Some Thoughts on a Growing Economy Before I mention the economy, let me start with a personal story. My family, Mom and Dad, at first, started in a one bedroom apartment close to their childhood homes. It did not take long and my brother was born. It was time to start looking for a bigger place. At the time, Dad did not believe in buying unless he had the money and, indeed, my parents had saved enough to purchase a new 3 bedroom rowhouse. Soon after moving in to their new place my sister was born. Things were looking nice for my spoiled older siblings as they each had their own rooms, but then sister number two came along so move over big sis; this is my room too. A short while later I came, got kicked out of the crib, and moved in with my big brother. It was a double bed for two kids b... 10/12/2009

Rental Payment Incentive You might call it positive reinforcement versus negative reinforcement. In a typical lease, the tenant may be required to pay the rent by the first of the month.  If they are more than five days late, then a penalty may be added.  For example, the rent is $1,000 per month due by the first of every month in advance.  If they are late, then they pay a 5% penalty or a total of $1,050. Although one would think that a renter would want to avoid the penalty and hence pay their rent on time, it is all too frequent that the renter will get into a rut and consistently pay their rent late. Unfortunately, many landlords are not professional rental managers or are willing to either accept the continual late payments or to not even add the penalty to the rent.  If they other... 09/21/2009

My Sign?!   They are just signs.  I use them to direct buyers to my listings or open houses.  I use them in front of my listings to get the word out to all of the people passing by.   They are just signs, but I have so much trouble with them.   I have an Open House and I strategically place the signs, with colorful balloons, to lead into my listing and then I wait for the flood of potential buyers . . .  and I wait, and I wait, and no one shows.  When I eventually close down for the day and go to retrieve my signs, I find that they are not there, or, at least, the ones that are on the main route.  No wonder no one came.  Who took my signs?   Perhaps it was an agent who was just starting out and had no signs of his own.  I am glad to help. Maybe it is the neighbor who lives at the corner... 08/18/2009

How do I get there? My client wants to see a listing.  I know generally where it is, but look at the directions on the listing to find the specifics. What do I find? The directions indicate to use MapQuest. The directions take me down a one way street in the wrong direction. The directions take me all the way across town from the agent's office to the property. The directions are so messed up that they must be for another property. The map shows that the property is located in the Bay; good thing I didn't use a map search to find potential properties for my buyer. Have you been to the house yourself? How do you provide directions for your listings?  Do you lead people through the crime-ridden part of town or past the run down houses or do you actually give it some thought?  You are tryi... 08/10/2009

96% or 4% To which group does your Seller belong? Let us assume, based on data that I have seen, that 30% of Homeowners own their homes free and clear, or that they have no mortgages or liens against their homes. Second, of those remaining 70% of Homeowners who have mortgages, 94% of them are not  behind on their payments or in danger of foreclosure or the like.  This is equivalent to 65.8% of all Homeowners. The combined total of the 30% of Homeowners, who own their homes without a mortgage, plus the 65.8% of Homeowners, who are not behind on their mortgages, equals a total of 95.8% of all Homeowners. Almost 96% of all Homeowners are not in danger of foreclosure and the remaining 4% are in danger. In the current realty market, nearly 50% of all sales are for distressed properties, or S... 07/28/2009

What Was the Real Price? A homeowner owes $250,000 on their house, but the market indicates that it is only worth $200,000. They need to sell, so they sell it short, or for $200,000. They are forgiven the $50,000 difference. Recap: They had a house and owed $250,000 on it; they now do not have a house and now owe nothing. Was the price $200,000 or $250,000? To the Buyer of this house it was worth $200,000, but to the Seller it was worth $250,000. When appraisers look at this house for future price comparisons, they look at the $200,000 sales price as the value. In a normal market, this house may be ignored as a comparable, because it was a distressed sale.  In today's market, 50% or more of the sales are distressed so they have become the norm. If 30% of homeowners own their homes free ... 07/20/2009

$8,000 Just for You. Fist time, second time, and maybe even third time home buyers may qualify for this freebie. That's right; $8,000 is waiting for you. No, we will not take you deep down into the dark dungeons of the publisher's clearing house for this $8,000. You do need to purchase a home before December 2009, but that may be the easy part. Mortgage interest rates are incredibly low, and we are not talking about those ridiculous sub prime loans that got so many people into trouble in recent years.  We are talking about legitimate fixed rate loans. . . . and home prices are at the lowest that we have seen in years, with many homes from which you can choose. Let's recap: Low Interest Rate Loans; Low Home Prices; Lots of Homes Available; and $8,000 Just for You Not only is this an incr... 06/27/2009

This is a synopsis of sales activity in the Nottingham Communities and neighborhoods. I am providing information on homes that have sold as well as Homes for sale. SOLD SINGLE FAMILY DETACHED HOMES There have been 13 sold. Average Sales Price was $256,485 Average Days on Market was 89 TOWNHOMES/ROWHOUSE There have been 18 sold. Average Sales Price was $223,561 Average Days on Market was 79 CONDOMINIUMS & Others There have been 3 sold. Average Sales Price was $170,300 Average Days on Market was 186 FOR SALE SINGLE FAMILY DETACHED HOMES There are 81 available. Average List Price is $329,980 Average Days on Market is 143 TOWNHOMES/ROWHOUSE There are 60 available. Average List Price is $230,212 Average Days on Market is 77 CONDOMINIUMS & Others There are 34 available. Average List Price is ... 06/09/2009

ANOTHER OAKHURST TOWN HOME SOLD IN PERRY HALL BY MICHAEL D. KLIJANOWICZ!  This one was SOLD WITHIN 30 DAYS!  If you own a townhome in Perry Hall and are ready to sell it, give Mike Klijanowicz a call! 23 HALLVIEW COURTNOTTINGHAM, MD 21236TOWN HOMES FOR SALE IN PERRY HALL, MARYLAND LISTED EXCLUSIVELY BY Michael D. Klijanowicz (Agent with Long and Foster Real Estate, Inc.)OFFERED AT $229,500 DESCRIPTION: BEST BUY IN OAKHURST! This 4 Bedroom Open Foyer townhome is ideally located at the end of the court & FEATURES: Brick Front,Large Eat-in kitchen w/bay window-New cabinets-Ceramic Tile floor-NEWER Appliances-&table space,NEWER Washer & Dryer,2 Custom Decks,Fully Fenced in Rear Yard,Master Bedroom w/Full Bath & his/her closets,2nd full bath is also on upper level,Fully Finished Basement,NO ... 06/05/2009

ATTENTION FIRST TIME HOME BUYERS IN NOTTINGHAM, MARYLAND ACT NOW AND GET UP TO $8000 BACK!!!!! If you are a Nottingham, Maryland First Time Home Buyer (or know someone else who will be), NOW IS A GREAT TIME TO BUY A HOME!  The enhanced first time home buyer tax credit stimulus makes it easier and more affordable than ever to buy your first home - through a tax credit of up to $8,000 in government incentives as a part of the economic stimulus plan that was just passed and enacted into law by Congress.  Couple that with Mortgage Rates at ALL-TIME LOWS, choices of existing home inventory at ALL-TIME HIGHS, sellers who are willing to accept significantly less than full price offers and are also willing to contribute toward your closing costs, NOW IS THE TIME TO BUY A HOME IN NOTTINGHAM, MAR... 03/21/2009

SELL THAT HOUSE: THE WORKSHOP  So you want to sell your house, but you have no idea as to how it is done.  ----How do I determine a reasonable price?  ----How do I evaluate the potential buyers?  Are they qualified?  Can they afford it?  ----What are the impacts of any given contingency in the contract?  ----What documentation is required for me to meet the law?  ----How should I stage my house?  Is painting or carpet necessary?  ----Can I just sell it in an "as is" condition?  ----How do I make my house accessible, without missing potential buyers?  ----How do I find buyers?  ----How do I evaluate real estate agents for listing my house?  What do they charge?  ---- . . . and your list of questions may go on and on.  At the "SELL THAT HOUSE: THE WORKSHOP" presentation you will find answ... 02/28/2009

Sell That House: We Buy Houses   We buy houses.  You have probably seen their signs or heard their advertisements on the radio.  Even in a difficult real estate market, they are spreading their message.  But, who are these people and how can they constantly be able to buy houses?  Where do they get the money?  What do they do with the houses?   Let's take a look.   First, they are investors and investors want to make money.  Since they have been around for awhile now, even in tough economic times, it is likely that their business model is working for them.  They are making money.   When they approach a homeowner who is considering selling his or her house, there will be certain things that are in their presentation.  Here is what you can expect:   We will pay cash; We will settle quickl... 02/15/2009

OPEN SUNDAY 2/15/09 2:00PM - 4:00PM 5310 MYERS ORCHARD WAYORCHARD CROSSINGMLS #BC6830282BALTIMORE COUNTY, MARYLANDPERRY HALL, MD (21128) OFFERED AT $449,900 DESCRIPTION: 4% COMMISSION FOR ACCEPTED OFFER BY 3/31/09!  TRUE LUXURY LIVING IN PERRY HALL, MARYLAND!  This Amazing Home Has Over 4000+ Finished Square Feet with over $65,000 in Upgrades and Many of today's most coveted Amenities:  Stone Front, Gourmet Kitchen with Granite Counters, a Huge Island with Breakfast Bar, Double Oven, 42" Cabinets, and even an extended area for extra table space too with a sliders to your rear yard.  It also has a 2 Story Family Room with an Upgraded Window Package with 6 Huge Custom Windows for plenty of natural light, an Office/Library on the main level, 9FT ceilings on the 1st and 2nd floors, Dual Zon... 02/07/2009

Buy That House: The Fix-up Loan  Have you been looking for a house for some time now, but you have not found the one that is just right for you?  It could be for any number of reasons that the houses that you are seeing do not meet your requirements. The layout is all wrong; The kitchen cabinets and counters are old and warped; The baths were in style back in 1945; You would be embarrassed to bring your friends and family to the place; The windows are of the old and energy wasting single pane variety; The furnace looks like the space capsule; The hardwood floors would be nice if they were sanded and buffed; The walls need to be painted after you scrub off years worth of cigarette deposits; The basement is dark, damp, and downright spooky; ... And, yes, unfortunately, the list can go on ... 01/29/2009

Buy That House: Renting versus Buying When you do your grocery shopping, do you compare apples with oranges, tomatoes with ketchup, ground beef with steak, or so on and so on?  Perhaps you do, but you recognize that there is a difference. When you look for a place to live, is it appropriate to compare renting to buying?  Yes, indeed, it is appropriate, but you must recognize the differences. Let us assume that the average home sells for $350,000 in a certain area, which depending upon the means of purchase, could mean several different possible monthly payments, but for the sake of discussion, let us say that it is $2,500 per month in a monthly mortgage payment, which would include principal, interest, taxes, and insurance. If in that same area the average rent is $1,000 per month, then... 01/25/2009

Buy That House: Supply and Demand Supply and Demand: We frequently hear this term, but what does it mean? Basically stated, the operation of supply and demand is what sets the prices in a market. In the real estate market when the supply of houses is higher than the demand from buyers for houses, then the price of houses will decline; this is considered a "Buyers Market".  When the supply of houses is lower than the demand from buyers for houses, then the price of houses will increase; this is considered a "Sellers Market". There are many factors which can affect this balance between supply and demand.  Some of the major factors include the following: Interest rates: the lower interest rates are the more affordable a home becomes, hence increasing the number of buyers; however, as the n... 01/25/2009

Buy That House: FSBO; The Seller's MotiveWhy does someone decide to sell their house on their own?  The number one reason, in the mind of the seller, is to net more money in the transaction.  Their belief is that if they do not have to pay a commission to a real estate agent, then they will have more money going onto their side of the ledger.Why does someone decide to buy from someone who is trying to sell their own house?  The number one reason, in the mind of the buyer, is that they will pay less for the transaction.  Their belief is that if there is no real estate commission to be paid, then there will be less money needed to complete the transaction.Notice that both the seller and the buyer think that they will be paying less money, which suggests that they will split the savings.  ... 01/25/2009

Buy That House: 15 versus 30 Year Mortgage Is it better to have debt for 15 years or for 30 years? Since, generally speaking, debt is not a good thing, it would be better to eliminate a particular debt sooner rather than later, or within 15 years instead of 30 years.  If a house is purchased for a certain amount and the choice is between a 15 year and a 30 year mortgage, then the total outlay to pay off the loan would be less by using the 15 year versus the 30 year.  Take a look at the example below: Loan Amount: $275,000; 5% Down Payment; Rate for a 15 year is typically lower than a 30 year. --------------15 Year at 5.625%-----30 Year at 6.125%---Equity Difference Pymt--------$2,265.27---------------$1,670.93------------ Balance: Year 1------$262,979----------------$271,701------------... 01/25/2009

Buy That House: Real Estate and the Normal Distribution Many things in nature, economics, and other areas have quantitative data which can be normally distributed.  If one were to graph this data, it would tend to look like a bell, whereby the majority of the data points would fall in the middle and fewer and fewer points would fall to the left or to the right of this central tendency the further the points were from this center.  Generally, this phenomenon is true in real estate.  If the sales price from a particular region for like homes sold in a relatively close period of time were plotted, then they would probably form a bell curve.  The central tendency would most likely correspond to the average of the sample, and the points which were to the left or right of the center would sti... 01/25/2009

Buy That House: Are You Getting a Good Deal?  3 years ago the real estate market was in very good condition. Prices were rising at extraordinary rates. Interest rates were low, so these properties were still affordable even at higher prices. Lots of people were selling and lots of people were buying.   Many people were skeptical about this boom in prices, referring to it as a bubble and asking when it would burst. Indeed, it did burst. Prices began to come down. While prices were coming down, many people were reluctant to believe that values were coming down as well. What used to be an appreciating product in most markets was now a depreciating product in most markets. Real estate was losing value almost at the rate that an automobile would lose value. The slow acknowledgement of this c... 01/25/2009