Lake Norman Homes and Real Estate

The declining home values that are plaguing homeowners are just one of the factors creating an opportunity for prospective homebuyers, combined with near-record-low mortgage rates and government incentives ( $8,000 first-time homebuyers’ tax credit ) are luring more first-time home buyers into the market. Indeed, a recent survey found that more than three-quarters (78%) of potential first-time homebuyers say now is a good time to buy.

If you agree, be aware that buying a home comes with plenty of potential missteps.

Here are 10 all-too-common mistakes first-timers make.

1. Not knowing how much house you can afford.
Many novice homebuyers spend a lot of time researching homes — comparing kitchen layouts and backyard square footage — but much less time researching their financing options. One of the first things buyers should do is talk to a qualified lender and get preapproved for a mortgage. Without first figuring out how much house you can afford, you risk falling in love with one you can’t.

2. Assuming foreclosures are great deals.
Just because the previous owner owed $450,000 on a house before the bank took it over doesn’t mean it’s worth that much now. Values have slipped significantly, so you may not be getting the bargain you think with a foreclosure. Also, most homes owned by lenders or banks have been sitting vacant for months and may have been vandalized, not to mention that they are sold “as-is” and in real estate that is a scary thing!  It could require extensive renovation or repair. Weigh the costs of fixing up the property against the savings you’ll likely reap by buying a lower-priced foreclosed home.

3. Letting your true feelings show.
No matter how much you’ve fallen in love with a house, don’t let the seller’s agent in on it. Otherwise, he will gain the upper hand in negotiations. And the more leverage you have the better.

4. Failing to find a good buyer’s agent.
Landing a mortgage is tough these days. So buyers should rely heavily on knowledgeable agents to help them get their finances in order. After all, buyer’s agents have a fiduciary responsibility to the buyer exclusively — and should be looking out for his best interests. Consider using an agent recommended by a relative or friend. Interview the candidates about their experience; ask if they’ve worked with first-time buyers before and what kind of service you’ll get from them.

5. Underestimating the costs of owning a home.
Whether it’s a rusty pipe or a leaky roof, things go wrong and need to be fixed. Many homebuyers don’t anticipate the additional costs for repair and maintenance, or for an increase in utility costs. Consider the age of your new home and how well it’s been treated by the previous owners in your budget. Be prepared to set aside a small percentage (1% at most) of the home’s purchase price annually for repairs and upkeep.

6. Failing to budget for property taxes.
Property taxes — and the likelihood that they’ll climb over the course of your time in the house — should be factored into any homebuying budget.  To get an idea of how much you’ll be paying, call the local assessor’s office or talk to people in the neighborhood.

7. Assuming your first offer will get accepted.
As home prices get even more affordable, competition is bound to heat up. These days you can’t assume you’ll walk in there, make the offer and get it. Try not to get discouraged if you lose out on the first — or second — house you make an offer on.

8. Skipping the inspection.
Before signing anything, hire a professional inspector. The seller isn’t likely to tell you there’s mold in the basement or the walls are poorly insulated.

9. Doing too much too fast.
Some buyers want to make the house their own right away. They overextend themselves on credit to do so, and assume the improvement will pay for itself by increasing the home’s value. But that’s not always the case — especially in today’s market. Instead, buyers need to exhibit patience and make changes over time. Plus, what’s better than weekend home improvement projects with the family here and there?

10. Failing to include a contingency clause in the contract.
A mortgage financing contingency clause protects you if, say, you lose your job and the loan falls through or the appraisal price comes in under the purchase price. Should one of these events occur, the buyer gets back the money he used to secure the property, the earnest money deposit. Without the clause, he can lose that “earnest money” and still be obligated to buy the house.

Spring Maintenance Tips

It’s spring, which means flowers, rain, baseball, gardening, BBQ’s, desperate attempts to get in shape before swimsuit season, skipping work to be outside before it gets unbearably hot…

Spring also means it’s time for home maintenance after a winter of neglect. Don’t feel too bad about it–you’re not the only one to hibernate from maintenance during the winter.

Following are some simple tips to keep your home operating in tip-top condition.

Spring Maintenance Tips

Inside

• Try out your air conditioning system.
• Remember to inspect/replace your HVAC filter monthly.
• Check and clean the clothes dryer vent and stove hood.
• If you have a coil-back refrigerator–you probably do–vacuum the coils at least twice each year. Your refrigerator will run much more efficiently with clean coils.
• Clean everything, top to bottom! Use non toxic soaps for better indoor air quality.
• Now get outside and enjoy the weather!

Outside - Up High

Make sure you are properly hydrated, wearing appropriate sun and bug protection, and listening to motivational music.

• Inspect the roof for damaged, loose or blistered shingles. Have damaged shingles replaced if they’re on less than 20% of the roof. Reroof if damaged shingles cover more than 20% of the roof.
• Examine flashing around chimneys, vents, and roof edges.
• Remove debris from gutters and downspouts and patch any holes. Make sure the downspouts direct water at least 5 feet away from your foundation walls.
• Examine fascia or soffit boards. Replace if they are soft or rotting because they may allow rain into your attic.
• Trim branches and shrubs that are touching your home which can provide a pathway for bugs or excess moisture to enter your home.
• Remove dead branches that may fall on your home.

Outside - Down Low

• Clean up fallen limbs, branches and other debris around the home to discourage the proliferation of wood-eating insects. Termites = bad.
• Clean out basement window wells.
• Inspect/replace caulk on windows, doors, and other penetrations, such as dryer vents and cable wire holes. Inspect the condition of the caulking where two different materials meet, for example where wood siding joins the foundation’s wall or at inside corners. Improper caulking provides an avenue for moisture to get inside your walls and cause mold.
• Check the condition of the exterior surfaces. Touch up any areas that need paint before they deteriorate further.
• Make sure that your lawn sprinkler heads do not spray the walls of the house. Water = bad.
• Check your inside and outside foundation walls and piers for damaged wood.

Once you’ve finished, sit back, relax, and feel proud of the great work you’ve done over a refreshing cold drink!

Tags: Home Owners

Getting ready to sell? The more you know about conditions in your local market, the better your chances of getting the best possible price for your home.

It’s tough being the seller in a buyer’s market. But you can improve your odds with the right research.

In many cases, making a smart deal and getting the best price come down to studying your market and being an educated seller.

1. Recognize that housing markets are local.
Home prices are like the weather — very different in different areas.

In many markets, home prices have actually gone up from last year, says Dick Gaylord, president of the National Association of Realtors.

In addition, demand will change depending on the price range and even the neighborhood. What you need to know: What’s the demand for a house like yours in your area?

It is important to look at what’s being sold and at what price.

Look at comparables for similar houses. Study prices and sales for one year ago, six months ago, three months ago and current numbers.

What are the trends? Are prices going up or down — and by how much? How many days are homes staying on the market? If they are on the market longer, how much of that could be seasonal? In many areas, spring and summer are the busy seasons.

Pay special attention to the difference between the list price and the sales price. That is, look for a meaningful relationship between list price and sales price. Perhaps most homes are selling for 5% less than the list price.

An agent who works the market will be in the best position” to find “the tipping point between nice, attractive and interesting — and being sold.

You also need to realize that the paperwork alone tells only part of the story. While sales and prices are public, many times seller concessions are not.

2. Analyze who is buying and selling in your market.
What’s your competition? Who are the buyers, and why are they shopping?

Do you live in a growing market with people coming in? Or are you living in an area that doesn’t attract a lot of new residents, where many shoppers don’t have to buy but are looking to pick up a bargain?

Are you competing against a flood of new houses from builders eager to sell, or are you selling a newer home in an area where most of the housing stock is older?

3. Ask the professionals.
Don’t ignore the elephant in the living room. Ask about the market conditions for your area and price range.

Specifically, ask about the “absorption rate”. What that means: In the current conditions with the current inventory, how long would it take the market to absorb, or sell, all the houses on the market?

If the supply is much larger than the demand, what would the price have to be to offset that inventory?

4. Know what your house is worth.
Have your agent do a market analysis of your property or if you are willing to spend the extra money, get an appraisal from a certified professional appraiser. Look at your comparables. Taken together, that information will give you a pretty good idea of what your home is currently worth.

5. Consider strategic pricing.
Here’s how it works: If prices in your area are dropping 1% each month, and you want to sell within the next three months, you take 3% off your price right off the bat. So if you were going to put your home on the market for $400,000, you set the price at roughly $388,000.

The upside: You’ll have the competitive edge over the guy who’s dropping his price every month, without the air of desperation. Plus, in a market where prices are falling, you’ll make more money if you sell quickly.

The downside: Predicting the market is a tough call, even for the pros. And it’s really difficult to raise the price if your market starts to rebound.

6. Evaluate whether you really have to sell now.
If you want to get the best possible price for your home and the local market is tanking see if you can delay the sale. Otherwise, in a lot of markets, sellers have to be willing to accept a pretty good haircut over what they thought their home was worth last year.

The downside of waiting: The market could decline or your circumstances could change to the point that you might need to sell quickly.

But for situations where the move is optional (or you might be able to rent the property until your local market improves), waiting is a solid option.

Just because you’ve already planted that “For Sale” sign doesn’t mean you can’t change your mind if you’re not seeing the interest you expected.

8. Assess the market where you plan to buy.
If you’re selling one house and buying another, look at the market where you plan to move. It might be that, with the housing there, it’s a great time to buy.

Tags: Add new tag, Huntersville Real Estate, Lake Norman Real Estate, NC, Real Estate in Charlotte, Selling Homes in Charlotte, Selling homes in Lake Norman, Selling your home

Affordability returns to housing, and buyers have loads of negotiating power.

Many people are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. But if you’re brave enough to stray from the herd, you might be in for the home-buying opportunity of a lifetime.

Ask for price reductions, improvements, closing costs — whatever — and the seller, desperate to get a contract, is likely to work with you but when the market starts improving, your negotiating power will start to diminish.

People can get a lot of what they need and almost all of what they want today.  Once a few people get off the fence, there’s safety in numbers and you lose your leverage.

If you’re qualified to buy a home now, and the purchase makes sense for your situation, and you’re prepared to live in that home for at least five years, there are five reasons you may be headed for a great deal:

1. Affordability is better than ever.
According to the National Association of Realtors’ housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The NAR’s affordability index is a measure of the relationship between home prices, mortgage interest rates and family income. An a saturated market like our current market in the Charlotte and Lake Norman areas many homes are selling for a lot less than the list price. In my opinion, it never hurts to try for the lowest price possible. Many sellers are willing to lower their price, offer incentives and seller concessions just to get the home sold.

2. You have a large inventory to choose from.
In many places it is taking months to sell a home, creating loads of inventory — from new homes to existing homes to foreclosures. There was a 12.9-month supply of inventory in December given that month’s sales pace, according to NAR.

A large selection gives buyers more choices and drives down prices. And home sellers have gotten the picture.

It’s fair to say that home sellers have become increasingly desperate. People who have had for-sale signs in the yard for six months are starting to become in tune with the reality of the situation and buyers can take advantage.

But if you put off a purchase until inventory shrinks substantially, you might not get as good a price. And be forewarned: It’s nearly impossible to time the exact bottom of the housing market, and even if you do, there’s no guarantee you’ll make a killing.

Buy for quality of life . . . don’t buy on speculation.  Historically, real estate appreciates about 5% a year over the long term.

 3. Builders are offering big discounts.
Home builders are getting even more aggressive with their pricing.

In fact, it is recommended to look at completed new homes first because builders are offering such steep discounts. Plus, you’d have a warranty not only on the home itself, but also on the home’s appliances.

BuilderBB Builders want to save their credit, save their brand, save their reputation and clear out inventory. They WANT to sell. They know that they can go buy cheap land today with that cash.

Walk in with a preapproval for a mortgage, make an offer, and then walk away without making a deal if you have to. Chances are, a builder will call back and reconsider that offer rather than let a potential buyer get away.

4. Mortgage rates are historically low.
It’s not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac.

Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks.

More mortgage help could also be on the way. Last week, President Obama said that his new economic plan would help lower the cost of mortgages for home buyers, although he did not give specifics.

But low rates don’t mean lenders are handing out mortgages easily. You’ll need good credit, a substantial down payment and a willingness to document your income in order to qualify for those great rates — if you can qualify at all.

5. You can get a federal tax credit.
There’s currently a federal credit of up to $8,000. That money would not have to be paid back if the home is not resold for at least three years.

That extra cash will come in handy: The average first-time homebuyer spends about $6,000 in the first six months of owning a home.

Tags: Buying a home in Charlotte, NC, Charlotte Real Estate, Home Buying, Lake Norman Home Buying

As a Realtor, I am asked almost daily about the first time home owner tax credit. The Charlotte Real Estate market has been steady and still a very deisrable area to be despite the downturn in the economy. With that being the case, every first time home owner who has purchased a home in the last year or those who planning on buying in 2009, need to know the truth.  President Obama and Congress are actively considering an expanded home buyer tax credit but as of today, here are the details:

The single largest provision in the $15.1 billion package of housing tax incentives in the recently enacted Housing Assistance Tax Act of 2008 (the “Housing Act”) is a measure allowing individuals buying their first home to take a tax credit of up to $7,500 of the purchase price. Qualified homebuyers can subtract the credit amount from their federal income tax when they buy a home and even get a refund if the credit exceeds the tax. However, they are then required to pay the credit back over 15 years. The result is that the credit resembles an interest-free loan that must be repaid to the government. Here are the details of the new credit:

·         The home must be located in the U.S. and must be the taxpayer’s principal residence (main home). The taxpayer (and the taxpayer’s spouse if married) must not have owned another principal residence in the U.S. in the three-year period before purchasing the new home. Thus, the home doesn’t literally have to be the taxpayer’s first home.

·         The home must have been purchased from April 9, 2008 through June 30, 2009, inclusive. Purchases from certain related persons and acquisitions by gift or inheritance don’t qualify. A home constructed by the taxpayer does qualify if the taxpayer moves in from April 9, 2008 through June 30, 2009.

·         A special rule allows taxpayers who purchase a principal residence in the first six months of 2009 to treat the purchase as if made on Dec. 31, 2008. This allows the taxpayer to claim the credit for 2008 rather than 2009.

·         The credit is equal to 10% of the price paid for the home, up to a maximum of $7,500. The $7,500 maximum credit applies both to individuals and married couples filing a joint return. A married individual filing separately can claim a maximum credit of $3,750.

·         The credit is phased out for individual taxpayers with modified adjusted gross income (AGI) between $75,000 and $95,000 ($150,000 and $170,000 for joint filers) for the year of purchase. Taxpayers with modified AGI over $95,000 ($170,000 for joint filers) can’t claim the credit.

·         The credit is refundable, meaning that households with incomes too low to owe income tax can benefit from it.

·         In the second year after purchase, taxpayers who took the credit must start paying back the credit in equal installments over 15 years, with no interest charge. This works as follows. Suppose a first-time homebuyer purchases a home for $100,000 this coming December and claims the maximum credit of $7,500 on his 2008 tax return. He would then be required to pay back $500 (one-fifteenth of the credit) on his tax return for 2010 and for each of the following 14 years, through 2024.

·         If the taxpayer sells the home (or the home ceases to be the principal residence of the taxpayer or the taxpayer’s spouse) before complete repayment of the credit, any remaining credit is due on the tax return for the year in which the home is sold (or ceases to be the principal residence). If the home was sold at a loss to an unrelated person, repayment of the remaining credit is forgiven to the extent of the loss.

·         No credit is allowed if: the taxpayer was ever entitled to a D.C. homebuyer credit; the home purchase was financed through tax-exempt mortgage revenue bonds; the taxpayer is a nonresident alien; or the taxpayer disposes of the residence (or it ceases to be a principal residence) in the year of purchase.

I hope you have found this information helpful. If you have any questions please feel free to contact me. Catherine Duncan, Realtor®.

Tags: Charlotte Real Estate, First time home buyer tax credit, Home Buying

Well… the sun is shining brightly and the weather is starting to warm up. Spring fever has officially sprung! For most people it is a time for organizing their homes and planning their summer vacations but for me as a Realtor, it is the beginning of the busy season. And to that I say… “Bring it on, I am ready!” And with a new website to boot!

The Charlotte real estate market has been in a steady upward swing even during the typically slower months of the year. Despite what the headlines are constantly saying, we in Charlotte have an extremely strong housing market. Charlotte has seen an increase of 4.7% in the past year. The only other city to come close to that is Seattle. Charlotte’s “stable and steadily” housing market is driven by sustainable factors like job growth and economic expansion. We have quietly become one of America’s leading financial centers anchored by Bank of America and Wachovia.

Charlotte has began recieving national attention because it is such a magnet for jobs. Finance related employment in the area has increased by 69% in the past decade as the banks have helped attract thousands. Obviously, this has had a positive effect on area real estate. We have had no shortage of people moving from New York, Ohio, Michigan, and Florida. We have great deals to be made in this city and others are starting to find out just how desirable Charlotte is! Donald Trump has even considered building condos on Tryon Street!!!

Tags: Charlotte Real Estate, Charlotte Realtor, Home Buying, Homes for sale in Charlotte NC