How to Buy a House in Maryland
Updated 2026-03-02 | Data from Zillow, HUD, Tax Foundation
Avg Home Price
$451,121
Closing Costs
$21,063
4.67% of price
Property Tax Rate
0.9%
$3,633/yr median
Days on Market
30
Median
FHA Loan Limit
$472,030
Attorney Required
Yes
Foreclosure Type
Non-Judicial
Transfer Tax
0.5%
0.25% - 0.50%
Maryland's housing market benefits from its proximity to Washington, D.C., and Baltimore, creating a strong base of government, defense, military, and healthcare employment that insulates the market from the worst economic downturns. The state offers extraordinary geographic diversity in a compact area — from the Eastern Shore's waterfront communities to the western mountain panhandle, with dense suburbs filling the I-95 corridor between Baltimore and D.C. Montgomery and Howard Counties regularly rank among the wealthiest in the nation, with home prices to match, while Baltimore City offers remarkably affordable housing in many neighborhoods. Maryland's high transfer and recordation taxes add significant costs at closing.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Key Facts About Buying in Maryland
- ✓Attorney customarily involved in closing
- ✓Fast-moving market near DC metro
- ✓No general homestead exemption
- ✓Transfer tax varies by county (0.25% - 0.50%)
The Home Buying Process in Maryland
Buying a home in Maryland follows a 10-step process. As an attorney state, you'll need legal representation at closing.
Check Your Credit Score & Finances
Get Pre-Approved for a Mortgage
Find a Real Estate Agent
Search for Homes & Make an Offer
Get a Home Inspection
Secure Your Financing
First-Time Buyer Programs in Maryland
Maryland Mortgage Program
Below-market rates with down payment assistance
Cost of Buying a Home in Maryland
| Down Payment (3.5% FHA) | $15,789 |
| Down Payment (20% Conventional) | $90,224 |
| Average Closing Costs | $21,063 |
| Transfer Tax | $2,256 |
| Annual Property Tax (est.) | $4,060/yr |
Legal & Regulatory Details in Maryland
Homestead Exemption
Not Available
Licensing Authority
Maryland Real Estate Commission
Maryland Real Estate Law Overview
| Conveyance Document | Special-warranty deed |
| Security Instrument | Deed of trust; mortgages sometimes used |
| Foreclosure Process | Non-Judicial |
| Attorney Required at Closing | Yes |
| Deficiency Judgment | Yes |
| Redemption After Sale | Yes |
| Reinstatement Available | Yes |
| Seller Disclosures | Sellers may either complete a disclosure or issue an "as is" disclaimer, but even when selling as-is, they must reveal latent defects (hidden hazards not obvious to a careful buyer). |
