By: Mike Kennedy mkennedy@railey.com 301-616-6106 August 24th, 2010 Category: Deep Creek Lake Buyer Info, Vacation Rentals

Vacation rental homeowners in the Deep Creek Lake area often inquire about the tradeoffs between professional property management and self-management like those found on VRBO, HomeAway, and other ‘Vacation Rental By Owner’ websites. Professional property managers cost money but the benefits usually outweigh the costs. Prop­erty owners who rent on their own and self manage often times don’t “save” money - they “earn” it spending much of their own time, energy, and additional money dealing with their property. Not only is the self man­aged “for-rent-by-owner” challenged to find paying guests, they must also take care of all repairs, cleaning, and dealing with guest complaints.

A professional property manage­ment company like Railey Mountain Lake Vacations will eliminate the stress and reduce the liability of your vacation rental by taking care of such things as:

• Promptly responding to emails and inquiries from impatient visitors who are shopping around
• Answering 10 inquiries for every booking
• Negotiating rent with guests who bargain shop
• Dealing with all guest requests including complaints
• Being able to access an alternative cleaner when the regular cleaner isn’t available
• Dealing with lost keys during after hours
• Coordinating plowing, mowing, and landscaping vendors
• Getting prompt responses by an a/c repairman in the middle of summer
• Accepting credit cards on your behalf which is necessary to get reservations in today’s consumer credit society
• Collecting all accommodation taxes
• Utilizing an in-house professional laundry to eliminate health related pathogens in linens and towels
• Using bonded workers covered by worker’s comp for repairs

Simply put, professional prop­erty managers are experts who know what problems arise in putting a non- resident guest into a home owned by another non-resident.

When it comes to reservations and bookings the ‘for rent by owner’ web sites often attract bargain shop­pers who often send dozens of email requests asking for discounts. Railey Mountain Lake Vacations has the area’s largest inventory of rental homes in the Deep Creek Lake area that over the years has created the area’s largest database of guests and visitors who are less interested in bargains and more interested in the quality of the home and rental experience.

Self management can work for an owner who is both motivated and willing to do A LOT of work - how­ever, a professional property manager like Railey Mountain Lake Vacations does ALL the work and more importantly is equipped to do the job right to reduce the homeowner’s liability. If you are interested in property management for your vacation rental please contact Leigh Miller at Railey Mountain Lake Vacations at (800)846-7368 or leigha@deep­creek.com.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 July 20th, 2010 Category: Deep Creek Lake Buyer Info, Interest Rates and Loans, Obtaining a Mortgage

The overall interest rate environment for buyers looking to finance a real estate purchase in the Deep Creek Lake second home resort market continues to improve as Jumbo Loan Rates have recently decreased as well. Current Jumbo Loan rates for loans over $417,000 are now in the the 5.25%-5.375% range. These rates are the lowest we’ve experienced since 2003 and may not last long! Last year at this time Jumbo Rates were on average about 1.00%-1.50% higher. The down payment requirement for a second home loan between $417,000-$650,000 is 20%. Loan amounts between $650,000-$1,000,000 requires 25% down and any loan amount over $1,000,000 requires 35% down.

Lower Jumbo Rates can have significant benefits for a vacation home buyer. First, the monthly payment is much lower resulting in substantial savings over the life of the loan.  Secondly, it also allows a buyer to have more purchasing power allowing for other alternatives that may be more desirable to them. For example, last year at this time someone borrowing $480,000 at 6.5% for a $600,000 Deep Creek Lake home would have a monthly payment around $3,034. Right now with the lower Jumbo Rates, the payment on the same loan would be approximately $2,650 a  month - or a savings of about $138,240 over the life of the loan.

In addition, if the same buyer decided to purchase something a little more expensive now - they could borrow approximately $550,000 - or $70,000 more - with the same monthly payment as last year at this time. This allows a buyer to consider other options that may be more desirable to them. In this market it could mean the difference between buying a lakefront house versus another type of setting.  Or it could mean the difference between purchasing a bigger house with more features regardless of the setting.

These lower rates may not last long. This is a great opportunity to save a significant amount of money  or to increase your purchasing power. If you are buying or selling Deep Creek Lake real estate contact us. We can be your trusted advisor and guide you through the entire process.  Please contact Jerry Merrick of BB&T Bank at (301) 387-3219 or John Simson of MLend at (301) 501-0676 for more information on vacation or second home loans at Deep Creek Lake.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 July 2nd, 2010 Category: Deep Creek Lake Buyer Info, Interest Rates and Loans, Obtaining a Mortgage

Conforming interest rates on 30 year fixed mortgage loans under $417,000 are near all time historical lows. As of today, the current interest rate is 4.50%.

Even though the federal government’s $8,000 tax credit has expired, this low interest rate is a great opportunity for a buyer to save a substantial amount of money over the life of their loan. In addition, this lower interest rate also gives a buyer more purchasing power. If you are planning on buying a house or real estate sometime this year it may benefit you in the long run to buy sooner than later by taking advantage of this extremely low rate. This is also a great opportunity to refinance your existing mortgage as well depending on your situation and future plans to buy or sell. Here are a few professional mortgage lenders in Garrett County you can contact to get more information about financing your primary residence or vacation home at Deep Creek Lake.

• MLend - John Simson (301) 501-0676
• BB&T Bank - Jerry Merrick (301) 616-0037
• Brinsfield Mortgage - Alan Brinsfield (301) 707-3431

As always, ask lots of questions and become very familiar with the lending process before making any decisions.  Give us a call if you would like to see any home or building lot for sale in Garrett County or Deep Creek Lake. Please note, we can show you any listed property for sale - even those listed with other real estate companies.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 16th, 2010 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate, News

It is no secret that the local real estate market experienced a challenging year in 2009, but as we move closer to the 2010 summer selling season there are signs of increasing momentum and improvement. If the current trends continue, we can hopefully look back and note that 2009 was the bottom. Some trends we are seeing include:

• Buyer interest and activity is well ahead of last year’s pace. Lakefront residential transactions are up 70% from the same period last year.
• There have been five (5) $1 million dollar plus sales this year compared to only three (3) last year at this time.
• A lakefront property in The Reserve at Holy Cross just sold for a record $3.5 million. Railey Realty was the listing broker for this sale. This is the first reported $3 million plus lakefront residential sale.
• The number of pending contracts is greater now than it was last year at this time.
• New residential construction and housing starts have stabilized. Through May, total building permits issued for new single family home starts in Garrett County is nearly at the same level experienced for all of 2009.
• Distress sales, short sales, foreclosures, and bank owned properties in Garrett County and the Deep Creek Lake area are still few and far between in this market.

The area continues to add amenities such as the under construction Community Athletic Recreation Center, just opened Lodestone and Thousand Acres golf courses, and a new Zip Line Canopy Tour Ride at Wisp Ski Resort. The Deep Creek area offers an abundance of activities and attractions families can enjoy year round.

If you are a prospective buyer, now may be the perfect time to purchase.  Interest rates remain low, and there is a great selection of properties to choose from.   Right now is a great time to take advantage of these benefits and capitalize on the historical strength found in this four season resort market.

If you are in the selling process it is very important to not over-price your property.  “Testing the market” in this environment is not the best path to take.  Today’s buyer is well informed and will not make offers on obviously overpriced properties.  As a result, the over-priced properties do not sell, and as other owners market their property, inventory increases.  This ultimately drives prices down.  Our advice is to offer your property for sale when the time is right for you and price your property competitively. One simple fact has remained true - properly priced homes in good condition are selling in this market.

If you are considering selling and would like to know the value of your property, Railey Realty will provide you with a free, no obligation, competitive market evaluation.  Please contact your agent or call us at 301-387-2000 for details.  As Deep Creek’s leading brokerage we look forward to helping you with all your real estate needs.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 11th, 2010 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, News

Railey Realty is proud to announce its participation as the listing broker in the highest lakefront residential sale recorded at Deep Creek Lake. The upscale, nearly 14,000 square foot home when finished, was recently sold for $3.5 million. The home was built in 2007 and is located in the Reserve at Holy Cross which is a private lakefront/lake access community. The property features stunning, unobstructed views of Deep Creek Lake from most rooms, 4 bedrooms, 3 full baths, nearly every upgrade you could imagine in a high-end home, and a boat dock permitted for 3 power boats. The couple who purchased this home is from the Pittsburgh area and plan on using it as a vacation home.

This is the first sale over $3 million at Deep Creek Lake and is the highest sold price for a residential property since 2007, when another lakefront house in The Reserve at Holy Cross sold for $2.8 million.

If you are thinking about buying or selling lakefront property on Deep Creek Lake, give us a call or send us an e-mail. As Deep Creek’s leading real estate brokerage, we can assist you with all your real estate needs.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 April 5th, 2010 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Real Estate, News

Last fall the Deep Creek Lake Management office sent a letter to all dock permit holders outlining proposed changes concerning the way PWCs (personal watercrafts) will be docked/stored at lakefront sites. These changes to the regulations will essentially get rid of all current PWC racks/stands on the shoreline. The public comment period ended a few months ago and the proposed changes to the regulations are expected to be approved by the State of Maryland in the very near future.

As usual, and until notified otherwise, all Type A dock permit holders will be allowed to dock two (2) power vessels and one (1) non-power vessel (most likely a sailboat) at their dock.  If you posses a Special Permit you WILL be allowed to place a PWC that weighs LESS than 500 pounds on a shoreline rack/stand for the meantime - but you will also receive a letter notifying you of forthcoming changes.  Under current regulations, any PWC that weighs MORE than 500 pounds is NOT permitted on a shoreline rack/stand. Nearly all PWCs manufactured in the last 10 years weigh more than 500 pounds. Most lakefront homeowners currently store their 500 (+) plus pound PWCs on manufactured stands and racks on the shoreline and not tied up to their boat dock.

Early this summer, DNR is expected to take applications from dock permit holders that will allow them to have 1 PWC permitted at their boat dock.  (PWCs are permitted at docks now but since they are more than 500 pounds they are considered a power vessel by definition). If approved, the new permit will then be valid for two (2) power vessels, one (1) PWC, and one (1) non-power vessel. This application will cost an additional $100 on top of the normal $200 paid in the spring. DNR expects to issue these new buffer strip permits for one (1) additional PWC at docks starting sometime later this summer.

It appears that all Type A permits will now have the ability to be granted three (3) power vessels and one (1) non-power vessel at their lakefront home - however, one of the three power vessels will have to be a PWC. This new regulation will benefit the lakefront homeowners who only have 1 power boat at their dock now and 2 PWCs on shoreline stands/racks - or the homeowners who have 2 boats now at their dock and 1 PWC on a stand. This new regulation will basically allow all 3 to be tied up their dock.

However, this new regulation appears to hurt the lakefront homeowner who already has 2 power boats at their dock now -for example, a Cobalt and a pontoon boat - and who also has 2 PWCs stored on shoreline stands/racks. This new regulation is going to force these homeowners to get rid of one of their PWCs - or get rid of one of their power boats. This situation of 2 boats and 2 PWCs is very common around Deep Creek Lake.

Homeowners in lake access communities with common docks may also suffer a bit with these new regulations. For common docks, DNR is going to permit 3 PWCs per every 10 approved boat slips. Therefore, the homeowner who has a power boat in one of the slips in the common dock and a PWC on a shoreline stand may be forced to get rid of either the boat or PWC if there are numerous PWCs in that particular community.

The intent of this change is to get rid of all PWC racks/stands on the shoreline - as DNR viewed these stands as an abuse of the number of power vessels docked/stored at these homeowner sites.

By: DebraSavage dsavage@railey.com 301-616-4085 February 10th, 2010 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Real Estate, Fractional Ownership

The current economic climate has forced many of us to realign our priorities.  Conspicuous consumption is clearly out; sustainable, “green” living with smaller carbon footprints a growing awareness. So how does one reconcile the desire to own a second home or vacation real estate at Deep Creek Lake with the need to be socially responsible?  There is a way.

Fractionals - A “Green” Alternative

Fractional ownership is a smart, sustainable, “green” way to own a second home. A legally defined alternative popular in many resort areas, multiple like-minded owners share initial costs and ongoing expenses, balancing the buyer’s investment with actual usage and enjoyment of their home. While the average vacation property in the US is used less than 30 days per year, it is generally kept heated and cooled concurrently with the owner’s primary residence.  According to the Live Green, Live Smart Institute, this, along with travel, maintenance and hot water usage, generates about 31 tons of CO2 per vacation property per year.   The shared carbon footprint created by fractional ownership spreads the resources over multiple families or individuals, and does not duplicate the resources required in construction and land usage.

Luxurious Amenities

Being practical and socially responsible does not mean sacrificing when it comes to fractional properties developed by Second Homes at Deep Creek Lake.  While the level of luxury offered in these homes might seem excessive for a single owner, it is easily justified for multiple owners.  Geared toward the total comfort and enjoyment of owners and their families, amenities in these truly unique homes include home theaters, whole house audio, chef-ready kitchens, espresso makers, hand-painted murals, wireless internet, libraries, kayaks, canoes and bicycles. Professional management ensures that owners can truly relax on each of their visits throughout the year, and not have to worry about maintenance and other issues when they’re not in residence.

Frequently Asked Questions About Fractional Ownership

Click Here for All Currently Available Fractional Homes For Sale at Deep Creek Lake

There are currently two premier fractional real estate opportunities available at Deep Creek Lake, with a third on its way in June 2010 - The Lodge at North Shore - a deeded 1/7th fractional ownership lakefront home from the low to mid $400,000s.  For additional information, check out www.secondhomesatdcl.com or give us a call to schedule your personal tour.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 February 9th, 2010 Category: Deep Creek Lake Buyer Info, Garrett County Real Estate, Obtaining a Mortgage

Jerry Merrick, of BB&T Mortgage, has provided these guidelines about the current requirements of mortgage loans in the Deep Creek Lake and Garrett County Maryland areas.

Second & Vacation Home Loans

A second home by definition is located in a resort area and farther than 60 miles from the borrower’s primary residence. There are some exceptions but this is done on a case by case basis.

Conforming mortgage loan limits for second homes at Deep Creek Lake and in Garrett County are $417,000 and below - which is the same as primary residences. Typically borrowers will pay 0 points on a conforming loan with acceptable credit scores. Any loan over $417,000 is considered to be a jumbo loan.

Interest Rates for second homes under $417,000 are the same as those for a primary residence, there are no differences. These rates are currently in the high 4% to low 5% range which are historical lows! Rates for second home loans over $417,000 are typically 1% higher.

The down payment requirement for second homes with loan amounts under $650,000 are currently at 20%. The down payment and credit score requirements change as the loan amount increases over $650,000. For any loan amount between $650,000 - $1,000,000 the down payment increases to 25% and the minimum credit score required is 740. Any loan amounts between $1,000,000 - $2,000,000 the down payment requirement increases to 35% and the minimum credit score required remains at 740. There are no private mortgage insurance companies approving second homes at this time. This is why the down payment requirement for a second home is currently at 20% and more. This is expected to change as time progresses and guidelines loosen up a bit. At some point in the future lenders will return to a 10% down payment option for second homes.

Investment Properties

Most of the full time vacation rental homes at Deep Creek Lake are considered to be investment properties. Depending on how many days you personally use the property and how you treat it on your tax return will also determine whether the property is to be treated as a second home or investment property.

The same loan limits apply to investment properties as the primary and second homes - $417,000 and below are conforming and loan amounts above $417,000 are considered to be a jumbo loan.

Interest rates for investment property loans at Deep Creek Lake less than $417,000 are the same as primary residences and second homes and typically 1% higher for loans greater than $417,000. The crucial difference is that the point structure is exponentially higher. The minimum point structure for both conforming and jumbo investment property loans is 1.75 points regardless of credit score and down payment.

The down payment requirement for a conforming investment property loan is 25% and the minimum credit score is 720. If the borrower’s down payment is more than 25% then the minimum credit score requirement is reduced to 620. The down payment requirement increases to 35% with a 740 minimum credit score for investment property loan greater than $417,000. The maximum financing for a jumbo investment property is $1,000,000.

Rental income for a new purchase can not be used in qualifying for an investment loan! You must be able to qualify based on your current income and wages - not the existing income of the vacation rental. On a slightly related note - a rental property that has a two year history of rental income can be used on a refinance transaction.

Primary Residences

As with second homes and investment properties, the conforming loan limits for a primary residence in Garrett County is $417,000. Any loan for a primary residence greater than $417,000 is a jumbo loan.

Conforming fixed interest rates are usually priced 1 % less than jumbo fixed rates. These rates have recently been bouncing between the high 4% to low 5% range. This may end up being a once in a lifetime opportunity to lock in an interest rate this low! Also, borrowers  typically pay 0 points based on credit scores.

Down payments for a primary residence vary based on the borrower’s qualifications such as credit score and debt to income ratio. A borrower with a 680 credit score and a debt to income ratio of less than 41% can borrower 95% of the purchase price with private mortgage insurance. For loans greater than $417,000 the minimum down payment on a primary residence purchase is 20% because there are no private mortgage insurance companies available to insure these loans. The minimum credit score required increases to 700 on these jumbo loan but the borrowers still typically pay 0 points depending upon credit score.

Right now the CHIPS loan is by far the best available program for principal residence home buyers in Garrett County or people looking to relocate to this area. The CHIPS loan will allow 100% financing with a maximum borrower investment of $500 plus 2 months reserves of principal, interest, taxes and insurance. The borrower can not own any other real estate at the time of application. The minimum credit score for 100% financing is 660 with a maximum debt to income ratio of 41%. CHIPS will work for any property not located in census tract 5 (Deep Creek Residential). There are no income limits, so if a high net worth person is purchasing a primary residence and is looking for 100% financing this program could work. Sellers can pay all closing costs and all funds with the exception of $500.00 which can be a gift from a family member.

As you can see there are many products and options available to consumers today. Now more than ever it is important to choose a lender who is experienced and knowledgeable to help you with an advice. For more information about these loan guidelines or to get pre-qualified call Jerry at (301)387-3219 or email him at JMerrick@BBandT.com.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 October 22nd, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Real Estate, Garrett County Real Estate

Buying a vacation or second home in the Deep Creek Lake or Garrett County area can be the attainment of a life’s goal and it’s often a rather sizable investment as well. A strategy to protect this investment should be incorporated into your real estate buying process. One strategy often overlooked and misunderstood is title insurance which can help protect your real estate purchase.

What is Title?

Title is the legal evidence, of right, that a person has to the ownership and possession of land. Since it is possible that someone other than the seller could have legal right to the property you are buying - undisclosed problems could remain even after a careful title search in the public records. These hidden defects can sometimes be found months or even years later in some cases.

A Lender’s Title Insurance Policy Does Not Protect You

If you are borrowing money from a bank to complete your real estate purchase the lender will only require that you purchase a lender’s policy - which only protects the lender and their lien. A lender’s policy does not protect the property owner! Make sure you ask your  settlement attorney or title company for a quote on an Owner’s Policy as well.

Title Insurance Costs

The one time premium for an Owner’s Title Policy is related to the value of the property so it can vary widely in the Deep Creek area. It’s typically on a scale of $1,000 for a $300,000 purchase - and around $3,000 for a real estate purchase of $1,000,000. It is a one time expense that you pay at settlement but it provides coverage for as long as you or your heirs own the property.

Basic Title Insurance Coverage Protects Against

• someone claiming an ownership interest in your title.
• leases, contracts, or options affecting your title.
• someone claiming to have rights affecting your title due to forgery, impersonation, or fraud.
• someone having a right to limit your use of the land.
• unmarketability of your title.
• a defective title.

In addition, a newer enhanced Owner’s Policy provides coverages against  losses caused by zoning violations, subdivision violations, and building permit violations to name a few.

It’s important to ask your settlement attorney or title company what you are covered against and whether or not they are quoting a basic Owner’s Policy or an expanded “enhanced” Owner’s Policy. If you need help, give us a call or send us an e-mail - we’ll get you in contact with one of the local title companies.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 October 5th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Real Estate, Garrett County News, Garrett County Real Estate, News, Wisp Real Estate

Garrett County Officials recently unveiled a number of zoning and subdivision ordinance proposals representing some of the most significant changes in county history. A Public Information Meeting is planned for the evening of October 14 - 7:00 pm at Garrett College - where county officials will roll out the draft ordinances for public review. Further details on the proposed zoning and land use changes can be found on the county’s web site by clicking here.

Scenic Protection Overlay District

The county is proposing sweeping new restrictions in the Deep Creek lake watershed zoning area designed to minimize the visibility of hillside homes from the lake. A “Scenic Protection District” will be applied to twelve areas that exhibit certain slope and view characteristics. People who build homes in these areas may need to plant trees to obscure the visibility of the home from the lake and restricting the view from the new home by up to 80%. The Deep Creek Lake Scenic Protection Overlay District map can be found here.

Expansion of Rural Agricultural and Resource Areas

The county will reclassify a large part of the land in Garrett County into these two categories and provide additional subdivision standards that foster agricultural and natural resource preservation. Some of the more controversial provisions are a mandatory 66% to 80% open space set aside and mandatory clustering of new housing development. According to county officials, provisions will also be made to facilitate estate planning and to assist landowners to do some minor subdivision for economic reasons.

New Commercial Building Design Standards

New standards regarding materials, roof styles and other aspects of building design will be codified and applied to new commercial construction in the lake watershed. Questions have been posed as to the applicability of these standards to other non-residential buildings and there may be action to extend the standards to all non- residential buildings. New home construction will not be affected by this change.

Reclassification of the LR-Lake Residential District

The existing LR district will be split into LR-1 and LR-2. The LR-1 will retain the existing Lake Residential standards and includes all areas bordering the lake or which will be served by county sewer service. The LR-2 will have the minimum lot size increased to two acres with septic systems. A map of the affected areas is available through the county’s web site.

The proposed changes will have a lasting impact on real estate in the Deep Creek Lake area and throughout Garrett County including unzoned areas. Some of these changes will restrict property owner’s rights and potentially impact values. We highly recommend that property owners familiarize themselves with the changes, ask questions, and register your comments!