February 2009 - Posts

Contract Negotiations! How to...
25 February 09 08:35 PM | Elena & Kirill Gorbounov(a) | 0 Comments   
1) Appeal to self interest ... Demonstrate why it is in their best interest (very effective). That is why seek to understand rather than understood and this way you know key concerns, which allows you to appeal to them - empathetic listening! 2) Try to set yourself apart or make your offer special / unique ... You can put a large EMD (earnest money deposit) as it shows your serious intentions. By removing one of the common contingencies. When competing differentiation is key. 3) Create a win-win ... Help other party get what they want so that you can get what you want! Trading and exhaching value is important and so is the presentation (perception = reality). 4) Connect with the other party on a human level so that there is empathy and feelings ... build rapport. 5) Use sound logic as back up ... If your offer is 10% under price then provide stats / graphs / charts / reasoning as to why this is fair (everyone wants to see themselves as fair). Since the transaction is elaborate, takes time, and has multiple points where negotiations have to resume (i.e. home inspection) you do not want to antagonize the other party and have them dig in heels at later stages if it can be avoided so always create a win-win. Read More...
Affordability. Timing the market. Is it the Right time?
20 February 09 01:57 AM | Elena & Kirill Gorbounov(a) | 0 Comments   
National Association of Realtors (NAR) data shows that home affordability index (HAI) is at the best level in more than THIRTY years. The current HAI value of 141.8 means that a family earning the national median family income has 141.8% of the income needed to qualify for a conventional loan covering 80% of a median-priced existing single-family home!!! So, if your credit is good and you have the downpayment (can be a present) then investing in real estate is actually more viable an investment than it has been in many years! So is the right time to buy? ~Source: NAR (National Association of Realtors) Read More...
2009 Economic Stimulus Plan
18 February 09 03:05 PM | Elena & Kirill Gorbounov(a) | 0 Comments   
Four important points: 1) Tax credit to First Time Home Buyers is $8,000 (tax deduction) and it does not have to be repaid if you live in the property at least 3 years (valid until December 1st 2009). fyi: if you owe less than 8K in taxes then the government will send you the difference in the mail!!! 2) Home improvement tax credit (e.g. if you were to spend $4500 in home improvement that would result in a more energy efficient home then the government will give you a 30% tax write off of $1500 - the maximum). Improvements that qualify ... energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters. 3) FHA limits raised to $625,500 across US. If you are unfamiliar with what an FHA loan is here are the highlights: 3.5% cash investment, seller subsidy for closing cost is doable, must be principle residence, etc. Another option is purchase a HUD property and they can tack on $35K (i.e. buy a property that is 50 cents on a dollar and use the money to do the necessary improvements to make it habitable). Furthermore, you can add energy efficient fyi: NAR's monthly official forecast as of February 3: Average 30-year fixed mortgage rate by mid-2009: 5.2% Read More...
January Sales in Northern Virginia 2009 - Important to READ (DOM; Prices; Trends; Inventory; Sales)
14 February 09 08:29 AM | Elena & Kirill Gorbounov(a) | 0 Comments   
In January, 998 homes were sold in the area as opposed to January 2008 where the number of homes sold was 716. This means that sales went up by 39%. Also, the average Days On the Marketis 99 days in contrast to 123 days during the same period a year ago. In Fairfax County 790 homes were sold in January, which is an increase of 47% compared with a year ago, while in Arlington sales went up by 26%. At the same time the median sale price dipped nearly 22 percent to $309,449 last month. ~source: Washington Business Journal The inventory of homes for sale in January of 2008 was 79,060 while for January of this year it is 65,992 properties --- a reduction of 16.5% in inventory! Months Supply of Inventory for Jan 2008 was 8.6 while for Jan of this year it is 7.8 months --- decline of 9.6% (less inventory). Pending Sales last year same month 6,902 while this year 8,028 --- 16.3% increase. Average Sales Price went down by 18.2% fyi: percentage of original list price is in the 90's meaning that if the property is for 100K on average buyers get it for 90K sales price! Read More...
Time to buy?
07 February 09 03:58 PM | Elena & Kirill Gorbounov(a) | 0 Comments   
Real Estate is not Stock Trading and either way speculators never outperform the market in the long run even in stock trading. Even if you get one market turn correctly it doesn't mean that you will see the next one. Know that Slow and Steady Wins the Race!!! Read More...

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