Alexandria, Arlington, Fairfax, Loudoun and Prince William Real Estate Market

New Postal price from May 12th

Yes, starting May 12th USPS is increasing the postal prices by 1 penny for first class postage. But the news is not that bad, first time USPS pricing includes commercial volume, contract prices, rebates, online price reductiosn and other new incentives.

"These innovative pricing incentives will make our products more attractive to all shippers, especially small businesses. We’re pricing our products to sell in today’s competitive shipping market," said Postmaster General John Potter.

 

New Prices as of May 12

Consistent with The Postal Accountability and Enhancement Act, the average increase of the prices is at or below the rate of inflation as measured by the Consumer Price Index. Here's what the new pricing will be:

First-Class Mail letter 1 oz. = 42c (current price = 41c)
First-Class Mail letter 2 oz. = 59c (current price = 58c)
Postcard = 27c (current price = 26c)
Certified Mail = $2.70 (current price = $2.65)
First-Class Mail International to Canada and Mexico 1 oz. = 72c (current price = 69c)
First-Class Mail International to all other countries 1 oz. = 94c (current price = 90c)

 

Ways to Save...

Forever Stamps — Last year, the US Postal Service introduced Forever Stamps... and this is your chance to reap the rewards! You can purchase Forever Stamps prior to May 12 at the lower 41c rate, and then use them even after the price change. Forever Stamps are widely available through Post Offices, Contract Postal Units, consignment locations, Automated Postage Centers, and The Postal Store^®. To help meet increased demand before the price change, the US Postal Service plans to have 5 Billion Forever Stamps in stock. So you shouldn't have any problems getting your hands on them.

In addition to Forever Stamps, the US Postal Service is introducing all new ways to help you save, including the following new incentives:

Express Mail — With the new "zone-based pricing system," you'll pay less when you send a letter to a nearby destination using Express Mail. You can also save 3 percent when you purchase Express Mail online or through a corporate account. Finally, additional price reductions are available if you ship quarterly minimums.

Priority Mail — The new pricing structure includes a provision to help you save an average of 3.5 percent when you use electronic postage or meet other requirements.

Parcel Select — Large- and medium-size shippers will receive pricing and volume incentives under the "last mile" delivery provision.

Parcel Return Service — A new weight-based pricing system will result in significant price reductions for the return shipping of lighter packages.

You can learn more about the new pricing structure at www.usps.com/prices, and you can purchase Forever Stamps at your local Post Office or online at The Postal Store^®.

 

Stock up on your forever stamps!!!!

Not all Condominiums are FHA Approved or Approvable!

Many of you might be thinking of purchasing a condominium which fit into the FHA mold (great for 1st time buyers / priced under 440K) and need the FHA program - (down payments < 5% or 10%, marginal credit)

It is very important that you find out if the condominium is FHA approved.  Please follow the link attached.  You might want to save it on your internet browser.  Getting a "Spot" approval is not easy!  For a SPOT approvals, in addition to a list of requirements, lenders need to verity the Total number of FHA loans in the project-which is very difficult to determine.

https://entp.hud.gov/idapp/html/condlook.cfm

IMPORTANT:  YOU MUST ALSO VERIFY THAT THE CONDO IS AT LEAST 51% OWNER OCCUPIED for FHA financing - even if it is on the list - the 51% is still a requirement.

Renting Better Than a Vacant Home

If a house doesn’t sell, owners should consider renting – and hiring a real estate professional to manage the property. Property management company will screen your tenants and you do have a final approval about your tenant.

Renting out a house rather than leaving it vacant is almost always a better option, I tell my clients to plan to rent the property for several years, get some income and “get on with your lives.”

Some are afraid they’ll lose a tax-free sale. But sellers only have to live in a home for two of the last five years to claim the capital-gains exclusion, so even if that is an issue, sellers have three years to rent.

Once a home is rented, any fix-up costs are tax deductible, points out Rob Massey of Rentals.com.

An empty house is hard to insure and it’s a target for vandals. "A vacant house goes downhill fast," says Karen Rhodes, an associate with Happy Home Realty in Chattanooga, Tenn.

 If you are living in your home and cost of mortgage is eatting up most of your income think about leasing your basement or a bedroom. This will give you an  additional income.

 

Source: United Feature Syndicate, Lew Sichelman

5 Most Dangerous Hazards in a Home

Home owners beware: Several dangers may lurk in a home. If you’re not careful, they could make you sick. Pillar to Post, a home inspection company, reviews how to spot these dangers in the home and encourages you to contact a home inspector if your home may be at risk for any of these potential dangers.

1. Radon:
A colorless, odorless gas that can seep into the home from the ground. Radon has been called the second most common cause of lung cancer. What to look for: Basements or anything with protrusion into the ground offer entry points for radon. The Environmental Protection Agency publishes a map of high prevalence areas for radon (www.epa.gov/radon). A radon test can determine if high levels of radon are present.

2. Asbestos:
A fibrous material once popular in building materials because it provides heat insulation and fire resistance. But asbestos was banned in 1985. It may still be found in older home’s insulation materials, floor tiles, roof coverings, and siding. If disturbed or damaged, it can enter the air and cause severe illness. What to look for: Homes built prior to 1985 are at risk of having asbestos within construction materials. Home owners should especially be careful when remodeling because disturbing insulation may cause the asbestos to become airborne.

3. Lead:
A toxic metal used in home products for many years that can contribute to several health problems, especially among children. Exposure can occur from deteriorating lead-based paint, pipes, or lead-contaminated dust or soil. What to look for: Homes built prior to 1978 may have lead present. Look for peeling paint and check old pipes. To get a HUD-insured loan, buyers must show a certificate that homes built prior to 1978 are lead-safe.

4. Hazardous products:
Stockpiles of hazardous household items — such as paint solvents, pesticides, fertilizers, or motor oils — that can create a dangerous situation if not properly stored or disposed. They can cause illness or even death if small amounts are ingested. What to look for: Make sure these items aren’t tucked away in corners, crawl spaces, garages, or garden sheds. Home owners often don’t realize these products can pose a danger and may forget they’re storing them. But buyers don’t want it to become their problem — and expense — to dispose of. If these products are found, make sure the buyer requires their removal and gets a disposal certificate prior to closing, which proves the products were disposed of properly and not just dumped in the backyard.

5. Groundwater contamination:
The result of hazardous chemicals that are illegally disposed of and then seep through the soil and enter water supplies. A leaking underground oil tank or faulty septic system can contribute to this. What to look for: Look for any conditions that may be conducive to leakage. Homes near light industrial areas or facilities may be at risk. Also a concern: areas once used for industry that are now residential. 

 Source: Pillar to Post

New Appraisal Rules for Freddie, Fannie

Fannie Mae and Freddie Mac have reached an agreement with New York Attorney General Andrew Cuomo that requires them to have independent appraisals of home values.

Under the agreement, home appraisals have to come from assessors who don’t have formal ties with a lender or mortgage broker.

Lenders wishing to sell their mortgages to the nation's two largest sources of home finance must make sure that they don’t rely on in-house appraisers and don’t own an appraisal firm itself, according to the agreement drafted by Fannie Mae.

This agreement brings to an end a large portion of an investigation by New York State into how Wall Street bundled and sold millions of dollars of questionable home loans.

The agreement has three tenets and applies to lenders nationwide:

• Under the newly created Home Valuation Protection, mortgage brokers are prohibited from selecting appraisers. Lenders can’t use staff appraisers or appraisal companies owned or managed by their companies. The code also entitles the borrower to one copy of an appraisal report, free of charge, within 3 days of the closing of the loan.

• Beginning Jan. 1, 2009, Fannie and Freddie will no longer purchase mortgages from lenders that use internal appraisers. Lenders will be required to represent and warrant that the appraisal report was obtained in a manner consistent with the New Home Valuation Protection Code.

• A clearinghouse of appraiser information will be created, with a separate board of directors, to monitor complaints from appraisers and consumers. All lenders will be required to provide post-purchase copies of appraisal documents to the clearinghouse. Lenders will establish a telephone hotline and e-mail address to receive complaints from appraisers and users of appraisal services on the improper influence or attempted improper influence of appraisers.

Source: Reuters News, Patrick Rucker, and NATIONAL ASSOCIATION OF REALTORS®

Northern Virginia New Conforming/FHA Loan Limits

Yes another great news!!! Fannie Mae, Freddie Mac and FHA have all adopted these new maximum loan limitations. If you have limited equity or a jumbo loan, refinance now and save thousands of dollars! If you are purchasing a property over $417,000, this year you can qualify for conforming rates!

To find out the new limits in your area, simply click on this link: https://entp.hud.gov/idapp/html/hicostlook.cfm, which will take you to the "mortgage limits" page at the HUD web site.

 

New FHA Loan Limits!!!!

HUD and FHA announced their new max loan limits this morning (March 6th 2008). In almost all of the Washington Metro area our new loan limit is $729,750 (up from $362,250). This is our max FHA loan limit and is good through the end of 2008 when Congress will determine whether to extend or not.

We are still anxiously awaiting word from Fannie and Freddie on our new Conventional Conforming loan limits, but we should hear soon. The bet here is those limits will mirror the new FHA loan amounts...

This should be great news for the stagnant Real Estate Markets!!!

Thinking of buying or selling? I am just a phone call away at 703-625-4949 or email me at Info@eNOVAHomes.com

Grantor's Tax - Update on Refunds

Given the Virginia Supreme Court’s finding that the Northern Virginia Transportation Authority (NVTA) cannot impose taxes, we will all be receiving questions about the additional grantor's taxes that have been paid to the Authority. Northern Virginia Association of Realtors has communicated with local clerks of the court regarding anticipated refunds on grantor's taxes paid since January 1, 2008.

 

The Virginia Court Clerk’s Association has asked the Virginia Attorney General for an opinion as to when it should stop charging the tax, as the Supreme Court order does not become effective for 10 days. The Attorney General will respond by Monday or Tuesday.

The Northern Virginia Transportation Authority (NVTA) has 10 days to ask the Supreme Court to reconsider its ruling, and NVTA staff plans to make that request. However, given the unanimous vote, NVAR does not think the request is likely to be successful.

Local tax departments will be working with NVTA on a refund plan. The NVTA is collecting and holding those funds. Individuals who have paid this tax will eventually be asked to write to the NVTA for the refund and present a recording receipt. If the person does not have the receipt, the county clerk’s office will be able to obtain a copy.

In the meantime, the legislature and the Governor are looking at the next steps regarding transportation funding.

Source:NVAR report

Are Extra Monthly Mortgage Payments OK?

Getting a windfall and using it to pay off the mortgage sounds like it should reduce the monthly amount owed, but often it doesn’t.

Fixed-rate mortgage holders who pay off a big chunk of their mortgage are likely to shorten the payoff period, but the infusion of cash probably won’t reduce at all the amount they owe monthly.

Holders of adjustable-rate mortgages who are making fully amortizing payments will get a payment adjustment at the point where the payment is recalculated after a rate adjustment.

Mortgages with an interest-only option should see their payment decline – unless the servicer handles the reset differently than the industry norm. Many delay the payment adjustment for a year, sometimes more.

The most responsive type of mortgage to oversized payments is the home ownership accelerator, because it has no fixed payment requirement. The monthly amount owed fluctuates with the amount the mortgage holder has available to pay.

Source: The Washington Post, Jack Guttentag

10 Best Places for House Bargains

The best place to get a bargain on a home is an area where there is healthy job growth and more houses available than people to buy them.

These are markets “where you have high inventories but pliable borrowers, with lenders willing to deal,” says Anthony Sanders, a professor of finance at Arizona State University.

Forbes magazine went looking for markets where the damage from risky lending hasn’t been as dramatic as in some parts of the country and where employment growth will burn off an over-abundance of inventory quickly.

Here are what the magazine considers the 10 best cities for bargain house hunters.

1. Salt Lake City, Utah. Developers have gotten ahead of the demand, but the city is adding jobs more quickly than practically any place else in the country.

2. Raleigh, N.C. Another place where building got ahead of the curve, but the economy is expanding quickly.

3. Orlando, Fla. This part of the state had fewer speculators than Miami and Tampa, and it’s adding jobs faster than those cities as well.

4. Charlotte, N.C. The financial industry is moving here, adding jobs, but the inventory of unsold homes is still significant.

5. Phoenix. This city had a high foreclosure rate, but the economy is growing and people are still moving here in large numbers.

6. Seattle. The city’s port has profited from the weak dollar, but the housing price growth has slowed.

7. Las Vegas. This market was hit hard by foreclosures, but the growing economy makes the huge inventory less toxic than it is many places.

8. Jacksonville, Fla. The foreclosure rate is slower than the rest of the Florida cities, making the large inventory likely to improve.

9. Richmond, Va. There is only one foreclosure per 1,103 households here (compared to 1 in 33 in Detroit). Still, there are plenty of homes on the market.

10. Houston. Homes in Houston have long been a bargain. While there have been plenty of foreclosures, the population and the economy are expanding.

Source: Forbes, Matt Woolsey (02/07/08)

Lending Guidelines gets tougher-Countrywide

Countrywide last week sent mortgage brokers a list that categorized hundreds of counties as "soft markets" with rankings from 1 to 5, in ascending order of perceived risk. In areas rated 4 and 5 -- roughly 100 counties in metropolitan areas nationwide -- Countrywide said it will now require down payments that are 5 percentage points higher than from most applicants. If a loan program had previously allowed a minimum 5 percent down payment, applicants in these areas will now be required to come up with 10 percent.

In Virginia following counties
Virginia Fairfax 4
Virginia Arlington 4
Virginia Prince William 4
Virginia Spotsylvania 4

 With these strict guideliness it does get harder to get loan but for first time home owners there are other resources still available like FHA, VHDA and other loan programs. Thinking about buying a home....concerned about the market...call me today for free buyer consultation. Email me at Info@eNOVAHomes.com or call me at 703-625-4949.

Avoid Getting Hooked By A Foreclosure-Related Scam

There are lots of people out there willing to victimize people in financial difficulty--especially when their troubles become part of public record. Beware of offers involving signing over your deed to someone else who promises to sell your home for you--whether they do or not, you'll still be responsible for the mortgage.

Also, investigate people who offer to buy your property so you can avoid foreclosure. They may be legitimate but, to be on the safe side, check them out by contacting your state Attorney General, the state Real Estate Commission, or the local District Attorney's consumer fraud unit.

Finally, consider carefully any "counseling agencies" that offer foreclosure-mitigation services for a fee. In many cases, they offer services you can perform yourself, such as negotiating a workout plan with your lender.

If you decide to conduct a pre-foreclosure sale, give us a call. We'll work with you to make sure your interests are protected in the transaction.

Keep in mind that if you have a loan ensured by the Federal Housing Administration (FHA), the Department of Housing and Urban Development (HUD) offers a toll-free number you can call to find a HUD-approved housing counseling agency: (800) 569-4287. For more information about foreclosures provided by HUD, go online to: www.HUD.gov/offices/hsg/sfh/econ/econ.cfm.

Foreclosure Fact

The type of foreclosure procedure followed in a state depends on whether real property is purchased there using mortgages or deeds of trust. (Some states use both.) In general, states that use mortgages require a judicial procedure through which the lender must get court approval to initiate foreclosure. Where a deed of trust containing a "power of sale" clause is used to purchase property, the lender can initiate a foreclosure sale without going to court.

10 States with the Highest Percentage of ARMs

Don't Blame it on the ARMs
Aggressive lending is the real culprit behind high foreclosure rates — not just adjustable-rate mortgages, say many of those who are trying to analyze and cure the foreclosure problem.

"I blame the builders who needed to unload their product and the nonprofessional loan officers," says David Zugheri, co-founder of First Houston Mortgage in Houston. "Everybody was putting loans together just to get them sold. We were treating the housing market like a used-car lot."

While some states with high percentages of ARMs also have high levels of foreclosures, the two don’t necessarily go hand-in-hand. In Midwestern states where there have been high numbers of job losses and other economic troubles buyers are losing their homes because of old-fashioned economic hardship — not ARMs.

"It is certainly not out of the realm of possibility that even without resets some of the borrowers who took out these loans are ill-prescribed for homeownership," says Keith Gumbinger, vice-president of mortgage-research firm HSH Associates.

Here are the states with the highest and lowest percentage of ARMs.

10 States with the Highest Percentage of ARMs

1. Nevada: 40.3 percent
2. California: 38.2 percent
3. District of Columbia: 33.2 percent
4. Arizona: 32.1 percent
5. Florida: 29.5 percent
6. Colorado: 27.2 percent
7. Washington: 24.5 percent
8. Virginia: 23.6 percent
9. Hawaii: 23.3 percent
10. Illinois: 23.1 percent

Source: BusinessWeek, Prashant Gopal (01/11/08)

All Real Estate is Local-Top 10 reason why you should buy in Virginia

We all understand the local economy, job market and investment trend in the area. Listing and reading about all the negative things about the Real Estate industry, I wish we only had access to local media information. On the other hand living in this globalization and technology growth era we have more information and tools to draft the realistic trend of the local market compared to the rest of the world. I have put together few of my thoughts why it is a idea to buy a home both of primary and investment purpose

1. Northern Virginia has a low unemployment rate of 2.0 compared to 5.0 national.
2. Interest rate is at the lowest
3. Housing inventory is highest in the year which means lot to choose from.
4. Rental market has become hot which means if you are renting your monthly rental payment versus an average priced home mortgage will be about the same.
5. With the financing guidelines getting tighter it may be better to jump now then wait on the side till you cannot find any lender to finance your loan.
6. FHA loans are back. With incredible loan programs offered by local (County), State (VHDA) and Federal (FHA) are big. They want to boost local economy so the funding are still available to getting into their programs.
7. Seller pays closing cost. In most of the instances you can get upto 6% as closing cost fees from the sellers.
8. A home purchased in Northern Virginia in 2002 at the median price of $265,300 could sell for $425000 today, a 60% increase.
9. Builders are willing to work with a qualified purchaser more than ever before.
10. " There is no such thing as a perfect market."

So why wait call me today and get started...I am just a phone call away at 703-625-4949 or email me today at Info@eNOVAHomes.com

How Frequently should I get updated CMA?

Your home is on the market for sale, you did a competitive market analysis before listing your home. Its been couple months since then. You have few showing but nothing turned into contract. What next is always the questions. First thought that comes to seller's mind is switch Realtor may be other person can do some miracle and sell right away.  Lets face some fact. We are in the changing market place. Every seller has very different motivation to sell. Instant of playing games let's get down to business. Understand your market. Get bi-weekly CMA . Review them see where the competitiors are standing and where you are. Sometimes knowing bit more information about your neighborhood pricing may help you get the best deal. Ask your Realtor to show your competitor's home and see it stands with your in terms of update, staging and pricing.

Need more information please feel free to email me at Info@eNOVAHomes.com