REAL ESTATE HOUSING OUTLOOK, December 2009 for Maryland Buyers and Sellers

There is currently 6.0 months of supply available, down dramatically
from the mark of 9.5 months seen at the same time in 2008.
Townhomes have the lowest months supply by far at 3.6 months,
while single-family detached homes and condos have 6.8 months and
6.7 months of supply, respectively.
Sales are up across the board, but the biggest gains in buyer activity
can be found in the lower price ranges.
The challenging conditions that sellers face in the upper price ranges
is evident when looking at how close (or far) they get to their original
asking prices and how long it takes them to sell. Above $1,000,000,
sellers are only getting 89.2 percent of their original prices, and their
homes are taking an average of 175 days to sell. Both numbers are the worst of both price ranges.

We Are BRAC Relocation Specialists
RELOCATING TO ABERDEEN, APG and BRAC RELOCATION SPECIALISTS, REALTORS®, REAL ESTATE AGENTS
Aberdeen is home to the U.S. Army's Aberdeen Proving Ground (APG). The proving ground was established by Act of Congress and came into operation in January 1918. The proving ground occupies more than 72,500 acres in Harford County. More than 7,500 civilians and 5,000 military personnel work at APG. Because of BRAC, Robert McArtor and his Auction and Real Estate Staff have been busy with helping civilians relocate to the Maryland, Harford County, Cecil County, Baltimore Areas. Auctions have become a viable option when purchasing homes in these areas. Maryland HOMES Team with Long and Foster Real Estate, Inc. is proud to be of service to anyone affected by BRAC. If you are looking for a home in these areas, you can become one of our VIP Buyers are start receiving listings TODAY that match your home buying criteria.
Under the Base Realignment and Closure (BRAC) program announced in 2005, Aberdeen will see an influx of people relocating to the area. If you are interested in purchasing your next home through the auction method or simply looking for an Active property on the market. Robert B. McArtor and his team is here to assist you in your relocation needs.
If you are looking for an experienced REALTOR®, Real Estate Agent or Auctioneer serving the Baltimore, Harford County, Baltimore City and Cecil County Area, your search has ended.
Whether you are Relocating to Maryland, Buying a Home, Selling a Home or considering the Auction Method of Marketing your property. Robert McArtor, REALTOR with Long and Foster Real Estate, Inc. and noted Licensed Auctioneer is here to serve you. Have your questions answered immediately by calling me directly

Harford County Maryland Real Estate Market Updates, November 2009

Harford County Maryland Market Updates
For More Information, Visit www.MarylandHOMESTeam.com
A free research tool from MRIS, Inc.

New Listings - 7.4%
Closed Sales + 4.5%
Pending Sales + 9.2%
Median Sales Price* - 7.1%
Percent of Original List Price Received at Sale*
- 0.8%
Average Days on Market Until Sale
- 1.3%
Single-Family Detached Inventory
- 11.5%
Townhouse-Condo Inventory
- 20.7%

Robert McArtor, Long and Foster Real Estate, Inc.
Buying a Home in Harford County? Click Here!
"$5,000 Additional Savings on Your Home Purchase in Maryland or We Pay You $500"

If you are considering relocating or moving to Harford County Maryland, there is one Real Estate TEAM to choose when you start your search for your dream home. Our extensive knowledge in the Harford County Real Estate Market will benefit you when purchasing your home. We have provided helpful links for you. From this page, you can also start searching for properties that are available. Let us start working for you TODAY! It starts with a simply searching for a home, filling out the email inquiry form and its that simple! One of our Team Members will contact you immediately to begin to work within your schedule to view the homes of your choice in Maryland, Baltimore County, Harford County, Cecil County Relocations

If you are one of the many affected by BRAC and are moving to Aberdeen Proving Ground, MarylandReady.com is a great website with many relocation services. Please Bookmark this page and begin your search for Harford County Homes in Maryland. Serving all communities of Harford County if you are Buying or Selling.

REO Properties vs. Buying Foreclosure Auction Properties, Buyer Protection is the key.

To start with, My name is Robert B. McArtor and I am a Real Estate Auctioneer in Maryland actively selling foreclosed properties through-out the state. I also have a Traditional Sales Team with Long and Foster Real Estate, Inc. http://www.MarylandHOMESTeam.com/

I have been auctioning properties since 1991 and well on my way to auctioning over $28 Million dollars worth of property in Maryland in 2009 alone. http://www.MDAuctionSales.com/

With that said I have experience in bidding on and buying property at the courthouse steps AND buying REO (Real Estate Owned) or "Bank Owned" properties in Maryland. I have sold my friends REO properties with 100% success and yes…even I purchased a Bank Owned home as my primary residence. I bring with this discussion a lot of experience in both ends of buying and selling bank owned and auction properties. Depending on your perspective and what you are ultimately trying to do with the property, your risks could be very high or very profitable.

AUCTION FORECLOSURE PURCHASE

The auction method of purchasing real estate can be the most profitable yet the most risky venture you can partake in. If you are looking to bid on and purchase a home and use it as your primary residence in Maryland, get yourself armed with all the information you need. Who better to ask than an Auctioneer selling Foreclosed Properties The key to a successful purchase is Due-Diligence. What does that mean? It means Do your homework first! Study the market in the area you are looking to live and know it! You do not want to be caught in a situation of over-bidding on a property.

There are several risk factors you will need to accept. One, The owner may still be living in the home. If this is the case, know that it is your responsibility to obtain possession of the property once you settle on it. This can be done in couple ways. You can offer the owner "Cash-for-Keys"…basically "I'll give you cash once you have removed your personal belongings, kept the appliances in place, didn't strip it of the fixtures and once we walk-through the property, I give you cash…you give me the keys". This can be a win-win for both parties, you get a clean home with minimal damage and the previous owner gets cash for a security deposit on his/her apartment. The amount may vary, I have had 100% success offering cash-for-keys and have paid out as much as $500 to $3,000 to the tenant or previous owner. It's all in how you approach the people. Remember, they are already emotionally spent. Don't make it worse.

1. Be prepared to give the Auctioneer the required deposit as spelled out in the advertisement. Remember, the ad IS the contract. Read it and understand it. If the deposit is $10,000 – You will need that amount in either cash, cashier's check (made payable to yourself then sign it over) in order to bid on the property. This is typically the only qualification the Trustee and Auctioneer require in Maryland. Do not come with a personal check unless your name is Senator so and so……then they will require double! Just kidding. No personal checks unless authorized by the Trustee prior to sale.
   
2. Do not focus on the debt amount owed on the property and assume it's the "starting bid" or "reserve bid" from the bank. Many properties are being offered BELOW the debt amount owed because the bank does not want to take on the added inventory of homes. Depending on location, as-is valuation, condition, etc. the bank may take a 20% to 50% reduction at the courthouse steps. Example, original principle mortgage amount was $100,000 in 2006. The owners made a few payments but fell behind. After penalties and interest, the amount is $109,000. The bank is requiring a $10,000 deposit. In the past, bidders have assumed the deposit is 10% of the banks starting bid or "reserve". This is not true! In many cases the bank will authorized a sale for much less than the amount owed. With this in mind…..bring your deposit and bid! I have sold many homes with only 1 person standing in front of me because bidders were scared of the deposit. Don't be. Experienced Investors know this and NOW you do too.
   
3. Ratification period. In most jurisdictions, it is taking approximately 30 to 90 days for the court to ratify or "ok" the sale. The interest rate published in the ad is what you will be paying on your bid amount from the date of sale to the date of settlement. The owner still has a right to file "exceptions" to the sale so don't assume you will only be paying the interest on 45 days or so. I purchased a property that took 8 months to settle! I was able to get 3 months of it reduced however that is only through the power of negotiating (pat on the back).
   
4. I have found that the sooner you contact the owner after you become the successful bidder on the property the better. Open that line of communication. Let them know you acquired their property through foreclosure and your intention is for a smooth, hassle-free transition..hence..cash-for-keys, etc. Your final option is an eviction but that costs time and money.
   
5. If you are purchasing this home for investment purposes, again, do your homework. Don't venture out on this alone. Find a mentor or someone who has done this before. I can't tell you how many "newbie's" show up at auction excited they are the successful bidders just to find out months later they overbid, did not work out their rehab numbers correctly, did not figure "going in" AND "going out costs", etc. I will not go into the details here but due-diligence is the key. Work closely with a Real Estate Agent who understands the mind-set of an Investor (me) and allow them to advise you on value, rehab, retail value, etc.
   
6. Last but not least, know that you will be paying BOTH sides of the closing costs. Remember, what you are signing is a No-Contingent (Not contingent on appraisal, your ability to obtain financing, home inspection), "As-Is" contract. If you do not settle, you could lose your deposit. I have seen it done many times. Concerning the financing, you need to be cash ready or obtain Hard Money for this purchase. You may have the option to refinance out of the loan later at a much better rate. Forget obtaining a conventional mortgage because you will not be able to conduct a walk-through appraisal. Some investors purchase with a HELOC but why use your own money. Your Bank or Mortgage Broker is there to answer your financing questions…know before you bid or it WILL cost you!
   

REO or BANK OWNED PROPERTIES

I am going to approach this scenario strictly as if you were purchasing a home to be used as your primary residence. Investors also purchase these properties and have done very well with rehabbing and either selling or using as a rental. I just represented a buyer/investor on a 4 bedroom, 2 bath Rancher with a 2 car garage on 1.15 acres for $150,000 in Jarrettsville!! It is being rehabbed now and will be ready for the retail market in March of 2010. My primary residence is a Bank-Owned property in Fallston, Maryland. It was initially purchased for $500,000 in 2005 and was foreclosed on. I purchased a beautiful Brick Colonial with a brand new kitchen – Jenn-Air Double Oven with a Cook-top Stove, In-ground Pool, 3 decks, gazebo, 3.5 baths, 2 car garage, new roof for less than $400,000 and negotiated the bank to pay ALL my closing costs! It can be done but only with an aggressive real estate agent who knows the REO business. I know how the banks think….I know how they operate….. I have bank owned listings.

1. After becoming financially qualified, Search for Bank Owned properties in the area(s) you want to live. How? Find a local agent that knows the REO market. Tell them you want bank owned listings sent to you immediately when they come on the market. Make appointments to see them. Many of the homes you will preview will need some sort of repairs done. Some more than others. Look past this initially. Think of the bigger picture. Ask yourself, "Is it the area I am looking for? Is it the right style of home? Can I work with these repairs needed? Does it work within my budget?" Just figure that every home needs AT LEAST paint and carpet. If you are thinking of other up-dates then evaluate those costs. Your agent may be able to help you estimate those initial costs.
   
2. If you like the home, ask for comparables in the area. You don't want to do the work that is needed and find out your saving $1,000 by buying a bank owned property. Most bank owned homes are listed 20% to 50% of retail based on a 30 day "as-is" sale AND or course….condition. We can help you experience that type of savings and will even guarantee it!
   
3. Before you start your search, make sure you are financially qualified. Let your bank or mortgage broker know what you are looking to do. If you only qualify for an FHA, there are certain things an agent must look for to make sure it will pass the appraisal process. I will not get into the details here only to say get an experience real estate agent to represent you to start the process.
   
4. What I love most about this type of sale for a buyer is that you ARE protected by the contract. Your agent can help protect you with a financing contingencies, appraisal contingency, mold inspection, radon inspection, home inspection, roof inspection, termite inspection, inspecting the inspector inspection (just kidding). Just know THIS….the more contingencies you put in the contract…the more difficult it will be for the bank to accept your offer over someone else's. Again, an experienced agent will help you negotiate your best deal. I know what the banks are looking for!
   
5. It is important that the contract is reviewed carefully. Banks many times will put verbiage in the contract stating they will pay NO closing costs. Then how is it I was able to negotiate the bank to pay ALL my closing costs AND reduce the price of the home by $100,000? Experience. Period. They may also limit the FHA repairs or ANY repairs they will do. Most will not do or allow repairs, just know that before signing the contract and undergo the expenses of hiring a Home Inspector, etc.
   
6. I have found that many times the bank will LIST a property for sale for less than what they would have taken at the courthouse steps. One reason is that most times the bank cannot evaluate the interior condition of the home. Prior to foreclosure they will order what is called a BPO or "Broker Price Opinion". This is basically an in-expensive appraisal. Most of the time it is a "drive-by" appraisal evaluating only the exterior condition. The bank will base their value on the condition, area comparables and whether the market is declining, etc. Once the bank acquires the property, the Real Estate Agent assigned to the property will verify occupancy, provide an Interior BPO for the Bank and prepare it for sale. The BPO will paint a picture for the bank as to the condition of the interior of the home. This is where the rubber meets the road. If the interior condition is poor, the bank, along with the agent must access the damage and place a value to that. I have found that many times the bank will list a property for $20,000 to $30,000 less than what you would have had to bid on auction day to purchase it. WOW! Condition, condition, condition.
   
7. Hiring a Full Time Real Estate Agent is crucial in a successful Bank Owned or REO purchase. If you have any questions, please do not hesitate to contact me.

Proposed CHANGE in FHA Guidelines for First Time Home Buyers, ACT NOW!

FHA proposed changes in the future for First Time Home Buyers. If you were thinking of riding the fence for awhile before purchasing your first home in Maryland, you may want to think again. What are the proposed changes?
•• Raising the FHA up front mortgage insurance premium (UFMIP). Currently at 1.75% of the loan amount it can increase to as much as 3% but Congress will have to vote on it. Not too long ago it was 2.25% and we could easily see it return to that level
•• Limiting the amount of seller contributions towards the buyer's closing costs from the current 6% to 3%. Any of you currently closing deals will realize how big this could hurt. The single most difficult obstacle for first time homebuyers is saving for their cash to close, which brings us to...
•• Requiring higher down payment requirements. Although Secretary Donovan states "there are several ways to accomplish this, and so we are currently analyzing various options to determine which is the most effective", it essentially means buyers will need more cash to close.
•• Raising minimum credit score requirements. Currently FHA allows a buyer with the minimum down payment to have a credit score as low as 500. There has not been a reputable lender going that low in quite some time so depending on what score they settle with, this change may not even be felt in the marketplace. The market norm right now is 620.
When could this change take place?
HUD/FHA is expected to begin formally proposing these changes as early as January, 2010. The most time consuming of the changes will likely be increasing the UFMIP since it will require congressional action. It should be noted, however, that by increasing the UFMIP to the maximum allowable levels it would increase the cost of getting an FHA loan by $1,250 per $100,000 borrowed. To sum it up, if you are planning to buy a home in the near future, the faster you move the better off you will be. If you are interested in purchasing your first home in Maryland, Baltimore, Harford or Cecil County, START YOUR SEARCH NOW! We have the most up-to-date Bank Owned Foreclosed Property List in Maryland. Contact our Team Now!