John Newman

The Economic Stimulus package that was approved today by the House is now in the Senate and rumors are circulating that the Senate may remove increases in FHA and GSE loan limits. This would not be good news. I just received this from the National Association of Realtors and wanted to post it for all. We need your support. We need to write or email our Senators and ask them to include FHA and GSE limit increases as part of their package.

Subject: Support Inclusion of Housing in the Economic Stimulus Package

Dear [decision maker name automatically inserted here],

As a constituent and a REALTOR®, I want to stress how important it is for the Senate to include increases for the FHA and GSE loan limits in the Senate's economic stimulus package. These provisions will create safe and affordable mortgage options for our state's homeowners and provide much needed stability for our local economies.

The critical role that Fannie Mae and Freddie Mac (GSEs) play in providing liquidity to the mortgage market has never been more evident than it is today. The national subprime meltdown has had a dramatic impact on both the cost and availability of mortgages in my market. Since August 2007, the interest rates for jumbo borrowers have been more than 1 percentage point higher than conforming loans, which can cost homeowners up to $400 month in higher interest payments.

Raising the GSEs' conforming loan limit will provide immediate relief to borrowers and alleviate downward pressure on our already fragile housing markets. According to the National Association of REALTORS®, increasing the GSE loan limit will result in more than 300,000 additional home sales and strengthen current home prices by 2 to 3 percent.

I also believe that increasing the FHA loan limits is critical to helping bolster our fragile housing market. Current law restricts FHA loans to levels well below the median home price in many areas of the country and caps loans in high costs states at $363,790. These limits are preventing many homebuyers from using FHA to purchase or refinance their loan. The proposed provision will increase FHA loan limits nationwide by raising the floor to $271,050 and the limit to 125% of local median home prices. These increases will help an additional 138,000 Americans purchase and 200,000 families refinance their homes safely and affordably.

I hope I can count on you to support including increases for the FHA and GSE loan limits in the Senate's economic stimulus package. Our national housing and mortgage finance markets need stability and an immediate infusion of liquidity. Both of these provisions are necessary if our nation's families, housing markets and economy are to move beyond the crisis they now face.

Sincerely,

I was doing a search for expired/withdrawn listings in Gambrills, Crofton and Odenton Maryland today. I could not believe the number of homes that had been withdrawn or expired in the last week. Unfortunately, many of these homeowners were not able to realize a goal of theirs and to move to that new home. I have found that there is a common thread to most of these properties.

The Home appears to be dated

The House has stained walls and/or carpets

The House was overpriced

In todays market, it is critically important to make sure that your house shines above the rest. If you want to sell your home, make sure you have the nicest house compared to the competition and make sure that it is priced correctly. Try and visit your competition to gauge your house vs. theirs. If I take a new listing I always make sure that I visit the other propertied to give feedback to my clients. As consumers you should do the same and be honest with yourself. If you find that your neighbors house came on the market for $10,000 less and has a brand new kitchen, and your kitchen is original then you may want to reconsider. If you would like more tips on selling you house for top dollar in the shortest amount of time visit my website at www.THINKNEWMAN.com or drop me an email.

Now is the time to look at Spec Homes. "Spec" homes or builders inventory are homes built by a builder that are currently not sold. In Anne Arundel County, MD there are several subdivisions that have "Spec" homes available. These homes can be purchased at huge discounts because the builder is trying to get rid of his inventory. I have witnessed several homes sell for 20-25% less than list price. If you are interested in purchasing a "spec" home and would like to negotiate the best price, offer a quick settlement with a large deposit. Remember these homes will not last long as inventories are limited. If you would like more information on "Spec" homes in Anne Arundel County, MD or would like to receive a list of homes available visit www.THINKNEWMAN.com or email me at jnewman@kwflagship.com

I remember buying my first investment several years ago and boy did I have a lot to learn. My first FLIP was a single family home in Lanham, MD. We purchased the home at a courthouse auction for $275,000 and sold the property for $355,000 about six months later. Sounds like a great deal doesn't it? Unfortunately, after fix-up costs, carrying costs, realtors commissions and settlement costs we made a whopping $5,800!! I quickly remembered all of these late night infomercials advertising how we could get rich by flipping houses. The worst part was that this was during a Bull Housing Market. I have since bought many foreclosures and have made some money and lost some money. The bottom line is that IT IS NOT THAT EASY. If you are thinking about spending money on some cd's while watching TV late at night, please send $5 to me and I will save you a couple hundred bucks and a lot of headache. Investing in Real Estate ISa contact sport. You need to be patient, set reasonable expectations and most importantly work with an experienced agent or investor. I always recommend that new investors start with townhomes or condos. Whatever you do, do not start with that home in your neighborhood that has been sitting neglected for several years. These money pits can be a big time loser for the novice investor. Look for "paint and carpet" deals. the kind of homes that are 60-80k under market that need cosmetic work. These deals have less profit potential, but also carry less risk. Remeber, start slow, build a network of contractors and learn your numbers. Once you have this down, then you can move on to the larger deals. On another note, do not pay for a list of upcoming foreclosures or houses that are in foreclosure. Sites like Realty Trac or other foreclosure sites charge money for information that you can get for free. If you would like a list of Free Accurate Foreclosure Sites, or would like to receive a list of foreclosures and possible investments in Anne Arundel County Maryland, please visit www.THINKNEWMAN.com or drop me an email at jnewman@kwflagship.com

Many of us have always dreamed of owning a home on the water, whether it be the bay, ocean or lake. Those of us that live in Maryland are blessed by The Chesapeake Bay, and the Atlantic Ocean all within our lovely state. With that being said Maryland has an abudance of waterfront homes. If you are thinking about buying a waterfront home either as an investment or as a primary residence, then Maryland may be the state for you. Building a home on the water has its obstacles and if this is one of your goals, you should consult a REALTOR that is familiar with the building codes, and regulations associated with building in a Critical Area. Anne Arundel and Queen Anne Counties have an abundance of waterfront homes with very impressive views. If you would like to see all of the waterfront homes currently on the market, please visit www.THINKNEWMAN.com.