About Dan Krell

March 24, 2010July 25, 2019

Home Listing Photos: revealing more than ever

If you’ve been looking at home listings online, I’m sure you’re drawn to the photos. In an effort to distribute information to agents and consumers, the real estate industry has embraced cutting edge technologies that include embedding photos in home listings. Multiple photos and virtual tours can make it seem as if you are actually in someone else’s home, but sometimes the pictures (or lack thereof) can be more revealing of a home’s shortcomings.

Nothing helps a home sale more than multiple quality photos in the listing. The photos help home buyers see the home from the convenience of their office or family room. Both the exterior and the interior can be viewed without actually visiting the home. Realtor Magazine (published by the National Association of Realtors) has published many articles on the importance of using multiple photos in home listings and marketing to help them sell faster. If your home is on the market (or you are thinking of listing it soon) take note of this April 2nd, 2008 article (“How Photos Help Sell Homes”) which indicated that the days on market is drastically reduced when there are multiple quality photos: “A property with a single photo spent 70 days on the market (DOM) on average, while DOM fell to 40 with six photos, 36 with 16 to 19 photos, and 32 with 20 photos…” The same article also reports that your home will probably sell for more if your agent posts multiple quality photos compared to posting only one photo; “listings with one photo sold for 91.2 percent of the original price, while homes with six or more sold for 95 percent of the original price…”

Although you might think that with the availability of technology allows having multiple quality photos to be standard practice among real estate agents, either through hiring a professional photographer or taking the photos on their own. The fact is that many agents still do not take advantage the technology (for various reasons).

What’s more troubling than not having photos in your listing is having exaggerated photos in your listing. Yes, some agents go to the opposite extreme of using photo editing software to “stretch” the truth in their photos. Some try too hard to emphasize features such that the photos look bizarre and occasionally cartoon-like. Although Article 12 of the National Association of Realtors Code of Ethics states that “Realtors shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations…”, it is becoming more common to find embellished photos.

Home buyers are savvy and can spot “enhanced” photos, often wondering what is being hidden in the photo. Like the listing without photos, home buyers generally skip those listings where they encounter “enhanced” photos. A common complaint from home buyers is, “the rooms look larger in the virtual tour.”

If you’re planning to list your home, make certain that your listing agent uses the technology available to them to give your sale every possible edge; but make sure there are no extra “enhancements” that may turn buyers away. The bottom line is that your sale has a higher probability of attracting home buyers when you have multiple, high quality, and accurate photos of your home.

This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.

March 17, 2010June 28, 2019

HAFA – a misunderstood program

As April 5th approaches, everyone is excited about the official start of the Home Affordable Foreclosure Alternatives (HAFA) program. HAFA is a major development to curb the number of foreclosures by allowing home owners the opportunity to sell their home through the short sale process. Many incorrectly misunderstand the program to approve all short sales; however, it is a measure to facilitate lenders’ loss mitigation processes (the process that lenders use to determine the manner in which to dispose of property and lose the least amount of money) that includes short sales, deed-in-lieu (of foreclosure), and foreclosure.

To provide assistance to financially challenged home owners, the Making Home Affordable program (MHA) was announced February 2009. The program was devised to assist eligible home owners retain their homes by either mortgage modification or refinance. HAFA was introduced in May of 2009 to provide structure to the seemingly convoluted loss mitigation process (www.treas.gov).

You probably already know that a short sale occurs when a home owner sells their home for less than what they owe their lender. In a short sale, the lender is asked to give their blessing and to “forgive” the difference between the sale price and what is owed. Home buyers often seek out short sales as a means of purchasing a “bargain” priced home. Unfortunately, the traditional short sale is typically a lengthy process that is full of pitfalls; but for patient home buyers the short sale is worth the wait.

On average, it is not unusual to wait 2 to 4 months to receive third party approval for a short sale; some short sale approvals can take much longer. Reasons for lengthy waits for short sale approvals are complex and varied, but may be due to (and not limited to) consultations with bond holders (of mortgage backed security within which the loan was pooled), a vast backlog of files, and the loss mitigation process itself.

The HAFA program is intended to reduce the cost and impact of foreclosure to lenders as well as neighborhoods. The program allows the home owner 90 days (or more depending on the market) to procure a buyer for their home at a sale price that is set by their lender; this allows a home buyer to purchase the short sale without waiting months for a short sale approval. If the short sale period ends unsuccessfully, the home owner must give the home back to the lender via a deed-in-lieu.

Foreclosure proceedings are allowed to coincide with the short sale, however the foreclosure sale is deferred until the short sale process is concluded. Monetary incentives are given to participating lenders as well as to home owners who adhere to the program until its fruition. Eligible home owners will be accepted into the HAFA program until December 31, 2012.

Since HAFA will officially begin in a few weeks, information is being provided through many outlets. It is understandable that some of the information provided is incorrect and/or sensationalized. To qualify for HAFA, the home owner must be eligible for MHA (mostly, loans that have been bought by Fannie Mae or Freddie Mac) but either did not qualify for a modification or was unable to complete the process. If you are unsure of your eligibility, program guidelines, and additional information, check with your lender and/or the Making Home Affordable website (www.makinghomeaffordable.gov).

This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.

March 15, 2010October 5, 2019

Extending Foreclosure Protections for Members of Armed Services

by Dan Krell © 2010

Extending foreclosure assistance for active duty service members
As concerns over increasing foreclosures throughout the country, foreclosure assistance and relief for active members of the United States Armed Services that was included in H.R. 3221: Housing and Economic Recovery Act of 2008 is set to expire December 31, 2010. In response and support for those who are actively serving, Rep. Thomas Perriello (D-VA)introduced legislation October 29, 2009 to extend foreclosure assistance for active members of the U.S. Armed Services.

H.R. 3976: Helping Heroes Keep Their Homes Act of 2009 to extend those protections to expire December 31, 2015 was introduced October 29, 2009. The bill is still alive in Congress and calls for the “Extension of enhanced protections for servicemembers relating to mortgages and mortgage foreclosure under servicemembers civil relief act (section 2203(c)(2) of the Housing And Economic Recover[Y] Act Of 2008 (public law 110-289).”

The bill was last reported by Committee on March 4th and recommended to be voted on by the house. If this bill becomes law unamended, current protections for foreclosure relief for members of the Armed Services would be extended to the end of 2015.

March 13, 2010June 27, 2019

Fabulous New Bethesda Home – Backs to Country Club Fairway

UPDATE: SOLD!
This new contemporary colonial is of note because it backs to fairway of Bethesda Country Club (Country Club membership is NOT Included in sale).

The interior features an open functional floorplan that utilize natural lighting for accent and dramatic lighting depending on time of day. All the amenities one expects from a new home: Gourmet kitchen, 3 car garage, finished lower level, soaring ceilings, lots of natural light, energy efficient features, nice size lot in sought after Bethesda neighborhood.

MC7270829 Sold!

Fabulous New Home
Did you know that the Bethesda Country Club was a top rated Maryland golf course by Golf Digest magazine (2005-2006). The club also hosted the LPGA Championship from 1990-1993.

Interested in more information about Bethesda, MD? Here is a great article about the history and other information Bethesda. More information about Bethesda, MD

UPDATE: SOLD!

March 10, 2010October 5, 2019

Bubble market or solid economic fundamentals: Lessons we can learn from the Canadians

by Dan Krell © 2010

Bubble housing markets occur when real estate markets, either local or regional, are overvalued. The cause of bubble markets is often debated, as has been hotly argued in recent times, to be the cause of speculation and/or credit policies.

There are several real estate markets that have rebounded much faster than most such that they are in danger of becoming bubble markets. Some economists rank the real estate markets in China, Australia, and Canada as having the highest risk of becoming the next busted bubble market. Because of Canada’s close proximity and similar real estate market, we’re compelled to take a closer look.

Canada’s equivalent to the Federal Reserve Bank is called the Bank of Canada (www.bank-banque-canada.ca) and much like the Fed, the Bank of Canada is a central bank that offers advice on monetary policy. The Deputy Director of the Bank of Canada, Timothy Lane, PhD, offered his analysis on the current situation that is occurring in Canada’s real estate market in a speech given on his behalf on January 11th, 2010.

Although Dr. Lane’s speech was delivered by an advisor, in what may seem like a déjà-vu to Americans, there was somewhat of a denial of a bubble market. The Deputy Director maintained that fundamentals of the Canadian market are intact, such that recent increases in home prices are not unusual for supply and demand economics. As Canadian housing starts are below the target to meet population growth requirements, the Deputy Director made clear that inventories were diminishing as well.

Although Dr. Lane’s opinion is that housing bubbles are fueled by credit expansion, and that recent growth in the Canadian housing market is due to low interest rates and pent up demand. Mr. Lane pointed out that the Canadian housing market was not as turbulent as the market in the United States because Canadian home price appreciation was not as steep. The resulting turbulence manifested in sharp declines in American housing, while Canadian housing fared much better.

Similarities between the current Canadian housing market and the U.S. market prior to the global recession includes: historically low mortgage interest rates, reduced inventory, and increased real estate speculation. The role of increased real estate speculation is of interest because it is not only the domestic investors fueling the Canadian market, but foreign investor looking for large gains.

However, fundamental differences also exist between the markets. Dr. Lane pointed out that the Canadian mortgage system is inherently different than its counterpart in the U.S. Canadian mortgage guidelines are written primarily by mortgage insurers because mortgage insurance is compulsory for mortgages with less than a 20% down payment. Additionally, about 70% of Canadian mortgages are held by the lending institution (rather than becoming securitized) forcing the lender to make more responsible lending decisions.

Deputy Director Lane’s summation was that the Canadian housing market requires “vigilance, but not alarm.” However, they may not have much choice but to ride out market disturbances because any intervention may stall the recovering Canadian economy in a global recessionary environment.

Time will tell whether the Canadian real estate market is a bubble waiting to burst, or just a manifestation of solid economic principles. Either way, we will learn whether prudent mortgage policies can play a part in mitigating future real estate bubbles here in the U.S.

This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of March 8, 2010. Using this article without permission is a violation of copyright laws. Copyright © 2010 Dan Krell