North Carolina Real Estate Guide

Chapel Hill Town Council Gives Feedback on Homestead Road Project - Team Jodi Homes for Sale

noreply@blogger.com (Team Jodi) — Mon, 08 Dec 2008 19:45:00 +0000

Chapel Hill Town Council Gives Feedback on Homestead Road Project - Team Jodi Homes for Sale

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Two New Restaurants Open In Chapel Hill

noreply@blogger.com (Team Jodi) — Mon, 08 Dec 2008 19:38:00 +0000

Two New Restaurants Open In Chapel Hill & Carrboro - Team Jodi Homes for Sale

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Chatham County to Revalue Properties - Team Jodi Homes for Sale

noreply@blogger.com (Team Jodi) — Mon, 08 Dec 2008 19:29:00 +0000

Chatham County to Revalue Properties - Team Jodi Homes for Sale

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Changes Possible to Triangle Area Light Rail Plans - Team Jodi Homes for Sale

noreply@blogger.com (Team Jodi) — Mon, 08 Dec 2008 19:22:00 +0000

Changes Possible to Triangle Area Light Rail Plans - Team Jodi Homes for Sale

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GlaxoSmithKline Makes Research Triangle Park Sole Headquarters - Team Jodi Homes for Sale

noreply@blogger.com (Team Jodi) — Mon, 08 Dec 2008 19:12:00 +0000

GlaxoSmithKline Makes Research Triangle Park Sole Headquarters - Team Jodi Homes for Sale

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Short Sale

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 16:00:00 +0000

What is and is not a Short Sale?

A short sale is an arrangement between a homeowner and their lending institution to accept an offer on the home for less than the total amount owed on the property.

A bank-owned house, or foreclosure, is not a short sale. A seller deciding to lower their price and take less profit is not a short sale. To have a short sale, one of the parties has to be "shorted"; either the seller or the bank.

To further explain the difference; with a typical foreclosure situation, homeowners fall behind in their payments and the bank repossesses the house and sells it. In almost all cases, the bank pursues the homeowner for the deficiency (the difference between the amount owed and what the bank collects at the short sale). The only real way out of this type of situation is to file bankruptcy.

In the case of a short sale, a homeowner owes more for their house than they can sell it for. In other words, they are upside down. With a short sale, the owner goes to the bank and tries to arrange for the lender to forgive the difference.

What about the Deficiency?

Because of the large and growing problems with homeowners defaulting on their loans, the rules about short sale deficiencies have changed. Previously, the deficiency could be 100% loaned to the seller in the form of a promissory note which would have to be repaid. If the bank wrote off any portion of the deficiency, this would be reported on the owners 1099 as income. New and important tax rules have changed this! If the home that is the subject of the short sale is a principal resident - vs. an investment property - and that home is worth less than or equal to $2 million, the tax on the deficiency will be forgiven. This is huge.

How Does A Homeowner Qualify for a Short Sale?

There are four criteria a homeowner must meet to qualify for consideration by the lender for a short sale:

There must be a demonstrable financial hardship, e.g., a lost job or material change in the financial situation;
There must be a monthly shortfall;
There must be insolvency, meaning that the owner does not have the money to pay down the mortgage; and
The owner does not have any assets to sell to pay for the shortfall.
What is an acceptable Hardship?
There must be a hardship that is preventing the owner from being able to pay their mortgage.

Examples include:

Loss of job
Business failure
Damage to property
Death of a spouse
Death of family members
Severe illness
Divorce
Inheritance
Mandatory job relocation,
Medical bills
Military service
Payment increase or Mortgage adjustment
Insurance or tax increase
Reduced income
Separation
Too much debt
Incarceration

What is the Insolvency Requirement?

The owner must not be able to pay down their mortgage. To qualify for a short sale, the homeowner must be financially insolvent. This means that they owe more than they have and they do not have liquid cash or assets that could be used to buy-down their mortgage.
If the owner does have liquid cash or assets they will be expected to use them to pay down their mortgage. There could be a scenario where an owner made a contribution towards the sale of the property and the lender covers the shortfall.

A short sale is not a way to get out of a mortgage. It is a tool for a borrower to use when they truly can't pay their mortgage.

The major difference is that a foreclosure is a credit item that can last forever and a short sale is not.

Prior to 2007, a homeowner would receive a 1099 for any debt that was forgiven in a short sale or a foreclosure. In effect, the cancelled debt was considered income. The Mortgage Forgiveness Debt Relief Act of 2007 changed this rule.

From January 1, 2007 to January 1, 2010, the tax on debt cancellation in a mortgage discharge situation is eliminated if the debt was incurred in the acquisition of a principal residence and he cancelled debt is less than or equal to $2,000,000.

Debt from a second mortgage or HELOC is not eligible nor is cancelled debt from investment properties and second homes.

See also:

Jodi Bakst Earns Designation as Short Sale Expert
North Carolina's Governor Signs 3 Foreclosure Bills
The Mortgage Report

Electronic Signatures

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 15:55:00 +0000

I finally got off the dime and signed up via ZipForms for electronic signatures through Docusign. With my client in India and the buyers in North Carolina, it became imperative to move the contract electronically with no printing and faxing. The electronic signature process is pretty cool. Once you create and upload your contract documents you define who will get the contracts for signature and in what sequence. Once someone finishes, an email is sent to the next person in line. You and the sender of the documents can track the movement/history on line. It is a wonderful thing to go paperless and in situations like this is is much better than having the tablet. For $12.95 a month, I think this is well worth it.

As an experienced realtor, I can make the home buying or selling process easier and more convenient for you - in this case through technology!

Why You Should Choose an Experienced Realtor

Home Wiring

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 15:50:00 +0000

It is important to consult a reputable home inspector to check the home wiring before purchasing a house. Knob and tube type wiring and aluminum wiring are common in older homes, and both are considered substandard today. In fact, many insurance companies will refuse to insure homes with these types of wiring, and since banks require homeowner's insurance before extending mortgage loans that are conditional on the ability to obtain insurance, this is significant. Knowing what type of electrical system you're dealing with is crucial when trying to close a real estate transaction. Knowledge is power.

Commonly used in homes built in the early 1900s, knob and tube wiring derived its name from the ceramic knobs securing the wire and the ceramic tubes that pass through the wood framing. The primary main issue with this type of wiring is that the insulation surrounding the wiring can break down, creating a potential fire hazard. Aluminum wiring was common in the 1960s and 1970s and it now known to be a potential fire hazard due to arcing at the connectors, which causes overheating at switches and outlets or splices in the wire.

It can be very expensive to remove and replace both knob and tube wiring and aluminum wiring. If you think your potential future home may have substandard wiring, it's especially important to have inspected by a professional. In any case, it's always a good investment for buyers to keep their offer conditional on a home inspection.

Especially if you're a first time homebuyer, you need to be aware of how different systems in your home impact energy costs, contribute to home values, and require upkeep in the years ahead. An experienced realtor can point out some things to consider as you balance these concerns, but the blog posts below might be helpful as well:

Why You Should Choose an Experienced Realtor
Home Wiring
Thinking of Stucco?
Energy Efficient Windows
Eco-Friendly Siding Options
Home Warranties Are A Great Negotiating Tool For Buyers and Sellers

Los Angeles Times Axes Real Estate Section

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 15:39:00 +0000

The following article was recently posted by Inman News.

Los Angeles Times axes real estate section
Expect continuing cuts in newspaper industry, says analyst
By Glenn Roberts Jr., Monday, August 4, 2008.
Inman News

The Los Angeles Times has ceased publication of its weekly real estate section -- born more than a century ago -- amid major staff cuts.

In mid-July, newspaper managers began to carry out the "largest staff and production cuts in the newspaper's history," according to an article in the Times, citing "a continuing slide in advertising revenue." The newspaper has a circulation of more than 1 million and ranks among the largest newspapers in the nation.

Staff and content cuts are certainly nothing new for newspapers, and a media analyst told Inman News that similar downsizing will likely continue to plague the industry as ad dollars continue to shift online.

The cutbacks initiated last month at the Los Angeles Times had initially targeted about 150 newsroom employees, or 17 percent of the company's newspaper and Web site editorial staff, according to the Times article, with plans to cut 100 positions in other departments.
Times Publisher David D. Hiller resigned the day after the cutbacks began. Times Editor Russ Stanton announced on July 30 that 135 newsroom employees were laid off, and content cuts have led to 14 percent fewer pages.

Such major cuts at that paper and others have triggered questions about how the industry can properly inform readers about community news in the face of staff cuts, the article notes.
Stanton had earlier stated in a letter to readers that "The future of the Los Angeles Times, in print and online, rests in our ability to meet the needs of our readers and deliver news and information that is unique, far-reaching and indispensable. In-depth journalism remains our hallmark and we are committed to that mission in the face of economic challenges to our industry and our nation as a whole."

He announced that the newspaper's "Home" section would move from Sundays to Saturdays and would combine with "Real Estate," amid other changes -- "Book Review" was merged with an "Arts & Books" section to become "Arts and Books," for example, and the Times had earlier announced the termination of its weekly magazine, among other reductions in content.

Lauren Beale, real estate editor for the Los Angeles Times, wrote in a July 27 blog post at the newspaper's L.A. Land blog, "because of reductions in staff and space, the Sunday Real Estate section has printed its final edition."

She noted that the newspaper would continue to publish real estate coverage throughout the week and a few regular features of the section would continue in the Saturday "Home" and Sunday "Business" sections.

Beale began working for the newspaper's Real Estate section almost 29 years ago. "There's a journalism term for finishing an edition's work: You put the section to bed. When I started as a part-timer in this department ... under then-editor Dick Turpin, I never dreamed that one day I'd be putting the section to bed for good," she wrote. The newspaper's Real Estate section had launched in 1901.

She told Inman News that some other major newspapers have abandoned editorial-produced real estate sections in favor of advertising sections that she referred to as "advertorial," or ad-based real estate content.

Readers' online comments about the end of the weekly Real Estate section ranged to the extremes, from anger at its cancellation and the media company's owner Sam Zell to ugly condemnation of the section.

A supporter of the section wrote, "it was informative (plenty of question-and-answer columns for renters, condo and home owners), presented the facts, and provided some entertainment." That reader planned to cancel the newspaper subscription over the loss of its Real Estate section, according to the post.

"I'm more of a news, business, sports guy, so I didn't read the Real Estate section," wrote another Times reader. "But I am disturbed by the prospect of some of our big city papers being dramatically downsized or going away. The Internet (is great at) distributing other people's content, but not so much at originating it ... papers like the L.A. Times, imperfect though they may be, still frequently play an important role in keeping our other institutions honest."

Meanwhile, another wrote, "I'm probably not going to miss the Real Estate section. The only thing I ever read in the Real Estate section was the story of how some self-absorbed celebrity is selling his mansion for $10 million, which was always curiously $8 million more than similar-sized homes in the same area."

Helene Lesel, a real estate writer whose syndicated "Rental Savvy" columns have run in the Los Angeles Times for the past seven years, said her column is one of the casualties in the demise of the weekly section.

"They're not going to accept anymore syndicated material -- there's not anywhere to put it," said Lesel, whose columns are distributed by Inman News. "I had read that section since I was a little kid." The Times seems to be focusing more on the Web these days, she said. "It's a whole new world out there."

Stanton's letter last month did state that the newspaper's Web site "just recorded its biggest month ever in June with 115 million page views, a 50 percent increase over last year," and Stanton also noted that readers "embraced" some of the Web site's new blogs.

Real estate ad budgets are shifting toward online media -- and that shift is likely permanent, said Colby Atwood, president for Borrell Associates, a media research and consulting firm.

"Real estate advertisers during this downturn are going to be trying the Web, some of them for the first time, and once they do they won't go back," Atwood said.

There has been a drop-off in real estate advertising spending in print publications, owing to the housing downturn and this shift to online media, which can be "more efficient, more trackable" and offer a better return on investment.

"It is not surprising that newspapers are starting to scale back their real estate sections. The decision by the L.A. Times is an example of things that we're going to see more of as (newspapers) manage the contraction of their business -- which is what metro daily newspapers are going to be about for the foreseeable future," Atwood said.

And while some of the ad problems newspapers are facing now with the severe downturn in the housing market are cyclical, Atwood said not to expect ad money to flow readily back into print when the market recovers and rebounds.

"Truly fundamental shifts are taking place in the advertising industry and a lot of advertising media are not coming back. (Advertisers) are going to be hard-pressed to justify spending money on things they now know are inefficient," he said.

A Borrell report released last week states that the newspaper industry suffered a record decline in revenue from classified print ads in 2007, "driven largely by a 23 percent fall in real estate classifieds."

The report also states, "Newspapers are beginning to understand that their most valuable franchise is not local news, but local sales information," and about half of the people who buy a newspaper do so for the advertising content.

Local news may not be a big selling point for local advertisers: "The epiphany that newspaper managers are beginning to experience is that local news and community information (as opposed to national news) may not attract a large or particularly attractive audience for small advertisers," according to the report, noting that the Internet is quickly growing in popularity among small advertisers, with local online advertising increasing at a rate of 61 percent this year.
Residential real estate agents and brokers are expected to spend about 25 percent of their ad budgets with newspapers this year, with 12.8 percent going to online sources and 24.2 percent toward television ads.

Meanwhile, residential real estate developers are projected to spend about 47.9 percent of their total ad budgets with newspapers and about 30.2 percent online; and mortgage providers are expected to spend about 8.9 percent of their ad budgets in newspapers and 22.1 percent online this year.
--Inman News reporter Matt Carter contributed to this report.

What do you think? Is the real estate section a thing of the past? How does it affect your market?

Is this the wave of the future? Real estate sections in local North Carolina newspapers seem safe for the moment but online posting is an essential tool for the modern real estate agents. That's why I not only post my listings to my website www.teamjodi.com but also to Active Rain and numerous other blogs. The listings turn over but, but here's some examples to recent Internet listings that arguable show off a property to better advantage than print alone:

Argonne Hills Neighborhood -- Chapel Hill, NC
Woodlake Neighborhood - Durham, NC
Southern Charm & Spacious Living Near UNC & Duke

Energy Efficient Windows

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 15:28:00 +0000

Energy efficient windows are available in many shapes, sizes, and styles-single pane, double pane, and triple pane, casement and double hung and more. There are energy efficient windows to meet any practical and aesthetic need. Energy conservation in the home is no longer limited to only the plain and functional.

Not only are energy efficient everyday window styles easy to find, but there are many other specialty styles that use the same energy efficient technologies. For example, sliding patio doors and skylights can now be made of efficient materials, and bay windows can be built using various components of other energy efficient window systems. Energy efficient windows not only help the environment and your utility bills, but also increase curb appeal and add value to your home.

Especially if you're a first time homebuyer, you need to be aware of how different systems in your home impact energy costs, contribute to home values, and require upkeep in the years ahead. An experienced realtor can point out some things to consider as you balance these concerns, but the blog posts below might be helpful as well:

Why You Should Choose an Experienced Realtor
Home Wiring
Thinking of Stucco?
Eco-Friendly Siding Options
Home Warranties Are A Great Negotiating Tool For Buyers and Sellers

Thinking of Stucco?

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 15:21:00 +0000

In North Carolina, sellers are required to disclose if a house's exterior is actually artificial stucco-EIFS Stucco-instead of concrete stucco. EIFS is basically a form of styrofoam placed on the outside of the house with a "stucco" look-alike finish on the surface. While a house with EIFS can absorb the inevitable settling of the house over time without cracking, it does come with other hazards. Unfortunately, EIFS stucco applied on a wood-framed home (especially if not applied properly) tends to hold moisture inside the walls, which can cause the houses wood and frames to rot. If you fall in love with a home with this artificial stucco, before purchasing the home you should insist the seller replace the stucco with an appropriate new finish, and make any repairs needed at their own expense. It may even prove helpful to request an engineer's report and documentation of repairs.

Concrete stucco homes are less able to absorb settling changes without cracking, and it is important to make sure the foundation is engineered to support the extra weight of the stucco. Whichever kind of stucco you encounter, a professional inspection will alert you to any problems, notify you of any areas you need to keep caulked, and alert you to what to potential signs of trouble in the future.

Especially if you're a first time homebuyer, you need to be aware of how different systems in your home impact energy costs, contribute to home values, and require upkeep in the years ahead. An experienced realtor can point out some things to consider as you balance these concerns, but the blog posts below might be helpful as well:

Why You Should Choose an Experienced Realtor
Home Wiring
Eco-Friendly Siding Options Home Warranties Are A Great Negotiating Tool For Buyers and Sellers

Oversupply of Luxury Housing

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 15:16:00 +0000

Residential housing priced at $500,000 and above is currently oversupplied, according to the Second Quarter 2008 Triangle Area Residential Realty Report published by S.M.A. Publications, Inc. The report uses data from www.realtor.com, Durham, Orange, Chatham and Wake County Revenue Departments to support their findings.

The 2005 market on the fringe of having an oversupply in the luxury sector, and by 2008 luxury inventory grew 130% and sales simply couldn't keep up. Realtor.com showed 991 luxury listings at the end of he second quarter in 2005, and by the same time in 2008 those listing had increased to 2,279. Between 2005 and 2008, North Raleigh and Southwest Wake had the highest percentages of growth in the luxury sector at well over 2005 each, with Durham at over 150%. While homes sat on the market an average of 9 months in 2005, the current supply is now at 17 months.

This growth in the luxury segment has reached a point that it is not healthy for the market. In 2005, increasing costs of land and development led developers and builders to create many luxury priced communities, resulting in an overflow of homes that the 2008 market cannot currently support.

See also:

The Mortgage Report
Year-to-Date Market Update 2007 vs. 2008
Wake County, North Carolina 2008 Second Quarter Market Update
New Tax Credit for First Time Home Buyers Why Is It A Great Time To Buy?

Eco-Friendly Siding Options

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 15:09:00 +0000

Sustainable siding needs to contain eco-friendly ingredients as well as be a product that will stand the test of time. When considering the eco-friendliness of a particular type of siding, make sure to account for any resins and adhesives that may have an off-gassing effect. Some popular green siding options include solid wood, fiber cement, metal, engineered wood, and stucco.
Solid wood: FSC-certified or repurposed wood products are the most environmentally friendly choices for solid wood siding. This renewable material does, however, require frequent maintenance.

Fiber cement: Products like HardiePlankTM from James Hardie offer the look of natural wood with the durability and affordability of the mix of cement and wood fibers.

Metal: Aluminum and steel compositions are usually made of recyclable materials and can result in a very modern and sophisticate look.

Stucco: Low-maintenance and durable, stucco is a classic cement-based treatment.
Especially if you're a first time homebuyer, you need to be aware of how different systems in your home impact energy costs, contribute to home values, and require upkeep in the years ahead. An experienced realtor can point out some things to consider as you balance these concerns, but the blog posts below might be helpful as well:

Why You Should Choose an Experienced Realtor
Home Wiring - http://activerain.com/blogsview/640000/Home-Wiring
Energy Efficient Windows
Thinking of Stucco? Home Warranties Are A Great Negotiating Tool For Buyers and Sellers

Are You Looking For A Language Immersion Program For Your Child?

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 15:01:00 +0000

The Chapel Hill Carrboro School System has an incredible Dual Language, or Language Immersion, program for both Spanish and Mandarin Chinese. The program began in 2002. My daughter started in the Spanish Program in Kindergarten and she just entered Middle School and is in the first Middle School Dual Language Program. It is very cool to have a 10 year old that is bilingual, especially since she comes from a family where her parents are not fluent in another language. It is the goal of this program that the children be both bilingual and biliterate.

It is also an incredible learning environment when your child can learn side by side with an equal amount of native speakers. In this program, the kids really work together and learn from each other.

The Spanish Program is at Carrboro Elementary and the Mandarin Chinese Program is at Glenwood Elementary. From the time the kids are in Kindergarten they spend 50% of their school day speaking in the target language. Throughout elementary school my daughter took math, science or language arts in Spanish. This was matched by an equal amount of time spent on these subjects speaking English.

The program has matured to the point where the first classes in both Spanish and Chinese have gradated to Middle School. The Spanish and Chinese Middle School Dual Language Programs are at McDougle Middle School. At the Middle School Level the kids have two classes that are 100% in the target language. These are the standard course of study for the 6th Grade Social Studies Curriculum and a Language and Cultural Arts Class. This of course is combined with the other classes in Math, Science and a second Language Arts that are taught in English.
To learn more about the Dual Language Program in Chapel Hill-Carrboro, NC, visit the Chapel Hill-Carrboro School District site at:

http://www2.chccs.k12.nc.us/education/components/scrapbook/default.php?sectiondetailid=34596

Also, read the article where the Chapel Hill-Carrboro City Schools were honored for the Dual Language Program:
http://ciu.northcarolina.edu/docs/CHCCS_press_release_Finished_Copy.pdf
Finally, the Elementary and Middle School web sites are:
Carrboro Elementary:
http://www2.chccs.k12.nc.us/education/school/school.php?sectionid=2
Glenwood Elementary:
http://www2.chccs.k12.nc.us/education/club/default.php?sectiondetailid=14042&sc
McDougle Middle School
http://www2.chccs.k12.nc.us/education/school/school.php?sectionid=12

How our students are doing in surrounding counties is shown in recent SAT scores and in special enrichment programs offered in the schools. See:

Chapel Hill-Carrboro High School's 2008 SAT Scores Shine
Chatham County, NC 2006-2008 SAT Scores
Orange County NC School SAT Scores 2006-2007
Durham, NC High Schools 2006-2008 SAT Scores
Wake County, NC Schools 2007-2008 SAT Scores

The Mortgage Report

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 14:38:00 +0000

According to the Federal Reserve, American homeowners saw their net housing equity-or the values of their property minus mortgage debt-grow from $6.2 trillion to $9.6 trillion from 2000 to 2007.

According to the National Association of Realtors, America is adding close to 1.5 million new households per year which will create an increasing demand for homes.

The Bad News

According to the Office of Thrift Supervision, nearly 2.3 million homes totaling 3 percent of the nation's housing stock, are vacant and on the market. This represents over a 10-month supply given current sales. Foreclosures and mortgage payment delinquency rates continue to increase every month, putting downward pressure on the value of our homes.

The Outlook

I believe the new housing bill and other efforts by the government and private industry will help to stabilize the housing market. I believe the percentage of homes going into foreclosure will level off during the first half of 2009, and then home values will start stabilizing across much of the country. When that happens many buyers will come into the market and the excess inventory will start to move.

Interest Rates

During the past quarter 30-year, fixed rate mortgages increased about half a percent to 6.25 percent. Currently 30-year, fixed rate jumbo mortgages are over 7 percent, but there are some great rates on 5/1 jumbo arms, at about 5 ½ percent. So if you are in the market for a loan of over $417 thousand, one strategy would be to go with a 5/1 arm, and then when the jumbo market returns to it senses, refinance into a fixed rate.

Wake County, North Carolina 2008 Second Quarter Market Update

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 14:26:00 +0000

I think it is critical to monitor the local real estate market and to provide updated market statistics/information to the public. I provide these market updates throughout the year, based on information supplied to me by Stacey Andfinsen at Birch Appraisals. Click here to see my first quarter market update. Now that we are through the second quarter, provided below are the newest figures for Wake County, the home of Raleigh, Cary, Apex and Wake Forest.

What Is Happening With Inventory & List Prices?

Second quarter inventory increased 25% compared to the second quarter in 2007. Average list prices increased 1% to slightly more than $368,500.

What is Happening With Closings And The Average Sales Price?

In June, the number of closings decreased by 35% compared with the same time frame in 2007. Average sales prices for all homes increased 1% in June and the average sales price for re-sale homes only increased 1.2%.

How Long Are Houses Staying On The Market?

The average days on market for closed sales in Wake County increased to 85 days in 2008 vs. 70 days in 2007.

Are Houses Appreciating?

The current rate of appreciation in the Raleigh-Durham-Chapel Hill area is significantly better than the average rate experienced nationally. The U.S. is at -4.8%, North Carolina is 3.59%, Wake County is 4.8% and the South East is -2.95%.

This information was provided to Team Jodi by a local appraiser, Stacey Andfinsen with the Birch Appraisal Group of Cary, North Carolina.

Click here to learn more about Team Jodi and our services.
Click here to view Team Jodi's listings;
Click here to Search listings throughout Chapel Hill, Carrboro, Durham and the surrounding Triangle NC area.

If you are looking to list your home in Chapel Hill, Carrboro, Orange or Durham County North Carolina, call Team Jodi toll free at 888-TeamJodi (888-326-5634), email us at Jodi@TeamJodi.com or visit us at www.TeamJodi.com.

Answering the Tough Questions

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 14:21:00 +0000

Today a prospective homeowner turns on the T.V. or picks up a newspaper and hears little about the housing market but doom and destruction. Foreclosures, mortgage-loan related bank failures, slow housing starts, and poor home sales dominate the news. Tougher credit requirements are now the norm as a remedy to further financial trauma for consumers and banks alike. All of this may lead a would-be buyer to quickly answer the question "Is now a good time to buy a home?" with a resounding "NO!"

Before signing that apartment lease for another year, a would-be buyer scared off by current events in the housing market needs to look behind the scenes of the mortgage crisis. Though the situation is complex, in analyzing the causes, there is plenty of blame to go around.

Aside from the popular scapegoat - the general economy - buyers, real estate agents, and lending institutions all share some blame for the current situation. Home ownership is the American Dream. Nowhere is written that the perfect home must be the size of the Taj Mahal and must be located in an upscale development. Many buyers today have been mesmerized by beautiful homes that are too big, and egged on by realtors and enabled by banks, bought more house than they could afford. Even when people get pre-qualified by banks, the amount of home that a consumer can theoretically afford might really leave him "house poor" because they did not consider many costs of ownership in the new neighborhood. Buying a house on a such a tight budget that there is nothing left for a new shower curtain, a night out, or an emergency repair quickly takes the joy out of homeownership; a major life crisis or job loss can result in equally quick foreclosure.

Many news stories have focused on unscrupulous mortgage brokers who took advantage of uninformed consumers to tie them into unfavorable loans, but some consumers were knowing parties in schemes that put them in homes beyond their means. Some banks were too liberal in granting loans to questionable buyers who presented information that could not be verified, but sometimes people did not provide complete and honest information to lenders either. Personal greed and irresponsibility figured heavily in the crisis.

The person who should answer "YES" to the question of home ownership now is someone with good credit, a stable job, a down payment, and reasonable expectations of what he wants vs. what he can afford. For the responsible person with a desire to be a homeowner, who meets the financial criteria, there are unique opportunities in the current marketplace.

Many foreclosed homes on the market offer great bargains for qualified buyers.
It's also a buyer's market with most pre-owned homes on the market.
Though there may be less negotiation possible on new construction, especially for upgrades, federal and local tax incentives for new homeowners may put a brand new home within the realm of possibility.

While it's true that lending institutions are less likely to stretch out to grant questionable loans this year, banks are still committed to making mortgage loans to prequalified buyers. They still offer pre-qualification services to give would-be buyers an indication of how much house they can afford and whether they would qualify for a mortgage. Good real estate agents are still interested in matching buyers with homes in their realistic price range. For qualified buyers, this is a great time to enter the world of home ownership.

Have You Had Issues With Buyer and Seller Clients That Are Divorced or Separated

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 14:12:00 +0000

Every year I seem to have the year of something. One year it was the year of the cracked heat exchanger, or termites or structural issues. Recently, I had issues with one seller client and one buyer client regarding their divorce or separation.

In the case of the seller, they did not have a lawyer involved in the process; they did all of the paperwork themselves. I was told after asking repeated questions, that all of the paperwork was in order and recorded properly. Prior to closing we found out that the final divorce paperwork had not been recorded. This meant that my clients former wife had to be tracked down to sign all of the documents. This was not the most pleasant task even after I had warned the client that there could be issues if things were not done correctly.

In the case of my buyer client, she was separated and she wanted to buy a home. If she wanted to buy and not have her soon to be "X" have rights to the property, she needed a Free Trader Agreement.

After these experiences, I asked an attorney to write something for me on this topic. I have also prepared a short checklist to use with clients to help give them an attorney direction, if needed. I hope this information is helpful to you.

Considerations When You Are Selling or Buying A Home When You are Separated or Divorced

The focus of this article is limited to discussing a small number of matters to consider in the sale of your home when you are separated or divorced. The problems that are often encountered for Sellers who are attempting to list the home or close on the sale when they are separated or divorced may, at times, be particularly frustrating. It is important that you realize that the closing attorney must consider North Carolina estate, domestic and contract law to determine if a separated, non-separated or non-owning husband or wife will be required to sign either the conveyance deed (if property is being sold) or the deed of trust on the property for the Buyer's lender to issue a mortgage. In the case of closing on a refinance of an existing mortgage on the marital home, the same rules apply.

Points to Consider if You Are Separated

1. The Role of Estate Law. North Carolina Estate Law provides that a spouse may dissent from the Will of the other, if the deceased Husband or Wife has not provided a minimum statutory share of his or her estate to the surviving spouse. Included in the law is the right for the surviving spouse to dissent from the will to claim a life estate in all real property that the deceased spouse owned at the time of death and this right continues even if the husband and wife are separated. These statutory marital rights result in a legal requirement that, prior to a divorce, in order to sell any real property owned by the parties both husband and wife must sign the conveyance deed transferring the property to the Buyer. This same requirement applies even if the parties are not separated, and only one of the parties (husband or wife) is the actual record owner of the property.
2. The Role of Legal Documents. There are only limited exceptions to the requirement for a Husband's or a Wife's signature on either (1) a contract for the sale of the home; (2) on the conveyance deed to transfer the home; or (3) on a deed of trust if purchasing a new home or refinancing an existing home. The most important exception to this rule is when the public record provides notice by a recorded instrument that the non-owning husband or wife has released all common law and statutory rights in the other's real property such as in a Pre-Nuptial Agreement. A separated husband or wife can also transfer his or her marital rights to property by using this type of release language in an actual conveyance deed where one of the spouses conveys his or her marital right to the property to the other through the deed. If this type of deed has been recorded it will allow the record owner spouse to sell the property without the signature of the other. If the language is not specifically placed in a conveyance deed, there may be a contractual Separation Agreement, a court-ordered Separation Agreement, a Memorandum of Separation or a Free Trader Agreement that specifically releases all common law and statutory rights of the separated and/or non-owning spouse to the real property owned by the other spouse. Remember, the use of a recorded Memorandum of Separation is often the best way for separated spouses, who are selling real property or buying real property, to avoid the signature requirement of the other spouse. You should consult with your domestic attorney to make certain this is done as part of your legal work in the separation or divorce process.
3. The Role of the Title Insurance Company. Over the last few years, at the time of purchase, the title insurance company being used by the closing attorney may be willing to insure the lender over the lien interest (deed of trust) without the signature of the non-owning spouse, by taking the position that it is "purchase money" being provided by the lender. This concept is too detailed to discuss as part of this writing. However, if this is important for you as a Buyer you will need to consult with your closing attorney to find out if you can avoid having your spouse sign the deed of trust. Of course, as previously discussed, if there is already a valid recorded Memorandum of Separation, or other legal document releasing all marital rights the problem is resolved.

The Final Questions or Points to Consider if You are Separated:

1. Do you have a Separation Agreement or legal document that releases all common law or statutory rights in real property? If not, do not buy or sell real property until such time that your separation is finalized with a divorce. As long as you are legally married, even if you are separated, your spouse has marital rights to your real property unless you both have signed an agreement to release your marital rights.
2. Are both spouses the current record owners of the property or is only one spouse a current record owner? If you are already divorced, was the property that you are selling previously transferred into your sole name by a conveyance deed? If not, your divorced spouse will need to sign the conveyance deed when the property is sold and typically the closing attorney will be concerned as to the instructions for the distribution of the proceeds to the Seller. C heck with your domestic attorney if you are not sure that there is a legal agreement, document or court order in place that specifically states the real property rights of each spouse. The closing attorney will often need to review the terms of your settlement where it states who gets the proceeds from the sale of the home, or perhaps obtaining a note from the domestic attorneys instructing how to distribute the closing proceeds. If there is no controlling document or if the domestic matter remains unsettled; the proceeds of the sale can be held in an attorney's trust account until such time that an agreement has been reached by the separated or divorced parties.
3. Naturally, the goal of your realtor and/or the closing attorney is to help you with a successful sale or purchase so that you can move forward with your life. Therefore, if you have a recorded Memorandum of Separation or Free Trader Agreement, that was signed by both parties and notarized, or the property was conveyed into your sole name where the conveying deed released the common law or statutory rights of your separated spouse in the property being sold it will be of great help to your realtor to provide this document at your first meeting.

Here is the checklist!

Questions If A Client Is Separated or Divorced

Yes No

•1. Do you have a separation agreement?
•2. Is the separation agreement signed by both parties
And notarized?
•3. Is the separation agreement recorded in the county
you resided in at the time of the separation?
If yes, can you supply a copy of the first page of the
Recorded agreement that indicates the recording
Information (book, page reference information)?
•4. Is the Deed to the property in your name only?
•5. Do you have a Free Trader Agreement?

If yes, can you supply a copy of the page of the Separation

agreement that deals with the Free Trader Agreement?

Selling a home is stressful enough but when the process is compounded by divorce or separation, the stress level can increase - especially if the split is acrimonious - and emotion and a desire to conclude the matter - can create a legal nightmare. If other financial problems cloud the potential sale, such as impending foreclosure or the need to pursue a short sale to fulfill all financial terms of the settlement, both parties absolutely need to consult a real estate attorney in order to prevent future loss.

Checking with a real estate attorney when negotiating a contract is always a good idea. When divorce or separation is involved, it is mandatory. At Team Jodi, we can put you in touch with an excellent real estate attorney if you don't have one.

Why You Should Choose an Experienced Realtor
Jodi Bakst Earns Designation as Short Sale Expert
Short Sales

Do You Think MLSs Should Share Data?

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 14:05:00 +0000

Inman News just posted an exciting article titled, "7 MLSs Agree to Share, Exchange Data." Essentially, seven multiple listing services in Northern California will share and exchange MLS data. This means that Realtors no longer have to join multiple MLSs if you want to list and sell property outside of your MLS. Now with one broad system, agents will be able to "access, download and display information from all of the other MLSs." Through this system, agents will be able to search for properties in the other MLSs, to enter listing information and to update and maintain this listing information.

I think this is a phenominal step by these 7 Northern California MLSs. I have always felt and argued that if you are licensed in a particular state then you should be able to represent buyers and sellers -- easily -- anywhere within the state.

I hope we start to see more and more of this across the country, and particularly in my State, North Carolina.

Anyone with a computer can see what is listed by the MLS anywhere in the country. Realtors can offer prospective buyers additional information about properties only in their own areas, but that insight is valuable.

Why You Should Choose an Experienced Realtor

North Carolina's Governor Signs 3 Foreclosure Bills

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 13:59:00 +0000

In light of recent soaring foreclosure filings in North Carolina - 24% from June 2008 and 125% from July, 2007 - Governor Mike Easley signed a bill to offer relief to homeowners and banks alike. The North Carolina Foreclosure Prevention Project requires that both homeowners and the state's bank commissioner must receive 45 days notice before a foreclosure is filed and also allows the bank commissioner to extend any foreclosure filing notice by 30 days. During this time, the state would negotiate with the homeowner and mortgage holder on their loan interest rate and payments. Easley estimates that that the law could help over 25,000 families stay in their homes and prevent losses to the banks which often reach 40% on a foreclosed loan.

In a news release, he said, "The program is the first of its kind in the nation that makes sure homeowners and lenders avoid foreclosures, where everyone ends up a loser. Our goal is to help bring borrowers and lenders together so that the family gets to keep their home and the bank does not lose money on the loan." The program will not cost the taxpayers anything.
Since his days as Attorney General, Easley has fought predatory lenders, promoted legislation to limit the amount mortgage brokers could charge, added buyer protections to adjustable rate mortgages, and required lenders to extend loans it line with a borrower's ability to pay. His efforts have made North Carolina a model in the nation for protecting buyers from unscrupulous lenders. The state has fewer subprime loans, half the national average of adjustable rate mortgages, and significantly less mortgage fraud than the national average. Since North Carolina ranks second in the nation in the number of financial institutions based in the state, Easley believes that if a plan to ease the impact of foreclosure gets the support of bankers here, it could work elsewhere.

For those people that find themselves in financial hardship or distress and have missed one or more mortgage payments or are about to, there are choices and ways to avoid foreclosure. If you want to know the price of your home or ask a question, go to http://www.shortsalesinnc.com/ and register and I will get back to you right away or contact me at Jodi@TeamJodi.com. For more detailed information about what is a short sale and how do you qualify also read my post titled, "Can Short Sales or Pre-Foreclosures Work in Chapel Hill, Durham and Orange County?"

Home Warranties Are A Great Negotiating Tool For Buyers and Sellers

noreply@blogger.com (Team Jodi) — Sat, 18 Oct 2008 13:50:00 +0000

Home Warranties have proven to be a great negotiating tool for both buyers and sellers. I put them on all of the homes I list for sale in Chapel Hill, Durham and the surrounding area. Most home warranties can be initiated at the time of listing the home and therefore provides coverage to the seller during the listing period. It is amazing how many things can go wrong when you put your home on the market. Invariably, a toilet will leak, the dishwasher or microwave will break or the air conditioning or heat will stop working. For a modest co-payment, typically $45, the home warranty company will send out a technician to fix the problem. In those cases where things are broken beyond repair, they may even replace the item.

Now, we all know home warranty companies are insurance companies and they like to fight claims. As the listing agent that uses home warranties all the time, this gives you leverage to work on your sales agent to get the job done. It is amazing how well this works!

In addition to the above, home warranties really do work as great negotiating tools. For example, when items are brought up on a home inspection, and there is a transferable warranty in place, the seller can often times negotiate fewer repairs. A few months ago, I had a transaction where the house had a septic system. When the repair request came in, my seller actually refused to make any repairs because they had given the buyer a good sum for closing costs and they threw furniture into the deal. It was now up to me to make this deal work!

Thankfully, there was a home warranty in place and I was paying for it to transfer to the buyer at closing. I learned that the most important thing to the buyers was ensuring that the septic system was ok. I increased the coverage on the home warranty to cover the septic (this cost an additional $75) and the buyers where happy. I was more than happy to spend less than $500 on the warranty to make the deal work and get paid for all of my hard work on listing and marketing the house as well as negotiating the deal.

I have seen time and time again where home warranties really help. I put them on all of my listings and I pay for it. This is a great listing tool as well as a win win for buyers and sellers throughout the transaction.

Click here to Search listings throughout Chapel Hill, Carrboro, Durham and the surrounding Triangle NC area.
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If you are thinking of selling and what to know your homes value, click here.

If you are looking to list your home in Chapel Hill, Carrboro, Orange or Durham County North Carolina, call Team Jodi toll free at 888-TeamJodi (888-326-5634), email us at Jodi@TeamJodi.com or visit us at .

Why Is It A Great Time To Buy?

noreply@blogger.com (Team Jodi) — Fri, 12 Sep 2008 23:44:00 +0000

There are a number of reasons why it is a great time for first-time home buyers to jump in and buy this Fall, including:

The inventory is great and prices are very competitive as the market is stabilizing, thanks to the government takeover of Freddie Mac and Fannie Mae.
Interest rates have already dropped .5% are they are likely to decline further as Freddie and Fannie get government help.
The Federal Housing Administration recently boosted its loan limits. In Orange and Durham Counties, FHA provides mortgages up to $331,250. The great thing about FHA is the borrower only needs to put 3.5% down, and the down payment can be a gift from a family member. Under FHA guidelines the seller is able to pay up to 6% of the purchase price towards the buyers closing costs. FHA allows for people with less than perfect credit, often as low as a 560 credit score, to qualify for a home.
The new first time home buyer tax credit will shave $7,500 off a buyer's federal tax bill due April 15. Buyers who don't owe tax, will get the money as a refund.

The government's definition of a first-time buyer is anyone who hasn't owned a home in the last three years.

Are you looking for more information on Freddie Mac and Fannie Mae or real estate in general, if so please visit me at www.teamjodi.com.

Freddie Mac and Fannie Mae

noreply@blogger.com (Team Jodi) — Fri, 12 Sep 2008 23:41:00 +0000

I am sure you are hearing in the news about the Government stepping in to provide stability to Fannie Mae and Freddie Mac. I received the information below from Robbie Oakes, a lender with Corporate Investors in Chapel Hill. It is a great explanation of why this needed to happen.
I did want to let you know that there has been an immediate effect on mortgage rates. Today, they dropped about a .5 point and they could go lower. Today's rates are:

5.375 for 15-year fixed

5.625 for 30-year fixed

Please read below if you want a great explanation for why this needed to happen.

"Mortgage Bonds are soaring higher on yesterday's announcement that Fannie Mae and Freddie Mac will come under control of the government. This announcement came as the government felt both these institutions will no longer be able to meet their mission statement which is to provide liquidity, stability and affordability in the housing markets.

Fannie Mae and Freddie Mac both have issued many Bonds which over time mature, and Fannie and Freddie need to pay back the principal on the maturing Bonds. The way they raise capital to pay these maturing Bonds is to issue new Bonds. This happens every month. And as long as Fannie and Freddie can sell new Bonds this system works well. But the problems in the mortgage industry have reduced investor appetite to purchase these Bonds...and that's where the trouble begins. Without the ability to sell new Bonds, Fannie and Freddie are less able to meet the capital requirements to pay off the maturing Bonds. And that's the big fear. If Fannie and Freddie were to default and become insolvent, it would throw the beleaguered mortgage and housing markets even deeper into the abyss.

Additionally, the recent lack of appetite for Fannie Mae and Freddie Mac Bonds caused the two mortgage giants to have to do something to make their Bonds more attractive...so they offered their Bonds at higher yields to gain more investor interest. However, since they couldn't go back and raise rates on loans that had already been closed, it sucked even more profits out of Fannie and Freddie, reducing capital even further, and exacerbating the problem.

That's why the Treasury has stepped in and said that they will back the payments on these Bonds. This action has given investors a lot of confidence to step in and now buy Mortgage Bonds. Think about it. For a higher rate of return, investors can now buy Mortgage Bonds with the same guarantee as lower yielding Treasury Bonds. This is causing a nice rally in pricing this morning - which combined with the break above the 200-day Moving Average - leads to attractive rates."

Visit me at http://www.teamjodi.com/ to learn more about real estate topics in North Carolina.

Jodi Bakst Earns Designation as Short Sale Expert

noreply@blogger.com (Team Jodi) — Fri, 05 Sep 2008 20:33:00 +0000

I have been a Real Estate Broker for 11 years. As are you, I am very concerned about the mortgage crisis not only for its affect on the real estate business but more importantly for its affect on homeowners. The more important thing to understand is that not only are those with subprime loans affected, today we are seeing more and more defaults by homeowners with conventional, "A" paper loans.

Because of the magnitude of the problem, I am working toward gaining my designation as a Certified Distressed Property Expert (CDPE). My coursework will be completed and the designation earned by the end of October 2008. I am learning the tools, information and tactics to effectively help homeowners who are in financial distress. I will and can be an advocate to help homeowners find the best solution to whatever financial crisis they are facing. My goal is to be fully informed of the issues and know the detailed processes and procedures for working with and through the banks. Experts who understand this can close a short sale in a much quicker time frame (weeks or a few months rather than 6 or more months).

What is the Problem Anyway?

Today, more homeowners than imagined are in some sort of financial distress. Historically, at any given time, there are always a certain percentage of homeowners that can't pay their mortgage. In a healthy market, typically 1 to 3% of properties fall into this category. Today, this number is frighteningly higher; as many as 1 out of 25 homes are at some stage of the foreclosure process.

Not only have foreclosures been going up exponentially since 2005, so are defaults or missed payments before the foreclosure process begins. It is important to note that as part of this debacle, mortgages actually were being written and closed where homeowners could not even make the first payment. ationally, 1% of all mortgages (ARMs, non-ARMs, sub-prime and conventional) are in foreclosure and 6.35% are not making payments.

Right now, an estimated 1.15 million homeowners are at some stage of the foreclosure process, and 5.6 million are 30+ days late on their payments. This translates into almost 6.76 million homeowners being in some sort of financial distress. This number is huge given that the National Association of Realtors estimates that in 2008 approximately 5 million properties will sell in the U.S.

In a HousingWire article released September 2, 2008, there is grave concern since Option ARM loans will soon reset. The facts are:

$96 billion in Option Arms will reset by 2010;
90-day+ delinquencies, already ranging from 10-24% could more than double;
The potential payment increase on these loans will be 63%; and
Option ARM defaults are expected to spread into more expensive neighborhoods & higher priced homes.

In data released by HOPE NOW on August 28, 2008, it is clear that problems have spread to prime credit borrowers as well. Recently, prime foreclosure starts moved ahead of subprime foreclosure starts. In July 2008, foreclosures were initiated on 105,000 prime borrowers and 92,000 subprime borrowers. These starts on prime foreclosures are more than double the same time last year and are 10% higher than in June 2008. Subprime starts are up 22% over last year and 10% since June as well.

The goal in earning my designation as a Certified Distressed Property Expert is to help people find solutions to their financial problems well in advance of the foreclosure process starting. If a homeowner qualifies for a Short Sale, there are huge benefits to going that route -- most importantly little to no blemish on your credit report, you typically can negotiate the deficiency with the bank and today, if your home is a primary residence and less than $2 million, you do not have to pay tax on the deficiency.

If you want to learn more about Short Sales, contact Team Jodi at www.ShortSalesInNC.com.

Deal or No Deal?

noreply@blogger.com (Team Jodi) — Thu, 04 Sep 2008 22:29:00 +0000

When the real estate market was better, sellers usually planned on walking away from the sale with a nice profit that they could bank, spend, or more likely, put down on their next home. There have always been expenses connected with selling a home, but in these days when home prices are down, times on the market are up, and buyers are more prone to drive a hard bargain, sellers are much more attuned to what those costs are.

Though some buyers want a "fixer-upper", all buyers at least want to know what they're getting into. You, as a seller, don't want to be broadsided by an inspection report when an unknown problem surfaces. It is money well spent to have the home inspected for both physical problems and pests before putting it on the market. Then you can make the decision to at least fix the leaky faucets and disclose other issues. Offering your buyer a home warranty for a year might give you a competitive edge in this tough buyer's market.

In addition to necessary home repair, it is time and money well spent to clean the house (maybe even professionally), spruce up the yard, freshen up the paint, and maybe even replace carpeting. However, not all home renovations yield increased sales value, so it's best to check with a real estate agent or read up on what improvements are a good investment.

De-cluttering the home and arranging furniture and possessions in an inviting manner is so important that professional home staging is a booming enterprise today. In an era when the market is glutted with homes, a professionally staged one might be the one that sells more quickly.

Real Estate Commission is a big ticket item on the list of home sales costs as it ranges from 4-7%, with 5 to 6% being the norm. Even if you, as seller, negotiate a lower rate, the dollar figure of most real estate commissions is high enough to make many sellers consider For Sale by Owner or going with an internet realtor that offers a package of services for $995. Though the potential cost savings is attractive, real estate sales is time consuming work that often requires the professional touch of a licensed realtor. These days, the negotiation that realtors do between buyers and sellers is what reduces the number of days on the market and increases the selling price for a particular property.

Closing Costs, the fees for title transfers, county transfer taxes, escrow charges, and miscellaneous items, have always been the buyer's responsibility but have often been negotiated to be paid by the seller. In the current housing market, sellers are more often asked to absorb these costs.

Any property taxes due will be taken out at closing. For sellers who pay their taxes along with the mortgage, this is a non-issue, but taxes can reduce the profits for those who pay semi-annually or who are in arrears.

The old adage "you have spend money to make money" applies in home sales, especially in a tight market. Obviously, some costs like taxes and fees are non-negotiable, but as a seller, you can seek advice early in the process from a qualified real estate professional who can help you make the best choices for how to spend the other dollars that will buy you the most competitive advantage.