Jonathan Bunn

Who Should Not Consider A Short Sale

original post- linked above

It looks exciting. It looks easy. But skiing is not everyone. The same would be true for buying a short sale.

Though the market is full of short sales, there are few people that are cut out to purchase them. In fact, most people end up bailing out on the transaction before it is ratified and purchasing something else. To help save you a lot of frustration, I have created a list of situations which should discourage you from purchasing a short sale….

1. You have to be a in a home in the next few months. Most short sales take a few months before they are accepted, assuming they are, by the bank. The risk is high that you will still be homeless in a few months.
2. You like to know how far along things are with the bank. Your Realtor can be awesome, but when it comes to their control of the listing Realtor, the asset managers, the negotiator, the seller, the bank, and the response times of these parties… many buyers have been known to loose their minds. Keep in mind (no pun intented) that many of these parties don’t work on the weekend and aren’t concerned in your idle threats..
3. You are an avid Internet MLS shopper. While you are waiting for months while the bank responds, you will begin to fill like and addict who can’t resist the MLS… You will feel like you are missing out on many other options out there. For this reason many short sale buyers move on to other homes before the bank ever responds.
4. You easily loose sleep at night. Short sales are not for the weak at heart. They will cause the average buyers more stress than a weeks worth of work and leave you confused and feeling frustrated in the end.

Who Is Perfect For Purchasing A Short Sale??? The perfect short sale buyer is a very relaxed, take it as it comes person, who is not in a rush to buy a home… If you are this person, then a short sale may be for you. If not, then go for a foreclosure, re-sale, or new construction.

What To Expect When Dealing With The Bank On Bank-Owned Properties

Letting The Cat Out Of The Bag On Short Sales

Every profession has its group of slackers that gives the rest of the group a bad rap... After calling through a list of ACTIVE homes this morning to find that all of them already have contracts on them but still say ACTIVE (deceiving us in to thinking they are available), I decided to create this list.

Top 5 Signs You May Need A New Listing Agent:

1. Your listing agent wins your business by promising you they can sell your home for a high price and right after getting your business they beg you to lower your price.
2. They tell you that marketing your home doesn't matter and they never show you any of their marketing materials except their black and white print out of your MLS sheet.
3. You never hear from them or know what they are doing to sell your home.
4. They make it sound like every contract you may receive is good, safe, and will surely go to closing with no problems.
5. You go to sleep at night wondering why you are paying this agent so much money to do nothing but put a sign in your yard, take lousy pictures, and never keep you updated.

Top 5 Signs You May Need A New Buyers Agent:

1. You find all of your own homes online and they just chauffeur you around to see them.
2. They claim to specialize in the areas you are searching for homes in but they have never seen homes there.
3. They are always showing you homes that do not match the criteria you told them you were search for... like price.
4. They can't explain to you the sales contract you are signing and just encourage you to sign it.
5. You feel obligated to use them because they are a friend, family member, or a referral.

It is important to remember that when you are purchasing a home you are dealing with your hard earned money and assets... Time-lines and experience in this specific market are important. There are a lot of good and hard working agents out there and there are a lot of agents who have no clue what they are doing out there. Do your research... It could cost you a lot more than a little commission if you don't.

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Original Post- Top 10 Signs You Need A New Real Estate Agent

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The Presidental Canidates On Capital Gains Tax- original post

There are many issues that you will not hear addressed by the media or candidates during the debates. However, after some basic research I found where the Presidential candidates stand on the capital gains tax.

Capital gains tax is a tax imposed on a profit made by the sell of a property if the home has not been lived 2 out of the last 5 years. If an owner has lived in a property 2 out of the last 5 years an owner can currently keep 250k of the profit they make on a home tax free. If they owner is married they can keep up to 500k tax free. The current capital gains tax rate is 15%.

For the sake of a fair comparison, I have copied and pasted directly from the candidates sites what their plans are for their this tax which will effect many home owners in this area who at some point hope to make a profit on their homes.

Obama's Plan: Families with incomes below $250,000 will continue to pay the capital gains rates they pay today. For those in the top two income tax brackets- likewise adjusted to affect only families over $250,000- Obama will create a new top capital gains rate of 20 percent.

McCain's Plan: John McCain will maintain the 15 percent rates on dividends and capital gains.

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YOUR HOMES VALUE

Let History Not Repeat Itself- original post

This past week our country made history. We saw one the largest decreases in stock value we have in years and our government signed a 700 Billion Dollar Bailout plan to keep our economy from sinking any further.

I spoke to many lenders, Realtors, and spectators during this time and ultimately came to the conclusion that other than the government not too many people knew the implications of this bill. You begin to get the feeling that you are on a plane and hear a loud noise. Everyone knows that something bad is happening but all you are allowed to know is that you can't leave your seat and the stewardess is going to bring you a complimentary Pepsi while acting like all will be fine.

To assist with all of this co-motion the elections are taking place with both sides magnifying the issues and acting as if these issue would have never happened under their guidance. The truth is, these issues are bigger than that last 8 years of George Bush. Don't get me wrong, this current administration has way overspent. Nevertheless, it was the Clinton administration that re-emphasized the sub-prime lending market to get low income families in to homes they could not afford.

I remind us of this because the finger pointing is out of control. Both parties have created this issue and we as the American people have created this issue. WE HAVE OVERSPENT. Government doesn't force us to run up credit card bills or buy homes. Our greed has gotten the best of us and now we need to fix it no matter who takes office. Remember, government if supposed to be FOR THE PEOPLE.

There have been steps in that direction this year. It is much tougher to get a loan now than it has been in the past. This makes my job more difficult but overall creates a stronger economy. This is a time for American maturity. This is a time to take responsibility for our debt. Maybe you don't need a bigger home. If you can afford your mortgage payments- PAY THEM. Stop walking away and making everyone else clean up your mess. For those who walk away from mortgage payments they can afford, there should be steep penalties and restrictions on them purchasing again.

We can get out of this. The foundation of our economy is strong (no matter what they say), and the sky is not falling.

Stop living in fear of the market. And turn off the news! If more people do this, the market will change. I guarantee it.

Loudoun County Absorption Rates- original post

I was stunned today when I pulled Loudoun's Absorption Rates to find that the inventory has DROPPED AGAIN. Not by much.... Only a .57 drop!

Absorption Rate: How many weeks it would take to sell off the remaining amount of homes in the market if the current sales rate continued as is.

July- 19.05 Weeks
August- 18.45 Weeks

There are two good things to notice here. One is that the inventory is continuing to decrease. Two is that we are seeing signs of market stability that is healthy for both buyers and sellers.

Absorption Rate stats can help you decide if it is a good time to buy or sale. Economist tend to agree that 6 months or more of market inventory is a buyers market.

These stats do not include condos. All information is deemed reliable but should be verified for accuracy.