Posted by Kim Adamof on Wed, Dec 09, 2009 @ 09:53 AM
Portofino Subdivision in Clayton North Carolina has several large lots available for sale. These lots can be purchased with no building timeline. Bring your own builder and your house plans. 
Some of the lots overlook the Neuse River. You can even build your own dock for canoe access directly onto the Neuse River.
These special lots are part of the Mountain to Sea Trail which runs along the Neuse River.
For a complete list of available lots and prices of each lot, visit us at Portofino.myHTR.com
Posted by Kim Adamof on Fri, Oct 23, 2009 @ 11:37 AM
November 30, 2009 is coming up fast. That's the deadline for closing a home using the first-time home buyer tax credit. There isn't much time to find a house and close.
With housing prices the lowest they have been in a decade, now is a smart time to buy a home. Here are six reasons why home buyers are running out of time:
The economy is improving
The worst recession since the Great Depression may be winding down, said The Conference Board on August 20, 2009. The analysts found that leading economic indicators rose 0.6% in July, following a 0.8% rise in June. That's two consecutive months of improvement halting 8 months of declines.
While the indicators can certainly slide backward new data, serious first-time home buyers should realize the days of wholesale bargains may be numbered.
Banking issues
Since May, 2009, Federal Housing Finance Agency appraisal regulations have slowed home sales transactions to the point that major lenders are telling loan originators that closings could be delayed by as much as an extra 15 days. The National Association of REALTORS® has found that 76% of its members reported delays in closing.
As the first-time home buyer tax credit comes to a close, banks will be inundated with loan applications for an already narrow production pipeline. Home buyers should allow at least 45 days to close, and a few days extra in order to have time to correct errors or delays during the closing process.
That means with the pipeline full of mortgages being processed, now is the time to get in line and make the deadline of November 30, 2009.
Federal bailout fatigue
If the government concludes that additional stimulus is needed for the economy, it's likely that the first-time home buyer tax credit will be extended, but you're taking a chance to count on it.
From Cash for Clunkers to Making Home Affordable programs, and many more, the federal budget is at its limits. In total, the economic stimulus bill has added $787 billion to a federal budget already careening out of control.
The largest federal deficit ever reached $1.3 trillion in August 2009, says the Congressional Budget Office's monthly budget review. The deficit grew largely because of the Troubled Asset Relief Program (TARP) $169 billion, in which $83 billion went to support Fannie Mae and Freddie Mac. Expenditures from the American Recovery and Reinvestment Act of 2009 (ARRA) have totaled more than $125 billion.
Inventory is being absorbed
Nationally existing, or pre-owned home inventories are slowly being absorbed, and are at a 9.4-month supply in July, while standing builder inventories were at 8.8-months-on-hand in June 2009.
At their highest during the recession, new and existing home inventories hovered at 11 months on hand. A balanced market is approximately six months of inventory on hand. New home housing sales have improved three months in a row in June.
If the current rate of improvement in existing homes remains at a steady pace, (from 9.8 months on hand in June to 9.4 months on hand in July,) the existing housing market could be balanced (on a national basis) in approximately 8 months.
Seller's market for affordable homes
Existing home sales in July 2009 increased four months in a row, says the National Association of REALTORS®. The national median existing home price was $178,400, 15.1% lower than a year ago.
Pressuring prices and inventories are foreclosures, which contributed to a 7.3% rise in inventory, which the sales pace absorbed, keeping inventory on hand at 9.4 months on hand for two consecutive months. Lawrence Yun, chief economist for the NAR says that improved affordability has driven sales with first-time home buyers taking advantage of the tax credit. "The demand for foreclosed and lower priced homes has spiked, and a lack of inventory is becoming a common complaint," he said in a statement to the media.
One-third of homes sold in July were to first-time home buyers.
Interest rates are going down
The percentage of foreclosures in the second quarter 2009 were the highest ever recorded by the Mortgage Bankers Association, and the trade organization says that foreclosures will grow and peak at the end of 2010.
One-third of homes sold in July were short sales or in some stage of foreclosure.
What's disturbing is that one out of three homes in some stage of foreclosures are prime fixed rate mortgages, suggesting that joblessness is impacting borrowers ability to pay their mortgages.
First-time unemployment filings rose mid-August, which indicates that the recession isn't over yet, and that housing inventories will continue to rise.
If that's the case, the Fed will strive to keep mortgage interest rates as low as possible to continue the momentum in housing sales.
Your competition is other home buyers
The accumulative effect of all these market conditions - rising foreclosures, low interest rates, jobless claims, government incentives and more are that home buying is going to be at its most attractive level through the end of summer and into the fall and early winter.
In July, housing sales transactions jumped 7.2 % - the largest monthly sales gain since 1999. Price-to-income ratios have fallen below historical trends, says Yun.
That means that home buyers at all price levels may jump into the market, crowding lender pipelines even more.
If you want a smooth transaction, and to take advantage of the $8000 tax credit, the time to act is now. Contact one of our professional buyers agent for more details.
Posted by Kim Adamof on Mon, Oct 12, 2009 @ 02:01 PM
Situated with access and views of the Neuse River, Portofino is a dream come true for the horse enthusiast or those seeking an executive lifestyle in the beautiful 300-acres of natural beauty that encompasses Portofino.
Nestled by North Carolina hardwoods, this gated community is full of southern charm and offers residents the quality of life they've been waiting for.
The location of the Equestrian Center on the Portofino grounds gives residents an opportunity to spend the day riding along the beautiful riding trails or to simply escape the hustle and bustle of a busy day by taking a quick afternoon ride.
Take a tour of the trails by watching this video. Experience life first-hand in Portofino.
See all homes for sale and lots available in Portofino at Portofino.HomeTowneRealty.com
Posted by Kim Adamof on Tue, Jun 30, 2009 @ 11:30 AM
Sales of Condos are likely to increase as retiring boomers downsize and buy second homes. This is especially true in the high-end market, where more wealthy folks are trading in luxury homes for luxury condos.
The First-Time Homebuyer Tax Credit of $8000 and cheap mortgage rates have brought homeownership within the grasp of many renters. Those who can't afford single family homes are opting for a condo.
When you own a condo it's typically, but not necessarily, in a building with other units. With condo ownership everyone shares in the ownership of the common areas equally or based on some predefined formula. The common areas, for example, include the structure (floors, walls, ceiling...etc) of your particular unit/building, club house and pool, if any, and any other structures.
Here are 6 Tips when considering purchasing a condo in the Raleigh Real Estate Market:
HOA Fees not escrowed by Lender.
HUD has considered the idea of escrowing condo association and HOA dues; that is, requiring FHA borrowers to pay dues and fees into an account and then paying the condo association from the money collected. The logic behind this idea is not unreasonable because unpaid condo fees or a lien against the property which means that property owners who don't pay even small charges may find that they face foreclosure. However, in the face of public comments HUD has decided that it will not require condo or HOA owners to escrow fees.
Understanding Condo Condition
Potential owners must thoroughly understand what their purchase will involve. You should hire a home inspector to check the physical and mechanical condition of your unit.
Too frequently people don't take the time to investigate repair issues, so they buy in and then find they have to make additional financial contributions to fix issues with the building. Owners can personalize their condos, but some projects must be pre-approved. As aging buildings require updates, many associations are allowing more significant changes, including additions, so long as they don't disrupt common elements.
Major repairs to the outside or commons areas, are bid out, then an assessment is charged to each homeowner. The assessment must be paid prior to selling the condo. This is not a planned or budgeted expense.
Ask about the associations operating budget
Prospective owners have a right-and should make the time-to examine an association's books and records. It's important to understand the financial stability of a condominium, the increases in its association fees, its reserves. If the questions can be answered in a positive way, then a person can be assured that the condominium is reasonably well managed. Bad signs: more than 10% of owners are late paying their condo association fees, and more than 50% of maintenance liabilities aren't funded.
Your association may charge a use fee for common amenities like a pool or clubhouse or even collect a refundable security deposit. It may not seem fair for unit owners who already pay monthly maintenance fees. On the other hand, many associations are struggling to pay bills and want to be in position to make timely repairs to a clubhouse should neighbors damage it. Collecting usage fees or security deposits is a way to accomplish that.
Are you able to follow your amenities rules? Read the codes and regulations
Owning part of a community can have many benefits. Owners get to enjoy the common amenities-perhaps a community pool, attractive grounds, or recreational opportunities. Owners are also subject to association rules and regulations. The rules can apply to such factors as assessments, landscaping, parking, noise, number of cars, and even your choice of paint colors. Many restrictions are designed to preserve the complexes value, but you may find the lack of freedom stifling. Make sure you know what you're in for.
Talk to other owners
Talk to other occupants. A high number of renters or complaints about the condo association should be red flags.
Typical areas of conflict are noise, pets, and parking. Association rules attempt to strike a balance between the best interests of the individual and the community. Rules are not usually onerous and are commonly adapted by the association to fit the people who live there.
Get condo insurance
The condo owner will need to buy a condo insurance policy. This is very similar, but not exactly the same, as apartment renter's policies. The cost for these is typically very low especially when compared to a homeowner's policy. When comparing monthly costs be sure include the cost for insurance plus the condo fee. The primary reason for the lower cost is that the building structure insurance is part of the condo fee as it is common property.
Posted by Kim Adamof on Wed, Feb 04, 2009 @ 02:04 PM
According to the EPA, the purpose of this map is to assist local organizations to target their resources and to implement radon-resistant building codes. This map is not intended to be used to determine if a home in a given zone should be tested for radon. Homes with elevated levels of radon have been found in all three zones. All homes should be tested regardless of geographic location. Important points to note:
- All homes should test for radon, regardless of geographic location or zone designation
- There are many thousands of individual homes with elevated radon levels in Zone 2 and 3. Elevated levels can be found in Zone 2 and Zone 3 counties.
- The map is not to be used in lieu of testing during real estate transactions.
Home inspections can test for you and charge about $100-$150 for the service. You can use charcoal canisters and do it yourself.
The most important step when testing is keeping windows and doors closed for the proper length of time, depending on the testing kit used.
Posted by Kim Adamof on Mon, Feb 02, 2009 @ 03:11 PM
Clayton is a great little town just over the Wake County border. There is alot to offer a family moving into Johnston County. Good schools, a parks and rec department, shopping and a family-friendly environment.
Here is an update on the real estate stats for Clayton.
1st Quarter 2008 223 homes sold at 98% List to Sales Price.
2nd Quarter 2008 271 homes sold at 98% List to Sales Price.
3rd Quarter 2008 257 homes sold at 98% List to Sales Price.
4th Quarter 2008 173 homes sold at 97% List to Sales Price.
January 2009 only 20 homes have sold at 95% List to Sales Price with an average Days on Market of 102.
Since the fall, sellers are now taking less for their homes in order to sell. Where are all the buyers? Only 20 homes have sold all month. Even with low interest rates and motivated sellers, where are the buyers? This is a great time to pick up a deal.
Posted by Kim Adamof on Mon, Feb 02, 2009 @ 01:44 PM
When I work with buyers, alot of times they'll say they don't want to live in a neighborhood that has a Homeowners Association.
To that I say, "It depends on what you are looking for."
Homeowners Associations have a bad reputation for annoying people, increasing fees, and not doing much with the money collected.
That's probably true in some areas of the country.
You can find a house on an "unrestricted" lot. That means the county enforces county codes & laws. You can't control that your neighbor has 15 junk cars in his front yard or the other neighbor decided to move a mobile home into the back of his yard.
It also means that you can run a business out of your home. As long as you abide by county rules you can do whatever you want.
Most subdivisions have different levels of covenants which are recorded in the Register of Deeds office. Some are very detailed and some are not. Its important to read the most current version of the covenants when purchasing a home.
Even though a subdivision has covenants, it doesn't mean they have a Homeowners Association.
Subdivisions without a formal Homeowners Association depend on neighbors to organize themselves for managing the front entrance and open space -- or not. There are many subdivisions that do not have an entrance sign or maintain the sign that was originally installed.
If a neighbor wants to complain about another neighbor and try to enforce the covenants, they will need to directly confront their neighbor about the issue. If they don't get anywhere then they will need to go to the county and file a complaint.
The job of the association is to enforce the covenants and protect the continuity of the subdivision.
I have found 2 different "levels" of Homeowners Association around the Raleigh NC area.
First is the basic "sign maintenance" association. The homeowners collect a small annual fee from all the neighbors. The fund is used to maintain the front entrances and open space. Lawncare companies are usually paid from this fund to mow and mulch. Sometimes an outside Homeowners Association company will collect and manage this fund.
The more in-depth homeowners association has higher fees but at the same time, cover more services, such as a pool.
Homeowners Associations are managed by an outside third party. If a neighbor has a complaint, there is someone to go to.
Our home is most likely the biggest investment we make in our life so we need to protect our investment. Buyers are more likely to buy into a neighborhood that is well maintained because they are investing into their future.
No matter what type of HOA you have, ultimately they are there to protect your investment.
Posted by Kim Adamof on Mon, Jan 26, 2009 @ 09:37 AM
Our Multiple Listing Service, Raleigh MLS, offers an opportunity to search for HUD Compliant Senior Housing. As a SRES agent, I know there are other types of housing that would work well for the active adults who want to live around other like-minded people.
HUD's website states: The Fair Housing Act (FHAct) protects all citizens from discrimination on the basis of ... familial status (families with children under the age of 18 living with parents or legal guardians; pregnant women and people trying to get custody of children under 18).
Senior Housing Exemption
Although the FHAct was amended in 1988 to prohibit discrimination on the basis of familial status, Congress intended to preserve housing specifically designed to meet the needs of senior citizens. Housing that meets the FHAct definition of "housing for older persons" is exempt from the law's familial status requirements, provided that:
- HUD has determined that the dwelling is specifically designed for and occupied by elderly persons under a Federal, State or local government program or
- It is occupied solely by persons who are 62 or older or
- It houses at least one person who is 55 or older in at least 80 percent of the occupied units, and adheres to a policy that demonstrates intent to house persons who are 55 or older.
Therefore, housing that satisfies the legal definition of senior housing or housing for older persons described above, can legally exclude families with children.
I came across an article by Lisa Dunn called "Independent Living, Active Adult, Housing with Services, Assisted Living. What's the Difference?!?"
Basically it comes down to MARKETING. Click here for a FREE eBook on ALL the of active adult communities around the Triangle Area of North Carolina, I'd be happy to help.
Posted by Kim Adamof on Mon, Jan 19, 2009 @ 03:33 PM
Is buying new construction different from buying a re-sale? Yes.
First of all, you're buying from the person who built it, not the person who called it home. Often, the property is just one of many they are trying to sell.
1. Hire an agent
One that specializes in buyer agency and isn't affiliated with the builder or listing agency associated with marketing the subdivision. Have your agent perform a Comparable Market Analysis. Don't trust the closing data on the MLS. Oftentimes they will hide large seller subsidies. Go to the tax records to see what units are closing for. The problem with tax records is you can't see the upgrades or closing costs paid by the seller. Buyers agents can be your advocate during the process and their services don't cost you anything, since the builder pays commission.
2. Be creative during negotiations
Builders don't like to drop their prices. Instead, ask them to cover closing costs or upgrade the kitchen for free. Make your offer SUPER aggressive on closing costs and seller subsidy. The subsidy won't show up on the tax records, so helps their re-sales.
3. Get it in writing
Don't sign until everything has been negotiated, agreed upon and written into the contract. A lot of builders require you to use their "standard" offer to purchase and not the North Carolina Offer to Purchase and Contract. If you decide to go with the builders rep to put in an offer, READ the contract carefully.
4. Be wary of upgrades
They're where builders make the most profit. Don't take upgrades you don't want or can't afford.
5. Research the builder
Visit other developments and talk to home-owners. Google the developer for reviews, testimonials and news. Ask what percentage of homes in the subdivision are currently closed/sold. And make sure that is CLOSED units. None of this "held back" trick.
6. Ask for a guarantee
You're often buying a home that is not completed. What guarantees do you have the home will be ready on time? Your Buyers Agent can be your go-between during the process. Its their job to follow up with builder, builders rep, etc. to make sure the closing takes place on time and that all parties are kept informed.
7. Get the home inspected
New homes have problems too. Hire an inspector to make sure everything is safe and up to code. I usually give the home inspection report to the builder and say "fix it". You can also hire the inspector to come back and re-inspect, of course for a fee.
8. Get your own appraiser. If you are getting a mortgage on the home, your lender will order an appraisal by an independent appraiser. If you are paying cash, make sure you choose the appraiser and not the builder. Also, if you are using the builder's "approved" lender in order to get some closing costs paid, you can ask for your own appraiser instead of the lender's. This way you'll know you are paying an acceptable price, not an inflated one.
9. Bumper-to-bumper coverage
New homes should come with a warranty from the builder. Know what is and isn't covered and for how long. Builders usually offer a 2-10 Structural Warranty. This covers the structural integrity of the home for 10 years. It's transferable to the next homeowner should you sell within 10 years. Ask for a one year builder warranty. This allows you to get everything covered for 1 year after moving in.
10. Look to the future
Check with the city to see what is planned for the surrounding area. If you have a view, will it still be there in 5 years? Your buyers agent can assist you with this so that you are informed when putting in an offer.
11. Find your own lender
Don't use the builder's lender. Shop around for the loan that is best for you, not them. A lot of times a builder will offer $3000 in closing costs if you use their lender and closing attorney. In my experience, I get the closing costs paid and still use the buyers own lender and closing attorney. Need another tip on how to do this? Let me know.
12. Watch out for Condo Fee hikes after you close. Don't think this doesn't happen. Sure the condo association is a bunch of owners, and they don't want the fees to go up, but the builders tend to make them artificially low to attract buyers. Expect the condo fees to take a 10-15% jump after you move in.
13. Place Earnest Money in a Trust Account. If possible, place builder deposits or earnest money in trust accounts, not the builder's general operating account.
Posted by Kim Adamof on Thu, Jan 15, 2009 @ 09:25 PM
Buying a home thru HUD and closing the deal is completely different than anything you have ever done before. We have created a brochure for you as well. Here are some of tips.
* Real estate agents MUST be a HUD approved
* Agent & buyers work with the management company (not HUD)
* New HUD listings begin with a "bid process" submitted to the management company
* Each property has it's own "incentives" and it's important to know the "codes"
* Homes that will be owner-occupied are given first preference
* Can bid MORE than offered price but buyer must pay the difference
* HUD has an appraisal - but it's not automatically provided and has to be requested by the buyer
* There is a property condition statement for each home
* It's recommended that the buyer get a home inspection (their expense)
* Can be purchase non-owner occupied and HUD could offer 85% LTV loan
* Penalty of $10 per day if closing does not occur according to the date on the contract.
* HUD provides the title work
Click here to search for North Carolina HUD homes by county
I am a HUD-certified realtor who can walk you through the process when you are ready to bid on a HUD home. Let me know if you'd like a HUD Brochure explaining the process further.