Why Hyattsville Real Estate Blog

Bank Owned, Foreclosures and Short Sales, Oh My!

If you have turned on any news program in the last year, you have heard about the rising amount of Bank Owned, Foreclosure and Short Sale properties for sale.  Or as I call them BOFSS.  (I just coined that phrase so if it turns up anywhere else, just remember it started here).  In many cases it is tragic that home buyers were given bad loans they didn't understand and are now losing their homes.  In other cases it is poetic justice that home buyers lied about their income and over extended themselves and are losing their homes.  Regardless of how it happened, BOFSS are now a part of the home buying arena.

BOFSS are in every sector of the market, million dollar mansions, five hundred thousand dollar condos and two hundred and fifty thousand dollar starter homes.  Many home buyers are actively pursuing BOFFS because they expect to get a deal of a lifetime.  While that can be true, I think the real opportunity is for homes that are not BOFSS but are in neighborhoods that have BOFSS.  For example, when you submit an offer to a bank for a BOFSS home, it can take the bank up to 90 days to give you an answer yes or no.  A non BOFSS home will usually give you an answer in 24 hours. 

Once a BOFSS home accepts your offer, they start doing the research on the home and can come back to you at any point and say they changed their mind and want more money.  When a non BOFSS home signs a contract it is legally binding and cannot be changed. 

When you negotiate with a BOFSS home you are negotiating with a banker who does not care at all if he sells the home.  When you negotiate with a non BOFSS home the seller cares a great deal about selling the home and is willing to make concessions to get the deal done.

Sellers that are surrounded by BOFSS have lowered their prices and are ready to make a deal.  So if you are thinking about buying a home, you can still take advantage of Bank Owned, Foreclosure and Short Sale homes without even buying one.

It's Million Dollar Monday! The NFL Draft Addition

This weekend was the NFL Draft.  Hundreds of Collegiate stars made the jump to professional status.  The Washington Redskins selected Devin Thomas of Michigan State, Fred Davis of USC, and Malcolm Kelly of Oklahoma with their first three picks.  Needless to say, Michigan, Southern California and Oklahoma are a far drive from FedEx Field in Landover, MD.  My suggestion for these soon to be Pro Bowlers is to buy a home with their big signing bonuses.

I have selected three extravagant homes in three of Maryland's finest neighborhoods near FedEx Field.  The first is 12506 Pleasant Prospect Road in Bowie, MD.  This home has a list price of $1.25 million and sits on two acres of land in the gated Woodmore community.  The Cribs photo tour. 

The next home is 12501 Haxall Court in Fort Washington, MD and priced at $2.75 million.  This home in the Tantallon on the Potomac neighborhood is just minutes to the new National Harbor project plus it backs to the water so feel free to splurge on a large boat or mulitple jet skis. The Cribs photo tour. 

The last home is 131220 Croom Road in Upper Marlboro, MD.  Priced at $1.755 million this home has a guest quarters for your entourage, a media room for studying game film and an indoor swimming pool to stretch tired muscles after games.  The Cribs photo tour.

Open House (Party) Sunday 1-4pm Hyattsville Victorian

This Sunday I am holding an Open House (Party) at my listing on 4305 Gallatin Street in Hyattsville.  I like to call it an Open House (Party) because I am inviting all of my friends, neighbors and readers to stop by the home.  Much like a Professor, consider 1-4pm my office hours.  This completely rebuilt home on Gallatin Street might not be for you(it probably is, though. It's an awesome home.) but you might know a friend who is looking or will be able to give us some great feedback to make the house even better.  So if you are a diligent reader of the blog and we have never met, come out on Sunday and introduce yourself.  I would love to see you.

Downtown Living

Check out this new first time home buyer condo in downtown DC.  Three words describe this home: Location, Location...Rooftop Pool. You thought I was going to say Location again didn't you?  And yes I know that Rooftop Pool is two words.  Actually it's three words but Roof and top are squeezed together.  Let's focus on what's important, this awesome condo.

Full Listing, Photos, Map 

Address: 1420 N ST NW #904, WASHINGTON, DC 20005
Price: $279,000.00
Bedrooms: One
Bathrooms: One
Amenities: Updated Kitchen and Bath, Walk In Closet, Wood Floors, Pet Friendly, Rooftop Pool, Parking Space
Neighborhood Convenience: Whole Foods on P Street. - 0.3 miles
Metro: McPherson Square Metro Station - 0.5 mile
Farragut North Metro Station - 0.8 mile
Dupont Circle Metro Station - 1.0 mile

Estimated Monthly Payment w/10% down:	$2,038.00
Estimated Monthly Tax Rebate and Principal Savings	$665.00
Estimated Rental Comparison Payment:	$1,373.00

I P.I.T.I the Fool Who Pays Rent

Most people can't afford to buy a home, as Randy Moss put it, with "Straight Cash, Homey".  If you don't have cash don't worry there are banks that will lend you the money as a mortgage.  Traditional mortgages are amortized over thirty years.  An amortized loan means you pay the majority of the interest in the first half of the loan and the majority of principal in the second half of the loan.

A mortgage payment is broken down into four parts. P.I.T.I. - Principal, Interest, Taxes and Insurance.  Let's breakdown a hypothetical $2,000.00 a month mortgage.

$275.00 Principal
$1,350.00 Interest
$275.00 Taxes
$100.00 Insurance

Let's focus on the P and the I.

$275.00 a month goes to principal - A principal payment is similar to making a deposit in a savings account.  It lowers how much you owe on the loan and when you sell the home, you get that money back in proceeds.
$1,350.00 a month goes to interest - Similar to paying rent, this money is just lost.  It is a cost of doing business.  Interest,  however is tax deductible.  If you estimate high and say that you are in the 33% tax bracket and multiply that by your monthly interest you get how much money you save per month by owning vs. renting. For example: $1,350.00 x 33% = $445.50 a month in tax savings.

In this hypothetical mortgage, you are saving $720.50 a month by owning instead of  renting.  If I were you, I would take that $720.50 and go on an all inclusive vacation to the Caribbean, but that is just one suggestion.

The e Generation - Making Green by going Green

This weekend I attended the e Generation Conference: entrepreneurship and the environmental renaissance.  I've been to numerous business networking conferences before, but this was the first that there was an idealistic goal higher than, "Let's start a company, have an IPO, get rich, move to Fiji and buy a big house".  The vast majority of the panelists created their businesses with the goal of environmental sustainability.  This Triple Bottom Line approach is an exciting way to be an entrepreneur.

Some of my favorite paraphrased quotes/concepts from the conference:

"A maniacal focus is necessary to have success" Doug Joss

"Business acquisitions are taking a longer time to close, and buyers are more frequently getting cold feet" Andrew J. Sherman - This quote is so true in real estate purchases as well!

"If something is going to win out, it's probably going to be the sun" Jean-Luc Park - Regarding the abundance of Eco-friendly energy options.

Green Washing and Trash Mining

There were also a lot of very cool Green Vendors that I will discuss in depth in future posts.

It's Million Dollar Monday! - Mount Pleasant

The weekend is over and it's back to the day job.  Aside from an unprecedented four hour dinner, sangria, more sangria and second dinner at Jaleo in Bethesda on Friday, I worked all weekend.  There were homes to show and I attended an awesome business conference put on by the Robert H. Smith School of Business called "e Generation - entrepreneurship and the environmental renaissance" (more to come tomorrow).

Today's million dollar home is in the Mount Pleasant neighborhood.  The five bedroom and three and a half bath home at 1726 Lanier Place NW has a list price of $999,950.00.  I know what you are saying, "Technically, that is not a Million Dollar Home, Greg."  Well you are right to think that, but frankly it is a little rude for you to point it out.  Such insolence makes me want to crumble up a fifty dollar bill and throw it at you.  Then walk away real slow like in the movies, light up a cigar and say, "Keep the change you filthy animal."  I digress...

This neighborhood is known for among other things a great bus system, close proximity to the 18th Street Adam's Morgan night life, plus the new Harris Teeter grocery store.  Let the photo tour dazzle you.

   

I am officially a Professor at the Smith School of Business

OK the title to this post may not be 100% true.  The Washington Improv Theater has a fantastic WIT On The Job program.  Our instructors will come to your business or organization and teach how Improvisational skills will help you improve public speaking, communication, leadership, working as a team and executing plans.  This week we received a call from the Robert H. Smith School of Business.  The MBA program at the Ronald Reagan Federal Building is a satellite location of the University of Maryland.  One of the courses they teach is Implementing Strategy, which involves improvisation in business. 

As I am an alumnus of the University of Maryland, I felt it was my duty to give back to the academic community.  Last night, I led the class through an Ice Breaker and two Improv games that focused on listening, team work, recognition and imagination.  The first game called Story Telling started with the director(myself) saying, "Once upon a time..." and then pointing at a student.  That student then begins telling a story. The director then points to another student who has to continue the same story. This exercise is great for listening because you have to listen to what your fellow students/coworkers are saying in order to tell the next part.  The second game called Yes And begins by having one student tell a second student a declarative sentence.  The second student has to listen to the sentence, agree with it, then heighten the statement.  This exercise benefits business managers who must listen to the suggestions of coworkers, understand the suggestions and then offer constructive criticism/implementation.  For example:

Student One: "You are wearing a lovely shirt"
Student Two: "Yes it is lovely, and it only cost me $10,000.00!"

I love watching people go through Improv exercises in a format outside of a traditional acting class.  There are some students who are ready to break out and really go for it, while others tend to stay in their shell.  (UMD Terrapin pun, anyone?) Regardless of the immediate comfort level Improv training teaches fantastic lessons for business professionals.  If your business or organization could benefit from better communication while having a fun time, contact me over email for more information about WIT On The Job.

This Blog Will Save Your Life...

OK, maybe not save your life but at least help you make more sound real estate based financial decisions.  Yesterday, I received this email from a reader regarding a post where I debunked a Craigslist roommate scam.

Hi Greg, Thank god for your site.....
This guy Kyle R Klein Mailed me with the same B.S he/she gave you I was actually considering him/her to be my roommate but one of my friends checked his name and this is what she came up with your website..... I can't thank you enough for saving me from this disastrous mistake!!!!
Sincerely, Erajni

Your welcome Erjani.  When I became a Realtor I took an oath to be trustworthy, loyal, helpful, friendly, courteous, kind, obedient, cheerful, thrifty, brave, clean and reverent.  Wait, that might have been when I became a Boy Scout.  Regardless, I'm glad you didn't get scammed.

Victorian Renovation

It is undeniable that old homes have charm.  Victorians, bungalows and cape cods have a certain feel that you just don't get in new colonials and split levels.  Old homes, however often have old electrical or plumbing systems and a lack of the modern comforts we demand.  My listing at 4305 Gallatin Street in Hyattsville, Maryland has the best of both worlds.

The original, Victorian home was built in 1909.  In 2001, a fire destroyed the home down to the foundation.  The current owner is a contractor who bought the home and rebuilt it to represent its original grandeur.  The home boasts many of the features of Victorian architecture like a large front porch and tall ceilings, yet has new electric, plumbing, heating and air conditioning.  This home is perfect for someone who loves the feel of an old home but doesn't want any of the head ache.  The home is priced at $549,900.00.

Listing, Map, Photos