Cary NC Real Estate >> Raleigh & Cary NC Real Estate Blog

I am in the process of working with a couple on the purchase of a home in Crooked Creek in Fuquay Varina.  My clients wrote an initial offer on a home in September but lost the house because they had to sell their home in Phoenix.  My clients closed on their home November 17th so they are now ready to move to North Carolina. 

When I showed my clients homes back in September we went into a house that seemed incredibly spooky.  We walked through the house and there were holes in the walls, stains on the carpet (blood perhaps?), and video ameras up in the bonus room.  This is where my story begins.

A murder perhaps? An argument gone wrong?  A child molester upstairs with hidden cameras?  As you are aware, we as Real Estate agents do not have to disclose information about people dying in the home. 

I can understand dying of natural causes, but murder should be disclosed.   On the other hand, if I am representing my clients, I feel I have a fiduciary duty to determine exactly what went on in this home before my clients purchase the property.   

The sight of the home was incredibly disturbing.  What happened in that house? What, as agents, can we do to determine what went on in that property? In this situation I did the following:

1.  I called the Fuquay Varina Police Department and ordered a report on the history of violence at the property. 

2.  I looked up the previous owners of the home on Wake County Government to see if they were still married, divorced, or deceased.

3.  I left my business card for the neighbor to the left and the neighbor to the right to see if they could tell me anything.  I received a callback from one of the neighbors.

4.  The Golf Shop was right around the corner so I decided to talk to the Golf Pros and see if they knew anything.   It turns out that one of the pros that works at the shop lives down the street.  I was able to have coffee with him and he gave me the "skinny" on the family that used to live their, the house, the cameras, etc. 

5.  I checked out the sex offenders website to make sure the owner wasn't listed there also.

So, I got to the bottom of what happened in the house before my clients made an offer on the property.  There was no murder in the home but there sure was a great story about what happened in the house.  My clients decided to make an offer on the home(it had been sitting empty for almost a year) and it was accepted today.  We still have to get through inspections(for our own benefit-the house is being sold as is) and the closing is scheduled  December 29th. 

So, how far should we go to protect our clients? 

Earlier this year I received my Seniors designation.  One of the most important issues facing seniors is wealth preservation and planning optimal tax strategies.  It's getting close to that time of year again so I thought I'd write about tax issues facing seniors and how to maximize tax deductions while minimizing the old IRS pain.  It's not to early during the holiday season to remember the taxman-Mr. IRS-and make plans to minimize your tax hit when April 15th rolls around.  A few smart moves before the end of the year could save you a bundle in the spring.  Qualifying for many tax benefits depends on individual circumstances, so it's always wise to consult a CPA/qualified tax preparer.  Here are some isues to ponder while you're preparing your 2006 taxes:

1.  Early mortgage and property tax payments

Pay your January, 2007 mortgage in December, 2006 and the mortgage intereste for that Juanuary payment can be deducted on your 2006 taxes.  Check with you local government to see if it's possible to pre-pay property taxes and claim that deduction on your 2006 tax return.

2.  Energy-efficient renovations

If you've modified your home with energy efficient products, such as solar panels, windows, and geothermal heat pumps, you may be eligible for a tax credit.  The maximum credit is $500.  Be aware that the rule has a few wrinkles. For instance, only $200 of that $500 can be taken for windows. 

3. Investment property

Tally up the receipts associated with your investment proeprty.  Repairs-things to keep in the property in good working condition-are deductible during the year you pay them.  More significant investments, such as a kitchen or bathroom or a major renovation,  get depreciated over 27.5 years for residentail real estate.  Major improvements on non-residential investment properties are depreciated over 31.5 years.

4.  Points and refinancing mortgages

If you paid points when you refinanced a home mortgage, points are deductible in full in the year paid, if the proceeds of the loan were used to improve your residence.  If they were used for something else (new car, vacation, etc.) they're deductible, but only over the life of the loan.  If this is a second refinance, and the taxpayer was amortizing previous points over the life of the loan, the remaining points not previously deducted are allowed in full, but only if the new loan is with a different lender. 

5.  1031 Exchanges

Profits on the sale of rental property are treated as a capital gain and you'll have to settle up with Uncle Sam.  One option to defer paying that tax is to re-invest the proceeds in a like-kind exchange.  To the extent that the proceeds are reinvested, the gain is deferred until the replacement property is sold. 

6.  Vacation Property

Carefully track how much time you spent at a vacation property.  When you own and rent out vacation home, expenses are generally allocated between rental use and personal used, based on the number of days of each use.  If you use the home for 14 days or less, or less than 10% of the time it is available for rent, the expenses are all allocated to, and deducted rom the rental income.  If you meet this limited-use test, the vacation home is not considered used as a personal residence.  Use by family members is counted as personal use by the owner, unliess family memebers pay fair market rent.

7.  Tax-free gifts

If you're looking to reduce your taxable estate for hiers, one option is to gift money to children, grandchildren and others.  Individuals can gift up to $12,000 (or $24,000 per couple) per year to anyone without tax consequences.  Another option is to gift appreciated assets, such as a piece of real estate worth $12,000. If I give a piece of real estate, it could be worth $15,000 in a few years and $30,000 down the road.  It's a way to legally give more than that $12,000 per year to someone. 

8.  Parental dependant care

If you're supporting a parent and provide over half of his or her support, such as nursing home and medical expenses, you may be able to claim him or her as a dependent.  Rules are stringent, so check with your CPA to determine whether your parent meets the dependency requirements.

9.  Charitable donactions

Those 701/2 or older can designate up to $100,000 of their IRA directly to a charity.  It's a neat tool for Seniors who might have a lot of montey and are worried about estate tax issues.  It's a great way to give to their charity of choice and save some estate tax down the road for their heirs. 

10.  Tax advisors

Find a good tax advisor and tax retun preparer.   Get recommendations for referrals from trusted friends, bankers and attorneys.  Seek out someone with expertise in estate planning and Senior issues, so the person can offer long-term tax strategies versues just focusing on annual tax preperation.

A few years ago a group of dog owners approached the Town about providing a safe place where dogs could play and get exercise while not on a leash. In December 2004, more than 60 residents attended a meeting that the Town arranged for public input. The Cary Dog Park Club has hosted several "Dog Park for a Day" events that the Town sponsored. Club members have held the events to demonstrate how a dog park would work and to help raise money for one. 

As a result of the residents effort, a wonderful new dog park in the Triangle area has opened.  This dog park is located at 2050 North West Marynard near the corner of Chapel Hill Road and Maynard.  The town of Cary's first dog park will provide a place for dog owners to let their pets run free safely and legally without a leash.  The park is approximately 1 acre in size.  Pet owners can purchase memberships or day passes at any Cary, NC community centers. An electronic gate will allow members/day guests through.  Please see the fee schedule below.

My dog Maggie is really hyper so I like to take her here and sometimes to doggie day care at Town & Country in Cary - both are her favorite things to do.

Do you have a dog park in your town?  What do you think of this concept?  Does this sound typical of Cary? Tell me your thoughts.

Just a short drive from Cary NC is a daytrip that you will remember. 

Take Randolph county, an 801-square-mile expans in the literal heart of North Caorlina, midway between the Atlantic and the Appalachians.  Two hundres years ago, its fertile Piedmont soil and rich clay attracted British potters, who laid the groundwork for one of the most offbeat, yet authentic, tourist attractions in the state. 

More recently, the area's central location and proximity to Greensboro, Charlotte and the Triangle attracted the N.C. Zoological Park, which was built on 1,500 acres just south of Asheboro.

Randoph County even has its own royalty, a native son known as "The King", a lanky former race car driver by the last name of Petty who rewrote the NASCAR record boot with 200 career victories.  Like any good king, Petty has a pretty fair castle, only this one isn't surrounded by a moat but filled with trophies and checkered flags. 

And most importantly, for purposes of this blog, Randolph County has an ample supply of back roads and forgotten byways for a Weekend Drive in the Fall/Winter.  Send me an email if you'd like the complete driving tour.

There are three main attractions on this weekend drive: 

Seagrove Potters

Pottery Drive, in Seagove, North Carolina, has over 50 potteries within a 15-mile radius.  Some of the potters trace their roots to the 18th century, when their ancestors settled here from Staffordshire, Endland, to spin clay and mold earth.  The pottery shops have names like Old Hard Time, Fat Beagle, Jugtown and Turn and Burn, which is a reference to the technique of spinning pottery on a wheel( the turn), then baking it in a kiln(the burn). 

Asheboro Zoo

Speaking of furry creatures, the N.C. Zoological Park has more than its fair share, from the ocelots and roadrunners of the American Southwest to the wart hogs and lions of the African desert. 

Spread out over several miles inthe shadow of the Uwharrie National Forest, the zoo has been a favorite stop for school children and famlies since it opened with temporary exhibits in 1974.  In its current incarnation, the zoo is divided into two "continents", North American and Africa.

Richard Petty Museum

The final stop on this drive is the Richard Petty museum in Level Crooss, about 15 minutes north of Asheboro.  The museum lies between the birthplace of NASCAR's most celebrated driver and Richard Petty Enterprises, the shop where Petty's cars were once built and repiared.  Its namesake retired in 1992, but the shop remains open for work on the cars of Petty's racing team. 

I'm not exactly what you'd call a race fan.  I've never been to a race or had much luck trying to sit through one on TV.  However, this is a great place to learn about the roots of North Carolina. The museum struck me as a cross between a car showroom and Graceland.

Anyway, you have to make this trip if you live anywhere near the Piedmont region in North Carolina!! I highly recommend the trek, even with gas prices as high as they are. :)

The majority of people who build their dream homes in the Raleigh/Research Triangle area don't get all they paid for!  They either don't know, totally ignore or work with incorrect information when they don't take advantage of a very valuable asset during their home building process that would cost them - NOTHING! 

In the Research Triangle area high-end homes market ($1 million and up) the vast majority of speculative built and presale homes are built in existing and/or newly developing subdivisions.  Couples who want to build their dream home will drive through subdivisions, having homes in the price range they are interested in, and talk to the on-site agent about available homes and/or lots.  The on-site agent will show them homes and provide information about them and the available lots.  Most of the lots the couple may become interested in are owned by the builders who comprise the developers building team for the subdivision.  If the couple decides to get serious about building and about a specific lot, the on-site agent will introduce them to the builder who owns the lot of interest.  If the couple hits it off with the builder the builder will discuss what they have in mind with them, review any plans or other information they may have collected and then introduce them to the Home Designer or Architect he usually does business with.

During the entire process of finding a lot, finding a builder, finding a Home Designer or Architect and developing the home plan, selecting an Interior Designer and the subsequent selecting of all the materials, appliances, etc. that will go into the home, the couple has no one to directly assist them and represent their interests or to review the contract the builder will ultimately present to them.  The on-site agent will most certainly provide some assistance but they are employed by the real estate company that is marketing the subdivision for the developer and, in so doing, directly represent the interests of the builder/seller. Thus, unless the couple is brought to the on-site agent by a Buyers Agent or unless the couple finds and introduces an agent as their agent before the process gets underway, they have no one on their side of the table to assist them, to make suggestions and to provide the information that years of experience working with on-site agents and builders that their agent (if the use one) should have.

Often times the couple having the home built will purposely not use a Buyer's Agent because they are of the mistaken opinion that they are saving the Buyer's Agent portion of the commission (in this area that is usually 2.5% of the 5% new homes commission) and that the builder will have that amount to use to give them a lower price. This is a myth.

The real estate company that markets for the developer has a marketing agreement with the developer which specifies how much they will get and how the commission will be divided.  The builders in the subdivision agree to pay the 5% commission plus another 1% marketing fee for the services provided by the on-site agent(s) and the agents who bring buyers or pre-sale candidates to the subdivision.  Half of the commission of a sale (either of a new home or a presale) goes to the on-site agent and half to the Buyer's Agent - if - the Buyer is represented by a Buyer's Agent.  The actual split of the 2.5% the on-site agent gets is determined by the agreement the on-site agent has with the house (the real estate company marketing the subdivision).  If there is not a Buyer's Agent involved the 2.5% that would have gone to the Buyer's Agent does NOT go to the builder nor does he or she have it to use when negotiating a price with the Buyer.  That 2.5% goes to the Developer and since the Developer is not involved in the transaction it is not, as previously stated, available to negotiate a lower price.  Incidentally, the portion of the 2.5% the Buyer's Agent gets is determined by the split arrangement that exists between the agent and the firm he or she is with.

This is not to say that all agents get deeply involved in the presale process with clients they may bring to a subdivision.  In fact very few do.  Quite often, once a couple is introduced to the on-site agent, the Buyer's Agent will let the on-site agent carry the ball and do little more than show up at the close for a commission check.  This is because they don't know the building process, don't know the builders and don't want to get involved in all the time and effort it takes to assist a couple in all that goes on during the time frame of building which can anywhere from seven or eight months to as much as two years, depending on the price and size of the home.  If problems arise during the time the home is being built a couple may call their agent for assistance but that assistance is often not very satisfactory since the agent has little or no knowledge of the circumstances involved in the problem.

The builders I work with tell me that very few of the presales they do are with couples who have been introduced to them by real estate agents.  In determining why this is the case I have found it is because of the two factors discussed above:  

1. The Buyer's belief that they are saving commission money by not using a Buyer's Agent and not knowing the valuable services an experienced agent has to offer  

2.The lack of knowledge and/or experience in working with couples involved in presale process on the part of most real estate agents. 

There is much that a Buyer's Agent can do to help the entire process of finding a lot, finding a builder, finding a Home Designer or Architect, finding an Interior Designer, working with the onsite agent be an interesting and pleasant one for the Buyers. Remember, all of this costs the Buyer(s) - NOTHING - SINCE THE BUILDER PAYS THE COMMISSIONS!  Yes, the commission is built into the price of the home but it will be whether the Buyers use a Buyer's Agent or not.

If the subdivision the Buyers build in is one that is owned by one or two builders who do not have a marketing agreement with a real estate company or if the Buyers have a home built on a tract of ground they own the Buyer's Agent commission may not be involved.  Again, however, Buyers in such situations who do use a Buyer's Agent quite often find the commission they pay an experienced agent for their assistance was worth every penny.

If you are thinking of building your dream home or buying a home in the Traingle it would be my pleasure to discuss what you want to do with you. There is no cost for this service and I can show you aids to your home building process that no other agent in this area can or does offer.  I look forward to hearing from you.

Yesterday voters made a great choice by approving the $970 Million Wake County School Bond that will fund schools across the county.  According to the Wake County Board of Elections, the bond issue passed by a margin of 104,717 votes to 92,810 or a percentage of 53.01% to 46.99%. 

The passage of the bond issue means that Wake County can now issue $970 million worth of bonds to sell and use the money for new school construction and to refurbish older schools as well.

As you have probably ready previously in my blog, Wake County is growing rapidly in population and that schools need to be built immediately to meet demand.  In 2006 when Wake County opened their doors this year we had over 7,500 new students.  As a result, many current schools are still using mobile classrooms and those needed to be upgraded or replaced at some point.

Those were opposed to the bond said that the issue would mean that year round schools would become mandatory and as a result would be a detriment to families who had children in different schools on different schedules. 

Many in Apex opposed the bond because more schools in that town will converted to year round schools than in other areas.

Others opposed the bond issue because they said it contained some items that were not necessary.

Several high profile individuals had spoken in favor of the school bonds including billionaire SAS founder Jim Goodnight and the mayors of Raleigh, Garner, and Cary.  

Statistics Show Rising Prices in Raleigh Durham Real Estate Market

According to the National Association of Realtors®, in many areas of the country, home sales appear to be bottoming out with lower home prices attracting buyers. Is this happening in Durham County and the Raleigh area real estate markets? Not according to the September sales statistics.
                         
Durham sales statistics for September 2006 show 2,093 active listings which is 52 more homes on the market than September 2005 or a 3 percent increase. Sold listings have increased by 71 homes or 21 percent. The average sales price has increased by $11,296 or 6 percent compared to September 2005 with 14 percent more sales year-to-date than 2005.

Similarly, Raleigh area (Wake County) reports an increase in active listings when comparing September 2005 to September 2006. This year in September there were 6,759 listings, up 8 percent from last year’s 6,271 number. At the same time, the number of sold listings increased from 1,763 to 1,800 or 2 percent. Year-to-date sales are 11 percent higher than last year.  And, prices climbed 4 percent from September 2005.

Buyers have more homes to choose from these days but prices are continuing to rise making it difficult for many first time buyers to enter the market. If you are thinking of buying a home and need to know how much home you qualify for,please contact me and I’ll put you in touch with a reputable lender. Also, visit TriangleNCHomes4Sale.com to set up your automated email home search.
Statistics provided by Triangle MLS and are deemed accurate, but not warranted.