How Real Estate Investors Differ From Regular Home Buyers

Most homes are purchased by families, couples, or individuals who buy a house to live in. It may be their primary residence or a vacation home. They may be downsizing to a smaller house or looking for a bigger place for a growing family. 

Traditional home buyers typically work with a real estate agent to find a home in their desired neighborhood or city. They look for houses they can imagine themselves living in now and in the future. Many home buyers want a move-in ready home, rather than a fixer-upper, and often ask for repairs to be made before they close on the sale.

If a family finds their dream home, they may be willing to pay more than the house is listed at if other buyers are interested, too. This can drive up the price of homes in a market. A homebuyer may have in the back of their mind that the home in an area that might sell for more than they paid for it, but their primary reason for buying the home is not to make money.

All residential real estate investors have one thing in common: they hope to turn a profit. 

A house that interests a real estate investor may have little appeal to home buyers as-is. This includes homes that need repairs or maintenance, haven’t been updated in decades, have a costly structural defect to restoration, or landscaping that needs a lot of work. Real estate investors are more likely than the typical homeowner to have the cash on hand to make those fixes. They can see beyond the problems to the home’s true potential – and their potential profit. 

Real estate investors may ask you right off the bat how much you owe on your mortgage. This helps them to understand your bottom line. The typical home buyer will never ask you this question because it isn’t a factor in their decision to buy your home. You’ll want to consult a real estate attorney to review any contract you plan to sign when selling your house. 

Before you sell to a real estate investor, meet with a real estate agent or two to find out what your house is worth. Ask about market trends and anticipated development in the area. You’ll go into discussions with real estate investors armed with more knowledge to make a smart decision. 

We at 8 Day Home Sale know how much your home means to you, that’s why we promise to give you a premium, personalized experience every step of the way. Let us help you skip the traditional home selling hassles, so you can get excited about what’s next. Looking to sell your house fast Maryland, Baltimore, Washington, DC and Virginia call us at 240-847-0859 for a Same-Day Cash Offer on Your House

Prince George’s County leads Maryland for Home Price Gains

Prince George’s County, Maryland, remains the most affordable housing market in the D.C. region, but prices there are rising at the fastest pace in suburban Maryland.

Prince George’s is home to Six Flags America, the Capitol Wheel, and the Gaylord National Resort and Convention Center – not to mention a number of parks and gardens full of green hiking trails. The county also lays claim to the University of Maryland’s main campus in College Park, with more than 40,000 students.

In September 2019, the median price of what sold in Prince George’s County was $315,000. That’s $21,000, or 7%, more than the median price of what sold in Prince George’s County a year ago.

The median home price in Prince George’s County is still almost $275,000 lower than the median price in Arlington County, Virginia, the region’s most expensive county for home prices.

In Prince George’s County, two positive trends for sellers over the past year are that the median sale price has increased and the average days on the market has decreased. However, the decrease in units sold and sold dollar volume – especially when paired with the 16.5% increase in new listings – may be cause for concern for investors looking to sell freshly rehabbed properties in the coming months.

For sellers in Prince George’s County, buyers are willing to pay full price. The list-versus-sale price in the county last month was 99.5%, and what sold went under contract in an average of 32 days. The number of homes on the market in Prince George’s County is down 34% from last fall.

If you are interested in selling your home fast Maryland, DC and Virginia residents, there is no better time than now. So call 8 Day Home Sale today at 240-847-0859 for a Same-Day Cash Offer on Your House

Buying a House in Howard County, Maryland

Why is it a good idea to buy a home or sell a home in Howard County? Well the Baltimore Sun says “Howard County has a distinct and thriving collection of communities, old and new, stable and growing. In Columbia, nearly a quarter of the land is preserved as open space. Woods, parkland, playgrounds and other public spaces are required by covenant to remain undeveloped”.

Howard County is ranked #1 in Best Counties for Families in America according to Niche 

Living in Howard County offers residents a suburban feel and most residents own their homes. In Howard County there are a lot of restaurants, coffee shops, and parks. Many families and young professionals live in Howard County and residents tend to be liberal. Howard County is highly sought out with young families due to their highly rated public schools 

Today, much of the rolling farmland has been replaced by stately new homes on spacious lots, though rural areas remain. The western end of the county offers some of the highest-priced housing in the area. Local amenities include a library, a senior center and a regional park with a 50,000-square-foot, multi-use community center.

Whether you are seeking an efficiency apartment or a luxurious single-family home, there are a variety of options for homeowners and renters. Howard County remains a highly desirable area with a strong real estate market, according to Metropolitan Regional Information Systems, which tracks home sales throughout the region. The company reported the median price of a home sold in Howard County as about $424,950 in September 2018.

Although costs in this part of the country are higher than average, some assistance is available for those in need. Federally subsidized housing is available through Heritage Housing Partners, which has emphasized the need to include affordable housing in Columbia redevelopment plans and the county.

If you are interested in selling your home fast Maryland, DC and Virginia residents so that you can move into the #1 ranked County, please call us.

Hot and Affordable Maryland Neighborhoods to Buy a House In

Finding a place to put some roots down isn’t easy anywhere. Home buying involves countless factors to be considered and loads of stress no matter where you decide to buy, but it’s especially hard if you’re looking in the Greater Washington D.C., Maryland, Virginia locations.

Living near the city offers unbeatable convenience, whether it cuts down commute time or keeps you close to the nation’s monuments, everyone wants a different aspect of city life. Even if it comes at a cost. But for most families looking to settle down near Washington D.C., the main problem is space. It’s the hunt for space, a garage, a yard, and uncrowded streets that ultimately draw people a little farther away from the heart of the city and into neighborhoods that may not have been on the radar in years past but are becoming more and more appealing as prices go down and new developments arise.

So what makes these neighborhoods attractive?

Southeast D.C.’s Marshall Heights has been catching fire in terms of affordability, but what most don’t know is that just bordering this hot neighborhood on the Maryland side is a great community with an unbeatable price-per-square-foot value in the 20743-zip code.

Value is increasing in neighborhoods across Prince George’s country as well, which has historically been cheaper than other D.C. communities. The Hyattsville area offers drop-dead gorgeous cape cods and Victorians that are charming and reasonably priced, considering proximity to the city. District Heights is a budget-friendly community with a $204,500 median home price which is 30% lower than the Maryland average, and not much added commute time.

You can’t really go wrong picking the right Greater D.C. school district for your kids. Marlow Heights, Hyattsville, and most Prince George’s County schools spend an impressive $16,054 per student compared to the country’s average $12,383 and has an impressive student to teacher ratio.

While the District of Columbia and Alexandria have been the places to watch for in the past, these Maryland neighborhoods are worth keeping an eye out for, something tells us you should take a look at these neighborhoods sooner rather than later.

Landlord and Tenant Laws in Maryland

When it comes to renting a house in the Maryland location, every state has its own laws laid out for both landlords and tenants.  These laws protect both parties in various situations and provide the framework for rental agreements. If you’re looking to rent a house in Maryland, here are a few of the most important laws you need to know.

Security Deposits

Maryland law puts a limit on how much money a landlord can require for a security deposit.  A landlord cannot hold more than two months’ rent as a deposit and is required to return money owed within 45 days of the tenant vacating the property.  A landlord who asks for more than the total of two months’ rent is breaking the law.

Withholding Rent

Did you know that in some cases, it is within your rights to withhold your rent?  A rental agreement between a tenant and landlord lays out all the responsibilities of both parties.  If the landlord does not uphold their end of the bargain, you can hold your rent money until they do.  For instance, if a landlord refuses to take care of an imperative repair, such as a broken water heater, you can keep your rent until they do.

Tenant Protections

A number of laws are specifically geared toward protecting the tenant.  One example a law that protect tenants from retaliation of the landlord when practicing their legal rights.  If a tenant complains to the authorities about unsafe living conditions, landlords are not allowed to take action against them.  Evictions, handling abandoned property, and fair housing rights are also all covered through Maryland laws.

In addition to state and federal laws, Maryland cities or counties could have their own laws as well.  When looking for property to rent in Maryland, take the time to read tenant/landlord laws for the state as well as the county and town you’re looking to move to.  

What Should I Do if I Am in Tax Default in Maryland, Virginia, or Washington DC

Though we don’t always want to think about the worst case scenarios of homeownership, they can happen. Tax default is one of them.

What is Tax Default?

Tax default happens when you don’t pay property taxes for a duration of time set by your county. The past-due amount becomes what is known as a tax lien on your house. Your house cannot be sold without paying off the lien. Eventually, the lien can be sold to someone at auction, called a “Tax Sale”. The winning bidder will collect interest on the tax lien and eventually be able to take over ownership of your house, if you don’t pay off your delinquent tax amount with interest.

What Should You Do?

If you know are in tax default or know a tax sale is coming, your options are limited. Presumably, you don’t have the money to pay the back taxes. If this is the case and you have equity in your house, your best bet is to sell.

Since the typical home-selling process can take up to 6-months before a buyer closes on the house, you want to consider real estate investment companies who will pay, in cash, for the house in just a few days time. That way, you will receive the proper compensation for the value of your home, and be free of the impending governmental burden that will be used against you for back taxes, fees, and interest.

At 8 Day Home Sale, we are here to help, and we buy houses in Maryland, Virginia, Baltimore, and Washington DC for cash. Contact us if you are facing tax default.

What to Watch Out for When You are Closing on Your House Sale in Maryland

As a house seller, there isn’t a bigger relief than to finally close on selling your house. You managed to find the right buyer and got the deal you wanted, so there are just a few steps to go through and you will be ready to move on. After all you’ve been through to sell this house, you probably see the closing as the easiest part. Well, it can be, if everything runs smoothly, but it’s usually easier said than done. It’s best to prepare for worst case scenarios or at least know what things could go wrong so you can be prepared to handle them. Don’t know what to watch out for when you are closing on your house sale in Maryland? Then the following details may prove to be more than useful:

Take care of all the repairs you have to do

If the buyer agreement states that you are going to take care of making the repairs necessary to pass on the house in good condition, then you should do them now. It is true that no one feels motivated to work on a house that is almost sold, but leaving the repairs to the last minute is not a good option at all. Make sure you allow sufficient time to make all the needed repairs or there may be problems during the buyer’s final walkthrough. Save all the invoices released by the contractors you hired and receipts for the items you purchased so you will have proof of everything you did in case the buyer contests the repairs before you actually close the deal.

Get ready for the final walkthrough

Just before the closing, in most cases 24 hours prior to the closing, the buyer accompanied by his agent will walk through each room of the house. You should not be present at the final walkthrough, which doesn’t last for more than half an hour in most cases. Make sure that everything is in order. They will look to see whether you repaired what you promised to repair and if the house has any major issues that they don’t know about. If they find something wrong, you will be notified right away, getting the chance to repair the problem or settle for a trade.

Check out the closing documents

If everything goes according to plan, all you’re left to do is to read and sign papers to close your house sale in Maryland. Although it may not be that exciting to read all the papers, do know that some are more important than others. For instance, you need to read the settlement statement, because it contains the amount of money you agreed upon with the buyer and the tax implications of earning such a sum through selling your house. You’ll have to check the numbers to see whether they correspond with your verbal agreement, so you can point out any issues to your attorney or real estate agent in a timely manner.

Renegotiations

There are cases in which the buyer would like to renegotiate right before closing. No one wishes to get to this point, but you might just listen to what the buyer has to say since you gotten this far. Maybe you can settle if you agree to offer the dishwasher and dryer. If the buyer wishes to get a smaller price, then maybe there’s no other option but to delay the closing until you manage to reach another settlement or find a solution to the problem. It’s easier to negotiate than file an expensive, time consuming lawsuit.

Free Lease Agreement Template

So you’ve bought your first rental property. You spent months of researching homes, crunching numbers for positive cash flow, visiting homes on the market, calling realtors, negotiating with loan officers, considering property management companies, reading countless rental property tips blogs, etc. The process was tough, but you’ve made it to the next phase: landing your first tenants.

After positing rental listings on Craigslist and Zillow, you’ve found some potential rental property tenants. You then realize: I don’t have a lease agreement! Real estate laws are complicated and vary from state to state and county to county. You don’t have the money to hire an expensive contract lawyer.

Don’t fret! 8 Day Home Sale has put together a Lease Agreement template. While this lease agreement template is tailored for Maryland, it is generic enough to apply to most states/counties. In addition to establishing a standard rental contract based on monthly payments between the landlord and seller, the lease agreement:

  • Enables the landlord to require a security deposit
  • Protects the landlord from liabilities i.e. breaking of local laws
  • Prohibits unsafe activities i.e. smoking
  • Absolves the landlord of appliance maintenance responsibilities

The lease agreement can be easily modified and clearly marks where details need to be filled in. The rental agreement template is available for download as a docx and pdf.

Download: .docx or .pdf