Doug Patterson ABR®, SFR REALTOR®

Staging Homes for Sale in Winston Salem, NC

Recently I was taking a young lady on a tour of homes for sale in Winston Salem  and surrounding towns and decided to make it a project of seeing her reactions in homes with no staging and those that were.  It's a proven statistic that more sales come out of a "staged home" than not, so I wasn't trying to test that value, but instead to just see (and hear) the reactions. 

In a dated condo, the listing agent had taken only one room, the dining room, and placed a Danish style table with 4 small matching chairs onto the buffed up hardwood flooring. 

At each place setting, there was a brightly colored, over-sized plate on a neutral colored place mat.  Beside each plate was an unusually large matching knife, 3 pronged fork, and a large spoon.  The forks were placed on yet another splash of bold colored cloth napkins at each setting.  The centerpiece was a beautiful flower arrangement, which spectacularly brought all the colors together, unifying the entire setting!  The windows had regular blinds, but the agent had taken some thick, bold dark red cloth and draped it over a rod at the top and shaped it into a bellowing arrangement of flowing cloth just over the tops of these two windows and slightly down each side about a foot...Well, it was very tasteful and brought the room to a finished look. 

Okay, my client's eyes were glued to this room.  She walked around it several times, talking about what she wanted in a condo, but never really taking her eyes off the table.  With all the homes for sale in Winston Salem, we were here to see this condo only because it was close to her school and across from the park. 

There was no other "staging" in this 2 bedroom, one bath condo....so this table was the focal point.   As we walked from each room to the other, we had to go past this "Dining Room" of delight!  She had wanted a garden, but there was no place for a garden.  She had wanted alot of storage, there was only ample storage.  She had wanted a washer and dryer in a separate laundry room.  There were washer/dryer connections in the small kitchen.  The single-pane windows were the old, two-sided  "roll out at the bottom", metal types.  She had wanted the new "insulated double-pane" types.  

That's when it happened.  Everything she had wanted didn't seem to matter anymore.  She started saying that she could really see herself living here.  When she walked to the kitchen, she began saying how it was just perfect.  The closet spaces were all she really needed.  And then when she said, "I really don't need a garden, I can just grow that flowers in pots!"  

I couldn't help myself, and laughed right out loud!  She looked at me as if surprised, but with a big, bright smile also!  So I assured her that we will certainly keep this condo in mind as we looked at more homes for sale in Winston Salem.

I wish I had taken a picture of that dining room for you, but didn't have my camera on me.  Shame on me for that!  We are still looking, and she always mentions that Condo...so it may be the one she ultimately decides to purchase. 

...I'll probably have to purchase that dining room furniture from the Agent...Oh Well!  Staging is a powerful tool.  It was confirmed first hand THAT day!

Foreclosures In Winston Salem NC and How to Buy HUD Foreclosure Real Estate

Foreclosure homes in Winston Salem are a good deal when they can be purchased in such a way as to realize built-in equity "at the closing" table.  Everyone knows that having equity in one's home means that your financial statment reflects that equity, thus providing greater net worth!  This can apply to the First Time Homebuyer as well a someone looking for a great rental property, a second home, or your primary residence. 

There are literally hundreds of web sites that claim to have current lists of foreclosure homes for sale all over the country.  Most of those sites have outdated information and require a fee to join.  One site that will usually NOT have out of date listings and is FREE to use is HUD... short for the "U.S. Department of Housing and Urban Development".  And one of the largest property managers for HUD is HMBi, which stands for HARRINGTON, MORAN, AND BARKSDALE, INC.   Based out of Texas, they represent several states, including North Carolina, with foreclosures listed with HUD.  For foreclosures in Winston Salem, NC, we are, therefore, interested in the HUD listings for our area.   Their web site for our area is www.hmbiweb.com/listings.html.  Once there, click on the map for North Carolina to begin your search for homes.  Now that we have that much information to go on, let's find out "How to purchase  HUD foreclosure real estate."  

All properties with HUD are "up for bid".  HUD leaves the foreclosed property open at first to only those buyers who plan to occupy the property, once the sale is closed.  After a stated period of time in the bid process, if the property has not gone under contract, then HUD will open it up to investors as well, since investors usually do not plan to occupy the home after the sale.   At any case, you will need a HUD Approved Real Estate Broker/REALTOR® to represent you in the bidding process.  Beware!! Once you have your agent to place the bid, if it is accepted, you should be ready, willing, and able to move forward towards the purchase.  There will be time limits for all the steps involved, if your contract is accepted. Therefore it is critical that you have your financing in place PRIOR TO YOUR SEARCH for a foreclosure home to purchase.

Starting at the beginning, you must select a Certified HUD Broker/REALTOR®.  The difference between a REALTOR® and a "real estate agent", is that all agents are not REALTORS.  For an agent to become a REALTOR®, he or she must periodically attend the REALTOR's Ethics Classes and pass the exam.  Realtors are expected to live by a higher standard of ethics and trustworthiness.   To become a Certified HUD Broker, each broker must go through a "standards and informational" process in order to qualify to represent the buyer in a HUD real estate purchase.  Once that is completed, then they receive their acceptance letter and keys to all HUD properties in the area.

When applying for a loan for a HUD property, you must know up front if the foreclosure home in Winston Salem that will be selected, has a "Repair Escrow Account" established.  Your REALTOR® will be able to find that out early in the process.  You may be thinking, "Why should that be a big consideration?"   The answer is that most lenders today will not close on a property that has a "Repair Escrow Account" in the mix.  And, certain types of loans will not work either, such as an FHA loan.  So, decide to  get "pre-approved," (not just pre-qualified) with a lender that will accept such a stipulation.  Once you have your preapproval letter (and a copy for your REALTOR®), you can now begin to visit HUD foreclosures with confidence that when the right property is found, you will be able to move on it quickly and secure the BID!!

As you select homes to visit, consider those that have a much higher tax value than the list price shown on the HUD website.  Starting with those and then working down the list to those where the tax value and the list price are getting closer and closer together with help you end up with more equity at closing.  If all pieces fall together properly, ending up with the home that has the widest spread between the higher tax value and the lower list price, will serve you well in the long run. Of course the condition of the property, even with a wide spread, can determine if a bid is even a smart thing to do at all. 

Next in the selection process of a foreclosure home in Winston Salem  is to visit the properties with your REALTOR®.  Examine every aspect carefully and with a check list to help you remember things when you get back home.  Your REALTOR® may be versed in repair costs, however if you have a personal friend who is a building contractor or repairman, familiar with the trade labor and supply costs, that would be a big asset in determining rough estimates before bidding.  Ask that person to tag along to the propety with you and your agent.   Bring along a digital camera as well to help you document any damages found.  Many foreclosures do have damage, either from disgruntled owners, vandalism, or from just being unoccupied for long periods of time.  Most all HUD homes will have no electrical power on and plumbing shut off. A flashlight or two are handy to have. 

Things that should be on your check list are:

 1.  Exterior Condition:  Siding, Roof, all exterior doors, windows, chimney, appearance of foundations, proper gutter drainage, yards and trees, driveway condition, and roads leading to the home.  If that road is gravel, the Lender will want to know who is responsible for keeping the road up. 

2.  Check for vandalism and make notes on the extent of damage.  Use your camera especially here to help you document those areas that may be in obvious need of repairs.

3.  Visual checks of heating and air conditioning and heating systems, electrical panel box, visual conditions in existing appliances, of water well pumps and tanks, and water heaters.

4. Visual water damage in all areas and especially in basements and crawl spaces, making notes of any moldy smells or evidence of long term dampness. 

Your broker should be able to lend some help and suggestions from his or her experience.  However, your NC Certified Inspector will be the expert in the inspection process, which will occur once you succeed in the bidding process. 

Next, have your REALTOR® to perform a Comparative Market Analysis (CMA) on the property to determine what other similar properties in the area have sold for during the past few months, to determine what values to consider for the property in question.  

Once all these items have been completed and you have decided what price to use for the bid, give your approval for the REALTOR® to place your BID!!  

Foreclosure Homes in Winston Salem can be a real source of great equity up front for the new buyer if careful consideration is done upfront and all along the process. 

Please email me at dpatterson1@triad.rr.com for further real estate information on this topic or others.  Please visit my website at www.callDOUGnow.com to perform free MLS home searches for a great home, whether it is a foreclosure or a conventional purchase.   I will be glad to help you with your real estate questions at any time. 

Thanks and Look forward to your comments!

First Time Homebuyers in Forsyth County, NC $8000 Tax Credit Deadline Approached!

Whatever monitoring device you use, such as Microsoft's Outlook Calendar, Facebook's CountDown Feature, or just a plain old "Wall Calendar",

NOW is the time for First Time Homebuyers to mark the ending date of NOVEMBER 30th.   There are efforts being made by The National Realtor's Association to impress upon our government to extend that cut-off date, but if it is not extended, First Time Homebuyers are encouraged to locate the home they wish to purchase and "get under contract" with the seller prior to October 15th.  By heading towards October 15th, the first time homebuyer will be in position to have the sale closed by the November 30th DEADLINE!

To qualify for this tax credit, a First time homebuyer  and spouse must not have owned a home during the three years prior to the purchase.  That's the definition of a "First Time Homebuyer".  (You may have owned a home prior to those last three years)  If the Buyer is single, his or her income must be $75,000 or under.  If the Buyer is married, the combined incomes should not exceed $150,000, and taxes need to be filed jointly.  

Another earning scenario is that if an unmarried Buyer is earning between $75,000 and $95,000, that Buyer could qualify for the tax credit at a reduced amount.  For the married buyer with the earnings range of $150,000 and $170,000, they may qualify at a reduced amount also.  The tax credit decreases as the buyers income approached the maximum limit.   First time homebuyers over the $95,000 for single persons and over the $170,000 for married couples will not qualify for the tax credit.  

There is another important situpulation to receiving any of these first time homebuyer's tax credit.  If the buyers do not occupy the home for at least 3 years and the house is sold during the 3 year period, the credit they had received will be recouped at the closing of the sale. 

This is an interesting scenerio.  If a single person (A) qualifies as a first-time homebuyer at the time he/she purchases a home WITH someone (B) that is not a first-time homebuyer and then later that year they marry each other, the tax credit for the single person (A) stands good.  The reason is that the first time homebuyers tax credit is determined at the date of the closing of the sale.  If they marry later, the single person (A) doesn't lose the tax credit.

With all this data, if you are planning to purchase a home this year and you are a first time homebuyer, now is the now to get off that sofa and hustle.  If your team is playing ball...put it on "record game", and together let's start looking for that new home!!

To learn more about how I can help you find your new home,  please go to my website at www.callDOUGnow.com or email me directly at dpatterson1@triad.rr.com for an appointment to discuss all the possibilities!    I look forward to helping you reach your real estate goals!

Home Sales are stabilizing in Winston Salem, NC! 

I was out walking my dog, “Winston”, a two year old male Schnauzer, the other day and struck up a conversation with another fellow from the adjoining neighborhood. He asked me what I did for a living and I told him I was a REALTOR®.  I naturally referred him to my "easy to remember" web site:  www.callDOUGnow.com

Then he made the comment, “I read in the Winston paper that  home sales are stabilizing in Winston Salem.”

“Hold On,” I replied! “A statement like that about Winston Salem (and Forsyth County as a whole) is a little misleading.”   “How so,” he asked.  So I proceeded to share my thoughts on the real estate market …you know... like most of us in our industry can tend to do from time-to-time!  

Generally speaking though, North Carolina hasn’t had the inflated home values like so many other parts of the country.  In fact, every four years, Forsyth County performs a review of property taxes and 2009 was the year.  It resulted in a general increase in property values, indicating again that home sales are stabilizing in Winston Salem.    

That’s not to minimize the fact that, due to job losses and other factors, the Triad has experienced more foreclosures than usual. But there again, not the large numbers that have plagued many other states.

Let me digress just a bit.  North Carolina is truly a great state to call home, mainly because we have such a varied environment from the western mountain region to the eastern coastal range.   The middle section, referred to as the "Piedmont",  has been promoted well in an effort to position North Carolina with a strong economy.   In 1991, the Piedmont Triad Partnership was developed to promote the "collective resources of the Region" in order to recruit new jobs and investment to the Piedmont Triad. Today, the region is a national economic model and the Piedmont Triad Partnership has been recognized as one of the leading economic development organizations in North America.  This is another reason why home sales are stabilizing in Winston Salem.

Our historic North Carolina coast is protected in many locations from "over development" and therefore retained it's natural resources and beauty.  Well planned communities are abundant and vacationers come back often.  When community leadership is strong and long term planning is in place, should a recession occur, mild or severe, then a recovery is much quicker.  This incite in our planning is now paying off as is shown, since home sales are stabilizing in Winston Salem. 

The historic Outer Banks and Ocracoke Island on the Cape Hatteras National Seashore, was established as the country's first National Seashore in 1953.  (outerbanks.org/index.asp)

Getting back to my original point… Winston Salem Home sales are Stabilizing… According to our local paper, the Winston-Salem Journal  (www.journalnow.com), a recent comparison of existing homes sales indicated that Forsyth County showed a decrease in homes sold, but the average sales price was up by 9%.  

FORSYTH COUNTY HOME SALES:      July 2009: 439 homes           July 2008: 561 homes

FORSYTH CO. AVG. HOME PRICES:    July 2009:  $197,661           July 2008: $180,977

(Journal Source: Winston Salem Regional Association of Realtors)

There are a lot of excellent reasons to live in beautiful North Carolina, and I’ve only touched on a few of them here, but I welcome your questions and comments. You can also reach me at dpatterson1@triad.rr.com 

I stand on the grounds that Home Sales are Stabilizing in Winston Salem  North Carolina , and hopefully will always remain, a “Stable” place to live.

Mayberry was a DREAM WORLD and it’s only 26 miles north of Winston Salem just past "Mt. Pilot!"

To learn more about North Carolina, Winston Salem and Forsyth County,  please contact me at www.callDOUGnow.com

…and we all already know what happened to “Little Opie”!!