Summer is here and the beach towns have been busy this past week. After a very strong Memorial Day weekend, it looks like local businesses are going to have a great summer season. The old danger signals on the horizon are the continued troubles in the Eurozone and our own country’s seeming inability to create jobs.
In the meantime, today brings the Bethany Beach Craft Show on the Boardwalk. Looks to be a great day after the early morning rain. See you there maybe?
Here’s the news.
Maryland Withholding Changes:
Recent changes to the “top marginal State income tax rate for individuals” (i.e., the highest individual tax bracket) have the effect of increasing the withholding required for sales of property by nonresident individuals. Effective June 1, 2012, withholding for nonresident individuals has been increased from 6.75% to 7.0%. The rate of 8.25% for nonresident entity sellers remains unchanged. Deeds dated and fully acknowledged before notaries prior to June 1, 2012, will be subject to the 6.75% rate for nonresident individuals. Deeds dated, or that include any acknowledgement after May 31, 2012, will be subject to the 7.0% rate for nonresident individuals. As always: Check with your tax advisor & settlement agent.
Delaware Transfer Tax News:
Two items in Delaware that involve transfer taxes.
1) FIRST TIME HOMEBUYERS TRANSFER TAX EXEMPTION: The Joint Finance Committee will be meeting Monday, June 4th to finish up allocating money for the state’s budget. If you haven’t taken the time to contact JFC members to tell them that it’s time to get Delaware moving again by supporting The First Time Homebuyers Transfer Tax Exemption, click HERE and our website makes it easy for you!
2) STATUS ON TRANSFER TAX COLLECTION IN NEW CASTLE COUNTY ON FREDDIE MAC & FANNIE MAE SALES: Previously, New Castle County had decided to start collecting transfer tax on Freddie and Fannie property sales on the basis that these entities were not true government agencies under the transfer tax exemption rules. However, on May 31st, the county decided to let the courts make a determination on this issue. It looks like for the time being, transfer taxes will continue to be exempted on Freddie and Fannie REO sales. Stay tuned and keep in touch with your settlement attorney. Here’s a copy of the letter from the County announcing the decision: New Castle Transfer Tax Issue
Mortgage bond prices finished the week higher which pushed mortgage interest rates lower. Rates were helped by weaker than expected ADP employment figures, higher than expected weekly jobless claims, and the Friday employment report. Unemployment came in at 8.2%, expected @ 8.1%. Non-farm payrolls rose a disappointing 69k. Analysts expected payrolls to increase 150k. Tame inflation readings and continued euro zone weakness helped rates even more. The trouble in Europe was heightened as reports indicated Spain saw a massive investor exodus. Spain is struggling with high unemployment, a troubled banking sector, and escalating borrowing costs. The flight to quality buying of U.S. debt instruments helped mortgage interest rates finish the week better by about 3/4 of a discount point.
My current rate sheet for real estate professionals can be found here: <a href="https://www.box.com/s/8ae077adfcea9cc7efd0" title="http://www.box.net/shared/bxjyydagau
http://www.box.net/shared/uks538ajcm“>Baxter Rate Sheet
Have a great weekend and never hesitate to contact me if you need something – hit the cell, send an email, pop a text, or contact me on Twitter or Facebook. And, if you need to get a buyer pre-approved? Just send them to my secure online application – Baxter Online Mortgage Application – Click on “Start Your Application”
And here’s an easy way to introduce me to clients when you make a referral. Send them to my About.Me Profile: Click Here
When talking with clients, hosting open houses, or just emailing information to them, it often helps to provide a free report or article on a topic that would be of interest to the potential buyer or seller. I have included below links to Free Reports that you can download, print and mail or fax or just email to your clients and prospects. I hope you find them helpful.
Here are Free Reports for your clients!
Buying a Home:
Have a GREAT weekend!