Git-R-Done! Hiring the Right Contractor

We have all heard horror stories about what can happen when people hire the wrong contractor. “It took three times as long as it should have!” “They wound up charging me half again what they said it would cost!” “They never even called me back!”

Those kinds of tales can be enough to keep you from even considering starting any of the home improvement projects you may have been thinking about for this summer. But that doesn’t need to happen – and it shouldn’t happen: protecting and improving your real estate investment is too important to your financial future. Sometimes the difference between a successful outcome and a disappointment is as simple as getting started the right way. Just three simple steps (combined with your own good common sense) will get your own real estate improvement project off on the right foot:

Get Recommendations

Most important is the first step: get recommendations.  Take enough time to collect as many names as possible. Friends, family, neighbors, co-workers – even the local hardware store proprietor -- can offer names and first-hand experiences. Then check reputations: use the Better Business Bureau for their accreditation, and see what people on the Internet have to offer (though I always take Web gossip with a grain of salt!). Usually the best recommendations come from people you know who relay their own experiences, good or bad.

Meet Each Contractor

You are looking for a licensed professional who does excellent work on time and on budget.  After creating a short list of contractors, take the time to meet each of them at your house. The contractor can then give you a written estimate of how much the work will cost you and how long it will take.

Double-Check

After you have settled on a final candidate or two, don’t be shy about asking to speak to a couple of recent clients about their experiences. It’s not unreasonable to ask; after all, if your job gets done on time and on budget, won’t you be willing to answer a phone call or two?  Be sure to confirm that they carry liability, builder's risk and workman's compensation insurance. Contractors who are properly insured will charge more to cover those costs. If you hire a cut-rate contractor you may find yourself responsible for their improper acts.

If you want a stress-reducing way to protect and improve your real estate investment, hiring a great contractor is the vital first step. 

Outdoor Living Space Sells!

Those of us who focus professionally on real estate trends can vouch for it: outdoor living sells! And depending on what life phase their family is in, home buyers’ choices tend to follow similar lines.

The 2012 Residential Landscape Architecture Trends Survey confirms again how important those backyard grills and dining areas are when it comes to what most people have at the top of their minds when they think about buying homes.

When potential homebuyers come to me, some of the features highest on their “must have” list virtually always have something to do with outdoor space.   Young families buying homes, for example, are usually pleased to find a grassy area off the kitchen where their toddlers can toddle.  High-profile clients often seek out impressive spaces with great foot-traffic flow for indoor/outdoor entertaining.  Empty-nesters buying homes often come to me seeking the opposite -- less yard with easy- or no-maintenance landscaping.   The point is, no matter what the age or demographic of the buyer, in today’s market, outdoor space sells.

So -- what is hot for those buying homes in 2012? The survey I cited earlier is one conducted every year by the American Society of Landscape Architects. This year they came up with some clear winners. According to the survey, top popularity goes to BBQ grill space (97.4%), followed by low-maintenance landscapes (96.6 percent), fireplaces/fire pits (95.8 percent), and dining areas (95.7 percent). 

Not so obvious winners were decorative water elements such as ornamental pools, splash pools, waterfalls, grottos, water runnels or bubblers, and pergolas. Not as popular as they once were? turf lawns at 50.9%, gazebos at 49.1%, and hammocks at 27.4%.  Go figure!

If you are considering an outdoor remodel before selling your own home, be sure to design with local buyers in mind. Contact me any time, I’ll be happy to go over the features most clients look for when buying homes today.

Why Not Add Luxury to Your Home?

When the real estate market undergoes the kind of wide changes we’ve seen recently, you would expect changes in how prospective buyers approach their choices. No surprise there.
With lending tight and larger deposits often being sought by lenders, many home buyers are seeking ‘move-in ready’ properties…homes that require little or no out-of-pocket cash before moving in.  That growing segment of the buying public has grown weary of bargain-hunting, are tired of viewing REO’s and short sales -- and just want to be able to settle into their new home as-is. They want a bottom line cost that's nailed down. 

Automatically qualified to interest such homebuyers are today’s local luxury homes: homes with features that bring a higher-end “feel” -- even if their size or location would seem to indicate otherwise. Adding some of these features can send the ‘luxury’ message…and adding some of those features can cost less than you’d think! 

 Luxury homes almost always have a well-planned, open kitchen.  One step in the right direction is to simply remove everything from counters to create the look of more space.  The current tendency is to value kitchens with a multitude of storage and counter space. Where that’s not possible, actually more important will be adding new appliances with a modern feel: go for stainless steel to create the feel of luxury – possible even in modest spaces.

Another feature qualifying luxury homes is at least one luxury bathroom. Here, it is hard to get past the need to provide ample space for comfort, though spa-style baths are one item that can do the trick. You may also consider a tile mosaic backsplash: that kind of tasteful design touch goes far toward creating a feel of luxury. More simply (and economically), just changing out the faucets to a brushed nickel or other metal surface (please - not gold!) can do the trick.  Add fluffy white towels, an orchid or two, and great smelling candle and voila! Instant luxury.  Depending on the layout of your bathroom, changes can be pleasingly inexpensive.

Luxury homes may also include green features.  New windows, added insulation, and solar heating are prime examples, but without the budget for major improvements, it’s also possible to take a more modest approach. New energy-efficient LED light bulbs can be one minor feature that can add appeal to today’s luxury homebuyers.  You may also consider getting your home LEED rated through a national or local institution.  Not only will your family benefit from installing green features, but it will encourage most buyers to consider your home a notch above the competition.

 Of course, there is no substitution for good old-fashioned personal advice.  If you’re mulling over your own home sale , contact me anytime for a custom consultation about practical ways you can maximize your prospects.

What is Your Home Worth

Figuring out home values when the market is in flux is truly a job for experts. We have seen the national real estate market begin to rebound, and the phone has been ringing. I believe that the market is turning. Most  homeowners are in the habit of keeping an eye on area home values. But especially for anyone considering buying or selling in the next few months, estimating their home’s value is one of the first items on the agenda.

To get you started, there are a couple of different methods to help establish a ballpark estimate of what your home may currently be worth.

Certainly the quickest and easiest tool is the calculator on Bank of America’s website, at http://realestatecenter.bankofamerica.com/tools/marketvalue.aspx.  This free online calculator uses accumulated public record data joined with other factors to produce an estimate of home values. All you need to do is enter your address and wait for the magic.

I do have to put in a word of caution, though. Like any computer program, it’s fast and precise --but also maddeningly capable of disregarding what we humans think of as ‘common sense.’ So, while it is fun and interesting to get this kind of readout, it’s at best a ballpark estimate (and at worst, downright misleading!). The computer won't take into account your homes condition or interior finish.

There are many other sites boasting similar tools -- variations of the same idea and pulling from slightly different data sets -- but the approach they use to calculate home values stays the pretty much the same. You only need to enter your address and there you go: instant estimate.

While these calculators are great at aggregating data, nothing replaces human input.  Real estate is, after all, the very definition of a local occurrence, so if you’re looking for more than an estimate, it’s time to call the pros in.

When an experienced agent (someone like yours truly) creates their professional estimate, it not only takes into account the trends for properties closest to yours, but also incorporates real life features -- such as the curb appeal your home and garden offers right now. The better kept your property is at any given time, the greater its estimated value should be. An agent can also suggest the small changes that work best to enhance a property’s value.

In addition to using comparable sales, I think it is important to compare your home to other similar homes currently on the market. This evaluation process anticipates where the market may be in 90 to 120 days. This information can be very valuable to you if you are considering making your home available for sale.

If you have been considering selling a home and are curious about today’s l home values, call me at 252 635 1100 anytime for a complimentary (and 100% human) consultation! 

Tips for Alert Home Buyers

Are you looking for a home to call your own? In New Bern's current bargain-rich real estate market, you’ll find that you’re not alone! If it’s been a while since you last house-hunted (or if it’s your first time out), it’s important to go over some basics.

A real estate agent or broker who lists a property is working for the seller. Since it takes a buyer to make anything happen, there are also buyer’s agents. Although anyone is free to buy or sell on their own, there are good reasons why most buyers decide to enlist a buyer’s agent to represent their interests exclusively.

A Buyer’s Agent Protects You

Let’s say you stop by a weekend open house, and there it is -- your dream home! The listing agent is very nice and wants to help you to write up an offer to purchase through her.  This is called a “dual agency,” and is not necessarily a great idea (some brokerages even forbid it). The problem is that the seller's agent rightly wants to get the highest price for the property because she represents the owner.  If I were working with you as your buyer’s agent, my job would be to represent your interests, so an offer I wrote could look quite a bit better from your prospective. That’s why it is prudent to find a agent to represent you before even starting your search. 

Loose Lips Sink Ships

Whenever you are house hunting, be careful of what you say to the seller's agent. Resist the temptation to discuss financial matters or to mention that you are in a rush to buy: either could damage your chances of getting the home you want on terms you want. Always bear in mind that the agent is working for the seller, not for you.

Consider Signing a Contract

As soon as you sign a contract with a buyer’s agent, you put a real estate professional to work for you. It is a legally binding agreement in writing that obligates the agent to work to get you the best deal possible. You may also sign an exclusive contract with your buyer’s agent, which gives the agent an extra assurance that his or her work is likely to accomplish what you both want -- a deal that puts you in your new home. 

  

Finding an experienced buyer’s agent for your side – one you feel comfortable with, who listens to your needs and who offers expert suggestions and advice – will be well worth the time it takes. But it doesn’t even have to take much time: I’m right here!  

Bank Owned Homes: Buying Opportunity

These days the words “bank owned homes” have become practically synonymous with a single word: “opportunity.”  With prices and mortgage rates this low, first time home buyers, investors and seasoned property owners alike are looking at a raft of buying options unlike any the New Bern area has seen in a very long time. 

That option of buying a bank owned home has certainly opened a viable route for those looking to own a home at the fraction of what it cost just a few years ago. But not without a price:  the best bank owned home bargains are almost certain to fall into the ‘fixer-upper’ category.

When considering the purchase of one of our bank owned homes, I’ve found that my most successful clients have a few qualities in common:

-          patience – they wait until they’ve found a house that suits all their needs

-          prudence – they resist the temptation to take out too big of a loan

-          realism – they know how much hard work they will be willing to put into the house

Finding the right fixer-upper should be approached as a process: in other words, never buy the first home you see until after you’ve checked out some of its competition. There are more foreclosures on the market than ever – a phenomenon that works to your advantage. When you do find the right home, make sure to take out a loan that makes sense. Often people who are in a hurry to buy a house are tempted to take out a loan without giving enough consideration to its immediate and long-term implications.  Being coolly realistic as you work out the numbers will pay off for a long time.

Once a bank owned home is officially yours, the hard (often fun!) work begins. Buying a home in need of repair has always been the surest way to find a deal, but it is also the way to improve or develop home maintenance skills, bond with family members, and keep a tight rein on the family budget. Here, too, you need to be careful not to get carried away– you don’t want to overbuild or overdevelop beyond what is appropriate for the neighborhood setting. In other words, keep your end goals in mind.  My advice to clients varies depending on their individual needs: Is it an income property?  Or the family home for the next 15 years? 

Foreclosures show no signs of slowing down in the near future, so this summer's buying market is opportune.  If you’re considering buying a bank owned home, call me today to go over your options and to put a plan into action! 

Hardwood Vs Carpet & Long Term Value

Both hardwood and carpeted flooring can look great. However, when that property is purchased by an investor whose intention is to make it a lucrative long-term rental, hardwood floors can have a real advantage over carpeting -- for both durability and enhanced aesthetic appeal.

Yes, the initial investment is definitely more expensive. But hardwood floors are extremely durable: they withstand years of the toughest use (by even the roughest of boots!). By comparison, carpets tend to rip and stain easily. With replacement costs starting in the neighborhood of $3.50 per square foot, that means their actual property management expense will usually be higher. The resulting value to present (or future) landlords can be considerable. Hardwood flooring also gives any property a higher-end feel to it, which could tend to attract higher quality tenants.

Canny landlords know that there are both good and bad tenants out there; only time can guarantee which kind will wind up in any given house. Although hiring a great property management company is one step that goes a long way toward keeping an income unit in great condition, over the years there is always a risk that some renters may cause damage, leaving the landlord or property management agency to deal with the mess after they move.  And the fact is that any carpet can be ruined through one accidental stain -- even by the most conscientious of occupants. Conversely, if hardwood floors get scratched, it’s a fairly simple matter to sand and re-varnish it a vacant property.

The only real downside to hardwood floors -- aside from the initial expense -- is that they can make a house seem a little ‘cold,’ while carpet can make a house feel cozier. It may not be the responsibility of a property management firm to make a house feel cozy, but it still can affect occupancy rates.  Nonetheless, many income property owners decide that it is not a good enough reason to choose carpeting. They hope that hardwood’s durability is equally valuable in the minds of the high quality tenants they hope to attract.

If you are an investor considering buying an income property, or a current property owner looking for a great property management company – give me a call.

Buying a House in Today’s Mortgage Market

Anyone interested in buying a house in Craven County today has heard that they should expect to find tougher mortgage lending requirements. Sometimes that can seem arbitrary -- or just plain unfair. But unfair or not, the new lending reality is probably here to stay for a while, and the causes are understandable.

The mortgage industry learned a powerful lesson from the past, when it pretty much gave anyone who applied a generous loan – sometimes with practically no questions asked. But this “generosity” created financial problems for both the banking industry and the country as a whole. It's not hard to understand why lending guidelines are stricter.

Reducing Loan Defaults

The overriding reason for tougher lending policies is to reduce the number of loan defaults. In order to qualify for a mortgage, borrowers are finding that lenders now look more closely, may require a higher annual income, better credit score, or a larger down payment. Their high-priority goal is preventing any foreclosure situation where the bank owns a property it has to sell or rent itself.

Questioning Future Value 

For many years, homebuyers never questioned the investment value that seemed to automatically accompany any piece of real estate. Buying a house was like investing in a blue chip stock: certain to rise. The advent of a shrinking Dow Jones Average preceded the phenomenon of ‘upside down’ homeowner equity. But in both cases, long gone is the idea that everyone should expect to find no-brainer investment opportunities. When buying a house can mean exposing the lender to a future where more is owed than a house is worth, they naturally seek a safer place for their money.  Since a smaller loan or larger down payment achieves that goal, that’s what lenders tend to offer.

Lowering Consumer Debt

During 2010, the nation’s ten largest mortgage lenders turned down about 26% of all applications (according to the Wall Street Journal).  In many cases, that could be attributed to lowered credit scores – due in turn to increased debts from credit cards or unpaid student loans. In fact, those heavy debt loads are part of what got homeowners into financial trouble and helped to fuel the housing market crisis.

In the short term, homebuyers denied a loan can’t help but be keenly disappointed. But it can ultimately provide time to let them raise their credit scores, increase their savings, and get their financial affairs onto firm ground. The ultimate effect should be to put the whole housing market there, too.

If you’re considering buying a house, I’d like to help you get pre-qualified under the current mortgage guidelines. Once you see what real values are out there and available to you, I think you’ll be glad you called!

Homeowner's Springtime Checklist

There’s nothing like being able to bask in the warm glow of well-being a homeowner gets after finishing a thorough spring cleaning. It's especially true when you realize how important the annual ritual can be in protecting your greatest asset: your property.

That warm glow results from doing more than just cleaning your home's interior, though. It involves maintaining the property in the ways that will prevent having to take more costly steps later. There are three different tasks you can complete to get your home ready for the warm weather that's on the way. If you follow these basic tips, your home will be looking its best – and the resulting beauty will be more than skin deep.

One of the most overlooked areas for most properties is its foundation. It is important to check your foundation for damage, and to patch and seal any cracks as soon as you discover them. The foundation is one of the first areas potential buyers (and their inspectors) examine when they get serious about writing an offer on a home. A sound foundation is essential for the obvious structural reasons -- and it can even have an impact on utility bills. If you see something that concerns you give me a call. I can put you in touch with folks that can help.

May is also prime time for cleaning out all of the gutters on your property. When gutters clog, you can end up with leaks inside walls.  For the ladder-shy, the cost of a once-yearly gutter clearing service can be a prudent and cost-conscious choice (as anyone who's experienced the major costs that result from neglecting the gutters will tell you)! 

Spring is also a great time to paint the outside of your home. A fresh paint job gives your property the fresh look nothing else can. You don't have to be selling your property to appreciate the 'curb appeal' – the real difference a fresh coat gives to any house. That paint job will also be more than just attractive: it will also prevent premature aging of the whole exterior. For those who have vinyl siding have it pressure washed. Outside appearance is important. Perhaps your neighbors will follow your example. Values on your street may increase.

Whether your current plans are to sell, rent, or stay put in your property, you’ll be rewarded by taking a day or two each spring to focus on these preventative care details.  If you need a referral for a handyman or other maintenance service, I'm always happy to recommend some of our reliable vendors. Call me anytime!

Affordable Waterfront

How would you like to have a beautiful view of the Neuse River, pool, large garage and boat slip at an affordable price. You can now afford it. This home is priced at only $164,900. Don't spend your time keeping a yard or pool maintained, the Owners' Association frees your time to swim, fish or just enjoy a fabulous sunset.

The interior of the home has been remodeled. Please visit my Website to view more pictures and a virtual tour. We live in this town home development and love it. It is just a short drive over a four lane road to the major shopping areas, schools and attractions. We fish from our pier and catch stripers, spots, flounder, croakers, bass and crabs. We take full advantage of the pool and swim several times each week in the summer months.

Two bedrooms and two and a half baths are spacious in this 1300 square foot home. There are great views from the open living, dining and kitchen area. There is plenty of room in the garage for your car and other toys.

Call me at 252 635 1100 for an appointment to view this home.

Gary Barker

Ready, Set, Sell your Home

For those who are just about ready to list their home for sale this May, several simple yet cost-effective projects can be sure-fire buyer-pleasers. I am often asked to help my clients identify areas in their home that will benefit from improvements. I like to point to some simple changes that materially help a property’s ability to compete with any other homes.

Here are three of my favorite inexpensive fixes:

1. Painting walls in pale neutral colors.  Freshly painted walls erase years of wear from any room. They send prospective buyers a subtle message: here is a home where your family can create your own memories.  Neutral tones are important, too. While you may personally prefer rich or bright colors, potential buyers may not. Beyond ensuring that rooms look as big, bright and airy as possible, you want potential buyers to picture spaces where their furnishings will fit in without redecorating. It is more important to appeal to larger number of buyers than to find one buyers favorite color.

2. Clearing clutter. Clear kitchen and bathroom countertops, consign heavy furniture to storage, (visit Bradford Ministorage) and stow the kids' toys neatly out of sight. The object is to emphasize the impression of sufficient space. When buyers visit any house for sale, they are most drawn to those where it’s easy to picture all of their belongings fitting in easily – and that takes space. 

3. Keeping your cool. You want buyers to be comfortable as they walk through your house for sale, and at the same time want to signal that heating and cooling are not going to be problematic. Have your heating and air conditioning systems serviced so that they are in efficient working order.  If the weather cooperates and the sun is shining, open windows and doors to create a nice fresh breeze. But if it’s too hot, be willing to crank up the AC! Remember buyers on tour have been getting in and out of an automobile. If your home is comfortable they will stay longer and have pleasant thoughts.

Whenever you list a house for sale, it's important that you put yourself in the buyers’ shoes. Ask what are the key factors you would look for, and be sure your home reflects the answers. For any and all other questions you might have about selling your home, I’m here to help!  

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