May 2010 Summary:

Source: RBI

By having seven schools in the top 100, MCPS breaks its own record of six, set in 2008. Last year, MCPS had four schools in the top 100.     The seven high schools are Richard Montgomery (33), Poolesville (59), Bethesda-Chevy Chase (63), Winston Churchill (75), Thomas Wootton (83), Walt Whitman (85), and Walter Johnson (95). The remaining MCPS high schools all finished in the top 3 percent of all schools in the nation.

MCPS is the only Maryland district with schools in the top 100.     “The Newsweek report is another confirmation that the reform efforts we have put in place the past 11 years are having a very positive impact,” said Patricia O’Neill, President of the Montgomery County Board of Education. “We have made a commitment to giving all students access to college-level work, so they are better prepared for the rigors of post-secondary classes.”    Several MCPS high schools made significant gains on the list from last year, most notably Poolesville High School, which jumped from 305th to 59th this year. The list is based upon the “Challenge Index,” developed by the Washington Post, which put out a ranking of Washington-area schools earlier this year. MCPS had five schools in the top 10 on that list.

Receiving a college ready score on an AP or IB exam has been identified as one of MCPS’ “7 Keys to College Readiness,” a series of K-12 benchmarks that lays out a pathway to college preparedness.     Students who succeed in rigorous classes, like AP, are more than three times as likely to get a bachelor’s degree than those who do not, according to college completion data.  Among MCPS students in the classes of 2001-2004, only 25 percent of those who did not take an AP exam earned a bachelor’s degree.

But among those students who took at least one AP exam, 60 percent earned a degree, and among those who scored 3 or higher on at least one exam, 76 percent earned a bachelor’s degree.    “By providing broader access to rigorous classes, we are giving our students a distinct advantage in college,” Superintendent Jerry D. Weast said. “Simply taking an AP class more than doubles a student’s chances of earning a bachelor’s degree, which leads to higher lifetime earnings and greater success in the workplace.”
The Newsweek list is the latest in a string of accolades about the performance of MCPS students:

• MCPS has the highest graduation rate among the nation’s large school districts, according to a report released by Education Week on Thursday. The MCPS graduation rate of 83.1 percent is significantly higher than the state and national rates.
• The class of 2010 has earned $232 million in college scholarships so far this year, an all-time record for the district and nearly $50 million more than last year.
• MCPS has been named one of five finalists for the $1 million Broad Prize for Urban Education, which recognizes large school districts that raised student achievement and narrowed the achievement gap.

America’s Best High Schools Rankings for All MCPS Schools

Source: Newsweek’s America’s Best High Schools 2010

See frequently asked questions about the list.

Source: MCPS, http://www.montgomeryschoolsmd.org/press/index.aspx?page=showrelease&id=2783

Questions?  Give us a call.  We’re here to help!

FHA mortgages have been very popular recently.  There are many reasons for this, including lower down payments, lots of options to obtain help from motivated sellers, and the ability for people with less than perfect credit to enjoy home ownership.

 Yesterday we received guidance from several lenders that FHA rules will be a-changing.  The guidelines will be tightened significantly in the coming weeks and months.  Here are some important changes that could affect your 2010 home purchase.

 *  The upfront Mortgage Insurance Premium (MIP) will be raised to 2.25% from 1.75%.  This will be effective in the Spring and the date is not known yet. 
Bottom line: you’ll pay an additional half a percent of your loan amount at settlement.

*  HUD has put in a minimum FICO of 580 for the 3.5% down payment.   This change will go into effect sometime in the summer.  Note, however, that most lenders have already raised the limit to a 620 minimum, so this is really not a big change, but there is a probability that we’ll see the minimimum FICO score with most lenders increase to 640.
Bottom line: It’s getting harder for anyone with less than pristine credit to qualify for a mortgage.

*  Seller concessions moving from 6% down to 3%.  This change will be posted sometime in February and will have an effective date in the early summer.
Bottom line note from Tom: as a buyer’s agent, this is HUGE!  I’ve had several cases over the past year of negotiating a 5-6% credit from the sellers.  If 3% is the new maximum, it’ll be harder to negotiate with the seller to lower the up-front cost of the home purchase.

 And don’t forget the TAX CREDITS that are set to expire in April!  So, to briefly recap why you need to MOVE NOW if you’re thinking of buying a new home in the coming year:

 Here’s what you can currently take advantage of:

 *  TAX CREDIT OF $6,500 to $8,000 for repeat *and* first time home buyers (if qualified).
*  The seller can pay up to 6% of the sales price of buyer’s closing costs. 
*  Upfront MIP is 1.75% (half a percent lower than it will be)
*  No minimum credit (FICO) score currently (with lenders usually requiring 620). 
*  FHA allows Non-Occupying co-signers for income only.  (FHA loans are the only loans that allow a relative to co-sign for the borrower and do not require the borrower to have any source of income.) 

I know this is a lot to digest, but I wanted to make sure all my friends have all the facts about the current market for real estate.

 Questions? Simply reply to this email or call us at 301.785.5889 today.  We’re here to help!

 (And thanks for making it all the way to the end of this important message!)

NAR FAQs About New Homebuyer Tax Credit Changes

It’s important to note the income and home purchase price limitations. 

Purchase Price: The credit is available for the purchase of principal homes costing $800,000 or less, period. 

Income: The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

We’ll post again when the extension is officially signed by the President.

Stay tuned!

Reuters polled analysts, who had forecast pending home sales to gain 2 percent in July.  Pending sales are 12 percent higher than they were last July. 

There is a one to two month lag between a contract and a home sale, so this index is a barometer of how contracts signed this month will turn into sales in the next couple of months.

With “normal” purchasers dropping out of the market after the summer selling season, we’ll be keeping a close eye on home prices in the fall.  Fewer “normal” buyers and more investors could mean that more homes sell on the lower end of the pricing spectrum. 

Also of concern is the end of the first-time homebuyer federal tax credit of $8,000.  This program ends on December 1, and you must SETTLE on your home (not just go under contract!) by November 30, meaning you need to be under contract by the middle of October to ensure you can close in time to cash in.

We anticipate a vigorous market through October for this reason, but primarily in the entry level price ranges.

Stay tuned!

According to the Real Estate Staging Association (RESA), marketed vacant and occupied homes once staged spent 85% and 89%, respectively, less time on the market than if they were unstaged.

Marketed vacant homes that were previously unstaged were not sold after 190 days on the market. Once staged, those homes only took 28 days to sell.

Marketed occupied homes that were previously unstaged were not sold after 57 days on the market. Once staged, those homes only took 6 days to sell.

Kittleman Realty Group provides free staging assistance to help our clients get the most money in the least amount of time.  We also have accredited professional stagers available to consult with you.

Just call 301-785-5889 and put us to work for you.  We’re here to help!

Sincerely,

The median size of  new homes, growing from less than 1,000 square feet in the 1950s to over 2,400 square feet in 2004, has trended back down recently.

In 2008, the median home size was 2,200 square feet. With the current recession, expect home sizes to shrink more.  According to a survey conducted by the American Institute of Architects (AIA), Americans are increasingly looking at smaller homes and lower ceilings, in part because of energy costs. “Home sizes have been trending down recently,” said AIA chief economist Kermit Baker. “The era of the ‘McMansion’ could well be over.”

This housing trend, along with other movements in the housing and building industries, such as geothermal heating and cooling, solar and wind generated power, recycled building materials, and nontoxic paints and carpets, is gaining momentum.  There’s never been a better time to really go green, and … just maybe… go off the grid too.

Are you looking for the perfect home, but torn between communities?  Would it be helpful to put the two neighborhoods side by side and evaluate each on schools, household size, diversity, and more?

Here’s your answer!  FREE community reports and comparisons:
http://www.kittlemanrealty.com/community_report.asp#

Check it out right now – no registration necessary!

Remember – we’re here to help!

If you are looking for help to prevent foreclosure, be sure the counseling agency is on the Department of Housing and Urban Development’s list of approved agencies. Visit HUD’s website for an easily searchable list of HUD-approved housing counseling agencies, or call 877-HUD-1515 (877-483-1515) for more information. If you are approached by foreclosure counselors–by mail, phone, or in person–make sure the counseling agency is HUD-approved before you do business with them.

1. Don’t pay an arm and a leg.

You should not have to pay hundreds–or thousands–of dollars. Most HUD-approved housing counselors provide no-cost counseling services and many more provide low-cost counseling. Do not agree to work with a counselor who collects a fee before providing you with any services or who accepts payment only by cashier’s check or wire transfer. In general, do not pay money to anyone unless you know exactly what services you will receive.

1. Be wary of “guarantees.”

A reputable counselor will not guarantee to stop the foreclosure process, no matter what your circumstances. Working with a legitimate counselor can certainly increase your chances of keeping your home–but be wary of people who promise a sure thing. Again, get the details of your transaction, along with any promises, in writing first.

1. Know what you are signing–and be sure you sign it.

Don’t let a counselor pressure you to sign paperwork you haven’t had a chance to read through carefully or that you don’t understand. Don’t sign any blank forms or let “the counselor” fill out forms for you. Be sure to talk with an attorney before signing anything that transfers the title of your home to another party.

1. If it sounds too good to be true, it probably is.

If you feel you may be the target or victim of foreclosure fraud, trust your instincts and seek help. For tips on spotting scam artists, visit the Federal Trade Commission’s webpage on foreclosure rescue scams. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Federal Citizen Information Center’s Consumer Action Website.

For more information, visit the Federal Reserve Board’s website.