How Do I Know If I Can Afford To Buy?

 Many people that think
 they can't buy, may
 actually be able. If
 you're not sure, it's
 smart to talk to a loan
 officer to see what you
 can do. If you're not
 ready yet, the loan
 officer can tell you what
 you need to do to put
 yourself in a position to
 buy. You can find out
 how much you will
 qualify for, and what
 your approximate
 monthly payment will
 be. Call me, I can help
 you set that up!

 Doug Barry
 Associate Broker
 Licensed in MD

 Long & Foster
 Real Estate, Inc.

   Doug Barry, Associate Broker

                     Licensed in Maryland
  Direct Line 410-207-4751  Office 410-583-5700  



You Could Lose Thousands
From What You Don't Know About Real Estate

Did you know that you may be paying thousands of dollars more in taxes than you need to? You may be making investments in your property to add value, which are really generating very little return on your investment. You may even be taking value away from your property. If your behind on your loan or struggling with your mortgage payment, and you pay someone to help you, you are probably making your situation worse. What you don't know about real estate can cost you a LOT of money! Whether you are buying, selling, staying put or planning for the future, becoming more educated in real estate can make a big difference in your life.

Income & Property Taxes

Sellers Beware of Non-Multiple Listing Service Listings

Making Home Improvements
That Pay Off

What If I'm Behind
On My Loan?

Five Reasons You're
Losing Money By Renting

Laws & Proposed Laws
You Should Know

Can You Count On Rates
Staying Low?


Waiting For The Market to Change
Could Cost You Tens of Thousands

The current real estate market is one of the best times any of us has seen in our lives to transition from one house to another, especially for anyone who is upsizing. Houses are at bargain-basement prices and interest rates are hovering at the lowest rates they have been at since the 1960's.

Many potential sellers have put off selling over the last few years, because they have been waiting for the market to turn around. While prices in most neighborhoods are not at the high levels they were at in 2005, throughout central Maryland, prices have gradually increased.

There is a natural tendency for sellers to think only in terms of the house they are in now. They think they can't get as much as they would have six or seven years ago, and want to wait until they can. But by waiting to get thirty, forty or fifty-thousand dollars more on their current house, they may very well end up spending seventy, eighty or one-hundred thousand more on their next one. For example, if someone owns a $150,000 house and is interested in a house that is currently worth $300,000, and if they wait for values to increase twenty percent, then they will gain an extra thirty-thousand on the sale of their current house, but the new one will cost sixty-thousand dollars more. In addition to that, it's very unlikely that interest rates will go much lower than they are now, but there is a real possibility that at some point rates will go up.

Assuming a ten-percent downpayment is made, the monthly payment now at four percent would be $1289.00 for principle and interest. Over ten years, that will add up to $154,680.00. In that time period, the homeowner will have accumulated equity on a property purchased at bargain-basement prices. If the home is purchased later at the higher price with ten-percent down, and rates have gone up to five percent, payments would be $1739.00 for principle and interest. Over ten years, that would add up to $208,680.00. Plus in this example, the homeowner has lost the additional thirty-thousand dollars in equity.

No one knows what the exact numbers will be. It will vary from area to area, and will depend on the exact amount of time and specific economic events. The numbers are just an example. But the principle is the same no matter what the exact numbers are. Home prices in most of central Maryland are much more likely to go up than down, and interest rates nationwide are also much more likely to go up. If you're thinking about moving, there has never been a better time.

Home Equity Continues To Grow Fast,
     As Many Markets Return To Normal Conditions

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