Chris & Karen Highland

There are always savvy buyers and investors asking the question, "Can I get a steal?" Our answer is usually, "It depends." It depends on your definition of a steal. Can you get something 20% below market? Yes, but do you mind putting some work into it? If you don't, this is your market. There are many REO's (Bank-owned, foreclosures) on the market at incredible prices. But you have to be ready to jump when you find one. Take this one, for example:

822 Apache Court This house was listed for $399,000 last year, then went into foreclosure. It was listed on January 8, for $216,000, and sold in 9 days. This was a steal. Yes, the steals are out there, if you can move on them quickly.

To see more deals, use our free search tool:

The Highland Real Estate Group
Chris & Karen Highland
Frederick County MD Real Estate Agents
Specializing in Frederick County Real Estate
301-831-9947
Real Estate Teams, LLC
isell4u2@msn.com
Pictures of Frederick

Frederick County Real Estate Statistics 2008 Year in Review:

January 2008 2007 % Change
Average Sold Price: 341,453 365,151 -6%
Median Sold Price: 295,000 322,500 -9%
February
Average Sold Price: 338,888 343,392 -1%
Median Sold Price: 295,000 305,000 -3%
March
Average Sold Price: 323,628 340,773 -5%
Median Sold Price: 290,000 307,500 -6%
April
Average Sold Price: 322,660 375,549 -14%
Median Sold Price: 289,900 309,950 -6%
May
Average Sold Price: 325,104 349,718 -7%
Median Sold Price: 286,000 323,950 -12%
June
Average Sold Price: 310,917 345,473 -10%
Median Sold Price 272,500 309,450 -12%
July
Average Sold Price: 327,235 366,884 -11%
Median Sold Price: 295,000 316,250 -7%
August
Average Sold Price: 298,973 359,949 -17%
Median Sold Price: 265,000 315,000 -16%
September
Average Sold Price: 290,129 340,478 -15%
Median Sold Price: 262,000 295,500 -11%
October
Average Sold Price: 276,620 328,826 -16%
Median Sold Price: 234,500 287,000 -18%
November
Average Sold Price: 263,156 314,510 -16%
Median Sold Price: 231,000 273,300 -14%
December
Average Sold Price: 276,595 326,373 -15%
Median Sold Price: 239,900 282,838 -15%

And for the Visual People:

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The Highland Real Estate Group
Chris & Karen Highland
Frederick County MD Real Estate Agents
Specializing in Frederick County Real Estate
301-831-9947
Real Estate Teams, LLC
isell4u2@msn.com
Pictures of Frederick

The building on the Carroll Creek Linear Park is entering its final stage, and there is more beauty and charm to come!

Excavation has begun on the new Parking garage on the corner of Carroll Street and All Saints Street. The Wormald Company, of Worman's Mill fame, is building a group of Condominiums next to the parking garage, the Galleria. Plans have not been made available yet.

One Commerce Plaza, on the corner of East Street and Commerce, will include office condominiums,
restaurant and retail, with the possibility of a banquet facility/conference center, totaling 114,000
square feet. Some integral parking will be available. We hope to see it materialize at the end of 2010!

The new Central Office for the Frederick County School Board, 191 East Street, is projected to be completed in Summer 2010. The 90,000 square foot space will consolidate all the various offices into one place.

McCutcheon's Apple Products will not be outdone either! They have plans for a beautiful new McCutcheons retail store along Carroll Creek. There will be retail space for lease to several other businesses as well as the McCutcheons store. McCutcheons is our own home-grown family owned business since 1938.

This is the Gazette Photo of the Carroll Creek Linear Park when it first opened in Spring 2006.

To see Real Estate Information and homes for sale in the Historic District, Downtown Frederick MD.

The Highland Real Estate Group
Chris & Karen Highland
Frederick County MD Real Estate Agents
Specializing in Frederick County Real Estate
301-831-9947
Real Estate Teams, LLC
isell4u2@msn.com

The Highland Real Estate Group

With 1 in 10 homeowners either in foreclosure or in default nationally, foreclosures are driving the real estate market, and its not any different for the Frederick Real Estate Market. Recent estimates say that in the next four years, 8.1 million homes - 16 percent of all mortgages - will be in foreclosure. If foreclosed homes, or REO's, are going to be a major driver of the Frederick Real Estate market for the next 4 years, we will have to learn how to make the best of the situation.

Karen put together a tutorial with our best tips for buying a foreclosure in Frederick. We are making 2 main points in the title above:

1. We are giving tips for the Frederick Real Estate Market, because all real estate is local. These tips don't neccessarily work in other locations. For instance, Austin Real Estate agent Garreth Wilcock writes that in his market, there aren't too many foreclosures, so they aren't driving the market.
2. We are giving tips for the Frederick Real Estate Market in 2009, because the market could be totally different in the years after. (We've learned from the volitility of these past few years, haven't we!)

We've experienced two major tactics from the banks as they've tried to unload their properties in 90 days or less:

1. The bank lists the home at market value, as best interpreted by the BPO, Broker Price Opinion. Then they systematically lower the price every 2 weeks until some smart buyer snaps it up. The buyer ends up getting the property at 10 or 20% below market, insulating themselves against further market decline, which is still possible thoughout '09 and '10. Or,
2. The bank lists the home at 20% to 30% below market value and creates a bidding war within the first 2 weeks on the market. The lucky buyer usually wins out by offering more than list (which, remember, is 20% to 30% below market already) and ends up getting it somewhere in the neighborhood of 10 to 20% below market, thereby insulating themselves against further market declines.

Here are our observations about winning in the Frederick REO real estate market:

1. Work with an experienced, knowledgable Frederick Real Estate Agent. You need to be able to trust that your agent knows the market, knows how to negotiate, and knows how to guide you to get the best deal possible. If you don't know that a property is already 30% below market, and you bid low, thinking you'll get a 'steal', someone may out-bid you, knowing that it is already a steal.
   
2. Make sure your Realtor is technically experienced and can go over the bank's addenda with a fine tooth comb. Every bank has their own addenda that have been created by their legal team, and these addenda can supercede the MAR (Maryland Association of Realtors) contract or the Regional contract of sale. We just saved a buyer a chunk of money by carefully reading the paragraph about the transfer taxes. We insisted that the addendum be modified, which would not have been possible later, after the deal was ratified. Don't assume that every agent understand the details and is careful enough.
   
3. A bank, unlike most sellers, is in the loan business, and your financing will receive more scrutiny. They don't want the house back on the market in 30 days because your loan didn't go through. Make sure you have a strong lender letter, preferably from a direct lender, not a broker.
   
4. Don't forget cash is King! If there is little cash in your offer, and you are in competition, and you more than likely will be, they most likely will not look favorably on your offer.
   
5. Home inspections, if they are accepted at all, typically are done without remedy, except to provide an out for the buyer, if they find something they just can't live with. The banks, while they hope you enjoy the home, will in no way make repairs to a home they have never been in.
   
6. Speaking of home inspections, remember that more than likely the homes have been winterized, meaning no water, no electricity. Bring a flashlight, and be aware that even the best home inspector is limited.
   
   Buying a home in the Frederick REO market, in all truth, does carry some risks, but armed with knowledge, some cash, and the right agent, any buyer can secure a great home at a price enough below market to insulate themselves for the possible further decline in values. Contact us to see some of these sweet deals.

The Highland Real Estate Group
Chris & Karen Highland
Frederick County MD Real Estate Agents
Specializing in Frederick County Real Estate
301-831-9947
Real Estate Teams, LLC
isell4u2@msn.com
Pictures of Frederick

With the property values decreasing 10% to 15% year over year these last 2 years, Maryland homeowners might want to consider appealing their property value assessment, which determines their property taxes. Property taxes have skyrocketed over the last few years, along with the inflated real estate market we're recovering from.

Chris and I attended the meeting at the Frederick Public Library last night and learned much about the Property Assessment Appeal Process. When you wade through the government wonk-speak, its really not that complicated. Here is my Primer on the Mid-Cycle Appeal Process:

Appeals may be filed on 3 occasions:

1) When you purchase your house between January 1 and June 30.
2) Upon receipt of an assessment notice; the cycle is every 3 years. The next notices will come out July 1, 2009. You have 45 days to appeal. If your appeal is successful, you will not see the effect on your taxes until the next year. That's why you might want to appeal...
3) mid-cycle, that's what last night's meeting was about.

Property value assessments are always lagging indicators, they follow the market. That's why you won't see them come down to market value until well after the market value is established. Assessors and appraisers (usually) use the statistics from the previous 6 months to get values, so its always after the fact. (BTW- its the same as values increase.)

The mid-cycle appeal process:

1) Petition for Review, using a one-page form you can find on the SDAT website. There is a lot of useful Tax and Assessment information on the site.
A. The important part of this form is the supporting documentation you need to attach. You need to have some kind of compelling evidence that your values have declined. There are several items that would be appropriate.
1. Any friendly, helpful Frederick County Realtor can look at the recent sales in your neighborhood and give you the information. Contact us by phone (301-831-9947) or email, we'll be happy to help.
2. If your home is not easily comparable, perhaps you live in an area that is not in a neighborhood, or your home is very unique, you should seriously consider an appraisal. The cost is somewhere between $300 and $500 on average, depending on the size of your home, and is well worth it. There are several appraisers in the area, we can recommend someone.
3. You can call the SDAT and ask for information about other properties that have successfully appealed. You can put together a compelling appeal based on the successes of others. I have found the staff at the local SDAT office to be very friendly and helpful.

4. You can do your own research at the Courthouse, finding recent sales. You can find recent sales in the newspaper. The assessment office has worksheets of comparable properties for a nominal fee. *In my opinion, you might not have time for this, I'd use a customer service-oriented Realtor.* Or pay the fee for an appraiser.

B. Mail the Petition with supporting documentation to your local assessment office. * Addresses below *

C. You will be scheduled for a hearing, or, if you prefer, your petition can be reviewed without a hearing. We were told that the law stipulates that you must be notified in writing.

1.5) The first level of the appeal process is the Supervisor's level and is informal. Hearings usually take about 15 minutes, in which you will present your evidence to an assessor. You can obtain a copy of the information worksheet that the assessor will use from the website. It seems to me that studying this worksheet will give you an edge.

2) After the hearing, you will receive a final notice. If you have done an adequate job of documentation, you should receive good news. If you disagree with the decision, you can appeal to the next level, the Property Tax Assessment Appeal Board. The appeal must be filed within 30 days from the date of notice. The independent appeal board is made up of 3 local residents in each of the counties which have been appointed by the Governor.

3) If you still are dissatisfied with the results, you can go to the Maryland Tax Court. This is a legal body, whereas the first two steps are based on opinion. The assessor who shared this with us last night said he had only seen 2 cases in 30 years go to the Maryland Tax Court. It doesn't sound too promising, so you want to get step number 1 right.

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Here are some tips from the Assessment office
to help you prepare your documents:
* Focus on those points that affect the value of your property.
* Indicate why the Total New Market Value does not reflect the market Value.
* Identify any mathematical errors on the worksheet, or inaccurate information
describing your home.
* Provide examples of sales of comparable properties which support your
findings.
* Avoid issues that are irrelevant: past values, additional costs, the amount
of the tax bill, and properties in other jurisdictions.

My suggestion: When you get the sales comparables, make an easy to read table with the statistics from each of the properties. Make your letter short and sweet and to the point. The assessor told us last night that they do 4,000 to 6,000 properties a year. You might stand a better chance if you make your documentation really easy to read.

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Local Offices:

FREDERICK COUNTY
Doris J. White, Supervisor of Assessments
5310 Spectrum Dr, Suite E
Frederick, Maryland 21703
Hours: 8:00 to 5:00
(301) 815-5350
FAX (301) 663-8941
E-mail: fred@dat.state.md.us
Frederick County Home Page
Reassessment Map

WASHINGTON COUNTY
Jerry L. Elmore, Supervisor of Assessments
3 Public Square
Hagerstown, Maryland 21740
Hours: 7:30 to 5:00
(301) 791-3050
FAX: (301) 791-2925
E-mail: wash@dat.state.md.us
Washington County Home Page
Reassessment Map

MONTGOMERY COUNTY
John Brennan, Supervisor of Assessments
30 W. Gude Drive, Suite 400
Rockville, Maryland 20850
Hours: 8:00 to 5:00
(240) 314-4510
Commercial (240) 314-4530
FAX: (301) 424-3864
E-mail: mont@dat.state.md.us
Montgomery County Home Page
Tax bills & payments
Reassesment Map

CARROLL COUNTY
Larry C. White, Supervisor of Assessments
Winchester Exchange
Rear 17 E. Main Street
Westminster, Maryland 21157
Hours: 8:00 to 5:00
(410) 857-0600
FAX: (410) 857-0128
E-mail: carl@dat.state.md.us
Carroll County Home Page
Reassessment Map