How much Mortgage can you afford?

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  4 Tips to Determine How Much Mortgage You Can Afford

  By knowing how much mortgage you can handle, you can ensure that home ownership will fit in your budget. Read

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Copyright 2013 NATIONAL ASSOCIATION OF REALTORS®

Top Ten Reasons to Retire to New Bern, NC

There are a myriad of reasons to choose New Bern, NC for retirement. We have listed ten for your consideration.

Churches. Our faith communities are important to our area. We have a large Catholic parish and most major protestant churches are well represented. There is a local synagogue. The culture and history of New Bern have and are greatly influenced by our churches.

Life Style. New Bern is a small town with many large city amenities. While the city has less than 30,000 citizens it has the regional shopping for more than 100,000. Recreation and golf opportunities are plentiful.

History. Our city has celebrated its 300th birthday in 2010. You will find many examples of homes and structures built hundreds of years ago. The royal governors mansion has been restored and there is a NC History Center on the Trent River waterfront.

Beauty. New Bern is located on the confluence of two coastal rivers. The waterfront and historic properties have made New Bern gorgeous. Our city leaders have spent the past fifty years maximizing our appeal.

Water Sports. The Neuse River is a mile wide as it passes by our downtown. At its mouth it is the widest river in North America. The Trent River flows into the Neuse. Fishing, Sailing, Paddle Boarding, Kayaking and Water Skiing are enjoyed.

Culture. The arts are alive in our city. Several theater groups frequently give performances. Music is available  in many styles including orchestras, brass bands, small ensembles, blue grass, country, beach and rock bands. Sculptors and painters have both made New Bern their home.

Military Friendly.  MCAS Cherry Point is located 20 miles to the east of our city and fourty miles to the south is Camp LeJune. Exchanges and military medical facilities are easily accessible. The people of our area appreciate active duty military and veterans.

Transportation. New Bern is served by the Coastal Carolina Regional Airport. Both Delta and US Air have daily flights. US Highway 70 is a four lane controlled access route that heads west to I-95 and beyond. US Highway 17 gives access to the north and south. Our rivers connect to the inter coastal water ways, Pamlico Sound and the Atlantic Ocean.

Health Care. New Bern is served by Carolina East Medical Center. Almost every specialty is represented. Less than one hour away is the Vidant Health. It is a teaching hospital connected to East Carolina University. Less than than three hours away you have hospitals attached Duke, UNC and Wake Forest University.

Affordable. Prices have lowered over the last four years and interest rates are at an all time low. We can help you find a great home and negotiate a fabulous price.

Email or phone (252 635 1100) to begin your search today.

Before You Sign That Lease…

It’s a familiar moment: you are about to enter into an important agreement, and as you lift the pen to sign your name, you pause. Your pen hovers over the Signature line for an extra moment as you register how important this will be in shaping your future…

When it comes to home rentals in our area, just such a moment occurs when you are about to sign the next year’s lease agreement. Local rentals largely echoed the national trend to higher prices and tightening supply, so the number of dollars on the bottom line can make that hesitation linger a bit longer than before.
The fact is that the local housing situation today is vastly different than it was just a couple of years back. Especially for anyone long accustomed to local home rentals, it’s worthwhile to re-examine some major factors that point to the best housing solution. Three of them have to do with finances, timing, and lifestyle. 

* Ownership can offer significant financial advantages. Tax savings are usually the standout factor: if you can deduct the interest you pay on a home’s mortgage, you stand to save that interest amount times your tax rate – versus (just say goodbye to it!) your rental payment. Maintenance and real estate taxes have to be considered as an added cost, but homeowners also stand to benefit from any increase in the value of their home. The aftermath of the epic slide in housing prices finds us currently situated near the first part of the ‘buy low, sell high’ truism. There are no guarantees when it comes to investing, but despite large dips during recessions, most houses regain that lost value -- and more -- during economic booms.

* Record low home mortgage rates combined with the dip in home prices have green-lighted this summer for anyone waiting for the timing to be right. Local buyers are not only finding homes at affordable prices, but are also paying historic lows on amounts borrowed. Lately we’ve been reading about mortgage rates reported as low as 3.4% on 30-year loans! 

* Finally, there are all the intangibles that come into play. Local rentals certainly alleviate some of the effort involved in caring for your own property, but on the other hand, it’s tough to put a price on the value of finally having real control over your living situation. Any tenant who has been uprooted when the landlord decides to sell or move back in knows the kind of upheaval that results from an unexpected and unwanted move. 

Sometimes home rentals offer the best option for a family, but it never hurts to run the numbers. Market conditions have rarely been as ideal as they are right now for area home buyers -- and I’m here anytime to go over the latest figures if you would like to take a look!

"It's my money and I want it now."

I have just returned from a closing for a home I sold at auction. The owner was able to receive the proceeds from his home in less than 100 days from listing to closing. We took seven weeks to prepare and market the auction. The buyer was given six weeks to close. This represents a much shorter time than most traditional selling periods.

When is it smart to sell real estate by auction? When having the proceeds earlier is important. Many owners have their property vacant during the marketing process. The mortgage payments and other expenses continue. Heir property is always a good prospect for an auction sale. Multiple owners are often difficult to have in communication when an offer is received. With an auction everyone knows the date and time in advance when an offer will be received. The reserve price has been agreed upon. When the bids exceed that price all of the heirs have agreed to sell. In a traditional sale only the asking price has been established. When one of the heirs goals does not line up with his relatives it can get tense. Some will want their money now. Others may want to wait for a higher offer that may or may not materialize.

With an auction we establish a minimum price that will be accepted. Dates are selected for the sale. A closing date is determined. A marketing plan and budget are established. In traditional real estate an asking price is determined. Marketing plans are developed but an end date cannot be determined. The budget is somewhat open ended. The cost of ownership continues. The home or property must be kept in a constant state of readiness. If an offer does not come the price is lowered and the process restarts.

The value of a home is determined by a price a knowledgeable owner will accept and a knowledgeable buyer will offer when neither party is under duress. Value is related to the condition and location of the property. When a property will sell is determined by the asking price and if the market place knows it is available. Advertising is key to selling homes. A Realtor must devote a portion of their expected commission to advertising the property. Will marketing time be 60, 90 or 180 days? With limited resources the marketing budget must be spread over a longer period of time. In an auction sale marketing time is generally about six weeks. The budget can be spent in a relatively short period of time. Normally we advertise the reserve price which attracts more buyers. Buyers are attracted to an auction in hopes of getting a great buy. Many will come to watch the show. The excitement of an auction attracts buyers.

If you need your money now we can help. If a fellow Realtor has a client that this process could help we would be happy to work with them.

Check out our websites:

www.Gary-Barker.com
www.GaryBarkerAuctions.com

Your Invited

Times have been tough. The flow of retirees coming to our great city has been slow the past three and a half years. Many have theorized that most were waiting for their market to recover. Recent election results indicate that change will be slow and not sudden. These potential newcomers will still face higher property and income taxes in their home state. I feel most have been waiting to retire. Now facing much of the same for another four years they will be compelled to accept the new reality and sell their home and finally retire.

The good news is they can still get a bargain here. Interest rates are the lowest I have seen in my career. I believe we will see a steady flow of retirees moving south once again. So for any retirees or potential retirees who might read this I say,

"Your Invited"

Opportunity - Real Estate Auction

For Sellers

You decide what day you will receive an offer on your real estate. The auction process creates excitement and a sense of urgency. Buyers compete for your real estate. You sell "As is, where is". Your price will increase as the auction progresses. Selling conventionally, often you keep lowering your price until you receive a low ball offer. Remember there are only two reasons your property has not sold. Price and advertising. If the property is priced properly and people are aware, it will sell. Advertising for an auction is concentrated for a particular date. The day of the auction you can decide whether or not to accept the bid.

For Buyers

Typically an auctioneer will have information and disclosures available in a convenient location for your considerations. You get to experience how the rest of the market views the property. Appraised value is what a knowledgeable buyer will pay and a knowledgeable seller will accept when neither is under undue distress.  The other bidders are providing real testaments of value.  A live auction is an appraisal. A buyer will pay only what the property is worth on that day. Which may be less than others are asking.

For Brokers

The auction process lets you concentrate your efforts for a particular property for a date certain. It will expose more buyers to your listing. In this market how many sellers have not received an offer. In recent years prices have continued to lower. Selling now may be better off selling now rather than later. Bringing a buyer client to an auction may help you find them a great value and allow you to earn a commission. Most auctioneers will participate with Buyer's Agents. 

Experience a Real Estate Auction

I will be conducting a real estate auction on August 25 at 11:00 at Unit 10 Eastern Shore Townhouses. See my website www.GaryBarkerAuctions.com . It has the terms of sale and information about the property.

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Control the Timing for Your Home's Sale

Every homeowner can have all sorts of reasons for selling their house. Those in the boomer generation can be in one of the traditional phases of retirement (planning, transitioning, initiating) or perhaps in one of the newly-popular phases (postponing, rejecting).

For them and everyone else, the decision about whether to sell the house falls into one of two categories: those triggered by economic pressures -- or all the other reasons. In all cases, being in control of the timing of your house sale will put you in control of the process. That pays off.

Even if the money factor doesn’t rule, it’s vital to first do some hard-nosed dollars-and-cents calculations before putting your house on the market. Find out what a realistic listing price range will be. I or another experienced Realtor can be a major asset in establishing this: you can count on a complimentary consultation that will offer comparable current values for home sales.

Then consider current rental rates for a house like yours. Sometimes you will be surprised to find that the most beneficial course would be to rent your house for an interim period, especially in light of some evidence that a market rise is just beginning. When you are penciling out these factors, be sure to include realistic maintenance expenses and, if you are moving out of the area, property management fees. I can help here, too.

If financial pressure is the key motivating factor, make sure you have weighed the alternatives before sealing the decision to sell your house. If you haven’t done so already, find out if refinancing is an option. The first answer isn’t necessarily the final one: check with other financial sources as well as your current mortgage holder. Mortgage rates are lower than ever, and if unmanageable mortgage payments are at issue, this could be the most direct route to reducing that outflow and giving you time to sell on your own timetable.

Being methodical and patient when deciding about any house sale can make a big difference in the bottom line. I’m here to provide current information and guidance that will help make that possible.

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Gary Barker
PO Box 513
Bridgeton, NC 28519

Relocation : Lower Stress

As moving time approaches, most internal stress meters start twitching around the time we have to figure out how many cartons it’s going to take. A cross-town move is one thing -- sometimes you can even handle it yourself (with the help of bribable friends and relatives, of course).

But suppose you have just accepted a new job promotion in New Bern or are being stationed at Cherry Point. Of course, you’re immediately excited by the adventurous prospect of the summer’s relocation. But suppose your new position is located in a new zip code – and maybe even a new state. Your move up the professional ladder could also mean spending a lot more time and money on the move itself…and once here, the demands of your new position will double your need to pay attention to your career.

Fear not: your Realtor has seen how clients achieve a smooth transition with a minimum of stress. And we are happy to share some of the strategies that work best:

1. Lighten the load. The more belongings you and your movers have to pack, carry, and unpack again, the more costly the move will be. You can significantly lower the cost by getting rid of all the possessions you no longer use on a regular basis (there are probably more than you think!). Hold a yard sale, donate to charity, or just give those items to friends and family. Realtors are forever advising clients to de-clutter, but this holds doubly true when you are relocating. When you’re done, you’ll feel like a huge burden has been lifted from your shoulders! Stress meter: down.

2. Plan in advance. Real estate agents and relocation pros will always stress advance planning. As soon as possible, sit down and list the steps you need to take, then put them in order. You will find this gives you more time to make decisions, and more time to shop (and save money). For example, if you are buying a New Bern home and are working under a strict deadline, you could back yourself into a hurried decision instead of allowing time for your agent to expose you to all the additional options. By planning ahead -- meeting with me as far in advance as possible -- you can allot enough time to establish a relationship that allows your agent to introduce the full range of neighborhood options. Stress meter: down.

3. Consider using professionals. Before dismissing the idea of hiring professional movers because of cost, spend a day obtaining estimates from at least two or three companies, then compare with do-it-yourself moving costs. Be sure to check with the HR Department at work or with your Command to explore the compensation that may be provided for your move. You can often obtain a binding estimate that is valid for about 60 days. Compare those figures with the cost of renting a truck, driving the distance, and hiring moving help on one or both ends. Hiring professionals is a one-time cost that will relieve you of the hassle – not to mention the emotional toll – at a time when your attention should be directed to your profession.  Stress meter: down. 

The move to a new town can be anywhere from nerve-jangling to serene. If your future could include relocating to New Bern / Cherry Point, please feel free to contact me for some practical local advice. We have many excellent neighborhoods here in our area that I’d love you to see!


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Gary Barker
PO Box 513
Bridgeton, NC 28519

Open Houses and Feng Shui

Everybody has at least heard of it: Feng Shui -- the ancient Chinese art of living in harmony with your surroundings. Applying feng shui to make your open house a hit may seem like a stretch, but not after we’ve been introduced to how much common sense it makes. Homeowners who are open to taking advantage of every angle to sell their home can readily apply some feng shui principles to good effect. And they don’t have to become students of mysticism in the process!

Here are three feng shui principles that can improve your home before an open house:

1. Allow the free flow of energy

Feng shui imagines that the vital energy called "Chi" should flow freely through your home. You don’t have to believe in an invisible power to make use of this principle – just think of Chi as water. Stand at your front door and picture how water would flow from the entrance and room to room, then pick out the places where it would stagnate. Before your open house, clear out any furniture that might impede movement and the flow of the water (the Chi). As an agent, I can help you spot which pieces of furniture are so heavy or bulky that they block the natural “flow” of the house, improving every visitor’s walk-through in the process. One thing that I emphasize is creating a long diagonal from the front door or foyer. When ever possible allow guest to see through the foyer to the living space and to the outdoors via a window or door.

2. Pay attention to lighting

Lighting is an important part of feng shui: softening being the key theme. You should favor soft lights, which are understood to promote positive energies (think ‘cheerful moods’). When lighting a particular room, favor multiple light sources instead of single bright lights. For a daytime open house, allow sunlight to enter by making sure you unblock the windows and open blinds and curtains.

3. Remove clutter

Clutter represents darker, stagnant energy that will sap the positive energies of your home. This is one place where my experience and feng shui couldn’t be more in harmony: clutter can really impede the sale of an otherwise fine home. Remove clutter from view, storing it away during your open house or showing. I have ministorage space to store your clutter. Visit www.BradfordStorageCenter.com . Keep your decor to a minimum: the space will seem to open up (not to mention how it will free up the flow of Chi!).

You don’t have to become a feng shui master to take advantage of some of its simple design principles that can lead to a more successful open house. If you’re looking to sell a home and seek an agent with proven creative marketing techniques, contact me anytime. I will be honored to provide you with a complimentary consultation.


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252 635 1100
Gary Barker
PO Box 513
Bridgeton, NC 28519

Pre Listing Home Inspections

When the time nears to sell your home, one extra bit of due diligence can pay off in the most meaningful way: helping you to get the best return on your investment. It’s not a requirement that every listing agent may suggest, but particularly if yours is an older home, it is one you should consider: ordering an advance inspection.

Ordering your own advance inspection, like the proverbial ‘stitch in time,’ can alert you to deferred maintenance items that might conk out just as you’re preparing a big showing. Things do have a remarkable tendency to cause trouble at the most inconvenient time. Even more likely, maintenance items that you have long accepted but which might sour a buyer will be spotlighted early. Curing them before your buyer insists upon it prevents receiving demands for overly extensive cures for simple problems. A listing agent who knows that a home that has already passed an inspection also knows that it is that much more likely to sail through closing. It becomes a marketing asset.

A home inspector will typically examine areas of your home such as the roof, HVAC, plumbing, electrical and structure. Some will even conduct radon and lead paint tests, and do a check of your crawlspace or attic. If you elect for a home inspection prior to listing your home for sale, you will be able to confirm that major elements of the home are in saleable working order -- and can market the property as such. What potential buyer doesn’t want to hear that when considering writing an offer?

But most important from a listing agent’s point of view is the ability to avoid surprises in escrow. Most listing agents will be quick to agree that the more things that go wrong in a home inspection, the more antsy a buyer can become about the wisdom of the purchase. Otherwise perfect home-to-buyer matches can be lost over minor hitches discovered at the last minute. If a list of even small problems is lengthy, it might seem daunting enough to derail a sale. And any repair becomes more costly if a rush job is required.

If you’re preparing to sell your home, talk to your listing agent about the appropriateness of an advance home inspection. Numerous professionals are available who can help you determine if your home is ready to sell. The National Association of Home Inspectors (NAHI) has over 1,500 members -- and I will be happy to offer trustworthy local referrals anytime.


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252 635 1100
Gary Barker
PO Box 513
Bridgeton, NC 28519

Why Experts Urge Their “5-Year Rule”

Even some veteran renters are looking at today’s housing market and wondering whether it’s time to start a home search. With prices and mortgage rates as low as they are while rents continue to move higher, the numbers point to home ownership as an ever more obvious choice. 

But that’s just the quick, back-of the envelope budget equation: monthly rent vs. mortgage payment less tax savings. If this June finds you at the start of your own local home search, many financial advisors recommend that you also consider another rule of thumb – you should plan to stay in your new home for at least five years. I always recommended a three year rule throughout most of my career. But recently I have told buyer clients that if their plans did not call for holding for five years perhaps purchasing is not for them. With younger clients I often explain the advantages of keeping a first time buy with the idea of using as a rental when it is time to move up. Most people spend about a third of their take home pay on housing. Having a couple of paid for homes at age 60 makes for a solid retirement supplement.

Transaction costs are only one consideration that makes this a good idea. Here are some of the others why it’s prudent to think about the 5-year planning horizon as you conduct your home search:

Financial Safety - Homeowners need to have at least some extra liquidity: funds set aside as an emergency resource in the event of unforeseen loss of income. Affording a home and its maintenance costs should never jeopardize the financial health of your household. Liz Weston of MSN.com recently asked several experts for their calculations regarding home repairs. Their answer? Plan to spend at least an additional 1% of a homes’ value on maintenance each year.

Resale Value - The significant overhang in distressed homes will likely continue to exert at least some pressure on home values for the near future. If you need to sell your home two or three years down the road, you may come up short when all the moving, transaction, and other expenses are considered. It may be at least that long before the familiar growth in residential real estate value resumes.

Sanity – Studies have shown that moving is one of the top stresses in life (up there with death, divorce and illness). Personally, I think a well-planned move is a little less dire, but it is true that a happy homeowner is a settled homeowner. When you’re starting your home search, consider the changes coming to your family in the coming years: New baby? Child to college? If you know a move is eminent in the near future, consider finding a home with long-term rental value. Buy a home that can grow with you and you’ll find yourself much more financially secure…and sane!

The current low prices and 30-year fixed mortgage interest rates aren’t likely to last forever, and that old adage remains true: buy low, sell high. If you’re looking for a reason to start your home search in the area now, call me for a serious look at this June’s market.


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252 635 1100
Gary Barker
PO Box 513
Bridgeton, NC 28519

Making the Most of Your Virtual Tour

If a picture is worth a thousand words, how many words might a video’s flood of pictures be worth? The scientists at George Washington University approached the topic a few years ago in connection with real estate virtual tours. To those of us whose profession is helping our clients buy and sell homes in our area, their findings were --to say the least-- interesting:


They arrived at this conclusion: “Adding a virtual tour decreases the expected marketing time by about 20% and increases the expected sales price by about 2%."  I've put that in bold, but you get the idea: those are some serious stats. Since today’s fast-paced world rewards being able to get information quickly, it’s small wonder that video tours are so powerful. But to be useful, video tours need to be well executed. Local homeowners who are preparing for a video shoot can keep some general guidelines in mind. 


For openers, it’s important to remember that the camera will be acting as the eyes of a first-time visitor, so prepare for virtual tour s as you would for an open house. Remove all personal effects like toothbrushes and medications from bathroom countertops, kid's artwork from refrigerator doors, and collectibles throughout. Stage furniture to look inviting, making certain that rooms are not overfilled. Just as in an open house, clutter can give buyers the impression that the house is smaller than it actually is.


Today's high-quality, 360-degree digital imaging can capture even tiny details, so be certain to thoroughly clean everywhere. Pay particular attention to reflective surfaces like mirrors, windows and appliances – the tiniest mark on these can pick up light and dominate an otherwise perfect scene. 


Homes that are bright appear inviting and lead to greater buyer interest. Before shooting a virtual tour , be sure to replace any blown or dim light bulbs, clean all the windows, and open any window coverings to let in natural light. Don’t worry about too much light blinding the lens – the camera operator will ensure that doesn’t happen.


By keeping these ideas in mind, local homeowners can help insure that their virtual tour  encourages buyer interest -- hopefully leading to the kind of shorter listing time and higher selling prices the university study indicated.  That’s why I always strive to include some form of virtual or online tour for my listings. If you are thinking of offering your property this summer or fall, call me to discuss how we can make the most of the market. 

Economists Can’t Even Agree to Disagree

We keep you abreast of the economic news because it can affect the way a fair number of home buyers think about their family’s financial planning. And sooner or later, homes sales statistics reflect those effects.

But even when homes sales are improving, every once in a while it’s hilariously clear that the experts haven’t got much to tell us, no matter how hard they look at their data. But that doesn’t necessarily keep them from trying. This last week served up some classic examples.

It was the Wall Street Journal that broke the good news: “Housing Market Crawls Back,” was the headline in both the print and online editions. Although the mental image of anything that has to go “crawling” might not seem terribly upbeat, the sub-headline explained that home prices were “Stirring Hope for Recovery.”

But wipe that smile off your face! The first sentence began, “Housing prices across the U.S. fell in March…” A paragraph later we learned why that was good news. Because it “offered fresh evidence of a real-estate (sic) market on the mend.” In case that has you puzzled, the WSJ followed up with a couple of explanations.

First, prices “fell just 0.03% in March.” That should cheer everyone up, because that’s barely falling at all. Second, we should all be happy because “after adjusting for seasonal factors, they rose 0.09%” according to the widely-followed Case-Shiller Index.

In other words, the falling prices didn’t actually fall. They rose. After that clarification, the authors went on to quote a Columbia Business School professor, a forecasting firm and a real estate investor, all more or less saying the ‘floor was in’ and the overall market was on the rebound. There were ‘more offers than last year;’ ‘right around December buying activity really picked up;’ and ‘the worst’ was over.

Further clarifying, the article quoted Yale’s Robert Shiller, whose worries about the European crisis and government mortgage guarantees led him to say, “There is too much uncertainty.” His partner, Karl Case (remember the Case-Shiller Index?) explained further: “There is nothing but good news since April,” he clarified.

# # #

When homes sales statistics rise, the economic news is a confidence booster; when homes sales statistics fall, confidence lags. But for those of us who keep track of the latest news, last week it appeared as if they were doing both at the same time. Or maybe neither. Hard to tell.

Summing up -- it was a good week to read the sports section.

Keep Your Cool (& Save Energy, Too!)

For most of us, as soon as we feel the opening blast from the first truly hotl summer day, we automatically fire up the air conditioner. While that may seem like the only way to keep our property from broiling, later -- when we open up the next electric bill – we’re reminded once more that it isn't necessarily the most efficient. 

There can be longer-range benefits to battling the heat using a more energy-conscious strategy. If you later decide to put your property on the market, I find it is now common for prospective buyers to ask to see a year or two of utility bills – and you don’t want those to cool your prospects’ enthusiasm!

Here are a few ways property owners are using to keep their cool while conserving summer energy use:

Maintain Your Windows

Make sure that your windows operate properly. When they are closed air should not flow around them.This will save energy bills both in cooling and heating seasons. Windows that open easily make letting fresh air in on cool days possible. At our house we check the hourly forecast on the web and if it is calling for temps in the mid to low 70's we open the windows and enjoy the breeze.

Make the Most of Ceiling Fans

Take advantage of the enormous difference ceiling fans can make. While central air conditioning refrigerates and circulates air throughout the whole house, ceiling fans can be effective in individual areas – while drawing a fraction of an A/C’s electricity. The comfort factor added by stirring even warm air is instantly noticeable. When used in conjunction with room or central air conditioning, ceiling fans can provide comfort at temperatures set several degrees higher.

Program Your Thermostats

Programmable thermostats give you all-day control and major energy savings during those parts of the day and week when nobody’s at home. Many newer properties already feature programmable thermostats, but you can have one installed for a fraction of the price you inevitably pay for those lapses of attention older systems allow. All thermostats shut down the A/C when your home reaches the desired temperature, but programmables let you make smart changes in what and when (and can also be big heat-savers during winter months).

Taking these few steps can help save hundreds – even thousands – of dollars over the lifetime of your property. Now that the hot weather is on the way, feel free to contact me if you need a  vendor referral or for any other property-related questions I’ll be happy to help answer. 


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252 635 1100
Gary Barker
PO Box 513
Bridgeton, NC 28519

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!