December 2014
Lower shore home sales post increase All three counties report surge in activity in October
DONATION The proceeds from a 50/50 raffle held during the Coastal Association of Realtors’ October Business Card Exchange were donated to the Believe in Tomorrow Children’s Foundation in Ocean City. At the presentation, from left, are CAR Education and Communications Administrator, Veronica Bishop; CAR Events Committee members, Kathy Lowing and Pam Wadler; Believe in Tomorrow Program Manager, Wayne Littleton and October Business Card Exchange co-sponsor, Will Esham. Not pictured is October Business Card Exchange co-sponsor, Jason Cook.
Ready to help first-time buyers The road to first-time homeownership can be bumpy, but local real estate professionals are trained and ready to help. Rely on a local Realtor to put your mind at ease and make this journey not only easy, but exciting and rewarding. Be credit worthy The better your credit score, the better your chance of getting a lowerrate mortgage. Check your credit report regularly for mistakes and for any problems that can be corrected. If you have little to no credit, be sure to start building it by getting a credit card or by putting your cell phone in your name. Peter Scott, a loan officer with SunTrust Mortgage in Ocean City, said it’s important to have established credit before applying for a mortgage to purchase a home. “How does a lender decide you’re a good credit risk if you don’t have something to base it on?” Scott said. “Start working early to get bills in your name and, by and large, pay those bills on time.” You can get a free report from each of the three credit bureaus once a year at www.annualcreditreport.com.
Choose a local Realtor The benefits of utilizing a local Realtor are numerous. A Realtor will advocate and negotiate on your behalf to ensure your home-buying experience is as easy and successful as possible. But how do you choose a Realtor? Which one is right for you? Here are some ways to learn more about a Realtor before you hire them:
• Recent clients – Ask agents to provide a list of references with contact information from last year’s client pool. • Licensing – Check with the state regulatory board to ensure the person is licensed and to see if they’ve had any disciplinary actions or complaints. • Association membership – Members of the Coastal Association of Realtors are held to the highest of industry standards. Be sure your real estate professional is a member. • Designations – A Realtor with designations has taken additional, specialized training to serve you better. • Experience – Real estate – like many other professions – is
mostly learned on the job. Ask the Realtor how long they’ve been in the business and how many homes they sold last year, among other questions. Figure your buying budget When planning for your purchase, there’s so much more to consider than the down payment, and your Realtor and lender can help ensure you are successful in the long run. Other costs include the appraisal, loan origination fees, title insurance, and the inspection, among others. In addition to these costs, it’s important to look at all of your expenses when budgeting for a home purchase, such as insurance, utilities, the cost of commuting, and upgrades. Joy Snyder, a Realtor for Condominium Realty in Ocean City, said financial counseling in relation to a buyer’s budget can be highly beneficial. “You should examine your overall budget, including the age of your vehicle, the stability of your job, and your life circumstances, such as whether or not you plan to have children,” Snyder said. “There are always unknown factors in home ownership that can crop See HELP Page 6
The latest figures from the Coastal Association of Realtors (CAR) reflects great news for the local industry – sales are up in all three counties on the lower Eastern Shore. The impetus behind this surge reflects even better news for local buyers – interest rates for fixed mortgages are down. According to the association’s local market statistics, Sheila Dodson October 2014 saw Executive Director an increase in both contracts and settlements in Somerset, Wicomico, and Worcester counties as compared to the same time last year. New contracts, or pending sales, of single-family homes and condominiums went up 18.8 percent and new settlements, or completed transactions went up 3.9 percent. Lauren Bunting, of Bunting Realty in Berlin, said a continued decrease in interest rates for fixed-rate mortgages could be the impetus for this encouraging uptick in home sales. Freddie Mac has reported that the average interest rate for a 30-year fixed rate mortgage is 3.98 percent, down from 4.10 percent last October. “We saw solid interest and activity throughout the summer months, and the recent drop in interest rates has created a welcome sense of urgency and affordability,” Bunting said. “With the lower interest rates, buyers can up their purchase price and it opens them up to more options when looking for a new home.” “Following several months of increasing contracts, we’ve been expecting a surge in settlement numbers as these sales came to fruition,” said Sheila Dodson, executive director of CAR. “Each month, our local statistics reflect a more active market, which indicates a healthier local economy.” Average days on the market for single-family homes and condominiums in all three counties saw a decrease in October, compared to September, from 109 to 104. Visit www.coastalrealtors.org for more information about CAR’s local housing statistics. Coastal Association of Realtors is the leading local advocacy group in See CAR Page 12