07/20/2017 by Suzie Coronel 3 Comments
2816 E Baltimore St – Park Front – CHAP TAX CREDIT
Throughout most of the year, locals flock to Patterson Park for many different reasons. Baltimore Sports & Social Club (BSSC) keeps the fields busy with young professionals. Friends of Patterson Park host free concerts throughout the summer months. It’s become part of the route for the Baltimore Marathon, several road bike races, and the popular Kinetic Sculpture race. There’s a pond, a pool, tennis courts, an ice skating rink, a playground, a dog park and acres and acres of park grounds. Below is a picture of last year’s Halloween parade on the park and a picture of neighbors on the park for a free concert.
This park is 2816 E Baltimore Street‘s front yard! 2816 E Baltimore was is a full gut renovation. It stands 4 levels high w/ 2,470 finished sq ft, a parking pad, 2 tier roof deck, and 9 years left on the CHAP tax credit. With 5 large bedrooms, 4.5 baths, a wet bar, and a gourmet kitchen this house is great for entertaining but can also fit your growing family.
Above I mentioned that this house also has a CHAP tax credit. You may have heard about these credits but do you know how they work?
2816 E Baltimore St was purchased in the Spring of 2015. Before anything is done to the property, the appraiser from the CHAP office comes to put a value on the property. The pre-improvement appraisal amount for this property came in at $180,000.00. After the renovation was completed the CHAP appraiser comes back for the Post-improvement appraisal. The house turned out beautiful, see the pictures below. The post-improvement appraisal amount came in at $490,000.00.
CHAP tax credits: Here is the math breakdown:
CHAP appraisal before renovation is 180k
CHAP appraisal after renovation is 490k.
The "locked in" credit is 310k x 2.32 = $7,192.00/year in taxes ($599.33/month)
So let’s say the state’s assessment after renovation is 500k.
Normal tax bill for the city portion is 500k x 2.32 = $11,600year ($966.67/month)
CHAP credit is $7,192/year
TOTAL AMOUNT OF CITY TAX $11,600 – $7,192 = $4,408.00 ($367.34/month)
Buyer will save about $367.34 a month, over 4k a year!
***These numbers are good estimates but not exact.
When purchasing a CHAP tax credit house it is important to get the CHAP appraised amounts so that you can calculate the taxes that the buyer will be paying. The above example should help you calculate but in the event you still have questions, please contact Suzie Coronel at suzie@CrabbyHomes.com or the cell number in the banner below.