New Property Listing in Abingdon, MD

  

Here's your chance to buy a well maintained home for a great price. This home is short sale listing needing bank approval. This town home has it all. Fenced yard, huge deck, granite kitchen counters and more.





Bright, natural light flood large, open rooms in this ready to own Townhouse in Constant Friendship. 3 bedrooms, 2 1/2 baths and fully finished basement make this home an easy choice. Updated kitchen appliances, a full width front porch and ceiling fans throughout further enhance the value of this "bargain".

Constant Friendship is a convenient community located in Abingdon, Maryland. Situated close to I-95, via route 24 in Harford County, Constant Friendship offers quick access to shopping, schools, recreation and entertainment.

Click here for a full, up to date list of Listed Properties in Constant Friendship, Harford County.

For more info on this home, call Tim Montoya @ 443-463-3592.

Visit www.allhomes4me.com for full access to all listed properties and information about buying and selling real estate.

allhomes4me.com Harford County Real Estate

Pit bull ruling and real estate. Any connection?

    As most of the country has heard, the Maryland Court of Special Appeals has made a Pit bull ruling. They have ruled that Pit bulls and Pit bull-mixes are inherently dangerous dogs. Not only has this ruling upset Pit bull owners, but the court also decided that liability is automatically heaped upon the landlord of a property that has rented to a owner of a Pit bull/Pit bull-mix, if the landlord knew the dog was of such a breed/mix before hand.





   So how does this relate to property owners and real estate? You tell me. What can you see happening on the heels of this ruling, if it sticks?



  I can see clear and dangerous consequences coming from this ruling that could possibly effect buyers, sellers and real estate agents. Will the courts rule that a home owner has to disclose that there are Pit bulls in their neighborhood? Should a real estate agent know this information? How about Landlord renting to gun owners? Is the landlord responsible if a tenant owns a gun and shoots someone?



   I don't like this ruling and hope that it gets overturned. I think it is very narrow minded and has the potential to other broad sweeping rulings to further hamper our freedoms in this country. Just because you don't own a Pit bull/Pit bull mix, doesn't mean this won't have an impact on your life

Visit my website for more real estate news or information on buying or selling homes.

I've been saying this all along!

   Looks like there are some stats to back what I had discussed with many people over the years. Trying to avoid the inevitable does nothing buy delay it. This article outlines the delay in foreclosures in the Maryland real estate market. Home owners who fall behind on their mortgage were give the opportunity to try and save their home one last time, but in turn the state of Maryland charged banks $300 to file a foreclosure notice.  What? Why is the state benefiting from the misfortune of others? Penalizing the banks and profiting from someones struggles doesn't seem to me to be a good way to help out the struggling in a time of need. All this did was buy some home owners a little extra time, which they probably had anyway because of the drawn out foreclosure process, and gave them a false sense of hope. Here's a quote from the article: "In nine and a half out of 10 cases, modifications don't work and the homes are eventually foreclosed on," said Vince Caropreso, a Maryland real estate agent and certified distressed property expert. "Some consumers just use it as a way to stay a little bit longer [in their homes]."

   What do you think about this? Looks like the state had this policy backfire on them. I beleive the real alternative to foreclosure is a short sale. Banks are more than happy to assist you in selling your home before they have to repossess it. They don't want your home. They would rather forgive a portion of the mortgage debt than to be left holding the whole bag. There are exceptions to this rule and government backed loans or Private Mortgage Insurance can throw this off a bit, but in genreal the banks do not want your home.

   The bottom line is, whether in nature of the business world, don't mess with the natural process of things. It is unfortunate to see people struggle, but it is all part of the natural business cycle and there is something we can learn from others experiences.

For more information on short sales, avoiding foreclosure or available homes, visit my website at www.allhomes4me.com or like my facebook page.

Maryland offers tax relief on debt forgiveness

Maryland offers tax relief on debt forgiveness

  I just wanted to keep everyone updated on anything new. Looks like Maryland will make sure that home owners are not further penalized by selling their home short through the end of 2013. I understand the rationale of the reason a tax may be considered, but I don't agree with it. At least they realize to need to alleviate the burned on the residents of Maryland. Let's hope that the Federal government extends their part of the deal.


For this and more real estate news on homes sales, property listings or other current real estate info, visit www.allhomes4me.com.

When will be a good time to begin investing in real estate again? Part 2 of 2

    Last week I discussed the possibility of purchasing investment properties with the intent of "flipping" them, or improving them and selling them in a short period of time. This week I want to discuss the goal of purchasing a property for the purpose of holding it for an extended period of time and renting it. This option can be a very lucrative adventure. If done properly, your rental income can raise your net worth and cash flow substantially. This article on Time Magazine's website suggested that all indications point to the beginning of a housing recovery. Interest rates are at "once-in-a-lifetime" lows. For investors, there are plenty of distressed(foreclosure and short sale) properties available at prices well below their improved values.

   Not only are home prices down and interest rates low, but the guidelines used to qualify buyers are still rather strict. Higher credit scores and higher down payments are required, making it difficult to impossible for some people to get a mortgage and buy. What do people in this place do? They RENT! This makes holding onto a property to rent it much more attractive. In my market, Baltimore/Harford County, MD, rental properties are moving quicker than resale properties and rent prices are rising. This creates the perfect environment to purchase a property inexpensively, fix it up and rent it.


   There are things to consider when taking this approach to real estate investment. The approach to rehabbing or fixing up the property has to be looked at differently. You cannot put the finest of all materials into a home that is going to rented out. What if you get tenants that don't call you when they notice a leak under the kitchen sink and now 2 months later you have a ruined kitchen floor? What happens when the AC unit stops blowing cold air and the tenant thinks it's a good idea to put in a window unit and screws/duct tapes it into your beautiful trim work around the window? How about the tenant with the "very well behaved" St. Bernard? All of these things are very realistic possibilities when renting. When pursuing real estate investing for rental purposes, you have to look at all aspects. The type of materials you use and the amount of capital you put into a rental property has to be equivalent to the amount of the monthly rental amount. Don't install granite counters and Brazilian cherry floors into a property bringing in $500/month in rent. Sometimes, those rental a very inexpensive property don't take the best care of them. There are exceptions, but you have to consider all scenarios.
www.facebook.com/timmontoyarealtor

   I found this calculator which allows you to plug in all of your info to see what your return on your rental could be. One thing not available to calculate is the toll being a landlord can take. It can be a very rewarding job, but it can also be very frustrating.


   As with all investments, contact a tax professional to check on how an increase in your income will effect your tax liability. For more info on rentals or a list of available properties, visit my website at www.allhomes4me.com

   Also, for up to date real estate news and properties, like my facebook page.

When will be a good time to begin investing in real estate again? Part 1 of 2

   I've talked to several agents, friends and clients and they have either asked this questions or have discussed it with others. So, when will be a safe/good time to begin investing in real estate again? The answer to this depends on your idea of investing and how much capital you have. Do you plan to rent the property and hold onto it? Do you plan to rehab the property and sell it for a quick profit?  I will first discuss the goal of buying with a quick sale, or "flip" in mind.

                                              "Flipping"

   When investing to "flip" a home, or sell it quickly after repairs/improvements are made, the first thing to do is to look at the sales statistics in the neighborhood or area you are interested in. The stats to the left are the April sales statistics for the Baltimore Metro area. The most important stats are obviously "Avg Sold Price", but also the "Avg Days on Market" and "Avg Sold to Orig List Ratio". The sales price for the homes in the area, comparable(comps), will tell you what the upper and lower prices homes are selling for. You must determine what budget you have for purchasing the home, improving it, carrying it while you attempt to sell it and closing costs(Realtor fees, transfer and recordation taxes and any seller concessions). Once you figure your budget You are now ready to determine a good purchase price. THIS IS WHERE YOUR PROFIT IS MADE! If you pay too much for a property, your profit will be where you lose. Purchasing a home at the right price is the most important part of real estate investing. If you buy a home at an appropriate price, you will have two things on your side:

1. You will have flex room built into the transaction to address surprises in the construction/rehab process.
2. You will have $$$ available to accommodate a buyer's request for cash contributions towards their closing costs or $$$ available for a price adjustment, if needed. 

   So, you made a smart purchase and now you're ready to rip out some walls and slap down some granite counters. Hold on there, cowboy. Let's make sure you are choosing the right improvements and upgrades. Consult your Realtor to find out how many baths the surrounding homes have, what types of kitchens are int he houses around you, how many bedrooms the other homes have and do they have a finished basement. You'll want to choose things that will set your property apart from the others in the area. If everyone else has 1 1/2 baths, then turn the 1/2 bath you have into a full bath with a shower. If the other kitchens are small "galley" type kitchens, then open up a wall and combine the kitchen and dining room to make an open feeling and better flow. If you indeed did buy the property at a good price, then these slight improvements should be within budget and will net you more dollars and possibly a quicker sale when the property is listed.


   Another area that lots of investors forget to take into account are the taxes due from any profit. Make sure to consult a tax professional to see how you will report your earnings and what will be the ramifications of your flip. Take the info you gain from your research into account when calculating your return on the transaction.

   Here is a newly released article by CNN Money. It actually gives some credit to my conclusion.

   Well, to answer the question as to "When will be a good time to invest in real estate again?" , actually, for a flip project, now is a very good time. On a scale of 1-10, I would give the current market an 8 for flipping. Labor costs are down, property prices are down and there is a lack of good, well priced homes ready for occupancy. A lot of the homes available are in need of work due to the fact that they are foreclosures, short sales or the owners have not had the means to keep up with them.


   Here is a USA Today article from a few years ago, but it is still very relevant.

   INVESTORS!!! Here are links to custom search results for properties under $100,000. If anything interests you, give me a call.

• Baltimore City

• Baltimore County

• Harford County

   Next week I will discuss the mentality of investing with the goal of having rental income.

Who are you to believe?

   I am sure everyone is hearing the new of the recovering economy, right? I see articles written on a daily basis stating that "Housing prices on the rise!", or "Housing market rebounding!". So where is all the evidence of the improvement in the housing market? Well, here is just one article that actually gives some statistics. There have been some encouraging signs of a potential improvement, but what constitutes a "recovery"? Are increasing prices the only thing that indicate a recovery? Here is a sample of the performance in Baltimore County. The numbers are encouraging, but like the early season success of the Baltimore Orioles, I am optomistically cautious to say that the clouds are lifting and the sun is once again shining on the real estate market in Maryland.



   If you would like complete statistics for all areas of Maryland, visit my website, www.allhomes4me.com, or follow my Facebook page, www.facebook.com/timmontoyarealtor.

Are Home Inspections Necessary?

     I recently came across this article in the Washington Times regarding home inspections in the DC real estate market. I was not surprised to hear that more and more transactions are dealing with listings being sold "as-is". The majority of foreclosures and short sales are listed as an "as-is" sale, and for good reason. Most banks will not make repairs to a property. They are already losing money and normally the buyer is getting the property far below market value. There are exceptions to this, so it is always worth a try to get the bank to commit funds for a repair or to have the issue corrected.

     As far as the title of this blog is concerned, I have never and will never recommend to my clients to forgo a property inspection. I think to do so would be dangerous for me as a professional and may lead someone to have a false sense of security in a property that may or may not be founded.


     I think nothing bad can come from a licensed home inspector examining a home you are preparing to purchase, even new construction! I'm not saying that an inspector will find every last defect in a property or that he can see through walls, but a second or third set of eyes can always be beneficial. Also, an inspection report can come in handy if you need to renegotiate some aspects of the purchase or use it as an excuse to back out of the deal.


    What do you think? Have you purchased a home with or without getting an inspection? Would you do it differently the next time? Visit my website, www.allhomes4me.com, for buyer and seller tips and access to my resource of recommended inspectors and other professionals.

Belcamp Townhouse for Sale!

Affordable, move in condition and updated. Can I get you anything else? Oh, I forgot, this is also an end-of-group unit. Price to impress and sell quick. Don't wait. Call Tim @443-463-3592 to make an appointment today!


www.1245independencect.com

Visit www.allhomes4me.com for an all inclusive property search and information on many more listings.

Also, visit our Facebook page for up to date real estate information.

Do I qualify for a short sale?

 

If you are like many home owners in the U.S., your home has lost thousands of dollars in value and with it, some of your equity. Well, what if you want or need to sell your home and you now owe more than what a sale would net you or the bank? The answer to this is to attempt a short sale.

   In short, no pun intended, a short sale occurs when an owner sells a property and the net proceeds of the sale do not satisfy the note on the property. I would say that short sales make up roughly 40% of the home sales in Harford County during the past 12 months. How do you complete a short sale? What is the short sale process? These are very common questions and can have both direct and simple answers, but sometimes can have very difficult and drawn out resolutions. There are several lenders in the U.S. who have borrowers asking for short sales and each lender can have a slightly different process.

   So what is the process? Well, the first step of any home owner looking at the potential of needing a short sale approval is to contact a licensed and experience short sale real estate agent. An agent experienced with successfully completing short sales is your most important resource. Look for either a Short sale and Foreclosure Resource (SFR) agent or a Certified Distressed Property Expert (CDPE). I recommend the later certification because it is a more thorough and intensive certification process and offers an ongoing resource to the agent, which can aid the agent in staying up to date with the changing guidelines. Make sure the agent you choose is has completed several short sales and you will not be this agent's guinea pig seller.

   The agent you choose will interview you and determine your chances of qualifying for a short sale and will also show you information which will allow you both to determine the market value of your home. During this process, ignore the difference in your homes current value and your loan balance. The disparity of these numbers does not impact the approach to selling your home. Your Realtor will also ask you questions about you reason for selling. This part of the process is usually difficult for you, the home owner, because you may be asked to rehash the events leading to your financial hardship. Even though this may or may not be difficult for you, it is one of the more important steps because the agent needs to insure that there is a good reason or a need to attempt a short sale. Banks typically require some type of hardship in order to agree to allow a short sale. This hardship may be a loss of employment, under employment, medical emergencies or complications resulting in loss of job or delinquency. A relocation, which if not agreed to, may result in loss of job or maybe the impending layoff from your job. You do not have to be behind on payments or have a current financial hardship, but the proof of a future hardship can be sufficient.

   There are several situations where a short sale is allowed and the banks will certainly consider any unique situation that you may not think qualify, so don't hesitate to contact a Realtor and investigate your options.

   The second step to getting a short sale approved is to list and market your home. Your agent will recommend the list price to you. This price will typically be slightly lower than the actual market value. The reason for this is that there has to be a concession made for the "defect" in your property, or more accurately, the "defect" in the process for a buyer to purchase your property. The short sale process can be a very long and drawn out process. With this in mind, you have to entice buyers to commit to such a long and emotionally draining purchase. I have had the privilege of participating in short sales that were completed in 30 days or less. I have also been cursed with transactions that have taken over 12 months to complete! Although the time it takes to complete a short sale can vary greatly, the average time is 90-120 days.

   The third step, in the process of selling your home utilizing the short sale option, is to accept a buyer's offer. This is, to me, the easiest of all of the steps involved. Keep in mind when reviewing offers, that you want to insure that the buyer is aware of the fact that you are applying for a short sale. Your agent should be able to point out any aspects of the offer that may not allow for a short sale. The buyer should be made aware that the lender may or may not approve the proposed sale price and all the other financial aspects of the buyers offer. I have seen banks remove any seller contributions towards buyer's closing costs, ask for an increase in the sales price and even reduce the real estate commission. Just make all parties involved aware that the bank has the final say, and to be patient and be flexible. Along with getting a signed contract and estimated HUD-1 document, the bank will require some or all of the following documents from you, the seller:

          -Last two (2) years federal tax returns

          -Two (2) most recent bank statements

          -Two (2) most recent payroll stubs

          -A complete financial statement outlining your monthly expenses

          -A signed and dated hardship statement/letter

An experienced short sale real estate agent can easily assist you in composing the financial statement and hardship letter. These items are non-negotiable. Every bank requires these docs and some require more. This is the most important part of the process. Neglecting to submit one or several of these documents can lead to delays and ultimately to a buyer walking away or a bank closing a file.

   The final step in completing a short sale is to complete the purchase side of the deal. The buyer will follow through with their promise to apply and complete their financing, conduct their inspections, if any, and have a title company research the history of the property and order a survey. This step usually consumes the final 30-40 days of the transaction, which is typical.

   All in all, a short sale is not a difficult thing to complete as long as all parties are educated on the process, informed of any changes and updates and cooperate with all parties involved to work to a resolution to any hiccups that may occur. 

   If you think a short sale is right for you, give me a call and I will be happy to walk you through the process and answer any questions you may have.

Tim Montoya

443-463-3592 mobile

www.allhomes4me.com