Citylights Realty Group participated in this year’s Rebuilding Together Project.  The house was located on Channing St. NE near Galludet University and we helped with cleaning, painting and updating the kitchen and bath for the elderly owner.  We had a great time getting down and dirty with our colleagues!

I think DC may have a new contender in “cool factor” and that could very well be “Charm City”, aka Baltimore.  I know that during the past few years, there’s been a ton of development in Baltimore, specifically in areas that dot its beautiful harbor.  I also make frequent trips to experience the happening art and music scene as well as the amazing dining options, given that it’s only a half hour ride from DC on car or train; it’s been totally worth it every time I’ve gone!  What sets Baltimore apart from DC is the fact that, historically, it’s a blue-collar town and with that, you get a more “industrial”, no frills kind of feel as opposed to the fine, classical-era-inspired architecture you see all over DC.  Granted, it’s the capitol and it needs to look dignified.  I get it.  But if you’re looking for a little change of scenery/pace, you must visit B’more.

While there are neighborhoods within Baltimore that contain posh, Victorian era “brownstones”, most of the city is lined with carbon-copy attached row houses…no front porches, no awnings, just up and down brick facade, two-level residences made specifically to accommodate the masses of people who came there for the industrial jobs back in the day.  There are also a ton of warehouses, old, abandoned buildings from late 19th century, wonderful parks, cobble-stoned streets that lead to little hole in the wall neighborhood gems.  Baltimore is less transient than DC due to the same reason:  Blue-collar folks rarely had/have the luxury to move from place to place…as opposed to the Feds and diplomats who come in to DC on short assignments.  In short, Baltimore, with its smoke-stack past is clearly less polished, less refined, but offers so much in terms of an environment that caters to artists and musicians, the young and the .gov-less.

On a recent trip, I visited the local market, much like Capitol Hill’s Eastern Market, but, again, less refined but full of life and grit.  There are a ton of fish stands and from what I can tell, most can be cooked right then and there, to be consumed right then and there.  In Federal Hill, there are cutesy cafe’s, wine bars, trinket and thrift stores and great, multi-cultural cuisine.  In Fells Point, you get the pubs, the gorgeous harbor, beautiful streets with gas lamps juxtaposed with the original, manufacturing warehouses that have now been turned into luxury residences.  There’s also another neighborhood called Harbor East where you get restaurants galore, the harbor views AND Whole Foods!

My favorite place is the Visionary Art Museum, a progressive-minded museum that features amazing art by the totally un-trained but…visionary artists, the pubs in Fells Point, and an Asian restaurant (can’t remember the name but near Peabody Music Conservatory) where the owner is the only one who cooks for you and serves you.  No frills, but delicious!  Oh, and if you’ve watched the Food Network show “Ace of Cakes”, you know that Charm City Cakes is an amazing creative cake laboratory.  Sonar, a music venue is always serving up the hottest music names…more indi but that’s why it’s so good.  In fact, the whole town exudes an “indi” vibe which is why I like to go there to take a break from good ‘ole Washington, DC.

As far as real estate goes, the prices are a lot more favorable than what you get in DC.  You literally get double the space for the same price…or you can pay half of what you’re paying to get the same space.  Don’t be fooled, with Ritz Carlton residences and luxury “lofts” popping up, Baltimore is promising to be the next “it” place for posh living.  See this development for an example:

So, if you’re ever tired of DC, don’t go too far:  Baltimore really does live up to its nickname, Charm City.

Once in a while, you encounter a situation where a buyer has to move in to the property they intend on purchasing before settlement has occurred.  Usually, this happens because their lease is over before the settlement date and settlement itself has been delayed for one reason or other.  Whatever the case may be, having a pre-settlement occupancy agreement becomes the only option for the purchaser so as to avoid becoming homeless (literally).

The thing to be aware of with these agreements is that it not only accommodates the early move-in, but it also gives the seller a lot of leverage in that should settlement not occur on the specified date, then all monies are forfeited and the purchaser is literally kicked out of the property within a matter of days.  So it’s a case of Buyer Beware.  There are explicit clauses within this agreement which are in contrast to most statutory laws regarding tenant rights.  Also, a buyer accepts the property in the condition it was in at time of signing the agreement.  This means that if AFTER you’ve signed the agreement the HVAC stops working, the seller is no longer responsible for repairs or replacement.  Additionally, the buyer does not have the right to alter the property without seller’s prior consent.

There are also indemnification clauses that protect the seller in the event the property is destroyed or damaged for any reason whatsoever.  That is why it is crucial to purchase insurance that has an effective policy as of the date of the pre-settlement occupancy agreement.

As a buyer, you have to go in it with the understanding that, unless modified, pre-settlement occupancy agreements are written to protect, first and foremost, the seller’s interest.  This is not a buyer-friendly agreement and there are caveats that need to be taken into consideration prior to signing.

I just settled on a house for my clients and it was a short sale.  I’m not sure how we pulled through, given that it took three months to get to the table!  Their patience certainly paid off, but they were in good shape because they didn’t have to vacate a rental at a certain date.  In any case, short sales suck because they put everybody on edge.  How?  Start by having to negotiate with a bank that’s not at all considerate to the timelines outlined in the contract.  Please, if you’re purchasing a short sale, go in it with the expectation that you’ll be given the run around for a quarter to nearly half a year (i’ve heard horror stories).  Even then, you’re not guaranteed that you’ll get to settlement.  So all of that waiting around could  end up costing you  al ot of time, a lot of upfront costs out of your pocket (home inspection and appraisal) and a ton of aggrivation. Another reason why this process sucks is that when a lender locks in a purchaser, there are expirations to the interest rate lock-in periods.  This means that while the short-sale bank is out there, no where to be found, with no updates being given, and with the expiration of lock-in rate fast approaching, you could be at risk of having to shell out even more money to the lender to keep that sweet interest rate for god knows how long.  Be sure to ask your lender to lock you in for as long as humanly possible because you’re going to be waiting a while for closing to take place.  It’s never a good feeling to have to pay more money for something that’s not in your control.  So beware!

The bright side of it all is that short sales benefit everyone when they go through:  They benefit the neighborhood because it’ll be one less empty, dark, boarded up house on the block, the purchasers usually get awesome deals when the sale goes through because often times you can purchase these at below market values, and you’ve helped a desperate seller to come out from under a nasty loan, moods are elevated, lives are saved, neighborhoods are preserved and everyone’s happy.

My point is no matter how it turns out, short sales are a lot of hard work, they require a ton of patience and are risky in that they may fall through at the last minute.  Go in it with as much expectation for disappointment and hopefully you’ll be pleasantly surprised in the end.  I know my clients were : )

Posted by Andrew Kohn, www.andrewkohn.com

http://www.washingtoncitypaper.com/blogs/housingcomplex/2009/04/16/rents-are-rising-in-washington-dc-unlike-anywhere-else/

Written by Ruth Samuelson on Apr. 16, 2009, Washington CITYPAPER at 2:45 pm

A note of thanks to Kate Reichert and Andrew Kohn, who participated with me in the Rebuilding Together project on Saturday April 25th, 2009. The house was located at 524 14th St. NE in DC’s Capitol Hill neighborhood. It was a two level Victorian home with three bedrooms and one full bath. Minnie, the 71 year old owner, was as sweet as can be. Her home had been uncared for since her husband passed away and as a result, it needed to be cleaned up and repaired.

Together with the crew organized by GCAAR, we took charge and cleaned her kitchen, repaired appliances, repaired her utility room, painted exterior window trims, planted flowers in her front yard, cleared out her back yard and bedrooms (which were FULL of unneeded items), repaired her toilet and cleaned the bathroom, installed grab-bars, painted the second floor hallway and bedroom and, overall, created a more functional, clean and organized home for her.

It was truly a wonderful experience to not only bond with other realtors in the area who care about their communities, but also to see how our work together made and will continue to make a positive impact on the owner’s quality of life. Thank you again for your participation. I look forward to the next opportunity to share in this wonderful experience!

Potential home buyers should take note of the change in interest rates. The average rate on 30-year fixed-rate home mortgages hit a record low this week, after the Federal Reserve announced it would purchase Treasury securities over the next six months.

The 30-year mortgage averaged 4.85% in the week ended March 26, the lowest point since Freddie Mac’s weekly survey began in 1971. Last week, the mortgage averaged 4.98%; the mortgage averaged 5.85% a year ago.

Fifteen-year fixed-rate mortgages and five-year adjustable-rate mortgages also hit record lows. The 15-year fixed-rate mortgage averaged 4.58% and hasn’t been lower since 1991, when the survey began tracking the mortgage. The 15-year mortgage averaged 4.61% last week and 5.34% a year ago

This change amounts to a savings of about $450 in monthly mortgage payments for a $400,000 loan.

To obtain the rates, the fixed-rate mortgages as well as the five-year ARM required payment of an average 0.7 point. The one-year ARM required payment of an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

For a free loan consultation, contact us for a lender referral. Now is truly the time to be a buyer in this market.

Washington, D.C., traditionally takes a back seat to world cities like London, New York and Tokyo when it comes to real estate investment.

That’s likely to change.

Thanks to a proposed $1 trillion wave government spending, investors are flocking to D.C. for opportunities in the commercial and residential real estate markets. All these new programs will need offices, after all, and their employees will need places to live.

This year, Washington leapfrogged London for the first-place ranking in the world’s best cities for real estate investment. But don’t count out the world’s financial capitals just yet–even with massive financial troubles in London and New York, those cities finished second and third, respectively. Why? It’s the appeal of long-term stability, and fears that emerging countries are going to take a harder hit

Behind the Numbers
Forbes’ rankings come from the Association of Foreign Investors in Real Estate, a research association that tracks where member investors are finding the best opportunities around the world. AFIRE surveys its 200 members, who collectively hold $700 billion in cross-border real estate.

Here’s a list of top ten best places to invest in real estate:

courtesy: Forbes.com

In today’s market, becoming a seller means you’re initiated in a group that’s labeled as being at the bottom of the real estate food-chain. There are way too many sellers and, as a result, the inventory has become saturated. Funny thing is there are sellers who are savvy enough to know what the buyers are looking for: Everything from a great location, great price, and a great house . That’s right. Buyers want it all and sellers have to deliver on this expectation.

So here’s my advice to sellers thinking of listing their property for sale:

1) Do your homework. Go to as many open houses in your neighborhood as possible and get a sense of how people are “packaging” their house.

2) Talk to at least two real estate agents who know your neighborhood and its inventory. It doesn’t hurt to ask whether or not the agents are currently working with buyers looking for a similar property as yours.

3) Don’t be greedy! In this market, it will not pay off to make this first impression in the buyer’s mind. Believe me, they’ve done their research and will know right off the bat whether or not you’ve priced your home right. So be VERY careful not to over-price. In fact, research has shown that homes priced competitively or just a bit below the average sell at a faster pace than those priced right at market or above it by a few percentage points.

Welcome to the Pricing Game!

4) Be a perfectionist with your decor. De-clutter as much as possible, de-personalize as much as possible and remember that less is always more when it comes to staging your house. Don’t get too creative and don’t customize anything so as to turn off the masses. Think of a hotel room and make sure people can feel at home the minute they walk into your home.

5) It is scientifically proven that you literally have less than 10 seconds to capture a buyer’s heart. Take the time to really pay close attention to the exterior as well as things like the door, main entry and the main room being the focal point of the home. Scent is another big deal. Stay away from over-scenting your place. In fact, keep it as neutral and “clean” smelling as possible.

6) It might be helpful to get a home inspection before you list your home. That way, you can avoid any hurdles should a buyer choose to have a home inspection. Getting these items fixed will play a big part in helping the buyer feel at ease with their decision in that they’re not about to invest in a money pit. You may also consider giving the buyer a home warranty, which is insurance for the systems and appliances of the home. Typically, they average at $400 and it’s paid at closing. Whatever you can do to communicate to the buyer that they’re buying the best and most put-together home will help.

6) When you get an offer from a buyer, make sure they’re serious. There are far too many wishy-washy buyers out there who, even after submitting an offer, tend to change their minds. Make sure that the buyer is qualified for the loan by speaking directly with the lender, make sure that their earnest deposit is sizable and be careful with too many contingencies. That could be a sign that they want a way out and they want it easy. The more full-proof a contract is, the less likely it is that you’re dealing with a fickle buyer.

7) Clean, clean, clean. You’ve moved your things out to your new place and it’s time to turn in the keys for one final round of inspections, called the pre-settlement walk-through. This is when the buyer and his/her agent do an inspection of the place, make sure the place is clean and ready for move-in. Far too often, and especially after a long and arduous day of moving, sellers forget to clean the house. This could cost you at settlement so hire someone if you can’t do it yourself.

By following this simple to-do list, you can make the transaction and easy and smooth-sailing one. Keep in mind that things do happen and sometimes, no matter how much you’ve done, it still takes longer than you had expected. All of this is in line with the uncertain market, but so much of that depends on your location and local economy. Sellers are at the bottom of this food chain at the moment, but you can climb your way up if all of the components - location, price, and house - are right on.

It’s no wonder that with the 50 year low interest rates and record-breaking mortgage application (mostly for refi’s) the housing market is looking like it’s going to rebound.  The Obama administration has two pots from the stimulus package to work with in order to stimulate the housing economy and diminish the number of foreclosures, which affect home values across the board.

It’s still unclear what the stimulus package will do for the housing market, but in February we’ll find out.  It is anticipated that a huge chunk of the $770 Billion Dollar package will go toward the housing sector.  There is also a forecast that the nationwide real estate market will rebound from the down-turn and in the coming quarters, we’ll see an upturn in home values.  Already, we’re seeing values increase in certain parts of the country.  This includes the Washington metropolitan area.

So, for those who’ve been skeptics all along, let there be light:  The end of this doom and gloom is closer than you think.  Time to get up and invest and help turn this economy around, one home at a time.