One of the many reasons Baltimore has maintained its value is due to expected occupation growth. For instance, Maryland is poised to receive a tremendous amount of population growth and employment opportunities over the next several years as part of the Base Realignment and Closure initiative (also known as BRAC). This program was designed to move thousands of military personnel from the mid-Atlantic region to be in a more centralized area in and around the Baltimore/Washington corridor. As such, Baltimore realtors expect housing demand to trend upwards in the near future.

There has also been a trend over the last few years for residents of other local cities (primarily Washington, DC) to purchase homes and real estate in Baltimore. Similarly appointed homes in Washington, DC could cost twice or even three times as much as their Baltimore counterpart. This provides the opportunity to own a home in Baltimore and commute to work.

Those first time home buyers contemplating a home purchase in Baltimore should consult with a Baltimore realtor or real estate agent. These professionals can provide useful insight into the current state of the market, how the home buying process works and how to prepare a contract for purchase. Hiring a Baltimore realtor or real estate agent can also be beneficial because they will be aware of the various tax credits, grants and other assistance available for first time buyers and move-up buyers.

There are an incredible amount of incentives for first time home buyers and move up buyers in Baltimore city. For instance, first time home buyers in Baltimore (as well as the rest of the country) may be eligible for the home buyer tax credit implemented with the passage of the economic stimulus bill in February 2009. This provides an $8,000 refundable tax credit to first time home buyers purchasing a home between January 1st and December 1st, 2009. First time home buyers are defined as those who have not owned a property in the last 3 years.

It should be noted there are a few restrictions on this first time home buyer credit. The buyer must purchase the new home prior to December 1st, 2009. There are also income limitations. Anyone earning $95,000 or less will receive some type of credit, though your income will need to be $75,000 or less to earn the full $8,000. The $8,000 is also dependent on the purchase price. If the home is less than $80,000, the buyer will receive 10% of the purchase price as a tax credit, instead of the full $80,000. Also, this credit must be repaid if the buyer sells the home within 36 months.

In addition to this stimulus tax credit, Baltimore city real estate buyers have additional incentives available. The “Buying Into Baltimore” program, for example, offers a $3,000 forgivable loan to help towards closing costs and down payment. The amount of the loan to be repaid decreases 20% per year for 5 years, after which the loan is completely forgiven. The buyer must also attend a home ownership counseling class prior to submitting a contract on a property. Your realtor or real estate agent can direct you to a home counseling center to obtain your certificate.

Those buyers with generous employment benefits may find that their employer participates in one of the home buying incentives available in Baltimore city. “Live Near Your Work” and “House Keys 4 Employees” are two of the more common programs available, offering 0% deferred loans to employees toward their home purchase. These incentives are offered directly by local Baltimore employers and are matched dollar for dollar with state funds. Your realtor, real estate agent or human resources department can help you determine if your employer participates in one of these programs.

These are just a few of the many incentives available to first time home buyers and move-up buyers in Baltimore city. There are dozens of programs, incentives and grants available.

The combination of these available incentives, lower home prices and histortically low interest rates presents a fantastic opportunity for first time home buyers in Baltimore to purchase a home at an excellent price. Baltimore realtors, real estate agents and professionals should be poised and educated to help these buyers take full advantage of their opportunities.

Peter Boscas is an experienced full time realtor in Baltimore City. Having taught continuing education for real estate professionals, as well as having worked with over 100 buyers, Peter’s experience allows him to give his clients ethical and valuable service. http://www.baltimorerealestateservices.com 

Peter Boscas
Tenacity Real Estate
2008 Hillyer Place, NW
Washington, DC 20009
(800)496-0235 x 1507