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Nellie’s Notes LAST JANUARY -- I wrote optimistically that the market looked solid for 2007, only to watch the mortgage industry implode as the loan scams they allowed failed. THIS YEAR -- I'm a bit afriad to be optimistic, although the signs of improvement are there. many of us have had more calls in the first weeks of January than we had during the last quarter of 2007, and on January 14 the National Association of REALTORS' economist claimed that Baltimore's real estate market had hit the bottom adn would improve during 2008. Certainly, there's an energy in my office that was lacking. REGARDLESS OF FORECASTS -- this really is a great tim to buy. Interest rates for loans up to $417,000 dropped below 6% in early January, and we expect them to stay there until at least mid-March. Although the inventory on the multiple listings (which is primarily resale properties bu includes some new homes) has decreased from 2000 to 1500, buyers still have a number of choices of well-priced homes in good condition. KEY FOR BUYERS -- is choosing a decent lender. Even the major banks are not performing well in their application process. If you are planning to buy, please call me at 410-715-2703 for my lender list of loan officers who are honest, and whose loans work. Or check the list on my website at www.MarylandHouse.com under Getting a Mortgage. BEWARE OF LENDERS -- who require you to use their choice of title company. This is how many of the predatory lenders get their loans through settlement. And -- as you start to see lenders go under or become subject to government investigation -- you'll start to see title companies fall as well. Good riddance! FORECLOSURES -- are rarely good deals for today's buyers/ Many were bought at peak-of-market prices with 100% financing, and some added the closing costs to the financing, meaning that now the loan is more than the value of the house. And, lender may be saying they're doing short sales, where they forgive part of the loan balance, but in practice they really aren't without going through incredible hoops. We also find that some of these houses have significant condition issues. SELLERS -- can be successful in this market as it reights itself. Your house has to be priced right and look good. Often, simple staging techniques work. Call Nellie at 410-715-2703 (or click contact us on this website) for a free market analysis that includes this. GUARANTEED SALES -- through Long & Foster are possible with better terms than we've had in the past. There are limitations to this program, and eligibility requirements. But if you'd like to learn more, please contact Nellie for an appointment. ON A PERKIER NOTE -- since the cold weather brings us inside and gives us time to decorate, here are some trends. Blues, browns and greens are the current colors, although reds seem to be coming back (and when they do, it usually predicts good economic times!). Paint, inclduign subtle texturing and finishes, replaces wallpaper although architectural borders remain popular. White woorwork adds design interest. Definitely wood floors everywhere, with area rugs. Simple window treatments or rich-looking valances -- few floral patterms unless tone-on-tone. Elegant fabrics and trims.
ALL DURING 2007 -- our 'normal' market activity has been 4-to-8 weeks late. So, for instance, rather than clients starting to call in February, they contacted us in late March. SO IT IS AS NOVEMBER starts. Buyers who we might have seen in September are venturing intot he market as rates dropped to 6.25% after the Federal Reserve's overnight rate drop. And loans over $417,000 are again being approved. IN FACT, THIS -- is the best market to buy I've seen in 22 years -- great mortgage rates, great prices, and an abundance of selection. If you are a buyer, this is your moment -- take advantage of it! Call Nellie at 410-715-2703 to get started. REPORTS OF PREDATORY LENDERS -- continue. Unsolicited calls from mortgage lenders offering 'bargain' rates, and clearing houses such as DiTech and Lending Tree persist. ALL loan officers operating in Maryland must be licensed by the state. Second, many of these callers are at offshore call centers. As soon as you start giving them information, they will pull your credit report, which drops your credit score. BOTTOM LINE -- if you need to refinance, either go back to your current lender, or check Nellie's lender list at www.MarylandHouse.com. SELLERS PLANNING A MOVE -- should call Nellie now for a market analysis, so they can be prepared to have one of the three best houses on the market in their price range when they do sell. That's trus whether you're thinking of selling after the first of the year, or next fall. Call Nellie at 410-715-2703 to schedule this informative, free session! FIX THAT APPLIANCE, OR REPLACE IT? Because of improved energy efficiencies, it may be better to replace an item. Consumer Reports suggests age is the factor: 6 years -- dishwashers, microwaves, top-freezer refrigerators. 7 years -- dryers, top-loading washers. 8 years -- bottom freezer or sided-by-side refrigerators, ranges, wall ovens, and front-loading washers. And, for the safety of fresh sensors, replace smoke detectors every 10 years and carbon monoxide detectors every 5 years (write the date on a visible side of the unit). Check www.carbonmonoxide.org. JOGGING, BIKING, OR WALKING -- early in the morning, or at dusk or later? PLEASE wear a reflective vest or white top so drivers can see you! The stripes on shoes, or wavy blocks on leggings or tights aren't enough, especially is another car is coming the other way with its headlights creating shadows and glare. HAVE A CHILD AGES 8-18? This is a great time to join Patapsco Valley 4H Club, an Ellicott City-based youth group whose members carry projects such as dogs and cats, woodworking, crafts, photography, foods, fashion, gardening, biking, science, and more! It's not just for farmers! We meet once a month for a business meeting, and have project workshops and game days scattered through the year. Some of our members have found their careers and won scholarships -- all have had fun learning how! Call Nellie at 410-715-2703 for more information about joining! MORTGAGE RATES SETTLED -- faster than expected in later August, with conventional mortgages up to $417,000 posting at 6.5% and larger, jumbo mortgages ranging from 6.75% to 7% with stable lenders. AS THE DUST SETTLES, TOO -- the mortgage market now will look as it did before 2002 -- limits on how much buyers can borrow, expectations of good credit, requirements of the buyer investing some cash into the transaction, and more traditionally-structured loans. And, we will start to see risk-based pricing -- the lower your credit score the higher your mortgage rate, or the less you will be able to borrow. THIS IS HEALTHY -- for borrowers, for lenders (who have been really stupid in the last few years!), and for the real estate market in general. Cheap money has increased demand and contributed to housing prices that have exceeded the values. That's never good for an investment -- BUT -- remember that you have to live somewhere, and owning a house will always be a great deal, especially with the tax savings. UNDERSTANDING THE MORTGAGE WORLD -- is imperative for real estate agents now -- not that it shouldn't have been before. But far too few of the recently-licensed agents understood how to pre-qualify buyers, and left them to the hands of loan officers who were looking to line their own pockets writing high loans. It's important to understand the players, too. For instance, Countrywide -- which has hit the news a great deal lately -- yes, has trouble in its wholesale department, which funds through mortgage brokers (some of the prime offenders for writing doomed-to-foreclose deals). But its retail division where it works directly with borrowers is going strong -- enough so that major investors are buying Countrywide stock happily. OUR HOWARD COUNTY MARKET -- will strengthen some this fall, and we hope to see homes continue to sell as buyers recognize this as the great market it is. It will strengthen more here in March, as the market settles out and balances, and as more private contractors anticipating the base realignment influx start transferring people in. NEED TO SORT THIS OUT -- for your circumstances? Call Nellie at 410-715-2703. THERE'S STILL TIME -- to replace windows and doors, and qualify for tax credits by the end of this year. Check out www.efficientwindows.org for more information on selecting windows and doors, as well as the terms of the credits available. WE NEED RAIN -- but you can plan your lawn refurbishment now. Keep the grass cut to at least 3" and use a lawn weed-specific treatment to remove the invaders. Once we get routine raing, then re-seed, let the new grass emerge, and add winterizer fertilizer in the fall. Don't forget to remove the fallen leaves, and compost them for your garden! CUT YOUR ELECTRIC BILL! Nellie never saw this year's BGE rate increase -- and has realized it's probably because she is switching to the compact flourescent bulbs throughout her house. The light color is better than it was, and these last longer! |
NELLIE ARRINGTON, CRS |
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