Homesteps Smart Buy

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Owning your own home may be more affordable than you think.  If you currently rent, or have been thinking of buying a new home now is the time to take that step.

If you not aware of it, Freddie Mac is offering a great program right now as an incentive to purchase one of their bank-owned homes called their Smart Buy Program.  Because these properties are foreclosures they are already offered a great price and on top of that Freddie Mac is offering you up to 3.5% back for closing costs and a 2-year comprehensive HomeProctect® Home Warranty.  To take advantage of the 3.5% back you must fill out the Smart Buy coupon (available from your real estate agent)  and submit along with your offer.


To qualify for this the home must be a single family residence, 1-4 unit building, condominium, co-op or town home.  You must plan on occupying the home, it must be your primary residence and the sales price must be above $25,000.  Rental homes, commercial properties and 2nd homes or vacation homes are not eligible.  It is only valid for Freddie Mac owned homes - Auction, Sealed Bid and Bulk Sale properties are excluded from this offer.

This program is valid for offers submitted by Dec. 31, 2009 and they must close escrow by Feb.26, 2010. The good news is you can also take advantage of the newly extended government sponsored tax credit in addition to this making it an even better time to purchase one of these homes.

Keep in mind these are foreclosure homes, so they are not going to be in the best of shape and may need work so it may not be for everyone.  However, with the greatly reduced price these homes are offered at on top of the Smart Buy incentive and the Government Tax Credit, if your willing to put a little work into it its a great way to get into a home for a really great price.  With the Home Protect Warranty whenever a covered appliance or system in your home is having trouble Home Protect will repair or replace it giving you some peace of mind not normally available when purchasing a foreclosed home.  Along with the 3.5% offer which can be used for closing costs, to assist with moving expenses or to update the home providing you lots of options.

If you have any questions on the program, or would like further information on the Freddie Mac homes available for purchase here in Northern VA just contact me and we can take that first step into getting you into your first or next home.

Buyer Tax Credits Extended

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The good news for those looking to buy a new home is Congress has extended the home buyer tax credit.  Even better news is now it is not restricted to just the first time home buyer.  This time they have expanded the program so that even more people will be able to take advantage of it.  Along with the extension of the $8,000 tax credit for the first-time home buyers, they have also added a $6,500. credit for existing home owners.  You can qualify for this credit as long as you have been living in your principal residence for 5 consecutive years out of the last 8. 

Also in an attempt to reach more people they have expanded the income limits to qualify for the program.  To be eligible under the new guidelines they have increased the income limits to $125,000 for single buyers and $225,000 for couples.

The program is capped on homes with a maximum purchase price of $800,000, you must be under contract by April 30, 2010 and close no later than July 1, 2010.

The law took effect as of the day it was signed and goes by closing date, so for those already under contract, but haven't closed yet you can now take advantage of the credits if you meet the new standards.   If you were worried you wouldn't make the Dec, 1 closing date of the old rules that is no longer a concern.  If you didn't qualify at all when you went under contract but do under the new rules then you can also now take advantage of the credit.

With inventory up in most areas, interest rates down, and now the extension and expansion of the Tax Credits if you've been considering purchasing a new home now is the time.  If you have any questions about the credits, or how you can take advantage of them contact me and we can discuss all your options.

rely on the internet - loose out on the deal

It doesn't matter what I'm looking for nowadays the first place I turn is my computer. It lets me shop and compare right from the comfort of my home, anytime I want. For someone who was addicted to those 2am home shopping shows and infomercials when they first came out the Internet is Nirvana. All those choices, unlimited customer reviews, and no annoying sales people. Add to that the ability to buy that blender at 2am in your jammies and what more could you ask for.


For most people the Internet can be a great tool to start searching for real estate. You can research neighborhoods, schools, read blogs to help you decide on which agent you might call, maybe even find a house your interested in. However, if your budget has you needing to find a real "deal" or your an investor looking to make a profit that's another story. It is still a good place to do research, but when your looking for those types of deals you can't rely on an Internet site to find your properties. A lot of people are turning to those multiple "Foreclosure" sites and other sites that promise you the inside scoop on cheap properties thinking their going to find their deal there.

Unfortunately most of these sites are really out of date. By the time the listing finally shows up on them they are long gone. Due to the current rash of foreclosures there are a lot of REO (bank owned) homes showing up on the market right now for some incredible prices. There are also A LOT of investors out there looking for these homes, and they are disappearing as fast as they are listing and usually with multiple offers for the seller to choose from.

For the investor to get a chance at the type of properties your looking for you you have to fall back on more traditional methods. While the Internet is great for doing research, to really find the deals you need to use a combination of old school methods, this may include walking the neighborhoods, talk to people, network, fliers, you get the idea.

One of these tools to use should include working with a real estate agent. They can monitor the local MLS daily for new postings so you can jump as soon as they show up, or with their connections in a lot of cases even before. Through their networking they also often have an inside line on "off market" deals (properties that are for sale but not listed through traditional methodes ie : MLS). They have databases of other real estate related professionals that offer services you may need. They generally have relationships with lenders that keep them updated of any changes or programs that could be an advantage to you. They can look up information for you to assist in valuing a property or watching trends in a specific neighborhood.

Important not only to the investor, but especially to the general home buyer that doesn't buy a lot of properties is that they are also experienced in the difficult process it can be to get these type of deals closed, can make sure that things go as smoothly as possible for you and that you have someone looking out for you. It really is invaluable as a buyer to have someone that is looking out specifically for YOU. Trust me, the seller, listing agent, or the bank certainly won't be.

For investors who buy multiple properties to really take advantage of all they can do for you, you need to form relationships. Like you, agents only get paid if a deal closes, so just like they need to be of value to you, YOU need to be of value to them. Agents are pretty good at telling who is going to be worth their time, and who is just waisting it. That doesn't mean you have to use them for everything you do, but do give some consideration to them and let them know that you respect that relationship and will utilize them on your deals when you can. If you do you will find that your real estate agent can be one of the most valuable tools you have.

Short Sale - What you need to know

You need to sell your house but owe more on it than what you can sell it for and don't know where to turn. In today's economy this is not an uncommon problem, more and more people are finding themselves in this exact situation. You've probably heard the word "short sale" bantered about but are unsure just what that is or how to go about it. In simple terms a short sale is when your lender agrees to allow you to sell your home for less than what you owe on it.

Unfortunately the definition is the only simple thing about it. It can be a long complicated process. Even though it seems as if everyone is doing it, its not just a matter of you deciding that's what you want, after all like any other debt legally you owe the full amount due on your mortgage. Your home is collateral on that debt and the bank is not obligated to release their lien on the home for less than what it is owed. If you can't make your payments they have a right to foreclose and take the property back. It is possible a short sale can be done but there are several important things you need to know about the process.

* To the bank its simply a numbers game. You need to show them that it is better for them financially to accept the short sale then it would be to go through with the foreclosure process.

* You have to prove to the bank that you have a hardship. This can include things like being unable to make your current payments due to loss of job or some other change in your economic situation, or a job transfer requiring you to relocate out of the area.

* You not only need to show that you are unable to sell the home for the amount owed on it, but also that you are unable to come up with the difference between what is owed and what it sells for. If the bank feels that you do have the ability to cover that difference they are not going to just let you out of your obligation, but will require you to come up with that difference out of pocket at closing to fully payoff the debt.

* You need to be careful that the agreement you reach with the bank includes them forgiving you for the amount shorted. The bank can release the lien allowing you to sell the house without making you come up with the difference at that time, but may retain the right to still hold you financially responsible for that difference. This means they can and in a lot of cases do file a judgement against you for that difference. Many people have been caught off guard when their short sale was not negotiated properly and they "assumed" the banks approval left them free and clear only to find out after the fact this was not the case.

To make sure your short sale is successful and you don't have problems, first and foremost you need to have an expert in short sales to advise and assist you through out the process. Its not enough to just go with an agent that has listed short sale properties. There are a lot of agents that have short sale listings, unfortunately a large percentage of those never do get to the closing table. You want to make sure the agent knows how to get your short sale package approved or that they work with someone that does.

At HRC Properties, LLC we have an Attorney on our team whose business is short sales and they will meet with you, discuss your options, and if you qualify for a short sale will see that everything that needs to be done to get the sale closed gets done. Because their expertise is short sales they make sure that everything that is required is in your package presented to the bank right from the start so that the process goes smoothly. I'm sure you've heard the horror stories associated with short sales and how hard it is to get the bank to approve the sale or how it can take forever. In most of those cases the reality is that the person handling it for the seller does not prepare the package properly so it is acceptable to the bank. This either causes outright denials from the bank, or delay after delay as more information must be requested and submitted.

Different banks have different criteria so to get a short sale through you need to know each lenders requirements and see that the initial package is complete with everything they need. You also need to know how to bypass the lower rungs and get the package right up the ladder to the person who will ultimately make the decision as well as how to negotiate it into an approval.

Whatever you do don't ignore the situation. Short sales take time and if you wait too long to explore your options you may find yourself out of time, thus out of options. Before this happens contact me and find out what we can do to help out.

Buyers - Don't Overlook That Diamond in the Rough

The big "Bzz" word today in the real estate world is Staging. It seems you can't turn to a real estate show on TV or pick up a print article without being told that to sell your home today it must be staged properly. This is leading to some unnaturally high expectations from buyers when looking at homes and they are very likely overlooking a perfect gem just because it doesn't show like it just stepped out of the pages of a design magazine.

Staging is nothing more than a marketing campaign designed to make you think the product (in this case the house) is better than the others just because it "looks" better. There is nothing wrong with that. Regardless of what you are selling, it should always show its best to sell that goes without saying, but as a buyer you need to see beyond that and really look at the house itself. Remember, you are buying the house not the accessories. When you close that all gets moved out and YOUR stuff gets moved in.

Take the case of the buyer who has narrowed it down to 2 houses. One is in their perfect neighborhood, has the size they wanted (bedrooms, bathrooms, etc.) , as well as some nice extras - large yard, maybe some extra living space such as a family room. But it definitely needs some updating, maybe the paint colors are not your taste or it has the dreaded wallpaper. Carpeting is old, needs to go, but underneath is hardwood floors that just need a little TLC. Maybe the kitchen screams 1980, you get the picture.

Then they look at house #2. Its location is farther out, not their target neighborhood. Its missing that extra bathroom they felt was so important. Maybe the outside space is not as nice, its missing valuable extras like a family room, the rooms are smaller. Now the hook, its staged beautifully. They walk around and ooh and ahh at the decorating. Yes, this house isn't what they said they wanted, and it is $30k more than the other, but its so updated, move in ready, and they are sold on the decorating.

Now check back 6 months later when they are all moved in, and you'll find that they are happy - now that they've made some changes that is. Turns out that "move in ready" house - not so much. Once the staging items were moved out and their own stuff moved in the color scheme they fell in love with just didn't quite go, so they went ahead and painted most of the rooms. That formal dining room they loved the idea of, once moved in it they found it didn't really fit in with their life style so they went ahead and knocked down some walls to create a big open floor plan. Of course, that meant re doing the flooring as well. Remember that extra bathroom they could make do without, turns out that didn't really work for them either, so they've had to add an extra bathroom. Now several months of remodeling, quite a bit more money later and they finally have the perfect home - well, all most. It is still in a less convenient location for them and the size of the yard still isn't what they wanted but those you can't change.

Now had they looked at the house itself and not just the decorating, they would have realized that house #1 had everything they wanted. With some paint and updating (which they ended up doing anyways) they could have had everything on their wish list without any compromising and it would have cost them less.

Instead for more money, and after having to do some rehab anyways, they sorta have what they wanted. That is, if their expectations of the "perfect" house hasn't kept them from choosing one at all. That's not always the case, sometimes the perfect looking house IS the perfect house, just make sure you consider everything, including the potential and not just the surface picture.

Don't Overlook the Importance of your Business Plan

This past Saturday was the first official class for our Investors Training Program. For this first module, Brian choose to start where you should always start - at the very beginning, your Business Plan. Developing your business plan is the most important thing you can do. Its the support that the success of your business depends on. Without the proper foundation, its pretty much guaranteed that whatever you build will eventually just come tumbling down. Simple Physics.

Unfortunately for a lot of people they just don't give it enough thought. They know what kind of business they are, what they do or provide, they come up with some basic logistics and are off and running. Its only after things start going wrong and problems come up that they realize just how unprepared they really were. Something that with a well thought out business plan would have just been a blip you were prepared to handle and quickly move on, instead becomes a major problem. A problem that can destroy all you've built.

You need to make sure you've accounted for the all the what, who, where, when and how in regards to your business. By anticipating and planning ahead, you can be prepared for any situation you will face. This is especially important if you are not the only one involved in the business. Today's friends and lovers can very easily become tomorrow's enemies. Make sure everything is spelled out in writing from the beginning and you'll avoid major problems later.

Your business plan should also be something that continually evolves as your circumstances or business changes. And just like you check your foundation periodically for areas that need maintenance, so should you periodically review your business plan for areas that need tweaking or changing. If you build your business right from the beginning and provide the periodic maintenance and upkeep it needs you'll find yourself with something solid that can weather any storm that comes along.

Is your business card working for you or against you?

Have you ever taken the time to consider whether your business card works for you or against you? Regardless of what you do, be it self employed or working for someone else, chances are you have a business card. If used right they can be a great marketing tool. They don't just come in a standard size anymore, there are all kinds of options open to you. Some people have them made slightly smaller or larger than standard so they stand out from the crowd. They can also be made in different shapes than the standard oblong. I've seen them round, triangular, square, you name it.

Speaking of pictures this has also become a popular fad especially with real estate professionals. I'm of mixed opinion on this myself. Well I certainly can see why they do it, it's just not my thing. In lieu of your picture you could put your logo, or some kind of picture relative to your occupation.

You can choose to go with standard white, or in just about any color there is. The printing can be done flat or raised. Cheap card stock, more expensive heavy stock, linen look, flat or shiny. When it comes down to it there's almost no end to the choices you can make and the final decision really just comes down to how much you want to spend.

The reasons for all these options is of course you want your card to stand out from the all the others so people remember you. That said it surprises me how many people go to all this trouble then overlook the most simple thing. Most important in my mind is make sure you're clear on your card exactly what it is you do. Don't make it a guessing game.

This has come to mind because I've been going through all the cards we've collected the last several months and putting them into our new data base program. If you're like me you've probably got hundreds of cards you've collected as you come into contact with people. Problem I'm having is that I would say with at least 1/3 of them I have no idea what it is these people do. Its just not clear on the card. Are they a Realtor, lender, appraiser, home inspector, financial planner? Don't know, the card doesn't say, and the business name is no help. Its either too broad, or too generic, say Jones, Inc. So what ends up happening is those are not going to make it into the data base. Why bother if I have no clue what they do or what use they could be to me, or me to them.

After awhile you just don't remember everyone you've met and collected a card from, and if they can't be bothered to put on their card what it is they do I'm not going to hang on to it hoping I figure it out later. Some of these cards are really nice and you can tell they were expensive. What a waste to put all that expense into a card only to have it do the opposite of what you were going for. Instead of hanging on to it, I'm just going to end up chucking these. It wouldn't have taken much, simply adding a line under the name with their job title, or under the business name with its purpose. That one line would have put them in my data base and who knows, maybe brought them business or referrals. Instead its off to the circular file.

Just a thought but if your going to go to the expense of cards, and the trouble to network and hand them out, at least make sure that they work for you, otherwise, why even bother