An Alternative to The Homebuyer's Tax Credit With the Homebuyer's Tax Credit, the maximum that one could receive was $8,000. The average price of a home varies from market to market around the United States, but it is somewhere near $200,000 as a nationwide average. Negotiate with the Seller If a Seller were willing to accept 96 percent of that amount and were willing to give the other 4 percent to the Buyer, then this may be a better scenario than the Homebuyer's Tax Credit. The Seller would be getting $192,000, while the Buyer would be getting $8,000. This is better than the Homebuyer's Tax Credit, because the Buyer would be getting the money immediately rather than having to wait until the next year as was the case with the tax credit. Also, the Seller and Buyer could negotiate to le... 07/30/2010

Maryland: CDA Interest Rates The table below represents the current CDA interest rates for a 30 year mortgage (July 2010). Interest Rate Points APR 4.125% 3-point Mortgage 4.462% 4.250% 2-point Mortgage 4.501% 4.375% 1-point Mortgage 4.541% 4.500% 0-point Mortgage 4.581% All Community Development Administration (CDA) mortgage products have low, fixed interest rates and are available with downpayment and closing cost assistance. A list of the lenders who can provide these loans can be found at Maryland Mortgage Program. These low rates have been fueling more real estate buying activity, than the recently expired tax credit incentive. For more information on obtaining one of these very low rate loans, contact Ron Trzcinski at 410-935-5844. 07/26/2010

Tax Credit Replacement III The tax credit which provided buyers with an $8,000 tax credit and repeat buyers with a $6500 tax credit has expired. But there are incentives which are still available for purchasing a home and these incentives, especially when combined can amount to much bigger savings than the tax credit. Tax Deduction Incentive The government allows for a tax deduction, which effectively lowers ones taxable income. This deduction applies to mortgage interest and to real estate property taxes. The savings in taxes could result in about $2,500 per year during the first five years of the mortgage on a thirty year mortgage. Over a five year period this equates to $12,500. Interest Incentive Tax Credit Replacement I This equates to $6,750. Appreciation Incentive Tax Credit Repl... 07/26/2010

Tax Credit Replacement IV The tax credit which provided buyers with an $8,000 tax credit and repeat buyers with a $6500 tax credit has expired. But there are incentives which are still available for purchasing a home and these incentives, especially when combined, can amount to much bigger savings than the tax credit. Closing Cost Incentive With a high inventory of homes for sale, the real estate market is still a buyers' market. This means that buyers are more likely to negotiate. They are most likely to negotiate in terms of providing closing help. Many mortgage guidelines allow for the seller to give closing assistance to the buyer in an amount of 3 to 6 percent of the mortgage. Using the conservative number of 3 percent, on the $250,000 house this would equate to $7,500. Interest In... 07/24/2010

Tax Credit Replacement II The tax credit which provided buyers with an $8,000 tax credit and repeat buyers with a $6500 tax credit has expired. But there are incentives which are still available for purchasing a home and these incentives, especially when combined can amount to much bigger savings than the tax credit. Appreciation Incentive Over the historical long run, the value of real estate has appreciated in value by about 4 percent per year. This increase accounts for slow and negative periods of appreciation such as that which occurred during the recent recession.  If you have lived through other recessions or even the depression, then you know this to be true. Most economic pundits believe that the drop in prices from the recent recession is over. If the appreciation for the $250... 07/24/2010

Tax Credit Replacement I The tax credit which provided buyers with an $8,000 tax credit and repeat buyers with a $6500 tax credit has expired. But there are incentives which are still available for purchasing a home and these incentives, especially when combined can amount to much bigger savings than the tax credit. Interest Rate Incentive Mortgage interest rates have fallen substantially such that they are at a 50 year low.  This has been fueled by investors placing their money in the secure bond market, which supports the mortgage industry instead of in the more risky stock market. On a mortgage for $250,000, the principal and interest portion of the payment is about $112.50 less per monthly payment on average, than what it would have been a year ago. Over a five year period this equa... 07/24/2010

It Is Just A Sign They are just signs.  I use them to direct buyers to my listings or open houses.  I use them in front of my listings to get the word out to all of the people passing by. They are just signs, but I have so much trouble with them. The Open House Signs  I have an Open House and I strategically place the signs, with colorful balloons, to lead into my listing and then I wait for the flood of potential buyers . . .  and I wait, and I wait, and no one shows.  When I eventually close down for the day and go to retrieve my signs, I find that they are not there, or, at least, the ones that are on the main route.  No wonder no one came.  Who took my signs? Perhaps it was an agent who was just starting out and had no signs of his own.  I am glad to help.   Maybe it is the neighbor... 07/23/2010

Why Did You Lower The Price? You hired a real estate agent to help you to sell your home. Your agent provided extensive and pertinent information on recent sales and other activity in the real estate market. Along with this information, your agent provided a comparative market analysis, which made price adjustments for each of the appropriate sold properties to determine a fair and reasonable price for your home. You Said "But, I would like to get a price of "X" amount." Your price was far above the suggestion, which was based on factual data, that your real estate agent had given you. "But, I would like to give it a try at my preferred price.  You never know unless you try."  "A Buyer is going to offer less money anyway, so I should start high." Your agent told you the concerns about o... 07/11/2010

Mortgage Rates at Record Lows While temperatures are rising to record highs, mortgage rates have been falling to record lows. Per Freddie Mac, 30 year fixed rate loans dropped to 4.58 percent for the week ending on July 1 down from 4.69 percent for the prior week. They, also, reported that the 15 year rate fell to a record low of 4.04 percent. The record high temperatures must be trying to say that this is a hot time to buy. 07/07/2010

Maryland Governor's Race: Basic Freedoms and Bob Ehrlich? I know, I know, I almost got caught in an oxymoron. Here we are at the beginning of July, a time when the citizens of the United States celebrate their independence. We recognize the beauty and power that our freedoms provide to us. Freedom of speech, freedom of the press, freedom of religion are all part of the freedoms which we do not take for granted, but which we understand have been a large part in making our country great. It is a greatness which has inspired throngs of people from around the world to come to this country and make it their home. But, remember, Bob Ehrlich, the former governor of the State of Maryland. Governor Ehrlich did not like the reporting by The Baltimore Sun, a newspaper from Baltimore, regarding the... 07/06/2010

What is Credit? Many people will say that they have bad credit or that they do not have credit at all. But do they know what is meant by credit? Credit Credit is the ability to borrow tomorrow's money to pay for something that you get today.   Credit is a promise to repay a debt.   Credit may be extended by several means such as credit cards, personal loans, car loans, and home loans (or mortgages).   Credit is a privilege.  The ability to borrow money at reasonable terms and interest rates cannot be taken for granted or assumed.   Credit is extended based on a demonstrated willingness and ability to repay it.   07/03/2010

Commuter Train: There Ought To Be A Law The Event On June 21, 2010, a MARC Commuter train broke down. It was a hot and sweltering 90 plus degree day. With the breakdown, the train's air conditioning system also went down, which caused temperatures in these crowded cars to climb into what was probably near 120 degrees. The conductors attempted to keep the passengers on the cars, which had very little ventilation and windows which are not designed to be opened. Some passengers were becoming faint, while others were bursting out the windows. Emergency Medical Technicians were called to the scene. Eventually another train was brought in to transport the passengers. The Response Officials from the MARC Train service expressed delight at such an exciting incident.  Nobody died and nobody was ... 07/03/2010

Maryland Foreclosures Decline Foreclosures in Maryland dropped by 9% in the first quarter of 2010 when compared to the same time period from last year.  The national decline was 33%. The 3,547 homes sold in foreclosure accounted for 20% of sales in the first quarter.  The national average was 31%. The average price of a foreclosed property in Maryland was $221,794, which was 24% below the market.  Nationally they sold for $171,971, which was 26.7% below the market. Although, lenders may potentially have a high inventory of future foreclosures building, that number may be lower in Maryland due to recent legislation.   HB 472 - Foreclosure MediationSTATUS: PASSED - Effective July 1, 2010Establishes a mediation process for homeowners facing foreclosure.  Requires lenders to provide informa... 07/03/2010

Fireworks Safety Enjoy your Fourth of July, but be careful with the fireworks. Consider the following fireworks safety tips and information: Lit sparklers can reach temperatures up to 2,000 degrees Fahrenheit. Be cautious to not catch clothes on fire or use near children. Only use fireworks outdoors. Read and follow all warnings and instructions before igniting fireworks. Obey all local laws regarding the use of fireworks. Ensure spectators are out of the range of the fireworks. Only light fireworks outside on a smooth, flat surface away from houses and flammable materials. If drought conditions are present, avoid using fireworks altogether. Never try to relight fireworks that have not fully functioned. Always have a bucket of water, or water hose, nearby. Alcohol and fireworks never mi... 07/02/2010

Important Information I do not know what the following information means nor do I know what it has to do with real estate, but it must be extremely important as I have received it as a comment two times on one of my blogs. Please read this information and commit it to memory.  You never know when you might need these crucial words. The security of the United States, of North America, of the world, of the universe, . . . , may be at risk. Also, unless you are a complete moron, I suggest that you do not use the form of advertising, whereby you randomly send information about your product or service to unrelated and uninterested sites. I further suggest that you never purchase anything from Timberland as there are rumors that they are a front for an international espionage network. There a... 07/01/2010

Maryland Venture Fund: InvestMaryland There is a reason that Maryland leads the nation in job creation as we come out of the recession and it is not luck. A program to grow new business and create jobs. Gov. O'Malley announced a new program called InvestMaryland, an administrative and legislative proposal designed to support the growth of the state's knowledge based industries by stimulating investment in the Maryland Venture Fund. The Governor unveiled his proposal during a key note speech to 350 business, academic and government leaders at the 2010 State of Tech in the I-270 Corridor conference at the Universities at Shady Grove Conference Center. More than 11,000 people work in life sciences and approximately 35,000 people work in high tech sectors like IT, telecom and cybersecurity ... 06/26/2010

Maryland: Cyber Security; Bigger Than BRAC With the military's Base Relocation and Closure Initiative (BRAC), Maryland is experiencing an influx of jobs in the range of 25,000 plus.  This growth should continue through 2011 with the bulk of the jobs going to either Aberdeen Proving Ground in Harford County or Fort Meade in Anne Arundel County. However, Maryland officials have been pursuing the Cyber Security industry, which is expected to be, over time, bigger than BRAC.  The Maryland Department of Business and Economic Development is developing an action plan. This is one more sign that Maryland is out of the recession for the long term. Cyber security expected to have bigger impact on Maryland than BRAC 06/26/2010

Is The Pay Scheme For Real Estate Agents That Unique? Real estate agents typically only get paid when a sale closes. There are often times, when an agent will put numerous hours into working with a client or customer, but end up with no sale and, hence, no pay. The agent may spend large amounts of money, including time if you were to give it a dollar value. They will spend money on signs, brochures, and advertisements. Just to be in the business, they will spend money on licensing fees, continuing education costs, association dues, multiple listing service costs, lock box fees, and on and on. All of these efforts and costs show up as expenses on their accounting ledgers and not one of them shows up as revenue. These expenses all occur prior to getting a sale, and, therefore, based upon ... 06/25/2010

Interest Rate Factor Chart This chart will help you to calculate your monthly principal and interest payment for a 15 or a 30 year term loan. Here is how it works: Find the appropriate interest rate. Find the column for the desired term of the loan. The number that corresponds to that term and that interest rate is the interest rate factor. This is the amount required each month to amortize $1,000 over the specified term. Example: Interest Rate: 4.75%; Term: 30 Years; Interest Rate Factor = $5.22 Divide the loan amount by $1,000. Example: Loan Amount: $150,000; $150,000 / $1000 = 150 Multiply the interest rate factor (Line 3) by the amount of thousands borrowed (Line 4) Example: $5.22 x 150 = $783.00 This number ($783) represents the principal and interest portion of the monthly payment... 06/23/2010

How Much Can You Afford? Before shopping for a house, it is important that you determine how much house you can afford. If you can afford up to $250,000, then it would be a waste of your time if you were to look at houses which were priced much above that amount. Alternatively, although you do not want to spend too much money, you can determine how high you can go rather than limiting yourself to an arbitrary lower number. Keep in mind, that when I talk about "How much you can afford", that for any given person the number may be different, since people have varying comfort levels and varying financial goals, which are beyond just purchasing a house. In this exercise, I will show you how to determine the amount that you can afford for an FHA type of loan.  You should realize that this is... 06/22/2010