Chatham County museum all about the regulator movement

The Chatham County Historical Musem opened yesterday.  The exhibit is located in the historic Pittsboro courthouse, at the town center.  The display is centered around the “regulator movement of 1767″.  At that time in history,  local small farmers joined together to try to restore law and order and establish institutions to the county.  Back country settlers, growing tired of roving bandits and a lack of organized goverment, formed the movement and utlimately were successful in affecting change. 

At the time of the movement, William Hooper, a signer of the Declaration of Independence, was serving as county clerk of courts.  An original NC land grant signed by Hooper is one of the items on display.  For now, the museum is only open on Wednesday afternoons.  Pittsboro is a little slice of history;  home to small farmers, artists, potters,  museums and environmentalists.  The town is full of great local restaurants, vintage/resale shops, antique stores and now a little museum.

Foreclosures have a new face

Foreclosures and the causes of foreclosure are evolving. Three years ago, I didn’t even know what a short sale was.  Foreclosures were the results of some family catastrophe or misfortune that could not be predicted.  But foreclosures and short sales are not only a household word now, they happen in just about every neighborhood.

The first wave of foreclosures that we saw over the past two years were primarily the result of the housing bubble.  A brisk seller’s market caused a spike in home prices.   As home prices fell, homeowners who wanted to sell, couldn’t. Others just walked, realizing they owed way more than the home was worth.  We are now experiencing a second wave of short sales and foreclosures, largely due to unemployment.  As more workers lose their jobs, the trend could continue.

You can search foreclosures in the triangle at my website: www.mariescheuring.com.

 

 

 

Bamboo growing in the US

Bamboo could be the panacea we are waiting for.  Many gardeners know bamboo to be a nasty invasive that runs all over and chokes out the native plants.  But thanks to the development of new “clumping” varieties, bamboo could be the green answer to a renewable product.  Bamboo may be the next agroforest product to save our planet and our economy.

Most people don’t realize and I don’t quite understand how bamboo turns into a soft wooly fabric blanket or a pair of socks.  This means that bamboo could replace cotton as a much more environmentally friendly agricultural crop.  Cotton depletes soil and requires a large amount of pesticides.  Bamboo is a grass, requiring little more than water and is virtually pest free.  

Bamboo is also a popular substitute for hardwood flooring.  It grows to maturity in just ten years; a fraction of the time for hardwood forest to renew.  It also is a much more effective carbon dioxide eliminator than trees. 

I love the look of bamboo floors and my only issue with bamboo is that it is 100% imported.  With the newly developed varities of bamboo, it looks like bamboo may quickly become the newest “green” product made in the USA.  To learn more about clumping bamboo, check out the bamboo that behaves at : http://www.booshootgardens.com/Homepage.cfm

First time home buyer tax credit: it is not too late to cash in

There is so much buzz about the expiring tax credit in the news this week.  Every group related to the housing industry is pushing to extend and expand the housing bill.  I am telling my buyers they should not bank on the plan being extended.  Look what happened with the cash for clunkers deal.  Over, right?

One article I read stated that it was too late for most because the normal escrow time is 90 days.  That is nothing but an exaggeration.  Thirty day closings happen all the time and I see 45 to 60 days as my usual from contract to close time.  I have even done less than 30 days.  There are so many eager sellers, vacant properties and rented homes on the market that finding a home that can provide a quick closing will likely not be the problem.  Waiting to see if the tax credit gets renewed is risky.  Getting $8,000 back at tax time is too good to pass up.  Don’t wait hoping you will get more later, take the the sure thing now.

No additional bail out for Wall Street, no more cash for clunkers,…..

Honey I shrunk the house

For the first time in decades, the average size of a new construction home in 2008 was smaller than the year prior.  This comes as no surprise to me.  I have noticed a trend over the past couple years that more and more buyers are opting for quality over quantity in their home purchase.   I have blogged about this very subject on various occasions.

A  recent article in CNNMoney attributes certain  market conditions to the phenomena.  The most obvious reason is the recession; people just can’t afford as much home as in prior years.  Another factor is a popluation of aging baby boomers who are downsizing their empty nest.  Tightening on lending and jumbo mortgages is making it more difficult for buyers to get a loan to buy a mcmansion.  Rising energy costs are also making large homes less affordable.

When house hunting, it is important to be mindful of the way your live in your home.  If your family watches a lot of TV and movies, a nice media room is a must have.  If you hate to cook and aren’t going to cook, get a bargain on a home that has a small kitchen that no one wants.  A smaller home can always look larger by hiring a licensed contractor to open up some walls and create an open living area.  Outdoor spaces can be an extension of your living area.  A large patio, covered porch, gazebo, outdoor kitchen, outdoor  fireplace or firepit, a pool, a lanai or courtyard are a few examples of how you can live large in a modest to small home.  Consider enclosing a porch or screening a porch as a way to expand without expanding. 

To read the article in entirety go to  http://money.cnn.com/2009/08/07/real_estate/shrinking_home/index.htm?postversion=2009081112

I have been advocating for a green renovation in lieu of new construction purchases.  A renovation is always greener than new, even if it is energy star in a certified green community.  I hope this new trend will give buyers one more reason to consider purchasing existing housing.  Before you purchase the next McMansion, consider that it may become  the next 4 bedroom, 1 bath or what is called in realestateze,  ”an obsolete floor plan, aka unsellable” home of the future.

Paper is the enemy

I admit it, I had an oversized mailbox.  That’s right, I once had our mail carrier ask me if I could get a bigger mailbox because he was coming to the door frequently when the mail didn’t fit in the mailbox.  Anytime you have two people living in the same home with office related work, you have paper!  At one point our family motto was “paper is the enemy”.  I have been able to mend my ways with a little effort.

I’d like to share some of the things I have done to reduce the paper in my home:

Read the news online
Get off the mailing lists for catalogs you don’t use or even all catalogs and shop online instead (this will take a phone call)
Go paperless with credit card statements and payments
Go paperless with bank statements; I did it five years ago and have not ever had to request a paper statement or cancelled check
Pay your utilities online and request paperless billing
Place essential email records on a flash drive…think before you print
Be a trendsetter at work…ask your company to send things electronically
Always have a dish towel handy and use as few paper towels as possible
Take only one paper napkin when you are at restaurants…you only have one mouth to wipe, right?
Don’t use papertowels to clean windows and glass; a washable, reusable cloth will do a better job
Boycott products with superfluous packaging, (if we ban together they will change) but we will have to make them
Use reusable grocery bags, or at least reuse the bags you take home

You can also register at the “do not call list” for junk mail.  Here is the link, this could be the most efficient means:
https://www.dmachoice.org/dma/member/regist.action
You can also check out the Green 15 Resolution at this site.

There is an inevitable amount of paper that just will find a way into your life and it is not difficult to be responsible with it.  Please recycle office paper.  It ends up as toilet paper so if you miss it, it will be back someday.  I think this last sentence says it all for me, so wrong on so many levels.

Solar power; an advocate’s must, an investor’s bust

A typical solar installation of photovoltaic panels costs between $20,000 and $50,000 depending on the size of the home.   That sounds like a hefty price and it is. There is no doubt that the up front cost is the main barrier to making this a household staple. Even the current tax incentives making it possible to get the solar for about half price doesn’t seem to be enough to convince homeowners that this is the way to go.

 

Solar energy is much more common in other countries. The US ranks eighth in per capita usage of solar panels. Japan leads the pack with Switzerland and Germany right behind. One interesting subgroup of US solar advocates is the Amish community. Solar energy fits with their religious beliefs and their desire for independence. But overall, the US is struggling to find a place for solar technology in its economy. 

 

I believe that from a position of practicality, the US will always struggle with the technology. We are a mobile, transient society. Solar panels have a typical life expectancy of approximately twenty years. Most of us do not plan to live in our homes for twenty years and so herein lies the problem. I hate to say it, but we are a society that accepts wasteful lifestyles as normal and when it comes to electricity, wasting is our norm. Most Americans would rather spend their money on a bigger, nicer home, than to invest in a future of energy savings and lower electric bills that they will inevitably pass on to another homeowner. 

 

It will take a change in our way of living, way of thinking. My husband recently found a letter from his German immigrant relatives. They said that they missed life in their German village and that they don’t see each other much because everyone is always working here. The industrial revolution was effective in changing the way people lived and accepted as normal.   Until we have this kind of widespread change in the way we use energy, I don’t see widespread use of solar technology becoming the norm.

 

Fueling this problem is that appraisers are not educated on solar technology and often assign no additional value to the property for it. If appraisers would adjust the home for a solar install like they do for an extra bathroom or garage, it would be a little easier to justify the investment. As an EcoBroker, I have to be honest with my clients about solar. It is a great product for the right people. People who are committed to sustainable living, reducing their carbon footprint, saving the planet, doing all they can; it is a no brainer. But from an investment standpoint, there are more economical ways save energy. For those who see it from an overall value perspective, it has immeasurable benefits. For someone who can not put appreciate the non-monetary value of cleaner energy; not so much.
 

I recommend starting with a small project. Install a solar hot water heater. You can even go for a passive solar unit. Take a class at your local community college and you could probably do the installation yourself. The cost of a passive solar heater is actually cheaper than a gas or electric water heater. A word of caution though, most building codes require that you still have a water heater that is hooked up to power as a backup. The devices range from a simple box of channels mounted on the roof to high tech photovoltaic units. 

 

Geothermal technologies are a great alternative to solar. The systems are less expensive and have double the life expectancy. Because they are buried in the ground, they are less likely to be damaged and they are not as unsightly. We all hope for the day that solar panels become a home designer fashion statement. As of now though, they are more of a status symbol or badge of honor, but definitely not pretty.

 

The typical homeowner has a huge untapped opportunity to save energy in their everyday life. Replacing every incandescent bulb with a compact fluorescent and promising to never buy another is a small step that can make a huge difference in our country’s electricity demand. Replacing old appliances and HVAC systems with energy star products is also a smart investment. Appliances can use up to 25% of a homes total energy. Short showers, laundry washed with cold water, upgrading to optimal insulation, sealing air leaks around windows and doors, programmable thermostats, turning the air conditioning up a degree or the heat down a degree…just being conscious of the energy you are using will bring a reduction. 

 

Most people can not afford a solar installation and even those who have the means, may find they can not justify the cost.   I fantasize of a day when  I pull into my garage and plug my car into the outlet powered by my photovoltaic panels. I hope that will be in the future for many of us. But, if it is not in your future, I hope you will make saving energy a priority in your life in whatever way you find possible.

Disposing of latex paint the ecofriendly way

Ever since we moved into our Chatham home, I always think about what goes down the drain.  We have a septic system, which is very common in the triangle.  I have even sold homes in Raleigh that were on septic.  Knowing that whatever goes down our drain, ends up in the yard is a concern to me.  We have a creek on our property and lots of wildlife.  So, when I saw an article on this very subject  in the Chapel Hill News today, I was eager to hear what they had to say.

The author reported that the county occasionally gets reports of paint showing up in creeks and streams and offered some advice to dispose of latex paint.  The interesting thing is that because latex paint is not considered to be an environmental hazard, there are no restrictions for disposal.  I already knew that you are supposed to leave unused paint to dry out and completely harden prior to resealing the can for disposal.  The thing she addressed was a little less obvious; clean up.  What do you do with the water that you clean the brushes and tools with?  Her recommendation was to use a couple buckets for washing and rinsing and let is stand until it settles out and you can separate it.  The main point was to just dry out the residue and dispose of it properly.

I am going to take this one step further.  Because I have a septic system and I love to paint my house, I have spent lots of time debating this very dilemma.   I even had a discussion about it with another realtor.  I am an EcoBroker and I do my best to recycle as much as possible.  However, when it comes to paint clean up, it is my opinion that throw away tray liners and disposing of the rolller sleeves is less hazardous to the environment.  I usually try to dry the brush as much as possible with a paper towel so that minimal rinsing is needed but I am going to try the two bucket method suggested by Wendy Smith. 

Not only septic users should pay attention to what goes down the drain.  Even if your home is hooked to a sewage system, whatever you are putting down the drain ends up in the environment somewhere.  If you haven’t thought about it, I urge you to consider what goes down your drain.  Cleaning products, laundry products, household chemicals, shampoo, soaps, conditioners, hair dye, cosmetics…yes, all of that ends up in the environment.  There are lots of natural and only recently affordable alternatives.  I thank Wendy Smith for writing “The Perils of Latex Paint” found on A6 and urge everyone to let this be a reminder to us all to pay attention and realize that your drain does not lead to a place in another world.

Foreclosures by choice, not necessity

The Raleigh/Durham/Chapel Hill market is not exactly plagued with foreclosure.  Undoubtedly there are more foreclosures and short sales now but for the most part, people can get their properties sold if they make the right decisions.  That is, to let go of the idea of getting all you can and selling as is.  The market is too competitive for that but preserving your credit should be a priority. 

I know two people who recently let a property go into default.  In both instances, the owners could afford to pay their mortgage but made a decision to allow the foreclosure.  They walked away from what they felt was a bad investment.  There is a term called “group think” that I believe can identify this phenomenen.  Meaning that being part of a group makes the behavior ok, to say, well all of them are doing it so why can’t I.  In the two instances I mentioned, one is a divorce situation and the other was a kiddie condo that lost equity.  Neither home was particularly expensive.

I read an interesting article that spelled this out statistically in a way that was enlightening.  Researchers found that one in four foreclosures were strategic.  The main factors in the default were the degree that the homeowner was upside down (owed more than the home value) and moral considerations.  The least likely to default demographic was well educated buyers in the Northeast and West and home owners below the age of 35 or over 65.

If you are upside down in your mortgage, there are plenty of alternatives that will preserve your credit.  There is no reason to quit paying your mortgage if you can afford it.  Explore refiancing options and if you need to move and can’t sell your home, consider renting it.  The important thing is to be proactive and seek out a solution.

Tax credit on the table for 2010

The stimulus package seems to be working.  According to the National Association of Realtors, first time home buyers account for about 40% of the home sales lately.  This figure showing a 5% increase over historical statistics. 

Politicians who think the plan is working are calling for more tax incentives, over another year and to an expanded demographic…everyone who buys a home.  Critics are saying it will decrease tax revenue for an already strained budget.  We saw a very similar situation last year.  The initial tax credit plan that was approved July08, was merely an interest free loan.  When that failed to entice buyers in this unsettled market, the plan that is now in effect was approved.

I think we will see a similar situation in December when the stimulus package expires.  No matter what happens next year, you can’t lose by taking the sure thing this year.  You might be tempted to wait and see if there are more incentives next year but you are also risking that there will be no incentives.  

Closing on a home, prior to December 1,2009 (for buyers who have not owned a home in the past three years) will get you $8000 tax credit.  Can’t wait until 2010 to get your rebate or expecting to pay a higher tax rate for 09?  You can file an amended 2008 return and take your tax credit now.  My favorite part of the stimulus credit is that if you don’t owe $8K in tax, the government will send you a check.  There are income limits, so if you don’t need the tax credit, you won’t get it.  This may seem a little unfair but the point of the stimulus is to help those who couldn’t buy, be able to buy.