Many new homebuyers underestimate some costs associated with buying a home. Borrowers are usually required to get Private Mortgage Insurance (PMI) if the loan exceeds 80 percent of the home’s value. This insurance protects the lender in the event that a homeowner defaults on the loan. There are mortgage products that will allow a lower downpayment without the additional PMI. As you shop for a mortgage, it is extremely important to inquire about this.
All posts by John McCracken
Lenders Easing Up on Jumbo Mortgages – NYTimes
Here is some good news in lending. The New York Times (May 29, 2014) is reporting that lenders are easing up on jumbo mortgages. “Over the last few months, lenders have begun approving loans for jumbo borrowers who don’t strictly meet the usual rules for, say, income documentation or credit score minimums, but can compensate for these shortfalls in other ways.” In the Metro DC market, jumbo loans are mortgages of $625,500 or higher.
May – 2014 Housing Trends Newsletter
MAY-2014 Housing Trends eNewsletter
Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.
The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.
Please click here to view the MAY-2014 Newsletter Housing Trends eNewsletter.
Winning a Bidding WAR
In a seller’s market like we find ourselves in now, there are proven methods to purchase a home at a reasonable price. But in this situation a well thought out negotiation strategy is a must. Importantly, when competing in a bidding war, you must guard against an emotion-fueled offer. In other words, know your limits before you begin to bid. Prep for battle with a sharp Realtor® and know the market. This article in Realtor.com provides the basics.
It is important to have solid financing; eliminate contingencies – carefully; choose a settlement date convenient to the sellers; offer to pay closing costs; personalize the transaction; try an escalation clause; and most importantly, control yourself.
Selling Your Home : Fannie Mae
Here is some great advice from FannieMae on selling your home.
When you are making a decision about a major life transition, (perhaps you want to move into the city or you want to downsize) there are a few items that warrant your consideration. It is important to:
Determine Affordability: What is my unpaid principal balance?
Review Market conditions: analyze the local market, check JohnMcCracken.SmartHomePrice.com, or Trulia or Zillow;
Be Prepared: Inspect your home with fresh eyes; and
Decide how to list: Am I going to do this myself or should I hire a professional. FannieMae suggests that “Unless you are experienced at selling homes, it usually makes financial sense to get professional help ⎯ homes sold by agents typically sell at a higher price and spend less time on the market.”
BuyOwner.com CEO hires a Realtor®
Take the advice of the man who started a For Sale By Owner site. When it came time to sell his own home, he sold it himself, right? After all, that’s what he’s been preaching through his company?
The CEO of BuyOwner.com did not use his own company, but instead hired an agent. According to the Herald-Tribune, longtime CEO Al Bennati doesn’t believe his own company is the best way to sell his own home.
Even FSBO (For Sale by Owner) CEOs, when it comes to their own pocketbook, realize the value of enlisting a professional Realtor®.
TRAVIC – Transit Visualization for DC
Want to know where your bus or train is? This cool app tracks everything in DC and 75 other cities around the world. Most of the movements are based on static schedule data, but real time data is included when available. TRAVIC was developed by the University of Freiburg and geOps.
Home Prices Continue to Rise in April
According to GCAAR* “The average days on market (in DC) was down 21.4% compared to April 2013. The median price for condos remained flat with no change over April 2013, but single-family homes saw a 8.9% increase. Inventory increased 13.6% in April for condos, but supply for single-family homes remained tight as inventory decreased by 5.7%. Contracts increased slightly, 0.9% for condos, and 2% for single-family homes.”
What does this mean for Sellers and Buyers? In April 2013 homes/condos were on the market for 42 days, this decreased to 33 days in April 2014. Even though inventory is increasing for condos, they are selling faster than a year ago. Single family home prices are rising faster than condos.
*GCAAR is the Greater Capital Area Association of Realtors
Transportation Travel Time
Mapnificent creates dynamic public transport travel time maps. How is this helpful in Real Estate? Let’s say you work at the White House and you want to live within 15 to 25 minutes from work and you do not have a car (like about a third of us who live in DC). The map below indicates where you need to live to be just 15 minutes from the White House. This assumes a maximum of 10 minutes walk time to public transportation. Now you know where to narrow your home search. Check it out here.
Historic Anacostia
Is Anacostia finally a place people would like to call home? Is Anacostia on the verge of becoming the new hot neighborhood? Will it finally start attracting more home buyers, now that every neighborhood west of the Anacostia River is being remodeled, poped-up and redecorated?
In 2010 there was cautious optimism of a bright future for the area. What will prove the tipping point? In 2012 investors started to push home prices upward. Even Trulia noted in 2102 that the area, of all the areas east of the Anacostia, was on the rise. But it is still looking rough in some areas. For those of you that are old enough, remember when Logan Circle was a den of crack houses? Now condos and houses in that area rival prices in tony Georgetown.
Is now the time to invest and buy in Anacostia before home prices in the area soar, just like the rest of the city? in 2012, Andy Shallal, owner of “Busboys and Poets,” said he was planning on expanding there. And on Friday the Washington Post reported that Shallal signed a letter of intent. Here comes Busboys and Poets! There is talk of a bridge park connecting both sides of the river along side the 11th Street bridge. New bikeways have been created. And it’s only an 8 minute ride in bike lanes from the middle of Historic Anacostia to Eastern Market. That’s an easy ride for close-by fresh veggies and crafts.
According to Urban Turf, there has been an influx of gay couples. In my estimation once gays move in and start renovation, the yoga studios are not far behind. Then the people with baby strollers begin to take a look. We are there. It is time to take a look at this great neighborhood.