“According to Robert Smith, director of the State Department of Assessment and Taxation (SDAT) for Worcester County, most residential property owners in Ocean City will see their values decline by an average of [...]]]> The Maryland Coast Dispatch had an article Friday reporting another decline in the taxable value of Ocean City Maryland property values:

“According to Robert Smith, director of the State Department of Assessment and Taxation (SDAT) for Worcester County, most residential property owners in Ocean City will see their values decline by an average of 12 to 15 percent since the last reassessment three years ago.”

“The values are continuing downward as expected, but maybe not as much as the last three years,” said Smith this week. “The angle of decline is less steep than it was. We saw residential property values in the county decline by as much as 17 to 20 percent over the last few years, but Ocean City’s average decline this time around is coming in at 12 to 15 percent.”

The full article –

http://mdcoastdispatch.com/articles/2011/12/02/Top-Stories/15-Decrease-In-Property-Values-Reported-In-OC

“A long Coastal Highway empty shops, malls and signs reading “restaurant for rent” reflect a decline of retailers in Ocean City. At the same time, West Ocean City has become the [...]]]> Ocean City Today is reporting what many have noticed with concern along Coastal Highway in Ocean City- business have left and are leaving:

“A long Coastal Highway empty shops, malls and signs reading “restaurant for rent” reflect a decline of retailers in Ocean City. At the same time, West Ocean City has become the “land of strip malls,” with small shopping centers popping up along Route 50, Route 611, Sunset Avenue and elsewhere.”

This is an important issue for the future of Ocean City. The article is the first of a three-part series planned by Ocean City Today focusing on growth in Worcester County,Maryland, and is certainly worth a read.

The full article –

http://www.oceancitytoday.net/news/2011-04-08/Business/Moving_for_the_MONEY.html

“An ongoing local and possible federal investigation… for various resort area condominium associations…”

The Dispatch article raises the following question for those currently owning an Ocean City Maryland [...]]]> Ocean City’s Maryland Coast Dispatch reported yesterday that federal and local authorities may be investigating alleged improprieties in the management of  Ocean City Maryland area condominium projects:

“An ongoing local and possible federal investigation… for various resort area condominium associations…”

The Dispatch article raises the following question for those currently owning an Ocean City Maryland area condominium unit and others considering the purchase of one:

“There are hundreds of condo associations in the resort area and most have property managers and accountants to handle their books. Some are licensed and bonded, while others are not.

This is an important consideration that any prospective condominium buyer must take in account, among others, when considering an Ocean City condominium purchase.  Other important considerations include:

* The Delinquency Rate.   What percentage of the owners may be behind on their condo fees?

* The Occupancy Rate.   What percentage of the units are owner occupied. What percentage are second homes?

* The Status of Any Pending Litigation.  Are there any pending lawsuits that may subject the condominium association to liability?

Now, more than ever, not only must the borrower and property qualify with the lender, but the condominium association and project itself must also qualify with the lender’s underwriting guidelines. Now, more than ever, prospective purchasers should proceed with caution and careful guidance from appropriate professionals representing their interests when considering, reviewing and evaluating the purchase of a condominium or HOA.

The full Maryland Coastal Dispatch article –

http://www.mdcoastdispatch.com/articles/2011/03/04/Top-Stories/Probe-Sparks-Condo-Management-Concerns

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“Welcome, Out-of-Towners!

Out-of-state buyers tend to pay more than locals for properties of equal [...]]]> Yahoo Finance has an interesting article on buyer and seller attitudes when buying and selling real estate. Looks like it is genuine, based on real research.  Of particular interest to buyers of Ocean City Maryland properties, was this quote:

“Welcome, Out-of-Towners!

Out-of-state buyers tend to pay more than locals for properties of equal value, particularly when they come from states with higher real estate prices, according to a study from Brigham Young University. Researchers looked at apartment sales in the Phoenix metropolitan area-2,854 transactions from 1990 to 2002-and found that, on average, out-of-state buyers paid more than 5 percent more than their in-state counterparts.

BYU’s Grant McQueen says it often makes economic sense for out-of-state buyers to find homes fast, even if it means shelling out more money than if they shopped more or negotiated longer. Otherwise, they can end up paying more in travel costs than they save on the price of the home. The other reason, though, is less rational: In what’s known as “anchoring,” buyers tend to pay more for a home when they’re used to paying a higher price elsewhere.“

This is a phenomenon that has always been in play here in the greater Ocean City Ocean Pines Maryland real estate marketplace, but never more than the past 10 years and especially during the peak of the bubble.  Yet another compelling reason for Ocean City condominium and home buyers to trust the guidance of a seasoned exclusive buyer agent when making pricing decisions on any offer.

The full article –

http://realestate.yahoo.com/promo/the-psychology-of-real-estate.html

“If you are in the market for flood insurance or might need a policy soon to qualify for a mortgage, don’t wait to buy it.

Existing policies [...]]]> The Baltimore Sun is reporting that unless Congress extends it, the National Flood Insurance Program will expire May 31 — the day before hurricane season starts:

“If you are in the market for flood insurance or might need a policy soon to qualify for a mortgage, don’t wait to buy it.

Existing policies would remain in effect, but consumers wouldn’t be able to buy and renew policies or increase their coverage.

Standard homeowners’ policies don’t cover flooding. The 42-year-old federal program covers damage from events such as heavy rains, melting snow and coastal storm surges. The maximum homeowner limits are $250,000 for a house and $100,000 for contents, although some private insurers offer coverage once federal caps are reached.”

The full article –

http://www.baltimoresun.com/business/money/bs-bz-ambrose-flood-insurance-20100419,0,3861019.story

“Locally however, Worcester County is below both the state and national average for foreclosure properties, but, according to Robert Smith, [...]]]> The Maryland Coast Dispatch had an interesting article this Friday about the impact of, what might be, a potential tsunami of Ocean City Maryland resort condominium and home foreclosures and REOs in the future:

“Locally however, Worcester County is below both the state and national average for foreclosure properties, but, according to Robert Smith, supervisor of Worcester County Assessments, there is reason to be concerned on both the short term and the long term, as far as what your house is potentially worth.

“Foreclosures aren’t the driving force yet when it comes to what properties are being assessed at, but it could very possibly end up that way if things don’t improve,” said Smith. “Right now, foreclosures are looked at, but not factored into the equation when we are assessing a property, but that could change if numbers continue to rise.”

To date in 2010, 22 of the 113 condominiums (excluding new construction) that have been sold so far are foreclosed properties.

In Ocean Pines of the 25 single-family homes that have sold this year, five were foreclosures.

Smith says that buyers are in some cases, opting to drive the price down during negotiations based on the foreclosure or short sale properties in the neighborhood or area. He says that even though real estate numbers are starting to pick up, the price that properties are being sold for will have long-term effects on future assessments and tax revenues.”

The fall of prices and the effects of REOs and foreclosures, for anyone who is considering buying an Ocean City Maryland area property, will probably be the biggest story of this decade– just like price increases during the bubble were the biggest story of the last decade.

Stay tuned. This story has a number of chapters left.

The full article–

http://www.mdcoastdispatch.com/article.php?cid=37&id=8484

“Worcester County can expect $10.4 million less in property tax revenue in the next fiscal year compared to the current, according to recent land reassessment [...]]]> The Maryland Coast Dispatch had an article yesterday on the effects of the popping of the housing bubble on Worcester County Maryland property tax assessment values and tax revenues:

“Worcester County can expect $10.4 million less in property tax revenue in the next fiscal year compared to the current, according to recent land reassessment numbers.

The just completed reassessments in the Berlin and Ocean Pines areas, roughly the north end of Worcester County, excluding Ocean City, show a 36-percent decline in property market value.

Much of the decline can be attributed to falling property values in the Glen Riddle development, (Worcester County Chief Financial Officer Harold) Higgins noted. Homes in the $300,000 to $800,000 range are at the greatest risk for value reductions.

Worcester County, with a 20-percent reduction overall, lost more value in the recent reassessments than any other county in Maryland except Frederick, which lost 22 percent of its cash value.

House values in Ocean Pines declined 12 percent to 39 percent on average, Commissioner Judy Boggs noted. Overall, the greater Ocean Pines area shows a 20-percent decline.”

The full article -

http://www.mdcoastdispatch.com/article.php?cid=30&id=7969

“Before you move, take a few minutes [...]]]> I’ve often thought that many homebuyers seem way too comfortable with way too little due diligence prior to making an offer on a property.  I recently came across this article which addresses some of the other considerations Ocean City Maryland area home buyers should concern themselves with:

“Before you move, take a few minutes to make sure you’re well-acquainted with your new city and neighborhood.

Learn how to evaluate your new home’s vulnerability to thieves, research the history of your house…

Look up sex offenders to find the safest neighborhood and zip code for your kids.

If you suspect your… (prospective) neighbor… of suspicious activity, run a criminal background check…

Check your old home’s value or the general neighborhood value of your future community…

Compare school districts and find public school rankings…

Run local crime reports so you know which neighborhoods and cities are safest.

Beyond safety, you’ll want to make sure your new community has lots to offer in terms of social activities, grocery stores and more. Use… local guides…”

These tools are worth a bookmark and a careful review with your buyer agent–

http://www.criminaljusticeusa.com/blog/2009/50-tools-to-research-your-new-home-neighborhood-and-community/

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