May 10, 2010

What Sellers Need to Know: FHA Loan Changes

Posted to Demetria Scott

If you’re in the real estate industry, you might have heard about the new FHA regulations coming into force in Maryland this month. However, if you are selling your home or thinking about selling, you may have missed the news.

FHA loans are used by most Buyers to purchase these days. Here’s a quick summary of the change which took effect on April as well as the more important change coming this summer. Each will have an effect on you if you are selling a home:

UFMIP Percentage Increase
The UFMIP (Upfront Mortgage Insurance Premium) for home buyers has increased. This is a mandatory, FHA pre-settlement payment. The premiums are pooled to help FHA insure lenders in the event of loan default by borrowers receiving certain government-insured loans. Prior to April 5th, the fee was 1.75% of the mortgage amount. As of April 5th, it’s up to 2.25%. Impact: Buyers need to bring a little more money to the table to close.

FHA Seller Contributions Halved
As of today, if needed, Baltimore Buyers can request up to 6% in closing costs from a Seller. Mid-summer FHA is expected to rollout new guidelines limiting the Seller contribution to 3% of the purchase price.

As of today, closing costs on the average home purchase hover around 4% or 5%. These changes will mean that the total amount a buyer will be paying for a property will increase. Impact: Buyers will need a lot more money at the closing table. Buyers purchasing a $100,000 home, will need $2,000 to 3,000 more out of pocket, those purchasing a $200,000 home will need $4,000 to $6,000 more depending on taxes and other pre-paids. This is on top of the 3.5% down payment that FHA requires.

What does this mean for you as a seller? Slightly lower offers and a smaller pool of prospective buyers. As buyers find themselves stuck paying out more to get into a property, it’s inevitable that it the prices offered will drop slightly. The new regulations will cause some to postpone their purchase and others to shift their search to a different neighborhood – perhaps even one in the County where the tax rate is much lower. The lower County taxes will mean significantly lower pre-settlement expenses.

If you’re selling and you’re holding off on a price reduction or unsure about adding some incentives, do so now. Your competition is thinking that they will hold off and market circumstances will get better. With the end of the $8,000 tax credit and the decrease in closing assistance, make your marketing changes now to remain ahead of the curve.


Posted by:Demetria Scott

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May 03, 2010

Buying Into West Baltimore? Register for LiveBaltimore’s Buying Into Baltimore Spring Event!

Posted to Demetria Scott

If you’re planning to purchase during April and May this year, it’s time to register for LiveBaltimore’s Buying Into Baltimore Spring event. This year’s event will be held on May 8th.

The Tour is a chance to not only learn how to make the right decision when it comes to getting the home you want, but also to explore some of West Baltimore’s local neighborhoods and see exactly what the city has to offer. The Home Tour invites its guests to come along to one of four separate tour routes of sample homes in the area and see if anything grabs their eye. Better yet, there’s the opportunity for 50 lucky tour participants to get a $3,000 grant to put towards the purchase of their new home. If you’re looking to buy a house in the western region of Baltimore and don’t know where to start, this could be a great way to really get to grips with the area and the properties it has to offer.

If you want more information or to register for the tour, visit www.LiveBaltimore.com for more information.


Posted by:Demetria Scott

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January 25, 2010

For Sellers Only: Baltimore Foreclosure Prevention Workshop

Posted to Demetria Scott

Congressman Elijah E. Cummings will be hosting the areas 3rd Foreclosure Prevention Workshop early next month. If you are experiencing difficulties, please make an effort to attend.

When: Saturday, February 6, 2010 • 9:00 a.m. to 3:00 p.m.
Where: Woodlawn Senior High School, 1801 Woodlawn Drive, Gwynn Oak, MD 21207

At this workshop, borrowers who are experiencing problems with paying their mortgage payment or facing foreclosure are able to meet directly with their lender. At the last event, many borrowers were able to receive loan modifications on site. In addition to mortgage payment solutions, the event will feature free legal advice, free housing counseling, credit repair seminars and a foreclosure scam seminar.

The following lenders have been invited to participate in this workshop:


American Home Mortgage Servicing
American Servicing
Aurora Loan Servicing
Bank of America/Countrywide/Taylor,
Bean & Whitaker
Bogman, Inc.
Citi Mortgage/CitiFinancial
EMC Corp.
EverHome Mortgage
First Horizon Home Loans
GMAC/Homecomings
HSBC
Homeq
JP Morgan Chase
Litton Loan Servicing
M & T Bank
Met Life Home Loans
NationStar Mortgage
National City Loan Services
Ocwen Loan Servicing
One West Bank (IndyMac)
Option One Mortgage
Saxon Mortgage
Sun Trust Mortgage
Select Portfolio Servicing
Washington Mutual
Wells Fargo/Wachovia Bank
Wilshire

Click here for registration information, as well as a list of the documents homeowners should bring to the workshop, and a list of the lenders who will be at the event.

You can call Congressman Cummings’ Baltimore office at (410) 685-9199 for more information. Free Parking available on site and at 1718 Woodlawn Drive, Woodlawn, MD. This site is located directly across from Woodlawn High School.


Posted by:Demetria Scott

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January 11, 2010

Curb Appeal 101: Your Home's Exterior

Posted to Demetria Scott

They say you shouldn’t judge a book by its cover, but let’s face it – appearances are pretty important in our image-conscious society. When it comes to your house, the truth is that Buyers make a lot of assumptions about your home’s interior based on a quick glance at its outside appearance. These judgments about maintenance and desirability are made based on a casual glance.

Let’s look at a few ways you can improve the look of your home’s exterior – also known as its curb appeal:

  • De-clutter your outside spaces – I’ve mentioned the need to reduce clutter inside your house, but this holds true for the exterior as well. Put away the lawn mower, get the kid’s toys out of the lawn and store away your plastic lawn chairs. Be sure to line the walkway with flowering plants and fresh mulch and set a schedule for bi-monthly lawn maintenance, at a minimum. A clean yard automatically looks more appealing to buyers.

  • Give woodwork and siding some attention – Prospective buyers will immediately notice the peeling paint or dingy siding on your home – both make your home seem wanting for TLC. Although these issues may be cosmetic, they still have the potential to scare away your visitors. Consider power washing your siding or scraping and painting your woodwork for a quick update.

  • Update your fixtures – Homes more than 15-20 years old often have tell-tale fixtures that give away their age. Replacing these dated fittings is a cheap and easy way to boost your home’s curb appeal. Key candidates for replacement include door handles, home number signs, your mailbox and outdoor lighting fixtures.


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January 04, 2010

Why Should I Even Purchase a Home?

Posted to Demetria Scott, First-Time Buyers

Happy New Year, Baltimore Buyers! The New Year is upon us and many of you have resolved that 2010 is going to be the year that you’ll become a homeowner. If you’re planning to start your homeownership journey anytime in the next 3 to 5 years, you’ll definitely want to read today’s message about the benefits of purchasing a home.

Buying a home in Baltimore…or any other market… isn’t just about finding a place to live - homeownership is an investment in your future and that of your family. Let’s look at a few of the biggest, tangible financial benefits of owning your own home:

  • Building wealth – Unlike new cars, which depreciate the second you drive them off the lot, your home will almost certainly increase in value over the long haul. Homeownership has been the primary path to wealth for most Americans. Today, home equity — the market value of a home, minus the balance on any home loans — represents more than 80% of the typical family’s wealth.

  • Tax deductions – As a homeowner, you’re eligible for a number of different deductions that can help reduce your overall tax liability. Unlike renters, you can claim things like property taxes, mortgage interest and home improvements/repairs on your returns. In addition, the government periodically offers tax credits and other breaks to homeowners; benefits which are seldom offered to renters. All of these little deductions add up at the end of the year to make a smaller tax bill – or a larger refund!

  • Flexibility – In these trying economic times, homeowners have options that are not available to renters. Loan modification programs, equity lines of credit, special refinance programs, and a host of other programs have been developed to assist homeowners in the current economy. Has your landlord ever offered you a rent modification program?

If you’ve read my previous posts, you already know that there’s a lot involved in buying a house. However, when you begin to feel overwhelmed by the steps, remember what’s at stake. A few months of sacrifice may open the door to a lifetime of benefits. Buying a house is a challenge, but the process is well worth all the advantages you’ll receive.

Make an appointment with a real estate agent today to learn more about how you can start the journey to your dream home.


Posted by:Demetria Scott

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December 28, 2009

How Much Money Do I Need to Buy a Home?

Posted to Demetria Scott, First-Time Buyers

Whenever, I field calls from first-time buyers, there’s one question that’s really on their minds… How Much Money Do I Really Need to Buy a House? At the end of today’s blog, you should be able to sit down and estimate the out-of-pocket money you will need to purchase.

During the actual purchase process, you’ll need readily-accessible money for The Big 3 – down payment, inspections, and appraisal costs.

  • Down Payment – In the wake of the much-publicized credit crunch, mortgage lenders are much more cautious than in previous years. For example, you’ll see very few “no money down” mortgages available these days. Instead, one of the best options available for first-time buyers is the Federal Housing Administration (FHA) loan. FHA loans enable buyers to purchase homes at a moderate interest rate by making a down payment equal to 3.5% of the home’s purchase price. Special FHA varieties, such as the Maryland Mortgage Program, enable qualified buyers to receive a $3,500 grant toward this cost. You will need to provide some of the down payment – usually about 1% of the purchase price – when you first initiate the contract. The rest can be provided at the settlement table.

  • Inspections – Once you have the home of your dreams under contract, it’s time to begin the inspection process. During the first week or so of the contract, you’ll schedule structural/mechanical and termite inspections. The home inspector will check out the roof and all the major systems within your new home, while the termite inspector will check for evidence of termite activity or damage resulting from termite activity. The cost for a standard home inspection can vary, but rates between $250 and $400 aren’t unusual. The standard termite inspection ranges from $35 to $75.

  • Appraisal – Once you’ve made application for your loan, the lender will send out an appraiser to assess the value of the home, as the bank wants to make sure that you aren’t paying more than the home is worth. Most appraisals cost $400 to $450.

In general, these are the major costs associated with an initial home purchase. As you can see, I haven’t included closing costs as part of this list because the current economy has many Sellers paying most – if not all – of a Buyer’s closing costs. You should understand that in a standard transaction, closing costs typically equate to 3-5% of the final purchase price – in a $100,000 to 200,000 starter home this adds up quickly.

The FHA permits a 6% seller contribution toward Buyer closing costs. If the Seller is agreeable, it’s even possible to receive full Seller assistance to cover all of your closing costs, as well as the cost of your homeowner insurance.


Posted by:Demetria Scott

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December 21, 2009

What Baltimore Sellers Need to Know About Buyers

Posted to Demetria Scott

Attention, Baltimore Sellers! Are you struggling to land a Buyer in this tough market? Have you gone through several open houses without a single offer? It could be because you’re focusing more on your own needs than on what your prospective Buyers are thinking.

The first thing you need to keep in mind is that money is an issue for just about everyone these days. This generation in particular isn’t really comprised of savers. For years and years, America has had a negative savings rate, as people have been spending more money than they actually make. Coupled with declining real estate and stock values – as well as Baltimore’s 10% unemployment rate – you can understand that just about everyone’s net worth has taken a hit recently.

Despite the nightly news and all these indicators of economic turmoil, I continually run into Sellers who believe these issues are ‘not their problem’. The truth is that these are the driving forces behind the negotiations for the sale of your home!

Most first-time buyers will have the initial money necessary to start the real estate transaction. But after providing the earnest money deposit, paying the home and termite inspectors, and the appraiser, etc., most first-time buyers only have a few dollars left for the closing. Consequently, nothing is left over for the 3% to 5% in closing costs needed to complete the transaction.

For this reason, it has become the market standard for the Seller to cover these costs. Even during the height of the market, most Sellers were contributing to Buyer closing costs and this trend has only intensified with the present real estate slowdown. As you’ll see, it’s not unusual to receive an offer requesting 6% in Seller closing assistance.

In the past, closing costs were part of the final price negotiations, but now, closing assistance is the norm and a critical part of getting your house sold. Be sure you’re prepared for the extra expenses when thinking about negotiations and calculating your sales proceeds.


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December 14, 2009

Your Credit & Purchasing a Home (Part 3 of 3)

Posted to Demetria Scott, First-Time Buyers

Welcome back for the third and final installment on my credit report series. In the previous posts, we talked about what to do if you find a mistake on your credit report and how to file a dispute with the 3 major credit bureaus. I want to wrap up this topic by covering what you can expect, now that you’ve submitted your disputes.

To start, let’s look at what the credit bureau does once it receives your dispute letter and supporting evidence. The bureau will begin by reviewing your dispute to determine whether it’s a legitimate claim or a frivolous dispute (in which case, they can decline to investigate it). If they find the dispute to be valid, they’ll begin their investigation by forwarding your documentation to the information provider (the company or organization that you believe supplied incorrect information on your report).

If the bureau eventually decides in your favor, two things happen:

  1. The credit bureau will notify you of the change – in writing – and will provide you a free copy of your report so that you can ensure the change was made accurately.

  2. The information provider is required to notify all 3 credit bureaus of the change. This will ensure that the change is made on all of your credit reports.

Of course, situations may exist where the credit bureau decides against you – for example, if the documentation you provided doesn’t conclusively demonstrate that the information is inaccurate. Even in these cases, you do still have the option of adding a consumer statement to your report under the Fair Credit Reporting Act. These statements can be used to explain your side of the story – whether it was a job loss that resulted in late payments, a creditor who didn’t provide services as promised or any other situation.

To submit a consumer statement for inclusion on your credit report, you’ll need to mail a copy of your statement to each of the bureaus (listed in Part 2 of this series). Keep it brief – most bureaus limit your statements to 100 words each. Finally, each credit bureau will send you another copy of your report so that you can ensure your statement was added correctly.

Fixing errors on your credit reports can be time consuming, but it’s an important part of preparing to buy your first home.

Posted by:Demetria Scott

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December 07, 2009

Selling Your Home in This Economy?

Posted to Demetria Scott

Okay, so it’s a bad market. But what does this mean for you?

Recession or no recession, life still goes on. If you’re still only thinking about selling your home at this point, take a long, hard look at whether this really is the best time for you to sell. For example, if you’re thinking about moving to cut a long commute, ask yourself whether you could put up with the drive for a year. Economists are beginning to see promising signs of a recovery, so holding out for as long as possible could result in significantly more money in your pocket as the economy rebounds.

If you don’t have the luxury of waiting, you aren’t entirely out of luck - you just have to understand that you’ll need to do a little more work in order to sell your house. This isn’t the type of market where you can casually place your home on the market. If you’re listing your home for sale, you need to be … IN IT TO WIN IT!

Why?

  • Home values are down. A softer market means that your home may be valued for less than it was just a few years ago. You may even be “under water” on your mortgage, meaning that you owe your lender more than you’ll be able to sell your home for.

  • Homes are selling more slowly. Because of job cuts and reduced salaries, fewer people are buying homes, and those that are have a bigger selection to choose from. Both of these factors result in longer wait times for today’s home sellers.

As a result, fewer homes are selling, and the homes that are selling are the crème de la crème of each price range. But it’s not that the sellers of these homes have some mysterious advantage over you – they’ve just hit on the perfect combination of pricing, accessibility and flexibility. Let’s look at each of these in more detail:

  • Pricing – To sell your home in this market, it’s a given that you need to be priced competitively. You may not get a second chance to correct a bad first impression, so the last thing you want to do is to alienate possible buyers with a price that’s out of touch for today’s economy. Work with your real estate agent to price your home right from the start and to come up with a strategy of ongoing price adjustments and buyer incentives that keeps you ahead of the market – not reacting to a lack of interest.

  • Accessibility – The second you put your home on the market, you need to stop thinking of it as yours and begin seeing it from the eyes of a prospective buyer. Your home should be as accessible to visitors as possible. For most sellers, this means keeping the house neat, clean and free of clutter. Remember, you want visitors to see their family living in your home, so make it as inviting a place as possible.

  • Flexibility – Focusing on a specific price is one of the worst things you can do in this market, especially considering the wide variety of negotiating tools both buyers and sellers have available to them. Closing costs, construction/update allowances and appliances are all other examples of concessions that can be made to get your house sold.

Posted by:Demetria Scott

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November 30, 2009

Your Credit & Purchasing a Home: Setting the Record Straight (Part 2 of 3)

Posted to Demetria Scott, First-Time Buyers

If the preliminary meeting with your mortgage lender turns up a problem with your credit report, your first step is not to panic. Some experts estimate that as many as 4 in 5 credit reports have some type of mistake on them - ranging from simple data entry mistakes to more serious issues. If there are mistakes on your report, there are simple, easy ways to go about fixing the problems. All it takes is a little effort and patience on your part.

To begin fixing mistakes on your report, you’ll want to get your own copy of your credit report from each of the three credit bureaus Experian, Equifax, and TransUnion.

By law, these companies are required to give you a free copy of your report every 12 months or whenever your request for credit has been turned down as a result of the information on your report. Free credit reports are available from the website www.annualcreditreport.com.

You’ll need to initiate any disputes you have over items on your credit report in writing. To help you with this process, the Federal Trade Commission (FTC) has prepared a useful guide that educates consumers about their credit and provides step-by-step instructions on how to complete each step in the dispute process. To get a printable PDF copy of the guide, visit the FTC website. The guide even includes a sample dispute letter you can use when filing your claims.

Once you file your dispute, the credit bureau is then required to investigate your claim within 30 days and will send you the results of your investigation by mail. If your dispute results in changes, you will receive an updated credit report and the remaining credit bureaus will be notified.

Ideally, the best time to check your reports is 6 months before you begin looking for a home. This will allow you to resolve any mistakes or pay any outstanding debts before your first meeting with the lender. Although you can always request that updated copies of your corrected report be sent to lenders, you’ll find that the process is much easier if lenders are working with the correct information from the start.

It’s going to take a few weeks for you to resolve this part of the credit puzzle, so for the next few weeks, I’m going to take a break from the credit topic. Stay tuned for Part 3 of this series coming up on December 14th!

Posted by:Demetria Scott

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November 23, 2009

Your Credit & Purchasing a Home: It's All About the 620, Baby! (Part 1 of 3)

Posted to Demetria Scott, First-Time Buyers

If you’ve ever applied for financing before - whether it was a car loan, a credit card or even a department store payment plan - you know how important your credit rating can be. Your credit score - the composite rating of all the good and bad information on your credit report - affects everything from the amount of money you’re able to borrow to the interest rate you’ll pay while repaying your loan.

This is doubly true for the process of buying a home, which begins with your lender pulling a copy of your credit report. If everything looks good on your report, your lender will move on to the discussion of down payments, closing costs and what to expect throughout the mortgage and home buying process. However, if there’s any negative information on your report, you may have a little work to do before you can move forward with the home buying process.

As I type this blog - and things change every day in this market - for most lenders, the road to homeownership starts with a middle credit score of 620. This is the ‘magic’ number where everything begins to fall into place – where financing and grant programs are readily available. In addition to the target credit score, a solid lender will want to see a credit report without any late payments during the last 12 months.

But what does this really mean? What’s your middle credit score?

Your credit history is monitored by 3 credit reporting agencies – Experian, Equifax, and Trans Union. Typically, each of the 3 agencies has slightly different information - perhaps different companies report to them or perhaps one has more accurate records than another. As a result, each may have a slightly different score for you. To compensate for these differences, most lenders rely upon the middle of the 3 scores when reviewing your loan application.

If you don’t have the 620 score or a perfect payment history, your dream isn’t over - you just have a little more work to do. In my next blog post, I’ll get more into what you can do to solve these problems, so stick around!

Posted by:Demetria Scott

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November 16, 2009

What's the First Step to Selling My Home?

Posted to Demetria Scott, First-Time Sellers

Alright first time sellers – today is the first day where we begin to get into the thick of issues that matter most to you. I want to start with what I consider to be the actual first step in selling your house.

So what do you think that first step is? Meeting with a lender to get pre-approved for the mortgage on your new home? Bringing in an appraiser to assess the value of your home? Nah!

Instead, you should begin your home search by figuring out where you want to wind up. Think about it – when your home sells, you’ve got to go somewhere. Focusing all of your energy on selling your house without planning where you’ll go is a simple case of putting the cart before the horse. Until you have an idea of where you’re moving to, you’ll always have some level of anxiety and hesitation about moving forward. Plus, you’ll find that once you figure out where you’re headed, the journey to get there becomes much clearer…. and much more exhilarating…

Of course, this doesn’t mean that you should run out and find the home of your dreams before you even put your house on the market. However, you should spend some time figuring out what kind of home you’re looking for and what area you’d like to be in – even going so far as to narrow your search down to your target neighborhood. Once you have these elements identified, a real estate agent can help you to balance the process of selling your home with finding homes to buy that meet your desired qualifications.

Posted by:Demetria Scott

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November 09, 2009

First-Time Sellers - I Haven't Forgotten You

Posted to Demetria Scott, First-Time Sellers

Whew! It’s been a hectic time for everyone in the real estate industry. For the last six months everyone has been focused on buyers, first-time buyers, and buyer incentives. So with that comes my apologies to the first-time sellers that frequent this blog – I promise I haven’t forgotten about you!

From this point forward, the blog will be more balanced and cover a wider range of issues for both buyers and sellers. Here’s what Charm City sellers can expect from future posts on this blog:

  • How to successfully sell in this economy – I’ll start to get more into the nitty-gritty of what you can do to get your home sold in one of the toughest markets we’ve seen in recent years. We’ll look at what should you expect from buyers, appraisers, and home inspectors, as well as tips on how to make selling your home a fruitful, stress-free experience.

  • Balancing your home sale and your new home purchase – Moving to your first home is one of the most emotionally-taxing experiences you and your family will ever go through. It can be even more demanding if you’re juggling a sale and new home purchase simultaneously. For this reason, I’ll cover some strategies that you can use to help better pace the transition between your old house and your new home.

  • Preparing your home to sell – Staging is a great way to generate interest in your home, but I find that it gets way too much emphasis these days! Instead, what most of my sellers need is good, consistent advice on clutter control, curb appeal, and basic home maintenance. In these posts, I’ll discuss the role that these lesser-known elements play in preparing for a potential home sale.

  • Understanding the local, state and national trends that impact your home sale – From local industry movements to national real estate news, consider this to be your “one-stop news source” on the important housing trends you need to know about.

Without further ado, tune in next Monday for the first official “first-time seller” blog.

Talk to you soon!

Posted by:Demetria Scott

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November 02, 2009

The Wide World of Auctions. What First-Time Buyers Need to Know

Posted to Demetria Scott, First-Time Buyers

Auctions are a terrific medium for getting a real estate deal – homes are often sold for 70% of the average market price. Attend on the right day and you may get an even better deal.

Recently, auctioneers in Maryland have begun to advertise listings as part of the MLS more frequently. As a result, buyers are beginning to see more and more auction listings on sites like Trulia and Realtor.com. Frequently, buyers see the prices associated with the homes and are excited about the possibilities, but are not sure about how to interpret the information.

Here’s a quick cheat sheet of the things to look for and information to find out when you find yourself considering an auction property.

The price listed is the suggested starting bid. In order to list the home in the brokerage system, the auctioneer has to include a price. Typically, the auctioneer lists the amount where he or she will start the bidding. Depending upon the reaction of the crowd and the needs of the Seller, this starting price may go up or down.

Auctions are ‘as-is’ sales. If you are using standard first-time buyer financing, this may prove a problem for your loan’s underwriter. The most popular first-time Buyer loan programs have property condition requirements which must be met. Make sure to speak with your lender first if you are thinking about an auction purchase.

Auctions require successful bidders to make a deposit in the form of certified funds on the day of the auction. Deposit are almost always non-refundable and amounts vary based upon auctioneer, property type, property condition and other criteria. The most popular deposit amounts I have seen in Baltimore’s residential real estate auctions are $3,000, $5,000, and $10,000. Often the initial deposit must be increased to 10% of the final sales price within 24 hours of the auction.

At auctions, the Buyer normally pays all the transfer taxes for the transaction. In most agent-brokered transactions, this cost is spilt equally between the Buyer and the Seller. This is one additional cost that many first-time buyers do not factor in.

More often than not, the Buyer pays the auctioneer. The fee for the auctioneer is called a Buyer’s Premium. Depending upon the auctioneer, the fee may range from 5% to 10% of the final purchase price. Buyer’s do not always pay a premium, but it is definitely something you should look into before you start bidding.

Posted by:Demetria Scott

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October 26, 2009

LiveBaltimore November Workshops

Posted to Demetria Scott

Thinking about purchasing a home, but not ready to hop in the car and start searching… no problem. LiveBaltimore has upcoming homebuyer workshops guaranteed to save you time and money when it comes to your first home purchase.

Here are a couple of ways to stick your toes in the water and start learning about the home buying process. Learn about cash discounts, tax incentives, down payment and closing cost programs, as well as ways to shop online for a home or a mortgage.

Check out the details below. Click the link to visit the LiveBaltimore website to register.

Homebuying Tips to Save You Money
Wednesday, November 4, 2009
5:30pm – 6:30pm
Enoch Pratt Free Library – Central Branch, Poe Room

Online-Only Real Estate: Pros & Cons
Wednesday, November 18, 2009
5:30pm – 6:30pm
Enoch Pratt Free Library – Central Branch, Wheeler Auditorium

For more details or to register for either workshop, visit the LiveBaltimore website.

Posted by:Demetria Scott

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October 19, 2009

Foreclosures: What's the Deal? (Part 2 of 2)

Posted to Demetria Scott

Last week’s post discussed some basic information about foreclosures. For those who decided that foreclosures are a definite possibility, here are a few other tidbits that you need to know:

Frequently foreclosure homes are not in optimal condition. These homes may not be in the same condition as the home in this week’s picture, but you should expect them to need some TLC. The process for banks to foreclose can be a lengthy one, often taking many months and in some cases a year or more. During this period, homeowners may not be able to afford ongoing home maintenance or even emergency repairs. In other cases, owners may have decided to vacate the property weeks – or even months – before foreclosure. Situations like these can leave properties subject to vandalism, neglect, or general disrepair.

Foreclosure homes are usually sold ‘as-is.’ Banks are not in the property management business. They want to unload the property as quickly as possible, while recouping as much of their lost money as possible. Most have already lost many thousands of dollars on the initial loan and spent thousands to recover, secure, maintain, and assess the property. For these reasons, repairs are usually out of the question.

Foreclosures may require special financing. These homes may require a few cosmetic repairs and some appliances or they may need substantial renovation. These repairs will be the responsibility of the new owner. The most popular loan programs for first-time buyers have property condition requirements and are not appropriate for foreclosure purchases. If you are seriously considering a foreclosure purchase, ask your lender what type of loan programs are available for those buying homes in need of repair.

I will go into greater detail about first-time buyers and foreclosures in later posts.

Posted by:Demetria Scott

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October 12, 2009

Foreclosures: What’s the Deal? (Part 1 of 2)

Posted to Demetria Scott

When every buyer begins to search for a home, they always want the best deal possible. No stone is left unturned, no option is left unconsidered…. For those trying to save money, foreclosures are at the top of the list. According to the nightly news, these bargains can be found in every price range. That sounds terrific, so you’re left asking – what do I need to know?

Briefly, a foreclosure property is a home that has been reclaimed by the lender because the owner was unable to pay the mortgage. When attempting to purchase a foreclosure, you will be buying the home from a lender or government agency, not a private seller.

Usually in a home sale, you are negotiating with one or two Sellers, foreclosure offers are submitted to the lending institution for review and a final decision. Unlike a traditional Seller transaction, the bank may not be as responsive. You may submit your offer and wait a few days or even a couple of weeks before receiving a response.

Many home buyers mistakenly use the terms foreclosure and pre-foreclosure interchangeably, but the terms have very different meanings. Pre-foreclosures properties belong to a homeowner who has fallen behind on payments. While the bank may be in the process of legal proceedings to foreclose, the lender has not assumed control of the property. Pre-foreclosure homeowners still have the opportunity to stave off the foreclosure process by catching up their mortgage payments, refinancing, or selling the home prior to foreclosure, etc.

For more on foreclosures, read Part II in next Monday’s post.

Posted by:Demetria Scott

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October 05, 2009

Back to School -- Homebuyer Counseling Workshops

Posted to Demetria Scott

I frequently recommend my first-time buyers take a counseling class. Purchasing a home is a major financial decision for most and you can never have too much information about the process. Not to mention, several of the classes offered around Baltimore are prerequisites for down payment and closing assistance programs!

Typically, homebuyer counseling consists of a one or two-part course designed to provide vital information about the purchase process. Regardless of whether you need or want the monies associated with program attendance, homebuyer education is an essential first step designed to help buyers understand the process and obligations of buying a home, as well as determine their readiness for homeownership.

A good homeownership counselor should be knowledgeable about assistance programs; but should also be able to help first-time homebuyers in evaluating what homeownership options make the most sense for their needs.

There are many organizations in Baltimore providing homebuyer counseling services. Two, that I recommend, are Harbel House Partnership Program and Diversified Housing Development. I have listed their contact information below.

  • Diversified Housing Development (410-496-1214).

    Offers two-day workshops for prospective buyers. You can view the schedule of classes for the rest of the year online along with sign-up instructions by clicking here.

  • Harbel Housing Partnership Program (410-444-9152).

    Harbel Housing offers several workshops each month, and they tend to book-up well in advance, so call early if you would like to reserve a seat.

Both workshops have been approved for participation in the Maryland Mortgage Program. Upon counseling completion, you are eligible for $3,500 in Down Payment Assistance toward the purchase of your new home!

Posted by:Demetria Scott

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September 28, 2009

What Does a Real Estate Agent Do?

Posted to Demetria Scott

There are many people and steps involved in the process of buying a home, and it is the role of a real estate agent to help Buyers and Sellers through the process. As a Buyer’s agent, I help my buyers to not only understand the process, but guide them through the steps they need to successfully complete the purchase of their new home. Through my assistance, homebuyers are able to save time and money.

Showing homes to Buyers is just a small portion of an agent’s duties; the most important aspects of the job are to:

  • Help Buyers learn about any down payment and closing assistance
  • Understand their obligations and requirements in buying a home
  • Submit a purchase contract that protects their interests
  • Assist with locating a mortgage lender who is right for their needs
  • Find and register for homebuyer counseling
  • Hire a home inspector and schedule their home inspections
  • Negotiate on the Buyer’s behalf with the Seller or Seller’s Agent
  • Coordinate settlement, and
  • Much, much more!

    Posted by:Demetria Scott
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September 21, 2009

What's in a Mortgage Payment?

Posted to Demetria Scott

At this very moment, thousands of Baltimore workers are at their desks frantically looking for their new home on office time. On most of the sites where they are looking, there is a medium-sized box in the corner saying that their payment on a $155,000 home is going to be $875. This is not entirely true. This $875 is just one part of the mortgage – the money that you borrow from the bank.

Mortgage payments are made up of three main parts: money you borrow from the bank, real estate taxes, and homeowners insurance.

Money You Borrow from the Bank

When you take out a loan to buy your home, the bank essentially pays the seller the full sales price in the contract and then issues you a loan to repay the money to them. This portion of your mortgage is made up of two parts, the principal and the interest. The principal is the money the bank gave to the seller on your behalf, while the interest is the money the bank earns from giving you the loan.

Your Real Estate Taxes

The second portion of a mortgage is the real estate taxes. This is money that goes to the county and/or state where you purchase your home. The amount of the real estate taxes is based on the assessed value of the home, and the money collected is used to pay for government projects or amenities in your area, such as schools. Real estate taxes are paid to the local government once or twice a year. To make it easier for homeowners the bank collects a portion of the real estate taxes with each monthly payment. This money is set aside in what is called an escrow account. When the real estate taxes are due, the bank then pays taxes for you from the account.

Your Homeowners Insurance

Like car insurance, homeowners insurance is intended to protect you from the costs of any damages that might occur to your home. Banks require homebuyers to have insurance as a way to help make sure the home is maintained. You have some choices in the coverage you select, but at a minimum the insurance must cover the value of your home. You also have the choice in what insurance company you use. The amount of insurance you need is based on factors such as the value of the home, features it has (such as a fireplace or alarm system), and what it would cost if your home had to be repaired or rebuilt. Just like your real estate taxes, the yearly insurance amount is spread over your monthly payments, and when they are due to your insurance company the bank pays on your behalf from the escrow account.

Posted by:Demetria Scott

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September 14, 2009

$8,000 Reason to Buy Before November 30th

Posted to Demetria Scott, First-Time Buyers

If you’re interested in buying your first home, now is certainly the time to do so. Until November 30th of this year, first-time homebuyers can receive a tax credit of up to $8,000. This tax credit is part of the American Recovery and Reinvestment Act of 2009 and it offers first-time homebuyers a unique opportunity to get assistance in purchasing a home.

To qualify for the credit, homebuyers must close by November 30th. The credit offers a dollar-to-dollar credit and is payable to qualified buyers even if they don’t owe any taxes or the credit is more than the taxes they owe. This means you can decrease the amount of taxes you might otherwise owe, or even better, increase the amount of your tax refund. You can get more information on the tax credit by visiting the IRS’s web site.

In order to ensure that you meet the November 30th closing deadline, I am recommending that all first-time buyers try to have ratified contracts by October 15th. This will leave you about 6 weeks to settle on the transaction.

If you are interested in taking advantage of the tax credit, please do not wait. You have about 4 weeks to take advantage of the offer. I am available to help you get started with the process at (410) 662-6336.

Posted by:Demetria Scott

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September 07, 2009

How Do I Begin Searching for a Home?

Posted to Demetria Scott

When buyers first embark on the decision to purchase a home, one of the most difficult parts of the process is figuring out where to begin. Often real estate articles will advise prospective buyers to begin their search by visiting neighborhood open houses. This is not always useful for homebuyers looking for homes in the $90,000 to $150,000 range.

Why?

In my experience, homes in these price ranges do not always have open houses. Fewer open houses mean less of a chance that you will happen upon a home and neighborhood that is perfect for your needs.

Instead of the open house approach, I suggest my buyers start their search by thinking about their most recent visits to see family, friends, and co-workers. What were the things that you liked and disliked about the homes? Here’s a list of questions that you may want to ask yourself:

  • Amenities – What features about the home’s interior appealed to me? Was it a single or multi-level home? Was it large and open or cozy and comfortable? Did it have a half bath for company or a basement where kids can play?

  • Neighborhood – What did I like about the neighborhood? Do I prefer rowhomes or detached homes? Were the homes and lawns well-maintained? Do I prefer a home located on a quiet or fairly busy street? What type of parking was available?

  • Lifestyle – Do I need a home convenient to my job, church, or child’s schools? Does my home need to be close to public transportation? Does it have a place where I can paint watercolors … have a workshop … store holiday decorations?

When beginning your search for your new home, take a few moments to consider these questions, it may save you hours of time, energy, and second guessing at the beginning of your home search.

Posted by:Demetria Scott

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August 31, 2009

Who’s Baltimore’s First-time Homebuyer?

Posted to Demetria Scott, First-Time Buyers

With the way home prices skyrocketed nationwide a short time ago, many wanting to buy homes were left thinking homeownership was beyond their means. That may be true for some areas of the nation, but it’s not the case in Baltimore. .

Don’t think you can afford a terrific home in Baltimore unless you have big bucks? You are nervous about purchasing a home because you are only in your 20’s or single? Take a look at some of the numbers below on Baltimore homebuyers last year.

In 2008:

  • 65% of all homes sold in the Baltimore area were to first-time homebuyers.
  • The average price paid by first-time homebuyers was $155,000.
  • More than 40% of buyers were between 25 and 34 years of age.
  • Nearly 26% of buyers were between 35 and 44 years of age, and
  • Some 33% of first-time buyers were single women.

Do you see yourself in any of these numbers?

Posted by:Demetria Scott

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August 24, 2009

Register Today: Live Baltimore Home Tour is September 12

Posted to Demetria Scott

On Saturday, September 12, Live Baltimore will hold its East Baltimore Homebuying Fair and Neighborhood Tour. This event hosts a wealth of information, opportunities to ask questions and get answers, and the chance to tour homes that are for sale in a variety of neighborhoods.

Educational Seminars and Exhibits
Beginning at 9:00am and continuing throughout the day, the fair will host multiple education sessions covering topics such as: applying for a mortgage, incentive programs for buying a home in Baltimore, and tips on finding and/or renovating a home. A visit to the exhibit area will give you the chance to speak with specialists including mortgage lenders, title companies, neighborhood associations, and homeownership counselors.

Neighborhood Tours
The tours feature four different neighborhoods, with varying home styles, prices, and locations, and the guides are armed with a lot of information on the neighborhoods and their histories. You have the option to select a guided tour or self-driven tour. There are four guided, narrated tours to each neighborhood, running between 10:00am and 1:00pm. For self-driven tours you can obtain a map of the routes in the exhibit area and then take the time to enjoy the tour at your leisure.

Get $3,000 Toward a Down Payment of Closing Costs?
If you’re one of the first 50 people to tour at least four homes and submit your counseling ticket and signed contract, Baltimore’s Homeownership Office will give you a commitment letter awarding you with $3,000 to use for your down payment or closing costs.

The entire fair is free and open to the public. To find out more about the fair and incentives offered, visit www.livebaltimore.com.

Posted by:Demetria Scott

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August 24, 2009

Welcome to Journey Home Baltimore…

Posted to Demetria Scott

My name is Demetria Scott and I am an agent with Long & Foster’s Roland Park office. I have been a real estate agent for 4 years and my business focuses on Buyers and Sellers of homes priced at $200,000 and below – the largest segment of Baltimore City Buyers or Sellers.

I’ve found that in helping my clients, one of my most important functions is to serve as an information resource. Unfortunately, there seems to be a lack of clear, consistent, easily accessible web information for the average Baltimore first-time homebuyer and seller. Journey Home Baltimore will be the tagline for all my blog contributions about these topics.

What to Expect…

Each Monday I’ll post important, Baltimore-specific information for those wanting to learn more about real estate in Baltimore. I’ll be covering topics such as:

  • Getting started in the home-buying process
  • Financing options
  • Deciding the best options for you
  • Credit considerations
  • Local home-buying events
  • Working with agents
  • Down payment and closing cost assistance

As I know many of the readers are trying to take advantage of the current $8,000 tax credit, the first 8 to 9 weeks of the blog will focus on those taking the leap – into Baltimore homeownership.

I will also be answering questions from readers and invite you to submit your questions or join the discussion at any time. Share your comments, ask questions, or just say hello. There will be a lot to share and learn here and your company is welcome on this Journey Home to Baltimore.

Posted by:Demetria Scott

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August 13, 2009

This is exactly what Hampden needs......

Posted to

We all know that Hampden has come such a long way in the last 10 years. Investors have rehabbed a large percentage of houses to make it an attractive place that people want to live in. Businesses such as banks, restaurants, bars, florists, and many professional offices have made their way into Hampden. Now you can add to the list a WINE BAR. Yes, you heard right, a WINE BAR in Hampden. 13.5% Wine Bar is the newest business to continue the revitalization of Hampden. Let me tell you, this place is great. First, it is so classy and sophisticated. 13.5% Wine Bar is attracting professionals that want to unwind and just relax. Second, it is absolutely beautiful inside. It’s contemporary, tasteful decor, and arrangement is wonderful. The food is simple (Panini, cheese plates, etc.), but excellent and so is the service. The people that work there seem to be in a good mood, willing to engage in conversation, and will always give you honest advice on food and the wines. MOST IMPORTANTLY, IT IS INEXPENSIVE!!! You get a good mix of professional, great- simple food, beautiful atmosphere, great service, and IT IS REASONABLE! ENJOY!!!

Posted by:Michael Bunich

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July 27, 2009

Canton's Best Friends

Posted to Communities

Now that I think about it, I rarely hear dogs barking. Strange, perhaps? You see I live in Baltimore in a section of town known as Canton. Here, it seems, everyone has a dog. Yes, in this concrete edifice, where finding a blade of grass is perceived to be as difficult as discovering a raw pearl in a Chesapeake Bay oyster, one is surrounded by dogs.

People in Canton love dogs. They are our children, members of the family, treated like royalty. Each morning we exit our homes and go on our daily walks. As humans we nod to each other in recognition of our common mission, but most of our attention goes to our passing canine friends. Hello Elvis! (English bulldog), Hi Fred and Togo! (two muscular Weimaraner), and then there is the small herd of Westies (five in all) who in number and personalities appear to control the neighborhood. Max, my black miniature Schnauzer is content to sniff, pass-by and go about his business. His aloofness upsets, to the point of uncontrollable frenzy, a couple of high wired terriers who live across the street.

Max and I often walk by the Chesapeake Wine Company store. Max knows that in this special place works Karen, the nicest, warmest, most wonderful person in the world. For, you see, every time Max visits, Karen treats Max with a hunk of gourmet cheese. Max does love cheese and he, like every other dog in Canton, loves Karen. Spring, summer, and fall in Canton you will see almost as many dogs as people enjoying the many outdoor restaurants around the square and along the water front.

So, if you love dogs, love the city life, and love being with people who love people, you’ll love living in Canton. And, yes, we do have Patterson Park, the Canton Dog Park, and the Korean War Memorial Park, for dogs and humans to run and play. As a real estate agent, Canton is an easy sell for dog lovers. Come see me at my Long and Foster office in Canton, 2400 Boston Street, or call 512-581-8327.



Posted by:Thomas Gaul

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July 03, 2009

Roof Top Decks Add Value in Baltimore City

Posted to

After moving to Canton, Maryland from the suburbs of Austin, Texas, I was walking my black miniature schnauzer Max, when I we became aware of voices. I looked to my left and then to my right. Max, too, was somewhat confused. No people, but plenty of voices, conversations, and lots of laughter.

Of course, people were enjoying their warm, summer evening on their roof tops, often in extreme luxury. The roof tops of Baltimore are covered with roof-top decks that give people a glimpse, if not spectacular view, of the Baltimore Inner Harbor and City skyline.

These roof top people places range from simple 10 by 10 foot wooden platforms to intricate, multi-layered adult playgrounds complete with gazebos, tiki bars, hot tubs, and saunas.

Canton, Fells Point, and Federal Hill are party lands for young adults who want to take advantage of the many fabulous restaurants and bars. However, many who decide to stay home climb to their playgrounds in the sky, their roof top decks.

Roof top decks are a wonderful way to add value, space, and inner harbor views to your home. The Long and Foster Team in Canton can help you find the perfect view for you and your friends high atop your home here among the streets of Baltimore.



Posted by:Thomas Gaul

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June 29, 2009

New Listing in The Healthy Neighborhoods Area 263 S Ellwood Ave

Posted to

The home at 263 S Ellwood will be a 3 bedroom 3 bath complete rehab with a parking pad. This home which sits on Patterson Park with incredible views of the city skyline and the park will boast hardwood flooring, granite counters, stainless appliances, tray ceilings, crown molding and much more. Currently The Healthy Neighborhoods rate is 4.05% and Buyers may qualify for up to $10,000 in matching rehab funds.

For more info on this property or others in the area please contact me at 410-917-0630 or RICHARD.PERRERA@Longandfoster.com.



Posted by:Rich Perrera

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June 22, 2009

Foreclosure Idea

Posted to

There are many ideas floating around on how to solve the foreclosure crisis. This could help us all. I have seen many short sales and foreclosures in and around Canton, Fells Point and Federal Hill. The up side is there are many homes now available at great prices!



Posted by:Brian Dinardo

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June 22, 2009

First Time Home Buyers In Canton

Posted to First-Time Buyers

As a member of the Long and Foster Canton Team, I recently worked with two young couples as they looked at homes in the Canton area of Baltimore located east of Fells Point and the world famous Inner Harbor. Both couples were taking advantage of the first time home buyer incentives and both wanted to live “where the action is.” And, in a nutshell, that is affordable Canton. Home buyers, who like urban living, will find great opportunities in Canton. Canton offers all the amenities. As we looked at a myriad of affordable homes in the $250,000 range, fully rehabbed, and ready to go, we took time to visit several of outdoor venues. A real treat is Canton Square, meeting center for those interested in outdoor dining and partying late into the evening. A short two block walk from the square and you along the water. The walk along the water offers parkland, condos, and restaurants. Marinas line the water front.

After viewing several properties they made their choices and are eager to be part of the Canton action.



Posted by:Thomas Gaul

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June 19, 2009

Healthy Neighborhoods in Baltimore City

Posted to

The Healthy Neighborhoods loan program helps qualified homebuyers purchase and renovate homes on certain blocks within 35 “Healthy Neighborhoods” that are located in Baltimore City. The program offers attractive and innovative loan terms to qualified borrowers. The loan has an interest rate that’s 1% below the market rate (but no less than 4%), doesn’t require PMI, and comes with free design advice. Borrowers may also receive a dollar-for-dollar match, up to $10,000, for renovations from a matching grant (income restrictions apply).

The “Healthy Neighborhoods” in Southeast Baltimore include Highlandtown, Bayview and Patterson Park. Please contact me at 410-917-0630 for more info on the program as well as current listings within the “Healthy Neighborhoods.”



Posted by:Rich Perrera

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May 26, 2009

Inner Harbor Restaurants

Posted to Area Attractions, Events & Activities, Inner Harbor

The restaurants in Inner Harbor are as eclectic as a food connoisseur’s taste buds, offering menus that range from Asian-fusion to all-American burgers and fries. But don’t forget why many hungry people flock to Baltimore in the first place—the seafood. There is a large number of highly-acclaimed seafood restaurants in Baltimore that serve the finest Chesapeake Bay cuisine and those seafood restaurants in Inner Harbor definitely do not disappoint. Establishments such as Phillip’s Harborplace and the Rusty Scupper offer menus with authentic regional flair for a delightful waterfront dining experience.

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May 26, 2009

Inner Harbor Shopping

Posted to Area Attractions, Communities, Inner Harbor

At the top of the list of premier Inner Harbor shopping attractions lays Harborplace & the Gallery, a waterfront marketplace in the heart of the district. Harborplace boasts a number of major world-class retailers, such as Ann Taylor, Coach, and the Banana Republic, as well as 30+ restaurants and eateries, all within two waterfront pavilions and a four-story glass atrium. Complementing this collection of widely recognized retailers are various shops and boutiques that are truly one-of-a-kind finds, selling goods specific to Baltimore and the Chesapeake Bay lifestyle.

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May 26, 2009

Inner Harbor Attractions

Posted to Area Attractions, Communities, Inner Harbor, Inner Harbor

Whether you are history buff, a thrill-seeker, or just looking for a night on the town, there are hundreds of places to go in Baltimore’s Inner Harbor. The district is home to a variety of museums and world-class attractions such as the Maryland Science Center, the Baltimore Aquarium, and the Port Discovery Children’s Museum, offering fascinating sights and activities for even the littlest Baltimore adventurers. Baltimore’s military history can be explored at Fort McHenry—site of the important Battle of Baltimore in 1814—as well as the Baltimore Maritime Museum, which exhibits three historic ships and one lighthouse at Inner Harbor.

In addition to its museums, Inner Harbor also boasts a vibrant entertainment and nightlife district called Power Plant Live! Power Plant Live!, located near the 100 year-old Pratt Street Power Plant building, offers a collection of nightclubs, bars, restaurants, art galleries and live music venues that ensure you will never have a boring night in Baltimore. Power Plant Live!’s premier music scene is Rams Head Live!, a 26,000 square foot entertainment venue that has welcomed performers that range from Elvis Costello to John Legend.

Other major attractions in Baltimore’s Inner Harbor are the World Trade Center—which offers the best panoramic view of the city from the “Top of the World” Observation Deck—as well as the Oriole Park at Camden Yards (home to the Baltimore Orioles) and the M&T Bank Stadium (home to the Baltimore Ravens), both of which are just steps away from the heart of Inner Harbor.

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May 26, 2009

Welcome to Baltimore’s Inner Harbor

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Many who live in Baltimore, MD will say that the city’s Inner Harbor is the place to be. A thriving cultural hub since the 1970s, the district flaunts an energetic and spirited atmosphere that has only heightened with each passing decade. Baltimore’s Inner Harbor is home to a jaw-dropping list of attractions, shopping areas, and restaurants that are favorite haunts for local Baltimoreans and visitors alike.

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