Southern Maryland Real Estate Blog

PG County, Maryland Foreclsoures with no closing or down payment!?!

As you may have heard, HUD's Neighborhood Stabilization Program (NSP), has been implemented in Prince George's County, Maryland, and the incentives for buying a foreclosure in PG County are STAGGERING!

The goal of the program is to reduce the number of vacant homes in neighborhoods troubled by foreclosures. Through a government funded program (Thanks to the large economic stimulus package), PG County has been allocated $10,883,234 for a program called the "Down Payment Closing Cost Assistance Program" (DPCCA).

If you're looking to buy a foreclosure in PG County, you may qualify!  For a detailed list of qualification requirements, please click here:  Down Payment Assistance for First Time Home Buyers in PG County.  This is going to allow you to purchase your first home with between $1,000-2,000 down, and no closing costs or additional down payment required!  That means some people are actually going to be getting their first home for almost nothing down, AND they can qualify for the $8,000 first time home buyer credit as well!

Keep in mind that this program is not designed to get people loans with serious credit issues.  Your credit and debt-to-income (DTI) ratio's need to allow you to qualify for a traditional mortgage.  This program has been designed for people with good credit, but limited savings.

Will You Need to Pay Back the DPCCA?

You may be required to pay back some or all of the DPCCA Money you receive, depending on how long you live in the home.  The money is treated like an interest free loan, that does not need to be paid back until you sell your home.  Here's the rundown on how much you may owe at settlement:

If you live in the home for:                            % of amount due is:

0-3 years                                                                        100%

3-6 years                                                                         50%

6-9 years                                                                         30%

10+ years                                                                         0%

The longer you live in the house, the more money you save!  When you figure that this program can save you anywhere between $6,000-$20,000, it makes one heck of an argument for buying a foreclosed home!

Have Questions, or Want to Know More?

Please feel free to give me a call on my direct line at (301)-653-8116 and I'll be more than happy to assist you with taking advantage of this great program!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

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Down Payment Assistance for First Time Home Buyers in PG County!

If you're looking to purchase a foreclosure in PG County and you're a first time home buyer, there's good news afoot!  HUD has approved a new program to provide down payment assistance for low income families in PG county ONLY!

The Neighborhood Stabilization Program (NSP) and the Down Payment Closing Cost Assistance Program (DPCCA) have released their guidelines and trained a select group of lenders to be able to provide this program to potential homeowners!

How Does It Work?

Step 1:  Find out if you qualify!  Here's the eligibility requirements:

1. Must be 18 years or older
2. Must be a first time home buyer, or must not have owned anywhere for the last 3 years
3. Home being purchased MUST be primary residence
4. Annual household income must not exceed program limits (less than $86,600 for 1 person, or $99,000 for two people, if you have children, the limit increases.  An income calculator for determining eligibility can be found at https://webapps1.hud.gov/hfc/calculator/)
5. Must qualify for a loan from a participating lender (There are currently 37 approved lenders, give me a call for a complete list)
6. Must contribute a minimum amount of cash towards purchase (Between $1,000-$2,000)
7. Must have ratified contract of sale on a vacant foreclosed property (Need help finding that home?  That's where a spiffy Realtor like myself comes into play!)
8. Buyer must also attend an 8 hour minimum housing counseling class provided by HUD and receive a certificate of completion. (Class is free, and there's already a waiting list, so hop to it!)

What Does DPCCA Do?

DPCCA will provide up to $20,000 in closing cost assistance on an interest free loan, with an interest rate of 0%, that is payable only when you go to move!  The longer you live in the property, the less you are  required to repay!  For example, if you live in the home for 3 years, you're required to repay 100%.  If you live in the house for 4-6 years, the balance due is 50%.  For 6-9 years, the balance is 30%, and if you live in the home 10+ years, you're not required to repay the DPCCA at all!

Essentially, this program is designed to allow low-income families to purchase foreclosed properties with minimal downpayment.  The will help reduce the foreclosure blight that has troubled PG County, and reduce the number of vacant homes sitting in the area.  This program can be used in combination with the $8,000 first time homebuyer tax credit, which means that it's possible to buy a vacant foreclosure for as little as $1,000 down, all closing paid, with 3.5% downpayment paid by DPCCA, AND $8,000 in tax credit provided by the federal government!  The incentives to buy a foreclosure in PG County just keep growing!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

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Charles County Real Estate Outlook 6/09

 

There's good news in the Southern Maryland real estate market!  While we're not out of the downturn just yet, recent changes in the market are positively affecting home sales!  Here's what the Charles County real estate market looks like:

May 2009

                                                         2009                  2008             %Change

Total Sold Dollar Volume:					$ 33,466,939					$ 33,607,138						- 0.42 %
Average Sold Price:					$ 281,235					$ 317,048						- 11.30 %
Median Sold Price:					$ 276,000					$ 327,450						- 15.71 %
Total Units Sold:					119					106						12.26 %
Average Days on Market:					163					132						23.48 %
Average List Price for Solds:					$ 309,264					$ 344,640						- 10.26 %
Avg Sale Price as a percentage of Avg List Price:					90.94 %					91.99 %

What Does This Mean?

Unfortunately, prices have fallen from where they were 12 months ago.  A quick look at the sales statistics from April shows us some promising information, however:

April 2009

                                                       2009                2008            %Change

Total Sold Dollar Volume:				$ 22,976,649				$ 34,190,350				- 32.80 %
Average Sold Price:				$ 267,170				$ 299,915				- 10.92 %
Median Sold Price:				$ 236,750				$ 285,500				- 17.08 %
Total Units Sold:				86				114				- 24.56 %
Average Days on Market:				151				134				12.69 %
Average List Price for Solds:				$ 303,894				$ 326,988				- 7.06 %
Avg Sale Price as a percentage of Avg List Price:				87.92 %				91.72 %

The average home sales price for April 2009 was $267,170.  In may, that number was $281,235, or an increase of just over 5% in sales price!  Not only that, but there were 86 homes sold in April, and 119 homes sold in May.  That's a 28% increase in home sales over the last month!

So we know that home sales are up, sales prices are starting to rise, but why is the market starting to look a little brighter?  Well, part of it is that prices and affordability are enticing more buyers.  That, along with 45 year lows on interest rates, as well as the $8,000 new home tax incentive, means that first time buyers are seeing value in the soft market.

It's too early to say turnaround, but home sellers are seeing some encouraging information here!  Let's hope that this is the start of a broader economic recovery!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

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What happens if appliances don't convey?

I received a question today regarding conveyance in the purchase of a resale home, and thought it might be good to share:

Hello TeamBenya,

I hope you don't mind me direct messaging a question but I didn't know if I'd get answers I was looking for from non Realtors.

My question is this:

A listing agent fills out a MLS sheet on a property and list all items on it to be included in the sale. If something is listed on there at the time of an accepted offer(example: dishwasher , stove etc) and the items are not there when you get the house because previous owners made clear to listing agent said items are not included in the sale.

Who is responsible for the items because they were suppose to be included in the sale ?

I know some states make the Real Estate that listed the house responsible for what is listed on the MLS . I was just wondering if Maryland follows the same guide lines or not.

We are in the process of buying a house in Silver Spring (short sale) and there are some things not in the house that was stated in the MLS. If our offer is accepted I just want to know what rights I may or may not have. Dont worry if theres only one or two things off the list I'm not going to let it ruin the transaction , but if all the appliances are gone or something to that affect I will be upset then. Hope I'm not confusing you , but anyway I do look forward to your reply.

Thanks,
bunky

This is an interesting situation, please understand that I am not a lawyer, nor do I pretend to give legal advise/counsel.  When purchasing a resale home through real estate in the state of Maryland, an MLS listing has a little disclaimer on it that says information is deemed to be "accurate, but not correct".  It's a way to limit liability.  How far does that go?  I'm not sure, I've never been involved in litigation over inaccurate listing information, and hopefully I never will be.

The fact is that errors are made, and it's not clear if this is an error or not.  Here's why:  On page 2/11 of a MAR residential contract of sale, there should be a list of inclusions/exclusions that convey with the property.  Are they listed on that form?  If not, then there is indication they were not included in the sale.

If the agent was informed in writing that the items did not convey, included them in the MLS listing anyways, and you were not informed prior to time of contract, you may have reason to file a complaint.

Be aware that certain loans, such as FHA and VA programs, may require certain appliances to be in the home and in working order prior to settlement.  If, for example, the stove is required by the lender, but not part of the sale, then there either needs to be a stove in the home at time of settlement.  Who purchases and installs that stove is negotiable, but if a lender requires it, then not having it could be a problem.

Is the agent responsible for the error?  Quite simply, I'm not qualified to make that judgement.  I would suggest contacting the local real estate board that governs your region and speak to them.  You may have grounds to file a grievance for mis-listing the property, and mediation to resolve the dispute may be necessary.  Ultimately, you should talk to your realtor and/or lawyer about your options and see what the best course of action may be.

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

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Straight Talk on Square Footage

Unfortunately, searching for homes by square footage is not realistic in this region. 

Possible?  Yes. 

Realistic?  No. 

If you were to search with square footage as a criteria, you would be eliminating literally hundreds of listings on the MLS that don't have the S.F. listed.  The problem is that the square footage of a home is frequently inconsistent in local tax records, and many Realtors will not include the information in their listings unless they are certain of the square footage of the home.

Why the lack of information?  For some, it's a matter of laziness, but for most Realtors it is a concern of liability.  You see, even though residential listings have a disclaimer that says listings are deemed to be "accurate, but not correct", if square footage were incorrectly listed, a lawsuit may be possible for fraud/negligence.

Since Tax Records can be incorrect, unless the agent measures room by room on their own, they don't have a reliable source for the s.f. of a home.

Ultimately, it begs the question of should agents be required to list square footage, and should they be liable if the information is inaccurate? 

Questions about Searching for homes by Square Footage? Give me a call!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

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HAP Guidelines Released- Military Homeowners finally have relief via DoD

The Homeowners Assistance Program (HAP) has released the DoD guidelines for Wounded Warriors, Warriors in Transition, and PCS moves.  The government has established a $555 million fund to aid military personnel who are unable to sell their home due to economic constraints.

This program, which covers up to 90% of the original purchase price of the home, is designed to help service members pinched by deflating home values. A copy of the DoD guidelines can be found here:

Download DOD_Guidance

I've already listed several homes that fall under this program, and although it is not ideal, any relief for our veterans is sorely needed and appreciated!  In order to apply, please visit the HAP website and download the eligibility and application guidelines to enroll in the program!

Related Posts:

Military Relocation Relief is expanding

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

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Things to think about when buying a Foreclosure in Southern Maryland

Foreclosures are a great opportunity to get a home at a bargain price in Southern Maryland.  Home buyers need to be wary, however, because there are several easy to miss pitfalls and risks associated with buying a foreclosure.

    1.    Condition Dictates Value

This means that the condition of the home will affect what the home actually sells for.  If the house is in shoddy shape, the final sales price will affect that.  Look at comps when you go to place an offer and adjust your offering price accordingly.

    2.    Banks Aren't Giving Houses Away

If it looks to good to be true, it probably is.  When you find a listing for home priced significantly below the surrounding market or neighborhood, there is always a reason as to why.  The concept of buying a livable home in Charles County or Southern Maryland for less that $10,000 is simply not true.  You can find some excellent bargains, but don't expect to pay $200k for a home that is actually worth $600k.

    3.    Home Inspections are Critical

Think about it like this:  The foreclosure process in Maryland can take a year or more.  That's a full year where the homeowner has been unable to pay the mortgage.  If you are behind on payments and know that foreclosure is eminent, ZERO incentive to pay for upkeep and maintenance on the property.  After the foreclosure, the property then sits vacant and can develop issues related to it's abandonment.  Always hire an inspector to go over the property with a critical eye.

    4.    Great Deals Don't Last Long

You're not the only person out shopping for a home, and if a value priced property hits the market, you can bet there are lots of appointments be made to see it.  Make sure that your financing is in order before you start looking.  The last thing you want is to find the perfect house and then lose out to someone else who was able to get their offer in first.

    5.    Bank Owned (REO) Properties Are Sometimes "Under Listed"

This stinks, but banks have been known to list properties way below market value on purpose.  They may list a home for $200k, Knowing it's worth $275k, just to get a bidding war started between multiple offers.  They see it as a way to get the highest price possible, I see it as intentionally deceptive.  Agents occasionally refer to homes like this as "Liar Listings". 

How Do You Protect Yourself?

Get a buyers agent to represent you.  The listing agent on a foreclosure works for the bank, not you, and their job is to get the property sold while protecting their clients bottom line.  A buyers agent works at no cost to you, and their job is to help you make informed decisions and craft an offer that will save you the most money possible. 

Speak to your buyers agent about the best way to prepare yourself for buying a foreclosure.  They will be able to help you get in touch with a loan officer, ensure the property you buy will conform to your loan guidelines, and help you hire a home inspector who knows what to look for in foreclosures, among other things.

With the right people on your side,buying a foreclosure is as easy as buying any other home, and the value and savings can be tremendous!

LINK: Foreclosure List for Charles County, MD as of 5/20/2009  Need an Updated List?

Questions about buying a Foreclosure? Give me a call!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

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$8,000 Tax Credit for first time home buyers can be used as down payment!

If you're looking to buy your first home but can't afford the down payment, there may be help out there!

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment, provided you are using personal funds for the first 3.5% of the down payment.

Donovan's statement came in an address to several thousand Realtors® gathered at The Real Estate Summit: Advancing the U.S. Economy, a special daylong session at the Realtors® Midyear Legislative Meetings & Trade Expo in Washington D.C.

If you've been looking at buying your first home, but the down-payment requirements have kept you from doing so, then this might be your chance to take advantage of a fantastic change in FHA policy.  Feel free to give me a call to find out more information or ask questions about how to take advantage of this program!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

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Bad Photography 101- Is Your Realtor a Lousy Photographer?

A common complaint among home sellers is that photos that are taken to market their home look less than stellar.  I know how to take a good photo, but my brother knows how to take a GREAT photo.  I know my limitations, and I leave the photo taking up to him.

I saw a wonderfully terrible photo in a listing recently, and it reminded me of just how many factors come into play when photographing real estate.  They say a picture is worth a thousand words, and this one says more than that.  It's a perfect example of things to AVOID when marketing a home!

If you're dogged by bad listing photos, give Thomas Benya a call (301-653-1499). He can help you analyze your homes features and stage your property to make the marketing pictures and videos pop!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

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Case in Point: The Importance of Inspections with New Construction

This morning I attended a walk-through in Southern Maryland (Waldorf, to be exact) on new construction for a first time home-buyer of mine that is due to settle this week.  Typically, people do not feel a need to pay for an inspection when they're buying a new home.  The thought is that if the home is "new", then there shouldn't be a need for the extra expense.

 My buyer wanted the assurance that comes with having a professional home inspector go through the property, and it turned into a very wise investment.

So what made it worth hiring a home inspector? 

• For starters, the threshold at the front door was water damaged.  The builder rep offered to have it painted and sealed, but the inspector stated that due to the water damage, it needed to be replaced.  Suddenly the idea of hiring an inspector started to make sense...

• Next, the furnace filter access was blocked by wiring, and was in accessible.  Our inspector, Kevin Curry from Amerispec, caught the issue and stated that the wiring needed to be moved.  Imagine buying a home and finding out a year after-wards that you can't change the filter!

• Third, there was insufficient insulation in the furnace, and there were drafts being created.  This is the sort of issue that only a home inspector would be able to catch, but the work completed by the builder was insufficient.

• In addition, the rear sliding door wouldn't lock, the carpet was cut too short on the sides of the staircase, the kitchen needed a final coat of paint, and there was trim work that was cut too short.

You would think that builders would be a bit more mindful, but the bottom line is that if you as a buyer are paying for new construction, you should not be willing to accept anything less than perfect.

There were issues at the inspection that needed to be addressed, and the builder is perfectly willing to correct them, but without an inspector, there was no way to catch all of the issues at the walk-through.  It's proof that it really pays to have a Realtor and Inspector on your side when buying new construction!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

Charles County Real Estate Blog
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