Category Archives: Sapphire, NC Real Estate

Sapphire Readers Benefit from Real Estate Information Best-Sellers

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When it comes to understanding the factors that come into play when buying or selling a home—or any practical real estate information at all—Sapphire high school (or even college) graduates are on their own. If any real estate information has even been touched upon, it will have been in the most cursory manner: at best, one line item in a Home Economics budgeting discussion.

That’s one reason why everyone from first time Sapphire homebuyers to itinerant real estate investors can benefit from the best of today’s how-to real estate books. Here are some of the popular oldies—as well as some valuable newcomers:

100 Questions Every First Time Home Buyer Should Ask is Ilyce Glink’s compilation of insights from top brokers across the country. Town first time buyers aren’t the only readers who will find this general reference valuable—Sapphire home sellers who want insight into the concerns of potential buyers will find it a useful resource. The “100 Questions” don’t address every Sapphire real estate information topic; but on the whole, this book is concise and informative.

Solid, practical information for homeowners readying their property for the Sapphire market can be found in Rhoney and Richard’s Smart Essentials for Selling Your Home. In the same way that 100 Questions book is also useful to sellers, this one would make excellent reading for prospective home buyers who recognize the importance of understanding sellers’ priorities. Smart Essentials is mercifully short: just 92 pages!

For more seasoned readers who might be considering a Sapphire residential investment, the bookshelves have plenty to offer:

The second edition of Gallinelli’s What Every Real Estate Investor Needs to Know about Cashflow has been around for a while, but comes highly recommended for its textbook-level explanation of how economists digest real estate information for investment purposes. The formulas are all there, as well as examples that demonstrate how to apply them. Reading it won’t encourage prudent Sapphire non-CPAs to do their own business tax returns—but will acquaint them with valuable foreknowledge on how their tax advisor approaches maximizing their refund. Its description of four different ways to make money from real estate can be eye-opening.

J. Scotts’ The Book on Flipping Houses (how to buy, rehab, and resell residential properties) is a roadmap from start to finish on how to go about a lucrative house flip. There are many books on the subject, but this one is the leader of the pack. First published in paperback in 2013, it’s been a real estate information best seller ever since. Part of its wide appeal is the author’s (he’s a veteran flipper) candid step-by-step descriptions of how he executes his own projects. The author’s other book (with co-author Brandon Turner) is:

The Book on Estimating Rehabs. This is a book Sapphire real estate information-seekers should find well worth its hefty paperback price tag ($22.49 on Amazon). It details a variety of different approaches to projecting a rehab budget, including a breakdown of the 25 components that need evaluating.

Books can provide invaluable background information for real estate newcomers and veterans alike. Another essential is the assistance of a knowledgeable agent: good reason to give me a call!

Knowledge is Power when it comes to Selling Your Sapphire Home

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When you read up on the dos and don’ts for selling your home, there is one piece of advice that’s universal when it comes to negotiating a successful deal: don’t let emotions get in the way. It does seem peculiar that something that is so obvious about any negotiation would have to be stated at all—much less repeated so often. You have to conclude that it happens a lot.

It does, and there are deep-seated reasons. Although selling your Sapphire home is primarily a business venture, it’s one with some of the emotional overtones usually associated with creative endeavors. When an artist or sculptor, jewelry designer or photographer—any creative professional—decides to offer works for sale to the public, it’s nearly impossible for him or her to remain completely objective about how it is received. Or to avoid forming feelings about those who accept or reject the creation.

Selling your Sapphire home only seems to be all business. True, it’s a single-transaction enterprise. It begins with preparing the property, and concludes with negotiating to close the deal. Every step of the process may seem to be all business. But in reality, it’s almost unavoidable for emotional cross currents to seep in from the very first step.

Consider preparing the property. If there were such a thing as a perfect home, this would be a cut-and-dried affair: all it would involve would be to eliminate every flaw. But since perfection exists only in some alternate universe, deciding which of a home’s features need to be enhanced, replaced, or done away with altogether involves making subjective judgments. Some of these can require paying significant amounts of money; others, significant amounts of elbow grease.

When the work is done and the results are first put on display, it’s like Opening Night. It is only human to feel personally connected with how prospective buyers react. Not only is the ‘product’ that’s being evaluated one that reflects your tastes and efforts—it’s also where you live! Your home, for goodness’ sake! It deserves to be appreciated at the very least…

Especially when it comes to the negotiations phase of selling your Sapphire home, this is one business venture wherein it’s nearly impossible to avoid the personal element. Acknowledging it is simple. And knowledge is power—if you expect that you might experience an emotional reaction at some point, you’ll recognize it for what it is. If it’s an overreaction, you will be much more likely to be able to simply take a deep breath, put it into perspective—and come up with an appropriate response.

“A lot of times buyers and sellers will argue tooth and nail over things that aren’t really that important,” New York City closing attorney Sandor Krauss blogged recently; “and sometimes it blows deals.”

One of the great advantages to having a Sapphire agent by your side when selling your Sapphire home is to have an experienced intermediary working on your behalf. It can put you at a professional remove from the direct negotiations with buyers—and their emotions! If you will be selling your home in Sapphire this winter or fall, I hope you’ll give me a call!

Sapphire Home Loan Game Theory Could Get Complicated

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“Sapphire home loan game theory” sounded like an intriguing topic when the phrase first occurred to me. I thought it would mean figuring out whether a mortgage would constitute a financial move that made sense. But the more I studied “game theory,” the more complicated it got. And maybe not as theoretical as I’d thought…

As far as the terms themselves are concerned, a Sapphire “Home Loan” is exactly what it says it is: a mortgage on your Sapphire home. “Game theory” is more obscure. For openers, “game theory” sounds like a lot more fun that it really is. It’s like the bore who wants to tell you exactly why some joke is funny—the explanation isn’t at all humorous. ‘Game theory’ isn’t about playing anything. It’s about mathematics.

Professor R.B. Myerson is the authority who tells us that game theory is the study of decision-making. It’s a dissection of “mathematical models of conflict and cooperation.” That’s a pretty good thumbnail description of the board games kids play. If you remember playing Monopoly as a child, you may also remember how mad you’d get if the other players cooperated too much. Sometimes they’d trade properties with each other so that one was able to build hotels on the dark blue properties. That meant that when you landed on Boardwalk, you went broke. Professor Myerson was right: that was a study in cooperation that would make anyone feel conflict.

But the Professor’s definition also says that game theory deals with the actions of “intelligent rational decision-makers.” In home loan game theory, when the process of filling out forms and gathering backup materials goes on and on, it can seem to stretch beyond anything that’s rational. But once you do get a Sapphire home loan, the decision-making does seem both intelligent and rational.

“Sapphire home loan game theory,” then, would be the study of strategic decision-making by the person who wants to obtain a home loan and the bank personnel who give the okay. Originally, game theory only dealt with zero-sum games—the ones where if someone gains something, the other one loses. It has since expanded to include all sorts of “win-win” scenarios, but at least one world-renowned investor has a different game theory about home loans. Warren Buffett is quoted as saying:

“You can take a 30-year mortgage and if it turns out your interest rate’s too high, next week you refinance lower. And if it turns out it’s too low, the other guy’s stuck with it for 30 years.”

Come to think of it, that’s exactly what has been happening ever since mortgage rates started coming down! Which is why I’m pretty sure that particular home loan game theory isn’t so theoretical at all.

Also not theoretical: given today’s mortgage interest rates, if you are thinking about looking into Sapphire real estate possibilities, giving me a call is a good next move!

In Autumn, Selling Your House in Sapphire Takes Organization

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It’s October­­­; a time of year that has a lot to recommend it. In many parts of the country, it’s the season when Mother Nature goes full throttle with the Technicolor. Sunsets can be outrageous. In some parts of the country, leaves can bid adieu with displays that put rainbows to shame. Fall weather turns the air a bit crisper. All in all, to a lot of folks, fall is the favorite time of the year.

Selling your Sapphire house in the autumn, on the other hand, can present some special challenges. Selling your house in the springtime, for instance, doesn’t include clearing the garden of the remnants of summer growth (that is, unless you let it go the previous year!). The plusses and minuses of selling your house after the peak spring-summer real estate rush is over can be debated at length. What isn’t debatable is that to take full advantage of selling your house this time of year, you should be aware of a few specifics:

  • Keep up with the season
    … leaf fall for yards with deciduous plants can require almost daily attention during some periods. You’re the best judge of when the debris crosses the line from pleasantly natural into downright unsightly­­—but in any case, it’s a good idea to make a quick inspection part of your daily routine.
  • Keep up with the weather
    … leaf fall is one thing, but windy fall storms can turn a well-kept garden inside-out in a few hours. After a storm passes, be prepared to hose off the traces of muddy puddles and do some organized sweeping. It can make a big difference when you approach a house with a clear walkway (vs. one that looks like a typhoon just passed!).
  • Pet areas
    …they can be more difficult to manage in autumn and winter when Mother Nature can keep them indoors for longer periods or make their favorite hangouts less accessible. Being more flexible and attentive to their needs than in summertime is often necessary.
  • Prepare the mechanicals
    …if sudden chills descend, knowing that your heating setup is ready to go into action assures a welcoming environment for prospective buyers. If it hasn’t been in use since last spring, a system may produce some unpleasant side effects the first time it’s fired up. If yours one that needs a yearly checkup by the utility company, better not wait!
  • Anticipate success!
    Selling your Sapphire home in fal­l­ and winter may take a little extra vigilance when the weather acts up, but buyers at this time of year can be more eager to close on their new home. Be organized for success, which can mean everything from having a year’s worth of utility bills ready to show­, to scoping out where you’re headed next.

Selling your Sapphire home efficiently takes some organization and planning. A good first step is to get in touch with a Sapphire real estate professional who will pitch in and help every step of the way. In other words—call me!

Sapphire Homeowners Heads-up: El Niño is Happening!

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10-16-15-elninoWith fall newly arrived, it’s a time of year when Sapphire homeowners can breathe a sigh of relief; relax and take it easy. With summer behind us, most gardens require less attention. The demands harsh winter weather will make are off in the distant future— or are they?

This year it might be prudent for Sapphire homeowners to mentally remove a month or two from their home maintenance timetables. The reason comes in two familiar words (and they aren’t English): El Niño.

According to the government’s NOAA climate forecasters, there is “an approximately 95% chance that El Niño will continue through Northern Hemisphere winter 2015-2016…” Since that is definitely Sapphire’s hemisphere, they’re speaking to us. They answer the question, “How strong is this El Niño now?” with, “it’s pretty strong.” In August, it ranked second all-time (behind August 1997) in the Equatorial Southern Oscillation Index, which is one way of measuring its power. El Niño is the condition where weather shifts occur due to a change in warm ocean currents in the Pacific.

What this means to Sapphire homeowners is as unpredictable as…well, as the weather! What is acknowledged is that normal patterns can be disrupted to varying degrees. The reason we can never get much clarity about how it’s going to affect us is that (unsatisfying though this answer may be), winter could be markedly more—or markedly less—stormy than usual. Since the maximum effect is expected in late fall through December (hence the Christmas allusion of the ‘El Niño’ name), Sapphire homeowners might consider getting on with their winter maintenance preparations earlier rather than later.

So here—a bit earlier than usual—are some regular fall maintenance heads-ups:

  • Check and fill the exterior gaps where critters, bugs, and cold air might enter
  • Chimney maintenance: if you sweep once a year, schedule now
  • Rain gutter check: even though leaves haven’t begun to fall in earnest, cleaning out the mucky old debris now will make later leaf removal a breeze
  • Inspect the roof: if damage has happened, now is the time to schedule repair
  • Ditto the driveway: fill cracks before winter
  • Now is the perfect time to clean and stain the deck. Depending on how much sunlight it gets, it may need to be renewed annually (no matter what the stain can says!)
  • Replace worn weather stripping around doors and windows—your winter heating bills will reward the effort.

As a check of comments on the weather sites confirms, local homeowners have differing memories of how previous El Niños have affected them. But since we are now officially in an El Niño year—it can’t be a bad idea to prepare ahead of time (and if you have Sapphire real estate plans in the offing, now would also be a good time to give me a call)!

New Reports Help Guide Sapphire Real Estate Market Decisions

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10-16-15-marketnewsAt the beginning of any month, Sapphire onlookers can find batches of fresh reports about national real estate market activity. Take October, for instance. We’ve just learned a bunch about what happened across the country. September’s numbers won’t be collected and analyzed for a while, but the fresh real estate market data for August is out, as well as July revisions. Since earlier findings are always being tinkered with as estimates are replaced with hard results, we also get improved readings from the earlier month.

This latest batch of real estate market news was upbeat, downbeat, and, uh…sideways. Thursday was the first day in October, which was when CNN Money came out with some good old-fashioned cheerleading. “Americans went shopping for homes in August,” they headlined. The reason cited was for new home sales: they notched the highest volume since early in 2008: 552,000. It was a nice way to get the month’s data reports started.

Home prices, on the other hand, were not yet available for the August timeframe—but July’s Case-Shiller Home Price Index had pointed upward. It showed a 4.7% rise in prices paid for homes from a year earlier. This made for “moderate, but still above average, price appreciation,” according to Realtor.com’s chief economist. The prices were seen to have edged up just 0.7% from June, which was “barely higher” yet “much higher than last year.” If that summary had been illustrated, it would have merited both a frowny face and a smiley face.

There were other preliminary soundings about what the August price information was likely to be, and they were just as equivocal.

The National Association of Realtors® tracks pending home sales data (homes under contract but not yet closed), and by that measure, there was a slight retreat from July’s level. Yet although the preliminary number showed a 1.4% drop, that was still more than 6% higher than August 2014’s had been. Which was more compelling? Altogether, the news for sellers was deemed to be stronger. “Demand continues to outpace supply,” according to the NAR. “Shed no tears for sellers.”

If that sentiment is shared by Sapphire homeowners, it might nudge some into listing their home now rather than waiting for the next truly robust real estate market—traditionally not expected until next spring. Although fall and winter usually find fewer buyers on the prowl for new digs, those who do surface are generally regarded as serious shoppers. And since the number of Sapphire listings usually declines as the holidays approach, there’s a good argument to be made that less competition tilts in favor of sellers.

We have to wait until next month to get a read on how September activity fared; but for anyone who sees the advantages this fall’s Sapphire real estate market offers, I share your opinion! It’s definitely worth giving me a call.

Revisiting the ‘Pinch Me’ Moment for Sapphire Home Values

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10-10-15-pinchBack at the beginning of 2012 there came a ‘pinch me, I must be dreaming’ moment. This was back in what seemed to be the Bad Old Days, when Sapphire homeowners who dared to check the latest in neighborhood home values were apt to spend a sleepless night as a result. Sapphire home values had only just begun to creep upward, but the bottom line was still, as truck drivers used to say, ‘negatory.’

The Rip Van Winkle ‘pinch me’ moment was a single piece of polling information that, by itself, seemed to register a hard-to-swallow phenomenon. If believed, it would have the first glimmer of light at the end of a very dark tunnel. It came in the form of a Rasmussen poll reporting some of what people in America were thinking. In part, Rasmussen summarized “Belief among homeowners that home values will increase during the next few years is the strongest it has been in a year, as is confidence that their homes are worth more than what they still owe.”

That poll might not have been as concrete as any of the hard numbers trickling in from the gatherers of residential sales volumes and prices, but in the long run it was probably more significant. As long as home values continued to plunge (as they had done for what seemed forever), there had been a good reason for home buyers to resist the impulse to buy a Sapphire home. It’s the same reason that local supermarkets don’t send out circulars that tell you, “BIG SALE—BUT NOT JUST YET!” Sapphire home values didn’t have to actually fall in order to discourage market activity, either. Just flat-lining would do the trick. Recent history had been all downward, and nobody seemed too confident that the next movement wouldn’t be a continuation of the plunge.

For prospective first-time buyers who had ample lifestyle reasons for wishing to buy a new Sapphire home, it just seemed more prudent to keep their home-buying powder dry. But renting forever wasn’t going to get them anywhere—and rental affordability had been headed the wrong way since 2001…

That was why Rasmussen’s report on the turnaround in homeowner optimism had been such a ‘pinch me; I must be dreaming’ moment. The idea that people finally were expecting home values to rise was a change in psychology that could fire the market, irrespective of what the numbers could yet confirm. And that’s exactly what happened.

Fast-forward to the fall of 2015. The bottom was in. U.S. (and Sapphire) home values were about to embark on the welcome momentum shift that’s now in the record books. Pinching turned out to be unnecessary; and it was no dream. In fact, you can take advantage of this fall’s healthy Sapphire residential home market. Just shoot me an email or a phone call!

When House Hunting by Zip Code, Assume Nothing!

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10-10-15-zipcodeIf you ask anyone doing serious house hunting in Sapphire how they are going about it, there are few who won’t point to the web (nationally, 88% use it) as at least one of the top two most useful tools (their Sapphire Realtor® is the other one: 87%).

Yes, yard signs are helpful, and its first cousin, the Open House, is another (they’re related since it’s hard to imagine an Open House without a yard sign or two). Both come into the house hunting picture a little less than half the time, according to NAR® statistics. A quarter of house hunting expeditions also rely on one or more online video sites, but I think that’s just because online listings frequently link to those to display virtual tours. To a prospective buyer, it may not even be evident that a different site has been used. In fact, who cares?

What is important—and what shoppers who are actively embarked on a Sapphire house hunting foray do care about—is what is the best way to find the Sapphire homes for sale that best fit their requirements. Along with size and price guidelines, usually location turns out to be a leading specification—sometimes the leading spec. Most of the online search tools let you enter location in a form that allows “city, state, neighborhood, or zip code.” Sometimes, “county” is allowed.

Especially for anyone planning to move to an area that is largely unfamiliar, it’s here that assumptions can be misleading. Of course, house hunting using a sizeable “City” is likely to deliver unwieldy results. If you entered “Los Angeles,” for instance, the difference between a nice little parcel on Mount Lukens (elevation 5,000+ feet) and one by Point Dume (elevation zero) makes such an entry all but useless. “Neighborhood” will usually yield much more meaningful results—but only for those who are already familiar with the area.

This is where entering a “Zip Code” might seem to be the most likely way to get the house hunting results you’re looking for. Sometimes it might. Yet a word of caution is in order—this is where a little practical zip code knowledge could come in handy. A zip isn’t always as cozy an area as you might think. For instance:

  • Towns and cities sport different zip code “overlays.” More than one town name may be in a single zip (but that zip might not cover the entirety of any of them).
  • Many zips can share the same town name (for instance, Austin has 78).
  • If commute time and/or fuel economy is an issue, entering 89049 (Tonopah, NV) might not be helpful. It covers 10,000 square miles, which makes it slightly larger than Maryland.
  • On the other hand, some zips cover just one building.

But if you do decide to use the zip code to specify a search area, steer clear of “48222.” It’s the one that delivers mail to passing ships. Also, if you’re interested in Centralia PA, don’t bother looking for its zip; just enter ‘Centralia.’ (It’s the only town that has no zip code).

No matter what online search method you use, when the house hunting destination is in the Sapphire vicinity, there won’t be any more foolproof way to locate the home you’re looking for than to give me a call. I’ll put together a list that takes all your specifications into account…after which we can set out for a real-life, non-virtual tour!

More than a Daydream: a Vacation Home can be Practical

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10-2-vacation homeIn Sapphire real estate, there are happy words (“sold!”) and there are troubling words (“default”). Because of the associations they conjure up, some phrases just automatically make us happier. Two of the leaders in the positive category are the magical words, ‘vacation home.’ All by themselves, they can trigger a smile. Why not? “Home” is comforting; “vacation” is fun. Put them together in “vacation home” and you’ve got a double positive. It’s a real estate equivalent of Jimmy Buffett’s Cheeseburger in Paradise.

As the economy recovers, some American families are doing more than just smiling at the idea. The Wall Street Journal says that vacation home sales jumped more than 50% in 2014—up from 717,000 the year before. Quicken Loans reports a jump “in both the number and dollar volume of second home mortgage applications.”

To a Sapphire homeowner with sufficient wherewithal, there are some practical, real life incentives for moving the idea from daydream to the ‘to do’ list. The primary motivation is what comes first to mind. Just as a vacation is a welcome respite from the day-to-day, a vacation home needs to qualify as a destination that is pleasurable in itself. Where that could be differs for everyone, but whether it be the beach, desert, mountain, lake, cultural metropolis or outdoor sporting mecca, any Sapphire homeowner’s vacation home should be a haven inherently suited to relieving the stress of the workaday world. Although it would seem to be properly classified as a pure luxury expense, vacation homes can be more financially sensible than that.

The Kiplinger web site has a number of observations for vacation home buyers. It finds that some mortgage interest rates on second homes have lowered to first-home rates. Another alternative is the “favorite source” for all-cash purchases: a home equity line of credit. According to Kiplinger, “Mortgage interest on a second home is deductible on as much a $1 million in principal for both homes combined.” If lenders calculate eligibility via the Fannie Mae and Freddie Mac guidelines, a borrower’s total debt payments should not exceed 36% of gross income…but if the second home is to be rented, that income can be part of the calculation.

Which brings up some other possibilities. A vacation home can not only cut down on vacation expenses (hotel and restaurant prices are rising, after all); if rented out some of the time, it can contribute offsets to its cost. To take advantage of IRS rules regarding personal versus rental classification, you should consult a tax expert. Since a quarter of vacation homes are rented out at least some of the year, it’s a tactic that deserves investigation.

Perhaps the advantage that’s talked about most for second home buyers is the contribution it can make toward retirement. If a retiree ultimately converts a vacation home to principal residence, profits from the former home can make a handsome contribution to the retirement nest egg. And if by retirement time that vacation home has been paid for in whole, it can make for an even more pleasing financial picture.

For a Sapphire resident with sufficient resources, purchasing a vacation home can be a practical as well as emotionally sustaining venture. If it sounds like an idea worth investigating further, talk it over with your financial advisor—and I’ll be standing by to help with any and all real estate considerations!

Sapphire Property Search: Anything but a Passive Exercise

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For anyone who has never participated in a serious house-hunting effort, their mental image of how the experience will unfold may be a little off. They might imagine that, after narrowing down their requirements for a Sapphire home (size, price range, and the like) they will agree on a day and time, then just climb into their Sapphire agent’s car and settle back to have the likely prospect properties exposed before them.

In fact, the house-hunting procedure is almost like that, except for one major detail:

A property search is a participation sport!

Experienced Sapphire property searchers have learned to husband their energy on any day that includes home showings. Especially when their property search doesn’t immediately yield a find that fits their target criteria, they know that it may take a while—and more than a few house-hunting outings—before they identify a suitable house.

What takes so much energy? Sophisticated home buyers know that every showing holds the possibility that they could be setting foot in what might just become their future home. Every showing is literally the only time they will ever have a valid ‘first impression’ of the place that might become a major purchase. And each of those first impressions often come as part of a day that includes multiple showings—one that can easily result in a jumble of impressions, where homes with similar features are easily confused in memory. Since second and subsequent showings should be reserved for properties that qualify as serious contenders, wasted time and effort (not to mention inconvenience to the homeowners) can be avoided by alert, sharp-eyed property searchers. It takes stamina!

That’s why more experienced prospects know from the outset that a home showing isn’t a passive experience. It’s not a bad idea to have a pen handy for jotting notes on the listing sheets the Sapphire agent provides—notes about distinguishing features (good and bad!) that will help with comparisons at the end of the day.

For those who are veterans of previous property searches, this is old news: they remember reviewing sessions that include, “No – that was the one with the bay windows, not the one with the [fill in the blank].” For first-timers, it’s good to know in advance: a property search is a participation sport. And you’re the team captain!

If you are about to embark on the search for a Sapphire property, or have one that’s soon to be listed, do give me a call. Properly arranging efficient home tours is only part of my track record of helping successful home sales happen!