Southern Maryland Real Estate Blog

Military Relocation Relief is expanding

Several years ago the Department of Defense rolled out the Housing Assistance Program (HAP) for service personnel the were relocated due to Base Realignment and Closures (BRAC).  Due to the overwhelming mortgage crisis, that program is being expanded, and you may be eligible to receive financial relief if you're moving due to permanent reassignment!

The guidelines for HAP have been revised to also include:

• Military personnel with PCS orders who are unable to sell their homes
• Wounded warriors required to relocate for medical reasons, and
• Surviving spouses of fallen service members 

 Who Is Now Eligible?

Eligibility requirements for the expanded HAP program are:

• Permanent reassignment requires move of more than 50 miles.
• Reassignment ordered between 1 February 2006 and 30 September 2012 (or earlier date designated by Secretary of Defense).
• Property purchased (or contract to purchase signed) before 1 July 2006.
• Property sold by owner between 1 July 2006 and 30 September 2012, or earlier date designated by Sec. Def.
• Property was the primary residence of the owner
• Owner has not previously received these benefit payments.

What Does This Mean?

Essentially the DoD will reimburse up to 95% of any loss on the sale of your home, provided the home was originally purchased before July 1, 2006.  The DoD MAY also elect to purchase your home from you for up to 90% of it's current value.

Unfortunately to DoD has not yet released the detailed compensation guidelines, so they will not be approving any applications just yet.  They are, however, recommending that any Military Personnel who may be eligible should submit their applications ASAP.  Applications received now will be held until guidelines are released.

How do I apply?

In order to apply for the HAP program,all you have to do is go to the Hap Website and download the application form.  They have complete instructions there and will be notifying applicants once the guidelines are released.

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

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3 bed/ 2 bath Rambler in Indian Head, MD with Acreage!

I can't say enough good things about this property!  This adorable rambler is located in Indian Head, MD, and sits on nearly 3 acres.  It has 3 spacious bedrooms and 2 full baths, and a partially fenced yard.  One of my favorite features about this property is that the yard is so open!  It's not often you find a property with so much open, usable land!

To schedule your appointment, please give us a call!

~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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Charles County Foreclosures January 2009 Report

    Here's a quick look at the local Charles County Foreclosure real estate market.  From Waldorf to Newburg, if you're looking for a foreclosure in Charles County, MD, you need to talk to Team Benya!

How many foreclosures are available for sale in Charles County right now?

71 (See a free list of them here!) This list is sent out free every week to all of clients.  Ask to be added today by calling or emailing us!

How many foreclosures in Charles County are currently under contract?

29

How many foreclosures in Charles County have banks sold in the last year?

169 (See a free list here!)

 What is the Cheapest Foreclosure in Charles County right now?

$43,900- 32 Delta Place #32 Indian Head, MD-  A duplex in the Potomac Heights Subdivision, recently reduced $8,000!  These homes are Co-ops, which is similar to purchasing a Condo.  Although the prices are attractive, they have a Co-op fee  of more than $250/mo, which has to be factored in when purchasing a home there.

What is the most expensive foreclosure in Charles County right now?

$659,900- 8715 Hill Spring Drive La Plata, MD- This home is HUGE, sitting on 7 acres of land AND has an in-ground swimming pool!

Looking to buy a bargain?  Give Jonathan a call and put his team of foreclosure experts to work for you!  With Team Benya on your side, you can find out about fantastic foreclosure bargains BEFORE they even hit the market!

~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

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Foreclosure Flipping in Southern Maryland

 I'm seeing an increase recently of investors looking to buy and flip foreclosures.  For the savvy investor there is a big opportunity to make a nice chuck of change, but it's not as easy as Flip This House makes it seem.  Selling a home is still tough in this market, but far from impossible if you're smart about what to buy.

Why More Investors Are Looking:

Local prices are down considerably.  Homes that sold for as much as $330,000 at market peak are now going for $275,000-$290,000.  Not only that, but the increase of available homes allows buyers to be picky.  Most buyers would prefer to purchase something that doesn't need work, and your fixer-uppers become harder to sell.  Tough luck for the seller, and music to the ears of a sharp investor.

What kind of Foreclosure are they looking for?

In a word, cheap!  The real estate market still has the most movement under $300k, and getting a home that can be flipped for less than $300k reduces the risk considerably.  For example, if you can find a foreclosure for $160k that needs $30k or less in work, can you sell it for $250k or more?  If so, you may have just found a potential flip!

Factoring in the market slump:

Remember that market depreciation averages 1% per month right now.  If it's going to take you 3 months to complete a flip, then you should be factoring in a 3% deflation in it's final value.

How do you find good foreclosure flips?

The key is to be searching, everyday!  I'm up every morning at 7:30 am and the first thing I do is update my list of new foreclosures and new properties that are on the market.  When something comes up, my computer automatically sends it to any investors who might be interested in the property, and if they like it, we go see if it might be worth the investment. 

It's important to move quickly, if a good deal hits the market, there is a good chance that others are looking as well, and you don't want to miss out.  Last week I wrote an offer on a property in Waldorf that had been on the market less than 24 hours.  I was already competing with 2 other bids!

In summary:

The three things that are most important to a successful foreclosure flip are:

1. Be quick about buying and selling the property
   
2. Make sure your profit margin is solid
3. Know what the sales conditions will be like when you're done.

If you've got that under control, you should be in good shape!

~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

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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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Is Good News Afoot? Charles County Maryland Real Estate Market Report, July 2008

    Could it be?  Is the real estate market in Charles County Maryland actually looking up?  It's to early to tell right now, and the pressure caused by recent interest rate increases has pushed loan applications down 6% over the last week, and pending sales are down right now as well.

    I know what you're thinking: if rates are rising and pending sales have fallen, what the heck is the good news, right?  well, there's a few early indicators here that might just be good news for struggling sellers! 

Sales Volume

    First off, Sales are up.  Not by much, but we are seeing a few more sales each month, and that number is slowly (VERY SLOWLY) rising, but it's going up none the less, which is a start.

Inventory

    Second, the number of available home has stopped rising over the last 3 months.  It's even (Dare I say it?) Dropping.  This is important because it shows that the skyrocketing supply of available homes has started to drop.  Remember real estate is all about supply and demand, and right now we need to see that supply drop!

Prices

    Prices and Values are a bit of mixed nuts right now.  The average sold price rose to $330k, while the median fell to $300k.  Oddities like this are to be expected while drastic market shifts are happening.  The long and short of it is that homes under $300k are moving the most, but the stagnation we've seen in the $400k+ range is finally starting to move a bit.  This means the average sales price trends higher even though cheaper homes are selling faster.

Time On Market

    Also, note the the average time on market (DOM) jumped above 140.  When you look at this in relation to the volume of available properties, it tells us that fewer and fewer people are putting their homes up for sale, and that more people may be willing to wait the market out.

Summary

    I'm not ready to start shouting that the market has recovered; we've still got a long road ahead of us.  It's signs like this that may indicate slowly improving conditions, if this is just a blip, we'll see numbers fall along with the interest rate hikes and coming fall sales market.  Stay tuned!

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

Charles County Foreclosures List Updated (May 8th, 2008)

    Foreclosures are up slightly in Charles County, and here is the latest list of properties available on the market that are bank-owned.  It includes foreclosures in Waldorf, La Plata, White Plains, Newburg, Hughesville, and all of Charles County!

Bank Owned Homes For Sale in Charles County

    If you have any questions, or would like to be added to our automatic daily updates, please give me a ring or drop me an email and let me know!

~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

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

Charles County MD Home Sales Report, April 2008

Team Benya's Monthly Market Report-  Charles County, Maryland

What's Happened:

    For the first time in 7 months, home sales in Charles County, MD have actually seen some growth!  Earlier this year we were looking at home sales in the range of 50-60 units per month, and now that number is closer to 100!

    Pending Settlements, the number of homes currently under contract, have gone up as well, so there is a bit of bright news in the market this month.  We've also seen the number of homes available on the market level off as well, so now we'll have to wait and see if the trend continues.

    Between February and March we have also seen that the average price of a home in Charles County (roughly $312,000) didn't fall, the average number of days on market (158 days) has leveled off as well, due partially to the increased amount of home buyers we have seen in the last month.

What Does This Mean?

    It's great that we're seeing potentially positive changes happening in the market.  It's a little premature to say that we're going to see prices rise again in the near future, but at least we are not seeing the values continue to fall. 

    Foreclosures are having a big impact on the market right now, and they make up a significant portion of sales, and unfortunately those properties are what traditional sellers are forced to compete with.  The good news to it is that the amount of transactions taking place each month is growing!

     Home owners who are trying to sell should be seeing increased traffic through their homes, provided they are priced right and marketed well.  I've noticed an increased amount of traffic through my listed homes right now, and it's a big relief to my clients to see that the market might be trying to stabilize.

    For buyers, sitting on the fence has been forcing down prices, and we're starting to see some good deals emerge, which in turn has caused the local market to drop price-wise, and it seems that prices are stable, and we're starting to see more buyers take advantage of both the lower prices and the preferable interest rates that are available.

    If you would like more information about the Charles County Market, Foreclosures, Listings, or New Construction Developments, please ask!  I have a wealth of local information and resources and I'm always willing to assist people in navigating this tricky 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

Charles County Maryland Real Estate Market Report, March 2008

     It's slow, but I'm happy to say that we are seeing movement in the real estate market here again!  Typically mid-March to the end of June is the busiest time of year for real estate sales, so it's great to see the shift towards an increase in sales.

     We've seen an increase in not only the number of sales in February, but also the number of pending settlements, as well as the number of listings.

     It's not all roses, however.  Homeowners are still finding it difficult to sell their home in this market, and the average time on market for a home these days is now up to 160 days, up from 147 a month prior.  The average sales price has held steady, and the median sales price is even up a bit, but it's not a good indication that home values are rising at this time.

     This sort of market is the very definition of a buyers market.  Interest rates right now are near 5.8%, and home values are correcting very quickly.  Personally speaking, I've seen a dramatic increase in the number of people looking to cash in on the market, and the number of buyers has greatly increased in the last 30 days.

~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