Potomac Maryland Real Estate - Colleen Barlow, Realtor

Update on the New Home Buyer Credits

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Mon, 09 Nov 2009 14:37:44 -0600

Thankfully, the President signed the law extending the $8000 First-time Home Buyer Credit and adding a credit of $6500 for other "Repeat" Home Buyers. Thanks to Scott Schaub of M-Point Mortgage Services for this summary of the new law:

$8,000 First-time Home Buyer Tax Credit at a Glance

•· The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.

•· The tax credit does not have to be repaid.

•· The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.

•· The tax credit applies only to homes priced at $800,000 or less.

•· The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

•· For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.

•· For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

•· To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.

•· The tax credit does not have to be repaid.

•· The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $6,500.

•· The tax credit applies only to homes priced at $800,000 or less.

•· The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.

•· Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

With interest rates at historically low rates, and the home buyer credits, it's an amazing time to buy a home. Even if you can't sell your current home for what it might have sold for back in 2005, you'll save money on the new home and the closing costs on both selling your current home and buying your new home. In most cases, it makes more financial sense to move now, and not in a couple of years when people believe home values will have risen slightly.

I'm happy to run the numbers for you if you like. I can tell you the probable sales price for your home, and the closing costs on both selling your home and buying a new home. Please just call me at 301-717-1663 or email to Colleen.Barlow@LongandFoster.com .

Warmest regards,

Colleen Barlow, Realtor

Should you buy now before interest rates go up?

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Tue, 29 Sep 2009 22:38:57 -0500

According to Yahoo Finance... WASHINGTON (AP) -- To prevent inflation from taking off, the Federal Reserve will need to start boosting interest rates quickly and aggressively once the economy is back on firmer footing, Fed officials warned Tuesday.

"I expect that when it comes time to tighten monetary policy, my colleagues and I will move with an alacrity that, if needed, will be equal in speed and intensity" to when the Fed was slashing rates to battle the recession and the financial crisis, said Richard Fisher, president of the Federal Reserve Bank of Dallas.

Although I've never been able to predict the future, one thing is certain: Mortgage Interest Rates are at a historic low right now. Home prices are lower than they were. Most "experts" are predicting that home values will slowly begin to rise now, and there are some indicators that seem to show that trend beginning around the country. If you're thinking of taking advantage of the 1% up to $8,000 federal tax credit, you need to close on your new home by November 30th. All in all, it seems that now really is a very good time to buy, if you can afford to do so.

Determining the Square Footage of a Home

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Fri, 18 Sep 2009 14:53:13 -0500

I often asked what the square footage of a home for sale is. This is a really "gray" area, unfortunately. Most often, I will quote the square footage stated in the Maryland State Department of Taxation and Assessments (SDAT) database. This figure is normally the approximate square footage of the home, NOT including:

the basement, whether it's finished or not
hallways
baths
closet space
foyers
garage space -- even if it has a workshop section to it

SDAT does also include a "livable" finished square footage number for the basement. I find that many homes have been remodeled and expanded or have finished their basement; and SDAT's numbers often don't reflect that improvement. I'm guessing it's dependent upon whether or not plans were filed with the county when updates were done. Either way, you can see that the numbers can be somewhat misleading.

However, be aware that most builders will advertise the square footage of the homes they build as the total square footage as measured by the dimensions of the home times the number of floors PLUS the basement.

As you can see, there can be a HUGE discrepancy between these two numbers. The same home in one scenario had an SDAT square footage of 1888 and a builder's advertised square footage of 3100 square feet! Often people come to my open houses quoting the numbers they found from various sources, not understanding that they are being somewhat mislead.

Appraisers use a different paradigm than these, just to make things even more complicated.

The bottom line is this: You can't count on the square footage quote from any source to be completely accurate, since everyone uses a different definition of what space should be included in the total. Compare room sizes of competing properties to be sure that you're comparing "apples to apples". Your agent should have a laser measuring tool available which would allow you to quickly measure the rooms yourself, to be sure you're getting what you think you're buying. Buying a home is a significant investment for most of us. Protect yourself and don't rely on square footage quotes -- even from the "experts".

Appeal your Property Tax Assessment and Save Money

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Wed, 08 Jul 2009 18:26:52 -0500

For instructions on the process of appealing your property tax assessment in Montgomery County, MD; please see my post below. If you'd like a free Competitive Market Analysis of your home's value, just click on the image below and fill-in the blanks:

You'll receive your market analysis by email in less than an hour. Please keep me in mind if you're thinking of selling or buying a home.

Best wishes,

Colleen Barlow

CNN / Money's "When will we hit bottom?" Forecasts

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Thu, 02 Apr 2009 18:24:45 -0500

Today CNN/Money has been heavily advertising their new interactive map which shows their predictions for when each area of the country will "hit bottom" and how much further they believe each area's housing prices will drop. Unfortunately, for us (the closest areas defined for the Washington, DC Metropolitan areas are labeled Bethesda and DC) they are predicting that prices in the Bethesda, MD area will drop another 11.1% and will hit bottom in the second quarter of 2010. This type of thing only slows our chances of recovery, by discouraging potential buyers. Here's the link to their report . Click on the "Interactive Map" and then zoom in to the DC area to see the marker for Bethesda or DC ...

http://money.cnn.com/2009/03/20/real_estate/home_price_forecast.moneymag/index.htm?postversion=2009040212

The Potomac 20854 zip code is fairing much better than the rest of Montgomery County, MD. This chart compares home sales in the Potomac 20854 zip code between February 2008 and February 2009. You can see that more homes sold (25 in 2009 compared to 17 in 2008) and for a slightly higher average sold price of 0.78% in Potomac, Maryland.

	2009	2008	% Change
Total Sold Dollar Volume:	$ 30,986,596	$ 20,907,150	48.21 %
Average Sold Price:	$ 1,239,464	$ 1,229,832	0.78 %
Median Sold Price:	$ 930,000	$ 1,260,000	- 26.19 %
Total Units Sold:	25	17	47.06 %
Average Days on Market:	117	175	- 33.14 %
Average List Price for Solds:	$ 1,384,864	$ 1,359,282	1.88 %
Avg Sale Price as a percentage of Avg List Price:	89.50 %	90.48 %

Montgomery County as a whole didn't fare as well for the same time period. Below is the chart for the entire county. You see that the total number of home sold dropped from 484 sold in February of 2008 compared with 448 sold in February 2009. The average sold price dropped 25.52%.

	2009	2008	% Change
Total Sold Dollar Volume:	$ 188,924,221	$ 274,052,306	- 31.06 %
Average Sold Price:	$ 421,706	$ 566,224	- 25.52 %
Median Sold Price:	$ 315,500	$ 415,000	- 23.98 %
Total Units Sold:	448	484	- 7.44 %
Detach/Attach Average Sold:	$ 540,399 \| $ 279,302	$ 737,151 \| $ 359,838	- 26.69 % \| - 22.38 %
Average Days on Market:	118	121	- 2.48 %
Average List Price for Solds:	$ 473,121	$ 619,091	- 23.58 %
Avg Sale Price as a percentage of Avg List Price:	89.13 %	91.46 %

I hope and pray that CNN's forecasts don't hold true. I believe that the Washington, DC Metropolitan area will lead our country's economic recovery, hopefully turning around before the end of this year. Wish you all the best life has to offer. Colleen Barlow, Realtor, Email: Colleen.Barlow@LongandFoster.com

How to Appeal Your Property Tax Assessment in Montgomery County, MD

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Mon, 05 Jan 2009 16:09:14 -0600

If you received a property tax assessment that you believe is too high, or if you recently purchased a home for less than the assessed value, it may be worth the effort to appeal the property tax assessment-even if you are in the middle of the three year assessment cycle. Information on the appeal process can be found on the State of Maryland Department of Assessments website: http://sdatcert4.resiusa.org/appeals2008/.

If your property is located in Montgomery County, Maryland, you may contact the local assessment office and ask for Roberta Ward, who is extremely helpful and can walk you through the process. Her email is rward@dat.state.md.us, and her phone number is (240) 314-4511.

I'm happy to do a Competitive Market Analysis (CMA) to help you determine the market value of your home, if you should decide to ask for an appeal. Please just email me at Colleen.Barlow@LongandFoster.com and give me the address of your property and details such as the number of bedrooms, baths, square footage (if you know it), and any information on updates you've made to the property.

Wishing you a wonderful 2009!

Colleen Barlow, Realtor

Phone: 301-717-1663

Facts about Maryland Real Estate Taxes and Assessments

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Thu, 20 Nov 2008 17:36:30 -0600

Some interesting facts from the Maryland Association of Realtors were just released...

Did you know that 45% of the total Maryland County/City local government revenues come from real estate taxes?

The most current assessment for the fiscal year beginning July 2008 estimates the total vlue of Maryland real estate at almost $700 Billion.

Over the past 5 years, the value of the total assessable base of real property in Maryland has risen over 90%. I find that amazing.

My home's assessed value is currently about 15% over what I believe I could sell my home for. There are pockets around Montgomery County where homes are selling over their current assessed value, but they are few and far between. The vast majority of us are paying taxes on an assessed value far above what we could sell the home for in this economy. Personally, I'm glad my property's up for re-assessment in the first quart of 2009.

For those who are struggling with their property taxes, consider appealing your assessment. Please see my blog's earlier entries for information on how to go about doing that.

Best wishes,

Colleen Barlow, Realtor

The Latest from Warren Buffett

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Fri, 24 Oct 2008 20:32:13 -0500

I appreciate Warren Buffett's views. Here's a short summary of an op-ed piece he wrote featuerd in the New York Times on 10/17/2008:

First, I loved the title of his editorial, "Buy American. I Am." You've got to appreciate the patriotic tone he sets.

Warren Buffett is the Chief Executive of Berkshire Hathaway. Without a doubt, he's one of the most respected investment gurus of our day. He says that the financial world is a mess here and around the world. He emphasizes that he can't anticipate what will happen in the short term, but that he's been busy buying American stocks for his own personal account.

Buffett feels that at this point in time, cash is a riskier investment than U.S. stocks. He belives that in the long term stocks will outperform cash - period.You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy.

He says, "I don't like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, I'll follow the lead of a restaurant that opened in an empty bank building and then advertised: "Put your mouth where your money was." Today my money and my mouth both say equities."

HomeServices of America, Inc., part of Buffet's Berkshire Hathaway, Inc., announced it plans to spend "$200 million over the next couple of years paying 20 to 25 cents on the dollar for distressed brokerages around the country. That capital, which will triple the company's market presence, comes from the same source that last month invested $5 billion in the struggling Wall Street giant Goldman Sachs: Warren Buffett's Berkshire Hathaway Inc."

HomeServices Chair, Ron Peltier, said, "We think the longer-term prospects for housing are very compelling, and we think it's a perfect time to expand our position."

It's a difficult time for the world, economically, but I have faith that we will all come out of this stronger and better than ever. Perhaps it really is time to start, as Buffett suggests, investing in America again.

Here's a link to the article sighted above:

http://www.nytimes.com/2008/10/17/opinion/17buffett.html?em

As for the real estate market here in Montgomery County, Maryland, or more specifically here in Potomac and Bethesda, MD; I was fortunate to sell a home in Bethesda listed for $1.4 Million this week. I've had buyers interested in making offers on two of my other listings in Potomac. I also received offers to purchase two listings which were rejected by my Sellers. Other agents I network with are also reporting an increase in activity this week. Could it be that we're at the bottom? I only WISH that I had a crystal ball which worked, but I remain hopeful. Please call if I can help you buy or sell.

Warmest regards, Colleen Barlow, Realtor, Phone: 301-717-1663, Email: Colleen.Barlow@LongandFoster.com, Website: www.ColleenBarlow.net

What's your Home Worth in Today's Market? What did your Neighbors Sell Their Home For? Better than Zillow

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Sat, 11 Oct 2008 13:46:49 -0500

I'm thrilled to let you know that I now offer an interactive Home Value / Market Snapshot tool which I think you'll love. It's actually similar to Zillow, in that it uses an interactive Map with icons to show you all of the homes for sale, under contract, or sold around your home. It's BETTER THAN ZILLOW, because it contains all of the homes sold in the MLS and if you click on any of the homes, you'll see the information that is in the original MLS listing, including the virtual tours, photos, and other details. Here's a screen shot of what it looks like:

If you'd like to receive one of these for your neighborhood, just go to my website:

http://www.ColleenBarlow.net and click on "MARKET SNAPSHOT".

No need to save those SOLD postcards, or search the State Department of Assessments and Taxation for home sale data with bare-bones information -- you can have an updated report emailed to you monthly if you like.

Enjoy! Colleen Barlow, Realtor, Phone: 301-717-1663

"Castle" on 5 Private Acres in Potomac, MD For Sale with Second Buildable Lot*

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Sat, 11 Oct 2008 13:30:15 -0500

I'm pleased to tell you about a new listing I'm offering for sale. It's a very unique home -- almost a castle really. The home was built by a man who owned a quarry, or so the tale is told. He hand-picked the stones, and had this 12,000 square foot castle with 5 fireplaces built for his lovely wife and their many children. He built gorgeous stone planters, patios and retaining walls all around the property. Stone walls line the streets along both entrances to the estate. (There's an entrance from Piney Meetinghouse Road and the main entrance on Piney Glen Lane.) There's a pool, guest house and tennis court on the estate. Perhaps the best feature of all is the second, flat, buildable lot which is almost through the subdivision process. Recently renovated, the property is offered at $3.35 Million. All offers will be considered.

If you'd like a castle of your own on 5 private acres in Potomac, with the potential to subdivide and build a second home (perhaps for one of your heirs?); I'd be happy to show you the estate at 12308 Piney Glen Lane in Potomac. Just give me a call at 301-717-1663 to arrange a time.

Best Wishes,

Colleen Barlow

Appealing your Home's Assessment Value to Reduce Your Property Taxes

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Fri, 18 Jul 2008 22:27:32 -0500

In an earlier blog entry, I offered to send anyone a Competitive Market Analysis of their home's value to help present their case when appealing their property's assessed value. Many people have taken me up on my offer, and I've been happy to help. Some were successful at requesting and getting a "Petition for Review" from the Maryland State Department of Assessments and Taxation and were able to reduce their homes' assessment values, and thereby reducing their the property taxes they owed.

Normally, you can only appeal your assessment value within 45 days of the date of assessment notice; however, there is a "Petition for Review" process whereby you can ask to have your case heard. It seems that lately, for the last several months or so, no one has been granted the opportunity to present their case. I wonder if this is a trend? Is it more difficult now to win the chance to appeal your assessment (which MD SDAT calls a "Petition for Review")? If you've tried and been denied, or if you've been successful at winning the opportunity to have your case reviewed; I'd love to hear from you.

The process to appeal your property's tax assessment value, and thereby possibly reduce your property taxes due can be found here on the Maryland State Departmen tof Assessments and Taxation website:

http://www.dat.state.md.us/sdatweb/appeal.html

If you'd like a Competitive Market Analysis of your home, please don't hestitate to send me an email or give me a call. I'm happy to help.

Warm regards,

Colleen Barlow, Realtor, Email: Colleen.Barlow@LongandFoster.com , Phone: 301-717-1663

Potomac and Montgomery County Real Estate Statistics Update

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Sat, 12 Jul 2008 14:21:40 -0500

Although in many areas of Potomac, MD, home prices have gone down recently, June was an incredibly busy month for our team. Many Buyers finallly decided to go ahead and "pull the trigger". Historically, June is a crazy busy month for Realtors, and I can attest that this year was true to that pattern for my team. I'm truly grateful for that. Potomac fared much better than the rest of the county (see below). Potomac's Total Sold Dollar Volume was up 5.09% in June of 2008 compared to June of 2007. Two additional properties were sold, and days on market actually went down one day! Best of all, Average Sold Price is up 1.90% from June of 2007. Here's the 20854 (Potomac) Zip Code June 2008 Statistics:

	2008	2007	% Change
Total Sold Dollar Volume:	$ 74,191,846	$ 70,600,351	5.09 %
Average Sold Price:	$ 1,124,119	$ 1,103,130	1.90 %
Median Sold Price:	$ 941,000	$ 903,450	4.16 %
Total Units Sold:	66	64	3.13 %
Average Days on Market:	73	74	- 1.35 %
Average List Price for Solds:	$ 1,200,644	$ 1,159,513	3.55 %
Avg Sale Price as a percentage of Avg List Price:	93.63 %	95.14 %

Montgomery County June 2008 Statistics

Unfortunately, the county as a whole didn't do as well as Potomac. Total Sales Dollar Volume in June of 2008 was down 23.3% from June of 2007. The average sold price was down 4.15%. Here's the June Montgomery County Statistics from our Regional MRIS MLS System:

	2008	2007	% Change
Total Sold Dollar Volume:	$ 509,590,076	$ 664,421,416	- 23.30 %
Average Sold Price:	$ 560,605	$ 584,878	- 4.15 %
Median Sold Price:	$ 445,000	$ 470,000	- 5.32 %
Total Units Sold:	909	1,136	- 19.98 %
Detach/Attach Average Sold:	$ 697,517 \| $ 381,977	$ 753,426 \| $ 420,945	- 7.42 % \| - 9.26 %
Average Days on Market:	87	69	26.09 %
Average List Price for Solds:	$ 600,373	$ 609,454	- 1.49 %
Avg Sale Price as a percentage of Avg List Price:	93.38 %	95.97 %

If you're thinking about buying and/or selling your home, please call me for a free competitive market analysis.

Enjoy the summer!

Colleen Barlow, Realtor, Phone : 301-717-1663, Email: Colleen.Barlow@LongandFoster.com

W.C. & A.N. Miller Reators, a Long & Foster Co., Potomac, MD 20854, Office phone: 301-299-6000

The Average Home Sale Price in Potomac, MD Increased 33.17% Since 04/2007

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Wed, 04 Jun 2008 14:02:58 -0500

The average home sale price in Potomac, MD's 20854 zip code in April of 2008 was $1,346,380. That's up 33.17% from April of 2007. With 47 homes sold in April of 2008, compared to 44 homes which were sold in April of 2007; this statistic doesn't exactly mean that everyone in Potomac can jump for joy, thinking that their home increased in value 33.17% since last year. However, this is certainly a positive sign that our local real estate market is coming around.

The chart below shows that latest statistics available from our regional MLS system (MRIS). Average days on market are down from 122 days in 2007 to 81 days in 2008. That's a huge relief for Sellers. Imagine trying to live your life and keep your home in "showcase condition" for 3 to 4 months straight! Not an easy thing to do.

The highest priced home sold in Potomac in April of 2008 was the home at 9212 Harrington Drive which sold for $10 Million. Clearly this sale alone skewed our statistics a bit, being so far above the average sale price; but this home also sold in just 53 days! That's much lower than most expected. The lowest priced home sold was a home on Harker Drive which sold for $$587,000 in only 6 days.

So the question on everyone's minds is this: has my home in Potomac increased in value or decreased in value? At this point in time, you really need to do this analysis on a neighborhood by neighborhood basis. For the most part, using the full year of 2007's statistics, most homes have increased in value at least 3 to 4% over the last year; but many have increased significantly more. Some areas have declined slightly. Location and condition are the chief drivers of a home's value in this market. Buyers expect homes to be "near perfect" and "nicely updated" or they want a real bargain. No surprises there. Still, it's reassuring that we are seeing multiple offers on great properties.

This past weekend I held open my beautiful listing at 1511 Allview Drive in Potomac. The Open House was swamped with 52 buyers coming through the home, and this number does not include neighbors who often come by to check-out their neighbor's home. Other agents reported the same -- the buyers are coming out in droves!

Let's hope that the worst is behind us now. With mortgage loans available at great rates, it's truly a great time to buy a home -- even if you need to sell your own home first.

	2008	2007	% Change
Total Sold Dollar Volume:	$ 63,279,860	$ 44,484,825	42.25 %
Average Sold Price:	$ 1,346,380	$ 1,011,019	33.17 %
Median Sold Price:	$ 998,000	$ 845,000	18.11 %
Total Units Sold:	47	44	6.82 %
Average Days on Market:	81	122	- 33.61 %
Average List Price for Solds:	$ 1,483,078	$ 1,072,798	38.24 %
Avg Sale Price as a percentage of Avg List Price:	90.78 %	94.24 %

If you are interested in statistics for home sales in your neighborhood, please don't hesitate to contact me at Colleen.Barlow@LongandFoster.com .

Enjoy! Colleen Barlow, Realtor, Phone: 301-717-1663

New Government Sponsored Website to Help Estimate Home Values

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Mon, 07 Apr 2008 22:31:03 -0500

The Office of Federal Housing Enterprise Oversight has a new feature on it's website which shows property valuation trends around the country. Although it's not as accurate as actually using our regional MLS statistical data for analyzing home values in our local area here in Montgomery County, Maryland; it's certainly interesting to view and "play" with the calculator they've posted. Check it out here...

http://www.ofheo.gov/hpi.aspx#

For a free competitive home market analysis, just send me an email at Colleen.Barlow@LongandFoster.com

Enjoy! Colleen Barlow, Realtor, W.C.&A.N. Miller Realtors, a Long & Foster Co., Potomac, MD 20854

Average Homes Sales Prices Have Increased Significantly in Many Areas of Montgomery County

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Mon, 07 Apr 2008 22:22:32 -0500

I've been helping people appeal their property tax values lately by giving them a Competitive Market Analysis of their homes' values. It's really surprising to almost everyone that home values have increased at double digit rates in many areas of Montgomery County. The numbers are somewhat difficult to interpret since homes sales volume has decreased significantly over the last year. Still, here's a sampling of how much the average home sales price increased or decreased in various zip codes locally between February 2007 and February 2008:

Zip Code Percent Increase in Ave. Home Sales Values 2/2007 to 2/2008

20854 (Potomac) 15.58%

20817 (Bethesda) 28.72%

20815 (Chevy Chase) 36.92%

20850 (Rockville) -4.56%

20874 (Gaithersburg) -7.82%

20832 (Olney) -7.59%

For information on your neighborhood, please don't hesitate to email me at Colleen.Barlow@LongandFoster.com

Enjoy! Colleen Barlow, Realtor, W.C.&A.N. Miller Realtors, a Long & Foster Co., Potomac, MD

Direct Phone: 301-717-1663 or Broker's Office Phone: 301-299-6000

Potomac, Maryland Real Estate Sales Statistics for the Past Week (ending 4/2/2008)

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Thu, 03 Apr 2008 21:46:20 -0500

As of today, April 3rd, 2008, we have a total of 230 homes for sale in Potomac, MD.

12 homes sold in Potomac in the last 7 days; and we have 75 homes "Under Contract" at this point in time.

As of the end of February 2008, homes are selling, on average, for 90.48% of their list price.

Compared to February 2007 when the average sales price in 20854 was $1,064,028; we've seen an increase in the average sales price which was $1,229,832 in February of 2008. That's a 15.58% increase in the average home price in Potomac over the last year. These are real numbers. I realize that the media keeps touting doom and gloom, but the statistics seem to indicate that Potomac is not a declining market, as much of the country is. For that, I'm grateful.

On the downside, however, in February of 2007 42 homes were sold in Potomac. In February of 2008, only 17 homes were sold. That's almost a 60% downturn in units sold.

The average number of days on market has gone from 112 in February of 2007 to 175 in February of 2008. Still, I'm seeing many homes sell in less than 60 days over the last few weeks. It seems like the Spring market is kicking-in. 6 of the 12 homes sold in the last 7 days were on the market for less than 10 days!

Certainly the Federal Reserve Chairman Bernanke's words yesterday were difficult to hear. His belief that we might be slipping in to a recession, was discouraging; but he said that we could expect things to get better in the third quarter of this year. We seem fortunate to live in Potomac where the real estate market is not what we all wish it was, but we are so much more fortunate than much of the country. For that I give thanks.

Best wishes, Colleen Barlow, Realtor, W.C.&A.N. Miller Realtors, a Long & Foster Co, Potomac, MD 20854 Phone: 301-717-1663

A Recession in 2008 Seems Unlikely in the United States

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Tue, 11 Mar 2008 22:40:20 -0500

I'm thrilled by the Anderson Forecast's (out of the University of California at Los Angeles) conclusion this week that it's unlikely that the United States will slip into a recession in 2008. Thank heaven! Is anyone else relieved to hear some positive news about our economy?

The stock rally today, following the Fed's announcement that they would pump $200 BILLION into the ailing mortgage back securities market; was more positive economic news.

Between these positive news items, and the crocuses blooming in my garden this week; I'm positive ecstatic!

Enjoy!

Colleen Barlow

Appeal your Property Tax Assessment and Save Money

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Mon, 10 Mar 2008 23:38:19 -0500

Although I make my living buying & selling homes, I consider giving back to the community to be a very important aspect of my life. Since so many homes are now selling for less than their assessed value here in Potomac and all of Montgomery County, Maryland; many homeowners are choosing to appeal their property tax assessments. The process is not difficult. One of the key components of the tax assessment appeal process is that the homeowner needs to attempt to "prove" to market value of the home is less than the current assessed value. This is where I come in. If you're in this situation, and would like a free Competitive Market Analysis for your home to help you with this process; pleaase don't hesitate to contact me. It only takes me a few minutes to provide this service, and it might just save you significant money.

For more information on the tax assessment appeal process please click on this link to the State of Maryland's Department of Assessments and Taxation Website:

http://www.dat.state.md.us/sdatweb/hog.html

For a Competitive Market Analysis of your home, please email me at Colleen.Barlow@LongandFoster.com . In most cases, I can email it back to you with a day or so.

Enjoy!

Colleen Barlow

W.C. & A.N. Miller Realtors, a Long & Foster Co., 10200 River Road, Potomac, MD 20854 (301) 299-6000

Reduce your Property Taxes in Montgomery County, Maryland - Homestead Credit

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Sat, 08 Mar 2008 16:42:08 -0600

Just in case you're overwhelmed by the plethora of incoming news, I want to be certain that everyone knows this:

If you live in Montgomery County, MD you get a fairly big discount or credit on your property taxes if you claim the home you live in as your residence or "homestead". Up until recently, the state property taxing authority's way of determining who should get this credit just wasn't working. As a result, the state of Maryland decided that EVERYONE who lives in Maryland will need to file a one-time "Homestead Tax Credit Application."

Here's a link to the state's website with all of the information you need to be sure that you get this tax credit:

http://www.dat.state.md.us/sdatweb/homestead_app.htm

Enjoy!

Colleen Barlow

www.ColleenBarlow.net

Should a home sell for more or less than the Tax Assessment value?

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Sat, 08 Mar 2008 16:30:41 -0600

I'm pondering and researching tax assessment values vs. sale prices of homes recently sold in Potomac today.

I've got a beautiful home listed at $789K*. It's 2008 tax assessment value is $871K. It's been on the market about 27 days now. We've had LOTS of showings, and I expect that it will be under contract any day now. However, we had one "low-ball" offer of $699K. When I asked the agent why her client could possibly have thought that they would sell this home for so low, his answer was, "because of the assessment value". Naturally, I countered with, "but it's assessment value is $871K?" He didn't seem to care, as he believed that home should sell for well below assessment value. Although this was a ridiculous offer, it did spark my interest, so I thought I'd dig through recent Potomac home sales to see what the relationship between assessment values and sales prices was.

The home right next door to my listing was on the market for 105 days before it went under contract about a week ago with a final asking price of $739K*. Rumor is that they got just slightly below the asking price. This home's assessed value in 2008 is $775K - almost $100K below my listing next door. My listing has a larger, beautifully landscaped backyard, a larger garage, more than 1000 square feet of living space (per the tax record), and features tastefully updated baths and a renovated kitchen with a huge addition. This explains the huge delta in assessment values between the two homes. If you assume that they got around $730K, this home sold for $45K less than the 2008 assessed value or about 6% less than assessed value.

A third home in the same neighborhood sold in the beginning of this year for $735K with a 2008 assessed value of $771K. That's a sales price about 5% less than it's assessed value. I hope the new owners will appeal their tax assessment to get the reduced rate.

Yet a home on Democracy recently sold for $750K with a 2008 tax assessment value of $631K. It sold for $119K OVER the assessed value or about 20% OVER the assessed value.

A home just sold on Cherbourg for $815K. That's 11% over it's assessed value of $737K. Interesting.

So, it seems that here in Potomac, assessed values have little relationship to the market value of a home. From this small sample, we've got a spread from 6% under assessed value to 11% over assessed value.

I've had several friends ask me to do Competitive Market Analyses for their homes recently. They are going to ask the tax assessor to reduce their assessments, and thereby hope to significantly reduce the amount of property taxes they will need to pay. Please feel free to contact me if you'd like me to do the same for you. Maybe I can save you some money?

Warm regards,

Colleen Barlow

www.ColleenBarlow.net

*Names and figures in this paragraphs have been altered to protect the privacy of certain buyers & sellers.

New Loan Limit for Both FHA & Fannie/Freddie is $729,750 in Montgomery County, MD

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Sat, 08 Mar 2008 13:46:02 -0600

The Federal Housing Authority (FHA), Fannie Mae (FNMA) and Freddie Mac (Federal Home Loan Mortgage Corporation - FHLMC) have set a new loan limit for Montgomery County, Maryland of $729,750. This came about as part of the Economic Stimulus Package of 2008.

So what does this mean to you? If you're looking to buy a home and you want a loan for $729,750 or less to purchase that home; you're going to get a better deal than you would have up until now. Lenders offer "conforming" and "non-conforming" loans. Conforming loans are easier to sell in the Secondary Mortgage Market than non-conforming loans. That's why conforming loans offer lower interest rates than non-conforming loans. Also, if you're looking to refinance your current conforming mortgage (maybe you've got an ARM that's about to come due?); this new limit should help you, too.

Freddie Mac (FHLMC) and Fannie Mae (FNMA) are the big players in the Secondary Mortgage Market. What they do is they buy loans from lenders and then "package" them into "pools" of mortgages. They sell these "pools" as securities on Wall Street. Think of it like this (a simplified example):

You know that most people pay their mortgages on time, since their home is really important to them. If you loaned a new homeowner your own money in the form of a "mortgage" loan; you could get about 6% interest income on your money. Not only that, your investment is pretty secure and safe; considering that people usually pay their mortgage on time AND homes generally don't go down in value significantly over time. Your interest is "secured" by a lien on the home, AND the new homeowner put 20% down so the value of the home would need to go down 20% for you not to be able to collect your money, should they default on the loan. Seems like a great deal, right?

So why don't more people do that?

The Secondary Mortgage Market does just that, but takes it one step further. They pool together mortgage loans in packages, and sell them as securities on Wall Street. You could invest in one of these relatively low risk "Mortgage-Backed Securities" or MBSs and you'd think you could expect somewhere near the 6% the homeowners are paying minus some fees for the Secondary Mortgage Market player's efforts. In all actuality, the returns on MSBs are not that high; and you like anything, you can get a better return on your investment by taking more risk by buying riskier stocks. However, MSBs are very popular; and many people have a chunk of their retirement monies invested in them. Insurance Companies often invest in MSBs.

What's going on with Mortgage-Backed Securities (MSBs) now? They are still popular, and pools of traditional 30-yr fixed loans with 80% Loan-to-Value rates are still decent and pretty low risk investments. However, since in many areas, home prices have dropped and many loans were made for more than 80% of the price of the home; many people have been defaulting on their mortgage loans. For example, if you bought a home for $100,000, and you took out a loan package totalling $95,000; your home would only have to drop $5,000 (5%) in market value and you would owe the lender more money for your home than it was worth. You might sell your home as a "Short Sale". You'd sell their home for less than 95% of what you bought it for, and then you ask the lender to accept less than the amount you owe them for the loan.

What happens when you can't sell your home at "Short Sale"? That's when the lender might foreclose on the loan. After a lot of legal process, the home is sold by the lender. The lender collects their expenses for the sale and hopes to re-coup most of the amount of principal that was due to them. Unfortunately, they usually do not actually re-coup the full amount owed to them; and the loan yield a loss to the lender.

Obviously, if you owned a MBS that consisted of these riskier types of loans; you might expect that in this market, the MBS is losing money. This is a very over-simplified explanation of our current mortgage crisis. There are many other factors involved in the mortgage crisis, such as ARM loans which are coming due and a whole world of factors which even the "experts" don't understand. However, please don't let the media make you think that the sky is falling. According to the Mortgage Bankers Association, "the delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 5.82 percent of all loans outstanding in the fourth quarter of 2007." The fact is, most Americans still pay their mortgages on time. Most of us are NOT in default on our mortgages.

Good home loans are still available, and interest rates on these loans are still hovering around 6% --- historically a very good rate!

For more information or to discuss, please post your comments below or visit the websites listed below. As always, feel free to email me at Colleen.Barlow@LongandFoster.com

Colleen Barlow's Potomac, MD Real Estate Website: http://www.ColleenBarlow.net

Mortgage Bankers Association: http://www.mbaa.org/

FHA: http://www.fha.gov

Fannie Mae: http://www.fanniemae.com/

Freddie Mac: http://www.freddiemac.com/

Lots of LOOKERS out there the past couple of weeks in Potomac and Bethesda

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Mon, 11 Feb 2008 23:50:59 -0600

It's amazing how many people (i.e. potential buyers) are out looking at homes now (2/11/2008). This past weekend, I went to show one of my new listings at 802 Twin Oaks Drive in Potomac to a couple who called me from an internet ad. When I got to the home, there were 2 agents in the home already with their groups of buyers. My couple came, and then another agent came with his buyers. It was like a party -- there were 16 people there seeing the home at the same time. When I tried to leave, more people came. The home for sale next door was open (it was Sunday). People naturally tried my home next door to see if they could see that, too, since they were there. My clients did not want me to hold their home open to the public, but since there were so many people already coming through, and they were out of town, I went ahead and stayed there for a couple more hours. I had over 40 people come see a home that wasn't even advertised as being open.

Let's hope that this means that buyers are going to start buying homes again in significant numbers. This particular home is priced well ($799,000) and looks great. It's my hope that it will be under contract within a couple of weeks. In this market, or at least over the last couple of months, it's been the case that a home has to really sparkle AND be priced well to sell. Maybe we're headed back to a more balanced real estate market here in Potomac.

Best wishes,

Colleen Barlow

The Average Home Sale Price in Potomac Maryland Increased 3.49% in 2007!

Colleen Barlow (W.C. & A.N. Miller Realtors, a Long & Foster Co.) — Sun, 03 Feb 2008 22:16:03 -0600

Per the MRIS MLS (our regional MLS system), the average sales price of homes in Potomac, Maryland increased 3.49% from December 2006 to December 2007. The media certainly is not focusing on this positive aspect of our local real estate scene. With interest rates so low, it's truly a great time to buy a new home; but it's this is also good news for Sellers.