Brambleton, VA

Today 3 out of 10 real estate transactions never make it to closing! With lending standards more strict and the market more confusing that ever, it is important to have real estate representation from an agent who knows how to protect your best interests. Below are some of the common reasons from the KCM Crew that can kill a deal...

• Appraisal issues– In many markets, we are still seeing declining values. Appraisers are in a difficult position, and with so many transactions (including seller’s concessions to assist buyers with closing costs) values aren’t always coming in at sales prices.
• Short Sales not being approved by the current lender– With so many sellers owing more than their home is worth, buyers’ proposals need to be approved by the lender (who will be receiving less than they are owed). Some of the offers are too low, but often, the lender isn’t local and they really don’t know what the property is worth today. It is important to have a "Certified Distressed Property Expert" working for you in a short sale transaction.
• Bad pre-approvals from the loan officer– Today, loan officers who are not reviewing tax returns, analyzing bank statements, and asking for detailed explanations and documentation on credit blemishes, are truly hurting the customers. Issuing pre-approvals based on the representations of the customer is reckless and a cause for dismay later.
• A lack of transparency – Whether it’s a seller or agent not disclosing property issues, or a buyer trying to sneak things by an underwriter, too many people think they can cut corners. That is not the world we live in anymore. Everything is uncovered. Being honest in the beginning, gives you the best chance to overcome obstacles.

Selling and purchasing real estate will be the biggest transactions of your life. It is important to have real estate representation that reflects that and an agent how knows how to keep these issues from arising. To schedule a consultation, contact me at eric@e4realty.com or 540.454.1551.

The market has stayed pretty steady over the past month, except for the number of active listings on the market. Statistics below are based on second week in November and December...

Active: November - 67 December - 46

Sold Last 30 Days: November - 15 December - 19

Contract Last 30 Days: November - 22 December - 25

Active Rentals: November - 24 December - 26

Rented Last 30 Days: November - 12 December - 16

Active Foreclosures: November - 4 December - 5

Active Short Sales: November - 8 December - 10

Vacant Properties: November - 9 December - 9

This is pretty standard for the winter market. While there is far less property and buyers actively searching for homes, the buyers that are out searching during the winter months are far more serious - that is why the solds/contracts have remained pretty consistent.

I hope everyone enjoys the holiday season and as always, if you have any real estate questions or needs, feel free to contact me at eric@e4realty.com or 540.454.1551.

National Association of Realtors recently release the following report.

They showed that combined sales of single family homes, condos and co-ops increased in EVERY state as compared to the 3rd quarter of last year. Pretty good sign sellers...so don't believe those that say houses are selling, regardless of what state you live!

Hope everyone had a great holiday and enjoyed time with their families! Now down to business...

As expected, the number of active listing on the market has slowed down as we hit the holiday season. However, the month of November did have some surprises. Compared to the last week of September, the last week of November had the following results in 20148...

• Active Listings - September: 72 November: 49
• Sold (30 days) - September: 19 November: 15
• Under Contract (30 days) - September: 20 November: 33

Why the number of active properties on the market and settled homes have slowed, serveral properties more properties went under contract in November than October - great news for sellers! Several buyers are still out there taking advantage of the low interest rates.

The rental market has stayed pretty consistent in 20148.

The number of distressed properties still remain low in the 20148 zip code. There is currently on 2 active foreclosures in the area and 8 active short sales.

If you ever have questions regarding he real estate market, contact me at 540.454.1551 or eric@e4realty.com.

The answer to this is simple...it depends!

I always tell my clients to consult a mortgage lender to go more in depth about questions like these. I am a Northern Virginia real estate expert, but I let my clients know that I am not an expert in the fields of lending, moving, etc. I have made several amazing contacts with experts in a variety of different fields to refer my clients to and guarantee they get the sevice they deserve and that I expect.

That being said...I do know the basics to help my clients understand these questions during a consultation. The following are a few things to consider when determining how much to put down on a house.

• How much do you have in reserves?
• What is the monthly mortgage insurance associated the respective programs?
• What are the current interest rates?

Lending programs, besides 20% down conventional, require a monthly mortgage insurance to be paid. This amount differs based on the program you choose. If you are someone who has a large amount of reserves and are more concerned about the cost of your monthly mortgage payment, it may be best to put down more money in order to eliminate or reduce the additional costs of your monthly mortgage insurance.

However, consider the factors behind this. On a $300,000 loan with today's current rates, additional $10,000 down would decrease you monthly payments by about $50. Remember, interest paid on this $50 would be tax deductible, so the real cost savings is only $38 a month (based on being in a 25% tax bracket).

Instead, if you did not use the extra $10,000 as a down payment, if would remain liquid and provide the following advantages:

1. If rates go up in the future, you could potentially make more interest than you are spending.
2. If you can avoid using credit cards for furniture, home improvements, etc., you can save a bundle on those non-tax deductible interest rate costs.
3. In a world where home values have declined, the more you borrow, the less you have at risk. You transfer the risk of the future value of the home to the lender.

Lending can get very tricky. It's important to have a team behind you that can help you make the best decisions when buying a home. Contact me today at 540.454.1551 or email at eric@e4realty.com. I can promise my team and I will help you make the best decisions from start to finish of your home buying process!