Questions regarding to house buying procedure in MD (Easton: for sale, real estate)

[info123]

Hi, all:

I am moving down to the area from New York City for a new job, and thinking of buying a house quickly there. Just have some question regarding to the procedure since the rules there seems slightly different.

1. I know a real estate lawyer is not required in MD for the transaction (A must in NY). then who is going to prepare and review the contract paper works? Given the facts that the legal paper is so important, don't I need to hire someone to handle that?

2. The selling commission down MD is much more expensive than that of NY. I heard it's normally 3% to seller's listing agent, another 3% to buyer's agent. I just sold my house in New York City and I only paid 3% grand total to both my listing agent and the buyer's agent. So, if I find a house I like, can I get a deeper price negatiation space if I tell the seller that I won't use a buyer's agent? Otherwise, I can find someone as my buyer's agent who is willing to share the 3% commision.

3. Regarding to the property tax, is it based on sales price? Does it get adjusted(raised) every year? I am going to buy in MG county.

4. Regarding to the closing cost, what's the about number? Is it based on sales price or mortgage amount?

Thanks very much for all your input!

Happy holidays!

[lscalder]

Since you are new to Maryland I think its best for you to get a Real Estate agent because if the seller have an agent they will take advantage of you because you do not know the law in Maryland and they might feel they have the upper hand in the transaction. Now if the seller is selling FSBO then you might not need an agent. Alot of settlement companies have lawyers who review the contract. You might want to ask the title company of the Lwayer can review the contract for you. Also your Loan Officer will also review your contract as well. Tax is base upon the sales price but you can have the seller pay all transfer,record taxes.
Closing cost is base upon the Loan amount and not the sales price.
You are in Maryland property tax increase. Maryland government love to increase tax.

[EastonMaryland]

Hello
A quick note about buying in Maryland from a Maryland Real Estate Agent.
Commissions are negotiated between seller and brokers and vary dependent on the area. They range between 4-7 on average with no fixed rates either by tradition or outside setting of rates by real estate boards or commisions.
Maryland realtors use a form supplied by the Maryland Real Estate Commission. Attorneys can and should review that contract for the buyers. An attorney is not required however, because the contract is very straight forward.
Not using a buyers agent is allowed in Maryland. However, if you aren;t using a buyers agent understand that all brokers and broker agents will be representing the sellers. In short, you have no advocate to represent your position in the negotiations. Will sellers concede a better price without a buyer's agent? Not necessarily. This is a buyer's market and offers are accepted with allowance for buyer agent representation. Keep in mind, there are a lot of homes for sale and what may be "saved" will become a liability if the home is not properly inspected, and all of the other administration of the contract is not properly handled. I would recommend a buyer agent in any market however.
Property taxes will be based on the sales price and adjusted periodically based on city, county location. Usually they will stay pretty stable until houses begin to appreciate again and your neighbor's homes start to sell for higher prices or you do a renovation that adjust its base price.
Closing costs will be based on the closing price. Don't forget to ask for the Maryland First Time Homebuyer concession on closing costs when you negotiate your offer with the seller. See, you might want to think about usinng a buyer agent.
Good Luck!

Originally Posted by info123

Hi, all:

I am moving down to the area from New York City for a new job, and thinking of buying a house quickly there. Just have some question regarding to the procedure since the rules there seems slightly different.

1. I know a real estate lawyer is not required in MD for the transaction (A must in NY). then who is going to prepare and review the contract paper works? Given the facts that the legal paper is so important, don't I need to hire someone to handle that?

2. The selling commission down MD is much more expensive than that of NY. I heard it's normally 3% to seller's listing agent, another 3% to buyer's agent. I just sold my house in New York City and I only paid 3% grand total to both my listing agent and the buyer's agent. So, if I find a house I like, can I get a deeper price negatiation space if I tell the seller that I won't use a buyer's agent? Otherwise, I can find someone as my buyer's agent who is willing to share the 3% commision.

3. Regarding to the property tax, is it based on sales price? Does it get adjusted(raised) every year? I am going to buy in MG county.

4. Regarding to the closing cost, what's the about number? Is it based on sales price or mortgage amount?

Thanks very much for all your input!

Happy holidays!

[george12345]

Closing costs will be based on the closing price. Don't forget to ask for the Maryland First Time Homebuyer concession on closing costs when you negotiate your offer with the seller. See, you might want to think about usinng a buyer agent.
Good Luck![/quote]


i thought closing costs were based on the LOAN AMOUNT?

can you tell me more about the MD first time homebuyer concession?

[info123]

Thanks EastonMaryland and lscalder for your input, it's very helpful.

I think you're right that I 'd better use a buyer agent anyway.

[info123]

By the way, what's exact Maryland First Time Homebuyer concession? I owned a house in NYC before, can I still be considered first time home buyer in MD?

Thanks!