Southern Maryland Real Estate Blog

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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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

Charles County Real Estate Blog
SOMD Home Search
Southern Maryland Custom Homes & Land

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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
SOMD Home Search
Southern Maryland Custom Homes & Land

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Interest Rates Have Plummeted, Homebuyers Have HUGE Incentives!!!

Mortgage rates have dropped recently due to recent fed actions, and it's important to look at where they sit.  The national average is just over 5%, and the local average for Maryland is closer to 4.85% right now!  The local rates have dropped .2% today, and with rates hovering at the lowest levels the region has seen since 1965, this is a great time to be getting into the market!

Current Mortgage Rates Get this widget See local rates

First time home buyers have additional incentive with the $8,000 tax credit the government is currently offering, and there are some great deals to be had on the foreclosures out there!  If you've been sitting on the fence waiting for opportunity to knock, here it is!  Please give me a call if you're considering buying a home, and I will make sure you take advantage of all the great incentives out there right now!

~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
SOMD Home Search
Southern Maryland Custom Homes & Land

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8,000 reasons to buy a home in Southern Maryland this year

The federal government is really pushing home buying incentives right now!  It was recently announced that first time home buyers would be eligible for an $8,000 tax credit if they purchased a home in 2009.

 How it Works:

Any first-time home buyer who purchases a home between January 1, 2009 and November 30 , 2009 may be eligible for a tax credit of $8,000 or 10% of the purchase price, whichever is lower.  This is considered a TAX CREDIT, not a TAX DEDUCTION

Tax Credit vs. Tax Deduction:

Last year you may recall part of the Bush Administration stimulus package included a $7,500 tax deduction.  The credit REPLACES the deduction.  The difference is that the deduction had to be re-payed, interest free, over 15 years.  The credit MAY not need to be repaid, but I'll get to that in a moment.

Eligibility:

 In order to qualify, here are the criteria:

1. You must be a first-time home buyer.
2. You must make less that $75,000 on your tax returns, or less that $150,000 on a married joint filing.
3. The credit is for 10% of the purchase price, UP TO $8,000.
4. You cannot buy the home from a close relative. (sibling, parent, grandparent, spouse, etc.)
5. The home MUST be your primary residence for the first year you own it.
6. You MAY NOT resell the home for 3 years.  If you do, you are required to re-pay the credit.
7. If you are married, BOTH SPOUSES must be considered first-time home buyers.
8. If you are a non-resident alien, you may NOT qualify.
9. The purchase date must be between January 1, 2009 and November 30 , 2009.

When Can You Claim The Credit?

The $8,000 tax credit can be claimed for your 2008 tax year (filed by April 15th 2009), 2008 amended return or 2009 tax year.

Sources:

HR 1, American Recovery and Reinvestment Act

HR 3221: Housing Economic and Recovery Act of 2008

~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
SOMD Home Search
Southern Maryland Custom Homes & Land

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New Website Launch: www.SOMDLand.com!

 If you're looking to buy land in Southern Maryland, you might just want to check out SOMDLand.com.  The website has just launched, and it's designed to help people find both raw land and ready-to-build lots in Southern Maryland.

One of the nice features is the interactive google map search for lots and parcels available in Southern Maryland.  The site is also designed to help people understand how to go about building a custom home in Southern Maryland/Charles County region, and all of the resources to do so will be available there!  Check it out and let me know what you think!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Charles County Real Estate Blog- Market News and Real Estate info, specifically for Southern Maryland!

GetEmSold.com- Sell your home or find your next home here!

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Charles County Foreclosures January 2009 Report

    Here's a quick look at the local Charles County Foreclosure real estate market.  From Waldorf to Newburg, if you're looking for a foreclosure in Charles County, MD, you need to talk to Team Benya!

How many foreclosures are available for sale in Charles County right now?

71 (See a free list of them here!) This list is sent out free every week to all of clients.  Ask to be added today by calling or emailing us!

How many foreclosures in Charles County are currently under contract?

29

How many foreclosures in Charles County have banks sold in the last year?

169 (See a free list here!)

 What is the Cheapest Foreclosure in Charles County right now?

$43,900- 32 Delta Place #32 Indian Head, MD-  A duplex in the Potomac Heights Subdivision, recently reduced $8,000!  These homes are Co-ops, which is similar to purchasing a Condo.  Although the prices are attractive, they have a Co-op fee  of more than $250/mo, which has to be factored in when purchasing a home there.

What is the most expensive foreclosure in Charles County right now?

$659,900- 8715 Hill Spring Drive La Plata, MD- This home is HUGE, sitting on 7 acres of land AND has an in-ground swimming pool!

Looking to buy a bargain?  Give Jonathan a call and put his team of foreclosure experts to work for you!  With Team Benya on your side, you can find out about fantastic foreclosure bargains BEFORE they even hit the market!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Charles County Real Estate Blog

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Time to buy according to the New York Times

The New York Times published an article Friday stating that now is the time for first time home-buyers to take advantage of the market.  It's an interesting read, but the cliff notes version of it is that interest rates are below 5.5% right now, and it's possible that they may be pushed down to as low as 4.5% in the very near future.

The market is a double edged sword:  if you are only going to be in the area for 2-4 years. you should probably be renting.  However, if you're a home-buyer looking to live in the area for 5+ years, the odds of seeing a fixed interest rate of 4.5% rate again are pretty slim.  Quite simply, it's a monumental rate drop!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Charles County Real Estate Blog

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A silver lining in a bleak market

Here's a little bit of good news about the market for all potential buyers and sellers!  Home loan rates have fallen by half a point in the last week!  This means that it is possible to get a home loan for less than 5.5%, which is great news for potential home buyers, and will hopefully increase sales!  If you're in the market right now you need to be talking to your lender ASAP!  Don't let a drop in rates like this to pass you by!

CNBC Video link: http://www.cnbc.com/id/15840232?video=946846265

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Charles County Real Estate Blog

Join The SOMD RE Blog Community and get free news and updates via email!