SarahGray Lamm ~ Chapel Hill / Carrboro / Durham Real Estate Blog ~ Agent Outlier: August 2009

Fearrington Village, as described by Southern Living magazine, - "a unique community located on farmland dating back to the 1700s, near Chapel Hill, North Carolina. "Fearrington Village blends romantic lodging, delectable dining, great shopping, a planned residential community, and glorious gardens in a rare combination that you'll be a hard-pressed to find anywhere else."

This one level, contemporary home is located within walking distance of the Fearrington Village Swim and Croquet Club and not much further to the village center. Located on a quiet cul de sac, the home is on a wooded lot and has many features which incorporate the quiet, wooded serenity into your daily life,  including a private bricked patio and screened porch.

A gently sloped ramp is thoughtfully integrated into the exterior design to allow easy access from the level drive and two car Garage to the home's front door. Inside, the open floorplan and hardwood flooring make it an inviting home for those with mobility issues.

Click the Camera icons on the floorplan below to see more photos!

Shocking...or not. Personally, the #1 BEST find for me in this brave new world of social media, is a blog post about real estate written by, gulp, A MEMBER OF THE PUBLIC! A real life, flesh and blood, card-carrying member of my biggest TARGET MARKET...people who want to buy a house!

I have an RSS feed chock-a-block full of feeds from "experts", "advisors", "designers" and practitioners of every branch and offshoot of real estate, from all over the country and from every possible angle. I learn every day from them and make my own decisions about how I want to apply their thoughts and strategies to my own business. But for pure, unadulterated "THIS IS WHAT I'M LOOKING FOR" stuff, how can you possibly beat stumbling upon a post written by a homebuyer about the process they are currently engaged in! A "real person" out there who has become some lucky agents client and then blogs about it!

I don't care that she isn't MY client or that this isn't MY market (although it is my state.) I just LOVE reading about how she sees and feels the process...what makes her swoon and what creeps her out. I've never read Molly's blog before and only through the divine synergy of RSS feeds and Google Alert did I find it but here it is...my pea sized golden nugget in the murky, cold and gray running water of my virtual sluice of real estate related information...

Just a sample to pique your interest...

"5. I'm starting to believe that "For Sale By Owner" means "Realtors wouldn't even take the listing because the Owner believes that it's worth twice what the market data says." I'm amazed at what some of them think their houses are worth."

 Click link to read Molly's Blog~your mom goes to college~ as she shares her recent revelations about the real estate world and they are priceless!

Oh, and if you have her dream home listed you might want to call her agent!

Beautiful Townhome ~ Near UNC Park & Ride ~ SOLD! The Seller is Moving Onward and Upward!

This seller doesn't want the best buying opportunity in decades to pass her by either so she is offering her beautiful townhome at a steal in order to make this a WIN WIN for both of you!

If you have been waiting to find the right place before you check out your eligibility for the Federal $8000 Tax Credit,  CHECK IT OUT NOW! This could the home you have been waiting for!
You must close before December 1, 2009 to get the tax credit if you are eligible and typical closings take about 45 days now. Don't waste another minute!

Click the Camera icons on the floorplan below to see more photos!

Hurricane Bill just skirted our coastline and there will be more hurricanes to come. North Carolina residents know that this time of year means firing up the generator to make sure it works and laying in the list of supplies on the Hurricane Preparedness Checklist. As a professional Realtor I owe it to my clients to tick the extra boxes that my experience has put on my Closing Preparedness Checklist!

Consider this scenario:

Closing is scheduled for 9 a.m. on Friday morning. The seller has moved out and the buyer has the moving truck ready to head to the new house as soon as he has the keys in hand. The seller informs his insurance company that he will no longer own the home as of Friday and cancels the homeowners’ policy as of that date. The buyer has his insurance in place, set to insure the home as of the same date. But at 9 a.m. Friday the loan docs aren’t ready. The attorney hasn’t gotten the package from the lender and has been informed that it is “on the way”. Closing time is delayed until 4 p.m. The buyer is nervous and had planned to stay in the house that night, getting settled over the weekend before starting a new job on Monday. No keys, no occupancy. Agents are scrambling to accommodate. Can the buyer move in early? Will the seller allow a rent back if closing doesn’t take place until Monday? (Did I mention there is a hurricane off the coast?)

The loan docs arrive! Closing will proceed at 4 p.m. All is well! Not so fast. The Orange County Register of Deeds closes at 4:30 p.m. and is a 20 minute drive from the attorney’s office. The attorney informs you that there is no way the deed will be recorded on Friday. The paralegal will do it first thing Monday morning. At least the buyer will have the keys and everything can get on as planned. The buyer rushes to get things moved in…hurricanes at the coast mean rain inland. There’s just one little thing about hurricanes…they don’t always listen to the weatherman. By Saturday the hurricane has tracked west…it’s heading toward the Triangle. Nothing like 60 mile an hour gusting winds to mess up a moving weekend.

By Saturday evening there are trees down all over the neighborhood and one has managed to puncture the roof in its fall. Water is quickly pooling on the Living Room ceiling as it drips through the attic. Not to worry. The buyer has insurance! Or does he?

The deed has not yet been recorded meaning the buyers insurance may not be in force under the presumption that you cannot insure what you do not own. The seller canceled his insurance as of Friday and the damage occurred on Saturday. I think you can see where this is going. Suffice it to say that at the minimum, the insurance companies will be talking and there will be some anxious days ahead for both buyer and seller.

In North Carolina you do not actually “own” the property you just closed on until it is recorded with the Register of Deeds in the county where the home is located. This actually came about because of a hurricane! After Hurricane Fran in 1996 there were, what can only be described as, “Insurance Wars.” As a result, our standard purchase contract in NC was amended to specifically define “closing” as the date and time of recordation of deed.

My job is to foresee possibilities like this and do my utmost to avoid them! I ensure that the buyer and his attorney know my concern and make all efforts to schedule closing at a time when I can be reasonably sure that the deed will be recorded. I discuss with the seller why I feel it is important that they do not cancel their homeowners’ policy until I call them and tell them the deed has been recorded. I cannot predict or promise any outcome but I sure can make sure my client knows what might happen and is prepared as well as possible for the unpredictable.

I’m quite sure there are hundreds of closings that occur every day in North Carolina and never run into a “worst case” scenario like I have just described. As a buyer or seller it is ultimately your call how much risk you wish to absorb. But I also know way too many stories about what happens when folks aren’t prepared. Replace “hurricane” with “fire” or “burst water pipe” and you’ll begin to see what I mean.

Do you need an experienced Realtor to help you buy or sell your home? Maybe not…or maybe the peace of mind is worth it to you!

I love August! I get to hear from almost every one of my newest home owners! This is the month that North Carolina tax bills arrive. I should be getting mine soon judging from the emails in my inbox and the text messages on my blackberry.

There are many reasons why first-timers are some of my favorite clients, not the least of which is that you are so excited about your newest venture in life – being a home owner. But I’m sure you know that enthusiasm sometimes overshadows the not so exciting information we ask you to absorb during the closing process. 'How to pay a tax bill' seems to be at the bottom of any list of to-dos for a newbie. I get that. But by August, tax bills are at the top of that list. Nothing better than a bill from the state for thousands of dollars to get your attention.

Here’s a little rewind for those of you who may have missed this little tidbit at the closing table.

“Sometime in August you will receive a bill for your property taxes from your county in North Carolina. Hang on to it until you make your mortgage payment for September. Slip that bill into the envelope with your monthly payment and send it right on over to your lender. They will pay the bill.

When we went to closing the lender escrowed the portion of the taxes paid by the seller for the time they lived in the house. You still have September thru December to make your mortgage payments and a portion of that is being escrowed to make up the portion of the taxes you owe for the time you have lived there. The lender will send a check to your county in December – they just don’t know exactly how much or where to send it until you give them the bill!”

I know, I know, I could call you all in July and remind you but how much fun would that be? Today I got a great email from a young client who told me that when the bill for thousands of $$ arrived yesterday her husband remembered something I’d told them about it. (points) He checked his iPhone and there it was “Don’t Pay The Property Tax Bill.” She figured there was more to the story. She also invited me over to celebrate their little ones birthday on Saturday. (score!)

Many of you could be my kids and sometimes there is a perverse pleasure in the moment you get a panic call from a kid and you get to solve the problem with a simple solution and your kid is forever grateful. Don’t know what I mean? Ask your mom.

So you would love to live in Pittsboro, NC and take advantage of fantastic buys on homes there and a lower tax rate? But you work in Chapel Hill, NC or at UNC and it would just be so much more convenient to live nearby if gas prices keep going up ( and I think we know they will.) Then there is the age old problem of parking your car in Chapel Hill. When will THAT ever get easier?! You are in luck!

Chapel Hill Transit has just announced that they will begin weekday bus service from downtown Pittsboro to Chapel Hill! Starting August 24, 2009 the new PX route will begin at the Historic Chatham County Courthouse at the circle in Pittsboro and continue up to the Lowe's Home Improvement store at 121 Lowes Drive. From there up to Fearrington Village and on to Chapel Hill where it will stop at the UNC Parking Deck on Manning Drive, the Student Union and then the State Employees Credit Union on Pittsboro St. From there it's an easy connection to all points Chapel Hill on the regular bus routes. The longest route is projected to take less than 45 minutes and if you buy a pass, you will be GUARANTEED a free ride to your home or vehicle in the event of an emergency during the hours of 8:30 am to 4:00 pm on operational days.

Passes are $65 and can be purchased at Chapel Hill Town Hall, Pittsboro Town Hall and the Piggly-Wiggly in Pittsboro starting the 31st of August...that's because the route is FREE until then!

So now that you know you can make the trip up and down 15-501 everyday with a cup of coffee and your iPhone or Kindle, maybe you want to talk about buying a home in Pittsboro? Just a thought...

Let’s just say you’ve been sitting around thinking now might be a good time to find a really great house so you have the perfect little corner to put your Christmas tree in this year. Or maybe Halloween is your thing and answering your own door all dressed up to scare small children is a bigger incentive. (Hey, it’s your fun we’re talking about here, not mine.) Maybe 2009 is the year you offered to host the entire family for a good old fashioned Thanksgiving feast. The only thing you know for sure is you want a Chapel Hill or Carrboro address!

We don’t have a lot of time left to get you hooked up. If we start this weekend, just about the time we get you to closing you’ll be buying the pumpkin for the front porch! But what do you need to get started? Let’s assume for the sake of argument that you:

A) Have a job.

B) You have some savings.

And C) you have a credit score above 720.

Sweet! If you qualify for the $8,000 First Time Homebuyers Credit which will expire on Nov.30, 2009. Even sweeter. (Now don’t go assuming this credit is only available if you have NEVER owned a home before. Not true. Read the link for more information.)

If you meet the above criteria and you have between $4375 and $11,712 in savings you need to keep reading because you may be on your way to happy homeownership! (Just so you know – I picked these numbers because that gives you the 3.5% required down payment for an FHA loan which cannot exceed $334,650 in the Carrboro/Chapel Hill market and as of today, the least expensive stand alone home available here is on the market for $125,000.

Here’s what we can look at which meets the following general criteria:

Chapel Hill or Carrboro address / Available as of 06AUG09 / Detached (not a townhome or condo)

~Between $125,000 and $175,000, requiring a down payment of $4375 to $6125, there are 11 properties ranging from 795 sq.ft. to 1943 sq. ft. 9 of them have had price reductions. Most (but not all) need some TLC.

~Between $179,000 and $200,000, requiring a down payment of $6265 to $7000, there are 13 properties ranging from 796 sq. ft. to 1525 sq. ft. 2 of them have price reductions. Most of them are sweet little homes, not a fixer-upper among them!

~Between $205,000 and $235,000, requiring a down payment of $7175 to $8225, there are 20 properties ranging from 1300 sq. ft. to 2205 sq. ft. (There is one at 832 sq. ft. but that skews the picture.) There are 9 which have had price reductions. Most of these are one story homes, a couple are brand spankin’ new and a couple have pretty large lots!

~Between $239000 and $260000, requiring a down payment of $8365 to $9100, there are 13 properties ranging from 1262 sq. ft to 2200 sq. ft. 4 have had price reductions. There is some really sweet stuff in this group! More of them are two stories, one is a fixer-upper and one is a 2 FOR 1 deal!

~Between $262000 and$281000, requiring a down payment of $9170 to $9835, there are 18 properties ranging from 1120 sq. ft to 2496 sq. ft. 11 have had price reductions. Now we’re talking some really great neighborhoods and this includes one pre-foreclosure.

~Between $285000 and $319000, requiring a down payment of $9975 and $11165, there are 21 properties ranging from 1430 sq. ft to 3030 sq. ft. 11 have had price reductions. There are several contemporaries and a few that will get you into a much more expensive neighborhood. There’s even a new construction pre-sale! In this range you will be getting upgrades…granite counters are common.

~Between $323000 and $345000 (gotta leave a little wiggle room at the top end and still try to get under the FHA maximum) requiring a down payment of $11305 to $11712, there are 24 properties ranging from 1350 sq. ft. to 3208 sq. ft. 12 have had price reductions. Now we are talkin’ great neighborhoods, some new construction options, some large acreage and loads of upgrades!

Anything feel do-able? Don’t forget that the $8000 tax credit, if you qualify, can be had pretty close to immediately if you want to amend your 2008 tax return. This might mean you have a parent ready to gift you the little extra you need to move up a notch and you can pay them back before too long! Keep in mind this does NOT include townhomes or condos and if Southwest Durham is an option, the world is your oyster!

What next?!?!

CALL ME, TEXT ME, FACEBOOK ME, whatever works for you…I’m sitting here with my calendar ready to get you started! Oh, my phone is ringing…gotta go...it might be you….

Say “leverage” these days and who doesn’t picture Wall Street, failed banks or greedy CEOs?  Seems like the folks who got all excited when they heard the definition of the word a few years back forgot to read the caveat in the brackets:

FINANCIAL LEVERAGE - investing with borrowed money as a way to amplify potential gains (at the risk of greater losses)

But should we remove the word from our vocabularies because a few bad apples have co-opted it? I’ve always like the word, personally. When I was a kid I learned that ‘leverage’ was the big advantage you had when trying to move something huge by simply being in position to use a lever. When I was in college I was pleased to realize that ‘leverage’ had intellectual value as well; how much more we could accomplish in a study group than trying to cram all alone into the night. When I began volunteering in my community I learned that altruism can be leveraged. Just because doing something for someone else makes you, personally, feel good doesn’t mean you can’t do it in such a way as to influence others to give more of themselves…all to the benefit of your recipient. Once I was out working in my chosen profession as a residential real estate broker, I learned quickly that in a negotiation, leverage is a measure of which side, at any given moment, has a greater ability to influence the other side. What better value for my clients…I wanted to BE that word.

And what a great word it is…with lots of nuanced meanings, most good, but all applicable to real estate.

Normative leverage is the application of general norms or the other party's standards and norms to advance one's own arguments for one's own good. There is huge advantage in having a complete understanding of the terms, conditions and applications of a real estate contract and all the ancillary addenda as well as being versed in the ‘standard practice’ for a specific area.

Positive leverage is a negotiator's ability to provide things that his opponent wants. Understanding that there are real people on both sides of a real estate contract and knowing how to present options in such a way as to provide a winning experience for each side is a skill I have knowingly cultivated and employ always on behalf of my clients.

Buyer leverage is the amount of bargaining power that buyers have when purchasing goods and services. I haven’t met a buyer lately who didn’t know s/he had this kind of leverage…but knowing exactly how and when to use it is my specialty.

Negative leverage is a negotiator's ability to make his opponent suffer. I wish I could say I never saw this kind of leverage in real estate transactions but it takes all kinds to make a world…knowing how to AVOID falling victim to this kind of manipulation is equally important for my clients. My experience allows me to serve as a buffer against the problems caused by this kind of leverage.

Leverage, for me, is any influence which is compounded or used to gain an advantage. Unfortunately, there are a few folks in this world who seem to forget that just because you CAN doesn’t mean you SHOULD. Operating with integrity is a decision.

I have spent 30 years doing what I love to do…help buyers and sellers accomplish their goals and the combined experience of all that work gives me a huge amount of leverage which I exert on behalf of my clients. When you decide to position yourself to make one of the largest financial decisions that you may ever make in your life, why would you choose NOT to leverage my knowledge and experience in your own best interest?

Some months ago there were folks in the Triangle talking about how the Case-Schiller Index DID NOT APPLY in our housing market. I found it hard to believe then and still do, that anyone would single out a specific statistic and say it "doesn't apply." Statistics, especially housing and economic statistics, are always predicated on looking in a rear view mirror and just because you aren't squarely in that rear view mirror doesn't mean you aren't in the dust cloud being kicked up as you fly down the road! We are fortunate to be in the Triangle of North Carolina but I think we know by now that we were far from immune to the economic upheaval in our country. Personally, I value the considered opinions of intelligent folks like Robert Schiller and was pleased to hear this interview with him about where he thinks we are today. Thought you might enjoy it too!