Chapel Hill NC Real Estate, Pittsboro NC Real Estate Information and More

The home posted here on June 2nd, closed on June 30th with multiple offers.  What did my clients do to get their house to sell so quickly in a down market?  It started when they bought the house.

Three years ago they identified what was important to them:

A house within walking distance to town. 
 A small one level home with a floor plan that lived bigger. 
A manageable yard.
A house with good bones.

We were able to find one.  Not easy when everyone was building bigger and bigger.

They moved in and during the three years they lived in the house, they upgraded in all the right places: kitchen, baths, landscaping and  carpet replaced with bamboo wood floors.

That's the secret.

The open house was proof positive to me that the home described above is what buyers of all ages are looking for.  Boomers are looking for it for different reasons than young families, or single professionals, but they were all looking for this type of house and jumping on it when they found it!

Note:  The sellers did all the basics, too; declutter, clean, etc.  While I always recommend a buyer stay in a home at least 5 years.  These folks, because of their smart choices and hard work, were able to move in three years with a tidy profit.

Affordable bliss; this traditional exterior styled property is full of contemporary flair inside.  Finishes normally found only in much more expensive homes include custom concrete countertops, bamboo floors, slate tile floors in the baths and kitchen, undermount sink and trey ceiling in the master bedroom.

Located in popular Chatham Forest subdivision, this home is perfect for first time homebuyers , young professionals or empty nesters.

The commute is short to Cary, Chapel Hill or UNC.

Call today to take a tour !
MLS: 1666426

 google map for 14 Cynthia Lane :: community_amenities :: home_owners_association :: protective_covenants :

TOTAL: 1360 SQ. FT.     Offered at only: $219,000

•  3bedrooms

• 2 bath

• bamboo floors

• slate tile floors

• fireplace with gas logs

• concrete kitchen countertops

• charming back deck
• rocking chair front porch
• trey ceiling in master bedroom
• tasteful landscaping
• extremely well-maintained home
• open floorplan with loads of natural light

How do I apply for the tax credit?

All eligible homebuyers simply claim the credit on their IRS form 1040 tax return.  Attach the new form 5405. There is no pre-purchase authorization, application or similar approval  process.  Print out the form:   First Time Home Buyer Credit Form

Luke Mullins from US News and World Report drilled down to the essential six points you need to know about the $8,000 first time homebuyer credit:  

1. Eight grand, new buyers: This credit is equivalent to 10 percent of the purchase price of the home* although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.

4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.**

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

*A home with a purchase price of $80,000 or more qualifies for the entire $8,000 credit. If the house costs less than $80,000, the credit will be 10% of the cost (i.e. A $50,000 home would be $5,000).

**An example of a refundable credit:  You owe only $4500 in tax. The IRS would send you a refund for the remainder of the credit, $3500.

See my last post about the newest spin on using the credit as part of your downpayment.

The 2009 HUD Mortgage Letter which was to follow the FHA ruling allowing the credit to be used as down payment was rescinded almost as quickly as it was posted to the HUD website. 

The credit itself was not going to be used, however HUD approved lenders would be able to loan against the credit by creating a second lien on the property.  When the homeowner received the credit, they pay back the loan.

Well, that has changed...again.  The May 29th 2009 Mortgage Letter (found here) is now allowing the credit to be used toward the down payment in the from of a second lien.

      Of course, more traditional ways to borrow for a down payment using the first time homebuyer credit as collateral include:

• A loan from your employer.
• A loan from a relative or friend
• Your 401K (quit laughing)
• And if an incredible deal comes your way, even an unsecured credit card

    Of course, these ideas are only useful, if you do indeed pay off the loan with the credit.

  North Carolina's foreclosure rate is low.  Why?  In large part, because there are fewer subprime loans made here.  Almost a third of homes in the state are owned free and clear.  In addition, over 50%, 53% to be exact, of homes loans are prime loans. Only 6% of loans are FHA or VA.  A remarkable figure when you consider how many military families live and retire in NC, however, until recently traditional lenders were matching VA terms. Only 9% of loans in our state are subprime. 

   The subprime exposure is small, but they make up over 50% of foreclosures.  Many of these loans are investor properties. Not surprisingly, fewer subprime loans are being made and foreclosures have slowed. Bottomline: Foreclosure rates are not affecting prices in most areas of our market.

There is a rumor that Suntrust Bank has discontinued 100% financing doctor loans.  Jennifer Foster of Suntrust asks, "We are NOT pulling this program. It is one our strongest loan portfolios and we intend on keeping it for a long time."

     Last week's HUD Mortgage Letter which was to follow the FHA ruling allowing the credit to be used as down payment was rescinded almost as quickly as it was posted to the HUD website.

      The credit itself was not going to be used, however HUD approved lenders would be able to loan against the credit by creating a second lien on the property.  When the homeowner received the credit, they pay back the loan.

    There are still more traditional ways to borrow for a down payment using the first time homebuyer credit as collateral. 

• A loan from your employer.
• A loan from a relative or friend
• Your 401K (quit laughing)
• And if an incredible deal comes your way, even an unsecured credit card

    Of course, these ideas are only useful, if you do indeed pay off the loan with the credit.

For a copy of the First Time Home Buyer Credit click here.

       Wonderful food.  The Best Dish NC contest recently named their top picks in the casual dining and fine dining categories.  The winners span from the mountains to the sea.  If you are traveling to any area of the state, check out these proven locally owned restaurants.  Find them here:

http://www.ncagr.gov/markets/gginc/bestdish/

When you enjoy a meal in one these establishments, more money stays in our economy and you get the freshest food available.  And if you live near one of these restaurants, please visit them, try their Best Dish menu, because you'll know it's local and it's what represents their restaurant to determine the top eaterie in the state.  The judges knew when it comes to determining who serves the best food, it's Got to be NC!

    Five pounds have melted away and my family has enjoyed a boatload of fresh vegetables and flowers as part of the deal.  How?  I volunteer one morning a week at a local organic farm.

    That's not the only benefit.  My garden looks better than ever.  I have learned so much; how to use tools properly, how to amend the soil properly, when to plant, techniques for harvesting each variety of flower or vegetable and much more.  One of the great take aways has been learning how to set up the drip tape system I bought three years ago.

    And...that's not all.  The interns working on the farm are bright, interesting young women that have introduced a whole new world to me. Did you know there is an organization that connects people worldwide who want to learn more about sustainable food production by working?   WWOOF is an exchange - In return for volunteer help, WWOOF hosts offer food, accommodation and opportunities to learn about organic lifestyles. One of the young women has worked in two locations in Ireland and one in France. 

    Opportunities like these, demonstrate to clients looking for farms that a living can be made from smaller acreages.  It is done here and it is done worldwide.

    Chatham and Orange counties are among only 4 of the 100 counties in NC to have its air quality ranked among America's cleanest for short term particle pollution according to the 2009 State of the Air report. 

     What that means is these two counties ranked among the cleanest for short term particle pollution, the most dangerous of the outdoor air pollutants affecting many areas in America.  The hot spots in North Carolina were Wake, Mecklenburg and Forsyth counties.

Your home continues to be one of your best and most reliable investments.  Our area is the fastest growing in the country, so price continue to be stable.  Homes under $400,000 continue modest appreciation.  Homes over $400,000 are keeping their value, although re-sales are slow because of bloated inventory on the market.

The easiest way to add value to your home?  Maintenance.  It’s not sexy or exciting or even particularly rewarding, but it is the one thing that protects your investment and can make the difference in selling in a slow market.  Did I mention maintenance often prevents bigger issues from developing, thereby saving you $$$$.

There are several maintenance schedule calendars on line to help you determine what needs to be done when and how often.  In addition, I recommend every couple of years  taking  photos of the exterior of your house and several shots of every room of the house.  It is amazing what you see in a photo that your eye just becomes adjusted to…the stains on the wall…drooping gutters.  Once you see it, you’ll want to repair it.

Home remodeling is transitioning somewhat, less dazzle and more substance.  Energy efficiency trumps handmade tile.  Energy credits from the federal government are more generous than ever.  For all the details on how to qualify for the credit, visit: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

The place where you get the best return on your money is landscaping.  100 to 200% return is not unusual.   Another area to invest in is storage.  Closet and cabinet systems that organize belongings or make the most of limited space make your life easier while you live in the home and create added value when you sell it.

Finally, leverage your home investment by entertaining friends and family there.  It creates profitable memories that will last for a lifetime.

  Realtors, politicians, appraisers and others met Monday morning for the Chatham County Briefing.  To no ones surprise, the report was not upbeat.

    There have been substantial job losses, primarily in Siler City.  Home sales have slowed dramatically.  In fact, Chatham County has been the Triangle's hardest hit area.  This is in part because of most of the new construction was high mid range and high end homes.  The $400K to $600K price point is the most bloated with 18 months of inventory.

     Not all the news was grim.  Chatham Hospital in Siler City opened.  Homes under $300 have been selling.  Chatham's lack of retail has been a blessing, of sorts, during the economic turn down.  The county does not rely on retail taxes to the extent neighboring counties do and therefore have not felt the economic pinch to the same degree. 

    County commissioner, George Lucier, also noted that the number of parks and recreational areas in the county have been vastly improved in the last three years.  Paid for in part, by the builders, whose homes are sitting on the market.

    This is a great time to buy a home in Chatham.  The selection has never been better, the prices and mortgage rates will never be better and Chatham County itself is better than ever.

  Does anyone know what the market will do? No. However, there are indicators that help make an educated guess.  Job availability, area diversity in industry, employment opportunities, and housing inventory are just a few.

  Research Triangle Park has been a job mecca for the last 50 years, bringing thousands of good paying, professional jobs.  The area colleges and universities, including UNC, Duke and NC State also employ thousands. These mega employers along with the agricultural, retail, service and manufacturing industries create a diverse employment base.  While no employment sector has not been hit my the recession, the ranks of the unemployed are not as severe as in other areas of the country and we are poised to bounce back quickly when the economy piciks up steam.

   Not surprisingly, the one area hardest hit is the housing industry.  New home and new commercial starts are down throughout the area.  Other than that, there are no blanket statements that can be made.  Talk about local...market conditions are almost different mile to mile.  In some areas, like Cary, the home prices have risen 2%, some areas of Durham have a dearth of foreclosures, other areas of Durham are selling briskly near asking price, homes under or near $300,000 throughout the area generally sell well, homes over $500,000 can expect to be on the market longer.

  Buyers with good credit can take advantage of low mortgage rates and good inventory.

  Sellers, the good news is buyers looking now are serious.  No tire kickers.  More than ever, your home needs to be in tip top shape.  Much of your competition is new construction.  You need to stress why your home is better than new...established landscaping, lot size, location, school district, historical charm, etc.

   Our area's competitive advantage to relocating buyers is climate, availability to world class health care, employment opportunities, educational opportunities, access to both the mountains and the ocean, nationally noted farms & restaurants, and the friendly people who live here.

   The market may be flat, but it is not dead.  Slower, but steady.

Seems like all the information about the worth of your home is contradictory; Orange and Chatham counties just raised the tax value of almost all property.  Zillow claims home values have gone down 2% in the Triangle area, Money magazine claims they have gone up 2%. Sales have slowed making it challenging to find 3 recently sold comparable properties to compare with your home.  So, what IS your house worth today?

A technique to find value that works well no matter what the market is doing, is particularly useful now.  Create an advisory board.  Call your lender to see if appraisals are coming in near the listing price for homes in your area.  Ask if they are seeing many foreclosures.  Check Zillow and Trulia, keeping in mind they are often wrong due to incomplete or incorrect information in their database.  Contact your favorite Realtor for her/his opinion on market value, market inventory and any other information that will affect your property’s worth.  If you're still not sure and need a to know for estate planning, possible relocation, private mortgage insurance removal, divorce settlement or other reason, call an appraiser who specializes in your area and your type of property.  If you are hoping to refinance, your lender will require an appraisal.  Confirm with the lender that the appraiser they use is familiar with your area and your type of property.  Farms, property with acreage, waterfront properties, or green built homes need to be appraised by appraisers with expertise in those areas.

Happily, most homes and properties HAVE increased in value modestly or held their value in the last year. 

Appraisers in our area I recommend can be found on my website at:

http://www.HiddenCoast.com/partners.htm

  Think you need a lot of land to grow your own food.  Not so! Over the weekend I showed a young couple a house.  The woman's mother had purchased a cute cottage on one acre with me a few years ago.  After checking the house for the newly married couple, we strolled down the street to mom's place. WOW!  Fruit trees, blackberry brambles, and what most of us would describe as a medium size garden.  The garden's owner, Rose, told me it takes her THREE HOURS to pick the garden every other day in season.  Three hours!

What Rose does with these treasures from the earth is create canned and jammed jewels for her business Blessed Earth Farm Products.  She sells them year round at the Carrboro Farmers Market.  You can also acquire them on the Web @ www.blessedearthfarm.com or

Selected products are available at
-Chatham Marketplace, Pittsboro, NC
-Weaver Street Market, Carrboro & Hillsborough, NC
-Guglhupf Cafe' & Bakery, Durham, NC
-Saxapahaw General Store, Saxapahaw, NC
-Tidal Creek Food Co-op, Wilmington, NC
-Harry's Market at White Cross, Chapel Hill, NC
-Lee Farms Fresh Market, Roxboro, NC

The visit to Rose's reminded me of two things, it does not take much space to grow some food or A LOT of food and that experienced gardeners tell new gardeners to start small.  It is good advice.  Most of us don't have the time to weed a large garden, pick a large garden or process the harvest properly. 

Whether you have the home of your dreams or you are still looking, small can be beautiful AND bountiful.

Last week Orange County held its annual agricultural summit.  Here are some of the highlights from the speakers:

Karen McAdams gave an update on the Breeze Farm 'new farmer' incubator.  Like a small business incubator, it gives farm entrepreneurs a space to begin their farm career, advice and equipment sharing opportunities.

Andrew Brannan with the NC Farm Transition Network discussed his work in matching older farmers with new farmers. High land costs are the major obstacle to new or young farmers.

Alanance County commissioner Dan Ingle brought the group up to date on the value added center located in Hillsborough.  It will be on line in 2010 to be used for canning, freezing, processing facilities for the use of local farmers.

Sue Gray with the NC Horse Council discussed challenges horse owners are facing, including access to hay and zoning issues with towns as they expand their territorial jurisdiction.  Sue reminded attendees that equine activities have become a huge revenue boost to our economy, creating jobs in the medical, retail and building industries.

Perhaps the speaker who spoke to the issues those of us in real estate are most interested in was Steve Troxler, NC Commissioner of Agriculture.  He reminded us that agriculture is a $70 BILLION industry in the state.  Most of these agricultural jobs are as recession proof as jobs get.  In addition, agriculture has two new revenue arms that are will grow in importance in the next few years.  These are biofuels and biomed industries.

One statistic commissioner Troxler quoted that is startling is this: for every family that moves to NC, two acres are used to support them.  That includes their home lot, and the school, hospital, fire department, etc. land needed for infrastructure for their needs.  It is easy to see how the tug of war for land begins.  People want to move here for the weather and the semi rural feel close to amenities and jobs. 

This IS a great place to live and the summit impressed me once again with how many creative, bright people live here, working to keep the state a great place to live.

After taking a leave of absence from blogging while working on other projects, I'm happy to begin blogging again with good news for our area.  UNC announced today they would NOT build an airport in Orange County.

Controversy began when the university asked for and was given by the state legislature the power of eminent domain to place an airport in an Orange County.  While the use of eminent domain by universities has been used in the last decade across the country, it has never been used for a non-educational purpose like an airport. 

Another site had been recommended by a consulting firm.  It would cost a pittance compared to building a new airport in an area with no sewer and county water facilities.  The areas targeted were the last bastion of farm acreage in the county.  Much of the property had been in the families for generations.  The prime site targeted is also in the watershed for this region.  In addition, it is the rural buffer zone scores of public workers and private citizens have worked decades to protect.

I thank all the volunteers who worked tirelessly to protect what can't be replaced.  My one regret is that the local board of Realtors and the state association of Realtors never made a public statement in defense of their clients in Orange County.

My clients, friends, and neighbors were well aware the board did not have their backs.  In these especially uncertain times it was an opportunity lost.

   While trying to convince Americans that a 700 billion dollar bailout to businesses who made bad decisions was in our best interest, we have been told there is no credit for home, car or businesses purchases.

    Yesterday, one of my favorite mortgage lenders, Jennifer Foster of Suntrust Bank, answered my query regarding access to funds.  Here is her report:

"I think the media has folks scared to death to invest in a home.

Anyway: VA and USDA are still doing 100% financing. We usually need 3 to 4 weeks to process VA, USDA and FHA. 

FHA is doing 97% financing. Ideally, if someone is getting a government loan, their credit scores should be at least 580, although I've had a few qualify with lower scores.

 For conventional financing, if financing more than 80% of the purchase price, best to have scores at or above 660 or the mortgage insurance is insanely costly.

 The 30 year fixed is teetering at 5.875% this week and predicted to stay very volatile. The experts are predicting more bank fallout from this crisis and it has national and world investors on a tailspin. 

It's becoming more and more difficult to get no-income-verification financing so folks are having to produce tax returns and W-2's again. Folks need to get used to the 2-2-2 rule again: 2 months bank statements, 2 years W-2's (tax returns if self-employed) and 2 paystubs.

 Tell your clients not to shread anything from the last 2 months, people are bad about shredding everything immediately."

Jennifer works in the Chapel Hill and Carrboro Suntrust branches.  She works hard to guide clients to the best financing for their needs and has been doing so for years in both good markets and slow markets. Contact her at: 919.932.2866

  It's been quite a week on Wall Street! Nationally housing values are down, stocks have tanked and you may have been wondering where your money might be safe.  Land.  Like gold, they are not making any more.   For investors who are going to hold the land for a couple of years, it is a solid investment.

 To get an idea of what is available...  

  I have two lots in Mebane that are private, yet close to I40 for easy access to the RTP, Chapel Hill or Burlington.  For more information on these affordable properties set to increase in value quickly with the development of Buckhorn Village click here: http://www.hiddencoast.com/lotlistch.htm.  

 Near Pinehurst and the Chatham County line, I have 6 large estate lots with river access, horse trails and a conservation easement along the Deep River.  These are sweet.  www.GlendonOnTheRiver.com  

To see all the land listings in our area visit my search tool: http://search.hiddencoast.com/mls.search?id=MariTrosclair  

Fall is the ideal time to walk land.  Wouldn't a hike be more relaxing than watching CNN?