Southern Maryland Real Estate Blog

HAP Guidelines Released- Military Homeowners finally have relief via DoD

The Homeowners Assistance Program (HAP) has released the DoD guidelines for Wounded Warriors, Warriors in Transition, and PCS moves.  The government has established a $555 million fund to aid military personnel who are unable to sell their home due to economic constraints.

This program, which covers up to 90% of the original purchase price of the home, is designed to help service members pinched by deflating home values. A copy of the DoD guidelines can be found here:

Download DOD_Guidance

I've already listed several homes that fall under this program, and although it is not ideal, any relief for our veterans is sorely needed and appreciated!  In order to apply, please visit the HAP website and download the eligibility and application guidelines to enroll in the program!

Related Posts:

Military Relocation Relief is expanding

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

Charles County Real Estate Blog
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Southern Maryland Custom Homes & Land

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Bad Photography 101- Is Your Realtor a Lousy Photographer?

A common complaint among home sellers is that photos that are taken to market their home look less than stellar.  I know how to take a good photo, but my brother knows how to take a GREAT photo.  I know my limitations, and I leave the photo taking up to him.

I saw a wonderfully terrible photo in a listing recently, and it reminded me of just how many factors come into play when photographing real estate.  They say a picture is worth a thousand words, and this one says more than that.  It's a perfect example of things to AVOID when marketing a home!

If you're dogged by bad listing photos, give Thomas Benya a call (301-653-1499). He can help you analyze your homes features and stage your property to make the marketing pictures and videos pop!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

Charles County Real Estate Blog
SOMD Home Search
Southern Maryland Custom Homes & Land

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Maryland Short Sale Negotiation- The Art of the Hardship Letter

There's been a huge increase in Southern Maryland Short Sales over the last year thanks to the ongoing housing crisis. More often than not, they end up as foreclosures, many times because the path to negotiating is at best, murky. When working with a lender to get a short sale agreement, there are several things that they are going to ask for, including tax returns, financial statements, investment records, etc. They're also going to ask for a hardship letter.

So what is a "Hardship Letter", exactly?

It's essentially a personal letter to the bank explaining why you can't possibly afford to pay the mortgage anymore. The thing to remember about the hardship letter is this: The sadder, the better! This is really where you want to work closely with your Realtor to brainstorm on all the reasons why you can't pay the mortgage. Sick mother? Kids with serious medical bills? Devastating car accident? Job lost due to faltering economy? This is your time to say so!! Whatever you do, don't lie about it, but make sure you are maximizing the hardship you are experiencing. The banks are willing to work with people, but excuses such as admitting you falsified loan docs to get the house aren't exactly going to make the bank jump for joy.

It DOES make a difference!

The banks can only work with the information they are given, and the more hardship they can establish, the better off your chances of getting the short sale approved are. Questions about how to survive a short sale or get your hardship letter written? Send me an email to jonbenya@mac.com and I'll be more than happy to help!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Charles County Real Estate Blog

Join The SOMD RE Blog Community and get free news and updates via email!

The Art of Lowballing a Foreclosure

    Trying to buy one of the multiple foreclosures (REO, or Real Estate Owned) for sale in Waldorf, MD or Charles County MD?  Most folks who are trying to buy a foreclosure are looking for a great deal, and while there are some deals to be had, it seems like there is just as much overpriced junk that needs to be reduced in order to sell.

     In comes the concept of the low-ball offer.  Low-balling is where you offer considerably less than the asking price on a home.  It's easy enough to write (You always have the right to offer as much as you think is fair), but writing the offer and getting the offer accepted are two very different things!

    So how do you convince the banks to accept less than they want for a foreclosure?  Well, there's a couple of ways to increase your chances of getting that offer accepted.

    With a buyers market, the more enticing the TERMS of the contract are, the better your chances of getting the deal to closing.  Think about what perks you have to offer in the contract.  Here's an example of things that can make your offer more attractive:

1. Offer a quick closing- The less time the bank has to hold the property, the better off they are.
2. Don't request repairs-  Banks are selling as is, and with a low-ball offer, structure it such that you are contingent upon an INSPECTION WITH WALK-AWAY rather than repairs
3. Avoid contingencies-  If you want the banks to consider a low-ball offer, there has to be a good reason.  Bogging down a contract with multiple contingencies is a good way to get the offer rejected.
4. Offer cash- With a cash offer, there's no risk of loans not being accepted, which can be very appealing to the bank.
5. Look for homes with "market rot"- Homes that have been up on the market for more than 150 days are good targets because the bank has been holding them for longer than they would like.  They probably need to lower the price, and are more likely to take an offer.
6. Write a letter-  Sounds cheezy, but outlining why you're offering this sort of price can help the bank make sense of the offer.  Every little bit helps, and I've seen things like this actually make a big difference.

Related Posts:

What Does "AS-IS" Mean?
Waldorf, MD Foreclosure Update for August, 2008
Foreclosure Buying Tips Part 1
Foreclosure Buying Tips Part 2
Foreclosure Buying Tips Part 3

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Southern Maryland Real Estate Blog

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Hope for Homeowners Act of 2008; Who does this help in Maryland?

It's official: The Hope for Homeowners Act of 2008 has been signed by the president and now we shall see who this helps.  For struggling homeowners in Maryland, here's a quick breakdown of the criteria to qualify:

In order to apply for this program, you must:

• Have a loan originated prior to 2008
• Be paying paying more than 31% of your monthly income on your mortgage
• The program qualifies for PRIMARY RESIDENCE ONLY
• Have your income verified

    The program will not take effect until October, 2008, runs through September, 2011, and here's the kicker (There's always a catch, right?):

Lenders can pick and choose which loans to refinance under the program!

    This means that if your lender isn't in the mood to adjust your loan, you're out of luck!  The catch is that the bank WILL be losing money on the deal, as the loan is essentially going to be giving owners 10% equity (Loans can only be up to 90% LTV), so I would imagine that even though 400,000 people are theoretically "eligible", far fewer are going to be given a break as the lenders will be eating crow on the deal.

This isn't a free money deal for the homeowners, however:

If you sell during the next five years, you must agree to share 50 percent of any profits from the resale with the government. What's more, homeowners can only retain equity gains based on a sliding scale.

The homeowner would have zero equity from a sale in the first year, with the amount rising 10 percent in each succeeding year and capping at 50 percent from a sale in year five and thereafter. The equity must be repaid because the maximum amount on the new loans will be capped at 90 percent of the current market value.

    This has a big impact on OUR area because of all the military families in the area that are struggling to make payments.  If you get re-assigned in a year, you lose all of your financial gain in the home!

    The entire 694-page bill can be viewed at: http://www.house.gov/apps/list/press/financialsvcs_dem/hr3221_bill_text.pdf

Want more information on the new bill, and what it means to you?  Call Jonathan Benya at 301-653-8116 and I'll be more than happy to help explain what to do and how to do it so you can take advantage of this opportunity!

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St.
La Plata, MD 20646
301-653-8116
301-609-9000
http://www.teambenya.com

The first step to selling your home: Finding A Price ~Part 2 of the Savvy Seller Series~

    The Real Estate Market in Charles County is tough right now, period.  Even experienced tried and true agents are seeing less sales, less showings, less of everything but listings!  It underscores how hard it is for people who are in the process of selling their home, or getting ready to put their home on the market.

    People often think that their home is the nicest one on the block(it's a natural bias), and it can be difficult to examine their home critically.  It's important to understand that this is a natural feeling, but selling a home is a business transaction (a BIG ONE!), and it should be treated as such.

Finding A Price

    The first step in selling a home is establishing it's value, and this is done with a Comparative Market Analysis (CMA).  A CMA is essentially a comparison of other homes that are similar and have been on the market recently.  Any local, licensed Realtor should be able to do one for you, typically free of charge  There are 3 major categories to a CMA:

• Active Listings= What Comparable Homes MAY sell for (This will be your competition!).

• Sold Listings= What Comparable Homes HAVE sold for.

• Expired/Withdrawn Listings= What Comparable Homes DID NOT sell for (Homes here were priced wrong in relation to their condition).

Dude, Where's My Upgrades?

   A big concern to keep in mind is that all of those extras your home has may or may not positively impact the value when it comes time to sell.  Here's a good example:

    Let's say you've just remodeled your bathrooms.  In the renovation, you installed $10,000 solid gold toilets.  They're fabulous, probably the best looking toilets in the whole county!  Now, all you have to do is find someone willing to pay $10,000 more for your house because the toilets are solid gold.  "They're worth $15,000 if you melted them down!", you say.  That's great, but you are trying to accomplish two very difficult tasks.

1. Find a buyer for your house in a slow market
2. Find a buyer for your house that's willing to pay an extra $10,000 for prettier toilets.

    Unfortunately, you're not likely to see the value return in a case like this.  The home has been over-improved.  That's not to say all upgrades are worthless, but they need to be suitable for the property. 

I Was Certain It Was Worth More!

    A CMA is designed to give a range of value, not a definitive number.  For a precise figure, you need to pay an appraiser to do an appraisal on the property.  If you don't like the range that an agent comes up with, that's okay!  Chat with the agent about why you think the numbers are off, and see what you guys can come up with.

     Agents aren't perfect, and every real estate agent figures CMA's differently.  This is a very important point!!! ***The agent with the highest CMA isn't necessarily the agent who's going to get you the best price for your home!***  The agent with the best marketing ability and negotiating skill is going to get you the best price for your home.

    Think about it like this:

    Two agents interview to list your home, One with a great marketing plan, and lesser CMA value, and one with a so-so marketing plan, but a value of $45,000 higher.  One agent is off on the price, plain and simple.  The solution?  Ask the agent with better marketing to try listing at a higher price!  This way you don't risk leaving money on the table, AND you get the best marketing possible.

    Understanding how to best price your home is the first step to being able to get your home sold!  This is Part 2 of the Savvy Seller Series here at www.teambenya.com.  Be sure to check in next week when we will be posting the next edition, focusing on home presentation and staging!

Related Links:

The Savvy Seller Part 1: Your Next Home Will Be Bought or Sold Online!

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com

A New Blogger On The Block! Please Welcome Steve Combs!

    For those of you who haven't met him, I am very pleased to introduce Steve Combs to the Southern Maryland Real Estate Blog!  Steve is the Regional Vice-President of 1st County Mortgage, and he has graciously agreed to become a guest blogger here on my little part of the web!

    I'm really excited and grateful that Steve has agreed to chat on here a bit, because this guy is a real expert when it comes to mortgages, and he's able to discuss in much greater detail how the loan process and loan market works!

    On a personal note, I also consider Steve to be a friend of mine, and I'm very impressed by the quality of his efforts and capability.  Whenever I have a problem with a loan, I know that a call to Steve will get the problem solved, and that means worlds to a Realtor like myself!

     Steve will be posting weekly here on Tuesday Mornings, so make sure that you check back to keep up with all of us here on TeamBenya.com!

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com

Work, and Reward

     I admit, I'm not a big fan of the cold weather (why I ever lived further north is beyond me!).  I like summer, I like warm sunny weather, and I'm ready to enjoy said climate again.  I realized this morning that we are already in the middle of March!  Now, you would think this would be obvious, but not to me.  The days all run together when you don't take time off, and I've been neglecting to give myself any personal time.

     With as many hours as I work each day, it's made me think about WHY I insist on working such long hours.  I think it has a lot to do with upbringing.  My brother and I both grew up on the water, and it was the greatest experience I could have ever asked for as a child.  We went crabbing daily, fishing just as often, and we typically ate whatever we caught that day when dinnertime came.

(For those of you In Southern Maryland or coming to the area, head to Captain Billy's for dinner, and order the crabs.  You'll thank me later.  Unless you're allergic to shellfish, in which case you should probably ignore me)

You've Got To WORK For The Reward

     My parents were by no means wealthy, but they worked very hard for what they have, and among a list of things too long to mention, they taught us how to:

1)  Enjoy the basics.
2) Understand that if you enjoy your work, the long hours you put in are easy.

     Fishing for dinner?  We've done it.  We didn't get the fancy Jet Ski's or power boats our friends got as kids.  We got a sailboat instead, the kind that fits one, possibly 2 if someone hangs off the side of the boat.

Jib Jabbering

      Sailing that boat was work, bar none!  It taught us some very important life lessons, though, and to this day, we still have that old boat, and I have zero interest in powerboats.  I remember being disappointed that I didn't have the latest and greatest toys as a child, and I didn't fully understand what my parents were doing, but there's no way I could thank them enough today.

     Whenever I wanted to go sailing, it took an hour just to prepare the boat, and another 30 minutes to take the gear down afterwards.  I saw the link directly:  A little work, and a little reward.  I learned to enjoy working, and was glad to do so.  It's carried over into my adult life.  I enjoy my work immensely, and so I don't feel a need or desire to take time off often.

     At any rate, because it's now mid-March, I need to take a day off, and go to Annapolis.  I need new sheets for my little boat, and I'm running out of time if I want to have it in the water by May first!  I wonder, will that qualify as time off to relax, or do Thomas and I need to find a new way to unwind?

      (In case anyone was wondering, Thomas was the one sailing in the previous picture.  He's on the left, on the right in the fashionable orange jacket is a dog.)

FHA Lending Limits Change

     We've been expecting to see this, but the new lending limits for FHA loans in Southern Maryland have been published (fair warning: this is kinda dry information, add water as necessary).

    For Charles County and Calvert County, the new limit for a FHA loan on a single family home is $729,750.  For those of you who know the area well, that's an astronomical number when you consider the average sales price of a home is closer to $300k!

   

St. Mary's County is considerably lower, the new limit is now $400,000, and while St. Mary's is considerably cheaper to live in, this is still a remarkable change.

    Also, Prince George's County has been adjusted to $729,750 as well.  The biggest benefit for buyers is likely to be in P.G. County, and hopefully this will help to keep loan rates down as less people will have to consider Jumbo financing.

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com

Charles County Foreclosure Update March 2008

    I'm seeing more and more foreclosures, and none of the government assistance programs seem to be helping stem the tide of foreclosures that we're currently seeing.

Do Foreclosures Affect My Home's Value?

    In Charles County in the last 60 days, there have been 12 foreclosures that have been sold, and a total of 135 (resale AND REO) homes listed and sold.  This means that foreclosures make up almost 9% of the total market in terms of sales.

    A lot of homeowners have been wondering how much of a bearing foreclosures have on their own homes value, and it really needs to be evaluated on a home by home basis.  Here is what people need to bear in mind:

• There are 1,487 homes for sale in Charles County today (02/29/2008).

• There are 86 Foreclosed Homes on the market today (a record high in volume, and 5.7% of total market volume).

    If 5.7% of the market's volume is generating 9% of the total sales, it is obvious that there is a disparity.  Foreclosures are more *likely* to sell.  Why is that?

    Well, there are numerous factors involved here, but it seems apparent that the incentives to buy a foreclosure (namely, the price) outweigh the risks and problems (difficulty communicating with the banks, poor condition, etc.). 

    There's another way to look at the puzzle as well.  In the last 60 days, 16.5% of the total volume of foreclosures in Charles County have sold.  Only 9.1% of the total homes on the market sold in the same time period (60 days).

    If you're suffering from difficulty selling your homes because of foreclosures in your neighborhood, it's important to make sure that your homes best features are being showcased!  Standard resale (i.e., not a foreclosure, short-sale, etc.) has some serious advantages! 

     The biggest things to consider are the differences between your homes and foreclosures when it comes to condition, ability to close quickly, and the ease of contract approval!

What's The Market Really Like?

For Sellers
     Right now there's a 12 month overstock on Foreclosures in Charles County, and a 21 month overstock on listings in general!  It's an intimidating figure for anyone considering trying to sell, and the argument is a "lose now, or lose later" situation for some people, so trying to sell a home in this market is not a decision that should be taken lightly.

For Buyers
    The potential to find a property that is right for you; at the right price is huge!  The difficulty is in easily identifying the best deals.  Because there are so many properties available for sale, you need to be careful to ensure that you're seeing the best possible deals out there.  This is why working with an experienced qualified Realtor is so important!

Related Links:

Current (3/1/2008) List of Foreclosures in Charles County (PDF Format)

Current (3/1/2008) List of Foreclosures in St. Mary's County (PDF Format)

Current (3/1/2008) List of Foreclosures in Calvert County (PDF Format)

If you have any questions about the current Foreclosure Market in Southern Maryland, feel free to ask!  If you'd like to try and find a deal by searching for a foreclosure, I'd be more than happy to set up an automatic search for you so that you can find out about the best deals as soon as they hit the market!

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com