Cary Real Estate Blog

 When does a business manager crawl under a house?  When you work for LG Real Estate and one of your duties is to represent the firm at home inspections. 

Recently, I observed 3 home inspections in 2 days performed by Matt McClymonds from First Step Home Inspections.  We have worked with Matt and his company for several years.  Matt is thorough, very knowledgeable and best of all is patient and understanding when he explains what he finds.

The 3 inspections were all for buyers we represented who recently purchased a home.  Most real estate contracts today include a cost of repair contingency.  This clause states that if the cost of repairs exceeds a certain dollar limit, the buyer has the option of voiding the contract with no loss of earnest money.  A home inspection is necessary to determine the current structural and mechanical condition of the purchased home.

 Is a home inspection for home buyers only? 

A home inspection is a visual examination of the physical structure and systems of a home.  Is a home inspection for home buyers only?  No, as a matter of fact a home inspection is a valuable report for home sellers and homeowners.  If you are planning to sell your home, a major repair issue can easily send a contracted buyer packing so it’s best to know the working condition of your home prior to listing it. 

As a homeowner not currently planning on selling, an inspection gives you instant feedback on the condition of your home. This type of check up serves as a maintenance inspection and lets you know what items need attention to keep your home in good condition (we call it selling condition).

Moisture in the Crawl Space

I asked Matt what was the most common problem he finds in home inspections.  He quickly answered moisture in the crawl space.  This problem alone can short circuit a home sale since it’s usually not a quick or inexpensive fix.  Fortunately, the crawl space was dry at all three property inspections I observed.

Trying not to disturb Matt as he worked, I asked if he uses any kind of a checklist during his inspection.  My observation is that Matt is a visual detective constantly scanning, testing and noting potential problem areas.  Although he does not carry an actual check list on inspections – his website gives the following list of areas and systems inspected: 

 HVAC systems checkpoint

Since we are experiencing one of the hottest summers on record, properly functioning HVAC systems are of course very important.  One of the tests Matt performs is a temperature differential reading.  He measures the temperature at an outgoing register and the temp reading at the cold air return.  Matt likes to see a 16-20 degree differential, but a 14 degree difference is considered functional.  Matt recommends consistent servicing of your units by a licensed HVAC technician to keep them in prime working order.

We were lucky this time – I did not need to crawl under any homes and all three homes came in with favorable inspections and relatively short repair lists.

Cary listed in the Top 25 Best places to Live

 The town of Cary has done it again.  For the fourth time in the last 8 years, Cary has landed in Money Magazine’s top places to live list.  Cary is ranked #23 out of 100 and is the only North Carolina community to make the top 25 list.

Noteworthy Cary Stats

Money magazine notes Cary’s very low crime rate, AAA bond rating from Moody’s, and an unemployment rate well below the National average. Other factors affecting the ranking include medium income, math and reading test score results, job growth, housing prices, and seasonal temperatures…. view full article.

For more information on Cary and homes in the area, please visit our website at CaryHomesNC.com.

Good news for Cary area resale homes in the 500 -800k price range – we are now getting offers on homes in this price range.  For the past 18 months, both showings and offers were few and far between. 

 Why the sudden surge in the 500-800k price range?

 First and foremost the number of showings has increased.  Showings in general declined in May due to the expiration of the home buyer tax credit at the end of April.  Yet showings in the Cary Area 500- 800k price range increased by 34% (compared to May09). 

 Another reason for the surge is a change in the new home market.  New homes in the Cary area have been outselling resales by a large margin over the last 18 months.  Now with limited bank funding for new homes and a large decline in inventory, resale homes in this price range are finally gaining some momentum. 

What’s happening with Offers?

Now for the offers – they are typically coming in at 10-15% below the current listing price   Sellers should be thrilled to get any kind of offer and we at LG Real Estate negotiate very diligently to bridge the gap.  The key here is for sellers to price their home realistically and be willing to work hard with any offer that is submitted.  Buyers still control the market as they have a large resale inventory to choose from.

Please call us for the latest information on Cary area homes and the current trends in the market.

Curb appeal.  Today 90% of all home buyers begin their search online and the first picture they see is the front view of your home – your curb appeal.  Often it determines whether or not a buyer will take a longer look and schedule a showing.  The landscape, front of your house, and front door are the most prominent in a photo or when driving by.

Start with your landscaping

Start with your landscaping.  Is your grass green and freshly mowed?  Do you have variety and color in your plantings?  Are your shrubs and hedges neatly trimmed?  Is the grass along the driveway and curbs edged properly?  Most of these issues are simply a matter of consistent and timely maintenance.

What a Home Buyer sees first

A potential buyer has booked an appointment to see your home and is now approaching your doorway.  Remember, the buyer’s first impression of your home has already been made online and while driving up and parking.  If they have been favorably impressed with your curb appeal, they will be far more receptive to your interior.  Conversely, if the curb appeal is shaky in their mind, they will be far less tolerant of anything in the home they do not like. 

Your Front Door

How does your entrance look?  Let’s pick on the front door.  When the agent and buyer walk up to your home, a critical moment occurs.  The buyer will have a minute or two to survey the entryway and especially the front door while the agent is tending to the lockbox.  Is the door freshly painted or stained?  Is the door attractive and complementary for your home?  Does the door have an attractive kick plate?  What about the welcome mat – is it attractive and welcoming?   Again, all the fixes here are relatively inexpensive.

Curb Appeal Evaluation

So the next time you come home, stop across the street and critically assess your curb appeal.  Make a list of the problem areas you discover.  Tackle clean up and repair chores first, then put some time into projects that will enhance that all important first impression.

Call us at LG Real Estate for an evaluation of your curb appeal and home value.  We have sold over 700 homes and have the staff, expertise and experience to help you with both the home buying and home selling side of your next transaction.

 Pending Sales Increase

Monthly pending home sales in the Triangle increased by 33% in March and 32% in April as compared to March and April of 2009.  The popular home buyer credit expired on April 30th  and since that time both showings and homes going under contract have declined.  This does not appear to be a significant trend as there was a floury of activity in March and April with buyers racing to purchase a home before the credit expired. 

Active Market Segment

The Cary market remains very active in the 250 – 400 price range.  The prospective buyers moving into the area are more often than not falling into this price range and not the higher ranges. 

Trend for Home Buyers

The trend that we are noticing is that buyers are re-defining their needs, especially in the higher price ranges.  Families who are move up candidates do not want the larger financial exposure in this new economy.  They are choosing instead to stay in their present home and upgrade and expand where possible.  Consequently, the Cary move up market in the 500 – 800 price range is very limited.

Remainder of 2010 forecast

The remainder of 2010 looks like an excellent time to buy a home in the Cary and Triangle area.   There are abundant homes listed for sale in all price ranges, interest rates remain very favorable, and home sellers are becoming more motivated as days on the market continue to increase.  Give us a call at LG Real Estate and we’ll be happy to show you around town.

COME SEE WHAT IT MEANS TO GO GREEN!

May 15 -16  /  May 22-23   /  Noon – 6:00 PM

The annual green home tour is a free, self guided event that gives potential Triangle and Cary home buyers the opportunity to step inside certified green homes.  A green home is one that is designed to be more energy efficient, have safer indoor air, and require less maintenance.

The green home tour showcases more than 30 homes in a wide variety of styles, price ranges, and building features.  You as a a home buyer can talk directly to the builders and see the latest in water conservation features, as well a as other green techniques. 

The green home tour is a joint program sponsored by the Home Builders Association of Durham, Orange, Wake, and Chatham Counties.  Tour book pickup locations can be found at TriangleGreenHomeTour.com. 

Please call us at LG Real Estate for a follow up showing of any property on the tour.

We have great news to share that really hasn’t received a great deal of publicity.  We are sharing an FAQ that we found on the North Carolina Energy Office website.  For anyone considering updating their appliances, the details are listed below.  Even if you are not in the market to sell your home, replacing appliances can be a great decision.  It is wonderful to enjoy your new, more energy efficient appliances before you call us at LG Real Estate to list your home for sale.

GET THE FACTS:

When will the rebates be offered?   Phase I will be over a four-day period during Earth Day weekend – Thursday April 22 through Sunday April 25.

How much will the rebates be?  Rebates will be 15 percent off on Energy-Star rated appliances.  The rebates will be in addition to any store, manufacturer or other discounts being offered.

What appliances qualify?  Qualified Energy Star clothes washers, diswashers, refrigerators, and freezers.

Who is eligible to purchase items?  North Carolina residents who are replacing older clothes washers, dishwashers, refrigerators, and freezers are eligible for the rebates on designated Energy Star appliances.  The program is only available to those replacing appliances.  Those purchasing multiple appliances or appliances for commercial properties are not eligible.

Where can I buy the appliances?  The NC Energy Office worked with the NC Retail Merchants Association and expects major retail chains as well as most independent appliance dealers to participate in the rebate program.  You can see the participating merchants at www.energync.net.

Can I receive more than one appliance rebate?  You may receive rebates on more than one appliance, but it must be for different appliances.  For example, you may receive rebates on a refrigerator and clothes washing machine, but not on two refrigerators.

Will there be rebates on any other energy star appliances?  Depending on the funds available, a second phase in June will offer rebates on Energy Star residential gas storage water heaters, tankless gas water heaters, central air conditioners, heat pumps and gas furnaces that replace older items.  These rebates will be mail-ins and can be used with purchase through retailers, contractors or programs offered through utilities.

Where is the money coming from to pay for the rebates?  North Carolina is receiving $8.8 million in federal funds to help homeowners purchase energy efficient appliances. 

See you shopping!

YOU’RE UNDER CONTRACT – WHAT’S NEXT?

Here at LG Real Estate, we have noticed a significant upswing in our activity level starting in December.  Our showings have increased, our phones are ringing, and we placed 3 homes under contract the last 2 weeks of January.  Let’s say one of the homes we placed under contract was yours …. What’s next?

First, usually within 7 days of signing the contract, inspections will be set up

These inspections are most often for the home, for radon, and for pests.  If the NC licensed inspector has reason to question what he observes with the HVAC units, the structural integrity, or the rest of the house, other professionals can be scheduled by the buyers to give an opinion.

Next, you as the seller normally wait 7 to 10 days for the inspections to be completed. 

Then, together we review the inspection report and a list of requested repairs.   In today’s market, you need to be prepared to do the majority if not all of the listed items.  In many cases, the buyer’s request that the repair work be done by a NC licensed general contractor.  Our team has great relationships with many contractors / vendors in the area and we can always make suggestions of people that have a proven track record with us. 

Once the agreed repairs are complete, we substantiate the work by sharing the receipts with the buyer’s agent. 

Then, the buyer’s agent will normally schedule a time for the buyers to “walkthru” the home and visually look at the repaired areas.  The buyer’s walkthru can include a re-inspection of the agreed upon repairs by the hired inspector.  This walkthru helps the buyers feel confident about their purchase.  That is why, at this stage, you as a seller can feel a great sense of relief knowing that all the repair work was completed by a quality vendor.

If I can share one tidbit of advice, it is that the money to complete the repairs identified by an inspector needs to be part of your budget from day 1.  A pre-inspection prior to marketing you home is an excellent idea.  My team and I will work diligently with you through this part of the process.  It’s our job to guide and support you through the inspections and repairs so that your “under contract home” is now a “sold home”.

Looking to buy a home in Cary - now is the time to pull the trigger.  Here’s why:

1.  Availability – There are currently 777 detached homes for sale in the Cary, Apex, and Morrisville areas.  The abundance of homes on the market affords you a great opportunity to pick and choose so that finding your dream home is an easier task.

 2.  It’s a buyer’s market –The number of homes for sale in most price ranges far exceeds the number of buyers coming into the market, so it’s a buyer’s market.  Since many of the homes have been on the market for a considerable time, motivated sellers are reducing their price and much more willing to negotiate.

 3.  Interest rates are at historic lows – Earlier this year, rates on conforming 3o year fixed mortgages hit a level not seen in decades and have remained near that low for weeks.  In addition, Capital Bank and Crescent State Bank have designed special low rate mortgage programs to help boost traffic to new home communities in Cary.

 4.  Tax Credits Available for a Limited Time – First-time homebuyers have until April 30, 2010, to take advantage of the federal tax credit of up to $8,000!  Repeat homebuyers have until April 30, 2010, to take advantage of the federal tax credit up to $6,500! Renovations: Are you buying a home that needs a new roof, windows, or insulation? Qualified homeowners may receive a tax credit for 30% of renovation costs, up to a maximum of $1,500, for energy-efficient improvements to their current primary residence.

So now is the ideal time to find your dream home here in Cary.  For an inventory of our current listings in Cary and to view all the available homes, please visit our website at LG Real Estate.