Do Politics Really Have an Impact the DC Real Estate Market?

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As we move into the New Year with promises of an even stronger housing outlook ahead, one can only wonder whether politics has played a role in the ups and downs of our marketplace. The truth is that there really is no formal study out there that would allow us to properly evaluate this fact.

Through speculation however, we believe that with this year’s Presidential election at hand there were many homeowners and potential buyers that had been simply “waiting the election out” to see its outcome. Until the election passed, there were a significant number of consumers that were sitting there, building a pent up demand that was almost fiercely unleashed immediately after the election. In fact, in the past years November and December are the slowest months of the year but this year we actually saw one of the strongest pick ups we have seen in a while.

Does All This Talk of the “Fiscal Cliff” Push Buyers Away?

The truth is that while there are very strong changes at hand based on how the government chooses to handle the circumstances, in actuality the true impact on our housing market comes from employment numbers. We strongly believe that our country’s economy is pumped and stays alive with strong employment rates across the board. Jobs allow people to afford housing and of course the more activity in the marketplace, the more the machine stays well oiled.
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Despite our local marketplace being one of the stronger areas in the region, we are still seeing a direct impact on our real estate market as a result of economic uncertainty rather than politics. Decisions made in the political arena, however, will affect us. Our interest rates are currently pegged by the Fed to remain low until either one of two things happen; inflation reaches over 2.5% or the national unemployment rate falls under 6.5%. Analysts are predicting this could be a few years coming.

If you are interested in a more detailed report about the happenings of our local real estate marketplace, or would like to discuss your particular neighborhood – we invite you to contact us today. Serving the Greater DC, MD and VA areas – we look forward to hearing from you!

Happy Holidays and Warm Season’s Greetings!

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To all our friends, neighbors, family and clients – we are so proud to have been able to work with you and be a part of your lives! As we end this year and turn our focus to 2013, we just wanted to take a moment to thank you for all that you bring to our lives.

We have some exciting plans in the coming year and hope to bring more success to all your real estate endeavors. With each transaction that makes it to the closing table in the coming months and years ahead – we know that new and exciting things will continue to follow for all of us.

On behalf of the entire group – Happy Holidays, Season’s Greetings, Peace and Joy!

I Need Your Help! Build a Better Future for D.C. Kids by Supporting Our Charter School

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I’m always here to help with your real estate questions and needs. But today, I’m turning the tables: I need your help for a project that stirs my passion.

I am a school board member for the E.L. Haynes Public Charter School in northwest Washington, D.C. E.L. Haynes is one of the highest performing charter schools in the city. Our school outperforms other charter schools citywide year after year.

Unfortunately, we have difficult issues to address. Two-thirds of our students come from low-income households, and these children often face difficult challenges. Citywide, just 9 percent of Washington, D.C., public school graduates earn college degrees within five years of receiving their diplomas. Our city is starved for quality high schools.

At E.L. Haynes, we want to turn these statistics around.

Construction on E.L. Haynes is well underway. $20 million of public and private money has been invested to turn an abandoned site into a leading-edge school devoted to educate our children and become a growing, dynamic part of our community.

But there is a problem: we have a $300,000 gap – a gap we need to fill by the end of 2012.

There are three ways to get involved:

1.Take a tour of this beautiful building.

2. Watch and share this video with friends, family and neighbors.

3. Make a gift to the E.L. Haynes Public Charter School. Your support will go a long way toward making public charter school education possible in our city.

To learn more about the E.L. Haynes and to take a tour and donate, contact Julie Green, the lead fundraiser for the school. Email her at jgreen@elhaynes.org or call her at (202) 667-4446.

Your generous gift will help ensure that Washington, D.C., kids have a quality education and a chance at a successful future.

Carlos Garcia      Eng Garcia Properties                     (202) 290-1313                   carlos@enggarcia.com

Why your Real Estate Agent Must be a Marketing Maven

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When I started in this business, I thought my passion and knowledge for real estate would be the chief reasons why clients would hire me as their listing agent.

Real estate passion and knowledge are vital, of course, but I learned that a listing agent isn’t worth much unless he or she is amazing at marketing properties.

In other words, your listing agent needs to be a marketing maven.

Your listing agent must carefully craft the presentation and message to entice the greatest number of interested and qualified buyers, both in the words that are used and the images that homebuyers see.

When marketing a property, you must put your best foot forward when presenting these key features:

• Location (of course)

• Home size and condition

• Lifestyle choice (is the home near lifestyle amenities they want?)

If your property is the home of someone’s dreams, they must be able to recognize that by how the property is listed.

Your listing agent must be skilled at getting this message out, especially on the Internet where everyone, regardless of their demographic, is home shopping.

Getting buyers to view your home information leads to visitors coming in for showings and attending your open house. To sell your home for the price you want, you need a lot of people coming through the door, and you need an agent to make that happen.

If you are looking for a highly responsive agent who can make these visits possible, give us a call or email us at Eng Garcia Properties when you’re looking to sell in Washington D.C., Maryland or Virginia.

Eng Garcia Properties 202/290-1313 carlos@enggarcia.com

Ready to Buy? 3 Real Estate Factors to Consider

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I love to see buyers’ eyes light up when they really want a property. Once that light bulb goes off, the buyer’s inevitable next words are, “What’s next?”

A bit of science and a bit of creativity answers that question. There are three factors you must study:

1. The marketplace. Any good real estate agent will do a thorough analysis of the real estate transactions in the area. This is the “comps” – a comparable analysis. You need to answer this question: “What’s the environment in which I am making this offer?”

2. The seller’s mindset. You must judge the seller’s mindset – his or her “world view.” A good real estate agent collects information from the other side – little by little – gathering up as much information as he can with repeated calls and meetings. You and your agent must do your best to analyze the seller’s situation and what he or she is trying to do, regardless of market conditions.

3. Your mindset. What do you want to do as a buyer? You need to determine where on the continuum you fall. Are you so passionate about the home that you must get it no matter what? Or are you the cool, calculating investor who won’t be satisfied unless you steal the property at an amazing price? Or are you in somewhere in between, like most buyers? Your answer helps drive the strategy.

To discuss real estate buying strategies, please give us a call. Eng Garcia Properties has some of the top buyer-agents in the Mid-Atlantic region, including the top two agents here in Washington, D.C.

Slow and Steady: How to Build Wealth through Real Estate

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Here’s a helpful analogy to buying a home as an investment: think of it as a bucket.

You have an empty bucket when you first buy a real estate property. If you put 10 to 20 percent down on the purchase, you have filled your bucket by that percentage. Then, your renter starts filling the bucket slowly for you as their rent pays the loan’s principal and interest.

Over the course of a 15-year or 30-year loan, you have a full bucket that other people have paid for. At that point, the home generates pure income after you have managed the flow of payments and cared for the property over the years.

Sure, some real estate investors still “flip” homes for a quick profit, but for most of us, slow and steady wins the race.

Beyond Income from Renters

In addition to renters, there are two other ways to earn real estate income: appreciation and tax deductions.

Despite the bursting of the real estate bubble, there are certain neighborhoods – such as those here in Washington, D.C. – where home values are improving. We have tools that can help you project the appreciation of real estate that we’d love to share with you.

You also can gain value through income tax write-offs, such as real estate tax and interest on your loan payment. There’s also the depreciation income-tax deduction. You might not realize that this is the second-biggest tax write-off after your interest payment.

Ready to jump into the real estate game? We are the experts to turn to when investing in real estate in D.C., Virginia or Maryland. Call us or drop us a line by email, and we’ll be happy to answer your questions on these topics and others and devise a strategy that best works for you.

The Power of Low Interest Rates to Generate Real Estate Wealth

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Imagine a business investment in which you can know – to the penny – your costs for your two largest expenses. Wouldn’t that make earning money on your investment much simpler?

Of course it would. And that’s why real estate is such a great investment. Your two largest costs – interest and the depreciation deduction – are exact for the entire life of your mortgage loan. You sure couldn’t buy a restaurant or a small business where such variables are pinned down for you.

Not only that, but our local real estate market is stable and forecasts predict that it should remain strong for decades to come. Rates are low and not rising significantly anytime soon, and we no longer expect home values to decrease after our real estate purchases.

As an active real estate investor in Washington D.C. , Maryland and Virginia, one of my obsessions is to get all of my loans at fixed 30-year rates that, as you know, are at historic lows. When buying homes as investments, you need to appreciate the power of a low interest rate.

When I started in real estate almost 20 years ago, interest rates were nearly 10 percent. Today, the rates are around 4 percent. And some of my clients are getting rates at 3.5 percent, depending upon variables such as loan size, property type and the borrowers’ financials. Securing this “cheap money” is crucial to increasing your net worth and establishing your long-term financial health. The only way to borrow such money is if you have value to borrow against. So property can become the means to which you obtain such a loan.

Right now, every $100,000 you borrow will cost between $400 and $500 a month. That’s $300 to $400 less than when I started as an investor back in the early ’90s.

In real estate investing, it’s important to know the power of interest rates and how that and the depreciation deduction is fixed and easily calculated. Combine this with today’s environment of rising rents, and you have a great time to invest in real estate.

So do the math or, better yet, contact us if you’d like us to do the math. There’s nothing more we love than to run your numbers!

Washington DC, Maryland and Virginia Areas Showing Strong Signs of Seller Climate

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In 2007 and even as recent as last year, many sellers were hesitant to list their home on the market – and with good reason. Since then, we have been reporting some big changes across the board despite our market not being hit by the market crash as hard as the rest of the nation.

Here are some numbers as to how we are doing in some of our communities, which provides a snapshot as to why now may be the perfect time for you to reconsider whether or not you want to list your home. These numbers might surprise you.

Alexandria saw a 27% drop in inventory with nearly a 7% increase in sales volume.

Arlington experienced an unprecedented 44% increase in the number of sales and a huge decrease in inventory with 26% fewer properties on the market.

Fairfax also reported a decline in inventory with 21% fewer homes on the market, combatted by a 12% increase in sales.

Montgomery County broken down into apartments, condos and coops versus single-family homes stacks up like this: Condos and coops inventory is down significantly by 39% while sales are only reported down by 1%. Single-family home sales in Montgomery County were up 4% with a 22% drop in inventory.

Washington, DC saw a 13% rise in sales with a 32% drop in inventory for apartments, condos and coops. Single-family homes in DC accounted for 5% fewer sales and 35% fewer available homes on the market.

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With our extreme dip in inventory levels, and corresponding increase in sales – there is no question that sellers will enjoy the benefits of placing their home on the market now. Not only is there a strong chance for multiple offers and bidding wars for highly desirable properties but also sellers are able to demand top dollar for their homes.

To evaluate your situation and for a customized look at your home and what you might expect to receive for it upon sale, contact me today at carlos@enggarcia.com or 202.290.1313. We look forward to serving you!

How to Stay Competitive in Today's Market

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As a buyer in DC, Maryland and Virginia, where the market has now shifted toward a seller-controlled environment, you are facing sellers with more leverage because of the declining inventory.

And as would happen typically in a market where there are fewer properties and more buyers, we often end up with multiple buyers vying for the same property.

How do we handle that?

This is where we step in and institute some key techniques and methods that will put your offer on top. Imagine, a seller that has sat and watched the past five years go by with little to no control over their home selling situation. Now, they list their home and suddenly they are receiving not one, not two but several offers (if not more). Traditionally, you’d expect them to go for the one offer that is the highest price. But there are additional factors that could impact their decision.

How Badly Do You Want the Property?

A very important question that we ask our clients when dealing with a competitive situation, is just how badly do they want the property? Are they so in love with it that they are willing to obtain it at all reasonable costs? Is timing a factor? Is this purchase simply a passing-by interest that may or may not be essential for their happiness? Their answer will point to how we would approach the situation.

What Are the Internal and External Situations?

Once you have determined how important this property is to you – we move on to evaluating the environment. From an external perspective, we look at the overall marketplace and how it's been performing. We also gauge what a reasonable price to pay for the property while also considering the maximum amount you're willing to pay if competing.

From an internal point of view, we try to gauge the seller’s position and determine their motivation in selling their property. Are they looking to relocate and are on a time constraint? Are they selling for financial reasons? Through our conversations with the listing agent, we develop a strong rapport with them and begin to understand the areas where we may have more leverage.

Finally, we also look at the internal situation of the buyer. If there are factors that make this a key purchase to pursue, such as wanting to lock in a specific interest rate, a family situation or financial motivation, we approach it more aggressively.

How Can We Stand Out in a Crowd?

Once we have evaluated everything, we then work on accomplishing those goals. There are many ways to stand out in a crowd, particularly when it’s a matter of several buyers competing for one property. Some of the things we can do to present a more attractive offer to the sellers include eliminating contingencies in the offer, offering a larger down payment and catering to the seller’s needs.

Contingencies are set up to protect both the buyer and seller but in Maryland, Virginia and DC, the buyer has a very powerful right to walk away at any point after a home inspection is done. A way to get around this, thereby creating less hassle for the seller without sacrificing the peace of mind that you as a homebuyer desire, is to have a pre-offer home inspection conducted.

Larger down payments make for more secure mortgage processing and therefore a smoother process overall. Not only does this demonstrate to the seller that you are very serious about purchasing their home but it also sets you apart from other offers where there may be lengthy procedures before the closing.

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There are numerous things that we can do to work with your situation and we devise a strategy with each unique case. Contact us today to find out how we can assist in your real estate endeavors! We can be reached by telephone at 202-290-1313 or via email at info@enggarcia.com.

Housing Recovery Finally Hitting Most Markets Across the Nation

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After what seems an eternity, many markets are finally reporting strong improvements across the board in their local real estate markets. In a recent article, CNN Money reported an increase in home values for the first time in five years. This is promising news for much of the nation though our own vicinity has not been as hard hit by the recession and housing crisis of 2007 as it has everywhere else. 

This recent Washington Post article, along with many other reliable sources, cite the DC area as being one of the last in the country to get hit by the recession and the first to recover. With nearly 50,000 jobs created just last year and a continuously strong job market, we have been fortunate to avoid the crippling effects of high unemployment. Those same national unemployment numbers had a derailing impact on many markets.

The sales numbers in our area of DC, Maryland and Virginia show promising increases with a 10% jump in sales volume and an unprecedented 5% increase in prices this year compared to last. Inventory continues to dwindle, leading to multiple offer situations and even bidding wars for especially desirable properties.

We spend a good amount of time following national, regional and local trends. If you would like to access some of the research that our team collects so you can get a snapshot of the marketplace, we invite you to contact us at either info@enggarcia.com or by calling 202.290.1313. We look forward to hearing from you!

Real Estate Trends in the DC Area Continue to Surge Upward

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As a real estate investor, former attorney and avid real estate enthusiast – when I made it my business to practice full time I already knew what I was getting into. So when the market crashed in 2007, like countless other industry professionals, I was taken aback by the scale and magnitude of this historical occurrence. But today, I write with hope because what we've seen lately only further corroborates what many already know: real estate goes up and real estate goes down.

Today, it is headed up and it’s doing so with steady strength. Now, foregoing all the fancy analytical speak and statistical tools – I just want to point out our reality using the basics as a benchmark. Looking at the simple trends of job growth along with the concepts of supply and demand – we are in a very good place right now.

Buyers Enjoying Great Deals

As we have had for some time now, buyers continue to be able to access extremely low interest rates that have made borrowing cheaper than it has ever been before. Our local jobs market remains one of the strongest in the country with the US government being the top employer in the area. As a result, our economy forges on with strength and we all know what a strong economy means to the real estate market.

Sellers Gaining Leverage

Within this steady growth we are seeing changing patterns in terms of inventory of available homes as well as the number of sales taking place. As inventory continues to decline (at last check the DC area was down 26% from the same time last year) and sales are on the rise – it’s no wonder that our market is shifting. In fact, I’ve been alluding to the shift in our market for some time now. How does it impact sellers? We end up seeing multiple offers, sellers in situations where there are bidding wars driving up the price of the home and sellers realizing they have the upper hand.
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These are just a few of the very impactful elements of what drives our market. To see how this all relates to your situation specifically, we invite you to sit down with us and explore your goals. We’d love to make your real estate dreams become a reality!

The DC Market is Shifting

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In the nation’s capital, the sun is starting to shine after one of the bleakest times in recent American history.  According to RBI (Real Estate Business Intelligence), home prices in the D.C. metro area are up 11.2% in the spring of 2012 to $392,500.  This is the largest gain since 2006.  In fact, depending on the neighborhood in the District, Maryland, and Virginia, prices have remained steady since 2009 or early 2010.

Factors Behind the D.C. Housing Market’s Increase in Home Prices

Once the D.C. housing market started its recovery, prices did not automatically shoot up; instead they slowly increased. Many sellers have been reluctant to put their house on the market due to the strained climate in the real estate market. This has led to a lack of inventory (inventory has dropped 27% over the course of a year) and because of this lack of inventory, the spring of this year has been very good to sellers. Residential interest rates in the D.C. metro have also reached historic lows. Homes on the market are also getting sold at a much quicker rate; in May of this year a property spent an average of 48 days on market, down 28% from May of 2011.

How YOU Can Take Advantage of the D.C. Market
If you have talked to a real estate professional in the past couple years and left feeling pessimistic about the market, now is the time to engage a professional again.  Depending on the community and price point, it may be a very safe time to sell.  The best way to take advantage of the rising home prices in the D.C. metro area is to engage a real estate professional and have a conversation about how to proceed. If you are interested in selling your home, now is the time to talk with a trusted and experienced real estate agent to identify your options!

How Declining Inventory Impacts Home Buyers In Today’s Market

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The number of homes available on the market today has sharply declined, reflecting the recent jump in sales across the board. Likewise, our inventory has been declining. How does that impact buyers today?  Considering that for the longest time now, buyers have been in control, what the current situation does is it changes the stakes in how quickly buyers need to act. Once their dream home is found buyers will need to act fast and furious to express their interest in the property of their choice.

Multiple Situations With Bidding Wars Galore

Many times nowadays, sellers are receiving multiple offers in a matter of days and sometimes hours after listing. Some homes sales are gaining momentum from the moment the property is displayed on open house despite their not being available on the market as of yet. Even if your offer is on the table with the seller, the buck does not stop there. You will also have to make sure you made a competitive offer that warrants enough attention from the seller. Especially when the property you are vying for is ideally situated in a desirable location, keep in mind that other buyers are just as serious and may be willing to pay top dollar.

Several Factors Influence Buyers’ Strong Demand Today

Whether buyers are anxious to lock in the historically low interest rates still available out there today, or if there is a personal situation such as a job relocation that warrants an immediate need, buyers want to move in today. In addition to the low home prices - which seem to be rising slowly but steadily across the nation - buyers are motivated by the prospect of a changing market that will eventually bring prices and interest rates up again.

Stronger Assertion and Aggressive Offers Are In Order

The only way buyers can expect to get the property of their choice is to present strong, competitive offers that will compel the seller to accept. Gone are the days when buyers were able to leverage their position and get hefty seller concessions. Over our local region we have seen a remarkable decline in the number of homes available on the market – sometimes as much as 30% less than what they were just a year ago. The numbers are staggering even when you look at one month after another – and this trend does not seem to be slowing down.
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If you are considering buying a home before it becomes an impossible dream to find your perfect home, contact us today!  We have some great ideas on how a savvy buyer can compete and increase the likelihood of getting the contract. Not only that, with my legal background we will make sure there are added provisions in the contract that protect you. We look forward to serving you!

Washington DC Market Continues Shift In a Positive Direction

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Many sellers have been sitting on the fence about whether or not to list their homes on the market. The market has been an ever-evolving one and in our local area we have seen continuous improvement since 2009.  It was then that we began experiencing stronger sales and slow yet steady recovery.

Today, we are still at that teeter tottering steady level of sales but there is a remarkable change in our market that has changed the stakes.  Now, for the first time in several years, we are reporting a dramatic decrease in available homes on the market.  This lower inventory is significant as it drives our marketplace toward higher prices and corresponding stronger home values.

Inventory Down Significantly Across the Area 

SINGLE-FAMILY HOMES

Looking at the numbers from the previous year as compared to the same time frame in 2012, the first four months of the year logged an unremarkable 1.4% fewer homes sold in the Montgomery County (Maryland) area.  The big news, however, is that we are reporting a sizable decrease in the number of available homes at 15% less than the previous year.

Similarly, the end of 2011 marked a 30% decline in inventory as compared to the previous year in the Washington DC market.  What is interesting is that the number of homes sold does not correspond with inventory figures.  In other words, the buyers that did buy about the same number of homes in 2011 had only 70% of the previous year’s inventory availability to choose from.

CONDOMINIUMS AND COOPS

As was apparent in single-family homes, condos and coops also experienced a relatively stable number of sales from one year over the next but the noteworthy activity took place in terms of inventory.  The number of new listings available on the market saw a 26% declined in 2011 as opposed to in 2010.
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In light of today’s changing market it is a good idea for homeowners considering selling their homes to list now while they can enjoy favorable market conditions conducive to sellers’ interests.  Multiple offers, bidding wars, lesser or no need at all to offer concessions to buyers plus a very quick turnaround time to sell are all great reasons to list now.  If you would like to explore your options, learn what your house would sell for today or review some trade-up properties to move into, contact us today!  Our success is in your success and we look forward to helping you achieve your real estate goals.