Death of the McMansion

Buying trends are changing. Studies show that over 55% of buyers are looking for homes between 1400 and 2000 Square Feet of living space.

What Are You Looking For In A Community

What are you looking for in a community? When in the process of buying a home many people look at the community first. They want to know about the school system. Today people are also concerned about how close is their community to their work, school, recreation, shopping and so on. More and more people are looking for walking or walkable communities. They like the idea of being able to walk to schools, shopping and the library.
One such community is Catonsville, a community located just outside Baltimore city. Catonsville has been highly ranked by Money Magazine as one of the top communities to live in the United States. Its schools have also been ranked as some of the top in our country. Not to mention it is minutes from Baltimore City, Minutes from BWI Airport and about 45 minutes from Washington DC. It has a state park filled with hiking and biking trails for its back yard and has two colleges, University of Maryland Baltimore County Campus and Community College of Baltimore County.
There are a large variety of homes here from Split Levels to large Victorians. Catonsville is also known for its music and has received the name Music City Maryland. Every Friday, Saturday and Sunday there are Free concerts thru-out the town that draw thousands of people.
Catonsville has a small village feel but is right here next to the big city of Baltimore.

Interest Rates

Interest Rates are at historic lows ranging from 4.25% to 4.50% depending on your credit rating. Financing a home is getting easier and now is the time to buy. If you are buying in Baltimore City, Fells Point, Federal Hill, Canton, Locust Point, Brewers Hill, Patterson Park ect., Baltimore City has many grants to make purchasing & financing a home much easier.

Maryland also has programs to assist people locating here as a result of BRAC.

Maryland Residential Realty is here to help you. Call us at 410-719-0760 or email us at George@MDResidentialRealty.com

BRAC

How will BRAC, Base Realignment and Closure, affect Maryland. Maryland is scheduled to get about 27,379 new jobs as a result of BRAC. About 11,800 of these jobs will come to Fort Meade in such areas as Defense Information Systems, Joint Task Force Global Network Operations and Defense Media Activities. Some of the great areas for these new citizens of Maryland to live would be Catonsville, Ellicott City and Columbia, Maryland. All of these locations offer a great quality of living and fantastic schools.

Aberdeen Proving Grounds will gain about 8,779 new jobs in the areas of Command Control, Communications, Intelligence, Surveillance & Reconnaisance and Army Test & Evaluation Command. Belair, Fallston and Havre De Grace are great communities to consider. White Marsh, Parkville & Perry Hall are some Baltimore County Communities that can be considered as well.

Maryland Residential Realty is here to help all of those relocating to Maryland as a result of the Base Realignment and Closure (BRAC). Visit http://www.mdresidentialrealty.com/ or call us at 410-719-0760.

Save On Your Electric Bill

A big way to save on your energy bill each month is to select an alternative electric provider other than BG&E. The electric still comes through the BG&E lines, the provider has your bill on your monthly BG&E bill and BG&E is still the company that handles all of your service needs and power outages. Its just that the alternate provider is cheaper.
Here is an example BG&E currently charges .11979 per kilowatt, an alternate provider such as Viridian charges .0979 per kilowatt. You can save as much as 20%.
for more information go to www.viridian.com/george . Viridian does not have a contract, there are no sign on charges and no cancellation fees. If you are not happy with their service cancel at anytime. This is a No Brainer!

Now Is The Time to Refinance

If you are trying to find ways to cut your home expenses during these difficult economic times have you thought about refinancing. If you haven't now is the time. Interest rates are at historical lows, 30 year conventional loans are at 4.5% or lower and FHA is at 4.75% or lower.

Lets put this in perspective, if you currently have a mortgage of $300,000 at 6% your P&I (Principal & Interest) payment is $1799 per month.
If you refinance at 4.5% your P&I payment will be reduced to $1520 per month. That's a savings of $279 per month.

Keep in mind that there are closing cost with refinancing but much lower than when you are buying the home.

Please feel free to contact one of the loan officers I have listing on my website and see if you can start saving money.

Local Housing Trends

The Housing Market
People keep asking me about the ever changing housing market and has it leveled off. In my opinion prices have leveled but hard times are not over yet. Here are some statistics for March 2010 vs. March 2009

21228 (Catonsville) – Prices increased by 1%
21227 (Arbutus) – Prices declined by 2 %
21042 & 21043 (Ellicott City) – Prices increased by 18%
21045 & 21046 (Columbia) – Prices Increased by 6%
21117 (Owings Mills) – Prices Increased by 12 %
21093 (Lutherville) – Prices Increased by 19%

Don’t jump to any conclusions yet because much of this could be caused by the increased demand from buyers who want to get a home before the Tax Stimulus expires on April 30th. Both January and February showed a decline in the sales price in 2010 compared to 2009. The other factor is interest rates are still at record lows.


Many people like to know what their current home values are if for no other reason than pure curiosity. If you would like to know what homes are selling for in your community please feel free to email me with your address and I will send you a Market Analysis FREE.

“If you know of anyone looking to purchase or sell a home I hope you will send them my way. I love referrals”

Housing Trends

Real Estate Trends
I have had the opportunity to attend a number of seminars recently on future housing trends and they all seem to point in the same direction. According to many of these urban planners both the younger generation Y, 25-39 year old and the Baby Boomers will be looking for homes that are closer in requiring less travel to work and less use of the automobile. These people will want somewhat smaller homes with higher end amenities and close to recreational facilities and parks. They are looking for the walk able communities. I have noticed that many are looking at Townhomes and Condo’s.
Both Baltimore County and the state of Maryland are very aggressive in their planning to meet these changing needs. According to a recent Maryland Planning Forum that I also attended, Maryland’s population is expected to grow over the next 20 years from 5.6 million residents to over 7 million. Geographically Maryland ranks 46th in size to other states but we currently are ranked 19th in population. We have one of the highest population of attorney’s and scientist in the United States. Maryland is also recognized as having the best educational system in the country.

Increase Your Homes Value

Like most Americans, your home is probably your single largest investment. While the value of your home is largely determined by such things as location, size, condition and amenities, there are still steps you can take to maximize its worth.

First, you need to evaluate your plans carefully if you're improving your home to put it on the market. Cutting corners could hurt rather than help your prospects, but you don't want to go overboard either. Your home's value should be no more than 20% above the average. That means a $10,000 kitchen improvement project might be a better idea than a $10,000 hot tub, especially if no other homes in your area have hot tubs.

In other words, it's best to keep changes simple.

Here's a list of remodeled projects that buyers are likely to find valuable:

• Add a bedroom: Three- and four-bedroom homes are most desirable.
• Install a master bathroom: When a bedroom has a bathroom, it means extra value.
• Install a new shower: A new shower says a modern home.
• Change your fixtures: Get a faucet that adds a decorative element to the bathroom.
• Re-grout the tile: If the tiles are in good shape a new grouting does wonders.
• Install new kitchen cabinets: Even just a paint job and some new handles will give your cabinets a fresh look.
• Improve functionality: If you've got the space, an island is the way to go. New appliances make a difference too.
• Expose the floors: Remove old carpet and show off the original floor. If you don't have hardwood floors, consider new carpeting.
• Install new doors: Doors set off a room and make a great difference.
• Paint the interior: A new paint job speaks volumes. Good colors to use are white, off-white, and a light yellow.
• Add new light fixtures: Replace any that are damaged or out-of-style.
• Add a fireplace: Even if you don't plan on using it much, it adds great value.
• Take advantage of unused or underused space: If you can convert a basement or attic into a useful room, do it.
• Landscape: A few strategically located plants and a neat-looking yard will impress.
• Add a deck: It's a great use of exterior space because it increases your total entertainment area.
• Dress up your porch and entrance: A freshly painted door with a new door handle can make a great first impression.
• Replace the windows: New windows not only give your home a new look, they can also lower your energy bill.
• Thermostat: If you don't have one yet,get one. it saves on energy and is a selling point. Call BG&E, they will install one for FREE.

Remember, when it comes to your home, it's important to keep pace with your neighbors. Don't let your home become the most expensive on the block - but don't fall behind either. This is a case where it's best to be right in the middle!

Energy Saving Tips

• Windows and Doors: Holes in windows and doors allow conditioned air to leak and outdoor air to infiltrate. Caulk around windows and doors. Also caulk areas where plumbing lines or electrical wiring extend to the exterior of home.
  
• Floor and Wall Insulation: Insulation acts as a barrier to heat and helps keep homes cooler in summer and warmer in winter-all while using less energy. Make sure insulation is used at gaps around attic stairway or over attic access door
  
• Shedding a Little Light on a Simple Solution: Replace traditional incandescent light bulbs with compact fluorescents which typically use up to 75% less energy
  
• Appliances and HVAC Systems: Change HVAC filters regularly and consider upgrading older appliances to take advantage of newer more efficient designs
  
• Buy a Programmable Thermostat: An energy-saving step that can have a positive and noticeable impact right away. Easily installed, programmable thermostats can be adjusted as the weather changes. For every degree a thermostat is set back, homeowners may realize a 1-3% savings on heating or cooling bills

Buying A Credit Score

The use of scores is growing, and now Congress is looking at how these numbers are created and used .

Everyone's got your number - a credit score, that is - and as a savvy consumer, you might want to find out exactly what they've got.

This three-digit number tries to predict whether you're a credit risk and can dictate the terms you get on credit cards, mortgage loans and insurance premiums. Once secret, scores are now widely pitched by companies - often for a price.

One problem: The score you buy might not be anywhere close to the one your lender or creditor uses. Even a small difference in scores could mean that you don't get the terms you expected. "They show you a score but don't tell you it's not the one that's used by the lender, or not even used by a majority of lenders," says Evan Hendricks, author of "Credit Scores & Credit Reports." "That ain't right."

Scores and credit reports wield increasing influence on our financial lives, and that's the reason they were the subject of a recent congressional hearing on how they are created and used. There's been a push on Capitol Hill to make credit scores more accessible. As part of financial reform now being debated, a provision in the House bill would allow consumers to buy the same scores used by creditors. And next year, federal regulations take effect that could make free scores available to consumers applying for credit.

Credit scores remained a mystery until about a decade ago, when legislative pressure starting forcing mortgage companies and credit bureaus to share scores with consumers. Now credit scores flood the marketplace. Fees run about $15 for a score and credit report, or $15 to $40 a month for a service that provides scores, reports and other features.

FICO is the oldest and most widely used score by creditors and lenders.
The three major credit bureaus - Experian, Equifax and TransUnion - four years ago created the VantageScore.
Consumer advocates say it's not broadly used by creditors, though TransUnion spokesman Steven Katz says VantageScore is used by many of the top financial institutions and credit card issuers.
There also are knock-offs or so-called FAKO scores that are purely educational and sold only to consumers, not lenders.
Creditors select the score they want to use. It could be one that's tailored for a specific product, such as autos or credit cards, and not sold to the public. Or they can supplement a score with their own model. Sometimes the score you buy closely matches what lenders use; other times, not so much.

It's not just that the score isn't the same. A score is generated by information in a credit report. Scores that look at different credit reports at different times won't yield similar results.

Mortgage brokers find that the scores a consumer buys can be 30 points to 100 points higher than the FICO score they use, says Liz Pulliam Weston, author of "Your Credit Score." That can mean "not only don't you have a good score, but you're subprime," she says. It doesn't take many points to change the credit terms you're offered.

Some creditors adjust terms every 20 points, Hendricks says. If you buy a score that says you're a 740 but the lender is looking at a score that pegs you at 720, the interest rate on your loan could be a quarter-point higher than you expected, Hendricks says.

If you're just curious, try one of the free online credit scores through Quizzle, Credit Karma and Credit.com.
But if you plan to refinance or make a big purchase using credit, buy your score at least three months in advance so you have time to improve your score, if necessary. (To boost a score, pay bills on time, avoid new lines of credit and reduce credit card balances.) Buy the FICO score because it's likely closest to the one your lender will use, credit experts say. Go to myFICO.com to get scores based on a TransUnion or Equifax report for $15.95 each. (Consumers no longer can buy a FICO score based on an Experian report, although lenders can get this).

Get both FICO scores in case the results vary significantly, a sign that one report holds more negative information on you than the other, Hendricks says.

"We focus so much on the credit score we forget the score is driven by the report," says John Ulzheimer, president of consumer education for Credit.com.

If the negative information is wrong, correcting it can quickly raise a score - and get you a better interest rate.
Credit bureaus generally must investigate disputed entries within 30 days and remove the information if it's wrong or can't be verified at that time.

But consumer advocates say fixing errors can be difficult. The Federal Trade Commission received 31,629 complaints last year about credit bureaus and the companies that supply information to them, making this category No. 11 on the top consumer complaints.

New federal rules might alleviate this problem.

Starting in July, consumers will be able to dispute information directly with the business that gave it to the credit bureaus, and that company must investigate and respond to the consumer within 30 days with its findings, says Pavneet Singh, an FTC attorney. The company must correct mistakes with any credit bureau that received the wrong information.

Access to credit scores also might improve. Currently, creditors must notify consumers if they are denied based on information in a credit report. Starting in January, creditors must tell consumers if something in their reports results in them getting less favorable terms.

Creditors will have two options: They can send a letter to the affected customer, who will be entitled to a free credit report, says FTC attorney Manas Mohapatra. Or, they can provide free scores to all consumers applying for credit. The latter option means even more consumers will have access to a credit score.

Of course, all this emphasis on credit scores has caused some consumers to obsess over their number.
"We are too focused on scores. It's kind of like our weight," says Linda Sherry, a spokeswoman for Consumer Action.

"People really do want to see how other people see them."

Remodeling-What's Your Best Return on Investment

Do you remodel and stay....... or sell? How do you know if your remodeling dollars are well spent? How much can you expect to recoup from your investment?

According to the 2009 / 2010 survey published by Remodeling magazine, here's how it breaks down:
For a mid-range priced home, you can expect the average cost and recoup for the following projects:

Average Cost vs Expected Return on your investment

Bathroom Remodel $19,000
Recoup 60% of your costs

Bathroom Addition $48,000
Recoup 56% of your costs

Garage Addition $72,000
Recoup 63% of your costs

Convert a Bedroom to a Home Office $32,000
Recoup 47% of your costs

Major Kitchen Remodel $65,000
Recoup 72% of your costs

Minor Kitchen Remodel $24,000
Recoup 76% of your costs

Window Replacement (vinyl) $13,000
Recoup 74% of your costs

Backup Power Generator $17,000
Recoup 75% of your costs

Baltimore Co. Seeks to Construct Walking/Bicycling Network for Employment Centers

The Baltimore County Office of Planning is hosting four workshops to seek public input for an action plan to
construct pedestrian and bicycle improvements in the urban sections of western Baltimore County.

The workshops will seek public input on opportunities to make improvements to sidewalks and crossings, on-street bicycle facilities and off-road trails to provide a more complete network of walking and bicycling facilities.

The Western County Pedestrian and Bicycle Access Plan is the second phase of a county-wide plan to develop a
comprehensive network of pedestrian and bicycle facilities providing access from major residential areas to schools, recreation areas, shopping and employment centers. The first phase included the eastern side of the county, and the County adopted that plan in 2006. The third and final phase of the plan will target the County's rural areas.

"The goal is to help make Baltimore County a better and safer place for walking and bicycling," said County
Executive Jim Smith. "As many as 50 percent of household trips are 3 miles or less and most of them are made by car. The goal is to encourage that short trips be made on foot or by bike, while at the same time promoting recreation, fitness, better health, and environmental sustainability."

Workshop Dates
There will be one workshop in each affected Council District, from 7 - 9 p.m., on the following dates:


Wednesday, April 21 - Council District 3
Cockeysville Middle School
10401 Greenside Drive
Cockeysville, MD 21030

Tuesday April 28 - Council District 1
Catonsville Public Library
1100 Frederick Road
Catonsville, MD 21228

Complete Online Survey
Citizens unable to attend one of the meetings can still provide comments by completing the online survey that is accessible on the project web site, found here:
http://www.baltimorecountymd.gov/Agencies/pla...

Real Estate Trends
I have had the opportunity to attend a number of seminars recently on future housing trends and they all seem to point in the same direction. According to many of these urban planners both the younger generation Y, 25-39 year old and the Baby Boomers will be looking for homes that are closer in requiring less travel to work and less use of the automobile. These people will want somewhat smaller homes with higher end amenities and close to recreational facilities and parks. They are looking for the walk able communities. I have noticed that many are looking at Townhomes and Condo’s.
Both Baltimore County and the state of Maryland are very aggressive in their planning to meet these changing needs. According to a recent Maryland Planning Forum that I also attended, Maryland’s population is expected to grow over the next 20 years from 5.6 million residents to over 7 million. Geographically Maryland ranks 46th in size to other states but we currently are ranked 19th in population. We have one of the highest population of attorney’s and scientist in the United States. Maryland is also recognized as having the best educational system in the country.

Credit Scores

Did you know your credit score is made up of five components? Each component influences a percentage of your credit score.
Here they are, along with a suggestion to help with each one:
Elements of your credit score
1. Paying on time (35 percent): If you have any late accounts, you will want to bring them current as soon as possible. Pay any past-due items and don't miss any payments going forward.
2. Amount and type of debt (30 percent): You should try to get each balance owed on a credit card or loan to be as small a part of the maximum as possible.
3. Length of time you have been using credit (15 percent): Your credit history lengthens as you get older, but accurate, negative information stays on your report for seven years. Even so, positive accounts (those "paid as agreed") that have been open for at least two years on your credit report will help your credit score.
4. Variety of accounts (15 percent): It will help if you can show that you can handle more than one type of credit. Adding different types of loans like an installment loan or a car loan will help. You essentially borrow money that is backed by a savings account and make regular monthly payments to pay it back. Be sure the bank will be reporting the account to the credit bureaus.
5. Number of recent inquiries (5 percent): Don't apply for credit unless you need it.
If you follow these tips, your credit score will improve over time.

Janelle D. Sterner
Mortgage Consultant
Prosperity Mortgage Company
(410)418-8120 Tel
(866)526-3897 Fax
(410)530-4665 Cell

Top Places to Work

According to Baltimore Magazine the following companies rank as the Top Places to Work in the Baltimore Area;

1. Ascend One, Columbia, Maryland
2. Carefirst/Bluecross-Blueshield, Canton & Owings Mills
3. CollabraSpace, Annapolis
4. Euler Hermes ACI, Owings Mills
5. Johns Hopkins Hospital, Baltimore
6. Johns Hopkins Applied Physics Laboratory, Laurel
7. Life Bridge Health, various locations (hospitals) around Baltimore
8. Lockheed Martin, Bethesda
9. Martek Biosciences, Columbia
10. McCormick & Company, Sparks
11. MedStar Health, various locations (hospitals) around Baltimore
12. Merkle, Columbia
13. M&T Bank, Baltimore
15. Northrop Grumman, Linthicum
16. NuStar Energy, Baltimore
17. Raytheon Solipsys, Fulton
18. Tessco Technologies, Timonium/Hunt Valley
19. Under Armour, Locust Point
20. Wegman's Food Markets, Hunt Valley (Comming to Columbia soon)

For more information check out the February 2010 edition of Baltimore Magazine or go to www.baltimoremagazine.net

Catonsville is #1`

According to a recent article in the Baltimore Sun, Catonsville ranks #1 as the hottest real etstae market in Maryland.

Rebates for Energy Efficient Appliances

Appliance Rebate Program: Frequently Asked Questions – UPDATED 12-22-09

I've heard about a "Cash for Clunker" appliance rebate program. Will Maryland be participating?
While the program is not officially called the “Cash for Clunker” appliance program, Maryland is participating in the Department of Energy’s energy efficient appliance rebate program. Maryland submitted an application to the Department of Energy on October 15th for $5.4 million in funding. The program was approved by the Department of Energy in early December, and is set to launch in late winter/early spring 2010.

How do I get an appliance rebate? If you are a customer of BGE, Allegheny Power, Pepco, or Delmarva Power, you can get an appliance rebate through your utility right now. These are mail-in rebates, which means you can purchase the appliance anywhere, fill out a form with the proper documentation, and get a check in the mail. SMECO will be rolling out appliance rebate programs in January 2010. Programs vary by utility. The stimulus funding will be layered on top of the utility programs, to provide consumers with additional rebates on other products. You will be able to take advantage of both the utility appliance rebate and the federal appliance rebate at the same time. All rebates will be handled through the utilities, and rebates are not retroactive.
For more information on the utility programs, visit their websites:
Allegheny Power: http://www.alleghenypower.com/EngConserv/MD/WattWatchers/RebatesRes.asp
BGE: www.bgesmartenergy.com
Delmarva: www.delmarva.com
Pepco: www.pepco.com
SMECO (program not yet available): www.smeco.coop

Which appliances will be rebated with stimulus money?
States were free to choose the type of appliance to rebate, as well as the rebate amount for each product. Maryland will be offering a $300 rebate for ENERGY STAR electric heat pump water heaters, a new and very efficient piece of equipment. Stimulus funds will also provide $50 for super-efficient clothes washers and $25 for super-efficient refrigerators. These dollar amounts are in addition to any rebate offered by the utilities for ENERGY STAR models. BGE, Allegheny, Pepco, and Delmarva Power currently offer other appliance rebates as well; SMECO will offer rebates beginning in January 2010 (see above).

How do I find out which appliances qualify?
ENERGY STAR Electric Heat Pump Water Heaters: Any electric heat pump water heater with the ENERGY STAR logo will qualify. Models can be found here: http://www.energystar.gov/index.cfm?fuseaction=heat_pump.display_products_html
Clothes washers and refrigerators must meet Tier 2 or Tier 3 efficiency standards from the Consortium for Energy Efficiency. Lists of qualifying models can be found in the lists below:
Super-efficient Clothes Washers: http://www.cee1.org/resid/seha/rwsh/rwsh-prod.pdf
Super-efficient Refrigerators: http://www.cee1.org/resid/seha/refrig/files/ref_prod.pdf
MEA will be working with the utilities and manufacturers in the near future to make these lists more consumer-friendly.
Where can I purchase the appliances?
You can purchase qualifying appliances at any store you choose. You will need to submit relevant documentation (receipts, etc) in order to receive your rebate.

When will the program be up and running?
We are looking to launch the program in late winter/early spring 2010. As mentioned above, you may be able to take advantage of the utility programs if you’re looking to purchase appliances before then. The rebate program will not be retroactive.

How will I know when the program launches? MEA will update our website with the most current information. To stay up-to-date about this and other MEA programs, sign up for our newsletter at www.energy.maryland.gov, by clicking on “News and Events.” You will also receive marketing information from your utility provider, in the form of bill inserts, radio ads, etc.

Are there any other sources of rebates or tax credits?
For federal tax credits, visit www.energystar.gov/taxcredits. There are no state tax credits available at this time.
To find out about manufacturer’s rebates available, visit www.energystar.gov, click on “Products,” then click on “Special Offers” (green bar on the right). Enter your zip code for additional information.

What if I’m not a customer of one of those five utilities?
MEA will be offering a simplified rebate program for customers of municipal and cooperative utilities. Look for marketing information on the MEA website or with your utility bills sometime in early 2010 for more information.
For additional information, contact Lauren Swiston at 410-260-7522 or lswiston@energy.state.md.us

Wine Education Series

A Crash Course In Wine
Starting in February, the Bin will hold a 3-part wine education series taught by Laurie Foster, the Wine Coach® and author of The Sipping Point. For more details and to purchase tickets, visit www.thewinecoach.com/baltimore

For more details call the Wine Bin at 410-465-7802 or visit their website at www.winebinec.com

How is the Housing Market

It appears that the housing market in Maryland in leveling off. We are by no means out of the woods yet but I am seeing a little more activity in January than I have experience for the same month in the past. The most active price range seems to be under $400,000.
If you are thinking about buying a new home NOW is the time. The Stimulus Tax Credit for First Time Buyers of up to $8,000 has been extended until the end of April 2010 and second time home buyers can now qualify for a lesser stimulus.

Recycling

Baltimore County is embarking on a single stream recycling program beginning this February. Single stream means that all forms of recycling, paper, plastic, and glass can be recycled together, instead of separate pickups for paper and bottles/cans. Although single stream is not as "pure," it will be easier for residents to recycle. "Recycling is always a better choice than setting items out for trash."