Now comes the Fisher family of Hatley, Wis., as reported by the Associated Press:

Fed up that their mailbox was smashed four times in two weeks, Greg Fisher and his son set up a middle-of-the-night stakeout to catch the vandals -- and it worked. Four teens were caught after a high speed chase.

Lt. Randy Albert of the local sheriff's department in Wisconsin does not recommend trying this at home.

Posted by Jamie Smith Hopkins at 7:48 AM | Permalink | Comments (0)
                    

From Reuters:

Michael Jackson's famed Neverland Valley Ranch in California will be foreclosed and sold on March 19 unless the pop star pays a balance of nearly $25 million, property records showed on Tuesday.

The buyer is New Stream Capital, the plaintiff in the foreclosure action. It lent over the past two years slightly more than $40 million to Veronica Hearst, stepmom to famous kidnap victim Patty Hearst.

Posted by Jamie Smith Hopkins at 6:24 AM | Permalink | Comments (1)
                    

But Motley Fool contributor Marko Djuranovic has a piece this week arguing against such a swoon. He thinks "most homes are probably priced near their fair value." He says housing costs have risen in large part because new homes are bigger and generally more expensive to construct than they were a generation ago, not because builders are taking huge profits:

This is important because it creates a floor for the price at which homebuilders will be willing to create additional inventory. Buyers will thus be faced with builders willing to slash prices drastically on existing inventory but unwilling to offer similar discounts on future projects.

One thing seems certain: The debate over prices -- whether they're artificially high, and if so, how much -- won't be resolved soon.

Posted by Jamie Smith Hopkins at 10:46 AM | Permalink | Comments (15)
                    

The state Department of Labor, Licensing and Regulation said that loan servicers made several promises today about moves to help cut down on the rapidly rising number of foreclosures. The services said they would within 10 days provide information "about what is required from borrowers to access real loss mitigation solutions," meet again next month "to continue work on a streamline triage system for Maryland homeowners" and attend a training event for housing counselors.

State officials said the following servicers are participating in the effort (and all but two were at today's meeting):

Posted by Jamie Smith Hopkins at 4:50 PM | Permalink | Comments (0)
                    

Those of you who can't get enough of housing-market data will be delighted to hear that not one but two major indexes of housing prices are out this morning.

The Office of Federal Housing Enterprise Oversight's house price index, which you can find HERE, shows prices rising slightly in the Baltimore metro area -- just under 2 percent -- in the final three months of 2007 vs. the same period a year earlier. Prices in the Washington area, by contrast, fell almost 3 percent.

Standard & Poor's Case-Shiller index, also released today and available HERE, shows much bigger price drops in the metro areas it tracks. Washington, which is as close to Baltimore as Case-Shiller lets us get, dropped 9.4 percent from December 2006 through December 2007 -- not as steep as the worst-hit areas, such as Miami and Los Angeles, but not one of the better performances, either.

Why the big difference?

Both measures attempt to weed out apples-to-orange comparisons by tracking the values of the same houses over time, but they're not measuring exactly the same thing. OFHEO's index tracks only the so-called "conforming" mortgages financed by Fannie Mae and Freddie Mac, which cuts out pricey jumbo loans and almost all subprime mortgages. Also, OFHEO's main index includes refinancing as well as sales.

Posted by Jamie Smith Hopkins at 10:45 AM | Permalink | Comments (0)
                    

But Tim Wheeler reports today that a significant number of landlords appear to be getting the benefit of the homestead tax break:

A spot check by The Sun of about 90 homes listed online for rent in Baltimore and Howard counties found that 1 in 3 is identified in state records as the owner's principal residence. That means the owners of those rental properties claim to be living there, potentially allowing them to get a Homestead Tax Credit they don't deserve.

State officials say "there's no easy way to check" who's honestly qualifying for the credits, Wheeler reports.

I know some of you folks out there are very interested in this issue. What do you think the state ought to do?

Posted by Jamie Smith Hopkins at 1:12 PM | Permalink | Comments (2)
                    

Want to see where these places are? Then click ... 

--HERE for the most and least expensive ZIP codes in the region

--HERE for the most and least expensive city neighborhoods

--HERE for the least expensive suburban ZIP codes

Posted by Jamie Smith Hopkins at 12:56 PM | Permalink | Comments (12)
                    

Photo courtesy of Stock.XCHNG

There's no law that says you must get a real estate agent if you're buying or selling a house, but many do. Like any profession (particularly one that's not hard to get into), you can find great Realtors, middling ones and some who are worse than none at all, so you'll want to choose well. 

I'll address agent-shopping for buyers next week in Part II. Here's what the Consumer Federation of America thinks sellers should keep in mind before making a choice:

Interview several, asking about their experience, representation policy, commission rate and marketing plan, says Stephen Brobeck, executive director of the Consumer Federation of America.

--Experience: How many homes have they sold in the past year? In their career? Ask for the names of a few past customers and call them, Brobeck suggests. "There's no perfect indicator of quality here, but experience and the experience their customers have had are important," he said.

--Representation: Do they plan to represent potential buyers of your house? "The goal of most agents is to work with a buyer and a seller, thereby being able to retain the entire commission," Brobeck said. "It's called in the trade 'the double dip.' It's not pernicious, but people ought to understand that it does affect representation."

You can go with a double-dipper, though the commission rate ought to be lowered, Brobeck said. (If 6 percent is typical, he says "you should be able to negotiate it down easily to 3 1/2 to 4, depending on the price of your home.") Or you can ask the agent you choose to represent your "fiduciary interests" and yours alone -- and get it in writing.

--Commission: As the example above shows, it's negotiable. And there are a wide range of commission rates out there now, what with discount brokerages competing with the traditional set. But Brobeck says you should be sure to ask about the typical commission split in the area -- that is, how much usually goes to the buyer's agent.

Why? Because you might not want your house showing up in the multiple-listing service with less than the going rate. Especially now that buyers have tons of choices, there's nothing keeping their agents from deftly avoiding showings on your cheap-commission house.

If 3 percent is typical, you can probably get the commission down to 5 percent, Brobeck said, but make sure that's laid out as 3 percent for the buyer's agent and 2 percent for yours.

John F. Sullivan, an exclusive buyer's agent with Buyer's Edge in Bethesda, looked up a bunch of listings for me to see what buyer's agents are being offered. He says there was an almost equal number of 2 1/2 percents and 3 percents.

--Marketing plan: What do your potential agents plan to do to sell your house? Don't assume they'll pull out all the stops. Ask. Also ask for help preparing your house so it looks saleable and pricing it right so it will attract interest, Brobeck says. He cautions against putting much weight on open houses: "Open houses are mainly for the benefit of the brokers to get other clients," he says.

Interested in what others are saying? Click HERE to check out "The Real Estate Consumer's Bill of Rights" written last year by agents at Redfin, an online real estate brokerage. Click HERE to see what the Maryland Real Estate Commission suggests you keep in mind. Or click HERE to see criticism by Brobeck of traditional real estate brokers.

Have anything else to add? Chime in.

EDIT at 2:30: Thanks for all the feedback, guys. Here's the lowdown on the representation question:

Commission double-dipping may be common in America, but Maryland law prohibits an agent from representing both the buyer and the seller in the same transaction, says Katherine Connelly, executive director of the Maryland Real Estate Commission. If a buyer comes to an open house and asks the seller's agent to represent him or her, that agent's broker has to designate another person in the firm to work with the buyer.

I checked with Brobeck, the Consumer Federation of America official, and he suggests a Maryland seller ask potential agents how their firms would handle such a situation to ensure that the seller's best interests are upheld.

Sullivan, the exclusive buyer's agent, notes that a seller's agent will get the entire commission if the buyer is unrepresented.

As always, keep those comments coming. The How-to posts are frequently used for the Wonk column in Friday's paper, so it's a real benefit to everyone when you point out something I should have included.

Posted by Jamie Smith Hopkins at 4:00 AM | Permalink | Comments (8)
                    

Topic: What to consider when choosing a real estate agent.

You've got plenty of choices: Membership in the National Association of Realtors wasn't far from 1.3 million in January. The number of NAR members has been dropping in recent months, but it's still far above the 750,000 or so at the start of 2000.

Posted by Jamie Smith Hopkins at 2:59 PM | Permalink | Comments (1)
                    

Exhibit fares ranged from custom bedding to portable Jacuzzis to in-home elevators.

"This hits a demographic," said Stacy Pesacov, president of Full Potential Marketing, a firm that helps run the show. The economy "has not impacted us at all. Attendance is as high as it's ever been. Our shows are bigger than ever."

I hear mixed things about how well super-pricey houses are selling. Perhaps some folks who could afford such properties are opting to install Jacuzzis and elevators in their existing homes?

Posted by Jamie Smith Hopkins at 2:43 PM | Permalink | Comments (1)
                    

As I was squinting at home sales records for a story, I noticed something about the city's drop in home buying: It hasn't been quite as dramatic as the slump in the metro area as a whole.

I mean that in a relative sense. Sales dropped about 30 percent in both the city and the metro area from 2005 -- the height of the boom -- through 2007, but city sales rose so much faster during the boom years that they're not back to pre-boom numbers.

Metro area sales last year fell just below the number of homes sold in 2000. City sales, on the other hand, were between '01 and '02 levels. That seems worth noting. I remember a housing advocate commenting during the boom that the real test of the city's new real estate strength would be a recession.

Read on -- or, rather, look on -- for visuals.

Now compare that with home buying in Baltimore City:

Posted by Jamie Smith Hopkins at 8:33 AM | Permalink | Comments (1)
                    

This isn't strictly housing-related, but it is real estate, and more importantly it made me laugh.

Lorraine Mirabella reports today that an attorney for the developer of the mixed-use McHenry Row project in Locust Point refused to confirm to the Baltimore Planning Commission that it had signed an upscale grocer even though the project artwork "depicted a large sign bearing the Harris Teeter name" on one of the structures.

"With regard to the grocer, that has not been announced yet," the developer's attorney, Stanley Fine, said to the commission, Mirabella reported.

"Well, it has now," Commission Chairman Peter Auchincloss shot back.

Posted by Jamie Smith Hopkins at 8:53 AM | Permalink | Comments (3)
                    

You've seen the most and least expensive ZIP codes in the metro area and the most and least expensive neighborhoods in the city. You might think that covers it. But wait, there's more!

When I sliced and diced the 2007 sales figures, I did some suburbs-only calculations. I went so far as to slice-and-dice the ZIP codes that are part-Baltimore, part-'burb.

That means I can reveal to you the most affordable suburban ZIPs. If you're set on suburban living but can't spend $300,000-plus on a house -- or if you're just curious -- then read on.

Below are the 20 least expensive ZIP codes in the Baltimore 'burbs by average sales price in 2007. Some ZIPs are called "Baltimore" because they're partly or mostly in the city, but the prices are calculated off the suburban side only. (And as usual, ZIPs had to have at least 10 sales last year and the year before to make my cut.)

Baltimore (21224) -- $164,083
Baltimore (21215) -- $179,759
Dundalk (21222) -- $180,487
Edgewood (21040) -- $185,514
Baltimore (21206) -- $207,599
Brooklyn (21225) -- $212,085
Aberdeen (21001) -- $215,267
Baltimore (21229) -- $216,804
Essex (21221) -- $223,201
Belcamp (21017) -- $224,288
Gwynn Oak (21207) -- $230,375
Halethorpe  (21227) -- $230,428
Parkville (21234) -- $242,142
Middle River (21220) -- $243,093
Windsor Mill (21244) -- $250,631
Rosedale (21237) -- $254,737
Nottingham (21236) -- $260,179
Baltimore (21239) -- $264,344
Randallstown (21133) -- $265,948
Abingdon (21009) -- $269,796

EDIT: That clever Wonk reader who mapped the most and least expensive ZIPs for the region has done it again for these communities. Click HERE to see the Google Maps mashup.

Posted by Jamie Smith Hopkins at 8:34 AM | Permalink | Comments (0)
                    

This has been on my mind whenever I use my home computer, which is near a window that is certified energy inefficient, judging by the draft. Hand me a blanket, will you?

Posted by Jamie Smith Hopkins at 6:12 PM | Permalink | Comments (1)
                    

The Fuel Fund of Maryland, which helps people with utility costs, has begun releasing energy-efficiency tips for people looking to trim some of those big increases from their bills. It's conducting the campaign with Blue Dot of Maryland.

Click HERE for a PDF file with suggestions about lighting and refrigeration.

Its featured tip this week: programmable thermostats. The Fuel Fund says such thermostats can be bought for $25 and cut utility costs up to $150 a year. It also notes that the environmental benefit is the same as "taking one car off the road for three weeks every year."

Posted by Jamie Smith Hopkins at 10:17 AM | Permalink | Comments (0)
                    

This calculation, called the "constant yield tax rate," is a popular one for those frustrated that reassessments mean higher tax bills. I've already received two emails this morning pointing out that Baltimore's rate would drop from $2.268 for every $100 in taxable assessed value to $2.079 if city leaders go with the constant yield rate.

All the counties' rates would decrease, too. That's what happens when the assessable base expands.

As the state notes: "If a jurisdiction plans to set a tax rate higher than the constant yield rate, the jurisdiction must advertise the tax increase and hold a public hearing before setting the tax rate for fiscal 2009." (Fiscal 2009 begins July 1.)

If my math is right, the constant yield rate is truly constant -- no adjustment for inflation. Governments always see that as a cut because they say it means less in the way of services. City tax protesters, on the other hand, have argued that the revenue increases from property taxes have been well above inflation in recent years.

Property taxes are bound to be an issue this year as the city considers changing its tax structure. (Click HERE for an earlier post on the city's blue-ribbon tax reform committee.)

Meister, who ran for city council last year, said in an email on the subject: "The 2.079 rate is an 8.33% cut from the current rate of 2.268. We get an 8.33% cut by simply following what the state says. There is no need for changing the homestead tax credit, creating blue ribbon committees, legalizing gambling, or raising income taxes!"

Posted by Jamie Smith Hopkins at 9:59 AM | Permalink | Comments (3)
                    

Tommie Thompson, director of the county's Department of Housing and Community Development, says 13 national loan servicers will be on hand to talk to people about foreclosure prevention and refinancing. The event is also geared toward homebuyers who want extra information about mortgages -- to avoid getting into a loan they're ill-suited for, as so many have before them.

To register: 800-CALL-FHA.

Thompson said workshops for residents will run from 2 p.m. to 8 p.m. Servicers will be meeting with government officials in the morning.

Posted by Jamie Smith Hopkins at 4:21 PM | Permalink | Comments (0)
                    

It's the latest salvo in a tug-of-war over foreclosure prevention. Mortgage servicers say they're doing all they can, have helped many borrowers and could help more if their overtures weren't often ignored. Housing counselors say it's hard to get past the collections department to the people who can actually assist, and they argue that the help -- when offered -- isn't always very helpful.

Posted by Jamie Smith Hopkins at 8:47 AM | Permalink | Comments (1)
                    

The group also says it's promoting an EcoBroker certification program that teaches agents about green building products and how to deal with environmental issues like mold; is working to get an option on the local multiple-listing service for noting green features in homes for sale; and is collaborating on efforts to improve mass transit.

This was, believe it or not, the second green real estate announcement I've had today -- so far. The Home Builders Association of Maryland says it will hold a "green building" class next month.

All you homeowners and prospective buyers out there: Are green features -- energy-efficiency or otherwise -- on your radar? Does this matter to you?

Posted by Jamie Smith Hopkins at 3:57 PM | Permalink | Comments (2)
                    

If you glanced at the most and least expensive local ZIP codes in my post last week, you might have noticed that none of the priciest and almost all the cheapest were in the city. But here's the thing: Though ZIP codes are pretty good stand-ins for communities in the 'burbs, Baltimore is all about small neighborhoods. There are quite a few packed into most ZIPs.

So, without further ado, here are last year's most and least expensive city neighborhoods:

The most expensive city neighborhoods, by 2007 average sales price:

North Roland Park/Poplar Hill -- $614,846
Inner Harbor -- $604,796
Homeland -- $582,500
Guilford -- $561,268
Roland Park -- $543,773
Little Italy -- $543,460
Bellona-Gittings -- $506,208
Otterbein -- $442,236
Fells Point -- $411,373
Federal Hill -- $370,239
 
... and the least expensive city neighborhoods: 
 
Broadway East -- $38,884
Shipley Hill -- $39,113
Penn North -- $39,952
Milton-Montford -- $44,842
Midtown-Edmondson -- $45,610
Oliver -- $48,088
Carrollton Ridge -- $50,467
Mondawmin -- $50,732
Darley Park -- $51,673
Mosher -- $51,988

As usual, the neighborhoods needed 10 sales last year and 10 the year before to make my cut.

EDIT: The clever Wonk reader who mapped the most and least expensive ZIP codes in the region has also mapped these city neighborhoods for your edification. Click HERE to see the Google Maps mashup.

Posted by Jamie Smith Hopkins at 11:57 AM | Permalink | Comments (0)
                    

Photo courtesy of Stock.XCHNG

So much attention has been paid lately to the travails of short-term homeowners that longer-term homeowners probably feel a bit left out. "What do I care?" you grumble. "Why don't you cover something that affects me, dagnabbit?"

All right. How about getting that private mortgage insurance premium off your monthly mortgage bill?

Private mortgage insurance, for those of you short-termers and renters following along, is something homebuyers need if their down payment on a non-government loan is less than 20 percent of the property value. Lenders insist on it to protect them if you go into foreclosure.

It's in an effort to avoid this bill that many buyers opted for two mortgages during the housing boom. Now, an increasing number of new borrowers are finding their way back to PMI -- by choice or default.

The Mortgage Insurance Companies of America, an industry trade group, said the number of new PMI policies increased nearly 40 percent last year.

Not sure whether you're paying for private mortgage insurance? Check your monthly mortgage bill, or look at the "HUD1" form with the paperwork you signed to close the loan. (Or call your lender.)

If you have it, there are three ways you can qualify to cancel: Make enough payments, raise the value of your property with home improvements or (rarer and rarer nowadays) live in an area that's seeing strong gains in sales prices. One or more of those options can get your loan balance down to 80 percent of the value of the home when you got the loan.

There's a checklist about next steps at Mortgage Insurance Companies of America's website, with a more detailed Q&A HERE. Here's what the association says:

--Contact your loan servicer. You should be able to find the contact information on your monthly mortgage bill. Be prepared to provide your Social Security and loan numbers.

--Tell the servicer you'd like to cancel your private mortgage insurance and ask about its requirements to do so. That could mean gathering additional information and paying for an appraisal. (Let the servicer arrange for the appraisal, the insurer association says, so you don't end up on the hook for two bills.)

--After you've jumped through the necessary hoops, send in a written request to cancel.

Katie Monfre, a spokeswoman for Mortgage Guaranty Insurance Corp., says your private mortgage insurance will generally get canceled automatically once your payments equal 22 percent of the original home value. (Federal law requires it for most loans taken out by borrowers after July 29, 1999.)

But now you know how to move things along sooner if you think you qualify -- or get the ball rolling if you suspect it's long overdue.

Click HERE for a calculator that helps you figure out when you might be able to cancel.

Posted by Jamie Smith Hopkins at 4:00 AM | Permalink | Comments (2)
                    

Patrick Bollinger, who last fall moved from Delaware with his wife, Brooke, said he can't explain why it feels right to be a stone's throw from the Timonium house he grew up in and where his parents still live.

But he fondly recalled a childhood filled with friendly neighbors and a sense of security. ... Their real estate agent, Trish Denny, of Long & Foster in Bel Air, agreed: "It's kind of that Linus-and-his-blanket thing."

Anyone here live very close to your first home? I don't -- though I'm not far away by car -- but one of my brothers-in-law bought the house next to the one he grew up in.

Posted by Jamie Smith Hopkins at 1:53 PM | Permalink | Comments (0)
                    

No, I'm not going to say any more than that until tomorrow morning. Today isn't How-to Sunday, after all.

Posted by Jamie Smith Hopkins at 12:45 PM | Permalink | Comments (0)
                    

Alex Perriello: What impact has media coverage of the housing market had on the market and your business?

Ron Peltier: The media likes to create sensationalism, but the fact is we’re going through a national correction. What they’re doing is sort of like trying to predict or explain a national weather forecast. But there is no national weather forecast. There are only local stories, and they’re more relevant. Still, negative press frightens potential buyers. If they think housing is going to fall by the wayside, informed consumers will sit on the sidelines. The impact on our business, the net result today, is that we have homebuyers who have not lost their belief in homeownership or their desire for a home, but they are waiting on the sidelines for the media or our industry to convince them to buy.

Posted by Jamie Smith Hopkins at 9:53 AM | Permalink |