CREIG SAYS...

Dear Friend:

The Northrop Team hopes to see many of our friends and clients at our booth at tomorrow's "Frederick In the Streets" festival. The event on Main Street is expecting 70,000 attendees and our Frederick sales team will be located between All Saints Street & Patrick Street on the sports block. This block has it all! Batting tees, Velcro wall, Bungee Run, Frederick Keys Baseball, and many other area vendors. Be sure to stop by and spin our Wheel of Fortune and pick up your free gifts! And say hello to our agents who are happy to talk in more detail about what's happening in the Frederick market. We cover downtown Frederick, and all of Frederick County, Urbana, New Market, Mt. Airy, Middletown, and points as far north as Thurmont. It is predicted to be sunny and 87 tomorrow so it's a great day for a street fair. And, of course, a great day to show off your home!

After a long, hot, summer, buyers are excited to tour homes in the cool Autumn air. So if you are on the market, be sure to pay attention to your landscaping and spruce up the exterior with fall plantings to really make your home shine.

Sincerely,
Creig Northrop

·  To view Northrop Team listings, click here.

·  To view Northrop Team Open Houses, click here.

SIX SIGNS YOU ARE READY TO BUY

Last week we hosted a free buyer seminar and got the chance to meet with a few investors, first time homebuyers, and couples looking to move up to their next home. It was a great opportunity to hear directly from potential buyers and answer their questions. The fundamental questions were the same. Do I buy first or sell first? If it's a buyers market, how does that help me? How do I find the right mortgage. What can I do about capital gains tax?
Figuring out whether you're ready to buy a house -- whether you're a renter or are aiming to move up, size down, or invest -- can be a daunting task.
Our team has settled 641 homes so far this year, (111 more than this same time last year) so we shared our experiences with these potential buyers helping them discover keys to negotiate financial incentives that may not have been available in the boom of years past. There is, no doubt, the need, desire and ability for people to buy and sell homes right now in our area. Yes, real estate has changed in many markets in our country. But our area has been somewhat protected. So don't be misled. There are still motivated buyers and sellers out there. Good homes still sell quickly and proper pricing is more critical than ever.

So are you ready to make the move? You might be if you:
1. Are familiar with the market. If you've been paying attention to how much houses are listed for in the neighborhoods you're eyeing and have a realistic view of how much a house will cost you, you're in good shape. But if you're dreaming about that big corner house with no clue about it's asking price, you may want to spend some more time becoming familiar with the market and how much houses are going for.

2. Have the money for a down payment and closing costs. The down payment is a percentage of the value of the property. Freddie Mac says the percentage will be determined by the type of mortgage you select. Down payments usually range from 3 to 20 percent of the property value. Also, you may be required to have Private Mortgage Insurance (PMI or MI) if your down payment is less than 20 percent. Closing costs include points, taxes, title insurance, financing costs and items that must be prepaid or escrowed and other settlement costs. You can expect to pay between from 2 to 7 percent of the property value. Generally, buyers will receive an estimate of these costs from your lender after you apply for a mortgage. And in some instances in today's market, sellers may be willing to pay a portion of closing costs.

3. Know how much you can afford. Freddie Mac says that as a general guide, your monthly mortgage payment should be less than or equal to a percentage of your income, usually about a quarter of your gross monthly income. Also, your income, debt and credit history go into determining how much you can borrow. As a general rule, your debt -credit card bills, car loans, housing expenses, child support -- should not be more than about 30 to 40 percent of your gross income.

4. Know what additional expenses will come with owning a home. This includes homeowners insurance, utility bills, maintenance costs -- roofing, plumbing, heating and cooling.

5. Have your credit in good shape and make sure your credit report is accurate. Potential lenders will view your credit history -- how much debt you've accrued, how many accounts you have open, whether your payments are made on time, etc. -- to determine whether they'll give you a loan. You should get a report from each of the three credit reporting companies: Equifax, Experian, and Trans Union.

6. It's best if you haven't made any recent major purchases, particularly a vehicle. If you do, you may have a harder time getting a loan -- or it could potentially lower the amount you'll be approved for.

Once you decide you're ready, time is still of the essence, so you'll need to be prepared to move quickly. Over 40 percent of properly priced homes and condos sell within 30 days, and new listings come on the market daily allowing for good choices for buyers to select from. We are seeing properties in the $300,000-$500,000 price ranges that are priced correctly are selling quickly, as buyers at this range are able to solidify financing and are armed with low interest rates.

Real estate remains unquestionably the best investment most people can make. It provides the best opportunity for most people to take advantage of the concept of leverage that they will ever see. You can invest $50 thousand in the stock market and if the market appreciates 10%, you make $5 thousand. If you invest the same $50 thousand as a 20 percent down payment on a property selling for $250 thousand, you only need 2% appreciation in your property value to see the same profit! Or, if you are fortunate enough to get 5% appreciation you get more than double the profit that you would get from the stock market.

The most savvy buyers and sellers know it is always a good time to buy, sell, or invest in real estate!

Don't Miss Our Upcoming Events:
Friday, October 19th
From 9am-4pm!
We are participating in the 50 PLUS Expo
Presented by the Howard County Office on Aging

·  Wild Lake High School

·  5460 Trupeter Road, Columbia, MD

·  Free Admission

·  Over 140 Exhibitors

·  Educational Seminars

·  Health Fair

·  Flu Shots for adults over 50

·  Entertainment, Food & Refreshments
Hope to see you there!

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