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Real Estate Transactions Archives

Maryland and distressed home sales

In February, Maryland posted the largest percentage of distressed home sales of any state in the country at 19.9 percent, with the Baltimore-Columbia-Towson metropolitan area also posting the largest at 19.8 percent. Distressed sales include short sales and real-estate owned properties. Nationwide, distressed sales accounted for 11.1 percent of all homes that were sold.

A short sale poses risks for the unwary buyer

Many real estate agents have seen the joy their buyers feel at finally finding the home of their dreams quickly change when they are told the property is a short sale. There are homeowners throughout Maryland who are selling property for less than the amount owed on the mortgage. As in other parts of the country, real estate professionals refer to these types of real estate transactions as short sales.

Real estate investment strategies for entrepreneurs

Successful entrepreneurs in Maryland and around the country are generally people of action who make decisions quickly when an opportunity presents itself. While behaving in this way can be fine when the consequences of a poor decision are relatively benign, people may wish to take a more prudent and pragmatic approach when entering the challenging and unpredictable world of real estate investment.

Government changes rules on luxury real estate purchases

Real estate investors in Maryland may be interested in a new federal rule that will require the identification of real estate buyers who purchase luxury properties for cash in both Miami and Manhattan. The rule will require that those purchasing homes in Miami of $1 million or more and those purchasing Manhattan properties of $3 million or more be identified to the Treasury Department.

Home prices rising at fast pace

There are some positive signs for Maryland real estate investors, as home prices are continuing to rise. On Dec. 29, an announcement was made that the S&P/Case-Shiller index of property values rose by 5.5 percent for 20 U.S. cities from October 2014 to October 2015. Previously, data for the same cities showed that home prices had risen by 5.4 percent for the year ended September 2015. Home prices rose by 5.2 percent nationally.

The impact of an interest rate increase on real estate

Stories about falling unemployment rates and a rebounding economy have led many in Maryland to believe that the worst of the 2008 financial crisis is now behind them, but fears that interest rates may soon be on the rise once again have led to nervousness among some real estate investors. One of the most relied upon ways to determine real estate market value is looking at the spread between Treasury yields and capitalization rates. According to experts, this spread is usually about 270 basis points, but low rates and a strong real estate market have seen this spread grow to about 300 basis points.

The importance of location in determining real estate values

Real estate brokers in Maryland and around the country are often quick to point out that location is the most important factor in determining residential property values. However, the full impact that location can have on the price of a home may be surprising. A house that would sell for $100,000 or less in some parts of the country could command a million dollar price tag in an exclusive oceanfront community, and even renovated properties with high curb appeal may languish unsold in some neighborhoods.