A TALE OF TWO CITIES?

The statistics are in, and Montgomery County home sales, which had been bucking the national price trend up through December 2007 has now slid into decidedly negative territory.

According to the latest figures released by GCAAR, average and median home prices are down significantly from July 2007 -- about the time the first rumblings of the subprime mortgage crisis began to be heard. While many jurisdictions had already started their downward slide at that point, Montgomery County -- with some of the most desirable markets nationally such as Bethesda-- was holding steady.

Compared with July 2007, average prices dropped from approx. $617,000 to $587,000, while median prices went from $500,000 to $467,000. That's about a 7% drop in the median. Median prices, the point at which half of home sales had a higher price and half a lower price, is considered a more telling figure than averages.

But looking at the 20814 zip code of Bethesda, an area in which I do a lot of business, because of my involvement as a parent at the Lycee Rochambeau / French International School located there, the statistics tell a different tale. Indeed, judging by those figures, parts of Montgomery County continue to see some pretty healthy appreciation. The re-sale figures for single family homes as reported by MRIS show average sold price in 20814 rising in July 2008 over the year before from $677,000 to $808,000 -- about a 19% price increase. WOW! The median rose from $635,000 to $727,000, over a 14% increase.

But sellers beware: this does not mean a return to the heady days of the sellers' market. The number of transactions is down considerably (nearly 11%) and the average days on market is up 45%. Properties need to be in tip top shape to sell, they require excellent staging and aggressive and high tech marketing in order to attract buyers. The ball is still in the buyer's court in this market.  

danascanlon@yahoo.com

www.homesbydana.us

301-575-4915 

This property in Bethesda's popular Maplewood neighborhood is now PRICED TO SELL at $699,000! Full of light and delightful architectural details, from skylights to fireplace. Just needs a few updates and priced accordingly. Featuring 5 true bedrooms and 3 full baths on four finished levels, all filled with light. Lower level with additional kitchen doubles as an "au pair" apartment with its own entrance.  A very versatile property! Open floor plan on main level with French doors leading from dining area to entertainment deck and private back yard. Table space kitchen. Hardwood floors on 3 levels, many appliances/ windows updated. This home is conveniently located near Metro, easy walk to NIH, the French International School. Close to premium shopping and 495.  Sellers are motivated - call to visit today!

danascanlon@yahoo.com

www.homesbydana.us

301-575-4915

Buyers and potential buyers: You need to know that you can get free access to credit reports as part of a settlement on a class action lawsuit against TransUnion, one of the 3 major credit reporting agencies.

It may not be exactly the same as your FICO score, which is a proprietary score calculated by Fair Isaac Corporation, but it will certainly help you to know how one agency ranks you as a risk for future loans.

Who can benefit from this settlement? Just about anyone in the US who had an open credit account during the last two decades! This includes credit cards, car loans, student loans, store credit and of course mortgages.

All you need to do is to register on www.listclassaction.com by September 24, 2008 or call 866-416-3470. You will be asked some basic information including Date of Birth and last 4 digits of your Social Sec number -- they need to establish if you had a credit line during the operative period. You can also sign up to get up to 6 or 9 months of credit monitoring services.

danascanlon@yahoo.com

www.homesbydana.us

301-575-4915

Posted 7/22/08

How to Invest in Real Estate in the USA, a primer for Foreign Investors

In the spring of 2008 I gave a seminar series in Bethesda entitled "Comment Acheter un Bien Immobilier aux Etats-Unis" -- geared toward the French-speaking community in the Washington DC area. In the presentations, I provided a step by step understanding for foregn nationals, explaining how to buy real estate in the USA. My seminars dealt with the process and benefits of buying and owning the home as a primary residence. Everything from understanding the FICO score, to the loan process, how buyer agency works, making the offer, the importance of inspections, all the steps leading the way to settlement.

Since then, I have  received many emails from potential investors who would like to buy property in the US, purely as an investment. 

Because the dollar continues to be weak on the foreign exchange markets, foreign investment in the US is up. The trend continues in real estate, most notably in vacation hot spots. The down market is a particularlyt excellent time for foreign buyers, who can come up with the larger downpayments required because their savings in foreign currency goes a much longer way that in the past.

In response to these inquiries from French-speaking foreign nationals, I have prepared a study entitled "COMMENT INVESTIR DANS L'IMMOBILIER AUX ETATS-UNIS" which includes simulations on rental properties, down payments required, some of the costs associated with rental properties, and the entire process involved.

I am presently working on translating the study into English: How to Invest in Real Estate in the USA, a primer for Foreign Investors.

I will gladly provide a copy of this French-language document to anyone sending me an email, describing their interest in purchasing a property, and providing me with name, telephone number and address.   For those who would like to read it in English, let me know!

Pour obtenir un exemplaire complet de cette étude, merci de m'envoyer un courriel avec vos coordonnés complets, nom, adresse et telephone et je vous l'enverrai par retour. Si votre intention est d'acheter un bien qui servira de votre résidence primaire, me l'indiquer et je vous enverrai le document "Comment Acheter un Bien Immobilier". 

EXTRAITS DU DOCUMENT SUR L'INVESTISSEMENT

Les frais d'achats

•·        Si vous empruntez une partie du capital aux USA, votre taux d'intérêt sera un peu plus élevé que la « norme » car le risque pour la banque est un peu plus élevé. En ce moment, avril 2008, prévoir plus de 6% pour le taux.

•·        Frais pour l'inspection du bien, prévoir $350-450

•·        Frais pour l'expertise qui jugera la valeur du bien, frais de notaire, frais bancaires et taxes au moment de passer â l'acte authentique de vente : 3-3,5% du prix d'achat

•·        Frais de commission : bonne nouvelle, dans la très grande majorité des cas, vous n'aurez pas de frais en achetant, c'est le propriétaire qui couvre généralement la commission des agents

•·        N'oubliez pas vos frais pour venir aux Etats-Unis et vous héberger pour quelques jours afin de rechercher et de visiter les biens immobilier qui vous intéressent...

Les frais pour la location et la gestion du bien

•·        Si vous êtes à l'étranger, vous aurez certainement besoin de confier le bien à un agent pour le louer : prévoir une commission jusqu'à un mois de loyer, payé à la signature du bail

•·        Frais mensuels : pour la gestion du bien prévoir environ 10% du loyer

•·        Frais d'entretiens : la locataire sera responsable pour les petits entretiens quotidiens (tondre le gazon, nettoyer les gouttières, changement des filtres pour le chauffage et la clim, etc.). Les grands travaux d'entretien et de réparation seront a vos frais.

•·        Charges comme gaz, eau, électricité: payés par le locataire, à moins que vous n'achetiez un appartement dans lequel certaines charges sont comprises dans les frais de syndic (« condo fees »)

Fin des extraits du document.

          REUNION d'INFORMATION - COMMENT ACHETER UN BIEN IMMOBILIER AUX ETATS-UNIS

 Samedi le 29 mars 2008 à 11 heures - North Bethesda

NOUVELLES DATES POUR SEPTEMBRE-OCTOBRE 2008 SERONT ANNONCES BIENTOT

SI JE RECOIS DES COURRIELS DE PERSONNES QUI S'INTERESSENT

Prix des logements en baisse.... L'acheteur est actuellment en position de force aux Etats-Unis. L'acheteur international qui détient des devises étrangères pour son apport l'est encore plus. 

Venez à cette réunion d'information afin de comprendre:

•·        l'historique du marché immobilier aux Etats-Unis et à Montgomery County, 

•·        avantages et désavantages d'un achat,

•·        comment construire un bon « dossier vert »,

•·        les secrets du « FICO credit score »,

•·        toutes les étapes à franchir.

Ouvert à tous, en français. Présentation faite par Dana Scanlon, Realtor®, agent immobilier franco-américaine.

Samedi 29 mars 2008  au bureau Keller Williams, 11333 Woodglen Dr, Rockville,

 Suite 100 - près de Rockville Pike, pres du White Flint Mall, parking libre.

Pour réserver votre place (RSVP) et pour toutes questions contacter Dana au 301-575-4915 ou danascanlon@yahoo.com

Votre « French Connection » pour l'immobilier

MD - DC - VA

DANA SCANLON - Direct 301-575-4915

 danascanlon@yahoo.com    www.immobilier-usa.com

L'annee 2008 sera une excellente année pour l'acheteur de biens immobiliers aux Etats-Unis. Comprendre votre score "FICO" et comment créer le meilleur score possible devient de plus en plus important, étant donné la turbulence dans le marché du crédit immobilier. Un score de 700 ou plus vous donnera acces aux meilleurs taux et formes d'emprunt. (Toutefois, pour ceux qui arrivent de l'étranger sans "FICO score" et qui veulent acquerir un bien, c'est toujours possible, mais les conditions ne seront pas les mêmes.)

Et oui, en Amerique c'est considéré un plus d'avoir quelques dettes, a condition de bien les gérer! En arrivant de l'étranger vous ferez mieux d'acheter une voiture avec une partie d'argent emprunté, meme si le taux d'interet pour ce premier achat sera un peu élevé. Remboursez le a un rythme accéléré pour éviter de trop payer d'interêts. 

Attention: une carte de "debit" lié à votre compte en banque ne contribuera pas à créer votre score, il faut une véritable carte de CREDIT. Une astuce pour ceux qui arrivent de l'étranger: si vous avez un compte avec American Express demandez que votre compte soit transféré aux Etats-Unis, ceci pourrait vous aider a établir un bon score.

Voici en gros la formule qui détermine votre FICO  (Fair Isaac Corp) score. 

- 35% du score = votre historique de paiements: ne jamais payer votre note de carte de crédit en retard! Meme quelques jours de retards dans le remboursement de dettes peut avoir un impact negatif.

- 30% du score = le montant de votre dette en proportion du montant total de credit qui vous est accordé: si une banque vous accorde une ligne de credit de $5000, par exemple, essayer de ne garder une solde de plus de la moitié . 

- 15% du score = la longueur de votre historique : mieux vaut garder une carte de credit qui ne vous sert plus que de l'annuler. Vous n'etes pas oblige d'utiliser une carte mais le garder quand meme pour montrer l'anciennete de votre dossier.

- 10% du score = nouvelles demandes de credit: il faut éviter de faire de nouvelles demandes de credit juste avant d'acheter un bien immobilier. 

- 10% du score = mélange de credit: c'est considéeré un "plus" que d'avoir multiples types de crédit (une carte de credit, plus un emprunt pour acheter la voiture etc).

Voila votre leçon en matière de FICO score. A bientot! 

In my opinion, 2008 will be an awesome year for first-time home buyers and buyers generally. A basic understanding of your "FICO" or credit score, and how to make it the best possible score is becoming increasingly important because of the turbulence in the lending market. Gone are the days when a less than stellar credit score could give you easy access to credit. Keeping your score in the 700+ range is where you want to be.

Paying attention to some simple points will help the buyer go a long way into homeownership.

The formula for the FICO (Fair Isaac Corp) score is based on the following:

- 35% of the score is based on your payment history: late payments are a no, no! Paying credit cards, car loans and the like even a few days late can do significant damage.

- 30% of the score is based on the amount you owe in proportion to your available credit: "maxing out" your credit cards is another big no, no. If your have a credit line of say $5000, make sure you do not keep a balance of more than half that amount. 

- 15% of the score is based on the length of credit history: even if you are unhappy with the terms of a particular credit card, do not cancel it. Its better to pay it off, transfer the debt to another card with better terms, but keep the old account on the books with a zero balance.

- 10% of the score takes into account new credit: opening new lines of credit just before applying for a mortgage is not a good idea. To take advantage of the strategy in the previous point, do so long before starting the home buying process.

- 10% of the score is based considering the mix of credit: its better to have different types of credit than just one, so having an installment loan for a purchase, plus keeping up with credit card payments is a plus.

I hope this helps some folks out there -- and for my French-speaking clients, "consultez mon blog en francais". 

In need of a new digital camera to take the best possible photos for my virtual tours, I have spent a few weeks researching and reading up on this. Here are some findings.

 Consumer Reports July 2007 did a top down survey of digital cameras in different price ranges and sizes, and offered useful tips. You might find this in the public library.  For my part, there were several features I was looking for: a built-in wide angle lens, best possible picture quality for a compact camera, and decent battery life, all for under $400 MSRP. Several cameras fit the bill including Panasonic Lumix DMC-LX2, Canon Powershot SD800IS, Kodak EasyShare V570. Image stabilization is another good feature, or else you can use a tripod if you have shaky hands.

Realtor.com put on an interesting Real Estate Marketing Expo and seminar near Baltimore this summer, and some very useful info regarding photography in real estate was provided. For example, if your camera does not have a built in wide angle lens, you can purchase a magnetic one that will fit right on the lens (measure the diameter first). They cost under $30 and you can order them in different sizes from www.magneticlenses.com

Dont go overboard on the wide angle -- those virtual tours that make rooms look like fishbowls are not what the consumer is looking for, and I'm sure make the client unhappy. A wide angle of 0.45x to 0.50x is deemed sufficient. You needn't go overboard on MP either, 3-5MP for most photos is enough, unless you plan to print an 8x10.

This was helpful info for me, if there are any realtors out there who really love their camera, and find its perfect for use in our line of work, please let me know, I am going to make the purchase soon! 

I maintain a list of useful and practical tools and information for my clients, who are often foreign nationals and French-speaking. International relocation  to the Washington DC area, Bethesda MD, Northern Virginia is my specialty as a Realtor. Here is a compendium of such web sites, drawn from a multitude of sources, useful for anyone seeking information on the Greater Washington DC area.

• TRANSPORTATION

To learn about commute times and metro/bus connections:

Metro subways/buses http://www.wmata.com/  -- very useful for inputting an address of a home you are considering purchasing, then your place of employment and deciding if this commute is something you can live with for years to come...

Fairfax County Connector/bus  http://www.fairfaxconnector.com/

Montgomery County RideOn  http://www.montgomerycountymd.gov/

•  GENERAL NEIGHBORHOOD INFORMATION

Schools, city profiles, income and education level etc by zip code  http://www.homefair.com/ and www.city-data.com

Find out what is within walking distance of your planned residence at www.walkscore.com

Blogs for different zip codes or cities www.outside.in

Local news, information on neighborhoods etc www.washingtonpost.com/localexplorer

•  SCHOOLS

Basic data on public schools www.SchoolMatters.com (Standard & Poors)

Not for profit group monitoring all schools www.GreatSchools.net  

French International School  http://www.rochambeau.org/

List of top public high schools in the USA http://www.newsweek.com/  under  Education

List of private schools in the Washington DC area  www.washingtonian.com/articles/education/2193.html

Parent teacher associations at public schools nationwide  http://www.pta.org/

Alexandria County public schools http://www.acps.k12.va.us/

Arlington County public schools http://www.arlington.k12.va.us/

District of Columbia http://www.k12.dc.us/

Fairfax County http://www.fcps.edu/

Loudoun County http://www.loudoun.k12.va.us/

Montgomery County http://www.mcps.k12.md.us/

Prince George's County http://www.pgcps.org/

Prince William County http://www.pwcs.edu/

• CRIME STATISTICS and MAPPING

National Sex Offender Public Registry http://www.nsopr.gov/

DC : http://www.mpdc.dc.gov/

Fairfax County: www.fairfaxcunty.gov/police

Montgomery County: www.montgomerycountymd.gov/police

Prince George's County: http://www.co.pg.md.us/

Traditionally, diplomats -- those with A1 or A2 visas -- have difficulty obtaining mortgages to purchase homes in America because they are seen as a greater risk. The reasons: diplomatic immunity, lack of credit history in the US, uncertainty as to length of stay.

However, as a specialist working with international clients, many of them French-speaking, and many of them diplomats, I felt there was a need to find a solution.  I have developed a relationship with an investor in order to make home loans possible for my clients with A1 or A2 visas, diplomats who meet certain criteria. 

If you are a diplomat looking to buy into the American Dream while residing here, call me today at 301-575-4915. Fellow Realtors, don't hesitate to contact me to discuss your case. 

Please contact me for a complimentary consultation.