Market switches to buyers’ favor

Friday, March 30, 2007

She and her husband, Sam, bought a house in Newburg when Sam started work with the Woodrow Wilson Bridge project. They signed the contract for the house in March 2005, expecting to move into the new home by June. Because of water issues in the neighborhood, they were not able to move in until January 2006.

Now, Sam has a new job in Louisiana, and the Erwins want to sell their home. They put a Realtor sign up on Jan. 2 and have had 15 people interested in their house, but so far no takers.

‘‘First I couldn’t get into the house, and now I can’t get rid of it,” Erwin said.

Bill Hocker, branch manager at Countrywide Home Loans in Waldorf, said the buyers’ market that has been created means ‘‘this is probably the most opportunistic time in our industry to buy a home — ever.”

Hocker said sellers are more willing to pay more of the closing costs to get their home sold, which means more options for buyers. ‘‘A buyer might be able to get a home for $400,000 that was worth [$450,000] a year ago,” he said. ‘‘The buyers have the luxury of asking for more. The art of the deal is what it’s all about.”

Lenders all over Southern Maryland are stressing that 100 percent loans are still available, despite rumors to the contrary.

‘‘The only thing that’s disappeared is 100 percent loans for people who don’t qualify,” Hocker said. With prices ballooning for several years, he said sellers are having to be more realistic.

‘‘The last five years haven’t been real life in the real estate industry,” he said. ‘‘I am so excited about the next two years.”

Tom Earnest, a longtime fixture in the region’s real estate scene and owner of Century 21 Comstock⁄Earnest Realtors in Waldorf, said he does not think there will be a significant impact in Southern Maryland from the increase in foreclosures nationally.

‘‘It’s not as dramatic as on TV and other areas of the country,” Earnest said. He said the biggest problem has been predatory lenders who sell loans that homeowners should not have, but in a tight-knit area like this one, once a Realtor finds out about such a lender, they spread the word. ‘‘If it happens one time, the Realtors won’t use them again,” Earnest said.

He said the houses available for less than $300,000 are selling quickly; it’s the homes above $400,000 that are slowing down.

‘‘People can’t necessarily get what they could a year ago,” he said.

The homeowners who are feeling the least impact in decreasing sales prices are those who bought their homes before the boom.

‘‘You could have bought a nice house for $300,000 six or seven years ago, and last March you might have got $600,000 for it,” Earnest said. ‘‘You can’t get 600 today, but maybe you get $500,000, 550. You’re still in great shape.”

Chris Lowe of American Home Mortgage in Waldorf stressed that there is still plenty of 100 percent financing for people who have decent credit scores.

‘‘The VA has always had 100 percent loans,” giving an option to people who have served in the military, Lowe said. Also, said the FHA is rumored to be working on ways to offer more 100 percent financing.

‘‘They’ve tightened up credit requirements,” Lowe said, but that does not make financing unavailable.