Meyer Leibovitch, REALTOR Boyds, MD Realtor

The sales volume numbers in Montgomery County, MD for October 2008 were also up from the same time last year (MRIS stats). That's 2 months in a row. Who says the market is slow?

The Total Units Sold in October climbed from the same month in 2007 by 7.11% from 633 to 678. Interestingly enough, the Total Sold Dollar Volume decreased by nearly a full 2%. Prices are down. Factually. The Average Sale Price was down 8.5% under October 2007. As well, the median sale price is down almost 11%.

I think that can be attributed to the banks liquidating inventory of foreclosures and cooperating with short sale sellers. The good thing is homes are selling and buyers are out there. If you want to sell, you need to be a fierce competitor and price aggressively, no if, ands or buts about it.

Guess what? Days on Market Averages went up 23.4% to 116 from 94. Patience is the absolute most important virtue to have now when it comes to getting your home sold--aside from coming to grips with the reality that the days of the sky high prices are gone. Really gone.

The silver lining is that a large percentage of you will be buying houses. If you are buying up in a down market, you will always do better. The only caveat is that you will actually have to qualify. The stated income programs aren't out there.The financing terms and programs are changing daily, so before you put in your offer, make sure that you have a firm grasp of the financing that you are getting and that you are fully pre-approved.

As always, make your purchase contingent on a home inspection and an appraisal from your lender that is at least as much as the purchase price. If it doesn't appraise you can renegotiate or walk.

Til next time!

This real estate pendulum has swung to the extreme opposite side. What was once a market of buyer's frantically gobbling up any property listed for sale, regardless of price or condition, for fear of losing out on the huge gains has become a market where those same people are now desperate to unload those same properties at huge discounts. A large percentage of homeowners are now trying to negotiate "short sales" with their banks. Some walked away and went to foreclosure.

The bottom line is the market is saturated with homes that are "short sales" and foreclosures. Describing each in order, simply put, a short sale occurs when the mortgage on the house exceeds the sale price of the house. Thus, leaving the seller "short" of money to pay the mortgage holder (the bank, etc.). If the bank or banks (often there are two loans on the properties, further complicating the process) agree to a short sale, the seller may pay back the bank, the agreed lower amount. Short sale sellers are required to provide the bank with all kinds of information regarding their "hardship" in order for the bank to consider taking a short payoff. The caveats as a seller are, your credit will still be affected and sellers you will likely be paying taxes on the amount you shorted the bank as a capital gain. That is sticky territory and must be discussed with an accountant who thoroughly understands the calculation.

From a buyer's perspective, short sales can be very frustrating. Short sale negotiations must go through the proper bureaucratic channels of the bank or mortgage company. I have literally seen banks and mortgage companies not respond to short sale offers for months, sometimes 1,2 or 3. But, I have to say that the real estate agents who list short sales are getting smart and are developing assembly line systems for dealing with these transactions. The back end of a short sale that most buyers don't see is that many banks will negotiate much lower than normal brokerage fees, are exceptionally difficult to deal with and short sale sellers are typically under such financial duress that, they are often uncooperative. These transactions are very frustrating for even seasoned real estate agents. They are tedious, sometimes result in failure and agents know that so, unfortunately, they can be (not always) handled accordingly. One statistic I have heard bandied about my office is that 16% of all short sales get to closing. I can't verify that number.

Another factor has been language barriers in many cases. Oh, one more step in the process is the short sale negotiator--typically a real estate attorney--who negotiates with the bank once an offer has been received. This liaison works with the agent, the bank, and the seller and is paid by the bank or seller. Meanwhile, if multiple/additional offers are submitted at anytime during the process the time frame can be greatly increased. Whew. Any questions? I am sure there are.

Is there any benefit to buyers of short sales? The biggest benefit has been that short sale homes were sold for below average market price. Though, many short sale homes are in need of repair and the price may reflect condition. Now that there are so many foreclosures and short sales, home prices have been affected everywhere and short sales might not be the deals they once were. The benefit to the bank is one less foreclosure which could result in fewer lost dollars, due to the high cost of foreclosing.

Foreclosures and REO properties. The term REO stands for Real Estate Owned and is how banks describe their foreclosed properties. Once a bank has foreclosed on a property and has it secured, they hire a real estate agent to market the home. These homes are generally sold "as-is", however, buyer's are encouraged to have home inspections to avoid any major problems. REO properties usually need work. Properties abandoned by their owners can sit vacant for long periods of time, before they are prepared for sale. Banks will use appraisers and real estate agents to determine the property values. When the market initially took a dive, it was apparent that banks didn't understand the pricing game. Their properties were priced high and they were often stubborn about lowering prices. Now, I am seeing banks dramatically lowering prices for homes that have lingered on the market and new listings are often aggressively priced.

Banks are much more prepared for REO properties these days and are readily available to negotiate during work week hours. I have never heard of or seen a bank take a contract contingent on a home sale, so if you are planning on buying bank property, you will need to be qualified to purchase the house without having to sell your current home.

Some bank homes have actually sold for more than list price, as well as some short sales, because of the more current, aggressive pricing strategies. Banks will also require you to sign more disclosure forms indemnifying them from any property condition issues. Once again, a thorough home inspection will protect you from unforeseen issues. Many banks also require that you qualify with their loan officer whether you decide to use them or not. If they offer special rates or incentives it could be worth a more serious look.

If you are ready to buy a home, now is a great time, no matter the current ownership of the home you intend to purchase. Buying a short sale or a foreclosure could save you money, but will undoubtedly take a little or a lot more time due to the complex process surrounding the transaction and might result in a lot of work with no payoff.

Congratulations President Elect Obama for winning the election of the millennium!

You ran an amazing campaign that proves your ability to accomplish what some said would be an impossible goal. You exhibited intense focus and steadfast determination and are a true inspiration to all.

Without a doubt, this was the most visible presidential campaign in the history of the world. If you weren't engaged in one way or another you should check your pulse because you might have bigger issues to worry about! I have been part of and witnessed some pretty heated exchanges between friends, family and perfect strangers. Although the political climate became intense and conflictory many breakthroughs were made and friendships born.

Now that the election is over and the winner has been declared, it is time to reach across the aisle and create a better America for our future, for our kids future and for the future of the world. We Americans have proven, once again, that we are able to forge history. By electing the first African-American president of this great country, we have taken a huge step towards eliminating racial prejudice and discrimination that exists in our world.

Let's pray that President Elect Barack Obama is able to keep his campaign promises and form bi-partisan relationships that help us solve the critical issues facing our great nation and the world. Our government has a system of checks and balances and it is our job to be aware, informed and involved so that we maintain our rights and freedoms and pass them to those who will forever inherit this awe-inspiring country.

Housing sales up 32% in Montgomery County in September! Wow. That's great news. The inventory might be starting to move. The total number of sales in September of 2007 was 583, while in 2008, 768 units sold. Hopefully, the market is starting to shed some of the excess inventory and lean out. Though, I am not quite convinced we are there yet.

While the number of homes sold is up, the average sale price is down 10.44% from $511,437 to $458,036. And even more telling the Avg. Sale Price as a Percentage of Avg. List Price is down from 94.26% to 91.31%. And average Days on Market is up 23.17% from 82 days to 101 days.

So, if you have a house to sell and you are patient, price it wisely, and negotiate you will sell it. I think staging and presentation are more important than ever.

The stats clearly indicate that this is not the time to "try" selling. If you want to sell, be deliberate, and you will sell for higher than the average. I guarantee.

The statistics below come from the MRIS. These are the statistics real estate professionals use to determine how the market compares to the same time last year. the information is deemed reliable, but not guaranteed.