Local level home owner and buyer protection

Home owner and buyer consumer protection exists at all levels of government. For example, the creation of the Consumer Financial Protection Bureau (consumerfinance.gov) in 2010 brought together in one department oversight and enforcement for federal consumer financial laws. Likewise, Maryland has a Consumer Protection Division housed within the Office of the Attorney General (www.marylandattorneygeneral.gov); which provides information to assist consumers in making educated decisions, as well as offering mediation services to resolve consumer complaints. Some of the housing related consumer advocacy offered by the CPD includes: the administration of the Home Builder Registration Unit; and education about the Maryland Foreclosure Counseling Services Law, as well as “flipping scams.”

Many local governments also have a number of specific protections for home owners and buyers. An advantage of living in Montgomery County MD is the availability of housing related services and assistance with specific housing issues to home owners, buyers, renters and landlords.

To assist home buyers in understanding the associated costs of home ownership, Montgomery County requires sellers to disclose utility and estimated property tax information. Enacted in 2007, Bill 24-07 requires home sellers to provide an accurate estimate of what the property tax would be for the first full year of ownership. Home sellers and real estate agents access the estimated property tax information from the Montgomery County Office of Consumer Protection website (montgomerycountymd.gov/ocp).

The OCP also enforces the County’s utility bill disclosure law that requires home sellers to provide a history of the prior 12 months of electric, gas, and heating oil bills for a property, or a usage history for the same time period. Additionally, the seller must provide Montgomery County Department of Environmental Protection approved information to help the buyer with energy conservation choices and options. If you’re selling your home, your listing agent can provide you with the approved Greater Capital Area Association of Realtors® forms to fulfill these obligations.

County residents finding themselves at odds with their Home Owners or Condo Association can ask for help from the Office of Common Ownership Communities. Housed within the OCP, the OCOC offers information and a dispute resolution program for home owners, boards, management companies, and managers. The OCOC pledges transparency, integrity, and a commitment to the highest ethical standards.

If you’re buying a new home in Montgomery County, you are provided with an extra layer of protection through Montgomery County Code Chapter 31C, which requires new home builders to be licensed by the Montgomery County OCP as well as provide a new home warranty that meets specific criteria.

If you own rental property or are a tenant within the County, you’ll find the Office of Landlord – Tenant Affairs (housed within the Department of Housing and Community Affairs) a resource of valuable information. Besides publishing a Landlord – Tenant Handbook, the commission provides information on licensing, security deposits, evictions, leases, and rent increases. Besides informing of general rights and responsibilities of landlords and tenants, it offers a free and quick avenue for tenants to seek amicable dispute resolution (http://montgomerycountymd.gov/DHCA/housing/landlordtenant).

Home owners and tenants who have issues with their cable TV provider can seek assistance from the Office of Cable and Broadband Services (montgomerycountymd.gov/cable). Housed within the Office of Technology Services, the “Cable Office” administers the County’s cable TV franchise agreements; the office investigates and resolves subscriber complaints.

Check with your real estate agent about local home owner and buyer protections. Many consumer protection agencies (such as those listed above) have websites where information is posted to educate consumers.

Dan Krell
© 2014

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

May 15, 2014November 23, 2021

Picky home buyers and real estate slowdown

Why would a major real estate industry player predict a slowdown in home sales? The L.A. Times reported on May 5^th (Real estate giant predicts slow home sales for months to come) that Realogy Holdings Corp, the parent company of Coldwell Banker, Century 21 and Sotheby’s, claims that a slowdown in mid and low bracket homes could hurt the brokerage business and could prove to be a difficult 2014.

Meanwhile, a recent “Real-Time Seller Survey” conducted by Redfin (refin.com) indicated that 52.4% of home sellers were confident about selling their homes; however 40.9% of sellers were concerned about affording their next home. This may be why 40.3% of those surveyed planned to price their home above market value – maybe not the best strategy. The May 8^th Business Wire article (Redfin survey: 40% of home sellers plan to price higher than market value) quoted Redfin agent Paul Reid as saying; “Buyers this year are far less tolerant of overpricing, and homes that aren’t priced appropriately are likely to sit on the market until the seller is forced to reduce the price … Buyers often interpret a price drop as a sign there is something wrong with the home, leading some to negotiate even more aggressively or lose interest altogether.”

Economics aside, some experts say that a slowdown is in part due to institutional investors having all but left the market as distressed properties are decreasingly a part of the housing landscape; and the housing market is once again reliant on the owner occupant home buyer – who is often characterized as “picky.”

A lot has been said about “picky home buyers” since 2008, and the fact is that home buyers have not changed much – indeed, they may even be pickier today. It could be that the lessons of the financial crisis are still fresh in their minds; home buyers as group seem to be a hardy and savvy group. 2008 was a transition year, as home buyers shirked distressed properties for homes that exuded value. “Cheap” did not necessarily mean the home was a bargain to those who planned to be owner-occupants. Many home buyers were turned off to short sales and foreclosures, not just because of the process but because of the realization that the combined cost of the home purchase with repairs often exceeded the price of a re-sale that was in move-in condition.

Even though there is a perceived dearth of available homes for sale today, doesn’t mean that home buyers will pony up for an overpriced home. Home buyers are typically looking for a combination of location, quality, and value. According to Lyn Underwood (Home buyer turn-ons and turn-offs; McClatchy-Tribune Business News. April 26, 2014), home buyers are attracted to homes for a number of reasons; some of the top home characteristics include an updated kitchen with stone counters and maple cabinets; an open floor plan; new or refurbished wood floors; and flexible spaces (rooms that can be used for a number of uses).

If you’re selling this spring, don’t take home buyers for granted: don’t over price your home; and stay away from cheap renovations meant to look expensive (buyers are turned off by poor workmanship, sloppy installation, or inferior materials); and keep your home neat and tidy when showing. Your listing agent can provide guidance on preparing and pricing your home to sell in today’s market.

Original published at https://dankrell.com/blog/2014/05/15/picky-home-buyers-and-real-estate-slowdown/

Dan Krell ©
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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. This article was originally published the week of May 12, 2014 (Montgomery County Sentinel). Using this article without permission is a violation of copyright laws. Copyright © Dan Krell.

May 7, 2014September 29, 2019

Big brother is watching – surveillance cameras in home listings

Surveillance technology is everywhere these days; some are obvious and others covert. A growing awareness of government and law enforcement surveillance has become a major aspect of the growing debate of “reasonable expectation of privacy.” However, in a time when many are pushing back against surveillance, home sellers are increasingly turning to video cameras to protect their homes, valuables, and trust. And as the technology becomes cheaper and easier to use, the trend could become the norm.

The thought of the home seller remotely viewing your activity may seem creepy at some level; however, you might reconsider if you caught the recent ABC’s 20/20 segment “Caught on Tape: Real Estate Agents Gone Wild.” Highlighted were real estate agents who were caught on camera violating the trust of the seller; including: a Maryland real estate agent who was caught rummaging through a woman’s underwear drawer; the New Jersey agents who used their listing as a rendezvous point for sex; and a number of other agents caught stealing jewelry and prescription medicines from trusting home sellers. Real estate broker and author Brendon DeSimone, who was interviewed about how to protect your home during the listing period, suggested that the video camera can help you keep your agent honest; he stated: “just ‘cause they’ve done a lot of deals, it doesn’t mean they’re trustworthy.”

According to a Supercircuits.com infographic (The History of Video Security Cameras), the idea of “video monitoring” was first widely spread with the 1949 publication of George Orwell’s “1984.” Two years later, the first tape video recorder is operational. Since then, there have been mega leaps in technology making cameras smaller and easier to use. It wasn’t until 1992 when the “nanny cam” was introduced; before then, surveillance cameras were primarily used for law enforcement purposes and commercial applications. The “IP” enabled camera with onboard video analytics was introduced in 2005 as the internet technology and usage greatly expanded. Today, surveillance cameras can be placed almost anywhere and watched from any remote location.

Don’t get carried away with your voyeurism just yet; there are legal implications when using surveillance cameras, as well as possibly interfering with your negotiations. Rather than using the cameras for protection, there are some home sellers who are tempted to use the videos as a way of understanding the buyer by analyzing their gestures.

Does a home buyer have a reasonable expectation of privacy when viewing your home? After all, many sellers vacate the house so the buyer and their agent can view the home on their own; although sometimes they are escorted by the listing agent. Even though there has yet to be some ruling or professional opinion from a real estate board about the matter; an increasing number of home sellers are using obvious and observable cameras to monitor their homes. Aside from the “broker blooper reel” that was put together for 20/20, it seems as if the cameras have helped some home sellers go after rogue real estate agents.

For most people, a notice indicating they are being video recorded is enough to alter their behavior; sometimes a notice is enough to deter theft. However, there are some whose bad behavior is not deterred, even when looking directly at a camera. If you’re considering using surveillance cameras in your home during the listing period, you should consult an attorney about legal implications.

By Dan Krell
Copyright © 2014

February 14, 2014December 13, 2022

The magic of 4 to sell a home

For a successful home sale, you need to focus on four areas…

Spring is rapidly approaching – are you one of the many home owners listing your home for sale this year? Sure, last year may have seemed like a breakthrough, but the still recovering housing market is just as quirky as The Doctor’s TARDIS. And unless you consider condition, preparation, pricing, and marketing; your home sale could fall flat.

A home’s condition can affect a home’s sale price (sometimes significantly), and is often overlooked by home sellers and listing agents. It is not uncommon for owners to put off home maintenance, especially after the financial crisis of 2008; housing experts estimate that home improvement spending decreased about 28% between 2007 and 2011. Deferred maintenance can deter some home buyers, while motivating others to make a low offer. You can get an idea of potential cosmetic, mechanical, and structural issues by having a pre-listing home inspection.

Whether or not you choose to address deferred maintenance and repairs prior to listing, preparation is required to get ready for home buyer viewings. One of the most important things to do to prepare your home is to declutter. Decluttering is often overwhelming because sellers expect to make the home immaculate; but really, the purpose to decluttering is to give rooms a neat and spacious feel. Decluttering will make you decide which items to keep, what to throw out, give away, or put in storage.

Home staging is a way to create a “vision” for home buyers. Home staging can get pricey if you hire a staging professional and rent furniture. But it doesn’t have to be expensive; “do it yourself stagers” can often transform a home with little or no money. If your home is vacant, inexpensive rentals can be used as room “place holders,” to help convey a room’s size and use to buyers.

Pricing your home correctly can mean the difference between a successful sale and languishing on the market. A common mistake that occurs in a recovering market is the eagerness to price high; but buyer push back can be an abrupt awakening to the realities of the housing market – making you wonder why your home is not selling. Be careful of the listing agent who intentionally over-prices your home, this is an old technique to persuade you to sign a listing agreement; the flip side is listing with an agent who intentionally prices the home too low, promising a “quick” sale (which only makes the sale easy for the agent).

Marketing a home sale has changed significantly in the last five years. Gone are the days of “set it and forget it.” Creative agents are constantly seeking avenues to publicize and promote listings. A sales strategy can determine the correct positioning for the home; while implantation of a marketing plan can include new and imaginative methods, such as placement in specialty magazines and websites, video, and even open house “parties.”

Many don’t realize that the internet is where a majority of home buyers now congregate, viewing your MLS listing across hundreds of websites. To bolster online appeal, make certain your agent uses professional pictures, inspired home descriptions, and complete MLS information. Be wary of new marketing technology, which often has mixed results; for example: “virtual staging” is a technology than can enhance online appeal by electronically staging a home, but can flop when buyers expect to see what is pictured.

by Dan Krell ©
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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. This article was originally published the week of February 10, 2014 (Montgomery County Sentinel). Using this article without permission is a violation of copyright laws. Copyright © Dan Krell.

January 24, 2014July 25, 2019

Home buyers become internet detectives

Home buyers have access to more information in today’s internet connected society than ever before. Home buyers have become internet detectives, doing their home buying research online.

Years ago, a buyer would have to act as a detective to verify or uncover more information about a home; their sleuthing could take up lots of time at the court house and library, as well as interviewing neighbors. Besides the seemingly countless number of online resources for home searches, buyers today also have many internet resources available to them to obtain home and neighborhood information.

Home buyers are internet detectives.

Neighborhood and demographic information are now readily available online in many home search websites. For example, neighborhood information currently displayed includes information about a zip code that includes: home sale statistics; general population demographics; economic, school information and environmental information; and even information about quality of life. Other popular search sites with lots of valuable information include (but not limited to): zillow.com, trulia.com, and redfin.com.

Many home buyers also look to greatschools.org as a reference for local school information. The website describes itself as a national non-profit whose mission is to “inspire and support families to champion their children’s education – at school, at home and in their community…”

As interest in the paranormal has increased, more people are interested in knowing if someone died in their home. For a fee, diedinhouse.com offers a report that could include: if a death occurred in the home, the name of the deceased, cause of death, list of previous residents, and possible information about the death.

Besides commercial websites; state, county and municipality websites also offer an abundance of information. For example, some of the local agencies that maintain websites hold valuable data to home buyers and owners. For example, the Montgomery County Department of Housing and Community Affairs’ eProperty Data Mining Tool. The tool allows you to search multiple State and County databases for information about a home. Information that may be included: Department of Assessments and Taxation Real Property, code enforcement, permits, and Montgomery County Police.

Home buyers who are curious about neighborhood crime can find a number of commercial websites that map crime and offender information; however, to get accurate and timely information, you should probably look to the local police departments. By directing specific questions to the police by visiting local precincts, you can obtain a wealth of information. However, much of the information can also be viewed online: For example, the Montgomery County Police website has links to local crime statistics and even active warrants. The site also has a link to the sex offender registry (which is maintained by the Maryland Department of Public Safety and Correctional Services) as well as information about receiving alerts when an offender moves into your zip code.

Another local agency that offers information is the Montgomery County Department of Permitting Services. The website offers a data search tool that can display recent permit applications and permit status for a specific address. The site also includes zoning and code information. However, online County Master Plan (montgomeryplanning.org) information is offered by Montgomery County Planning Department, and can be viewed at.

As online resources grow, anyone can join the “internet detectives.” Although there are many online resources available, the websites listed here are not inclusive; I am not endorsing any commercial websites. Besides being cautious when visiting websites; you should acknowledge that many commercial sites are not 100% accurate, as disclaimers will disclose that technical and/ or reporting errors can occur in the collection and/or reporting of data.

Original located at https://dankrell.com/blog/2014/01/24/home-buyers-become-internet-detectives/

By Dan Krell
Copyright © 2014