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!

If you are selling an above-average-price property in an upscale neighborhood, you know your home is unique. You expect an upscale property to be marketed with the same professionalism you demand in every aspect of your life. That’s where our experience selling homes like yours really pays off.

Keep in mind, buyers who can afford your home lead busy lives like you and look for a hassle-free sale. Move-up buyers don’t need to buy now, so they wait and watch for that just-right home. It might be yours.

Unfortunately, even sophisticated homeowners sometimes make mistakes when they go to sell their upscale homes, netting less than the top-dollar price it’s worth. Or worse, the home just doesn’t sell at all.

Here are seven common pitfalls to avoid:

1. Underestimating The Competition in the Wilmington NC real estate market

Even though your property may be one-of-a-kind, there are other homes on the market being shown to the same potential buyers. Before you list your home, we’ll give you an “armchair tour” of comparable properties listed for sale in your price range. We’ll share our inside observations on how each home compares to yours and what special features stand out.

2. Overestimating The Value

When we tour the competition, you’ll notice how similar homes are priced. Features of interest to today’s buyers include location, house design and size, privacy afforded by the lot and acreage, special amenities, type of community, and quality of local schools and facilities. Together, we’ll help position your home at the right price. By avoiding the over-pricing trap — which often results in repeated price reductions making the property seem distressed — we’ll save time and net the full value of your home.

3. Relying On Location

Homes in the higher price ranges need to look magazine-perfect when shown to potential buyers. Today’s market demands that everything — doors to floors, fixtures to walls — be sparkling clean. Even minor faults loom large in what is expected to be a perfect home. In short, fix up, repair and polish like never before.

4. Over-Improving

Also, avoid over-individualizing the house or grounds. People tend to buy homes they see as an image of themselves. A home that’s too individualized with strong, personalized decorating won’t sell quickly. Avoid dramatic custom flourishes that may not suit many other people. Some buyers will mentally calculate the cost of removing the customization and deduct the cost from their offer.

Although you want your home to look its best, spending thousands of dollars to redecorate will not likely help it sell at a higher price — it may sell more quickly, though.

5. Making Your Own Marketing Decisions

The marketing plan for your home needs to reach out to the right potential buyers. We offer a first-class marketing campaign that requires careful advance planning to allow time for reserving appropriate advertising space, top-notch photography, brochure production, even special events, such as a top-broker open house.

Many homeowners overestimate the value of one-shot marketing such as newspaper or TV spot ads. What typically works better is advertising with a longer “shelf life,” in upscale publications, for example, where ads are directed at an ideal niche.

Let us help you decide whether your house could benefit from an open house or would be better shown by appointment only. Yours is not a home for curious, unqualified walk-ins.

6. Playing Hard To Get

No home sells sight unseen. Working together, we can create a plan to show the house to qualified prospects without disturbing your schedule. Details, such as the security system or guard dogs, may need to be worked out.

Rest assured, all buyers will be financially qualified, perhaps requiring an approval letter from an attorney or banker, before we will bring them to see your property.

7. Being Inflexible

You have a unique home, and you’re looking for a unique buyer. Chances are that buyer will have special needs and concerns. The most likely buyer will probably need to sell a current home to buy yours. Flexible terms, possibly including some extra time to settle on the old home, will help sell your home quickly at the right price.

Thinking of selling within the next 6 months? Call us to help get you started.  910-202-3607 or kaybaker@ec.rr.com

You can start your search for a contractor by talking to friends, family members or neighbors who have used a contractor recently. Ask if they would recommend the person or firm they used. To verify each contractor’s reputation, ask these questions:

• Did the contractor begin and end on time?
• Did the contractor try to minimize disruption of your family? How?
• How do you score the contractor on both technical expertise and finished appearance of the project?
• Did the contractor work neatly and clean up at the end of each workday?

Once you have a list of prospective contractors, do some research on your project by reading do-it-yourself magazines and manuals. You don’t need to know how to do the job yourself, you just need an idea of the work involved.

Now it’s time to ask at least three contractors to bid on your project. As you talk through the proposed improvement, ask what special or unexpected problems could arise and ask how the contractor would resolve them. If a contractor is vague or dismisses your question, scratch him off your list.

When adding rooms, rearranging the kitchen, moving walls or performing other major improvements, spend the extra money for a design professional. Be sure anyone who works on your house is licensed and insured.

Once you receive the bids, review them carefully. Don’t automatically go with the lowest bidder. You may get a better job or the contractor may use better materials when you pay a little more.

Write the contract to include exactly what the project will entail, how much it will cost, and at what points payments will be made; how changes in plans will be handled; the quality of materials to be used; the beginning and ending dates and sanctions for tardiness.

Keep on top of the project, checking progress and the quality of workmanship. If you are unhappy with something, talk to the contractor immediately. Make sure all changes from the original contract are made in writing and keep in mind that changes may affect the schedule and delay completion.

If possible, have your chosen contractor do a small job first, so you can learn first-hand the quality of work and what it’s like to have that person temporarily take over a part of your home.

We have concierge list of contractors in the Wilmington NC area that we would be glad to share with you.  Just email me at kaybaker@ec.rr.com and we will get it right out to you.

Have fun with your project!

Crawl The Walls

Start going to the right when you enter the house, and keep on following to the right. You will check each wall that way. Do the same on every floor. Look for settlement cracks, separating joints, defective plaster or other signs of stress or damage. Check wallpapered areas for crinkling or gathering, which may mean walls are settling or shifting.

Look For Leaks

Loose or wrinkled wallpaper could indicate a water leak somewhere. Look for water stains on the ceiling and walls. You may have to look closely — bring a flashlight — in case they have been painted over or repaired.Spend time in the bathrooms and in every area with pipes, checking for leaks and drips. Also, run the shower and basin, then flush the toilet to check water pressure. Look for cracked or loose tiles and missing grout or mildew stains on the walls or floor, which could indicate a behind-the-wall leak.

Plug Into The Electrical System

Check every electric socket or outlet. Use a plug-in night light and turn every switch on and off. Look for extension cords and multiple plugs in sockets, which could mean insufficient or poorly placed sockets. Also check every appliance to be sure it works well.

Focus On Condition

Open and close every door and window. Look and listen for squeaking, sticking, or a tendency to close on their own. Check for evidence of shifting or settling around the front stoop, chimney and walks, and places where the driveway and the fence meet the house. Also check the deck for sturdiness and look for rotted wood. Go into the garage and check the walls, floors and doors — inside and out.

Pay Attention To Pests

Look for termites and ants. Especially look along the foundation, around doors and entry points of wiring and pipes. Check the grading of the yard to be sure water runs away from the house.If everything looks good to you and you decide to purchase the house, be sure to require a home inspection by a professional inspector before settlement. You will want a professional who will crawl into the crawl space, climb onto the roof and poke around with a flashlight in the attic. Your professional should also carefully inspect the major systems — electrical, gas, plumbing and heating/air conditioning.

You can and should insist on a written report detailing what the problems are with the house, how important each one is. You may have to consult a contractor to estimate repair costs on any problems found.

We have a list of local service providers that will help you with your inspections. View here….

For all your Wilmington NC real estate needs,  please visit www.cbbaker.com

Put Your Home’s Equity To Work

With Six Savvy Strategies

Do you have idle equity sitting in your home that could be building wealth instead? One of the great aspects of homeownership is that you increase your wealth every month by building equity in your home and reducing your tax bill at the same time.

After you’ve been in your home a few years, you may have some equity that you could put to work for you. Even if the property has appreciated by just a few percentage points per year, significant equity can build up fairly quickly. Just be sure you retain enough equity that you’ll be able to pay a real estate agent’s commission when you sell the home.

Home equity loans are the most common means of tapping a home’s value. In states where home equity loans are not allowed, however, you can still put your home’s value to work by refinancing it for more than you currently owe–a “cash out” refinancing.

The first way most homeowners think of using their equity is to pay off high-interest debt. That’s one popular option, but you could also invest that equity in other ways. Here are six more ways to put your equity to work for you.

1. Trade Up

Using your equity as a down payment for a larger home could make financial sense. If you’re in a $200,000 home now and it appreciates by 5% each year, your gain is $10,000 for the first year. In five years, that home would be worth $255,256. But in a $275,000 home, that same 5% growth would be $13,750 for the first year. After five years, the more-expensive home would be worth $350,977 — nearly $100,000 more than the less-expensive home.

Of course, you may not be able to count on 5% appreciation every year. It could be higher or lower, depending on the state of the economy and market conditions. Not to worry, though. Even 2% appreciation will still add up over time.

Using additional equity to trade up will allow you to put a significant amount of money down on your next home. That could allow you to own a home you never could afford before.

2. Downsize

Another way to use your equity is to scale down. With the recent changes in tax laws, homeowners may sell a home every two years and walk away with tax-free profits up to $250,000 (for singles) and $500,000 (for married couples). By scaling down, you can purchase a smaller, less-expensive primary dwelling, and use the extra cash for investments, debt reduction or even purchasing an investment property.

3. Second Home

The real estate market has been fueled during the past few years by retiring baby boomers purchasing second homes. Maybe now is the time to purchase that home on the beach, at the lake or in the mountains. We can refer you to a knowledgeable agent in a resort area to help you with this move.

If you know you’re retiring to a particular area in the next few years, study that market now. You may want to buy the home now while prices are still affordable. If you do, you could rent the home during the peak vacation season. Many second homeowners discover they can just about cover their annual property expenses by renting out during peak season.

4. Investment Property

While the stock market often bounces up and down, many investors feel comfortable with the security of real estate. Not everyone has extra money to play the stock market profitably, but landlords can enjoy income every month. The secret is selecting the right property and finding expert property management if you don’t want to manage the property yourself. We can help with both these issues.

Some buyers have found it beneficial to purchase a property in the area where their college-age children are going to school. Their child can help manage the units and share the housing with other students to defray costs. The young adults learn responsibility and property management skills, and you have a live-in manager to watch over your investment.

5. Shared Equity

Another way to put your idle equity to work is to lend it to an adult child as a down payment for his or her first home. Some parents maintain a co-ownership interest while the young adult makes the mortgage payments. At the time of the sale, the equity is then split between the two. This is called a shared-equity arrangement.

6. Remodel

If you really like where you’re living, but desire a few more amenities, consider taking cash out for remodeling or adding to your current home. The interest paid on some home equity loans is tax deductible, just as it is with your first trust. Give us a call to find out what financing options suit your situation best.

Call us, we are the experts with expert partners in mortgage and everything real estate related. 800-497-7325-3607 or kaybaker@ec.rr.com . Sign up for our newsletters and our weekly TGIF Scoop on everything Wilmington NC!

Studebaker John

The 16th annual Blues Festival is this weekend.  Everywhere around town, the Blues shall be heard… The kick off party is on the Henrietta III at 7:30pm Friday July 29.  There will be music on the dock by Rick Toby.  Catered heavy appetizer buffet, cash bar and a 2-hour sunset cruise along the historic Cape Fear River.  Tickets are available at Wilmingtontickets. Three different Blues Bands will perform on the cruise.  Post Cruise party at Rusty Nail.   For a full list of events and bands please visit www. capefearblues.org.  The weekend will be fun and eventful. Talent everywhere.

Studebaker John and the Hawks… listen here….

While you are in town, if you see real estate that interests you, let us know.  On your phone text 14059 to 44133 to search Wilmington NC real estate or go to www.cbbaker.com.  Have fun!

According to Mortgage Match new rules will make it mandatory for Mortgage Lenders to give mortgage applicants credit scores and credit report factors used during the loan application process.  If a Mortgage Lender quotes an applicant an interest rate and points that the loan will cost and there is a difference between interest rate and costs quoted to other applicants the loan officers will be required by Federal law as of July 21 to:

“–Tell you that you received a less favorable offer because of negative information in your credit bureau files;

–Provide you the actual credit scores used for your rate quote;

–Disclose the name and contact information of the credit reporting company that supplied the scores that led to your less favorable quote;

–Provide consumer education materials explaining credit scores, how they are used, and how your own score ranks against other applicants, plus the credit file factors that may have depressed your score. For example, if maxed-out credit cards and late payments are in your files, they could play significant roles in lowering your credit scores” per Mortgage Match.

The applicants will be able to have access to their credit report and the whole loan application process will become more transparent for the applicant.  Consumer education materials will be available for the applicant, so they can see why they were turned down, or received a higher interest rate.  They will have the right to obtain a  free credit report if turned down for the loan.

They provide another investment that includes a mortgage-interest tax deduction.

Whether you rent it out or not, you can deduct the mortgage interest as long as you use the home more than 14 days or more than 10% of the number of days the home is rented annually at a fair rental, whichever is longer.

Qualified second homes include houses, condominiums, cooperatives, mobile homes, house trailers, boats or similar properties that have sleeping, cooking and toilet facilities.

Here’s an interesting twist on the mortgage interest deduction: If you take out a home equity loan on your first home and use the funds to acquire your second home, the interest on the home equity loan is also deductible. That’s three mortgage interest deductions off your tax return!

Consult IRS Publication 936 for a complete discussion of how mortgage interest for a second home is deductible.

You can purchase your future retirement home in Wilmington NC now, at today’s prices.

Though your second home may be a vacation home now, if you buy right you can convert it into your principal residence later.

They can produce their own income.

Renting out a second home occasionally or often can help you pay for the property with OPM (other people’s money). Check with your tax advisor about how much of the upkeep and management expenses are deductible against your income.

Buying Tips From The Experts

Buy something within a reasonable distance.

Be sure you can get to your vacation home in a short amount of time. Before you make a final decision, travel the distance on a typical Friday afternoon to see whether the drive will be too much to deal with after a long work week.

Rent in the area several times before you buy.

If you really like a particular area, check it out during different seasons. This way you get to know the climate, people, pests, traffic patterns and other regional particulars first-hand.

Consult other owners.

Check with owners of nearby properties about public and private facilities, special maintenance required due to location or weather, the social climate, local development plans and prevalence of crime. Learning about the lifestyle of the area may help you narrow down your choices.

Think home first, investment second.

Although you may be able to generate rental income from your vacation home, it may not cover your ownership costs. (If you want to try real estate investments, give us a call to look at properties in the Wilmington NC  local area.)

Consider different styles of properties in a vacation area.

To minimize upkeep and have a more secure environment, a condo may be preferable to a single-family home. If you plan on converting it to a retirement home, consider what type of home you’ll want as a full-time residence.

Here are some of the current Wilmington NC real waterfront/waterview real estate  in our area.

Priced from 100,000 – 200,000  Click here

Priced from 200,000- 400,000  Click here

Priced from 400,00 -600,000  Click here

Priced from 600,000 – Click here

To search all properties please visit www.cbbaker.com

According to a post on Mothers Day History by 123holiday, contrary to popular belief, Mother’s Day was was not made up by Hallmark.  The annual spring festival the Greeks dedicated to Rhea, the mother of many deities, and to the offerings ancient Romans made to their Great Mother of Gods, Cybele. Christians celebrated this festival on the fourth Sunday in Lent in honor of Mary, mother of Christ. In England this holiday was expanded to include all mothers and was called Mothering Sunday.

In the United States, Mother’s Day started nearly 150 years ago, when Anna Jarvis, an Appalachian homemaker, organized a day to raise awareness of poor health conditions in her community, a cause she believed would be best advocated by mothers. She called it “Mother’s Work Day.”

To all the mothers everywhere a blessed Mothers Day to you.

A mother is a person who seeing there are only four pieces of pie for five people, promptly announces she never did care for pie.  ~Tenneva Jordan

Hundreds of dewdrops to greet the dawn,
Hundreds of bees in the purple clover,
Hundreds of butterflies on the lawn,
But only one mother the wide world over.
~George Cooper

Being a full-time mother is one of the highest salaried jobs… since the payment is pure love.  ~Mildred B. Vermont

The sweetest sounds to mortals given
Are heard in Mother, Home, and Heaven.
~William Goldsmith Brown

If you have a mom, there is nowhere you are likely to go where a prayer has not already been.