Direct oceanfront 2 bedroom, 2 full bathroom end unit  condominium that affords you panoramic views up and down the beach.  This property is beautifully decorated with a  wonderful upgraded interior to include; mirrored living area, Plantation Shutters, hurricane shutters, granite kitchen counters, stainless steel appliances, fully tiled entry way and kitchen area, new laminate flooring, all tiled baths and  premium vanities.  It’s listed for sale at $375,000.

View the Photo Property Tour:

This top floor direct oceanfront 1 bedroom, 1 1/2 bath condo has tremendous views both up and down the beach.  It is conveniently located in mid-town Ocean City. Constellation House is a very popular mid-rise masonry building. If you are looking to generate rental income, summer season approximately $11,000 – $14,000.  It is sold fully furnished and is offered for sale at $239,900. One year home warranty included.

Virtual Tour

This is an article from Realty Times that is just so “right on” with their information, I felt compelled to share it in it’s entirety.

It has long been a motto of real estate, and the saying goes, “location, location, location.” It’s what sells a property, they say. But recent times have brought to light that the real deciding factor on how fast, or even if, your home sells all comes down to price.

It’s not that buyers are attracted by shiny, new things, but in a sense they are. When a home or condominium is newly listed it gathers a lot of interest. The listing agent may send out emails, webcasts, and virtual tours. They launch their entire marketing program. Even the MLS indicates the home as “newly listed.” After a few weeks, however, if no momentum has been built, the property will then face a must steeper challenge on the road to selling.

First, homes that have been on the market a considerable time lose their competitive advantage. A buyer may see a home hasn’t moved, and may come in with a low offer price. Depending on how desperate the seller is, they may feel obligated to take this offer.

Second, no one wants their home to sit on the market. It can interrupt plans to move and to buy. One of the best game plans is to price your home to sell.

This means taking a good, hard look at the area comparables. How much have homes been selling for in your area? How does your home compare in terms of amenities? Your real estate agent can be invaluable when it comes to correctly pricing your home. Sellers judgement can be easily prejudiced by emotional attachment to the home and hopes for certain profits.

If your area is experiencing a strong buyers market, that means you need to be even more competitive. You may need to price your home a little lower than you had hoped for. If you are in a sellers market, you can generally ask for a bit more in the asking price.

One tried a true method a REALTOR will use to snowball interest in a home is to actually underprice it. If your home is in a desirable location and you undercut the competition, you may find yourself fielding multiple offers. How does that work?

A group of buyers are all looking for a home in your lovely neighborhood. Comparable homes to your are priced around $250,000. So, you price your home at $220,000. Buyers jump at the chance to get such a bargain deal …. buyers being the operative word. This can create a bidding war between buyers who have fallen in love with your property. In many cases, the final sale price ends up being more than you would have gotten had you listed at a higher initial price.

Have your upgrades priced you out of the competition? Renovating your home with upgraded fixtures and granite counters can be very appealing. But if homes in your neighborhood are basic models with Formica counters and fewer fancy upgrades, you may have a hard time finding a buyer who will shell out more. This is one way location is very important. You must make sure you’re aren’t overpriced for your location. Depending on your area, you may have to eat the costs of some of your previous upgrades in order to get a sale.

And finally, are you being greedy? Sometimes people have a magic number in their head of the profit they’d like to make by selling their house. They already have that money spent on the upgrades and toys they’ll buy for their next home. But selling is a time to be realistic.

Rely on your real estate agent to guide you in pricing your home. And good luck selling!

THANKS TO  Carla Hill of REALTY TIMES “From The Market To The Street”

The following information was provided by the State of Maryland, Department of Assessments and Taxation.

Assessment Appeal Process

Property owners sometimes feel that the department’s estimate of their property value is wrong.  The assessment appeal process is available to allow property owners the opportunity to dispute the value determined by the department. Property values rise and fall to reflect the market.  A property owner should file an appeal when they believe that their property is not valued at its current market value.

Appeals may be filed on three occasions:

1)   Upon receipt of an assessment notice;

2)   By a petition for review;

3)   Upon purchase of property between January 1 and June 30.

Appeal on Reassessment

Property owners will normally receive a Notice of Assessment every three years that shows the old market value as well as the new market value.  The new value reflects the market influence and other conditions affecting the property from the time of the last assessment.

If you decide to appeal, the first step is to reply to the Notice of Assessment by signing and returning the appeal form within 45 days of the date of the notice.  Following this, a personal or telephone hearing will be scheduled.  You have the right to postpone this hearing one time.  Appeals can also be made in writing, eliminating the need for a hearing.

Petition For Review

If events have occurred since your last regular assessment that you believe have caused your property value to decline or if you failed to respond to the Notice of Assessment within the required time  frame, you may file for a petition for review by January 1 of any year.  Petition forms can be obtained from your local assessment office or on the State of Maryland, Department of Assessments and Taxation web site located under Real Property.  After filing the petition, you will be scheduled for a hearing; or, if you prefer, your written submission can be reviewed eliminating the need for a hearing.

Appeal Upon Purchase

If you purchase a property and the property is transferred after January 1 but before July 1, you may file an appeal within 60 days of the transfer.  After filing a written appeal, you will be scheduled for a hearing; or, if you prefer, your written appeal can be reviewed instead of a hearing.

First Step – Supervisor’s Level

The first step of the appeal process, known as the Supervisor’s level, is informal.  You will present your case to an assessor designated by the Supervisor of Assessments.  Typically, hearings at this level take approximately 15 minutes.

You can obtain a copy of the worksheet for the property free of charge from your local assessment office.  The information on the worksheet will be reviewed at the time of the hearing to assure its accuracy.

For assistance in estimating the value of your property, you can obtain sales data from various sources, including:  property sales from the data search function of the Maryland Department of Assessments and Taxation web site; sales listings located in the local assessment office; commercially available sales reports and other information available at local libraries; local Real Estate offices; personal surveys of recently sold comparable properties in the area; and local listings of sales transactions in the newspaper.  For a nominal fee, worksheets of comparable properties may be obtained from the assessment office.

To be most effective, you should:

• Focus on those points that affect the value of your property.
• Indicate why the Total New Market Value does not reflect the market value of the property.
• Identify any mathematical errors on the worksheet or inaccurate information describing the characteristics of the property (such as the number of bathrooms, fireplaces, etc.).
• Provide examples of sales of comparable properties which support your findings as to the value of the property.
• Avoid the following issues since they are not relevant to the value under appeal; comparison to past values, percent of increase, additional metropolitan costs, the amount of the tax bill, properties in other taxing jurisdictions, and services rendered or not rendered.

Your first level hearing should be viewed as an opportunity to present evidence which would indicate that the department’s value of the property is inaccurate.

Second Step – Property Tax Assessment Appeal Board

Following the hearing, you will receive a final notice.  If you disagree with the decision, you can appeal to the next step which is to the Property Tax Assessment Appeal Board.  The second step appeal must be filed within 30 days from the date of the final notice from the Supervisor of Assessments.

There is an independent appeal board comprised of 3 local residents in each of the counties and Baltimore City.  Property owners generally need no assistance at this step, no fees are required, and they are free to present any supporting evidence.  You can obtain a list of the comparable properties that will be used by the assessment office before the Board if you file a written request to the assessment office at least 15 days before the scheduled date of the hearing.

Third Step – Maryland Tax Court

If you are dissatisfied with the decision made by the Appeal Board, you can file an appeal within 30 days of the date of the board’s decision to the Maryland Tax Court.  The Maryland Tax Court is an independent body appointed by the Governor.  Although the proceedings are more formal than the first 2 levels, it is still considered to be an informal, administrative hearing.  Property owners who are in disagreement with the Tax Court’s decision can appeal further through the regular judiciary system.  Here you will probably need legal counsel.

Summation

The assessment appeal process is a mechanism intended to assure an accurate property valuation.  If you believe that the value placed upon your property is higher than it should be and if you can provide supporting evidence (such as sales information for properties comparable to your own), then it is in your best interest to appeal.

Magnificent bay front location in the residential community of the “Little Salisbury” area in Ocean City. This waterfront property has unobstructed bay views with a private boat dock and boat lift. All the best boating features are already here, plus the home is still within walking distance to the beach. The home is approximately 2400 s.f. with an indoor pool. Potential to rehab or build new on this premier bulkheaded lot. Asking price $699,900.

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.

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 (FTHB) 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 fort FTHB 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.

All of these incentives are wonderful for new and current home, condominium or townhouse buyers to consider making that real estate purchase now.

As always, many thanks to Paul Soule from Coldwell Banker Home Loans for this most valuable information.

Which property to choose?

I have always believed that when buyers are considering making a purchase, that they should not buy the most expensive condominium or home in a given neighborhood or building.

Why you ask?  Let’s say you fall in love with the best of the best in a particular area.  It has everything you could possibly want. You see that the sellers have obviously put a lot of time, effort and money into the property. It most definitely stands out as the premier unit in the building or home in the neighborhood.  Why wouldn’t you want to buy it immediately?

Before you get carried away, you have to take a look at the sales prices of comparable properties, “comps” we call them, in that area.  If you compare the comp prices to this stand out property, you should probably notice a pretty significant price difference. This difference should act as a wake up call to you. This property is undoubtedly selling for a price range far above the comparable sales.  You should be seeing warning lights at this point. I think you are going to have a problem if you purchase this most expensive home in the building or community. In fact, I think you are going to have two problems.

As I see it, the first problem is relative to the appreciation of the property. The appreciation on the property is always going to be dragged down by the homes around it. If you take a $800,000 beautiful property and put it in the area of $250,000 properties, the $800,000 value is going to come down a lot because the community will not support the higher price.  When you eventually decide to sell, new buyers are also going to look at the comps in the area and laugh at your asking price.

The second problem I see is something called “hemming”.  Your appreciation potential is seriously limited because you own the most expensive home in the area. This becomes an even bigger problem if you decide to remodel or in an way upgrade the property. Under normal circumstances, doing a remodel or upgrade would add value to your property. When you own the most expensive property, not only will it not add value, it may cut into your equity. Why? If you do a $50,000 remodel, you may see a $10,000 gain for your $50,000 cost. You’ve just lost $40,000.

Nobody can predict the future, and unless you can foresee what potential increases will be for your whole community or building, you shouldn’t be the one to own the most expensive property in a given area.  Your dream property could turn into a nightmare for you financially.

This blog was posted on Active Rain. It is a must read for homeowner’s that are facing a foreclosure or short sale situation.

There are some very important legalities that your lender must be able to definitively prove. It is such a stressful time in a homeowner’s life to be losing their home. Please make sure that you understand your rights and the process.

Beach Scene Ocean City, Maryland

When I work with a prospective purchaser of real estate, I always want to find the best possible match for you. Is it in the right price range?  I always insist that a buyer be pre-qualified to determine their borrowing power.  It helps me pick the right properties, and you to know where you stand and it creates a beginning point for our relationship.

So many areas to explore…  What is the style of home or condominium that you are looking for? How are you going to use the property? Most in my market are looking for a second home or investment property here at the beach.

I want to know about you as a person. Do you have children or extended family? How many will be occupying the house, or coming to visit?  Remember…you don’t know how many friends you have “till you have a place at the ocean”. (Just a simple old saying I remembered).  Many buyers are very specific about their location.You, the buyer, and your needs are critical to me so I can assist you in making the best possible decisions.

Some people are boaters and want to have a boat slip right out their back door. Others want a two level townhouse for more privacy.   You might know where you want to be…as specific as I want oceanfront between 62^nd and 75^th Street. That might be where all your friends and family hang out. So of course you want to be there too!

Whatever your needs…I exhaust all of the options to find the right place for you.  After all, we are all human and sometimes we don’t know what we want until we see it…but we start with some strong basics and go from there. My job is asking the right questions and give you, the buyer, accurate information from A to Z.