Chinese drywall causing a stink with homeowners

Another product from China making Americans ill!  I make every effort to buy American and often that can be challenging.  The recent news regarding drywall imported from China between 2004 and 2006 is just another reason to do so.  Most homes in the US are constructed with American made wall board.  However, during the hurricane Katrina era and the home buying frenzy at the time, demand exceeded supply and imports found their way into the building industry.

What you need to know:

• The product emits sulfur compounds that corrodes building materials such as plumbing and electrical
• The toxic emmissions may make humans ill
• According to the ABC news article, the product was only sold to builders and construction companies and was not availabe as a retail product
• Tell tale sign of the product is a soot that develops on all metal in the home (plumbing fixtures, jewelry, silverware, etc.)
• Knauf brand is one company identified so far in the lawsuit, the Knauf name will appear on the unfinished/back side of the wall board
• Homes built between 2004 and 2007 could be affected

One way to check for the product in your home is to remove light switch covers to check to see if there is soot on the wiring inside the walls.  One affected family was quoted as saying they smelled sulfur on their final walk through before closing.  I am posting a link to the article for those who want the details: 

 http://abcnews.go.com/GMA/Consumer/story?id=7146929&page=1

Chapel Hill offers many chances for updating and renovating

One thing that buyers can count on this year in Chapel Hill is lots of choices.  Not only is there plenty of new homes, there are plenty of new “green built” homes for sale.  Not to minimize the feeling you get as the buyer of a new construction property, but I am not going to talk about this today.  In fact, I think it is quite over rated. 

The point I want to get across in this post is that renovating is ALWAYS a greener choice.  Chapel Hill is full of older homes that are in need of updating.  There is a unique satisfaction that will be found in renovating a home.  Breathing new life into a wilting flower is not for everyone though.  However, some buyers will be happier buying a home that has dated kitchens and baths or maybe needs new flooring and lighting and having the opportunity to put their signature on it .  This scenario permits the undulgence of having it your way, saving the planet, saving a piece of history and best of all, bragging rights when the results are stellar.  Some of the nicest lots in Chapel Hill are found in older neighborhoods.

If you are considering a renovation project know your limits and seek the advice of professionals.   Hiring an archetect, interior designer and landscape professional early on, will help you get it right.  Using ecofriendly materials will make it even better.  If you are planning to purchase a home for a green renovation, contact me to learn how I can assist you using my EcoBroker training.

Chapel Hill may be seeing the stimulus package in action

I am not going to beat around the bush….we are seeing some weird stuff in real estate.  I am eager to see what the first quarter statistics are going to confirm.  Trying to understand this mercurial market,  I took a good look at all the pending listings for the last thirty days.  I was very surprised to see that in Chapel Hill, where the average home price hovers in the mid three hundred range, there was a proportionately large number of pending sales of lower priced homes.   In fact, I noted very few homes contingent or pending that were priced over $350,000.  As you would expect there were very few luxury homes sold.  The one common denomenator among the properties was of course, location. 

It is hard to say what this means.  It makes sense that perhaps first time home buyers may be incentivised enough that they are finally buying.  Hopefully, this will have a ripple effect and by allowing the sellers to move up into more expensive properties.

Stimulus package recovery act for dummies

The Recovery Act, is the appropriately named portion of the stimulus package that will provide a tax credit to entice buyers to start buying homes and stimulate the economy.  This first time buyer credit is available to purchasers who have not owned a home in the past three years.

The plan key points are:

• Property must close between January 1 and December 1, 2009
• Single buyers with an annual income below $75,000 qualify
• Couples with income of up to $150,000 may claim the credit
• Tax credit is equal to 10% of the purchase price up to a maximum credit of $8000
• Taxpayer may claim it on their 2008 or 2009 return
• Taxpayers may file an amended return for 2008 to claim the credit
• You may receive the credit as a refund if you do not owe tax
• This is a true tax credit so no repayment is required

This leaves just the $8000 question:  What are you waiting for?

Foreclosures down in the triangle

Foreclosures are down sigificantly in the triangle compared to the same time last year.  Thanks to a new bill, passed last July, taking affect November 1, lenders are now required to provide 45 days notice to the NC Banking Commission before they can begin foreclosure proceedings.  The extra time is helping struggling homeowners by allowing them added time to explore their options for refinancing.  According to Realty Trac, NC ranked 29th in the foreclosure rate.  Rural areas are seeing the highest number of foreclosures within the state.

Geothermal technology won’t wait for a sunny day to shine

I believe it is safe to say that we all understand the concept of using the sun to make electricity.  Anyone who has had a good sunburn realizes how much energy is available in full sunlight.  So, it is not a stretch for us to imagine converting that heat to electricity.  I recently learned a little about geothermal energy and I will admit; I never heard of it before.

Apparently, it has been around since the forties and it uses the earth to heat or cool your home.  The system is similar to a heat pump with the exception of using air to transfer energy.  Instead, long hoses are buried into the ground and water is circulated through them.  The earth has a  somewhat constant temperature below the surface which results in the temperature underground being warmer in the winter and cooler in the summer than the above ground temperature. 

There are also dual systems that use both geothermal and air circulating heat pump technologies, sort of like a hybrid vehicle.  These geothermal systems are more efficient than the air circulating heat pumps we are all familiar with.  However, up front cost is higher.  By combining the two technologies, a high rate of efficiency is married with a much more affordable system. 

Systems have a life expectancy of about 25 years. The underground parts, called a ground loop, are expected to last about fifty years.  Payback in the way of free energy is around five to ten years.  Solar may be the obvious answer, but geothermal may be a more practical and affordable alternative.  Biggest surprise of all: according to the department of energy, 50,000 geothermal systems are installed each year in the US.

Selling your home in Durham requires teamwork

If you live in Durham, near Duke or UNC, you have a good chance of selling your home in the spring.  In this market though, you shouldn’t take that for granted.  It is more important than ever to have your home in top showing condition and priced correctly.  Statistics show that homes either sell quickly, close to or at asking price or they linger and sell at a discount following price reductions. 

I recently placed a Hope Valley Farms home on the market and had an offer negotiated and under contract in less than a week.  I am not taking all the credit though.  My sellers were smart about the sale of their home.  They did their homework, they cooperated and they had realistic expectations.  The most important factor in their quick sale was that they priced their home based upon their comparables. 

I met with them a few weeks prior and spent an afternoon going through the home, room by room.  I prepared a lengthy list of “must dos” and “should dos”.   They took care of everthing on the list with the exception of two minor things that just didn’t work for them.  There is no majic bullet, no panacea.  Selling your home must be viewed as a group of tasks and a project.  You can view the listing on my website by opening  this link:  http://mariescheuring.com/properties/index.htm, listing # 1651466 .

My message here is that selling your home is a team effort between the realtor and the seller.  As with any team, when everyone contributes, the chance of a success is more likely.

Woodcroft is a perrenial favorite with Duke and UNC residents

Woodcroft took the top spot again in 2008 for most homes sold in the Durham market.  The neighborhood is heavily wooded and the setting is “park-like”.  The main attraction is the miles of walking trail that meander along the Woodcroft Parkway and through the area.  Located an equal distance to UNC or Duke and just a few minutes to the Southpointe Mall, what is not to love?

The area is extremely popular with residents because of the proximity and affordability.  Homes are priced anywhere from 100,000 for a condo to 400,000 for the largest homes.  There are plenty of affordable homes in the low 200s and there is usually competition and often multiple offers.  The homes are often just as charming as the neighborhoods.  I especially enjoy seeing all the Duke and UNC flags and mailboxes that line the streets.

If you want to buy in Woodcroft this year, you might  try to do it early rather than later.   The Spring market can be brisk and homes go under contract quickly and usually for close to or at asking price.  The typical home will be about twenty years old, have masonite siding and may have polybuteline plumbing.  Expect nice floor plans including fireplaces, outdoor decks and a private bath for the master bedroom.  More often than not, you will see dated kitchens and baths. 

Woodcroft has historically been one of the better Durham communities for resale.  No matter how old the homes get, the market seems to always come back to the old adage: Location, Location, Location.  Early indications for 09 show that this little star is not losing its luster.

CMA is the best predictor of sales price

A comparative market analysis, also known as a CMA is not just real estate jargon.  A well done CMA may be the best predictor of a home’s current market value. 

In a perfect world, the ideal CMA consists of at least three properties that are similar in size, style,  number of bedrooms and baths and in the same neighborhood.  Realtors look for homes that sold in the past six months and if possible, in the past three months.  More often than not, finding good comparable sales is a challenge.  In this slower buyer’s market, finding good recent comps is difficult and so realtors need to make adjustments to the comparables to make them similar to the subject property. 

For example, a realtor may deduct or add to the closed price of a  comparable sale that has an extra bath or had less square footage.  The goal is to make the properties equal and then estimate the sales price. Once all the comps are “adjusted” for differences, then the prices are averaged to provide an educated estimate or price range.  Location is the most important factor in determining if a property is a good comparable or not. 

Pricing your home at the comparable sales price or at the lower end of the comparables price range, is a proven strategy with proven results.