Why Interest Rates Should Pique Your Interest

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We wanted to remind you how important it is to take a good hard look at where interest rates are right now and consider whether that changes the real estate equation for you.  When I started buying properties in the nineties, interest rates were in the 8s, but today they are in the 3s to 4s.   Now you can get a 30-year fixed rate for 3.5% or less with some getting nearly 3% rates recently.  These rates have helped made home-buying affordable.

The interest rate makes a big difference.  Consider buying a $300,000 property with a typical 8% interest rate from the nineties, and your monthly mortgage payment will be $2,201.29.  Ouch!  But if you bought the same property today and took advantage of the rates, such as 3%, your monthly payment would drop by nearly $1,000 to $1,264.81.  If you’re on the fence about whether the real estate market is a good idea for you, think about those rates creeping up to say 5% and what that does to the same payment—it would go up by almost $400 from the 3% example.    

Keep in mind what the lower interest rate does for building up equity in your home.  With the high interest rates in the nineties, only about 7 or 8% of each mortgage payment covered principal versus interest. But with a 3 to 4% interest rate, about one-third of your payment goes to principal.   Imagine that!  Also, your total payment would be only 70% of what it would have been back in the nineties, and in absolute terms, your payments to principal are much greater, so you can accumulate equity much more quickly.  The rate at which you do so today in comparison to other times in history is remarkable.   

If you’re thinking about buying, now is the time to take advantage of the low interest rates.  A 30-year fixed-rate mortgage hovered at a record-low rate during 2012, but the rates won’t last forever, so there’s not a better time to buy than now. 

If you’d like to talk about getting into the market, call us today at 202-290-1313 or email us at carlos@enggarcia.com.

Low Interest Rates Mean Faster Equity

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You know that today’s historically low interest rates mean it’s a great time to buy a home, but did you also know that these rates in the 3-4 percent range can translate into building home equity more quickly than ever?

It’s true! That’s because lower rates result in a high percentage of each mortgage payment applied to your loan’s principle.

It’s amazing how things have changed since I started in the real estate business in the 1990s here in the Washington, D.C., area. Back then, interest rates were in the 7-8 percent range and about 7 or 8 percent of each mortgage payment went toward principle.

Today, 30 percent or more of a payment is applied to principle. Not only that, payments, in absolute dollars, are about 70 percent of what they were in the ’90s. It’s much easier now to afford the home of your dreams.

Call or email us, and we will be happy to discuss the implications of these low interest rates for you as a home buyer or seller. Truly, it’s a great time to buy investment properties or a primary residence.

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.