Some real estate pros say this winter in particular is a great time to sell a home. 6 Reasons Why This Winter Is a Great Time to Sell
Mo. Bill Would Require Agents to ID Sex Offender Buyers
The proposed law would require sex offenders who plan to purchase a home to tell their real estate agent about their criminal past. The buyer’s agent then would be responsible for disclosing, in writing, that information to the seller’s agent during the transaction. The buyer’s agent would also have to disclose the client’s sex offender status to neighbors living within a half-mile after the transaction has been completed. Mo. Bill Would Require Agents to ID Sex Offender Buyers.
Home Owners Reluctant to Sell; Inventories Fall
Nationally, inventory levels of for-sale homes at the end of 2012 were down 17.3 percent from year-ago levels, reaching the lowest level in more than five years. In the Odenton, Md., area, the drop in the number of for-sale properties is even more dramatic. Home Owners Reluctant to Sell; Inventories Fall.cialis black capsules
Foreclosed Home Owners Become New Crop of Buyers
The Federal Housing Administration allows people who have lost their home to foreclosure to purchase a home again three years following a foreclosure. Foreclosed Home Owners Become New Crop of Buyers
Veterans & Active Duty Personnel: $10,000 Home Buying Assistance Program Ends in June
Maryland initiative provides eligible home buyers generous downpayment and closing cost assistance
Current and former military personnel thinking of buying a home in Maryland this year should note that a state program offering them up to $10,000 in mortgage assistance is slated to expire June 30.
The Maryland Veterans and Military Family Mortgage Program helps current and former military home buyers purchase a home by offering lower-than-market interest rates and additional downpayment and closing cost assistance up to $10,000.
The program will end June 30 -- or when the $50 million in program funds have been allocated to buyers.
Eligible participants are entitled to assistance that’s in addition to funds available from applicable CDA partner matching programs and assistance from local jurisdictions. It’s a tremendous benefit for eligible home buyers.
The program is open to active duty military (including the Reserves and National Guard) and honorably discharged veterans. Eligible buyers must qualify for a CDA loan using the Maryland Mortgage Program requirements, which take into account a buyer’s credit score, income and other factors.
CDA loans generally are limited to first-time buyers, but this requirement can be waived under certain circumstances. For more information on the program, visit www.mmprogram.org or call Julie Orsini, senior loan officer with Primary Residential Mortgage, Inc. at (410) 370-8304.
Maryland Mortgage Program Flyer
Jerry Kline is a Realtor with the Odenton, Md., office of Keller Williams Flagship Realty (1216 Annapolis Rd., Odenton.) For more information on the local real estate market, contact him at (443) 924-7418.
Odenton, Severn Home Sales & Prices Continue to Surge Higher
December Housing Numbers Show Local Real Estate Heating Up as Winter Sets In.
Home sales in Odenton and Severn rocketed into the end of 2012, with the number of homes sold posting double-digit gains and average prices following not far behind.
Severn home sellers in particular enjoyed a prosperous holiday season, as the number of homes sold in zip code 21144 jumped 53 percent from December 2011. The average price fetched for a Severn home last month was 26 percent higher than the year before.
Demand for single-family detached homes in Severn nearly doubled from December 2011, with 23 such homes sold. A large chunk of the for-sale housing inventory in Severn was swallowed up by buyers last month, reducing the number of available properties for sale from 146 to 107.
It was much the same story for Odenton homes sales as the year ended. According to figures provided by the Metropolitan Regional Information Service, the number of homes sold in Odenton jumped 39 percent from the previous December. While the average price for those homes rose a more modest 4 percent, the average price for attached units, such as town homes, condominiums and duplexes, increased 16 percent.
Dec. 2012
Year over Year
Odenton
21113
Severn
21144
Avg. Sold Price
$274,324 (+4%)
$325,088 (+26%)
No. Units Sold
32 (+39%)
29 (+53%)
Attached Units Sold
25 (+39%)
6 (0%)
Detached Units Sold
7 (+40%)
23 (+77%)
Avg. Days on Market
73 (-39%)
38 (-72%)
No. Active Listings
75 (-41%)
107 (-27%)
As in Severn, the inventory of for-sale properties in Odenton also dropped dramatically last month – 41 percent from the previous year. At the end of 2012, only 75 for-sale homes were left on the market in Odenton.
More proof of a housing market surge in Odenton and Severn appears in the average number of days sold properties in those areas stayed on the market. In Severn, the average “days on market” for those properties fell by an astonishing amount -- from 138 days in December 2011 to 38 days in December 2012. For-sale properties in Odenton also moved off the market much more quickly, dropping from 119 days on the market in December 2011 to 73 days last month.
Jerry Kline is a Realtor with the Odenton, Md., office of Keller Williams Flagship Realty (1216 Annapolis Rd., Odenton.) For more information on the local real estate market, contact him at (443) 924-7418.
Court Rules No Disclosure Needed in Home's Grisly Past
In the case, a home buyer filed suit against a seller for withholding certain information about a crime that took place on the property. The court ruled that the psychological effect from a home’s history could vary too much from person to person, and it should not have to be disclosed as a material defect in a home sale. Pa. Judge Rules No Disclosure Needed in Home's Grisly Past
Smart Meters: Putting Maryland Homeowners in Danger?
The Maryland Public Service Commission today announced that it will take more time to fully consider whether ratepayers of three local utilities may potentially opt out of installing smart meters in their homes. In so ruling, the commission at least partially acknowledged that the new smart meters may put residents and their homes in danger.
The story was reported by WJZ-13 television news in Baltimore.
Throughout the region, Potomac Electric Power Company, Baltimore Gas and Electric Company and Southern Maryland Electric Cooperative have been contacting customers over the last several months as a prelude to removing traditional electric meters from homes and replacing them with what the companies deem technologically advanced meters. The problem with the new meters, critics say, is that they are not an improvement and they put homeowners in danger.
A host of consumer advocacy organizations throughout the country have been critical of the new technology. Among the arguments they offer: the new meters are responsible for dozens of house fires and the meters invade the privacy of homeowners by transmitting usage and other data back to the utility companies.
Power company customers often assume they have no choice in the matter; the utilities do not explicit offer or publicize an opt-out option for the program. However, at least with respect to BGE's meter replacement program, customers at the moment may opt out of the program by taking certain steps.
(To opt out of the program, I contacted a rather unhelpful BGE customer service representative, who directed me to write a letter to a BGE mailing address she provided. She offered no guidance as to what the letter should contain, a deadline for submitting the letter or any guarantee my request would be honored.)
Today's Public Service Commission announcement indicated the state still has not decided whether the utility customers may permanently opt out of the meter-change program. Based on today's commission ruling, homeowners may temporarily request exclusion from the program while the commission weighs the long-term fate of the meter-change effort.
PSC To Conduct Further Hearings On Smart Meters « CBS Baltimore.
Jerry Kline is a Realtor with the Odenton, Md., office of Keller Williams Flagship Realty (1216 Annapolis Rd., Odenton.) For more information on the local real estate market, contact him at (443) 924-7418.
Ft. Meade Base Commander Declares Some Local Neighborhoods Unsafe for Personnel
Those looking to buy or sell homes in the area should note that service members by code are prohibited from entering the neighborhoods.
People interested in buying or selling real estate in the Ft. Meade, Md., area should note that the commander of the Ft. Meade military installation recently declared two local off-base neighborhoods off limits to military personnel.
Installation commander Edward Rothstein announced that because the Arwell Court and Meade Village neighborhoods in Severn are plagued by high crime rates, service members who enter these areas are subject to punishment under the Uniform Military Code of Justice.
The story was published on the Odenton (Md.) Patch website (http://odenton.patch.com/articles/some-neighborhoods-businesses-off-limits-to-military-personnel).
Both neighborhoods are less than a mile from Ft. Meade. The neighborhoods have long been cited by Anne Arundel County Police for a host of violent and nonviolent crimes.
Arwell Court is located off of Reece Road and includes part of Pioneer Drive. Meade Village, also located off of Reece Road, includes Meade Village Road, Meade Village Circle, Barnett Court, Fairbrook Court, Briarview Court and Brookstone Court.
Obviously, high crime rates can have a significant, negative impact on a neighborhood’s property values. The announcement by the base commander is of particular interest to military and civilian personnel who are transferring to Ft. Meade, looking for housing, and are unfamiliar with the region.
As part of his announcement, the installation commander also added two local gas stations to the list of off-limit areas and establishments. The Exxon stations on 7898 Ridge Rd. in Hanover and 1318 Annapolis Rd. in Odenton are known to have sold synthetic marijuana, often referred to by the brand name "spice," according to Odenton Patch. The possession of synthetic marijuana is banned by all branches of the military.
Jerry Kline is a Realtor with the Odenton, Md., office of Keller Williams Flagship Realty (1216 Annapolis Rd., Odenton.) For more information on the local real estate market, contact him at (443) 924-7418.
Some Home Sales, Purchases Now Subject to New 3.8 Percent Federal Tax
Effective Jan. 1, a new federal levy on certain real estate transactions will cost some homeowners thousands
Area residents looking to buy or sell a home should note that beginning Jan. 1, 2013, a new 3.8 percent federal tax applies to certain real estate transactions.
Enacted by Congress in 2010 to help fund the Obamacare initiative, the tax is expected to generate $210 billion over the next 10 years and cost some home buyers and sellers thousands of dollars.
Struggling to find money to pay for President Obama’s massive health care legislation, Congress adopted the tax in eleventh-hour negotiations. The tax was quietly slipped into the bill, and not discussed or reviewed until hours before final debate on the health care legislation began.
The National Association of Realtors (NAR), which unsuccessfully lobbied against the tax, calls it a “complicated” provision that will affect individual buyers and sellers in unpredictable ways. To help realtors and their clients understand the potential effects of the tax, the association has published a series of fact sheets and case studies on its website (www.REALTOR.org/healthreform).
Many people aware of the tax mistakenly believe it applies to all real estate transactions. In reality, the tax applies only to some income derived from interest, dividends, rental income (less expenses) and capital gains (less capital losses). Also, the tax falls only on individuals with an adjusted gross income above $200,000 and couples filing a joint return with more than $250,000 in adjusted gross income.
So what do these provisions mean in practice? Consider three common real estate scenarios provided by the NAR on its website.
Ex. 1: Capital Gains on the Sale of a Principal Residence
A married couple sells their principal residence and realizes a gain of $525,000. They have $325,000 adjusted gross income before adding the taxable gain.
AGI Before Taxable Gain
$325,000
Gain on Sale of Residence
$525,000
Taxable Gain
$25,000
($525,000 - $500,000)
New AGI
$350,000
($325,000 + $25,000)
Excess of AGI Over $250,000
$100,000
($350,000 - $250,000)
Lesser Amount (Taxable)
$25,000
(Taxable Gain)
TAX DUE
$950
($25,000 x 0.038)
Ex. 2: Sale of a Second Home With No More Than 14 Days Rental Use
A family owns a vacation home they bought for $275,000. They have never rented it to others. They sell it for $335,000. In the year they sell it, they also have earned income from other sources of $225,000.
Gain on Sale of Vacation Home
$60,000
($335,000 - $275,000)
Income from Other Sources
$225,000
New AGI
$285,000
($60,000 + $225,000)
Excess of AGI Over $250,000
$35,000
($285,000 - $250,000)
Capital Gain
$60,000
Lesser Amount (Taxable)
$35,000
(AGI Excess)
TAX DUE
$1,330
($35,000 x 0.038)
Ex. 3: Rental Income Sources Including Real Estate Investment Income
A man has a full-time job earning $85,000 per year. He also owns several rental units and receives gross rental income of $130,000 per year. He has $110,000 in expenses related to the rental income.
AGI Before Rents
$85,000
Gross Rents
$130,000
Rental Property Expenses
$110,000
Net Rents
$20,000
($130,000 - $110,000)
New AGI
$105,000
($85,000 + Net Rents)
Excess of AGI Over $200,000
$0
Lesser Amount (Taxable)
$0
TAX DUE
$0
The NAR on its website provides several more examples of how the new tax will apply to certain real estate transactions. For more guidance on how the tax might apply to your own situation, contact your accountant or certified tax professional.
Jerry Kline is a Realtor with the Odenton, Md., office of Keller Williams Flagship Realty (1216 Annapolis Rd., Odenton.) For more information on the local real estate market, contact him at (443) 924-7418.
