Towson Swim Club May Not Open

Towson Swim Club says it needs 135 more members or plans for the swim club will have to be scrapped.

The new members need to sign up by Feburary 29, 2012 or the project will be terminated.

According to the Towson Patch article about the issue, the Club has $318,000 in funds raised by members joining, but in applying for a new loan, plus paying for an engineering contract, they need to secure more members to make it happen.

The cost, according to the paperwork from their website, is $1,975 per household plus $250 application fee and $275 initiation fee. The charter membership may be transferable when you sell your Towson home.

Summer fees range from $495 individual memberships to $685 family memberships, with lower Senior memberships also available.

The Towson Swim Club was originally slated to open Memorial Day 2011. It was then postponed to Memorial Day 2012 when a private investor backed out. Now the opening has been pushed back another year to 2013, and only if 135 new members join by February 29, 2012.

I do truly hope that West Towson homeowners can come together and get this pool financed. It would be a wonderful additional bonus to living in West Towson.

**Please note: As of March 6, 2012, the Towson Swim Club project has been terminated. Any links to the Towson Swim Club website may no longer link correctly, and there is currently no pool scheduled to be built in West Towson.**

Baltimore New Homes Increase in 2011

Baltimore new home construction was up 40% over 2010, which economists often see as a sign of a housing market recovery.

According to an article in the Baltimore Business Journal, the Greater Baltimore region jumped 40%, while the more local Baltimore-Towson region rose 6%.

The December 2011 data for contracts for future residential construction rising a very large amount — $116 million versus $39.2 million in December 2010.

Towson new homes under construction, I am sure, helped a lot with these local numbers. The Towson Green community is well under way and should be delivering new homes in the upcoming months.

New construction tends to be a good indicator of a recovering market because builders won’t build if buyers aren’t there to buy them.

If you’d like more information on Towson new homes or Baltimore new homes, contact me. We’d love to help!

Upbeat Housing Outlook 2012

USA Today reports that economists, banking and building executives are thinking optimistically of the real estate market in the coming year, and that the housing industry may be finally close to hitting the bottom.

The article does clarify, though, that prices are still expected to drop in many areas, but there should be more home sales, and more houses being built, which are usually indicators of the beginnings of a recovery.

The reason prices are expected to fall in many areas would be due to the large number of foreclosures still out there. Many were delayed because of the “robo-signing” scandal last year, but will be moved forward this year.

The economy is an important piece in the housing recovery. Last month, the unemployment rate dropped to 8.5%, and 200,000 jobs were added. These are good signs for the economy, and housing usually follows economic recovery.

There are many factors that affect the housing recovery, and Baltimore real estate is extremely local. Some neighborhoods, like those I’ve noted in Towson home sales in December and Timonium December home sales, have seen some increases or at least stabilization.

Real estate is extremely local — as much as street-by-street or neighborhood-by-neighborhood.

To find out where your Baltimore house currently stands in the housing recovery, please contact me. I would be happy to help!

Towson 21286 Home Sale Statistics December 2011

Towson has held value over the volatile last few years.

Average sales price was actually UP in 21286 to $330,255 from $246,288 last December. Sales were down slightly, with only 11 homes changing hands versus 15 last year, but that makes the average price even more significant.

Three townhouses in Towson sold with an average price of $181,667, but again, just one foreclosure or short sale could bring the average down tremendously when so few homes sold.

Eight detached homes sold, with an average sales price of $385,975. This tells me that the homes sold were most likely in Towson neighborhoods like Hampton, Wiltondale, Temfield, or Hunt Crest Estates.

Here is the detailed 21286 home sales report for December 2011.

Towson 21204 has also held its’ value, and had a good December, as I wrote in my Towson Patch post.

For more information on your Towson house value, contact me. I’d be happy to help!

FHA Loan Limits Remain High

The loan limits for FHA are at a decent amount, thanks to Congress voting to reinstate the loan limits that had been in place before, but had lapsed.

Currently, the limit for an FHA mortgage in Baltimore County is $560,000. That was due to drop down to $494,500, which could have really hurt Towson house values, since there are many in the $500-$550,000 price range!

The reason this could hurt Towson house values, is that a buyer would have to get more of a downpayment (it could be 20% or more!), and get what is called a JUMBO loan, which generally has higher interest rates than standard Conventional or FHA loans. The loan limit for standard Conventional loans is $417,000, a large drop from the FHA limit.

There are many buyers who do not have 20% to put down on a house, in order to qualify for a Jumbo loan, which would leave them most likely unable to buy a house above either the FHA loan limit, or the lower Conventional loan limit.

I wrote about the potential issue of a Baltimore FHA loan limit drop in June, and used this possible example:

Today, you meet with a REALTOR(R), and after meeting, you determine that your house is worth around $525,000. A qualified buyer using FHA secured financing can currently buy your home.

As of October 1, 2011, that same buyer would not be able to buy your house. What do you think would happen? Might their best & highest offer be $494,500, then, since they need FHA secured financing?

These extended limits are not forever, so make sure you know what the limits are when you list your home.

For professional, knowledgeable Towson real estate needs, contact me!

What Is The Best Day To List My House?

What is the best day to list my house?

A few years ago, prior to the internet being a terrific place to find information about a house, I would have said Tuesday night or Wednesday. Why? In the past, Broker’s Opens, generally held on Wednesday afternoons in central Baltimore County, were the “first showings” for houses. Owners got their places spiffed up, listing agents got sandwiches and cookies to share for lunch, and agents from many different brokerages were out to view the new inventory on the market.

At that time, the MLS allowed for 1-5 photos, the internet was a new thing, and Broker’s Opens were the best way for agents to get out and see the new places on the market to let their clients and potential clients know what is out there.

Now, with the internet being such a large part of the homebuying experience, data research has shown that best day to list is Friday.

Why?

Most homebuyers look at houses on the weekends. Many do not have to work, or have more flexibility or availability on weekends. The theory is that therefore, they choose which houses they want to see on Fridays, and they place them in order of newest to the market to oldest, making those that come on the market Fridays at the top of the list.

This does not mean that listing paperwork or photos should wait until Fridays. That is the day the data shown by the Redfin study say it should hit the market and websites. Note, though, that many websites do not catch up right away, and some take 24-48 hours to hit the internet. That being said, buyers who are working with a buyer’s agent get up-to-date information, and will have that data right away.

So, if you are looking to sell your Towson home, contact me to get things started, so we can plan to have it on the MLS for Friday!

 

Why Did My House Appraisal Come in Low?

Why did my house appraisal come in lower than contract price?

Even with comparable sales to your contract price on your house on record, if there are other homes in the area that have sold for less since then, that says to an appraiser that values are dropping in the neighborhood.

An appraiser’s responsibility is to the buyer’s bank, to show to the bank that if they had to foreclose, the value would be there to resell it.

If he or she interprets the market to be declining, it is his or her obligation to report it that way.

If there is a long time between the contract date and the settlement date, it can make this issue more prevalent, so be aware of settlement dates more than 60 days out. Appraisers right now are looking at data generally less than four months old. If your house goes under contract, and settlement isn’t due to happen for 90-120 days, then you really don’t know what the market will tell the appraiser, and you run even more of a risk.

What can you do to prepare for an appraisal?

If you have done a lot of work to your house that is outstanding and sets your home apart from others, make sure to have those receipts, so your agent can make copies of them to give to the appraiser.

Make sure your house looks good when the appraiser is due to come through. Appraisers do understand that you are moving, so some boxes are expected, but a nice, clean house helps!

Be sure to keep up on what is happening in your neighborhood even after you go under contract. Those list prices and sales WILL affect your value!

Having a professional real estate agent to guide you through this tough market is very important. Contact me for Towson real estate needs!

This Month in Real Estate October 2011

This Month in Real Estate October 2011 is out!

The main story is about the top things buyers are looking for in their home.

First, Jay Papasan goes over the numbers. The home sale pace rose to 5 million, up from the pace of 4.7 from This Month in Real Estate September 2011. The median price range dropped from $174,000 to $168,000 — continuing the price drop trend across the US. According to Freddie Mac, average interest rates were about 4.09%, another drop (this one at least is positive!) from last month at 4.15%.

Back to the main story, one of the top things home buyers are looking for in their new home is an affordable price. As the numbers have shown, the median price has been dropping over the past few months. One surprise the researchers found was that sometimes price was even more important to home buyers than location!

The second thing buyers are looking for is a well maintained home. Make sure to have repairs done as needed so when you are a seller, you showcase pride in your home, and buyers can see it. If you need recommendations on handyman services in Towson, please let me know. I know a number of licensed contractors who have done good work for my clients!

In News You Can Use, Bryon Ellington discusses how to keep your home warm this winter.

1) Insulate pipes in crawl spaces and attics.

2) Caulk or insulate cracks around windows and doors. Keep the warm air in — and the cold air out!

3) Change or clean your furnace filters. This should be done on a monthly basis, but in case you have forgotten (as many of us do!), now is the time to get on track to do it! Dirty filters restrict air flow, so more energy would be needed/used to push heat out throughout your house.

4) Drain your sprinkler and hose pips so the underground pipes don’t freeze and burst over the winter.

5) Keep your thermostat at a lower temperature when you are not at home, so you don’t overwork your system!

For more information on selling a house in Towson and referrals for contractors, please contact me. It would be my pleasure to help!

This Month in Real Estate September 2011

This Month in Real Estate September 2011 has been released.

Jay Papasan goes over the numbers first. The home sales pace rate dropped to 4.7 million, dropping from a high last month of 5.1 million per August 2011 This Month in Real Estate. The pace dropped tremendously! 30 Year Fixed Rate Mortgages, according to Freddie Mac, averaged 4.15%, a drop from 4.5% last month. Median Price dropped from $184,300 to $174,000.

The Top Story discusses the three top things sellers do prior to selling their home.

1) Painting

2) New Flooring

3) New Lighting Fixtures.

Sellers spent on average twice as much updating a home while they lived there than they did to get the house ready to sell.

In News You Can Use, Bryon Ellington discusses Staging Your Home to sell.

According to surveys, houses that are staged tend to sell faster and for more money than those that are not.

What are some simple staging tips you can use?

A) Start with Curb Appeal. Make your house desirable from the moment a buyer steps onto the property.

B) Make sure the entryway is inviting and not cluttered.

The entryway, kitchen, and master bathroom tend to be the rooms that buyers make a decision based on.

C) Depersonalize your home! Bryon makes a good analogy of a hotel room. When you check in, you don’t want to think about the other people who have stayed there. Same with a home. Buyers want to imagine THEMSELVES there — not the current homeowner!

For more information on selling a house in Towson and a recommendation for a stager, contact me!

A New Low for Incorrect Zillow Zestimates

Last night, Zillow posted a tweet, inviting you to look at this glorious mansion on the market for $35,000,000. Please note, that is $35 MILLION.

The amusing part to me, is when I clicked on it, directly under the asking price is the Zillow Zestimate: $396,500. Yes, you read that right, Three hundred ninety-six THOUSAND, five hundred dollars.

Now, I realize Zillow’s algorithms have what they claim to be somewhere between a 7-11% margin of error, but this one is off by 88.27%. OFF BY ALMOST 90% OF VALUE. Hm. Think something might not be right?

Yet Automated Valuation Systems are the way banks are doing quick appraisal reviews, and no wonder they may be coming in low.

I’ve discussed the Zillow Zestimates in the past, beginning with Zillow Zestimates for Towson Real Estate May Be Misleading. I have come across a large number that were not close to a selling price of a home.

Then, I had communications with some Zillow executives, where some light was shed on why it is possible they are off in our area, which I discussed in Misleading Towson Zillow Zestimates Explained Further.

Zestimates started to complicate things further as the market began to drop, because banks began to reduce Home Equity Lines of Credit, and were using Desktop Valuations to do so. When one of my clients called his bank, his loan officer pulled up Zillow & told him that’s why it had been dropped. (See Incorrect Towson Zillow Zestimate Strike Again.)

Earlier this year, Zillow updated their Algorithms to try to correct some of the problems. For the Baltimore metropolitan area, according to the site’s “Zestimate Accuracy,” Zestimates are within 20% of an actual sales price only 78.3% of the time (with a 7.9% margin of error).

For a $200,000 house, being 20% below would bring the price down to $160,000. Above, that price (which would make a seller happy, but not a buyer or appraiser), would be $240,000. That’s a tremendous difference!

Real estate is very local. Even street-by-street or neighborhood-by-neighborhood within a zip code can have majorly different values.

If you would like an accurate Towson home value estimate, please contact me. I can help you anywhere in the Baltimore real estate market area, or if you are in a different state, I can refer you to an agent anywhere across the country.

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