Happy homeowner and their happier dog :)

Occasionally, when dealing with the first time homebuyer programs that are administered by the government or a non-profit, the process can be 'a tad bit' aggravating. However, most of the time, these are the best financing deals in town. As an agent, I have learned to keep things in perspective, remember the eventual goal, and keep calm when working on a transaction that involves these programs. And I love that my clients remembered to 'Keep Calm, and Carry On.

Here is a lovely referral from my clients- TL and ND.

When my partner and I met Atieno, I was just starting to warm up to the idea of purchasing a home—it seemed like such a big responsibility. And, we had some serious hurdles to jump: our liquid assets were minimal after paying off debts; we didn't want a lot of out-of-pocket expenses at closing to ensure we had a buffer should something go wrong; we had a price range that was a squeeze considering our very specific needs including a central location in the DuPont/Logan/U St area; my partner's wants were very different than mine, if not contradictory; and, we were scared to leave our home and neighborhood in the West End after four years of residence.

These were just some of our many concerns. Ati took on us and all of our challenges—I would be the first to say how scary it must have been. She dedicated the time up-front to learn about all of our needs and wants. As a result, the first condo on our second day out, she hit the nail on the head. She found a place on which my partner and I somehow both agreed, which lived up to our picky expectations. And, it had several bonuses: a wood burning fireplace, a courtyard, a private back patio, and an extra 250 sq ft.

When the real problems cropped up with financing(we were looking to get a complicated loan in the midst of the largest financial crisis of our lives), my partner and I were tense and frustrated trying to keep things moving along—trying to manage tight deadlines, our landlord, work responsibilities, and a week-long trip out of the country. Ati worked through our many complications and even our own meltdowns as we tried to figure it all out. It wasn't long before she kept repeating the somewhat unknown motto of King George VI during World War II, "keep calm and carry on". She lightened things up in the midst of drama, maintaining her wits, humor and calm while providing an ear to listen and words of wisdom.

In the end, it all worked out near seamlessly. The seller paid our closing costs. Through the DC Bond program Ati suggested, we were able to obtain a down payment. We kept our cash in hand. Now, just two short months from where this all started, we have settled into our gorgeous new condo in Logan. We have already begun to make it our own. Our Chihuahua puppy is enjoying the courtyard. We are looking forward to utilizing the fireplace throughout the winter and the private patio in the summer. The neighbors are friendly and welcoming. We couldn't be happier!

We have Ati to thank for changing our lives for the better. She not only walked us through the seemingly impossible process, she nudged us when we had trouble making decisions. She listened to our concerns. She made sure we were always comfortable. And, most importantly, she got us a home and investment for our future. I am pleased to consider Ati not only my agent and real estate mentor, but my friend.

How to raise your credit score

The folks at Money Magazine put together this great article on credit scores. Check it out:

To borrow as cheaply as possible, it helps to nudge your score from good to fabulous. Hoisting your number from 650 to 770 can save $3,100 a year on a 30-year, $300,000 mortgage.

Here's how your score is sliced and diced - and how to kick it up a notch. Remember: The bigger the slice, the more it affects your score.

• 35% Your payment history Pay your bills on time. Automating payments online can help.
• 30% How much you owe Keep balances on credit cards and other revolving accounts below 50% of your credit limit (lower is better).
• 15% Length of your credit history Rather than let old cards go dormant, charge a latte a month (then pay it off). No activity lowers your score.
• 10% Your new credit Don't open unnecessary new accounts. And if you're rate shopping for a mortgage or an auto loan, do it within two weeks; multiple requests could ding your score.
• 10% Your mix of loans You can't do much to change this (except get a credit card if you don't have one).
• Bonus Request a free copy from each of the three major credit-reporting agencies at annualcreditreport.com. Then tell them about any mistakes you find that are not in your favor.

Showing Instructions

Every so often there is something really funny on the Multiple Listing Service (MLS). Most of the time it is a really poorly worded, or the spelling is atrocious. For some reason, folks CANNOT spell the word STRICTLY. (always misspelled STRICKLY/STRICLY!) Sometimes the person just plain failed out of grammar school- like this posting that I borrowed from fellow realtor buddy's blog- James Downing:

REMARKS
General/Agent:
Very clean and shine condo for a piggy buyer, totally renovated and new appliance: stove, ground count, 2 sinks, dishwasher, microwave , wall to wall paint and fresh, molding, 2 bedrooms, new a/c school and bus stop cross the street, and more. Show and sale

Today, I saw yet another 'strange but funny' entry in the agent's remarks on an MLS listing:

REMARKS
General/Agent:
There are 2 small dogs-1 in kennel, 1 roaming free. Free 1 is "Jack." When you enter the condo, acknowledge Jack by saying his name and act like you know him. Take a milk bone from the box on your right as you enter, drop it on the floor and say, "Good boy Jack." He will follow you around. Don't pet him, just ignore him after that or say, "you're a good boy, Jack." Ignore the one in the kennel.

That's it.... no details on the condo listed.

Hmmmmmm..... I wonder if Jack's for sale.

Just Sold! LARGE 1 BEDROOM IN LOGAN CIRCLE for 383,900.

This gorgeous immaculate 800 SF 1 BR condo in located one block from Logan Circle. The boutique building- DownTown 1 & 11 is in the heart of the city, and has low condo fees of $152 monthly, a lovely courtyard, and it is a pet friendly building.

The condo features crown molding, a renovated kitchen with granite counters, a wood burning fireplace, washer/dryer, hardwood floors, Closet and storage space galore and high ceilings. And added bonus is the private terrace- perfect for grilling and sangria. You are right in heart of the city and can walk to shops/metro/restaurants. Zipcar has a spot right behind the building.

Sold for $383,900 with the seller paying $18,900 in concessions.

When $1 costs you $1400 dollars

I spent last week Friday morning tying lose ends on a contract that I was negotiating for a buyer client. After going back and forth all week, I thought we had come to some kind of agreement when I got a call from the listing agent. Turns out, the seller would not move on the price on his last counter-offer. He was stuck at $400,000. The last offer that we had sent was for $399,999- and we were 1 dollar away from an agreed upon price. The seller (and agent) was insisting on this price OUT OF PRINCIPLE (His words, not mine), and was willing to walk away if we did not pay the extra dollar.

Needless to say, I was a little blown away. Actually, I was A LOT blown away. I just could not imagine that in a week where the Dow Jones had dropped by 700 points in one day, a 'motivated' seller (he was being relocated), would 'walk away' over ONE DOLLAR!

Eventually, I had to spend some time explaining to the listing agent (and eventually the seller) why we had insisted on $399,999 price tag. Because in reality it would cost both the seller and the buyer more money if we agreed on a $400,000 price tag. The property is located in DC, and so at closing, the purchaser would be paying the recordation tax, and the seller would pay transfer taxes. (This can always be negotiated differently, and there are certain exemptions- but that is an altogether different blog entry). DC government has set that number to 1.1% for each, if the sales price is less than $400,000. That number changes to 1.45% if the sales price is at $400,000 or more. Therefore, that $1 difference could actually cost the seller and the buyer an additional $1,400 each!

$1,400 buys plenty of shoes!

Another happy homeowner :)

I love going to closing. But even more than that- I love it when I talk to my clients a week/month/year later- and they are still basking in their home buying experience- and loving their new home. It gives me the most fulfillment in my work.

Here is a nice testimonial I just got:

More than two years ago, we took your excellent workshop for First-time homebuyers. The market was a bit different then and my husband and I weren't quite ready to get out there just yet. But because that class was so thorough and informative, we knew when it was time to buy our first home, you would be our realtor and I can say having just bought our house in Petworth, we are so glad we did. I honestly cannot imagine anyone else as our realtor. Right from the beginning, you listened to the things we were looking for, and even helped us figure out some of what we didn't really know. You quickly narrowed the property search so that we were looking at the right kinds of properties, and answered all my dozens and dozens of questions patiently and with a sense of humor. I can actually say that it was FUN to look for a house with you. Your knowledge, experience and confidence put us at ease, and got us through all the various steps with few surprises. We love the new place and have tons of ideas to improve it and make it our own, and we could never have done it without you! Thanks.
LS and DZ.

So .... are they REALLY giving me $7500 in free money?

Buried in the recently enacted federal housing legislation- 2008 American Housing Rescue and Foreclosure Act- is a First Time home buyer 'tax credit' for up to $7500. The credit is only available for purchases made between April 9, 2008 and July 1, 2009.

There are a few limitations to receiving this 'credit':
• It is limited to first time homebuyers
• There are income limits: $75,000 for single purchasers, $150,000 for couples. (The amount starts being reduced if you make over $75,000 and phases out at $95,000 for singles, and $170,000 for couples)
• The credit is not issued as a check. It is an itemized deduction on your federal tax returns.

• It is for 10% of your purchase price up to $7500.

One thing that needs to be made clear however, is this 'tax credit' has to be paid back over the next 15 years or if you sell your home. The credit works more like an interest-free loan. Two years after you have claimed this credit, you will have to start paying it back.

There is a lot of buzz –both positive and negative about this 'credit'. My take- despite having to pay back the credit, I would be VERY HAPPY to take a 0% interest loan of $7500 from Uncle Sam. Even if I invested it in a 'safe vehicle' at a compounding 5% interest every year, I would make about $4,343.30 in real dollars (adjusted for inflation and taxes)– and $4,343.30 would buy a heck of a lot of shoes!

DISCLAIMER: I am NOT an accountant- and I don't play one on TV. To find out how this tax credit would affect your particular situation, please talk to your accountant. I would be happy to refer one to you.

Home Buyer Commandments- Thou shalt leverage the market!

Every time I get a call from a new client or a referral from a friend, I typically like to meet with them one on one in order to get a better idea of what they are looking for. During our first meeting, I learn about their expectations and get to know their "want" vs."need" list when it comes to what they're looking for in their new house. I also discuss what they need to do to prepare for the home buying process. Sometimes we start house-hunting immediately, sometimes they need to do a little more prep-work (getting financing in order etc) before we can look at places.

The 'Want Vs. Need' process is typically very interesting. Here is an example:

One client I met with recently said:

OK... I would like to spend less than 300K on a place. I don't have a lot of cash, so my preference would be that the seller pays for my closing costs. I would like the place to be in Northwest DC. I would prefer a condo with fees less than 300 dollars per month. It would be nice to have a full-service building with a doorman, and some amenities (but the condo fees have to be low!) I have to be able to walk to metro. Oh.... and it would be nice if the condo was GREEN!

We were eventually able to score a place with everything on her list- a darling condo in Logan Circle at the Alta (which is a green building)- and the seller paid for her closing costs and contributed towards her down payment. For a nice sum of 254K. If you had asked me if there would have been a place that met the above price/concession/location/terms and features criteria a year ago- I am not sure it would have been possible.

However, this is a unique market in that there is a huge inventory of houses and condos for sale. You have the luxury of choice. If your 'dream place' does not work out the first time, there will be another 'dream place'. Leverage the fact that there is tons of inventory. Start attending Open Houses to get a better idea of what is important to you. Alternatively, arrange to do a 'house tour marathon' with me, to get a better definition of what that criteria will be. It is a BUYER'S MARKET. You have choices, and you can drive a hard bargain.

If you would like to schedule a 'no-pressure, get prepared, get educated' consultation meeting with me- please e-mail me on ati@districthomebuzz.com