$295,000 ?

         $295,000 for this 4 bedroom, 2 and 1/2 bath home less than two miles from the city dock in Annapolis is like robbing a bank without a gun. Sure the home is approaching it’s silver anniversary but anyone with a smidgen of knowledge knows that homes built 50 years ago were done so by craftsman.  The kitchen has been upgraded and hardwood floors are throughout the house.  Remember, this home was built when floors were floors and not plywood covered with shag carpeting!  There are three fireplaces in the house, one in the living room, the family room and another in the basement. The house is not on the typical postage stamp sized lot either. The house is situated on almost one-third of an acre of land that includes a lovely patio.  There is also a detached garage that can fit one car and then some.

         Less than two miles away is the city dock.  You can spend summer evenings munching on an ice cream cone strolling the pier.  Interested in dining? Rub elbows with the patrons at Chick and Ruth’s Delly, pick some of Maryland’s finest blue crabs at Buddy’s or visit the Ram’s Head for dinner and a show. This is Annapolis were talking about. If you are interested in this home or any other home in Annapolis, let me know. I will be glad to make arrangements to show you homes and share the benefits of living in Maryland’s Capital City.

         This is not my listing and I borrowed the picture so you could have an idea. $295,000 for this is like robbing a bank without a gun.

Click here to contact me

K (eep) I (t) S (imple) S (weetheart)

          There are so many times that I can recall that a kiss was just what the doctor ordered.  A kiss for good luck, a kiss that bridges fantasy to reality, a kiss when wed, a New Year’s kiss and the infamous call when a ball is hit out of the park “kiss it goodbye” are kisses.  The right kiss can remove the stress of home buying.  K(eep) I(t) S(imple) S(weetheart).  Sure, the process can seem overwhelming.  Most people are not involved in the home buying process on a daily basis. I am. I know it may appear like a mystery to you, but I do this all of the time and I have to tell you, it is far less complicated for an experienced agent.  There is an orderly process to follow that will keep  you on track.

         To begin with, you don’t need any other people for your first step.  You have to move from the “I want to buy a house” status to the “I know I can buy a house” position. Now that sounds simple enough and actually it is. You want to be armed with information from the very beginning.  The most important pieces of information are your credit reports and  your FICO score. (Your FICO score stands for the Fair Issac Corp., which is the company that uses proprietary algorithms to reduce your financial history to three digit number that ranges between 450 and 850. The higher the number, the better your history and the better your chances are at getting a loan at favorable terms. If you number is too low, you won’t be able to qualify for a loan without an extraordinary amount of money down.) There are three major credit reporting agencies. They are pretty much the same, but not always exactly the same. I would avoid the free credit report sites. They have a lot of small print and tend to end up costing you an ongoing fee. Your best bet is to go to www.annualcreditreport.com. Follow the instructions and gather all three of your reports. You will notice they do not include your FICO score. You can purchase your FICO score online at www.myfico.com. Now, before you ask “Why do I need this if the lender will get it?”, let me just share that it is better to know how you look going in than it is to be blindsided sitting in a lenders office. You should be in control and getting the facts will give you that control.

         Once you have you credit reports and FICO score in hand, you are ready for the next step. Before you go looking on line, before you start wandering into open houses, before you even begin the home search, you have to KNOW how much home you can comfortably afford. You are now ready to sit down with a lender. My advice is to get in touch with an experienced, local mortgage lender. It is best to focus on a loan officer that is well know in the community. As alluring as the on site lenders may appear, they are often located quite some distance away and that fact may hinder you as the time to close the loan draws near. The lenders job will to be to provide you with a dollar amount for the home you can afford. One word of caution, make sure that the lender is working with today’s interest rate and a clear picture of what your monthly payment will be throughout the length of your loan.  With rare exception, you are a fool if you agree to a loan that has low payments today and the caveat that the payments will increase in the future. MAKE SURE YOUR LOAN QUALIFICATION IS BASED ON TODAY’S INCOME AND TODAY’S INTEREST RATES. The goal of this meeting is to get a informal commitment from the lender. The lender should be willing to provide you with a “pre-qualification” letter that will state that the lender has reviewed your credit, has verified you income and the cash you have available for a down payment. The letter should state that the only information needed for the loan is a contract on a home and a satisfactory appraisal of that home.

         It would be in your best interest not to get caught up in the slight variations in interest rates and fees.  The lenders job is to make sure your loan is funded within the time constraints outlined in the contract. The lender will have to provide you with a good faith estimate. You can use the good faith estimate to compare what is offered against other lenders. If you do not have a lender, check with your bank or credit union for a recommendation. If you have an accountant, they may know of a lender. You can also ask a real estate professional for the name of a good mortgage broker. (If the agent refers you to a lender that is tied to their broker BEWARE. A good mortgage lender does not have to affiliate with any real estate brokerage. Once an affiliation exists, the possibility (real or imagined) for violations of RESPA come into play.)

        I know you hear the NAR commercials suggesting that you need a Realtor. In Maryland, almost 10   Your next step is to select ONE full-time experienced real estate agent.0% of the practicing agents are Realtors. (You see, in Maryland, every agent has to work for a broker. If a broker wants to be a member of the Maryland Association of Realtors, something they have to do to be a member of the NAR, they must agree that all agents working for them will be members as well…ergo…almost 100% of the agents working in Maryland are Realtors).   Now, how do you find a good agent (hint: if you have read this far, you are already pretty close to a dog gone good agent, but I digress)? Some would say, ask a friend, ask a co-worker, ask a family member…ask somebody.  I would suggest that you can do your homework. Go on-line and find an agent that shares more than listings. Find an agent that has experience in the market and the area. Talk to the agent. Discern their style. Beyond knowledge, you will have to be comfortable and believe that the agent knows what they are doing.  I am not the only one that believes experience is a difference. Dave Stevens, the former head of the FHA agrees with me. Why full-time? Representing you is their job and you deserve the full-time attention of the agent. There is no reason you should receive part-time representation from a part-time agent that will be earning full time pay!

          Of course, you might think that you can go it alone. Every home worth considering is on-line. The listing agent can unlock the door for you. Why go through the hassle of working with one agent? Well, you are right. A monkey can find homes for sale randomly plunking a keyboard.  Beyond that, you enter murky waters when you choose to swim alone. Finding the right home is but the tip of the iceberg.  Doing it on your own will always leave that nagging doubt “would a real estate agent have found a better home?”  Once the home is discovered, do you really want to go on line and print out a contract and sign it? In Maryland there are over 50 pages in a real estate contract to purchase. The body of the document is 11 pages of terms and conditions. In addition to that there are local addendum’s, jurisdictional addendum’s, disclosures about the home, about lead paint, etc., and then you have to add various contingencies for inspections, appraisals and dozens of other potential requirements. You are done yet. If the home is governed by a home owner’s association, you will need to request and review their documentation. There is a sea of paperwork that flows between the front door of your dream and the settlement table where you will close the transaction.  The real estate agent is the captain of your ship of dreams and you better be sure he is sea worthy and able to get you into a safe harbor and closed on time.

         There is a lot to consider when you first begin to believe, “I want to buy a home”.  Rather than be intimidated by the challenge, keep it simple sweetheart, follow the easy steps. You don’t have to be a wall flower, the band is playing.  Is it your time to dance?

         I’d love to go over any of this with you. If you are seeking a captain, I’d welcome the opportunity to take the helm! Contact me. 

or

Tap into resources others fail to use

         So, the little one bedroom apartment is getting really crowded. Sure, when the market went crazy, it seemed like a good idea to wait.  The arrival of the baby only met rearranging living conditions for awhile.  That little bundle of joy is now heading towards the terrible twos and one bedroom living is no longer comfortable.

          You would consider buying but the new addition has crimped your savings. You would consider buying, but what do you do with little cash on hand?  You are not alone.  There is a long line of folks facing the same dilemma.  You can choose to stand in that line or you can tap into resources that others fail to use.  There is help available.

         Of course you weren’t aware of it. You have enough to worry about being a parent and a spouse. You have enough to deal with doing your job, earning an income and hopefully scratching out time for one “date night” every couple of weeks.  Not to worry.  I check this stuff out all the time. It is my job to dig around and find ways to get you from that cramped living to a comfortable home of your own. I do know the path that is available to you.

        So, if you are ready and want to find out if you qualify, click this link -> contact me

]]> http://metrohomes.wordpress.com/2012/02/16/closing-help-for-families-of-three-in-dc-income-up-to-74500-you-bet/feed/ 0 0823mltm line of people http://metrohomes.wordpress.com/2012/01/27/still-on-the-fence-about-buying-a-home/ http://metrohomes.wordpress.com/2012/01/27/still-on-the-fence-about-buying-a-home/#comments Fri, 27 Jan 2012 15:19:45 +0000 MacArthur http://metrohomes.wordpress.com/?p=2571 ]]> Are you still on the fence about buying a home?  Maybe it’s time to get down?

We’ve come a long way since the peak of the housing market. Unfortunately, that long way has been down.  Prices dropped. Equity evaporated. Nest eggs were emptied. Jobs disappeared. Sloppy underwriting was exposed. Beneath the surface of the obvious problems, an economy was forever tainted.

Some good has come from all the upheaval. People have suddenly realized that savings are important. Lenders have tightened up requirements. The number of people practicing various positions in the industry has been reduced. Cumulatively, the nation has a better understanding of the value of “skin in the game”.

Other things remain the same. There still is a disconnect between the “man in the street” and the “men on Wall Street”. The people that are running large firms continue to turn a deaf ear to customers dealing with the reality that times have changed. Some industries continue to wade through the rising sea of internet growth ignoring how the tide has turned and the flotsam and jetsam floating around them are yesterday’s business practices.

It truly is a gigabyte induced sink or swim situation. Some firms will sail along, ignorant of the turmoil left in their wake. We prefer to set our sail, capture the wind and continue our journey, sharing a life raft or two along the way. Times have changed and we readily embrace every nuance.

As an added enducement to those that are faced with the prospect of over spending thousands of dollars on the sale of their home, we offer this … the first 25 respondents to this offer will receive a $500 discount off of our rate. (Just click on the link below)

Yes  -  I want the $500 discount.

I just read an article by Stephen Fishman for Inman News.  The article was titled “Short on real estate down payment? Use your IRA.”.  You may be able to view it by using this LINK .  The gist of the article supports dipping into your retirement account if you are a first time home buyer and need up to $10,000 ($20,000 if married and spouse has IRA account as well).  The IRS description of a first time home buyer in this scenario means first time in two years.

I don’t want to be a wet blanket, but isn’t part of the reason we got into the real estate jam had to do with creative financing.  Yes, the money in the IRA account is legally available. I suppose it seems innocuous when you use the initials regarding the source of the money. IRA sounds much easier to raid than Individual Retirement Account.  It is not a rainy day savings account, it is a retirement account.  It was set up to provide an income for the owner when they retire.

I realize that buying a home is a bit more difficult today.  Banks and other lenders do require a larger down payment for a conventional loan. Did I miss something?  I am pretty sure that FHA loans are still available and they require a much smaller down payment.  Yes, there is an additional cost to an FHA loan, but the loan may not require you to dip into money you will need in the future.

How much can dipping into that nest egg impact your retirement?  Well, using conservative estimates, that $10,000 or $20,000 you pluck out for down payment money could be worth $50,000 or $100,000 in 25 years. Simply put, that means the money would grow 5 times by the time you retire.  What do you think the down payment money will be worth?  Do you believe it will grow 5 fold while you are in the house?  In most cases, you will be moving again in 5-7 years and you will burn up your equity in closing costs and down payment on your next home. Retirement money is for retirement. No one can portend what will happen with social security and in light of the financial mess that is occurring every where, prudence indicates you should be setting aside money to offset the cost of retiring. You might want to think about all those retiring today that have a good chance of out living their retirement money.

The picture is not what anyone plans to have in their pantry for dinner consumption.  There are retirees that are choosing to eat cat food because they don’t have enough money for food. They did not plan to be in that situation. They failed to plan to be in a better situation.  Some of them even spent money set aside for retirement. Decisions made while you are in your twenties and thirties can and do come back to bite you.

If you want to buy a home. Sit down with a lender. Find out what you can do with the cash that is readily available. Find out how much house you can comfortably afford on the amount of money you are comfortable paying each month. Then take a deep breath.  Don’t be caught up in the “interest rates are historically low” headlines. Don’t believe that if you don’t buy now, all the bargains will be gone.  Those are general, emotional head line grabbing statements.  Be patient, if you don’t have enough money in savings to buy a home, it probably isn’t time for you to buy.

Should you be graced with a long life, you will have plenty of time to buy a home. It is better to make sure you will enjoy where ever you live when you retire. I will repeat the mantra one more time. Retirement accounts are for retirement. Don’t let sloppy government regulations fool you into believing anything else.

I sell homes for a living. Your waiting until the time is right won’t affect me. There are people that are in a position to buy now. Your waiting will guarantee that you put your ducks in a row and made a conscious decision to be prudent and wise.

It has been planned for over 50 years. It has withstood protests and lawsuits.  Regardless or which side of the battle you were on, the battle is over and the ICC is a reality.  One small stretch between 270 and Georgia Avenue opened in early 2010 with a great deal of fan fare and very little traffic.  Apparently, not many folks in the Olney area had a need to be in Rockville and there were not many westbound travelers that needed to make their way to Georgia Avenue.

Right around Thanksgiving the dynamics changed. The portion from Georgia Avenue to Interstate 95 was opened and lives were changed.  Obviously, there are many folks travelling south on 270 or 95 that wish to make the trek from one side of the county to the other without using the capital beltway.  For those out-of-towners reading this, the capital beltway (also know as 495) is a fancy name for a bumper to bumper parking lot that circles around Washington DC.

This is a map of the ICC.  The important points are the interchanges. The ICC can be accessed via 270 by using the 370 exit. There are exits at Shady Grove Metro, Georgia Avenue, Layhill Road, New Hampshire Avenue, Colesville Road, Briggs Chaney Road and 95.  A final exit at Virginia Manor Road with access to Route 1 will open later.

Rather that reprint the information regarding the ICC and the need for an E Z Pass, let me just add the link to the official website here….  EZ Pass   The EZ Pass is also used on other toll roads in the region. The devil is not in the details regarding the ICC.  The ICC is a time saver and opens many communities that used to be local road traffic stymied.

This may look like mortar and stone

but

it is really a great big job magnet

          It is no secret that a great majority of people living in the Maryland suburbs work in Washington, DC.  Access to DC in the past was limited to the use of 270 and then to feeder roads. There were other roads available, but 270 became the main funnel from Montgomery County into Washington DC.  The Metro, more specifically, the Redline of the Metro was and remains another conduit into the Nation’s Capital.  This created a lot of development along the 270 corridor.

The ICC opens up the Eastern portion of the County

         Now,  those that choose to live in Olney, Ashton, Sandy Spring, Layhill, Norbeck, Spencerville, Cloverly, Burtonsville, Laurel and areas close to them have a smooth access to Bethesda, Rockville, the 270 corridor, the redline at Shady Grove or Glenmont and many other commuter routes.  The time spent getting from here to there has been reduced.

         Those moving to the area and feeling they had to only focus on the 270 corridor have more choices.  Those people that used to think they had to move to Clarksburg or Urbana because of the need to use 270 now have more neighborhoods to choose from when moving.

          The eastern portion of Montgomery County has wonderful neighborhoods, lots of green space and plenty of things to do.  The ICC has created the opportunity to not only live a little closer to town, it has ended the long days journey into night of commuting into town using Colesville Road or New Hampshire Avenue.

         If you would like to know more about the neighborhoods that have become more desirable because of the ICC, let me know.  I have lived and worked here all my life. I not only know the roads, I have driven them and I know where the potholes exist.  My phone number is 301-509-5111.

So, you want to know all about Rockville, Maryland?  There are plenty of sites on the internet that discuss the history of the town and make up of city hall, etc.  What about Rockville today?  People from all over the country are familiar with Rockville (at least they know it is reasonably close to Washington DC and lots of folks tell them it is the place to move if coming to Montgomery County, Maryland.).

Rockville is much larger than the little postage stamp area located at the intersection of Viers Mill Road and Rockville Pike.  Rockville stretches from Georgia Avenue to the east, the Beltway to the south, Potomac to the west and Gaithersburg to the north.  There are over 13 square miles that cover the area called Rockville.

Information to help Rockville, Maryland real estate buyers should include information about the neighborhoods that make us this area.

• The Aspen Hill area, Wheaton Woods –  This tiny area of Rockville is really closer to Silver Spring/Glenmont than it is part of the Rockville community.  The homes in Aspen Hill Park and Aspen Knolls are older and priced considerably less than homes closer to Rockville or Olney ($250,000 and up).  The neighborhoods tend to include more working class residents.  Parking is a problem on many of the streets.  It is just north of the neighborhood Connecticut Avenue Estates.  There is shopping at the Aspen Hill Shopping Center which includes a Giant Food Store and other small retail shops.
• Bel Pre Woods, Brooke Haven, English Manor- This area is just north of the Aspen Hill area.  The homes are priced a bit higher which is a result of location more than any other factor.  It is a bit farther north and has good access to Georgia Avenue which in turn can lead to the Glenmont Metro or the ICC. Shopping can be done in Aspen Hill or Leisure World.
• Brooke Manor – OK, this is a development in and around what used to be Brook Johns old country club. The homes are much newer and more expensive.  It is located north of Norbeck Road and is a home owner association guided neighborhood.  It is located with good access to the ICC, Georgia Avenue and Norbeck Road.
• Ellenwood, Flower Valley, Manor Lake, Manor Park, Manor Woods, Norbeck Estates, Norbeck Manor – this area is located north and south of Emory Road and the ICC.  The homes are a bit older but are priced in the $500,000 and up range.  The quality of the neighborhood experience and the general location are excellent.  The neighborhoods have access to walking trails and parks.
• Burgundy Estates, Burgundy Hills, Burgundy Knolls, English Manor, Lincoln Park, Maryvale – These neighborhoods are closer to Rockville City and are priced between $250,000 and $350,000.  The homes are mostly older, built in the 50′s.  The neighborhoods are laid out in the old suburban grid pattern.  This area has access to the red line station in Rockville.
• King Farm, Fallsgrove –  These two communities are like sister cities. They are both located north of Rockville Town Center.  They were both planned, developed and built by the same builders.  King Farm is older and a bit more developed, Fallsgrove is a bit newer and a bit farther out.  Both are planned communities that are built around a common shopping area.  Homes are more expensive, but the amenities of the planned developments are sought after by many buyers.
• Luxmanor – This community is on the south side of Rockville ( actually reasonably close to Bethesda).  The location and size of the homes is reflected in their higher price tags. Homes here run from $700,000 to almost $2,000,000.  This is an established community that offers a sense of style and access to Bethesda and DC.
• Montrose, Montrose Woods, Rockville Estates, Roxboro, Woodley Gardens - These communities are located in the area between Rockville Pike and Montrose Road.  The homes are favorably priced in the $500,000- $600,000 range.  The area is well established and features good access to major commuter thoroughfares.
• Randolph Hills, Rockcrest, Parkwood – This is another older section of Rockville located off Randolph Road. The homes are older and priced lower than homes farther north or west. Homes in these neighborhoods are about $350,000.  The streets are a bit narrower and off street parking is a premium.
• Twinbrook, Twinbrook Forest, Silver Rock, Stoneybrook Estates  - Many of these communities feature homes that were built following WWII and the Korean War.  They are mostly small bungalows and cape cods. Prices reflect the age and style.  Parking is a premium in these neighborhoods.

That covers most of the neighborhoods. I know them all well.  Anybody can tell you about the roads. I make it my business to know where the speed bumps are and where potential pot holes in your home search might exist.

Rockville  is split by one the most famous roads in retail shopping (no offense for Rodeo Drive).  It is said in retail and restaurant circles that “if you can’t make it on Rockville Pike, you can’t make it anywhere”.  The reason behind the saying drives local residents crazy.  You can’t drive on Rockville Pike and hope to get from here to there in a timely fashion. It is clogged from sun up to well after sun set with commuters, shoppers, tourist, the lost, the wandering and the rest. The road is bumper to bumper in both directions most of the day.  Area residents are convinced that if 9% of the people are unemployed, they are spending their time driving up and down Rockville Pike.

Local Attractions ;

• Strathmore - High quality arts programming, designed for audiences of many tastes, served with the hospitality and warmth of a family enterprise, are the hallmarks of Strathmore. Seasonal outdoor events seek to be inclusive in their programming appeal, reaching out to people of all ages, interests and cultural heritage.
• Beall-Dawson House – Which houses The Montgomery County Historical Society (MCHS) strives to highlight the role of history as a vital part of the cultural and social fabric of Montgomery County.
• F.Scott & Zelda Fitzgerald Burial Place - Famed author and member of the “Lost Generation” and wife, one-time residents of Maryland, are interred here. The burial sites are located in Saint Mary’s Cemetery.
• Rockville Town Center - Rockville Town Center is a welcoming and vibrant amenity in the heart of Rockville. The pedestrian-friendly streets and plaza, many restaurants and stores, Rockville Library and VisArts Center with its rooftop deck make Town Square a lively attraction.

Rockville is large and diverse.  If you are moving to the area, I will certainly offer all the information you need to make an informed decision.  Don’t rely on travel guides or real estate books, talk to someone that lives here. My name is John MacArthur and I can be reached at 301-509-5111. Experience the difference Experience makes!

One of the largest purchases of your life is important enough that you set aside 5 or 10 minutes to read information. Maybe a good rule of thumb should be that you devote one minute of reading for every thousand dollars you plan to spend.

After all, it’s your money, your house, your life.

Consider this a job application.

I want to work for you.

You may not realize it, but you need to hire me.

My name is John MacArthur and I am a Realtor in the DC area (Maryland and the District of Columbia).

REMAX

The first thing most people consider is the broker. My broker is the number one broker in the world. I don’t work for some cute little boutique firm.  I don’t work for one of those “mom and pop” companies that are still locked into the way things were done before Al Gore invented the internet.  I don’t work for some local firm trading off the name of their forefathers. Nope, I work for Remax and I have all the resources necessary to assist you. You will see Remax signs in  Lima, Peru and Lima, Ohio. You can find a Remax office in London, including England, Ontario, Arkansas, California, Kentucky and Ohio. Having those resources behind you will give you the support you need to find the right home.

Reputation

When seeking someone to represent you in your undertaking, you have to have more than a gut feeling about your decision.  Certainly, you can ask for references.  The downside of getting a list of references is that they will all be stacked in the favor of the person offering the list. Only an idiot would give you the name and number of a disgruntled past client.  The other hiccup involves the people on the list. Some people do not want their name and number given out.  I always like to offer a recommendation I am very proud to have received.

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John MacArthur