All Forum Posts by: Ray Slack

I'm selling some rentals as well. 2 properties that i have as rentals turned over and instead of getting a new tenant I put them on the Market for sale.. The market in my area is still at pre covid19 prices which are at a peak almost back to pre 2007 levels.  Not really thinking there will be a huge crash, but I do think that there will more buying opportunities in the next 6-12 months. So, I would prefer not to have all my cash tied up in real estate.  I can always replace my rentals.

PG county has several different type of residential zoning RR , r-55 r-80 RMU ect.  They also just rewrote the entire zoning code and added some other zoning classification is the property is within a certain distance from a metro stop.  You can find the zoning on www.pgatlas . com

The larger issue is that PG county right now is very anti development.. Basically, they make it incredibly expensive to build new home.. There is a school impact fee, a police and fire fighters impact fee, and many others on each newly constructed home.  It amounts to about $25,000 per lot in just impact fees, then you have the development costs. Which very depending on a few factors. 

How large are the lots? in terms of sq footage or acreage?  Are they located in Bowie?  There are also FAR rules (Floor to area) and minimum front foot widths for each zone to be able to build.  Also do the lots front an existing road? if you have to build the road to access the lots that would add to the development cost (reducing the value of the lots)

Ray

Really Depends on your situation.. Are you living in the property or renting it out?  House hacking in the Ft Meade area can be really good as there are a lot of military that rent rooms.   AA county has better schools than PG if you have kids and will be living in the house.  I just finished a flip in Severn about 1 mile from the base..  Also bought a buy and hold that I am going to divide into separate rental units also in Severn about 10 miles from the base. 

You really can't go by price per sq foot.. You need to break down and line item what needs to be done to each property.. Are you talking about a full gut to the studs rehab?

What area of PG county? Would recommend Apex Management if it's in Bowie or Lanham area.. They specialize in those areas.. I don't think she takes any properties other than those areas.

My questions is on the MAR contract the clause that deals with how closing fees are split between the buyer and Seller.  The clause is below:  I would interpret this to mean that unless there are any title defects or encumbrances on the property then the title company can not charge the seller any fees and the buyer would be responsible for the title search and all closing fees.. Anyone challenged a title company trying to charge the seller a closing fee or settlement fee under this MAR contract?

Thanks

Ray

24. SETTLEMENT COSTS: Buyer agrees to pay all settlement costs and charges including, but not limited to, all Lender's fees in connection herewith, including title examination and title insurance fees, loan insurance premiums, all document preparation and recording fees, notary fees, survey fees where required, and all recording charges, except those incident to clearing existing encumbrances or title defects, except if Buyer is a Veteran obtaining VA financing, those prohibited to be paid by a Veteran obtaining VA financing,which prohibited charges shall be paid by Seller. Buyer Broker flat fee cannot be charged to Buyer nor to Seller per VA Reg. Part 38 CFR 36.4313(b).

So, the 1. 6 million sale was also for a 30 year old home in original condition? Was there any other differences? When you get into higher end homes some things can bring a huge price fluctuation either up or down.  double lot, extremly private lot, over the top renovation all can bring a property sales price over the market price.  Also, things you don't really think about in entry level homes can drastically reduce the price of higher end homes, like being on a busy street, being next to or close to high voltage electrical power lines. A wet or bad draining lot.  Comparing a house's selling price to it's assessed value is just a bad practice in my opinion. Most higher end homes have been extensively updated and this isn't usually taken into account with assessed value.. Use SOLD comps only.. and make sure and look at the pictures and discrption of the sold comps.   Also, with a large home you have much higher carry costs.  To make money as a flip I would say you have to buy at least 70-75% of market value in it's current condition.  On a last note, your offer price should be based on what numbers work for you.. 1st Make sure you get your comps right, then make sure you get your renovations numbers right..  In a larger house I would recommend cleaning the house really well and get a renovation estimate and sell it as is with the renovation estimate.. That way they can do exactly what they want in the renovation. 

PG COUNTY HAS A PLANNER OF THE DAY  On staff each day.. you need to go down the county in person to speak with them.. they can answer your questions.  Most of very nice and helpful.

Call the city permitting or code enforcement office and ask them.

You should probably start with the city the property is located in..