U.S. Commerce Association's Award Plaque Honors the Achievement

NEW YORK, NY, February 25, 2010 -- For the second consecutive year, Casey Margenau & Associates Re/Max Distinctive Real Estate has been selected for the 2010 Best of McLean Award in the Real Estate Agents category by the U.S. Commerce Association (USCA).

The USCA "Best of Local Business" Award Program recognizes outstanding local businesses throughout the country. Each year, the USCA identifies companies that they believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and community.

Nationwide, only 1 in 70 (1.4%) 2009 Award recipients qualified as two-time Award Winners. Various sources of information were gathered and analyzed to choose the winners in each category. The 2010 USCA Award Program focuses on quality, not quantity. Winners are determined based on the information gathered both internally by the USCA and data provided by third parties.

Various sources of information were gathered and analyzed to choose the winners in each category. The 2010 USCA Award Program focused on quality, not quantity. Winners are determined based on the information gathered both internally by the USCA and data provided by third parties.

About U.S. Commerce Association (USCA)

U.S. Commerce Association (USCA) is a New York City based organization funded by local businesses operating in towns, large and small, across America. The purpose of USCA is to promote local business through public relations, marketing and advertising.

The USCA was established to recognize the best of local businesses in their community. Our organization works exclusively with local business owners, trade groups, professional associations, chambers of commerce and other business advertising and marketing groups. Our mission is to be an advocate for small and medium size businesses and business entrepreneurs across America.

SOURCE: U.S. Commerce Association

Many home owners are looking at what this year brings to the Real Estate Market here in the Metro Washington DC / Northern Virginia area. The 1^st thing we are going to cover is what is happening in the market on a local level and 2^nd you will find 10 tips for those of you that think this year is the year for you to make a MOVE. Many home sellers feel the winter blues, as they see housing prices down from prior years, but the signs across the country show the real estate market is on the mend. Locally we are not only seeing a mend to the market, but some property values have started to not only stabilize but have actually increased in value from year ago lows as much as 50 percent.

According to NVAR's Northern Virginia Area Home Sales Report for November total sales are up 42.45% over a year ago. The days on the market are down 45% and the total number of homes for sale is down 27.51%. In Fairfax County the Single Family Detached Market is looking the best overall. How do you like these numbers? Sales are up 21% over one year ago inventory down 31% and the Median Sold Price is up 17%. So what is this going to mean for us?

Sales activity is up, home builders are finally moving inventory and values are rising from there lows in many areas and many price ranges. As this spring market builds up steam, buyers are finding that the market has changed. To buy anything under 500K inventory levels are below 4 month supply and they will have to compete with other buyers on contracts. Good values may get 10 or more offers. Everything under $1million inventories levels are below 12 months supplies. Now homes in the 800 to 1million price range have showed sales up over 100% from one year ago. There is nothing that I can see that will change other than prices going up even more. The only area that still has an over supply is homes over 1million where there is still a 19 Month Supply. But that is changing as well. The new home supply is nil and the nice homes on the market below 1.6 million is getting very thin. The key is to have your home priced to today's market not the fantasy that you may want and need. At year-end 2009, mortgage rates stand at historic lows, spurring a wave of new applications for refinancing and new home Purchases. As we see 2010 come in we will most likely see a slightly higher rate. Every time we have seen this in the past buyers tend to make moves faster and it creates a sense of urgency in the market. All this means a wild ride for later this spring!

But there is one thing that will slow down a ramped price increase and that is the Short Sales and foreclosures that will likely continue to put pressure on homes prices in 2010 as they work their way through the pipeline slowly. It was apparent in 2009 that lenders were holding back much of their foreclosure inventories and REO, or real estate-owned property, in an effort to keep values up. This has worked and if the bankers are smart they will keep these properties coming at slower levels and get more for them as the market improves.

As I see it this year is going to be a great year in our local area Real Estate Market, Buyers and especially 1^st time buyers that are buying homes with a long term out look will see that best value for years. The reason for this is going forward we have 79 million "Y" generation(ers) coming into the prime buying age's. This will keep that segment of the Market strong for years. With that Move up buyers will get more money for there lower price homes and the difference will be less to get them more. This will follow up the price chain and be good for all segments in the market. With that lets look at the best tips for buyers this New Year:

Tip 1: Take Uncle Sam up on his offer.

Might as well get a piece of that big stimulus pie while it lasts. At some point, the federal government will have to let the toddler walk on its own legs.

The $8,000 first-time homebuyer tax credit program that helped jump-start the real estate market in 2009 has been extended into 2010 and expanded. First-time home buyers who sign a binding contract to buy a home by April 30, 2010, and close on it by June 30, 2010, qualify. The program's maximum income limits have jumped from $75,000 to $125,000 for individuals and from $150,000 to $225,000 for couples.

For those who have owned their homes for at least five years and want to trade up to a different primary residence, a separate $6,500 tax credit has been added. Further, many homeowners who are underwater in their real estate loans are eligible for a loan-modification program with their current mortgage company or loan servicer through the Making Home Affordable Program.

Tip 2: Find down payment assistance.

There are several down payment assistance programs for first-time homebuyers at the federal and local levels. Other down-payment assistance programs that can piggyback ongoing federal programs are often available at the city, county and state level. Just conduct an Internet search for "down-payment assistance programs" with your town, city or county and Virginia added.

 Tip 3: Make home improvements now.

Now may be the best time in years to fix up your home, either for a potential sale or simply for the sake of better living. Low financing costs, reduced construction materials costs and lower contractor profit margins make rehabs more affordable. Repairs that typically yield the highest returns are kitchen and bathroom makeovers with an emphasis on counters and cabinets. Get at least three different estimates and talk to your Real Estate Agent after you get them to see if these improvement costs will pay for their self at resale. Remember even Remodelers Magazine say's "you will only get .60 on the dollar back on such repairs". So make sure you want to live with the renovations, not just because you think it will help your home get sold. A good agent can help with that kind of a decision.

Tip 4: Hire Real Estate Agents wisely.

Now is not the time to hire a friend or relative as your Real Estate Agent. Just because you know who they are socially should not be a qualifier for them as your Real Estate Agent. Anyone that you hire, especially with one of the most expensive transactions of your life, should have over 7 years in this business. More over, should have sold hundreds of homes in your price range. In this market going with the 2^nd string could cost you 10's of thousands of dollars. You hire an agent that is well known in the Real Estate industry. You want someone who is well-connected with other agents, to help you get the home you want or other agents like to Sell there homes to. One that lenders and other fellow industry pros know will get the job done. Check credentials, references and recent performance histories of that agent relative to your home.

Tip 5: Price accordingly, sellers.

This should be on every real estate seller's priority list. In most of our area, if the home is under 1million there are few reasons other than price that a house can't go under contract in 60 days or less. Homes in the upper brackets need more time but pricing is also the key. The listings that generate activity while others gather dust are typically those whose owners have adjusted expectations based on comparably priced homes, or "comps." That doesn't mean you should drop your price precipitously on your well-maintained home to undercut that of a poor-condition foreclosure homes. It just means "price to the present," not to a fantasy market.

Tip 6: Don't wait out the recovery.

Yes sellers, housing has been repriced. And by the looks of things, it will take YEARS for values to return to their previous highs. Just because your home is less then what it was selling for a few years ago, doesn't mean you are taking a loss. Only those of you that purchased a home from 2004 to 2009 may be underwater. The rest of you are still getting more than you paid. If you bought and sold then you still might be ahead. It is a great time to move up. Sell your home at a fair market value and shop for a deal. Or, move up by improving your home to a home that will do better in the future. Example: Sell that home that backs to a road or is older and a little dated and get a updated better location..

Tip 7: Think long term.

Buyers, make sure you look for a home that suits your long-term needs, look at schools even if you don't have kids yet, but plan for them in the future. Think functionality, neighborhood, location, access to services, highway access, work routes, schools, relatives and mass transit, and not price only. Do your homework, keep a cool head and carefully examine all the options. The longer you keep a home the better it will be for long term wealth, making a mistake can cost you a lot since it cost 10% to move. Now there are still going to be deals for maybe one more year, and in these there maybe exceptions, but that is a longer story. A house is a habitat first, an investment second but when done right it can be both.

Tip 8: Energy largesse.

Through Dec. 31, 2010, homeowners who buy and install specific energy-efficient windows, insulation, roofs, doors and heating and air-conditioning equipment can get a 30 percent tax credit for up to $1,500 of their costs on each product.

If you want to take it a step further, you can buy greener (and more expensive) energy-saving products, including solar energy systems, geothermal heat pumps, small wind systems, residential fuel cells and micro-turbine systems, and get 30 percent tax credit with no spending limit on each system, through 2016. Go to EnergyStar.gov's Federal Tax Credits for Energy Efficiency for a complete summary.

Tip 9: Consider rent-to-own deals.

The current market has driven many former homeowners into rentals, where they have nothing to show for their payments. Rent-to-own or lease-to-own deals allow buyers to "test drive" a home for a designated period while paying a higher-than-market rent to buy down an eventual down-payment. This gets renters vested in a home while they repair their credit and also helps frustrated sellers generate an above-market revenue stream. Make sure you have an agent that understand the pitfalls and use a very specific contract that spells out all the options.

Tip 10: Don't take or make it personal.

Our homes have such a personal connection to us that we're often challenged to turn them back into just plain houses when it's time for us to sell. It is always best to remove personal effects such as too many pictures, knickknacks, mementos, trophies, greeting cards and the like before showing a house. A good agent or one of our home-stagers can emphasize the positives of a room and down play the negatives.

The buyers want to imagine themselves in the house for years to come and your excess decor and whatnots only distract from this vision. And don't get defensive about any changes that a buyer may want, keep your eye on the ball you want it sold and move on.

Buyers remember, it's only paint and or carpet, don't miss out on the right home over the belongings or colors of the Seller.

The much-anticipated extension to the home buyer tax credit has finally been approved. The Senate's vote yesterday resulted in a 98-0 win and today it was passed in the house. The bill now moves to the President's desk for a final signature. There is no way it will not be signed. First-time home buyers have been eligible for a tax credit of up to $8,000 since last January as part of this year's economic stimulus package. The newly backed program will expand the credit to include existing home owners. This will help people sell their smaller home that is in high demand and move up to the next higher price range. Great news! Under the revised program, those who have owned a home for at least five years will be able to apply for tax credits of up to $6,500 when they purchase their next home. To qualify, buyers will have to sign a purchase agreement by April 30, 2010 and close by June 30. The maximum purchase price on a home will be $800,000 with vacation homes not eligible. Income limitations are $125,000 for single tax payers and $225,000 for joint filers. The National Association of Realtors (NAR) and the National Association of Home Builders (NAHB) have been lobbying hard for the extension and expansion of the tax credit. NAR claims that so far, about 1.4 million first-time home buyers have qualified for the program and they estimated that 350,000 of these buyers would not have otherwise purchased. I say hogwash. The buyers in this area have bought because homes are now affordable. The tax credit does give them a push to do it now. The tax credit is also set to be extended for another year for military personnel serving outside of the United States until June 30, 2011. Senator Johnny Isakson, who heavily pushed for the extension, along with his own version that would have increased the credit to $15,000 stated, "This is probably the last extension." I think this is also good news since if people understand that the tax credit is over at the end of this extension, Buyers will get out there and find a home. This will help rock this spring’s market!

Mortgage bond prices initially opened positive this morning following relatively bond friendly employment data only to fall back off to near neutral on the day. We still are slightly positive since pricing yesterday morning. Additionally, unemployment came in @ 10.2%, higher than the expected 9.9% mark...a bond friendly figure. This is great news for the market and better news for Home Buyers. This bad news for the unemployed is going to help you get a better deal on a home purchase. Non-farm payrolls fell -190k, weaker than the expected -175k...another bond friendly piece of data. However, the average hourly earnings component rose 0.3%, higher than the expected 0.1% increase and inflationary in nature....not bond friendly. Usually the two headline figures generally outweigh the third component of the report but as we saw this morning volatility still remains. This we do not care that much about, but it looks like rates will stay low and that is what matters. But with this bad unemployment and earnings news, many Buyers will stall and some Sellers will get worried. This is where the savvy Buyers will use the seasonal slow down coupled with the bad news and BUY NOW. Take advantage of this temporary bad news (granted you have job security) and make your move. There are so many factors that say in just 3 years this market will be gangbusters with $79 million: Gen Y coming into 1st time home buying age and the Federal Government blowing up and the Northern Virginia area is still growing. With continued no new housing being built plus we are already in short supply in many price ranges. The market looks great for Home Buyers. Let me make one thing very clear. I am talking about moving up within the market and/or buying home for long term gains, not flipping. I have never believed in flipping homes. I think that if the opportunity presents itself, its fine, but to buy with flipping as the end result is too risky. So if you want to own a home. If you want to create long term wealth. Do not miss the opportunities this market is presenting you.

Senate has reached a compromise on extending and expanding the $8,000 tax credit

The Senate has reached a compromise on extending and expanding the $8,000 tax credit for first-time home buyers, a boost the housing industry believes will help it pull out of its two-year-old downturn.

While its passage remains uncertain, the agreement would extend the existing credit for first-time homebuyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all homebuyers who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers in Washington also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000, housing-industry sources said. Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House.

Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan are in full support of the Senate’s proposal to both extend and expand the first-time homebuyer tax credit and called on Congress to approve key housing measures that include the tax credit. "We welcome efforts taken by Congress to extend the First-Time Homebuyer Tax Credit for a limited period. This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide," said Secretaries Geithner and Donovan. "In extending the credit, we urge Congress to include strict measures to combat tax fraud and protect responsible homeowners.”

The current tax credit did little for the new-home market in September, the Commerce Department recently reported—news that took many industry analysts by surprise. Sales fell 3.6% from August and 7.8% from September 2008. Industry observers had expected a fifth consecutive monthly increase in new-home sales, believing that the tax incentive for qualified first-time buyers—credited with 357,000 sales of previously owned homes so far this year—would do the trick. Instead, sales of typically more expensive newly built houses slipped. "The decline in new-home sales seems to us to be more a function of the attractive pricing available on resales in the current environment than a reflection of weakening demand," said Michael Feder, president of Radar Logic in New York, which tracks the market.

"Since hitting rock bottom in March, demand is up 20 percent," said Joel L. Naroff of Naroff Economic Advisers in Holland, Pa. For Naroff, the robust rise in existing-home purchases—9.2% year over year in September—indicated that the housing market was not faltering. "Maybe the issue is supply, which fell to its lowest level in 27 years," he said. "Builders, at least those left standing, have been making sure they don't have any houses sitting around, and they have been very successful in controlling inventories."

IHS Global Insight economist Patrick Newport echoed that, noting new-home inventories "sank for the 29th straight month to their lowest level since November 1982." Naroff maintained housing has recovered enough to stand without the tax credit, but Newport said that if the credit were not extended and expanded, housing demand would take a hit, and home sales would drop.

The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real estate market a bigger boost while preventing real estate investors from benefitting. While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor.

Courtesy: RIS Media, www.rismedia.com