After 23 years in this business of helping people buy and sell homes, I have come to the conclusion that the "dream" home is just around the next corner or bend in the road. For most, the buy decision is an emotional bonding, mixed with fear-of-loss (someone else is going to get it before me). I have been out with folks who swear allegiance to a 4-bedroom, 3-bath colonial on day one and, dump it for a 5-bedroom Contemporary nestled in a wooded setting on day two. In fairness, it really is a big-deal decision and everyone goes through the process with varying degrees of anxiety and success.

If you do not have a committed buyer agent working tirelessly on your behalf, your work is doubled and your chances of success are radically diminished.

Internet savvy buyers think they have the real estate world by the tail. All you have to do is log on, find the perfect house at the right price, beat the owner down on price, buy it and live profitably ever after.

If it were that simple, there would not be 5,000,000+ Realtors still gainfully employed across the U.S.

I think shopping for properties on the Internet is a good thing. On any given day, it helps prospective buyers to learn more about the current inventory across a geographic area. However, the Internet and Google can never replace what it feels like to drive into a prospective neighborhood on a Saturday morning, so you can, 1st-hand, see who your neighbors would be, are there any swing sets, how well folks keep up their home and lot, how many cars are in front of each house, how far the school is, etc. Then onto the next neighborhood of choice until you have seen what you need to see to make a good purchase decision. A really good Buyer Agent can and should make your final selection a difficult choice, by having at least two or three properties that you would gladly purchase.

The principle reason Internet buyers don't use a Buyer Agent is that they think they are going to get the property for a lower price by eliminating the selling agent commission. Please go to whichever hard data site you wish to determine savings. Annually, there are surveys conducted by independent polling firms (employed by lenders, trade magazines, news organizations, etc.) to review differences in acquisition prices. On average, un-represented buyers end up paying a minimum of $5,000 to $12,500 more for properties purchased. This does not include the unanticipated replacements and repair needs that are discovered after move-in.

Yes, you can go and make one of the biggest and most important investments of your life without capable representation. But, why would you? If you have had a less than satisfactory experience with a Realtor in the past, you need to be more picky. Your uncle's best friend's son-in-law's cousin who has been in the business for 17 days may not be the best choice. Go on ActiveRain and see the exceptional group of seasoned professionals who are in this business, full-time and fully capable of finding you the best home, in a great neighborhood at an affordable price.

Happy hunting!

Dave Rosenmarkle

Broker/Owner

Highland Realty

Arlington, VA

(703)538-2566

evad7777@gmail.com

www.HighlandAgents.com

On a continued gloomy note, business intelligence company, SNL Interactive interviewed homebuilding space analyst for Stifel Nicolaus & Co., Michael Widner, who predicted that the housing market will have excess capacity for at least the next five years.

If the number of housing starts continues at the current levels then capacity may shrink substantially within three years, but with the predicted ramping up of new housing starts by a number of the major builders, that excess capacity is likely to run for at least five years.

Widner does expect some of the major builders to return to profitability in 2010 and others to follow suit in 2011. Acquisition of cheap land for the next development phase will help to keep costs low for many of these builders. Widner is not optimistic for long term increases in housing value over the next five years, and he believes stocks are trading too high form many of the housing market companies.

Dave Rosenmarkle

Broker/Owner

Highland Realty

703-538-2566

davidrose@mris.com

www.HighlandAgent.com

The cities that saw the bubble housing boom in the first decade of the century—cities in California, Florida, Nevada and Arizona especially—won’t see the next big boom until around 2025 according to the financial services company, Fiserv. Fiserv expects other markets in the Northeast and Midwest to take a full ten years before price spikes equivalent to 2006 and 2007 return.

For most of the country some level of normalcy will prevail starting in 2011, but the recovery period will be prolonged almost everywhere in the U.S. Factors that will keep housing cycles from a more historic 10 year pattern are the continuing high levels of unemployment and the large inventory of foreclosures.

Fiserv also blames the former widespread practice of predatory lending in cities such as Minneapolis, Chicago, and Memphis, which have led to many foreclosures in many neighborhoods.

Cities Fiserv predicts will recover on a much faster track are Pittsburgh, Columbia, South Carolina and some of the cities in Texas, Washington, and upstate New York.

Dave Rosenmarkle

Broker/Owner

Highland Realty

Arlington, VA  22207

703-538-2566

davidrose@mris.com

www.HighlandAgents.com

President Obama's foreclosure prevention plan has helped nearly 228,000 delinquent borrowers keep their homes, the administration said Wednesday. That's up from a month ago, when roughly 168,000 people received long-term mortgage modifications.

Another 781,000 troubled homeowners were in trial modifications, through March, officials said. Of these, 108,000 have been approved for permanent modification by servicers and are awaiting borrowers' acceptance. So far, some 19.8% of trial modifications have become permanent, up from 15.5% a month ago.

Overall, some 6.7% of the estimated 3.4 million eligible borrowers have received long-term help.

While the number of people receiving permanent modifications is steadily growing, industry experts say the relentless foreclosure tide continues to threaten the program's effectiveness. The administration has ramped up pressure on loan servicers to convert more trial modifications to long-term aid. But, some 13.5% of trial and permanent adjustments have been canceled, most often because borrowers did not make timely payments or return the necessary paperwork.

Wednesday's update comes on the heels of a government watchdog report that said the president's plan will fall short of its goal to help up to 4 million people avoid foreclosure. Nearly 200,000 foreclosure proceedings are started each month, according to the Congressional Oversight Panel.

The following comment is probably the most clarifying of the present market situation: "For every borrower who avoided foreclosure through HAMP last year, another 10 families lost their homes," the panel said of the administration's Home Affordable Modification Program. "It now seems clear that Treasury's programs, even when they are fully operational, will not reach the overwhelming majority of homeowners in trouble."

Dave Rosenmarkle

Broker/Owner

Highland Realty

Arlington, VA  22207

703-538-2566

davidrose@mris.com

www.HighlandAgents.com

While I'm not sure what they had for lunch, but housing "experts" at Barclay’s Capital are convinced that the worst of the housing market decline is over. A look at the 4th quarter earnings documentation from 20 national and regional banks provided the data that led to Barclay’s conclusion.

The banks all seem to agree that the housing market has stabilized in all but a few parts of the country. The weakest areas where further declines may be seen are Arizona, Nevada and parts of Florida.

Housing still constitutes an area where troubled asset portfolios still trouble many banks, but the number of new problem loans is going down and the credit strangle-hold is beginning to loosen.

Barclay’s economists believe that the loan restructuring programs under HAMP have actually begun to make a difference to the health of many lending institutions, and that the new emphasis on debt forgiveness will bring a further stabilization in the housing market.

Barclay’s indicated that lenders would be using their REO inventory like a valve—moving more of this inventory into the active housing market as prices stabilize and cutting back should prices start to dip again.

I don't know about your market, but price stability is still not apparent in most of my market area. There are always niche neighborhoods that are perennially desireable and, they need to be kept separate from general market analyses.

What's your take?

Dave Rosenmarkle

Broker/Owner

Highland Realty

Arlington, VA  22207

703-538-2566

davidrose@mris.com

www.HighlandAgents.com

Ever wondered why some housing markets virtually disintegrated when the housing bubble burst, while others have survived quite well? This was the subject of a research report put out recently by the New York Federal Reserve Bank written by two of the Bank’s economists and researchers, Jaison R. Abel Richard Deitz. Deitz and Abel answer the question by focusing particularly on the upstate New York housing market.

During the housing boom of 2000 to 2006 home prices in upstate New York cities of Utica, Syracuse, Rochester and Buffalo did not appreciate rapidly like so much of the rest of the nation. Likewise, these metro areas have either fallen very slowly, or have actually continued to rise in home value gradually.

These New York cities have managed to sustain their housing market despite continuing weak employment and decline in population. Buffalo, Rochester, and Syracuse all ranked in the top 10% of housing markets across the country in home price appreciation in 2009.

Abel and Deitz pegged the area’s low dependence on sub-prime mortgages during the boom years, and higher than average performance of the existing sub-prime loans in these upstate New York communities as the reasons why this area has not suffered from steep declines in the housing market. No big boom means no big bust and a more stable housing market. In communities throughout the country where the housing market remained stable, the lack of sub-prime loans can be identified as a big reason.

Dave Rosenmarkle

Broker/Owner

Highland Realty

Arlington, VA  22207

703-538-2566

davidrose@mris.com

www.HighlandAgents.com

The Case-Schiller Home Prices Index showed another positive jump for the eight straight month in January. The seasonally adjusted prices increased by .4% for the 10 city index and .3% on the 20 city index. Both showed a decline on the unadjusted indexes due in part to the bad weather in many parts of the country.

On the negative side, Charlotte, Las Vegas, Seattle, and Tampa experienced prices that reached new index lows. In Tampa, prices are down 42% from their high levels, and Las Vegas has troughed at 55.8% from its peak. On the more positive side, San Francisco and Minneapolis are 15.2 percent and 12.9 percent ahead of their lowest points respectively.

Case-Schiller economists warn, however, that some of the forces that caused home values to start to rise are on course to be reversed, particularly with the end of the first time and move-up homebuyer tax credits. It is hard to say whether price gains can be sustained without these programs.

Dave Rosenmarkle

Broker/Owner

Highland Realty

Arlington, VA  22207

703-538-2566

davidrose@mris.com

www.HighlandAgents.com

The Recovery Act allocated $4 billion in rehabilitation money for foreclosed homes, but with only months left on the funding less than half of the money has been spent to date. As of mid-March 38% of the Neighborhood Stabilization Program funds had been obligated. All funds must be committed by September or the funds will be lost to the communities that have received grants.

Some communities have used the funds to buy up and renovate foreclosed homes to resell to low income families. Some municipalities have used the funds to tear down abandoned eye-sores. Others are purchasing and renovating apartment buildings for low income housing.

In some communities officials complain that they have been unable to compete with private investors to get a hold of foreclosed properties. Communities in Florida have particularly been stymied and have spent only 25% of the $91 million awarded within the state through mid-March.

The latest wave of funding released in January went to only 56 communities where there is a track record for supporting large-scale community foreclosure abatement programs.

Dave Rosenmarkle

Broker/Owner

Highland Realty

Arlington. VA  22207

703-538-2566

davidrose@mris.com

www.HighlandAgents.com

In an effort to expedite loan modifications several states have begun to use an automated portal to lenders participating in the HOPE NOW program. Last week Maryland inaugurated the service with 8 lenders and 100 non-profit loan modification counselors. Maryland is the first state to endorse the program.

The servicers participating in the streamlined loan program are American Home Mortgage Servicing, Inc., Chase, Bayview Loan Servicing, Ocwen, GMAC, Saxon Mortgage Services, SunTrust, and PNC Mortgage.

The program is designed to make submission of paperwork more efficient in order to eliminate the concern that modifications are frequently delayed because of lost files.

Dave Rosenmarkle

Broker/Owner

Highland Realty

Arlington, VA  22207

703-538-2566

davidrose@mris.com

www.HighlandAgents.com

The Home Affordable Foreclosure Alternatives program debuted April 5. Lenders have been ramping up for a deluge of Short Sales for the past several months and the government’s latest program will probably boost the numbers even though there are flaws in the program. HAFA may help individuals who qualified for a trial loan modification, but didn’t make the final cut for a permanent loan change. The same paperwork prepared for HAMP will apply to HAFA as well.

Bank of America and other servicers have more than doubled the number of Short Sales they are handling in recent months. There is real recognition now that transacting a Short Sale saves time and money for the Lender.

Under the HAFA program lenders get higher incentives than under the current Home Affordable program. Servicers will get $1500 for handling the Short Sale. Investors holding the note will get $2000 for sharing some of the sale with a second lien-holder. Second mortgage-holders can get up to $6000 for releasing their liens. Homeowners get $3000 to assist in moving expenses.

Lenders under HAFA must expedite BPOs in order to tell homeowners what they are willing to accept for sale of the home. Once the owner has found a buyer the Lender must respond with whether the offer is accepted within 10 days. Under HAFA a Homeowner does not have to have a Buyer lined up before the paperwork is started and the Lender has ordered a BPO. To this point many lenders have required the Buyer to be in place before starting the Short Sale case file.

The Homeowner may be required to continue to pay some portion of the mortgage in order to qualify for the Short Sale program. If the home is not sold within 120 days the Lender may choose to initiate a deed in lieu of foreclosure, or they may choose to extend the deadline for a sale for up to one year. In exchange for putting this level of control in the hands of the Lender, the primary Lender must agree not to pursue a deficiency judgment.

Until the impact of HAFA becomes clearer we recommend that Homeowners request non-HAFA Short Sales. Many Homeowners are unable to continue to pay mortgages while Lenders decide upon a Short Sale. There is the possibility that the Homeowner will pay just to find out that the Short Sale is going to be denied. At that point there may be few options to ask for a new BPO or find a new Buyer.

Dave Rosenmarkle

Broker/Owner

Highland ealty

Arlington, VA  22207

703-538-2566

davidrose@mris.com

www.HighlandAgents.com