Don't Shoot the Messenger!!

So part of my job as a professional REALTOR® is prospecting.  One of my methods of prospecting for future clients is telling people about my current inventory.  Not only does it give me the opportunity to speak with other people about real estate, but serves as a great service to my seller when I call other people to talk about their home for sale.  Point blank, it's cold calling.  It's not easy, it's not always very fun, but it does work.  So I do it.  Today, I was calling around my listing at 146 Locust Court, Jacksonville, NC, 

 and one of the gentlemen that I had the pleasure of speaking with asked me to never call his home again because, "Realtors® are nothing but scam artists and take advantage of these young Marines in this town."  He belabored the point to tell me about the new 3.8% real estate tax that everyone has to pay is in the Obamacare bill and how no one in Jacksonville will be able to sell their home and it's only going to add to the 200 foreclosures in our town.  (His words, not mine!!)
Little did he know, I am, in fact, a US Army Veteran and I am in a very committed relationship with a Marine, and actually come from a military family.  So truly, scamming young Marines is not on my list of things to do.  I know not everyone has the same goals, but I think I speak for most of my REALTOR® comrades by saying that it's just not true.
I tried to explain to him that his information isn't accurate.  The fact is, the real estate tax of 3.8% ONLY applies to individuals who make more than $200,000 (adjusted gross income) and $250,000 for couples.  I don't think that's going to harm the average consumer in the Jacksonville, North Carolina real estate market right now.  
And as far as there being 200 foreclosures on the market- the actual statistics, according to Jacksonville Board of Realtors® MLS today, there are 2,424 homes on the market for sale in Onslow County.  Of those homes, 165 are foreclosure homes.  That's less than 7%.  And nationally, speaking, foreclosure sales are at an all time low since 2007, according to Les Christie at CNN Money.
Another part of my job, and probably the most important job, is educating.  I think it's more important for people to know the facts, rather than what they heard in the media or what their neighbor told them about the housing market in Toledo.  I don't go to the salon to ask about a weird noise my car is making, I go to the mechanic.  REALTORS® are here to educate and guide, as well as sell houses.  All REALTORS® aren't the same, and some are better than others.  Call me for a more detailed statistical analysis about the Jacksonville real estate market!  I'd love to help!

6 Reasons To Reduce Your Home Price

Of course you want to get the most money for your home when you sell it, but consider these six reasons on why you should improve your price:
1. You're getting little to no showings.  Buyers are typically looking first by price, then by features.  Make your first impression the best!
2.  You're getting showings, but no offers.  Look at your competition- are there other homes that have similar features and amenities for the same price?  It's all about the bang for your buck!
3.  Your home's been on the market longer than similar homes.  This is what we tend to call "shop worn."  When a home sits on the market for 30, 45 or even 60 days, buyers are waiting for the price to drop to "get a good deal."
4.  You have a deadline.  It's not always home much money you need from the sale that determines the price of the home, it's how much money the buyer is willing to spend.  If you have a deadline, your better option is to price it aggressively, instead of holding onto the property- and the mortgage payment and carrying costs.
5.  You can't make upgrades.  Maybe you're flat broke and absolutely cannot afford fresh paint on the walls, carpet cleaning, or adding curb appeal.  But the feedback you're getting is that your home isn't as well-appointed as similarly priced homes.  That means you're not competitive.  It's time to accept that buyers expect to pay less for a home that doesn't show as well as others.
6.  The competition has changed.  If weeks go by with no offers, continue to check out the competition.  What new listings have hit the market?  Are the other listings dropping their prices or offering incentives?  Talk to your Realtor for the best options!

Please contact me if you're considering buying or selling a home!  I would love to help, and I'm never too busy for any of your referrals!

HELP! I'm upside down in my mortgage!

The truth is, many people are right now!  For most of us who bought homes in Jacksonville, North Carolina between 2000-2008, we saw mortgage interest rates in the neighborhood of 6%, 7%, and even 8%!  With interest rates starting out that high, it's hard to pay down on the principle amount of the loan within the first few years of paying it back.  Lump that in with sheisty lending practice and the worst economic recession this country has seen in almost 50 years, of course many of us would be upside down in our mortgages.

Fortunately the real estate market in Jacksonville, North Carolina has mainly been fueled and fed by the military community and VA backed loans.  Which means, for the most part, we've remained stable.  Statistically speaking, in a good real estate market, you will find 3%-9% of the market will be foreclosure homes for sale.  As of today, the market in Onslow County, North Carolina is 6.7% foreclosures.  
With that said, there is an increase of short sales in the market place as well.  Short sales, by definition, are homes that are being sold for less than what the seller owes on it, because the sale price of the home will not cover the liens or the cost of selling.  Not everyone qualifies for a short sale, and it is ultimately up to the lender to decide if it's in their best interest to accept it.  Short sale is a better option than foreclosure, because it doesn't stay on your credit report as delinquency, foreclosure, or bankruptcy.  Instead, it's reported as "paid in full or less than agreed."   And with concentrated effort on credit repair afterward, a short seller can be back in good standing within two years.  Another benefit of short selling is that personnel with security clearances won't suffer with a short sale on their credit report, as opposed to a foreclosure, which would disqualify that person from a security clearance.
Short Sales definitely have a benefit to both sellers and buyers, and there is a time consuming and an intense paperwork route that has to be navigated.  For more information, contact a REALTOR® who specializes in Short Sales and Foreclosures.

Amanda Parmer has devoted extra time pursuing education to better navigate the ever-changing world of short sales and foreclosures and has earned the SFR and CDPE (Short Sales and Foreclosures Resource and Certified Distressed Property Expert) designations to better serve clients, offer sellers a better alternative to foreclosure, and help educate the general public about our housing market.  

Why Use a Buyer's Agent to Buy A Home?

You think you can do it yourself!

The way technology has grown over the years, you would think there are no limitations to what you can find online. This is somewhat true, however,  you can’t always believe what you find online. There are countless real estate websites like Trulia.com, Realtor.com, Zillow.com, YahooHomes.com, AmandaParmerSellsHomes.com, and the list goes on and on!  When it comes to searching for Jacksonville NC homes, any agent can help you, however, a Buyer’s Agent will help you find the right home at the best possible price.

Why Use a Buyer's Agent?

Why? When you are a client of a Buyer’s Agent, you will notice the difference from just being a customer. The key concept that sets one apart from the other is the client relationship that a signed Buyers’ Agency agreement provides.  As a client, we are required to place your needs and goals first and that is why we are here for you, to help you. Allow us to alleviate the stress you may be feeling and help walk you through the transition to homeownership. You can rest assured that your best interest  will come first and that you and your family will have a great adventure along the way.

Buyer's Agent can show ANY home

When using a Buyer’s Agent, you can rest assure that they will be 100% loyal to you and will look out for your best interest as you start your Jacksonville NC home search. Did you know that Buyers Agent can show you any home regardless of which sign is out in front of a house, they are not pushing one of their listings, new homes in their subdivision, or the home with the largest commission. Real Estate is our career and we are experts in helping their buyers find the home that fits their criteria in the location you want, and at a price that fits their budget.

Using a Buyer’s Agent is FREE!

Just consider that as their client , you will receive the highest level of service and this service will cost you nothing. We do not charge you a fee, our services are paid thru the listing agreement that a seller has with the listing real estate firm.

What is the difference between client and customer?

                Now, you may ask what is the difference between being a customer and a client? The main difference is that clients are entitled to a superior level of service than a customer, you may ask in what way? As a client, everything you share with a Buyer’s Agent is keep confidential – your plans, your motivation, your finances, etc. – all the information that a Seller’s Agent would use against you to get the best price for his client – the Seller. That is why a buyer talking to an agent, whose name is on the sign in the front yard is at a disadvantage from the start – the Seller’s Agent is gathering information while talking to you about his Client’s house. Yes, the Seller’s Agent wants to sell the house, but his loyalty is to his client , the Seller, not you, the customer. Make sure you are represented by a Buyer’s Agent, who has had plenty of experience in the market.

Still think you can do it on your own

                It’s perfectly true that you can buy a home without a REALTOR®.  But why would you want to?  Utilize a real estate professional to represent your interests in the transaction.  Especially when you don’t have to pay for their service!  When you go to the grocery store and can’t find the cucumbers, you’re going to ask the grocer where they are in the store.  Usually they’ll not only show you where, but help you choose the best ones.  The same is true for Buyer’s Agents!  Not only can we show you homes, but help you make the best decision/investment to suit your specific needs.

Working with a Buyer's Agent as a Team

Teamwork is the key to success. Keeping your Buyers Agent updated on any change in needs, what your likes and dislikes, all come into play when working as a team to find your home. Fluid communication will help your Buyer’s Agent find you the best home, for the best price in the shortest amount of time.  Call today to talk about your real estate needs!

Amanda Parmer has dedicated extra time and effort in pursuing the National Association of Realtors® designation of Accredited Buyers Representative to better serve her buyer clients.  She’s ready to get to work and help you with all of your real estate needs and she’s never too busy for any of your referrals!

HELP! Flying Space Junk Hit My House!

After a meteor struck western Siberia and more meteors threatened the entire globe this past Friday, the question is begged, "Who pays for damage to a home if hit by a space object?"
Rest easy!  "Your insurance covers falling objects," says Robert Hartwig, president of the Insurance Information Institute.  In the rare events when meteors have crashed through home owners' roofs over the years, insurers have paid the damage for those insured, Harwig says.

NASA scientist Laurie Leshin says, "The earth is peleted with 40 tons of space debris a year.  Most of that is teeny dust particles and rarely does it injure people or damage property."
Source:  "Who Pays for Damage From a Meteor?"  CNNMoney (Feb. 15, 2013)

Real Estate myths, debunked!

With most any business or profession, the general public has often formulated a group of beliefs that are commonly held as fact. Some of these beliefs may be well deserved; others may be born out of an isolated incident or reflect past practices that are no longer in place.

In this week’s column, we thought we’d go through a few of the more common real estate myths and try to separate fact from fiction.

1. When buying, working directly with the listing agent will help me get a lower price for the house. Some buyers think a seller can save money on real estate commissions if there is no buyer’s agent involved with the transaction.

In reality, sellers have usually negotiated to pay a total amount of commission, regardless of whether one or two agents are part of the process. If you don’t have a buyer’s agent representing you, it just means more commission for the listing agent. There can be exceptions, but in most cases, there’s nothing to be gained and a lot to be lost by not availing yourself of the expertise offered by a buyer’s agent.

2. The higher I price my house, the more money I’m likely to get for it. Pricing a house for sale is one of the most important yet most often bungled parts of a real estate sale. Some sellers think they’re building in extra negotiating room. But overpricing your house right out of the gate almost always results in a negative impression by buyers, as well as agents, and that impression will ultimately depress the perceived value of your property.

Removing the stigmatization of being overpriced usually requires that you compensate with multiple price reductions, resulting in a lower sales price than would have been achieved if the house was reasonably priced from the start.

3. If I look long enough, I’ll find the perfect house. Unfortunately, there is no perfect house. Unless you have an unlimited budget, buying a house is a set of compromises.

You might find a place that has the perfect lot, but the house isn’t everything you want it to be, or vice- versa. So unless you want to make house shopping a multi-year hobby, try to prioritize your needs and recognize there will be trade-offs. If you get 85 percent or more of everything you want, that’s doing pretty well.

4. Working with a lot of real estate agents will improve my chances of finding the right house. Some buyers go out there and fire up half a dozen real estate agents, thinking that the more agents they have beating the bushes, the better their chances will be in finding the right house at the right price.

First off, agents are all playing with the same deck of cards since there’s only one multiple list system to draw listings from. There really aren’t any “secret” listings that can give certain agents the inside track.

Second, developing a close relationship with just one agent will allow that agent to more fully understand your real estate needs and wants.

And third, agents work on 100 percent commission, so be judicious about using their time if you’re not really serious about including them in a transaction to buy or sell.

5. With all the information available on the Internet, I don’t really need a real estate agent. It’s true that you can find just about anything on the Internet. We’re sure you can find detailed instructions on the Web about how to remove your spleen. But that doesn’t mean such a thing is necessarily a do-it-yourself kind of project.

There are many internet sites that can help you locate possible homes to buy. But when it comes to negotiating a purchase or making sure a transaction actually gets to settlement, a laptop will never replace a real live agent.

6. In today’s market, it’s always a good idea to first lowball sellers. Since we’ve been in a buyer’s market for some time now, many buyers think “what the heck, let’s throw a lowball offer in there and see if we get lucky.” If it’s a house you’re willing to walk away from, that may be fine. But, if it’s a house you really want, lowballing the seller might poison your ability to ultimately do a deal.

When the initial offer is unreasonably low, sellers frequently get their back up, and they can become significantly less pliable when it comes to further price negotiations.

7. Sellers should never take the first offer. Every once and a while, we put a house on the market and it gets an offer right off the bat. Even if that offer is a good one, sellers frequently start second-guessing themselves and are reluctant to take a contract that comes in quickly.

We can’t tell you how many times we’ve seen a seller turn down that offer, only to find (six months later) that it was the one they should have taken. A fast offer for top-dollar doesn’t automatically mean you underpriced your house. You may have just been lucky to get someone who wanted a place exactly like yours, who was out there shopping right when you put it on the market.

8. If I wait, the market will turn in my direction. The only problem with this theory is that we’re in a very uncertain market, and trying to time the market is nearly an impossible thing to do.

Since we’re in a period of transition, the chances that market conditions will appreciably change to benefit either buyers or sellers is very low. In all likelihood, we will experience slow price appreciation, which will benefit sellers. But, along with that price appreciation, we will also have more homes come to market, something that will be to the advantage of buyers. As a result, neither side will find themselves in the driver’s seat over the foreseeable future.

9. Real estate agents try to drive up home prices so they will get paid more. People know agents get paid as a percentage of a property’s selling price. So it’s not unreasonable to assume that agents would have a vested interest in higher prices. But that’s not really true.

If someone pays an extra $5,000 for a house, the additional commission for the agent will be less than $100. Plus, if an agent were to blow a deal apart by pressing for a few more dollars in the sales price, their commission would become zero. No agent is going to risk a $7,000 commission in hopes of making an extra hundred bucks. Besides, the market, seller motivation and comparable sales dictate prices, not agents.

10. Now is a bad time to sell, or now is a bad time to buy. You wouldn’t think that both of these could be true at the same time, but unless you’re an investor, they can be. The reason is that houses aren’t purely a financial decision.

There are many other non-financial factors that can come into play. People get married; people get divorced; they have babies; any number of things can happen that may inspire you to buy or sell a home. Waiting for the most favorable economic environment to do so, isn’t always possible. Saving a few extra dollars in a real estate transaction usually isn’t worth compromising the quality of your home life.

As we said, there are misconceptions that exist in every business. Real estate is no exception, and there are many more myths than the few we touched on here. Solid information is always a key to success in making good decisions. So, when it comes to real estate, make sure you’re dealing with reality, and not being misled by perceptions that are out of date with how the process works, or out of sync with what’s going on with the market.

7 Things To Do Before Buying a House

1. Recognize home-buying as an investment.

For many military personnel aboard Camp Lejeune and MCAS New River, the Jacksonville, North Carolina area is not a permanent location.  However, the basic-allowance-for-housing, or BAH, is generous enough to cover a mortgage.  Many times, the mortgage ends up being cheaper than a comparable rental in the area.  Investing your BAH in your own mortgage can only help you in the long term, in most cases.

2. Ask yourself a lot of questions before you buy.

Buying a home can be of the biggest purchases in your life. Make sure you're making the right decision by answering questions about how this will better suit your long term goals:

• Is this a smart move?
• Do you need a house with a yard for a growing family or your beloved pooches?
• Are you tired of mowing a lawn and think a condo might be more suitable?
• Who will be responsible for the maintenance when I'm gone?
• What will be the return on my investment, should I decide to rent it or sell it?

Qualified Accredited Buyer's Representatives (ABR®) can better help you protect your interests.  Read more about this designation here.  Not every REALTOR® is an ABR®!

3. Don't rush into a home purchase.

Be methodical and make a well considered decision.  The real estate market in Jacksonville, North Carolina is ever changing.  When you think you've found "the one", it's time to negotiate the best deal!  

Spend time making sure your credit reports are in shipshape to get the best rates offered when you decide to buy. You can check your reports free once per year at www.annualcreditreport.com.

Food for thought: a 1% difference in a $200,000 mortgage can cost you more than $45,000 in additional interest over the life of a 30-year loan.

4. Focus on what you can afford.

Lenders will check your debt-to-income ratio. That is how much money is coming in versus going out in debt payments.

Here's how to calculate debt-to-income ratio before you start loan shopping: Add up all of your debt payments including mortgage principal, property taxes and insurance plus other recurring debt like credit card, student loan and car payments and do the math. Your ratio should be 36% or less. You want to do what ever you can to stay out of the debt danger zone.

If you gross $5,000 per month (before-tax income) you should not pay out more than $1,800 per month toward those bills. If you are, your credit-to-income ratio is not ideal. Remember: just because your lender says you qualify for a particular loan amount doesn't mean you can afford it.

If everything else is on target, buy a home you can comfortably afford on one income. That gives a couple some financial wiggle room in case one partner loses a job or decides to be a full-time parent.

5. Maximize your tax benefits.

As the tax law stands now, mortgage interest is generally tax deductible, which is great incentive for you to buy a home. You can lower your taxable income by the amount you pay in property taxes and interest.

Here's an example: If you earn $60,000 in gross income, and pay $10,000 in interest and another $2,000 in property tax, you can lower your taxable income to $48,000.

6. Build a move-in fund.

In addition to your earnest money deposit, appraisal fee and home inspection fee, you'll need a move-in fund to cover closing costs, furniture and other stuff that you didn't need in an apartment — like a lawnmower, for example.  

7. When in doubt, rent.

All of these tips may make you wonder if you're truly ready to buy. No problem, rent instead. Ultimately, putting off the purchase until you're truly ready — both financially and career-wise — carries much less risk than leaping before you look. 

Give me a call! I'm more than happy to help you with all of your real estate needs, and I'm never too busy for any of your referrals!!