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MD

Buying a Home in Maryland

Complete guide to the Maryland real estate market

$405,000
Median Home Price
0.90%
Property Tax Rate
6,177,224
Population
Northeast
Region

Overview

Maryland offers access to Washington DC's job market, Baltimore's urban revival, and the Chesapeake Bay's natural beauty. The state's diverse economy includes federal employment, healthcare, biotech, and education. Montgomery and Howard counties rank among the wealthiest and best-educated in the nation.

Maryland Real Estate Market

Montgomery and Prince George's counties benefit from DC federal employment and biotech. Howard County offers excellent schools and suburban living. Baltimore has diverse neighborhoods with dramatic price differences. The Eastern Shore and Western Maryland offer more affordable, rural options.

Property Taxes in Maryland

Maryland property taxes are moderate with rates varying by county.

Average effective rate: 1.09%

Annual tax on median home: ~$4,415

Homestead credit: Limits assessment increases to 10% annually

First-Time Buyer Programs

Maryland Mortgage Programs:

  • 1st Time Advantage - Below-market rates
  • Flex Loans - Various down payment options
  • Partner Match - Down payment assistance
  • Maryland SmartBuy - Student debt assistance

Closing Costs in Maryland

Maryland closing costs are moderate to high, typically 2-4% of purchase price.

Common costs include:

  • Title insurance: Based on purchase price
  • Transfer tax: 0.5% state + county additions
  • Recordation tax: $7 per $1,000 (varies by county)
  • Attorney fees: Required

Frequently Asked Questions

Montgomery County offers excellent schools, diverse communities, and strong job access. High prices reflect these amenities. Consider Frederick or outer suburbs for better value with reasonable commutes.

Baltimore offers dramatic neighborhood diversity, from revitalized areas like Canton and Fells Point to more challenged areas. Prices vary enormously. The city offers excellent value compared to DC or NYC but requires careful neighborhood research.

SmartBuy allows first-time buyers to get help paying off student loans at closing. The state pays up to $30,000 in student debt for qualifying buyers purchasing certain homes.