Think about the parking before you buy a home

by Dan Krell
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DanKrell.com
© 2012

In light of the increased attention of predatory towing in Montgomery County, it’s become apparent that parking is one of those things we often take for granted; parking doesn’t seem to be a consideration until we are hassled about finding a spot to leave our car. Sure, we may think ahead about parking when we venture downtown or to the metro, but what about when we get home? Parking can sometimes be a challenge as well as the source of neighbor conflict. When buying a home, make sure you’re aware of the neighborhood parking conditions.

To ensure that residents have a parking space, many townhome and garden condo communities offer at least one, if not two, reserved parking spaces. This may sound good, but if your family has multiple cars parking may still be a challenge. However, if you think parking your extra cars in the unreserved spaces (often labeled “visitor”) solves your problem; consider how many other neighbors who own multiple cars are parking in these spaces as well – which could make the neighborhood feel like you’re parking in a busy downtown area.

Making matters worse, imagine how inconsiderate neighbors or visitors who park in your reserved space can affect your day. Returning home late in the evening to find an unauthorized car in your reserved space, and no other parking spots available can not only be frustrating but leave you angry and resentful.

Parking issues are not only a phenomenon of high density communities, but can also occur in neighborhoods comprised of single family homes. Regardless whether you have a driveway or not, off street parking can sometimes be tricky. Much like the scenario of having an unauthorized car in a reserved parking space: you might encounter situations where people park in your driveway without asking (usually when neighbors have parties), or more often someone blocks the entrance to your driveway making it impossible to leave or enter.

If you’re planning to buy a home, don’t wait until it’s too late to think about parking. Experts recommend you visit potential homes in the evenings and weekends to see how the parking is impacted when most people are home. Circumstances that could impact a neighborhood’s parking availability might include recreational and commercial vehicles, as well as a neighbors’ home based businesses. If you have a chance to interact with some of the neighbors, ask about the parking situation and how the neighborhood copes with parking issues.

Additionally, if you’re considering a home that’s located in a home owners or condo association; the association rules and bylaws are recommended reading. Familiarize yourself with the rules and bylaws so you know the association parking regulations and how the management company deals with unauthorized vehicles.

In many areas there are parking restricted neighborhoods, like some in Montgomery County MD that are included in the Residential Permit Parking Program, which helps limit non-resident parking in neighborhoods that are impacted by nearby high traffic public areas and facilities. Ask your real estate agent about obtaining resident and visitor permits as well as asking about the parking situation.

When purchasing a home you should consider the parking conditions, as well as how the neighborhood deals with unauthorized parking. Many high density communities have strict towing policies, which makes someone think twice about unauthorized parking after being towed. However, most neighborhoods solely rely on the residents’ thoughtfulness of their neighbors.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of November 19, 2012. Using this article without permission is a violation of copyright laws. Copyright © 2012 Dan Krell.

October 31, 2012November 23, 2021

Coping with buyer’s remorse

by Dan Krell
DanKrell.com
© 2012

Coping with buyer’s remorse: regretting your home purchase

Did you ever have the nagging feeling, after buying something like an expensive piece of clothing, that maybe you should’ve saved your money or waited for the sale? If you’ve experienced buyer’s remorse, then you know that doubting feeling. Did you know that the likelihood of experiencing buyer’s remorse increases as the expense of the item purchased increases? Buyer’s remorse from buying a home can sometimes leave you feeling uncertain and hesitant.

Buyer’s remorse is sometimes referred to by consumer experts as post purchase dissonance, and is often caused by a discrepancy between a home buyer’s experiences and their beliefs. Simply stated, buyer’s remorse is when the home buyer feels regret about their home purchase. Although many home buyers may experience buyer’s remorse to varying degrees; not all home buyers experience buyer’s remorse.

Consumer behavior experts concur that the probability of experiencing buyer’s remorse is more likely to occur when the decision is binding and/or has a long term commitment, while there are other viable options available, along with a concerted effort in choosing the perfect home, placing a high level of emotional significance on the purchase, and the buyer’s propensity to experience anxiety.

As a home buyer, you might think that the home buying process is ripe for buyer’s remorse because: a real estate contract is not easy to back out of; you might feel that there is a considerable financial commitment; after making a thoughtful choice of home, you fantasize of the home with the features your home does not have, and with a lower price tag; you have placed an emotional investment on buying the home; and you’re feeling the pressure of the home buying process.

If you’re planning a home purchase, be aware that most people may feel some amount of buyer’s remorse sometime during the home buying process. However you can reduce the negative impact of the experience if you:

Respect the buying process: You should recognize that buying a home can be stressful, and can create feelings of anxiety when the unexpected occurs. Do what you can to minimize any additional stress and pressure created by the demands of buying a home.

Choose the right real estate agent for you: The interaction you have with your agent is subjective. The worst feeling you could have is when your agent is MIA when you need them. Working with a responsive agent, who makes themselves available when you need them, can reduce any additional anxiety that is created from ambiguous situations that can pop up during the process.

Don’t continue searching for homes: Once your offer is accepted, you should stop looking at available homes. You are more likely to increase doubts about your purchase if you compare how homes on the market differ from yours. However, consumer research indicates that your confidence about your purchase increases if you recognize how those homes are similar to yours.

Take what others say with a grain of salt: It’s difficult to be discreet about your home purchase, especially with your family and close friends; and, of course they won’t withhold their opinions about it either. Having the opportunity to listen to another’s view point about the home and the process could solidify your confidence about your home purchase- when you put their input in perspective and recognize that their advice may not apply to your situation.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of October 29, 2012. Using this article without permission is a violation of copyright laws. Copyright © 2012 Dan Krell.
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October 18, 2012June 29, 2019

New laws affect homebuyers and homeowners

Two new laws that went into effect this month will have an effect on home buyers and home owners. One law affects home buyers purchasing foreclosed property, and the other is with regard to the Maryland homestead property tax credit.

First, H.B. 1373 Real Property – Foreclosed Property Registry, which went into effect October 1st, requires that Maryland homes purchased at a foreclosure sale be registered with the State of Maryland. According to the foreclosure registry website a “foreclosure purchaser” must initially register a home within 30 days of the foreclosure sale, and a final registration within 30 days of the recordation of the deed. A “foreclosure purchaser” is defined by H.B. 1373 as being “…the person identified as the purchaser on the report of sale required by Maryland rule 14–305 for a foreclosure sale of residential property.”

You might wonder why a registration is necessary once a foreclosed home is purchased. The registry was an outgrowth of purchased foreclosed homes that remained vacant. Vacant homes are at risk for a variety of problems; and if left vacant and untended for long periods of time can not only become an eyesore, but can risk the health and safety of the immediate neighborhood. Trespassing and infestation is a major concern; the longer a home sits vacant and untended, the probability increases for vandalism, vermin, squatters, and gang activity.

The law is most likely aimed at lenders that purchase back their own foreclosure or bulk purchasers, because at one time it was possible that some of these homes sat untended for long periods of time. In the past, such homes might have been cited for health and safety code violations with the intent to have someone tend to the home. However, since ownership may not have been clear due to the foreclosure process or absence of a point of contact, some of these attempts went unheeded.

For more information or questions about the registry, contact the Maryland Department of Labor, Licensing, and Regulation (www.dllr.state.md.us).

The other law that went into effect this month is H.B. 1081 The Homestead Property Tax Credit Reform Act of 2012. The purpose of the law is to stop the abuse of applying the credit when not applicable. Home owners who are “caught” claiming multiple properties and/or rented properties may have to pay uncollected tax and possibly a penalty.

But enforcement of this law has been questioned, as was reported by Steve Kilar for the Baltimore Sun in his October 1st article (Homestead Credit Penalty Goes Into Effect This Week). Some are concerned if and how the penalty would be applied to those who are “caught” wrongly receiving the homestead credit. Enforcement may, as was reported, rely on the requirement for the State to prove “willful misrepresentation.”

The effort to weed out those who are undeserving of receiving the homestead credit began several years ago, when in 2007 home owners were required to apply to receive the credit. This application process is culminating to a frenzy of home owners who have not yet reapplied. And according to the Maryland Department of Assessments and Taxation, home owners who have yet to apply/reapply for the homestead credit will have until December 31st to submit the application. If you are unsure if you have applied/reapplied, you can check your status by following the instructions on the SDAT website on the homestead credit).

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This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.

By Dan Krell
Copyright © 2012

October 4, 2012

Mold in your home

by Dan Krell © 2012

DanKrell.com

Environmental issues in the home are a concern. Although there are linked health concerns, mold is an environmental issue that is often misunderstood because it can be found almost everywhere and its indoor growth may be managed.

Mold is a fungus; and because there are thousands of types of molds (the exact number is unknown), it is often referred to in the plural. Molds are essentially found everywhere. Molds typically grow outdoors in moist areas and live in soil, on plants, wood, and decaying plant matter; however, mold can also grow indoors if the humidity is high enough, or if there is an unrepaired water leak. Molds are useful in digesting dead plant matter as well as for other purposes; however, exposure to molds can also be a health risk.

Molds reproduce via spores; mold spores are found outdoors and indoors surfaces, and can remain dormant for years before they grow. Mold spores enter the home through doorways, windows, and outdoor vents; as well as hitching a ride into the home by attaching themselves on clothing, pets, and other items that are carried into the home. If the spores land on a damp surface (such as where leaks or flooding may occur in the home) they begin to grow and digest the material. Wet building materials can offer a perfect meal for molds. Molds can thrive on materials made from paper products, cardboard, ceiling tiles, and wood products; however, molds can also grow on many other materials, such as dust, paint, insulation, drywall, carpet, and fabric.

The most common indoor molds are Cladosporium, Penicillium, Aspergillus, and Alternaria. Mold problems in the home can usually be seen and/or smelled. If unimpeded, molds can, over time, eventually destroy the materials where they grow. For this reason, prevention and/or elimination of mold growth in the home can prevent damage to your home and possessions, as well as save you money.

Limiting excess moisture is fundamental to controlling indoor mold growth. Common areas where mold may grow include bathrooms, basements, anywhere condensation and leaks may be found. A common cause for mold growth in the home is uncontrolled humidity. To limit mold in the home, experts recommend: indoor humidity levels should not exceed 50%; use air conditioning and dehumidifier to assist in humidity control; ensure exhaust fans are operational and the home is properly ventilated; carpets should not be used in areas that are susceptible to excess moisture (such as bathrooms); remove/replace previously water logged carpets; and repair any leaks.

Although controlling humidity levels and properly ventilating the home may inhibit mold growth in the home, a problem can still exist. To determine and/or repair a mold issue, a certified mold inspector and/or licensed mold remediation professional should be consulted.

Many people are sensitive to molds and sever reactions may occur; the Institute of Medicine linked indoor mold exposure to upper respiratory symptoms. However, according to the Centers for Disease Control (CDC.gov), the presence of mold isn’t always an indoor health issue. Obviously, a physician should be consulted immediately when symptoms from mold exposure are experienced.

Information for this article was obtained from the Centers for Disease Control (cdc.gov) and the Environmental Protection Agency (epa.gov). Additional information on mold in the home and health implications can be found on their corresponding websites (www.cdc.gov/mold/) and (www.epa.gov/mold/).

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of October 1, 2012. Using this article without permission is a violation of copyright laws. Copyright © 2012 Dan Krell.

September 27, 2012

Home sellers may encouter surprises

by Dan Krell © 2012
DanKrell.com

So you’re planning to list your home in the spring, or maybe your home is already listed for sale…

In an effort to avoid surprises, you consult with your real estate agent and ask many questions. Your agent, also looking forward to a transaction without incident, tries to prepare you for the ups and downs of home selling. No matter how much preparation you and your agent do for the sale, there still can be surprises; here are the three often encountered surprises:

The home buyer failed to qualify for their mortgage:

Real estate agents often do not discuss the truth about lender pre-approval letters (lender pre-approval letters are not all the same). When you receive an offer on your home, there is usually a “pre-approval” letter from a mortgage lender indicating that the buyer is qualified to obtain a mortgage to purchase your home.

Although the pre-approval process typically checks the buyer’s credit, the process sometimes varies when it comes to verifying the buyer’s income and assets. Although many loan officers exercise due diligence and collect income and asset documentation prior to issuing a pre-approval letter; some loan officers feel confident to issue a pre-approval letter solely on the basis of the buyer’s verbal accounting of their income and assets. Make sure your agent is in contact with the buyer’s loan officer; and ask if all the necessary documents have been reviewed before the pre-approval letter was issued.

Unanticipated withholding tax at closing:

Besides negotiating closing costs, your agent will explain that there are additional fees and costs that you should expect to pay at closing. A surprise often awaiting the unsuspecting home seller is a withholding tax; such as the Maryland non-resident seller withholding tax, the Foreign Investment in Real Property Tax Act, and beginning in 2013- the unearned income tax outlined in the Patient Protection and Affordable Care Act of 2010. Additional information can be obtained from the Comptroller of Maryland, and the Internal Revenue Service, and your tax preparer or CPA. Before listing your home for sale, consult your tax preparer or CPA to determine your tax liability for any additional real estate related withholding tax.

Your home does not appraise at contract price:

One of the outcomes of the financial crisis was the Home Valuation Code of Conduct (HVCC). The HVCC was devised to establish increased accountability and independence in the appraisal industry. You might think that since placing additional regulation on the appraisal industry, appraisals should be more consistent. However, there has been much criticism about the inconsistency among appraisals and difficulty in understanding the standards and methodology used in determining a home’s value. The issue may partly stem from appraisal management companies that are sometimes used by lenders to comply with the HVCC, while the issue may also partly stem from lenders imposing specific underwriting guidelines on various loan products. In preparation, your agent should gather valid sales comparables that can be given to the appraiser as rationale for the contract price.

No one like surprises, so hopefully you’re prepared for the ups and downs of selling your home in today’s market. Although some real estate agents may pride themselves on how they handle surprises to put out the “fires;” the truly skilled agent can anticipate most situations to minimize the surprises that can occur during a real estate transaction.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of September 24, 2012. Using this article without permission is a violation of copyright laws. Copyright © 2012 Dan Krell.

by Dan Krell Google+ DanKrell.com © 2012

by Dan Krell DanKrell.com © 2012