Why is Fannie Mae self-destructive?

I woke up to see the on the front page of the Washington Post "Fannie Mae asks for 8.4 Billion from Taxpayers!"

This is NOT surprising at all.

Having worked with Fannie Mae and their foreclosures for the past year, I have had a unique opportunity to witness firsthand the systemic culture of mismanagement, waste, bureaucracy, inefficiency, and utter disregard for the local real estate market trends.

Let me give you some examples:

Mismanagement:
In any given transaction, very rarely does upper management know what is going on in each of their respective departments. A culture saturated with cronyism which bleeds the organization dry of quality service providers and rewards incompetence and inefficiency.

Waste:
Fannie Mae uses these "Fannie Mae approved" contractors to make any and all repairs on the foreclosures. The contractors are out-of-state companies who will under bid for a property and will end up charging upwards to 75% more than the original bid. There is NO oversight to see to ensure the quality of work and if the project is completed.

Bureaucracy:
In order to make any suggestions or concerns addressed, there is a barrage of middle management to overcome. There is a systemic culture of red-tape, lack of accountability, and inefficiency which permeates throughout the whole organization from the top down.

In other words, the top management in Fannie Mae just DON'T GET IT!

Solution:
We have to urge our representatives in Congress to dissolve Fannie Mae or break it up into smaller, more manageable agencies in order to plug this SINK HOLE of taxpayer's dollars!



Call me at 301-452-4767 with any real estate questions!

Misconceptions of Selling in a Buyer's market!

Are you thinking about selling your home? I'm sure you have heard the horror stories for sellers in today's Buyer's market.

The MOST difficult obstacle for sellers to overcome in this market is accepting the realistic, fair market value of their home.

YES, It's True:
1. Home prices have declined significantly since the housing boom.
2. Pricing is the ultimate determinant for selling a home.
3. Flexibility regarding Buyer incentives are necessary.
4. Open Houses are one of many great marketing tools.
5. Staging your home is great way to sell a home faster.

NO, It's False:
1. Sellers dictate a buyer's market.
2. Zillow.Com can tell me what my home is worth.
3. FSBO is the easiest and least expensive way to sell my home.
4. If you are selling your home in AS-IS condition, you don't have to make repairs.
5. Short-sale is a streamlined option for selling your home.

FACTORS TO DETERMINE FAIR MARKET VALUE
-Price of comparable sold homes in the neighborhood or building up to a 1-mile radius
-Comparable sold homes must be within the last 3 months
-Updated or upgraded amenities

BEST TIME TO SELL YOUR HOME
-Spring and Summer months are the best time to sell your home.

Share with me your thoughts.



Call me at 301-452-4767 with any real estate questions!

Zillow: PROS and CONS

What is Zillow?
-For those of you that are NOT familiar...Zillow is an online real estate database which can be used by sellers as a marketing tool for their property and buyers can access the information to track properties.

What are the PROS about using Zillow?
-From a seller perspective, Zillow allows you to see current real estate activity in your neighborhood.
-Zillow allow sellers an opportunity to estimate the value range of their home before listing a home for sale.
-Zillow provides an effective marketing tool for listing a home for sale.
-From a buyer perspective, Zillow provides access to over 92 million homes in their database.
-Zillow provides aerial views, square footage, number of bedrooms and baths, comparable sales and listings (ie. public information).

What are the CONS about using Zillow?
-Zillow's valuation tool known as "Zestimate" is based on undisclosed factors and does NOT take into account location, upgrades, finishes, levels, and add-ons associated with an appraiser's market valuation of a property known as "unzillowables".
-Zillow is NOT as updated regarding the status of available properties on the market (ie. Active/Under Contract/Sold.

"In 2007, The Wall Street Journal studied the accuracy of Zillow's estimates and found that they are "often are very good, frequently within a few percentage points of the actual price paid. But when Zillow is bad, it can be terrible." (Wikipedia)

What does this mean for YOU?
-As a seller and/or buyer in today's real estate market, there are many sources of real estate information to choose from...it is important to be knowledgeable about the real estate process and compare the information to knowledge of an experienced realtor who is familiar with the local market you are interested in pursuing.

Important 2010 Real Estate Dates to Know!!

There are many changes affecting YOU in real estate for the first quarter of 2010.

I have listed a few important dates pertaining to DC real estate in 2010 as follows:

-February 1: FHA (Federal Housing Administration) removing the 90-day "flipping" restriction on foreclosures. This allows investors to renovate and sell foreclosures faster.

-March 31: Federal Reserve Program to purchase mortgage-backed securities to keep interest rates low will expire. This allows interest to rise to 6% before the end of the year.

-April 1: The first-time homebuyer tax credit will expire. For more information: http://www.jtrotman.com/ (See Video on Homepage)

-April 5: FHA requirements are changing policy to increase mortgage insurance premiums for sale transactions and refinancing. http://tinyurl.com/y8l5or8

NOW is the time to purchase a home if you are thinking about doing so in the next 3 years...Let me know if you have any questions.



Call me at 301-452-4767 with any real estate questions!

Supply/Demand Economics: Local DC Real Estate Market:

How does Supply/Demand Economics affect the DC Real Estate Market?

With the bombardment of information regarding interest rates, house pricing, tax incentives, foreclosures, short-sales, modifications, and refinancing...the basic message of Supply/Demand Economics can easily be overlooked as it plays out in the local DC real estate market.

DEMAND: The low interest rates and tax incentives have spurred an enormous increase in demand for housing, especially among first-time homebuyers during the past few months.

SUPPLY: Despite the record-breaking amount of housing inventory, there has been a halt in new construction over the past year. This indicates an upcoming shortage of housing within the next few years.

How does the DC Rental Market affect the housing market?

The rental market is an indicator of upcoming housing trends. We have seen a shortage of DC rentals over the past few months due to new people moving to DC and former owners renting properties.

NOW is the time for investment in real estate throughout the Washington DC metropolitan area.



Call me at 301-452-4767 with any real estate questions!

Is NOW a Good Time to Purchase Real Estate?

Why is NOW the best time ever to purchase real estate?

The answer is easy...YES.

But WHY?

If you have ever thought about purchasing real estate...now is the time because home prices are low and everything is working in your favor as a homebuyer. Whether you are a first-time homebuyer or someone looking to move-up to a bigger/better home, you are buying incentives for everyone, such as tax credit and low interest rates.

What is the most important for a homebuyer to know in 2010?

There are TWO (2) important dates for homebuyers to know in 2010 as follows:

March 31, 2010: The Federal Reserve program which is purchasing MBS to keep rates historically low will END. In other words, mortgage interest rates will be rising above 5% after the first-quarter of 2010.

April 1, 2010: The First-time homebuyer tax credit program which provides tax credits for new homebuyers and previous homeowners will END. In other words, there will no longer be incentives to purchase a home.

So the real question is...WHAT ARE YOU WAITING FOR?

Call me at 301-452-4767 with any real estate questions!

What are First-Time Homebuyers looking for?

First-time homebuyers in 2010 are looking for a variety of things...with low interest rates, reasonable pricing, large inventory of housing, and buyer incentives all working to help them...

These buyers are paying more attention to details such as location, square footage, floorplans, amenities, and convenience as the driving force to purchase!

The most common question is in regards to the tax implications of housing as an investment. As more first-time homebuyers are finally realizing their home to be a long-term investment ie. 3-5 years to yield a profit.

What are your thoughts?



Call me at 301-452-4767 with any real estate questions!