Happy Holidays And Homestead Tax Credit Deadline!

Happy Hanukkah to my friends who celebrate this week and best wishes to all who are still shopping for Hanukkah and Christmas presents!  While you are enjoying your holiday festivities, please take a moment to check on www.sdat.org and see if you remembered to send in your application.  About 30% of the streets and communities I have checked have not applied.  That might mean that one third of the homes in our communities are rental properties, but that is not the case.  You may have remembered but did your neighbor, son or daughter?  That nice lady or man up the street who lives alone?  Maybe if you looked to see if a few people you know have already applied, you might do a good deed this season and help someone else get the application in before the December 31, 2012 deadline for Homestead Tax Credit Applications.  Investors who rent properties are not entitled to the credit and the only benefit you receive is that when and if home values rise more than 5% per year, yours is capped at 5% per year.  True, values are just now beginning to show an upward trend and prices are still considerably lower than they were at the unrealistic peek of about 7 years ago, give or take a year depending on the area in which you live, but in the event prices were to rise again suddenly as they have done on a number of occassions in the past, if you live in your home as your primary residence, this gives a modicum of protection from sudden large tax increases from one year to the next in the future, but only if you qualify and only if you get your application postmarked by the 31st of December.  Happy Hanukkah, Merry Christmas and Happy Holidays everyone!

The market has turned stats begin to show.

Since September 2011 I have been referring to the "Soggy Bottom" as where our real estate market has been here in Howard County and the surrounding Maryland suburbs and Baltimore City.  Some areas were finding firm footing for housing prices to stabilize and begin to rise.  Enough distressed homes have been renovated and resold or moved into which has brought up home values in some areas and some homes still await that sort of tender loving care(TLC).  Rents have continued to rise, seemingly unaffected by the economy in recent years, so it is still a fabulous time to buy or sell if you have good credit, reasonable debt(according to the lenders) and some money saved to put into the transaction. Check out stats of foreclosures in Maryland below:

http://www.realtytrac.com/MarketTrends/NewsLetter.aspx?guid=4ccf0aed-574c-479c-982c-d0d6e3e05c26

Go to www.sdat.org to check and see if you remembered to apply for the Homestead Tax Credit already.  If not, get with it!  The deadline to apply is December 31, 2012.  After that, no guarantee you can apply.  The purpose is to limit your tax liability should home values rise more than 5% a year in the future.  Right now that doesn't seem like a concern, but I saw recently that in some areas of Baltimore City, home values have risen more than 20% over the previous year. It is a rather safe than sorry proposition and only applies for your primary residence in Maryland. Call me if you have questions about this.

Happy Holidays everyone!

Homestead Tax Credit Program Deadline

The deadline for applying for the Homestead tax credit is December 31, 2012.  If you have not applied by then you will not be able to apply for the foreseeable future so if you own your own home, you should apply now if you have not done so already.  Why? Because the market is improving and although the expectation is for slow growth over years, if there is any bump or bubble in prices, your taxes would be capped at 5% over the previous years taxes.  If you are not granted the tax credit, then your taxes will rise with the estimated tax value just as it does for investors.  This program has been extended for several years now, but this seems to be the real deadline.  It seems from sampling that fully a third of my neighbors and your neighbors have not applied. Go to www.SDAT.org to check if yours was received and/or approved or not.  You can check on your loved ones and friends as well while you are at it. It couldn't hurt. Happy Holidays everyone and best wishes in the New Year!

Happy Thanksgiving + Enjoy these good sense tips!

CRS Consumer Article

HANDYMAN HELP

 

HELP FOR HOMEOWNERS: CHOOSING A HANDYMAN

 

Whether it’s a big project such as a bathroom remodel, something small like putting up shelves, or repairs and routine maintenance, many homeowners turn to handymen to get the job done. It used to be that everyone knew “a guy in town who can do everything”, but these days finding a qualified, professional, and reliable handyman can be a real challenge. Here are some tips to ensure that you choose the right person for the job:

 

1. MAKE SURE THEY ARE QUALIFIED FOR THE WORK

Certain projects require specific skills that all handymen may not have. You will of course want to know that they have the qualifications and experience to do the job. In addition, many states and provinces require persons performing certain work to be licensed; electrical and plumbing often fall into this category.

 

2. ASK FOR REFERENCES

Request at least two local references from previous customers. The handyman should be willing to do this without hesitation. Then, contact those references! Ask about the quality of the work, timeliness, professionalism, and how the handyman handled any changes that may have occurred during the course of the project. Also ask how satisfied they were with the work overall.

 

3. CHECK ON INSURANCE COVERAGE

Liability insurance is always a good idea. If the handyman or another worker is injured while working on your property, you may be held liable for medical costs. Ask for evidence of coverage before agreeing to any work. Uninsured handymen often charge less for their services because they lack the overhead expense of insurance, but it could cost you in the long run.

 

4. GET WRITTEN ESTIMATES AND A CONTRACT

Ideally, ask three handymen for written estimates for the work you have in mind. Be sure that each estimate contains enough detail so that you can make a comparison between them. For example, are the specified materials of the same quality? Does the cost include cleanup and hauling away any debris or old/broken items? Read all contracts carefully and be sure to ask about anything that you are unsure of.

 

5. DETERMINE THE PAYMENT SCHEDULE BEFORE YOU SIGN

Beware if you are asked to pay for the entire job up front – this is not an accepted business practice and could leave you open to fraud. Handymen will often ask for 50% when the contract is signed, which will allow them to purchase materials for the job and assure them that you are committed. Be sure to request receipts for all payments.

 

Article courtesy of Pillar To Post Professional Home Inspection

Pillartopost.com

 

Market Moving, Bye Bye Bottom!

The market indicators have been turning over like the fruit in a casino gambling machine over the past two years and with interest rates arguably the lowest ever and properties having contracts on them within weeks of being listed, I think we are seeing the jackpot in that the market meets the criteria to be labelled a "sellers' market" in many areas now.  Prices are the lowest they have been in ages, many are in reasonably good or great shape and banks are lending to qualified buyers.  Cash buyers have been about a quarter of all buyers nationally for most of the past year dodging the banks altogether.  I have called the last twelve months of the "soggy bottom" because while many people have continued to complain about the poor market, others have been rushing around finding their own private funding and buying up all the propertues they could afford.  Some of those investors don't want to advertise the great deeals they have been getting so they continue to moan about the state of the economy, but prices are stabilizing and consumers who would like to become homeowners for the first time are realizing that they are paying more in rent then they would pay if they bought a place.  The inportant question is whether they know they will remain in one area or if they will be able to manage it as an investment if they move out of the area.  Prices are not expected to rise suddenly or dramatically, but they are beginning to not fall and you will observe over the next year that prices will begin to rise in your neighborhoods if they have not already because a lot of those short sales and foreclosures were bought by people who had the money and the skills to improve those vacant or run down properties in your neighborhoods. Some buyers can buy now and build real sweat equity.  It is a win/win. 

I have a lovely 2 bedroom , 2 1/2 bath, upper level townhouse condo listing overlooking a cove on Wilde Lake in Columbia, Maryland, that needs a little updating but has a brand new gas furnace, new air conditioning system, new carpet and fresh paint, 2 balconies, original oak cabinetry, bathroom tile and parquet floors for the low discount price of $210,000, As-Is, No closing help if you can close by the end of November this year.  Otherwise, next year's price will include updates made over the holidays. 

The Market is moving!  The Soggy Bottom will be solid soon.

Best wishes,
Linda

Soggy Bottom News-End of Summer '12

The Market in our area continues to be active. People are making moves whether they are buying, selling or renting. Statistics are bearing out the predictions made last Fall by Anirban Basu that the market would turn from a Buyer's market to become a Sellers market in such a way that the rise in home values would resemble a slow moving tide washing up a little and back a little, then up a little then back a little. This can be seen in sales numbers. Builders and other real estate professionals who were able to ride out the past few years are seeing an uptick in their business and the people who became proficient in the business of helping banks, buyers and sellers qualify and process short sales have been working very long hours, weeks, and months. As with everything in selling and buying homes, it is sometimes to no avail. Rents are rising. Young Buyers who know where they want to live are saving money to buy. Investors continue to buy up abandoned properties at auction and distressed properties which are in need of work. Contractors who know investors have been able to continue to stay busy even if they have to travel hours from where they live. Some sellers are still struggling with the memory of the peak of the market a few years ago when a home could sell for way over market value even if it was in terrible condition. Home values have come down a full third of that peak value in most areas give or take. For the past few years the hottest selling properties were either full of all the latest upgrades and reasonably priced (often below the latest sales)or selling well below market due to poor condition or distressed in some other way. Many buyers and sellers have completely forgotten that in a balanced market a home would take 6 months to sell. Less than 6 months is a Sellers market. More than 6 months is considered a Buyer's market. Many homes in our area, even distressed properties have been closing in less than 6 months which makes it a Seller's market. Many Buyers and their agents continue to want to make offers as though it were still a Buyer's market. There have been multiple offer situations for months in our area and properties in good condition and priced well have sold within the first month, in some cases in the first week. As with all changes in the market, the most desirable areas begin to sell faster and prices rise before less desirable areas in the beginning of a Seller's market and the reverse occurs at the beginning of a Buyer's Market. Prices peaked in Federal Hill in Baltimore at the end of October 2005. The peak came later in other parts of Maryland. Prices in Washington D.C. have continued to be strong and rising for the last couple of years as jobs remain strong in that area. Access to rapid transit and local shopping play a role in the stability and desirability of many neighborhoods as well. Walkability is a word that has come into common parlance for communities where people want to live and set down roots and that is perhaps the best part of what people have been coming around to in recent years. Homes are places where people live their lives more than investment decisions. While a home remains one of the most and often the most expensive investment(s) many people will ever make, it is so much more. I try to help people find and buy homes that they can look forward to coming home to at the end of a long work day or at the end of a long vacation away. It is much more than a financial investment, it is part of the way you live your life. Slow growth makes for more stable neighborhoods than rapid growth which attracts investors who can afford to outbid homeowners and often leave vacant properties across the landscape. It has been hard work this year as it was last year, but this year more of it has produced the kind of results where people were able to make the moves they wanted to make and not just the ones they had to make. Looking forward to a great Fall season!

Soggy Bottom News Update

Eleven months into what I call the Soggy Bottom there continue to be signs of recovery. Really there have been signs for more than 2 years that the turnaround was coming, but as Anirban Basu suggested last year, it will be a slow recovery looking more like a slow incoming tide than the record breaking rises that usually precipitate a real estate bust. My office manager shared with us today that, "According to Lawrence Yun, Chief Economist for the National Association of Realtors, the first half of 2012 is the best half year we have seen in five years. Although credit standards are still too strict, in Yun's opinion, there are plenty of buyers that are swooping in and taking advantage of the prime opportunity to buy while both interest rates and home prices are still low. Yun notes that that there has been an uptick in investor purchases, citing that 53% of Realtors own at least one investment property..... Yun says that the greatest opportunity in the coming months will come from the increased cost of rental housing which will cause more people to consider purchasing. As well, there is a pent up demand for home ownership caused by the three million immigrants that come to the United States each year. In the past few years, the immigration traffic has not created the usual one million household formations which suggests that many coming to this country have taken up residence with family until the housing market improves. Such is the case with many college students who, for the past five years, have elected to move back home rather than seek out their own households." As for me, I have been busier this year than I can remember in the past 10 and I also managed to get away for a week in July during which time I earned another designation from which I learned a little more about how to help sellers sell and buyers buy in the ever changing world of short sales. I still have time for you though, so give me a call or shoot me a text or email. Enjoy the last weeks of summer and best wishes, Linda