Don’t think all Chapel Hill seller’s are desperate

I am getting lots of inquiries on my listings recently and many of the callers are asking, “is this a foreclosure or is the seller in trouble”?  In our market, very few sellers are desperate.  More importantly, sellers are aware that Spring will bring a group of buyers who are qualified, ready and eager to purchase a home.

I am not saying that you can’t get a good deal on a home this year.  What I am suggesting is that a “good deal” is up for interpretation.  At this time of year, most sellers will wait patiently for a fair offer.  We typically don’t see sellers getting anxious until mid to late summer.  Most sellers (unless they are for sale by owner) will have had the benefit of examining the comparable recent sales and will have a good idea of what they can expect to get for their home.

Ask your buyer’s agent to give you as much comparative market information as possible.  Going into negotiations with reliable data will help you to determine a price that will not offend the seller and at the same time, will protect you from overpaying.

Sellers should give pre market home inspection serious consideration in 09

The 2009 real estate market indicators show there is more competition for a smaller pool of buyers.  More than ever, home sellers will be served well by getting a pre-market inspection done.  Maintaining control of repairs will allow you to manage your budget and keep buyer confidence strong through the process.

Repairs are the most likely reason for a deal to fall apart.  By having a licensed home inspector prepare a list of potential repairs, the seller can be proactive and avoid much of the repair negotiations which can be fraught with contention.   It also allows the home owner to do some of the minor repairs with little to no out of pocket expense.  Maintaining control of and completing repairs will help to ensure that buyers do not have reason to back out of a deal.  Lengthy lists of repairs and signs of deferred maintenance can create an air of uncertainty among buyers with the potential of them questioning their decision or the offer price. 

Making sure the buyer has a short list of repairs can be your best defense.  Home inspections cost roughly $300-$400 and will probably save you much more than that.  If you invest in an inspection and by some chance, find there are very few repairs, move forward in the sale of your home with confidence and peace of mind.  For help finding a licensed inspector in the triangle contact me by phone or email.

Chapel Hill Carrboro schools ranked 1 in the state

The Chapel Hill Carrboro schools recently claimed the lowest drop out rate in the state.  Fifty seven students, accounting for roughly 1.5% of the student body dropped out during 2008.  The school district attributes the low number to a recent partnership with Durham Tech called “Middle College” which allows students to attend high school and college simultaneously.

The quintessential transitional home near Chapel Hill

My out of town buyer clients can explain what they want, but often, don’t know what to call it.  That is because transitional style, which is so popular here, can be a bit of a regional term.  On many MLS services and national real estate websites, it isn’t even an option on the menu. 

Transitional style homes typically have a mostly traditional exterior, appealing to the masses.  On the interior, transitionals  offer the contemporary features that are so popular.  With open floor plans on the list of “must haves”  for many buyers, transitionals, offer a middle ground between contemporary and traditional design.  Without walls to break up rooms, homes are better suited for entertaining, feel larger and provide greater level of function.  Expect to see soaring ceilings, two story spaces, rooms with flexible uses, archetectural details that add interest and large windows.  Today’s buyers are looking for light, bright open rooms that appear large even if they aren’t.

I am posting an example of one of my listings that I believe is the quintessential transitional just minutes to Chapel Hill.  http://www.mariescheuring.com/properties/index.htm  You can also view the listing on the search page of my website.

Note the columns, arched doorways, 11 foot ceilings, coved ceilings on the second floor, open kitchen/family room area.  A tour of this beautiful home can be scheduled with me at your convenience.  (919) 357-6064 or email to receive the full photo listing.

Water conservation begins in the bathroom

We have had plenty of rain this year and water conservation is off the front burner lately.  However, as our population continues to grow, demand is increasing.  Parts of the triangle are talking about having a tiered pricing system that will incentivise low usage with low rates; and punish high usage with high rates.  That said, it might be prudent to start conserving now.

I spent most of my life in western Pennsylvania where there is more water than anyone really wants.  In Pittsburgh we have three rivers, lake effect weather patterns (100 miles from Lake Erie) and year round precipitation.  It pretty much rains at least one day a week, and depending on the time of year, it may rain every day in a week.  The only people who think about conserving water there, are those using well water.  If I can do it, anyone can.

Conserving water is a learned behavior, especially for those who never thought about it before.   If you are taking baby steps in changing your water usage, I say, “start in the bathroom”. 

The first and easiest thing to do is to check all faucets, toilets, tub and shower fixtures to make sure there are no slow leaks or drips.  I once had a listing that was vacant and had a running toilet.  The day of closing, when the buyer went for their final walk through, the back yard had 3 inches of water covering it because the septic tank was full.  That is all the visual anyone needs to have  if the running toilet wastes a lot of water.

Add flow restricters to the shower heads and faucets if you can’t afford to replace them with updated models.  Low flow toilets are an inexpensive upgrade.  If that is not in the budget, place a brick or two in the tank to reduce the amount of water in each flush. 

Most people know they should turn off the water while they shave or brush their teeth.  Take changing habits to the next level.  Before you turn on the bath, plug the drain.  You can adjust the temperature later without wasting the cold water that precedes the hot start.  Lastly, showering accounts for a large amount of our water usage.  If you can’t stop yourself;  make an effort to at least turn off the water while you are shaving.   Consider adding a shower timer to the showerhead.  Not only will it remind you how much water you are using, it will keep you on schedule.

Stimulus package benefits the first time home buyers

It WAS too good to be true.  That $15,000 tax credit is gone in a flash.  Think about it; would it really make sense for our country to finance a tax credit for anybody who felt like buying a home this year?  Probably not.  Instead, lawmakers decided to put some teeth into the first time homebuyer tax credit that did little to spur on the sluggish market.

The original bill, that has been around since last summer, was called a tax credit.  In reality, first time homebuyers were required to pay back the money in $500 increments over 15 years.  Critics complained it was in fact,  not a tax credit , but a tax deferment or an interest free loan. 

Under the new bill, first time home buyers will be eligible for a $8000 tax credit that will not be paid back. The stimulus package will also relieve lenders of some of the bad debt which should make more money available for lending and refinancing. 

For buyers, it just keeps getting better.

Chatham County real estate fourth quarter market stats now available

Chatham County fourth quarter real estate market was about what we all expected.  The statistics showed a slow market and a small number of lucky homeowners were able to sell.  However, there were some positive notes; the average home price is up and homes are appreciating according to the latest report.  There appears to be a surplus of new construction properties which made it difficult for the resale market.  Hopefully the new stimulus package and spring market will bring some balance back to the area.

I am posting the summary here.  To request a copy of the actual statistical data, please email: marie@kw.com or give me a call 919-357-6064. 

 

 

 

 

 

 

 

2008; Summary of residential activity

On this and the following pages you will find statistical indicators detailing the performance of the residential real estate

market in Chatham County. Here are the answers to my top questions pertaining to market performance;

What is going on in the job market?

Based upon 12/08 figures released by the Employment Security Commission of North Carolina, the combined workforce

in the Durham and Raleigh/Cary MSA’s was 794,123. This is a 2.56% drop from the workforce seen at the end of 12/07.

This is the second consecutive year of a December to December drop in the employed workforce. The unemployment

rate in the MSA increased to 6.5% from 3.6%.

Is anyone looking at Chatham County housing?

There were 1,866 showings as logged through the CSS system during the fourth quarter. This is a 31% decrease compared

to 4Q/07 showings.

What is happening with inventory?

Overall inventory was flat, re-sale inventory increased 3% and new home inventory decreased 6% compared to inventory

levels at the end of 4Q/07. The average days on market for the active listings is 151 compared to the 142 day average

at the end of 4Q/07. The number of sellers who have dropped list price from original list has increased to 243 from

167.

Are more choices producing more contracts?

The answer is still a resounding no. Contract pending levels for the county were off 23% compared to 4Q/07. This mirrors

the trend seen in other counties in the Triangle. TMLS contract pending levels for the quarter were off 35%.

What is happening with closed sales?

There were 105 closings posted during the quarter, a decrease of 40% compared to 4Q/07. There were 584 annual

closings, a decrease of 25% compared to 2007.

How long is it taking for homes to sell?

The average days on market for homes that closed during the quarter has been 113 days. The average at the end of

4Q/07 was 86 days. The average days on market for resale homes was 100 and the average for new homes was 123.

The overall TMLS average has been 100 days.

How does the current supply compare with other area’s in the Triangle?

The current supply for all housing located within the county is 12 months. This supply number is calculated using the 12

months of 2008 closings as the sales pace. If you use the fourth quarter closings as the sales pace, the supply increases

to 17 months. The 12 month sales pace/supply in 2007 was 9 months and the fourth quarter sales pace/supply in 2007

was 10 months. The current supply of housing located in the four main counties of Durham, Orange, Johnston and Wake

is 7 months.

Give me some numbers

The average list price is $494,200, an increase of 5% compared to the average at the end of 4Q/07.

The average sold price was $346,400 a decrease of 5% compared to 4Q/07.

Are sellers getting more for their house than what they paid?

Yes they are; the average percent per year gain for resale housing located within the county has been 4.1%. Given the

oversupply of housing within most price buckets, I would expect this number to drop dramatically in the coming months.

Where are people buying?

Amberly closed the most amount of housing in December. Governors Club, Fearrington and Governors Village have

closed the most amount of re-sale housing during the past 13 months.

General Brokerage

Chatham County

Jan.-December 2008

Newer homes still require a thorough inspection

Chapel Hill and Durham real estate inventory can be ripe with newer homes.  There has been such a boom in population growth and revitalization, that much of the development is somewhat new.

Just because you are buying a newer home, does not mean you should be less dilligent with regard to inspections.  For newer properties, under 12 years old, you will likely see a shorter repair list, but any property can contain significant defects. 

Statistically, when buying a newer property, you should pay attention to the roof, electric, foundation and central heating and cooling.  On inspection of homes this age, these were the most frequently identified repairs. A small percentage of these homes showed structural problems or issues concerning the insulation, water heating and plumbing.

The moral of the story; hire a licensed inspector and read your inspection report thoroughly.  Follow up with any recommendations for additional inspections and understand the needed repairs before preparing your request for repairs.

In NC, buyers are protected from having to purchase homes with defects.  If a seller does not agree to make repairs according to the contract, you can likely walk away from the agreement without loss of your earnest deposit.  Know that it is “buyer beware”.  Once you close, you accept the home in its current condition. So even if you are purchasing a new home, inspections are always indicated.  Buyers should see this as a positive thing and take full advantage.

With regard to home repairs, 30 is not the new 20

When it comes to age, be glad you are not a home.  Middle aged, in property terms, is generally considered to be age 13 to 29.  For buyers considering the purchase of a middle aged home, there are definitely certain systems that should be thoroughly inspected before closing.

As you would expect, homes in this age range tend to require more repairs than a newer home.  What is surprising though, is that in some categories, mid-age homes fare worse than older homes statistically.  This is attributed to the fact that some of the systems are nearing the end of the life expectancy while in many older homes, the systems were already replaced.

Roughly half the homes age 13-29 will require repairs or replacement to the roof and central heating.  In about one third of homes this age, a buyer can expect to see  failures in the electrical system, central cooling and insulation as well as water seepage or drainage concerns. 

Twenty percent or less middle aged homes will show structural issues, water heater problems, plumbing or mixed piping upon inspection.

The important thing to be gleaned from this post is that homes, like people, age in very similar ways.  By being proactive, hiring licensed inspectors and negotiating strongly, repairs do not need to be a reason to walk away from a deal.  Most homes will have repairs discovered on inspection and almost everything can be fixed.  Be sure that you do not close on a property until all the repairs that you negotiate are completed or at least paid for.

Now, buyers, conditions have never been better for you.  Get out there and find your dream home!

Chapel Hill real estate: what’s hot, what’s not

I am seeing more and more buyers expressing their desire to be modest when it comes to their home purchase.  Right now, excess is “out” and green, quality, smaller homes are “in”.

We can all look to Hollywood to see where the trends are headed.  Tia Cerrrera’s $30 Ebay purchased dress on the red carpet is a sign of the times.  Even those with money are coming to realize that the tough economic times call for restraint.

For sellers, quality is a good investment but perhaps top of the line is not.  If you are preparing your  home for market, anything green will get the attention of buyers hungry to reduce their carbon footprint.  This means energy saving, environmentally conscious features and products are in demand.

What do I think is hot in my market?

 Homes under 3200sf, dual zone heating and air, homes that are immaculately clean (this one is free), water conserving features, tastefully updated properties that respect the original archetecture.