Many folks (myself included) like to start a new endeavor by gathering information.  I will usually start with the internet.  This allows me to get enough of my facts together so I don't sound like an idiot when I actually speak to people about the subject!   

Eventually, armed with my "internet education" on the subject, I will consult with friends or aquaintences and then eventually professionals that can steer me in the right direction.  Perhaps I will even need to hire someone to assist me in getting (whatever it is I am hoping to accomplish) started and/ or completed.

The problem is, often I find the information is not quite right nor is it always the same in various parts of the country from which the information was originated.  National statistics or data can skew my perception of what the trends are in my area. This holds especially true for Wilmington NC Real Estate. 

All real estate markets are local in nature.  We can see that here in Wilmington NC where value trends, client needs, employment opportunities, and recreation are very different than nearby markets like Jacksonville, NC or Charlotte, NC.

Hiring a good local agent is the best advice when it comes to finding the right property for you.  When shopping for real estate, we all want to find the property we are looking for, greatly shorten the learning curve about the area, reduce risk, whatch out for pitfalls, and save money.  Driving around in a car, wasting gas and calling every listing agent on the signs can help you get familiar with the area, but it is not an efficient use of time or money.

If you commit to hiring an experienced Buyer's Agent, that agent will commit thier time and valuable resources to you so that you find the right area and home while working efficently, safely, economically, and with a greatly reduced risk of purchasing a problem home. Most of the time, you need not compensate that agent as the listing agents generally provide a commission to the Buyers Agent. That is pretty much a no brainer.

Now, if I could just find an auto mechanic that does not directly charge me for the work he does...

The Wilmington NC Real Estate market is picking up due to many reasons--one of which is the tax credit(s) being offered. I found a good article on some facts concerning the home buyer tax credit and thought I would share. This is from www.Realtor.org ...

Daily Real Estate News  |  January 22, 2010  | 

6 Surprising Facts About the Buyer Tax Credit
The homebuyer tax credit is not as simple or straightforward as you might think. Here are some nuances that will affect homebuyers who plan to use it.

• To qualify for the move-up tax credit, a home owner must have occupied the same principal residence for five of the last eight years consecutively.
• Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them.
• Buyers who claim the credit in 2009 can’t file electronically because the Internal Revenue Service hasn’t put the required forms on line. The wait for a refund is three or four months.
• The home can be a mobile home or travel trailer that is fixed to land owned or leased by the home owner. A mobile home or travel trailer that is actually mobile doesn’t qualify.
• The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.
• A buyer who earns no taxable income or doesn’t owe any federal income tax can qualify for the tax credit and file a tax return just to claim it.

Source: Bankrate.com, Marcie Geffner (01/21/2010)

The spring buying season in Wilmington, NC is coming early this year.  Buyers are already hitting the streets and websites looking for homes as the deadline for the two Home Buyer Tax Credits looms on the horizon.

"I expect the buying season will be moved up," says Jim Gillespie, CEO of Coldwell Banker. Sales "are going to take off in February and March and really take off in April. ... My concern is that the move-up buyer hasn't thought what they need to do. Their window is really short. They have to coordinate closing dates."

There is risk in waiting until the last minute to contract on a property.  Inspections may turn up problems that cannot be overcome resulting in a terminated contract and then they buyer is past the tax credit deadline.  Additionally, the average time needed to close is now 45 days though some lenders can close it faster.  A good local lender like Alpha Mortage can speed up the process if the buyers have thier documents in order.

Many websites like www.HomeSearchWilmington.com offer home buyers acces to the Wilmington MLS system to search for properties.  Once they set up the search criteria, they will be notified of any new properties that hit the market right away.  This helps them locate the very best properties first.  Other websites like www.WilmingtonAreaProperties.com can provide additional local Wilmington NC information.

Existing home sales were up 7.4% and are due in large part to the rush last year of home buyers wanting to take advantage of the First Time Home Buyer Tax Credit.

Here is a link to the National Association of Realtors' chief economist Lawrence Yun and his thoughts on this:

Although there may be some more slight adjustments in pricing before appreciation is evident, the excellent interest rates and affordability of homes will greatly offset any minor adjustments down in pricing.  We are very conservative when it comes to advising our clients but we feel this is truly a great time to purchase residential properties in the Wilmington NC area for personal use or investments. Wilmington NC real estate information is available on this website or feel free to call us for more specific data.

Here we are, two weeks before Christmas, and many people are asking if the Home Buyer Tax Credit, now extended and expanded, has helped to revive the real estate market.

The Home Buyer Tax Credit was due to expire at the end of November so September and October saw what seems was a "rush" to get in on the action. Even since the Tax Credit inception, sales have posted increasing numbers for the last 9 months.  October 2009 numbers show an increase of 10% over September 2009.  October 2009 was over 24% higher than October of 2008.  That is substantial!

On November 6, 2009, the Tax Credit was extended to April 30, 2010 or at least have a valid contract in place by that date and close by June 30, 2010.  The Tax Credit was also expanded to include qualifying repeat buyers.  These buyers could also realize a tax credit up to $6500.  Since the primary numbers of growth we have seen thus far were from First Time Homebuyers, this "Repeat Home Buyer Tax credit" will hopefully encourage the next higher tier of homes to move in stronger numbers. 

Since the pressure is off the deadline, the seasonal slow down is expected to resume for now and into January. Then we expect a good bit of home purchasing action into the end of the first quarter and second quarter of 2010. 

One last consideration-mortgage rates.  Now at levels below 5%, this will not last forever.  Interest rates are expected to jump in February and March and that will reduce the affordability of homes.

I recommend not waiting until the last minute to take advantage of this unique opportunity.  Too many things can go wrong in a transation.  If a deal falls apart at the last minute, it may be too late to find another home and close in time.  Rates can go up, opportunities go away.  Start getting financing in order and begin shopping now so you can be ahead of the game and not lose out!

I wanted to share some basics on the two tax credits being offered for a limited time:

• First Time Home Buyer Tax Credit:  this is basically the same as it was but the income limits have been expanded to $125,000 for individuals and $225,000 for married couples filing jointly. This expires April 30, 2010.

• Existing Home Owner Tax Credit:  

To be able to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.  The credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.

This tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500 and applies only to homes priced at $800,000 or less.

The dateline for the this credit is it's available for homes purchased after November 6, 2009 and on or before April 30, 2010. But, in cases where a legal sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.

Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Visit www.FederalHousingTaxCredit.com for more details and for the information source for this article.

The Worker, Homeownership, and Business Assistance Act of 2009, signed into law on Nov. 6, 2009, includes tax credit benefits for many homebuyers. Here are some of the details worth noting:

• First-time homebuyers: These are considered as buyers who have not owned a home in the past 3 years, may qualify for a tax credit of up to $8,000.

• Existing homeowners:  If you have owned and occupied the same principal residence for a period of five consecutive years during the last eight years, may qualify for a tax credit of up to $6,500, after buying a new principal residence.

• Homebuyers must enter into a written legitimate purchase contract by April 30th, 2010, and close on the purchase no later than June 30th, 2010.

• Maximum annual income limits: are $125,000 for individuals and $225,000 for joint filers.

• $800,000: Maximum Home Purchase Price

Although some details are yet to be worked out, key senators reached an agreement to extend and expand the tax credit available to those purchasing a home for 7 months.  Not only does the plan extend the current credit to first time home buyers, it will also be available to those "move up" buyers that have owned thier current home for at least 5 years.  The amount of credit for existing homeowners will be up to $6500.00.

Income limitations will rise with both credits to $125,000 for individuals and $225,000 for couples. Contracts will have to be signed by April 30, 2010 and closed by June 30, 2010.

This extension is expected to help new and existing home sales as well as to soak up some of the foreclosures which have been diluting home values.

Final revisions should be completed by next week and it should see a fairly smooth completion and enactment could come as early as next week.

Questions and Answers on Home Inspections

We get a lot of questions about home inspections and are they really worth several hundred dollars?  I took the following from the NC Real Estate Commission's required forms and posted here for easy access to you all.  This is required reading for anyone purchasing a home.

"For most persons, purchasing a home is the largest investment they will ever make. It is no wonder then that many homebuyers employ professionals to inspect the structural and mechanical systems of the home and report to them on their condition. Sometimes sellers also employ Home Inspectors to alert them to problems with their homes which could arise later in the transaction. But normally Home Inspectors are employed by buyers. For this reason, this brochure is written from the viewpoint of the potential homebuyer.

This brochure is a joint publication of the North Carolina Home Inspector Licensure Board and the North Carolina Real Estate Commission designed to give consumers a better understanding of the home inspection process. What a home inspection is, who can perform an inspection and what to expect. If you have further questions regarding home inspections and Home Inspectors, you should contact the North Carolina Home Inspector Licensure Board, 322 Chapanoke Road, Suite 200, Raleigh, NC 27603, Phone 919/662-4480.

Questions

• What is a home inspection?
• Can anyone perform a home inspection?
• Why should I have the home inspected?
• In my home purchase I have chosen to sign the standard Offer to Purchase and Contract* form which many real estate and legal professionals use. It states that I have the right to have the home inspected and the right to request that the seller repair identified problems with the home. Will the home inspection identify all of these problems?
• How do I request a home inspection, and who will pay for it?
• Should I be present when the home inspection is performed?
• Are all inspection reports the same? What should I do if I feel something has been missed on the inspection?
• If, following the home inspection, the seller repairs an item found in the home inspection, may I have the Home Inspector perform a "re-inspection"?

Answers

What is a home inspection?

It is an evaluation of the visible and accessible systems and components of a home (plumbing system, roof, etc.) and is intended to give the client (usually a homebuyer) a better understanding of their condition. It is also important to know what a home inspection is not! It is not an appraisal of the property's value; nor should you expect it to address the cost of repairs. It does not guarantee that the home complies with local building codes (which are subject to periodic change) or protect you in the event an item inspected fails in the future. [Note: Warranties can be purchased to cover many items.] Nor should it be considered a "technically exhaustive" evaluation, but rather an evaluation of the property on the day it is inspected, taking into consideration normal wear and tear.

Can anyone perform a home inspection?

No. Only persons licensed by the North Carolina Home Inspector Licensure Board are permitted to perform home inspections for compensation. To qualify for licensure, they must satisfy certain education and experience requirements and pass a state licensing examination. Their inspections must be conducted in accordance with the Board's Standards of Practice and Code of Ethics.

Why should I have the home inspected?

Most homebuyers lack the knowledge, skill and emotional detachment needed to inspect homes themselves. By using the services of a licensed Home Inspector, they can gain a better understanding of the condition of the property, especially whether any items do not "function as intended"or "adversely affect the habitability of the dwelling"or "warrant further investigation" by a person who specializes in the item in question.

In my home purchase I have chosen to sign the standard Offer to Purchase and Contract* form which many real estate and legal professionals use. It states that I have the right to have the home inspected and the right to request that the seller repair identified problems with the home Will the home inspection identify all of these problems?

*Jointly approved and copyrighted by the North Carolina Association of REALTORS® and the North Carolina Bar Association.

Yes and No. Home Inspectors typically evaluate structural components (floors, walls, roofs, chimneys, foundations, etc.), mechanical systems (plumbing, electrical, heating/air conditioning), installed appliances and other major components of the property. The Home Inspector Licensure Board's Standards of Practice do not require Home Inspectors to report on: wood-destroying insects, environmental contamination, pools and spas, detached structures and certain other items listed in the Offer to Purchase and Contract form. Always ask the Home Inspector if he covers all the things which are important to you. If not, it is your responsibility to arrange for an inspection of these items by the appropriate professionals. For a description of the services to be provided by the Home Inspector (and their cost), you should read carefully the written contract which the Home Inspector must give you and which you must sign before the Home Inspection can be performed.

How do I request a home inspection, and who will pay for it?

You can arrange for the home inspection or ask your real estate agent to assist you. Unless you otherwise agree, you will be responsible for payment of the home inspection and any subsequent inspections. If the inspection is to be performed after you have signed the purchase contract, be sure to schedule the inspection as soon as possible to allow adequate time for any repairs to be performed.

Should I be present when the home inspection is performed?

Whenever possible, you should be present. The inspector can review with you the results of the inspection and point out any problems found. Usually the inspection of the home can be completed in two to three hours (the time can vary depending upon the size and age of the dwelling). The Home Inspector must give you a written report of the home inspection within three business days after the inspection is performed (unless otherwise stated in your contract with the Home Inspector). The home inspection report is your property. The Home Inspector may only give it to you and may not share it with other persons without your permission.

Are all inspection reports the same?

No. While the Home Inspector Licensure Board has established a minimum requirement for report-writing, reports can vary greatly. They can range from a "checklist" of the systems and components to a full narrative evaluation or any combination of the two. Home Inspectors are required to give you a written "Summary" of their inspection identifying any system or component that does not function as intended, or adversely affects the habitability of the dwelling, or appears to warrant further investigation by a specialist. The summary does not necessarily include all items that have been found to be defective or deficient. Therefore, do not read only the summary. Carefully read and understand the entire home inspection report.

What should I do if I feel something has been missed on the inspection?

Before any repairs are made (except emergency repairs), call the inspector or inspection company to discuss the problem. Many times a "trip charge" can be saved by explaining the problem to the inspector who can answer the question over the telephone. This also gives the inspector a chance to promptly handle any problems that may have been overlooked in the inspection.

If, following the home inspection, the seller repairs an item found in the home inspection, may I have the Home Inspector perform a "re-inspection"?

Yes. Some repairs may not be as straightforward as they might seem. The inspector may be able to help you evaluate the repair, but you should be aware that the re-inspection is not a warranty of the repairs that have been made. Some Home Inspectors charge a fee for re-inspections."

In our area, we have several very good licensed home inspectors available.  We have been recommending Sims Home Inspections to all of our clients.  His reports are very thorough with plenty of color pictures showing areas of concern.  Not only is Neil Sims a licensed Home Inspector, he is also a NC Licenced General Contractor.  He can inspect homes but he can also build them and I can tell you first hand, Neil Sims and his uncle, Geoff Sims build an excellent home.  You can contact Neil at 910-617-7467 or visit his website at http://www.simshomeinspections.com/

For more information on North Carolina Home Inspections, contact the board at the following address:

RESPA (Real Estate Settlement Procedures Act) has new rules going into effect on January 1, 2010.  RESPA is a HUD comsumer protection statute about closing costs and procedures. It requires consumers recieve disclosures at various times about fees involved in a closing and also prohibits those cost infating "kickbacks."

The new rules will standardize Good Faith Estimates of Closing Costs, promote transparency, and allow buyers to make better decisions when shopping for a lender.  Often, fees may change within a short time period and the differences in the original and final "fee quotes" from a lender will be readily apparent.  These new rules will apply to all residential contracts.

More details can be found at www.HUD.org.