Events Around Falls Church VA This Weekend

Wednesday is hump day.  Now we start to think about the weekend; those two special days we fondly remember at the beginning of the week and by the middle of the week are in such anticipation of what to do we start planning for “the weekend”.  There are many activities in and around Falls Church, how can everything be squeezed in to two days?  Some of the activities are free, others let us indulge a little; why leave the area we live in with these options? 

Some options for this weekend, June 25 and June 27:

City of Falls Church Farmers Market  8am to noon Saturday 6/27

• Located in the City Hall parking lot with offerings of locally grown fruit, vegetables, cheese, meats, baked goods and plants from over 40 local farmers and producers. Bring the kids and enjoy the morning picking produce, it’s like picking from the orchard without the long drive.

Falls Church Concerts in the Park at 7pm Thursday

• Located in Cherry Hill Park, this Thursday 6/25 is the opening of the 2009 concert series. This event is FREE, bring a picnic and blanket, enjoy the live music from Falls Church City Concert Band (Big Band).

Mason District Park FREE Summer Entertainment

Bring a blanket and picnic and enjoy the entertainment!  Shows are for adults and children.

• Friday 6/26 7:30pm – 8:30pm enjoy Mariachi Los Amigos, Washington D.C’s longest existing mariachi ensemble playing country songs, romantic ballads, lively polkas and traditional sones jaliscienses.
• Saturday 6/27 10am – 11am enjoy Rocknoceros, a power trio for kids performing original children’s songs and much-loved favorites in the woods.

So grab the kids, a date or your best friend and enjoy what Falls Church has to offer you this weekend!

To learn more about us visit us at www.thematchmaster.com

Shoot for the Moon …

The new trend in contracts appears to be “Shooting for the Moon.” Our active real estate inventory has been below average for months, many buyers are finding themselves in competition for each and every home they are interested in purchasing. Becoming slightly frustrated by losing out again and again, buyers often turn to creative ways to make their offer stand out. The most recent trend in contracts is to offer well above List Price, as much as 30%, expecting a low appraisal then requesting a reduction on sales price. I want to go on record, “Sellers I work with are wise to the game.”

As a Seller representative, I present all offers to the Seller but can not recommend they seriously consider multiple offers 10-30% above list price unless the terms are Cash with no contingencies. When reviewing challenges recently seen with escalated priced multiple offers … the highest sale price is not always the best offer in the end. If a buyer offers to pay a particular price for a home, they should be prepared to pay that price at settlement. Re-negotiation of the sale price after a loan commitment date and within days of settlement is not acceptable.

That being said, my suggestion to Buyers is to work with an agent who will represent you. An agent who will pull reports on recent comparable sales, this will give you an idea of what homes are selling for and what customary offers are on similar homes. An agent who will give you guidance to write a strong contract with terms that will allow you to close, not risky contract terms you plan to renegotiate after is accepted. Know your limits, talk to your lender, and understand the newest Appraisal guidelines. And above all else – read the contract and addendums you sign and understand ALL the terms. You, your Realtor®, your Lender and your Settlement Company are a team.

Short Sale vs. Foreclosure – What is the difference?

The market we are currently experiencing is very different from the market we were in the past 5 years.  With the mortgage difficulties we have experienced to decreased property values to foreclosures, who can make sense of it all?  If you are in a home where you owe more on the mortgage than your home can sell for in this market, what are your options?  First you can contact your mortgage holder and try to renegotiate the terms of your loan.  If the bank is not in favor of this approach you can sell your home as a short sale, this is where you own more on the mortgage than you can sell it for.  This is a process the bank will be involved in the final approval of the sales price and terms.  The third option is foreclosure, this is where the bank takes the property once the owner stops payment. 

With all these terms out there, how do homeowners know what is right for them?  What are the consequences of a short sale or foreclosure, how will it affect credit, job status and the ability to apply for future loans?  Foreclosure affects a homeowner’s credit drastically, can affect their job status especially with a security clearance and their ability to apply for future loans.  A successful short sale can help a homeowner avoid the pitfalls of foreclosure and the blemish it can leave on your record for up to 10 years.  Homeowners DO have options, knowing the consequences of a foreclosure and short sale can help you make the right decision.

Foreclosure Consequences:

• Credit score may be lowered from 250 to over 300 points and will remain as a public record for at least 10 years.
• Employers, new and current, who require a credit check consider foreclosure the most detrimental credit items and can challenge employment.
• The most challenging issue against a security clearance is foreclosure outside of a conviction of a felony. A security clearance can be revoked and the position terminated as a result of a foreclosure.
• A homeowner foreclosed on is ineligible for a Fannie Mae backed mortgage for 5 to 7 years.

Short Sale Consequences:

• Only late payment on a mortgage will show on a credit report which lowers your score as little as 50 points. A short sale is not reported on a credit history. 
• Since a short sale is not reported on your credit history it is not a challenge to employment.
• A short sale on its own does not challenge most security clearances.
• A homeowner with a successfully negotiated short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.

For additional information visit us at: www.thematchmaster.com

Lowballs and Strikes – When and How to Make a Lower Offer

I noticed an interesting poll on a Baltimore Sun blog from Jamie Smith Hopkins about buyers’ and seller’s negotiating on “lowball” offers, whether buyers should offer less and how should seller’s respond.

Here’s the logical response for sellers- If it is a serious offer, negotiate! When the buyer has an approval letter (none of this pre-approval stuff for lowball offers) or cash-on-hand makes them real, not just wasting your time. No home sale contingencies, maybe some inspection contingencies (any smart buyer would want those), but nothing fancy. My advice: TAKE THE MONEY! It may be the most you will get after assuming how much it will cost you stay in the house or continue paying a mortgage, etc.

Here’s the logical technique for buyers- If the house has been on the market for more than 90 days, or 120 days, you can start to apply the pressure. A house on the market for 3 days that looks fabulous is a waste of time to offer less because there will potentially be 3 or 4 other offers at a higher price anyway! Look for value in homes that need some TLC or have desperate owners who want to sell fast!

You can search for homes on my website http://walls4homes.com

America, What a Great Country

I just returned from a graduation of Medical Residents at the San Antonio Uniformed Services Health Education Consortium. This is a joint organization of the United States Military and the University of Texas Health Science Center. In attendance were over 300 Army and Air Force Doctors, along with some civilians, who were finishing their medical residency. These are young men and women in their early to late 30s who have spent all of their life getting educated and trained to take care of other people.

I spoke to one general surgeon, aged 32 who told me he has operated on over 1,400 people already. Now that is an apprenticeship program! Some of the doctors were also getting PhD degrees due to their research. The level of detail in these research papers was amazing.

One doctor I spoke with said he was going to change the world, one life at a time. Now there is a perspective to have about one’s calling. These young men and women represent some of the best and brightest.

So what does this have to with Real Estate?

Just this: Despite all of the negative news of late, America has a great future. So invest in your future; our future. Invest in homeownership, America’s going to be here for a long while.

Start your seach for homes: www.averyhess.com

FHA Amendatory Clause Update

A recent change by the Federal Housing Administration US Dept of Housing and Urban Development states that certain sellers are not required to sign the FHA Amendatory Clause.

The Amendatory clause is not required on:
HUD REO sales
Sales in which the seller is:
 -  Fannie Mae,
 -  Freddie Mac,
 -  The Department of Veterans Affairs (VA),
 -  Rural Housing Services, other Federal, state, and local government agencies, etc., and
-   Those sales in which the borrower will not be an owner-occupant.

You may also find the entire guidebook (in Word format) at:  http://www.fhaoutreach.gov/FHAHandbook/prod/collections/current/print/4155-2_6.pdf . The statement can be found on Page 16 (4155.2 6.A.5.d – Requirement for an Amendatory Clause to the Sales Contract) of the handbook.

Search for Homes: www.averyhess.com