Apparently there are fake cashier’s checks circulating, which puts the title company in very bad position.

A title company relies on the money from the cashier’s check or wire in order to pay off many things. The seller is due their funds, if they are receiving any, and the title company writes that check.

The title company has to pay off the seller’s mortgage, if they have one.

There are County and State fees that the title company also pays.

If there is a cashier’s check that was supposed to cover most of that amount, and it is not valid money, then they are left with a huge debt that they have to collect, either directly or through court.

Though it is not certain how these cashier’s checks have been created, there have been enough of them that policies have been changed.

Alison Noger of North American Title in Towson wrote a post for me last year about why it is a good idea to wire funds to a title company in a Baltimore real estate transaction. Now company policy requires a wire over a certain amount of money, as many Baltimore title companies are doing.

So, Baltimore homebuyers, please understand if your title company requires a wire transfer for the money you need to bring to settlement. It is for your protection as well.

For more information about buying a home in Baltimore, please contact me! I’d love to help!

“Desktop Valuations” are a quick way to look at the potential value of a home, but they do not take many factors into consideration, and some of the things they DO use to determine a value should not be used!

I answer questions on the Zillow site, and so many times the questions come from a place of, “Why, in my townhouse community where the houses are very much the same, is my neighbor’s worth $XXX and mine is worth $45,000 less despite mine being an end unit with an additional bump-out?”

That is a very good question, and one that doesn’t have a good answer. The algorithm takes into account the taxes you pay and when the house last changed hands. If a house hasn’t changed hands in some time, the taxes generally are lower, and that would bring the “value” of that house down. That just doesn’t seem right, does it?

Next to this is an example of the “range” of value for one house I found. If a professional real estate agent walked into your house and told you they thought it might sell for somewhere between $391,000 and $740,000, would you feel comfortable that the agent knew your market?

How about the houses “for sale nearby.” Do these look like they belong together as a picture of a particular Towson community to you? They seem to be a random selection of homes that happen to be in the same zip code.

The biggest issue is the quality of the Baltimore Zestimates.

As you can see here, Baltimore Zestimates are within 5% of an actual sales price only 42.6% of the time. They are within 10% of an actual sales price 66.4% of the time. They are within 20% of a sales price 83% of the time. These are with a median error of 6.1%.

Think about what that means.

On a $400,000 sales price, the Zestimate may show $380,000 or $420,000 — but again, that is only 42.6% of the time.

To get above 50%, you have to go within 10% of the actual sales price. So on that same $400,000 house, a Zestimate 66.4% of the time will be from $360,000-440,000.

To get to the closer 83%, you have to bring that out to 20% of a sales price. That could drop the Zestimate down to $320,000. Would you as a Baltimore seller be happy with that if your house were truly worth $400,000? How about a homebuyer? Would a Baltimore homebuyer be happy to pay $480,000 for a house that is really worth $400,000? Probably not. And the buyer’s mortgage company most likely wouldn’t let it happen, because an actual appraisal would most likely be close to the true market value of $400,000.

And don’t forget — that is with a median error of 6.1%, or approximately $24,000 give-or-take, on that $400,000 house.

Real estate everywhere is LOCAL. Hyper-local even.

Baltimore real estate values can be different street-by-street!

For a true understanding of your house’s value, don’t count on automated valuation websites. Contact me for a true idea of you Baltimore house value. I’d love to help!

Would you like to know more and see additional Zillow issues in the Baltimore area? See my past posts on incorrect Towson Zillow Zestimates for details.

Photo Courtesy Curry Architects and Towson Patch

The development is being put together by Heritage Properties of Towson and leasing will be done by The Cordish Companies.

Towson Circle III would be located on the 4.2 acre lot at the corner of East Joppa, Virginia, and Pennsylvania Avenues. There is currently a building there and the now-closed Burger King also sits on the lot. Here is how it looks today:

Not only will there be things to do and places to eat, there will be a 862 space parking garage to handle the expected large volume of cars.

Here is a draft of plans from the Greater Towson Council of Community Associations.

So far, according to Cordish, five bistro-type eateries have already agreed to move into the space. There will be some chain restaurants, as well as individually owned & operated ones.

This could be a great way to rebuild that area of Downtown Towson that is currently wasted space. Hopefully this will be a good & successful fit!

The new members need to sign up by Feburary 29, 2012 or the project will be terminated.

According to the Towson Patch article about the issue, the Club has $318,000 in funds raised by members joining, but in applying for a new loan, plus paying for an engineering contract, they need to secure more members to make it happen.

The cost, according to the paperwork from their website, is $1,975 per household plus $250 application fee and $275 initiation fee. The charter membership may be transferable when you sell your Towson home.

Summer fees range from $495 individual memberships to $685 family memberships, with lower Senior memberships also available.

The Towson Swim Club was originally slated to open Memorial Day 2011. It was then postponed to Memorial Day 2012 when a private investor backed out. Now the opening has been pushed back another year to 2013, and only if 135 new members join by February 29, 2012.

I do truly hope that West Towson homeowners can come together and get this pool financed. It would be a wonderful additional bonus to living in West Towson.

According to an article in the Baltimore Business Journal, the Greater Baltimore region jumped 40%, while the more local Baltimore-Towson region rose 6%.

The December 2011 data for contracts for future residential construction rising a very large amount — $116 million versus $39.2 million in December 2010.

Towson new homes under construction, I am sure, helped a lot with these local numbers. The Towson Green community is well under way and should be delivering new homes in the upcoming months.

New construction tends to be a good indicator of a recovering market because builders won’t build if buyers aren’t there to buy them.

If you’d like more information on Towson new homes or Baltimore new homes, contact me. We’d love to help!

The article does clarify, though, that prices are still expected to drop in many areas, but there should be more home sales, and more houses being built, which are usually indicators of the beginnings of a recovery.

The reason prices are expected to fall in many areas would be due to the large number of foreclosures still out there. Many were delayed because of the “robo-signing” scandal last year, but will be moved forward this year.

The economy is an important piece in the housing recovery. Last month, the unemployment rate dropped to 8.5%, and 200,000 jobs were added. These are good signs for the economy, and housing usually follows economic recovery.

There are many factors that affect the housing recovery, and Baltimore real estate is extremely local. Some neighborhoods, like those I’ve noted in Towson home sales in December and Timonium December home sales, have seen some increases or at least stabilization.

Real estate is extremely local — as much as street-by-street or neighborhood-by-neighborhood.

To find out where your Baltimore house currently stands in the housing recovery, please contact me. I would be happy to help!

Average sales price was actually UP in 21286 to $330,255 from $246,288 last December. Sales were down slightly, with only 11 homes changing hands versus 15 last year, but that makes the average price even more significant.

Three townhouses in Towson sold with an average price of $181,667, but again, just one foreclosure or short sale could bring the average down tremendously when so few homes sold.

Eight detached homes sold, with an average sales price of $385,975. This tells me that the homes sold were most likely in Towson neighborhoods like Hampton, Wiltondale, Temfield, or Hunt Crest Estates.

Here is the detailed 21286 home sales report for December 2011.

Towson 21204 has also held its’ value, and had a good December, as I wrote in my Towson Patch post.

For more information on your Towson house value, contact me. I’d be happy to help!

The five highest home sales in Baltimore County, according to MRIS, our local multiple listing system, included a few farms, and most had a large amount of acreage.

5. 905 Hayfields Rd, Cockeysville, MD 21030. $3,475,000. Listed and sold by Krauss Real Property Brokerage. This is a gorgeous newly-built home, that was finished around Summer 2011. Including the finished lower level, there are eight bedrooms, seven full and two half baths. It has 2.28 acres off a private drive, the home overlooking Hayfields Golf Course. Beautifully appointed, and spectacular views!

4. 2700 Butler Road, Reisterstown, MD 21136. $3,750,000. Listed and sold by Coldwell Banker Residential Brokerage. A “French Country Estate” home built in 2005, this is located up a hill and shared/private drive off Butler Road. Located on 53 acres, it has five bedrooms, 4 full and one half bath, and overlooks beautiful Worthington Valley.

3. 12757 Greenspring Avenue, Reisterstown, MD 21136. $3,900,000. Listed and sold by Yerman, Witman, Gaines & Conklin. This home was built in 1940, as is part of the “Vanderbilt Estate,” according to the listing. It is situated off a very private drive on over 138 acres. There are eight bedrooms, eight full four half baths. It boasts an in-ground pool, and it even has a bowling lane and full gym in the lower level!

2. 7309 Brightside Road, Baltimore, MD 21212. $4,200,000. Listed and sold by Coldwell Banker Residential Brokerage. This spectacular home was built in 1880, and has been gracefully and exquisitely restored. I have been in this house a few times, and it is truly gorgeous. It showcases 11 fireplaces (yes, 11!), seven bedrooms, six full and two half baths. It has 5.46 acres in the 21212 zip code!

And the highest sale in Baltimore County for 2011:

1. 2509 Butler Road, Reisterstown, MD 21136. $9,500,000. It was listed & sold simultaneously by Krauss Real Property Brokerage, which is why there are not many details or photos about the home. It is situated on 144.49 acres near the Falls Road Corridor, and looks to be a working farm, with rolling acres, animals, and convenient location. It has four bedrooms and seven full baths.

Much of Baltimore County real estate has been holding its’ own, despite the downturn in many areas. Each neighborhood is VERY different, so general overviews are not good indicators of your value. Contact me for more details on your Baltimore County house value. I would be happy to help!

This time 36 Baltimore County restaurants are participating!

Lunch and Dinner Prices will be  $10.12, $15.12, $20.12, $25.12, $30.12, or $35.12. You will need to check with the individual restaurants as to their pricing.

Participating Towson restaurants are 7West, Cafe Troia, The Melting Pot, and Razorbacks.

Parkville restaurants include Pappas and McAvoys.

There are a number of Timonium restaurants involved, including Basta Pasta, The Charred Rib, Christopher Daniel, Liberatore’s (as well as their location in Perry Hall), Michael’s Cafe, Pasta Blitz, The Peppermill, and Tark’s Grill.

Cockeysville and Hunt Valley restaurants are represented by Barrett’s Grill, The Oregon Grille, and Patrick’s Restaurant and Pub.

Northern Baltimore County showcases the Milton Inn in Sparks, who first began Baltimore County Restaurant Week in summer 2010, Friendly Farm in Upperco, and the Grille at Peerce’s in Phoenix.

There is a great group from East Baltimore County in Dundalk, Essex, Perry Hall, and White Marsh.

There are a number also from the West Side of Baltimore County, with those in Owings Mills, Catonsville and Pikesville, as well as Randallstown, Glyndon, and Randallstown.

Here is a full list of the participating restaurants.

Baltimore Restaurant Week Winter 2012 is January 20-29, so they overlap for two days. So enjoy good eats in Baltimore County and then head to Downtown Baltimore for more!

Home sales activity was down to 4.4 million homes last month, a drop from the pace set from December 2011 This Month in Real Estate of 4.97 million. It makes me wonder about the number of sales that may have been canceled last month. It is up, though, according to the numbers, 12% over the same period of 2010. The median home sale price was $164,000. The average interest rate for December was 3.91%, down from November.

The Top News, presented by Jay Papasan, is about home buyers, and the surprising things they look for in a home.

Most homebuyers start their searches online, and it takes, on average, about three months to find a home. Weather is less of a factor than in past years, because so many buyers view the house and the areas online to see if they are places they would want to consider.

In News You Can Use with Bryon Ellington, he discusses why listing your house NOW instead of waiting for the Spring may be a good decision.

1) As noted earlier, it takes, on average, about three months for a buyer to find their house. That will be Spring — so you are listing for those who are looking to settle in that time frame!

2) You have less competition. Many people wait to list in the Spring. If you list now, there are fewer houses for buyers to choose from — which may make yours more attractive!

3) Lenders, appraisers, movers, home inspectors, contractors, and other vendors also see a decline in business during these months. Therefore your sale/home/buyer gets more attention.

If you’d like more information on whether now is a good time to sell your house in Towson, contact me. I would be happy to help!