Bethesda MD Archives - Page 6 of 6 - Real Estate News and Commentary

December 30, 2006June 27, 2019

Corporate Relocation Made Easy

One of the top reasons for people to move to a new city is because of job relocation. Moving is not always easy, but relocating your entire family to a new city is especially a huge endeavor that requires lots of planning and assistance.

Whether you decide to relocate thirty miles away or 2,000 miles away, it is always overwhelming. One of the first things you may want to do is find out about the town you plan to live. There are many relocation resources online that can help with your planning. Websites such as Relocation Essentials (relocationessentials.com), or Home Fair (homefair.com) offer community information, school information, planners, demographic statistics, and city virtual tours.

Additionally, you may want to talk to a local Realtor in the new town , as well as friends, family, and even your Professional association to learn about the town from first hand experience. Networking can help with assisting with family needs that are not offered in your relocation package.

Another item you should be familiar with is your corporate relocation benefits. Although many companies offer a relocation package, benefits vary from one company to another. Most companies contract with a relocation company to handle relocation requests. The terms of your relocation package may vary depending on the level and tenure of your employment as well as the distance of your relocation.

Although, most relocation companies allow you to choose the real estate professionals you want to work with including Realtors, some do not. So, before you sign the listing agreement with your favorite Realtor, ask the relocation company if there are any restrictions.

Common elements of a typical relocation package include a moving allowance, closing cost help, and a buyout. Whether you are moving across the country or across town, it is not cheap and depending on the terms of your package, a moving allowance can pay for the entire cost or just provide you with a stipend. Additionally, you may be required to use a specific moving company. If not, compare reputable moving companies to see which one will be best for you.

Another common element of a relocation package is closing cost assistance. Corporate America knows that relocation is not cheap and one of the large expenses is purchasing a new home. To lure top prospects, some relocation packages offer special financing including paying all closing costs. Most relocation packages offer a stipend that may cover most of the closing costs. As lender requirements vary, make sure your lender will allow any relocation stipend.

Many companies offer a corporate buyout as an additional benefit to your relocation package. The buyout is actually performed by the relocation company that your company contracts with, and is a guaranteed sale at price that is determined by the relocation company. Depending on the terms of your relocation package, you are usually allowed to attempt to sell your home before it is bought by the relocation company.

If you are relocating for a new position within your company, you are restricted to the terms of your current relocation benefits package. However, if you are relocating because of a position with a new company, you can attempt to negotiate a custom relocation package that will offer the services and financial assistance necessary to make the move easier.

by Dan Krell

October 14, 2006December 13, 2022

Landlord tips for the investor

The real estate market in the Metro DC area has broken sales records for the last few years. Each year sales numbers and average home prices surpass the previous year by a wide margin. Besides the many home buyers who are buying homes for their own families to inhabit, there are the devout few who are always on the lookout for a bargain home to turn into a rental property. They are looking for landlord tips.

With home sale prices rising seemingly as fast as a jet taking off the runway at Reagan National Airport, it may be a wonder how, or more appropriately why, investors buying homes for rental properties.

Serious investors are a remarkable breed. They come from all walks of life and socioeconomic backgrounds. Although they have a diverse background, their one commonality is accumulating wealth. The goal for the average investor is to accumulate real estate and sit on it as the value appreciates. The payoff for the investor is when they sell off their assets and retire.

This over simplified and brief article is an overview of some difficulties that most real estate investors encounter. Some of the difficulties that many real estate investors encounter are tenants, maintenance of the property, and cash flow.

Finding good tenants to rent your properties is essential for success. A good tenant is described as one who pays in a timely manner and who will treat your home as if it was theirs. To find tenants, you can advertise in the local papers for tenants, subscribe to placement companies, or hire a professional management company to do all the work for you. The best tenants usually come by referral.

Some landlord tips include (but not limited to) making sure the prospective tenants have good references is essential. One way to do that is to ask them for a recent copy of their credit report, which would report any past delinquencies. Rental companies usually report delinquencies and non-payments to credit reporting companies like Equifax, TransUnion, and Experian. If they do not have a credit report, some investors accept references from past landlords.

Once your rental property is leased, it is important to keep it maintained. Good tenants will usually do the basic maintenance for you. If things go wrong, however, it will be up to you fix the problem. It never fails, the emergency calls will come in the middle of the night or while you’re on vacation. You will need to respond to the emergencies fairly quickly as you build your relationship with your tenants.

The most important issue with a rental property is cash flow. Cash flow is the perpetual incoming of cash so the mortgages and other real estate related expenses can be paid. Cash flow can be positive or negative. The goal with cash flow is to at least come out even, as most investors bank on the appreciation of the property itself for wealth building.

To help overcome the pitfalls of owning investment properties, some investors hire professional management companies. These companies can help find quality tenants, collect rents, and maintain the property. As the art of being a landlord is becoming legally complex, the management company and a good attorney can help you through the difficulties. Landlord tips come at a premium, and usually through experience.

Anyone that is serious about beginning a career as a real estate investor should attend classes and find out more about the field to make an informed decision. As a real estate investor, you will find that there are many complex issues that require experience and support. However, once mastered, it can be very rewarding.

October 11, 2006April 20, 2019

Searching for your home on the internet

Most home buyers do the internet home search. These home buyers are either looking at websites to find homes that are still on the market, or are receiving listings from their Realtors by e-mail. This is no different with my clients. Clients that I work with always find a discrepancy or two on the homes that still say “active” (meaning they are available to see and place an offer). Sometimes the home that is marked “active” will actually be under contract, or “off the market” for one reason or another. The question that is asked is, “if the home is no longer available to show, why is the status still active?”

That is a very fair question. The answer lies in several factors. The first factor is the technology itself. The second factor lies in procedure and etiquette for entering information in the Multiple List Service (MLS). The third factor is human error.

Many Realtors and Brokers have web sites where home buyers can search for homes that are for sale. You can get an idea of the abundance of these sites by going to an internet search engine and type in “home search Silver Spring.” The thousands of sites that exist all are run by different forms of technology. Although these websites pull information from the local MLS, the nature of the software running the websites will update the listings at different times. Some websites are actually a day or two behind the actual MLS. So, a home showing “active,” may actually be under contract.

Some internet home search websites are updated sooner than other websites, however, some are easier to navigate. If your desire is to find the home and jump on it before anyone else, relying on internet listings is not the way to go.

So much for technology. How about the human element? Realtors inputting information into the MLS also must follow a precise procedure and etiquette. The reason for the procedures is to ensure the accuracy of the information. A Realtor must input their listings within twenty-four hours of obtaining the listing, and must input all subsequent information accordingly. When the status for a home changes, such as having a contract or settling, the Realtor must input this information as well. It gets a bit sticky when the Realtor is working on final negotiations for a contract, but the contract has not been ratified. There is no contract yet so the status can not be changed. The Realtor won’t change the status until the final signatures are on the contract, and this limbo time will create some confusion and frustration for some home buyers and Realtors.

The final reason for discrepancies to exist is human error. There are times when the listing agent (Realtor who represents the seller) will forget to change the status of the home. This is mostly unintentional, however, it does add to the home buyer’s frustration.

The internet home search is helpful, fun and convenient. It is not perfect. Before running out to look at the home of your dreams, make sure it is still available by asking your Realtor to check the status. This will reduce your frustration and make home buying a more pleasant experience.

This column is not intended to provide nor should it be relied upon for legal and financial advice.

October 11, 2006October 4, 2019

Selling your home FSBO

When the real estate market is good, many people try to sell their home without a Realtor. These For Sale By Owner (FSBO) sell their homes on their own for one reason-to save money on Realtor commissions. However, before embarking on such an endeavor, one should take an inventory of the pros and cons of becoming a FSBO, as well as the tools necessary to sell FSBO.

The obvious reason to sell your home FSBO, as stated above, is to save on Realtor commissions. Seasoned real estate investors may find it natural to sell a home FSBO because they control the communication as well as being able to communicate directly with potential homebuyers. First time FSBO’s may find it a bit awkward at first, but can find the rhythm necessary to complete the transaction.

How much money can you realistically save? Traditional Realtor commissions have always been around 6%, which pays the listing (homeowner) agent and the selling agent (homebuyer). However, in the last few years, there as been a trend of reduced commissions, so actual savings for a FSBO have been reduced. I have seen Realtors list a home for 4% (if you don’t believe it, send me an e-mail)! Additionally, FSBO’s are contracting and paying commission with more Realtors and their homebuyers in this environment of limited home inventory. In the end, the FSBO’s savings from Realtor commissions may be marginal.

You might think that saving money outweighs all negative aspects of selling your home FSBO. However, there are some real negative aspects of selling your home FSBO, such as time, expense, and contractual obligations.

How much is your time worth? Selling a home requires the application of time to tasks. Among the many tasks of selling a home, the top things that a FSBO may do include (and is not limited to) preparing the home for the open house, contacting the paper to advertise, putting up signs, meeting potential homebuyers, and negotiating contracts. The time quickly adds up.

Selling your home FSBO is supposed to save you money right? Well, there is a bit of expense that is necessary. A FSBO must have signs in the yard, as well as directionals (the small arrow signs) to point homebuyers in your direction. Additionally, you might consider paying the local paper for advertising, as well as paying for an internet advertisement (although there are many websites that will allow you to post for free). Another expense may be to have your attorney to review the contract to make sure it is legal and enforceable. It seems that the expenses also quickly add up.

Selling your home FSBO relieves you of certain responsibilities under the law right? Wrong. The most important thing a FSBO forgets to check is the law. That’s correct, even FSBO’s are responsible to adhere to certain federal and local laws pertaining to the sale of real estate (i.e., equal housing, lead paint, Maryland disclaimer-disclosure). This is the one area that FSBO’s get themselves in trouble because of the lack of knowledge and expertise. There is an increased liability potential.

FSBO sales are steadily increasing in the community. However, if a home owner actually does a cost analysis they may find that selling FSBO may actually not be saving them money, and actually may put them at a higher liability risk because of the lack of information and knowledge of the law. So, before you sell your home FSBO, do your homework and consult a professional.