Ellicott City Realtor Catonsville Realtor

Tenant Thursday - Bed Bugs in Baltimore.  Ever heard of bed bugs? Yup, they're for real, and they are a real problem.  The cost and inconvenience of removal is enormous.

Last year, one of my tenants in a multi family unit had a bed bug problem.  As an accomodation, I treated the property using a licensed professional and the property was cleared of bed bugs.  The tenant claims they complied with all of the instructions provided to them by the pest removal service.

Fast forward, one year later.  The tenant has bed bugs again.  Fortunately, it is only this one unit.  The other units in the property are bug free.

The tenant works in Baltimore City, and is in and out of the city's high rise project homes.  These homes are notorious for their rampant bed bug infestations.

I've checked with the Baltimore County Department of Health and was referred to the Maryland Department of the Environment who told me to again check with the Department of Health.  I've given up, and am checking with my attorney.

In the meantime, I'm interested in your opinion - in this scenario, who should undertake the expense of this second infestation?

Howard County Homes on Acreage.  If you are looking for a home in Howard County, and would like the privacy and serenity of owning several acres, you first have to determine what a ‘acreage' means to you, what's available in the area, how much you should expect to pay, and what you can get for the value.

In Howard County, to me, a large lot is one that is at least 5 acres.  There is not an overabundance of these properties available, and where you would like to be in the County plays a large role in what you will find and how much you will pay.

In Western Howard County, the homes on acreage will be more expensive, and more remote, with further driving distances to commuter routes, shopping and conveniences.  Fulton and Highland offer a few properties that have large, private lots, as well as a shorter commute to both Washington DC and Baltimore than Western Howard County communities.  Fulton and Highland have the unique appeal of being close to Maple Lawn, a planned development that provides true one stop convenience with retail, business, medical and conveniences all in one nearby location.

When looking at Howard County homes on acreage, if privacy is of importance to you, consider reviewing the neighboring properties to see if any new construction, be it commercial, residential or agricultural, could affect your peace of mind.

Other appealing amenities of Howard County homes on acreage is that some of the homes back to parks, reservoirs and forest preservation areas.  You may even have walking trails and fishing right in your own back yard.  Further, many of the homes have been custom built and offer unique architecture that you wouldn't find in a tract home.  As you search, note that some properties may allow you to keep horses or other animals.

Howard County Homes on Acreage

Howard County Community Report

Howard County Public Schools

Mortgage Rates are Low - What on Earth Does that Mean if You Would Like to Buy Instead of Rent.  You see it on the news, you see it in the paper, you see it on the internet...mortgage rates are low.  In fact, they are lower than they have been in recent years.  Today's average mortgage rate for a conventional fixed 30 year mortgage is just 4.4%.

But what does this mean?  I think most people who would like to buy instead of rent are confused about how to translate this rate into actual dollars and cents saved over the long term.  Below, I've tried to give the simplest guide I can to explain what these low mortgage rates mean, and how if you are renting, you can leverage these low rates to save money both now and over the long term.

For this example, I will use one of my Single Family Home listings in Parkville:  8109 Conduit Road.  Currently, this 3 Bedroom 1 Bath Renovated Home is listed for $210,000.  Veterans have zero down financing options available, but most buyers would need to select an FHA loan, which requires a 3.5% Buyer contribution to get into the home.

To get down payment funds, you could access your savings, potentially borrow from your 401(K) as long as you have discussed it with your lender, or receive gifts from family members to get to the 3.5%.

A common misconception is that you have to have your 3.5% down payment plus closing costs.  With an FHA loan, you have to have 3.5% of the negotiated sales price in the deal, and the Seller can contribute up to 6% toward your closing costs, which should cover the rest needed.  For our example, the estimated funds to close amount is $13,929.  Of this amount, you would have to have $7,350 of your own funds to qualify for an FHA mortgage for this home, and the Seller could contribute to the rest.

As far as the payment goes, your payment on an FHA 30 year fixed loan at a final negotiated sales price of $210,000 would be $1,380.  This includes your mortgage principle, interest, tax and insurance.

Looking at what's currently available for rent in the area, 3 and 4 bedroom townhomes are running at approximately $1300 - $1500.  If you would like to buy instead of rent, for the same monthly rent payment of a Parkville townhome, you could have the advantage of owning your own single family home, along with all of the tax advantages and equity benefits that come along with homeownership.

If you would like to buy instead of rent, and have any questions about the financial benefits of owning a home that I've discussed here, or about anything that I've discussed here, please don't hesitate to contact me.  I love working with first time buyers and guiding them through the process.

*These figures are approximate, and based on today's mortgage rates only.  Your lender can give you exact figures once you have completed and submitted a loan application.

Market Report Monday - Howard County Real Estate Market Update, July 2010.  Real Estate Market Statistics for Howard County, July 2010. Includes median price, closed listings, pending listings and days on market for Howard County, MD.

Open House Report for August 14-15: Catonsville, Ellicott City, Elkridge, and Columbia.  Below are this weekend's Open Houses:

Elkridge Open Houses

Ellicott City Open Houses

Columbia Open Houses

Catonsville Open Houses

If you have any questions, please feel free to contact me.

Open House information has been provided by the listing agent, and is not guaranteed to be correct.

Featured Listing Friday - Totally Renovated Parkville Home
Great Location near Convenient Shopping and the Beltway

You Don't Need to do a Thing! Move Right In! Painted Top to Bottom, New Carpet Throughout, New 6 Panel Doors. New Furnace and Central Air.

• 3 Bedrooms
  
• 1 Bathroom
  
• Updated Kitchen had Maple Cabinets, New Floors, New Refrigerator and Range
  
• Updated Bath
  
• Finished Lower Level with Separate Laundry Room
  
• Washer and Dryer Convey
  
• Maintenance Free Exterior
  
• Fenced Rear Yard with Nice Patio

Sometimes I Have to Ask Myself....Am I a Realtor, or a Therapist?  I'm working with a young couple, first time buyers, about to get married.  I will call them Abby and Charles*.  We're sitting down at our first appointment and I am explaining the Home Buying Process.

The first question I always ask my clients is "What's Most Important to You?", and the second question I always ask is "How do you make decisions?"  When I ask this of my two young clients, they took a moment to look at each other, then looked back at me and replied in unison "I don't know."

So, I take a moment to ask them how did it work the last time they made a big purchase together, such as with their car?  Again, they took a moment to look at each other, then looked back at me, and again in unison, "I don't know."

Since the first question I had asked was "What's Most Important to You", I knew they were on the same page with the big things - they both wanted to be near good schools, in a good location and have an easy commute.  For Abby, this was clearly Catonsville.  For Charles, it was obviously Elkridge.  It was clear to me that although they had talked about buying a home, they had not come to a conclusion on the specifics.  On this one point, they simply didn't agree.

So, time to put on the Therapist's Hat.  I ask Charles what's important about Elkridge to him?  He replies that his family lives there, he cuts his grandmother's lawn on Saturdays, he has a new godchild that lives there in a neighborhood he finds appealing, and it's a close commute to downtown.  Abby's reply to this?  "I didn't know how important those things were to you."  I then asked Charles how flexible he could be in his choice of location, on a scale of 1 - 10.  He replied that he was willing to be flexible, as long as it wasn't too far.

I then repeated the process with Abby.  After listening to my conversation with Charles, although she really liked Catonsville, she seemed to be just as flexible.

I always go through this process with my buyers.  I find out what's most important to them, how they make decisions, and what they've talked about amongst themselves.  It was obvious that Abby and Charles had talked about buying a home, but not about what was most important to each of them.  In talking about it in my office, before we looked at homes, and before emotions ran high, hopefully it will be easier for Abby and Charles to make a decision down the road.

So is it Real Estate, or Therapy?  Perhaps a little bit of both.  In the end, as long as Abby and Charles are happily settled in their first home, I don't really care what you call it.

*Although my buyers have agreed to share their story, their names have been changed for privacy purposes.

Oyster Cove in Grasonville, Maryland - Year Round Vacation Living with Easy Access to Commuter Routes - Best of Both Worlds

If you're looking for a waterfront condo or townhome on Kent Island, take a closer look at Oyster Cove.  Located in Grasonville, right on the Kent Island Narrows, step right outside the community's door to the water.  This community also offers a private marina with the option to rent or purchase a boat slip for ultimate flexibility in waterfront living.  Other community amenities include a clubhouse, swimming pool, tennis courts, and elevator service to upper levels.  The condominiums are truly zero maintenance - check with the condominium association to verify that the association handles 100 percent of exterior property maintenance.

Just minutes from Route 50, yet within walking distance to shopping and local restaurants such as The Crab Deck, Jetty Restaurant, and Bridges, this community extends away from the traffic of Kent Island into the peace and tranquility of the bay.

Waterfront living has never been more affordable in recent years.  Oyster Cove has homes available for less than $400,000.  The nicest units will be on the second level or above, and will feature floor to ceiling views of the water, as well as recent upgrades to kitchens and bathrooms, a separate laundry room and will have been well maintained.

Oyster Cove Homes for Sale

Explanation of Closing Costs for Howard County, MD Home Sales.  Below is a sample Estimated Settlement Cost Worksheet for a Home Sale in Howard County.  This estimate is for explanation purposes only.  The costs detailed in this sheet are a sample, and your costs may vary greatly depending on the Lender, Realtor and Title Company you select, and the terms of the contract of purchase.

If you would like a better idea of what it would cost to sell your home, please feel free to contact me.

The figures below were based on a sale price of $225,000, and the buyer selecting an FHA Loan.

Seller Charges

Commission - The commission to sell your home is a negotiable fee, and is based on the sale price of the contract - not the list price, but the final sale price of the negotiated agreement.  In this example, I have used a commission of 6%.  The commission you negotiate with your Realtor may be more or less.

Marketing Fee - this is an administrative fee charged by most local brokers in our area.

Recording Tax / Transfer Tax - These two fees are split by between the Buyer and Seller here in Maryland.  In this example sheet, this amount represents the Seller's half.

Inspections - Here in Maryland, Sellers don't typically pay for inspections, but that can vary with the type of financing the Buyer selects.  For example, with a VA loan, the Seller will pay for the Termite Inspection.

Lender Fees - Also depending on the type of loan, the Seller may be asked or required to pay some or all of the Buyer's Lender Fees.

Miscellaneous Fees - I put this into my Estimated Settlement Costs because most Seller's don't realize that the Lender may charge an ‘Express Fee' or a ‘Wire Fee' to get money to the settlement table.

Credits to Buyer

% of Sales Price or Fixed Contribution - This amount will vary and really depends on what the Seller and Buyer agree to.  This amount also varies with what the market dictates.  These amounts are agreed upon between the Buyer and the Seller during contract negotiations.  How much, if any, a Seller can give the Buyer really depends on the type of financing the Buyer selects.

Mortgage Payoffs

Release of Mortgages - I didn't include mortgage information for this Settlement Sheet, but be aware that your lender may charge a fee for releasing your mortgage of up to $150 per loan.

Other Considerations

This worksheet is a simplified guide, and is intended for general informative purposes only.  This worksheet does not take into account any fees you will incur in the purchase of another home, as well as other charges such as for HOA or Condo fee, ground rent and others that have not been included here.  Your lender and settlement company will provide you with accurate settlement costs once a contract has been agreed to by both the Seller and the Buyer.

Seller Estimated Settlement Costs