Frederick Md Homes For Sale – The Historic District

Today’s Frederick real estate market may be considered a “Buyer’s Market”, but that doesn’t mean that sometimes buyers don’t sometimes unwittingly blow up their own real estate deals. Here are 3 unfortunate circumstances we see all too often:

1. Extended House Hunting.

In the Frederick Real Estate market, as much as 25% of the homes listed for sale are distressed sales, foreclosures and short sales. These homes tend toward two extremes, terrible condition, or so nice that they receive multiple offers.

Traditional sale homes can end up in multiple offers due to problems with appraisals and other lending-related issues. It’s not unusual to hear of buyers who have been looking for a year or more. In a complicated market, buyers can also get into “paralysis of analysis”.

These buyers find themselves susceptible to buyer’s fatigue, and can end up buying something out of frustration, and settling for something that is not really what they want. It’s important to work with a seasoned, professional agent to help you keep your expectations realistic, and that way, make strategic decisions the entire time.

2. Buyers Lose By Making Lowball Offers.

Buyers who think they can operate strictly on the basis of buyer’s market dynamics are in for disappointment. They must realize that most sellers will need to make enough to pay off their mortgage or at least receive the fair market value for their home. In a short sale or a foreclosure, the banks are trying to get as close to market value as possible. In our experience, they will turn down any lowball offer, waiting for an offer that will net them no less than 15% to 20% below market value.

3. Buyer’s Drama.

We’ve seen the stress and mayhem up close, and not just with first-time buyers. The information overload, the fear of further declines in value, and the stress of going through the tight lending process is something today’s buyers must face. Add to that the short sale process difficulties, and the difficulty of having correct expectations.

Again, working with a trusted agent will go a long way in helping you manage your expectations as you are able to rely on their knowledge of the process and the market. Every market is different and the success of your transaction depends on the forces at play. Downgrading the role that your emotions play in the process is important to successful decision-making, leading to a smoother process.

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The Highland  Group
Chris & Karen Highland      301-831-9947
Turning Point Real Estate   301-831-8232
email us: isell4u2@msn.com
Text Us: 301-401-5119

There are Three Hot Topics when we talk about predictions for the Frederick Real Estate Market in 2012. Affordability, Distressed Properties, and Inflation.

Concerning Frederick Home Buyers

Affordability is not just the buzz word, it is the Hot Topic. With the combination of low prices and historically low rates, affordability is at an all time low. Take a look at these infographs for an explanation:

In other words, the percentage of the average household’s budget that goes towards housing costs is below the 30 year average, in fact, the lowest since 1971.

The ratios of average housing prices to average income is also below the 30 year average. And…

The combination of prices and low rates makes for an average housing payment that is below the 30 year average.  It is truly one of the most affordable times to buy a house in the last half century.   That is if…

• Your job is stable
• You have some cash for a downpayment [3.5% for FHA], and
• You plan to stay in the home for 5 to 7 years.

Concerning Frederick Home Sellers

Homeowners and Home sellers are primarily concerned about the value and selling price of their home. The not-so-great news is that we will continue to have a steady influx of distressed sales, ie. short sales and foreclosures, for the next 5 years, maybe longer, depending on the economic recovery.

Concerning Everyone

Inflation is on everyone’s mind. Real Estate is still a good investment and hedge against inflation. Consider these statistics:

and…

This last chart gives a low inflation outcome and a high inflation outcome. Either way, making mortgage payments at today’s low rates for the next 30 years is a guaranteed hedge against inflation.

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The Highland  Group
Chris & Karen Highland *        301-831-9947
Turning Point Real Estate “ 301-831-8232
email us: isell4u2@msn.com
Text Us: 301-401-5119

Home for sale in the City of Frederick – 132 E. 5th Street, Frederick  21701

This renovated Frederick duplex is offered for sale by Turning Point Real Estate.  Three spacious bedrooms, 1 bath, updated kitchen, dining and living rooms.

Located in the Historic District in the City of Frederick, in a charming neighborhood within walking distance of Restaurants and shopping.

The home was renovated 12 years ago with modern upgrades throughout and is move-in ready:  Maple cabinets, stainless-steel appliances, new paint and fixtures.  Offered at $174,000, it’s the right price for a first-time buyer.

Light-filled Rooms Modern Windows and Fixtures Original 6-inch Moldings and Doors Original Wood Floors Two Off-Street Parking Spaces
	Marketed by Jeff Cosgrove, Turning Point Real Estate. Contact The Highland Group for a personal tour.  301-831-9947

Searching for homes in the Frederick Real Estate Market has become more mobile. Our new app is a great little tool.

Any time you are out and about and see a home for sale you can use the app on your iPhone or iPad to get all the details.

You can go to the itunes website and download…

Then text the code 6961-43

Or download on your iPhone or iPad:

Code 6961-43

Happy home Searching!

I haven’t done a Friday Link Roundup in a while, there has been so much real estate news to cover.   This collection of articles has some great information about How to decide what is good debt and what is bad debt for you. Enjoy reading and have a great Holiday!

¢ Good debt, bad debt: The Money 101 lessons at CNNMoney give examples of good and bad debt.

¢ Credit utilization: Your debt-to-credit ratio, or credit utilization, tells how much you have actually borrowed of the total credit available to you, explained here at About.com.

¢ This About.com page says more about the difference between good debt for expenditures œthat will increase in value and can contribute to your overall financial health, and bad debt for things that go away, such as vacations and food.

¢ Good, bad, ugly: Financial adviser Cindy Diccianni adds the category of œugly debt, which would include payday loans, pawn shop interest and other œfringe banking.

¢ Education debt: A post at USNews.com describes the upside and down of student debt.

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The Highland Group “ Real Estate Teams
50 Citizens Way, Ste. 400
Frederick, Md   21701
301-831-9947 Direct
301-695-3020 Broker
email: isell4u2@msn.com

TEXT Us:   301-401-5119

There are some things you should do while in the loan process:

• Do join a credit watch program.   Your bank, credit union or credit card company may be able to direct you to a free credit watch program that can alert you to any changes in your credit report.   This way, if something pops up, you can intervene before an underwriter sees the problem.
  
• Do continue to use your credit as you normally would.   Red flags are easily raised within the scoring system.   If it looks like you are changing from your normal spending patterns, it could possibly cause your score to go down.   Example:   if you’ve had a monthly service for internet access billed to the same credit card for the past 4 years, there’s really no reason to drop it now.   Again, make your changes after the closing.
  
• Do stay current on existing accounts.   Late payments on your existing mortgage, car payment, or anything else that can be reported to a credit reporting agency can cost you dearly.   One 30-day late payment can cost anywhere from 30 to 75 points on your credit score.
  
• Do call your loan officer.   If you receive notification from a collection agency or creditor that could potentially have an adverse affect on your credit score, call your LO so they can try to direct you to the right resouces and prevent any negative reporting to the credit bureaus.

information provided by:   www.creditresourcecorp.com

Related Articles:   Do’s and Don’ts During the Loan Process

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The Highland  Group “ Real Estate Teams
Chris & Karen Highland *        301-831-9947
                                                                        Real Estate Teams, LLC
email us: isell4u2@msn.com
TEXT US:   301-401-5119