Wilmington NC Real Estate Guide

Join Us!

34th  Riverfest Downtown on the Riverfront on October 5, 6, & 7 2012.

These are just some of the activities planned. Antique Car Show,Arts & Crafts,Beer Garden, Riverfest Concert Series
Classic Car Show,Family Entertainment Stage,Fireworks
Invasion of the Pirates Boat Floatilla,Kidz Zone
Live Bands on Main Stage,Pirates Children’s Treasure Hunt
Riverfest  T-Shirt and Souvenirs Sales,Run the River 8K Race
Stand-up Paddleboard,The Great Waiters Wine Race,
UPWA Wrestlers Show and More.

Food and Drink Vendors Enjoy a beautiful weekend on the waterfront.  If you see any homes that interest you, go to http://mobile.cbbaker.com and get all the details.  Call us with any questions.  910-202-3607 or bakerwayneassociates@ec.rr.com

• 
  http://www.wilmingtonriverfest.com/event-schedule-and-highlights/  Enjoy Hope to see you there!

• Don’t rush into the transaction. Buyers searching for homes in tight markets may feel pressured to make an immediate offer.
  Solution: Become familiar with the local market before making a purchase offer.

• Ask questions. First-time homebuyers, by definition, simply don’t have home buying experience. If you don’t know, ask. It may be uncomfortable, but let’s face it…a broker cannot answer an unasked question.

• There’s no such thing as the “ideal” house. Many buyers run themselves, not to mention their brokers, ragged as they repeatedly dismiss homes that meet most…but not all…of their requirements. A buyer who turns down a house that meets most, but not all, of their criteria may miss out on the best available property as well as good financing, should market conditions change.
  Solution: First-timers should definitely view many different homes as possible before making an offer. However, they should definitely not make an offer on the first home they like…but also, and more importantly, they should not hesitate to make an offer when they find a home they love.

• Don’t “Overbuy”. Many First-timers are routinely seduced into becoming “house poor”. That is, they spend so much for a home that they must forego annual vacations, restaurant meals and other forms of entertainment.
  Solution: Get Pre-approved with a lender. This can help determine a reasonable target price range and also identify the mortgage programs which can work best for you.

• Don’t wait for that 20% down. It’s an admirable goal, but it’s often years in the future for many first-time buyers. Instead — especially in markets with rising values — buy now with as little down as possible. Consider VA, FHA and other loans with private mortgage insurance (PMI).

• Be realistic. It’s tough to ignore a home’s curb appeal, but what about practical matters? Is there enough space? Is there off-street parking? Is the construction solid in good shape? What about maintenance costs? How far to work? It may seem like boring stuff…but it’s important none-the-less.

• Find out about zoning. Is the property next door zoned for a 24-hour service station? Fire station? Super Wal-Mart? Ask the broker about zoning for the property and the surrounding area. Find out before you buy. Otherwise you might be stuck with the home of your dreams…right next door to the new landfill.

• Don’t ignore representation. Chances are good that the seller has a broker. Who’s representing you?
  Solution: A buyer broker, an attorney, or both can give you needed representation at the bargaining table.

• Don’t Skip an inspection. A professional home inspection is simply a “must” whether you are buying an existing home or a new one. Speak with inspectors before you enter the marketplace to see how they work, what they cost, and what they recommend.

• Don’t under-estimate closing costs. Closing costs comprise much of the expense when purchasing a home. In many cases, the closing costs can be as much (if not higher) than the down payment amount being required.
  Solution: Examine your good faith estimate provided by your lender. Talk to people who have recently been through the buying process. Ask about fees you don’t understand. If some of the fees seem excessive, ask the lender if they can be waived (or at least reduced). Many lenders will work with you to secure your business. Just be realistic. If you feel that the lender is “taking advantage” of you, consult another lender.

Major tax law changes enacted In 1997 can mean huge tax savings if you play the game right. Here are seven smart ways you can use to take advantage of Uncle Sam’s latest tax breaks for homeowners:

1. Sell Your Current Home

Own and live in your home at least two of the last five years — then sell it. You’ll owe absolutely no tax on the profit (capital gains) for gains up to $500,000 (if married filing jointly) or $250,000 (if filing singly). There’s no longer a need to wait until you’re age 55 to sell or at any age to “roll over” your profit by buying a home that costs at least as much as the home you sold.

2. Retire On A Budget

Now when you move, you can replace your old home with one that fits your needs and your budget. Perhaps you want less house because your children have left the nest, or you’ve retired or there’s been a divorce. Under the new tax rules, you can quit worrying about paying a hefty capital gains tax when you scale back.

3. Relocate Without Renting

Before, people who moved to lower-cost-of-living areas had three choices: (1) convert the old home to a rental unit until moving back; (2) sell the old home and buy a “mansion” in the new town to defer paying capital gains tax; or (3) sell the old home, buy a similar-size home in the new town or rent a home and pay capital gains tax. Now, those who transfer can sell a home as often as once every two years and still claim the capital gains exemption on the profits. There is even a special exception to the two-year rule if you must sell your home due to a change in place of employment. This helps families that have frequent job-related moves to different parts of the country.

4. Take Your Freedom Overseas

If your family follows a job to a foreign land, you can sell your home here before you leave without rushing to purchase a new home immediately. Then, when you return, you can find a home at your convenience that fits your current needs, rather than trying to squeeze back into your old home before you can sell. If you have already been away, but lived in your old home for two of the last five years, you can still benefit from the tax law change if you sell now.

5. Selling Serially

Young families and those inclined toward fixing up can buy a home, improve it, and sell it again two years later at a profit without paying taxes on the gains. Repeating the cycle is now a good way for new homeowners to build equity toward the dream home they want. Also, investors can buy a property, rent it out, then convert it to their principal residence; live there for two years and then sell it, keeping the profit. However, depreciation allowed on the rental after May 6, 1997 will be taxed at 25%.

6. Vacation Villas

Capital gains taxes on summer homes, ski lodges and other second residences now can be avoided if you move in for two of the five years before the sale. First, claim tax-free profit when you sell your main home. Then move into your vacation home and make it your primary residence for at least two years. When you sell the vacation home, you can pocket those profits, too.

7. Try A Tax Deferred Exchange

Section 1031 of the Internal Revenue Code allows property owners to exchange one qualified property for another without owing any tax. Let’s say an investor has a property with several small rental units. The investor can exchange that multi-unit property for a large house, which should be rented out for at least a year. Then the investor can move into the house and convert it to a primary residence. That way, any gain from both the multi-unit property or the large house is tax free, except for rental depreciation after May 6, 1997. Note it is necessary for a qualified intermediary to handle a 1031 exchange transaction.

Here’s some helpful advice on record keeping: Even though most sellers can now buy up or buy down with little worry about tax implications, profits that exceed limits are taxable in the year of sale. And some states are continuing to tax capital gains from home sales. So don’t be tempted to throw away receipts you collected to help lower taxes on capital gains. Your old receipts can help serve as proof of capital repairs, pre-sale fix-ups and other expenditures that reduce your gains and lower your taxable profits.

We invite you to call us with any real estate questions.  If you would like to search all Wilmington NC real estate please visit www.cbbaker.com or on your mobile at http://mobile.cbbaker.com

Coldwell Banker Sea Coast Advantage does it again!  The Wilmington office on 1001 Military Cutoff just won a listing contest that was sponsored by Coldwell Banker Corporate.  The combined effort of all of our agents help win this honor.  The market has picked up and homes are selling.  The interest rate is below 4% so the buyers are starting to realize that now is a great time to buy.  To search all Wilmington NC real estate and to get seller and buyer advice, please visit www.cbbaker.com or on your phone mobile.cbbaker.com.   

From Corporate:

Dear Tim:

 Coldwell Banker Real Estate recently completed a national listing contest in response to the trend of increased buyer demand and dropping inventories.  Led largely by your company’s efforts, the program helped generate more than 72,000 new listings from April 16 through June 15, 2012.

 As  you may recall, we segmented the contest by office size and Coldwell Banker region and I am very pleased to let you know that your Coldwell Banker Advantage/Sea Coast Realty Wilmington office won the contest for all Coldwell Banker Southern Region offices with over 100 agents!  Thanks again for your dedication to the Coldwell Banker brand and continued good luck in 2012.

 Budge Huskey

President and Chief Operating Officer| Coldwell Banker Real Estate LLC

The Cape Fear Regional Community Development Corporation, a non-profit group affiliated with the NC Housing Finance Agency.  The NC HFA has money in the state’s Foreclosure Prevention Fund to help homeowners.  There is a loan program they have is  the Mortgage Payment Plan (MPP). This program helps homeowners in NC get caught up on their loan payments. 

There are qualifications and specifics that need to be addressed, but it might be worth your while to contact them to see if they can help. Income levels count in the loan process.  If you lost your job through no fault of your own, and are looking for a job now, this will count in your application process.  The loan does not have to be paid back if you have to sell your home at a loss.If you stay in your home for 5 years the loan is partially forgiven.  If you stay in your home 10 years, the loan is forgiven.  For more details and to see if you qualify, please call:

Cape Fear Regional Community Development Corporation

910-202-3490 or 910-762-7555

www.cfrcdc.org

We also have a Short Sale Certified Distressed Property Expert on our team if you have any questions.  Robin Jones – robinjones@ec.rr.com.

Good luck with the process.

Mortgage companies and banks are working overtime these days processing new mortgages – which raises an interesting question: Will they ever run out of money to lend?

The chances of that happening are virtually nil, thanks to a highly complex investment market for mortgages that has grown immensely since the 1970s. The key players in this game are “Fannie Mae” (Federal National Mortgage Association), “Ginnie Mae” (Government National Mortgage Association), and “Freddie Mac” (Federal Home Loan Mortgage Corp.). These agencies, along with several private companies, turn homeowners’ mortgages into investment vehicles for individuals, pension funds, insurance companies and other large institutions. Altogether, these investment groups make up the bulk of what is known as the “secondary market.”

When a bank or mortgage company writes a mortgage, the loan is lumped with other mortgages in a bundle (or “pool”) that is often sold to one of the agencies. With the sale of the mortgage, the bank or mortgage company again has money to lend to another home buyer.

Fannie Mae, Ginnie Mae, and Freddie Mac differ as to the type of mortgage bundle they buy and in the type of investment vehicle they use to attract investors. But the process they use is the same: Assembling large packages of mortgages and issuing securities backed by the mortgages.

While the original lending bank may no longer hold the mortgage it gave to a home buyer, it still services the loan. That means collecting the monthly payments, keeping escrow accounts to pay for insurance and property taxes, and – through the agencies or companies that issued mortgage-backed securities – paying investors.  Coldwell Banker Sea Coast Advantage is a full service real estate company with in house mortgage brokers from Alpha Mortgage.  Contact  us about all your Wilmington NC real estate needs.  Visit www.cbbaker.com to search or catch us on mobile at mobile.cbbaker.com

Let us help you with your relocation needs. Click on our relocation kit to get ideas to de-stress to make your move more enjoyable.  For more tips, please visit www.cbbaker.com to search all Wilmington NC real estate.  Enjoy….

Today’s housing market is challenging. That’s a given. It’s tough on buyers and sellers alike, who are anxious, not knowing where the real estate market is going next. They both want — and often need — a great deal whether they are buying or selling. Our current real estate market requires a special perspective no matter which side of the settlement table you are on. The rates inched up a bit last week, and the market has been hot.  If you have been waiting for interest rates to get better and home prices to fall, then you might get left out of the chance to buy.

Savvy buyers can readily find a lot to love in today’s market. Buyers feel the love from low interest rates and competitive prices to a huge selection of homes and incredible investment opportunities. Look past the national headlines — which are gloomy at best and don’t apply at worst — to our local real estate market. Here is where buyers benefit the most when the going is tough. Unless, of course, you wait and miss out.

Smart sellers, on the other hand, can benefit from a buyer’s market as well. Successful home sellers in today’s market know they must price their home correctly and be flexible. Providing a buyer with a great deal on their home opens the door for sellers to move on to their own next step — whether it’s moving up, downsizing or relocating. Smart sellers also know what they may give up on price, they can make up — and then some — on their next home purchase. That’s another bright side of today’s real estate market.

Take a moment to learn the seven reasons why it’s a great time to buy a home. And, be sure to contact us when you’re ready to make a move.

1. Loving Low Interest Rates
Historically low interest rates continue to allow home buyers to afford more home for their money. Lower interest rates reduce your monthly payment and increase your buying power. Locking in at a low, fixed-interest rate means your monthly loan payment will never change over the course of your loan.

2. Embracing Investment Property
Even if you’re not in the market to buy a primary residence, you should take a look at the properties available for sale as investments. With ever-increasing numbers of families looking to rent, it’s an opportune time to invest in a rental property. Being a landlord can be a rewarding experience when you find the perfect property.

3. Attractive Home Prices
Home prices have never looked better! Many sellers are motivated to get their homes sold and are pricing accordingly. Don’t be afraid to make an offer on a home or to work with us to negotiate a great price on a great home.

4. Wondrous Selection Of Homes
If your “needs and wants list” of home features can’t be contained, now is the time to be looking at homes. The selection available in our area is outstanding. No matter what your budget, family size or life stage, we can help you find the home that fits.

5. Digging Distressed Properties
Others’ foreclosures, bank-owned and short-sale properties can be the key to your next home. Don’t overlook distressed properties, as you may uncover a hidden gem priced right so you can make upgrades and improvements without breaking your budget. Distressed doesn’t always mean a steal, but it can often lead to a great deal.

6. Engaging Your Financial Options
If you’re tired of seeing your savings yo-yo in the volatile stock market, real estate is a great asset balancer. Consult your financial professional to make sure you have the savings to spare. When you’re ready, we can help you find great investment property or a home to buy for all-cash if you desire.

7. Winning Over Motivated Sellers
Successful sellers keep the market going. Homeowners are eager to sell their homes to buyers who make realistic offers. It’s a crowded market for sellers, but the ones who are motivated will offer a great price and may throw in incentives (e.g., helping with closing costs, etc.) or much-valued sweeteners — such as a home warranty — that are as good as cash.

8. Professional Partner
When you’re buying or selling a home, it’s difficult to go it alone. We can help you every step of the way when it comes to getting a great deal on a new home. Feel free to contact us anytime you’re ready to jump into our real estate market to buy or sell. We’d love to work with you!