***UPDATE: The Monarch has converted remaining inventories into apartments. With that said, they are not currently selling condos anymore… we’ll keep you updated if anything changes!

The luxurious new Monarch condos in Alexandria VA are nothing short of spectacular. They are positioned as prime Alexandria, Virginia real estate where the DC waterfront, King Street metro, and Whole Foods are just a short walk away. The building has retail stores located on the bottom floor including everyone’s favorite… Starbucks! Of course, you still have your privacy with the high iron fence around the courtyard and building, where only residents have access. Residents also have access to the rooftop decks that let you enjoy the views of Old Town Alexandria VA. Amenities include: Fitness Center, Courtyard/Outdoor Common Area, Community Room, Media Room, Rooftop Space, Mixed-Use (Retail, Hotel, Office, etc.), and Garage Parking. You’ll find top-of-the-line stainless steel appliances, hardwood floors, and granite counters in each condo. The one bedroom condos start in the $400’s and two bedrooms start in the $500’s.

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Foreclosures in Northern Virginia, Maryland and Washington DC have been fueling price depreciation and a glut of housing inventory over the past several months. Today, the White House announced their policy to freeze subprime interest rates for 5 years in order to help hundreds of thousands of homeowners stay in their homes and avoid foreclosure. The deal with the mortgage industry is “a step in the right direction” after the increasing number of foreclosures have driven home prices down, hurt neighborhoods and threatened the economy.

The plan will not effect everyone facing foreclosure, but only consumers with subprime loans, which account for 47% of recent foreclosures. The plan only applies for people living in their homes and who have not missed any mortgage payments. Officials say they hope to save 300,000 families from falling victim to foreclosure proceedings and help curtail declining homes prices and access inventory over the next few years.

Many home owners unaffected by the plan are voicing their anger as they feel that the government should not step in to ’save’ people who made poor decisions to lock themselves in risky subprime loans…”Why should we have to pay for our high mortgage if subprime borrowers get an easy out?”

I’ll leave this up for discussion. Do you think the government should intervene in a situation like this? Should they specify only certain “subprime” borrowers? Is it fair to other homeowners facing foreclosure with similar adjusting rates that are not “subprime”?

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Several news sources, including this article from MSN Money, have been saying that now is a great time to buy into real estate. Whether as an investment or as your primary residence, real estate inventory and low interest rates are primed for a buyer’s market in Virginia, Maryland and Washington DC.

Recently on CNBC, even Donald Trump states that “now is the best time to invest” in real estate. Trump also mentions that home owner’s should “contact their bank to negotiate a deal on their mortgage” when facing foreclosure.

Click here to watch the video snippet posted on You Tube.

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If you’re as busy as the next person in the DC Metro area, then you probably have not had the time to pick up a newspaper or watch more than 30 minutes of the news. However, I’m sure you have heard from co-workers or friends about the negative press surrounding the mortgage and housing markets. The rancor of this situation has caused some sort of paralysis in the consumers. But where there’s adversity, there’s opportunity. By human nature, we tend to listen to our friends or mentors or should I say go along with what everyone else is doing. We wait for someone to say “It’s OK.” Just call this your little push in the back.

If you have been researching home prices then you have probably seen that the national average is down. This will continue, but remember three things. The first is that the markets that have been hit the hardest drag down the average depreciation (Miami, California, Las Vegas, Phoenix). Secondly, homes that were priced $500,000 and higher were more inflated than the entry level housing. The bigger they are the harder they fall. When those homes depreciate, they will be affected more than the lower priced homes. Finally, because dismay can create an instinctive reaction among sellers and the market perception keeps buyers hesitant, prices may be lower on the way down that at the bottom of the barrel.

What does this all mean? It’s a GREAT time to shop for a moderately priced home in Northern Virginia or Washington DC. When the market has found a solid bottom and the demand returns, there will be a lot less ambiguity about what a home in your area is really worth. Sellers will be less willing to entertain offers, and selection will decrease.

The news might have you thinking that it’s impossible to get a loan these days. This is far from true. Experience has given lenders a clear picture of the kinds of loans that shouldn’t be offered again. But the loans that have performed more consistently are still available, and you might be surprised what you can qualify for.

Banks like to see strength in at least 2 of the 4 areas:

1. Credit score and credit history
2. Sufficient, verifiable income for the payment amount and monthly debt
3. Equity in the property or down payment
4. Liquid assets (money in the bank, stock market, IRA’s, 401k’s, etc…)

The items that will make your loan more difficult to obtain:

1. Non-Owner Occupied (investment property)
2. Stated or No Income (meaning you can’t prove income with W2’s or Tax Returns)

Bottom Line: If you can justifiably afford to make a regular house payment, there’s a great chance that this can be proven to a lender, who will in turn be glad to give you an excellent loan.

There’s even further incentive to act on this information. Even if prices decline another 10%, due to the market hysteria, there are sellers out there right now selling for 20% under current appraised value. So you might find a house for $300,000 today that will end up being worth $330,000 when the market bottoms out. A catch 22, but true. This also means that your value is likely to be at it’s highest as far as refinancing is concerned, and remember that equity is one of the positive factors banks consider.

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Many home buyers are not only unfamiliar with the concept of real estate commission rebates in the DC Metro area, but remain unsure whether these home buyer rebates (sometimes called “credits” or “refunds” or “cash back”) are even legal in Northern Virginia, Maryland and Washington DC at all. I’ve run across the same questions time and time again from first time home buyers on this topic…Where does the money come from? How does a Realtor commission rebate work? Will a real estate agent refund effect the price I pay for the home?

Now for the answers -

1. YES! Real estate agent rebates are legal in Northern Virginia, Maryland and Washington DC.
2. The money comes from the seller’s agent or builder, who offers the buyer’s agent a predetermined commission amount (typically 3%), agreed upon with the seller at the time the property is listed. The buyer’s agent rebates a portion of their commission to their client (home buyer).
3. Home buyer rebates DO NOT effect the price of the home- since the amount of the commission offered to the buyer’s agent is predetermined prior to listing the home, it doesn’t effect the home price if you buy with or without an agent, the seller’s agent or builder simply pockets the entire commission (many times 6%). On top of that, the home buyer will not have a DC Metro area real estate agent’s representation looking out for their best interests!

Still don’t believe me?? Well, check it out for yourself, Home buyer rebates ARE legal in VA, MD & DC according to the DOJ. The U.S. Department of Justice (DOJ) recently launched a new website on competition in the real estate industry. The Antitrust Division of the DOJ promotes and protects the competitive process through the enforcement of antitrust laws. Simply put–they prohibit price-fixing. The site was created to educate consumers about the benefits that commission competition brings to the consumer of real estate services. The chart below from the DOJ website shows the median commission paid by consumers per home between 1998-2007.

Simply put, buyer agent rebates make buying a home more affordable… period. Most people generally think of a rebate as a cheap, minuscule amount or barely even worth the effort of mailing out. However, when talking about Realtor rebates in real estate, we’re talking thousands of dollars back to you, the home buyer. Especially since the average home in the Northern Virginia/DC Metro area is ballparking (apparently not a real word) around $500,000, a new home rebate at this price with HomeZill would equate to $10,000! Definitely NOT chump change…

I ran across an interesting piece on Cash Back Rebates to Home Buyers, posted by a real estate agent in Illinois. BTW- Illinois is among the nation’s 37 Realtor rebate friendly states.

Thinking about buying a home in the DC Metro area soon? Call 1-888-998-9455 to receive up to a 2% cash back Realtor rebate when buying any new home construction or resale home in Northern Virginia, Maryland or Washington DC. Whether you’re a first time home buyer or seasoned real estate investor, you deserve a rebate for doing your share of the leg-work! To learn more about our 2% HomeZill.com Realtor rebate program, click here.

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Everyone needs a little extra spending money for the holidays. You have a chance at winning a $1000 Visa gift card to use wherever Visa is accepted. Yes!! You heard it right. $1000 smackaroos.

It’s so simple. Just comment on this post. The topic has to do with something about Real Estate. It can be an intelligent, insightful comment or just what’s on your mind after seeing the inflatable Santa and reindeer in your neighbor’s front yard. (though you never know — a comment like, “Tyler is the best blogger on the internet!” might help… )

(The winner is determined by a geeky spreadsheet random number generator)

I even pay for the shipping! You’ve got everything to gain and nothing to lose!

The “contest” closes Saturday at 7:00pm EST.

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