July 2013

Found 13 blog entries for July 2013.

2nd Seller to bail in last few months...

That's my headline.  It happened.  Again.
Both times in premier communities here in Rockville.  King Farm, and today the Fitz.

All was looking good.  My buyers put in a strong Offer.  With Escalation Clause, above asking price.
Significant deposit and downpayment.  We were 1 of 3 offers.

BJ I'm sorry, the sellers have decided to not sell their property.  They will continue to rent it out as an Investment.

There is a reason I'm seeing a lot of Investors and ALL cash buyers more & more.  The sellers also realized this.  It took going through all the motions and seeing the actual demand from other buyers, to realize they would have been letting go of a good investment. 

 

 

This business is tough.  Its

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Below are fees associated with your purchase on a $500,000 sales price
20% down= $100,000  *no mortgage insurance
$400,000 loan amount  *conforming loan amount

$750       -Title Company fees.  If Short Sale or Foreclosure, would be $1,250
$962        -Owner’s Title insurance (optional, but strongly suggested)
$1,023     -Lender’s Title insurance (required)

$120            -Govt. Recording Fees
$2,500          -*Montgomery County Transfer Tax (Split 50/50= $5,000 /2)
$1,250          -*State Transfer Tax (Split 50/50= $2,500/2)   $0 if First Time Buyer
$1552.50       -*Montgomery County Recordation Tax (Split 50/50= $3105 /2)
$195               -Survey. not done on condos
$35                 -Termite report.  Ask lender if required.
$75                

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I get asked all the time “What closing cost or down payment programs are available”?

On just about any sales price, a 20% down payment will do the trick.. along with good credit. The below programs are for those looking for low down payment options & assistance programs for closing costs and/or the down payment.

PROGRAMS

FHLB
–typically used with FHA financing, for 1st time home buyers only, this grant can be used towards your 3.5% FHA down payment requirement.
–For every $1 you put into the transaction, FHLB will match with $4 to a maximum grant of $7500.
–This allows an individual to purchase a property with as little at $1875 out of their pocket if their offer contract is negotiated with up to a 6% closing assistance credit as allowed with FHA from

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In this current real estate environment, more and more condo buildings have more Unit Owners who are 30 days or more late on their condo fees.

This is a problem for potential buyers of your condo.  Capiche??
I’m not referring to FHA approval for the development.
–FHA or Conventional or other programs require this Delinquency rate to be under 15%

We need to know this now.  Not 30 days into the process when our Lender sends the Condo Questionnaire to your Condo Management company, and our Buyer paid $150 to your Condo Mngmt co. just to fill out the questionnaire.

Pick up the phone.  OR have your Seller pick up the phone.  CALL the Condo Management company and find this information out.  While you’re at it, ask the Investor concentration as some Lenders

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How much do A/C unit ‘coils’ go for in the open market?
Tanyaand I did our walk-through Thursday evening.  Everything went fine until we saw a completely dismantled A/C unit on her back deck.

What the heck??  Last checked at Home Inspection, we had a fully operational A/C unit.  This was an old unit but worked fine.  Closing was all set and scheduled for the next day at 1:00…  what to do?  This was a Bank foreclosure, so possibly even tougher to get resolution quickly.

The Seller’s Agent was able to get a contractor out early the next morning.  He determined someone took it apart to steal the Coils inside.  I never knew this was an issue until I did some research.  It appears as the summer months approach, police are warning home owners to watch out for

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Imagine looking at 7 homes on Saturday… then another 5 on Sunday.  Nothing.  We go back out during the week to see a few more on Tuesday.  A few more Thursday, and here we go… you found it.  Your house.

I pull sold comparables for you.  We discuss until late into the evening and finally decide on Terms.  We hustle to get your Offer pieced together;  financial info sheet, pre-approval letter specific to this home, earnest money deposit, and all of your Contract details hammered out.  Closing date, offer price, requested seller help, title company.

I set it all up in a PDF for your review. Green light is given.  You now get your email through DocuSign to sign all items electronically.  I now have our signed Offer and put it together in a fine

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Below we will calculate all costs to purchase real estate when you’re buying a home in Montgomery County, Maryland.  Every purchase transaction is different and may involve other specific fees not mentioned here.. but for the most part we will attempt to include everything for a typical sale.

Your most accurate quote will be provided by your Loan Officer, specific to your situation.
Let’s use $300,000 for our Sales Price

$1,500     Lender Fees (unless you’re paying cash)
$345         Broker admin fee
$750         Title company fees
$526         Owner’s Title Insurance
$783         Lender’s Title Insurance (unless you are paying cash)
$195          Survey (if required by your Lender)

$120         Govt Recording Fee
$1,500     Montgomery County

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This is a common question I get from my clients.  It is rare when we write a contract at a given Sales Price, that the appraised value will come in exactly at that amount.

Say we ratify a contract between buyer and seller for $168,500 on a silver spring condo.
Appraisal comes in at $175,000.

Does this mean the buyer can come up with less of a down payment?
No.  The Lender still bases it’s approval on the sales price OR appraisal, whichever is lower.  If the buyer is putting 10% down on this given approval, the Lender will want 10% from the Buyer and not from the perceived equity based on this higher appraisal.

What if the reverse were to happen.. and the appraisal comes in at $165,000?
The Lender in this scenario will want 10% down payment based

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Here’s a general punchlist of items to be aware of and stay on top of.  Have your Real Estate Agent assist you, you should not feel on your own.  It can be an overwhelming process and there’s so much to do.

BUYER PUNCHLIST
___All Buyers information. Give to BJ your current address and best phone & email info. Also help complete w/BJ survey to learn more about you & your ideal home.
___Pre-approval Letter forwarded to BJ. Include full contact info for your Loan Officer.
___Complete & return Financial Information sheet, provided by BJ.
___Earnest Money Deposit EMD, typically 1% of your Offer. I will let you know to make check out to Remax Town Center OR to Title Co. Depends if Reg sale OR Foreclosure OR Short Sale. This $  counts towards  your $ needed

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I seem to be working with a lot of foreclosures lately.  Every one of them writes “as is” on the Listing.  Basically what you see is what you get.  You, the buyer, still are given the opportunity to do a Home Inspection AND we’ll make sure you can still get out of the contract if the home inspection has uncovered way more than you have an appetite for.

There are many foreclosures that need little work and for the most part are in ‘move in’ condition.  If you’re using a typical loan to qualify, particularly FHA, the home must have working appliances & be up to code.  A current client of mine ratified a contract on a foreclosed townhome.  It was actually found through the Appraiser’s work that there was a water stain in the ceiling of one of the

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