Issuu on Google+

Check out www.GCAAR.com for our latest updates!

Capital Area Realtor

®

The official newsletter of the Greater Capital Area Association of REALTORS®

November - December 2011

Inside This Issue Association News..............................page 3

USPS: 017-467

Volume 17, Number 6

Bonnie Casper Installed as 2012 GCAAR President The Fillmore concert hall in Silver Spring may be the hottest new venue for live music in the DC area, but on December 6, it was the place to be as Bonnie Casper was installed as the 2012 GCAAR President.

GCAAR in the News...........................page 3 NAR Director’s Report.......................page 5 The CE Shop.....................................page 5 Women’s Council of REALTORS® ������page 7

Guests filled the hip new concert space which is modeled after the original Fillmore in San Francisco and features an intimate but open floor plan that provided the ideal backdrop for the installation.

Committee Spotlight.........................page 7 Past President’s Luncheon ���������������page 7 FHA Loan Limits................................page 8 Event Committee Happy Hour �����������page 8 Technology.......................................page 9 MC Market Report..........................page 10

www.gcaar.com

Bonnie being sworn in by Montgomery County Executive Isiah “Ike” Leggett

Public Policy...................................page 14 Green Resources.............................page 16 GCAAR Book Club...........................page 16

Awards were given to the 2011 Affiliate of the Year Debbie Benkert, Rookie of the Year Pam Wye, and REALTOR® of the Year Brenda Small. Guests included Maryland Association of REALTORS® (MAR) President Pat Terrill, MAR CEO Mary Antoun, and a host of other special guests. continued on page 3

GRI 300 Series Graduates...............page 17 Thank You Receptions.....................page 17 2011 NAR Conference.....................page 17 GCAAR Cares Year in Review �����������page 18

Marquee at the Fillmore

2011 Top Philanthropists............... page 20 Legal Hotline..................................page 21 Quiz............................................... page 22

2012 GCAAR Board

L-R, Maryland Comptroller Peter Franchot, 2012 President Bonnie Casper, Montgomery County Executive Isiah “Ike” Leggett

Greater Capital Area Association of REALTORS® 8757 Georgia Avenue, Suite 600 Silver Spring, MD 20910

GCAAR Names Debbie Benkert as its 2011 Affiliate of the Year GCAAR is pleased to announce Debbie Benkert as its 2011 Affiliate of the Year. This award is presented annually in recognition of local, state and national REALTOR® association involvement, community service, and sponsorship of education and other programs for REALTORS®. Debbie has been a mortgage banker for 27 years and a Home Mortgage Consultant with Wells Fargo Home Mortgage since September 2011. A member of the GCAAR Public Policy committee for the past five years, she was the Vice Chair of the Committee in

2010. She has been a presenter at GCAAR seminars on topics involving appraisal and banking regulations, and a supporter of REALTOR® Fest, the Rookie Committee, and RPAC. “Debbie’s knowledge of the mortgage business continues to be an asset to GCAAR,” says 2011 GCAAR President Adrian Hunnings. “We value her expertise as a resource to our members.” Debbie was raised in Montgomery County, MD and attended Rockville High School and the University of Maryland College Park. She lives in Rockville with her husband Paul and their two children Paul and Shelby. In her spare time, she enjoys jogging, biking, and cooking.


2

2011 November - December

Serving the Business Needs of OUR Professionals

Capital Area REALTOR®

Why Top-Producing Real Estate Agents Register For NewHomeSource Professional NewHomeSource Professional is your one-stop-shop for all the information you need about new homes in the Capital area. In addition to the deepest and most accurate database of new homes, you will also have access to agent incentives, promotions, events and inventory homes. We give you the tools to help educate yourself within the new home arena — all so that you can provide your buyers with the best services available. 1

Get the inside track on the most current home builder incentives, promotions and events.

2

Access the most comprehensive database of new home-specific information in the Capital area.

3

Get information that you can’t get from MRIS: • Floor plans • Elevations and color renderings • Model home video tours • Community details • And much, much more!

4

Custom tools that will help you sell: • Send buyers personally branded brochures • Real-time access to your buyer’s favorites • Register your buyers with builders in one easy step

5

Look for your new home community map for the Capital area in your mailbox or delivered to your broker’s office.

Receive all of the benefits above: Register for FREE!

Sign up for a free NewHomeSource Professional account! Register online: www.NHSpro.com © 2011 Builders Digital Experience, Inc. All rights reserved.


Capital Area Realtor®

Serving the Business Needs of OUR Professionals

2011 November - December

A ssociation N ews 2011 Board of Directors President

Adrian Hunnings

Bonnie Casper Installed as 2012 GCAAR President, continued from page 1 Congratulations to the 2012 Board!

Officers:

President-Elect Bonnie R. Casper

Secretary

Silvia Rodriguez

Treasurer

William H. Highsmith Jr. , JD, GRI

Immediate Past President Shelly Murray

President Bonnie Casper President-Elect Michael McGreevy Immediate Past President Adrian Hunnings Secretary Greg Ford Treasurer William Highsmith, Jr.

Directors:

The stage is set

David Bediz Margaret “Peg” Mancuso Suzanne Des Marais Obiora “Bo” Menkiti Carter Ferrington Gerard “Gerry” Occhiuzzo Mynor Herrera Prabhjit Singh Ellen Katz Eleanor “Elley” Kott Emiliana Victoria “Vicky” Lobos-Kirker

Chief Executive Officer Michael Moran

Directors

Cuvator “Q” Armstrong Edward Downs Greg Ford Mynor Herrera Ellen Katz Fred Kendrick Eleanor “Elley” Kott Michael McGreevy Obiora “Bo” Menkiti Gerard “Gerry” Occhiuzzo Prabhjit Singh

Editor

Bobette Banks

Advertising Representative Arlene Braithwaite

Capital Area REALTOR® (USPS 017-467) is published six times a year by the Greater Capital Area Association of REALTORS®, 8757 Georgia Avenue, Suite 600, Silver Spring, MD 20910. Periodicals postage paid at Silver Spring, MD. Member subscriptions account for $10 of each member’s annual dues. Annual subscriptions are available to non-members for $25. Subscription inquiries may be sent to Capital Area REALTOR® at the above address. Copyright© 2011 by the Greater Capital Area Association of REALTORS®. All rights reserved. POSTMASTER: SEND ADDRESS CHANGES TO CAPITAL AREA REALTOR®, ATTN: GCAAR, 8757 Georgia Avenue, Suite 600, Silver Spring, MD 20910. The Greater Capital Area Association of REALTORS® makes no warranties and assumes no responsibility for the accuracy of the information contained herein. The opinions expressed herein do not necessary reflect the opinions of the officers, directors or staff of the Greater Capital Area Association of REALTORS®. The Greater Capital Area Association of REALTORS® accepts submissions of articles and photographs and remains the property of the Capital Area Association of REALTORS®. The publisher reserves the right of full editorial authority and to decline publication of any article not deemed proper. Deadline for all submissions, including cameraready advertising on disk or film, is the first of the month prior to publication. Reprint with permission only. Reprint permission may be obtained by contacting the Greater Capital Area Association of REALTORS® at 301.590.2000; via fax at 301.590.2248; or via e-mail at bbanks@gcaar.com. REALTOR® is a registered collective membership mark that identifies and may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its Code of Ethics.

Visit us on Facebook to see all of the installation photos. www.facebook.com/GCAAR2 Bonnie with husband Mark Winston and daughter Blair

GCAAR in the News People on the Move Washington Business Journal November 4, 2011 Rookie of the Year Pam Wye featured Mortgage Interest Deduction Hangs On, But for How Long? Washington Examiner October 6, 2011 “Doing away with the mortgage interest deduction could make the ‘backend arithmetic’ of mortgage financing tougher on many middleclass and first-time homeowners.” - Adrian Hunnings, 2011 GCAAR President Washington Putting Foreclosure Troubles in Rearview Mirror Washington Examiner October 6, 2011 “I am personally not seeing a lot of foreclosures on the market in Northwest D.C. When they do come up, they are still being swamped with multiple offers, often cash investors.” - Suzanne Des Marais, 2011 WDCAR President Tables Are Turning on Condos as a Smart Investment The Washington Post October 7, 2011 “Buyers realize they’re not going to buy a condo, live in it for three years and make $40,000 when they sell it. “ - Anslie Stokes Milligan, GCAAR member

“The age old mantra, ‘location, location, location’ holds true…places like Dupont never really fell.” - Dan Melman, GCAAR member Fairfax’s Wealthy Are Moving On Up – And Out The Washington Times October 9, 2011 Referring to those who moved to the far suburbs…”I don’t think it was ever their preference so much as that’s what they could get.” - Mynor Herrera, GCAAR member Living In: Washington, DC BBC Travel November 16, 2011 “Neighbourhoods with a bit of an edge are hot right now. “These are places with emerging local businesses and solid, older housing stock.” - Suzanne Des Marais, 2011 WDCAR President Thank You REALTORS® ads Gazette and Current Newspapers November 30, 2011

Greater Capital area assoCiation of realtors® “Thank you, GCAAR members! You continue to serve our communities with dedication, commitment, and diligence.”

GCAAR ReAltoRs Care!

Greater Capital area assoCiation of realtors®

®

“Thank you, GCAAR members! You continue to serve our communities with dedication, commitment, and diligence.”

Adrian Hunnings, 2011 GCAAR President

GCAAR ReAltoRs® Care!

Here are some of the local organizations served by ReAlToRs® in the past year: Adrian Hunnings, 2011 GCAAR President

• Bright Beginnings • Community Council for the Homeless at Friendship Place • Fannie Mae Help the Homeless Walkathon • Rebuilding Together®

Winner of the 2011 Maryland Association of ReAltoRs® special Projects Award for Rebuilding together®

REALTORS® named Bright Beginnings (above) and National Center for Children and Families beneficiaries Mae Help the Homeless of the 2010 Fannie Beginnings provides free Walkathon. Bright daycare to children of formerly homeless families.

REALTORS® fund furniture housing programs for of Community the permanent Homeless at Friendship Council for the and other formerly-hom Place, where Charlanne eless adults find stability to rebuild safety and their lives.

Mae Help the annual Fannie of many REALTORS® support GCAAR is one the Walkathon the Homeless Walkathon. U.S. who have made homeless. organizations in the helping the nation’s one of the largest fundraisers

at Rebuilding REALTORS® volunteer home. A record Together® to repair a DC participated in number of 33 volunteers the seventh the 2011 project, markinghas partnered consecutive year GCAAR . with Rebuilding Together®

REALTORS® support the annual Fannie Mae Help the Homeless Walkathon. GCAAR is one of many organizations in the U.S. who have made the Walkathon one of the largest fundraisers helping the nation’s homeless.

at Rebuilding Together® REALTORS® volunteery County home. A record to repair a Montgomer participated in the 2011 year number of 35 volunteers the seventh consecutive ®. project, marking with Rebuilding Together GCAAR has partnered

www.gcaar.com (301) 590-2000

REALTOR® donations like the Dwelling Placeto organizations beds for Karen Williams provided twin and her family.

co-sponsored “Break GCAAR REALTORS® closing-cost the Barrier to Home Ownership” Castillo (right) at assistance winner Gilberto Conference of the 2011 Affordable Housing Montgomery County.

Here are some of the local organizations served by ReAlToRs® in the past year: • Affordable Housing Conference of Montgomery County • Dwelling Place • Fannie Mae Help the Homeless Walkathon • Partnership for Housing Foundation • REALTOR® Relief Fund Winner of the • Rebuilding Together® 2011 Maryland Association • St. Luke’s House of ReAltoRs®

special Projects Award for Rebuilding together®

www.gcaar.com (301) 590-2000

3


4

Serving the Business Needs of OUR Professionals

2011 November - December

Capital Area REALTOR®

The best way for a local business to grow is with a nationally recognized lender.

Our specialists can help your clients navigate the SBA loan process. From application to approval, they’ll benefit from our expertise every step of the way — exploring new SBA opportunities to secure the resources they need to grow. Get to know how SunTrust can help your clients’ business. Contact your Relationship Manager or local SBA specialist, or visit suntrust.com/sba. • One of the nation’s leading SBA lenders • Winner of 18 Greenwich Excellence Awards Traditional & SBA Financing

Asset Based Lending

Leasing

Debt & Equity Capital

Credit subject to normal criteria. Debt and equity capital raising provided through SunTrust Robinson Humphrey, Inc., Member FINRA and SIPC. SunTrust, SunTrust Robinson Humphrey and Live Solid. Bank Solid. are federally registered service marks of SunTrust Banks, Inc. SunTrust Bank, Member FDIC. © 2011 SunTrust Banks, Inc.

61968-11_BGA118_PA_SBA_man sitting_9.625x13.5_News.indd 1

7/13/11 8:08 AM

Document


Capital Area Realtor®

Serving the Business Needs of OUR Professionals

NAR Director’s Report

2011 November - December

To ensure that every REALTOR® Association has the opportunity to implement a successful community or political outreach initiative in 2012, NAR is supplying a wide range of services and tools in support of My REALTOR® Party. Associations can pick and choose from an online menu of resources, including grants to enhance housing opportunity efforts, diversity outreach, smart growth involvement, campaign funding tools, consultant help, and more.

Shelly Murray NAR Director My REALTOR® Party Leveraging Grassroots Efforts to Make REALTORS® Voices Heard The recent reinstatement of the FHA loan limits on November 17 is one example of the power of REALTORS®. My REALTOR® Party, NAR’s political advocacy initiative, is designed to leverage our Association’s best asset—our grassroots.

Packages can be designed based on the Associations’ needs – they will just need to explain how they will integrate the resources into community involvement and political leadership initiatives. All of these materials are available to order free of charge at the My REALTOR® Party website (www.myREALTORparty.com).

CLASSIFIED FLAGS

The Washington Post

Real Estate Guide ABCDE

REAL ESTATE GUIDE

washingtonpost.com/realestate

4 More color!

ABCDE

REAL ESTATE GUIDE

4 Affordable Photo Ads – draw attention to your listing. 4 Zoned for Maryland, DC and Virginia. 4 Enhanced readability! 4 Plus, a new Open House directory, designed to clip and carry! 4 Photo ads start at just $38 for the DC Zone!

washingtonpost.com/realestate

REAL ESTATE

$290,000

2351 Champlain St., NW. Amazing location! 2 bedrooms and 2.5 baths w/ private outdoor patio. 22 ft ceilings. Top of the line finishes includ SubZero/Wolf/Bosch appl, Bamboo cabinets, Travertine baths w/ Hans Grohe fixturs.

1-800-000-0000

N 11 -5PM

AM

www.FloridianDC.com

Brightwood Adams Morgan

$262,000

$499,990

semi-detached home near Tenleytown and Van Ness metros. Three bedrooms and 2.25 baths with four levels of which three levels are finished. This lovely home is aggressively priced and is in need of some updating. The main entry has a foyer and front porch. 3703 Windom Pl NW, DC 20016.

Townhome. 4 br, 3½ ba. NEW PRICE! Beautiful Square Front Victorian Townhouse on treelined block in West Dupont Circle. Four renovated flrs of elegant entertaining principal rms, comfortable Living Spaces, updated Gourmet Kit w/ Island, hardwood floors & high ceilings thru out & 5 period fireplaces. Located only 1 block from Starbucks. 2031 O St NW, DC 20036. Wlliam F.X. Moody 202-243-1620

Dupont Circle

$199,900

Mary Jane Molik 202-000-0000

CONDO. 2 br, 2 ba. Grand Dame of Washington “Best Addresses” Very light and airy renovated 2BR, 2BA with loads of windows. Gourmet kitchen with upgraded cabinetry, granite and tablespace. Plenty of built-ins. 1661 Crescent Pl NW #304, DC 20009. Sheila Hansen

Mobile/Manufactured. 3 br, 2 ba, 3br, 2fb, 1 den, 2 kitchens, lower level has its own kitchen, full bath, den and outside entrance. hardwood floors on main and upper level, carpet and tile lower level. 6415 8th St NW, DC 20012 George Saab SAAB, Realtors 703-288-4877 Brightwood

Adams Morgan

Among those who attended or plan to attend homefor-sale open houses, 82% are Washington Post or washingtonpost.com users.

$248,000

$699,900

CONDO. 2 br, 2 ½ ba, 1,550 sqft. Spectacular open 2 level condo with great views, GARAGE parking and extra storage! Floor to ceiling windows, 2 masters bdrooms, 2 zone audiosystm thruout, 42’ flatpanel, bay window in living room and 2nd master bedrooms, custom plantation shutters, granite kit high-in appliance, wine cooler, marble bathrooms and full size separate washer and dryer. 2200 17th St NW #220, DC 20009 Dwight Mortensen 202-361-4400

Single-Family Home. 4 br, 2 ba. Presented by the REO Division of Brandon Green. Completely rehabilitated property sitting on a quiet street in the NW. Fully renovated from the ground up. New windows and hardwood floors. 710 Roxboro Pl NW, DC 20011. Brandon Green 202-111-2222

$879,000

Single-Family Home. 4 br, 2 ½ ba. Antique brk 4 bedroom, 3 level, 2.5 attractively renov Bath Cape Cod. Gorgeous true t/s + breakfast bar, granite, SS, sitting room w/ Fr doors to wonderful priv patio & lovely garden! Large LR, handsome extra-wide fireplace, sitting room w/French doors, formal DR, foyer. 4605 47th St NW, DC 20016 Susan Jaquet 301-320-8346

American Univ.

$829,000

Single-Family Home. 4 br,3 ba. Fresh new listing in the heart of AU Park. Move in cond. 4 finished levels of living space incl 2 full baths up! & 3 br + 4th/study on upper lvl 2. Welcoming wide front porch, level fenced playball yard, garage/storage. 4626 47th St NW, DC 20016 Susan Jaquet 301-320-8346

CONDO. 2 br, 1 ba. Shows like a dream! Redone from top to bottom! Fabulous Top-of-theline Chef's Kitchen! Renovated Bath! Hdwd Flrs, Decorative FP! New Windows! Pets allowed! Front Desk, Close to (Metro Red Line). 4700 Connecticut Ave NW #404, DC 20008. Eric Hernandez 202-000-0000

Columbia Heights

Brightwood

$324,000

$149,000

CONDO. 1 br, 1 ba, 510 sqft. Welcome Home! The Concord is a wonderful new condo project with upgraded finishes and great location! This is a very cool Art Deco building with hardwood floors, granite countertops, stainless steel appliances, and designer cabinetry. 5611 5th St NW #24, DC 20011. Jeremy Aldridge 202-111-2222 $435,000

CONDO. Bright open 1 Bedroom + Den, 4th floor with new kitchen, new bath, new heat pump, hardwood, stainless refrigerator with icemkr, ss stove, dishwasher, microwaveRH, full size washer/ dryer. Quiet one way street in Col. Hts. Converted co-op, long time residents. 1447 Chapin St. NW #401. Margaret Virostek 202-000-0000 Weichert, Realtors Columbia Hghts $315,000 CONDO. 2 br, 1 ba, 1,058 sqft. LOCATION... see this opportunity to invest in a beautiful Columbia Hghts area. 1519 Park Rd NW #303, DC 20010. Ken Johnson DCRealestate.com Columbia Hghts

Single-Family Home. 3 br, 2½ ba.Fabulous Art Deco Tudor w New Pella Windows(cost $35.0) Dramatic flr plan w sunken livingroom/fireplace, spacious diningroom w glass doors open to large deck(Cost $14.0) w custom wrought iron/architectual motif.. 6105 14th St NW, DC 20011. Dianne Bailey 202-000-0000

Cleveland Park Cleveland Park

American Univ.

$479,000

Columbia Hghts

Brightwood

American University American Univ.

Cleveland Park

$249,000

$599,000

Townhome. 4 br, 3½ ba. Wow! this row twnhse w/ basement rental apt is smartly renov. & remod.. House has tenant planning to move out in jan 2010. apt is vacant. house incl off st pkng, deck, wood flrs, ss appliances & maple kit cabinets, gas fireplace, high ceilings & open floor plan. 2719 11th St NW, DC 20001. Helen Dodson 202-000-0000

Dupont Circle

Townhome. 1 ba FANTASTIC PRICE REDUCTION! Penthouse Studio at Northumberland. Charming and bright Penthouse Studio with Murphy bed unit- which conveys. Red and white oak floors with mohagany inlays. 9’+ ceilings. Kitchen with breakfast bar. Old world charm, formal,elegant residence. Conveniently located steps from 16th and U Streets. 2039 New Hampshire Ave NW #707, DC 20009. Jim Bell 202-607-400 Dupont Circle $269,900 CONDO. Great location at 16th and U st!!! 1 bed/ 1 bath with wall-to-wall carpeting in a pet friendly building. 2000 16th St NW #2, DC 20009. Erich Cabe 202-320-6469 Dupont Circle $269,900 Townhome. 1 ba FANTASTIC PRICE REDUCTION! Penthouse Studio at Northumberland. Charming and bright Penthouse Studio with Murphy bed unit- which conveys. Red and white oak floors with mohagany inlays. 9’+ ceilings. Kitchen with breakfast bar. Old world charm, formal,elegant residence. Conveniently located steps from 16th and U Streets. 2039 New Hampshire Ave NW #707, DC 20009. Jim Bell 202-607-400

Dupont Circle

American Univ. $699,000 Single-Family Home. 3 br,1½ ba. Solid red brick colonial on level lot located 1 block from Turtle Park and close to Spring Valley shopping. Bright cheery sun room. 4513 Warren St NW, DC 20016. Margaret Virostek 202-000-0000

$1,299,000

CONDO. 1 br, 1 ba. If you’ve been looking for a lrg affordable apt in GREAT shape, w/ good light & privacy that’s an EZ walk to Metro-this is it. Wonderful HWF, beautiful renv’ted Kitchen. 4600 Connecticut Ave NW #113, DC 20008. Mary Lowry Smith 202-000-0000

Cleveland Park $1,395,000

Multi-Family Home. Great investment opportunity! Three 2 BR,2BA units w/2 pkg spaces all metered separately w/reliable rent history. Upper two units have hwd floors; lower rear unit has ceramic tile flooring and is all electric. 1748 Willard St NW, DC 20009. Steward Coleman 202-841-2836

n

WASHINGTON DC

$399,000

COOP. 1 br, 1½ ba, 1,295 sqft. Spacious and bright one bedroom, 1 & 1/2 bath on high floor with cityscape view. As large as many 2 bedrooms! Note: coop fee INCLUDES property tax and utilities. Great Watergate location with many amenities. 2700 Virginia Ave. #1204, DC 20037. Gigi Winston 202-000-0000 Winston Real Estate $859,000

$370,000

COOP.1 br, 1 ba, 904 sqft. Spacious Watergate 1 bedroom overlooking in a quiet garden/courtyard setting. Floor to ceiling windows and balcony. Over 900 square feet. Parking and extra storage is included. Coop fee INCLUDES taxes, all utilities, maintenance of HVAC, basic cable. Convenient location -Near metro, Georgetown waterfront, shopping on site and more! Gigi Winston 202-000-0000 Winston Real Estate Foggy Bottom $370,000 COOP. Large, spacious 2 bedroom at the Watergate. Bright and sunny with balcony across entire apartment. Gigi Winston 202-000-0000 Winston Real Estate Foggy Bottom $998,000 COOP. 2 br, 2½ ba, 1,880 sq. ft. Bright direct river view 2 bedroom. Watch river and sunsets from every room. Almost 1900 sq. ft.

Brookland

NW NE SW SE

All Homes Now on Sale! Priced from the Low $300’s*

CLOSE OUT SALE!

Madrigal Lofts, DC’s Most Popular Condominium. Come see why

AT COLUMBIA HEIGHTS METRO

811 4th Street, NW.

202.408.0007 MadrigalLoftsCondo.com nice view from balcony. Features include NEW W&D, garage parking included, this building has 24 hour front desk, Outdoor pool. 2111 Wisconsin Ave., NE, DC 20007. Patrick Kelly 202-000-0000

Brand new condos in the center of it all, 1 BR/Den from the $400s

Logan Circle $269,900 Townhome. 3 Level 2 Unit building in near metro & shopping. Updated homes but you can do your own touch ups. It is Ready to be Move in. It has Hardwood flooring and many other updates.2 BR second floor and one bath room. The basement is separate unit and can use as additional rental income or else. One block a way from new development of O ST Market

$370,000

Apt/Condo/Twnhm. PRICE DROP! OPEN HOUSE SUN 11/29 1-4 Over 1000 sq ft 1br + huge den w/closet/2ba chic pad in famous Whitman incl pkng, balcony, 50k of cstm decor, wired 4 sound, mrble grnte Braz Cherry hdwd, stnlss, glass, never-used kitchen, lndry rm, glss shwr, lux tub. Wendy Wood 202-000-0000

202.640.1023 l OnlyatCV.com

Brookland $699,900 CONDO. Great location at 16th and U St!!! 1 bed/ 1 bath with wall-to-wall carpeting. 4301 Military Rd. NE #606, DC 20009. Wendy Banner 202-000-0000 Brookland $760,900 Townhome. Great location at 16th and u st!!! 1 bed/ 1 bath with wall-to-wall carpeting in a pet friendly building. 5337 42nd St. NE, DC 20015. Michael P. Rose 202-000-0000

Deanwood Deanwood

$1,035,000

Brentwood Brentwood

$699,000

CONDO. 2BR 2BA. Gourmet Kitchen with Wood Floors, Granite Counters & Backsplash & Stainless Steel Appliances Stackable washer & dryer in unit - Luxury building with exercise/fitness room. 4301 Military Rd. #606, DC 20015.

Townhome. 3 br, 1½ ba. Sun-filled and renovated 3BR/1.5BA, conveniently located near shops and restaurants of Georgetown, hardwood floors throughout, separate Dining Room, wonderful table-space Kitchen w/ granite counters and stainless steel appliances, opens to rear private patio. 1215 33rd St NE, DC 20007. Nancy Bubes 301-000-0000

Deanwood

$1,950,000

Single-Family Home. 5 br, 4 ba. Totally renovated turn of the century Victorian townhome in Georgetown! Live across from Dumbarton Oaks and enyoy the gardens;Four exceptional levels as well as a private deck and garden ; 5+ bedrooms, 4 full baths; beautiful kitchen with granite;new appliances,four fireplaces. 3102 R St NE, DC 20007. Susan Berger 202-255-5006

Deanwood $849,000 2 br | 1 ba | Single-Family Home Located on a quiet one-way street in the East Village, this beautiful semi-detached 2 bed, 1 bath Federal boasts exquisite details throughout. 2806 Dumbarton St NE, DC 20007. John Washington 202-000-0000

Fort Totten Fort Totten

$369,000

CONDO. Spacious, bright condo on upper floor with

$399,000 Townhome. 2 br, 2 ba, 3 Level 2 Unit building in near metro & shopping. Updated homes but you can do your own touch ups. It is Ready to be Move in. It has Hardwood flooring and many other updates.2 BR second floor and one bath room. The basement is separate unit and can use as additional rental income or else. 1517 6th St SW, DC 20001. Payam Bakhaje 202-345-2778 Bellevue

Anacostia Anacostia

Payam Bakhaje 202-345-2778 Bellevue

$920,000

$499,900

Single-Family Home. 4 br, 2 ba. Classic Victorian in Popular Brookland Community. Three levels plus walk-up attic with space for rooms. Formal entry with sitting area, huge dining room with pocket doors, living room with fireplace. 2837 12th St SE, DC 20017. Bradley Wisley 301-000-0000 Anacostia

$285,000

$449,000

CONDO. 1 br, 2 ba. PRICE DROP! OPEN HOUSE SUN 11/29 1-4 Over 1000 sq ft 1br + huge den w/closet/2ba chic pad in famous Whitman incl pkng, balcony, 50k of cstm decor, wired 4 sound, marble grnte Braz Cherry hardwood, stainless, glass, never-used kitchen, lndry room, glass shower, luxury tub. POOL, EXCSE RM, 24-hr Concrge CLOSE TO EVERYTHING: Metro, grocery, pharmacy. 910 M St SW #429, DC 20001. Martin Hosking 240-605-7590

Bellevue

$399,000 Townhome. 2 br, 2 ba, 3 Level 2 Unit building in near metro & shopping. Updated homes but you can do your own touch ups. It is Ready to be Move in. It has Hardwood flooring and many other updates.2 BR second floor and one bath room. The basement is separate unit and can use as additional rental income or else. 1517 6th St SW, DC 20001.

$318,000

CONDO. 1 br, 1 ba, 750 sqft. Spacious one bedroom with bird’s eye views. Integrated Kitchen, Living/Dining room. Wood parquet floors throughout, 3 big closets. Front Desk, roof deck and pool, and laundry room on each floor. Desirable urban location where it’s. 1440 N St SW #906, DC 20005. Jo Ricks 202-234-1784 City Houses, LLC

CONDO. 2 br, 2½ ba, 1,744 sqft. New state-of-the-art building - 27 units. Duplex. Every unit has own wash/ dryer, super high-end fins, ss apps, granite, bamboo flrs & cer tile BA. NO CLOSING COST OPTIONS. 450 Church St SW #602, DC 20005. Todd Wood 301-347-4720 RE/MAX Realty Bellevue

Single-Family Home. 4 br, 3 ba, Calling all visionaries! This is it in Brookland. Renovated less than 8 years ago this stone beauty is begging for your personal touch. Three full baths, master suite with full bath, large kitchen, 2nd floor washer dryer hook up. 3100 13th St SE, DC 20017.

$318,000 Tanya Slade 301-000-0000

CONDO. 1 br, 1 ba, 750 sqft. Spacious one bedroom with bird’s eye views. Integrated Kitchen, Living/Dining room. Wood parquet floors throughout, 3 big closets. Front Desk, roof deck and pool, and laundry room on each floor. Desirable urban location where it’s easy to walk to Metro and Logan commercial offerings from your front door. 1440 N St SW #906, DC 20005. Jo Ricks 202-234-1784 City Houses, LLC Bellevue $699,900 CONDO. Great location at 16th and U St!!! 1 bed/ 1 bath with wall-to-wall carpeting. 4301 Military Rd. NE #606, DC 20009. Wendy Banner 202-000-0000

Capitol Hill Capitol Hill

$199,900

Single-Family Home. 3 br, Single-Family Home , 4 br, 21½ ba. Home sweet Home! Cozy, inviting, georgeous ALL BRICK 4 BR single family DETACHED home. Hardwood floors on main level, freshly painted, new kitchen floor. Enjoy backyard family picnics cool breezes on front porch in DC. 910 48th Pl SE, DC 20019 Luis Vivas 202-000-0000

Wendy Banner 301-365-9090 Brentwood

$825,000

CONDO. 2 br, 2½ ba, 1,700 sqft. MODEL 1348 TALBERT *FHA APPROVED* O 2Br, 2.5 Ba, gated, patio overlooking the entire city, Balcony off Gourmet kitchen, breakfast bar, granite, Stainless steel appliances, tons windows , tons of light, Central A/C & Heat with Humidifier & elec. air filter, tranquil. 1384 Talbert Ct, DC 20020.

1-800-000-0000 Brentwood

$824,900

Unparalled LOCATION. Unsurpassed LUXURY. Unfortunately, not an unlimited supply.

$839,000

CONDO. 2 br, 2½ ba, 2,106 sqft. Bright & spacious 2 bedroom, 2 1/2 bath at the Plaza. Over 2000 square foot open floor plan- dining/den area w/ balcony access, large open updated chef’s kitchen w/ granite counter-tops. 800 25th St NW #703, DC 20037. Gigi Winston 202-000-0000 Winston Real Estate Foggy Bottom $595,000 COOP. The spacious feel of a house in convenient one level river view Watergate. 700 Hampshire Ave NW #421, DC 20037. Gigi Winston 202-000-0000 Foggy Bottom $355,000 CONDO. The spacious feel of a house in convenient one level river view Watergate. 700 Hampshire Ave NW #421, DC 20037. Kim Kimmy 202-000-0000

CONDO. 2 br, 2 ba, 1,114 sqft. NEW LISTING! *Second bedroom currently used as a den.* Experience the ultimate in comfort, convenience, and service is this charming 2 Bedroom, 2 Bath Residence at the Ritz Carlton condo. 1111 23rd St NE #3G, DC 20037. Patrick Chauvin 202-243-1620

Brookland

With NEW LOW PRICES and customized incentives, Bethesda’s last new LUXURY CONDOMINIUM. is going fast. Where else can you find 4 live theatres and 2 cinemas – along with 200 restaurants and a dozen art galleries – all within strolling distance? Welcome to Lionsgate, one block from the Metro, in the heart of downtown Bethesda. It’s Park Avenue style living from the$800’sto$1.7million.Forthebestviews,floorplansandincentives,makeyour appointmentnowandjointhe-

Brookland

$895,000

morethan130residentsalreadylivingatLionsgate.

Open House Directory Single-Family Home. 3 br, 2¼ ba. North Cleveland Park

202.332.6477

Bellevue

Bellevue

Wendy Wood 202-000-0000

KENYONSQUARE.COM

Bellevue

Bellevue

Logan Circle

Foggy Bottom

NEW LUXURY CONDOS STARTING IN THE $400’S

• Modern Loft Style Design • 10’ Ceilings • FHA Financing Available • Steps To Penn Quarter, Chinatown, Verizon Center Brookland $789,900 CONDO. Great location at 16th and U St!!! 1 bed/ 1 bath with wall-to-wall carpeting in a pet friendly building. Wood floors, classic window. 4301 Military Rd. NE #102, DC 20009. Neil Bacchus 202-320-6469

Judith Lewis 202-000-0000 Foggy Bottom

$751,000

Single-Family Home. 3 br, 2 ba. Brick colonial with 3BR 2BA upstairs!Fin lower lev: laundry, quarter BA, very high ceil rec rm w/ 2nd FP & outside entrance! 4425 River Rd NE, DC 20016. Susan Jaquet 703-000-0000

Single-Family Home. 2 br, 1½ ba. Super charming townhouse on a quiet side street in convenient Foggy Bottom. 5-minute walk to Metro,Georgetown, West End. 2524 I St, DC 20037. Judith Lewis 202-000-0000

Foggy Bottom Foggy Bottom

$995,000

Single-Family Home. 4 br, 3½ ba, 999 sqft. Premier AUP 4BR, 3BA col. Huge DR! Huge lower lev with fab stone fp, BR, BA, bonus rm, sep entr! Gorgeous large lot! As is. SS/ granite kit just renov. 4615 Van Ness St. NW, DC 20016. Tracy Carol 202-111-2222

Foggy Bottom

Foggy Bottom

-5PM

OPE

FLORIDIAN

A Smart Investment for the Savvy Buyer. 929 FLORIDA AVENUE, NW – 202-299-9223

Brightwood

$1,385,000

AM

$269,000

CONDO. Welcome Saxony. This is a stunning and renovated 1BR 1BA unit that is is within walking distance to the red line Metro, restaurants, shops and grocery stores. 1801 Clydesdale Pl, NW #206. Nathan Guggenheim

John Plank 703-528-5646 Dupont Circle

N 11

Adams Morgan

• 2 BRs • 2 full baths • 1 half baths • Built in 2009 • 1690 sq. ft.

Dupont Circle $1,699.900 Townhome. 3 br, 3½ ba, This grand, contemporary home offers truly breathtaking dimensions, light &; function rarely found in such an urban location. contemporary home offers truly breathtaking dimensions, light &; function rarely found, designed by a renowned architect to showcase art, it has display spaces, premium lighting, interesting built-ins, angles.. 2022 R St NW, DC 20009.

OPE

CONDO. 2 br, 1 ba, 822 sqft. Rarely available, adorable 2 BR! Tons of character, huge windows, completely renovated! Granite and stainless kitchen w/hardwood floors! Beautiful bath w/full size tub! Immaculate and available immediately! Condo fee includes water & heat! 1831 Belmont Rd NW #204, DC 20009 George Saab (703) 288-4877

Brand New Ultra highend loft in the heart of Adams Morgan.

J/K

wednesday, december 11, 2009

open houses

Adams Morgan, Adams Morgan

The Open House prospects you want are reading The Washington Post

Source: 2009 Classified Marketplaces

J/K

wednesday, december 11, 2009

real estate open houses

CONDO. 2 br, 2 ba. Gourmet Kitchen with Wood Floors, Granite Counters & Backsplash & Stainless Stl Appl. Marsha Schuman 301-299-9598

LionsgateBethesda.com • 301/986/0066

Developed by Duball Woodmont, LLC

7710 WOODMONTAVENUE, BETHESDA, MD 20814 Sales by The Mayhood Company

The convenient Open House Directory is designed for readers to clip and carry on their open house rounds.

Easy to clip & carry.

For more information, contact your Washington Post Account Manager, or the Classified Real Estate Department at 202-334-5800, REclass@washpost.com.

GCAAR Thanks Adrian Hunnings for His Leadership and Vision as 2011 GCAAR President!

GCAAR Now Offering The CE Shop GCAAR is proud to now offer online education through The CE Shop, Inc. The CE Shop was founded with the mission to serve licensed real estate professionals with high quality, hassle-free, and simple online continuing education. Real estate professionals all across the United States have enrolled in the easy-to-use license renewal continuing education courses offered by The CE Shop. The CE Shop team includes real estate industry experts from across the country as well as knowledgeable content and curriculum designers, marketing and sales professionals, compliance and operation specialists, distance learning technologists, financial and legal experts, and a dedicated customer service team. The CE Shop, Inc. is dedicated to helping you meet your state requirements for real estate continuing education. The CE Shop is fully certified by the Association of Real Estate License Law Officials (ARELLO®). Every one of the courses available in its course catalogs is approved by the regulatory agency in their respective states. Visit The CE Shop GCAAR page at http://gcaar.theceshop.com/index.html. 1-877-827-0777

5


6

2011 November - December

Serving the Business Needs of OUR Professionals

Capital Area REALTOR®


Capital Area Realtor®

Serving the Business Needs of OUR Professionals

“Q” Armstrong Elected as 2012 Women’s Council of REALTORS® President On November 16, GCAAR members Cuvator “Q” Armstrong and Gwen Henderson were sworn in as 2012 President and PresidentElect for the Greater Capital Area Women’s Council of REALTORS® (GCA WCR) respectively. GCA WCR showcases and promotes the achievement and impact of women in the real estate industry, the business arena, and broader community.

2011 November - December

Committee Spotlight:

Rookie & RPAC Committees Rookie Committee

Rookie agents need more than a passing grade on the licensing exam to become great REALTORS®. What bridges the gap? Experience and information! The Rookie Committee selects topics and speakers and solicits and secures sponsors for monthly events. The committee meets monthly.

2011 Roster

Jacqueline Grenning, Chair Kymber Lovett-Menkiti, Vice Chair

“Q” thanks outgoing President Hildy Pollard for her service Other GCAAR and affiliate members elected to office were: Elois Wiggins, Secretary, Lamont Green, Treasurer, and Samar Caverly as Vice President of Membership.

Bradley Branch Patrick Casey Julie Cole Tina Del Casale Benjamin Dumbell Gregory Flynn Ann Johnston Linda Kibunja Ernest Knight

Molly McDowell Michael McGreevy Denise Melanson Jill Michaels Robert Moses Maria Reddick Sandra Sugar Jill Sullivan Josh Yearsley

RPAC Committee

If we’re not sitting at the table when elected officials make decisions about our industry, we ARE dinner. The REALTORS® Political Action Committee (RPAC) raises funds for candidates and campaigns that support the industry. The committee sets the plan for communicating issues and fundraising efforts to members and plans and executes fundraising solicitations and events. The committee meets monthly.

2011 Roster

Bonnie Casper, Chair Adrian Hunnings, Vice Chair

Newly-elected Board members: L-R, Lamont Green, Elois Wiggins, Samar Caverly, 2012 President-Elect Gwen Henderson, and 2012 President “Q” Armstrong Monthly meetings are held at the Norbeck Country Club in Rockville on the 3rd Wednesday of each month from 9:00 a.m. to 11:00 a.m. For information regarding membership and programs, please contact “Q” Armstrong at qrealtor@mris.com.

Becky Helman Dorothy Heymann Dev Hillman Eleanor Kott Obiora Menkiti Atieno Okelo Margaret Regnier Silvia Rodriguez Cedron Williams

Past President’s Luncheon October 14 Several GCAAR past presidents gathered for a holiday luncheon on October 14 at Maggiano’s Restaurant in Chevy Chase. 2011 GCAAR President Adrian Hunnings thanked the impressive array of past leaders for their service to GCAAR, and CEO Mike Moran echoed the sentiments of the group as he thanked Adrian for his service as this year’s President.

L-R, Carole Maclure, 1997-MCAR; Holly Worthington, 2006-GCAAR; Martha Schmidt, 1998MCAR; Dale Mattison, 2002-GCAAR; Jim Kneussl, 2004- GCAAR; Dennis Melby, 2008-GCAAR; Brenda Small, 2007-GCAAR; Alana Lasover, 2001-GCAAR; Adrian Hunnings, 2011-GCAAR

7


8

Serving the Business Needs of OUR Professionals

2011 November - December

Myths and Facts about the FHA Loan Limits MYTH: FHA WILL SOON NEED A FEDERAL BAILOUT FACT: The FY12 actuarial review shows a slight decline in capital reserves. However, it is important to note that this is NOT FHA’s only reserve fund. The capital reserves reflect the reserves available after paying expected claims and expenses. FHA’s current cash reserves total $33.7 billion - a $400 million increase from a year ago. These reserves are fully capitalized to pay 30 years’ worth of expected claims and losses. By comparison, the Financial Accounting Standards Board only requires private financial institutions to hold reserves for losses over the next 12 months. FHA has 30 times that amount in their cash reserves, plus another $2.55 billion in the excess capital reserves. The 2012 Audit states that “On net, the economic value of the Fund in future years has increased significantly due to the new, higher forecast of house price growth.” It is anticipated that FHA will again reach the 2% excess reserve requirement by 2014. MYTH: FHA IS EXPERIENCING HIGH DEFAULTS AND FORECLOSURES FACT: FHA’s seriously delinquent rate for loans originated in the last two years declined to 1.90%. FHA has said this is the lowest seriously delinquent rate in the history of the Neighborhood Watch system (originated in 1999). FHA’s total delinquency rate is now at the lowest level in more than five years. Furthermore, FHA’s credit quality has improved steadily since 2007. Over fifty percent (50%) of FHA loans made in every quarter since 2009 (2nd quarter) had credit scores above 680. Thirty-five percent (35%) of FHA borrowers in 2010 and 2011 (first half) had credit scores over 720. MYTH: THE ACTUARIAL REVIEW SHOWS FHA IS IN SERIOUS TROUBLE FACT: The actuarial review is a “snapshot” of the portfolio at a particular point in time. It estimates how the portfolio will perform in a run-off scenario over the next 30 years. Accordingly, an actuarial

Capital Area REALTOR®

review is highly dependent on projections about the future economic environment, particularly house price projections. According to the review, “Both the economic value and the IIF (insurance in force) of the Fund are expected to increase each year over the next seven years.” Even the Wall Street Journal (11/15/11) reports that “the independent audit shows that loans made over the last two years are performing far better and are expected to be profitable. While rising losses could prompt new calls for the FHA to take steps to reduce their role in the markets, housing analysis warn those steps could be counter-productive if they prevent qualified borrowers from accessing credit.” MYTH : EXTENDING THE CONFORMING LOAN LIMITS WILL PUT FHA AT GREATER RISK FACT: The 2011 Actuarial Review actually shows the opposite to be true. The review states, “FHA experience indicates that more expensive houses tend to perform better compared with smaller houses in the same geographical area, all else being equal.” MYTH: FHA IS NOT SERVING ITS MISSION FACT: In 2010, FHA was used by 56 percent of all first-time homebuyers, and 60 percent of all African-American and Hispanic homebuyers. In addition, 85% of borrowers obtaining homes at the higher loan limits had incomes below $150,000, and nearly 65% had incomes less than $100,000. MYTH: EXTENDING THE LIMITS WILL SERVE MILLIONAIRES BUYING MCMANSIONS FACT: Although some have argued this provision provides financing only for high-cost markets, more than 100 counties throughout the Midwest and more than 200 counties in the South experienced declines averaging more than $64,000. The majority of markets that were impacted by the loan limit decline are NOT high cost. How much do you know about the FHA? Test your knowledge in the quiz on page 22.

Events Committee Hosts Happy Hour The Events Committee hosted its first annual networking happy hour on November 8 at Seasons 52 restaurant in North Bethesda. Many thanks to our members and guests and our affiliates for sponsoring the event and providing some fantastic prizes.

Sponsors: BB&T Mortgage Capitol Title Classic Settlements Counselors Title, LLC EagleBank Embrace Home Loans Home Staging and Design Center, LLC

L-R: Bill Rozek, Joe Detrick, Sara Demb Goldstein, Angela Jones, Cindy Moses, Cassie Clancy (Events Committee)

Home Staging by Vivian LLC Home Team Title Keller Williams Metro Team Realty MRIS Prime Lending RGS Title Shulman, Rogers, Gandal, Pordy & Ecker, P.A. Village Settlements

L-R: Kerri Johnson, Stu Hall and Briana Ayala


Capital Area Realtor®

Serving the Business Needs of OUR Professionals

2011 November - December

T echnology New Changes at Facebook By Amy Chorew, The Tech Byte You may have heard about the new changes to the Facebook experience. So what types of changes has Facebook made and why? Let’s look at some of the biggest.

Timeline

“Timeline” is the new Facebook Profile. There are three basic components: •

“Cover” - A large panoramic image that is the focal point of your timeline.

“Apps” – Facebook “Applications” that you interact with are rolled up and displayed on your timeline. A great example of this would be Spotify, a music app.

“Stories” – Stories are organized in reverse chronological order, your timeline displays all of your status updates, photos, videos, questions, and walls posts.

Users have complete flexibility over what content is displayed in their “Timelines”. Users can remove, add, feature, and change the privacy settings for any piece of content on their “Timeline”.

Ticker

Ticker shows you the same stuff you were already seeing on Facebook, but it brings your conversations to life by displaying updates instantaneously. Now when a friend comments, asks a question or shares something like a check in, you’ll be able to join the conversation right away. Click on anything in ticker to see the full story and chime in – without losing your place.

News Feed

News Feed will act more like your own personal newspaper. You won’t have to worry about missing important stuff. All your news will be in a single stream with the most interesting stories featured at the top. If you haven’t visited Facebook for a while, the first things you’ll see are top photos and statuses posted while you’ve been away. They’re marked with an easy-to-spot blue corner. You can mark posts as top stories so either the person or the topic becomes more important and will appear more often in your newsfeeds.

Friends Lists

Friends Lists have been created to better organize your “friends”. Smart Lists – You’ll see smart lists that create themselves and stay upto-date based on profile info your friends have in common with you– like your work, school, family and city. This list is created for you. Close Friends and Acquaintances Lists – You can see your best friends’ photos and posts in one place, and see less from people you’re not as close to. This list you must create yourself.

Restricted List – You can add these folks to this list and they will only see your Public posts. You’ll still be friends on Facebook so you can send them messages or tag them in a post if you want to connect to them from time to time. Friend lists are completely optional. If you don’t like lists, you don’t have to use them and any lists you have already created have not changed. Each of your lists has its own News Feed, where you can see just the photos, status updates, and other posts from the people on the list. To view list News Feeds, look for the Lists section on the left side of your homepage and click the list you want to see.

Share Posts

Now you can select from the drop down under the wall and share content with your specific lists or with everyone if Public (which is the default) is selected.

Subscribe Button

Until now, it hasn’t been easy to choose exactly what you see in your News Feed. Maybe you don’t want to see every time your brother plays a game on Facebook, for example. Or maybe you’d like to see more stories from your best friends, and fewer from your coworkers. You also couldn’t hear directly from people you’re interested in but don’t know personally—like journalists, artists and political figures. When subscribing you can select: •

All updates: Everything your friend posts

Most updates: The amount you’d normally see

Important updates only: Just highlights, like a new job or move

Photos

The one thing everyone does seem to like; the photos are much bigger and include up to three within the post.

Check Ins (Formerly Called Places)

“Check in” at businesses, parks, restaurants and more through the use of GPS technology. When you “check in, an update will be posted to your Facebook “wall”. Users can now “Check in” while they are updating their “Status” by entering a city or location via the “Status” box. This will post on your wall. You can now also write a recommendation for Places 1. Go to the place page that you’d like to recommend. 2. Find the Recommend This Place box in the right column. 3. Write a recommendation in the open field, choose an audience to share your recommendation with, and click Recommend.

Facebook “Gestures”

Facebook buttons have been limited to like or share, regardless of the type of content or action you were taking. Now there is Facebook Gestures, which allows developers to turn any verb into a button through the Facebook open graph.

9


10

2011 November - December

Serving the Business Needs of OUR Professionals

Capital Area REALTOR®

Montgomery County Market Report By Fred Flick, Ph.D., Consultant/Housing Economist Both markets, single-family and condominiums and cooperatives, have seen weaker sales unit volumes this year than a year ago at this time. The brightest spot is that single-family prices are appreciating steadily, and condo/coop prices rose during the third quarter of 2011.

transactions. By the end of the summer, total contracts (1,581) were almost 6% below their levels of a year before; and, total settlements (1,647) were 5.2% below the same period in 2010. As would be expected, contracts during the third quarter (596) were about 2% below the levels of a year ago, with settlements (502), just slightly above summer 2010. During the summer, there were an average of 717 active listings, compared to 1,037 in 2010.

At the end of September, for both property types, year-to-date contracts (8,037) were down 8.8% from the previous period in 2010. Similarly, settlements (7,324) had declined over 9% from the end of the third quarter in 2011. The total listing inventory at the end of the summer was also down from a year before. By September, active inventory totaled 3,407 properties (single-families and condo/coops). This was a 14% decline from the level at that time in 2010. Fred Flick

However, the news for prices is more positive. By the end of September, single-family prices were up from 1.6% (average) to 2.4% (median) and condo/coop price increases ranged from 1.8% (average) to 2.7% (median). With the summer peak of the season, this is to be expected. But, the interesting factor is the strength of prices given the very ‘iffy’ unit sales performance of both types of property. Of course, according to several national sets of price statistics, the Washington, D.C. metropolitan area is one of the few in the country that has seen positive home price appreciation. Single-Family Market At the end of the first two quarters, year-to-date contracts totaled 4,524 units and settlements comprised 3,641 single-family properties. They were, respectively, 10.5% and 13.7% below the same figures for a year before. Total active listings were 2,722 units, just slightly under actives a year before. By the end of September, year-to-date contracts totaled 6,216 and settlements included 5,677 homes. During the JulySeptember period, there were 2,093 new contracts and 1,923 additional settlements. Over the third quarter, the number of total active listings averaged 2,653 homes.

While sales were down from 2010, single-family prices continued to rise during this summer. At the end of June, the average price for a singlefamily home was $514,334 and the median was $405,398. By the end of the quarter, single-family properties averaged $522,540, with the middle property at $415,000. These figures amount to appreciation rates of 1.6% and 2.4% over the summer. Not bad! Condominiums and Cooperatives The condo/coop market has had its difficulties. If the single-family market were stronger, we could suspect shifting between housing types, but single-family sales have been weak as well. At the end of June, year-to-date contracts totaled 1,307 and were down 10.7% from June 2010. Similarly for settlements, they were down 6.9% on 1,105 closed

On the condo/coop price front, there was better news. At the end of June (for the first 6 months), condo/coop prices averaged $234,289. By the end of September, it had risen to $238,488. For the unit in the ‘middle’, the median price for the first six months was $185,000. By the end of the summer, for the full nine months, this unit cost $190,000. These amount to appreciation rates of 1.79% and 2.7% for the summer months. October Single-Family Market In October, compared to a year ago, all of the standard unit sales measures were down; however, prices were still trending up. Sales contracts (690) were down 10.7% from a year ago; and settlements (487) in October declined almost 4% from last October. Furthermore, for the first 10 months, year-to-date contracts were down 9% and settlements were 10% below the comparable 2010 levels.

Prices in the single-family market have been rising since 2010. Through the first 10 months, the average and median prices were $517,564 and $407,700, respectively. In fact, the average appreciation rate has been outpacing general inflation. Compared to 2010, the single-family average price has risen 4.4%, with the median up 1.9%.


Capital Area Realtor®

Serving the Business Needs of OUR Professionals

2011 November - December

The news for prices continues to be negative. Average and median prices were still trending down through October. By the end of October, the (year-to-date) average price was $238,466 -- down 3.6% from 2010. Similarly, the year-to-date median ($190,000) was down 8.2% from the 2010 figure. Nevertheless, mortgage interest rates continue to be incredibly affordable; but, the high levels of consumer debt and expectations of a weak housing market continue to depress prices.

October active listings turned down from the 2,700 level at the end of September and the October inventory totaled 2,526-units. Furthermore, the new listing rate of 800 properties dropped 16% from a year before, so inventory will probably continue to trend down through the fall. The October sales contract pace (690) equated to a 3.6-month absorption rate. This is lower than in previous months and definitely will help keep prices stable to appreciating. Listing inventory continues to adjust to reflect the softness of prices and weak unit demand. By the end of October, inventory (703) was down about 32% from a year ago; and, new listings (239) were down 15% from a year before. At the October contracts pace (233), total actives equated to a 3-month absorption rate. This is lower than past figures and eventually will bring some price stability. Three months is a “normal” benchmark and hopefully market price declines will flatten this year.

October Condominiums and Cooperatives By the beginning of fall, the condo/coop market performance was mixed. October sales contracts (233) were up over 6% compared to October 2010; but, monthly settlements (149) were down 2%. For the first ten months of the year, settlements (1,804) declined over 5% and contracts (1,997) slipped 5% as well, compared to the same period a year before. The condo/coop market is continuing to seek a bottom in both sales and prices. Economic Policy and Interest Rates The pace of the economic recovery continues to be slow, but there are some positive statistics out there. The early estimate for third quarter real economic growth came in at 2.5% -- up from 0.4% and 1.3% in the first and second quarters, respectively.  However, the employment situation continues to be discouraging. There were only 80,000 new private sector jobs added in October. So far this year, there have only been about 125,000 new private jobs created each month. We need about 200,000 per month to keep up with labor force growth. As a consequence, the unemployment rate remains at the 9% level – although, it was 10% at the worst of the recession. Unfortunately, Congress does not appear willing to help through fiscal policy. Some cuts in payroll taxes will be approved, but there will be no continued on page 12

11


12

2011 November - December

Serving the Business Needs of OUR Professionals

Montgomery County Market Report continued from page 11

new stimulus spending. Indeed, the only stimulus we have is the Fed. It continues to buy bonds of various long maturities to try to push long-term rates lower. That is helping mortgage rates on mediumand long-term fixed rate loans. This is a great time to refi into a 15year fixed-rate loan. The government is rolling-out a program to refi mortgages of some “underwater” borrowers up to 125% of the existing principle. It is targeted at those who have made most of their payments, but have some negative equity. At the margin this can’t hurt, but there are still millions out there who are in such a negative equity position that virtually nothing can be done. Only some principle forgiveness will work for these borrowers, so the foreclosure nightmare will continue for several more years. In fact, the lending industry is fearful that a general ‘re-contracting’ program would only encourage more borrowers to default to take advantage of the principle write-downs. Mortgage Interest Rates At the beginning of the summer, the Freddie Mac early July national survey found 30-year fixed-rates averaging 4.6%, 1-year ARMs were at 3.01%, 15-year loans came in at 3.75% and 5/1 ARMs averaged 3.3%. Freddie Mac’s early-November survey showed that interest on fixed-rate loans continue to be down 40 to 60 basis points from the beginning of the third quarter. In this survey, the 30-year rate averaged 3.99% and 1-year adjustable mortgage (ARMs) rates averaged only 2.95% -- down from about 3.25% earlier this year. Fifteen-year loans came in at 3.30% and 5/1-yr. ARMs were very affordable at 2.98%. It is still early to assess whether the Fed’s “Twist” program will have much effect, but it is trying to push mortgage rates as low as possible to make refinancing of underwater loans work. There still is no doubt that this is the most affordable mortgage financing environment we have seen in several decades. It is truly a pity more of those in difficulty cannot take advantage of it. Consumer Prices and Energy Costs Since July, the annualized CPI for all urban consumers has risen from about 3.6% to 3.9% in September. It was flat from May through July. However, it was as low as 1% in September 2010, so total inflation has risen almost 3% points over the last year. The rise in the total CPI is due almost entirely to energy costs. When we exclude food (rising at a 4.7% rate in September) and energy (rising at a 19.3% rate) this ‘core’ inflation works out to be only 2%. At the beginning of the summer, the core rate was about 1.9% and it has recently flattened out at 2%. In September 2010, it was under 1%, so ‘core’ has risen about 1.1% over the past year. Examining several key components of the September 2010 to September 2011 measure: food prices rose 4.7%; housing shelter costs (mostly rents) rose 1.7%; and, apparel prices moved up 3.5%. Medical care services rose 2.8%, and medical care commodities were up 3.0% from a year ago. Unfortunately, energy commodities jumped 32.8% -gasoline up 33.3% and fuel oil up 33.4%. Nevertheless, energy services (electricity and natural gas) rose only 2.1%. Overall, inflation has been creeping up, but at a slow rate. There still is a lot of room for deflation in prices if Europe and Asia have moderate or severe recessions; and, this possibility is keeping inflation down. The risk of slipping into a period of negative growth (recession) is a convincing reason for pursing pro-growth and job creation policies. The Bottom Line Prices are continuing to rise in the single-family market, but the

Capital Area REALTOR®

condo/coop market remains weak. The average inventory to contract ratio for condos and coops is at its lowest in years so, hopefully, condo/coop prices will stabilize this year or early 2012. However, unit sales in both single-family and condo/coops were below 2010 levels at the end of the summer. On the up-side, the single-family market has been improving in price and sales have only slightly declined. So far, the U.S. economy has avoided a double-dip recession, but slow growth and continued high unemployment are the near-term future. The Fed is doing a good job of preventing another U.S. recession. However, there is good reason to believe that the Euro zone is already in a recession and that it will worsen. Greece will probably have to leave the euro and go back to the drachma so it can default on its bonds and devalue its currency. Italy is badly teetering, regardless of the resignation of Berlusconi. If Italy cannot find a way to cut its budgets, it will have to leave, too. Financial markets are placing bets that Italy and Greece will have to leave and that event could lead to an eventual break-up of the Eurozone. Already, some U.S. companies are feeling the effects of a European slump. It is possible the U.S. could see another small recessionary period in the near future. In the real estate and finance area, even with our government proposing new policies to finance underwater borrowers, there is not much they can do in the short- to medium-term. The only policy that could work quickly would be for lenders, investors, and banks to take ‘hair cuts’ on the principal value of these loans, refinancing the paying borrowers at lower principal amounts. This would re-set the markets and borrowers finances, the way Chapter 11 bankruptcy reorganization does for a company. Unfortunately in many areas, the principal ‘hair cut’ would be a butch. The banking, housing, and housing finance industries have resisted this approach. So, the saga continues.

property environmental energy education property environmental energy education

a full sPeCTruM of serviCes 4 Home inspections for new and existing homes 4 Environmental testing for lead-based paint, mold, radon, water and septic systems 4 Home energy audits for increased energy efficiency Ask how your energy assessment can be free. Think of Alban as your Total Home Consultant. Call us anytime for the answers you need to make informed decisions about your home... now THaT’s serviCe and ConfidenCe you Can build on.

alban insPeCTions

your Total Home Consultant 800.822.7200 • 301.662.6565

www.albaninspect.com


Capital Area Realtor®

Serving the Business Needs of OUR Professionals

2011 November - December

We know all this “Social Media” stuff can get confusing. Why not let us give you a hand? Share

Send

Single Property

Websites

(PATENT PENDING)

Tweet

Use Facebook and Twitter to sell your home! We make it easy. REAL easy.

Home

HomeFinder.com Single Property Websites have Facebook, Twitter and Google +1 buttons on every page. Why do you care? With every Share, Send Like, Tweet or +1 click, your Website’s search engine ranking goes up!

with priority placement and detailed online reporting.

Like

93

Share

102

Tweet

Joe Agent XYZ Realty (800) 555-5555 ext. 111 View My Listings

Single Family Home New Construction

t e Agenon by Jore Informati Mo Listed 555 for

4 Bedrooms 3 Full Bathrooms 1 Half Baths 1 Three-Qrtr Bathrooms 3501 Sq. Ft. Built in 1935 View Virtual Tour View Video Tour

5-5

00-55

Call 1-8

55 go, IL

rmation

t Joe Agen y XYZ Realt 5555 555gs (800) My Listin View

Living Room with a View!

Info School

munity

tion Informa

0

,00 e ily Hom le Fam ction Sing Constru New s room s 4 Bed Bathroom 3 Full s Baths Bathroom 1 Half e-Qrtr 1 Thre Ft. Sq. 3501 in 1935 Built

$475

Com e

Hom

Living

w!

a Vie

p.m.

rday l 11 Satu ay, Apri Sund

Send

the e in a

one of

iption location is4br,only3. 5 bth homion is 5 locat Descr e, ideal s of this 4br, 3. e, ideal t, seren

Ro

ls

Detai

s and

s

ving

ess t Addr

ion Direct City

es

Utiliti

w!

Skylights, Central Vacuum, Security System 2 Fireplaces, Fireplaces in Living Room, Fireplace in Master Bedroom

Dining Room

Formal Dining Room, Breakfast Bar

Kitchen

Range/Oven, Dishwasher, Disposal

Laundry Room

Washer/Dryer, Hook-up Only, Inside Laundry

Master Bedroom

Master Bedroom Split, Separate BR Exit

Master Bathroom

Full Bath, Separate Shower & Tub

Other Rooms

Great Room

Interi or lace

s

Exteri or

Approx Sq Ft Lot Size Roof

Septic, Septic in and connected

Construction

Frame/wood construction

12x11

Kitchen

15x14

Master Bedroom

23x14

Bedroom 2 Go

Stree

29x18

Dinning Room

t Addr ess

ion

Livin

Direct ion City

12x11

Great Room

Yes

s IL

Zip

enta Jr High ry High Scho ol

ing ing

es

r

Both

Elementary

MILL STREET ELEMENTARY SCHOOL JEFFERSON JUNIOR HIGH SCHOOL

High School

NAPERVILLE NORTH HIGH SCHOOL

Utilities Heating

Both Refrig & Evap Electric Heating

Water

Well

Refrig & Evap ric Heat ing

Elect Well

Jr High

sions

1

4

4

1

1

MILL STRE JEFFERSO ET ELEMENTA RY N JUNI NAPE OR HIGH SCHOOL RVILLE SCHO NORTH OL HIGH SCHO OL

Utiliti

Heat

8

12x1 15x1 23x1 12x1 12x1 Yes

ools

Cool Wate

Cooling

Fram

Dimen 29x1

Nearb y Sch

Elem

Nearby Schools

Where homes and people find each other.

s and

g Room ing Room en Mast er Bedr oom Bedr oom 2 Bedr oom 3 Grea t Room Dinn

Kitch

12x11

Bedroom 3

ls

3501 Sq Ft .27 Acre Lot Area Partial Tile Roof Septic, , Foam Septic Roof in and e/wo od cons connected truct ion

truct

Sewer

Living Room

Detai

Sewer

Room

Find

Send

Skylights , Cent 2 Firep ral Vacu laces um, Secu Firep , lace in Fireplaces rity Syste in Mast er Bedr Living Room m al Dinin oom , g Room Rang e/Ov , Brea en, Dish kfast Wash Bar wash er/Dryer, er, Disp Mast osal er Bedr Hook-up Only, oom Full Bath Insid Split, e Laun Sepa , Sepa dry rate BR Grea t Room rate Show er & Tub Exit Form

Cons

.27 Acre Lot Area Partial Tile Roof, Foam Roof

iption

Joe Agen XYZ Realt t y (800) 555-5555 View My Listin gs

I foun d 123m your listin ystre et. Pleasg on contact e me infor mation, with more or to setup additiona l phot a show os ing! First Nam e - Requ ired Last Nam e - Requ ired E-ma il - Requ ired

ls

Firep

Dining Room Kitch en dry Room Mast er Bedr oom Mast er Bath room Othe r Room

3501 Sq Ft

Lot Size Roof

House

Detai

Laun

Get Dri Rooms and Dimensions ving

Get Driving Directions

Open

Satu rday , Apri Sund ay, Apri l 10 from l 11 from 1:00 p.m. to 1:00 p.m. to 3:00 p.m. 3:00 p.m. A quie t, many serene, ideal grea locat in a park t ame ion is nities only -like of beau one of tiful newlsetting. Amethis 4br, the kitch nities 3. 5 bth hom y finish en, 2 inclu ed family e large room basemen de: deck s, trem t, gour to yard garage, endo met w/gr us stora More wet bar, new ass and Prop ge, pave erty Infor bath w/ste rs, grea mation t am and rain. Features

Descr

Features Fireplace

Approx Sq Ft

ools

Stree

a Vie

Exterior Details

sions

Dimen

y Sch Nearb

Get Dri

XYZ Realty Ro om wi (800) 555-5555 th ext. 111 View Our Website

Interior Details

ls

Detai

Room

,00

Living

A quiet, serene, ideal location is only one of the many great amenities of this 4br, 3. 5 bth home in a park-like setting. Amenities include: beautiful newly finished basement, gourmet kitchen, 2 family rooms, tremendous storage, large deck to yard w/grass and pavers, great garage, wet bar, new bath w/steam and rain. More Property Information

on

tion

$475

0 Sing le Fam ily New Constru Home ction 4 Bed room s 3 Full Bathroom 1 Half s Baths 1 Thre e-Qrtr 3501 Bathroom Sq. Ft. s Built in 1935

Send E-mail

Description

Realty XYZ 555-5555site (800) Our Web View

An

School

E-mail - Required

Sunday, April 11 from 1:00 p.m. to 3:00 p.m.

E-mail

1234

y Ch 00-55 icago, IL Street 5-555 55 5 for 555 More Inform Informa ati

Call 1-8 Informa tion

Last Name - Required

Saturday, April 10 from 1:00 p.m. to 3:00 p.m. This is where the open house description text goes for this open house time.

this amenitiequiet, seren nities of include: A quie great en, g. A t ame nities many settin y grea g. Ame met kitch park-like of the man-like settin t, gour deck to one park ed basemen ge, large only e in a bar. stora bth hom newly finishendous garage, wet tiful m s, trem rs, great beau ly room and pave rity Syste 2 fami ass um, Secu Room, w/gr g yard ral Vacu , Cent in Livin Skylights , Fireplaces oom laces Bar er Bedr kfast 2 Firep in Mast , Brea lace Firep Features g Room er, Disposal dry e Laun al Dinin lace wash Insid Form Firep en, Dish -up Only, Exit e/Ov Hook Rang rate BR Room , Sepa er/Dryer, Split Dining Wash oom er & Tub en er Bedr rate Show Kitch Mast , Sepa dry Room Laun oom Full Bath er Bedr t Room Mast room Grea er Bath Mast s r Room Othe Sq Ft 3501 Lot Area Roof , Foam .27 Acre ected Sq Ft Tile Roof conn Approx Partial in and ion Septic truct Lot Size Septic, od cons e/wo Roof Fram Sewer ion truct Cons 8 29x1 1 12x1 g Room 4 Livin 15x1 ing Room 4 Dinn 23x1 en 1 Kitch oom 12x1 er Bedr 1 Mast 12x1 2 oom Bedr Yes 3 oom OL Bedr RY SCHO t Room ENTA OL Grea ET ELEM HIGH SCHO STRE OL OR MILL SCHO N JUNI HIGH JEFFERSO LE NORTH ry enta RVIL Elem NAPE Jr High ol Scho High & Evap Refrig Both ing sale Zip es for ne ric Heat Elect IL go hom ing Chica Chicago Tribu Heat ding Well e, inclu gs at The ing nwid listin Cool e natio local r Find Starting Address real estat Wate Find

or Interi

I found your listing on 123mystreet. Please contact me with more Hom information, additional e photos or to setup a showing! Commu nity First Name - Required

Open House

g on listin d your Please I foun et. ystre more os 123m me with l phot tiona contact on, addi ing! mati infor a show setup or to ired e - Requ Nam First ired e - Requ Last Nam ired il - Requ E-ma

to 3:00 Housefrom 1:00 p.m.to 3:00 p.m. p.m. Open , April 10from 1:00

th om wi

or Exteri

Websites only take 60 seconds to build because there is ZERO data entry. The home address is also your website address so it’s easy to find in search engines. We'll even enhance the rest of your property listings for FREE,

School Information

$475,000

et

Chica

Community Information

(Reduced 10/19/09)

y Stre 34 An 555

12

Exclusively listed by Joe Agent Call 1-800-555-5555 for More Information

1234 Any Street Chicago, IL 55555

real estat e natio

nwid e, inclu Find local ding Chica listin go hom gs at The Chica es for sale go Tribu ne

Find real estate nationwide, including Chicago homes for sale Find local listings at The Chicago Tribune

Wow sellers and win listings at www.homefinder.com/SocialMarketing Contact us for a demo at sales@homefinder.com or (866) 529-5481

E-mail

XYZ Realty (800) 555-5555 View Our Web site

13


14

Serving the Business Needs of OUR Professionals

2011 November - December

Capital Area REALTOR®

P ublic P olicy Federal Legislative Update Conforming Loan Limits

Congress restored the FHA loan limits through 2013 at 125 percent of local area median home prices, up to a maximum of $729,750 in the highest cost markets. The reinstated FHA loan limit formula and cap change will help make mortgages more affordable and accessible in 669 counties in 42 states and territories, where the average loan limit reduction after the reset was more than $68,000. The floor will remain at $271,050. Congress chose not to apply the loan limits restoration to Fannie and Freddie. Fannie- and Freddiebacked mortgages will remain at 115 percent of local area median home prices up to $625,500. Stay up to date on NAR’s political activity and access all Calls for Action through NAR’s REALTOR® Action Center at http://www.realtoractioncenter.com/

Maryland Public Policy Update Maryland General Assembly

The new legislative session begins January 11, 2012 and pre-filing of legislation began on November 15, 2011. For more information, visit the Government Affairs news section at www.mdrealtor.org. Staff is reviewing and monitoring the below recently-introduced legislation: PG/MC 101-12 Washington Suburban Sanitary Commission – System Development Charge – Replacement of Existing SingleFamily Dwelling Unit Restricts the WSSC from imposing a certain system development charge for a single-dwelling unit that is to be built or subcontracted by an individual owner to replace on the same property a previously existing single-family dwelling unit under certain circumstances. GCAAR submitted testimony in SUPPORT of the Bill. MC 15-12 Montgomery County – Physical Accessibility Rating System. Requires the Department of Disabilities and the Montgomery County Department of Health and Human Services to work with businesses to develop a rating system that may be used to indicate physical accessibility on Web sites and in advertisements, marketing materials, and other means of promoting businesses in the County. MC 13-12 Montgomery County – Property Tax Credit – Benefit Corporations and Benefit Limited Liability Companies Authorizes Montgomery County to grant a property tax credit to certain benefit corporations or benefit limited liability companies. PG/MC 105-12 Washington Suburban Sanitary Commission – Residential Rental Property – Delinquency – Receiver Authorizes the Washington Suburban Sanitary Commission and/or

certain tenants to institute an action for receivership in certain cases of delinquency in residential rental property accounts for water and sewer usage. GCAAR submitted testimony in SUPPORT of this Bill, so long as it is amended to only apply to 5 or more unit multi-family dwellings. PG/MC 106-12 Washington Suburban Sanitary District – Unpaid Water and Sewer Charges – Collection and Liens Alters a provision to authorize, rather than require, the collection of certain unpaid bills for water and sewer services within the Washington Suburban Sanitary District against the owner of the property. GCAAR submitted testimony in opposition to this Bill. MC 7-12 Montgomery County – On-Site Sewage Disposal System and Well Easements – Rural Zones Provides that an on-site sewage disposal system or well located in certain rural zones in Montgomery County may serve only one additional lot or parcel that has been subdivided from a single property, with certain exceptions and limitations.

Montgomery County Issues Walter Reed Traffic Improvement Funds

$88.9 million will be allocated for traffic improvements around the Walter Reed National Military Medical Center campus. The funds awarded to Montgomery County were included in $300 million Congress appropriated in the Department of Defense and FullYear Continuing Appropriations Act of 2011 for such projects. Montgomery County was one of only four BRAC-affected areas nationwide to share in the special funding allocation. The projects approved are: • Maryland 355 multimodal crossing • Maryland 185 and Jones Bridge Road/Kensington Parkway • Maryland 355 and West Cedar Lane/Cedar Lane • Maryland 355 and Jones Bridge Road/Center Drive • Maryland 187 and West Cedar/Oakmont Avenue The funds approved will be distributed by the DOD Office of Economic Adjustment after it receives complete applications, including comprehensive plans and environmental information pertaining to the selected projects. Source: Council News - Press Releases & Statements

Bus Rapid Transit

Montgomery County officials might be asked to raise property taxes to pay for a 170-mile rapid bus network. A study released earlier this year showed that the system would cost $2.5 billion to build and between $144 million and $173 million annually to operate, not including land acquisition. Chairman of the task force Mark Winston has said the goal is to have a rapid bus system, which operates similarly to light rail, in place by 2020. A financial proposal to pay for the rapid bus system, which is expected to increase transit users in the county by as much as 11 percent, will be part of the task force’s report, expected to be given to County Executive Leggett in February. Winston said the group has not ruled


Capital Area Realtor®

Serving the Business Needs of OUR Professionals

out any significant contributions of federal or state funding, and it’s possible the final report will include a recommendation to establish a special taxing district. Source: Gazette Newspapers

County Legislation

Bill 33-11, Urban Renewal and Community Development Community Benefits Agreements - Large Retail Stores Bill 33-11 that would require large retail stores that intend to locate in the County to enter into a community benefits agreement with three or more recognized civic organizations. These agreements could include hiring practices and training programs for County residents, providing assistance to community organizations and contributing to affordable and workforce housing. Bill 31-11, Council Districts - Boundaries—Enacted On October 4, the Montgomery County Redistricting Commission presented its report to Council. The report included a summary of redistricting law, demographic data, a proposed redistricting map, a description of each proposed Council District’s boundaries, and a minority statement. Bill 31-ll was introduced affirming the Commission’s plan. Expedited Bill 28-11, Property Tax Credit - Renewable Energy – Amendments—Enacted Bill 28-11 suspends the property tax credit program for solar and geothermal energy devices as of November 8, 2011. New applications for the credit could only be granted after November 8, 2011 if an individual enters into a contract for eligible costs on or before November 8, 2011 and applies for the credit on or before November 8, 2012. Bill 28-11 addresses the backlog of applications for the credit. It also clarifies leased devices would not be eligible for the credit. ZTA 11-01, Commercial/Residential (CR) Zones—Enacted ZTA 11-01 establishes new zones in the CR family. For additional information please contact Meredith Weisel, Esq. at meredith@wgrelations.com or Katalin Peter, Esq. at kpeter@gcaar.com.

DC Public Policy Update WDCAR Speaker Series

Housing Resource Administrator—Gilles Stucker On October 27, Gilles Stucker, who is in charge of the District Housing Regulation Administration (HRA), addressed WDCAR members as part of WDCAR’s Speaker Series. Mr. Stucker briefed REALTORS® on the HRA and explained a number of issues related to inclusionary zoning. The HRA is responsible for administration and enforcement of the District’s Housing Code, and administers housing regulations relating to condos and co-ops, rent adjustment procedures, as well as licensing. Be on the lookout for future WDCAR Speaker Series Events!

District Legislation

“Real Estate Broker Licensure Exemption Act of 2011” (Bill 19-257) Bill 19-257, introduced by Councilmember Jack Evans, would EXEMPT from real estate broker licensure principals, officers and staff members of an entity that perform leasing activities to the extent that such person’s services are limited to leasing, renting or collection of rents involving real property owned in whole or in part by such entity and/or its affiliates.

2011 November - December

WDCAR voted to OPPOSE this legislation out of concern that such legislation leads to a reduction of professionalism in the profession and industry. WDCAR continued to monitor this legislation for months. A hearing was suddenly scheduled in mid-October and then postponed to mid-November in the Committee on Finance and Revenue. After both hearings were cancelled, it was most recently re-referred to the Committee on Public Services and Consumer Affairs. WDCAR has reached out to Council staff about our concerns and is prepared to testify in opposition should this legislation move forward. We will continue to monitor this legislation and express our support for more professional licensing standards – not legislation that encourages less professionalism. “Recordation Tax on Refinances of Security Instruments Clarification Act of 2011” (Bill 19-371) Bill 19-371, introduced by Councilmember Jack Evans, would clarify the District’s current position that recordation taxes should only be collected on the monetary difference between the first security instrument and the new refinanced instrument – the delta of the refinancing. By contrast, there are those who believe that the District, the CFO in particular, have been misinterpreting the current law and should in fact subject recordation taxes to the entirety of the newly-refinanced loan. WDCAR has OPPOSED suggested proposals/amendments to this legislation that would tax the entire amount of the refinanced loan. WDCAR CEO Ed Krauze testified at the second hearing held on October 20, focusing on how high recordation and transfer taxes are in general. WDCAR emphasized that the Council should take NO action that would further increase any property-related taxes. “Combined Condominium Real Property Act of 2011” (Bill 19-188) Bill 19-188 would provide for the ability to combine abutting condominium units that form a single dwelling unit into one tax lot for real property assessment and taxation purposes. Introduced by Councilmember Wells, this legislation is an attempt to make it easier for condominium owners to add and expand upon their existing condominium space. WDCAR has SUPPORTED this legislation and it appeared to have the support of the Finance and Revenue Committee at its November 16 hearing.

Other Real Estate-Related Legislation

Bill 19-208, “Vault Tax Clarification Act of 2011” To clarify the exemption of any vault that in whole or in part, includes real property exempt from taxation. Bill 19-223, “Public Space Permit Fee Waiver Amendment Act of 2011” To authorize the Mayor to waive or reduce permit fees for the use of public space, public rights of way, and public structures for projects that convey a public benefit and that do not impose costs on the District government. Bill 19-429, “Historic District Property Improvement Act of 2011” To require that all real property within a historic district in the District of Columbia receive a letter of important information about property improvement law and regulations with each yearly assessment notice. Bill 19-509, “Condominium Act of 2011” Amends the Condominium Act of 1976 to include all condominiums created after adoption of effective statute and other condominium association-related changes. For additional information please contact Ed Krauze, Esq. at ekrauze@gcaar.com or Katalin Peter, Esq. at kpeter@gcaar.com.

15


16

Serving the Business Needs of OUR Professionals

2011 November - December

Capital Area REALTOR®

Green Resources A Greener 2012: Strides in Environmentally-Conscious Practices 2012 Annual Fuel Economy Guide

The U.S. Environmental Protection Agency (EPA) and the Department of Energy (DOE) have released the 2012 Fuel Economy Guide, providing consumers with information that can help them choose a more efficient new vehicle that saves them money and reduces greenhouse gas emissions. While fuelefficient vehicles come in a variety of fuel types, classes, and sizes, many new advanced technology vehicles debuted on this year’s annual list of top fuel economy performers. Fuel economy leaders within each vehicle category – from two-seaters to large SUVs – include widely-available products, such as conventional gasoline models and clean diesels. Some 2012 models will be displaying a new fuel economy and environment label that provides consumers with more comprehensive fuel-efficiency information, including five-year fuel costs or savings compared to the average vehicle, as well as new greenhouse gas and smog ratings. Each vehicle listing in the guide provides an estimated annual fuel cost. The estimate is calculated based on the vehicle’s miles per gallon (mpg) rating and national estimates for annual mileage and fuel prices. The online version of the guide allows consumers to input their local gasoline prices and typical driving habits to receive a personalized fuel cost estimate. More information and a complete version of the guide can be found at: www.fueleconomy.gov. Source: www.EPA.gov

The Top Four Features Consumers Want in a Green Home are...

• • • •

Energy Efficiency Indoor Air Quality Materials Documentation and Verification

Source: Ecohomemagazine.com, October 2011 issue

Appraisers Add “Green Form”

Green or energy-efficient features in a home don’t often get factored into appraisals. They can be an important selling point in a home however, and many homeowners say “green” should count when valuing homes. A new form by the Appraisal Institute aims to make sure these key selling features–from those energy-efficient appliances to solar panels– are no longer overlooked and are factored into the equation. The form is an optional addendum to Fannie Mae Form 1004, which is the appraisal industry’s most widely used form for mortgage purposes. It is used by Fannie Mae, Freddie Mac, and the Federal Housing Administration. The new “Green Form” can be viewed as a big step in helping the appraisal industry standardize the way residential energy-efficient features are reported and analyzed. To see this form, visit the Green Tools and Resources page on gcaar.com (under the Resources tab), or smartphone users can click on this QR code:

Have a question/comments on GREEN issues? Contact Green Committee staff, Katalin Peter, Esq. at kpeter@gcaar.com

GCAAR Book Club Reads Blink Riding on the success of their first event, the GCAAR Book Club delved into Blink by Malcolm Gladwell. Education Committee member Ruth Papuchis led the group in a lively discussion on how to trust your gut instinct when making decisions. “We really enjoyed reading this book,” said the group. “Many times we know when we are not making the correct decisions, but we don’t trust our first instincts. Blink showed us how listen to the signals. The book is a great lesson for business and life.” Stay tuned for details on our next meeting.

$ $ $ $ $ $ $ $ Step 1: find a GOLD STAR STICKER in this issue of CAR*

win $250! $ $ $ $ $ $ $ $ STEP 2: Call Debbie Bell at 301.590.8771

Step 3: Collect your $250!

* Actual Gold Star Sticker is used, not just a star graphic. Only 1 winner per issue. Winner must present the issue of CAR with the sticker to claim winnings. If no winner is identified by CAR’s next mailing, the winnings are forfeited.


Capital Area Realtor®

Serving the Business Needs of OUR Professionals

2011 November - December

Congrats to the GRI 300 Series Graduates!

L-R: Ben Dursh, Shaughn White, Keith Carr, Anthony Borgia, Andrew Goodman, Staci Vest, Chris Johnson, Kara Chaffin, Thomas Castagnola, Valasie August (Instructor), Kent Fowler, Charles Ngansop, Lloyd Shipley, Johan Gunawan, Alvin Rice, Patricia Lancaster, Rokhsan Draheim, Marian Rosaaen, Edith Smith, Elvira Della, Susan Zusy

Education and Rookie Committees Host Thank You Receptions

Back row L-R: Jackie Talpa, Peter Vidi, Thom Brockett, Robert Moses, Esq. 2011 GCAAR President Adrian Hunnings Front Row L-R: Vimal Kapoor, Greg Flynn, Esq., Linda de Marlor, Tom Muldoon, Esq. Michael Chelst

REALTORS® Are the Heart of the Deal – 2011 NAR Annual Conference GCAAR and WDCAR members joined 20,000 REALTORS® and guests from across the country at the REALTORS® Conference & Expo held in Anaheim, California, November 11–14. The year’s meetings encouraged REALTORS® to “seize the day” for the real estate industry to defend and support the rights of homeowners and real estate investors across the nation. “Concerns about the general economy and state of the nation’s housing market have led some to question the value of owning a home,” said 2011 GCAAR President Adrian Hunnings. “REALTORS® know how important

L-R: Denise Melanson, 2012 President-Elect Michael McGreevy, Jacqui Grenning, William Trejo, Cathy Sherk

homeownership is to individuals, families, communities, and our nation’s economy. As the leading advocate for private property rights, homeownership and housing issues, REALTORS® are committed to keeping housing first on the nation’s public policy agenda.”

National Association of REALTORS® 2011 President Ron Phipps praised his fellow members for their resiliency in the face of a challenging year. “REALTORS® are the future of real estate. This year’s conference has further solidified our commitment to keep the American dream of home ownership alive and accessible for future generations,” said Phipps.

For example, right here in the Washington metro area, reduced loan limits are already starting to impact jumbo home buyers and may adversely affect the market in the future.

Newly-installed NAR president Moe Veissi explained his theme, “REALTORS® are at the heart of the deal,” saying that in today’s climate, REALTORS® can be relied upon to fight for and defend consumers’ rights and opportunities to buy, sell, and own real estate.

Throughout the week, REALTORS® participated in forums, classes, and workshops to gather the resources, information, and skills necessary to help them positively influence their local communities and community leaders and serve their buyer, seller, and investor clients more effectively.

Members also had the chance to explore the latest industry innovations and stay up-todate on how new products are transforming the real estate business, as approximately 400 exhibitors showcased the newest real estate products and services for the industry during the trade expo.

17


18

Serving the Business Needs of OUR Professionals

2011 November - December

Capital Area REALTOR®

GCAAR CARES - YEAR IN REVIEW Once again, GCAAR Cares had an event-filled year, keeping the Community Service Committee and GCAAR members on our “good” toes. Here’s a snapshot of our year in review:

V GCAAR Cares wins Maryland Association of REALTORS® (MAR) 2011 Project of the Year Award GCAAR Community Service Chair “Q” Armstrong (center) and GCAAR President-Elect Bonnie Casper (right) accept award from MAR Community Service Chair Michael Cerrito

V Final 2011 Homeless Walkathon Filled with Excitement, Nostalgia, and Hope On Saturday, November 19, 40 GCAAR members and staff braved the cool of the morning with thousands of others in the DC community to join in the final Fannie Mae Help the Homeless Walkathon on the National Mall. Walkers were awestruck as they were strategically routed through the Martin Luther King, Jr. Memorial site. Attended by 2011 GCAAR President Adrian Hunnings, President-Elect Bonnie Casper, Board Member and Community Service Chair “Q” Armstrong, there was a strong showing of support for those in need of daily shelter from the outdoors. This year’s Fannie Mae Help the Homeless beneficiaries are DC’s Hope and a Home and Montgomery County Coalition for the Homeless. Thank you GCAAR and GCAAR Cares for caring about our homeless community.

2011 GCAAR Cares Team

2011 President-Elect Bonnie Casper and CEO Mike Moran lead the way

V Other GCAAR Cares Highlights from 2011

1

2


Capital Area Realtor®

Serving the Business Needs of OUR Professionals

2011 November - December

Captions: 1. 2010 grant recipient National Center for Children & Families receive grant check at 2011 Board Installation 2. Cares Committee Vice Chair Sharon Rogers (far left) and member Linda Tomlinson (far right) attend reception for 2010 grant recipient Bright Beginnings 3

3. Darcelle Wilson (center blue) attends Cares meeting to update Committee on Change for Haiti. The Change for Haiti campaign in December 2010 with a total giving of $14,200 4. Karen Williams and children receive beds purchased by 2010 grant recipient the Dwelling Place

4

5

5. Charlanne enjoys new furniture purchased by 2010 grant recipient Community Council for the Homeless at Friendship Place 6. 2011 GCAAR President Adrian Hunnings (center) poses with closing cost contest winner Gilberto Castillo (right) at 2010 grant recipient Affordable Housing Conference

6

7

7. 2010 grant recipient Mi Casa received grant for the Ivy City landscaping project 8. 2012 Fair Housing contest winner Logan Lamb (center) attends Annapolis reception with Committee Chair “Q” Armstrong, GCAAR member Hildy Pollard, 2011 GCAAR President Adrian Hunnings, Board Secretary Silvia Rodriguez, and Senator Mike Miller

8

9

9. A record number of 33 volunteers helped with Rebuilding Together® Montgomery County 10. A record number of 35 volunteers helped with 2011 Rebuilding Together® DC

10

11

11. Committee Member Tom Bennetts and San Luisa BarnesMosaid volunteer at the Silent Auction table held at REALTOR® Fest. The Silent Auction raised $1500 to go towards the Tornado Relief Fund

19


20

Serving the Business Needs of OUR Professionals

2011 November - December

GCAAR Cares Year in Review, continued from page 19

Capital Area REALTOR®

V Other 2011 Fundraising Initiatives:

V GCAAR Cares is pleased to announce our 2011 Grant Recipients:

Have a REALTOR® Good Time with GCAAR Cares at our Annual ‘FUN’ Dine-Around Town! ***

GCAAR Cares Tornado Relief Fund

At Participating Restaurants

NEAR YOU!

Affordable Housing Conference Montgomery County Community Council for the Homeless at Friendship Place The Dwelling Place Habitat for Humanity Montgomery County National Council for Children & Families Stepping Stones Shelter THC - Housing Families



When: Tuesday, June 7 Where: Choose Your Restaurant Time: 11:00 a.m. - 9:00 p.m. CPK Bethesda/Montgomery Mall - 7107 Democracy Blvd (301) 469-5090 CPK Gaithersburg/Rio - 136 Boardwalk Place (301) 330-0681 Fire Station 1 Silver Spring - 8131 Georgia Ave (301) 585-1370 Franklins Hyattsville - 5121 Baltimore Ave (301) 927-2740 Hard Times Cafe Bethesda - 4920 Del Ray Ave (301) 951-3300

Print Flyer

GCAAR Cares is partnering with GCAAR and the Washington, DC Association of REALTORS® to support those devastated by the recent tornadoes. Your donation to the GCAAR Cares Tornado Relief Fund will go directly to the NAR REALTORS® Relief Foundation to help those who have lost so much. You can make a tax-deductible contribution online at www.gcaar.com or make your check payable to GCAAR Cares. GCAAR Cares will match donations up to $2500.

Thank You for Your Donation to the GCAAR Cares Tornado Relief Fund!

and bring family and friends OR come alone!

Don’t miss a great time with delicious food and company! (A percentage of all checks will be donated to GCAAR Cares) ***MUST BRING FLYER***

To make a donation or for more information about the GCAAR Cares Tornado Relief Fund, contact GCAAR at 301.590.8771 or e-mail Debbie Bell at dbell@gcaar.com.

Greater Capital Area Association of REALTORS® 8757 Georgia Avenue - Suite 600 Silver Spring, MD 20910

GCAAR Cares 8757 Georgia Avenue, Suite 600 Silver Spring, MD 20910

V Special Thank You to our 2011 Committee Chair, “Q” Armstrong for her great leadership, to all of our Subcommittee Chairs, Rebuilding Together® House Captains, Committee members, our event sponsors, and YOU, our wonderful members, for making this year a great success for GCAAR Cares and our communities!

Jeffrey Slavin and Koki Adasi Recognized As Top Philanthropists For GCAAR members Jeffrey Slavin and Koki Adasi, giving back is second nature. Both were recently recognized for their philanthropic efforts.

you’ll love,’ he’s almost always right.”

Jeffrey Slavin, a REALTOR® with C.J. O’Shaughnessy, Inc.,

Koki Adasi, a REALTOR® with Long & Foster, was named the

was named 2011 Philanthropist of the Year by The Community Foundation for Montgomery County (CFMC). Even as he has persuaded others to give, Jeffrey has donated generously himself, honing the focus of the charitable foundation his parents started in 1970—all with the goal of bettering life for needy families in Montgomery County. “Jeffrey is genuinely interested in who philanthropists, heads of nonprofits and political leaders are as people, not just as whatever role they’re playing,” says Sally Rudney, executive director of CFMC. “He uses that deeply personal knowledge to make matches that are satisfying for the donor as well as the recipient. When he says to a philanthropist, business leader or a politician, ‘I know something

Jeffrey Slavin (center), The Community Foundation of Montgomery County’s Philanthropist of the Year, with Maryland State Delegate Susan Lee and State Senator Jamie Raskin

The entire article can be found in the November-December issue of Bethesda magazine (www.bethesdamagazine.com) YMCA Metropolitan Washington’s Philanthropist of the Year. The youngest son of Nigerian immigrants, Koki first joined the YMCA in 2006 as a mentor to at-risk youth. Since then, Koki has steadily increased his leadership duties to include serving as a Title Sponsor for the annual YMCA charity golf game and Board Member for the YMCA’s Youth and Family Services Division. The YMCA’s s recognition of Koki’s service is just the latest highlight for the agent with the million-dollar smile. Since 2009, Koki has starred on HGTV’s hit show “House Hunters”, been featured on CNN & NPR, shattered numerous real estate sales records, and managed to get married; all without compromising his relentless commitment to serving the community.

Koki Adasi (center) named 2011 YMCA Metro Washington Philanthropist of the Year


Capital Area Realtor®

Serving the Business Needs of OUR Professionals

2011 November - December

Legal Hotline Call Summary By Chris Darby, Tom Muldoon and John Nalls of Counselors Title, LLC, and Pardo & Drazin, LLC, General Counsel Below are some questions answered on the GCAAR and WDCAR Legal Hotlines. The answers provided here are the opinions of the authors, are for informational purposes, and are only for GCAAR members. Neither Counselors Title, LLC, nor Pardo & Drazin, LLC is providing legal advice, but rather providing a general statement of law. No lawyer/client relationship is - or will be - established as a result of the material which follows. Readers are encouraged to retain their own counsel for their specific questions. Answers may have been edited for formatting purposes. Question: I have a property listed for rent and just discovered that another broker is advertising the same property on Craigslist. Is that legal? Answer: The Hotline is available to answer general legal questions and it would be inappropriate to specifically comment on the “legality” of particular factual situations. With that being said, Paragraph 3A (“BUYER/TENANT RESPONSIBILITIES”) of GCAAR Form 1341(“Buyer/Tenancy Agreement”) clearly provides: Exclusive Relationship with Broker: Buyer/Tenant will work exclusively with Broker during the term of this Agreement; Therefore, with this or any other exclusive agency agreement, it may be improper and potentially a breach of the agency agreement for a buyer to also work with another agent at the same time. We would suggest that you make further inquiries as to the underlying facts and consult with individual counsel as to your rights and obligations. Question: Can an agent act as a dual agent in Montgomery County? Answer: No, Title 17 regarding Real Estate Brokers in The Business, Occupations and Professions Section of the Maryland Code (§ 17-530) provides that “except as otherwise provided . . . [a] licensed real estate salesperson may not act as a dual agent in this State.” And while there is an exception for a real estate broker to act as a dual agent in a transaction where “the real estate broker assigns a licensed associate real estate broker or licensed real estate salesperson affiliated with the real estate broker to act as the intracompany agent on behalf of the seller or lessor and another licensed associate real estate broker or licensed real estate salesperson affiliated with the real estate broker to act as the intra-company agent on behalf of the buyer or lessee” the same does not hold true for a licensed real estate person. Question: Where the seller of property has not lived in the property and has rented the property for a number of years, is the Seller Disclosure Statement required? Answer: The District of Columbia, like many of our neighboring jurisdictions requires sellers to provide buyers with a property condition disclosure. The disclosure is designed to provide buyers with a frame of reference as to the “workings” of the property. The disclosure is required to be made except for limited exemptions (DC Code §42-1301) by owners and based upon the seller’s “actual personal knowledge”. In the situation of an investor seller the initial inclination might be that the seller does not have actual knowledge as to the property’s condition, however, whether managed by the seller or a management company the seller should (or the management company should) have sufficient knowledge from which to complete the disclosure. This seller will not be exempt

and as such will be required to provide prospective buyers with the disclosure or would run the risk of making a contract voidable. Question: I was recently sitting at an open house for a DC property listed by another agent in my office. During the open house, I was approached by a potential buyer who requested that I represent him. May I represent the potential buyer and how would I go about doing so? Answer: You may ultimately be in a position to represent the buyer, but you must first provide the necessary disclosures, obtain buyer’s consent to Designated Representation, have the buyer execute a Buyer brokerage agreement and ensure that you have not gained any information about the seller that may would violate your duty of loyalty to the seller if you were representing the buyer. The timing of these disclosures is critical. First, during the entire time that you are sitting at the open house, you are acting as a representative of the seller even though you are not the listing agent. Accordingly, prior to providing any specific real estate assistance to the potential buyer, you must provide him with a properly completed GCAAR Form 1002 (“Disclosure of Brokerage Relationship District of Columbia”) indicating that you are representing the seller at that time. Once that disclosure is provided, you may provide specific real estate assistance but must be careful to remember that you are still acting as seller’s representative at that time. I would suggest that you arrange to meet the buyer at a later time after the open house has concluded. You should then confirm with the Listing agent that the seller has consented to Designated Representation (one broker representing both parties with Designated Representative for each side). Assuming that the seller has consented to Designated Representation, you may then meet with the buyer following the conclusion of the open house. At your meeting, you must present him with a GCAAR Form 1341 (“Buyer/Tenancy Agency Agreement”) which also includes a GCAAR Form 1001 (“Consent for Dual Representation and Designated Representation”). If the buyer agrees to retain you as a Buyer agent by signing Form 1341 and also consents to Designated Representation, you may then represent the buyer as his agent. Your broker would need to appoint you as Designated Representative of the Buyer and the Listing Agent as Designated Representative of the Seller. Once that occurs, you may fully represent the buyer in negotiations with the seller assuming that you do not possess any information you obtained from the seller or listing agent or yourself while you were acting as seller’s representative that could be detriment to the seller in negotiations. If you are privy to information about the seller’s motivation or other confidential seller information, it could potentially disqualify you from representing the buyer. Therefore, you must always be careful as to how much information that you obtain when sitting at an open house for another agent.

21


22

Serving the Business Needs of OUR Professionals

2011 November - December

Capital Area REALTOR®

Q uiz

FHA Loans A few years ago, the FHA had all but disappeared from the mortgage lending market as lenders aggressively courted low- and moderate-income households and those with impaired credit. But in the aftermath of the economic collapse of September 2008, the FHA has risen to an unprecedented level of importance. How well do you know the FHA? Take this quiz to test your expertise! 1. In what year was the Federal Housing Administration (FHA) created? • 1934 • 1946 • 1965 • 968 2. Which of the following is NOT a requirement for someone applying for an FHA loan? • Proof of stable income over a two-year period. • Fewer than two 30-days-past-due payments on a credit report over • the past two years. • A mortgage payment of 30 percent or less of monthly gross income. • No history of bankruptcy or foreclosure. 3. What is FHA current, standard downpayment requirement? • 3 percent • 3.5 percent • 5 percent • 10 percent 4. Borrowers who have FICO scores lower than 580 must put up a __ percent downpayment to qualify for an FHA loan. • 3.5 • 5 • 10 • 20 Quiz Answers In what year was the Federal Housing Administration (FHA) created? Correct Answer : 1934 The National Housing Act of 1934 established the FHA and the Federal Savings and Loan Insurance Corporation laying the foundation for today’s mortgage and home building industries. In 1965, the FHA became part of the U.S. Department of Housing and Urban Development, where it remains to this day.

5. Right now, the FHA accounts for __ percent of the mortgage market. • 5-15 • 15-25 • 25-40 • 66-75 6. The FHA does NOT offer which of the following? • Adjustable-rate mortgages • Reverse mortgages • Energy efficient mortgages • The FHA offers all of these 7. What is the limit for the amount of an FHA loan? • $250,000 • $400,000 • $500,000 • Depends on the market of the property being purchased 8. How much of a building’s condo units must be owneroccupied for buyers to qualify for a loan to purchase in that building? • 33 percent • 50 percent • 75 percent • 90 percent

Before the subprime mortgage crisis started in late 2007 in 2008, the FHA accounted for less than 5 percent of the market. Today, it holds a much larger share, because there aren’t any other public or private institutions that can fulfill even the diminished public demand for mortgage lending. However, FHA Commissioner David Stevens has said this share will go down as financial markets stabilize and credit becomes more widely available.

Which of the following is NOT a requirement for someone applying for an FHA loan? Correct Answer: No history of bankruptcy or foreclosure. The FHA requires borrowers to have no foreclosures in the past three years, and no bankruptcies in the past two years.

The FHA does NOT offer which of the following? Correct Answer: The FHA offers all of these In addition to conventional loans, the FHA offers ARMs through its Section 251 program to help low- to moderate-income families; mortgages that allow borrowers to incorporate the cost of energy efficiency improvements to their homes into the loans; and reverse mortgages for borrowers over the age of 62 who meet certain requirements related to credit and property value.

What is FHA current, standard downpayment requirement? Correct Answer: 3.5 percent FHA’s current downpayment requirement (cash investment) is 3.5 percent. Although there have been recent attempts to raise that level, NAR has been working to retain the 3.5 percent requirement.

What is the limit for the amount of an FHA loan? Correct Answer: Depends on the market of the property being purchased FHA limits are set on the basis of local area median home price. In low-cost areas, the limit is $271,050 – but can go up as high as $729,750 in high cost areas. You can find the FHA’s loan limits for your market at www.fha.com/lending_limits.cfm

Borrowers who have FICO scores lower than 580 must put up a __ percent downpayment to qualify for an FHA loan. Correct Answer: 10 Under the old FHA rules, every borrower was required to put down a minimum of 3.5 percent to qualify for a loan. However, this year the organization raised that amount to 10 percent for borrowers who had a FICO score lower than 580 in order to protect its financial reserves.

How much of a building’s condo units must be owner-occupied for buyers to qualify for a loan to purchase in that building? Correct Answer: 50 percent Half of the units in a condo building must be occupied by their owners for buyers to get FHA financing to purchase a unit there (but vacant and REO property are not considered in the calculation of the owner-occupancy percentage). The condo must also be the borrower’s primary residence. Additionally, the building must meet FHA and HUD standards. To find out if a development has been approved, go to: https://entp.hud.gov/idapp/html/condlook.cfm

Right now, the FHA accounts for __ percent of the mortgage market. Correct Answer: 25-40


Capital Area RealtorÂŽ

Serving the Business Needs of OUR Professionals

2011 November - December

23


24

2011 November - December

Serving the Business Needs of OUR Professionals

Capital Area REALTOR®


Capital Area REALTOR® Nov/Dec 2011