Howard County Real Estate Talk

Home prices rise?

Brian Pakulla — 2010-02-22T02:40:00Z

In Central Maryland, they actually are level. Although compared to how they were decreasing, perhaps the stats will show a slight increase. Bottom line, evidence is pouring in that this is a great time to buy and we probably are at the bottom.

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Home price increases spread to more cities

Friday, February 12, 2010

REAL ESTATE

Home price increases spread to more cities
Home prices rose in more than 40 percent of U.S. cities in the fourth quarter of last year, as massive federal spending helped boost the housing market.

The National Association of Realtors said the median sales price for previously occupied homes rose in 67 out of 151 metropolitan areas in the October-to-December quarter vs. a year earlier. In the third quarter, prices rose in 20 percent of cities.

The national median price was $172,900, or 4.1 percent less than a year earlier. That was the smallest year-over-year price decline in more than two years.

The number of home sales surged in the quarter, hitting a seasonally adjusted annual rate of 6 million, up 27 percent from a year earlier.

-- Associated Press

Info on interest rates

Brian Pakulla — 2010-02-22T02:37:00Z

Sounds like rates will eventually rise. I've been telling buyers this for several months now. It is a great time to buy. Plus BRAC is coming in late 2010. So get in before the competition comes.

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The Fed's surprise move of raising the rate it charges banks for emergency loans by a quarter-percentage point to 0.75% has bond investors rattled. While this move does not directly impact 30 year fixed rates, many economists believe that this is another signal that the central bank's extremely low rates are on the way out. Couple this with the Fed's plan of scaling back the expanded mortgage-backed securities purchase program that they have pursued for the last 15 months, and it becomes quite clear that 30 year fixed rates will be rising from the 5.000%ish range that home buyers have become used to.

Now is the time to act! Rates are still low, inventories are still high, sellers are willing to negotiate, and buyers can still take advantage of the tax credit as long as they go under contract by the end of April and settle by the end of June.

First Place Bank still offers 80/10/10s to qualified buyers!

30 year fixed - 5.000% with 0 points

Patrick Sheplee

Vice President / Loan Officer

First Place Bank

15400 Calhoun Drive Suite 170

Rockville, MD 20855

Office: 301-279-5155

Cell: 301-580-7709

eFax: 301-560-6697

psheplee@fpfc.net

When should you buy to get most out of the new tax credit?

Brian Pakulla — 2009-11-06T21:52:00Z

There was a huge rush in Sept/October 2008 for 1st time home buyers to get the $8,000 2008 tax credit. I predict it will be the same this time around, which means March and April should see an increase in sales. This time around however, move-up buyers may get a tax credit as well.

With rates at super low levels and prices at the bottom, I would recommend trying to buy from Nov-Feb to avoid the rush. We experienced multiple offers in the Fall of 2008 on premium properties. The same can happen, but possibly even with greater consistency since this will happen in the fast moving "spring" market.

TAX CREDIT EXTENDED 2009-2010

Brian Pakulla — 2009-11-06T21:38:00Z

Thanks to Mike Fagan with PHH mortgage for all this great info:

Homebuyer Tax Credit Update!

On November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time.

To learn what the new tax credit means to you and your clients, take a look at the concise overview below.

In addition, we’ve put together a script featuring wording you can cut and paste as needed to beat out your competition by connecting with clients who may be able to benefit from the new plan details!

TAX CREDIT OVERVIEW

Who Gets What?

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

What is the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

What is a Tax Credit?

A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

How Much are First-Time Homebuyers (FTH Eligible to Receive?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible fortFTHB Tax Credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.

This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?

The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.

According to the IRS, factors that would demonstrate the ownership of the property would include:

1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.

Are There Other Restrictions to Taking the FTHB Credit?

Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:

They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”)
They do not use the home as your principal residence.
They sell their home before the end of the year.
They are a nonresident alien.
They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?

Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?

Yes, provided that the child meets the other requirements for the tax credit.

Michael Fagan

PHH Home Loans

10050 Baltimore National Pike

Ellicott City, MD21042

(410) 218-2030 o

(856) 917-2020 fax

The Real Estate Market has hit Bottom

Jeff Stanyard — 2009-08-03T00:43:00Z

The Associated Press released an article today stating the national averages show the Real Estate market has hit bottom and is slowly climbing from the bottom. According to the article, the market has rebounded from a low in January to the most recent statistics of June.

January vs June:

Home Sales up 28%
Price up 10%
Sales up 3%
New Home Construction up 113%

They do warn that an increasing unemployment rate and quickly approaching deadline on the $8,000 first time home buyer credit could significantly slow the rebound. All in all, these are good signs.

Article: http://www.cnbc.com/id/32249022

More encouraging news....consumer confidence improves!!!

Brian Pakulla — 2009-04-28T20:49:00Z

Do I sound like a broken record or what? The market appears to be bottoming out.

http://news.yahoo.com/s/ap/20090428/ap_on_bi_ge/us_economy

Comments on Spring 2009 market

Brian Pakulla — 2009-04-18T01:15:00Z

Just want to give a quick note to our readers....my opinion on the current market is that we probably are at bottom. Active inventory is starting to decrease and pending sales are increasing. I think this is in large part due to low interest rates and low home prices. Unfortunately, I don't think we'll see sizable appreciation at least for several years. While this lack of appreciation isn't a selling point for buyers, the low interest rate potential for 30 years makes it an outstanding time to buy!

Some positive news on the housing market!

Brian Pakulla — 2009-01-29T03:36:00Z

I came across this article and wanted to let you know of some of the possible advantages to buying a home at this time. Prices are significantly low, interest rates are low and sales have to started to pick up. There is no way to know for sure, but perhaps we could be at a bottom here or close to it.

http://www.marketwatch.com/news/story

If you have any questions, let me know.

A great time to buy or refi your current home!

Brian Pakulla — 2008-11-28T19:16:00Z

Recently we've seen a tremendous drop in rates. Today, we are seeing 30 year fixed rates in the low 5.0-5.5% range. If you have an existing loan, it is a great time to consider refinancing. However, with the recent price drop in home values it would be smart to make sure you have enough equity in your home before paying any appraisal or loan fees. If you need a free market analysis of your home, contact us anytime.

If you have been thinking about buying, these rates should been enough to encourage you to jump in. Couple that with homes price back at 2004/2005 price levels, it certainly has become a much more attractive time to buy.

Interesting comments from Warren Buffett on the stock market

Brian Pakulla — 2008-10-10T21:34:00Z

I came across this from a colleague and found it interesting. Just as in Real Estate, generally the smart investors do the opposite of the market. They buy when the market is low and sell when it is high. With the stock market showing you its typical volatility we need to revisit our Real Estate investments. Although Real Estate has been tough the last few years, it is still tangible and a necessity. A piece of stock is not necessary. You have to live somewhere.

In addition, Real Estate is very slow moving. This historical week shows you how crazy the stock market is. Real estate may drop 10% in 1 year, but the market can drop almost 10% in 1 day!!!!!

Do know, I don't have an exact source of this quote. So please don't take this as 100% factual, but it came from a reliable source. The bio info can be found on en.wikipedia.org/wiki/Warren_Buffett

face="Arial" size="3">Buffett: Well, the stock market in the short [run]—my old boss Ben Graham said that in the short run the stock market is a voting machine, [and] in the long run it's a weighing machine.

As a voting machine, it responds to people's emotions. There's no literacy test for voting. You vote according to how much money you have, not according to how smart you [are]. So the stock market does some very silly things in the short run. Over the long run, it behaves quite rationally.

And, you know, five years from now, 10 years from now, we'll look back on this period and we'll see that you could have made some extraordinary buys. That doesn't mean it won't get more extraordinary a week or a month from now. I have no idea what the stock market is going to do next month or six months from now.

I do know that the American economy, over a period of time, will do very well, and people who own a piece of it will do well. But they shouldn't own it on leverage. That's what people have learned in this period, that you've got to be able to play out your hand and it's a big mistake to let somebody else be in a position where they can sell you out.

Warren Buffett (born August 30, 1930) is an American investor, businessman and philanthropist. He is regarded as one of the world's greatest investors, and is the largest shareholder and CEO of Berkshire Hathaway.^[3] He was ranked by Forbes as the second richest American with an estimated net worth of $50 billion as of September 17, 2008.^[1]

Often called the "Oracle of Omaha",^[4] Buffett is noted for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth.^[5] His 2006 annual salary was about $100,000, which is small compared to senior executive remuneration in other comparable companies.^[6] When he spent $9.7 million of Berkshire's funds on a business jet in 1989, he jokingly named it "The Indefensible" because of his past criticisms of such purchases by other CEOs.^[7] He lives in the same house in the central Dundee neighborhood of Omaha that he bought in 1958 for $31,500, today valued at around $700,000.^[8]

Buffett is also a noted philanthropist. In 2006, he announced a plan to give away his fortune to charity, with 83% of it going to the Bill & Melinda Gates Foundation.^[9] In 2007, he was listed among Time's 100 Most Influential People in The World.^[10] He also serves as a member of the board of trustees at Grinnell College.

MONEY Magazine ranks Columbia/Ellicott City as 8th BEST PLACE TO LIVE IN THE USA!

Brian Pakulla — 2008-07-18T21:29:00Z

And the praise keeps coming. Add all the great publicity and with BRAC jobs coming thru 2012, this maybe a great time to consider increasing your real estate portfolio in Central Maryland!

Click here to read the MONEY Magazine article

Update on the financial markets.

Brian Pakulla — 2008-07-18T21:27:00Z

It has been a tumultuous week for Wall Street but it seems that calmer heads have prevailed for the last couple of days - let's all hope that trend continues. There has been a lot of negative speculation regarding the financial health of any company associated with the mortgage industry including most banks and industry giants Fannie Mae and Freddie Mac. The failure of IndyMac seems to have been the catalyst for the latest round of fears. The fear that Fannie and Freddie are going to fail is, in my opinion, greatly exaggerated. Unfortunately, once the rumors start, they can start to become a self-fulfilling prophecy when panicked investors start dumping their shares. That is why we have seen such a public effort by the Fed and the Treasury to put in place measures to assist both Fannie and Freddie should they start to see problems raising the capital that they need for their day to day functions. The odds that Fannie or Freddie actually need to resort to any of these measures appears to be slim - Freddie Mac has had two auctions of their mortgage-backed securities this week that went fine. Both the Fed and the Treasury realize that the media-driven negative perception of this situation needs to be addressed which is why such a broad-based contingency plan is being hammered out.

The bottom line is that both Fannie and Freddie are vital not only to our industry, but to both the US and Global economies as a whole. If the average homebuyer cannot access a mortgage at favorable rates, the US economy will come to a grinding halt and the Global economy will soon follow. It is my opinion that Fannie and Freddie will weather this storm on their own merits, as will most banks. However, it is important for everyone to know that the government will step in with appropriate measures to assure Fannie and Freddie's continued viability if the need arises.

If there is anything that I can do for you, please call.

Pat Sheplee
Loan Officer
FNMC \ A Division of National City Bank
15400 Calhoun Drive Suite 100
Rockville, MD 20855
301-279-4697 Direct
301-580-7709 Cell
301-309-0240 Fax
patrick.sheplee@ncmc.com

Forbes ranks Howard County as the 17th best place to raise a family in the USA!

Brian Pakulla — 2008-07-07T01:19:00Z

Just another good reason to buy in Howard County. Howard County has been recognized by both Money Magazine and now Forbes as one of the best places to live. And when there is a good place to live, there is a good place to buy and invest in.

http://www.forbes.com/2008/06/27/schools-places-family-forbeslife-cx_zg_0630realestate_slide_5.html?thisSpeed=15000

Central Maryland Homes for Sale

Brian Pakulla — 2008-06-25T19:55:00Z

Photo	Address	Details	Price
	4829 Attenborough Way Ellicott City, MD 21043 TourID: 0	Amazing Builder's Model Home backs to WOODS! Bedroom: 4 Full Bath: 4 Half Bath: 1 5050 Sq. Ft.	$899,000

	4816 Attenborough Way Ellicott City, MD 21043 TourID: 0	NEW BRICK FRONT COLONIAL W/ENDLESS FEATURES! Bedroom: 4 Full Bath: 4 Half Bath: 1 5899 Sq. Ft.	$825,000

	9706 Gretchen Lane Ellicott City, MD 21042 TourID: 319274	Amazing Value in Howard County Bedroom: 5 Full Bath: 3 Half Bath: 1 4687 Sq. Ft.	$775,000

	9922 Wintry Day Place Laurel, MD 20723 TourID: 333337	The largest in Emerson! Over 5,500 finished square feet! Bedroom: 5 Full Bath: 3 Half Bath: 1 0 Sq. Ft.	$775,000

	4570 Doncaster Drive Ellicott City, MD 21043 TourID: 412139	GORGEOUS COLONIAL W/POOL! Bedroom: 5 Full Bath: 3 Half Bath: 1 4464 Sq. Ft.	$750,000

	4808 Attenborough Way Ellicott City, MD 21043 TourID: 0	BRAND NEW LUXURY HOME IN PRIVATE COMMUNITY! Bedroom: 4 Full Bath: 3 Half Bath: 1 3532 Sq. Ft.	$699,000

	5135 Crystal Springs Drive Ellicott City, MD 21043 TourID: 407367	SPETACULAR DESIGN EXPO MODEL HOME WITH POOL! Bedroom: 4 Full Bath: 3 Half Bath: 1 3132 Sq. Ft.	$697,900

	4529 Hidden Hollow Drive Ellicott City, MD 21043 TourID: 465646	Bedroom: 4 Full Bath: 2 Half Bath: 1 4298 Sq. Ft.	$675,000

	5108 Little Creek Drive Ellicott City, MD 21043 TourID: 463196	Amazing luxury colonial on huge open lot! Bedroom: 4 Full Bath: 2 Half Bath: 1 2750 Sq. Ft.	$600,000

	10005 German Road Ellicott City, MD 21042 TourID: 0	CUSTOM RANCHER W/ 3700+ SQ.FT.! Bedroom: 5 Full Bath: 3 Half Bath: 3777 Sq. Ft.	$599,999

	707 Old Donaldson Ave Severn, MD 21144 TourID: 424876	REMODELED & EXPANDED! Bedroom: 4 Full Bath: 2 Half Bath: 1 0 Sq. Ft.	$575,000

	9221 Osprey Court Columbia, MD 21045 TourID: 459402	REMODELED COLUMBIA COLONIAL ON PREMIUM LOT IN SOUGHT AFTER THUNDER HILL! Bedroom: 5 Full Bath: 2 Half Bath: 1 3854 Sq. Ft.	$575,000

	4504 Vinter Way Ellicott City, MD 21043 TourID: 476507	OUTSTANDING COLONIAL PERFECTLY MAINTAINED BY ORIGINAL OWNER! Bedroom: 4 Full Bath: 3 Half Bath: 1 3212 Sq. Ft.	$575,000

	4669 Stallion Court Ellicott City, MD 21043 TourID: 436617	DREAM HOME 2008! Bedroom: 5 Full Bath: 3 Half Bath: 1 3088 Sq. Ft.	$550,000

	4830 Lee Hollow Place Ellicott City, MD 21043 TourID: 431837	LUXURY TOWNHOME BACKING TO WOODS! Bedroom: 3 Full Bath: 3 Half Bath: 1 1865 Sq. Ft.	$475,000

	6201 Black Cherry Circle Columbia, MD 21045 TourID: 454374	WOW FACTOR! Bedroom: 4 Full Bath: 2 Half Bath: 1 0 Sq. Ft.	$418,000

	15803 Kerr Road Laurel, MD 20707 TourID: 378169	Updated single family on huge 1/2 acre lot! Bedroom: 4 Full Bath: 3 Half Bath: 0 2994 Sq. Ft.	$400,000

	6540 Rice Court Elkridge, MD 21075 TourID: 437310	4 BEDROOM, 3 FULL BATH ON CUL-DE-SAC LOT! Bedroom: 4 Full Bath: 3 Half Bath: 2450 Sq. Ft.	$400,000

	6433 Fairmead Lane Columbia, MD 21045 TourID: 438832	PEACE AND QUIET! Bedroom: 4 Full Bath: 2 Half Bath: 1 2656 Sq. Ft.	$400,000

	7721 Blueberry Hill Lane Ellicott City, MD 21043 TourID: 418653	UPDATED, EXPANSIVE GARAGE END UNIT! Bedroom: 3 Full Bath: 2 Half Bath: 1 0 Sq. Ft.	$389,900

	9103 Montague Ct Laurel, MD 20708 TourID: 422679	REMODELED 4 LEVEL SPLIT ON IDEAL CUL-DE-SAC LOT! Bedroom: 4 Full Bath: 2 Half Bath: 1 3910 Sq. Ft.	$375,000

	7811 Old Litchfield Lane Ellicott City, MD 21043 TourID: 434362	REMODELED END UNIT TOWN HOME IN PRIME ELLICOTT CITY LOCATION! Bedroom: 4 Full Bath: 3 Half Bath: 1 1920 Sq. Ft.	$375,000

	6671 MacBeth Way Sykesville, MD 21784 TourID: 436658	UNBELIEVEABLE 4 BEDROOM, 2 1/2 BATH SINGLE FAMILY VALUE! Bedroom: 4 Full Bath: 2 Half Bath: 1 9278 Sq. Ft.	$369,900

	8762 Ruppert Court Ellicott City, MD 21043 TourID: 433865	GARAGE TOWN HOME BACKS TO WOODS! Bedroom: 3 Full Bath: 2 Half Bath: 2 2376 Sq. Ft.	$369,900

	7722 Chatfield Lane Ellicott City, MD 21043 TourID: 448665	REMODELED 4 BEDROOM, 3.5 BATH TH.... A MUST SEE! Bedroom: 4 Full Bath: 3 Half Bath: 1 0 Sq. Ft.	$369,900

	5749 Goldfinch Court Ellicott City, MD 21043 TourID: 453120	MODEL HOME! Bedroom: 3 Full Bath: 2 Half Bath: 1 0 Sq. Ft.	$365,000

	7771Chatfield Lane Ellicott City, MD 21043 TourID: 422966	4 BEDROOM, 3.5 BATH LUXURIOUS TOWN HOME BACKING TO WOODS! Bedroom: 4 Full Bath: 3 Half Bath: 1 2160 Sq. Ft.	$350,000

	8154 Mallard Shore Laurel, MD 20724 TourID: 443334	Luxury End Unit Garage Town House Bedroom: 3 Full Bath: 2 Half Bath: 1 2316 Sq. Ft.	$350,000

	6358 Arbor Way Elkridge, MD 21075 TourID: 469703	LUXURY END UNIT GARAGE TOWN HOME! Bedroom: 3 Full Bath: 2 Half Bath: 2 2280 Sq. Ft.	$350,000

	7721 Heatherside Lane Ellicott City, MD 21043 TourID: 435993	IDEAL GARAGE TOWN HOME BACKING TO WOODS! Bedroom: 3 Full Bath: 2 Half Bath: 2 2100 Sq. Ft.	$339,900

	9437 Manor Forge Way Owings Mills, MD 21117 TourID: 441358	Luxury Brick Front Town Home in the Heart of Town Center Bedroom: 4 Full Bath: 3 Half Bath: 2400 Sq. Ft.	$339,900

	6309 Troy Court Elkridge, MD 21075 TourID: 444250	Updated luxury TH with gleaming hardwood floors! Bedroom: 3 Full Bath: 2 Half Bath: 1 2040 Sq. Ft.	$339,900

	7802 Old Farm Lane Ellicott City, MD 21043 TourID: 463778	3 LEVEL GARAGE TOWN HOME BACKS TO WOODS Bedroom: 3 Full Bath: 2 Half Bath: 1 1920 Sq. Ft.	$334,900

	8222 Tall Trees Ct Ellicott City, MD 21043 TourID: 421122	Updated Brick Front Town Home Backs To Woods Bedroom: 4 Full Bath: 2 Half Bath: 1 1920 Sq. Ft.	$325,000

	8750 Cheshire Ct Jessup, MD 20794 TourID: 451567	Amazing Single Family in Howard County at a town home price! Bedroom: 4 Full Bath: 2 Half Bath: 0 0 Sq. Ft.	$325,000

	2022 Pinecroft Court Odenton, MD 21113 TourID: 468789	GORGEOUS GARAGE END TOWN HOME! Bedroom: 2 Full Bath: 2 Half Bath: 1 1826 Sq. Ft.	$324,000

	14249 Ballinger Terrace Burtonsville, MD 20866 TourID: 459397	BRICK, END UNIT TOWN HOME ON AMAZING LOT BACKS TO TREES & POND! Bedroom: 3 Full Bath: 2 Half Bath: 2 2040 Sq. Ft.	$319,900

	8967 Skyrock Court Columbia, MD 21046 TourID: 432307	AMAZING END TOWNHOME! Bedroom: 4 Full Bath: 2 Half Bath: 1 1630 Sq. Ft.	$309,900

	8564 Black Star Circle Columbia, MD 21045 TourID: 435990	HUGE 3 FINISHED LEVEL TOWN HOME AT OUTSTANDING PRICE! Bedroom: 3 Full Bath: 2 Half Bath: 2 1655 Sq. Ft.	$307,500

	7675 Coachlight Lane Ellicott City, MD 21043 TourID: 347146	Remodeled 3 level home in Ellicott City! Bedroom: 3 Full Bath: 2 Half Bath: 0 Sq. Ft.	$300,000

	6394 Ducketts Lane Elkridge, MD 21075 TourID: 441212	REMODELED ALL BRICK END UNIT Bedroom: 3 Full Bath: 1 Half Bath: 2 1620 Sq. Ft.	$268,000

	7948-A Mayfair Circle Ellicott City, MD 21043 TourID: 459366	AMAZING 2 LEVEL TOP FLOOR MODERN MASTERPIECE! Bedroom: 3 Full Bath: 2 Half Bath: 0 Sq. Ft.	$259,900

	6723 Second Morning Court Columbia, MD 21045 TourID: 0	GREAT BUY! Bedroom: 2 Full Bath: 1 Half Bath: 1680 Sq. Ft.	$245,000

	7648 Stony Creek Lane Ellicott City, MD 21043 TourID: 453583	UPDATED LUXURY CONDO OVERLOOKS OPEN SPACE! Bedroom: 2 Full Bath: 2 Half Bath: 1010 Sq. Ft.	$245,000

	941 Olmstead Rd Pikesville, MD 21208 TourID: 441717	UPDATED CAPE COD SINGLE FAMILY IN SOUGH AFTER SUDBROOK PARK! Bedroom: 4 Full Bath: 1 Half Bath: 0 2063 Sq. Ft.	$225,000

	7637 Stony Creek Lane Ellicott City, MD 21043 TourID: 472942	OUTSTANDING 2 BEDROOM, 2 BATH CONDO IN SOUGHT AFTER WOODLAND VILLAGE! Bedroom: 2 Full Bath: 2 Half Bath: 0 Sq. Ft.	$225,000

	5484 Cedar Lane #B1 Columbia, MD 21044 TourID: 427239	REMODELED MID-LEVEL CONDO IN THE HEART OF COLUMBIA! Bedroom: 2 Full Bath: 1 Half Bath: 1 0 Sq. Ft.	$214,900

	6087 Majors Lane #11 Columbia, MD 21045 TourID: 0	OWN A HOME AT A GREAT PRICE! Bedroom: 3 Full Bath: 1 Half Bath: 1076 Sq. Ft.	$169,900

	6073 Majors Lane #1 Columbia, MD 21045 TourID: 0	AWESOME PRICE!!! Bedroom: 1 Full Bath: 1 Half Bath: 814 Sq. Ft.	$155,000

	5907 Tamar Drive #2 Columbia, MD 21045 TourID: 0	MOVE IN READY! Bedroom: 1 Full Bath: 1 Half Bath: 734 Sq. Ft.	$153,000

	5920 Great Star Drive #305 Clarksville, MD 21029 TourID: 0	2 Bedroom, 2 Bath w/Large Den For Rent! Bedroom: 2 Full Bath: 2 Half Bath: 1500 Sq. Ft.	$2,100

Loans in Maryland will NOW require income documentation

Brian Pakulla — 2008-06-07T20:27:00Z

The big news this week is that as of June 1, Maryland Senate Bill 363 went into effect, basically eliminating all lenders from closing any Alt Doc loans (NINA, NO RATIO, STATED Loans) where income has not been documented to show the borrowers can afford the monthly payments. I believe Maryland is the 4th State (West Virginia, Minnesota, Ohio) to pass this type of law. Other States currently have the same bills out for legislative review and vote. What this means is that any loan closing in Maryland must have income documentation in the loan file - pay stubs, W-2s, 1099s, and/or income tax returns, even in cases where the loan program does not require these documents (as many Fannie Mae and Freddie Mac programs with excellent credit do not). If you have clients that are unable to document income, they will not be able to get financing in Maryland, even if the lender has programs available for them.

While the intent of this law is to make sure that buyers are able to afford their homes, there will be some legitimate borrowers (self-employed with significant "paper losses", recently retired, clients in job transitions, etc.) that could be affected. Make sure that your clients are working with a knowledgeable, local lender who addresses these requirements up front so that there are no surprises for you and your buyers and sellers.

As always, I'm available to answer any financing questions that you may have. Feel free to call.

Pat Sheplee
Loan Officer
FNMC \ A Division of National City Bank
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5 new rules for home buyers from Money Magazine

Brian Pakulla — 2008-06-04T13:34:00Z

This was an interesting article written in money magazine. There is a lot of good, sound advice. However, keep in mind there are some homes in this market priced well. This is why it is important to use a good Realtor to identify the well priced homes and good deals.

-Brian Pakulla

5 new rules for home buyers

By Amanda Gengler, Money Magazine

May 27th, 2008

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(Money Magazine) -- There's no telling how long the housing crisis will drag on. Here's what you need to know before you start shopping in a rocky market.

Rule 1: You can't time the bottom

Face it: The house you buy today will more than likely be worth less next year. That could get you thinking about trying to time the bottom. Resist. It's harder to do than you think, and this is the best buyers have had it in two decades, with inventories up and mortgage rates low.

Pace yourself, find the perfect place and drive a hard bargain: Ignore the seller's asking price and bid 10% below what comparable homes are selling for. If the seller balks, move on. Remember that if you're trading up, your home could sit. So sell before you buy.

Real Estate Survival Guide

Rule 2: One reason to buy now - mortgage rates

Homes are plentiful and will remain so, but financing will be getting more expensive. True, the Federal Reserve has slashed interest rates, but fixed mortgages don't directly follow the Fed. They reflect the bond market's expectations about inflation, which remains a concern. The 30-year, now at 6.1%, will likely reach mid-6% by December and 7% in 2009, says Celia Chen of Moody's Economy.com.

That means there could be a penalty for waiting to buy even if prices fall more. Today a $250,000 loan would set you back $1,500 a month. At 7%, a $1,500 payment gets you only a $225,000 mortgage. As for variable-rate loans, the spread between conforming ARMs and fixed loans is too narrow to do you much good.

Rule 3: Another reason to buy - rates on big mortgages

Mortgages in amounts greater than $417,000 - the limit for buying by federally sponsored mortgage agencies - usually run a fifth of a percentage point above conventional products. But investors are shunning jumbos, which now average 7.2% and are unlikely to drop much this year, according to HSH Associates.

Certain jumbo borrowers could get relief, however. A new law allows Freddie Mac and Fannie Mae to buy loans as large as $729,750 in 71 high-priced areas. So far "jumbo conforming" loans average 6.6%. The program has gotten off to a slow start; you'll need to shop around. And unless Congress acts, this bargain will disappear at year-end.

Rule 4: Don't buy cheap; buy good schools

By now you've heard from somebody who knows somebody who got a great deal on a foreclosed property. But when you buy a house, you're also buying into a neighborhood. And foreclosures tend to be bunched in areas where residents and speculators alike took out exotic mortgages to get into homes they subsequently found they couldn't afford. That's not a recipe for stability. Prices and quality of life could both decline further.

Similarly, avoid developments that popped up in the past few years. They too likely have a lot of owners with risky loans and little equity, says Mike Larson of Weiss Research. Instead, go for areas with highly rated schools. They generally fare better during downturns, and that pattern is holding today, according to a recent study by real estate site Trulia.com.

Rule 5: Make sure your agent has your interest at heart

The real estate game has a built-in conflict of interest, since the listing agent and your agent both get paid by the seller. And these days more sellers are offering extra cash to buyer's agents.

So make sure you're not being steered to a house that's better for your agent than for you. Agree up front on his commission (typically 3%) and that any extra payments will go to you, says Jon Boyd, past president of a buyer's agent trade group.