When you are selling your home, one of the problems that can occur when the buyer has a home inspection performed, involves underground storage tanks. Occasionally, we run into an underground storage tank (UST) and sometimes they are used for gasoline, but most often they are used for heating oil.
Underground tanks are subject to moisture and rusting can lead to leaks due to failure of the integrity of the tank. Leaking gasoline and heating oil can contaminate ground water, so they are an environmental concern. Most states have regulations regarding these underground storage tanks, so check with your state and local jurisdiction to see what the regulations are for removal or abandonment.  According to Maryland’s Department of the Environment, they recommend tanks that are 25 years old or more be replaced with above ground tanks.

If a property is found to have an underground storage tank one way of testing the tank’s integrity and its associated piping, is to have a professional contractor who specializes in UST’s to perform a pressure test to determine if the tank is leaking. Additionally, a soil test around the area of the tank may be performed to determine if there has been any contamination. If it has been disclosed to the buyer that the property has a UST, a potential buyer will have to make a personal decision based on the information at hand, to consider making the removal and replacement of the UST with an above ground tank a condition of the contract or excepting the existing buried oil 

 

tank. 
A careful inspection should be made to determine if an abandoned UST exists. Occasionally a situation occurs where sometime in the past, a UST will be replaced with an above ground tank or the HVAC system will be changed to an alternative fuel and in either case the old UST will be abandoned in place. Sometimes the current seller may not even be aware of this. These abandoned tanks can be problematic, especially if heating oil was left in the tank. Even if there is no oil in the tank, it may be advisable to remove the abandoned tank. Old tanks may be found to be abandoned in place by removing all oil and filling the tank with cement, sand or a slurry mixture. If in the time since abandonment took place the integrity of the tank failed and heating oil (or gasoline) has leaked into the soil, a regulated removal and environmental clean up will most likely be necessary. The clean up will often require removal of all contaminated soil from the site and disposal of the soil as required by the state and or local government.
We hope that this raises awareness of the problems that can occur when an underground storage tank exists. The information presented here is by no means the entirety of the subject or complete in scope and should be construed as a limited presentation involving USTs. Always consult with a professional in the field and also with your state and local government.
Note: The United States Environmental Protection Agency (EPA) does not regulate residential underground oil tanks.

If you are selling your home and would like to learn more about other tips and concerns, the DVD Strategies for Selling Your Home is available online at ShowMeHowVideos.com

Starting in 1998 we started tracking the annual market statistics for Anne Arundel County, MD and have compiled them every year through last year’s 2010 stats.

A review shows the build up in sales peaking in 2005 and the descent from that highpoint to current volume levels which are similar to those of 2001. However a quick check shows that units sold in 2010 are only around 62% of those sold in 2001, whereas the average sold price was approximately 40% lower at $211,428 compared to 2010’s average sold price of $352,358.

To see the complete overview click > HERE.

Price recently reduced to just $299,900 on this beautiful home in water privileged community. Close to Annapolis, MD, get all the details here – Home for Sale 

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Charles Kraus, GRI Associate Broker  -  Coldwell Banker Residential Brokerage  -  Annapolis, MD
                   email: ck@mris.com  -  web: CharlesKraus  -  blog: TheBayHomes

The National Association of Realtors (R) has just unveiled its new website "HouseLogic" a single source of relevant and timely articles and tools about every aspect of homeownership. We've included a new page on our blog where you can access HouseLogic whenever you visit us. Check it today and see the valuable resources available to you now!  

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From the The National Association of Realtors® 2010 Profile of Home Buyers and Sellers - Here are a few highlights on buyers from the report:

Characteristics of Home Buyers

• 50 percent of recent home buyers were first –time buyers
• The typical first-time buyer was 30 years old, while the typical repeat buyer was 49 years old.
• The 2009 median household income of buyers was $72,200, while the median income for first-time buyers was $59,900 and $87,000 among repeat buyers.
• For 1/3 of the recent home buyers, the primary reason for their home purchase was a desire to own a home.

Characteristic of Homes Purchased

• New home purchases were at the lowest level in nine years – down to 15 percent of all home purchases
• The typical home purchased was 1,780 square feet in size, was built in 1990, had three bedrooms and two bathrooms.
• Seventy-seven of home buyers purchased a detached single family home.
• When considering the home purchase, commuting costs were considered very important or somewhat important by 76 percent of home buyers.

Home Search Process

• For more than 1/3 of home buyers, the first step was to look online for properties and overall 9 out of 10 home buyers used the internet to search for homes.
• Real estate agents were viewed as a very useful information source by 81 percent of buyers who used an agent while searching for a home.
• The typical home buyer searched for 12 weeks and viewed 12 homes.
• Eighty-three percent of home buyers purchased their home through a real estate agent and eighty-seven percent said they would use their agent again in the future.

Buyer Financing

• Ninety-one percent of home buyers financed their recent home purchase.
• First-time buyers typically financed 96 percent of their home purchase, while repeat buyers financed 86 percent of their home purchase.
• Seventy-one percent of all home buyers and ninety-three percent of first-time home buyers used the tax credit during their home purchase.
• Forty-six percent of home buyers reported that they have made some sacrifices such as reducing spending on luxury items, entertainment or clothing.

Charles Kraus, Associate Broker – Coldwell Banker Residential Brokerage -  Annapolis, MD
                                                                Equal Housing Opportunity 

Office (410) 919-2642  email: ck@mris.com   web: CharlesKraus.net

From the The National Association of Realtors® 2010 Profile of Home Buyers and Sellers – Here are a few highlights on sellers from the report.

• The typical seller lived in their home eight years before selling.
• Eight-eight percent of sellers were assisted by a real estate agent when selling their home.
• Forty-four percent of sellers offered incentives to attract buyers, most often assistance with home warranty policies and closing costs.
• Eighty-six percent of sellers were at least somewhat satisfied with their selling experience.
• Forty-one percent of sellers who used a real estate agent found their agents through a referral from friends or family and 23 percent used the agent they worked with previously to buy or sell a home.
• Ninety-one percent of sellers reported that their home was listed or advertised on the internet and topped the methods  used to market the home. Social networking of properties rose from 2 to 5 percent, while print newspaper ad use among sellers using an agent declined from 37 to 28 percent.
• The share of home sellers who sold their home without the assistance of a real estate agent was 9 percent. More than fifty percent of them knew the buyer prior to the home purchase.
• Twenty-three percent of For Sale By Owner (FSBO) sellers reported getting the price right was the most difficult task, while eighteen percent reported preparing or fixing up the home for sale was their most difficult task.
• One in five FSBO home sales transactions is a mobile or manufactured home.
• Eight-one percent of all sellers sold a detached single family home.
• Recent sellers typically sold their homes for 96 percent of the listing price and 57 percent reported they reduced the asking price at least once.

Charles Kraus           Coldwell Banker Residential Brokerage              Annapolis, MD
                                         Equal Housing Opportunity 

Office: (410) 919-2642         email: ck@mris.com          web: http://charleskraus.net

 

Quite a few years ago when home inspections were just becoming more commonplace, we had one of our listings inspected by a very competent, knowledgeable and professional inspector. He found so many things wrong with the house that it “killed the deal”.

Upon review of the overwhelming list of repairs, the seller complained about how the inspector made the sale fall apart. They wanted to know what I was going to do about it.

My response was, “Mr. Seller, it is unfortunate that  this happened, however we now have a list of items which we can repair so this doesn’t happen with the next buyer we have. After all, would you want to buy a house with this many things wrong with it?”

I think he was taken aback, but he begrudgingly agreed that yes he could see that these repairs needed to be made and so he set about taking care of them, albeit this time by exclusively using professional licensed contractors and tradesman.

The very next offer we accepted also had a home inspection and there were still a few minor things to repair, but it was a short list and the seller completed those repairs and we had a successful settlement. All ended well, except for the survey, but that’s another story. (We worked that one out too.)

When it was all over, my wife and partner asked me, “Would you use that first home inspector who found so many things wrong with the house?” I replied “Absolutely! When representing our buyer clients we want the very best inspector!”

Well, that was nearly 20 years ago and we’re still using that same home inspector today and he’s inspected over 8,000 homes in his storied career. Today, we recommend a pre-inspection to our seller clients to head off any repair surprises.

When you are looking for an agent to help you buy or sell your home, be sure to work with one who brings the very best team of affiliates and service providers to the table. You’ll be glad you did!

Charles Kraus, GRI, Associate Broker
Coldwell Banker Residential Brokerage
Annapolis Plaza - Office: 410-224-2200 ext 2642
ck@mris.com     - Cell:    443-822-0700
Equal Housing Opportunity

1. Interest Rates –Interest rates are near historic lows. Low interest rates increase the affordability of housing by allowing a qualified buyer to purchase a higher price home or by making the monthly payment lower. 
2. Tax deductions – the United States tax code allows an interest and property tax deduction for homeowner/taxpayers.
3. Affordability Index – In 1975 the Housing Affordability Index was established and right now the affordability rating is its best since it started in 1975. The affordability index looks at, among other things, interest rates, housing prices and income levels in determining affordability.
4. Inventory level – In a seller’s market, buyers compete for fewer listings and often pay more and get less. When inventory levels are high, which is the case right now, buyers have better choice, get a better price and terms when buying. 
5. Stability – Owning a home allows the owner the freedom of making changes to their home; the ability to manage the monthly payments and the stability of owning an asset.
6. Closing Help – FHA, VA, and Conventional loan programs allow the seller to contribute towards financing concessions for the buyer. The seller’s contribution can be used for buyer’s closing costs, pre-paid items or interest rate buy down.
7. FHA loan changes – Currently, a FHA allows a seller to 6% of the sales price in financing concessions, however the amount will be reduced to 3% later this year; the date has not been announced yet. The annual MIP for FHA loans may also be going up this year and that will increase the buyer’s monthly payment. Buyers who buy now will pay the current lower fees. 
8. Financial Planning – a homeowner can borrow up to $100,000 above their acquisition debt and deduct the interest regardless of what purpose the money is used. This is a great opportunity to consolidate debt at a lower interest rate and be able to make the interest deductible that otherwise may not have been.
9. Tax Advantage – A capital gain exclusion allows qualified homeowners to make a profit on their home without having to pay tax on the gain. Check with your tax advisor for current details.
10. Financial Advantage – Home owners can borrow against the equity in their home without incurring taxes on the transaction. Additionally, borrowing against home equity is not capital gains income. 

Most economists are predicting that Interest rates are going up in the near future. Although the home buyer tax credit helped absorb some of the housing inventory and increase sales, other economic forces may in the short term cause interest rates to rise. Additionally, inflation may soon begin to cause increases in housing prices.

Recognizing the current buying conditions and buying a home now will prove to be a great move for those taking advantage of the historic high affordability that exists right NOW!