According to the MRIS (Multiple Regional Information Systems, Inc), the following real estate transactions have taken place in Georgetown real estate during the week August 2 - 8.
4 new listings: 2 Single Family (SF) ($815,000- $1,200,000) and 2 Condo/Co-op (C/C) ($559,000 - $875,000)
4 properties came under contract: 4 SF ($829,000 - $1,095,000) and 0 C/C
2 properties went to closing during this time frame: 0 SF and 2 C/C ($588,885 - $2,100,000)
8/09/2010
Want to sell a house? Start a business...
Whoever talks about the real estate market these days almost always talks about jobs. The uncertainty in the job market has more impact on housing than any other single factor with which we are dealing. People who don't have jobs, who are afraid of losing a job, or don't see any salary increases on the horizon, are not likely to buy a house. Those who are particularly afraid are those at the entry level, and until these folks are feeling more secure, and begin to buy their first homes, those further up the line (2nd, 3rd, and 4th homes) have no one to sell to.
Here is an interesting article about job creation by startup businesses. If each of us selling a house could start a business we'd be in gret shape.
Aug 03 2010 3:34pm EDT
Startups Vital to Job Creation
Startups are an even more important source of long-term job growth than previously thought, according to a new study by the Kauffman Foundation.
Previous research by Kauffman established that startups are responsible for all net new job creation in the U.S. economy. But since many startups fail, economists believed many of the jobs they created evaporated as well. A new study by Kauffman, however, found the startups that survive create enough additional jobs to make up for a lot of the jobs that are lost when unsuccessful ventures close.
Kauffman used census data to look at how startups founded in 2000 fared five years later. In 2000, startups created just over 3 million jobs. By 2005, half of these startups were still in business, and they employed more than 2.4 million people, about 78 percent of the total employed by all the startups in 2000.
The organization looked back at startup statistics dating back to 1977, and found that 20 percent of startups survive for at least 25 years. At this point, these survivors employ about 68 percent of the total employed by all the startups in the year of their founding.
The fact that the number of surviving startups shrink much faster than their employment numbers shows that the survivors keep growing, even as they mature.
Charles Darwin would be proud: Evolution works in business, as well as in biology. The fittest firms survive, and continue to create jobs.
Even firms founded in difficult times, such as today’s weak economy, can expect to catch up with other firms in terms of job growth, if they’ve got the right stuff.
“Starting a company during a recession adversely affects the new firm for only a limited time,” said study co-author Robert Litan, vice president of research and policy at Kauffman, a Kansas City-based organization that studies and promotes entrepreneurship.
“While a recession has a negative effect on a company’s employment in the first few years, a recession does not impose lasting consequences on startups,” he said. “By age five, these firms’ employment reaches roughly the same level as firms that were not started in recessions.”
So now is just as good as time as any to start a business -- if you can find the capital. Unfortunately, that’s currently a huge problem for many would-be entrepreneurs. Friends and family—one traditional source of capital for startups—don’t have as much money available to invest as they did before the 2008 stock market crash. Home equity isn’t what it used to be either.
Banks are hesitant to loan to startups unless an entrepreneur can put up a lot of collateral, and falling real estate values have made that harder as well. Venture capital firms began turning away from startups after the tech bubble burst a decade ago, and now even angel investors are putting more of their money in more established firms.
So what’s a poor entrepreneur to do? An increasing number are relying on credit cards. That’s an expensive form of capital, and an earlier Kauffman study found that startups with high credit card balances are less likely to survive than other startups.
Every $1,000 increase in credit card debt increases the probability a firm will close by 2.2 percent, Kauffman found.
Congress should pay attention to these Kauffman studies. Even though many startups fail, others survive and continue to grow, adding more jobs to the economy as time goes on. They need access to more than just credit cards, however, if they’re going to reach their job-creating potential.
Procedural disputes between Democrats and Republicans have delayed Senate action on legislation designed to get more capital into the hands of startups and other small businesses. It’s time for senators to do less political calculation, and more analysis on how the government can best foster another generation of startups, even in this weak economy.
Kent Hoover is the Washington bureau chief for bizjournals.
Read more: http://www.portfolio.com/views/blogs/capital/2010/08/03/small-business-is-big-boost-for-the-labor-market/?ana=e_pft%22%20%5Cl%20%22ixzz0vejkspXC
Here is an interesting article about job creation by startup businesses. If each of us selling a house could start a business we'd be in gret shape.
Aug 03 2010 3:34pm EDT
Startups Vital to Job Creation
Startups are an even more important source of long-term job growth than previously thought, according to a new study by the Kauffman Foundation.
Previous research by Kauffman established that startups are responsible for all net new job creation in the U.S. economy. But since many startups fail, economists believed many of the jobs they created evaporated as well. A new study by Kauffman, however, found the startups that survive create enough additional jobs to make up for a lot of the jobs that are lost when unsuccessful ventures close.
Kauffman used census data to look at how startups founded in 2000 fared five years later. In 2000, startups created just over 3 million jobs. By 2005, half of these startups were still in business, and they employed more than 2.4 million people, about 78 percent of the total employed by all the startups in 2000.
The organization looked back at startup statistics dating back to 1977, and found that 20 percent of startups survive for at least 25 years. At this point, these survivors employ about 68 percent of the total employed by all the startups in the year of their founding.
The fact that the number of surviving startups shrink much faster than their employment numbers shows that the survivors keep growing, even as they mature.
Charles Darwin would be proud: Evolution works in business, as well as in biology. The fittest firms survive, and continue to create jobs.
Even firms founded in difficult times, such as today’s weak economy, can expect to catch up with other firms in terms of job growth, if they’ve got the right stuff.
“Starting a company during a recession adversely affects the new firm for only a limited time,” said study co-author Robert Litan, vice president of research and policy at Kauffman, a Kansas City-based organization that studies and promotes entrepreneurship.
“While a recession has a negative effect on a company’s employment in the first few years, a recession does not impose lasting consequences on startups,” he said. “By age five, these firms’ employment reaches roughly the same level as firms that were not started in recessions.”
So now is just as good as time as any to start a business -- if you can find the capital. Unfortunately, that’s currently a huge problem for many would-be entrepreneurs. Friends and family—one traditional source of capital for startups—don’t have as much money available to invest as they did before the 2008 stock market crash. Home equity isn’t what it used to be either.
Banks are hesitant to loan to startups unless an entrepreneur can put up a lot of collateral, and falling real estate values have made that harder as well. Venture capital firms began turning away from startups after the tech bubble burst a decade ago, and now even angel investors are putting more of their money in more established firms.
So what’s a poor entrepreneur to do? An increasing number are relying on credit cards. That’s an expensive form of capital, and an earlier Kauffman study found that startups with high credit card balances are less likely to survive than other startups.
Every $1,000 increase in credit card debt increases the probability a firm will close by 2.2 percent, Kauffman found.
Congress should pay attention to these Kauffman studies. Even though many startups fail, others survive and continue to grow, adding more jobs to the economy as time goes on. They need access to more than just credit cards, however, if they’re going to reach their job-creating potential.
Procedural disputes between Democrats and Republicans have delayed Senate action on legislation designed to get more capital into the hands of startups and other small businesses. It’s time for senators to do less political calculation, and more analysis on how the government can best foster another generation of startups, even in this weak economy.
Kent Hoover is the Washington bureau chief for bizjournals.
Read more: http://www.portfolio.com/views/blogs/capital/2010/08/03/small-business-is-big-boost-for-the-labor-market/?ana=e_pft%22%20%5Cl%20%22ixzz0vejkspXC
8/06/2010
Georgetown Stats - week of July 26 - August 1
According to the MRIS (Multiple Regional Information Systems, Inc), the following real estate transactions have taken place in Georgetown real estate during the week July 26 - August 1.
7 new listings: 4 Single Family (SF) ($955,000- $4,000,000) and 3 Condo/Co-op (C/C) ($424,900 - $549,000)
5 properties came under contract: 5 SF ($939,000 - $1,525,000) and 0 C/C
9 properties went to closing during this time frame: 8 SF ($699,000 - $2,195,000) and 1 C/C ($369,000)
7 new listings: 4 Single Family (SF) ($955,000- $4,000,000) and 3 Condo/Co-op (C/C) ($424,900 - $549,000)
5 properties came under contract: 5 SF ($939,000 - $1,525,000) and 0 C/C
9 properties went to closing during this time frame: 8 SF ($699,000 - $2,195,000) and 1 C/C ($369,000)
7/28/2010
6 Ways to tell if your Realtor is lying.
The title did grab my interest. Unfortunately the title reinforces an untrue stereotype that Realtor's are liars. The writer seems either very paranoid, or simply very mean-spirited. Either way, her writing becomes suspect from the getgo. Her article is based on her research as to how to tell when people are lying. Maybe her research is accurate...I HAVE seen some of her "techniques" on a couple of TV shows about detectives who solve crimes by studying suspected criminals for signs that they are lying. Maybe this author lives in a fantasy world also.
In the real world, Realtors are easy to pick on. We are very public people and we put ourselves on the line every day in very complex situations. One of our prime skills is the ability to guide clients through the real estate purchasing maze. When our task is to help someone buy a house, we must sort through dozens of potential properties in numerous neighborhoods, make arrangements with listing agents to show the chosen properties, take our clients around to see the properties, help them evaluate each property for price, location and amenities, help them fill out the proper contract and disclosure forms, advise them as to which forms are critical to the process, help them understand how the process works, help them sort out the terms they want to offer an owner, negotiate the offer through the listing agent and owner, help our client understand whether a counter-offer is realistic or not, etc, etc...and then help arrange inspections, financing and settlement, handling the myriad details of all those processes.
An intimate business relationship is developed. This is an emotional time for most clients. There are plenty of things out of the control of either the client or the buyer agent, and as a result, plenty of opportunity for expectations not to be met. The Realtor is on the front line, and while she gets paid for the work, she also is the handiest and most intimate target for disappointments.
All the above is the truth and nothing but the truth... :)
7/23/2010
Home affordability at best level in 10 years
Thanks in part to interest rates continuing at all-time lows, home affordability in the U.S. remains near the most attractive levels in 10 years. In addition, HUD's Neighborhood Stabilization Program (NSP)has spurred local investment and is beginning to make affordably priced homes available to consumers.
The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury released the second edition of the Administration's Housing Scorecard showing:
Historic low rates continue to promote affordability: Families continue to benefit from the lowest rates in history on 30-year fixed mortgages. Since April of 2009, record low rates have helped more than 7.2 million homeowners to refinance, resulting in more stable home prices and $12.9 billion in total borrower savings.
Over twice as many homeowners helped compared to foreclosure completions: Nearly three million borrowers have received restructured mortgages since April 2009, outpacing the 1.24 million foreclosure completions for the same period. As more families are able to remain in their homes, household assets continue to rise with $1.1 trillion in home equity gained since April 2009.
Meanwhile, data in the scorecard show that the recovery of the housing market remains fragile; with some measures suggesting recovery will take place over time. For example, in May, sales of new and existing sales dropped after the expiration of the tax credit, and the supply of homes on and off the market remains near all-time highs; it will take time to work through this large inventory.
Complete Housing Scorecard available by clicking here:
http://portal.hud.gov/portal/page/portal/HUD/initiatives/Housing%20Scorecard
The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury released the second edition of the Administration's Housing Scorecard showing:
Historic low rates continue to promote affordability: Families continue to benefit from the lowest rates in history on 30-year fixed mortgages. Since April of 2009, record low rates have helped more than 7.2 million homeowners to refinance, resulting in more stable home prices and $12.9 billion in total borrower savings.
Over twice as many homeowners helped compared to foreclosure completions: Nearly three million borrowers have received restructured mortgages since April 2009, outpacing the 1.24 million foreclosure completions for the same period. As more families are able to remain in their homes, household assets continue to rise with $1.1 trillion in home equity gained since April 2009.
Meanwhile, data in the scorecard show that the recovery of the housing market remains fragile; with some measures suggesting recovery will take place over time. For example, in May, sales of new and existing sales dropped after the expiration of the tax credit, and the supply of homes on and off the market remains near all-time highs; it will take time to work through this large inventory.
Complete Housing Scorecard available by clicking here:
http://portal.hud.gov/portal/page/portal/HUD/initiatives/Housing%20Scorecard
7/20/2010
5 Real Estate Scams To Be Aware Of
This is of more immediate interest to Realtors than to non-Realtors, but is a fascinating look into the schemes unscrupulous people are able to come up with....
August 2010
Mortgage fraud is pervasive: An estimated $4 billion to $6 billion in annual losses result from mortgage fraud, according to FBI reports. “An entire community can be damaged by mortgage fraud,” says Rachel Dollar, a lawyer from Santa Rosa, Calif., and editor of the Mortgage Fraud Blog. Mortgage fraud can lead to a spike in foreclosures, home values plummeting, and lenders raising their rates and fees to recover losses.
The crimes are often complex, involving several parties and occurring over multiple transactions. To protect you and your clients, educate yourself about mortgage fraud and be on guard for any warning signs in a transaction. You can start by reviewing these five scams, and then test your knowledge by taking our Mortgage Fraud Quiz.
1. The Foreclosure Rescue Scheme
The Scam: “Rescuers” promise cash-strapped home owners that they can save their home from foreclosure. The rescue, which involves paying upfront fees, can take multiple forms, such as the perpetrator obtaining a new loan on behalf of the owner or by having the owner sign over the home’s deed and then rent the home until they can repurchase it. Eventually, the home owner loses the home, either to foreclosure or the fictitious rescue company.
Red Flags: With foreclosure rescue programs, borrowers are often advised to sign over the title of their house to a third party, become renters of their home, not contact their lender, or send mortgage payments to a third party, according to Fannie Mae, which provides fact sheets on mortgage fraud.
2. Loan Documentation Fraud
The Scam: This fraud involves numerous schemes in which a borrower provides inaccurate financial information — such as about their income, assets, and liabilities — or employment status in order to qualify for a loan with lower rates and more favorable terms. Occupancy fraud is one growing area: Borrowers say they plan to live in the property when they actually intend to rent it.
Red Flags: Documentation may raise suspicion if the employer’s address is shown as a post office box, accumulation of assets compared to the person’s income appears too high or low, the new house is too small to accommodate occupants, the person has no credit history, or the application is unsigned or undated, according to Fannie Mae.
3. Appraisal Fraud
The Scam: A faulty appraisal — saying a property is worth more than what it really is — is connected to many types of mortgage fraud. It entails manipulating or overstating comparables, market values, or property characteristics in order to obtain a higher appraisal. The higher property appraisal, which generates false equity, is done by falsifying an appraisal document or using an appraiser accomplice to obtain the higher value.
Red Flags: Be skeptical of appraisals that are dated prior to the sales contract, list comparable sales that do not contain similarities to the property or are outside the neighborhood, the owner is not the seller listed on the contract or the title, or a third party participating in the transaction orders the appraisal, Freddie Mac warns.
4. Illegal Property Flipping
The Scam: This entails purchasing properties and reselling them at inflated prices. These scams usually involve faulty appraisals and inaccurate loan documents. The property is then refinanced or resold immediately after purchase for an inflated value. The home is purchased at a higher price, often by straw buyers working with the “flipper,” and eventually falls into foreclosure.
Red Flags: Some key things to look for are rapid refinancing of a property; the seller recently having acquired the title or acquiring the title concurrent with the transaction; an appraisal that comes in too high; a property that was recently in foreclosure being purchased at a much lower price than its sales price; or the owner listed on the appraisal and title not matching the seller on the sales contract, according to Fannie Mae.
5. Short Sales Schemes
The Scam: Borrowers owe more than the current value of their home so they fake financial hardship and no longer make their mortgage payments. An accomplice of the borrower then submits a low offer to purchase the property in a short sale agreement. The lender agrees to the short sale, unaware that it was premeditated. The property, after being purchased at the reduced price, is then often resold at the home’s actual value for profit.
Red Flags: The borrower suddenly defaults on the mortgage with no workout discussions with the lender, an immediate offer is made to a lender at a short sale price, the short sale offer is less than current market value, or a cash back is offered at closing to the delinquent borrower (disguised as “repairs” or other payouts, for example) and is not disclosed to the lender, according to Fannie Mae.
You can report instances of suspected mortgage fraud to Stopfraud.gov.
Melissa Dittmann Tracey is the multimedia Web producer of REALTOR® magazine. She can be reached at mtracey@realtors.org.
Don't be duped by mortgage fraud. Here are a few common scams and the red flags you should look for in a transaction.By Melissa Dittmann Tracey
August 2010
Mortgage fraud is pervasive: An estimated $4 billion to $6 billion in annual losses result from mortgage fraud, according to FBI reports. “An entire community can be damaged by mortgage fraud,” says Rachel Dollar, a lawyer from Santa Rosa, Calif., and editor of the Mortgage Fraud Blog. Mortgage fraud can lead to a spike in foreclosures, home values plummeting, and lenders raising their rates and fees to recover losses.
The crimes are often complex, involving several parties and occurring over multiple transactions. To protect you and your clients, educate yourself about mortgage fraud and be on guard for any warning signs in a transaction. You can start by reviewing these five scams, and then test your knowledge by taking our Mortgage Fraud Quiz.
1. The Foreclosure Rescue Scheme
The Scam: “Rescuers” promise cash-strapped home owners that they can save their home from foreclosure. The rescue, which involves paying upfront fees, can take multiple forms, such as the perpetrator obtaining a new loan on behalf of the owner or by having the owner sign over the home’s deed and then rent the home until they can repurchase it. Eventually, the home owner loses the home, either to foreclosure or the fictitious rescue company.
Red Flags: With foreclosure rescue programs, borrowers are often advised to sign over the title of their house to a third party, become renters of their home, not contact their lender, or send mortgage payments to a third party, according to Fannie Mae, which provides fact sheets on mortgage fraud.
2. Loan Documentation Fraud
The Scam: This fraud involves numerous schemes in which a borrower provides inaccurate financial information — such as about their income, assets, and liabilities — or employment status in order to qualify for a loan with lower rates and more favorable terms. Occupancy fraud is one growing area: Borrowers say they plan to live in the property when they actually intend to rent it.
Red Flags: Documentation may raise suspicion if the employer’s address is shown as a post office box, accumulation of assets compared to the person’s income appears too high or low, the new house is too small to accommodate occupants, the person has no credit history, or the application is unsigned or undated, according to Fannie Mae.
3. Appraisal Fraud
The Scam: A faulty appraisal — saying a property is worth more than what it really is — is connected to many types of mortgage fraud. It entails manipulating or overstating comparables, market values, or property characteristics in order to obtain a higher appraisal. The higher property appraisal, which generates false equity, is done by falsifying an appraisal document or using an appraiser accomplice to obtain the higher value.
Red Flags: Be skeptical of appraisals that are dated prior to the sales contract, list comparable sales that do not contain similarities to the property or are outside the neighborhood, the owner is not the seller listed on the contract or the title, or a third party participating in the transaction orders the appraisal, Freddie Mac warns.
4. Illegal Property Flipping
The Scam: This entails purchasing properties and reselling them at inflated prices. These scams usually involve faulty appraisals and inaccurate loan documents. The property is then refinanced or resold immediately after purchase for an inflated value. The home is purchased at a higher price, often by straw buyers working with the “flipper,” and eventually falls into foreclosure.
Red Flags: Some key things to look for are rapid refinancing of a property; the seller recently having acquired the title or acquiring the title concurrent with the transaction; an appraisal that comes in too high; a property that was recently in foreclosure being purchased at a much lower price than its sales price; or the owner listed on the appraisal and title not matching the seller on the sales contract, according to Fannie Mae.
5. Short Sales Schemes
The Scam: Borrowers owe more than the current value of their home so they fake financial hardship and no longer make their mortgage payments. An accomplice of the borrower then submits a low offer to purchase the property in a short sale agreement. The lender agrees to the short sale, unaware that it was premeditated. The property, after being purchased at the reduced price, is then often resold at the home’s actual value for profit.
Red Flags: The borrower suddenly defaults on the mortgage with no workout discussions with the lender, an immediate offer is made to a lender at a short sale price, the short sale offer is less than current market value, or a cash back is offered at closing to the delinquent borrower (disguised as “repairs” or other payouts, for example) and is not disclosed to the lender, according to Fannie Mae.
You can report instances of suspected mortgage fraud to Stopfraud.gov.
Melissa Dittmann Tracey is the multimedia Web producer of REALTOR® magazine. She can be reached at mtracey@realtors.org.
7/19/2010
Georgetown Stats - week of July 12 - 18
According to the MRIS (Multiple Regional Information Systems, Inc), the following real estate transactions have taken place in Georgetown real estate during the week July 12 -18.
7 new listings: 5 Single Family (SF) ($1,425,000 - $5,995,000) and 2 Condo/Co-op (C/C) ($581,000 - $588,885)
2 properties came under contract: 2 SF ($949,000 - $1,495,000) and 0 C/C
5 properties went to closing during this time frame: 3 SF ($1,475,000 - $2,300,000) and 2 C/C ($399,000 - $539,000)
7 new listings: 5 Single Family (SF) ($1,425,000 - $5,995,000) and 2 Condo/Co-op (C/C) ($581,000 - $588,885)
2 properties came under contract: 2 SF ($949,000 - $1,495,000) and 0 C/C
5 properties went to closing during this time frame: 3 SF ($1,475,000 - $2,300,000) and 2 C/C ($399,000 - $539,000)
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