Audrey's Adventures in Real Estate

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Give yourself some credit... if you are a "First-Time Homebuyer"

This is excellent advice from my friend, Jason Sardi.  There has been some confusion as to how the First time homebuyer credit works and the details that go along with it. 

This information is concise and well explained.  Thanks Jason for always looking out for us!!

Via Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional):

Let's first define "First-Time Homebuyer".  Actually, let's define what the heck I'm addressing in the first place.  It's the First-Time Homebuyer Tax Credit.  I trust you've at least heard about it and if not... no biggie... I will give you some of the talking points and the direct address to the site momentarily.

The whole concept of "First-Time Homebuyer" can be a tad misleading for some of you.  You are considered a first-time homebuyer (under this tax credit) if you have not owned another home at any point in time during the three years prior to the date of purchase. 

So what is this Tax Credit all about?

  • It acts like an interest free loan because it must be repaid over a 15-year time frame.  If you die, don't worry about it as long as you filed your taxes individually.  If you filed a joint return, it's up to wifey or hubby to pay this interest free loan.  Death, like life & love, can cost money:)
  • This only applies to primary residences in the United States of America.  Sorry, the vacation house in Greenwich, Connecticut doesn't qualify.  As far as that Villa in Italy, count that out as well.  Feel free to drop me a bottle of Chianti in the mail, though.  It's got to be your home... the very roof over your head.  On a personal note, I do believe we'd be better off if when buying a home... we'd consider it more than an "investment".  It's where you live folks!  Investments, for most of us, happen over time.  I ain't (love that word) no day trader or speculator.  And I never will be. 
  • What's the time frame?  You buy the home after April 8th, 2008 and before July 1st, 2009.  Let's face it, we have low interest rates and a large inventory and considering it is a buyers market in a lot of areas... it may be a damn good time to go ahead and buy that home.  Historians may look back to this period of time and wonder what the fuss was with not wanting to committ, waiting for a more opportune time.  There may be NO more opportune time than now.  Of note, the preceding is a sales pitch delivered by folks to increase business and consumer confidence.   The same can be written about all the bad news flying around.  Don't think that news organizations aren't rolling in dollars about how much "bad news" is being reported.
  • How much is the credit?  Quite simply, 10% of the purchase of the home, a maximum available credit of $7500.00 worth of dead presidents.
  • How will the IRS know if someone sells their residence before the 15 years are up?  I gotta laugh at this question, though it isn't a stupid one.  In my mind, the only stupid question is one not asked.  To answer this, the website says the following: "Through both self reporting and third-party information."  Right, how ripe.  Without imposing political beliefs upon the masses, they will know.  While I believe in conspiracies, this isn't one in my book.  This is intelligence, the right kind.  I know folks who blatantly took advantage of the system, good for you.  Just don't bitch because we are all in a bundle.  YOU were just as responsible...
  • It's repaid, but how?  After the second year of claiming the credit, you must repay that interest free loan.  From what I've read, you will be repaying as an additional tax on your returns for the next 15 years.... $500.00 a pop.

One more thing, before I present the second thing which will end up "lastly".  Real Estate Investors have been stifled because of all these happenings in the Mortgage World.  Personally, I think that is a mistake.  They say you can only own so many properties and your credit score has to be this and your mother has to a direct decendent of Henry the freaking 8th?   Some folks invest in Real Estate for a living, don't ignore them.  Keep that in mind PMI Companies and Credit Scoring Agencies, because I bet ya that you won't be running this industry much longer.

Lastly, and my English Teacher hated starting a sentence like that which is one of the reasons I just did... it's a buyer's market.  That doesn't mean it is right for you, yet it is most certainly something to explore.  In a few years, if you didn't pounce on this, you may just be making someone else a lot of money... who owns your home. 

Direct website @ http://www.irs.gov/newsroom/article/0,,id=186831,00.html

Have some fun @ http://www.youtube.com/watch?v=tfBoMV-HIP4

 

Sardi

 

3 comments • Audrey June-Forshey, GRI, Gaithersburg, MD • January 30 2009 09:29PM

Agents, Are You Standing in The Way of Your's and Your Client's Success?

 

Real estate is a hard business and I wonder why we make it harder than it has to be?  Agents, are you costing yourself and your sellers sales?  I think some agents out there are doing just that.

I got a referral the other evening and I have already talked to the purchasers, got them prequalified and just waiting for them to get here to Maryland so we can get out there and find them a house.  A baby is ready to come any day now :)  and once they all get settled and situated they will come and start shopping for their new home. 

While we have been waiting, I let the buyers know that they could shop on my website and take a look at a few homes and point out to me the style and type that they like and I will look for similar homes in the area too.  They did email one that they had seen before talking to me. The client told me that her mother had gone to see the house before and could I find out about the "potential short sale".

So I called the agent and just asked him general questions about the short sale and he, suprisingly, didn't have very much information which concerned me just a bit.  Anyway, I started to say that the clients were coming from down south and asked me to call to get information and before I could say that the mother had come to the house and discuss that with him, he stopped me and asked me where exactly the clients were moving from.  I told him where and he said is it "Jane Doe"?  I was a little taken aback that he said her name and I said "yes."

He informed me that he had "extensive conversations with Jane and that Jane's mother had even seen the inside of the house!"  He told me he would not honor me on the transaction if I showed the house to Jane and her husband.

This is the personality trait of our industry that makes me crazy.  First of all, I talked to Jane and she talked to him once two months ago and the listing agent did not show "Jane" and her husband, the actual buyers the house.  In my state, he has not carried the buyers across the threshold to be the procurring cause.  If I have to fight the fight, I can do it.

Here is the thing, the listing agent just shot himself in the foot.  First and foremost in Maryland, we are fiduciary agents. 

Wikipedia defines a fiduciary relationship as;

A fiduciary duty[1] is the highest standard of care at either equity or law. A fiduciary (abbreviation fid) is expected to be extremely loyal to the person to whom he owes the duty (the "principal"): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents. The word itself comes originally from the Latin fides, meaning faith, and fiducia, trust.

 In English, it means that you are supposed to put your client's best interests above your own.  I don't think this is the case in my scenario.

I called Jane and explained to her that I called the agent, I didn't make a big deal out of it - honest- his stand was since he had already talked to her once and her mother saw the property he was going to insist on this being his transaction.  I told Jane we would go and see the home and if the house was worth fight for and I would take care of the agent no matter what.

I would be sure I have a leg to stand on.  To my surprise Jane told me to just forget that house, if it was a potential short sale and then we would have to fight with the listing agent that we would move on and see others instead.  There were too many other houses to choose from and less stress.

I really feel sorry for that seller.  The seller that hired their agent to watch out for them and to get the home sold.  Their agent may have just cost them a sale because he is more worried about fighting over a commission, that he is getting half of, rather than his fiduciary responsibilty to his client.  Actually, that is breaking the law, not just being unethical.

Please hear me, I am not one to let someone show a listing and then show up to take over, no way.  I am there on 110%.  In the same breathe I will tell you that I have had agents call me to show THEIR buyers my listing because one was heading out of town for a vacation.  You know what, I don't like it, but I do it because my job is not to get into a pissing match about the commission, it is about doing what is right for my clients and getting the home sold.  I am also saying that we should not work for free.  We are running a business, but the story I have just told cost the agent and seller money, not solidify a sale.

I am sure that many of you will disagree with me, that there are rules.  I will tell you that none of the rules or laws that are written override  my fiduciary relationship I have with my client.  If you do not work as a fiduciary, it might be hard for you to understand this, but that is the way it works here.

I know times are tight, we are all fighting and pinching for money, but all of nothing is certainly less than half of something.  I really believe Karma is a big thing.  What goes around comes around is a very true statement, put others before yourself and better things will happen for you.

10 comments • Audrey June-Forshey, GRI, Gaithersburg, MD • January 30 2009 10:34AM

Open House Sunday 1/25/2009 15905 White Rock Road Darnestown Maryland 20878

Audrey June-Forshey | RE/MAX Reatly Group | 301-921-2672
15905 White Rock Road, Darnestown, MD
Enjoy the Darnestown lifestyle. Nearly an acre lot situated on a private cul de sac. Brand new expansive deck. Rich Hardwood floors, 2 fireplaces.
4BR/2.5BA Single Family House
offered at $595,000
Year Built 1970
Sq Footage 2,849
Bedrooms 4
Bathrooms 2 full, 1 partial
Floors Unspecified
Parking Unspecified
Lot Size 36,977 sqft
HOA/Maint $0 per month

see additional photos below
PROPERTY FEATURES
Central A/C Central heat Fireplace
Walk-in closet Hardwood floor Tile floor
Family room Living room Dining room
Dishwasher Refrigerator Stove/Oven
Attic Basement Washer
Dryer Laundry area - inside Balcony, Deck, or Patio
Yard

COMMUNITY FEATURES
Garage parking


ADDITIONAL PHOTOS
Seller contact info:
Audrey June-Forshey
RE/MAX Reatly Group
301-921-2672
For sale by agent/broker

powered by postlets Equal Opportunity Housing
Posted: Jan 25, 2009, 8:18am PST
8 comments • Audrey June-Forshey, GRI, Gaithersburg, MD • January 25 2009 10:25AM

NEW LEGISLATIVE LAW IN EFFECT JANUARY 26, 2009

Montgomery County Maryland is a very consumer oriented county.  As a home buyer you will have so much information disclosed to you prior to the purchase of your home.  Everything from reviewing county Master Plans, to any inspections you may want on a property.  A relatively new law is that the first year's property taxes must be prominently displayed on any advertisement of a property.

This information that I am posting here is  a new legislative update from The Greater Capital Area Association of Realtors in regard to Development Districts, specifically Germantown and Kingsview Village and Clarksburg. 

I will be looking into this for specific details and posting on the information as I get it.

Legislative Update
Thursday, January 22, 2009

logo

 

New Development District Disclosure Law in Montgomery County
Applies to any sales contract signed and any sales material or advertisement for sale disseminated on or after January 26, 2009

Throughout 2008, GCAAR sent several messages to inform agents of a new disclosure law regarding development districts and proposed development districts that would go into effect in early 2009.  Several months ago GCAAR also informed members that the legislation was pending approval and waiting for the County Executive's signature.  It has just recently come to GCAAR's attention that the law now goes into effect on Monday, January 26, 2009.  The enforcing agency, Montgomery County's Office of Consumer Protection (OCP), will continue to work with GCAAR on how the law will be implemented.  The law goes into effect on Monday, January 26 and sellers should comply with the law.  Please be assured that OCP will continue to work with GCAAR and the Department of Finance in order to implement the law and to provide assistance to sellers and their agents.  Below is some background again on the law and the requirements that must be met by sellers starting January 26:

Background:
In response to issues in the Clarksburg area in late 2007, legislation was introduced by lead sponsor Councilmember Duchy Trachtenberg that related to the establishment of development districts in the Clarksburg area.  Bill 36-07 had many different aspects, but specifically as it related to the real estate contract, the legislation was introduced to strengthen the seller disclosure requirements for buyers and potential buyers of property in development districts, and to allow persons who suffer loses as a result of required information not being disclosed to recover damages.  GCAAR worked closely on monitoring the legislation and 2008 President Dennis Melby testified in January 2008 in opposition to the legislation, but also made several recommended changes, should the County Council move forward with the legislation.  The Council's Management and Fiscal Policy (MFP) committee held several worksessions on the legislation and accepted some of GCAAR's recommended changes as they related to the disclosure requirements for sellers.  For example:

  • Original legislation called for the tax disclosure to be in 14 point font, but now states the disclosure must be displayed "prominently."
  • Disclosure in advertising will follow the same principle as the Post-Purchase Property Tax Disclosure Law
  • Information on development districts and proposed development districts will be listed in the deed and land records
  • County will provide a tool for sellers to find the appropriate tax amounts to disclose       

The MFP Committee approved the legislation and the full Council gave final approval at the end of 2008.  The County Executive then signed the legislation.

Applicability of Law:The law applies to sellers of real property located in a development district OR a proposed development district.  Currently, the only areas with development districts and proposed development districts are located in Clarksburg and Germantown.  For the two districts currently implemented (bonds issued, taxes levied), unique tax classes have been established and these development tax districts are identified as tax class RO61 (Kingsview Village Center) and RO64 (West Germantown). (note - Kingsview Village is made up of just four commercially owned properties).  The tax class shows up on the left side of the on-line property tax bill.  For Clarksburg, there is one development tax district already formed and there are two proposed development districts.  However, the tax classes have not been set up yet.  In the case of Clarksburg, OCP is working with Finance to see if maps of these areas can be provided.  Information regarding development tax districts can be found in the FAQ section on the Department of Finance's webpage. http://www.montgomerycountymd.gov/mcgtmpl.asp?url=/content/finance/CountyTaxes/InfoTaxes/faqtaxes.ASP#district

Specifications of Law:

  1. Before signing a contract the seller must disclose to any buyer during the life of any development district created (this disclosure information will be provided in GCAAR Form #900 to be updated by February 1):
    1. the amount of any special assessment, special tax, fee, or charge which the buyer must pay; OR
    2. if that amount cannot readily be determined, provide a way for calculating the amount to enable the buyer to estimate the maximum amount they will pay

 

  1. Any advertisements, sales brochures, signs, or other sales material** that seller creates or authorizes must include:
    1. the property is or would be located in a development district; AND
    2. any potential buyer should ask the seller about the additional taxes and other charges for which a property owner in the district may be liable

**NOTE: the information required for advertisements will follow the same principles as the Post-Purchase Property Tax Disclosure Law, where you do not have to disclose it in ads that are smaller than 16 square inches (i.e. newspaper ads) or on the initial screen listing as long as the information appears elsewhere on that listing
Penalty for Non-compliance:

  • Any contract which does not disclose all information required by law is voidable at the option of the buyer before the date of settlement.
  • Any person who does not comply with this disclosure is liable for damages sustained by a buyer or potential buyer because of that person's failure to provide any required notice or information.  HOWEVER, a seller or the seller's agent is NOT liable for an incorrect estimate of the amount of any tax, assessment, fee or charge disclosed if the seller relied in good faith on a method approved or recommended by the County to estimate that amount. 

If you have any questions please contact Meredith Weisel, GCAAR VP of Public Policy and Legal Counsel at mweisel@gcaar.com.  Questions may also be directed to the Office of Consumer Protection at 240-777-3636 or email at ConsumerProtection@montgomerycountymd.gov. 

 

Greater Capital Area Association of REALTORS®
8757 Georgia Avenue, Suite 600 * Silver Spring, MD 20910
Phone: 301.590.2000 * Fax: 301.590.2248 * www.gcaar.com
©GCAAR 2009

 

 

3 comments • Audrey June-Forshey, GRI, Gaithersburg, MD • January 22 2009 11:34PM

Want Top Dollar for Your Home? Use Less Energy?!

Via Meyer Leibovitch, REALTOR Boyds, MD Realtor (RE/MAX Realty Group):

Montgomery County REALTORS have just been handed a new addendum to the Contract of Sale. It's the Utility Cost and Usage History Disclosure Form and sellers now have to disclose, by law, in writing what their utility bills were for each of the last 12 months. That includes kwh's used, gallons of water, and amount of heating oil.

It's a pretty interesting concept that you now have to disclose how much energy you use. And, the amount of energy you use could affect the value of your home, assuming that you leave lights on and keep the heat or A/C going. This addendum serves to inform the buyer of how much they are really going to need to budget for utility bills, also it lets the buyer know if the home is energy efficient. If it's not, that will definitely affect it's value.

A good rule of thumb is that every thousand dollars financed at 6% is roughly $6.00 per month. Let's say that two houses are priced at $300k, but homeowner A discloses that he spent $100.00 a month more on average utility bills than homeowner B. $100 per month translates to an additional $16k mortgage. So, you could say that if you buy home A, you will be paying for a home that costs $16k more. So if the homes are equal in features and condition otherwise, home A is $16k overpriced.

I know there is a more to it, but at it's base the numbers are true. Now buyers are going to make offers on your house depending on how much energy you have used for the past 12 months.Operating expenses are now more important than ever. Want top dollar? Use less energy!

 

8 comments • Audrey June-Forshey, GRI, Gaithersburg, MD • January 15 2009 09:24AM

Let Me Introduce My Seller I have Never Met . . .

 I have a new  listing in Darnestown, Maryland, that was the family home and we have been getting it ready to put on the market.   I was found as a direct result of Active Rain - I will post about that later.  I have never met the "owner" of this house.

As I have gone through the house with the Seller's sons, we have worked removing a lifetime worth of memories and personality from the house to get it ready for today's market.  Most items have been removed, but it is interesting as I have moved and gone through the house, I feel like I know the owner.

I would like to tell you about her just from the things I have discovered in her home.  First off she was a style maven for sure.  Baker, Henderdon, and custom draperies throughout.  Most items have now been removed, but it was top quality through out.

She was a girlie girl to be sure.  In a box, while looking for staging items, my stager and I found gloves, clutch purses of every color to match the shoes with the belts that all went together in her day.  Table lines, china, aprons.  They are fabulous. 

Beautiful suits hang in her closet that we will probably donate to women going on job interviews that cannot afford the suits.   I found an old mink coat in the hall closet (right next to the shot gun), it was THE fashion accessory back in the day. 

While staging I bought some of the small lamp shades to go on the chandeliers and dress up the sconces in the bathrooms.  For the powder room I got the kind with the crystals on the edge.  I showed them to her son and daughter in law.  The daughter in law said she would love  all of the things that the stager and I have done to the house, which made us happy.

I had put a big basket on the hearth of the fireplace and thought I would go into the garage to find some books to put in the basket.  I was moving a box when I discovered the photo you see here.  Instantly I fell in love with her.   It looks like a ballet or dance costume.  If you can't tell, she has a crown with a star on the front with her wand with it's star to match.  Then to round out the outfit her tulle outfit has wings and stars all over it.  I just fell in love with her all over again.  She is my kind of girl, I can't say it enough.

Real Estate, for me, is all about my clients and I am glad in a way I got to know this homeowner.  I will be taking photos of the home today and putting it on the market.   I have worked hard to live up to her standards as I can tell, her's was the gold standard.

Audreyjune.com   MovinMaryland.com

12 comments • Audrey June-Forshey, GRI, Gaithersburg, MD • January 15 2009 09:21AM

Fifteen Twitter follow dos and don'ts

Just read this article from Paul Chaney.  I think it is excellent advice for folks like me that are newer to Twitter, or just a good reminder to the folks who have been around longer. 

If you are not on Twitter, it is a lot of fun.  If you don't get it, just do it, it is easy, informative and lots of fun.

Via Paul Chaney (Social Media Handyman):

school of fish twitter follows
There are two schools of thought pertaining to who to follow on Twitter. One is what I refer to as the Guy Kawasaki method which says, "forget the influentials," "defocus your efforts," and "get as many followers as you can." It's more of a mass marketing approach.

Up and until Twitter imposed limits on the number of people that I could follow in a given 24-hour period, that's pretty much the school to which I subscribed and just about anyone and everyone qualified (minus the spammers of course).

Since then, I've had to be more discerning and have actually found that to be a good thing. So, here are fifteen suggested Twitter follow dos and don'ts based on my current Twitter follow modus operandi:

Dos...

1. Focus your efforts - If you're in sales and marketing, hopefully you've outlined specific target markets based on demographic, psychographic and technographic profiles. Maybe you've even created a persona of the ideal client or customer. Find those folks and follow them.

One good way to do that is by using Twellow, which is a Twitter "yellow pages." It categorizes Twitter followers based on geography and industry and covers everything from aerospace to Web development.

Twellow Twitter

For example, a search on my city, Lafayette, LA, brought five pages of returns totaling 100 people. Not a lot, but consider that a) Lafayette is a small city by comparison and b) it's in the deep south which is often the last to catch on to new trends. If you're in a more metro area, chances are your returns will be manifold times this.

What might be more relevant is search by category. For example, Bizzuka, the company I serve as marketing director, is targeting the legal industry. A search for lawyers brought over 930 returns. We are also targeting healthcare. A search returned almost 100 hospitals.

Apply that same methodology to your own situation and see what comes of it.

Twellow defaults to ranking returns based on number of followers, but you can also sort by
recent activity and/or whether the person has verified their Twellow account.

Each person listed has a profile associated with their entry which, depending on whether they've verified their account or not, could contain lots of information, including a bio, latest Twitter updates (good for knowing whether they're an active user or not), and link to their Web site or blog.

2. Follow those with real names - That's one way to know it's a genuine account. (It's always a good practice when setting up a Twitter account to use your real name.)

3. Follow those who follow you - In most cases it's a common courtesy. Chances are they're in the same industry or have some relevance to you.

4. Follow those following the people who are following you - Same rationale as #3, just once removed.

5. Follow those following the people you are following - If you've chosen to follow a particular individual for whatever reason (maybe they fit the profile mentioned in #1), there's a good likelihood at least some of the people following them would be relevant for you as well.

6. Follow those in your industry - Obviously, one of the best uses for Twitter is as a vehicle for networking, gathering feedback and getting advice.  It's a great tool for meeting others in your industry or discipline.

7. Follow those you find interesting and/or entertaining - In all the mad rush to turn Twitter into a business communications and marketing tool, leave a little for pure fun. If you find someone's posts interesting, maybe they're worth following as well.

8. Follow those who use the same hashtags (ex. #nms08) to follow a conversation - Again, if they're interested in the same things as you, consider following them.

9. Follow those who @reply you - @replies can be sent into the public timeline addressed to people you're not following. If a user has addressed you in that way, might be fruitful to add them.

10. Follow those interacting with people you follow - If you see a tweet with an @reply addressing someone you're following that comes from someone you're not, they may be worth following. Check em out!

Don'ts...

11. Don't follow those with numbers behind their names - This is a technique often used by spammers (Twammers) due to the fact that have multiple accounts. It's a dead give-away. (One word of caution: When setting up your Twitter handle, don't use numbers. Your real name will do nicely.)

12. Don't follow those with no avatar - If you can't see their face, company logo or some sort of avatar, don't follow.

13. Don't follow those who only broadcast - Unless you know it's an account set up strictly for that purpose - a news, shopping or "tips" type account - don't follow. If they don't participate in conversations with anyone else, they won't with you either.

14. Don't follow those who aren't active - I don't know the number or percentage, but I bet the number of people who've subscribed to Twitter and aren't actively using it is sizable. If a user is not actively maintaining the account, chances are it's dead.

15. Don't follow users based on their follower count - In social media, it's not necessarily how many eyeballs that count but who those eyeballs belong to. There are some very influential people who may not have huge numbers of followers.

There you have it - 15 tips for know who to follow and who not to. That's my list at least for now, though I'm sure I'll add to it. BTW, you can too! What criteria do you use in determining who to follow. Please share it in a comment. Thanks!

Finally, if you're not following me, please do. My Twitter handle is @pchaney.

4 comments • Audrey June-Forshey, GRI, Gaithersburg, MD • January 09 2009 08:55AM