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: DebraSavage dsavage@railey.com 301-616-4085 September 3rd, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate

Well to give an answer this question it takes further explanation of two trends we have seen - 1.  the number of units sold has dramatically fallen - but  2. Deep Creek lakefront properties have still continued to hold their value. Let’s walk-thru this in greater detail;

Deep Creek Lakefront Residential Homes Sold

Year # of Homes Sold # of Homes over $1,000,000

2000          97                                     4

2001          79                                     6

2002         115                                     5

2003          70                                      7

2004          82                                     13

2005          94                                     21

2006          79                                     26

2007          61                                     21

2008          54                                     20

2009 YTD    19                                      5

These numbers are based upon information obtained from MRIS, our local MLS System, showing homes listed as fee simple lakefront residential homes at Deep Creek Lake.

As you can see the number of transactions has fallen starting in 2006 - but please note that until this year (2009) the number of lakefront homes sold with a list price over $1 Million has been a strong and upcoming market.

Deep Creek Lakefront Values have Remained Steady

I took a completely random sampling of properties, both single family and condominium lakefront properties, which are currently listed for sale to establish value.  I reviewed the sales history of these properties from the time we started to track sold prices in our public records and here are the results:

Area of the Lake - Southern

Sold Price                   Transfer Date

$350,000                      April 04

$435,000                       Dec 04

$630,000                       June 05

Current List Price         $ 1,199,000

Thayerville Area of Lake (near Uno’s)

Sold Price                   Transfer Date

$217,000                         Dec 81

$421,250                         Sept 02

Current List Price         $699,000

McHenry Condominium

$125,100                         May 88

$145,500                         April 97

Current List Price      $409,999

Southern Lake  Condominium

$164,750                          Jan 90

Current List Price      $ 375,000

McHenry Condominium

$117,000                          May 92

$160,000                          May 04

$210,000                          Sept 05

Current List Price      $ 217,000

So what does all this say?

The number of homes sold has decreased this year, but we are holding value.  Now I know we are all talking about and hearing about all these price adjustments and decreases.  Yes, we are seeing sellers drop prices, BUT, we are holding value. Home owners are not making as much on the re-sale of their property but they still have not dipped below the value they paid originally.

Remember buyers turn into owners and potentially one day they turn into a seller. That is when everyone wants to know that they made a purchase that has held value.   Deep Creek Lake has historically proven over and over again that it’s a great value purchase.  Considering the conditions the real estate market has seen nationally isn’t it great to know that there is somewhere in this great country that when you buy property, even in huge downturn markets, that you can and will hold value!

So, whether you buy now or buy later (as many happy home owners at Deep Creek Lake have done over the years) our history is strong on value oriented lakefront property.

Now there is a reason to purchase lakefront at Deep Creek Lake.  I think we all wish our 401K and IRA stock accounts had held value like Deep Creek Lake!!! Give us a call or drop us an e-mail - we’ll show you how to buy a vacation property in a market that has proven itself over time!

By: Mike Kennedy mkennedy@railey.com 301-616-6106 August 19th, 2009 Category: Garrett County Real Estate, News

Here is the latest update on the new golf course from Bill Franklin, owner and developer of Thousand Acres at Deep Creek Lake.

Play has started on the front nine!

We are allowing limited play on the completed front nine of the Thousand Acres golf course for friends of the project, members of the club, and for marketing purposes. We have had a staggering amount of grass growth this spring and summer.  The tees and greens are in very good condition while the fairways are in good condition…some areas still need growth and fill in.  The course is very playable and we have been getting some very good feedback.

Flags and greens cups are in as are yardage markers.  Our superintendent, Bob Raley, is very pleased with the greens conditions and anticipates lowering the height of cut from .125” to .100” by the end of the season.  The current stimp rating is in the 7 to 8 range.  Bob is targeting a stimp rating of 10 for the course.  We have all the equipment on site for golf course maintenance and there is a regular mowing schedule in place…the greens show excellent striping. We have been paying particular attention to the course tie in along Poland Run on the lower side and the upper woods line on the upper side.  Bob will use different heights of cut in those tie in areas in order to blend in the transition of the course to the surrounding woods. Some of the attached pics show the tie ins.

Four EZGO gas carts are on site at the sales office which is where play begins. Taylor Made has provided us several sets of demo clubs, R9 series…..men’s right and left, women’s, and the flex and regular shaft clubs.

A very popular biannual magazine, Mountain Discoveries, has run a feature story on the Thousand Acres Golf Course.  I have advertised the Thousand Acres lakefront development in Mountain Discoveries since its inception many, many years ago.

Mountain Discoveries has also created a panoramic movie of golf hole #3.  Other golf holes should be posted soon.

The Thousand Acres at Deep Creek Golf website has been revamped with new pictures posted and you can hear our new ad on WTOP radio.  A new rendering of the project, lakefront area, and HOA grounds is posted showing 18 finishing on the pond closer to Deep Creek Lake.

Most of you know that I live on Thousand Acres, as do my mom and dad.  Our family has a very long history with Thousand Acres, and we are not going anywhere; we are staying right here.  I am working everyday, as are many of our longtime employees, to assure that everything that takes place here is done to make this a successful project.

We have opened some new lots along golf hole 7 (Mountain View) and lakefront lots with one slip (South Shore).

Railey Realty - Deep Creek Lake’s leading real estate brokerage,  is one of the exclusive listing partners in the Thousand Acres development. We do have a select few golf course lots for sale at Thousand Acres. Please contact us if you are interested in these exclusive real estate opportunities located in Thousand Acres at Deep Creek Lake.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 July 24th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate, Wisp Real Estate

As we pass the mid point of 2009, the Deep Creek Lake and Garrett County real estate market continues to feel the impact of the national economy and global recession. Not because we have an abundance of short sales and foreclosures - because we really don’t - the biggest impact right now is the national media and the negative perception of real estate in general.

This perception continues to widen the gap between what buyers are willing to pay and what sellers are willing to accept for their properties in our market. This fact along with tightening credit standards has resulted in less sales - a trend that started about mid-way thru 2006 in our market.

Almost every buyer today wants a “good deal” or is waiting for the bottom - and who can blame them after listening to the national media? However, most of the current real estate listings in Garrett County could be characterized as being “non-distressed” - i.e. the owners would like to sell but they aren’t willing to dramatically take less than what they are asking for in price.  There are some desperate sellers out there right now that need to sell - and they very well may have a property match for what you’re looking for. However, in general,  this is not a market like Las Vegas, or in other parts of the country like Florida, where 50-75% of all current sales are distress sales.

Real Estate Market Snapshot - Deep Creek Lake

June 30 ,2008                   June 30,2009

#               $ Vol                     #         $ Vol

Res              72         $44.4M                   54         $27.4M

Lots             33          $6.3M                    25          $5.7M

Comml          1           $0.5M                      2          $0.7M

Clearly, the number of sales and transactions continues to decline. The only bright spot continues to be the average sold price. According our MLS, the average sold price for a residential property thru the first 6 months of 2009 in the Deep Creek area was $507,942. The average sold price at the end of 2008 was  $583,230 - or a correction of about 13% - not bad considering most other areas of the country - primary home and resort areas - have seen corrections between 25-50% and have seen property values revert back to pre-boom days! In fact this is the first time the average residential sold price in the Deep Creek Lake area has recently declined - even in our softer real estate markets of 2007 and 2008.

However, please take these numbers with a grain of salt - this number includes a wide variety of different types of residential homes sold - from million dollar lakefront homes with a private boat docks - to less expensive lake access condos and town homes - to a modest cabin in the woods with no lake access. If more less expensive property types sell the average sold price will decline. This does not mean the value of a newer lakefront home with Type A dock went down 13%. It just means on average, the different properties that did sell, sold for 13% less than at the end of 2008.

What’s a Seller To Do?

Right now the best thing you can do is realistically price your property to sell based on the last comparable sold and make sure the condition of the property is in tip-top shape. Realistically priced properties in good condition are currently selling - unrealistically priced properties are not! By pricing your property correctly up front you can avoid all the small price reductions later which help keep the buyers on the sidelines waiting for the next price drop.

As a seller the value of your home is NOT based on what you paid for the house, NOT based on how much you have it insured for, NOT based on how much your neighbor’s house is currently sitting on the market for, and NOT based on how much you mortgage balance is - pure and simple your current value is based on what a ready, willing, and able buyer is willing to pay for it - and most buyers right now aren’t going to pay more than what the last comparable sold for.

What’s a Buyer to Do?

Quite simply now is a great time to buy!! A few communities and subdivisions in the lake area have seen values come down making some properties now within reach. Plus interest rates on second homes and investment properties are still low and their is an abundance of properties on the market right now. Now is a great time to negotiate an excellent deal. This situation along with low interest rates won’t last forever.

Overall the Deep Creek Lake real estate market has generally been a safe harbor to weather economic pressures like these throughout the years. Why? Owning property here is more than just a financial investment - it’s an investment in lifestyle as well. We have four seasons of recreation and activities - including Deep Creek Lake and the Wisp Ski Resort - we  have a comfortable year round climate suitable for numerous outdoor activities - including boating, hiking, snow skiing, biking, fishing, golf, and the Garrett Lakes Arts Festival - just to name a few. Along with our close proximity to Pittsburgh, Baltimore, and Washinton D.C. - Garrett County is a great area to reconnect with friends, family, and loved ones.  All markets go up and down - this opportunity may not last very long - give us a call or shoot us an e-mail - we’ll help you seize the opportunity and buy a property today!

By: Mike Kennedy mkennedy@railey.com 301-616-6106 July 9th, 2009 Category: Deep Creek Lake Real Estate, Garrett County Real Estate, Uncategorized

Click on the link below for new real estate listings and homes for sale in the Deep Creek Lake and Garrett County Maryland area offered by Railey Realty - Deep Creek’s leading real estate brokerage. The link below is Google Map with additional information about each new residential, lot/land, and commercial real estate listing.

New Deep Creek Lake, Garrett County, and nearby West Virginia real estate listings - the week of June 29-July 5, 2009

The residential properties are denoted with a push pin and the building lots and acreage are denoted with the balloon graphic. Clicking on the property marker will give you a brief description and a link to additional information and pictures.

New Deep Creek lakefront homes for sale;

94 Stilwater Drive is being offered at $1,499,000. 7 bedrooms, Corian countertops, and had gross rental bookings near $60,000 in 2008 - 2009 should be about the same.

94-stilwater-deep-creek

3161 Turkey Neck Road and 3195 Turkey Neck Road on the southern end of Deep Creek Lake - both properties offer incredible lakefront settings and are very close to the Deep Creek Lake Yacht Club.

3161-turkey-neck-deep-creek-lake

3195-turkey-neck-loop

1019 Lake Shore Drive - one of the few craftsman style homes on Deep Creek Lake offered at $989,000 with a private Type A boat dock.

1019-lakeshore-drive-deep-creek-lake

Please contact us if you are interested in any of these new properties - or any others listed for sale in the area. As a member of MRIS, our local MLS, we can assist with any property listed for sale - even those listed with other area real estate brokerages in Garrett County Maryland.

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

Click on the link below for new real estate listings and homes for sale in the Deep Creek Lake and Garrett County Maryland area offered by Railey Realty last week - Deep Creek’s leading real estate brokerage. The link below is Google Map with additional information about each new residential, lot/land, and commercial real estate listing.

New Deep Creek Lake, Garrett County, and nearby West Virginia real estate listings - the week of June 15-June 21, 2009

The residential properties are denoted with a push pin and the building lots and acreage are denoted with the balloon graphic. Clicking on the property marker will give you a brief description and a link to additional information and pictures.

Two new lakefront homes for sale on Deep Creek Lake - 88 Silver Tree Lane and 2053 Marsh Hill Road.

88 Silver Tree Lane is offered for sale at $1,100,000 -  comes with a assigned boat slip, and has excellent vacation rental income - $64,000 in gross bookings.

2053 Marsh Hill Road is offered for sale at $1,250,000 - 190 feet of lakefront and less than 1 mile to the Wisp Ski Resort.

Also offered for sale is the Oakland Car Wash just north of the town of Oakland Maryland. The list price is $649,000. Great cash flow with this commercial real estate located on the busiest part of Rt. 219/Garrett Highway. This is a great opportunity to take advantage of the recent permanent closure of the self serve bays at the competing Super Car Wash - which was located behind the Sheetz gas station in downtown Oakland Maryland. Sheetz in Oakland is currently remodeling. For someone looking for business opportunities or an easy to run small business in Garrett County this may be it.

Please contact us if you are interested in any of these new properties - or any others listed for sale in the area. As a member of MRIS, our local MLS, we can assist with any property listed for sale - even those listed with other area real estate brokerages in Garrett County Maryland.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 19th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate, Uncategorized, Wisp Real Estate

Just recently, our local MLS (multiple list service) that serves the Deep Creek Lake and Garrett County Maryland area added the ability to search for foreclosures, potential short sales, and bank owned (REO) properties. These types of properties are often referred to as “distressed properties”.  Most real estate buyers and investors looking for bargains often target these distressed properties first.

As I have wrote about in previous posts - our local real estate market here at Deep Creek Lake doesn’t have a significant amount of these distress sale opportunities - and this is still the case. This is unlike what is happening in other resort markets and is testament to the overall strength of our market!!

As of today here is a summary of the total number of distress sales in Garrett County;

Deep Creek Lake and Garrett County Short Sales

Potential Short Sales - 10 active residential properties. Only 1 of the 10 is currently under contract or sale pending - an Overlook Villas townhome atop Wisp Mountain listed at $649,000. Of these 10 - 5 are located in the general Deep Creek Lake/Wisp Ski Resort area;

• - Red Run lakefront townhome listed for sale at $299,950.
• - Lakeland Estates lake view townhome (across from The Creamery) listed for sale at $220,000.
• - Lake access home on Brenneman Lane in the Summit subdivision listed for $649,000.
• - Lake access home on Glen Cove Road in Swanton listed for $549,000. No boat slip with this one.
• - The Overlook Villas townhome currently under contract.

The other 5 properties are located in the outlying areas of Garrett County - most in the Oakland, Mt. Lake Park and southern Garrett County area.

A short sale is basically a situation where the current homeowner owes more to the bank or lending institution than what the property is currently worth.

Deep Creek Lake and Garrett County Foreclosures

Foreclosures - 12 active residential properties currently for sale in Garrett County. Nearly all have already gone thru the foreclosure process and were bought back by the bank at the public auction. The various banks are now offering these REO (real estate owned) classified assets for sale thru local real estate brokers. Of the 12 foreclosures, 6 are currently under contract. Only 2 of the 12 are located in the Deep Creek Lake area - a split lakefront home on State Park Road with a Type A dock listed for $428,601 and a house located on Route 219 near the Deep Creek Bridge.

As a member of MRIS (the name of our local mls), we at Railey Realty can provide you a complete list of these distressed properties along with additional details and photos - and we can even set you up to receive automatic e-mails when any new distressed properties hit the market. If you are looking for a bargain or a great deal - give us a call or shoot us an e-mail - we’ll be more than happy to help you search for these types of properties or any others that may interest you.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 May 26th, 2009 Category: Deep Creek Lake Market Update, Garrett County Real Estate, Wisp Ski Resort

Click on the link below for new real estate listings and homes for sale in the Deep Creek Lake and Garrett County Maryland area offered by Railey Realty - Deep Creek’s leading real estate brokerage.

New Deep Creek Lake, Garrett County, and nearby West Virginia real estate listings - the week of May 17-24, 2009

The residential properties are denoted with a push pin and the building lots and acreage are denoted with the balloon graphic. Clicking on the property marker will give you a brief description and a link to additional pictures.

Please contact us if you are interested in any of these new properties - or any others listed for sale in the area. As a member of MRIS, our local MLS, we can assist with any property listed for sale - even those listed with other brokerages.

By: JonBell jbell@railey.com 301-501-0735 May 13th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Interest Rates and Loans, Obtaining a Mortgage

My friend and fellow real estate agent emailed me a link to this recent Washington Post article titled “Want a Second Home? Save Up.” Unfortunately, she didn’t read the whole article before she sent the email and assumed that it was all bad news for the Deep Creek Lake area real estate market. She should have read the article and not just the title.

In my opinion this article is very positive with some great success stories! I encourage all potential or prospective second and vacation home buyers who are attempting to time the real estate market to “actually read it”. I will provide a link to the full article at the bottom of this post.

Several points of interest should be noted:

1. Dudley Dworken of Potomac, MD had been searching for the perfect Ocean City, MD beach front condo for over 2 years and recently purchased because he thinks the market has bottomed out and he found the perfect property at the “right price”. Dworken is quoted in the article stating ” I think we bought at the perfect time.”
2. Kathy Panco, Dworken’s real estate agent, notes that the large housing inventory has begun to shrink “possibly due to increased demand.”
3. Tom and Johanna Wells got creative with financing and were able to purchase a second home in Virginia Beach, VA. The buyers had to overcome a few obstacles to make their purchase a reality but Tom is quoted in the article noting that “in light of what’s happened with the stock market and my IRA account, I’d rather put the money into this condo, something that will appreciate and that we can enjoy.”

The Deep Creek Lake area is blessed with several great banks and mortgage brokers. Buyer’s credit history, savings and monthly income are strongly evaluated during the loan process (which they should be) but most local lenders have 10% down or better second home loan programs and mortgage interest rates that are still at historical lows.

What Are The Current Deep Creek Lake Second Home Mortgage Rates?
Rate’s below provided by Deep Creek Lake BB&T as of 4/28/09

• 30 year fixed purchase under $417,000 - 4.875%
• 30 year fixed purchase over $417,000 JUMBO- 5.625%
• 15 year fixed purchase over $417,000 - 4.500%

Contact: Jerry Merrick of BB&T for more information. Office phone: (301) 387-3219
Email: JMerrick@BBandT.com

How is the Deep Creek Lake Real Estate Market?
Real estate sales in the Deep Creek Lake Area and Garrett County seem to be improving. Reports show that Garrett County, Maryland residential sales volume has almost doubled in the past 2 months.

• On February 28th 2009 there were 27 houses under contract (sale pending) and 9 building lots.
• On April 30th 2009 there were 46 houses under contract and 7 building lots under contract (sale pending).

How is Railey Realty Doing?
Of the 36 sale pending properties as of February 28th 2009, Railey Realty represented 17 of the sellers in these transactions. Of the 53 sale pending properties as of April 30th 2009, Railey Realty represented 25 of the sellers in these transactions.

*Real Estate Market Statistics provided by MRIS the Deep Creek Lake Area MLS service provider.*

Read “Want a Second Home? Save Up.” on the Washington post website at the following link: http://www.washingtonpost.com/wp-dyn/content/article/2009/04/17/AR2009041701646.html?referrer=emailarticle

By: Mike Kennedy mkennedy@railey.com 301-616-6106 May 1st, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate, Wisp Real Estate

Almost daily I get asked the question “How is the real estate market doing at Deep Creek Lake?” - and then most times the discussion eventually turns towards the national economy.

I certainly don’t claim to be an expert on the national economy but like most people I try to educate myself and learn as much as I can. Recently I ran across an article in the Pittsburgh Post-Gazette that is very well written, easy to understand, and seems to suggest we may have just “hit the bottom” from a national economic perspective and how we might be turning the corner towards a recovery.

As for the real estate market here at Deep Creek Lake and the rest of Garrett County most of the buyers we work with these days seem to waiting until someone in the national media proclaims that we’ve “hit the bottom”. I can tell you over the past month things have picked up in our market. As of today there are 45 residential properties currently under contract. A few months ago that number was in the teens!  Now does this mean sales activity will pick back up again to the 2001-2005 real estate boom levels?  I doubt it - but this is a nice subtle, positive trend to see right now.  And maybe it’s a trend that we’ll be able to look back on in a year or two and say - “that was the bottom”??

If you are an investor or someone buying long-term for lifestyle purposes there are some good deals and great properties very much available right now at Deep Creek Lake. That may change if the pace of sales continues to improve like it has recently.  As history has shown those people and investors that buy near the bottom usually do much better than those who wait until the media proclaims we’re in a recovery. By time the media reports we’re in a recovery it’s usually too late to still get a good deal!

If you’re thinking about buying a vacation home in the Deep Creek Lake area and want to work with the area’s most experienced and knowledgeable Realtors give us a call at (800) 544-2425 or drop us an e-mail at info@railey.com. We can expertly guide you through the vacation home buying process.