ACCENT Realty Corp

Real Estate anyone?

noreply@blogger.com (D Romero) — Sun, 23 Aug 2009 23:24:00 +0000

Well since my last postings many things have changed in the real estate landscape. My focus will be on those changes and how it affects real estate in Washington DC. We will have commentaries from sellers, buyers, economists, realtors, fsbos, and everything in between.

So stay tuned!

D. Romero

Thursday Links

noreply@blogger.com (D Romero) — Fri, 23 May 2008 00:05:00 +0000

City backs tax sales [baltimoresun.com]
Development in Midtown due tax break [baltimoresun.com]
The high cost of a green dream [cnn.money.com]
Reverse mortgages: Beware the come-ons [cnn.money.com]
Six county high schools among the nation’s best [gazette.net]
Income tax, real estate fee will rise [gazette.net]
Foreclosures mean opportunity for Habitat charity [miamiherald.com]
HUD nominee promises to work hard [examiner.com]
Rates on 30-year mortgages dip below 6 percent [examiner.com]
A New Lease-Purchase on Life [washingtonpost.com]
Profiles in Tenacity: Short-Sale Buyers [washingtonpost.com]
A New System to Prepare for the Next Crisis [washingtonpost.com]
Houses Even Bigger, Scores Way Above Average [nytimes.com]

To buy or Not to Buy- it sometimes depends on the class.

noreply@blogger.com (D Romero) — Thu, 22 May 2008 23:36:00 +0000

To buy or not to buy? This question could be an affirmative yes for many prospective homeowners depending to what school district they will belong to. Recently, Newsweek published a report on the top public high schools across the United States titled "The Top of the Class", and Maryland, Virginia, and the District had 13 high schools in the top 100.

Can you guess which ones they are? Here they are:

16 H-B Woodlawn, Arlington, Va.
32 Richard Montgomery ** Rockville, Md.
48 Clarke County ** Berryville, Va.
55 Langley McLean, Va
58 George Mason ** Falls Church, Va.
59 Wootton Rockville, Md.
63 Bethesda-Chevy Chase ** Bethesda, Md.
64 Washington-Lee ** Arlington, Va.
68 Walt Whitman Bethesda, Md.
73 W. T. Woodson Fairfax, Va.
74 Yorktown Arlington, Va.
75 Walter Johnson Bethesda, Md.
76 Bell Multicultural Washington D.C.
93 Lake Braddock Burke, Va.
96 Winston Churchill Potomac, Md.
97 McLean McLean, Va.

Thursday Links

noreply@blogger.com (D Romero) — Thu, 01 Nov 2007 12:16:00 +0000

Fed May Be Finished Cutting Rates as Inflation Risk Increases [bloomberg.com]
GDP's 3.9% Surge May Be Tough to Match [wsj.com]
Straw poll shows Mont. Co. Council in favor of more fees [washington.bizjournals.com]
New zoning rules could ignite Wheaton projects [washington.bizjournals.com]
D.C. to accept bids to redevelop NW library and school [washington.bizjournals.com]
Fed cuts rates by another quarter point [ft.com]
Helping frantic homeowners [baltimoresun.com]
Making good on a bad real estate bet [cnn.money.com]
For sale: 2 million empty homes [cnn.money.com]
Subprime: Bankruptcy bill faces roadblocks [cnn.money.com]

CANADA TRIP

noreply@blogger.com (D Romero) — Thu, 01 Nov 2007 12:11:00 +0000

For those who have been following my blog I have not written for some time now. Partly is because I went on a trip to Montreal and have recently returned and partly because I have been working on other projects.

As many of you know the real estate market is going through a period of turmoil and uncertainty right now, but one thing is certain in every real estate market there are winners and there are losers. So where do you want to be in the winners circle or the losers circle?

Grasp the opportunities in front of you and don't let today's problems be your downfall tomorrow.

What's better: a foreclosure or a short sale?

noreply@blogger.com (D Romero) — Wed, 17 Oct 2007 03:16:00 +0000

Recently talking with a mortgage broker I was given a short but important lesson about the differences between a foreclosure and a short sale. Here are the main points:

A foreclosure is reported on your credit report as opposed to a short sale.
A foreclosure will prohibit you from buying again until you pay off any judgements and tax liens reported on your credit report and in a short sale you still have to pay off the tax allocation but it helps build your credit.
A foreclosure causes a psychological stigma as opposed to a short sale.

Do you have any other differences between a foreclosure and a short sale? Let us know.

Tuesday Links

noreply@blogger.com (D Romero) — Tue, 16 Oct 2007 12:52:00 +0000

D.R. Horton's Orders Fall 39 Percent on Mortgage Woes [bloomberg.com]
Bernanke Spots Relief in Markets [wsj.com]
Bonus pay [marketwatch.com]
Using a credit counselor [marketwatch.com]
Crystal City's potential future becomes clearer [washington.bizjournals.com]
See-through condos [baltimoresun.com]
Hispanics vulnerable to predatory lending [baltimoresun.com]
Goodbye subprime, hello FHA [cnnmoney.com]
Do-It-Yourself Builders [nytimes.com]
'Tax' on Interest Deductions Gains Support [washingtonpost.com]

Thursday Links

noreply@blogger.com (D Romero) — Thu, 11 Oct 2007 11:53:00 +0000

Home Foreclosures Doubled in September on Loan Rates (Update1) [bloomberg.com]
The United States of Subprime [wsj.com]
Douglas Development trying to bring Whole Foods to Penn Quarter [washington.bizjournals.com]
Housing market to rebound in 2008, economist says [wichita.bizjournals.com]
Condo plan splits Bowleys Quarters [baltimoretimes.com]
Land bank against blight [baltimoretimes.com]
Mortgage applications up 2.4% [cnnmoney.com]
Langley Park project highlights immigrant issues [gazette.net]
Coalition to help avoid foreclosures [miamiherald.com]
Why Renters Need Insurance [nytimes.com]
Proper investments needed to help counteract inflation [examiner.com]

DC Luxury Market Update

noreply@blogger.com (D Romero) — Wed, 10 Oct 2007 14:49:00 +0000

Presenting the newest luxury listings on the DC block:

$8,500,000- 3100 Woodland Dr NW, Former embassy that has been meticulously restored over the past 2 years, grand scale rooms for entertaining. Subdivision: Mass Ave Heights
$8,500,000- 3314 O St NW, One of the grand houses in the Village. Truly one of the grand houses in the Village. Subdivision: Georgetown
$5,995,000- 2216 Wyoming Ave NW, Masterful renovation, embassy sized entertaining spaces, expansive roof patio. Subdivision: Kalorama
$5,499,000- 2346 S St NW, Brick and limestone mansion exemplifies the best of Beaux-Arts architexture. Located on Embassy Row. Subdivision: Kalorama
$4,900,000- 3232 Ellicott St NW, Stately, sunny stone colonial with circular driveway with spectacular garden and pool. Subdivision: Forest Hills.
$4,100,000- 2801 Tilden St NW, Sited on 1.25 acres with breathtaking views of Rock Creek Park. Subdivision: Forest Hills
$3,999,000- 2241 Bancroft Pl NW, Classic Georgian offers amazing entertaining spaces, and beautifully landscaped private grounds. Subdivision: Kalorama.
$3,295,000- 5054 Millwood Ln NW, Rare find! 1/2 acres lot with enchanting, wooded grounds and terraced stone patio. Subdivision: Kent

Pic of the Week

noreply@blogger.com (D Romero) — Wed, 10 Oct 2007 14:19:00 +0000

Black Hill Regional Park, Germantown, MD. Pic by D Romero.

Tuesday Links

noreply@blogger.com (D Romero) — Tue, 09 Oct 2007 20:10:00 +0000

Fed members all backed bold rate cut [reuters.com]
A New Mortgage 'Cop'Targets Wall Street [realestajournal.com]
Washington-area condo sales drop 50 percent [washington.bizjournals.com]
FDIC to mortgage servicers: Freeze ARM rates [cnnmoney.com]
Mortgage slump hits home decor industry [miamiherald.com]
$6 Million for the Co-op, Then Start to Renovate [nytimes.com]
Alexandria condos go on auction block [examiner.com]
Van Metre Homes is Highest in Customer Satisfaction and Design: Gains Top Rankings in Washington, D.C. Market in J.D. Power and Associates Studies [examiner.com]
The Math Behind Your Home Loan [washingtonpost.com]
Before There's Smoke, check your insurance policy [washingtonpost.com]
A Mortgage for Richer or Poorer [washingtonpost.com]
Denise Richards expands her world [latimes.com]

Friday Links

noreply@blogger.com (D Romero) — Fri, 05 Oct 2007 12:08:00 +0000

Economy adds 110,000 Sept jobs [reuters.com]
Fed's Kohn: housing, credit woes bode weakness ahead [reuters.com]
Convert LoansTo Fixed Rates,FDIC Head Says [wsj.com]
Fight for land near Nats' stadium goes to extra innings [washington.bizjournals.com]
Financial services firms establish mortgage program in D.C. [washington.bizjournals.com]
Arena Stage gives Crystal City role of temporary home [washington.bizjournals.com]
Blacks buying in home slump [baltimoresun.com]
Quick and dirty tour [baltimoresun.com]
Mortgage brokers urge fair new rules [baltimoresun.com]
Steps to take for getting the best deal on a new house [baltimoresun.com]
A beverly hills star [baltimoresun.com]
Subprime: Bailout backlash [cnnmoney.com]
Uncertain future for Bethesda rec centers [gazette.net]
Project highlights immigrant issues [gazette.net]
Flipping Slows, but Landlords Continue to Raise Rents [nytimes.com]
Consumer Confidence Improves in October [examiner.com]
Help Is Available To Lower The Costs [washingtonpost.com]
Pr. William Immigration, Housing Ills Seen as Linked [washingtonpost.com]

1031 Exchanges

noreply@blogger.com (D Romero) — Thu, 04 Oct 2007 13:11:00 +0000

For those thinking of selling their investment properties there is a tax law that can help you defer paying taxes on the gain created from the sale of those properties to a later date: a 1031 Exchange.

A 1031 exchange, also known as a Starker Exchange or a Tax Deferred Exchange, is an exchange of property for other like-kind properties. It usually requires a qualified intermediary that holds the sale proceeds for a short period of time while the taxpayer indentifies other like-kind properties of equal or greater value than the value of the relinquished property. All the net proceeds are then used to purchase the future replacement properties and once the properties are sold the taxpayer is then liable for the deferred gain.

There are set time limits for an exchange to occur successfully. The first being the identification period of the replacement property. An owner has 45 days to identify the replacement properties and an additional 135 days to go to settlement. If these time periods are not met than the exchange fails and the taxpayer will have to pay any taxes arising from the sale of the relinquished property. The taxpayer can identify 3 replacement properties or more as long as the value of these properties does not exceed twice the value of the relinquished property. The properties identified must be for trade or business use and not real estate for personal use even though later on it can be converted to personal use.

What is the difference between a condo and a co-op?

noreply@blogger.com (D Romero) — Thu, 04 Oct 2007 11:52:00 +0000

Manhattan is 80% co-ops and 20% condos while DC is predominantly condos. And even though from the exterior both a condo and a co-op can look the same they are two completely different creatures when it comes to ownership, financing, and property taxes. So what are some of the differences between a condo and a co-op?

Ownership: The type of ownership a condo is fee simple or the same as a house while in a co-op you own shares of stock in the cooperative corporation

Property Taxes: In a condo each unit owner is taxed separately while in a co-op you pay typically lower taxes

Financing: It is easier to obtain financing for a condo than a co-op. A co-op has fewer lenders and usually requires additional documentation such as financial statements

Tax Deduction: The owners of condominiums have the same tax benefits as if they owned a house while co-ops are more complicated

Monthly Assessments: A condo includes maintenance and some utilities while co-ops include maintenance and property taxes

Other differences to consider when buying a condo or co-op is that condos are easier for resale than co-ops and co-ops can accept or reject applicant owners or tenants based on their financial and personal qualifications at their discretion.

DC Looking more like New York City?

noreply@blogger.com (D Romero) — Wed, 03 Oct 2007 14:42:00 +0000

Before you buy in Baltimore understand ground rent.

noreply@blogger.com (D Romero) — Wed, 03 Oct 2007 12:53:00 +0000

The first time I heard of ground rent I had no clue what it was and since most of my business was outside of Baltimore City I really didn't need to know. In the last couple of years many investors and real estate speculators have been buying up many of the properties in Baltimore City without understanding the concept of ground rent.

Ground rent is a form of real estate ownership where the land is owned by one entity but the real property is owned by another entity. This information should be disclosed by the seller prior to buying the property. The amount of ground rent is stated in the original property lease documents, is paid biannually and can be redeemed by law if requested.

The purchase price of the ground rent is determined by taking the annual ground rent and multiplying it by the redemption rate usually between 0.04-0.12 depending on the year the lease was created. For example if the annual ground rent is $150 and the lease was created June 1, 1977 the redemption rate would be 6% and the cost would be $2,500 (150/6% = $2,500). Properties with an original lease dated before July 1, 1982 have a 6% redemption rate and all others have a 12% redemption rate.

FHA Sturring Up Another Affordability Crisis

noreply@blogger.com (D Romero) — Wed, 03 Oct 2007 12:18:00 +0000

Last week the Federal Housing Administration ruled against seller assisted downpayment programs such as Nehemiah and AmeriDream. FHA cites poor loan performance and higher sales prices to borrowers as their reasons for discontinuing them. The ruling will go into effect November 1 of this year.

The Nehemiah Program and AmeriDream provide much needed relief to first time homebuyers by assisting them with the standard 3% downpayment required by FHA. From my eight years in real estate I can definitely attest that the number one reason people do not purchase a home is lack of a substantial downpayment--in this region we could be talking about $10,000 to $20,000.

Nehemiah and AmeriDream believe that HUD is taking the wrong course of action at a time when all other types of financing has dried up and are seeking to overturn the decision in courts.

What is your opinion regarding the FHA ruling? Are you for it or against it?

More Disclosures on the Way

noreply@blogger.com (D Romero) — Tue, 02 Oct 2007 14:42:00 +0000

In a move to appease the hunger of consumers and government officials for more disclosures WaMu, the sixth largest home lender by volume, is mandating that mortgage brokers that do business with them provide proof that they have disclosed the terms and conditions under which the client obtains a home loan. The disclosures must contain the loan amount being financed, the loan terms including monthly payment, interest rate, whether the rate is adjustable and if it has any prepayment penalty.

In addition, the National Association of Hispanic Real Estate Professionals (NAHREP) has also established a set of ethical principles, called a code of trust, to protect buyers who lack the ability to read, write, or speak the English language. This code calls for stronger licensing requirements, more industry education, and a bilingual home buying guide.

According to NAHREP many latino borrowers that could have gotten a prime loan were not offered one and were encouraged to take out larger loan amounts than they could afford. Foreclosures for the hispanic community are expected to reach $25 billion in 2007 and $52 billion in 2008.

Also the Maryland Association of Mortgage Brokers (MAMB) has adopted a new Code of Ethics and Professional Standards/Best Lending Practices for their members. This Code of Ethics will govern 800 of the 10,000 licensed brokers and loan originators in the State of Maryland. The members of MAMB will be required to be honest in their business dealings and provide accurate information, explain the loan program being offered to the consumer and provide them with alternative loan programs if applicable.

Tuesday Links

noreply@blogger.com (D Romero) — Tue, 02 Oct 2007 11:30:00 +0000

Should You Buy Into a CommunityWith a Homeowners' Association? [realestatejournal.com]
U.S. consumers' sentiment weakens [marketwatch.com]
City rise in population hailed as turnabout [baltimoresun.com]
Md. ground rent inventory begins [baltimoresun.com]
Architects return to bring charm to Charles North [baltimoresun.com]
Bankruptcy 'tweak' could save 600,000 homes [cnnmoney.com]
Free help to stop foreclosure [cnnmoney.com]
WaMu: Mortgage brokers must disclose more [cnnmoney.com]
Write-Downs by Big Banks Spark Rally [nytimes.com]
Can These Mortgages Be Saved? [nytimes.com]
Rural Waterfront Oasis That’s Not Far From Town [nytimes.com]
Starwood’s Founder Makes a New Splash [nytimes.com]
Borrowers Are Feeling Some Heat, but It's Not a 'Mortgage Meltdown' [washingtonpost.com]
If You Buy Now, Will You Lose Money? [washingtonpost.com]
O'Hurley waltzes into the home market [latimes.com]

Weekend Edition

noreply@blogger.com (D Romero) — Fri, 28 Sep 2007 15:16:00 +0000

Don't know what to do this weekend? Here are some events that might interest you.

BALTIMORE

Street Beat Festival, Sunday, September 30 at Federal Hill Park, Live Music including jazz, rock, blues, and salsa on three stages.

Baltimore Book Festival, through September 30 at Mount Vernon Place

Baltimore Orioles vs. New York Yankees, through September 30 at the Oriole Park at Camden Yards.

MONTGOMERY COUNTY

Magical Montgomery, 1-7 pm Saturday, September 29 at the Silver Plaza Ellsworth Drive between Georgia and Fenton Street.

Rockville Music Festival, noon-6 pm Saturday, September 29 at the Rockville Town Center North Washington St and Middle Lane.

Maryland Renaissance Festival, through Oct. 21 at Crownsville Fairgrounds

DC

Fiesta DC, 11 am - 7 pm Sunday, September 30 at Mount Pleasant Street between Irving St and Park Rd.

DC United vs. Toronto FC, 7:30 pm Saturday, September 29 at RFK Stadium

MOVIES OPENING THIS WEEKED

The Kingdom
The Game Plan
Feast of Love

Real Estate at Bargain Prices?

noreply@blogger.com (D Romero) — Fri, 28 Sep 2007 14:55:00 +0000

If you've waited to buy real estate at a bargain price the wait is over! Hudson and Marshall, one of the nation's largest real estate auction firms, will be selling off more than 250 properties in the DC Metro Region on October 6 at the Hilton Crystal and October 7 at the Hilton McLean Tyson.

Most of these properties are located in Woodbridge, Manassas, Sterling, Centreville, Chantilly, Reston, Burke, Virginia and a few in DC and Maryland.

For more information visit their web site: http://www.hudsonandmarshall.com/.

Absorption Rates & The DC Condo Market

noreply@blogger.com (D Romero) — Fri, 28 Sep 2007 03:23:00 +0000

What is an absorption rate and why is it so important in real estate? An absorption rate is the percentage of the inventory sold in a given period of time. For example let's take a look at the condo real estate market today.

Figures obtained from the multiple listing service indicate the following:

Price/ # of condo units on the market

Less than 100K: 003
100,001-200K: 222
200,001-300K: 305
300,001-400K: 237
400,001-500K: 180
500,001-600K: 149
600,001-700K: 082
700,001-800K: 042
800,001-900K: 026
900,001-1MIL: 010
1,00,001-2MIL: 040
2,000,001+ : 015

TOTAL: 1,311

Currently there are 453 condos under contract and in the last 30 days 225 have been sold. At this rate the condo real estate market in DC has approximately 6 months left to exhaust all the inventory in the market.

Another way of looking at it is by determining the absorption rate. In this case the absorption rate would be 17%. A percentage above 25% indicates a sellers market and below 15% indicates a buyer's market and anything in between would be considered a balanced real estate market. You be the judge. Is it a buyer's market, seller's market or do we have a balanced real estate market in DC, MD & VA?

Pic of the Week

noreply@blogger.com (D Romero) — Thu, 27 Sep 2007 13:59:00 +0000

Seafood Market, Washington DC. Photo by D Romero.

Thursday Links

noreply@blogger.com (D Romero) — Thu, 27 Sep 2007 12:45:00 +0000

Live Nation strikes deal for Silver Spring concert hall [baltimore.bizjournals.com]
Developers vying to build in Baltimore's Lauraville [baltimore.bizjournals.com]
Jobless claims unexpectedly fall 15,000 [reuters.com]
Retirement Saving for the Self-Employed [morningstar.com]
Real Estate Investing [morningstar.com]
Back to work [marketwatch.com]
County opens 25-acre park on Wilson Point waterfront [baltimoresun.com]
Maryland gains 3,300 jobs in August [baltimoresun.com]
Credit rating firms grilled on Capitol Hill [cnnmoney.com]
The Boats. The Birds. The Views [washingtonpost.com]
Group Aims To Protect Latino Borrowers [washingtonpost.com]
From Custom to Commonplace [washingtonpost.com]

An Option Arm Anyone?

noreply@blogger.com (D Romero) — Tue, 25 Sep 2007 13:33:00 +0000

In the previous sizzling housing market many buyers got an Option Arm without really understanding it. This was a popular loan product because it was misunderstood. Many loan officers would tell their clients that they can buy a $500,000 house, even though they could not realistically afford it, and pay a monthly mortgage of $2,000 excluding taxes and insurance (taxes and insurance was usually omitted by the loan officer to make their payment seem really low). In theory it all sounded good--too good to be true as many homeowners found out.

For many, the ability to live in a home that they would otherwise never afford was a dream come true. This was their dream home and this loan made it possible for them to live in it, at least for a short time. In order for a typical homebuyer to get an option arm the lenders usually required a 5-10% downpayment, good credit score (no less than 620), and good credit history. As long as you met these conditions you were golden for an option arm.

Many loan officers offered these type of loans to their clients when they themselves did not really understand the loan program. First of all they only explained the initial interest rate of 1% and did not bother to explain that this rate was fixed only for the first couple of months and later would change on a monthly basis.

This loan program also gave the homebuyers several payment options. They could pay the fully amortized payment, principal plus interest, interest only payments, just interest, and the minimum payment, less than interest. Which one would you choose? I thought so!

Most homeowners would only make the required minimum payment, which by the way is not the minimum it is less than the minimum payment, therefore causing their loan to be negatively amortized.

Usually at the end of the first year a homeowner would get a statement from the lender indicating their new payment for the coming year. This new payment was calculated on the new loan amount, which for the most part was more than what they initially paid.

Another important factor in an option arm is the margin. The margin was crucial to this type of loan because the way that the lender calculated your real interest rate was by adding the margin to the current libor index (MARGIN + LIBOR). This number was usually in the high 7's or 8's. And the higher the margin for the lender the more money the loan officer made!