Zach Schabot

He said, she said: Rainy Days

2012-01-09T14:56:00.002-05:00

Whenever I need inspiration or blog topics, I ask my friend Jenn Cole who blogs at www.noplacelikehere.biz. You should check her out.

Today, we decided to pick a topic - Rainy Days - and both write about the topic. Hence, the title he said, she said. Here is what she said.

Rainy Days confuse me.

You know what I have never been able to figure out? Why do I feel most productive on days it rains? It doesn't make sense. And back when I worked on-site with Beazer Homes, the rainiest days were some of our busiest days. I don't get it.

Also confusing - that song by Bob Dylan Rainy Day Women #12 & 35 . What? What the hell kind of song title is that? He sings about people being stoned which probably says alot about the choice.

You know what else confuses me about rainy days? Why do we keep telling brides that rain on your wedding day is good luck? Ha! Rain on your wedding day is miserable. Can't you just appreciate the fact you are getting married and enjoy it? Why perpetuate the lie? Do you need justification for being happy on your wedding day regardless of the weather? Good luck.

As I write this, I realize it is coming across a little angry. It is probably because Jenn just bought me coffee and I don't normally drink coffee in the afternoons. I feel a bit like Will Ferrell in Kicking and Screaming.

Okay - it stopped raining. So I will stop writing... it is not going well.

My Columbian New Year

2012-01-04T13:46:00.003-05:00

Last week, we got to ring in the new year with some very special friends. We were visiting my hometown of Kingston, NY with 3 kids and 8 adults and stayed in a beautiful old farm house (part of the home was 200 years old).

One of our friends, Andrés, is originally from Columbia, where they have some very symbolic New Years Eve traditions. This is the first year he has not been in Columbia for New Years Eve so we wanted to help him feel a little more at home. Here is my experience:

Tradition 1. Wear yellow underwear. It is said to bring wealth and prosperity in the coming year. Well, I don't actually own any yellow underwear so I left it up to my friends to pick some up at the store while they were out shopping. Everyone had a good laugh when I opened the bag to find yellow Flash Gordon superhero briefs. Ha ha ha, joke's on me. The REAL funny part came when we all realized they bought the wrong size. I haven't fit in a 28 waste in two decades. But I tried...for the cause. And no, there are no pictures.

Tradition 2. JUMP! At the stroke of midnight, we were all standing on a chair (or couch) and we jumped down to the floor. This was to help us take on 2012 with momentum and energy.

Tradition 3. The suitcase run. After we jumped down and kissed our loved ones, we each grabbed a suitcase and ran around the outside of the house. This tradition ensures good travels in the coming year. Not sure if it meant anything significant but my wife and I held hands while we ran, hopefully that means we can go somewhere together.

Unfortunately we could not find any grapes with seeds because there is one more tradition we tried to uphold. But since we couldn't pull that one off, we substituted with a few American traditions...we drank Champagne and watched Dick Clark's New Year's Rockin Eve.

Nappy New Year!

Big City vs Small town

2011-12-20T02:04:00.004-05:00

The big city. The bright lights. The big buildings. The masses of people from all nations moving briskly along city streets. Horns honking. Street performers. Festivals. Shows. Culture. It can be exhilarating and overwhelming. In a city like New York or LA or Chicago (or Beijing or Tokyo or Mexico City) it is hard to keep up. Hard to make your mark as an individual.

Many of my friends who live in big cities are always bragging about how much they love it. I heart NY.

Yet most people choose to operate within a couple blocks of where they live. They create their own small town within the big city. Because of the vast amount of choices, they self-limit their selections and revert to what is safe. What is close. What is convenient.

We have a global society that is expanding faster than ever before, and it is shrinking just as fast.

12 Predictions for 2012

2011-12-20T01:18:00.002-05:00

My 12 Predictions for 2012 (in no particular order of importance or relevance)

1. Apple begins development of the iCar.

2. Facebook surpasses 1 billion users.

3. I will buy a new watch.

4. The US Mens basketball team will not win the gold medal at the Olympics.

5. Colin Powell will announce he is running for US President.

6. Someone from Kansas will win American Idol.

7. Tiger Woods wins the Masters.

8. Richard Branson will fly to the moon.

9. LSU will win the national championship in football and baseball.

10. HUGE breakthrough in contact lens technology. (think terminator movies)

11. US unemployment falls below 8%.

12. The world will not end on December 21, 2012. (sure hope I’m right about this one)

The Quiet Cube

2011-12-12T09:31:00.002-05:00

My 3 year old daughter Emma needed to start her day in the quiet cube. The quiet cube is 3 foot x 3 foot x 3 foot wooden box lined with pillows in her daycare classroom. It is, for lack of a better a term, a safe zone. It allows the children to take a few minutes for themselves, to just simply have some quiet time. It is not for sleeping, and it is only large enough for one child so there is no tomfoolery. Emma had a big weekend - soccer, two birthday parties and lots of Christmas festivities- she had a case of the Mondays. She needed a few minutes to herself before tackling the week.

What I realized earlier this year is I needed a quiet cube too. Actually, I have two. We have one of the coolest offices in the Triangle at Go Realty but even that isn't enough to keep me energized some days. My first cube is a place called Cafe Helios. It is a local coffee shop in Downtown Raleigh that serves some of the best brew in town. This is where I go when I need people around but also need to be productive.

My second cube is the NC Museum of Art. This is when I need total quiet. It is one of the most serene settings in the area- think of a huge outdoor spa without the robes. It is close enough to stop for 15-20 minutes and just decompress. The phone stays in the car, computer stays closed and eyes remain open.

Don't put up with a case of the Mondays. Or Wednesday afternoons. Get a quiet cube.

When we need it...

2011-12-09T11:39:00.002-05:00

Last night, I dropped my Macbook charger on my big toe. And it hurt. Alot. It still hurts. So I got to thinking..."With all this fancy technology, why don't we have a more advanced way to charge our devices? Why am I still carrying around this clunky charger?"

I asked this question to Jim Garman, and his answer was amazing. He said, "When we need it, Apple will give it to us."

Silence.

What a reputation to have! Apple has become known as the company delivering simple, beautiful, intuitive technology we didn't even know we needed, and now can't live without. I wonder what else I don't know I need?

Nostalgia

2011-06-08T23:33:00.003-04:00

There is a new community being built in Raleigh called Inside Wade. The advertising campaign is very compelling, it plays on a nostalgic theme- "Remember the way things used to be..." kind of deal.

In case you don't know me, I am a very nostalgic person. I love looking through old photos and home videos, I have trouble throwing things away and I absolutely cherish my family.

Nostalgia is a funny thing, though. We are drawn to things that remind us of the good times in our past. But can we actually recreate them? Are we constantly searching for an unattainable feeling? We travel around the world and marvel at the old buildings and we say "they just don't make em like they used to..."

Why are we so ashamed of the present? And afraid of the future? Instead of recreating the past, why aren't we trying to build great things now so the next generations can say the same thing about our era? Why are we scared to step outside our comfort zone and build things like the Nautilus House? Maybe a little extreme but since when did "creativity" become the number of pieces of crown molding you can tack on a formal dining room?

Dear world, please send us an imaginative builder for the uninspired middle class.

"I have a new home," said the blog.

2010-02-15T11:23:00.002-05:00

I will be transitioning this blog to my new website which can be found at www.zachschabot.com. Hope you will visit after it moves!

Market Update

2010-02-08T12:22:00.002-05:00

Here is a quick market update provided by Brad Arendt with PrimeLending- More good news! Are you going to wish you had, or be glad you did?

******************************
INFO THAT HITS US WHERE WE LIVE The Pending Home Sales Index recovered from its November slump, increasing 1.0% in December, putting it 10.9% over its level of a year ago. National Association of Realtors chief economist Lawrence Yun sees "...a broad improvement over year-ago levels. December activity was the fifth-highest monthly tally in two years." The slump was attributed to the rush before November to grab the tax credit set to expire at the end of that month.

We now know the tax credit was extended to buyers who can sign a contract by April 30 and close on the home by June 30. It's also been expanded, adding a $6500 credit for repeat buyers to the $8,000 credit for first timers. The NAR's Yun estimates 2.4 million households should take advantage of the credit this year.

The NAR also released their adjusted overall outlook for this year and next. They estimate existing home sales will grow from 5.19 million in 2009 to 5.66 million in 2010 and 5.7 million in 2011. They see new home sales growing from 375,000 in 2009 to 446,000 in 2010 and 637,000 in 2011. They believe prices have bottomed, projecting a 3.4% hike in the median price for existing homes to $179,800 this year and then a 4.3% rise to $187,500 in 2011. New homes should go up 3.7% this year to a $221,300 median price and then 4.7% in 2011 to $231,700.

Tryon Road Realignment Petition

2010-02-08T10:29:00.003-05:00

Visit this link to sign a petition in regards to the realignment of Tryon Road. The road is in desperate need of repair and improvement. It will be a huge benefit to those traveling between Raleigh, Cary and Garner. Click below to learn more.

http://www.renparkonline.com/tryonroad/

Baseball Season

2010-02-04T11:34:00.001-05:00

I drove by Shaw University yesterday in downtown Raleigh. Had my windows cracked and heard the musical PING from the batting cage. I got chills. I can't wait for baseball season. Hockey is fine, College Basketball is fun too. NBA Basketball...some days. But baseball season- its my favorite. Hope to see you at some games this year...

The Future of Housing Demand: 4 Key Demographic Trends

2010-02-02T19:17:00.003-05:00

Great article on the future of housing from US News and World Report

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The age of the suburb is over, and America’s great reurbanization lies ahead, expert says
By LUKE MULLINS
Posted: February 1, 2010

Demographic shifts and changing values will increase demand for pedestrian-friendly, mixed-use communities in both urban and suburban settings, according to John McIlwain of the Urban Land Institute. "The age of suburbanization and growing homeownership is over," McIlwain said in a recent report, "Housing in America: The Next Decade." "The coming decades will be the time of the great reurbanization as 24/7 central cities grow and suburbs around the country are redeveloped with new or revived walkable suburban town centers." This transition will be fueled by the growth of two-person households, an end to baby boomers' suburban infatuation, and public policies designed to stimulate compact development. In his report, McIlwain points to four key demographic trends to watch going forward:

1. Older baby boomers (ages 55 to 64): McIlwain divides the traditional baby boom generation into two subgroups, with the older group comprising roughly 26 million Americans. Today, many older baby boomers are stuck in their suburban properties because of the real estate bust, which has put them underwater—owing more on their mortgage than the property is worth. But McIlwain says that older baby boomers who can sell their homes aren't necessarily following the road maps of previous generations. "Those that can move are no longer flocking to the Sun Belt, choosing instead to move closer to their children and, more importantly, their grandchildren," McIlwain says.

Noting that they are healthier than their parents' generation, McIlwain predicts that older baby boomers will likely defer transitioning into retirement communities for at least a decade, thereby limiting demand for such facilities. They will instead prefer to purchase condominiums in the "mixed-age and mixed-use communities" of more urbanized settings. "Walkable, urbanized suburban town centers will see an influx of aging boomers," McIlwain says. He points to town centers in Bethesda, Md., and Reston, Va., as examples. "Once the boomers can sell their homes and buy condos, these centers will thrive during the decade ahead."

2. Younger baby boomers (ages 46 to 54): There are roughly 52 million Americans in what McIlwain considers the younger baby boom generation. Although they are now entering their peak earning years, younger baby boomers have significant housing market headaches in front of them. On top of the phenomenon of negative equity, many will have a tough time locating buyers for their suburban homes. "The older boomers sold their suburban homes to the larger population of younger boomers looking to move up," McIlwain says. "The younger boomers now have the much smaller generation X, now in their late thirties to mid-forties, to sell to." This development will work to restrict demand for many suburban houses going forward.

Meanwhile, although younger baby boomers are at the perfect stage in their lives to buy second homes, the housing bust and economic recession have undercut their ability to do so. "Most younger boomers will be unable to afford a second home because of diminished earnings, tight credit, and the lack of equity in their first home on which to draw for a down payment on their second," McIlwain says. "Only those second home markets that appeal to the wealthiest will remain strong, though there may be opportunities for lower-cost but well-designed, smaller second homes."

3. Generation Y (late teens to early 30s): The real estate bust has had a significant impact on how generation Y's 83 million Americans view homeownership. As they watch millions of Americans lose their homes to foreclosure, the allure of buying real estate has become less powerful, McIlwain said. "They will be renters by necessity and by choice rather than homeowners for years ahead," he says. "They have lost the confidence of prior generations that homeownership is a way to develop wealth." At the same time, many members of generation Y prefer urban settings to the suburbs they were raised in. "They want to be close to each other, to services, to places to meet and to work, and they would rather walk than drive," McIlwain says. "They say they are willing to live in a smaller space in order to be able to afford this lifestyle."

4. Immigrants: There are roughly 40 million foreign-born people living legally or illegally in the United States today, and this demographic is expected to grow swiftly in the coming years. McIlwain notes that immigrant populations tend to cluster together. "These clusters have moved from the central cities where they tended to gather in the past to the inner suburbs over the last two decades," he says. Housing demand from immigrants may one day flow to the larger suburban homes that are expected to face downward pricing pressure in the coming years. "The reduced prices of these homes and their larger size … make them an attractive option for larger immigrant families, though prices will have to drop considerably for this to happen," McIlwain says.

Busy Bee Workie Workie

2010-01-13T22:24:00.002-05:00

I just realized that I have not written on this blog in quite sometime. We have officially launched Go Realty and things are moving FAST! Don't let anyone tell you the Triangle market is down. I have seen more activity in the past few weeks than in the past few months! Here is a quick update:

I have a couple new listings (be sure to check out the links on the right, there are more coming soon). These are all great houses!! I am lucky to be working with such wonderful people.

Our "month o' fun" is going so well. A month of grand opening parties for Go Realty is exhausting and magical all at the same time. I am blown away by the support and I am amazed at the power of collective belief.

On top of all that, I am headed to the International Builder Show next week in Las Vegas. I will be around some of the greatest minds in the housing industry for 5 days. Its a great way to hone my skills and learn whats REALLY happening out there.

Stay tuned, big things to come in 2010!!!!

Can you guess what home buyers want now?

2009-12-08T14:06:00.002-05:00

The top 5 design trends for 2010 reflect desire for value and quality, not lavish amenities and conspicuous consumption

By Marcia Layton Turner, Cyberhomes Contributor
Published: December 8, 2009

Can you guess what home buyers want now?

Posted using ShareThis

This just in...

2009-11-24T10:17:00.003-05:00

One of my "extra curricular" activities is with the Triangle Sales and Marketing Council. We filmed this video as our entry for a National Award. Hope we can bring home the gold! This video was just a snap shot of the amazing things we accomplished this year. We have a dynamite organization with the best professionals around! Special thanks to Allison Moriarty of Go Realty. Linda Dickert, Jenny Martin, and Allison Chetwood of the Stone Agency. Jean Paul Dame of Firehorse Films and Andy Ladner of the HBA of Raleigh Wake.

US Veteran Rita Bonville

2009-11-09T14:53:00.003-05:00

On Saturday, I attended the Veterans Day Parade in downtown Raleigh. We had so much fun seeing the bands, the military vehicles and all of the soldiers- past, present and future. But there was one Veteran in the parade who was extra special, my grandmother Rita Bonville. She will be 95 years old in January and was a nurse during WW2. She got to ride in an antique Model A! When her car came down the street my kids were yelling and waving at their great grandmother and it put a big smile on everyone's face. Way to go Nanny B, we're proud of you!!

New, existing home buyers get new tax credit :: WRAL.com

2009-11-08T22:10:00.001-05:00

Check it out, I was recently quoted on WRAL. They were doing a story about the new tax credit extension.

FAQ about tax credit extension

2009-11-05T15:16:00.002-05:00

Stay tuned for official word but the UI bill including the homebuyer tax credit extension and expansion has passed the House by a vote of 403-12 after passing the Senate last night 98-0.

The new provisions take effect as soon as President Obama signs the bill, which we expect will be before the weekend. I'm including below a couple questions I've received in the last couple days about the new credit:

1. Existing homeowner credit: Must the new house cost more than the old house?

A. No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

2. I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?

A. Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

3. I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?

A. Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phase-out range).

4. I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a non-negotiable price of $825,000. Will I be able to use any of the $6500 tax credit?

A. No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

5. I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?

A. Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight, what he did since 3 years doesn't impact eligibility.

6. I am an eligible first-time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?

A. You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

(thanks to Chris Gosselin at NAR for information)

Partnership with US Veterans Corps

2009-11-01T18:15:00.004-05:00

Thanks to my friend Andy Ladner, I have recently been given the opportunity to partner with the United States Vetrans Corps and I am proud to be involved with such a special group. But let me be upfront. I have never served in the military. Never shot a real gun. Never had to be away from my family for more than a few days. I do not claim to "understand" what a veteran has experienced. It is simply impossible.

BUT I do believe we have something in common- that is the willingness to serve others for the greater good. I went to Catholic school for 9 years, but I don't mean this as a religious statement. I just genuinely enjoy helping other people. I love volunteering. I love connecting people who will do better collectively than as individuals.

We have two underlying philosophies in our company. The first is simple. Treat people like rockstars. Veterans have earned the right to be treated just a little better than everyone else...like rockstars are. Second- 'give it back' - With every transaction I donate $50 to the Big Brothers Big Sisters program and my company matches my donation. I have been involved with them for a number of years and they do great work. Now I hope to help members of another oganization who do great work. Interested? For information about our program and other USVC membership benefits, contact Andy Ladner at aladner@theusvc.com

By working together we will build stronger communities with service at the core of what we do.

Big Brother Big Sister Fundraiser

2009-10-08T11:01:00.003-04:00

I recently had the pleasure of meeting Ron Francis of the Carolina Hurricanes (oh- and the Hockey hall of fame) at a fundraiser for the Triangle Big Brothers Big Sisters. What a great event! There are hundreds of kids on the waiting list for mentors in the Triangle. That is part of the reason why I am donating $50 of every transaction to BBBS and my company, Garman Realty will match it! That is $100 going to a wonderful cause and it will help people right here in the Triangle. Do you know someone who needs help buying or selling a home? Have them call me today so we can continue to help create "Big Magic!"

Raleigh homebuilder up for TheView's Ultimate Volunteer

2009-10-06T12:19:00.000-04:00

Tom Gipson, one of our HBA builder members, has been selected as one of the ten finalists for the Ultimate Volunteer contest sponsored by the ABC Show, the View. The winner of this contest will be announced nationwide on the show. Tom is being recognized for his efforts with Habitat for Humanity and his founding of the nationwide Builder Blitz program to build houses across our country. His charitable efforts represent the heart of our organization and we need to help him be selected as the Ultimate Volunteer. If he wins, then all of the members of the home builders association win as well.

The winner of this contest will be determined by online voting from Tuesday through Sunday. Please click here http://theviewultimatevolunteercontest.com/home/vote.php to vote. You can vote once a day with your email address.

I want to encourage you to send this email/info to all of your contacts and post it on your facebook, twitter, etc. I will be sending this out twice a day to remind everyone to vote. Get your teenagers to post it as well.

Let’s make it happen!

Seth Godin figured me out

2009-09-15T09:35:00.004-04:00

Every day I get dozens of emails, tweets, RSS feeds and eNewsletters from some of the worlds best thinkers. But one stands out. Every morning, I wake up and look for the latest blog entry from Seth Godin. Here's why. Seth provides clear, concise, relevant topics from technology to business to education to customer service to non-profit organizations and everything in between. But here's the kicker: His approach is not "Here's a little wisdom, buy my book if you want the rest of the story." He doesn't use this forum to promote his business, seminars, best selling books, or consulting services.

And guess what? Every day I am motivated by his thoughts and pass along his articles to family and co-workers who I think would enjoy them. It helps me get in the right mindset for the day.

And guess what else? When Seth publishes his next book, I would wait in line to buy it. Because I know his information will be relevant and valuable. Just because he doesn't charge for it the first time, doesn't mean it isn't valuable. Its just the opposite. It has to be that much more valuable or it would be easy for me to disregard.

As a matter of fact, Seth- if you happen to read this- put me down for two of your next book whenever you write it. I'll keep one and give one away. And let me know when you come to Raleigh, NC. I'll be there.

Socialnomics- Are you ready?

2009-09-10T12:01:00.000-04:00

Use your IRA to buy a home. Good idea or Bad Idea?

2009-09-09T23:27:00.003-04:00

Did you know that first time buyers have the ability to pull money out of an IRA to use towards the purchase of a principal residence? If you act quickly, you may be able to pull money out of your retirement account, buy a home, then pay yourself back with the $8000 tax credit. You should consult your CPA for tax consequences but why not take advantage of a great loophole for first time buyers!! Act fast, only 82 days left until the tax credit deadline. Contact me to discuss your individual questions.

From Investopedia (a FORBES Digital Company)

IRA owners can make penalty-free distributions to buy a first home for themselves, their spouses, children, grandchildren or other family members. This distribution cannot exceed $10,000 for each spouse's lifetime, and exempts IRA owners from the early-distribution penalty (which applies to distributions occuring before an IRA owner reaches age 59.5). You do not have to buy a pre-existing home in order to be eligible for the waiver. The waiver also applies to building or rebuilding a home.

The distribution received must be used to pay qualified acquisition costs before the end of the 120th day after the IRA owner receives the distributed assets.

According to the IRS, you are a first-time home buyer if you have not owned an interest in a principal residence during the first two years prior to the purchase of a new home. Principal residences include mobile homes and house trailers, houseboats and stock held by a tenant-stockholder in a cooperative housing corporation.

My little monkey jumping on the bed...

2009-09-08T12:46:00.002-04:00

For those of you who know about the "Monkey's jumping on the bed..." Enjoy!

Raleigh Fair Housing Hearing Board announces new partnership

2009-08-25T23:05:00.005-04:00

Dr. James West addressed the crowd today, as the City of Raleigh's Fair Housing Hearing Board announced a new parntership with the Wake County Clerk of Courts. The partnership will help distribute copies of the Tenants Rights and Obligations Handbooks in the Wake County Courthouse. For more information about the Fair Housing Hearing Board please contact Tyrone Lindesy at 919.996.5711

go realty

2009-08-18T20:52:00.007-04:00

People will doubt that a new company can start, survive, and thrive in "this economy."

""There is nothing wrong with change, if it is in the right direction” Winston
Churchill

Some will say it is a bad idea.

“People underestimate their capacity for change. There is never a right time to do a difficult thing. A leader's job is to help people have vision of their potential.” - John Porter.

The future is being shaped now. A leader has a vision and the tribe is following. Please offer your thoughts and help to shape the next generation of real estate companies. It is beginning right here in the Triangle.

www.gorealty.biz-

Give it Back!

2009-07-23T14:49:00.004-04:00

It's official! This picture is with Kimberly Breeden, the CEO of Big Brothers Big Sisters of the Triangle. I am presenting my first donation to the BBBS! In case you don't know, when I joined Garman Realty I made a pledge to donate $50 from every real estate transaction to Big Brothers Big Sisters of the Triangle and the company agreed to match it! Its one of the 4 Garman Differences- "Give it Back."

Just six years ago, BBBS was serving less than 100 children. Today, they serve over 1,100 each year and are on target to serve approximately 2,000 annually in the next 3-5 years! Today there are also over 200 children on the waiting list. In challenging economic times more single moms and struggling families are reaching out for support.

A special thanks to all the executive officers, staff, and board members for your hard work and dedication. Despite these difficult times, you continue to provide support and leadership to a growing organization that has helped thousands of people. Awesome!! Keep rockin!

5 Tips to Living in the Triangle

2009-07-14T11:19:00.005-04:00

After many years of living and showing homes in the Triangle area of North Carolina, I have come to notice a few pretty standard frustrations of those who move here from other areas. I moved here from upstate NY about 15 years ago and I would like to pass on some of the lessons I've learned...to help you avoid some of the growing pains. This really is a great place to live.

Tip #1: The "Triangle" was a term developed in the 1950's with the creation of Research Triangle Park- but encompasses many more towns now, click here.

Tip #2: In the Triangle area, there are no natural defining boundaries between cities and towns. You will not cross a bridge or over a mountain and automatically be in a new town like in some other cities. You will most likely drive on one road (which changes names three times) and pass through three towns. Tryon Road, for example, on the Southern part of the county, passes from Raleigh to Cary, and then merges into HWY 64 and runs through Apex and on to Chatham County.

Tip #3: Not everyone uses their turn signal. Its annoying and frustrating (at least to me) but you don't have to lay on your horn. Life will go on. If you feel the need to use your horn to let the world know you're in a hurry, two short beeps should do. But I must warn you...most people are not in a hurry-even if you are.

Tip #4: People are ALWAYS polite, whether they mean it or not. If you are in line at a grocery store and someone smiles and says hello, its okay to start up a quick conversation and then part ways.

Tip #5: Not every home has a basement. If you are moving from a cold weather climate, you probably didn't know homes were built without basements. They are! You will find that space is replaced by "Bonus Rooms," "FROGS- Family Room Over Garage," or "Southern Basements- finished third floor space for entertaining or guests."

Bonus Tip: We have a County-wide public school system, one of the largest in the country. Go to http://www.wcpss.net/ for answers to all your questions. Some things won't make sense, but living in an area that adds thousands of children to its school system every year presents a TON of challenges.

Stay tuned for more tips to Living in the Triangle!

Josh?

2009-07-13T12:17:00.002-04:00

There is something weird going on and I have to share it. People mistakenly call me by the wrong name quite often, its happened for years. (okay, so what?) Well the weird part is that it's always the SAME wrong name. Why is that? Who is Josh? Do I look like a Josh? Should I just go ahead and change my name?

Personally, I like the name Zach so I think I'll keep it.

Maybe Josh can be my alter ego? That would be kind of cool.

New lending laws will affect closing dates!

2009-07-10T10:36:00.002-04:00

We all know there have been major changes in the mortgage industry in order to provide homebuyers better information when it comes to financing a home. New regulations and investor requirements are taking effect-especially those that impact timelines.

Effective July 30, 2009 the Housing and Economic Recovery Act (HERA) amends the Truth in Lending Act (TIL), implemented through Regulation Z. It has a number of provisions including the Mortgage Disclosure Improvement Act, which changes the TIL requirements surrounding early and final disclosures to home buyers and addresses the timing of when fees can be charged by a lender.

An increase of more than .125% in the Annual Percentage Rate (APR) from the initial TIL statement requires TIL disclosure to be revised and reissued to the homebuyer. The buyer MUST receive a revised TIL disclosure at least 3 BUSINESS DAYS before closing, providing the homebuyer with the time required to determine if they are comfortable with their loan choice.

The new rules could automatically push closing dates back 7 DAYS- so please be cautious in planning and scheduling.

If you would like to know more, give me a call!

***All the information listed here was provided by Brian Morris of Wells Fargo Home Mortgage! Thanks B!****

Give it Back- Recession Style

2009-06-30T11:33:00.003-04:00

We are trying to raise $100,000 in the next 30 days to support Habitat for Humanity of Durham! And we are doing it "Obama-style" (if you are so inclined)- $25, $50, or $100 at a time. Please give what you can and tell your friends, your network, your hair stylist, your dog walker, your rich uncle who tries to buy his way into your life...anyone who will listen. To quote Jim Garman of Garman Homes "In our own quiet way, we are going to show the Triangle how powerful a good attitude and collective belief can be. Please donate a little. Please e-mail a few people if you are inspired."

www.firstgiving.com/giveitback

Welcome to the revolution.

Night time paintball wars!

2009-06-29T16:32:00.001-04:00

Night Ops Paintball at Xtreme Kombat!

NAHB Answers How to Pay Upfront Costs With Tax Credit

2009-06-29T10:28:00.002-04:00

From a recent article published in Nations Building News- The Official Online Weely Newspaper of NAHB. If you have questions about your individual situation contact Zach Schabot at zachschabot@garmanrealty.biz.

***********************************
NAHB is providing answers to frequently asked questions from prospective first-time home buyers who qualify for the $8,000 tax credit and are seeking information on how they can get a loan to help cover downpayment or closing costs.

The U.S. Department of Housing and Urban Development announced on May 29 that the Federal Housing Administration will allow state housing finance agencies to provide second mortgages "monetizing" the tax credit so that borrowers can use the funds for upfront costs for the purchase of homes with FHA-insured mortgage loans.

"This is great news for thousands of families who want to take advantage of today's low interest rates, competitive prices, great selection and the federal tax credit that is only available until Nov. 30, but could not save enough money for a downpayment and closing costs," said NAHB Chairman Joe Robson.

HUD announced that FHA-approved lenders can purchase the tax credit from the home buyer in advance, so that the home buyer can use the funds for closing costs or make a downpayment in addition to the 3.5% minimum. Home buyers who go directly to FHA-approved lenders still need to come up with the 3.5% minimum downpayment that is required for an FHA-insured loan.

Home builders in recent weeks and months have reported that the tax credit has helped bring more prospective first-time buyers into the marketplace. To spread the word, builders and home builders associations around the country have been providing consumers with information on the availability of the credit.

The new FHA monetization program is expected to result in an additional 40,000 home sales, many of which will be made to trade-up buyers who have been able to sell their existing home to a first-timer.

For NAHB's FAQ PDF on monetization, click here. Builders can direct consumers to this information by sending them to www.federalhousingtaxcredit.com. The new PDF can be found by going to the "Frequently Asked Questions" section of this site and scrolling down to question 20.

Social Media in Real Estate?

2009-06-26T15:46:00.002-04:00

Social media is exploding! It would be tough to argue with that statement, right? How about social media being used in real estate? Over the past few months, I have had numerous builders and realtors approach me to ask "do I need to be doing this social media stuff?" And the answer is YES! Learn it now, learn it quickly and put it to good use (or pay someone to do it for you). Create a network of people. Of followers. Raving fans. They will bring referrals to you because you are someone they know and trust (even if they only know about you from your funny facebook photos and comments-probably makes them like you more because you seem "real"). It is similar to the way things have been done before at networking meetings, golf outings and fishing trips, except it happens at lighting speed and reaches exponentially more people.

HOWEVER, I would like to add one very big asterisk...facebook, blogger, twitter, active rain, etc etc are wonderful tools to promote your community or enhance the exposure of your homes online. But they are ABSOLUTELY NOT the only piece of the puzzle. These programs make it easier for people to find information about homes and communities but they cannot and will not replace good research, proper pricing, and excellent maintenance (and specifically for builders: updated floorplans and top quality workmanship).

So, befriend me on facebook, follow me on twitter, and link to me on LinkedIn...but be careful about spending too much time on one site... the latest and greatest is already being developed and will be here before you know it.

Price Reduced!

2009-06-22T20:53:00.001-04:00

After reviewing our research we felt the initial price of this home was premature. The Hall's have decided to make their home more affordable by lowering the price to $234,900. Check out http://www.317kinellan.com/ and call today to schedule a showing. Don't forget- this home could also be a unique opportunity for an investor or long range buyer!

Tiffany Elaine Jewelry

2009-06-09T22:02:00.002-04:00

Check out this site and buy something cool. It would help out a friend! Sorry if you came here looking for profound real estate information...sometimes I just post things I like. Check back for more "professional" content in a few days. And enjoy tiffany's creations!

Who? Lou?

2009-06-04T11:14:00.003-04:00

WATCH out for http://www.hulu.com. It is quickly becoming a viable alternative to cable and satelitte.... no pun intended, but STAY TUNED....

If these walls could talk...

2009-06-04T00:36:00.003-04:00

At Garman Realty, we believe every home has a story to tell. That's why you will see individual blogs for each of our listings. You can only learn so much about a house from the information on "traditional" websites. By allowing the individual owners to tell their story, we get a true sense of what makes the home unique. Whether the owners words are happy or sad, funny or serious...its our way of allowing the walls to talk. Enjoy.

Tax Credit Guidance for FHA Loans Announced by HUD

2009-05-29T11:56:00.002-04:00

**ITS IMPORTANT TO NOTE THAT LENDERS WILL NEED TIME TO FIGURE OUT THE DETAILS BEFORE THIS DECISION IS PUT INTO PRACTICE. CONTACT ME FOR DETAILS- THERE HAS NEVER BEEN A BETTER TIME TO BUY A HOME!**

In his speech at the National Association of REALTORS® Housing Summit on May 12, 2009, US Department of Housing and Urban Development (HUD) Secretary Shaun Donovan announced a program that allows borrowers to use the first-time homebuyer tax credit for a down payment or closing costs on a FHA-insured mortgage. The Secretary said “We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit.”

The details of the program were announced today in Mortgagee Letter 2009-15. A government entity and instrumentalities of government may provide a second mortgage. Currently, 10 state housing finance agencies offer a product buyers can use that will effectively monetize the tax credit for down payment purposes. These states are Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, and Tennessee. State Associations are encouraged to work with their respective housing finance agency to implement similar programs. The 3.5 percent down payment may also be a gift from a family member, employer or nonprofit, charitable organization.

The original guidance permitted lenders and HUD-approved nonprofits and lenders to offer bridge loans via second lien financing or short term loans. Guidance released today allows lenders to offer the monetized tax credit for down payments in excess of 3.5 percent, closing costs and interest rate buy downs. Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers. Lenders will need some time to develop documentation for what will effectively be personal loans to the home buyer.

Read the HUD Mortgagee Letter

Raleigh featured on the Today Show on NBC!

2009-05-27T10:39:00.003-04:00

Visit msnbc.com for Breaking News, World News, and News about the Economy

Balanced Solutions to Workforce Housing

2009-05-26T10:11:00.004-04:00

The Triangle Community Coalition recently hosted a forum on Affordable Housing for the Triangle’s Workforce. The luncheon was held on May 19. The program, “Balanced Solutions for Workforce Housing”, explored creative and functional affordable housing solutions for the Triangle’s workforce, particularly during the economic downturn.

Featured Speakers included ... and Zach Schabot, a broker with Garman Realty and member of the City of Raleigh's Fair Housing Hearing Board."

-Speaker Bios

-Podcast (audio)

One for One.

2009-05-04T11:05:00.004-04:00

I am so often inspired by other people. The story of TOMS shoes is definitely an inspriring one. I have no real connection to this company, other than an absolute belief in giving back. At Garman Realty, we believe in giving back too. It is one of the core values of our company.

Our tagline is "Give it Back." Their tagline is "One for One." Welcome to the revolution.

My New House

2009-04-30T20:52:00.003-04:00

I have said it time and time again...I truly believe now is a GREAT time to buy a home. So guess what? We did! We just bought a new home in Renaissance Park, a Wakefield Development community just south of Downtown Raleigh. The home was built by Standard Pacific Homes and the whole experience was great...from the sales agent Scott, to the construction manager Frank, to the lender Michelle. Top notch!

What's the deal with the $8000 tax credit?

2009-04-07T15:38:00.004-04:00

Disclaimer: While this post should, in no way, replace the sound advice of a tax advisor or CPA...it should answer some of your initial questions about the $8000 first time home buyer tax credit. Enjoy!

1. What’s this new homebuyer tax incentive for 2009?
The $7,500 repayable credit introduced in 2008 is increased to $8,000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8,000 amount. If the house costs less than $80,000, the credit will be 10 percent of the cost.

2. Who is eligible?
Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

3. Is there an income restriction?
Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as single (or head of household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.

4. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?
Not always. The credit phases out between $75,000-$95,000 for singles and $150,000- $170,000 for those married and filing jointly. The closer a buyer comes to the maximum phase-out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return).

5. Are there restrictions on the location of the property?
Yes. The home must be located in the United States. Property located outside the U.S. is not eligible for the credit.

6. Are there restrictions related to the financing for the mortgage on the property? In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit. Congress eliminated the financing restriction that applied in 2008.

7. How do I apply for the credit?
There is no pre-purchase authorization, application or similar approval process. All eligible purchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at http://www.irs.gov/.

8. So I can’t use the credit amount as part of my downpayment?
No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre-funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.

9. What if I purchase later this year but can’t get to settlement before Dec. 1?
The credit is available for purchases before Dec. 1, 2009. A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before Dec. 1, 2009, for purchases to be eligible for the credit.

10. I know there is no repayment requirement for the $8,000 credit. Will I ever have to repay any of the credit back to the government?
One situation does require a recapture payment back to the government. If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it. A few exceptions apply. Note that this same 3-year recapture rule applies, as well, to the $7,500 credit available for 2008. This provision is designed as an anti-flipping rule.

11. What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?
The repayment rules are eased for many circumstances. If the homeowner who used the credit dies within the first three years of ownership, there is no recapture. Special rules make adjustments for people who sell homes as part of a divorce settlement, as well. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion.

Have a question of your own? Email me at zachschabot@garmanrealty.biz!

Little Moments...BIG magic!

2009-03-31T14:55:00.004-04:00

Zach, I am so glad to hear of your continued passion for the mission of Big Brothers Big Sisters. Andie and I conferred this morning after your email and she spoke very highly of you. I am sending this response as her regards as well. If you have taken a good walk through our website (as it appears you have) you will notice a lot has changed over the recent years.

Just six years ago we were serving less than 100 children such as Torian. Today we serve over 1,100 each year and are on target to serve approximately 2,000 annually in the next 3-5yrs. We currently see more and more of our community’s vulnerable children and their families reaching out to us for help – guidance – and the caring support of a mentor. Today we have over 200 children on our waiting lists and in challenging economic times more single moms and struggling families are reaching out to us for support. Your continued support and pledge of $100 for every transaction this year will go a long way to help our efforts to reach these children and provide a variety of activities for them through out the year. If we could help you further your efforts in anyway please do not hesitate to ask. I would love to talk to you further to explore if there are any opportunities to encourage similar efforts throughout Garman Realty and partner with Garman on a larger level.

Again thank you very much for your role as a Big in Torian’s life, and for your support of our on-going efforts to reach more children in need.

- John Tedesco, VP of Development

Big Brothers Big Sisters of the Triangle

Garman Difference #3: Give it Back

2009-03-24T10:35:00.007-04:00

One of the most imortant Garman Differences is what we call "Give it Back." Here is a story about how I would like to give it back.

I first became involved with Big Brothers Big Sisters of the Triangle in 2001. I was a "Big" for my "Little" Torian. When I first met Torian, he seemed very shy and very quiet. He and his mom had recently moved to NC from NY so he didn't know many people. I had a similar situation when I moved here from NY so I could relate.

The first few meetings were tough. I had to painfully pull conversations out of him as we got to know each other. BUT all it took was one mention of NBA basketball or WWE wrestling...and the kid came out of his shell! He was like a new person. I saw excitement and confidence, and he knew every thing about every one. It was tough to keep up! We spent a couple hours together each week and became great friends.

Unfortunately, we have not kept in touch as much as I'd like. Torian's mom got remarried and he has a wonderful new support group. I also have two children of my own so our time together has been limited. I miss him very much but I will never forget one event that will stay in my mind forever. When Kate and I got married in 2003 we had a very "interactive" wedding that involved lots of friends and family. We asked Torian to be a part of the procession and carry the bible into the church in front of our priest. He happily accepted our inivtation. He went from being a shy child to a young man who was confident enough to be the center of attention in a room full of adults. It was inspiring.

That inspiration has led me to choose Big Brothers Big Sisters of the Triangle as my "give it back." I have pledged to donate $100 of every transaction in 2009 to the local chapter- so more kids like Torian can inspire grown-ups like me.

Garman Difference 3#: Give it Back

Garman Difference #2

2009-03-20T14:23:00.006-04:00

About 8 years ago I took my first trip to Las Vegas with my wife Kate. She was working for Jack Daniels and was there on a business trip during the NFR (National Finals Rodeo). This was my first taste of being treated like a rocktar! Our good friend Jenn Smith was the marketing manager for Jack Daniels in Las Vegas. Thanks to Jenn, every place we went treated us like rockstars. No waiting in line, free drinks, private tables, exclusive clubs...the works. I felt like I was being treated just a little bit better than everyone else.

This exemplifies Garman Difference #2: Rockstars Wanted.

This is probably the most complex of the 4 differences. First, if you work for a Garman company, you are a rockstar. You have a great attitude, you make people feel great, and you work hard. (the trashing of hotel rooms and bowls of m & m's with no green ones is just a myth). BUT, the attitude is contagious because all of our partners are also rockstars (lenders, attorneys, inspectors, appraisers). We will not tolerate negative attitudes or poor work. However, the most important part of the equation is our clients. We want them to feel like they get the royal treatment every step of the way. Whether they are buying a home or selling a home, they get the rockstar treatment.

Garman difference number 2: Rockstars Wanted. It's the blue square.

Garman Difference #1

2009-03-19T11:20:00.007-04:00

In only my second day with Garman Realty I am learning that one question is on everyone’s mind…even if they don’t ask me. So here is the answer.

I joined the team as a member of Garman REALTY. I will be helping people buy and sell homes just like I did when I was at RE/MAX. However, Garman HOMES is a building company and focuses on new homes. BUT- one of the huge benefits of being associated with Garman HOMES (the building company) is the G-Team! I have access to one of the finest group of trades people in the Triangle. They pride themselves on doing great work and treating people like Rockstars! The G-Team can help get your house ready to list or help make repairs after inspections. Listing your home can be stressful but our goal is to make life as easy as possible while your home is on the market.

Having the G-Team is awesome…and it is known as Garman Difference # 1. For those of you keeping score at home- that’s the green box in the logo. Check it out.

Oh What a feeling!

2009-03-17T23:37:00.002-04:00

I recently took a trip to Marbles kids museum with my son Tyler for his 2nd birthday. And how cool was it to jump in the ball pit...(excuse me-the peas and carrots)...it was like I was a kid again! What a great feeling!

Well today I joined the Rockstars at Garman Realty...and I am filled with the same awesome feeling! I am so excited about working with such a great group of people who are truly devoted to offering a unique experience. Stay tuned to learn more about the 4 Garman differences...

I love the rockstar treatment...and so will you!

Refuting the N & O- The other side of the story

2008-10-28T13:36:00.002-04:00

For those of you who are tired of constantly reading or hearing negative news about the housing market, here are some facts about how our LOCAL market is doing. Not too bad if you ask me. I truly believe it is a great time to buy a house in the Triangle area.

*****************************
Stacey Anfindsen Shares More Accurate Depiction of Market and Five Reasons Not to Panic Over Local Home Prices

In response to the main headline in the 10/27/08 N&O, I am presenting facts to contradict
the headline, which is yet another attempt to scare local readers by using data from selected national sources. The writer states five reasons; crashing home prices, investor speculation, complex investments, job losses and repeat delinquencies. I will respond to each of these to provide some local perspective.

1) When analyzing our market, I look at data from the counties of Wake, Durham, Orange and Johnston. Within this market, the average closed price of all housing is up 8% and the average closed price of resale housing is up 6%. House price appreciation, which compares the two most recent sales prices of the same house , is an area where the Triangle outperforms the national market. Our current rate of house price appreciation in the Triangle is just over 4%. This rate beats the state (+3.6%) and national rates (-4.5%).

2) The Wake County Revenue Department reported +/- 21,000 closed sales within the past 13
months. Roughly 5% of these sales were purchased by buyers from out of town, a huge difference compared to the 20% rate nationally.

3) It is almost impossible to track what percentage of local purchases were made via the subprime loan mechanism. Per the FHFA mortgage metrics survey for the second quarter of 2008, 17% of all outstanding mortgages in the U.S. are rated as subprime. Therefore it would be hard to argue that a majority of house purchases were made via this mechanism.

4) Job losses are real both nationally and locally. The Raleigh/Cary/Durham MSA did not have a workforce increase comparing 8/08 with 8/07 for the first time since the 8/01 versus 8/00 period.

5) The mortgage metrics survey reveals some additional information regarding the national mortgage market. They surveyed over 30 million outstanding loans in the Fannie Mae and Freddie Mac system and found that 98.6% of these loans were rated as current. They also state that foreclosure proceedings were initiated on 432 homeowners per day during the second quarter, a big difference from the 2,700 per day figure stated in the lead paragraph. There are currently +/- 14,000 listings within the four county area in TMLS. Roughly 3% of these listings are classified as foreclosure, bank or corporate owned. I have been tracking the residential market within the Triangle for over 20 years. The foreclosure market has always accounted for a very small percentage of activity.

Our current market can be summed up with my version of the good, the bad and the ugly;

The Good
-Third quarter closings were the 6th highest in history
-Current supply of 8 months is lower than national current supply of 11 months
-Average house price appreciation is superior to state and national rates
-Average re-sale sales price +6%, average overall sales price +8%, average list price +2%
-Houses priced correctly have sold in an average of 55 days

The Bad
-Overall inventory grew 7%, making 2 consecutive months of less than 10% growth
-Withdrawn listings increased 2% compared to 9/07

The Ugly
-29 consecutive months of inventory growth, 20 consecutive months of lower pending sales
-63% of all price points have an oversupply of housing product
-9/08 expired listings were 227% higher than 9/07 expired listings

A survey of Wake County house purchases where the house was purchased and then re-sold within the past 12 months reveals a median percent per gain of 0%. I think that is pretty impressive compared to what is happening in the national market.

As we have seen during 2008, our local market is not immune from happenings in the national
market. Our biggest challenges during the fourth quarter of this year and into next year are to grow the workforce and cut down on the number of price points with an oversupply of housing.

Raleigh Home Prices Stay Strong

2008-08-27T11:01:00.002-04:00

More positive news about the local housing market from the Triangle Business Journal. With affordable interest rates and lots of choices, it is a great time to buy a home!

*****************************************************************
Home prices grew by 4.8 percent in the Raleigh area between the second quarter of 2007 and the second quarter of this year, new federal data say.

The figures, from the Office of Federal Housing Enterprise Oversight, tend to overstate the actual growth in home prices across the country. But they are useful on a comparative level, and by that measure, they place the Raleigh-Cary region at No. 13 among the nearly 300 areas tracked in terms of home price appreciation.

Prices in the Durham region, which also includes Orange County, grew by 4.1 percent, putting the region at No. 26 overall.

Nationally, OFHEO says, home prices slipped by 1.7 percent in the last year.
The OFHEO data have their limits. Specifically, they do not include homes with mortgages that can't be bought by government-sponsored enterprises Fannie Mae and Freddie Mac. That means most homes owned by subprime borrowers, the hardest hit part of the market, aren't included in the index – helping to make housing price declines look less severe in OFHEO data than in other indices.

For example, another widely cited barometer of housing prices, the Standard & Poor’s/Case-Shiller index, said home prices fell by 15.4 percent nationally in the second quarter from a year earlier.

That 20-city index does not provide data on Raleigh housing, though they also provide some indication that North Carolina home prices are holding up better than most. Charlotte showed the lowest drop in prices among the 20 cities tracked, with home prices there falling just 1 percent from June 2007 to June 2008.

Housing Bill Summary

2008-07-28T10:16:00.004-04:00

There is a "radio station" that everyone listens to whether they know it or not... WII-FM (Whats in it for me?). With the recent coverage of the "housing bill" being debated by members of Congress, I find many consumers asking me "What's in it for me?" How will I benefit from this housing stimulus package?

Here is a summary provided by the National Association of Realtors showing some of the benefits to consumers...

***************************************
HR 3221, the Housing and Economic Recovery Act of 2008
National Association of REALTORS® Summary
(as of 7/24/08)

H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23rd by a vote of 272-152. The Senate must now approve the language adopted by the House. The Senate is expected to approve the bill on Friday, July 25th or Saturday, July 26th. The President has said he will sign the bill. It includes:

· GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

· FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

· Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).

· FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.

· Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.

· VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.

· Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision does will be effective from October 1, 2008 through September 30, 2009.

· GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

· Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

· National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.

· CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.

· LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.

· Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

Housing Crisis is Over!

2008-05-09T13:46:00.002-04:00

Here is a great article recently featured in the Wall Street Journal. For the past year I have remained optimistic about our local housing market. We live in a wonderful area and although the total number of sales dropped, home values remained slighlty above the previous year's prices. For those of you trying to "time" the bottom of the market, you are smack dab in the middle of it! This article will help reassure you that NOW is definitely a great time to buy a home.

The Housing Crisis Is Over

By CYRIL MOULLE-BERTEAUX
May 6, 2008

The dire headlines coming fast and furious in the financial and popular press suggest that the housing crisis is intensifying. Yet it is very likely that April 2008 will mark the bottom of the U.S. housing market. Yes, the housing market is bottoming right now.

How can this be? For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won't happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor.

Most people forget that the current housing bust is nearly three years old. Home sales peaked in July 2005. New home sales are down a staggering 63% from peak levels of 1.4 million. Housing starts have fallen more than 50% and, adjusted for population growth, are back to the trough levels of 1982.

Furthermore, residential construction is close to 15-year lows at 3.8% of GDP; by the fourth quarter of this year, it will probably hit the lowest level ever. So what's going to stop the housing decline? Very simply, the same thing that caused the bust: affordability.

The boom made housing unaffordable for many American families, especially first-time home buyers. During the 1990s and early 2000s, it took 19% of average monthly income to service a conforming mortgage on the average home purchased. By 2005 and 2006, it was absorbing 25% of monthly income. For first time buyers, it went from 29% of income to 37%. That just proved to be too much.

Prices got so high that people who intended to actually live in the houses they purchased (as opposed to speculators) stopped buying. This caused the bubble to burst.

Since then, house prices have fallen 10%-15%, while incomes have kept growing (albeit more slowly recently) and mortgage rates have come down 70 basis points from their highs. As a result, it now takes 19% of monthly income for the average home buyer, and 31% of monthly income for the first-time home buyer, to purchase a house. In other words, homes on average are back to being as affordable as during the best of times in the 1990s. Numerous households that had been priced out of the market can now afford to get in.

The next question is: Even if home sales pick up, how can home prices stop falling with so many houses vacant and unsold? The flip but true answer: because they always do.
In the past five major housing market corrections (and there were some big ones, such as in the early 1980s when home sales also fell by 50%-60% and prices fell 12%-15% in real terms), every time home sales bottomed, the pace of house-price declines halved within one or two months.

The explanation is that by the time home sales stop declining, inventories of unsold homes have usually already started falling in absolute terms and begin to peak out in "months of supply" terms. That's the case right now: New home inventories peaked at 598,000 homes in July 2006, and stand at 482,000 homes as of the end of March. This inventory is equivalent to 11 months of supply, a 25-year high – but it is similar to 1974, 1982 and 1991 levels, which saw a subsequent slowing in home-price declines within the next six months.

Inventories are declining because construction activity has been falling for such a long time that home completions are now just about undershooting new home sales. In a few months, completions of new homes for sale could be undershooting new home sales by 50,000-100,000 annually.

Inventories will drop even faster to 400,000 – or seven months of supply – by the end of 2008. This shift in inventories will have a significant impact on prices, although house prices won't stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market.

Many pundits claim that house prices need to fall another 30% to bring them back in line with where they've been historically. This is usually based on an analysis of house prices adjusted for inflation: Real house prices are 30% above their 40-year, inflation-adjusted average, so they must fall 30%. This simplistic analysis is appealing on the surface, but is flawed for a variety of reasons.

Most importantly, it neglects the fact that a great majority of Americans buy their houses with mortgages. And if one buys a house with a mortgage, the most important factor in deciding what to pay for the house is how much of one's income is required to be able to make the mortgage payments on the house. Today the rate on a 30-year, fixed-rate mortgage is 5.7%. Back in 1981, the rate hit 18.5%. Comparing today's house prices to the 1970s or 1980s, when mortgage rates were stratospheric, is misguided and misleading.

This is all good news for the broader economy. The housing bust has been subtracting a full percentage point from GDP for almost two years now, which is very large for a sector that represents less than 5% of economic activity.

When the rate of house-price declines halves, there will be a wholesale shift in markets' perceptions. All of a sudden, the expected value of the collateral (i.e. houses) for much of the lending that went on for the past decade will change. Right now, when valuing the collateral, market participants including banks are extrapolating the current pace of house price declines for another two to three years; this has a significant impact on the amount of delinquencies, foreclosures and credit losses that lenders are expected to face.

More home sales and smaller price declines means fewer homeowners will be underwater on their mortgages. They will thus have less incentive to walk away and opt for foreclosure.

A milder house-price decline scenario could lead to increases in the market value of a lot of the securitized mortgages that have been responsible for $300 billion of write-downs in the past year. Even if write-backs do not occur, stabilizing collateral values will have a huge impact on the markets' perception of risk related to housing, the financial system, and the economy.

We are of course experiencing a serious housing bust, with serious economic consequences that are still unfolding. The odds are that the reverberations will lead to subtrend growth for a couple of years. Nonetheless, housing led us into this credit crisis and this recession. It is likely to lead us out. And that process is underway, right now.

Mr. Moulle-Berteaux is managing partner of Traxis Partners LP, a hedge fund firm based in NY

Water Watch

2008-04-04T15:59:00.001-04:00

We now have 330 days of water in Falls Lake. The lake is 85.6% full.

Water Watch

2008-03-26T10:11:00.002-04:00

We currently have 293 Days of Water left in Falls Lake- we are at 75.9% full. Stage 2 restrictions will be lifted when Falls Lake reaches 90% full. Please note that the number of days may not correlate to percentage of water in the lake...why? How many days of water would make the lake full?

That question cannot be determined because how the number of days is determined. The formula for number of days is based on volume of water in the lake divided by the weekly usage average. So if the usage goes down, the number of days remaining can go up or if the usage goes up the reverse will occur whether it rains or not.

Stay tuned...

Built to Scale- An Article from The News and Observer

2008-02-26T11:21:00.002-05:00

This is a very timely article about a home built in Five Points specifically designed to stay within the current streetscape and scale of the neighborhood. This is a HOT topic in Raleigh...non-profit groups are rallying behind their respective sides (private property rights vs. neighborhood conservation) and the city council is being faced with a challenging decision. If people would concentrate on better design and use of space, like they talk about here, I think both sides would win!

Built to scale
A small bungalow turns into a roomy modern home without overwhelming its space

By Michael Wagner, Correspondent

Robert and Jennifer Barker were looking for lots of space when they bought a 1,000-square-foot bungalow in Raleigh's Five Points. But rather than tear it down and erect another cookie-cutter design, they chose to renovate and build an addition -- satisfying both their need for more room and their respect for this historic neighborhood.

Raleigh architects Brett Hautop and Chad Parker of Vernacular Studio created a spacious home that belies its quiet, streetside presence. Building off the original shotgun style bungalow, built in 1930, the house retains its original street profile with its traditional gabled roof. What's entirely new is the flat-roofed, two-story, 2,400-square-foot addition in back and the entry court that joins the two volumes into a single home.

The result is a house that is entirely modern in its aesthetic yet fits seamlessly into its surroundings. It is a powerful statement about the value of retaining the characteristics that make this neighborhood special while enjoying the benefits of contemporary living.
The house sits in the heart of Raleigh's teardown district, a swath in which developers are razing older structures and replacing them with homes three, four and even five times their size.

Read More at: http://www.newsobserver.com/371/story/960877.html

Rain Barrels- An Easy way to Conserve Water

2008-01-08T12:52:00.000-05:00

-From the folks at rainbarrelguide.com

Collecting rainwater for use during dry months in rain barrels or other depositories is an ancient and traditional practice. Historical records show that rainwater was collected in simple clay containers as far back as 2,000 years ago in Thailand, and throughout other areas of the world after that. With the rising price of municipal water and drought restrictions now facing much of the United States during the summer months, more and more homeowners in our own modern society are turning to the harvesting of rainwater to save money and protect this precious natural resource.

It is a common belief in many parts of the world that water is an infinite resource to exploit as needed, but as the saying goes, "you don’t know the value of water until the well is running dry." This is especially true in arid parts of the U.S. where most of the municipal water comes from overstressed underground aquifers. Whereas rainwater is considered a renewable natural resource, many aquifers are being "mined," that is, communities are drawing out more water than the aquifer naturally receives to recharge it.
As drought and aquifer mining begin to call attention to an increasing water crisis, people are seeking ways minimize impact on their municipal water supplies. Rain barrels can be part of the solution. Just look outside your window the next time it rains and imagine all the water that’s running down your driveway being put to beneficial use in your home and garden!

The Freshwater Facts
To illustrate how important and how limited a resource freshwater is in our world, consider the following. More than 70 percent of the Earth's surface is covered by water, but only 2.5% of this supply is considered fresh water. The rest is found in the form of salt water in the oceans. Of the fresh water that exists, most is locked up in glaciers and ice caps. Water can also be found in the form of clouds and humidity in the soil. That leaves us 3/10 of 1 percent found in the form of lakes, rivers and streams. Unfortunately, much of this small amount of freshwater is in danger of drying up through desertification or becoming so contaminated that it cannot be used for human consumption. Changing our habits of water use can help to abate this growing problem.

Why Harvest Rainwater with Rain Barrels?
Besides helping the environment, an obvious reason for harvesting rainwater is to save money. Depending on the size of your house and the amount of rainfall in your area, you can collect a substantial amount of rainwater with a simple system. This extra water can have a significant impact on your water bill. The use of rainwater combined with the domestic use of grey water can further increase your savings. Even if you live in a rural area and have your own well, the fact that rainwater is a naturally soft water may be enough to justify harvesting rainwater. (Keep reading for information on how to calculate the potential volume of rainwater you can collect.)Rainwater stored in rain barrels has many uses. Some people find it mostly useful for watering their landscapes and gardens. Others find uses within the house as well. Rainwater can also be used for drinking but requires special treatment with a filtration system. Note that many cities require the filtration system for drinking water to be certified and the water to be tested on a regular basis. You do not need a filtration system for landscape uses. You can use it directly from your rain barrel on your garden.If you’re harvesting rainwater with rain barrels to use for watering your landscaping, the rainwater can help to improve the health of your gardens, lawns, and trees. Rain is a naturally soft water and devoid of minerals, chlorine, fluoride, and other chemicals. For this reason, plants respond very well to rainwater. After all, it’s what plants in the wild thrive on!

Rainwater from Rain Barrels Makes Your Garden Smile
Since the rain water is usually collected from the roofs of houses, it picks up very little contamination when it falls. You’ll of course want to keep your roof clean of debris and potential contaminants to maximize purity. The material your roof is made of is also important in how much contamination the water will carry (see Safe Rainwater Harvesting Catchments). The chemicals and hard water from many of our municipal water systems can produce an imbalance in the soil of your garden. Chemical fertilizers, fungicides, pesticides, and drought can also disrupt the balance and harmony of the soil. This imbalance causes trees and plants to weaken and makes them more susceptible to disease.
Trees and plants have an efficient immune system that allows them to fend off diseases and other invaders as long as they have a healthy soil environment and aren't stressed by other factors such as drought. Trees and plants rely on fungus, bacteria, and nematodes to help them absorb the minerals and nutrients they need. Trees and plants depend on a fungal root system called mycorrhizae. Mycorrhizae attaches itself to tree and plant root hairs and extends the root hair system.
Mycorrhizae uses some of the plant's energy, but provides the plant with minerals it can't otherwise absorb. In healthy soil, the mycorrhizae of one tree connects with mycorrhizae of other similar trees. When you look at your garden, visualize it as a vast interconnected community of trees, plants and tiny critters that live in the soil, all interacting and affecting each other. Thus, the type of water you use in your garden will affect the health of this intricate community.And speaking of community, one of the best reasons to start harvesting rainwater with rain barrels is that if you teach and encourage others to do the same, you will help to spread the culture of rainwater collection and in turn help your larger community and the environment. It is always important to remember that every living thing on the planet needs water to survive so we as humans must expand our idea of community to the plants and animals that surround us.

Fed cuts rate by 1/2% ...but what about mortgages? Also Great FHA news!

2007-09-21T15:30:00.000-04:00

So you have heard about "the Fed" "cutting rates..." but what does that mean for you as a home buyer? Here's a couple quick thoughts from Brad Arendt of CTX Mortgage on the impact of recent decisions.

*The Fed surprised everyone with a 1/2 percent rate cut - stock market rally!

*Mortgage rates actually move up following the news. Contrary to the TV news reports, mortgage rates actually rise when the Fed lowers their rate. Why? Mortgage rates hate inflation, and a Fed cut can lead to inflation.

*FHA has increased their loan limits in the Triangle....now up to $224,200 for a single family dwelling. Great news! This will help many buyers with credit challenges find a home AND a loan!

To Buy or to Rent? That is the question...

2007-09-11T22:08:00.000-04:00

...and here are some answers...

It's almost always better to own your home rather than to rent. Right? After all, you build equity and get to write off your mortgage interest. And if you play your cards right, when you sell you'll be eligible for one of the best tax breaks available.

But that doesn't mean that everyone should be a homeowner. Ask someone in Florida whose house has been on the market for a year and is losing value every month...

If your move is short-term or if interest rates are high and property values deteriorating, it may be worthwhile to deal with a landlord for a while.

Here are some advantages and disadvantages if you are considering buying vs. renting.

HOME OWNERSHIP
Advantages
- Property Builds Equity
- Free to change décor/ landscaping
- Not dependant on landlord for maintenance
- Tax Benefits for interest paid on your loan

Disadvantages
- Responsible for Maintenance
- Property Taxes
- Possibility of Equity Loss
- Less “mobility” than renting

RENTING
Advantages
- Typically little or no responsibility for maintenance
- Easier to move; more “mobility”

Disadvantages
- No Tax Benefits
- No Equity Build up
- No control over rent increases

My best advice is to talk with professionals about your situation. While I believe it is smart to talk with a Realtor, it is also approproate to talk with an accountant, a lawyer, and/or financial planner about your individual goals.

And the Winner is...Cameron Pond!

2007-09-04T21:19:00.000-04:00

I recently had the privilege of selling a home in Cameron Pond, a new home neighborhood located in Cary, NC.

After looking at almost 50 homes around the Triangle, and facing a 21-day deadline to close on a home in order to avoid living in a hotel, my clients decided on a new home built by Homescape, a great local builder.

Given their tight schedule, my clients were “no nonsense” buyers; they did not want or have time for codling or sugar coating. That is exactly the treatment they received from their Cameron Pond sales team. Lynda Foster and Rick Newnham were nothing but honest, efficient, professional, and direct throughout the entire homebuying process.

Obviously every homebuyer is different. This particular buyer didn’t need the big sales pitch or the scenic tour of the community. They really didn’t need additional information on the builder’s reputation. The sales team sensed that, and just stuck to the hard facts! In my opinion they understand the real definition of customer service: know what your customers want and deliver it.

We were able to agree to the terms, get under contract, close, and move in, all within 14 calendar days!

I owe many thanks to Rick and Lynda at Cameron Pond, as well as Matt, the Homescape construction manager. Because of them, my clients had a great buying experience and now live in a beautiful new home in a wonderful community.

Green Building

2007-08-30T11:25:00.000-04:00

Green Building has become a hot topic lately- a buzz word. But the pratice of using more eco-friendly design and sustainable materials is here to stay! Home buyers and builders alike are paying more attention to the impact that our actions will have on future generations. New Homes and Ideas magazine is featuring an 8 part series about the practices of green building.

Check it out!

http://newhomesandideas.com/raleigh/featured/articles/BuildingGreen.html

Smooth Transactions

2007-08-29T11:42:00.000-04:00

I received the following note from one of my clients and felt the need to share it. It is important for people to understand that we recommend certain vendors to assist our clients- not because we gain anything financially- but because we have great working relationships and trust they will provide the same level of service our clients have come to expect. As the title of this post would indicate, our goal is to have a smooth transaction- one where you almost feel uneasy because things are going so well. All of our partners understand this, and use their best efforts to make it happen each and every time.

"I just got done telling someone how pleasant my first homebuying experience was. It was so nice to know that I had someone like you working on my side. Especially as a first time buyer-you don't even know where to begin. Everyone you recommended (lender, attorney, and inspector) were absolutely wonderful! The process was so smooth and exciting and I am grateful for everything you did to help me. I could not have asked for a better experience..it was so easy! On top of it all, you guys make sure to remember your clients by sending brithday and holiday cards. I even got a birthday present in the mail from the lender. How sweet!!

I wish this pleasant of a home buying process for all of my family and friends and am confident that anyone I send your way will be as lucky as I was!

Thanks so much for everything!!"

Maggie Douglas
Raleigh, NC

You get what you pay for...

2007-08-29T00:06:00.000-04:00

In recent years, there have been numerous real estate companies who have been promoting themselves as "Limited Service" companies or "Discount Brokers." They follow a business model that allows them to be very successful in certain markets. As you read the following note from one of our clients, you will see how important it is to understand EXACTLY what you are paying for when you hire a Realtor.

"You live and learn, and you get what you pay for...
These words of wisdom were ignited the day we signed a no-release contract with Realtor B, the Discount Broker. Against our better judgment, we took the advice of my loving but cheap family members and friends when selling our home. It was an obvious choice to them, because "selling a house is simple". We had a good home in a nice neighborhood near schools and shopping. It would sell itself in days, 2 weeks max. No need for a full service realtor, so we cut that corner. The first red flag was when she didn't want to see the 2nd floor, "I don't DO stairs, I'm sure it's fine". She overpriced the house, stuck a sign in the yard (blocked by a neighbor's bush) and listed us in the MLS computer. That was it, and we started packing. But the house didn't sell in days, and after a couple of months with no action, we grew restless. Realtor B wasn't to be bothered. She discouraged an open house, and no advertising. Our concerns were brushed off, and then communication with us stopped, so we were left to sell on our own.

We printed flyers, put out signs, and in desperation started holding our own open houses (not safe and not recommended). The seasons passed and finally our contract was finished. We got an email saying as much, and the yard sign would be removed. Todd and I were left devastated and with 2 mortgages. So we turned to an expert who recommended John Wood and Zach Schabot of the Wood Team at RE/MAX Partners. Not to be burned again, we asked around and suddenly we knew we were on the right track. The Wood team got glowing remarks from everyone, "5-star service".

It was like coming out of a tunnel into the light, we were immediately taken under their wing. The Wood Team had multiple, pre-qualified buyers ready and the showings began, even on Christmas Day! We were contacted daily with feedback, they sent out over a thousand postcards about our house to other agents in the area, and even gave us some advice on how to present the house even better. Well, before we could even have an open house, the offers came in, and our house got sold!

Thank you Wood Team, for so much. For measuring our actual square footage (Realtor B could've cost us buyers with the incorrect numbers she had!). You kept the showings steady and feedback constructive, and even drove to us to sign papers and approve the offers the moment they came in (who else will come to you after 9pm?!). And thanks especially for your fast, courteous, professional, and positive support. Selling a house is stressful in itself, having a bad realtor makes it a nightmare. But the Wood Team surely turned around the meanings of those phrases You Live and Learn, and especially You Get What You Pay For.

The Wood Team: five stars indeed!"

Tammy and Todd Lack
Holly Springs NC