As we say good-bye to 2008 and welcome the New Year, we can't help but wonder what 2009 will bring and hope for a more robust real estate market.  Actually, the 2008 market wasn't all that bad.  Unfortunately there were many short sales and foreclosures, but there were also great opportunities for buyers (both first-time homebuyers and those looking to trade up in a home), and there were lots of home sales where most sellers made money by selling their homes (perhaps they didn't make as much money as they would have in a better market, but they still made money).

Looking forward, I think that we'll still see plenty of short sales and foreclosures and it will still be a buyer's market, but I think that we'll see an ever so slight shift toward a normal market in the spring.  The positive effect of a new president, stabilization of the economy, and the fact that the job market in Baltimore remains strong will most likely halt the continuing decline of housing prices.

Right now and continuing through February we will probably see rock bottom real estate prices in the Greater Baltimore Metropolitan Area.  So, if you are a first time homebuyer or if you are a bargain hunter looking for a great buy, now is the time to make a move!  Check out our BEST BUYS for some really terrific deals and call us if you'd like to visit one of the properties.  We'll be glad to help you.

In the meantime, Jesse and I wish you and your families a joyous holiday.

Wishing you sunshine everyday and the home of your dreams,
Jeri

For the past several years, conventional loans were the way to purchase a house for many buyers; however, with the changes in lending practices we are seeing more FHA loans.  “Why?” you ask.  The answer lies in the benefits to this type of loan.

For instance, FHA loans are typically not credit-score driven meaning that borrowers can usually have a lower score than with other loan products and still qualify for a good rate.  Also, FHA loans require as little as a 3.5% down payment and they allow sellers to finance up to 6% of the buyer’s closing costs.

FHA loans allow for 22 ways for buyer to receive a contribution of funds including relative gifts and loans and they also typically allow non-occupying co-signers to co-sign on the mortgage.

Simply put, FHA loans are allowing for more people to become home owners or move to a larger home.

Looking for a good deal?  Take a look at our BEST BUYS!  Every time we spot a bargain, we post it on our website.  Just click on the photo of each home for more details and give us a call if you’d like to schedule an appointment to see any of them.

Wishing you sunshine everyday and the home of your dreams,
Jeri

We sign many papers at settlement when we purchase a home including loan documents and the deed to the property which states how the property is titled.  The form of ownership is extremely important because it establishes who owns the property, how much of the property each individual owns, and upon death, what happens to that portion of ownership.

In Modern Real Estate Practice, by Galaty, Allaway and Kyle, the forms of ownership are defined as follows:

1.  Ownership in Severalty - When real estate is owned by one individual and has sole rights to the ownership and sole discretion over the transfer of the ownership.

2.  Co-ownership - When title to one parcel of real estate is held by two or more individuals.  There are several forms of co-ownership and their differences become apparent only when the property is conveyed or when one of the owners dies.

A. Tenancy in Common - A parcel of real estate may be owned by two or more people as tenants in common.  In a tenancy in common, each tenant holds an undivided fractional interest in the property; the physical property is not divided into those fractions.  The co-owners have unity of possession, that is, they are entitled to possession of the whole property.  It is the ownership interest, not the property that is divided.  Because the co-owners own separate interests, each can sell, convey, mortgage, or transfer his interest without the consent of the other co-owners.  However, no one individual tenant may transfer the ownership of the entire property.  When one co-owner dies, the tenant's undivided interest passes according to his will.

B.  Joint Tenancy - The most distinguishing feature of joint tenancy is the right of survivorship.  Upon the death of a joint tenant, his interest does not pass to heirs or according to a will.  Rather, the entire ownership remains in the surviving joint tenant(s).  Essentially, there is one less owner.  The last survivor takes title in severalty and has all the rights of sole ownership.

C.  Tenancy by the Entirety - Some states allow husbands and wives to use a special form of co-ownership called tenancy by the entirety.  In this form of ownership, each spouse has an equal, undivided interest in the property and has the right of survivorship.  During their lives, they can convey title only by a deed signed by both parties.

3.  Trust - A trust is a device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third person.

Clearly, the form of ownership is an important factor in estate planning and can be an issue with regard to taxes, so now might be a good time to get out the deed to your property and see how you hold ownership.

Looking to be an owner of another property?  Check out our Best Buys list for some really great deals and give us a call if you’d like to make an appointment to visit the home.

Wishing you sunshine everyday and the home of your dreams,
Jeri