These days, everywhere we turn there is a story about the dismal state of the real estate market, both locally and nationally. Sellers are second-guessing putting their houses on the market, while buyers are waiting to see what the future will bring in terms of housing prices. Creig Northrop, President of Creig Northrop & The Northrop Team of Long & Foster Real Estate, Inc., Maryland's #1 real estate agent, has a different perspective. According to Creig Northrop, now is the time for buyers to find their dream homes.

CREIG ANSWERS YOUR FREQUENTLY ASKED QUESTIONS (FAQs):

There so many homes for sale in Maryland. What does this mean for buyers?

The Maryland Association of Realtors' website (www.mdrealtor.org) indicates that the number of homes available for sale in the state of Maryland in July 2006 was 39,694, up from 18,507 in July 2005. With this quantity of homes on the market, buyers have a much better inventory of homes to select from in all price ranges.

Some buyers want to wait and see if prices will continue to drop. What is your opinion?

Sellers have adjusted their prices so their homes are saleable properties. This means that potential buyers have more time to make a decision, they have the option to do inspections, and they are no longer competing against multiple offers as they were this time last year.

Do you consider the current condition of the real estate market the end of the real estate "bubble?"

There is no such thing as a bubble, it is called growth. The Baltimore/Washington area is under a dome that will continue to protect home values because of the presence of government agencies, military bases, and the Department of Homeland Security. The National Association of Realtors agrees. According to an article published on their website on August 8, 2006, "The housing market is in a process of stabilizing with little change in overall sales volume expected over the balance of the year."

Many buyers feel that interest rates are too high.

This is not true. On Thursday, August 24th, mortgage company Freddie Mac announced that 30-year fixed rate mortgages fell for the fifth consecutive week to 6.48%, down from 6.52% the previous week. Historically, we have not experienced interest rates this low since the late 1960s. Interest rates now are excellent!

Will military base realignment have any affect on the housing market in Maryland?

Yes. We are already working with buyers coming into Fort Meade. Many more will be coming in the next few months. Approximately 10,000 new jobs are expected at Fort Meade as a result of military base realignment and new jobs at the National Security Agency. As a result of the expected growth, Governor Robert Ehrlich's office is in discussions with Anne Arundel County regarding expanding main roads to accommodate the increase in traffic; ways to improve area schools; building additional housing, and improving mass transit to handle the influx of federal employees and contractors. Fort Meade and the NSA combine to form the largest employer in Maryland. (see www.ftmeade.army.mil/)

Other areas of Maryland will also be affected by military base realignment. One 1,000 new jobs are expected at the Fort Detrick base in Frederick County. An additional 2,176 new jobs are expected at the Aberdeen Proving Ground in Harford County, not including the thousands of jobs expected by the National Security Administration.¹
What trends you have noticed over the last few years?

Many people are choosing to use full-service real estate firms instead of discount firms because unlike discount firms, full-service firms offer mortgage and settlement services, insurance, and marketing programs.

Firms such as ours offer a variety of specialists to meet the unique needs of today's buyers including Accredited Buyer Representatives™ (often referred to as "buyers agents"), Certified Relocation Specialists, Land Acquisitions Specialists, New Construction Specialists, and First-Time Buyer Specialists. In addition, our agents use a consultative approach with buyers, providing them with the information they need to make sound, educated decisions.

Sellers also benefit from full-service firms. Unlike discount firms, full-service firms spend quite a bit of money advertising their listings via print advertising and the internet. In addition, according to a survey by the National Association of Realtors^® (www.realtor.org), sellers who use full-service firms earn an average of 16% more for their home than those selling For Sale By Owner. In a slower market, this difference could translate into quite a bit of money. The Northrop Team offers additional services including complimentary staging consultations, virtual tours, and glossy full-color brochures.

What factors affect the sale of a home?

There are three main factors that buyers take into account: the location, price, and condition of the property.

We have no control over the location of our listings. However, we can assist sellers with the price and condition of their homes.

With our guidance, our sellers have adjusted their prices to make them more competitive.

Since there are many homes on the market, the condition of homes for sale is more important than ever. Buyers want to move in to a home that requires little or no work. This is why every one of our listings, regardless of size or price, receives a complimentary staging consultation. Our Staging Consultants tour the home, looking at it through "buyer's eyes." Then, they offer suggestions to help the sellers highlight their home's best features. After all, first impressions are lasting impressions!

What financing options are available to buyers?

There are a variety of financing options available today to help buyers purchase a home. In addition to traditional FHA, conventional and adjustable rate mortgage (ARM) loans, lenders have created a variety of non-traditional options. These include no-document and low-document loans, interest-only loans, and 103% loans.

Our In-House Mortgage Specialist, Michelle Mathews of The Mathews Lending Team of Prosperity Mortgage, says "Our goal is to make home ownership possible for everyone. We have a variety of great loan programs available. For example, nothing compares to our 30 year flex fixed rate loan. Also, exclusive to the Creig Northrop Team, some of their featured properties have special financing available—30 year fixed rate at 4.125% for the 1st year."²

There are also a variety of government loans available, including the CDA loan which gives first-time buyers the ability to buy more home for less. The CDA loan program offers a variety of loan options (FHA or conventional loans), with a variety of interest rates and loan terms, allowing borrowers more flexibility and buying power.

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¹ Source: "Fort Meade may gain up to 10,000 new jobs," by Tom Pelton & Phillip McGowan, Baltimore Sun, June 3, 2005

² Year 2: 5.125%; Year3: 6.125%; Year 4: 6.625%; Loan Amount: $700,000; APR: 6.309%; principal & interest at no cost to borrower available.


For answers to other Frequently Asked Questions (FAQs), click here.

OUR CUSTOMERS ARE SAYING...

"Our entire relocation process was superlative due to The Northrop Team! Thanks to everyone!"

~ Annette & Garry McDaniels

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