want to make money on the interest charged on the mortgages that come from homeownership, so they want to sell these properties quickly.

Often times, this means that the house will be sold at a price much lower than it would typically be sold if a person owned the home and had to pay off his mortgage from the proceeds of the sale.

Every time that a home is sold for a low price, it lowers the appraised value of all of the similar type properties immediately surrounding it.

In a nutshell, foreclosures lower fair market value making it hard for people to sell their homes at fair prices and making it hard for people to refinance their homes as well.

If you know someone who is having difficulty making his mortgage payments, help him avoid foreclosure by telling him about our "We Care" program.  Jesse is a Certified Distressed Property Expert and is qualified to help those people who are having trouble in these difficult times.

Wishing you sunshine everyday and the home of your dreams,
Jeri

I'm about to let the cat out of the bag.  Here's the answer to selling in a buyer's market - understanding that it's a Price War and a Beauty Contest!

There it is.  It's really that simple.  Your house must show beautifully and be priced the lowest in your neighborhood.

Now, I know what you're asking.  If it's that simple, why are houses languishing on the market?  There are really only two possible answers to this question.

1.  The house is priced too high for its condition and/or location.  This typically happens when a seller anticipates that a buyer will offer a low price for his home, so instead of pricing it at fair market value, he over compensates by building Wiggle Room into his list price.

2.  The house does not show well.  When preparing your house to be put on the market, your goal should be to make it look like a new home builder's model home.  However, some sellers decide that they don't want to invest any time or money into improving the home.  They just want to put it on the market and sell it.  The problem here is that there are a lot of homes available for buyers to consider and if your home doesn't show beautifully, the odds are that there is another home in the neighborhood or community that does - and they'll buy that one instead.

So there it is - the big secret to selling your home in this market.

If you're thinking about selling you home, get to receive a FREE copy of our brochure, Pricing & Preparing Your Home to Sell for Top Dollar.

Having a hard time making your mortgage payments and wondering what to do?  Find out what to do and how we may be able to help you through our We Care program.

Wishing you sunshine everyday and the home of your dreams,
Jeri

Jesse and I along with Sharon Clatterbuck, Mortgage Specialist with SunTrust Mortgage, present Free Homebuying Seminars for those people thinking about buying a home.  We cover every step in the process from getting pre-approved for a loan to settlement day.

Over the past several months that we've been offering the seminars, we have met some wonderful folks, many of whom have done quite a bit of homework about the process because they ask very thoughtful questions.

Last week's seminar was particularly enjoyable because we had a really nice group of people who wanted some very specific information - beyond what we normally see in a seminar.  It's great knowing that despite the doom and gloom news in the media, some first-time homebuyers are really taking the home buying process seriously and intend to take advantage of the unprecedented deals out there right now.

In fact, homes priced within a typical first-time homebuyer's price range are flying off the market.  The $8,000 tax credit incentive has truly gotten a lot of people into the home buying market and out of the rental rat race.

If you are thinking about buying a home, we strongly encourage you to take one hour of your time and come to one of our seminars.  We promise to make it really worth your time.

Our next seminar is scheduled for July 8th, 7:00-8:00 p.m., at the SunTrust Mays Chapel Bank Branch.  SunTrust Mays Chapel Branch Manager Cheryl Schaeffer and Assistant Branch Manager Cheryl Davis kindly host the event and you can leave the seminar with a pre-approval letter in hand so that you can confidently go house hunting.  CLICK HERE to reserve a seat.

Looking for a great deal?  Check out our weekly updated BEST BUYS!

Want to know what area homes are selling for and how much money sellers are contributing toward closing costs?  Take a look at our daily updated NEIGHBORHOOD UPDATES.

Wishing you sunshine everyday and the home of your dreams,
Jeri

More good news for first-time homebuyers was announced this week by National Association of Realtors® (NAR) President, Charles McMillan.  According to McMillan, “HUD Secretary Shaun Donovan announced… plans to allow consumers to monetize the first-time homebuyer tax credit and apply it to the purchase of a home.”

If these plans are approved, it would make a significant difference in the first-time homebuyer sector of the real estate market.  By supplementing a down payment, helping to pay for closing costs, or buying down an interest rate, a monetized tax credit could make the difference between a person being able to take advantage of the opportunities available in this market and becoming a homeowner, or having to continue to rent.

In McMillan’s June 2^nd podcast, he stated that, “We have heard from mortgage industry lenders that this type of product may not be immediately available to consumers, as lenders need time to create the appropriate documentation.”  However, ten states currently offer programs that would qualify for the monetized credit option.  Maryland is not among them.

Hopefully, the Maryland Association of Realtors® will work diligently with our state’s finance agency to implement a similar program here.

In the meantime, if you are thinking about buying a home, we cordially invite you to attend our Home Buying Seminar
Ten Easy Steps to Buying a Home, to be held on
Wednesday, June 10^th, 7:00-8:00 p.m.
at the SunTrust Bank, Mays Chapel Branch.
Just CLICK HERE to reserve your seat.

Looking for a great deal in this market?  Check out our BEST BUYS!

Wishing you sunshine everyday and the home of your dreams,
Jeri