Northern Virgina Real Estate Podcast with Diane & Brian Hagarty

Northern Virginia Real Estate Market Update for July 2014

info@hagartyrealestate.com (Diane and Brian Hagarty) — Fri, 25 Jul 2014 15:18:00 -0700

There are many great Northern Virginia area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (703) 995-9449 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today we are going to talk to you about some interesting items that have come across the wire, both nationally and in Northern Virginia.

More homeowners are tapping into their home's equity and treating their castles like cash registers. Borrowers took about about 230,200 home equity lines of credit in the 1st quarter of 2014, which amounted to about 23.4 billion dollars.

At the same time, we are also dealing with a lot of sellers right now who are downsizing their homes. It's an interesting thought process, where on one hand you have a lot of folks who are taking cash out of their homes, and on the other hand a lot of people are of the mindset where they are reducing their stress and liability by downsizing

In late July, specifically in Northern Virginia, we are seeing homes on the market a little bit longer, around 30 or more days. With that being said, next week we will be talking about some information that you should be aware of. If you are thinking about refinancing, please reach out to our fantastic preferred lender, Melissa Hoover at (703) 928-7074 or MHoover@HighlandsMortgage.com. If you are thinking about buying or selling, please give us a call. We wish you the best and hope to talk to you soon!

Real Estate Agents Outperform Online Services Every Time

info@hagartyrealestate.com (Diane and Brian Hagarty) — Wed, 30 Apr 2014 10:12:00 -0700

There are many great Northern Virginia area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (703) 995-9449 for a FREE home buying or selling consultation to answer any of your real estate questions.

How Accurate are Online Home Estimates?

A lot of consumers (nearly 97%) are utilizing the internet to search for their homes. Online websites such as Trulia and Zillow offer a service that is very convenient and easy to use, but there are some big disadvantages to the services they provide.

I often get clients here in Northern Virginia telling me that their property was worth such-and-such on Zillow. What these websites do is use algorithms from a variety of sources, with the goal of finding only a ballpark estimate.

For example, I recently sold a Northern Virginia property in 7 days, and the house sold for $409K. Interestingly enough, Zillow said that the same property was worth $391K. Zillow also says that this property is still on the market, but I sold it nearly a month ago.

The bottom line is that these websites are neither accurate nor updated. Another big factor is that they are machines that do not factor in the motivations of the buyer.

Only real estate agents can give you accurate and updated information on available properties, and only real estate agents can actually talk to you and understand your motivations for buying a home.

Hands down, a real estate agent beats an online service every single time. This is why it is important to speak with an agent when you're buying a home.

Please contact us via phone or email and we would love to assist you in finding real estate in Northern Virginia.

Download our Mobile App: This is Your Chance to Win $50,000!

info@hagartyrealestate.com (Diane and Brian Hagarty) — Wed, 26 Feb 2014 14:38:00 -0800

The Keller Williams Real Estate app is easy to use and makes finding homes on the go much easier. You can refine your search according to the features you’re looking for in a home, as well as narrow down a price range. This handy search engine is just one more way we would like to help you find a property.

Aside from the ease of use and market advantage this app will give you, it will also give you a chance to win $50,000 dollars. Here are my download instructions:

Make sure to enter the code KW2ENXGBY when prompted.
From your mobile device, click the following link or visit the mobile app store: http://app.kw.com/KW2ENXGBY.
You can also text the code KW2ENXGBY to 87778.
Again, make sure you enter the code KW2ENXGBY to be entered for the $50,000 giveaway.

This application is free to download so please use it as resource when searching for a home. As far as the $50,000 dollar prize, a winner will be announced on or around April 9th, so stay tuned.

Good luck!

Selling Your Home Now: List Before Prices Stabilize to Ensure Top Dollar for Your Home!

info@hagartyrealestate.com (Diane and Brian Hagarty) — Wed, 12 Feb 2014 14:47:00 -0800

Selling Your Home Now: List Before Prices Stabilize to Ensure Top Dollar for Your Home!

As we progress through February, sellers have been asking me if they should sell their home now. Yes! Now is the time to sell if you have to sell within the next 30-120 days. This needs to be done sooner rather than later.

As I have just stated, don’t wait to list! The reason being is that there has been 208 new homes enter the market in the last three days and this trend of oncoming inventory is going to continue. With more competition or inventory on the market, prices may stabilize as to where sellers might not see the prices they want to receive for their homes.

The bottom line is that you need to call us today! Diane or I will come out to home and give you a free valuation on your home. This is otherwise known as a pre-listing appointment to tell you what we think we could sell your home for. We want to you to be the smartest person in the room and based on what we come up with, you can decide whether or not to sell your home.

Stay tuned for more great information next week! Our goal is to guide you in the home selling process. Thanks and have a great day!

I’m Excited About 2014 and You Should Be Too!

info@hagartyrealestate.com (Diane and Brian Hagarty) — Thu, 9 Jan 2014 08:07:00 -0800

I’m Excited About 2014 and You Should Be Too!

Happy New Year! I hope you had a wonderful holiday and Christmas season. Today I wanted to quickly go over what the real estate market will look like in 2014. As far as what happened in 2013, a couple highlights were the fact that across the county we saw a 12.5% in values, which is great news. Zillow and other real estate professionals, including myself, are thinking 2014 will bring an additional 3-6% increase in values. That may not be as hot as 2014, but we’re still going in the right direction.

In December 2012, there were 971 closings; fast forward to March 2013 and there were 1,496 closings. As the spring market approaches, we see more homes coming onto the market. In July 2013, we saw 2,496 homes that closed in Northern Virginia. If you’re going to be selling your home in 2014, give us a call and we will set up a pre-listing appointment, learn what your goals and help you achieve those goals.

Stay tuned for more valuable information so you can make informed decisions in the market. Thanks and have a great day!

Happy Holidays and Thank You!

info@hagartyrealestate.com (Diane and Brian Hagarty) — Fri, 20 Dec 2013 08:04:00 -0800

The holidays are approaching and with that comes the special time of year where we want to give thanks and show love to our family, friends and people who have helped us this past year. I hope my family, clients and business partners feel the same way and offer thanks to the people who have made you the person you are today.

I want to wish you all a happy and safe holiday. Thank you!

Why You Should Hire a Buyer’s Agent

info@hagartyrealestate.com (Diane and Brian Hagarty) — Wed, 4 Dec 2013 13:07:00 -0800

Why You Should Hire a Buyer’s Agent

Today I wanted to talk to you about whether or not you should hire a real estate agent when going to buy your next home. Right now, I am in Aldie where there are new construction properties being built. A good buyer’s agent will preview and study the market, know what is on a resale basis and also what is new and coming onto the market. It is my job to go through model and existing homes to show you what specials and financing builders are providing and compare the information to existing properties that is for sale. As a buyer’s agent, I will keep you informed to make the best decision on your next home purchase.

Thanks and have a great day!

How Can You Determine the Value of Your Home?

info@hagartyrealestate.com (Diane and Brian Hagarty) — Fri, 22 Nov 2013 08:56:00 -0800

How Can You Determine the Value of Your Home?

When going to sell your home, it can be difficult to determine the value of your home. We will set up what is called a “pre-listing appointment” where we will look your home and I will also look through other homes on the market to get a sense of the features and benefits of those we will be directly competing with. When comparing prices of other homes to yours, you need to compare the price that it sold for; that’s exactly what an appraiser will do. The active homes don’t establish market value.

Have a great day!

Another House Under Contract!

info@hagartyrealestate.com (Diane and Brian Hagarty) — Fri, 8 Nov 2013 14:10:00 -0800

Another House Under Contract!

I am happy to tell you that in 13 days, we have another house under contract! Now is a great time to sell because even in the fall, homes are flying off the market. Please don’t hesitate to contact us if you are on the fence about selling; now is the perfect time!

What is Your Motivation to Sell?

info@hagartyrealestate.com (Diane and Brian Hagarty) — Wed, 23 Oct 2013 08:42:00 -0700

What is Your Motivation to Sell?

With autumn in full swing and the holiday season rapidly approaching, many people are contemplating whether to move now or wait until spring. Unfortunately, there is not a universal answer. The seller’s needs, motivations and goals all play into their decision. For example, if the seller has family in Florida and there is nothing tying them to the current area, they are apt to list the home now.

My thought process is since inventory levels are still extremely low and interest rates are below 4%, right now is an outstanding time to sell their home. If the seller is looking to sell but has the ability to wait until spring, there is the potential to get more value out of it then. The only challenge with waiting until spring is that you may be competing with only 30-40 houses now versus 200-300 houses in the spring. With that amount of competition, you may not get the price you want. My recommendation to sellers will be based on your motivation. When we find your needs and desires, we mold that into our marketing plan, list your house and get it sold.

The Truth About Interest Rates

info@hagartyrealestate.com (Diane and Brian Hagarty) — Tue, 17 Sep 2013 07:10:00 -0700

The Truth About Interest Rates

Hey, guys! Thanks for visiting my real estate blog!

Our preferred lender Jeffery Nielsen passed along a chart about interest rates to me. As many of you know interest rates have increased over the past couple of months. Today, I wanted to show you this graph and help put our rising rates into perspective.

This chart goes all the way back to 1983 through today. In 1983 interest rates were at 13.24 percent. In 1990 they were at 10.13 percent. In 2001 they were 6.97 percent. Finally, in the first quarter of 2013 interest rates were at 3.68 percent.

So, while we are seeing a slight increase from the beginning of this year, rates are still historically low. If you are thinking about buying a home, do it now!

If you want to get started looking for a home, give me call!

Median Sales Price Gains in the Real Estate Market

info@hagartyrealestate.com (Diane and Brian Hagarty) — Wed, 14 Aug 2013 11:58:00 -0700

Welcome back to our video blog! We are going to be talking about July’s numbers and what has happened in last 30 days versus the past year and how it affects you!

So, there has been continued increases in sales and double digit growth in new listings for the fourth straight month. How exciting is that? That mean our market has bounced back!

The demand in our market is still strong, especially in the summer months. Inventory has continued to climb but the pace has slowed due to new listings. High demand and low supply has contributed to the median sales price increases. The year to date median price is nearly 10% higher than it was during the same period in 2012.

While the number of new contracts and sales have decreased since June, this is typical summer patterns and the decline was smaller than it was in past year. Increasing prices may encourage people to sell their home, with us!

This is exciting information!

Falls Church City is number 1. From July 2012 to July 2013, the year over year increase is 23.5%; that’s huge!

Fairfax City’s median sale price in 2012 was $425,000; in 2013 it was $487,500. That’s a 14.7% increase.

Prince George experienced a 19.5% year over year increase!

In any event, when you are thinking about buying or selling and want a free consultation, we’d be happy to do that for you! We can find out how much your home is worth!

Northern Virginia July Housing Market Update

info@hagartyrealestate.com (Diane and Brian Hagarty) — Wed, 3 Jul 2013 14:15:00 -0700

Thanks for watching my video! I’m sure you’ve heard a million times how crazy the market is! A recent report from Redfin, though, shows a slight slowdown in the market as inventory has increased.

Redfin ranks 22 markets across the country by the percentage of homes that went under contract in 14 days of their debut. In May, 32% of homes went under contract in two weeks. That’s a great number, but it’s a drop from April by 1.2%. That’s the largest percentage drop since December of 2012.

Inventory has also increased. It rose 4.2% from April to May and 6.4% from March to April. The increase in inventory indicates it may be contributing to the market slow down.

So what does this mean? Homebuyers who are already in the market are becoming more aggressive to buy a home. Interest rates have been increasing to right below 5%. This is still a great rate, though! I always tell people about my parents who bought their home in 1978 at an 18% interest rate! 5% is still an amazing rate!

So call me so we can get started on finding you your new home!

3 Reasons Overpricing Your Home is a Bad Idea

info@hagartyrealestate.com (Diane and Brian Hagarty) — Fri, 7 Jun 2013 13:42:00 -0700

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We’ve all seen them – homes that are on the market and priced so high that one wonders what decade the owners were comparing their home value to. But if you think about it – the goal of these people is to end up with more money in their pocket at the end of the day. The truth is that when sellers price their home for more than what the market dictates it is worth, there are some pretty dire circumstances. Here are three reasons why you should shy away from pricing your home too high, instead making a strong effort to price it effectively.

Buyers Don’t Like to Deviate Too Much From the Asking Price

Whether because of perceived rigidness on the part of the sellers or to save themselves the embarrassment of their offer being rejected, many buyers shy away from bidding on homes that are overpriced. They have no idea of the reason you may have priced your property so high and the last thing they want to do is get tangled in a bidding tug of war only to be the loser at the end of the day – so they don’t make an offer in the first place.

There is a Misconception That Sellers Knows Their Home is Overpriced

Thinking that the sellers deliberately have overpriced their home, many buyers feel that if the seller is willing to accept a lower value then they just priced the home accordingly. This is a turn off to serious buyers so rather than mess with it they move on to other properties and an offer for the overpriced home never makes it to the table.

Buyers Assume That Previous Offers Have Been Rejected By the Seller

A home that is priced higher than it should be makes the impression that the seller is not willing to budge. Buyers take one look at such properties and assume that other offers were probably made based on the property’s fair market value but the seller likely leaves no room to negotiate. In actuality, these homes almost never receive offers, leaving the seller in the dark and buyers to move on to other properties.

The single biggest financial disadvantage of listing a home too high is that it won’t sell and the seller will either have to channel more money into the home to get some offers on the table or they will have to reduce the price to get it sold. The interesting thing is that the reduced price is often lower than what would have been the asking price had the home been priced effectively in the first place.

Homeowners that end up pricing their home too high usually spend thousands of dollars more than they were trying to save in the first place. By practicing our tips and remaining aware of the reasons that overpricing is the worst thing you can do, you can sell your home for a great price instead of being one of the last houses on the block yet to sell. To learn more about great pricing strategies visit your Realtor to get customized, professional consultation. Nothing beats working with those that know the industry well!

TIPS ON HOW TO PRICE A HOME

* Do your homework to find the current home value of your home. A Comparative Market Analysis (CMA) is best done by a professional Realtor and also you can get an appraisal done – something that will help in the lending process plus as you try to justify your selling price)

* Give your home the TLC it needs so it is an attractive catch to potential buyers. That’s a great way to justify your price. If you can’t get to the items that need fixing or if you would rather leave the aesthetics to your buyers’ so they can cater to their own tastes once they move in, be sure to reflect that in your price.

* Don’t get caught up in old prices that are no longer relevant in today’s buyer’s market. Price your home based on today’s statistics and be prepared to corroborate the figure with current market data that supports your number.

Homebuyers: 5 Warning Signs You’ve Got a Bad Agent

info@hagartyrealestate.com (Diane and Brian Hagarty) — Mon, 13 May 2013 11:27:00 -0700

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If you’re like most homebuyers, you’re probably unfamiliar with the home-buying process, so you tend to second-guess yourself if your agent fails to meet your expectations. Are you being high maintenance, or is this just the way business is done? Take a look at this list of five red flags you could encounter as you shop for a home. If you run into any of these, the problem isn’t you—it’s your agent.

1. Communication Issues
One of the most common complaints homebuyers have about their real estate agents is that they can’t get in touch with them easily. As the housing market heats up, it’s becoming more important to move quickly when you find a home you’re interested in. If your agent isn’t responding to you in a reasonable amount of time and it’s costing you home-buying opportunities, you and your agent are missing out!

2. Power Struggles
It takes a certain level of confidence to walk with homebuyers through one of the most expensive purchases they’ll ever make, but that doesn’t mean your real estate agent can forget that you’re the boss. An agent who pressures you to consider homes that are out of your budget or pushes you to accept a price that’s too high may be more interested in their commission than in helping you find a home you can afford.

3. Lack of Leadership
The opposite side of that coin is an agent who agrees with you on everything and doesn’t offer any guidance. You want an agent who can give you honest advice based on their research and experience—even when you may not fully agree. An agent who’s too wishy-washy may not have the experience you need to negotiate a good deal on your new home.

4. Abundance of Attitude
As we mentioned, you want your agent to have confidence in their ability to do a great job for you, but that shouldn’t translate into rudeness. No matter how many questions you have or how basic they may be, your agent should have the patience to answer each one without a lot of confusing jargon. You should also be able to trust your agent to behave professionally on your behalf. Remember, you don’t have to put up with attitude to get a great real estate agent.

5. You’re Getting Nowhere
If you’ve been working with your agent for months and aren’t any closer to buying a home than when you started, that’s a big problem. Admittedly, you could be contributing to the problem if you’re being too critical of the homes your agent shows you. But if your agent isn’t showing you homes at all or is showing you homes that you’ve said aren’t right for you, you’re wasting time. It may be time to hire a new agent.

Introducing the Beautiful 3014 Fox Mill Road in Oakton, VA

info@hagartyrealestate.com (Diane and Brian Hagarty) — Mon, 22 Apr 2013 08:19:00 -0700

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There are some homes that just have it all and this is one of them. As you approach the majestic 5-acre wooded expanse, you’ll immediately feel as though you’re in a peaceful retreat – that you can call home!

The gorgeous colonial-style house highlights custom features such as an outdoor gazebo off the master suite deck, private hot tub, a premium kitchen and a very large, open foyer flanked by a gorgeous staircase. This house is brimming with attention to detail with all those high-end finishes you know, you love and you expect in an estate; details like crown molding, custom fireplaces, wall accents in the formal dining room and more.

From the moment you enter the home, you’ll feel comfortable and at ease in its large rooms and well laid-out floor plan. With oak floors throughout the home, a large great room that features vaulted ceilings, finished basement and more – this home is perfect! And like the other rooms in the house, the huge master suite is also spacious with vaulted ceilings plus a walkout deck.

The large kitchen features solid oak cabinets, granite counter tops and a conversation-flowing center island – not to mention a plethora of cabinetry and storage space.

Outside, you will feel right at home yet among the peaceful surroundings of beautiful mature trees and lush landscaping yet just minutes from highways 66 and route 50.

Sound intriguing? Wait till you see it. Call us today to schedule a tour of the home.

(703) 995-9449

How Soon After a Short Sale Can I Buy a Home?

info@hagartyrealestate.com (Diane and Brian Hagarty) — Fri, 15 Feb 2013 11:32:00 -0800

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Contrary to popular belief, a short sale does not have the same impact as a foreclosure when it comes to your credit outlook and buying another home. It turns out that with FHA loans you can typically get into another home just two years or so after a short sale. You do have to have an approved hardship such as divorce, job relocation or death. This does not apply to anyone merely trying to take advantage of the distressed sale market.

Homeowners Should Stay Current On Payments, Despite a Short Sale

The single most important thing to keep in mind is how you treat your debts leading up to the short sale. As long as the preceding 12 months are handled with care and all payments are up to date, most loan officers and underwriters will not have a problem with lending you money again.

Distressed Homeowners Need to Put a Plan of Action Into Place to Rebuild Credit

It’s important to have a solid plan in place. But even then, many homeowners are forced to stop making payments on their home, which leads to short sale or worse, foreclosure. If that were to happen the next step is to work hard at rebuilding your credit. This is where it can take anywhere from two years or more to get back into a home. The variance comes in a couple different areas. First, if you have some money to put down on a home it will likely increase your chances of being able to borrow after a short sale or foreclosure. With a conventional loan if you have 20% of the purchase price to put down, you can reasonably expect to move in 2 years after a foreclosure. It will be 3 years if you have 10% to put down and so on.

Creditors Will Scrutinize Those Credit Scores

Another factor is your credit score. Many people are able to maintain a good credit score despite being in situations of financial hardship. This works to their advantage when they go to buy another house.

The most critical piece to keep in mind is to maintain your payments and not be late on anything – even if you are facing short sale or foreclosure. Second, work to develop a game plan and then do whatever it takes to achieve your plan of action. For more information on this or anything else about a home in distressed situations, call your mortgage broker today.

One promising development that will also impact homeowners opting for short sale to relieve their financial hardship is that the Mortgage Forgiveness Debt Relief Act has been extended for another year. There had been much speculation as to whether or not this would happen in 2012 with the deadline the last day of the year but at the very last minute Congress decided to extend this benefit. Instrumental in helping struggling homeowners to get back on their feet, the Act provides tax relief by waiving the tax liability on discharged debt that would otherwise be considered income.

As always, we welcome the opportunity to serve you with this – and any other real estate concerns you may have. Contact us today so we can begin making your real estate dreams become a reality!

Understanding the Difference Between Online Resources and a Realtor When Pricing Your Home

info@hagartyrealestate.com (Diane and Brian Hagarty) — Thu, 17 Jan 2013 14:26:00 -0800

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The Internet can be a great resource for a host of things centered on buying or selling your home but in some cases, the most you can expect to gain is a basic understanding of things. For something as serious and important as pricing your home to either value it or sell it, relying on the Internet can only go so far. Here we’ve outlined some key differences between the figures you will yield from online sources versus those that have been compiled by your local Realtor.

ACCURACY IS VITAL
In today’s market especially, accurately pricing your home to sell is essential. With it being a buyers’ market, you will have to gain a solid understanding of allfactors that contribute toward your property’s value. There can be negative repercussions of pricing a home either too low or too high. One such scenario is if there was a seasoned buyer who had taken the time to research in advance of searching for homes. That buyer’s knowing what to expect in the local market seeing your overpriced home could result in a turn-off and you could lose the sale. By the same token, you stand to get the shorter end of the stick in case of not knowing what you could have charged. Spending a little more time and/or expense can make a huge difference in the end outcome.

ONLINE TOOLS AND CALCULATORS
There are more than several websites where anyone can log on, put in their zip code and be given an instant “analysis” of their real estate value. The figures that appear as results from searches made through online resources stem from a conglomeration of several weeks and sometimes months of data collected from a particular region.

Websites such as www.zillow.com,www.realtytrac.com or www.trulia.comoffer a great way to get a generic idea of the value that homes in your region are going for or have gone for recently. As an added resource to other services also offered on these sites, the goal is not to assist homeowners in assigning a selling price on their property based on the data, rather to offer a snapshot on sales and pricing data for the area. In fact, for many people it is the perfect tool to add an extra edge when determining the fair market value of your home, along with other factors.

PROFESSIONAL COMPARABLE MARKET ANALYSIS
While online real estate tools are a great way to get a preliminary idea, they are only going to yield a figure that will show you where to start. To get an accurate assessment, you will need to avail the professional services of a Realtor. The only way to get an accurate “reading” of what the market rates are for homes in your vicinity and your neighborhood in particular, is to have a comparative market analysis conducted by a Realtor who understands your neighborhood. There is a good chance that they have dealt with properties in the area on a first-hand basis, regularly interact with the agencies and organizations that deal with very homes in your neighborhood and are familiar with the people in various facets that you will end up needing to interact with yourself, as the seller of your home.

Realtors conduct a detailed Comparable Market Analysis (sometimes also called Competitive Market Analysis) through a series of data compilation of area homes and properties, considering factors such as amount of land, the square footage and number of bedrooms or typical amenities in the neighborhood. But homeowners can also opt to delve into accurate detail about their property’s value by relying on an independent appraiser. Also, through the use of CMA data the County Tax Assessor determines the value of your property taxes.
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When you are pricing your home to sell, it is vital that you use all available resources. At first, it makes sense to “shop around” and get to know the generalities before you head for the specifics. And as with most transactions dealing with your real estate world, it is always best to rely on your Realtor for quality, effective and accurate information that is relevant to you and YOUR market.

Benefits and Drawbacks of Short Sales

info@hagartyrealestate.com (Diane and Brian Hagarty) — Tue, 15 Jan 2013 14:17:00 -0800

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Whether you’re on the buying side of the fence or selling, getting involved with a short sale might be the perfect situation for you. Though they have been around for a long time it wasn’t until the housing market crash of 2007 that more and more distressed sales came up to the surface. In fact, the influx of short sales that took place in our housing market skyrocketed after millions of homeowners suddenly found they owed much more on their properties than they were worth.

But if you are careful and mindful of all the benefits and drawbacks of selling (or buying) a short sale, you can enjoy the best of both worlds. Here are a few reasons to consider before making a decision:

Short Sales For Sellers

BENEFITS

Ability To Salvage Credit

When homeowners engage in a short sale as opposed to letting their home go into foreclosure they are causing much less damage to their credit than if they were to walk away from their mortgage commitment. Not only do short sales harm a credit report less but they also demonstrate commitment, accountability and responsibility to your debt.

Can Purchase A New Home In About 2 Years

Homeowners that opted for a short sale are able to recover financially in far less time than if they had allowed foreclosure. Where a foreclosure will remain on your credit report for up to 14 years, the negative impact of a short sale only lasts about 24 months, allowing the homeowner to recuperate and get back into a home relatively soon after the short sale.

Little or No Agent Fees

Given that it is a matter of distress, many agents will not charge any fees to process a short sale transaction. In fact, these types of real estate transactions can only be performed by licensed, certified short sale experts.

DRAWBACKS

It May Take a Long Time To Sell the Home

Since banks are involved in every step of the process it can take many months to turn the sale around. Even if you receive a good offer on the home, unless your bank processes the offer, accepts it and puts it through several approval procedures, you will not be able to sell the home as quickly as a conventional sale.

Banks May Not Accept Your Chosen Selling Price

Selling a short sale home entails the homeowner deciding on a price to list the home. Even though most people utilize the services of a Realtor to assist with setting the list price, banks will not always accept the price. Whether or not it will be accepted will be determined once an offer goes through the pipeline.

Complicated When Multiple Mortgages/Lenders Are Involved

In many cases homeowners facing foreclosure that are contemplating a short sale have taken out more than one mortgage on their property. Going through a short sale when it involves multiple lenders can become tedious and complicated since moving ahead with the transaction requires the approval of each lender.

Buying Short Sale Properties

BENEFITS

Great Deal On A Good Home

The single most compelling reason to buy a short sale property is because it allows buyers to afford the home of their dreams at a very affordable price. Though sellers of short sales are interested in getting as much money as possible for the property, the selling price is less than standard sales. Also, since the homeowners still live on site in many cases, chances are the condition of the home will be better than what a buyer might find in a vacant foreclosure property.

Strong Potential For Solid Return On Investment As Value Will Go Up Eventually

Getting the house for a lower price amounts to being able to cash in on a greater return on your investment later on. As long as the buyer plans to remain in the property for a while the home will appreciate eventually, rewarding them with a good financial return on their purchase.

DRAWBACKS

No Disclosure Statement

One of the first things short sale buyers must come to terms with is that the short sale home they are considering will not have a disclosure statement as is with standard sales. This can be a difficult thing for buyers since they would have to rely on the home inspection and appraisal rather than the otherwise required by law disclosure sellers must provide to buyers in regular real estate transactions.

Unknown Processing Times

The most commonly asked question Realtors specializing in short sale transactions hear is “how long will the process take?” and the answer is always “it depends”. If a buyer is in a hurry to get into their new home they should strongly consider whether a short sale property is right for them. A lot of patience is required since it can take months to follow through with all the processes involved and to obtain approvals from each department involved at the bank.

Lots of Negotiating And Re-Negotiating

Banks may or may not agree or accept the offer made by a buyer so the result is a lot of going back and forth during negotiations. This can add a significant amount of time to the transaction, end up in frustration possibly leading to the deal completely falling through.

If you are in a tough situation and are considering putting your home up for a short sale to avoid foreclosure – or if you want to take advantage of the great interest rates coupled with lower home values right now, call us today and we will get your questions answered. We look forward to helping you achieve the best outcome possible!

Real Estate News – Extended Mortgage Debt Relief Act, PMI Tax Relief and Capital Gains Tax Rates

info@hagartyrealestate.com (Diane and Brian Hagarty) — Wed, 9 Jan 2013 07:28:00 -0800

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Now that we are well into 2013, there will be some changes to our real estate outlook with some familiar programs back in action. With all the talk about the impending Fiscal Cliff, it is no wonder that homeowners everywhere are wondering how the outcome will impact them individually.

But first, we want to congratulate our lucky friends from Facebook that have won some exciting prizes in our latest drawing! We hope you have a great time enjoying your prizes and we appreciate your support, keeping up to date with us on Facebook!

Now, back to the latest and great news in real estate. Here are three recent changes and/or updates to the programs available out there that will have a significant impact on our marketplace this year and moving forward. This is good, folks!

Mortgage Debt Forgiveness Act Extended Through 2013

On the minds of many homeowners that have mortgages falling short of the current value of their homes, the Mortgage Debt Forgiveness Relief Act was set to expire on December 31, 2012. Among the many issues discussed within Congress during the last few hours of 2012 was the extension period of this important tax relief for distressed homeowners. Primarily as a means to help consumers faced with hardships overcome their financial difficulties when they incur forgiven debt – the Act serves to waive tax implications on what otherwise would be considered taxable income.

Private Mortgage Insurance Tax Relief Now Applies to Fiscal Years 2012 and 2013

Each year millions of homeowners look forward to the tax relief that comes with being able to write off their private mortgage insurance premiums. By the end of 2012, no one was sure the American Taxpayer Relief Act of 2012 would be extended to include the coming year. Once again, at the final hours of negotiations the Act was extended through fiscal year 2013 to allow homeowners paying private mortgage insurance to deduct that amount when filing their income taxes.

Capital Gains Tax Rates Increased from 15% to 20%

A topic of confusion for many, the capital gains tax increase set for higher income levels is more lenient than most people realize. Though the theory is that this increase in tax impacts individuals and households with higher income levels, the truth is the income and gains cap is relatively high. The capital gains tax increase will only apply to individuals earning an Adjusted Gross Income of $400,000 or more. Furthermore, people in these income brackets will incur the capital gains tax only on income earned above and beyond the cap which is $250,000 or more for individuals and $500,000 or higher for households.

If you would like to discuss these or any other issues in the real estate marketplace or if you are considering buying or selling a home – contact us today! We would love to help make your real estate dreams become a reality!

Happy 2012 Holidays and Warm Season’s Greetings!

info@hagartyrealestate.com (Diane and Brian Hagarty) — Thu, 20 Dec 2012 12:04:00 -0800

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To all our cherished friends, neighbors, family and clients – we are so proud to have been able to work with you and be a part of your lives! As we end this year and turn to the exciting time and events that 2013 holds, we just wanted to take a moment to thank you for all that you bring to our lives.

We have some really great plans in the coming year to bring more success to all your real estate endeavors. And with each transaction that makes it to the closing table in the coming months and years ahead – we know that there will continue to be new and exciting things to follow for all of us.

On behalf of the entire group – Happy Holidays, Season’s Greetings, Peace and Joy!

The Importance of Staging Your Home and How the Professional Presentation of Your REALTOR® Go Hand in Hand

info@hagartyrealestate.com (Diane and Brian Hagarty) — Mon, 3 Dec 2012 07:35:00 -0800

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As we prepared for our photography session we realized just how vital it is to present a solid first impression. Not just in the real estate industry, but overall. In fact, we wanted to share the immense professionalism and high-level talent of our photographer to demonstrate as a fantastic example, just how important first impressions can be.

The very fabulous Tim Coburn of Tim Coburn Photography in Washington DC took us into his studio and took photographs of us. But there was much more to it than just shooting the camera. In face, when we arrived at his studio we were taken in by his hair and makeup department. The consummate professional, Tim Coburn realizes the importance of first impressions and he puts in a lot of work behind the scenes to accomplish that result.

It’s really no different with real estate. When we stand in front of you and show you the comparable sales data on your home, for instance, it may look like a simple comparison of recently sold homes but a lot more goes into the process than meets the eye. When we advise our sellers to prepare their home for sale and even perhaps consider staging the home to sell it effectively, it’s no accident that we are again thinking about those first impressions.

Any way you cut it, professional presentation entails so much more than just that first impression but that initial glance is extremely important. We invite you to come in and meet with us so we can have that opportunity to share with you what we offer, provide you a glimpse of our “behind the scenes” and get to work achieving your real estate goals. Contact us today!

How To Save As Much as $10k By Winterizing Your Property

info@hagartyrealestate.com (Diane and Brian Hagarty) — Mon, 19 Nov 2012 08:56:00 -0800

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With today’s real estate market as ripe for activity as it is, many people are getting into second homes, vacation places and rental or investment properties. In fact, for those that already have these additional properties – it’s a great time to own them as values are finally starting to rise on them again with our market leaning toward being a sellers’ market.

But one thing you should know as the owner of a secondary property is that come wintertime it is critical to winterize the home or else be prepared to suffer the consequences. As you can see in the video, I’ve shared with you a sample pipe that has ruptured as a result of the water main not being turned off during the winter.

What happens is that with lack of use there is standing water left in the pipelines, leading to the risk (and very often occurrence) of water in pipes to freeze. As the ice expands on such a vast scale as throughout the entire house, pipes then literally rupture and crack open. Though the root cause of the problem takes place early on in the winter, visible damage doesn’t really occur until later on when things start to warm up again.

Many times we hear of property owners that return to their homes only to find that their pipes had ruptured and there is water damage all over the place. The repair for this sort of damage is very extensive and time-consuming, costing as much as $10,000 to replace the pipelines.

The simplest and easiest thing you can do to avoid all this is to turn off the water main switch before the cold winter sets in. That is all it takes.

Other winterization tips include:

• Cleaning out fall leaves debris from gutters
• Sealing cracks and crevices in your driveway to avoid salt and grime from corroding the driveway during winter months
• Installing snow stakes to help avoid damage from snowplowing
• Double checking door and window seals to trap in as much heat as possible

We hope you find these tips useful and as always, please do not hesitate to contact us for your real estate needs!

Hurricane Sandy and Your Sump Pump

info@hagartyrealestate.com (Diane and Brian Hagarty) — Thu, 1 Nov 2012 08:56:00 -0700

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As the East Coast has had torrential downpours due to Hurricane Sandy this week, sump pumps have been working overtime to keep millions of basements from flooding. A working sump pump can save you from thousands of dollars in damages and the headache of a flooded basement. Let’s take a look at how the sump pump works and what you can do to make sure that it will continue to work.

How Sump Pumps Work

A sump pump is a small pump installed in the lowest part of a basement or crawlspace. Its job is to help keep the area under the building dry and prevent it from flooding. As water flows through drains, the sump pump pumps that water away from the building.

Sump Pump Maintenance

The number one rule with sump pump maintenance is to make sure your pump is turned on! The pump will do no good in protecting your basement from water if it is off. By routinely taking a few minutes to make sure your sump pump is in good working order, especially before a storm approaches, you can keep your basement dry. Once you verify that the pump is turned on, check the cord for any wear-and-tear and the outlet to make sure it is working. Next, ensure that the pump is upright. If the pump is tilted to one side or another, it can jam and cease to work. Test out your sump pump. Pour a bucket of water into the pit and, if the pump does not quickly drain the water, have it serviced. After you have done this, clean the grate on the bottom of the pump and remove any debris in the vent hole. Finally, ensure that the outlet pipes are tight joined together and draining out at least 20 feet from your foundation.

By doing just a little extra maintenance and inspection on your sump pump, you can insure that your basement will stay dry during the most severe rainstorms.

7 Reasons You Should Be Buying or Selling in Today’s Real Estate Market

info@hagartyrealestate.com (Diane and Brian Hagarty) — Wed, 5 Sep 2012 08:39:00 -0700

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After what may seem the longest ever housing slump, we are finally seeing some great conditions after five, seven years that are leading to even greater results for countless Americans. There are many reasons for this increase in activity and today I wanted to share them with you. If you have been on the fence about buying or selling or if you know someone that has been contemplating entering the real estate market, consider the seven must-know factors below. In short, if you know someone that wants to buy or sell, now is the time.

Low, Low Cost of Borrowing

Never before in the history of our real estate industry have interest rates been as low as they are today. There’s no sign at least for now of them going up and what these low rates translate to – especially when combined with other factors mentioned below, is an unprecedented opportunity for buyers and sellers.

There’s Plenty of Money for the Taking

In the past several years, banks have been wary of lending and this was particularly during a time when the housing finance industry was dealing with several scandals and subsequent settlements. But now, banks are finally able and willing to lend again, allowing deserving homebuyers the chance to finance their homes.

Low Home Prices Make Buying Better

In a traditionally stronger renters’ market, we are finally looking at buying being more affordable. This works really well in the favor of sellers that have previously been unable to sell in the wake of our recession.

Fewer Homes, More Demand

Inventory is systematically dwindling downward, causing a stronger demand for homes across our marketplace. Not only is this due to increased sales but also the number of REO and bank-owned properties is going down.

Plenty of Buying Power Floating Around

There are a large number of first-time homebuyers on the prowl at this time. With prices edging down, interest rates already at their record setting lows and inventory declining – buyers have a lot of buying power and they are out there to exercise it.

Comparable Sales Are Working Favorably

After many, many months of not-so-favorable comparable sales and appraisals, we are finally seeing numbers that work in sellers’ favor. Homes are being appraised at higher values and other sales indicate higher sales prices – leading to a good result for sellers getting top dollar for their properties.

Economy Boost With Presidential Election

Historically an election year has usually posed a good environment in terms of our national economy. Better economic times, no matter how temporary they may seem, always point to increased activity in the housing market. This works in the favor of buyers and sellers; buyers will see more quality homes on the market and will have the money to spend to purchase those homes while sellers will enjoy increased buyers vying for their property.