How to Buy Real Estate in Garrett County, Deep Creek Lake & Wisp Resort:

Owning real estate in Garrett County & Deep Creek Lake Maryland is one of the most rewarding investments you will ever experience. Western Maryland is an ideal place to plant your roots permanently or you can find a vacation home and spend free time with family & friends. Depending on what situation you are in, the following buyer’s guides will certainly help you along the way:

·         A Buyers Guide to Residential Real Estate in Garrett County, Maryland – this article is ideal for people who plan on living here full time or are looking for traditional housing in the different areas of Garrett County & nearby West Virginia & Pennsylvania.

·         A Buyers Guide to Resort Realty & Vacation Homes in and around Deep Creek Lake, Maryland

This article will focus on the acquisition of a vacation home at Deep Creek Lake. No matter what your ‘Deep Creek Dream’ is, this article will help you along the way!

The majority of my dealings with clients & customers over the years can be traced to a few key factors:  Without a doubt, the most important aspect of purchasing real estate is having an agent you can trust and who understands the many dimensions of the buying process. You need a facilitator and liaison to act on your behalf when you can’t be here. It makes sense to work with a REALTOR who has experience in this area, and more importantly, someone you can count on. I focus on listening to my customers’ desires and taking the steps to make their dreams a reality.

I have outlined a typical real estate transaction below and filled in many of the details that you will encounter along the way:

The Deep Creek Lake Resort Area
Most people begin their quest for a vacation home online. They compare the many different factors of resort areas: the area growth potential, proximity to where they live, entertainment & outdoor activities, climate, area amenities & features, and resale potential. The Deep Creek Lake area of Maryland is within a 3-5 hour driving radius of about 25 million people, making it very accessible to folks who live in Pennsylvania, West Virginia, Maryland, Washington DC, Delaware, Ohio, Virginia, New York and North Carolina. The obvious value here is that it takes less time to get here, so you have more time to enjoy here!

In my experience, Deep Creek Lake is often compared with other resort areas like Ocean City (MD), the Outer Banks (NC), Myrtle Beach (SC), Smith Mountain Lake & Lake Anna (VA), Virginia Beach, Rehoboth Beach (DE), Florida beaches or other major ski areas in the United States like Vermont, Colorado, Utah & Lake Tahoe. Deep Creek Lake is unique because it offers true 4 season activities and it is a close proximity to many other metropolitan areas. Where else can you find downhill skiing, fly-fishing, snowmobiling, ice-fishing, hiking, biking, white-water rafting, swimming, boating, hunting, golfing, snowboarding, kayaking, cross country skiing, and summer time water sports like tubing, wakeboarding, water skiing & wave runners – all in the same area? The activities and lifestyle your family and friends can enjoy at Deep Creek Lake are virtually limitless!

Deep Creek Lake is the best four season resort area in the mid-Atlantic, with the lake activities and nearby state parks in the summer and the Wisp Ski Resort in the winter. This area also offers easy highway access within convenient driving distance of several major metropolitan areas so you can also avoid the hassles of flying. With the expansion of the Deep Creek Lake Airport, you’ll soon be able to land private jets here, further increasing the growth potential.

The climate of our area gives it a distinct advantage over other areas, as well. On average, we have lots of natural snowfall in the winter months and milder temperatures (10-15 degrees cooler than lower elevations) in the summer providing the perfect setting for family get-togethers and weekend getaways. Our 2,500+/- ft. average elevation keeps the humidity low and the fresh air flowing through the mountains! Couple this climate with the natural beauty of Swallow Falls State Park and the many other earthbound amenities of ‘Mountain Maryland’ and you won’t want to leave! With all of this natural beauty and these unique features, you can be sure the Deep Creek Lake area of Garrett County will continue to be a popular resort for many years to come.

Your ‘Deep Creek Dream ‘
Let the creative juices flow! Imagine an ideal setting of a lakefront home with endless views of water and rolling hills. Perhaps a log cabin perched on a mountain with pastoral and farmland views would be your ideal setting? How about convenience to the amenities of the area – large tracts of recreational acreage boarding state hunting lands, slopefront houses and townhomes nestled on the face of Wisp Ski Resort & Marsh Mountain, golf course vacation homes on a public or private course, riverfront parcels with mountain fresh flowing water, or a quiet farm in the surrounding valleys and coves that Garrett County offers? How many bedrooms will you need to fit all of your family & friends for weekend getaways or cozy winter holidays? Deep Creek offers lots of styles of homes, too. You can have a modest chalet or simple lakehouse; or a contemporary masterpiece of charm and convenience. Massive mountain mansions of logs & beams or simple style and efficiencies of condominiums, fractionals and timeshares. Do you want to be in the heart of the action or away from it all?

Determining a budget is essential at this point. Regardless of what you are looking for, the perfect piece of property IS out there. Advertising your home as a vacation rental can propel you into much higher price ranges while your bottom line remains the same. The vacation rental market at Deep Creek Lake has made virtually every form of home ownership more affordable. Now is the time to consider the pros and cons of renting your property. Some of the many positives include the ability to afford ‘more’ house or added amenities like an indoor pool or lakefront property, tax write-offs, building lasting relationships with other families who enjoyed their time at your lakehouse or simply reducing mortgage and out of pocket expenses. Some of the cons include limited availability around existing rentals (choosing between spending Christmas at the lake or renting out a popular weekend to improve cash flow) and the additional cost of utilities & maintenance (more people using the house more often).

Enlist the help of a professional

While I can think of many different reasons to enlist the help of a REALTOR, none is more important than protecting your investment. In a resort market like Deep Creek Lake, it is critical to know the real estate market. As a REALTOR, I have spent countless hours learning the in’s and out’s of real estate investment and the finer points of the value people place on their vacation homes. The motivation of sellers here can be as diverse as the landscape itself. I can help you identify true value in the marketplace, as well as identify properties that are overpriced for the market. Nothing is worse than buying a property and realizing after settlement that you overpaid, even by a little bit. After all, your vacation home is a valuable investment.

With the support of a leading real estate company like Railey Realty, I can also provide you with the experience, insight, professionalism and coordination to successfully purchase your home. A real estate transaction in a resort area is usually more complex and challenging than a regular real estate transaction. Not only does it involve many steps and the coordination of various parties throughout the entire process, but the fact is you need someone that is here to handle the details. My buyer agency services can provide a tremendous amount of convenience and time savings for you – time that is better spent enjoying your vacation home! In our local market, the Seller typically pays the entire commission in a real estate transaction. For more information about Buyer Agency, Seller Subagency and etc To better understand the different types of Agencies available, please download Understanding Whom Real Estate Agents Represent

As a service to my clients, I have spent lots of time and energy streamlining the process for you. I can help you conduct a real estate transaction efficiently and quickly over the web and allow you to make decisions from the comfort of your home. I work with every type of buyer – from the million dollar cash deal to a simple investment lot purchase. My greatest joy in business is helping others achieve their dream of living at Deep Creek Lake, full or part-time!

In addition, I use approved contract forms from the Maryland Real Estate Commission with special addendums particular to pertinent issues in Garrett County and Deep Creek Lake. Whether it’s the Deep Creek Lake Conservation Easement, the state buydown, vacation rental addenda with future booking schedules, inventory & furniture lists, Transient Vacation Rental Units, radon and lead based paint hazards, 1031 tax deferred exchanges, Maryland Non-Resident Seller taxes, homes inspection contingencies or simply negotiating for a boat to come with your house, I have all the angles covered!

Ready…Set…Search!

Not all real estate searches are created equal. Some companies only display their own listings on their website, which is quite literally a fraction of the market. My philosophy is to allow you to search ALL listings, regardless of listing broker. There is much more selection and your chances of finding the perfect property are much greater this way. There are also several different ways to search. I have gone to great lengths to try and incorporate the best of the best when it comes to real estate searching online.

• Search Railey Realty Listings

• View ALL MLS listings

• Get CUSTOM email updates of properties

• Research communities, developments & subdivisions

If you have a few ideas in mind and would like more assistance, feel free to contact me and explain your goals. I have had a lot of positive experiences with automatic e-mail updates. Imagine getting an e-mail within minutes of a property being listed! That kind of advantage goes a long way in terms of acquiring your dream vacation home! I have access to all properties listed for sale in this market through our local MLS. I’ll make sure you are aware of all the possibilities, based on your needs.

The next step is to arrange a trip to the area to view some properties. There is nothing that makes the process easier than seeing it in person! Once we spend some time together, I’ll have a better understanding of your ideal home and the finer points of what make a resort property special for YOU! I have had a lot of success with providing maps and directions to drive-by listings for people who aren’t familiar with the area. You can rule a lot of places out just by driving through and seeing the rest of the community & neighborhood.

Keep in mind, there are many other people out there looking for vacation homes, too. One of my duties is to make sure you are prepared to purchase. In other words, having a pre-approval for a mortgage and a plan of attack will assure your success in the competitive real estate market here. This will allow you to make a faster, more informed decision, and puts you in the driver’s seat to contract on the perfect home as quickly as possible.

You probably have a friend or associate in the mortgage business back home, but I suggest you speak specifically to some of our local lenders. They know the area better than anyone and often have special loan programs for resort or second homes. Never under estimate local affiliations and connections when it comes to getting the job done! You can normally obtain financing with as little as 5% down and competitive interest rates. Loan application and funding timeframes range between 28-45 days. Be prepared to provide recent tax returns and other proof of income and expenses. Rest assured, these local lenders are all used to working with clients from afar!

Submitting an Offer to Purchase
It’s time to negotiate your Deep Creek Dream! I’ll help you nail down the terms of your offer and guide you through the ins and outs of negotiation. I have a long standing track record of success and cooperation with many of the local agents and brokers and I feel that this is a tremendous advantage when it comes to negotiating. It’s always easier to do business with people who are professional and trustworthy. I am very blessed to work with some of the best in the business in this regard, and it is always my goal to structure a deal that is fair and equitable to all parties involved, and to get you the best deal possible!

Keep in mind the following items are the basics of an offer to purchase:
Purchase Price - I will show you comparable properties and suggest some strategies you should consider for your offer.
Closing Date – Every seller likes to close quickly, and may take less money to close sooner
Deposit Amount – A strong deposit can sometimes make the difference in negotiating multiple offers on a property; expect to put down 1-5% of the purchase price and have it credited to you at closing.
Property Inspections – Designed to make you feel comfortable about certain aspects of your purchase, including water quality & quantity tests, chimney inspections, radon, mechanical, mold, structural, etc. These inspections are usually paid for by the Buyer and must be completed within a certain amount of time from the date the contract was accepted. The MAR contract is written in such a way that the buyer is generally able to walk away (minus the inspection fees, of course)  from the deal if they get a bad feeling from the inspections or if there are bigger problems than anticipated.

Financing – How you plan to pay for the property, typically through conventional financing. Other options may be a 1031 tax deferred exchange, money from a trust, etc. I have some suggestions of who to work with when borrowing funds, or feel free to shop around.

Furnishings – Most homes come with some or all furniture and some convey ‘turn-key’, right down to the forks, spoons, towels and decorations! The physical dock for a lakefront home may also convey in whole or in part, depending on the type of situation.

Deal…or no deal?

·         Keep your offer as “clean” as possible. The fewer contingencies a Seller has to worry about, the more flexible he or she may become on other terms.

·         Submit a pre-qualification letter along with the offer.

·         Vacation real estate transactions can be very emotional. Consider submitting a personal letter about your plans for the property.

·         After you submit your offer, be prepared to negotiate with the Sellers on ALL items. Sometimes small concessions can make a huge difference.

·         Try to keep the closing time short, usually 30-60 days, if possible.

·         Be prepared to pay full price, or higher! It is not always known if you are competing for a property with another buyer, but if you must have the property at all costs, this is a route to consider. I can help you with recent sales comparables and also insight into other factors that may save you money, as well. Every situation is different, so keep this in mind!

·         Everyone’s motivation is different. Most sellers choose to sell versus must sell. This dynamic can change negotiations in an instant.

·         The offer & counter-offer stages can last for minutes…or for weeks. Be patient and understanding throughout the process. When dealing with out of town sellers (80% of Deep Creek), it can be quite difficult to contact someone immediately.

·         If you can’t come to an agreement with the Sellers, don’t get discouraged. Every negotiation is as different as the people who are negotiating.

·         Until the deal is done, you are never done negotiating!

 

Realizing the Deep Creek Dream – Settlement!

In the weeks leading up to closing or settlement on the property, plan on making phone calls to secure property insurance and transfer utilities. While I can’t personally make these calls for you, I have a checklist and plenty of local contact information to keep you on track. I’ll make sure that the lights are on and the heat works BEFORE you settle in for your Deep Creek Dream!

In Maryland, the Buyer has the right to select their own title insurance company, title lawyer, settlement company, and mortgage lender. There are several options available, ranging from title companies to settlement attorneys. Some companies will even come to you – whether you are on your deck at the lake, or if you want to close closer to your primary residence – convenience is key! You can shop around, too. You can ask for sample HUD 1 statements that will cover most closing fees up front, and get disclosures on title policies. Buyer and Seller equally split any recordation taxes and local/state transfer taxes, unless otherwise negotiated. The Buyer’s portion of these taxes is approximately 1% of the agreed upon purchase price. Your lender can better explain those types of fees by giving you a Good Faith Estimate of closing costs, which generally include any points, appraisals, and credit report fees.

 While you can do a settlement by mail or long distance, I recommend being present for the closing.  Not only does it give you a better understanding of everything involved, but it also gives you an opportunity for one last “walk-through” on the property to make sure everything is still in good working order. Often times, you can check up on items like furniture or hot tubs that typically transfer with the property,. If you can’t be here, you can close by mail or have a Power of Attorney drafted to allow the attorney or settlement agent to sign. I have been involved with both, and typically, things go smoother in person.

Expect to bring either a cashier’s check or certified funds payable to the Title Lawyer or Settlement Company for the amount you will owe. Most Settlement Companies will not accept large personal checks. Though, last minute changes do happen, and they generally will accept smaller amounts on personal checks to cover a small difference. Closing can last anywhere from 15 minutes to an hour or more, depending on the type of loan(s) you have and if you are a ‘reader’ or not. If you have a first and second mortgage, the paperwork may take a little longer. It is customary in these cases for the seller to sign the deed and settlement statement and excuse themselves within the first 5 or 10 minutes. The Settlement Company will then record the deed in your name and mail you the original along with your Title Insurance policy.  This process can take a few weeks, but soon you will have the deed to your new Deep Creek Lake or Garrett County home!

I hope this information is useful and helpful. While it doesn’t cover every situation, it will give you a much better idea of the process of buying a property at Deep Creek Lake! If you have any questions, feel free to call or e-mail me. (deepcreeklaker@gmail.com)