According to the Independent, this ‘one seat, one residence’ rule has allowed between 138 and 144 new homes to be built over the past year and a half (see School allocations granted).  As you can see, the rule is trying to help avoid the ever present problem of school overcrowding without completely stunting residential growth to the county.

However, the allocations are not evenly spread through the county.  In each school zone, school’s maximum capacity, school enrollment numbers, and the estimated number of students per household determine the number of allocations for that area.

If you are looking to buy new construction or have a custom home built on your lot and have questions about school zoning issues, feel free to contact me today!

Jonathan Benya

Realtor

Century 21 New Millennium

9405-A Chesapeake Street 301-609-9000 Office

La Plata, Maryland 20646 301-653-8116 Mobile

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Luckily, for tenants and prospective renters, there was a new federal statute signed into law this past May.  The new law states:

• Tenants in foreclosed properties can remain until the end of their lease.
• Month-to-month tenants are entitled to 90 days notice to terminate.
• If purchaser of the foreclosed property intends to reside in the property, then the buyer may terminate any existing lease with 90 days notice.

This new law gives renters some peace of mind concerning their current residence.  Instead of having a few days notice, tenants can expect at least 90 days notice if they must relocate.

If you need assistance finding a new home, contact me today!  This is a buyer’s market, and with the tax credits for first time home buyers and foreclosure buyers in Prince George’s and Charles Counties, this may be the right time for you to invest in a home of your own!

Jonathan Benya

Realtor

Century 21 New Millennium

9405-A Chesapeake Street 301-609-9000 Office

La Plata, Maryland 20646 301-653-8116 Mobile

Come Home to the Charleston!

This European Style Rambler has an open, easily customizable floor plan with 3 bedrooms and 2 bathrooms.  The Master Bath includes a whirlpool tub and large walk-in closet.  You can customize this great home without breaking the bank!

Bank of America Strikes Again

According to a South Coast Today article (see Couple claims Bank of America seized the wrong house), homeowners Charlie and Maria Cardoso filed a lawsuit against Bank of America/Countrywide for foreclosing on their home.  Now, you may think that this was just another mistake due to some sort of miscommunication between the homeowners and the bank – but you’d be wrong.  The truly frightening aspect of this particular incident is that the Cardosos NEVER had a Bank of America mortgage for this  property – in fact, they don’t have ANY mortgage on the property and own it free and clear!

After the bank representatives scared off the current tenants renting the property and padlocked the home, the Cardosos finally convinced the local authorities to break the locks so they could enter their own house.  What they found were missing power tools, electricity and water had been shut off, and the pipes in the house had frozen.

HOW CAN THIS HAPPEN?!

I ask myself this question EVERY time I see another story involving the words “Bank of America,” “foreclosure,” and “mistake.”  It baffles any logical person and terrifies any homeowner with one of their mortgages.  I can theorize all day about what may have happened: Had the bank’s legal team made an address typo somewhere?  Had the bank’s enlisted agent for the property verified the address with the bank with tax records and photos?  And on, and on, and on…

Whatever the cause, the problem is that it HAS happened and WILL happen again.  As a Realtor who does work for banks from time to time, I have seen incorrect paperwork sent to me that is only discovered when I go to verify the information.  There have been a few times where, had I assumed the paperwork from the bank was correct, I would have evicted the wrong homeowners. 

If you are facing possible foreclosure, contact me to discuss possible selling options and the current market value of your home!

Jonathan Benya

Realtor

Century 21 New Millennium

9405-A Chesapeake Street      301-609-9000 Office

La Plata, Maryland 20646        301-653-8116 Mobile                                      

But what if you don’t have the pass code from the sellers? What if you’ve moved into a home with an alarm system you can’t even use?  Such is the dilemma of many new homeowners buying foreclosed or distressed homes, however this happens with your run of the mill resales as well.

If you find yourself in this unhappy situation, here are some options:

• Have your Realtor try to get the pass code from the sellers or previous owners

Sometimes, a space on a disclosure was simply left blank or it was a detail that hadn’t crossed anyone’s mind until after settlement.  Your Realtor can get in touch with the seller’s or their agent to try and obtain the current pass code.

• Call the alarm company and request the pass code be reset

While not always successful, it doesn’t hurt to call the alarm system company and request that the pass code be reset.  Be aware that many companies will not do so unless you opt to sign up for their monitoring program.  It can be a very useful program, but it will cost you money.  If you simply want to be able to arm and disarm the alarm, calling the alarm company may not work.

• Call local alarm installer to see if they’ll help you out

For a fee, you can see if an installer will replace the “brain” board of your system to allow you to set a new code.  It may cost you $100 for the new board and whatever labor fee the installer would charge, but it would be cheaper than replacing the system or signing a monitoring program contract.

• Reset the system yourself

Sometimes, you’ve just got to take matters into your own hands!  Take note of the exact make and model number of the unit and search online using phrases such as “resetting alarm code [MAKE] [MODEL #]” or “reset default alarm code [MAKE] [MODEL #]” for instructions.  You may get lucky and find a how-to by someone who’s already gone through the process, or you may find a way to get your hands on the instruction manual for your system.  By resetting it to the factory default code, you can either use that to arm/disarm the system, or follow the instructions to set a new code of your choice.

• Accept defeat

Sometimes, no matter what you do, you just can’t win.  If you’ve not been successful with any other options, then you may need to simply cut power to the alarm system so you don’t accidentally set it off without a way to turn it off.  From here, you can either remove all the wall keypads to just remove any sign of it, or you can bite the bullet and have a newer system installed.

Obviously, the best way to avoid this situation is to make sure you get the pass code at settlement.  Since the home is usually not changing hands until settlement, you won’t be able to get the code until you actually have the keys in hand.

If you’re looking for a new home with amenities that would help protect your family, contact me today!

Jonathan Benya

Realtor

Century 21 New Millennium

9405-A Chesapeake Street 301-609-9000 Office

La Plata, Maryland 20646 301-653-8116 Mobile

Both the National Association of Realtors (NAR) and the National Associtation of Home Builders (NAHB) report substantial numbers of sales being thwarted by lower than expected appraisals. 

Overall, you must remember that an appraisal is basically one person’s interpretation or opinion on what your home is worth.  The appraisals are (sometimes arguably) done by experienced professionals who base their opinions upon the current local market for similar homes.  When that pool of properties (referred to as comps or comparables) includes mostly foreclosed or distressed homes, it can be tricky to assess a home’s true value.  Sure, your home may be worth $400,000 based on what you paid and the upgrades you did, but when the same house with the same upgrades sells for $329,000 down the street as a foreclosure, buyers are less likely to shell out the extra money for yours.

Back to Market Basics

It’s all a long, drawn out way of saying. “it’s elementary, my dear Watson.”  When two retailers have the same item you want, you buy the item at whichever retailer is selling it cheaper.  Appraisers are simply doing their best in a market they’ve never seen before. 

If you are looking to sell and you have questions or concerns about what the true market value of your home is in the current market, contact me today!   

~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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The reported energy-saving features of the homes in the planned community include:

• Low flush, low flow toilets and showers
• Better-than-normal insulation
• Recycled carpets
• Energy Star appliances
• Energy-saving windows
• Smart thermostats

What ACPT doesn’t mention is that SMECO already has a smart thermostat program!  It is FREE to enroll in, and the Energy Star certified CoolSentry digital thermostat included in the program is also FREE!  With the ability to program the unit for weekdays and weekends, you’ll save on your heating and cooling bills the instant it is installed!

The catch to the program is that it allows SMECO to decrease your heating or cooling usage during high peak periods to ease strain on the system.  But no worries!  The temperature will only change a degree or two, so your home will stay safe and cozy for your furry and feathered friends!  You’ll also be helping to lessen the strain on the environment, as well as your wallet!  Right now SMECO is also offering annual credits for customers who enroll in this program!

For more information on how you can create a more energy-efficient home, or to custom build an energy-saving home, contact me today!

~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

Who is ACPT?

In short ACPT is the developer responsible for developing the Saint Charles Region of Waldorf.  They own a ton of land in the region, and have been involved in the area for decades.  They developed multiple neighborhoods and shopping districts, including the mall, subdivisions such as Carrington, Hampshire, Dorchester, Lancaster, Wakefield, Bannister, Fairway Village, and even the land that the Blue Crabs Stadium now rests on was part of ACPT’s development holdings.

Why Does This Matter?

ACPT has been building in Charles County since 1968, and in that time, they’ve built over 12,000 residences and more than 230,000 square feet of commercial space.  They still own more than 4,000 acres of undeveloped land and have county approval to build an additional 11,000 dwellings and 5 million square feet of commercial space.  Needless to say, ACPT is the biggest developer operating in Charles County, and has been for some time.  The new owners say they do not plan any major changes, but this deal turns ACPT into a private company, one that does not need to answer to shareholders.  It allows them greater freedom to operate with less people to question their decisions.

Is This Good For Charles County?

Only time will tell how this is going to impact local residents.  Without shareholders restricting company actions, ACPT may find itself able to operate more efficently, lower costs, and improve the quality of the county through it’s future growth.

~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

I’ve had several clients recently who have come up against a common challenge in buying a home right now, and I’m not talking about tough lending standards!  It’s hard enough to be a first time home buyer in Southern Maryland;  Trying to understand the loan process can be stressful, understanding all of the moving parts involved in a real estate transaction is difficult, and now investors are coming into the market with a passion!

What’s Happening?

Unfortunately this means that home buyers are forced to compete with cash-flushed investors who are ready and willing to make a splash in real estate again.  With banks under pressure to sell off the foreclosures and REO properties they currently have, investors are quite often making the bank a deal they can’t refuse, specifically, CASH! (Rel. Link: Washington Post: Cash Investors Trigger Bidding Wars)

Investors Are Hard to Compete With

The reason investors are hitting the market so hard is simple.  There are a ton of cheap homes for sale right now!  Investors are experts at identifying great deals, and they have the ability to write offers that traditional buyers simply can’t compete with.

When an investor writes an offer, they often have the ability to write a contract that includes a proof of funds (POF) letter showing they have the liquidity to purchase cash, which means that the banks don’t have to worry about appraisals, underwriter approvals, termite inspections, or perhaps even a home inspection!

When compared to a home buyer who needs a loan to purchase the property, an investor could go to closing within 10 days, while a home buyer may need 30-45 days (or more) to get through inspections, appraisals, and underwriting.  It’s a no-brainer for the bank, a cash offer has very little chance of falling apart, and in some cases the bank may even take a lower priced offer if the purchaser is writing for cash.

Banks Are Underpricing Homes

The other issue that buyers can find frustrating right now is that banks are often deliberately underpricing foreclosure properties.  You see, banks WANT to getting these sort of bidding wars started.  By getting multiple bids simultaneously on a single property, banks can force people to offer more money on the home, using the fear of losing the property as motivation for offering more money.

What Are Investors Doing With These Homes?

What the investor does with the home depends on what their goals are.  For some, they are investing into rehabbing the property so that they can sell it in tip-top shape for a profit.  For others, they are holding on to the properties and using them as rental units.  The profit margins can be very lucrative:

Home Price: $150,000

Closing Costs: $2,500

Total Purchase Cost: $152,500

Annual Taxes: $1,400-$1,600

Rental Value: $1,450/mo or $17,400/yr

Annual Income: $15,800

Annual Return on Investment (ROI): 10.3%

With an ROI of more than 8%, the profit potential is very attractive for possible investors!  Unfortunately, until sales prices or rental values change, investors have a very good reason to be buying homes, and individual buyers are going to continue to see this trend continue.

~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

What Is a Property Tax Assessment?

In short, a tax assessment is the approximate value of your home, according to the government, used for taxation purposes.  It is NOT an appraisal, nor is it an estimate of the sales value of your home.  Homes are assessed every three years by the government, and then annual adjustments are made based on average value changes each year.

How it Works:

When you look at your property tax bill, the amount of tax you pay is based off of this assessed value.  For homes that were just re-assessed, the last assessment was in 2006, so almost all of these homes have been taxed at an assessed value that was higher than the home was actually worth.  In Charles County, just over 18,000 homes were re-assessed, and all but 6 of them had a decrease in value!

The county tax rate for residential property is $1.026 per $100 of assessed value.  This means that for a home valued at $300,000, the tax bill should be $3,780.  The average value drop on this round of assessments for Charles County was 28.2%.  That means that if a home was previously assessed at $300,000, the new assessment would, on average, place it near a value of $215,400.  The tax bill would then drop from $3,780 to $2,714, a savings of $1,066 on the annual tax bill!

Not All Good News

While the benefit of saving $1,000 or more on your tax bill is obvious, this isn’t exactly a rosy picture for residents.  You see, all that money collected from property taxes is used by the government to keep the state running.  In total, Maryland is losing $1.7 billion dollars in tax revenues from this current re-assessment, and we as residents are going to feel it as everything from school budgets to local outreach programs are scaled back or eliminated to cope with the loss of revenue.

Keep your eyes out for a post later this week about the Homestead Tax Credit, which allows owners to cap the annual value increase on their tax assessments at a maximum of 7%!

Link:  Maryland Independent Article: Property Assessments Plummet

~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