MoCoRealEstate

Buying in Montgomery County

You’ve taken internet tours of homes for sale, you’ve researched real estate market statistics, now it’s time to make a purchase.  What do you do next, and what are the steps?  This video will run through the entire process to buy a home in Montgomery County, Maryland.

If you have a home to sell, watch a video summarizing move-up and downsizing strategies, and learn about buying with a home sale contingency.

How Much Do Homes Cost in Montgomery County?

Select an area in the chart below to see how many homes are available and how expensive they are.  Go here to understand areas and zip codes in Montgomery County.

Overview of MoCo Home Prices

December 27th, 2011 Categories: Buying, Market Updates

Take a tour of Montgomery County and quickly get up to speed on home prices throughout the county.

Posted by Bruce Lemieux | Leave A Comment

Understand Home Listing Status

December 14th, 2011 Categories: Buying, Selling

We often get questions about homes that are under contract.  When a home is first introduced to the market, it’s status is “Active”.  Once ownership finally transfers, the status is “Sold”.  That’s simple enough.  In between, however, there are a couple of different ‘Contract’ statuses that can be confusing.  Here’s an overview of typical listing status changes.

Active. Home is fully available. Seller may be negotiating a contract with a buyer, but seller can still consider another offer. Contract – No Kickout. Seller cannot accept another contract. Basic buyer contingencies (home inspection) outstanding. Contract. Buyer and Seller are locked-in to a contract. Buyer financial contingencies could still be outstanding. Sold. Title has been transferred from seller to buyer.

Contract with  Kickout.  Seller can accept a  ‘backup’ contract and can ‘kick-out’ existing contract.  Typically used with a home sale contingency.

Contact us anytime with questions about homes in Montgomery County.

Posted by Bruce Lemieux | Leave A Comment

Strategies to Make a Move

July 15th, 2011 Categories: Buying, Selling

If you own a home and need to make a move, you can take several strategies to get it done.  There is no single, best way to make this happen.  The most financially conservative approach will require two moves — not a problem if you’ve been looking for an excuse to move in with your family.   If the thought of living with your parents or children doesn’t have a strong appeal, then maybe you should buy, sell and carry a couple of mortgages.  What works best for you? Check out this article and watch the video to review several strategies to make it happen.

Posted by Bruce Lemieux | Leave A Comment

Making a Move with a Home Sale Contingency

July 12th, 2011 Categories: Buying, Selling

Which is easier:  juggling knives on a unicycle, or buying and selling a home with a home sale contingency?  Although we’ve tried juggling (we’re not very good at it), we’ve never attempted riding a unicycle.  We have, however, helped many clients move from one home to another with the protection offered by including a home sale contingency.  Go to this article and see a detailed video and all of the steps involved.

Posted by Bruce Lemieux | Leave A Comment

6 Commuter Basics You Need to Know When Buying in Montgomery County

January 12th, 2011 Categories: Buying

There’s at least a hundred great reasons to live in Montgomery County.  Commuting isn’t one of them.  The Metro D.C. area has some of the worst traffic in the U.S., so you need to think about your commute when choosing a home here.  Here are the top 6 things you need to know:

The Potomac River.  Yes, I know, you don’t plan on paddling a kayak to work, but the Potomac River shapes the basic road system in Montgomery County.  Glancing at a map you’ll see that Montgomery County shares a border of over 30 miles with Fairfax County in Virginia.  Read the rest of this entry »

Posted by Bruce Lemieux | 1 Comment »

Understand How Home Search Sites Work

December 22nd, 2009 Categories: Buying

Home search sites on the web are not the same

The internet has revolutionized the home buying process.  In the past, real estate agents were gatekeepers of critical real estate data:  homes available for sale, past sales in a neighborhood and more.  No more.  Consumers can access information from a countless number of sites without the need of an agent.  This is definitely good for buyers, sellers and the real estate industry.  Unfortunately, consumers now have a new challenge when navigating a tidal wave of home sites — there’s a lot of bad information out there.  To help find the good and avoid the bad, I’ll explain the basics of web home searches and review some of the popular home search sites for Montgomery County and the Metro Washington D.C. area. Read the rest of this entry »

Posted by Bruce Lemieux | 1 Comment »

Top 5 Myths About Home Inspections in Montgomery County

December 1st, 2009 Categories: Buying, Selling

A buyer can only void a contract if a home inspection reveals serious/legitimate issues

The typical home inspection contingency allows a buyer to either negotiate home inspection items or void the contract and have his escrow deposit returned within a negotiated time frame (usually 7 to 14 days).  Absolutely no reason has to be given for voiding the contract:  none, nada, zip.  Is that fair to buyer and seller?  Absolutely.  Ultimately, only the buyer’s opinion of the property matters.  Imagine what would happen if the buyer had to provide a “legitimate” reason to void the contract.  A buyer’s and seller’s definition of “legitimate” would rarely line-up.  Since the buyer is the one taking possession, his opinion is the only one that matters.  Is this a way for a buyer to back out of a contract for no reason?  Yes, it is.  It does happen, but not that often.

A buyer has only one opportunity to inspect a home

Typically a buyer will have only one inspection from a licensed home inspector, but a buyer could have several at his discretion provided they are completed within the agreed-to time limit.  The best strategy is Read the rest of this entry »

Posted by Bruce Lemieux | 1 Comment »

Is It Time to Move-up in Montgomery County, Maryland?

November 9th, 2009 Categories: Buying

The U.S. Government thinks so.  Last week, the $8,000 first-time homebuyer credit was extended and enhanced to provide a $6,500 credit to current homeowners who purchase another home as their primary residence.  Here’s the basics for the move-up credit:

• A ratified contract must be in place by April 30th, 2010 and close by June 30th
• Home purchases over $800,000 do not qualify
• A buyer must be in their current home 5 of the last 8 years
• The buyer’s income must be below $125,000 or $225,000 for married couples
• The credit can be claimed on your 2008 or 2009 return

Unfortunately, there’s quite a bit of fine print with this credit.  The National Association of Home Builders and IRS have FAQs to review.  You should also talk to your accountant to make sure you qualify.

Contact us if you are planning a move in the coming months and we can help you get started.

Posted by Bruce Lemieux | Leave A Comment

Going from ‘Ratification’ to ‘Settlement’

October 20th, 2009 Categories: Buying, Selling

Once a Buyer and Seller ratify a sales contract, they must jump through a few hoops for ownership to finally transfer. There’s a zillion ways to mix and match contract terms to meet the requirements of the Buyer and Seller, so each contract is different.  Here’s the basics so you know what to expect.

Read the rest of this entry »

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Montgomery County Closing Costs and HUD1 Overview

October 1st, 2009 Categories: Buying, Selling

Perhaps the best way to understand the costs required to buy and sell a home is to understand the HUD1.  This is a standard two-page document that details all expenses and credits for a home sale.  This video walks through a HUD1 so you can understand the basics:

Closing Costs Estimates for Buyers

Here’s the top four expenses for home buyers in Montgomery County, Maryland Read the rest of this entry »

Posted by Bruce Lemieux | 8 Comments »

Bargain Hunters Are Driving Me Crazy!

June 8th, 2009 Categories: Buying, Foreclosures

At least once a week I have the following conversation with a buyer:

Buyer - I’m really interested in foreclosures so I can get a great price.

Me - OK, foreclosures have pushed prices lower in several segments of our market.  What else are you looking for?

Buyer -  I would like a single family home in Potomac, Rockville or North Potomac under $1M in a good school district.

Me - Now we have a problem.

Don’t get me wrong, no one loves a bargain better than me.  When buying a home, however, having “get a bargain” as the #1 purchase criteria is a recipe for disappointment.  Why?  Primarily, the inventory of distress sales is very low — and getting lower.  This removes 80% of the available market for consideration.

But getting a bargain isn’t the primary criteria, is it?  You also want a home that meets your needs and is located in your desired area and goes to your preferred school district.  Filter the inventory of  distress sales with this critieria and there’s nothing left.

Take a different approach.  Even if distress sales are unavailable for homes that meet your needs, you can still find good values.  Step #1 – Focus on the homes that meet your needs first.  Step #2 – Find the best values within this subset of homes.  Some distress sales may now be worth a look, but don’t overlook regular resales.  For my buyers, I’ve negotiated the very best values with sellers who are motivated and have a lot of home equity.

Don’t be disappointed.  First – find homes that meet your needs.  Next – narrow in on the bargains.
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Do you have questions about the Montgomery County real estate market? Call us at 301-527-9079 or send an email for more info about buying, selling and living in Montgomery County, Maryland.

Posted by Bruce Lemieux | 1 Comment »

Should you offer $1M on a $1.2M listing?

April 10th, 2009 Categories: Buying, Market Updates

How low can I go when making a purchase offer?

I get this question a lot these days.  I took a detailed look at all sales for 2008 and provided an analysis for list-to-sales price ratios for Montgomery County.  This provided a good overview for the County, but it left basic questions unanswered:

• How does a home’s ‘days on market’ impact reductions?
• Can a buyer get bigger reductions on more expensive homes?
• Does the available inventory affect price reductions?

In this article, we’ll drill into the statistics and get some answers. Read the rest of this entry »

Posted by Bruce Lemieux | 2 Comments »

The Grand Canyon can separate buyer and seller expectations

January 31st, 2009 Categories: Buying, Selling

Two very different perspectives

Buyer: The market hasn’t been this bad in 50 years – everything is totally overpriced

Seller: My house is special. My house is unique.  My house has a high value.  I’m not giving it away.

Right now in Montgomery County, the gap between buyers and sellers can be like the Grand Canyon.  Who’s on the right side? The answer is somewhere in the middle.

Good News for Buyers – Our Market is Relatively Strong

How can a strong market be good for buyers?  The lower the price the better, right? Read the rest of this entry »

Posted by Bruce Lemieux | 5 Comments »

Got ghosts? One thing a home seller isn’t required to disclose in Montgomery County

January 13th, 2009 Categories: Buying, Selling

Home sellers in Montgomery County, Maryland have to disclose a lot.  They have to tell prospective buyers about any roof issues, plumbing problems, presence of lead, current taxes, estimated taxes, easements located on the property, and more… much more.  Starting in 2009, home sellers must also disclose their energy consumption. When energy costs soared and gas hit $4 a gallon (remember those days?), the Montgomery County Council conceived legislation that would require sellers to perform a complete energy audit before listing a home.  Given the impracticability of implementing this legislation, the final bill only requires sellers to disclose past energy usage.

Disclosures are a good thing that protect the buyer and the seller.  In Montgomery County, the disclosure package is a daunting stack of paperwork that attempts to cover every scenario.  Is this new disclosure worthwhile?  I believe a buyer should view this information with a critical eye.  A home’s energy usage can be a better reflection of the homeowners’ lifestyle than its energy efficiency.  The buyer’s home inspector’s assessment on the efficiency of key systems (furnace, A/C, windows, insulation, water heater and appliances) should also be considered when evaluating a home’s energy efficiency.

So what’s this got to do with the presence of paranormal activity in a home? For exasperated home sellers who cry out loud “Could I possibly be required to fill out another form to sell my home?”, take heart.  We don’t have a form that requires you to itemize the presence of dead clowns, unspeakable evil or other paranormal entities that reside in your home like in the following video.  Still, if you hire us to sell your home, we would really appreciate a “heads-up” so we are adequately prepared to answer any questions from buyer agents who show your property.

Posted by Bruce Lemieux | Leave A Comment

How low do you go when buying in Montgomery County?

January 11th, 2009 Categories: Buying

All purchase offers should be really low. This is the common sentiment with most buyers in Montgomery County.  Sellers are discounting homes 10%, 20%, 30% or more, right?  Banks are desperate to sell their homes, aren’t they?  In such a bad market, sellers are happy to get any offer, so a buyer should always offer way less than asking price…. right?

Well, not necessarily.

Buyers should first understand that a home’s list price has no direct relationship to a home’s current market value.  The best way to gauge a home’s value is to look at recent, comparable sales – not the list price.  Most sales prices are reduced from asking price.  However, you may be surprised that many sellers are getting close to asking price… or more. Read the rest of this entry »

Posted by Bruce Lemieux | 1 Comment »

Top 5 things NOT to do when making a low offer

November 24th, 2008 Categories: Buying

Every purchase offer is a good offer — definitely better than the offer that was never made.  “Low ball” offers have their special challenges.  As a buyer, you increase your odds of success by following some basic guidelines.

Don’t talk-down the house. “We would offer more, but the wallpaper is horrible, the kitchen is a disaster and the lot is not very nice”. How do you think the seller will react to this message?  The potential buyer just trashed the seller’s home, so the seller doesn’t like the buyer already.  “If they hate house so much, Read the rest of this entry »

Posted by Bruce Lemieux | 1 Comment »