Daily Real Estate News | September 26, 2007
Tight Market Turns Upgrades into Standards
As the market for new homes has tightened, builders say they are increasing what’s standard in properties.
"The inventory of builders is up so high that to reduce their inventory and get back to the previous levels of success, they are adding more incentives, which become standard," says Victor Furnells, national director at market researcher Hanley Wood Market Intelligence.
For instance, he said, no matter what the home price is, today there are more granite and Corian countertops.
Making popular features standard cuts down on the sticker shock that drives some people away from new homes. "People are discouraged when they walk into a home starting at $500,000 and find out it costs $1 million," says Kreisten Thomas, sales manager at Coles Run Manor, a Stanley Martin development in Virginia.
Thursday, September 27, 2007
Wednesday, September 26, 2007
Home Sales for August - State Wide Report
N.C. Existing Home Sales Remain Constant in August; Mountain Areas Show Improvement
(Greensboro)—North Carolina existing home sales remained consistent in August with a 1 percent decrease in percentage of units sold compared to the previous month.
According to statistics compiled by the North Carolina Association of REALTORS®, 12,218 units were sold in August. Total sales dollars for the month were $2,817,012,555, and the average existing home sales price was up 5 percent to $230,562 compared to August 2006.
Hendersonville posted exceptional growth with a 6 percent increase in the past month, bringing the city to a 7 percent increase in year-to-date sales growth. Both the Triangle and Wilson continued to carry a positive growth into August, posting a respective 5 and 6 percent increase in total dollar sales thus far this year. Asheville and Hendersonville, along with Jacksonville, posted the highest year-to-date price appreciation at 9 percent.
(Greensboro)—North Carolina existing home sales remained consistent in August with a 1 percent decrease in percentage of units sold compared to the previous month.
According to statistics compiled by the North Carolina Association of REALTORS®, 12,218 units were sold in August. Total sales dollars for the month were $2,817,012,555, and the average existing home sales price was up 5 percent to $230,562 compared to August 2006.
Hendersonville posted exceptional growth with a 6 percent increase in the past month, bringing the city to a 7 percent increase in year-to-date sales growth. Both the Triangle and Wilson continued to carry a positive growth into August, posting a respective 5 and 6 percent increase in total dollar sales thus far this year. Asheville and Hendersonville, along with Jacksonville, posted the highest year-to-date price appreciation at 9 percent.
Wednesday, September 19, 2007
Interest Rates
Daily Real Estate News | September 19, 2007
Fed Half-Point Rate Cut to Help Home Buyers
The Federal Reserve Tuesday sliced one-half a percentage point off the federal funds rate, cutting it to 4.75 percent from 5.25 percent.
It also cut its discount rate by the same amount, also bringing it to 5.25 percent.
The cuts could be a mixed blessing for homebuyers, pushing fixed-rate mortgages higher if inflation worries grow, economists say.
But relief could come in other ways. Consumers should start feeling the impact quickly in the form of reduced payments on home-equity lines of credit, credit cards and some car loans.
There is likely to be little immediate relief for borrowers with many adjustable-rate mortgages because the rates on roughly half of these loans are tied to the London interbank offered rate (LIBOR). Libor recently jumped sharply above the Fed funds rate because of the continuing credit crunch in the markets.
"If Libor doesn't come down, there is no relief" for many mortgage borrowers, says James Bianco, president of Bianco Research LLC, a market-research firm in Chicago.
Source: The Wall Street Journal, Jane J. Kim and Ruth Simon (09/19/2007)
Fed Half-Point Rate Cut to Help Home Buyers
The Federal Reserve Tuesday sliced one-half a percentage point off the federal funds rate, cutting it to 4.75 percent from 5.25 percent.
It also cut its discount rate by the same amount, also bringing it to 5.25 percent.
The cuts could be a mixed blessing for homebuyers, pushing fixed-rate mortgages higher if inflation worries grow, economists say.
But relief could come in other ways. Consumers should start feeling the impact quickly in the form of reduced payments on home-equity lines of credit, credit cards and some car loans.
There is likely to be little immediate relief for borrowers with many adjustable-rate mortgages because the rates on roughly half of these loans are tied to the London interbank offered rate (LIBOR). Libor recently jumped sharply above the Fed funds rate because of the continuing credit crunch in the markets.
"If Libor doesn't come down, there is no relief" for many mortgage borrowers, says James Bianco, president of Bianco Research LLC, a market-research firm in Chicago.
Source: The Wall Street Journal, Jane J. Kim and Ruth Simon (09/19/2007)
Tuesday, September 18, 2007
Do Not Call Registry - Time to Re Up!
Anyone who is interested in not getting those telemarketing calls during dinner, needs to be signing up again for the do not call registry. The initial 5 year period is up, hard to believe, so if you were in the first wave of signups, it is time to do so again. And they have made it easy. Simply log on to the website, www.donotcall.gov and you can register 3 phone numbers at a time. There is one more verification step, but after that you are good to go for another five years.
Once you have registered, your phone number registration will be effective for 5 years. It will be illegal for most telemarketers to call you, and you will be able to file a complaint if a telemarketer does call you. The website www.donotcall.gov provides information about filing a complaint.
Just a little public service announcement!
Once you have registered, your phone number registration will be effective for 5 years. It will be illegal for most telemarketers to call you, and you will be able to file a complaint if a telemarketer does call you. The website www.donotcall.gov provides information about filing a complaint.
Just a little public service announcement!
Monday, September 17, 2007
Reasons to Buy Your Retirement Home ...
Even if you are years away from moving ...
If you plan on retiring to a vacation-like property, and can afford it now, it is a good idea to buy, and this is why:
Prices will not weaken forever, and they will certainly be higher in 5-10 years when you may be ready for that retirement house in a resort like area.
Waterfront, view homes, and other resort properties will rise in price, the fastest.
Other reasons to buy now to live full time later:
Begin building a social network in the area
A place to bring the family together, buy while your kids are still at home and they will feel connected, and come to visit often with their families later on.
You can use rentals to help make the payments in the early years.
Food for thought! Give us a call and see what your money can buy at the Crystal Coast!
If you plan on retiring to a vacation-like property, and can afford it now, it is a good idea to buy, and this is why:
Prices will not weaken forever, and they will certainly be higher in 5-10 years when you may be ready for that retirement house in a resort like area.
Waterfront, view homes, and other resort properties will rise in price, the fastest.
Other reasons to buy now to live full time later:
Begin building a social network in the area
A place to bring the family together, buy while your kids are still at home and they will feel connected, and come to visit often with their families later on.
You can use rentals to help make the payments in the early years.
Food for thought! Give us a call and see what your money can buy at the Crystal Coast!
Thursday, September 6, 2007
For Sellers - Selling in Today's Market
In just about all real estate markets, there are currently more homes on the market than there are qualified buyers. That means that the competition factor between houses has ratcheted up several levels.
If you are serious about selling your home you must present the most attractive package at the best price or buyers will buy your neighbor’s house and yours will remain on the market.
Get your lawn, trees, flower beds spruced up. Plant some colorful flowers (while you still have some summer left), keep the lawn mowed and the trees pruned. If you notice that the trim on your house is a bit worn, get out the paint brush and spruce it up. Make sure your front door is in the best possible condition.
As you enter your home, try to look at it like a potential buyer will look at it. Lose the family photos, box up the collections, get your clutter level down to the bare minimum. It goes without saying that your home must be spotlessly clean, closets shouldn’t look packed to the gills and, maybe more importantly, you can’t have any odors in your house. No pet odors, no tobacco odors, no cooking odors (other than maybe chocolate chip cookies baking). That doesn’t mean to crank up the room deodorizors. Some people find those frangrances very overpowering and some people are highly alergic to them. Just make sure it smells clean and fresh.
If you’ve gone a little wild and individualistic with your paint choices (maybe let your 12 year old choose her own wall color), seriously consider repainting in warm, neutral colors. Very soft pastels in neutral colors help while very strong colors can often be a turn off to potential buyers. Too many home improvement shows can make your house look overwhelming to a buyer . . . please control your urge to faux finish.
When there is a showing scheduled for your home, leave lights on throughout the house, open blinds and drapes. Take a look around, clean off the lists and photos from the refrigerator door, empty trash cans, make the bathroom spiffy with pretty towels and clean mirrors.
Buyers need to be able to picture themselves, their furniture and their families in a home they might consider buying. Let them see the house without constant reminders of you and your family.
If you are serious about selling your home you must present the most attractive package at the best price or buyers will buy your neighbor’s house and yours will remain on the market.
Get your lawn, trees, flower beds spruced up. Plant some colorful flowers (while you still have some summer left), keep the lawn mowed and the trees pruned. If you notice that the trim on your house is a bit worn, get out the paint brush and spruce it up. Make sure your front door is in the best possible condition.
As you enter your home, try to look at it like a potential buyer will look at it. Lose the family photos, box up the collections, get your clutter level down to the bare minimum. It goes without saying that your home must be spotlessly clean, closets shouldn’t look packed to the gills and, maybe more importantly, you can’t have any odors in your house. No pet odors, no tobacco odors, no cooking odors (other than maybe chocolate chip cookies baking). That doesn’t mean to crank up the room deodorizors. Some people find those frangrances very overpowering and some people are highly alergic to them. Just make sure it smells clean and fresh.
If you’ve gone a little wild and individualistic with your paint choices (maybe let your 12 year old choose her own wall color), seriously consider repainting in warm, neutral colors. Very soft pastels in neutral colors help while very strong colors can often be a turn off to potential buyers. Too many home improvement shows can make your house look overwhelming to a buyer . . . please control your urge to faux finish.
When there is a showing scheduled for your home, leave lights on throughout the house, open blinds and drapes. Take a look around, clean off the lists and photos from the refrigerator door, empty trash cans, make the bathroom spiffy with pretty towels and clean mirrors.
Buyers need to be able to picture themselves, their furniture and their families in a home they might consider buying. Let them see the house without constant reminders of you and your family.
The New Ways of Home Selling ...
Anyone who has sold their home prior to 5-7 years ago may not understand how much things have changed since then. It used to be that an agent could hold an open house, put an ad in the paper, send out mailings, and input into the mls in hopes of getting people through the door to buy your home. Things have changed quite a bit in a short amount of time. Chances are that if you’re reading this blog you understand this because the computer you’re using to access this is the same culprit that has revolutionized the home selling/buying process. It is almost impossible to expect your home to sell without it having some kind of marketing on the internet.
The vast majority of potential home buyers start their home search online and often months before they’re really serious about actually buying! The amazing thing is that this equates to many more showings from more people all over the globe. No matter how many open houses your agent holds it will never equal the number of people coming through your home compared to “virtual showings”. With this in mind, it is more important than ever to market the highlights of your home so that those viewing it online are inspired to schedule a physical showing. The key to this is, first and foremost, having professional quality photographs that showcase your home. Virtual tours, videos, floorplans, engaging descriptions, maps, mortgage scenarios, and community information are all critical components as well.
The better your home looks and feels to those viewing it online, the more likely you will be to actually have them come through your door and fall in love with your home. Keep in mind that there is no “smell-o-vision” yet available online, so if your home has an obnoxious odor, it’s imperative that this is resolved before anyone comes knocking at the door. Pet, smoke, mildew and other odors can repel potential buyers despite the beauty of the home.
The internet itself will not sell your home, just as a lawnmower itself doesn’t automatically mow your lawn (except for those fancy robo-lawnmowers, but they can’t be that good can they? (c: ). The important thing to remember is that the internet is quite possibly the best TOOL for helping you market your home. Again, hammers are helpful for pounding nails, but if you don’t know how to use one, you’re likely to hurt yourself. If you don’t have the best possible photographs, content, and information about your home, you’ll scare people away from even wanting to schedule a physical showing. It’s even more important that your home looks, smells, and feels it’s best when the potential buyer actually walks through the door.
If you are considering selling and have questions on how you can best promote your property, feel free to contact me with any questions or concerns you may have. I will be happy to give you some ideas that might help you, regardless of whether you list with me or not. I have more experience than most in visual marketing of real estate, and my fresh outlook has proven to be a great asset in my business. I’m happy to help in any way I can!
The vast majority of potential home buyers start their home search online and often months before they’re really serious about actually buying! The amazing thing is that this equates to many more showings from more people all over the globe. No matter how many open houses your agent holds it will never equal the number of people coming through your home compared to “virtual showings”. With this in mind, it is more important than ever to market the highlights of your home so that those viewing it online are inspired to schedule a physical showing. The key to this is, first and foremost, having professional quality photographs that showcase your home. Virtual tours, videos, floorplans, engaging descriptions, maps, mortgage scenarios, and community information are all critical components as well.
The better your home looks and feels to those viewing it online, the more likely you will be to actually have them come through your door and fall in love with your home. Keep in mind that there is no “smell-o-vision” yet available online, so if your home has an obnoxious odor, it’s imperative that this is resolved before anyone comes knocking at the door. Pet, smoke, mildew and other odors can repel potential buyers despite the beauty of the home.
The internet itself will not sell your home, just as a lawnmower itself doesn’t automatically mow your lawn (except for those fancy robo-lawnmowers, but they can’t be that good can they? (c: ). The important thing to remember is that the internet is quite possibly the best TOOL for helping you market your home. Again, hammers are helpful for pounding nails, but if you don’t know how to use one, you’re likely to hurt yourself. If you don’t have the best possible photographs, content, and information about your home, you’ll scare people away from even wanting to schedule a physical showing. It’s even more important that your home looks, smells, and feels it’s best when the potential buyer actually walks through the door.
If you are considering selling and have questions on how you can best promote your property, feel free to contact me with any questions or concerns you may have. I will be happy to give you some ideas that might help you, regardless of whether you list with me or not. I have more experience than most in visual marketing of real estate, and my fresh outlook has proven to be a great asset in my business. I’m happy to help in any way I can!
Top 10 Tips for Buyers
1. Check your credit before looking for a mortgage lender. You’d be surprised how many people think they have good credit, only to find out that there are inaccuracies on their credit report that will affect their ability to get the loan they want.
2. Get pre-approved before looking for homes. This not only helps us know what price range of home to look for, but also makes the process significantly smoother when we go to make an offer. If needed, I can help you find a loan through my many industry contacts.
3. Don’t become “house poor”. Some people will buy the most expensive house they can afford, but then have no money left for home maintenance, furniture, etc.
4. Set your expectations up front. I want you to be satisfied in your purchase, but there is no such thing as “the perfect home”. Buying a home is always a compromise between what you want, what you need, and what you can afford. To facilitate this, I highly recommend that before we start, we sit down and discuss what features you must have versus what features you’d simply like to have.
5. Before we actually start looking at homes, try to decide if you want to look at new homes or existing homes. Going back and forth between the two usually just makes the home buying process more confusing. By the way, many people don’t realize that REALTORS can help with the purchase of new homes, but it’s true. In fact, one of my specialties is new home sales and my fees are generally paid by the home builder. Also note that regardless of your decision to go with a new or existing home, you’ll get the same quality service from me.
6. Don’t ask too many people for opinions about what makes a good home, or whether a particular home is a good purchase. This will drive you crazy if you let it. Keep in mind that everyone has a different idea of what makes a good home so I recommend selecting just one or two individuals to turn to if you feel you need a second opinion. If you wish, I’d be happy to be one of those people.
7. Decide when you’ll be able to move. If applicable, knowing when your lease is up, whether you can sublet and how tight the rental market is will greatly help in this regard. If you need to sell your existing home first, we have to coordinate your home sale vs. purchasing your new home. When and how we market your existing home is highly dependent on the local market where you are buying and selling.
8. Make sure you consider resale value when purchasing. Many people think they will be in their new home forever so they don’t think about this. Unfortunately, people average about 7 years in a home before they sell. Even if you don’t relocate or move up sometime soon, by thinking about resale value beforehand, you’ll insure your investment is sound. I can help in this regard by using my industry knowledge and area expertise to advise you on the resale value of your home purchase.
9. Don’t be dumb: get a home inspection. There are too many potential hidden defects. A home inspection won’t guarantee there are no problems, but it may find something major you would not have known about otherwise. Also consider getting a home warranty from the seller to cover anything that crops up after the sale.
10. Get help. Buying a home is likely the largest purchase you will ever make. Doesn’t it make sense to hire me as your buyer’s representative? Unlike a listing agent whose first duty is to the seller, I, as your buyer’s representative will work only for you. Plus, my fees are generally paid out of the seller’s commission payment so you probably won’t have to pay me anything for my services. What a deal!
2. Get pre-approved before looking for homes. This not only helps us know what price range of home to look for, but also makes the process significantly smoother when we go to make an offer. If needed, I can help you find a loan through my many industry contacts.
3. Don’t become “house poor”. Some people will buy the most expensive house they can afford, but then have no money left for home maintenance, furniture, etc.
4. Set your expectations up front. I want you to be satisfied in your purchase, but there is no such thing as “the perfect home”. Buying a home is always a compromise between what you want, what you need, and what you can afford. To facilitate this, I highly recommend that before we start, we sit down and discuss what features you must have versus what features you’d simply like to have.
5. Before we actually start looking at homes, try to decide if you want to look at new homes or existing homes. Going back and forth between the two usually just makes the home buying process more confusing. By the way, many people don’t realize that REALTORS can help with the purchase of new homes, but it’s true. In fact, one of my specialties is new home sales and my fees are generally paid by the home builder. Also note that regardless of your decision to go with a new or existing home, you’ll get the same quality service from me.
6. Don’t ask too many people for opinions about what makes a good home, or whether a particular home is a good purchase. This will drive you crazy if you let it. Keep in mind that everyone has a different idea of what makes a good home so I recommend selecting just one or two individuals to turn to if you feel you need a second opinion. If you wish, I’d be happy to be one of those people.
7. Decide when you’ll be able to move. If applicable, knowing when your lease is up, whether you can sublet and how tight the rental market is will greatly help in this regard. If you need to sell your existing home first, we have to coordinate your home sale vs. purchasing your new home. When and how we market your existing home is highly dependent on the local market where you are buying and selling.
8. Make sure you consider resale value when purchasing. Many people think they will be in their new home forever so they don’t think about this. Unfortunately, people average about 7 years in a home before they sell. Even if you don’t relocate or move up sometime soon, by thinking about resale value beforehand, you’ll insure your investment is sound. I can help in this regard by using my industry knowledge and area expertise to advise you on the resale value of your home purchase.
9. Don’t be dumb: get a home inspection. There are too many potential hidden defects. A home inspection won’t guarantee there are no problems, but it may find something major you would not have known about otherwise. Also consider getting a home warranty from the seller to cover anything that crops up after the sale.
10. Get help. Buying a home is likely the largest purchase you will ever make. Doesn’t it make sense to hire me as your buyer’s representative? Unlike a listing agent whose first duty is to the seller, I, as your buyer’s representative will work only for you. Plus, my fees are generally paid out of the seller’s commission payment so you probably won’t have to pay me anything for my services. What a deal!
Wednesday, September 5, 2007
Setback Rules are under Review
From the News-Times, written by Shannon Kemp - excerpts to help undertand what is being discussed...hope it helps!
"While the Carteret County beach commission decided to not take a position on proposed static line of vegetation setback rules for oceanfront developments, the public will have a chance to state their own position during a public hearing Nov 29 and 30 at the City Hotel and Bistro in Greenville.
...
In North Carolina, the vegetation line extends from the first line of vegetation 30 times the annual erosion rate to a particular development site and it set up before a beach is renourished.
If a community's erosion rate, which is determined by the DCM, is 2 feet or less per year, it makes the setback for oceanfront structures 60 feet from the fist line of vegetation.
For commercial and multifamily developments that are more than 5,000 square feet, the setback is 60 times the annual erosion rate.
When a beach is renourished, the shoreline extends seaward. Because sea grass naturally grows closer to the water when a beach is renourished, as the shoreline moves farther out, the first line of stable vegetation moves with it, but the static line stays in its established position forever.
The existing rules prohibit development from inching forward with the vegetation line. Mr. Rudolph explained if a building is nonconforming or a lot is unbuildable before the static line was established, then they are forever nonconforming or unbuildable.
The two proposed rules make it possible for individual communities to apply to the CRC for an exemption - with certain conditions - from the static line rules, thus allowing development to move out with the beach that builds up after a renourishment project ....
The first of the proposed rules ...offers three changes, Mr.Rudolph said. ... it tweaks the definition of the vegetation line and how that line is determined; it changes language concerning an alternative vegetation line that is related to Brunswick County beaches and it changes the parameters for a large scale beach renourishment project, which is the trigger for the establishment of a static line.
The second rule.. involves the changes for ocean front setbacks and specifications for an exemption to the static line.
The new rule takes into account the total square footage of living space. Where before it was just the heated floor space, now anything covered will be considered in determining the oceanfront setback.
Also, while the minimum setback will remain 30 times the erosion rate for structures less than 5000 square feet as the current rule states, the new graduated setback rule has a total of eight major categories that determine the setback - which increases based on the size of the structure.
...There is also concern with the contentious issue of the proposed 2,000 square foot limitation for any construction that has received a static line exemption. "If you have a 4,000 square foot house that received a static line exemption and the house burns down, you have to rebuild a 2,000 square foot house," Mr. Rudolph explained.
Also if an empty lot gets a static line exemption, the property owners can only build a 2,000 square foot structure on the lot."
There is no agenda set for the November meeting at this time....stay tuned. Things could get really interesting!
"While the Carteret County beach commission decided to not take a position on proposed static line of vegetation setback rules for oceanfront developments, the public will have a chance to state their own position during a public hearing Nov 29 and 30 at the City Hotel and Bistro in Greenville.
...
In North Carolina, the vegetation line extends from the first line of vegetation 30 times the annual erosion rate to a particular development site and it set up before a beach is renourished.
If a community's erosion rate, which is determined by the DCM, is 2 feet or less per year, it makes the setback for oceanfront structures 60 feet from the fist line of vegetation.
For commercial and multifamily developments that are more than 5,000 square feet, the setback is 60 times the annual erosion rate.
When a beach is renourished, the shoreline extends seaward. Because sea grass naturally grows closer to the water when a beach is renourished, as the shoreline moves farther out, the first line of stable vegetation moves with it, but the static line stays in its established position forever.
The existing rules prohibit development from inching forward with the vegetation line. Mr. Rudolph explained if a building is nonconforming or a lot is unbuildable before the static line was established, then they are forever nonconforming or unbuildable.
The two proposed rules make it possible for individual communities to apply to the CRC for an exemption - with certain conditions - from the static line rules, thus allowing development to move out with the beach that builds up after a renourishment project ....
The first of the proposed rules ...offers three changes, Mr.Rudolph said. ... it tweaks the definition of the vegetation line and how that line is determined; it changes language concerning an alternative vegetation line that is related to Brunswick County beaches and it changes the parameters for a large scale beach renourishment project, which is the trigger for the establishment of a static line.
The second rule.. involves the changes for ocean front setbacks and specifications for an exemption to the static line.
The new rule takes into account the total square footage of living space. Where before it was just the heated floor space, now anything covered will be considered in determining the oceanfront setback.
Also, while the minimum setback will remain 30 times the erosion rate for structures less than 5000 square feet as the current rule states, the new graduated setback rule has a total of eight major categories that determine the setback - which increases based on the size of the structure.
...There is also concern with the contentious issue of the proposed 2,000 square foot limitation for any construction that has received a static line exemption. "If you have a 4,000 square foot house that received a static line exemption and the house burns down, you have to rebuild a 2,000 square foot house," Mr. Rudolph explained.
Also if an empty lot gets a static line exemption, the property owners can only build a 2,000 square foot structure on the lot."
There is no agenda set for the November meeting at this time....stay tuned. Things could get really interesting!
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