When all else fails.....

A tad bit crazy... but hey....! What do you think:

COURTESY: WZZM13.com

The housing market may be suffering right now but, one woman is using a creative twist to sell her home. She is planning to raffle off her condominium to a lucky winner. Angela Schaab is selling raffle tickets for a chance to own her condo in the Boardwalk complex in Grand Rapids.

She loved the condo, but moved out of state for job related reasons. So now she wants someone else to be able to enjoy it. Schaab explains, "With Michigan's job market and rate of foreclosures, I thought it would be a great way for someone to get into either a first home or to acquire a rental property."

Schaab plans to sell 2,500 raffle tickets for $100 each. Right now she is just taking reservations for the tickets. Once they have all been sold, she'll hold a live drawing. Whoever wins will own the condo free and clear.

Schaab is also planning to give at least ten percent of her profits to charity. You can take a look at pictures of the condo at http://sites.google.com/site/rafflemyboardwalkcondo/. This story has generated so much traffic that this website is often un-available.

Just Sold- 1 bedroom, 1 bath luxury condo- in Columbia Heights

There are not a lot of warehouse style loft buildings in DC for sale, but this is one of them. I just sold two units at the Lofts at Columbia Heights. The lofts were built 2 years ago, and are very tastefully done for new construction.

Both units were gorgeous 1 bedroom condos, a little over 730 square feet (big for a 1 bedroom condo in DC). They both have tons of light from the huge windows spanning across one side of the condo. They feature walk-in closets, an open floor plan, maple cabinets and ceramic tile in the bathroom.

The pet-friendly building has an awesome roof deck, with beautiful views of DC, fitness room and a serviced front desk. I had to mention that there is a dunkin' donuts right outside the building. (Good thing I don't live there!) It is a short walk to the metro, Target, Best Buy, all the awesome new restaurants, coffee shops and other retail in the Columbia Heights area.

Sold for 299,000 with no down payment and the seller paying all closing costs! Gotta love it :)

An excerpt from my buyer's email:

So I've decided I don't want the condo anymore....

Just kidding: I love it!! Thank you so much for all your hard work (as well as the great gift, which has come in quite handy so far)! I want you to know that I really appreciate it.
Thanks again for everything (I'm still in blissful disbelief).

Beltway 'take-out' and 'take-overs'.

So, with the federal bailout of Fannie and Freddie, I found it a little disturbing when I came across this article in the Washington Post.

Also with reluctance, Senators (last week) voted to privatize their restaurant and food services.

Year after year, decade upon decade, the U.S. Senate's network of restaurants has lost staggering amounts of money -- more than $18 million since 1993, according to one report, and an estimated $2 million this year alone, according to another.

The financial condition of the world's most exclusive dining hall and its affiliated Capitol Hill restaurants, cafeterias and coffee shops has become so dire that, without a $250,000 subsidy from taxpayers, the Senate won't make payroll next month. The embarrassment of the Senate food service struggling like some neighborhood pizza joint has quietly sparked change previously unthinkable for Democrats.

Last month, in a late-night voice vote, the Senate agreed to privatize the operation of its food service, a decision that would, for the first time, put it under the control of a contractor and all but guarantee lower wages and benefits for the outfit's new hires.

You can read the rest of the article on: http://www.washingtonpost.com/wp-dyn/content/article/2008/06/08/AR2008060801765_2.html?hpid=topnews

Uncle Sam 'babysitting' Fannie and Freddie!

Yesterday was a whirlwind day in the mortgage industry. I spent some time analyzing reports on the government takeover of Fannie Mae and Freddie Mac.

I’m sure the first question many of you are asking is, “Who are Fannie and Freddie anyway?”

Fannie Mae is the ‘nickname’ for the Federal National Mortgage Association and Freddie Mac is the Federal Home Mortgage Corporation. Both organizations were created after the Great Depression in an attempt to help bolster the housing industry at the time. Both were “government-sponsored” enterprises, but they were both privately owned and run.

These two entities are absolutely critical to the mortgage industry. Although they do not actually lend money, they buy mortgages from banks and institutions that originate loans and repackage them as bonds OR keep them on their own books. As of 2008, they own or guarantee about 50% of the entire 12 trillion dollar US mortgage market.

What does the government takeover mean on the MACRO-level?
Our national debt ceiling will increate US$800 billion, to a total of US$10.7 Trillion in anticipation of the potential need for the Treasury to have the flexibility to support the federal home loan banks.

The bottom line is that US taxpayers are now on the hook to pay the billions of dollars of losses these two companies have incurred by purchasing bad mortgage loans from other banks.

And on the MICRO-level?
This move has provided some much-needed reassurance to mortgage companies and investors that their investments will hold value. Already this morning, most lenders decreased their mortgage rates by approximately 3/8%, saving people applying for mortgages thousands of dollars over the life of their loans. Existing homeowners could benefit as well, as lower rates would permit troubled homeowners to refinance into less costly mortgages. Presumably, this may stimulate increased buying activity in the housing market and may help reverse the decline in home values.

I was talking to a loan officer yesterday morning, who told me that 30 year fixed rates have been hovering at 6.25% for quite some time. This morning they are at 5.75%. A half point drop in one day is BIG. On a $300k loan that translates into $125 less per month.

The downside is that many credit and lending guidelines will be tightened even more than we have seen this past year. Mortgage underwriters will be CRAZIER than ever.

Hopefully all of this will translate into solid lending guidelines that don’t change week to week or even day to day. The uncertainties in the mortgage approval process in the recent months has been a nightmare so it will nice to see a return to stability and “normalcy.”

Finally got started.....

Fall brings new things every year, and this year- one of my 'new things' is getting started on this blog. 

It has been one crazy summer in DC's real estate market. Who would have ever thunk:

1. There would be more than 10 ACTIVE listings in Dupont Circle under 300K. (There is a lot more ACTIVE inventory in DC than there has been in the last five years)

2. There would be more distressed sales, than 'regular' sales in DC. (There are tons more short-sales and foreclosure listings than we have ever seen)

3. Builder's are offering more than the complimentary flat-screen TV (or PRIUS)- and you are now seeing some builders who are willing to negotiate price and concessions.

4. Financing guidelines would be changing every waking second. (100% financing is ALMOST gone, and the underwriting guidelines are getting more stringent every day)

  

The wonderful thing about this summer was that it was still wonderfully busy.  And in my business, busy is good. One of the things that I noticed was that this year brought a different 'breed' of buyer clients. Most of my new clients this year were strong 'numbers' people who were very focused on taking advantage of the market to find a really good deal. A lot of them had been timing the market, they wanted to get into real estate when interest rates are low, and prices are at their low end. Right now is that time!

I can't wait to share my real estate adventures with you.

I love a good bargain, and I love numbers- so I am loving this market!