Walkertown Short Sale with Wraparound Porch on 5 Acres

Winston-Salem Makes Kiplinger’s “Cheapest Cities” List

Winston-Salem is making news again.  Personal Finance magazine, Kiplinger’s, included our city in their recent “Top 10 Cheapest U.S. Cities” list.  Winston-Salem came in at number ten on the list with Harlingen, Texas being number one.  The primary reason Winston-Salem made the list was for affordable housing.  Kipplinger has the average home price at $199,118 (not sure how they came up with that price…according to the Triad MLS it’s $144,923 and median price is $119,000) and the average apartment at $590 per month.

The list was compiled by using a cost of living index that measures relative price levels for housing, utilities, transportation, grocery items, health care, and miscellaneous goods and services.  This cost of living index uses 100 as the national average.  The Winston-Salem Cost of Living Indes was listed at 87.5.   You can see the complete list at the link below.

Kiplinger’s Cheapest Cities Top 10 – Winston-Salem, NC

 Relocating to Winston-Salem, NC?

If you are looking for a great city to relocate to, then look no further than Winston-Salem, NC.  We have many amenities of much larger cities, but a smaller town appeal.  You can check out local homes for sale right here on our site.  If you’re curious about what type of home you can buy here, look up near the top right and enter your price range or click the following link Winston-Salem Homes for sale on the MLS.  If you want to speed up your home search, sign up for our “Homes by Email VIP Buyer” service.  I have lived in this area for over 35 years and would be considered by most a “local expert”.  I promise to help you find the best deal and always have your best interest in mind.  You can always call or text me at 336.287.4423.  I look forward to helping you!

Appraisers Determine a Home’s Market Value

Real Estate Appraisers Determine a Home’s Value

When you are buying a home, there are several people involved to help you.  Of course, there is the REALTOR® who helps you find the home and negotiates a selling price.  You depend on your real estate agent to help you get the best deal possible and make sure that you are not paying too much for your dream house.  Most home buyers also have a mortgage loan officer to help them obtain the mortgage necessary to buy the home.

Do I Need a Real Estate Appraisal to Buy a Home?

If you are purchasing real estate using a mortgage, yes, you will need an appraisal.  Once, the bank has approved you financially to purchase a home, and your Offer to Purchase has been accepted and signed, the bank will order an appraisal on the home or property.  The bank does this to determine if the home is worth what you are paying for it.   Obviously, this is important to the bank, because they want to make sure the home (their security for your mortgage) will sell at least for the amount they are loaning you.

Who Are Real Estate Appraisers?

Appraisers are real estate professionals who must be educated and licensed to practice.  In North Carolina, it is a challenging process to become a certified licensed appraiser.  There two different certifications: General (Commercial) and Residential.  Since we are discussing purchasing a residential property, we will focus on the residential certification.  First of all, someone who wants to become an appraiser must apply to their state’s Appraisal Board by paying an application fee and passing a character background check.  Once those qualifications are met, they must take four classes (90 hours) and pass the exam for each.  After passing the four classes, they are able to register with their state as a “registered appraiser trainee.”  At this point, they must work with a Certified Residential or Certified General Appraiser who will supervise their work.  North Carolina requires the trainee to log 2500 experience hours with a supervising appraiser.  The Appraiser Trainee must also take and pass an additional six classes (110 hours) before they can sit for the state exam.  Once all of these requirements have been met, and they have passed the state exam, the trainee becomes a Certified Residential Appraiser.  A bank will only consider an appraisal by someone who is state certified.  To find out more about becoming a real estate appraiser in NC, visit the North Carolina Appraisal Board.

How Do Residential Appraisers Determine Market Value?

An important fact to remember is appraisers should be objective; someone who has no financial or other connection to any person involved in the transaction.  By being objective, the appraiser can determine what the market is telling them about the property.  Appraisers use three approaches to determine value:  Income, Cost, and Sales Comparison.  For residential real property market value, Sales Comparison and Cost are both used with Sales Comparison being the preferred.  The Cost Approach is most useful for new properties, where the costs to build are known. The appraiser estimates how much it would cost to replace the structure if it were destroyed.  For the Sales Comparison, an appraiser will look at the subject (the home you are buying) property’s physical characteristics:  location, size, features, etc.  Then, they will use public records and the Multiple Listing Service (where most residential properties are listed for sale) to find comparable properties (comps) that have sold within the last six months.  Generally, a bank will require the appraiser to use at least three comparable sales in his/her appraisal report.  The appraiser must consider the physical properties of each comparable and make adjustments (plus or minus) to bring the properties to be more like the subject.  Once the appraiser has done their analysis, he will reconcile a final value.  Appraisals are “opinions of value”, so appraisal market values may vary between appraisers.  After the bank’s mortgage underwriter has reviewed the appraisal, they will decide if the mortgage is a good investment for them or not.  Usually, the appraisal is one of the last things completed before your mortgage lender will give you final approval for your loan.

Is an Appraisal the Same Thing as a Comparative Market Analysis (CMA)?

REALTORS® use CMA’s to help home sellers set an asking sales price that is realistic. Experienced real estate agents many times come very close to an appraisal market value with their CMA’s, but a real estate appraiser’s report is much more detailed.  The appraisal report is the only valuation report a bank will consider when deciding whether or not to lend the money.

If I’m Getting an Appraisal, Do I Need a Home Inspection?

When purchasing a home, most inspections are optional, where the appraisal will be required as mentioned earlier.  A Home Inspection and an Appraisal are not the same thing, so don’t be confused.  I always recommend a home inspection, because it is a more detailed report of the physical condition of the property.  The appraisal might mention the condition of the home, but it is really about the market value of the home.

If I’m Selling My Home, Should I Get an Appraisal?

I’ve had sellers ask me if they should get an appraisal before selling their home.  As far as that goes, it’s not necessary, but it is a good idea.  An appraisal can validate your list price, and give the buyer peace of mind that your home is worth what you’re asking for it.  However, it cannot be used as the appraisal of record  for the buyer’s mortgage.

Real Estate Appraisers are a very important piece of the real estate market.  Now that you understand a little more who real estate appraisers are and what they do, you are more informed and can make better decisions regarding any real estate transaction.

Great Home Near Reagan High School

Recently reduced!  Fantastic newer home (2008) in REAGAN SCHOOL DISTRICT. THREE BEDROOMS, TWO & A HALF BATHS w/ a BONUS ROOM on HALF ACRE LOT. OPEN FLOOR PLAN with MASTER BEDROOM on MAIN LEVEL. HARDWOOD FLOORS on MAIN LEVEL & FIREPLACE in LIVING ROOM. GRANITE COUNTER TOPS & TILE BACK SPLASH in KITCHEN. KITCHEN APPLIANCES stay. MASTER BATH has JETTED TUB, SEPARATE SHOWER. BRUSHED BRONZE FIXTURES throughout. Make this lovely home yours today!  Call or text Tony @ 336.287.4423.

Due Diligence Period and Fee Explained on the NC Offer to Purchase

The North Carolina Offer to Purchase Real Estate form and process changed a couple of years ago.  A Due Diligence clause was added which includes a Due Diligence Period and Fee. Since this time, buyers and sellers have wondered what Due Diligence is when making or receiving an offer for North Carolina Real Estate.  Let me explain it to you in a nutshell from the REALTOR® point of view.  Keep in mind that I am not an attorney, and you should always consult legal council if you do not understand a contract.

What is the Due Diligence Period?

Due Diligence Period is the initial period after a buyer and seller have agreed to a contract price and the Offer to Purchase form has been signed. It’s typically about 25 days long (usually depending on the buyer’s lender) and several things need to happen during this time: any property inspections like home inspection, pest inspection, survey, septic inspection, etc.; appraisal and loan commitment from your lender; and repair negotiations (if any, from inspection reports).

What is the difference in the Due Diligence Fee and Earnest Money Deposit?

In the Offer to Purchase contract, there are also options for a Due Diligence Fee and Earnest Money Deposit (EMD).   These are both paid by the buyer.  The Due Diligence Fee is paid directly to the seller and is non-refundable in exchange for taking his/her property off the market for the buyer to do their investigative “due diligence”.  The Earnest Money Deposit is a “good faith” deposit that the buyer is going to close on the property.

The amount of the Due Diligence (DD) Fee amount ranges depending on the price of the property.  I have seen DD fees ranging from $0 (strongly weighted buyer’s market) to $5000 for high end luxury homes.  Typically, for the average sale price home of $150,000, it is $100.  Earnest Money Deposits for average sale price homes normally range from $500 to $5000.   Looking at these ranges, you can see that DD Fees and EMD’s are negotiable.  As stated earlier, the DD Fee goes directly to the seller, which they keep if the buyer backs out during the Due Diligence period.  If the buyer closes on the property the DD fee and the Earnest Money Deposit are both applied towards the purchase price.

After the Due Diligence period is up, the Earnest Money Deposit (EMD) is locked in. That means the seller would retain the EMD if anything fell through and the buyer couldn’t close at that point. Up to the end of the Due Diligence Period, the buyer can back out for any reason and get their EMD back.  If there is a breach of contract by the seller, the buyer would receive both fees back.

For example, let’s say a buyer and seller agree to $100,000 for the property. In the offer, 25 days is negotiated for the Due Diligence Period and the buyer agrees to close in 30 days.  The buyer also agrees to pay a $100 DD fee with $1000 Earnest Money Deposit. When the buyer closes, they would get credit for $1100 towards the purchase price.

After reading this post, I hope the Due Diligence Fee, Due Diligence Period and Earnest Money Deposit all make more sense to you now.  If you have additional questions don’t hesitate to contact me directly by phone, text, email or your comments below.

Clemmons, NC Home for Sale – Moravian Heights Neighborhood

THIS IS A SHORT SALE, AND IS SUBJECT TO LENDER FINAL APPROVAL.  Recently reduced to $110,000.  Location, location, location!  This charming home is a two-story in the Moravian Heights neighborhood.  Some of the features include:  CATHEDRAL CEILING IN THE LIVING ROOM, FIREPLACE, WOOD FLOORS, TILE IN THE KITCHEN, DINING ROOM, FRONT PORCH & DECK w/ PERGOLA.  You’ll love living in Clemmons with the convenience of Hwy 421 and I-40 and great schools like West Forsyth High School and Meadowlark Middle School.  Make this home yours today!  Call or text Tony at 336.287.4423.

Search more Clemmons Homes for Sale at the following link. Search Clemmons, NC MLS

Clemmons Real Estate Market Moving Up

The Clemmons, NC residential real estate market (zip code 27012) has been slightly improving over the last year. During 2011, there were 699 new listings in the 27012 zip code and 318 sales. The range of SFR’s sold was $27,581 to $665,000 with an average of $223,378. In 2012, there were 638 new listings and 370 sales. The range of sales was $22,500 to $870,800 with an average of $212,608. These statistics show an overall improvement even though the average price per sale decreased.

New listings (supply indicator) decreased by 8.7% in 2012, and sold units (demand indicator) increased by 18.6% over 2011 sales. The rate of increase in new listings is less than the increase in the number of units sold and serves to reduce the inventory level of unsold homes. The Triad MLS showed a total of 227 active listings in the 27012 zip code as of December 31, 2012. Sales in 2012 averaged 31 sales per month. With 227 active listings and 31 sales per month, the inventory level was 7.3 months. By contrast, at the end of 2011 there were 246 listings with an average of 26 sales per month. This left an inventory level of 9.5 months.  Six months of inventory is considered a healthy market, so the Clemmons market is headed in the right direction.

An important indicator of market strength is the “percentage of sales to number of new listings”. This ratio rose to 58% in 2012 up from 46% in 2011.  Take note, however, that the “percentage of sales to number of new listings” ratio remains below historical levels and continues to indicate a weaker than average market with longer marketing periods.   and a potential for further price reductions.

Overall, the Clemmons real estate market is a bit stronger than the Forsyth County market and surrounding areas.  The Triad MLS shows a total of 4,306 active listings in Forsyth, Davie, Davidson, Stokes, and Yadkin counties as of 2/10/12.   Sales in 2012 averaged 457/month. With 4,306 active listings and a monthly sales rate of 457 units, the inventory level for February 2013 equates to 9.4 months. By contrast, the inventory level was 10.1 months in the Forsyth County area for February 2012 and 12.4 months in February 2011.

I hope you find this post helpful, and as always, don’t hesitate to contact me if you have any questions regarding the sell of your current home.

Moravian Traditions on Display at Salem Christmas

photo courtesy of carolinaconnoisseur.com

Old Salem is one of Winston-Salem’s most popular attractions, and is one of finest living history displays in the country. There are over 100 restored buildings in Old Salem which makes this historic district the largest dating back to the colonial era in the United States.

The community was settled by the Moravians from Germany in the mid-1700′s on the 100,000-acre Wachovia Tract in 1753.  They were a Protestant sect that had been under persecution and were seeking refuge.  Believing they had found a peaceful new home, they named their new town Salem, a word meaning peace.  [Visit www.moravian.org for more information on the history and customs of the Moravians]

Many of the historical buildings are open to the public, including an apothecary (a historical name for a medical professional who formulates and dispenses materia medica to physicians, surgeons and patients), a shoemaker and the oldest authentic working gunsmith’s shop in the nation.  Costumed interpreters recreate life in the colonial village.  Visitors can tour the historic district in horse-drawn wagons and try some delicious Moravian chicken pie and other traditional recipes at the Old Salem Tavern.

During the Christmas season, a visit to Old Salem will take you back to a more simple and less stressful time, when friends, family and faith were most important.  Doors, lamp posts and fence posts are decorated with traditional wreaths, and winter greenery.  You may here carolers singing Christmas carols or get a whiff of Moravian cookies, lovefeast buns, or sugar cake coming from the bakery to put you in the Holiday spirit.

Multi-pointed Moravian Advent star ornaments are very popular and created by local village craftsmen. You may also find angels and other figurines made by the Old Salem tin-smiths.

 Other traditional Moravian holiday decorations include wooden pyramids adorned with candles, greenery, fresh fruit, and Bible verses; decorated candles; paper Nativity scenes; and small trees hung with paper roses, apples, and ornamental cookies. Wreaths and garlands often incorporate apples or other fruit.

There are several events at Old Salem during the Christmas season.  There is an Open House in November, a Peter & The Wolf Concert, Christmas Candlelight Tours, Saturdays with Saint Nicholas, Candle Tea at the Single Brothers House, Christmas Love Feast at St. Phillips (the oldest African American church in North Carolina),  and Salem Christmas, which is an annual celebration of Moravian traditions throughout the Historic Town of Salem.  Visit Old Salem’s Holiday Site to learn more.

Design A Room Online with a Few Simple Steps

Have you been considering remodeling a room recently to help your home sell? Or maybe you’ve been in your home for awhile and just need a change. Either way, if you’re consider a remodeling job, you’ve probably been trying to decide what colors, floors and products might look best. MyMove.com has a nice virtual design tool that you can view what a potential remodel might look like. It gives you three simple steps to select a room/exterior, then select from a large variety of colors & floor coverings, and then share your design by email or across your social networks. Check it out at the link below.

Virtual Design A Room Online Tool

Short Sale is an Alternative to Foreclosure

The housing market is starting to rebound in 2012, however there are still many distressed properties in our local housing inventory.  Many of those distressed properties are foreclosures, and in our current economy, there are still lots of homeowners who are  in danger of losing their home to foreclosure.  A short sale is an alternative for homeowners to avoid foreclosure in Winston-Salem, Clemmons, Lewisville, NC as well as other areas around the country.

What is a Short Sale?

There are basically three components to a short sale on a home.

1. A short sale happens in real estate when a homeowner has had a financial hardship.
2. The homeowner can’t make their payments on time and are behind on their mortgage with late payments.
3. The bank who holds the mortgage is willing to take less on the property than what is owed.

A short sale is a much better option than letting your home go into foreclosure as foreclosures are like a “credit atomic bomb”.  A foreclosure can take several years to rebuild your credit where with a short sale, you might be able to buy another home in as little as two years.  A short sale allows a seller to sell your home below market value for less than you owe on your mortgage.

How Does a Short Sale Work?

When you sell your home by “short sale”, most banks require you to list your home with a REALTOR®.  You’re probably thinking, “but I can’t afford to make my house payment, much less pay a REALTOR’s® commission.”  There’s no need to worry, because when you do a short sale, your lender will take care of the commission at closing.

You might also think that you need to do some repairs before you list your home.  Again, don’t worry about any of that.  Sometimes, your short sale has a better chance of approval if the condition is not as good.  Your agent should even take pictures of those items in need of repair to show the bank.

If you are behind on your house payments, and don’t want to keep your home, then don’t wait around.  Hire a real estate professional right away to help you through the short sale process.

Short Sale Package

After you have decided to short sale your house, your real estate agent will need to submit the short sale package to your mortgage lender.  Each bank may require a few different forms, but here are the basic items you will need on most every short sale.  These items should be sent in right away and as complete as possible.  Your REALTOR® will help walk you through the short sale, so don’t get overwhelmed.

• Third Party Borrower Authorization
• Hardship Letter
• Short Sale Listing Agreement
• Personal Financial Statement
• Bank Statements
• Pay Stubs
• Tax Returns

Third Party Borrower Authorization

Third Party Borrower Authorization is a letter given to the bank that allows them to speak with your real estate agent about your mortgage.

Hardship Letter

You’ve told your mortgage lender that you can’t afford to pay your mortgage.  The hardship letter gives you an opportunity to explain what has happened.  Have you lost your job?  Do you have an illness?  Are you going through a divorce?  There are many different reasons that homeowners go through financial hardship, so be honest.

Short Sale Listing Agreement

The short sale listing agreement is the agreement between you and your REALTOR® to list your home for sale on the local real estate market.  Once it is listed, your agent will add it to the MLS (Multiple Listing Service), so other REALTORS® know it’s for sale.  The MLS will give your home exposure to more buyers who are looking to buy a home in your area.  The listing agreement is something you would do whether you were doing a short sale on your house or not, but the bank wants a copy of the agreement.

Personal Financial Statement, Bank Statements, Pay Stubs, and Tax Returns

Your lender will require you to send them personal information regarding your income and monthly expenses.  The bank may take as much as a $100k loss, so they will ask you to verify your financial hardship through several documents including a personal financial statement, bank statements, pay stubs and tax returns.

You can give the bank your personal financial statement on a form they provide that shows your income, assets, and monthly expenses to verify you can’t afford to pay your mortgage.  They will also ask for at least two months statements of any bank account you have, two pay stubs, and the last two years of personal tax returns (and business returns if you are self-employed).

Offer to Purchase Your Short Sale Home

Once your REALTOR® receives an Offer to Purchase, you will need to sign it, as if you have accepted it,  just like any other offer.  Your agent will submit  it to the bank for final approval along with the mortgage pre-qualification letter from the buyer.  After your lender receives the offer, they will start their review process of the short sale.

During the review process the bank will order a BPO (broker price opinion) and/or an appraisal to get an estimate of value of your home.  Once that value is received, they will generally approve 80% of the value for a short sale.  This is just a general rule of thumb and will vary by bank and by each individual short sale.

Steps to a Short Sale

In our current 2012 housing market, banks are realizing it makes more sense to move forward with a short sale as opposed to foreclosing on a home.  Their costs are lower, and the time it takes from start to finish is shorter.    So, in summary, here are the steps to doing a short sale on your home.

1. List your home with a REALTOR® who is experienced with short sales.
2. Your agent will submit your Short Sale Package to the bank.
3. Set the list price competitively, but not too low.
4. Make price adjustments recommended by your real estate agent if you aren’t getting showings or if you haven’t gotten an offer after three to four weeks.
5. Allow showings at all times regardless of the condition.
6. Stay in contact with your mortgage lender.  Answer their phone calls, return documents in a timely manner.
7. Get an Offer to Purchase Contract and submit it to the bank.
8. Wait on the short sale approval (this could be as short as a few weeks or could take as long 6 months).
9. Go to closing/escrow (this is where the home changes hand to the buyer).

Winston-Salem, Clemmons, Lewisville, NC Short Sale Help

If you are facing foreclosure and need to do a short sale on your home in the Winston-Salem, Clemmons, Lewisville, NC area, I am here to help you.  I have successfully completed a number of short sales, so I know what the banks are looking for.  I have also taken the Certified Default Advocacy Training (CDAT) to gain more knowledge in helping sellers through short sales.  I am empathetic and ready to help anyone who wants a short sale specialist with heart and professionalism.   Don’t hesitate to contact me at 336.287.4423 or fill out the form below.