New things in Real Estate

10 Years later on 9/11/2011

2011-09-12T11:12:00.002-04:00

Ten years ago today, our country, United States of America was under attack. Thousands of lives were lost, families lost significant part of their lives. But we stood strong, we went out to find the very culprit behind the attacks. We spent $1,248,191,652,093 till date on this mission to ensure that terrorism is rooted out of this world, but we are still fighting.

If 10 years ago after the attack of 9/11, We stood United, and formed a nation which was stronger and impermeable to attacks and terrorism, the threat for today September 11, 2011, will just be a joke! Instead we were more interested in finding one man who was the leader rather than finding the main reason for the attacks and making sure the ones who believe in that very reason are no longer thinking that way!

If the Trillions of Dollars were used in the development of the country to build a make our borders secure, ensuring every one has college education, everyone's health is not in jeopardy if they are not insured, everyone in the country believed what our forefathers believed when they formed this great country, we would be living in a country without recession, without fear of survival, and without the fear of terrorism.

Today let's make a pact, let's pledge that we will make America stronger! Not just a strong army, but something much more, what our forefathers had envisioned when they formed the United States of America! "We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."

Let's find that United States of America again, ONE NATION, UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL!

AJ Khetarpal is the founder and CEO of Maxxum Realtors & Associates, Inc. He is a believer and achiever in the Real Estate Industry and runs many learning events to help Business owners and Real Estate professionals realize their true potential.

Listing in Silver Spring: 930 Wayne Ave

2011-06-13T12:15:00.004-04:00

930 Wayne Ave #1006 Silver Spring MD 20910

1BR 1 BA
768 sqft
For Rent: $1550/month
For Sale: $199,000
Condo Fees: $308.00/month
RENTED in under 17 DAYS!
Direct Sale

Kitchen w/granite countertop, Breakfast bar, Full-sized stacked washers/dryers, berber carpet, Pre-wired cable, telephone & high-speed Internet, Elegant entrance plaza, Controlled access entrance lobby, State-of-the-art fitness center, Outdoor resident's patio and Reserved controlled access parking. One block to Silver Spring Metro, Whole Foods, Fine & casual dining.

More details at: www.maxxumworld.com
Listed by:

AJ Khetarpal,

Maxxum Realtors & Associates, Inc.

1010 Rockville Pike, Suite 530, Rockville, MD 20852
O: 301-637-5700 F: 866-294-9493 E: ajk@maxxumworld.com

Accuracy of square footage, lot size and other information is not guaranteed!
Information is believed to be accurate, but should not be relied upon without verification.

Listing in Columbia: 8855 Shining Oceans Way 55+ Community

2011-06-13T11:45:00.003-04:00

8855 SHINING OCEANS WAY #30, COLUMBIA, MD 21045
3BR, 4BA 2 Car Garage
Taxes: $5751
HOA: $355.00/month
2280 sqft
List Price: $411,000

Stunning Home in a Active Adult 55+ gated Community featuring Hardwood floors, ceramic tiles, granite counter tops, stainless steel appliances, 2 story foyer and family room. 2 Master Bedrooms. 1 off the main level. 24 Hour access to the community center, gym, conference room. kitchen, meeting rooms, theater room ready for plug and play in the basement and so much more. Close to shops and, major routes. Subject to third party approval.

More details at: www.maxxumworld.comListed by:

AJ Khetarpal,

Maxxum Realtors & Associates, Inc.

1010 Rockville Pike, Suite 530, Rockville, MD 20852
O: 301-637-5700 F: 866-294-9493 E: ajk@maxxumworld.com

Accuracy of square footage, lot size and other information is not guaranteed!
Information is believed to be accurate, but should not be relied upon without verification.

Listing in Hagerstown: 1050 St. Clair St

2011-06-13T11:07:00.003-04:00

1050 St Clair Street Hagerstown, MD 21742

3BR, 2BA

Taxes: $3,985

Built in 1988
MLS#WA7601202
List Price: $159,000

This charming brick rambler with all the modern touches boats 3 bedrooms and 2 full baths. Pergo floors in living and dining rooms, ceramic tiles in kitchen and bathrooms, Berber carpet in bedrooms. Huge yard and large deck for your parties and entertainment. Plenty of parking. Corner lot setting. Close to schools, colleges and entertainment. Just off Route 40 and I70. Sale subject to third party approval.

What's missing? You!

More details at: www.maxxumworld.com

Listed by: AJ Khetarpal, Maxxum Realtors & Associates, Inc.

1010 Rockville Pike, Suite 530, Rockville, MD 20852
O: 301-637-5700 F: 866-294-9493 E: ajk@maxxumworld.com

Accuracy of square footage, lot size and other information is not guaranteed!
Information is believed to be accurate, but should not be relied upon without verification.

How does Property Tax Rate Work?

2011-03-29T12:11:00.000-04:00

It’s the time of year that we should start expecting our first half of 2011 "Property Tax Bill" in the mailbox again. If that’s the case, then you’ll probably be wondering just how the government calculates property tax rates and why your bill seems to change every year.

Well, here’s an answer to your questions.

First, there is a difference between property tax rates and a property tax assessment. The rate is an overall percentage at which your property is taxed. The assessment is a valuation of your property’s worth, so that the government can determine how much money it is taxing.
States have different rules for conducting a property tax assessment, but the goal is to get an accurate value for the taxable property. This is usually determined by the replacement cost of structures and property, or the market value of the property calculated via comparison to similar properties.

Keep in mind that reassessment happens every few years, directly impacting property tax rates.
Once a property tax assessment has been conducted for an entire region, the local taxing entity then determines property tax rates.

Tax rates are determined in one of two ways, but are subject to percentage caps imposed by the law.

The taxing authority can choose to divide its yearly projected expenditures by the assessed value of all property in the region, assigning a portion to each property. It may also choose to estimate its budgetary needs based on different tax rates until it finds a reasonable rate.
Though no one enjoys fluctuating property tax rates—or taxes in general—they serve an important function. Taxes pay for local services, such as police and the fire department, as well as maintenance of infrastructure. They also pay for schools.

AJ Khetarpal is the Founder and CEO of Maxxum Realtors & Associates, Inc. and creates Niche marketing strategies to assist buyers and sellers.

Tips for Keeping Your Homes Healthy

2011-01-18T13:52:00.001-05:00

It’s easy to overlook a small leak or slight draft. But these problems have the potential to get worse very quickly. To prevent a big problem from arising, energystar.gov recommends having a contractor perform annual check-ups—on the cooling system in the spring and the heating system in the fall. To remember, you might plan the check-ups around the time changes in the spring and fall.

Here are some things you should expect a contractor to handle:

• Check thermostat settings to ensure the cooling and heating system keeps you comfortable when you are home and saves energy while you are away.
• Tighten all electrical connections and measure voltage and current on motors. Faulty electrical connections can cause unsafe operation of your system and reduce the life of major components.
• Lubricate all moving parts. Parts that lack lubrication cause friction in motors and increases the amount of electricity you use.
• Check and inspect the condensate drain in your central air conditioner,furnace and/or heat pump (when in cooling mode). A plugged drain can cause water damage in the house and affect indoor humidity levels.
• Check controls of the system to ensure proper and safe operation. Check the starting cycle of the equipment to assure the system starts, operates, and shuts off properly.

Cooling Specific
• Clean evaporator and condenser air conditioning coils. Dirty coils reduce the system's ability to cool your home and cause the system to run longer, increasing energy costs and reducing the life of the equipment.
• Check your central air conditioner's refrigerant level and adjust if necessary. Too much or too little refrigerant will make your system less efficient increasing energy costs and reducing the life of the equipment.
• Clean and adjust blower components to provide proper system airflow for greater comfort levels. Airflow problems can reduce your system's efficiency by up to 15 percent.

Heating Specific
• Check all gas (or oil) connections, gas pressure, burner combustion and heat exchanger. Improperly operating gas (or oil) connections are a fire hazard and can contribute to health problems. A dirty burner or cracked heat exchanger causes improper burner operation. Either can cause the equipment to operate less safely and efficiently.

Actions You Can Do Yourself
• Inspect, clean, or change air filters once a month in your central air conditioner, furnace, and/or heat pump. Your contractor can show you how to do this. A dirty filter can increase energy costs and damage your equipment, leading to early failure.

Source: energystar.gov

Retirement Planning: 4 Tips for Late Bloomers

2011-01-18T13:24:00.000-05:00

Increasingly, Americans are entering the age of retirement without enough savings to do so comfortably. However, it is never too late to focus on life stage retirement planning to make the golden years glisten much more.

Here are some tips to help from retiremenplanning.net:

1. Saving should be a top priority. Some people may have procrastinated while others hit some bumps in the road. Either way, the closer a person gets to retiring, the less working years they have and less time to save. One should look at finances, consider needs and wants, and reprioritize.

2. Delay retiring, especially if you started saving late in life. This is beneficially for Social Security and health insurance purposes. Social Security income is adjusted for inflation, tax efficient and guaranteed by the federal government. Every month a worker is able to put money toward this benefit, up to the age of 70, the more savings will accumulate. If an employer-sponsored health care plan is superior, depending on their situation, one can save a great deal. When retirement planning, people often forget that Medicare does not cover every needed item, which can be very expensive.

3. Reconsider investments. Whether to invest aggressively or conservatively is a tough decision at any age, but especially for someone who is creating a financial plan later in life. One may invest aggressively to make up for lost time while another may shy away from risk because they don't want to lose what little they have saved. Risky speculation and eroding inflation are heavy considerations. The sound advice from a professional in the retirement planning field should be considered to make the right calls.

4. Take advantage of tax-efficient plans. Taxes can quickly chip away at savings. People entering an age to retire should especially consider as many tax efficient plans as possible, such as a 401k, Roth IRA and traditional IRAs.

7 Reasons why your property won't sell!

2010-12-02T12:35:00.000-05:00

1. Your property won't sell because your photos are "less than impressive". The vast majority of home buyers start their search for a home on the Internet, so your property had better look fantastic in print. Not just nice, it has to look downright fabulous. Today an internet view is the same as a 'virtual showing'... if your house gets past that, then they might (just might) make an appointment to see it in person... You should really consider that your SECOND showing. Today's online viewers are expecting good quality photos (and lots of them...the picture below... taken from Google Maps... is completely unacceptable. That's a $500,000 listing, take a moment and your digital camera and force your agent to go earn their commission), a virtual tour, maybe even a floor plan, and they need to be high-quality, or don't bother.

2. Your property won't sell because it's overpriced. It's important to be as objective as you possibly can. Look at the home as though you were a "buyer"... if necessary, make an appointment with your Realtor to view other properties that are priced comparably to yours. Be brutally objective. Given the other options on the market (and yes, you DO have to include short sales and foreclosures on your list... your potential buyers are!), would YOU buy your home, over the others that are currently available on the market?
If the answer is "NO", (and try to be as honest as you can) well then you have your work cut out for you, don't you? You either have to "update" your home to meet or beat the competition...(that might mean an updated bathroom or kitchen, or neutralizing some decorating... remove that old wallpaper that was there when you bought the house or lower your price to adjust for it. if you can't afford to sell it for the price, that you KNOW it should sell for, this may not be the right market for you to sell. Consider taking it off-market.

3. Your property won't sell because it shows badly. This could mean almost anything... from the 60 pound Rottweiler, barking and drooling at the potential buyers from behind the safety of the flimsiest child-gate, to the lingering smell of 30-years of smoking. Maybe the carpeting shows traffic-pattern wear, or your windows allow in slightly more than daylight. All things that aren't visible from the internet, but whoa.... once you get inside the house... they show up, like a cat-urine-soaked-shag carpet on a 95 degree day in New Orleans!

4. Your property won't sell because you're invisible. Today's buyer comes from the internet, almost exclusively. Have you (or your agent) simply plopped the property on the MLS, and started praying? Are you on all the websites...(Trulia, Zillow, Craig's List, Google Base, etc...) all the places that buyers are searching? If not, you need to be, now! Don't try to be a secret, in today's electronic world. You want to be found, and the sooner the better.

5. Your property won't sell because your listing is tired and stale on the market. Okay... yes, you overpriced your home initially when you first came on the market a year and a half ago. But since then you have reduced your price almost monthly, constantly chasing the market down. Now, finally you're truly priced where you believe should be, but your listing (not your house) has become tired and stale. Everyone who is looking for your type of property (ie: 3br/1.1 bath) in your area has already seen the listing online, or in person and they remember that there was "something" about it that they didn't like... but what they don't remember is... what they didn't like.... was the price. Time to take the listing off market. Let it cool off (3-6 months), and bring it back on fresh in the Spring. Yeah, you'll have 6 mos. worth of holding-costs... but you'll more than make up for it in your purchase price.
btw... Resist the temptation to bring the house back on at a higher price, than when you left the market. Just "don't do it"!

6. Your property won't sell because your house won't appraise. The house looks great... you've finally gotten someone to bring you a bid on your slightly over-priced, but beautiful pied-a-terre. But the bank appraiser says it's worth $20,000 less than your buyer has agreed to pay. Heavy sigh... bite the bullet.... negotiate with them. If you have to drop the price $20,000 to make it work.... "make it work"... chances are, anybody else trying to buy your house will run into the same problem. If you're not willing to negotiate the difference, you may find yourself with no buyer, and accepting a lower offer somewhere down the line.
7. Your property won't sell because it's unavailable to show. You have a baby, and a 1-year old. And they need their naps. So you've told your Realtor in no-uncertain-terms, that you'll only allow showings between 9:00a.m - Noon, and then again from 2:30-5:30 p.m. And no showings on Saturday or Sundays. "After all", you've told him "we still live here.. it's our home!". Well guess what? They can't buy it, if they can't see it. As good as your online photos are, they're no substitute for an in-person visit. "If they really want to see it, they'll reschedule", you're already answering as you read this. Nonsense! What they'll do, is they'll just move on to the next property in line (there are dozens like yours available) and maybe they'll buy that one instead. Once you put your property on the market it stops being your "home", and has become your "product". And you want your product to be seen by as large a buying audience as possible.
So, there you have it. Stick around another year and half. Who knows, maybe by August of 2013, I'll have EIGHT reasons why your property won't sell!

ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate
Coldwell Banker Residential Real Estate, 2929 Central Street, Evanston, IL 60201

310 Fairgrove Ter Gaithersburg MD - $2095

2010-07-30T07:57:00.007-04:00

Absolutely charming single family home with 4 bedrooms and 2.5 bath, home boasting, hardwood floors, through out the main floor, ceramic tiles in kitchen, wood burning fireplace. Freshly painted, fresh basement carpet and professionally cleaned. Bathroom and Bedroom on the main level. Easy access to commuter buses, Shady Grove Metro Station, New ICC, Shopping, Schools, entertainment and more.

More information and Pictures at http://featured.maxxumworld.com

6012 Cedar Wood Drive North - $289,900

2010-04-25T23:27:00.010-04:00

Stunning end of group town home boasting 3 levels of entertainment. Offers laminated floors,wood-burning fireplace, eat-in kitchen leading to a 2 level deck.Fully finished walk out basement.Newer appliances, Paint, carpet, Patio door & counter tops in kitchen. Walking distance to HW County Hospital, Community College. Close to Joseph Sq Shopping Center & all commuter routes. A must see!

648 Cedar Spring Street -$349,900.00

2010-04-19T12:56:00.010-04:00

Absolutely amazing property. Boasting 4 Bedroom and 3.5 Bath, this home has a gently used Gourmet Kitchen with Stainless steel appliances and Downdraft cooktop. Plantation Blinds, huge master bath with soaking tub and separate shower. Large recreation area in the basement with a large bedroom and bathroom. detached 2 car garage makes this home a delight. Sale Subject to third party approval!

7923 Eastern Ave Silver Spring, MD 20910 - $1,700.00

2010-03-26T11:22:00.009-04:00

Amazingly beautiful property w/hardwood floors, granite counter tops, stainless steel appliances, 42" cabinets, stacked washer dryer, lots of closets. Close to Discovery building, Silver Spring downtown, Shuttle bus to metro station, shopping, just blocks to DC and entertainment. This home is an entertainer's dream.

Celebrate Earth Day with a Gift to the Planet and Your Wallet

2009-04-22T21:54:00.001-04:00

By Kayla O'Brien

RISMEDIA, April 22, 2009-In celebration of Earth Day and the escalating buzz around the immense stimulus package President Barack Obama signed into law in February, you might be wondering exactly if, how and when you (and the planet) will directly benefit. Rest assured, in addition to the $8,000 tax credit available to first-time home buyers who purchase a home before December 1, 2009, there are many other ways homeowners can not only save money, but also help the environment.

It’s a known fact that by simply switching from standard incandescent light bulbs to Compact Fluorescent Light Bulbs (CFLs), Americans will produce 75% less energy on a product that will last up to 10 times longer. Homeowners can expect to save about $30 or more in electricity costs over each bulb’s lifetime, and, according to Energy Star, these light bulbs produce about 75% less heat, so they’re safer to operate and can cut energy costs associated with home cooling.

Coupling that with the latest in energy rebates and the stimulus is a step in the right direction for homeowners looking for added motivation to do the right thing for the environment, while saving money in the long run.

The American Recovery and Reinvestment Act of 2009 is scheduled to pump over $787 billion into the American economy and of that, over $49 billion has been dedicated to energy initiatives. More than switching to CFLs or getting a reliable thermostat, energy efficiency includes everything from weatherizing low-income housing, electric vehicles, energy efficiency devices, energy efficient appliance upgrades for homeowners and small business owners, and even loan guarantees for renewable energy projects.

“The government was looking for shovel-ready solutions to get money into the economy as quickly as possible,” says Gus Ezcurra, CEO of Advanced Telemetry, a California-based company that manufacturers the EcoView smart energy and resource management system for residential and commercial applications. “Because they want to kick start alternative energy solutions in homes, there is something like $300 million provided in consumer rebates for energy-efficient product upgrades. If money is available, consumers can buy these products and at the end of the day, stimulate the economy.”

Ezcurra oversees all aspects of the company’s development and deployment of its proprietary EcoView solution-a cost-effective, small commercial and residential “smart energy management system” that enables users to easily view and reduce their resource consumption-and thus, their utility bills and carbon footprint. In addition to electricity, the EcoView touch panel and Web portal enables users to view and adjust (in real time) gas and water, as well as lighting, security, and other electronic devices such as office or home entertainment equipment-all resulting in increased awareness, control and reduction of energy usage that saves both money and environmental resources.

By upgrading everyday appliances to energy efficient models such as Energy Star, homeowners can expect a minimum of 10-15% savings on their electricity bills right away. “It pays for itself and it’s doing the right thing for the environment,” says Ezcurra.

Today, rebate funds have been re-energized with the latest economic stimulus, says Ezcurra. “Some money has already started to trickle out, but by the end of the summer, the checks will come relatively quickly.”

Homeowners interested in making the most of the stimulus need not look further than their local utility company. If your power, water and gas come from one exclusive place locally, the best way, according to Ezcurra, is to inquire about state-mandated programs that are available. Most commonly, homeowners can find what energy-efficiency rebates are available by simply calling the power company or checking their website.

Another way the stimulus money will be distributed to homeowners is by way of low-income families for the weatherization of their homes. “For example,” says Ezcurra, “If a home has old windows or doors that aren’t efficient, air may be leaking in and so the homeowner will find themselves cranking up the heat or the air conditioning. It’s one thing to give rebates for devices inside the home, but it’s a big thing to help a home be more efficient by sealing doors, increasing insulation, etc.”

“The ones who can’t afford it most are the ones wasting the most, so something like efficient windows can provide huge savings for the home,” says Ezcurra. “Even if you raise your air-conditioning temperature by just a few degrees, that’s a huge savings. ”

To take advantage of these rebates, on the state level, homeowners must simply fill out a form on the approved device and submit it with other required paperwork such as a proof of purchase, etc. Once it has been submitted, the homeowner should expect a check in a few weeks. Tax credits are available at 30% of the cost, up to $1,500, through 2010 for the following:

-Windows and doors
-Insulation
-Roofs (metal and asphalt)
-HVAC
-Water heaters (non-solar)
-Biomass stoves

When looking to upgrade, something homeowners should keep an eye out for is the Manufacturer’s Certification. This is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these certifications on their website to facilitate identification of qualified products. Tax payers must keep a copy of the certification statement for their records, however, they do not have to submit a copy with their tax return.

While some may think the price of energy-efficient appliances may not outweigh the benefits at a time when many are pinching pennies, in many cases, says Ezcurra, they’re exactly the same price as other new appliances. “Newer appliances, in general, have implemented more efficient technologies behind it when you buy them, at no extra cost,” he says. “If you buy additional devices-beyond a new washing machine or dishwasher-the savings are dramatic. ”

Once people become more aware of their energy usage, not only will the cost savings begin, but also the road to helping the environment.

“Our [EcoView] touch panel gives you the ability to see what your entire electricity consumption is-how much money and how many kilowatts you’re spending-on the devices you have today. Someone may be spending $32 a month in electricity prior to learning this, but after turning the air conditioning off by two degrees or turning off your computer monitor when you’re not home, your bill will shrink down to something like $24 instantaneously.

“I believe people will do the right thing. People do the right thing to help situations at hand-whether their neighbor or the environment is in danger-but it’s not easy for people to do it on their own,” says Ezcurra. “The stimulus is making it easier for them to modify their behavior and help the environment-and also their financial well-being.”

How Real Estate Property Taxes Work

2009-04-22T21:43:00.003-04:00

Inside this Article

Introduction to How Real Estate Property Taxes Work
Real Estate Property Tax Assessments
What Makes Real Estate Property Tax Bills Change
How Real Estate Property Taxes Affect Income Taxes
Lots More Information

1. Introduction to How Real Estate Property Taxes Work

Taxes, as unpleasant as they may be, are how governments pay for public programs and services. Most everyone in the United States is familiar with federal and state income tax. But if you've never owned real estate or your own business, you may not know how real estate property taxes work.

In medieval Europe, property taxes were based on the size of a piece of land. Generally speaking, the larger the piece of land was, the higher the real estate property tax was.

It wasn't until much later that the value of land came to be seen as the land's ability to output goods and services, and thereby create profit for its owner. Tax assessors began examining other property on the land, including structures, farming equipment and livestock. Why? Governments figured, for example, that if Lord Garish had 1,000 cows, three stables housing 30 horses, a castle and a windmill jammed onto a small piece of land, Lord Garish could afford to pay more property tax than Lord Frugal, who had only 13 cows and a butter churn on a large piece of land.

In the colonies that eventually became the United States, local governments levied a "general property tax" [source: Britannica]. Colonists paid taxes on all property, whether real estate or personal.

Today, property taxes in the United States are mostly based on real property, though some states do tax certain items of personal property. Office buildings are usually taxed according to the rental income they provide for their owners.

In this article, we'll explore how governments use real estate property taxes, how assessors calculate a tax bill and how real estate property tax bills can change over time.

2. Real Estate Property Tax Assessments

In the United States, local governments use the revenue from real estate property taxes to fund public services, such as fire protection, law enforcement, roadwork and schools. Without property taxes, local governments would have a difficult time funding these services; property tax revenue accounts for "about half of the revenue raised by local governments" in the United States [source: Britannica].

Taxable property includes any real estate that is not owned by a government, such as houses and companies with brick-and-mortar places of business.

Religious organizations, like churches, are usually not taxable. A tax assessor still assesses the value of government and exempt church real estate, however.

Dmitri Kessel/Time Life Pictures/Getty Images
Even vacant lots, like the ones surrounding this brownstone in New York City, are assessed by property tax assessors.

Just as a country has borders and a city has limits, property is divided into assessment areasassessment units. An assessment area might be a city, a county or even a school district. A property tax assessment is the market value of a property. A tax assessor -- an elected or appointed official -- assesses the value of every taxable property in that assessment area. or

It would be a lot of work for the assessor to visit every property in an area. Luckily for everyone, the process is much simpler. Assessments are made by comparing the market value of similar properties. For example, if Mr. MacDonald sells his farm at a price close to his asking price, the tax assessor can use that sale price as a basis for the property tax assessments of farms similar to Mr. MacDonald's.

Unfair Assessments

Assessments are not always accurate. For example, Mr. MacDonald's farm has the same number of barns as Mrs. Bingo's farm, but Mrs. Bingo's unused, dilapidated barns are worth less than Mr. MacDonald's. If Mrs. Bingo feels that her property was overvalued, she can appeal the assessment with her local assessor, an option available to anyone concerned about a property tax assessment.

Every local government has its own real estate property tax procedures.

Generally, to set or adjust a tax rate, local governments must look at how much money comes from various sources of revenue, including sales tax and state aid. This amount is compared to the government's budget for the year. The amount of money needed to fill the gap between the budget and the expected revenue is usually called the tax levy.

For example, the Rose City government has a $6 million budget and receives $3.5 million in sales tax revenue and state aid. Rose City needs to raise $2.5 million in property taxes to cover the budget.

$6,000,000 - $3,500,000 = $2,500,000

The fundamental idea of the modern property tax is to provide revenue for public services. It follows, then, that real estate property tax rates vary widely across the United States according to the needs of individual local governments. One city uses property tax revenue to repair roads riddled with pot-holes, while another city uses the revenue to hire more police officers to fight a gang problem.

Usually, real estate property tax rates don't change much over time. Governments are more likely to change the rate at which properties are assessed, called the assessment rate or assessment level. Learn what other factors can change a real estate property tax bill on the next page.

3. What Makes Real Estate Property Tax Bills Change

As mentioned earlier in the article, an actual property tax rate rarely changes. If a government needed to bring in more revenue through real estate property taxes, it's more likely that the government would increase the assessment value. Increasing the assessment value would increase the taxable value of your property. Multiply this higher taxable value by the same old property tax rate, and you've got yourself a bigger tax bill.

Tim Boyle/Getty Images
New developments, like the Trump International Hotel & Tower in Chicago, could effect changes in property tax bills.

What else might cause your tax bill to change? Real estate tends to increase in value over time. Because of this, property tax assessors usually reassess the value of real estate every few years. For example, county tax assessors in Illinois reassess properties every four years (every three years in Cook County) [source: Illinois Department of Revenue]. When real estate increases in value, the first number in the property tax equation increases, thereby increasing the tax bill. To avoid excessive property taxes as real estate increases vastly in value, a government might adjust its assessment or tax rate.

A decrease in real estate value, perhaps due to natural phenomena (a housing development becomes a flood plain) would have the opposite effect on the tax bill. But if a local government can't afford to lose the revenue it acquires through real estate property taxes, the government might increase its assessment rate or even its property tax rate.

When new businesses come into a community, they generate income. When people build new houses on previously undeveloped land, property value increases. In these cases, your tax bill could actually decrease, because the property tax could be spread across more properties.

Changes in a government's budget also could increase or decrease your tax bill. If your town government wants to build a new high school, the town government's budget might increase. If the government can't get funding through other sources, a change in the property tax calculation could increase your tax bill. Likewise, a smaller budget could decrease your bill.

Local governments make a lot of money from sales taxes. If tourists flock to your town every summer to participate in the Rose City Festival of Toys and Miniatures, your town government probably receives a nice influx of revenue from summer tourism. If turnout at the festival declines over the course of several years, your local authorities may look to other sources of revenue to make up for the shortfall. They may look to increase real estate property taxes.

Large Cities

Property tax assessments are a little different in areas that contain large cities. In New York and Chicago, for example, the tax or assessment rate is not consistent for all properties in the county. Properties are classified by type, such as residential, industrial and commercial. Each class has its own tax and/or assessment rate.

It's great that your local government's budget is so healthy, but what about your own budget? On the next page, learn how to make your real estate property taxes work for you at income-tax time.

4. How Real Estate Property Taxes Affect Income Taxes

After paying all this money, it would be nice to get a break. Fortunately, come April 15, you get one. As you calculate your personal income tax, you can often deduct what you have paid for real estate property taxes.

Chris Hondros/Staff/Getty Images
Filing your taxes at the last minute -- or even late -- is better than not filing at all. These tax payers filed at the very last minute in Manhattan in 2000.

In most cases, you may deduct what you pay for state, local and even foreign real estate property taxes. These taxes are deductible from your income tax as long as:

the taxes go toward general public welfare
the taxes are based on your property's assessed value
all properties in the assessment area are taxed at the same rate

You may not deduct taxes that ultimately increase the value of your property or that are charged for local benefits, such as sidewalks and sewer lines. But the news isn't all bad. Though you may not be able to deduct those taxes, you may be able to use them to increase the cost basis of your property. And some local benefits -- usually relating to maintenance and repair -- are deductible. If you're not sure if a given property tax is a deductible expense, IRS Tax Topic 503, "Deductible Taxes" and Publication 530, "Tax Information for First-Time Home Owners," can offer some clarification.

To deduct your real estate property taxes from your personal income taxes, you'll need to file a 1040 long form and Schedule A. And you should check to make sure the standard deduction isn't better for your situation. You should also check with a licensed tax consultant.

If you own a second home, it can also offer a tax break. You can deduct both your mortgage interest and your property taxes on the second home -- again, as long as you itemize. And of course property taxes on the second home must meet the same requirements as those on your first home.

Is Your Home the Mother of All Tax Shelters?

Generally, the tax breaks you can get as a homeowner are a very good way to save money. You can deduct the interest and the property taxes you pay on your first home as well as on additional homes you might own. You may also be able to deduct interest you pay on any home equity lines of credit linked to your properties.

If you'd like to know more about real estate property taxes and related topics, you can follow the links on the next section.

5. Lots More Information

5 Property Tax Questions You Need to Ask

2009-04-22T21:41:00.001-04:00

1. What is the assessed value of the property? Note that assessed value is generally less than market value. Ask to see a recent copy of the seller’s tax bill to help you determine this information.

2. How often are properties reassessed, and when was the last reassessment done? In general, taxes jump most significantly when a property is reassessed.

3. Will the sale of the property trigger a tax increase? The assessed value of the property may increase based on the amount you pay for the property. And in some areas, such as California, taxes may be frozen until resale.

4. Is the amount of taxes paid comparable to other properties in the area? If not, it might be possible to appeal the tax assessment and lower the rate.

5. Does the current tax bill reflect any special exemptions that I might not qualify for? For example, many tax districts offer reductions to those 65 or over.

Saving the Earth One Day at a time

2008-04-22T22:56:00.007-04:00

As we all know that today was EARTH DAY! What did we do to put a little Green back in to the nature?

Here is what I did today:
1. Planted 2 trees.
2. Drove my car only twice a day.
3. Didn't turn the lights on at my home and office since morning til sundown.

I have planned for a few more things but found an interesting fact about recycling:
When recycling, remove the caps of plastic bottles, if you don't it goes into trash. So next time you put in a bottle for recycling ensure that the cap is off, or else its going to be a part of a landfill.

14 ways to conserve energy:

Eliminate Wasted Energy - Turn off appliances, lights, and equipment when not in use. Don't forget to turn computers and printers off at the power strip!

Turn Up Your Thermostat - During warm weather months, set your thermostat to 78 degrees or higher when you are home, and 85 degrees or off when you are away. Using ceiling or room fans allows you to set the thermostat higher because the air movement will cool the room. You can save up to 3% for each degree the thermostat is set above 72 degrees.
Use Your Appliances Wisely - To help prevent electricity outages, avoid running your appliances during peak hours – from 4 p.m. to 6 p.m. – or anytime an electricity emergency is declared. Do laundry more efficiently by using warm or cold water settings for washing your clothes. Always use cold water for rinsing clothes. Line dry clothes whenever you can. When you need to use the clothes dryer, run full loads, use the moisture-sensing setting, and clean the lint trap after each use. Conserve energy by running your dishwasher only when it is fully loaded, and turn off the dry cycle and air-dry the dishes instead.
Use Energy Efficient Lighting - Replace regular incandescent light bulbs that are used more than two hours per day with Energy Star® compact fluorescent light bulbs. Compact fluorescent light bulbs use approximately 75 % less electricity than regular light bulbs and last up to seven years! Buy ENERGY STAR® certified table lamps, light fixtures, or torchieres.
Wrap Your Water Heater - If your water heater is older than 10 years, wrap it with an insulating blanket.
Replace Air Conditioner Filters - Dirty filters restrict airflow and can cause the system to run longer, increasing energy use. Replace filters monthly for maximum benefit and save up to 2%.
Plug Your Home's Leaks - Weather-strip, seal, and caulk leaky doors and windows, and install foam gaskets behind outlet covers.
Install Energy-Saver Showerheads - This can save not only electricity, but water as well.
Install an ENERGY STAR Thermostat - This can save up to 3% of your electricity use.
Use Energy Efficient Windows - This can save 3% of your electricity use.
Install a Whole House Fan - An attic "whole house" fan draws cooler air into your home and forces hot air out through attic vents. Use it when the air is cool outside and in the early morning hours.
Increase Attic Insulation - Insulate ceilings to R-30 standards if your attic has less than R-19.
Seal Your Ducts - Leaking ductwork accounts for as much as 25 % of cooling costs in an average home. Have your ducts tested and get any leaks or restrictions repaired by a qualified contractor.
Buy ENERGY STAR Appliances - When buying new appliances, be sure to purchase energy-efficient ENERGY STAR® models. Also, look for seasonal incentives sponsored by utility companies for energy-efficient appliances.

New FHA program to assit home owners refinance

2007-12-07T08:06:00.000-05:00

FHASecure - New program unveiled by President Bush - December 6, 2007

WHAT IS FHASecure

FHASecure is a refinancing option that gives credit-worthy homeowners, who were making timely mortgage payments before their loans reset but are now in default, a second chance with a FHA insured loan product.

WHO IS ELIGIBLE

To qualify for FHASecure, and include the delinquent loan payments, homeowners wishing to refinance must meet the following requirements:

Have a non-FHA insured ARM that has reset;
Sufficient income to make the mortgage payment; and
A history of on-time mortgage payments before the loan reset.

Homeowners who are current on their conventional mortgages must have sufficient income to make the mortgage payment.

By refinancing into a FHA insured mortgage, you can expect to pay lower monthly mortgage payments. FHASecure can improve the quality of life for many communities by helping to reduce the number of mortgage defaults and bringing greater stability to local housing markets.

HOW TO APPLY

Search online for your nearest FHA approved lender, or for more information phone 1-800-CALL-FHA (1-800-225-5342).

New plan to help subprime borrowers

2007-12-07T07:49:00.000-05:00

MSNBC - Dec. 6: President Bush announces an agreement with the mortgage industry that will freeze rates on a portion of the 2 million sub-prime mortgages.

Bush's mortgage plan video

News from MSNBC

WASHINGTON - Hundreds of thousands of strapped homeowners could get some relief from a plan negotiated by the Bush administration to freeze interest rates on subprime mortgages that are scheduled to rise in the coming months.

“There is no perfect solution,” President Bush said Thursday as he announced an agreement hammered out with the mortgage industry. “The homeowners deserve our help. The steps I’ve outlined today are a sensible response to a serious challenge.”

Bush has been accused of moving too slowly to address a crisis that has spread to the broader financial market. But he also was careful not to sound as if he were imposing a government solution and violating his free-market principles. He billed his plan as a voluntary, private-sector arrangement that involves no government money.

“We should not bail out lenders, real estate speculators or those made the reckless decision to buy a home they knew they could never afford,” Bush said after meeting with industry leaders at the White House. “But there are some responsible homeowners who could avoid foreclosure with some assistance.”

Bush said 1.2 million people could be eligible for help. But only a fraction will be subject to the rate freeze. Others would get assistance in refinancing with their lenders and moving into loans secured by the Federal Housing Administration, Bush said.

Also, the aid will only come to those who ask for it, he said. Thousands of borrowers who are falling behind on their payments have been sent letters about the options, and Bush also urged people to call a new hot line: 1-888-995-HOPE.

The announcement followed the news earlier Thursday that home foreclosures surged to an all-time high in the July-September period. The Mortgage Bankers Association reported that the percentage of all mortgages that started the foreclosure process in the third quarter jumped to a record 0.78 percent, surpassing the previous record of 0.65 percent of all mortgages in the second quarter.

The administration’s effort is aimed at stemming a further tidal wave of foreclosures in coming years as 2 million subprime mortgages — loans provided to borrowers with spotty credit histories — reset from their introductory rates of around 7 percent to 8 percent to levels as high as 11 percent, adding hundreds of dollars to the typical monthly payment.

A recent surge in mortgage defaults, part of the worst housing slump in more than two decades, has piled up billions of dollars in losses for big banks, hedge funds and other investors while roiling financial markets worldwide. Some economists think the housing bust may become severe enough to push the country into recession.

Bush originally gave the wrong number for the hot line; the White House later corrected him.

The president mentioned other steps to prevent foreclosures. The FHA has greater flexibility to offer refinancing to homeowners with good credit histories. It is expected that this eventually will help 300,000 families, officials said.

The Federal Reserve is announcing stronger lending standards this month, while the Housing and Urban Development Department and federal banking regulators are acting to improve disclosure requirements, he said.

Fed Chairman Ben Bernanke said the streamlined procedures for supporting efforts to refinance mortgages and freeze rates were a “welcome step in helping Americans protect their homes and communities from the consequences of unnecessary foreclosures.”

The highest-profile part of the plan would freeze introductory “teaser” rates on certain subprime mortgages, preventing rates from rising for five years.

This offer would apply only to people living in their homes and who have not missed any payments at the lower rate. It also only would apply to loans taken out between 2005 and this past July 30 and scheduled to rise to higher rates in 2008 and 2009.

The hope is that the five-year freeze will buy time for the housing sales and prices to start rising again. Such a rebound would enable homeowners to refinance their current adjustable rate mortgages into fixed-rate loans with more affordable monthly payments.

But even Treasury Secretary Henry Paulson, who led the negotiations with the mortgage industry, acknowledged the effort is “not a silver bullet.”

“We face a difficult problem,” he said.

The big sticking point in the negotiations was getting investors who had purchased the mortgages after they were bundled into securities to agree to accept lower interest payments. Critics have said even with a deal, there are likely to be lawsuits. But officials representing major players in the mortgage industry said they believed the plan would withstand any legal challenges and would help at-risk homeowners avoid defaulting on their mortgages.

But George Miller, executive director of the American Securitization Forum, which represents companies that package mortgages into mortgage-backed securities, told reporters he expected the industry would face suits from investors unhappy that the original terms of the mortgages have been modified.

The president also did not miss the chance to lash out at the Democratic-controlled Congress.

Bush blamed lawmakers for not sending him legislation that he said would show they “are serious about responding to the challenges in the housing market.” One measure would give the FHA more flexibility; a second would change the tax laws temporarily to help people who have a portion of their mortgage forgiven by banks.

“The Congress has not sent me a single bill to help homeowners,” Bush said.

The provider of this news is MSNBC http://www.msnbc.msn.com/id/22132648/

Alternatives to foreclosure

2007-10-21T10:05:00.000-04:00

Even though there is a rise in the foreclosure market, but foreclosure is not eminent. There are ways around this option.

Some of these option are

Deed In Lieu of Foreclosure
Forbearance Agreement
Repayment Plan
Loan Modification Agreement
Short Sale

Deed in Lieu of Foreclosure

A Deed In Lieu of Foreclosure is an option if you do not qualify for any of the other alternatives and you do not have additional liens against your property. To avoid foreclosure you may be able to deed the property directly to the lender.

Forbearance Agreement

If you are unable to make a loan payment on your loan, you may qualify for a Forbearance Agreement. This is a formal repayment plan which if approved by our client will stay any pending foreclosure while payments are being made.

Repayment Plan

If your loan is past due for one, two, or three payments because of a temporary financial setback, you may qualify for a Repayment Plan. You must be able to make the monthly loan payment and pay an additional amount towards the past due amount each month until the loan is brought current.

Loan Modification Agreement

If you are unable to pay your past due loan payments, but you can meet your monthly obligations, our client may be able to make a Loan Modification by adding the delinquent escrow payments to your loan balance to bring your loan current. Your current mortgage interest rate must be within market guidelines. If you have any additional liens against your property, the lien holders must be willing to subordinate their interest to the new loan amount.

Short Sale

If you wish to sell your property, but the net proceeds from the sale is not enough to pay off your loan and you cannot afford to pay the shortage; the investor may allow you to sell your property without paying the entire amount due.

For more information call 301-637-5700 x 301

What's causing this mortgage crisis?

2007-09-06T11:28:00.000-04:00

Who is responsible?

Take a look back, when you were so much in a rush to purchase a home, you forgot the priority of due diligence to yourself. You ran to an open house and said I need a house and you wanted to get in it quick that you didn't want inspection, appraisal, or even a financing contingency to come between that property.

"Now I am in a crunch, what should I do? My payments have increased and my loan floats every month."

You have two options:

1) Call your bank, talk to them, see what they can offer. "Federal and state banking regulators urged lenders and investors to restructure the loans of millions of borrowers at risk of losing their homes as their adjustable-rate mortgages reset to a higher rate." (realestatejournal.com, Sept 6)

2) If this is your only option, you might have to sell your property. If you have enough equity, then it is ok for you, but if you don't then you need to speak to your bank again. Your realtor can play and important role in assisting in this process. They would need to know the requirements of the banks and their guidelines. This is either called a SHORT SALE or a SHORT LIST. They may require some contribution on your part depending on the situation. Many documents including a financial statement is required for this process. Bank would usually accept a sales contract no less than 90% of the appraised value of the home.

In any situation your bank can help. Don't wait till the last minute to resolve this problem, it will only cause agony to you.

Need more info on short sale and foreclosure, Call 301-637-5700 x 301. We will be glad to help.

Foreign Buyers Scoop Up Real Estate in the U.S.

2007-08-17T14:00:00.000-04:00

In a slow housing market, one type of buyer is still bullish on America -- foreigners.

According to a new study by the National Association of Realtors, about one in five American real estate agents sold a second home in the year ending April 2007 to a foreign buyer, defined as someone who has legally entered the United States to buy a home. A quarter of the agents surveyed said their business with overseas buyers had increased over the past five years.

Interest is up primarily because the weak dollar gives foreigners more buying power, but also because American home prices are low compared to places like Britain and Japan. "A lot of them perceive the United States as a bargain," says Ruth Krinke, a Steamboat Springs, Colo., real estate agent.

Buyers are coming from all over the world, the study says, but the biggest proportion -- about a third -- is from Europe, while a quarter come from Asia and 16% from Latin America. By country, the largest proportion of buyers comes from Mexico (13%), the United Kingdom (12%) and Canada (11%).

The study showed that 47% of foreign buyers were looking for a place to vacation, while 22% wanted an investment. Nearly a third cited both motives for their purchase. Though most purchased single-family homes or townhouses, 22% bought condominiums, compared to only 12% of American buyers.

Foreign buyers are well aware of the current anemic U.S. housing market. But prices in once-sizzling areas overseas, particularly in Europe, haven't been putting in stellar performances, either. According to the Global Property Guide, an online research firm, overall home prices in Greece, Ireland, Spain, France and Israel all experienced declines of more than 7% in the first quarter of this year from the year before, compared to 4% in the U.S. for the same time period. Year-over-year prices in Europe's strongest housing market, Riga, Latvia, fell 3.5% in June from a year earlier. According to NAR, U.S. year-over-year existing home prices were flat for June, while new home prices fell 2.2%.

Many foreign buyers are taking a long-term view of the U.S. market. Boris Kolchagov, a Bulgarian carpenter, purchased a two-bedroom condominium in Vail, Colo., two years ago for $320,000 and saw it increase 16% in value. He thought it was such a good investment, he's now looking for a half-acre lot on a golf course somewhere in Colorado where he can build a 4,000-square-foot second home for himself. "The best place to live and invest is America," says Mr. Kolchagov, adding that he plans to mitigate his risk by sticking to well-known resort towns, where homes tend to hold their value over time.

Like their American counterparts, many foreigners are avoiding the hard-hit Rust Belt: 41% bought homes in the South, while 31% were attracted to the West. A few Sunbelt states, notably Florida, California and Texas, are particularly popular with foreign buyers. But balmy weather isn't the only attraction. Nancy Macaluso, a Palm Beach, Fla., agent, says they're picking these places, and not cheaper resort areas in developing nations, because they don't have to be concerned about economic upheavals, political coups or general lawlessness. "Here, they don't have to worry about their children being kidnapped," she says.

The study also showed that international buyers are spending more freely on houses than Americans are. The median price they paid was $299,500, compared to $221,900 for native-born buyers. Daniel Webster Johnson, a Breckinridge, Colo. real estate broker, says that overseas investors are so eager to buy these days, some are keeping cash in American banks or title companies so they can pounce immediately on a good deal. He says that many of his clients are trying to diversify their portfolios, or are trying to move their money away from older, overbuilt areas, like the ski resorts of Germany, where prices have stagnated over the past few years. Mr. Johnson has seen his international client roster increase by 15% over the past year.

But there are still obstacles for international buyers. Aaron Gordon, a Las Vegas mortgage banker, says that foreigners who need financing often turn to U.S. banks, because interest rates and down payment terms are usually much lower than they are in their home countries. But the stricter U.S. lending standards that went into place earlier this year after a wave of subprime loan defaults are being applied to foreigners as well as American citizens. "It's becoming much tougher for them to qualify," he says.

Rising anti-immigrant sentiments, even against legal and part-time residents, are a concern, too. The NAR study showed that international buyers spent an average of 4.2 months a year in their American homes. But real estate agents worry that tighter visa restrictions, spurred by terrorist fears, may curb international interest in the future, particularly for foreign buyers who eventually hope to retire in their U.S. vacation homes without giving up their native citizenship. Nancy Macaluso and her husband Tony, who is also a real estate agent, are lobbying their state and federal legislators to create a "silver" visa that will help them do that. "These people aren't taking American jobs, and they're not living on welfare," she says. "They're bringing their dollars to feed our economy."

Cut Costs on Home Expenses

2007-08-16T16:30:00.000-04:00

Looking for cost-efficient steps to do your part for the environment? Jessica Anderson, a staff writer for Kiplinger's Personal Finance, suggests five ways to save money while helping to save the earth:

1. Go florescent. What it does for your wallet: By switching five incandescent bulbs for compact florescent light bulbs you can save 50% a year on your lighting bill. What it does for the earth: If every household in the country did this it would eliminate the same amount of greenhouse gas as removing 8 million cars a year from the road.

2. Buy local produce. What it does for your wallet: Shipping produce can drive up prices and compromise taste. Buying foods in season from local farmer's markets and roadside stands not only improves quality, but cuts cost. Tip: Go to LocalHarvest.org to find a market in your area. What it does for the earth: Helps keep gas-guzzling trucks off the road.

3. Install a programmable thermostat. What it does for your wallet: Homeowners can save more than $100 a year on their energy bills by installing a programmable thermostat. What it does for the earth: If one out of every 10 U.S. households used programmable thermostats, it would eliminate 17 billion pounds of greenhouse gases, according to the Energy Star Action Guide.

4. Choose Energy Star appliances. What it does for your wallet: Energy Star appliances use up to 50% less energy compared with other home appliances. Using them saved American consumers $14 billion on their utility bills last year. What it does for the earth: Last year the use of energy-efficient appliances cut greenhouse gas emissions as much as removing 25 million cars from the road.

5. Pay bills online. What it does for your wallet: Some companies are starting to charge additional fees for processing paper bills. Blue Cross of California charges $2 a month for paying with paper, for example, and MCI charges 99 cents, reports Kiplinger's Mark Solheim. Paying online allows you to bypass these fees and minimizes the chance of identity theft by eliminating the paper trail most thieves use to access financial information. What it does for the earth: Not only does it eliminate clutter, you can also save trees!

Living it Large

2007-06-01T08:47:00.000-04:00

When it comes to houses, more are living large

Despite shrinking families in U.S., four-plus bedroom homes are on the rise

McMansions are sprouting in the suburbs of Washington and Atlanta, in southern Connecticut and out West in Utah as an appetite for bigger homes just keeps on growing. One in five American houses had at least four bedrooms in 2005.
That's up from one in six in 1990, despite shrinking families and increasing costs for construction and energy. Houses with five or more bedrooms were the fastest-growing type in that time, adding to the nation's consumption of resources and reputation for excess.

In this country, bigger is better," said Gopal Ahluwalia, vice president of economic research at the National Association of Home Builders. "This is true for houses and this is true for automobiles."

Utah leads the nation with nearly 40 percent of homes having at least four bedrooms, according to a report Tuesday by the Census Bureau. Demand is high in part because Utah has more people per household (3.07) than any other state.

Among states with the biggest percentage of large homes, Utah was followed by Maryland, Virginia, Colorado and Minnesota. Arkansas had the smallest share, at 12.6 percent. In much of the country, the growth in big houses is fueled by suburban home buyers seeking luxury, rather than big families needing space, Ahluwalia said. "They are buying for lifestyle," he said.

Nationally, the average household size has shrunk slightly since 1990, to about 2.6 people. Meanwhile, the average new house grew by nearly 400 square feet, to 2,434 square feet. "You cannot sell a new home today with 1 1/2 bathrooms," Ahluwalia said. "Even if only two people are in house, they still want 2 1/2 to three bathrooms."

Homes in the United States are much bigger than they are in other countries, according to figures compiled by the United Nations. American homes, on average, are nearly twice as large as those in many European countries, including Britain, France and Germany. Only Luxembourg comes close among European nations, with average homes about three-quarters the size of those in the United States. U.S. homes are also becoming more expensive.

The median home value jumped more than 40 percent form 1990 to 2005, to about $167,500. Most big homes in the U.S. are going up in the suburbs, contributing to sprawl and congestion, said Vicky Markham, director of the Center for Environment and Population.

The Washington metro area fits the national trend. About a third of all homes in the region, which includes suburbs in Virginia and Maryland, have at least four bedrooms.

In the city of Washington, only 12 percent of the homes are that big. All those big suburban houses require more land, more materials to build and more energy to heat and cool, Markham said "Excess is a matter of how each person views their own life," Markham said. But, she added, "Each person today is taking up more resources, more land, more energy than generations before."

Growth in Washington - An inside look

2007-05-15T02:02:00.000-04:00

In the recent years after the low and never seen interest rates that we had seen in the years of 2003 and 2004. A large number of job seekers moved to the expanding FDA, new convention centers, hotels, and stadiums; the inflation was out of control.

With many new developments and rates still lower than the 90’s, the market is in a state of correction. Despite of the slower sale pace last year, the Washington metro area housing market saw its third highest sale year on record behind 2004 and 2005. An analysis of Metropolitan Regional Information Services data showed sold dollar value totaling near $40 billion in 2004, $42.5 billion in 2005 and $33 billion in 2006. Right now, the housing market might be seen as a weakness for the economy, but other sectors continue to pick up the slack, and employment growth, population gains, and income growth persist.

In 2007, the Washington area economy will continue to expand at a decelerating pace, with job growth and government procurement spending growth easing in the region. Current conditions suggest the housing market will continue to adjust from the rapid price appreciation experienced in 2004 and 2005. This adjustment period should lead to the average number of days on the market rising further, as buyers wait to see how much more home prices will decline. However, by late spring, we expect that consistent demand (generated by job growth) and a reduction in new construction will stabilize pricing, and that the second half of this year will bring improving market conditions.

Top 7 Tips When Buying a HUD Home

2007-05-12T08:49:00.000-04:00

HUD homes offer many buyers the chance to purchase their home with built in equity, and allows investors some fantastic deals, as well.

When the foreclosure rate is particularly high, as it is in 2007, HUD's inventory swells, and there are deals to be made. HUD deals are very different from traditional purchases, however, so make sure and follow sound advice before purchasing your first HUD home. Follow these tips, and you will be on your way.

1. All HUD Homes Aren't Great Deals

Many buyers mistakenly assume that, if the US Department of HUD is selling, it must be a great deal. This couldn't be further from the truth! Many Realtors relentlessly market HUD homes to drum up business, and this can create a glut of HUD buyers. When the HUD inventory is particularly low, oftentimes buyers will bid the property up to, or above the fair market value. Look at every HUD deal on its own merit, and make your decision based on that.

2. Understand the Bidding Process

HUD purchases are very different than conventional deals because they follow a "blind" bidding process. The bidding date is released by HUD, and each buyer submits their best offer-without the knowledge of any other bids. As long as HUD finds the highest offer acceptable, that offer is accepted. HUD retains the right to refuse all offers.

3. Know the Difference Between "Owner-Occupant" & "Investor"

One of HUD's goals is to increase the number of US citizens who own homes. Because of this, they give preferential treatment to owner-occupants over investors. Owner-occupants have the first 10 days to bid on any home before it is released to investors. A buyer may bid as an owner-occupant once every two years. Make sure and bid honestly-otherwise it is illegal, and can result in hefty fines.

4. Anticipate Repairs

You are allowed the opportunity a third party inspection before closing, but buyers cannot negotiate repairs based on the results. Backing out of HUD deals & retaining your earnest money is trickier than conventional purchases, too, so you may run the risk of losing your earnest money. Make sure and go through the home thoroughly before bidding on it.

5. Continuously Monitor the Inventory

As foreclosure rates rise and fall, so does HUD's inventory. The laws of supply & demand definitely apply here-when the inventory is high, your chances of getting a great deal are higher than when they are low. Follow the asking price & sales price of HUD homes-if they are selling far over asking, it might not be the time to buy.

6. Make Sure Your Realtor & Lender Know the Process

After your bid is accepted, the paperwork begins! In Texas , HUD requires that you submit original signed (in blue ink) paperwork to the HUD agent's office within 48 hours of the bid's acceptance. If the paperwork is incorrect, you are allowed one revision-which must be received within 48 hours. They are just as strict with a lender's closing documents-so make sure both your Realtor & lender are very familiar with the HUD process. Oftentimes, the HUD agent's office will be located in a different city-and often, the escrow agent will be located in yet another city-this can put a very interesting twist on the process, and time constraints.

7. Act Quickly & Decisively

Because HUD places very strict time constraints on bidding, and due to the bidding process, you must act quickly & decisively. You will typically have 1-2 weeks from the date HUD places the property on the market until the bidding period begins-and more often than not, the property will be purchased on the first day of bidding. Make sure & exercise your due diligence, and make your decision quickly-you often won't get a second chance.

HUD homes can be fantastic opportunities for a buyer or investor to get a great deal on a property. However, because the purchase process is quite different, make sure & do your research before attempting to find your first buy. Follow these tips, & you will be on your way to a successful transaction!

Disclaimer: The information above is based on Aj's experiences with HUD in Maryland from 2004-2007. The process continually changes, so make sure & get the most up-to-date information for your area before bidding.