May

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I’ve just sold a Resale - single family property at 3614 Pickett Road in Durham. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

The largest sustainable farm tour in the US is right here in the Triangle this weekend!  If you haven’t ever attended one of these, it is an amazing experience and a wonderful reminder that we fabulous local food resources… all for just $25 per carload!

April 25-26, 2009, 1- 6pm both days
14th Annual Piedmont Farm Tour
40 Farms this year! 9 NEW FARMS!
$25 per car for all 40 farms or $10 per car per farm ($30 day of tour)

This is your chance to connect with the land and the people that grow your food! Pet goats, cows, and horses, ride a Mulch Mobile, watch bees in their hives, see how fuel is “grown” for cars, or learn how cheese is made. Talk to farmers about pest control and organic growing techniques. Buy starters for the home garden and revel in beautiful flowers of professional growers. New this year . . . a fresh water shrimp farm! Co-sponsored by Weaver Street Market.

Buy your button online or stop into Weaver Street or Whole Foods. 

For those of you who aren’t familiar with Full Frame, let me introduce you to yet another wonderful event held in the Triangle - and another reason why I love living in this area.

The Full Frame Documentary Film Festival is an annual international event dedicated to the theatrical exhibition of non-fiction cinema. Each spring Full Frame welcomes filmmakers and film lovers from around the world to historic downtown Durham, North Carolina for a four-day, morning to midnight array of over 100 films as well as discussions, panels, and southern hospitality. Set within a single city block, the intimate festival landscape fosters community and conversation between filmmakers, film professionals and the general public.

Full Frame’s mission is to support the documentary form and community by showcasing the contemporary work of established and emerging filmmakers and by preserving film heritage through archival efforts and continued exhibition of classic documentaries. The festival is also committed to building wider national and international audiences for documentary film and enhancing public understanding and appreciation of the art form and its significance. The festival is produced by Doc Arts, Inc., a 501(c)(3) non-profit organization, and receives support from corporate sponsors, private foundations and individual donors whose generosity provides the foundation that makes the event possible.

I love this festival because you get exposure to new ideas, concepts, and cinema - many of which stretch my mind and beliefs and make me more aware of what is happening outside of my regular life.  I challenge you to go and experience films that will make your emotions soar… that is if you can still get individual tickets.  I hope to see you there!

I just completed my training to be a nationally certified Building Analyst Professional.  I have been in Boone, NC getting rigorously trained both in the classroom and in the field to figure out how to “analyze” and “diagnose” homes.  So this specialty certification now allows me to educate my clients about how to best retro-fit their existing homes to be more energy efficient and safe. 

Why does that matter to you?  Because most of the homes I see (and sell) are not doing so well in the energy efficiency department and I know the occupants are wasting energy left and right, meaning higher utility bills.  None of these homes were obvious energy hogs, but they are just by-products of constructions eras during which we new very little about how a house actually interacts with its environment and occupants.  These weren’t poorly built houses or homes in disrepair, they were just your average homes that didn’t have the benefit of occupants or Realtors who knew anything about building science.

Well, now I know better and I’m intent on making sure I educate my clients so they can have improved homes, lower bills, reduced energy wastage, better air quality, and a more durable structure.  I am confident this knowledge will benefit all of my clients regardless of  their interest in “green” because it really comes down to helping them find and maintain superior homes and take better care of themselves through their immediate environment. 

This building science credential also fits right in with my EcoBroker certification because it trained me in the actual “diagnosis” of building problems and opportunities using the latest technology, science, and equipment – all of which are at your disposal when you become my client.

Ultimately, this will make me a better Realtor and ensure that you, my client, get superior information and advice.  I’m very proud to be one of only a few Realtors in the country to hold this certification and can’t wait to share what I’ve learned with you.

As you probably well know from the media reports, national and local real estate markets have changed dramatically over the past year.  You can see in the chart below that we have most recently experienced a Seller’s market—a time during which there were more Buyers who wanted homes than there were homes available for them to buy.

In the past year, however, there has been a shift in the market swinging back to a Buyer’s market.  (See the cross over occurring at the end of 2007 and the colored lines moving in opposite directions at the start of 2008.)  All current trends indicate that we will experience that Buyer’s market for at least the next 12-18 months, if not longer.  These market fluctuations are normal cycles.

This information shows the general market trend across the nation; however, all real estate is local and these trends may differ slightly depending on your immediate area.  It’s your agent’s job to know how these trends are playing out near you, so ask for a market report to see what’s going on in your area.

And remember, what goes up, must come down and what goes down won’t stay there forever.  Listen to the market and respond accordingly… this a time of amazing opportunity.

A few days ago, I posted a blog about the  tax credit that Congress enacted in July of 2008 and I gave it a resounding thumbs down and told people to wait and be patient.  Well, I now feel that was decent advice because on Tuesday, Congress approved another tax credit (part of the American Recovery & Reinvestment Act of 2009) that looks much better.  Here are the basics and my personal thoughts about what will happen and what you should do:

What is this new tax credit?

Anyone who purchases a primary residence (first time buyers and those who have not owned a home for the last 3 years… somehow also known as “first time home buyers”… but whatever) will be eligible for up to an $8000 tax credit or 10% of the of the purchase price (whichever is less). The home must be the buyer’s principal residence (not an investment or vacation home) and the property must be purchased on or after January 1, 2009 and before December 1, 2009.  This tax credit can be applied to taxes that you owe (your “tax liability) and any money left over after your tax bills are paid will be “refunded” in a check to the taxpayer.

Read more about this new tax credit here.

Why is this one better than that other $7,500 tax credit I didn’t like?

This new tax credit that was approved 2 days ago is actually a tax credit.  The other one was not actually a tax credit but an interest free loan that would have had to have been repaid by the Buyer.  (I hate when the government uses confusing language like “tax credit” when they really mean “loan.”  And we wonder who’s causing all the confusion…).  This new tax credit is also better because it extends to any primary residence bought before December ‘09, while the old “tax credit” only applied to houses bought before July ‘09.

Are there any limitations that you need to know about?

Yes.  Home buyers who use this tax credit must use/occupy the residence as their principal residence for at least three years or face recapture of the tax credit amount (read: they may come take back some or all of that “free” money). Certain exceptions can apply which is why you need a tax preparer/adviser to do this.

There are also income restrictions that can apply… again, check with your tax adviser to be sure.  $75,000 and $150,000 are important income numbers to know , but only in terms of your modified adjusted gross income (MAGI).  I have absolutely no understanding of how to interpret this accurately, so (again) I urge you to get professional tax advice.

You cannot double dip by trying to get this new tax credit as well as go after the first time home buyer tax credit offered to people who buy in Washington, DC.  Presumably, this kind of double-dipping restriction will apply in other places too… which your tax preparer should discuss with you if applicable.

If you qualify for the tax credit and buy a home in 2009, can you apply the tax credit against your 2008 tax return? 

Yes. The law allows taxpayers to choose (”elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

You bought a home in 2008. Do you qualify for this new tax credit?

No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit.   Read about that tax credit for 2008 Buyers here.

What do you do now to get your money?

Participating in the tax credit program is easy (or so I’ve been told… of course it deals with government paperwork, so I somewhat doubt that claim…).   Anyway, you claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.  TALK TO A QUALIFIED TAX PREPARER / ADVISER TO ANSWER YOUR QUESTIONS - DON’T GUESS OR LISTEN TO PEOPLE WHO DON’T DO THIS ALL THE TIME!

Kelsay’s opinion:  This is now a much better incentive for home buyers.  It seems to be what it says it is and there aren’t that many restrictions or confusing stipulations about how it works.  If you can qualify for this money, I say go after it ASAP!  (And call a qualified tax preparer / adviser to help you because the rest of us really aren’t qualified to be telling you what to do…)

And if you know anyone
who is even remotely considering buying,
tell them to call me so I can help them start looking ASAP.

This tax credit money will benefit them too!

 




Reproduced from Calvin & Hobbes cartoon with respect and admiration… but no permission.

Many of my clients have been asking about whether they should apply to get the $7,500 first time home owner tax credit.  Before I give you my opinion, here is what I know (based on information given to me by my favorite, most trusted lender):

What is the First-Time Homeowner Credit?

This tax credit is essentially a temporary, no-interest loan, being offered to those who bought - or plan to buy - a home between April 9, 2008, and June 30, 2009, and who didn’t own a home during the three years preceding the purchase.

The maximum amount of the credit equals either 10% of the home’s price or $7,500 ($3,750 if you are married, but filing separately), whichever is less. One hitch: Homeowners will have to repay the credit over 15 years by either owing more in taxes or receiving a smaller refund. So, if you claim the credit on your 2008 tax return, you’ll have to start repaying it when you file your taxes for 2009. (The 2009 tax return will include an extra line for this credit.)

Kelsay’s opinion:  NO.

Unless you desperately need this $7,500 immediately for something that constitutes nothing short of an emergency, DON’T apply to get this tax credit.  Why you ask?  Because it’s not a credit!  It’s a loan - a no-interest loan, which is really nice - but a loan none-the-less.  You WILL HAVE TO PAY THIS MONEY BACK, so ask yourself if you really, really NEED it right now… or, more likely, if actually you really just want an extra $7,500 for just in case, or that new thing you want but don’t need and aren’t willing to actually save up to buy.  And applying for this loan, could make you ineligible for future tax incentives that the government is planning to roll out soon… because the government isn’t going to let you double-dip on your first buy?! So why get a $7500 loan that could potentially block you from better tax incentives to come?

Obama and our government are in the process of coming up with new incentives related to home buying that are probably not going to be loans, but actual tax credits… like the name “tax credit” implies.  And they’re probably going to be for larger amounts than $7,500.  So I think everyone needs to just sit tight right now and wait to see what happens instead of just jumping at this confusing (and frankly paltry) amount of money.

Better home buyer incentives are coming soon!  Be patient, sit tight, and reap the rewards later.

 

 

Mortgage rates are at an all time low.  You’re most likely not going to sell you home right now unless you really need to.  So you you’re probably wondering if refinancing your original home loan would be a good idea?

The answer is “it depends.”  It is really a case by case decision that you’ll need to assess with a trusted and honest loan consultant.  Here are two basic rule of thumbs to help guide you:

1.  If you can reduce your curent interest rate by at least .50% AND re-coup your new closing costs within 2 years, refinancing may be a good idea for you right now.

2.  If your current interest rate is over 5.75% with an 80% loan to value (meaning you have at least 20% equity in your home), refinancing may be a good idea for you right now.

However, there are several instances in which refinancing would not be an option for you:

  • If your home is an investment property, the interest rates you would be offered would not be attractive due to the pricing add on.
  • If you did a stated income program or no document loan, those programs have been eliminated now and you’re better off sitting tight with your current loan.
  • If you recently changed your job or have lost your job, you won’t qualify to refinance your loan.

 The absolute best way to decide if refinancing is a good idea for your personal circumstance, is to call a trusted, honest loan consultant and talk with him/her about the pros and cons of refinancing in terms of your goals and finances. 

A good loan consultant will not “sell” you on refinancing if you’re going to wind up paying more in closing costs than you save on mortgage payments.  A good loan consultant will also help you look at your long term financial and real estate goals so you can make an educated decision about whether to refinance.

Please call or email me if you’d like referrals to fantastic loan consultants who will help you make wiser decisions about refinancing.  I’d love to help you.

Based on MLS data as of today, here are the market statistics for November & December ‘08 and January ‘09 (to date).  This data applies only to Chapel Hill addresses within Orange County:

November 2008 Sold Statistics
# Closed Home Sales: 22
Average Sale Price: $393,393
Average Sale Price to List Price: 97%
Average Days on Market (DOM) to sell: 107
Shortest DOM: 11 day
Longest DOM: 471 days

December 2008 Sold Statistics
# Closed Home Sales: 36
Average Sale Price: $375,182
Average Sale Price to List Price: 95%
Average Days on Market (DOM) to sell: 79
Shortest DOM: 1 day
Longest DOM: 295 days

January 2009 (1/1 - 1/12) Sold Statistics
# Closed Home Sales: 7
Average Sale Price: $453,914
Average Sale Price to List Price: 97%
Average Days on Market (DOM) to sell: 107
Shortest DOM: 33 day
Longest DOM: 154 days

Locations of homes sold in Chapel Hill (Orange Co.) from December ‘08 to present:

Current Active Listings Statistics
544 Total Listings on the Market
384 Active Listings Available
12 Contingent Listings
148 Pending Listings

What does this all of this data mean?

  • We’re finally seeing a slowing of the market here in Chapel Hill - which is amazing considering the havoc that has been wreaked on most of the rest of the country.  
  • Currently only 7 of our 384 listings have actually sold this month. 
  • There are 148 listings that are “pending” or waiting to close - the most of which are part of the new GreenBridge development in Carrboro. 
  • There are 12 listings that have contracts written on them that are contingent on some other sale or event happening to have them close.
  • Compared to the slide in number of homes sold in the last 6 months , December sales actually showed a bit of a up-turn.
  • Given that most sales usually happen later in the month, we could be on target to improve again in January and continue the up-swing in sales in our area

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