What is your definition of a bad housing market?

I sit here and watch the national media and the local media tell everyone we are in the worse housing slump ever.  The market is horrible…the sky is falling!  Falling for WHO? 

I continue to get search engine hits like; “How bad is the Housing Slump in Frederick” “Are prices declining in New Market”  “What is the average days on the market in Brunswick”  “How to save from going to foreclosure” People are concerned, but still sitting on the fence, because the media telling everyone it’s the worse time to buy.

Early 2000s…houses were selling like crazy, buyers were backed up at the door writing contracts on the hood of the agent’s car, interest rates were low, lenders were writing loans in their sleep…We were in a “great housing” market?  For WHO?

Frederick County has more than 2300 homes on the market,  Washington County has almost 1500 homes, Montgomery County has more than 5900 homes, Howard county has more than 2000 homes, and Carroll Countyhas more than 1200 homes.  That is almost 13,000 homes with in 35 mile circle of the Frederick Area. 

It’s not bad for the media.  Real Estate magazines are fatter than they have every been, there are more are more ads in a Saturday and Sunday edition of the Frederick News Post and the Thursday edition of the Gazette.  There are signs on every corner on the weekends saying “Look at ME!!!” “Look at ME!!!”  So really who is this market bad for?

Definitely not the Buyers…First time home buyers and those that are looking for a second home or even a vacation property.  Sure, it maybe a little tougher getting a loan today, but here again tougher that what?  You have to do more that just breath to get a loan today.  And you know what, once you sign the papers on this loan, you shouldn’t have a worry in the back of your mind that you can’t actually afford it.  Lenders have tightened up their requirements after the debacle that we living through right now.   There isn’t anything called “Creative Financing” anymore.  It’s more like this:  Good Credit + Real Income + (optional) Down Payment = Loan to Dream House. 

Again who is it bad for?  Home owners that have bought their home in the last couple years and are trying to sell now.  Home owners that have fallen victim to bad loan advice and have not corrected it.  It’s bad for investors that are dumping their properties to get out of them.  (We are not dealing with the Stock Market)  It’s really bad for those that have to get out of their home quickly due to financial burdens. 

My advice…buy now!  But only buy, if you plan on living in your home for the normal time of 3-7 years.  Your home is a long term investment, not a short term high risk investment.  Buy the house because your family will grow up loving the area.   Prices are low, inventory is high…you have choices and homes are being presented in the best shape they have ever been in…why?  They want to sell to you.  Go Shopping!!!

Related posts;

• Buying A House in Frederick MD What do you need to know?
• Buying a house in Frederick Part two
• Buying a Home in Frederick – Home inspections Part III —

An Open letter to the Sellers in Frederick County

 Dear Home Sellers,

Don’t hate me for my honesty.  I am here to help you sell your house.  That is what you hired me to do.  I have sold plenty of Real Estate and I truly want to sell yours, but I need your help.  You see, the real estate market is not quite the way is was a few years back when you bought it.  I know you fell in love with it the moment you laid your eyes on it….you had to…the couple standing behind you were thinking the same thing (if not this house, what other house can I buy?)  Inventory was low and the demand was high.  It really seems like the price you paid in 2005 is about same price you can sell it for now…

Today, buyers aren’t standing in line outside your house the moment the sign goes up.  The houses are lining up on the internet.  With more that 2300 homes listed in Frederick County, how are you going to stand out from the rest?  The main reasons a house do not sell; Price, Presentation and Location…You control 2 out of 3. 

Your dated cabinets don’t compare to the newly updated kitchen that your neighbor has.  I know that bright blue and yellow paint in the game room matches your alma mater, but the buyers are not impressed since they went to Penn State.   You love your family and it shows and shows and shows…with all of your personal stuff displaying all through the house, it is hard for the buyers to see their family in this house.  Your rooms look small with all that furniture in there….It’s time to declutter the house.  Have a yard sale before you put it on the market.  Give it away to Goodwill or other charities.   (People are experiencing hardship all the time)

Speaking of hardship, I am sure you have been watching TV, plenty of home owners are experiencing financial hardships.  Of course the media is not going to report all the home owners that are making their house payments…they love selling tickets to a train wreck.  What happens when one of your neighbors experience a foreclosure?  They have to sell their house quick.  The price is lowered and lowered.  But you’re thinking that’s a foreclosure…that won’t affect me!!!  Unfortunately it does… That becomes your next comparable in an appraisal.  RealtyTrac says we have 270 homes in Frederick right now going throught the Auction Process and 99 in preforeclosure.  Combined, that is more than  15% of the homes that are currently on the market now.  Not all of these homes are listed for sale right now… the owners are trying to save it themselves or the bank is already taking over the property.   But they will be soon…priced lower than yours.  Will yours show better?

I offer this advice, if you have to sell right now, be smart.  The market is what the market is… You can’t sell a $100 bill for $125.  Price is a key part of getting it sold quickly.  The average days on the market is around 110 days.  (30 days in 2005)  If you don’t have to sell right now, wait it out…we will make it through these tough times.  But in the mean time, prepare your house for when the market turns in your favor. 

• Declutter
• Update your much needed appliances
• Fix up everything that has been on your list
• Nuetralize your paint colors
• Landscape – curb appeal
• Seek the advice of a REALTOR®

Sometimes the truth hurts…I am here to help you understand the market so you can make informed decisions. 

Best Regards,

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55+ Active Adult Community Open House Sept 22nd

 Agents in my office are sponsoring an open house in Mill Crossing at Tasker’s Chance on September 22nd 11AM – 4PM.  You are invited to view the gorgeous model and sign up for prizes drawings.  If you are looking to downsize in to a maintenance free community, this is a definite must for you.

This Active Adult Condominiums community is convienent to shopping, restaruants and public transporation.  Located just off Route 40 and Route 15, this community is nestled in the village of Tasker’s Chance in Frederick, MD. 

Each Mill Crossing condo offers 2 bedrooms and 2 full baths, 9 foot ceilings, and a private balcony or patio.  As part of this Active Adults lifestyle, you will enjoy the use of the fitness center, community room, bistro and outdoor putting green. 

Click here to take a Virtual Tour of Mill Crossings at Tasker’s Chance

To see more of this Active Adult community, contact Ron Alexander or Sandra Cook at 301-663-1552.  You can email Ron directly by clicking here.

• Open House September 22nd 11AM-4PM
• 120 Burgess Hill Way, Frederick MD 21702
• Normal Business hours are
  • Wednesday and Friday 11AM-3PM
  • Saturday and Sunday 10AM-4PM
• Sales Manager Ron Alexander (301) 663-1552

Looking for a career in Real Estate?

Any more it seems that everyone you meet in Frederick County is either in Real Estate or has been in Real Estate.  Why is that?  For the most part everyone thinks it’s easy money.  All that commission you get to keep!!!  First of all it’s not all that easy and definitely not a lot of money when you are trying to run your own business.  The broker gets a piece, the goverment gets a piece, etc… We have seen a continuous exodus to the industry since the market has slowed down and this is not a bad thing… plenty of folks got into this industry and really shouldn’t have in the first place.   Good people, but just not made for real estate.  It comes with a lot of responsibility to wear that big old R.

If you are self motivated, persistent and great with people, then you might have what it take to start a career in real estate.   If you are interested in a career in real estate, contact me for more information or times for our Career Nights.  I will gladly go over what it takes to begin a successful career in real estate.  There is much more than going to real estate school and taking classes for Principles and Practices of Real Estate.  You need to know what’s involved with the whole process.

Maybe you are already in real estate and you not happy with your current arrangement with your brokerage, I will gladly go over what Long & Foster can do for you to help you succeed.  Interviews and phone calls are always confidential.  I have been in your shoes and know what your are going through. 

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