By: DebraSavage dsavage@railey.com 301-616-4085 June 11th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Real Estate, Fractional Ownership, Garrett County Real Estate, Wisp Real Estate

People seem to be tightening their belts and looking for the best, most reasonable and smart way to enjoy second home ownership - especially here at Deep Creek Lake. This new economy does not require complete sacrifice, but it may require smarter spending and use of our resources.

This is where Fractional Home Ownership comes into play. Typical Deep Creek Lake vacation homes are often vacant for weeks or months on end while racking up the expenses such as: electric, heat, mortgage, home insurance; all the while gathering dust and needing maintenance. And even if you rent them out you probably are experiencing the frustrations that sometimes exist with maintenance issues of accelerated wear and tear on the home and furnishings.

With Fractional Home Ownership your expenses are shared with other home owners who care about the property just the way you care for your own home. The home is fully occupied by owners and maintained each week upon the exit of the current owner.

You receive an undivided deeded interest in the property. These Fractional Homes are top of the line. So instead of paying 1.2 million to 1.5 million for a gorgeous lakefront home, that you will probably only use a very few times a year, you still get your use at a Fraction of the cost while sharing the home with other owners who care and respect their ownership. Second Homes at Deep Creek Lake currently offer a 5 Bedroom Lakefront Fractional Ownership for just $349,000.

Second Homes at Deep Creek Lake also offers that top of the mountain feel with their Fractional Overlook Villas home for 269,900. This property sits atop Wisp Ski Resort mountain with stunning water views of Deep Creek Lake Maryland.

So in these challenging economic times, having a premier Deep Creek lakefront home with Fractional Home Ownership, offers you the right to “Have Your Dream Home at a Fraction of the Cost”. Isn’t it great when you can have your cake and eat it too!!!!!!

Give us a call or drop us an e-mail if you are interested in learning about the only fractional ownership opportunities in western Maryland’s four season resort - Deep Creek Lake and Garrett County.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 9th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, 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 - Deep Creek’s leading real estate brokerage.

New Deep Creek Lake, Garrett County, and nearby West Virginia real estate listings - the week of May 25-June 7, 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.

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 February 10th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Real Estate, Interest Rates and Loans, Obtaining a Mortgage, Uncategorized

This afternoon I had a conversation with local mortgage lender Jerry Merrick of BB&T Bank.  He had mentioned that refinance interest rates in the Deep Creek Lake and Garrett County areas are actually higher than purchase rates and no one seems to be noticing this. Conforming mortgage rates on a home  purchase are still below 5%! I questioned why the discrepancy in rates and below is his response.

While interest rates remain historically low some lenders are raising their rates to control the flow of refinance applications. The typical 30 year fixed rate refinance loan is priced at 5.125% today on any loan amount under $417,000. The matter is simply supply and demand, meaning that lenders are offering very low rates but they are typically understaffed and lack the support necessary to get these deals to closing prior to the rate lock expiration dates.

Consumers should be leary of using lenders that they are unfamiliar with who may be offering lower than market rates. The first item to address is how long is my rate guaranteed to be locked in for, and what are my options if the rate does expire prior to settlement? Ask yourself the question what good is a below market rate if you never go to settlement. At BB&T our clients are locked in for 60 days in order to ensure the integrity of their lock. Those terms are disclosed upfront in the form of a signed rate lock disclosure.

The flipside represents the purchase market which finds lenders still very aggressively priced. Purchase loans are priced today at 4.875% on 30 year fixed rate products. That’s a solid .250% below what the refinance transaction costs. The difference is purchase money transactions are moving faster and have priority in underwriting, because unlike the refinance these loans are new loans for the lender and the refinance transactions are already homeowners.

 With so many variables affecting the market, it’s more important than ever to have an advise -based strategy when structuring your loan, I appreciate you trusting me with this role. 

Jerry Merrick

Deep Creek Lake’s #1 Lender

Vice President

BB&T Mortgage

Mortgage Loan Consultant

301-387-3219 Phone

301-387-5393 Fax

301-616-0037 Mobile

21287 Garrett Hwy suite 500

Oakland, MD  21550

www.bbt.com/mlo/jmerrick

By: Mike Kennedy mkennedy@railey.com 301-616-6106 January 27th, 2009 Category: Deep Creek Lake Market Update, Deep Creek Lake Real Estate

Garrett County’s Planning and Land Development staff recently released their annual report that shows a continued declining trend in the amount of new subdivisions and approved building lots. However, the report does not break out the subdivisions and lots in the Deep Creek Lake zoning watershed - but instead lumps all Garrett County land statistics together. However, it’s a safe assumption that a majority of these statistics are in the general Deep Creek Lake area.

Subdivisions and Lots Down

The total number of approved new building lots in 2008 was 85 - this is down from a peak of 382 approved building lots in 2005. The Deep Creek Lake & Garrett County real estate market has experienced a sharp increase in the total number of available lake area building lots for sale over the past few years - mostly owned by developers, speculators, and flippers who purchased and developed a few years ago.  Hopefully this decrease in applications and new subdivisions will take pressure off of rising inventory.  

High Inventory of Lake Area Lots

If you are a prospective lot or land buyer - you currently have a tremendous amount of choice in the general Deep Creek Lake area - these are home sites that are NOT lakefront, have NO lake access, and NO lake views. As of today, our MLS is showing 111 of these types of lots for sale - with a majority of them priced in the $89,000-$139,000 range. For the past two years, the total number of similar lots on the market was in the 150 range - so the inventory has come down some over the past year.  This number does include about 17 home sites atop Wisp Ski Resort - some with slope access.

Low Inventory of Lakefront and Lake Access Lots

However, the number of choices and inventory levels decrease greatly as you get closer to Deep Creek Lake.  Only 12 true lakefront lots are currently on the market - ranging in price from $400,000 to $1,495,000 in Holy Cross. And only 14 lake access lots with deeded boat slips are currently for sale - ranging in price from $165,000 to $525,000. These lower inventory levels on the lake should continue well into the future as 63 of the 65 miles of shoreline around Deep Creek have already been developed.  The only larger parcels yet undeveloped are Thousand Acres, Pergin Farm, and a small area between Holy Cross and the end of Boy Scout Road. Contact us if you are in the market for a lot or thinking about buying some land - the lot and land buying process can be a very tricky in this area - there are many factors that need to be considered and evaluated.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 January 7th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Real Estate, News

DNR Policy Change To Impact Deep Creek Lakefront Property Owners

There has been a change in DNR’s policy with regard to how older “grandfathered” improvements on the Deep Creek Lake buffer strip will be recognized. Up until now, any improvement - such as a walkway, stone path, pavilion, or shed - that existed with Penelec’s or DNR’s approval prior to DNR’s original management of the lake in 1980, or before DNR’s first set of regulations in 1986, did not require a permit. The permits were intended for new improvements only and DNR would simply document the older grandfathered improvement in their site inspection reports.

DNR has not required permits for these improvements for 28 years. DNR Lake Manager Carolyn Mathews has informed the Garrett County Board of Realtors that they are reinterpreting the regulation and are requiring property owners to apply for a Special Permit when DNR identifies a grandfathered improvement during a site inspection. DNR also reserves the right to require the removal or significant alterations to the grandfathered improvement and the permitting process provides the method and leverage to do so.

What does this mean to lakefront homeowners or those looking to buy lakefront real estate? Quite simply, if you have an existing improvement on the buffer strip and don’t have a permit - at some point DNR will approach you to apply for a permit without any guarantees they will approve it - even if it is “grandfathered.” And for those looking at buying lakefront property - pay very close attention to what you see down by the lakefront. If there is an improvement, such as a deck or shed, make sure the current owner can provide documentation that the improvement has been approved along with a special permit. If the owner can’t provide a current permit, make them go thru the permitting process with DNR. There are examples where DNR has conducted a buffer strip inspection, either at the request of the property owner, the buyer, or a Realtor® prior to closing and then required significant modifications to or the removal of the formerly grandfathered improvement. Depending on the terms of the contract of sale, and the timing of DNR’s inspection, this might impact your closing by introducing unexpected DNR permit issues and the costs of complying with DNR’s orders.

(Post written in conjunction with Paul Durham)

By: Mike Kennedy mkennedy@railey.com 301-616-6106 October 7th, 2008 Category: Deep Creek Lake Real Estate, News

DNR Deep Creek Lake Manager Carolyn Mathews reports that her office is pursuing several civil cases in circuit court involving activities on certain buydowns that are in violation of the provisions of the Conservation Easement. The most difficult situations appear to be grading and filling of the buffer strip, especially after new home construction.

DNR is also adopting a new policy that any maintenance to existing and approved improvements on the buffer strip requires the prior notification and possibly the approval of the Deep Creek Lake management office. The DNR may require a new Special Permit to be applied for and be issued before maintenance may occur.

This is a departure from historic practice and many property owners routinely provide for ongoing maintenance of structures and improvements that have been permitted. Garrett County Board of Realtors Government Affairs Director Paul Durham recommended to DNR staff that they consider modifications to their permit language to better inform property owners of this new policy. This may also require changes to the lake regulations to better and more specifically articulate DNR’s maintenance permitting requirements.

DNR is enforcing this policy through the issuance of criminal citations. Violations of the lake regulations are a misdemeanor punishable by a fine up to $1000 and the potential for imprisonment of up to one year.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 July 3rd, 2008 Category: Deep Creek Lake, News

DNR Deep Creek Lake Manager Carolyn Mathews reports that their internal review of a number of regulation changes that effect how and where PWCs may be kept at dock permit sites on the lake has been delayed by about a month. The review was scheduled to be sent to Annapolis for review in July, but that time frame has been extended to August. Those that own real estate or houses at Deep Creek Lake will have an opportunity to review the proposal once it is made available for public comment.

 Ms. Mathews did say that the goal is to change the regulations to prohibit the storage of PWCs on the buffer strip and to instead allow a limited number to be moored at docks, in addition to any other permitted powerboats. Commercial sites will not receive any additional PWC mooring rights over what they are already permitted.

 The effect on property owners could be positive or negative depending on the number of PWCs they have traditionally stored on shore at their permit site. On the positive side, from what we have heard, the proposal is to possibly allow each Type A dock permit holder the right to be able to moor two PWCs at their dock. However, on the negative side it is very much unclear what will happen to those property owners who do not have a private dock and currently have 1 boat slip in a common dock. Many lake access property owners in the various subdivisions around the lake keep their power boat moored in the 1 slip they are allocated in their common dock - and then keep their PWC stored on the shoreline. DNR also intends to phase out the previously permitted PWC stands that some property owners use.

 Also, on The Deep Creek Blog, Becky Sciullo writes that DNR has stepped up their patrols on Deep Creek Lake and intends to keep doing so all summer long to crack down on dangerous boating activities.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 April 3rd, 2008 Category: Deep Creek Lake Real Estate

The Deep Creek Lake Maryland area was just recently named “Best Four Season Spot” by Forbes Magazine. The article appeared yesterday in the online edition of Forbes and quoted our own Railey Realty salesperson Adam Cowgill. The article’s “In Depth” slideshow also displays one of our lakefront homes for sale, listed by Jon Bell - a $3.3 million custom home on Paradise Point Road.

Very rarely does the Deep Creek Lake real estate market get the national media attention it deserves. It’s nice to finally see a respected media company such as Forbes take notice of the Deep Creek Lake/Garrett County area and favorably compare us to such bigger named resort areas as Lake Tahoe, Bal Harbour Florida, Telluride, the Hamptons, and Hawaii.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 March 14th, 2008 Category: 1031 Tax Deferred Exchanges, Deep Creek Lake Real Estate

This past week the IRS released a ruling that finally addresses some of the questions surrounding vacation and second homes and how they can qualify as a safe harbor in a 1031 tax deferred exchange. A 1031 tax deferred exchange is very common at Deep Creek Lake because of the mixture of homes that make up our market - a majority of vacation homes around the lake are used strictly for personal use on weekends, holidays, and summers - but we also have many homes where the owners will use the property for their own personal enjoyment and also rent it out as a vacation rental.

Previously, their has been a lot of grey area on this subject - the questions most asked were “How much personal use is too much if I want my property to qualify?” and “How long do I have to hold this property before it qualifies?”

With this ruling the IRS now says that if you own a vacation home and have some personal use in it, you should own it for at least two years before an exchange, rent it out at fair market value for at least 14 days in each of the 2 years, and limit personal use to 14 days or 10% of the days rented, whichever is greater. If you follow these guidelines and standards, the IRS states they will not challenge whether or not your property qualifies for a 1031 exchange.

The bottom line is that this is pretty good news for certain people looking to buy or sell a second home at Deep Creek Lake. This ruling can provide much more flexibility to someone down the road looking to change locations. For example, someone who now owns condo in Ocean City - uses it occasionally and has followed the rules above - can now sell that property, pay no taxes on any gain, and then buy something at Deep Creek Lake. However, it must be pointed out that the replacement property would also have to meet the standards above and a few other rules as well to qualify.

Disclaimer - as always this post should not be construed as any type of tax or legal advice. Consult with your CPA or Tax Attorney regarding for further explanation on these types of transactions.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 March 11th, 2008 Category: Uncategorized

Since our blog is mostly about real estate happenings in and around the Deep Creek Lake area, we wanted to tell you about another blog that reports on all the other things happening and going on at the lake that aren’t necessarily real estate related. This new blog is called The Deep Creek Blog and is authored by Becky Sciullo. Becky’s family has owned lake property for many years and she has spent her whole life vacationing at Deep Creek.

She does a great job reporting all the local news, happenings, things-to-do, and events that are going on in the Deep Creek Lake area. For second home owners who only come up on weekends, her blog is great way to stay current with everything that is happening in Garrett County.

On a side note, her father paints and produces some incredible art work of the different scenes found in and around Deep Creek Lake and Garrett County. You can view his work here. How many of you remember Thayer’s Barn, the old Glendale Bridge, and Cabin Lodge? I can remember the old Glendale Bridge and the fact that it was “one way” only! You had to pull your car up to the entrance, look down to make sure no one else was coming the other way, and then you could go. Thayer’s Barn and Cabin Lodge were before my time, but I’m fairly certain Thayer’s Barn burnt down and was located where the Creamery is now along Route 219.