Rising Market Rates

Hi everyone, thanks for coming back to our real estate video blog!

So, my head has been spinning a little from the recent changes in rates. There have been a lot of articles out about rising interest rates. On June 4th an article came out titled “Will Higher Mortgage Rates Kill the Housing Market? Maybe Not”

What the article says is there is a cyclical loop when it comes to interest rates. It can be hard to know what is actually going on.

Well, to simplify things, as the economy improves it becomes less important to make money cheap.  Interest rates then rise and those rising rates can scare us in the real estate market. However, if rates are rising, it means the economy is improving. While it seems our economy is improving, we do not know if our economy is out of the woods nationally, though.

It’s very interesting as we observe rate movement; things that would appear to put downward pressure on the market (rate movement up) are happening because other things could place upward movement on the market (an improving economy, improving job market and consumer confidence).

What I can tell you as a real estate investor is, if it becomes a little more expensive to buy a property because of rising interest rates, it means the economy is improving. There are many buyers who have the ability to purchase my property if I am a seller.

I’d also like to note that we were at an all-time low in interest rates. Even if rates do increase to 5%, it isn’t the end of the world! I know I probably haven’t answered all your questions about rising interests rates, but I want you to know as we learn more and have more numerical information, we will share it with you!

We are data-driven here and love to research the real estate market! Thank you so much for joining us and I promise to keep you updated on the rising rates. If you have any specific questions please give us a call at 202.290.1313

Thanks for watching! We really do appreciate it!

A Good Listing Agent

Hi everyone. I wanted to talk to you about the value of a good listing agent. Recently we talked about the importance of a good buyer's agent and what qualities that individual should possess. A good listing agent, though, needs some different expertise.

When I got into real estate sales, I had already been involved in real estate. I had been an investor for more than a decade. I loved real estate and I was sure that my background as a lawyer and my passion would make me a great listing agent. I have to admit, though, it didn’t.

A good listing agent is a marketing maven. The number one thing a successful listing agent does is market the heck out of your property. They need to know how to present your home beautifully, how to represent and project the best qualities of your property.

The second part of their job is to make sure that your home is exposed everywhere, that the information is widely distributed. If they aren’t doing this, they are not a good listing agent.

Here, we understand the importance of marketing. Our marketing budget is six figures every year, $10,000-$20,000 a month depending on what we are doing. We can be very intense geographically and demographically. We are also one of the leading agent teams in the country for Zillow, which is the most visited Real Estate website online!

Give us a call 202.290.1313 so we can list your home the best way possible!

Finding a Good Buyers’ Agent in the DMV Area

Welcome back to our real estate blog!

We are the top team for Keller Williams in the D.C. and Maryland area. We also sell in Virginia! Today, I wanted to talk about the significance of finding a good buyers’ agent.

These days, D.C. is a highly educated area; people are very serious about engaging a realtor. We often find ourselves competing for the role of buyers’ agent.

When we talk with a possible client, we tell them without a doubt it is important to have an honest agent with integrity and who is competent. But that should just be your baseline. You want a realtor who is also extremely knowledgeable about the market, an agent who is passionate and learns as much as they can because they want to, not because they have to. That’s what sets us apart!

You also want a good negotiator, someone who truly understands how to get you as much as possible. A good buyers’ agent is highly motivated to make a buyer happy.

A good realtor will be an ambassador for you; they will represent you and your interests. And that buyers’ agent will have many extensive and positive relationships with people in your real estate market: consumers, agents, developers, etc.

I have a reputation among other agents that is fair and communicative, but I am still a bulldog on behalf of my clients. I am going to fight for you but do it in a way that doesn’t burn bridges, in a way that is ethical and fair.

We are ranked 11^th nationally with Keller Williams which is the number one brand in the country!

Thank you for watching our video blog and give us a call at 202.290.1313 so we can get started and represent you in today’s market!

Peak Selling Prices and Low Interest Rates Mean a Great Market for Everyone

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In 2007, the U.S. stock market peaked before the economy headed into recession. Today, the stock market is at about the same level. But this time, experts say, it’s different. Most companies have more cash and are more profitable in 2013 than 2007.

I think there are parallels between the stock market and the real estate market. Home prices are right around 2007 levels, but the market is healthier because of low interest rates. Just like the stock market, you are getting a better product for the same price. You can get more home for less money than in 2007 with a big difference in your monthly mortgage payment.

That’s the advantage for sellers. For buyers, the low rates mean you can return to the market at a peak price that’s still a better deal to sellers because of interest rates.

With interest rates right around the 4 percent mark, about one-third of your mortgage goes toward principal. That’s amazing compared to the days when between 5-8 percent of each payment applied toward principal.

Peak pricing for sellers and record-low interest rates for buyers means it’s a great time for both to enter today’s real estate market.

D.C. Condo Market: Great Time to Buy & Sell!

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Real estate statistics in our marketplace confirm what we’ve suspected – condo sales are hot! There is a lack of supply and high demand for condominiums throughout the metro D.C., Maryland and Virginia areas.

Stats show that condo sales in the region are up by 10 percent in 2012 over 2011 figures. And 10 percent is significant because it coincidentally matches the rate of real estate appreciation year over year.

Condos are selling quickly, too. Condo units sold in an average of 59 days in 2012, down from 76 days in 2011. Often, they sell even quicker. We sold our last four condos in 2013 in an average of just 7.5 days. That should give you a sense of the quick pace in the metro’s condominium market.

We at Eng Garcia Properties are obsessed with this type of invaluable data that helps us translate what the market is doing into outstanding marketing strategies that help when you are buying or selling real estate.

Are you ready to take advantage of D.C.’s red-hot condo market? Give us a call or drop me a line to learn more.

Keller Williams Named Tops in Customer Satisfaction for 2012

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In today’s shifting real estate market, it’s important to make sure your Realtor is devoted to your satisfaction as a customer.

And as a Keller Williams agency, we at Eng Garcia Properties are proud to announce that Keller Williams has been named the best in customer satisfaction for home buyers and sellers for 2012 by J.D. Power and Associates®. In addition, Keller Williams is the top real estate brand in terms of number of agents.

What does this mean for you as a client? It means that Eng Garcia is well-connected with our colleagues nationwide, making more real estate resources available to clients like you. And since we are a high-volume real estate firm, we have many of the best listings that attract buyers to our homes in Washington, Maryland and Virginia.

Overall, according to the report, customer satisfaction is down for both clients and sellers. Part of the reason, I think, is that markets are shifting and that makes it difficult to manage client expectations. Buyers and sellers simply don’t know what to accurately expect. And home buyers and sellers report that managing client expectations is important to them.

The good news is that we at Eng Garcia Properties do this well. The report states that sellers nationwide are getting an average of 89 percent of their asking price for their homes. In 2012, we were able to obtain an average of 95 percent. This indicates we’re doing a good job of monitoring the market and matching people with the homes that best suits their needs and lifestyle.

A big part of our success is our outstanding marketing processes that expose sellers’ homes to a wide audience. We also sift through the market data to help us effectively market and sell properties.

We hope you will drop us a line or call us so we can discuss the significance of this Number 1 ranking to you as a client.

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

A Lack of Homes for Sale – Not Sequestration – Key to Health of Our Real Estate Market

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A funny thing happened here in the Washington, D.C., area while the rest of the nation went through our years-long economic downturn. Our local economy grew.

Earlier this year, The New York Times Magazine reported that our regional economy has expanded three times as much as the nation’s economy. In fact, three of the top 10 richest counties in the United States are around D.C. in Virginia and Maryland. 

With 40 percent of D.C.’s economy tied to federal spending, there has been much speculation about how the budget sequestration will affect us locally. Any change in federal spending, according to one source cited in the article, might soften the market, but certainly not cause a crash.

Of course, we at Eng Garcia Properties are most concerned with the effects on our real estate market. From my perspective, the low levels of real estate inventory – not the federal budget cuts – have the most potential for dampening our local economy.

I’ve talked a lot recently about the lack of homes on the market in D.C. and nearby in Virginia and Maryland. Locally and in nearby counties, we are looking at two straight years of 25-to-35 percent inventory reductions. Just 24 to 36 months ago, we had twice as much available housing stock as we have in early 2013.

We at Eng Garcia Properties are here to help you navigate this tight real estate market, whether you are a buyer or seller. Please call or email us, and we’ll be happy to answer your questions and get started.