Southern Maryland Real Estate Blog

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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Rockin' Little Music Shop in La Plata, MD

This really sweet guitar shop called Island Music Company opened in La Plata, over on Charles Street. They specialize in vintage stuff, but sell new as well. They also sell amps, drums, and pretty much you name it. Support your small town businesses and check them out!

~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!

Charles County Fair puppy and piglet races!

My bet was on Britney Spare-Rib, But I think Hamma Montana won it!  Enjoy the videos, I'll be announcing the winner of the $50 Gas Card Shortly!

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

I'm Fair-ly Certain I'll Be There!

    It's that time of year!  The Charles County fair starts this afternoon, so now is your chance to throw the diet out the window, go watch the pig racing, and enjoy all of the carnival rides!

    I'll be there too, just look for my booth near the main entrance.  I'll also be out taking lots of photos to post for you guys, and of course I plan to pack on a few pounds of Funnel Cake myself!

    Here's the hours for this year's Charles County Fair in La Plata, MD:

Thursday, September 11th

4pm - 11pm

Friday/Saturday, September 12-13th

8:30am - 11pm

Sunday, September 14th

9:30am - 7pm

Ages 11 and over - $5.00

Ages 10 and under - Free

4 Day Passes - $15.00

All School Children admitted FREE on Friday, September 12th from
9:00 am to 5:00 pm

      

      

Thursday, September 11th
Ride all evening for one price

Friday September 12th
All rides reduced from
10:00 am to 5:00 pm

Sunday September 14th
Ride for one price
10:00 am to 6:00 pm

For more information, visit

http://www.charlescountyfair.com , and I hope to see everyone there!

 

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

Dear Telemarketers: No Means No!

    Telemarketers seem determined to want to talk to me this week.  Maybe they're suffering from the market slowdown, or maybe they just want to slow me down.  I've had NINE CALLS this week from ONE COMPANY alone.

     Unfortunately my patience usually wears very thin, very fast with these folks.  Hanging up on them doesn't seem to work, they just call back a few hours later.  The conversation usually goes something like this:

Marketing Poo-Bah (MPB)- Mr. Benya, We have this great system where you pay us $400/mo and we will refer anyone who wants to know what their home is worth to you exclusively (big emphasis on the "exclusive" thing)!  You work in La Plata (pronounced incorrectly, of course), correct?
Me- Actually, it's pronounced La Play-ta, how many leads are we talking about?
MPB- Well, it varies, but they will ALL go to you!
Me- Yes, I heard that, but how many leads would be average?
MPB- We won't know that until we start marketing in your area, so it would be difficult to say
Me- Do you guarantee that I will be getting more than 2 leads a week?
MPB- Not per-say, but you will be EXCLUSIVE to your area!
Me- But these aren't people looking to sell, they just want their homes value, which they could find for free on Zillow....
MPB- Oh, I think we both know that anyone looking for their home's value is considering selling.
Me- Well, thanks, but I think we'll have to pass.
MPB- You don't want to generate more business? What have you got to lose?
Me- Well, I've got $400 to lose, and I don't think it fits into our business plan...
MPB- This is a great opportunity!
Me- I agree, but not for me
MPB- PLEASE buy our service!  I've got kids to feed here!
Me- I've got a call coming in, sorry, I've got to go...
MPB- How about I let you think about it, and give you a call back in an hour?
Me- No Thanks, I've really got to go now, Have a good day.
MPB- Well how about this, I will.. <CLICK>

    Inevitably, it starts all over again later in the day.  Apparently these bozos don't understand that I don't want or need their help.  I'm refusing to pick up their calls at this point, although I'm debating feeding the phone to my German Shepard the next time they call. 

 

    I spend all day focusing on my clients, I don't like being distracted by telemarketers in California who think they know more about my local market than I do.   Let's get real, you can't even pronounce my town's name correctly, how do you expect to know what my market is like?

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

Cat Juggling & Real Estate

    Why are so many homes sitting on the Southern Maryland real estate market without a buyer?  The answer is simple:  The sellers are cat juggling!

    Remember the Steve Martin movie "The Jerk"?  Father Carlos Las Vegas De Cordoba shows Navin Johnson (Martin) an absurd video clip of cat juggling and Martin proceeds to cut a big fat check to Father Carlos to combat the evil cat jugglers.  It's funny because the idea of cat juggling is absurd, and paying a church to stop it is even dumber.

    Overpricing your home in a buyers market is a lot like cat juggling.  It's completely absurd, and the only people who would even consider buying your home would be a true sucker.  Even placing your home on the market for 2-3% more than the market comparisons show would be dangerous ground.

Think like your buyer: 

    With two identical homes on the market, why would you write an offer on the higher priced home?  You wouldn't, and neither would any other buyer with two cents worth of common sense.  You'd write the offer on the lower priced home, because there's less hassle.

    At some point sellers realize that nobody is really as stupid as Navin Johnson, and cat juggling makes absolutely no sense.  In the meantime, buyers are forced to look at a lot of overpriced junk in order to find the right home, and cat jugglers are left fuming that their home hasn't sold.

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

Buying A Charles County MD Real Estate Foreclosure?: Get It Inspected!

    There seems to be a common misconception about buying a real estate foreclosure in Charles County.  Banks are trying to get as much money as possible for the real estate they own, but they typically demand that their homes are sold "as-is" (What Does "as-is" mean in real estate?).

    This does NOT mean that you should skip the home inspection!  Quite the contrary, if you're trying to buy a primary residence, the inspection is absolutely crucial! 

    Don't believe me?  Well, would you buy a car without knowing it runs?  Buying a home without an inspection is the same concept.  Does the furnace still work?  Have the pipes burst?  Have termites eaten through the walls?  You just don't know without that inspection!  I can see the marketing slogan now:

Lovely home with rustic living (furnace is shot, bring blankets), In-ground pool possible (Basement is flooded), and lots of natural light (Termites were hungry)!

Danger Will Robinson, Danger!

     All you wanted was a great deal, and instead you end up with a money pit.  While the inspection won't fix the problems, you are saving yourself from possible FINANCIAL DISASTER by knowing what sort of problems (if any) may exist.  When it comes time to write a contract to purchase a foreclosure, bear this in mind:

1. The home is being sold as-is, and
2. The bank is not likely to do any repairs on the home, so....
3. The inspection is for "informational purposes only" (That's Legalese for: Don't even THINK of asking for repairs!)

    If you want to keep yourself protected, make sure that any inspection being done for "informational purposes only" has a "walkaway" clause.  This means that if you find something wrong with the inspection that you don't like, you can cancel the contract, get your deposit back, and find another property that suits you.

    Banks are doing everything they can to relieve themselves of liability.  As a buyer, you need to make sure that you and your Realtor are keeping your financial interests protected!

Got questions about buying a foreclosure?  Give me a call!

~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

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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Are Granite Countertops Killing You?!?

    Yes, I know that they're expensive, but killing your wallet is one thing.  I'm talking about your health on this one! The NY Times posted an article today about granite countertops.  In an era where everything we do and eat is potentially hazardous to our health, what's one more household risk, right?

    You see, Granite emits VERY MINOR levels of radiation.  In a few rare cases granite emits higher than average levels, and the EPA is apparently seeing a rise in calls from home inspectors regarding the safety of our beloved counter finishes.

“It’s not that all granite is dangerous,” said Stanley Liebert, the quality assurance director at CMT Laboratories in Clifton Park, N.Y., who took radiation measurements at Dr. Sugarman’s house. “But I’ve seen a few that might heat up your Cheerios a little.”

    Perhaps it could be marketed as a selling feature(You'll never need to use the stove!), but realistically the odds of your own counters being risky is remote.  If you're concerned about it, your best bet is to get a radon inspector out to your home to test your homes' radiation levels.  It should probably run you about $100-$300 dollars, and you'll know for sure if there's a problem.

    It begs the question:  "How long will it take to cook an egg on a counter like this?"

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