McGinn Real Estate Group

A Fresh Start

2009-07-01T05:19:00.003-04:00

Recently I met with some clients who found themselves in a situation where they could no longer afford their home. A combination of salary reduction and an interest rate increase left them unable to pay their mortgage. Values had dropped on their home and they were underwater on their loan - meaning they owed the bank more than what their home was worth. Our first meeting was very difficult for them and I could see they were overwhelmed with the situation. They always had good credit and now they were facing foreclosure. They were unfamiliar with the process and did not really understand their options or that they even had options.

I was able to review their situation, develop a plan to put their home on the market as a "Short Sale" and avoid a possible job loss that foreclosure could have caused. Working closely with the lender I sold their home and they were able to make a fresh start.

The most interesting part of the process was settlement. It was actually a very positive experience and despite the difficult circumstances there was a lot of excitement at closing. After everything was over my clients took me aside and explained how happy they were to be free of the stress of the situation and how excited they were to start fresh with their credit undamaged by foreclosure. For them it was a very positive outcome.

I admit I was a little surprised. That day I learned firsthand how good people can feel once they have the opportunity to be free of oppressive debt.

I recently obtained my Certified Distressed Property Expert designation (CDPE) in order to more effectively understand the needs of distressed homeowners. If you know of anyone who is in a difficult situation with their home, let them know they do have options. I would be pleased to give them good information that will help them move forward in a positive way.

Thank you for helping me better serve our real estate community.

Deal or No Deal

2009-06-24T05:16:00.007-04:00

If you've ever seen the show "Deal or No Deal" you've likely noticed how common it is for contestants to be lured into taking additional risks to see if they can get through just one more case and keep their dream of big money alive. Sometimes it works out for them and they win big. However, more times than not, the contestant tries to push the envelope too far and ends up squandering a sure thing in hopes of obtaining that alluring million dollar prize.

We've seen the same thing happen in the real estate industry lately as clients risk a sure thing - buying the home that is available at an already deep discount in the hopes of saving a few dollars more on that elusive steal of a deal. They get distracted and miss the great opportunity that is right in front of them. This desire to catch the market at its absolute lowest point and save that extra money can backfire and cost much more in the purchase of a home. The truth is that none of us knows "what case will be opened up next," and betting on the future can be a bit of a risky proposition considering the turbulent climate that surrounds us.

The reason I bring this up is out of concern that many are missing out on the current opportunity that is before us. The turmoil in the economy has created a situation where we can help you find a really attractive home at a hugely competitive price - the proverbial great deal. To find out exactly how to take advantage of the opportunity that still exists, give me a call at 443-310-8824.

Thanks for helping me better serve our real estate community.

Image courtesy of www.NBC.com

Six Degrees of Separation

2009-05-26T09:01:00.006-04:00

Earlier this month a Washington Post article talked about "Six Degrees of Separation," you know - that theory that you are only about 6 people away from knowing anyone else? But is it just a joke, or is there some truth to it?

There has actually been some real research done on this. In 1967 a sociologist randomly chose individuals in the Midwest and asked them to send a package to a stranger in Massachusetts. They were not given an address, but given the name, occupation, and the approximate location of the individual. They were asked to send the package to someone they thought might know the stranger, or would at least know someone else who might know the stranger.

Guess what!? Each package reached its destination, after being sent to (on average) five to seven people. Amazing.

Then in 2001 a professor at Columbia University devised a similar experiment, using the internet. His experiment was done on a much larger scale! He used 48,000 senders in 160 countries, and 19 "targets." The average number of people the email had to go through? Six.

Here's an example from my own life! Have you seen the video of Susan Boyle (I think nearly everyone who uses the internet has!)? Well - I asked my neighbor Mary (who's from Scotland) if she knows her (I asked her more as a joke than anything else), and she does! Her brothers know her well. So I am only two people away from Susan Boyle!

Which famous person do YOU know - maybe six degrees away?

(Image courtesy of USMagazine)

Faith and Football

2009-05-12T16:58:00.003-04:00

My blog typically centers on real estate related topics. This one however is a little different. I have noticed that much of the news made by professional athletes these days seems the kind that makes parents cringe whenever they hear it.

I would like to highlight a particularly interesting and positive event that will happen May 16th. This event is called Faith and Football and it is being hosted by my church – The Church of Jesus Christ of Latter Day Saints (Mormons). Although my church is hosting this event, those participating are men of faith from different religions. But what they have in common is a belief in God, and their faith that sustains them and has contributed to making them the great people they are. The event focuses on “Learning That Great Football Coaches and Players Can Also Be Great Men.” What a positive theme, and hopefully one that will be very influential in the lives of football fans of all ages.

Those participating in the event include:

LaVell Edwards, College Football Hall of Fame Coach, Brigham Young University
Derrick Mason, Two-time NFL All-Pro, Baltimore Ravens Wide Receiver
Lenny Moore, Pro Football Hall of Fame Player, Baltimore Colts Legend
Edwin Mulitalo, Super Bowl Winner (Ravens), Ten-year NFL Veteran
Ken Niumatalolo, Head Football Coach, US Naval Academy
Burgess Owens, NFL All-Pro, Super Bowl Winner, Oakland Raiders
Stan White, Baltimore Colt All-Pro and Ohio State All-American
Andy Reid, Two-time NFL Coach of the Year, Head Coach, Philadelphia Eagles

Feel free to visit the web site http://www.faithfootball.org/ . All are welcome to attend. There is an afternoon as well as an evening session. Although tickets are limited, there is no cost. This will be a wonderful event for sports and football enthusiasts everywhere. This is my invitation to you – come join us, bring your friends. Attend a great event where these men will "share their experiences and motivate all of us to be better.”

MRIS Trends in Housing Report

2009-05-04T10:24:00.005-04:00

Below is a Short Video and a link to the Housing Report.

Report

May Riddle Answer!!!

2009-04-28T08:02:00.002-04:00

Don't be Fearful. Be Factual.

2009-04-28T07:09:00.008-04:00

If Buyers and Sellers were just to take the news at face value it would be very easy to get scared in today's market. The better thing to do right now is to look for the facts. We hear about 8% unemployment but what we don't hear is that means that 92% of Americans have jobs and are getting their salary every single month. We hear how the market is doing and how the banks are failing but we don't hear much about how interest rates are at a six decade low right now.

There's a huge inventory of wonderful, great-value homes that are on the market right now; selection is high, interest rates are low, prices are low, and it's a fantastic time to be a Buyer. This also opens the door of opportunity for Sellers as well. Your home may not be worth what it was at its peak, but neither is the one you will buy. The fact is that since you will most likely purchase a home that has a higher value than yours, its 15-20% value drop translates into a greater reduction in sale price than yours. That means the math works to your advantage. If you couple that with low interest rates you are getting a double bonus.

Don't be fearful, be factual.

Thanks for helping me better serve our Real Estate Community.

Kind of like "On Star" for Real Estate...

2009-04-21T10:58:00.006-04:00

I am really excited to blog about some new technology I just launched. It's called Voice Pad and here is how it works.

Let's say you are driving through a neighborhood and you come across a home with a For Sale sign out front. This home looks very nice and you are interested in finding out the asking price along with other details such as number of bedrooms, bathrooms, if there is a finished basement, or lot size. At this point you think, "I'll email Boyd tomorrow and get the info." While this is a good way to get the info, wouldn't you really rather know right then and there while you are looking at the property?

Now I have a solution for you. My new technology allows me to set you up with a dedicated phone number that you put in your cell phone speed dial. When you see a home, you call Voice Pad. Immediately they answer and provide you with detailed info for that home. It's kind of like On Star for real estate. It is really fast and is also very simple. I have test driven this technology and if it is easy for me it will be a breeze for you. It's also fast. I'm no lover of slow phone systems that take forever to get info into your hands. This is so quick you'll have what you want in an instant.

If you or someone you know could use this technology, email me at boyd@boydmcginn.com and I'll get you started.

Let me know if you are interested.

Boyd

A Bell Won't Ring

2009-03-31T06:27:00.007-04:00

I heard a quote recently which said, "when home prices hit bottom you won't hear a bell ring." Bottoming out is something that is more clearly identified six to eight months after the event has occurred. Depending on the market it can even take a little longer. However, I have been seeing some positive signals lately and there are some early indicators that we might be getting pretty close to bottom.

Here is what I am seeing:

February home resale figures jumped by 5.1%

February new home sales also jumped 4.7%

Interest rates are officially at historic lows

These are national reports and it is important to note that our regional market performs better. These reports may be early indicators that housing is beginning to move in a better direction

Our area is not completely recession proof, but we have felt much less of an impact because of the economic strength of our region. Here is my experience locally:

I noticed an increase in buying activity early December 2008 - primarily first-time buyers but some move-up buyers as well.

January 2009 started strong and continues busy - mainly first-time buyers and some move-ups.

Whenever a home comes on the market and is priced right, it will often produce multiple offers.

I am noticing a return of confidence as buyers take advantage of low prices and historic low interest rates.

As interest rates dip buyers move off the fence and when they do, they move decisively to purchase well-priced homes.

As I speak with other real estate professionals I'm receiving confirmation that they are having a similar experience. Whenever the market is making a change, real estate agents who are on the front lines every day usually see that change first. I am seeing some positive signals right now.

Have you come across any positive signals?

Could Be a Good Idea

2009-03-06T11:11:00.004-05:00

President Obama has launched a very aggressive stimulus program and the details are just starting to filter down. I won’t pretend to know everything about the bill and if or when it will actually do what it is intended to. There is a parade of talking heads on TV every night better qualified than I to answer that question – unfortunately they never agree on anything. There is some agreement on one point however – by the time the economy recovers nobody will know for sure what exactly caused the recovery and when. It will likely be a combination of factors starting with the stimulus program that was just launched, a natural swinging back of the economic pendulum, or maybe just the fact that your washing machine gives up the ghost and it's time to buy a new one whether you want to or not. At some point we will venture out and begin to spend again. The world has to spend to live.

During this time of uncertainty some novel ideas pop up about how best to deal with certain aspects of the problem. I came across one the other day that made some sense to me. This is an article that appeared in the Washington Post February 22, 2009 written by Ricardo J Caballero, head of the Economics Department at MIT.

http://www.washingtonpost.com/wp-dyn/content/article/2009/02/20/AR2009022003230.html

Perhaps this idea may gain some traction and be one of the factors that puts our economy back on solid ground. What do you think?

$8,000 First-time Home Buyers Incentive

2009-02-26T16:37:00.002-05:00

The Obama government has provided an incentive for first-time home buyers who purchase homes from the start of the year until the end of November 2009. They may be eligible for a tax credit based on 10 percent of the value of the home or $8,000 (whichever is least). Remember a tax credit is very different from a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Tax Credit Versus Tax Deduction

It’s important to remember that the $8,000 tax credit is just that – a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all is said and done. So, if a home buyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing.

Better still, the tax credit is refundable, which means the home buyer can receive a check for the credit if he or she has little income tax liability. For example, if a home buyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit, and still receive a check for the remaining $4,000!

Homes that Qualify

The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify.

Higher Loan Amounts

More good news – there is an extension on the additional tier of conforming loan amounts which had been first established in 2008. This tier of home loans are those greater than $417,000, and with a maximum that depends on the area, but is not greater than $729,750. These loans will again be eligible for rates that are slightly higher than conforming loan rates, but less expensive than the standard “jumbo” loan rates.

Phase-out Examples

According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.

FIRST-TIME HOMEBUYER TAX CREDIT COMPARISON CHART

As Modified in the American Recovery and Reinvestment Act (Major Modifications Italicized)

February 2009 - Click image to enlarge.

Foreclosure vs. Short Sale

2009-02-04T09:06:00.006-05:00

There is a lot of discussion these days about Short Sales and Foreclosures. I think it might be helpful to understand some of the terminology and how each option might impact an owner of a property who is in jeopardy of losing their home. Here's a quick and simple definition of the two and some additional information that helps understand the impact of Foreclosure vs. Short Sale. If you have any questions or would like additional information, please call me.

Thanks for helping me better serve our Real Estate Community.

Foreclosure:
When a homeowner defaults by failing to make payments on his or her mortgage, the bank or financial institution that holds the mortgage note may foreclose on the property. Foreclosure gives the legal ownership of a property to the bank to allow the bank to recoup its investment. Foreclosure proceedings vary by state but usually involve court appearances to ensure the foreclosure is warranted.

Real Estate Short Sale Definition:
A short sale means that you sell the property. But you get a lower price than what you owe. Then you go to your lender (or both lenders if you have two loans) and get them to approve the sale of your house.

The purpose of a real estate short sale is to avoid expensive foreclosure for the lender and get the borrower out of debt with the least possible credit history damage. Lenders have no interest in owning property as they have to pay property taxes and pay for necessary repairs and borrowers would be happy to walk out free of mortgage debt.

However, lenders may or may not agree to take the short sale as full debt satisfaction. As a result, they could file a deficiency judgment for the remaining loan amount and the borrower's credit and capability of taking another home loan soon after the short sale will be damaged.

Foreclosure vs. Short Sale
Homeowner Consequences

Issue	Foreclosure	Successful Short Sale
Future Fannie May Loan – Primary Residence	A homeowner who loses his home to foreclosure is ineligible for a Fannie May Backed mortgage for a period of 5 years.	A homeowner who successfully negotiates and closes a Short Sale will be eligible for a Fannie May backed mortgage after only 2 years.
Future Fannie May Loan – Non Primary	An investor who allows a property to go to foreclosure is ineligible for a Fannie May backed investment mortgage for a period of 7 years.	A homeowner who successfully negotiates and closes a Short Sale will be eligible for a Fannie May backed investment mortgage after only 2 years.
Future Loan With Any Mortgage Company	On any future 1003 application, a prospective borrower will have to answer Yes to question C in Section VII of the standard 1003 that asks “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” This will affect future Rates.	There is no similar declaration or question regarding a Short Sale.
Credit Score	Score may be lowered anywhere from 250 to over 300 points. Typically will affect credit score for over 3 years.	Only late payments on a mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A Short Sale’s effect can be as brief as 12 to 18 months.
Credit History	Foreclosure will remain as public on a person’s credit history for 10 years or more.	Short sale is not reported on a credit history. There is no specific reporting item for “Short Sale.” The load is typically reported as “paid in full, settled.”
Security Clearances	Foreclosure is the most challenging issue against a security clearance outside a conviction of a serious misdemeanor or felony. If a client has a Foreclosure and is a police officer, in the military, CIA, or any other position that requires a security clearance in most cases clearance will be revoked and the position will be terminated.	A Short Sale on its own does not challenge most security clearances.
Current Employment	Employers have the right and are actively checking the credit of all employees who are in sensitive positions. A Foreclosure may be grounds for an immediate reassignment or termination.	A Short Sale is not reported on a credit report and is not a challenge to employment.
Future Employment	Many employers are requiring credit checks on all job applicants. A Foreclosure is one of the most detrimental credit items an applicant can have and can challenge employment.	A Short Sale is not reported on a credit report and is therefore not a challenge to employment.
Deficiency Judgment	In many states, depending on the kind of loan, the bank has the right to pursue a deficiency judgment under the personal covenant on the loan.	Depending on the type of loan some lenders who accept a Short Sale may be able to pursue a borrower for a deficiency judgment. In many successful Short Sales it is possible to convince a lender to give up this right as part of the Short Sale.

Property Tax Assessments and Homestead Tax Changes

2009-01-12T12:11:00.021-05:00

This is the time of year when the triennial property tax assessments begin to appear in Maryland. They begin to arrive any time between mid December and the end of January. Every three years your property value is reassessed and your tax rate is based on that new assessment. Last year I sent out a special alert regarding these changes in order to help save you money -- perhaps lots of money. Here it is again so take a close look and see if this has any impact on your taxes -- especially in light of the drop in home values over this past year.

Thanks for helping me better serve our Real Estate Community.

Property Tax Assessment

Every three years your property value is reassessed for tax purposes. With the recent decline in real estate values you want to be watching very closely that your assessment is not too high. If you feel your assessment is too high here is what you do:

(Click to Enlarge)

If you missed the time period for appeal or if you are not in your year for assessment you can use this section to reapply.

Petition for Review Application There is no formal application for assessment appeals that are not Petition for Review. The homeowner would have to follow the directions on the attached information sheet, which can also be found at http://www.dat.state.md.us/sdatweb/appeal.html.

Homestead Tax Credit Changes

Last year the Maryland State Assembly made changes to the Homestead Tax Act which now requires that you reapply to keep this important credit on your principal residence. If you are being reassessed this year that application will be inlcuded in with that information. Be sure you don't miss it. DO IT NOW!!!!!

Explanation for Homestead Tax Credit
(Click to Enlarge)

Commonly Asked Questions
(Click to Enlarge)

Information from the State Department
of Assessments and Taxation
(Click to Enlarge)

Online Homestead Application Note: to the best of my knowledge, this can only be used by homeowners who have their Homestead Tax Credit information that was mailed from the SDAT.

Application that Homeowners can print and mail with or without their information that was mailed from the SDAT.

Keep in mind, to the best of my knowledge you can only apply for this credit upon receipt of your tri-annual assessment notice or within 180 days of the purchase of a property.

Special Note -- Make sure you don't miss this form in the paper blizzard the state sends you!

It’s Christmas and I’m the Sous Chef

2008-12-25T17:55:00.005-05:00

(Making Reubens with my son Doug and son-in-law Mike.)

Today is December 25th and Christmas is upon us. The distances that separate our family are gone. Sounds of laughter fill our home (actually my son’s home on the Wasatch front in Utah) where mothers and grandmothers caution good behavior – with limited success. For us, this time of year centers on important family traditions. Let me share two.

Food – the McGinns are all about the food. Whenever we get together the menu is a hot topic of discussion and food traditions are honored. This year I have been assigned the job of being the Sous Chef to my two sons. I think I actually assigned myself in a fit of giving. By definition a Sous Chef is (from my Google search): “Middle Management. You are between a rock and a hard place. You have a little power, but not all of it. You have a dash of authority, and maybe a pinch. Sometimes your chef will back you, and sometimes not. But your job is to back your chef, no matter what.” My children love to cook and even more they love to boss me around. This is the yin and yang of life – the balancing of a great many years of me running them around. You must understand however that my definition of Sous Chef involves me helping them in my way – not necessarily their way. So I guess I am not really a Sous Chef after all – I’m a Daddy Chef and they do their best to put up with me.

So here are a few of our favorite festive meals:

Reuben Sandwiches – a Christmas Eve meal tradition now four years old and introduced by Eldon and Abbey – dear friends who are family

Spare Ribs – Grandma McGinn’s special recipe – ribs slow cooked in tomato based sauce with a dash of vinegar - which Ninon has perfected

Trifle – a traditional Old English dessert – made with white cake, whipped cream, berries, and custard – all mixed together in a glorious melange

Turkey and all the trimmings is our Christmas Day dinner which is not complete without my mother’s dressing (stuffing) – simple and good

Open Food Session – any meal planned by one of the kids using a menu of their own choosing. This results in a cornucopia of interesting and highly delicious meals such as Black Pepper Mango Salsa Pork Chops, French Onion soup and Kristin’s “stewp” just to name a few.

At all times I run around, oversee the events, give advice, keep the schedule on track and generally make a nuisance of myself – that is helping in my way and I love it.

Number two is Gifts of Love. My sweet wife determined years ago that because this time of year is about the giving we ought to be giving on a higher plane. So she introduced gifts of love. Putting thought into giving is important - it’s really another way to say I love you. Christmas Eve we gather to record little gifts of love that we promise to give each other during the coming year. Ideally they have no monetary value. When the kids were little we had lots of “doing dishes” or “snow shoveling.” A common adult theme has been “advice about …” or “help blossoming.” Some become very creative like “Photoshop help,” or “wholesome activities” (given by my son Doug to Alec’s wife Kristin - it means no playing with knives and lighters with our grandkids), and “homemade haircut” (Kristin will cut Doug’s unruly hair and we will watch with glee).

I love these traditions. They become even more important as I get older. We live in a culturally diverse area with traditions from different lands and I have many friends with their own traditions that center around Christmas, Hanukah and even Kwanzaa. Love of family and friends and the spirit of giving seem to be common threads. I wish you all the best in this truly wonderful season - the best time of the year.

Thanks for helping me better serve our Real Estate community.

Home Inspection 101

2008-12-17T16:33:00.002-05:00

A common question I receive relates to Home Inspections: What are they and when are they done?

A home inspection is a thorough and detailed examination of the property, typically carried out on behalf of and paid for by the buyer. It will involve a licensed home inspector taking about 3-4 hours to thoroughly inspect the property from top to bottom. An inspection on the house will alert buyers to defects that might not immediately be apparent. Purchasing a home is an emotional process, and buyers usually choose a house based on how it affects their emotions. In other words how it feels and how they picture themselves living in the home.

A home inspection is a great way to ensure that the new home is in good physical condition with all systems working as they should. That way falling in love with your home will continue to be a positive experience. The inspectors will start with the roof, work around the exterior and then focus on the electrical and mechanical systems of the home. They will check all major appliances that convey with the property. They also inspect the plumbing and finish off in the attic. It is important to remember that "There Is No Perfect House." The home inspector's job is to draw attention to any deficiencies. Those deficiencies could range from a leaky roof to heat or AC systems not working properly. Inspectors are also up to date on any industry developments that could affect your safety.

Once the inspection is complete, there are three typical responses to deficiencies identified:

The defect is minor in nature and the buyer decides to move ahead without asking the seller for any remediation.
The defect is serious enough that it needs to be addressed. For example, a water heater does not function properly. As long as the seller agrees to repair the appliance, the buyer agrees to continue with the home purchase.
The deficiency is so serious that a decision is made not to continue with the home purchase.

Over the years I have managed to develop a list of qualified professional home inspectors – people I trust to provide my clients with excellent information on the home they are purchasing. I always recommend to my clients that they do a home inspection before purchasing a property. I often recommend that my sellers do the same before they put their home on the market. I would be happy to answer any questions you might have about this process.

Thanks for helping me better serve our Real Estate Community.

First Time Home Buyer Tax Credit

2008-12-09T05:02:00.006-05:00

Here is some information on the First Time Home Buyers Credit Program contained in the Housing and Economic Recovery Act of 2008. It’s a loan from the government which you would pay back interest free over 15 years. At $500 per year worked into your income tax filings it is a relatively painless loan and one that could help you purchase a nice home at a time when home values are very low. Used very carefully this could work to your advantage.

$7500 First Time Home Buyer
Tax Credit
(Click on Image to Expand It)

'Tis the Season

2008-12-01T14:50:00.008-05:00

We have now started the official countdown to Christmas! When our children were young Ninon made an advent calendar featuring a special daily activity while counting down the days 'til Christmas. This kept the kids busy and having great fun getting ready for the big event. Whether it was making snowflakes or watching "Rudolf the Red Nosed Reindeer" together – every day was a special surprise and each child would vie to be the one to discover that day’s activity. This created many wonderful memories and became one of our family’s Christmas traditions.

My daughter Alma has created this wonderful advent calendar that you can use for your family. It is absolutely free and here is what you do to get it.

This is my daughter Alma – isn’t she beautiful?

MATERIALS NEEDED:

1. A frame. The current measurements of the calendar fit perfectly into Ikea RIBBA frame that is 15 3/4 x 19 3/4 (matted to 11 1/2 x 15 1/2). (The image can be sized down and cropped to 8.5 x 11 dimensions without losing any of the design.)

2. A professional printer, if you're going to print out the large version (it will need to be printed on 12x18 paper). Or your home color printer if you're going to crop and resize.

3. An xacto knife to cut around the ornaments.

4. 25 event ideas leading up to Christmas!

INSTRUCTIONS:

Download the two images. (Click on the images to go to the full size versions. Then right-click and choose "Save Image As..." and save to your computer. Make sure you have both the colored bobbles and the black and white background.)

Crop and resize images to fit the frame that you are interested in. (Most basic photo editing programs that come with your computer will allow you to do this.)

Print the two images. I strongly recommend cardstock. Remember if you're printing the full-size version to request that it be printed on 12x18 paper. (The background image doesn't have to be printed in color---you won't see any of it. It's just there to be a guide of where to write in your events.)

Write the Christmas events on the background image in the numbered bobble silhouettes. Have fun with this!

With the xacto blade, cut around each bobble on the color copy. Leave the top of the bobble attached.

Match up the front and back precisely. Tape them to the picture matte, if using.

Remove the glass from your frame. Insert the artwork and enjoy! Each day, lift up the appropriate bobble to discover the day's activity underneath.

(Keep up with what Mike and Alma Loveland are up to at Loveland Miscellany!)

Chesapeake Bay Restoration Fund

2008-11-22T03:00:00.008-05:00

Every now and then I come across some information that can save my clients lots of money. Here is a good one. There has been a program in place in Maryland since 2004 that provides significant incentives to upgrade existing septic systems anywhere in the state. We live in the Chesapeake Bay watershed, which means that all rivers flow into the Chesapeake. With population densities as high as they are, waste water effluent along with urban and agricultural runoff are the most common contributors to nutrient discharge into the Bay. The Bay Restoration Fund was created to help address that issue by introducing new systems that do a better job of removing phosphorus and nitrogen from waste water effluent. These new systems basically function like mini sewage treatment plants and do a much better job of removing the unwanted elements.

The Bay Restoration Fund Pays for:

removal of the old tank
installation of the new tank

This means that homeowners who would like to upgrade their septic systems are eligible to receive a gift that would cover costs that could amount to as much as $15,000. The new technology involves some electrical and pump components so it is a little more involved than the old-style systems that simply had two chambers and used gravity to do all the work.

If you or someone you know is interested in finding out more about this plan, here are a couple of resources that you might access:

Septic Service Providers

Fogles Septic - (410)970-6918
Jack Fyock Septic - (410)531-2939

I spoke to a representative from the state about the program and their biggest concern is that not enough people are aware of it. On a recent home inspection a Septic Contractor took my clients and me through the ins and outs of the program and how it works and I find it hard to think of any negatives associated with this initiative. Check it out. It could save you a lot of money. The Bay Restoration Fund pays for the replacement of an outdated septic system and you get to help the Chesapeake Bay at the same time. A classic win-win.

An interesting note - there are no natural lakes in Maryland. Due to our topography all water (creeks and rivers) run quickly to the bay and all lakes are man made.

Thanks for helping me better serve our Real Estate Community

In Flanders' Fields

2008-11-11T04:34:00.012-05:00

As a young boy growing up in Canada, Remembrance Day (Veteran's Day here in the US) was always a big event. Every year on the 11th day of the 11th month at 11:00 a.m. Canadians observe two minutes of silence as we remember those who made the ultimate sacrifice in defense of our freedoms. As young Cub Scouts we had the assignment to attend services at the local Canadian Legion or VFW and participate in the ceremonies and the laying of wreaths. It was a very solemn experience. I remember many WWI and WWII veterans dressed in their uniforms paying respects to their fallen comrades as wreaths were placed on the cenotaph.

November 11th always seemed to be a cold and dreary day. We young Cub Scouts would shiver and try to stay warm. Because we were in uniform we were not always dressed well for the weather. Standing in the cold rain or even snow was not a pleasant experience for me, but even at that young age I thought my discomfort was a small price to pay for others who had sacrificed so much more.

In grade school every child was required to memorize the poem written by Colonel John McCrae entitled "In Flanders' Fields" The poem is very simple, yet captures the magnitude and responsibility associated with the sacrifice made by so very many.

In Flanders' Fields

In Flanders' Fields the poppies blow
Between the crosses, row on row,
That mark our place; and in the sky
The larks, still bravely singing, fly
Scarce heard amid the guns below.
We are the dead. Short days ago
We lived, felt dawn, saw sunset glow,
Loved, and were loved, and now we lie
In Flanders' Fields.

Take up our quarrel with the foe:
To you from failing hands we throw
The torch; be yours to hold it high.
If ye break faith with us who die
We shall not sleep, though poppies grow
In Flanders' Fields.

Lest We Forget Lest We Forget

Every year I wear my poppy and refresh the poem in my mind. As I do so, I gain new respect and appreciation for sacrifices made on my behalf so I can enjoy my freedom. A wise person noted that "freedom is never free." I always do my best to remember that.

Thanks for helping me better serve our Real Estate Community.

Credit: How to Repair and Improve It

2008-11-04T04:00:00.008-05:00

There’s a lot of talk these days about credit scores and the need to get and keep good credit. I have noticed that many people are uncertain of how to obtain accurate credit ratings for themselves and how to repair or improve their credit ratings. There seems to be a lot of mystery involved with this. Here is some information I obtained from some of the lenders I work with that might help demystify this process.

How do I find out what my credit score is?

There are some sources who actually charge people to view their credit report. You should never have to pay for this nor should you waste time using sites that provide only partial information. Here are some good sites.

http://www.myfico.com/

www.annualcreditreport.com/cra/index.jsp

www.ftc.gov/bcp/menus/consumer/credit/reports.shtm

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm

http://www.facredco.com/

How do I repair and improve my credit scores?

Here are a few tips:

Late Payments- If you are at least 30 days late on any revolving or installment accounts (credit card, car loan) you are reported and it impacts your score negatively. You will continue to be reported for each additional 30 days that you are late (60, 90, or even 120 days late is shown). Get back on schedule and eliminate the late pays. This is an easy first step.

Maxed Out Credit - If your credit is “maxed out” it will have a negative impact on your score. Many people are unaware of this, and they use one card for everything. This can be bad because your score is based on a ratio of debt outstanding to credit available. If you have cards that you do not use, or that have no balance, it can be helpful to keep these accounts open and unused. This can actually help your credit scores.

It’s important to show long-standing accounts. Creditors like to see accounts have been open for long periods of time with no trouble (no late payments). It’s better to keep a credit card or account that you have had for a number of years open with no balance, rather than closing it outright.

Installment Loans - Creditors like to see that you have had installment loans that have been paid off on time. This includes car loans, student loans, etc.

Mortgage Loans - The biggest plus that you can have on your credit report is a timely mortgage. The most important “trade-line” on the credit report is the mortgage. A mortgage account that has been open for a long period of time with no late payments will boost the scores. You should NEVER be reported 30 days late on a mortgage if at all possible. It is MUCH BETTER to be late on any other type of account, if you have no possible options, then to be reported late on a mortgage. A mortgage loan that shows late payments, in some cases, will damage credit scores, but can also prevent you from refinancing a home or even getting approved for a new loan.

How long does it take to repair bad credit?

The following statute of limitations has been provided by the Fair Credit Reporting Act (FCRA)

Bankruptcies:
10 years from the date of entry of the order for relief

Suits / Judgments:
7 years from date of entry or expiration of applicable statute of limitations, whichever is longer

Tax Liens – Paid:
7 years from date of payment

Tax Liens – Unpaid:
No limitation

Credit Inquiries- The number of times that your credit is checked will impact your scores. This typically is a small impact, perhaps a few points on your overall score, and it’s not a big deal for borrowers that have excellent credit, but it can be a bad thing if your credit scores are in the mid-to-low 600’s and you drop down a couple of points. Most of the time your score will recover those few points in the following weeks or months as you continue with on-time payments and the inquiries stop.

If you have any questions about your credit and would like some additional information, please give me a call. I would be happy to put you in touch with a good lender who can give you some helpful counsel and advice on what you can do to repair or improve your credit.

Thanks for helping me better serve our Real Estate Community.

Good Debt – Bad Debt – Be Careful

2008-10-28T08:34:00.005-04:00

When our children were young my wife would take them down to the local hardware store just before Christmas to help them shop for a little gift for each family member. This was a big event for the kids. With their mother's help they would each purchase some small item, wrap it when they returned home, and put it under the Christmas tree. For the kids this was high drama and they would get so excited because they had the chance to think and plan and then make what was for them a really big purchase. My son Doug was about 5 years old at the time that he bought me a little plastic tool about the size of a matchbook. It had a small razor blade that slid out so you could open parcels or cut string. He was so excited and would chatter on about his carefully wrapped gift, never telling me what it was, but he would always warn, "Be careful, Daddy." It was his way of telling me that I would have to be very careful when I opened it up. That was good advice.

I am not a financial guru but I have always thought it wise to be careful when borrowing money for important things like homes, automobiles and education. I also thought it was a good idea for lending institutions to lend money when people had a job, credit and some cash on hand for equity. Clearly borrowers and lenders strayed off this tried and true path over the last few years and decided to take a walk on the wild side. We are now paying the price for those decisions. Bad debt is a huge issue in today's world.

Debt carefully managed can help build wealth for the future. The cost of living in today's world requires a certain amount of debt. I believe there is good debt and bad debt. My personal opinion is that good debt falls into three categories – home loans, auto loans and education loans. Anything else should be very carefully examined to ensure the loan is wise. I have found few if any loans in the "other" category that are wise. Even good debt can fall into the unwise category very quickly if you buy too much home, purchase a vehicle too expensive for your budget, or pile up an excessive amount of student debt. I know many people who live in homes that comfortably fit their income, who don't drive the latest and greatest but still get around quite fine. I also know lots of people who have graduated university with very little debt. Some have even managed to graduate with no debt. And these are people who did not have someone else pay for their education.

When our clients are considering a home purchase we refer them to lenders who provide good information about loan options and programs that work best for them. We trust these lenders to provide counsel and advice that will help our clients make wise decisions. Since a home loan is most likely the largest debt you will ever incur in your life, you want to make sure you do your homework and choose a loan that best suits your circumstances. Anyway, the short version is; be very careful before you get into debt. If interest is going to be your companion 24/7, make sure you are in control. Remember Dougie's advice – Be careful!

Thanks for helping me better serve our Real Estate Community.

How to Have Fun on a Low Budget

2008-10-21T07:10:00.005-04:00

This past spring my wife Ninon signed us up to visit the US National Arboretum in Washington DC. She had heard about the Full Moon Walk. This is a five-mile hike through the "moonlit gardens, meadows and woods" at the peak of the full moon. We arrived at dusk and began the walk accompanied by a guide and about 50 people who had signed up. I had been a little reluctant at first; I mean who has the National Arboretum on their hot list of fun things to do? But as soon as we started I quickly warmed to the outing and began to be amazed at this unique and special experience. As darkness began to fall our sense of sight diminished. In its place our senses of sound and smell kicked into high gear. The sound of nighthawks flying through the meadows and dive bombing insects was really interesting. We immediately began to notice the smell of many different species of trees and plants. These smells only occur in the evening after the sun has set. It's at that point that their perfume is released and the air is filled with wonderful scents. We were introduced to magnolias, dogwoods, the Asian collection, and official state trees from every state. You would think that it would be difficult to see in the dark, but low light levels revealed many sights that we would not have noticed in the bright glare of the daytime sun. Kousa dogwoods with their white blossoms seemed to glow in the dark. We also visited trees with history – one giant willow oak measures 100 feet wide and is estimated to be 200-250 years old. Staff members have found civil war buckles that suggest troops may have passed by and rested at its base. Arrow heads found in the area indicate that an Anacostia Indian tribe had camped and farmed the area at some point. The sense of history and beauty of this forested area was a pleasant and deeply touching experience. In this 485 acre park I found what seemed to me to be a completely different world than the one I live in every day. We had witnessed something very special while viewing only a small part of the arboretum during a short window of time. The beauty and grandeur of nature were on full display in one of the busiest metropolitan areas in this country. It was truly an evening to remember.
There are other sites in our area such as the National Zoo, the Smithsonian Museums and Fort McHenry at the Inner Harbo r in Baltimore that are here to be enjoyed. People travel from all over the world to visit these sites and we often forget that they are right here for us to see any time. And the best thing is, most are free – no charge. So next time you are planning a special outing don't forget these unique sites that are located right here in our own back yard.
Thanks for helping me better serve our Real Estate Community.

(Photo Courtesy of the National Arboretum)

Home Decorating and Value

2008-10-14T07:13:00.010-04:00

Home decorating and renovation programs on TV are very popular these days. It is great fun to watch as an old, run-down home is transformed into a beautiful showpiece right before your eyes. Outdated designs and systems are replaced with better floor plans and new technology. It is amazing to see all the new products and ideas that have been developed over the last few years. Granite, quartz and Silestone have become the standard for kitchen countertops. Rich hardwoods and polished stone floor selections are almost endless. Appliances have been redesigned to be more energy efficient as well as attractive and functional. There are even refrigerators that will tell you what groceries need to be restocked. Window design and technology has taken quantum leaps over the past decade. Energy efficient windows are engineered to tilt and twist to allow cleaning from the inside. Electrical and lighting systems are more complex and involve engineered intelligence that beautifies and saves energy at the same time.

There are so many new gadgets to buy and projects to complete. Some of these programs make statements like "you will get $2.00 back for every $1.00 invested in this kitchen or that bathroom renovation." Many clients ask me if these formulas are accurate. They want to know if they put money into renovations and upgrades, will their home value increase as a result. There is no easy answer to this question but I will share a couple of thoughts with you.

First, be very careful about accepting at face value any formula that promises a specific return on a particular project. These statements can be misleading. Each case needs to be examined carefully in context of the local real estate market to see whether or not it applies. With the recent downturn, I have seen decorating and home staging projects that did not result in any value increase. They did however result in the home selling when adjacent properties continued to sit on the market. Having a home staged properly to look its very best is an important selling strategy, but one that needs to be approached with great care.

Secondly there are two types of value. The first I call tangible – the value that results in a specific dollar return by way of increased home value. If you put $5,000 into a home project, you actually increase its market value by an amount pretty close to the $5,000 investment. The second is intangible – the joy that comes from living in a home that has design features that make living pleasurable. In other words, you enjoy your new carpet, paint or kitchen so much you really are not concerned whether or not you will recoup your dollars invested in the upgrades. Only you can decide which is most important to you.

Looking at things differently (also known as thinking outside the box)

2008-10-06T14:29:00.006-04:00

(It's 1967, and that's me on the left, with my friend Willie Baker standing in the middle.)

Today's turbulent housing market is creating a lot of stress in our lives. We cannot go from one day to the next without hearing the media tell about disaster stories relating to the housing crisis. However, there are opportunities right in front of us if we just look at things a little differently.

As a Boy Scout back in 1967 I participated in a two-week wilderness canoe trip with our Scout pack. We paddled over 120 miles between two communities in the Northern Ontario wilderness in Canada. We carried all our food with us since there were no stores nearby – this was truly the wilderness. Out of necessity our food was rationed and after a week of going hungry (14-year-old boys are always hungry) I became very resourceful at finding extra food. I took to fishing in the evenings to supplement my diet. Even that did not always seem to be enough. One evening we had a particularly fine meal planned – baked beans with molasses. The big pot had been simmering for hours and smelled wonderful. There was a steep hill between the camp fire and where we were to eat. When the meal was ready two young scouts were assigned to carry the large pot of beans up the hill to the eating area. Well you can guess what happened. On the way somebody stumbled and about one third of the beans spilled into the sand. I was devastated! The prospect of another day on short rations seemed almost unbearable. As I ate my meal I could not help but think of all those beans in the dirt. When I finished I wandered over to the disaster site and surveyed the scene. As I looked I noticed that many of the beans had fallen in a pile and were not touching the dirt. A light went on in my mind and I got down on my knees and with my spoon began to carefully scoop the beans that were still edible off the top of the pile. I quickly got over my aversion to eating off the ground and discovered that there were in fact lots of very good beans to be had. My friend Willie Baker passed by and saw what I was doing and quickly joined me. Soon there were a couple of other boys joining in the feast. That was an early life lesson for me in looking at things differently. That night I went to bed full and satisfied.

There are always opportunities in a "down market." We have been able to negotiate some very good deals for our clients and see families move into homes that were unaffordable just a couple of years back. I believe that as our market rebounds, and it will, people who are able to see things a little differently now, will benefit in the future. There are a lot of good beans out there.

Thanks for helping me better serve our Real Estate Community.

Housing and Economic Recovery Act of 2008

2008-09-30T09:18:00.006-04:00

We hear a lot in the news these days about the housing crisis and what government and financial institutions are doing to handle these challenges. The nice thing about home ownership is that we get to live in our homes and as long as we are current in our mortgages these problems really have little impact on us. However if a homeowner begins to fall behind in their loan payments there are some steps that need to be taken quickly. I was thinking that if that happened to me or someone I knew, I would want to know what to do and how to reach out for help. With that in mind here are some steps that could be taken.

I would quickly call for help. A 24 hour hotline set up by Fannie Mae to provide mortgage counseling (in multiple languages) would be a good place to start. The number is 888 995 HOPE.

I could call my lender directly and begin a dialogue with them to help explore my options.

I would try to get my hands on some good information about these programs:

12 Things You Should Know When Calling Your Lender

NY Times Article: Housing Bill Has Something for Nearly Everyone

Housing and Recovery Act FAQs

It will take some time to work through this difficult period, but I applaud the government for at least doing something to help homeowners weather the storm and encourage new buyers. Make sure you know how this legislation applies to you and what help is available in case you know someone who might need some good information.

Thanks for helping me better serve our Real Estate Community.