Maryland Real Estate Consultant

Decide to buy.

Although there are many good reasons for you to buy a home, wealth building ranks among the top of the list. We call home ownership the best "accidental investment" most people ever make. But, we believe when it is done right, home ownership becomes an "intentional investment" that lays the foundation for a life of financial security and personal choice. There are solid financial reasons to support your decision to buy a home, and, among these, equity buildup, value appreciation, and tax benefits stand out.

Base your decision to buy on facts, not fears.

1. If you are paying rent, you very likely can afford to buy
2. There is never a wrong time to buy the right home. All you need to do in the short run is find a good buy and make sure you have the financial ability to hold it for the long run
3. The lack of a substantial down payment doesn't prevent you from making your first home purchase
4. A less-than-perfect credit score won't necessarily stop you from buying a home
5. The best way to get closer to buying your ultimate dream home is to buy your first home now
6. Buying a home doesn't have to be complicated - there are many professionals who will help you along

           Attention Home Buyers

Hello, my name is Frank Harris.

Our team will assist you in setting specific search criteria and automatically e-mail property information to you the day the home comes on the market!

Take advantage of our Free HBM (Home Buyers Marketing Program) Fewer than 2% of realtors offer this service or has even heard of it. You will be given your own personal property search engine/online notebook to save your notes and property information as well as detailed information including price, address, map and directions for each property, and more.  This makes it very easy to compare properties and to stay very organized.

 Buyers work with us because of our ability to locate properties that match their needs, statistically evaluate the value of that property and negotiate your desired outcome...at no cost to our buyers. You will also receive a comprehensive homebuyer's workbook that I think you will find extremely informational.

As my client, you will receive professional attention from A to Z. My goal is to give you great service during and after the purchase of your new home. One of the questions that I will ask you is... from your standpoint, what is the meaning of good service? From here, I devise a plan that suits your personal wants and needs.

I also have access to numerous closing cost programs and first time buyer programs. You will also be privy to our monthly homebuyer's seminar. This seminar is jam packed with detailed useful information that today's buyer can immediately use.

This Step by Step Introductory First Time Home Buyers Seminar Will Show Potential Home Buyers How To:

•·       Take Advantage of record-high foreclosures & record interest rates. I am a VA and HUD approved realtor.

•·       Take advantage of special government sponsored 1^st Time Buyers programs.

•·       Buy now with as little as $3,000 down!

•·       Speak to credit specialists that can correct and/ or clean up credit.

•·       Find out from a tax advantage why it makes sense to own rather than rent.

The client is the most important component of a real estate transaction. I hope I have a chance to assist you in the purchase or sale of your next home.

Kind Regards,

Frank Harris III

Realtor Since 1987

Keller Williams Realty Centre

Cell: 240.472-9008

Office: 410-312-0000

E-mail: Frank@kw.com

Website: www.LuxuryCountyHomes.com

BENEFITS OF COMPETITIVE PRICING: More Salesperson & Buyer Enthusiasm: Salespeople and buyers are often excited about competitively priced properties. There will be greater interest from more people and that may trigger competitive bidding.

Shown to Sell, NOT Just Compare: The property will be shown by other agents with the intention of buying the property, and not just comparing it with a similar home down the street that is a better deal.

Faster Sale: Competitively priced properties just sell much faster than overpriced ones. If time is a factor to sellers, which it should be, there is no refuting this fact.

Higher Price: A house that sells within the first 30 days will often bring the highest possible sales price. That amount will continue to decline as time passes.

Ability to Move to Next Home: Eight out of ten buyers sell their previous home before buying a new one. The time it takes to market a competitively priced property is shorter, which will allow them to purchase another home and move in a more reasonable amount of time.

Minimizes offers: An overpriced house will often discourage buyers from making offers. Buyers have more choices now and the sticker shock may cause them to look at those choices.

Declining Salesperson Enthusiasm and Response: Salespeople are much less enthusiastic about showing properties that are testing the market at too high a price. Again, they will lead their buyers to an increasing number of alternatives.

Less Qualified Buyer Exposure: Overpriced properties fail to attract qualified buyers, and often attract the "wrong" buyers.

Decline in Showings: Other agents will avoid showing overpriced properties so they can maintain credibility with their clients.

DANGERS OF OVERPRICING: Minimizes offers: An overpriced house will often discourage buyers from making offers. Buyers have more choices now and the sticker shock may cause them to look at those choices.

 Lose Prospects From Sign Calls: Prospects who are exposed to the property from the sign will often get turned off if it is overpriced.

Limits Financing: Lenders finance a purchase based on the appraised value of the property. If the property is overpriced, the loan-to-value ratio will be lower, creating a challenge of how to handle the difference, which may cause the transaction to fall through.

Ultimately, Less for Seller: An overpriced property often remains on the market much longer. More shelf life will often decrease the value of the home, much as it does to merchandise in a retail store. The seller will still bear the cost of maintaining the home, and may become more desperate as the home fails to sell. This will often result in a lower price for the seller than if they had priced competitively at the outset.

REASONS SELLERS OVERPRICE THEIR LISTING: The Seller's Ego: Most sellers feel that their home is unique and they often have emotional feelings that lead them to overpricing.

Others "Gave Theirs Away": Most sellers feel that they will be able to strike a better bargain than their neighbors. This false feeling of superiority leads them, again, to overpricing.

The "Market" has No Relevance: Because they feel that their home is so unique, they believe the fluctuations in the marketplace will have no effect on the home's salability. They simply feel that their home stands above and beyond the market.

Misinformation: This is probably one of the biggest factors that leads to overpricing today. The frenetic buying that drove prices through the roof over the past several years has subsided; however, some sellers are in denial about this fact, especially when it comes to their neighborhood and their home.

Costs and Appreciation: Sellers usually overestimate the cost of additions and upgrades to their home, and their contribution to appreciation of its value. Some even make improvements that are disproportionate to the area, either in grandeur or in utility of the property. For example, a pool in an area with many retirees will often detract from, rather than add to, value. Appreciation is always relative to comparable properties in the marketplace.

Recapture of All Improvement Costs: Sellers who make improvements and enhancements to their home will want to recoup their cost of the improvements. Thus, they often inflate the costs. For instance, a full-wall built-in salt-water aquarium may not have the same appeal to the homebuyers that it had for the sellers.

Seller's Financial Needs: When a seller has priced their property based on their needs, this often will also lead to overpricing. If their needs are high, it will often lead to exorbitant overpricing. This is especially true when they are moving to an area where housing prices are much higher than the homes in their present neighborhood.

Here is today's article from RealtyTrac about how investors are buying up REOs and making a killing!!!!!

 This artilce was sent to me by a friend and I thought I would share the information.

Going Against the Grain, Investor Finds Bountiful Bank-Owned Bargains

Daren Blomquist

Despite the abundance of negative buzz surrounding the real estate market, Kirk Leipzig decided to pursue foreclosures as investment properties.

He has found that decision to be a very good one.

I just bought two brand new homes as REO from the bank,? said the Tennessee-based investor in December. ?I am buying five more new homes next week from the bank.  I am buying $750,000 homes for $450,000.

This is the time to buy, and to make a killing out there, continued Leipzig, whos been a RealtyTrac subscriber for about nine months. But you need to totally understand your market and educate yourself daily on your market. Then go buy, buy, buy.

What?s most surprising about Leipzig is that he is not buying and holding as many experts recommend in a down market  but buying and flipping.

?All the properties I currently buy are for flipping only, he said, acknowledging that he always has a backup plan because of the difficulty selling in the current market. I always buy a property now to flip, but in the back of my mind I know I can lease-option it, or rent it if it does not sell as quickly as I would like.

The two properties Leipzig most recently purchased were appraised at $700,000 and $750,000 but he bought them for $450,000 each, giving him enough room to fire sale them out and make a great profit easily.

I went in and did a punch list, and staged them, and they are beautiful 4,200 square-foot homes in the best city in the county. I have an offer on one of them now, and I just put them on the market one week ago yesterday, he said. I will make, after Realtor fees, holding costs, closing costs, etc. $185,000 in two weeks. Plus the new homeowners will have $75,000 equity in the house immediately. Everyone wins, and that is how you sell in this market. Find the win-win and everyone truly will win.

Leipzig emphasized the importance of buying right in order to sell effectively, noting that investors should find a well-performing area and then stay focused on that area. On his prospective purchases which are in the $300,000 to $700,000 range ? he does not buy unless he believes he can sell for at least $100,000 more than his purchase price, including Realtor fees and repair costs.

As soon as he acquires a property, Leipzig promptly goes to work to get the property sold as quickly as possible.

I visit the other houses on the market in the area I just bought a house. I want to see what my competition has or does not have compared to the property I just bought, he said. I make sure the property inside and out is totally 100 percent perfect with no flaws whatsoever.  It must be perceived to be the best property in the area.  Then I put the price below market value and current appraisal.?

Beating out the competition also means that investors may be willing to pay a higher commission to agents or provide other concessions to help the property stand out to potential buyers.

I talk with my mortgage person and have him do a 3-2-1 buy down or a 2-1 buy down on the mortgage points, so my house will stand out from any other,? Leipzig said. ?Remember, in this market, pigs get fat, and hogs get slaughtered. You do not want to be a hog.

The latest bill would allow lenders to reduce their exposure to foreclosures if they agree to cut the outstanding balance of an existing loan, thus allowing homeowners to refinance into a new loan that would be FHA insured. The reductions taken by lenders are substantial and must be based on new appraisals that should reflect current home pricing levels.

The Bush Administration has opposed the legislation even though Senator Frank Barney included two measures near and dear to the president's heart - a revamp of the FHA and greater government control over Fannie Mae and Freddie Mac.

I recently had a woman call and leave a message on my answering service... The message said are you crazy, have you seen the comps your property is priced too high. I called her back to see if she would like some information on the property. I asked her, have you seen the property? No, was the answer. I promptly reminded her that if a homes seems overpriced  you are always welcome to make an offer, assuming you have seen the home... remember the buyer dictates the true price, she hung up.

 I know the market is tight but being rude and uneducated about home-buying is a sad epidemic.

Rates are holding stable. I believe the economy will be stimulated with an increase of home sales in the coming months. Only time will tell.