Terri Latta's Blog

Dramatic Developments in Marketing during the past decade!

Thu, 07 Jan 2010 10:27:00 GMT

A Decade of Dramatic Developments
At the beginning of the 21st century, most home buyers had never viewed a home online; the three top home sale marketing methods were yard signs, newspaper ads, and open houses; and nearly nine out of 10 buyers financed their purchase with a fixed-rate, 30-year mortgage.

What a difference a decade makes.

“The real estate industry has seen tremendous change and evolution over the past decade,” said NATIONAL ASSOCIATION OF REALTORS® President Vicki Cox Golder. “As the first, best source for real estate information, REALTORS® have not only anticipated and adapted to the evolving needs of their clients and customers, but also have influenced industry trends and innovations that will carry us into the future.”

In 1999, buyers who went online in search for a home were in the minority – only 37 percent of buyers used the Internet in their home search, according to data from the NAR Profile of Home Buyers and Sellers. Today, 90 percent of buyers are searching online, and the real estate industry has responded. Sites like REALTOR.com, which attracts nearly 12 million total visits every month, have evolved to gives today’s buyers what they want – not just property listings, but multiple photos, online videos, mapping features, and comprehensive neighborhood information, as well.

Median home values over the past decade have increased more than 25 percent, from $137,600 in November 1999 to $172,600 in November 2009 (the most recent existing-home data available). Fewer people are buying detached, single family homes – 82 percent in 1999 compared to 78 percent in 2009 – but more people are buying homes in suburban neighborhoods – 46 percent in 1999 compared to 54 percent today.

Buyers themselves have also changed. A smaller proportion of married couples are buying homes these days; while married couples comprised 68 percent of all home purchases at the beginning of this century, they represent 60 percent of all buyers today. Single men and women have made up the difference – single men purchased 10 percent of all homes last year, compared to only 7 percent 10 years ago. Single women now represent more than one-fifth of all home buyers – 21 percent, up from 15 percent in 1999.

Other things haven’t changed. The median age for home buyers last year was 39, just as it was in 1999. Neighborhood quality, affordability, and convenience to work and school have consistently been top priorities for both past and present buyers. And eight out of 10 recently surveyed consumers believe that owning a home is an investment in their future.

“REALTORS® have been around for more than 100 years, but one constant during that time has been the persistence of homeownership as the American Dream,” said Golder. “As the first decade of this century comes to a close, NAR stands ready to meet the many challenges and opportunities that lie ahead by helping our REALTORS® members better serve their clients and communities and ensuring that those dreams of homeownership remain possible for all who want to achieve it.”

Source: NAR

The process of getting a loan

Sat, 05 Dec 2009 09:49:00 GMT

The Process of Getting a Loan

Once all the required documentation has been gathered, the loan officer will submit your loan application to underwriting. Underwriting is the process of reviewing all of the information and making a decision as to whether a borrower qualifies for a loan. Underwriters evaluate your ability to repay the loan (income), your repayment history (credit) and the value of the property that you've identified (collateral). The lender will make every effort to help qualified borrowers achieve their home financing goals.

In deciding whether to approve a loan, the underwriter reviews the following information:

Loan application. The information provided on your application helps the lender answer basic questions such as:

What is the source of your income, and is the source stable?
Is your income adequate to cover the expense of the new mortgage payment?
How much long-term debt (debt that will not be paid within the next ten months) do you have?
Are there enough assets to cover the down payment, closing costs and other expenses?

Credit history. Your credit history helps lenders evaluate your ability to manage debt. It reflects how repayment of your bills has been handled in the past.

Property appraisal. An appraisal provides an estimate of the market value of the home and is based on similar homes sold in the neighborhood. Lenders usually grant up to a certain percentage of the property's value in a mortgage loan. This percentage is called the loan-to-value (LTV) ratio. The rest of the property value is covered by your down payment.

What are sellers in Huntersville getting for there homes.

Wed, 11 Nov 2009 03:00:00 GMT

What are sellers in Huntersville getting for there homes?

November 11, 2009

By Terri Latta

Latta Realty, Inc.

Almost every day someone ask me what sellers are getting for their homes. I love that question because it is important to both buyers and sellers.

Buyers need this information to help them better understand what to offer for the home they want to buy. Sellers need this same information to help them estimate the net figure they will receive after negotiating an offer.

The answer unfortunately is “it depends”. It is something you have to keep a close eye on in a shifting market, like the one in which we currently live.

It also depends on supply and demand. Right now, in most areas, the demand is at a lower price point because there are more buyers in that price range.

Suprisingly, when we compare the market in 2006, MLS reports the average list price for Huntersville (1/1/06 – 11/11/06) at $270,434 with average days on the market at 62. 1187 single family homes sold.

For the same time frame in 2007, MLS reports the average list price at $279,413 with 64 average days on the market. 1073 single family homes sold.

For the same time frame in 2008, MLS reports the average list price at $284,812 with 88 average days on the market. 701 single family homes sold.

For the same time frame in 2009, MLS reports the average list price at $256,867 with 110 days on the market. 529 single family homes sold.

So we see about half the homes have sold this year that sold in 2006, at about 5% less.

Here is the sales data for single family homes in Huntersville year to date:

□ 406 homes below $300,000 . . .. . 96% of asking price . . . . 100 DOM

□ 110 homes $300,000-500,000 . . . 95.5% of asking price . . .128 DOM

□ 5 homes $500,000-700,000 . . . . 92.5% of asking price . . . 237 DOM

□ 6 homes 500,000-1 million . . . . . 92% of asking price . . . . 271

□ 2 homes over 1 million . . . . . . . . 95.4% of asking price . . . 195

I hope this gives you some insight into why there is no easy answer. If you have any questions, please email me at terrilatta@bellsouth.net. Also, I encourage you to post a comment on thi

Home Buyer Tax Credit Extended and Expanded

Mon, 09 Nov 2009 10:15:00 GMT

Home Buyer Tax Credit Extended and Expanded

	Current	New
Effective Date	· January 1, 2009	· December 1, 2009
Deadline	· Close on or before November 30, 2009	· Contract signed before May 1, 2010, must close before July 1, 2010 · Members of the uniformed services, foreign services, and intelligence employees who served an extended service of 90 days will have until April 30, 2011 and June 30, 2011.
Amount	· First-Timers: maximum of $8,000 or 10% of sales price · Prior Owners: $0	· First-Timers: Unchanged · Prior Owners: $6,500 if lived in prior home for at least 5 years of past 8 years
Income Limit	· Individual: $75,000 · Couple: $150,000	· Individual: $125,000 · Couple: $225,000
Other Restrictions	· Home must be primary residence for at least 3 years. If home is sold or buyer moves before 3 years, must re-pay full amount of credit.	· Buyer must be at least 18 years old and not classified as a dependent for tax purposes · Home must cost less than $800,000 · New Home must be primary residence for at least 3 years following purchase. If home is sold or buyer moves, before 3 years, must re-pay full amount of credit. Exception for military, foreign services, or intelligence with extended 90 days service overseas.
How to claim	· If purchased in 2009, by amending 2009 tax return or claiming on 2010 tax return	· If purchased in 2010, by amending 2010 tax return or claiming on 2011 tax return

Duplicated from Keller Williams Realty website

Investigate the Home Owners Association

Fri, 30 Oct 2009 09:13:00 GMT

Did you investigate the Home Owners Association before you bought?

Or did someone knock on your door the day you moved in to tell you not to park your RV in the driveway or you would be fined? Not a very warm welcome on moving day.

Home Owners Associations (HOA) have become the norm in our area, so if you are buying in a suburban area, you most likely will be under the guidelines of an HOA.

That said, the best thing you can do during your due diligence process is read the HOA covenants, conditions and restrictions (CCR’s). After reading, if you have any questions about what you can and can not do, you should discuss them with your closing attorney. If an interpretation is needed, it would require an opinion from an attorney. And, of course, you can contact the HOA management company or the president if it is self managed and talk directly about your concerns. If CCR’s are not available, you could drive to the court house or pay the required fee to the management company to obtain your own set of CCR’s.

If you are thinking about selling your home, you are entitled to a copy of the CCR’s. Call the management company and have them email you a copy. Then you can forward the email to your realtor to have on file for a prospective buyer. The better prepared you and your realtor are, the smoother the transaction.

The boards that run HOA communities consist of homeowners elected from the neighborhood. They are not subject to the constitutional constraints of government and wield a lot of power under N.C. law. They set dues, require assessments (homeowner required payment beyond dues) to cover expenses, fine homeowners for noncompliance, place liens o homeowners for unpaid monies and they can even foreclose on property.

If you have a board that is not “friendly” to those in the neighborhood trying to sell their homes, don’t vote them back in. An “unfriendly board” can get a bad reputation with the general public and even cause sales to lag in a community. Be careful who you elect. Make sure they are professional and knowledgeable.

Appraisal Rule Changes

Wed, 21 Oct 2009 03:00:00 GMT

Wow! Have you seen the Home Valuation Code of Conduct? It essentially regulates the way appraisals are assigned on Fannie Mae and Freddie Mac's conforming loans. Many believe it was ill conceived and poorly implemented.

It seems not only are consumers suffering, but so are real estate practitioners and appraisers.

We did need revisions, but this one is baffling many of us.

Many lenders are using appraiser management companies. We are seeing out of area appraisers who are not familiar with "our area" and not giving fair value to homes. This hurts both buyer and seller.

Some lenders are still using the same appraisers. They are not allowed to know which particular appraiser will be preforming the appraisal, but at least they know they are familiar with the neighborhood.

Before you commit to a lender, ask your real estate broker to check this out. The pendulum could swing either way.

Has the Market Stabilized in Davidson?

Wed, 14 Oct 2009 03:00:00 GMT

Has the market stabilized?

That is the question everyone is asking these days. Here is the answer for Davidson.

The listing price has remained fairly stable. For the past six months the average list price has been $510,382 with an average of 3000 square feet.

The sale price in Davidson for January was $523,177. Average square footage was 3290 and the average days on market was 117. 5 sales.

The sale price in Davidson for February was $375,192. Average square footage was 2909 and the average days on market was 68. 6 sales.

The sale price in Davidson for March was $419,638. Average square footage was 3093 and the average days on market was 89. 12 sales.

The sale price in Davidson for April was $543,928. Average square footage was 3110 and average days on market was 100. 7 sales.

The sale price in Davidson for May was $514,003. Average square footage was 3175 and average days on market was 211. 11 sales.

The sale price in Davidson for June was $578,000. Average square footage was 3573 and average days on market was 144. 8 sales.

The sale price in Davidson for July was $479,272. Average square footage was 2917 and average days on market was 138. 11 sales.

The sale price in Davidson for August was $365,391. Average square footage was 2804 and average days on market was 152. 12 sales

I did not include homes that were in the Davidson Housing Coalition. They are restricted sales and not true comparables.

Here’s the good news for Davidson: There are currently 14 homes under contract. The average list price is $444,138. We will not have the sales price until they close.

The average list to sale differential for the past six months has held at 95%.

Real Estate Update

Thu, 08 Oct 2009 03:00:00 GMT

Thought you might like a quick update from the National Association of Realtors.

The smallest drops in price since the plateau in real estate prices have been in Charlotte, North Carolina, and Omaha, Nebraska, which dropped only about 3%, while Phoenix has almost halved in value since 2007. It is worth noting that those cities whose values have dropped very little were not victims of the original run-up in prices. Cities where values have dropped precipitously also saw double housing inflation between 2003 and 2007.

Nonetheless, the million dollar homes in virtually every city in the nation are selling at large discounts and are remaining on the market for far longer than they did 2 years ago. An overwhelming reason for this drop in purchases is that jumbo mortgages (in amounts of more than $417,000) have become more expensive to carry and harder to fund. Also, many former millionaires have been affected by the economic crisis and have determined to purchase homes that serve as shelters, rather than as showcases.

Thank you,

Terri Latta

www.LakeNormansBestHomes.com

When is the Best Time to buy a home?

Wed, 07 Oct 2009 03:00:00 GMT

Everybody is very cautious now when it comes to buying a home. Especially the first home. You should be cautious and have your agent give you lots of statistics. But, beware of paralysis by analysis.

Your real estate broker can help you interpret the data. I love for the buyers I represent to have a firm grasp on the market.

Keep in mind that interest rates now are similar to the 1950's - low. I haven't been helping buyers quite that long - lol. But, during the past 20 years this is the best I have seen.

If it is your first home, take advantage of the $8,000 tax credit (you actually do get it back - ask your accountant just exactly how it will benefit you).

Think about it this way. If you buy while the interest rates are below 5% instead of waiting until they reach 7.5% (which we thought was great in the 90's), prices would have to go down by another twenty percent to make up for the difference in your monthly payment. Many analysist believe the real estate market is now beginning to stabalize - which would mean we are no longer declining and that great deal is now!

Email me if you have questions. terrilatta@bellsouth.net

What are sellers in Huntersville getting for there homes?

Mon, 23 Mar 2009 22:06:00 GMT

About every day someone asks me what sellers are getting for their homes.

I love that question because it is important to both buyers and sellers.

Buyers need this information to help them better understand what to offer for th home they want to buy. Sellers need this same information to help them estimate the net figure they will receive after negotiating an offer.

The answer unfortunately is “it depends”. It is something you have to keep a close eye on a shifting market, like the one in which we currently live.

It also depends on supply and demand. Right now, in most areas, the demand is at a lower price point because there are more buyers in that price range.

Surprisingly, when we compare the market in 2006, MLS reports the average list price (for Huntersville) $272182 and average sale price $268,573. Average days on the market 61. The average list to sell differential was 98.6%

Year to date, Huntersville average list price is $261731, with an average sale price $250,043 The average list to sell differential is 95.5%. Days of the market has increased to an average of 133.

Here is the sales data for Huntersville year to date:

12 homes below $300,000. . . . . . . 96% of asking price. . . . 121 days on market
6 homes $300,000-500,000 . . . . . 94% of asking price . . . . 167 days on market
6 homes $500,000-700,000 . . . . . .100% of asking price . . . .235 days on market
6 homes $700,000- 1,000,000 . . . 109% of asking price . . . .294 days on market
1 home Over $1,000,000 . . . . . . . 85% of asking price . . . . 360 days on Market

I hope this gives you some insight into why there is no easy answer to this question. If you have any questions, please feel free to contact me. Also, I encourage you to post a comment to this article.

Terri Latta

Keller Williams Realty

What are Sellers Getting for Their Davidson Homes?

Sun, 22 Mar 2009 07:59:00 GMT

About every day someone asks me what sellers are getting for their homes.

I love that question because it is important to both buyers and sellers.

The answer unfortunately is “it depends”. It is something you have to keep a close eye on a shifting market, like the one in which we currently live.

It also depends on supply and demand. Right now, in most areas, the demand is at a lower price point because there are more buyers in that price range.

Surprisingly, when we compare the market in 2006, MLS reports the average list price (for Davidson) $464,239 and average sale price $458,901. Average days on the market 90. The average list to sell differential was 99%

Year to date, Davidson average list price is $492,424, with an average sale price $475,512. The average list to sell differential is 96%. Days of the market has increased to an average of 115.

Here is the sales data for Davidson year to date:

12 homes below $300,000. . . . . . . 94% of asking price. . . . 103 days on market
6 homes $300,000-500,000 . . . . . 95% of asking price . . . . 150 days on market
6 homes $500,000-700,000 . . . . . .98% of asking price . . . . .141 days on market
6 homes $700,000- 1,000,000 . . . 100% of asking price . . . . 51 days on market
1 home Over $1,000,000 . . . . . . . 93% of asking price . . . . 276 days on Market

Terri Latta

Keller Williams Realty

Home Buyer Tax Credit of $8,000 at Lake Norman, NC

Fri, 20 Mar 2009 15:42:00 GMT

This is a great program for first time home buyers in North Carolina. Here's how it works:

The American Recovery and Reinvestment Act of 2009 contains a provision to assist/encourage first-time home buyers with a home buyer tax credit of $8,000. Below is a brief description of the program:

Amount of the Credit
Lesser of 10% of the cost of the home or $8,000

Eligible Property
Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence

Refundable
Reduces income tax liability for the year of purchase. Any unused amount of the tax credit is refunded to the purchaser.

Income Restriction
Individuals with an adjusted gross income of less than $75,000 ($150,000 for a joint return) can receive the full tax credit amount. The program phases out completely abouve $95,000 per individual and $170,000 for a joint return.

Who is a first-time buyer?
Any purchaser who has not owned a principal residence in the past three years.

Repayment
This credit contains a recapture clause that will require that the entire credit is repaid if the home is sold within three years after purchase.

Effective Dates
For purchases between January 1, 2009 and September 1, 2009

So, if you are a first time home buyer, hurry before it ends

Market Trends at Lake Norman, NC

Wed, 19 Mar 2008 16:25:00 GMT

Are you looking for a really good deal - maybe a foreclosure with waterfront at Lake Norman, NC? Or maybe a luxury homes in Davidson, Cornelius, Mooresville, NC? Or a gated community at Lake Norman, NC.

Folks that are in the market to buy a home seem to be looking for deals now. I don't blame you we all love to save money. Sellers that are currently selling now are still in last year's mind set - when it was a sellers market and we frequently saw muliple offers on one property.

So, is it "never the twain shall meet"? Or, is there some kind of happy meeting ground?

Actually, it is a home buyers market and this is a great time for buyers.

But, hold onto your hat. If you are a buyer and looking for a home under $417,000 this may really be a great time. FHA buyers are seeing more appealing loans with less restrictions. Buyers looking for jumbo loans are finding loans much harder to get. Lenders are looking for really good credit scores.

Home Sellers during the past few years were in the drivers seat. Now, sellers are finding it necessary to do the home repairs, improvements and offer closing cost. Buyers are looking for value. With the average days on the market increasing and the compeitition becoming stiffer, sellers may really need to show value and make their home heads and sholders above the rest.

Home Buyers at Lake Norman are often now carrying the upper hand in the negotiating process.

Home Sellers are requiring proof of the buyers ability to finance now. The subprime market has virtually disappeared. Lenders want more money down and higher credit scores.

There is a time and a season for all things - this may be the buyer's season.

Who is on your side when you build a house?

Sun, 09 Mar 2008 09:29:00 GMT

Did you know that when you buy a house from a builder in the Lake Norman or greater Charlotte area of North Carolina, the builder’s sales representative (sometimes a real estate agent) works for the builder and not for you. They represent the builder in their dealings with you. In North Carolina the builders agent must promote the builders best interest, be loyal to the builder, provide the builder with all material facts that could influence the builder’s decisions. So be careful how much you tell the builders sales agent, it could hurt you later in negotiations. The builders agent must not give you any confidential information about the builder without the builder’s permission.

So, who represents you? Did you know that the builders pay the real estate commission to the buyers agent. That said, most informed home buyers want someone to represent them. Buyers also want someone to be loyal to them and be on their side during negotiations.

Most builders use their own purchase contract, not the standard offer to purchase and contract that was written by the NC Bar Association. All too many times I have heard an unrepresented home buyer say the builder agreed to make the purchase of the new home contingent upon selling their house - only to be told when the new house was almost completed that was not in writing and would not be honored and they would be forced to complete the sale. Sadly, that is true. North Carolina only recognizes written real estate contracts. Oral contracts are not enforceable.

A good buyer’s agent should always give you a market analysis before you buy a home. If you do not have a buyer’s agent representing you, how do you know you are not overpaying for the home? In building a home, you can get exactly what you want – at a price. That is why a market analysis prepared by your agent becomes very important. Informed decisions are always best. Maybe you want what you want, even if it means you are overpaying. That can become acceptable as long as you are knowledgable and make your decisions based on fact.

An experienced Realtor knows from prior dealings what the builders how much they will actually be willing to “give away”. I bet that is knowledge and experience that you would like to tap into.

Another important aspect of having your own real estate agent is “local features” - things people at Lake Norman, Davidson, Huntersville, Cornelius and Mooresville like to find in the home in which they live.. If you builder is trying to just get you to spend more money on upgrades – watch out. Some upgrades are definitely worth it, either for your personal enjoyment or the fact that it really does add value. Adding value to a house may not be the same for the Lake Norman area as it is in the NorthEast or West. For example, a kitchen counter standard in the Lake Norman is granite. Local buyers expect granite in most price ranges. Another example is the master bath. Lake Norman folks love a luxurious master bath. Homes that sell in Huntersvile, Davidson, Cornelius, and Mooresville have certain features that help them sell for the shortest amount of time for the most money. Your buyer’s agent can help you with that.

Terri Latta, CRS,GRI,ABR

Broker and Accredited Staging Professiona

Measuring a House

Sat, 08 Mar 2008 10:03:00 GMT

Begining March 27 the Charlotte Regional Realtors Association will be changing the way square footage is reported on the Multiple Listing Service. Instead of actual square footage, it will be reported as a range.

Many other parts of the country already report the size of the house this way. Lots of folks tell me the most important dimension is the actual size of the "room" itself. They want to know if the plasma TV will fit or will the dining room table will fit into the room with enought space to walk around. Or they want to know if their bed will fit into the room - or will the window placement interfere with their current furniture.

We are, however, very close to the furniture capital of the world. So maybe you just want to buy some new furniture.

The square footage reported on the tax records is most frequently wrong. It was most likely taken from the original floor plan. As you know, during the sales process or during construction, that usually changes due to the desires of the owner (make a room bigger or smaller) or actual construction will not allow a particular design.

Here are a few points of interest: if your room (let’s say the bonus room) has a knee wall that is less than 5', you must deduct that space (the dimension of the less than 5' area). If it is 5' or more and has a ceiling height of at least 7' over a minimum of 1/2 of the room you can count the space. Houses are measured from the outside. If you have bushes close to the house, put a stake into the ground on the other side of the bush and measure from there. If 4 people measure your house, they will probably get a different calculation.

If you want to know more about how to measure a house in the Lake Norman, Huntersville, Davidson, Cornelius, Mooresville area of North Carolina, visit www.ncrec.state.nc.us/publications-bulletins/sqft.html.

Terri Latta

Gardening in the Lake Norman NC area

Wed, 05 Mar 2008 19:51:00 GMT

Spring is just around the corner! I have been thinking about what to do to prepare for a gorgeous spring. In and around Lake Norman, Davidson, Mooresville, Huntersville, and Cornelius North Carolina we never know exactly when spring will arrive, but is usually is about March 20 or 21 – that is when we have exactly 12 hours of light and 12 hours of darkness.

The Lake Norman, Huntersville, Davidson, Cornelius, Mooresville areas of North Carolina seem to have a high number of corporate transfers. When people relocate to the "Lake Norman" area they bring with them ideas of their favorite plants from back home. If you are transfering from the Northern part of the United States, remember to "think backwards". You probably planned alot around cold weather, not you need to plan around hot weather. You'll want more shade trees. And, because we are still in a drought, you should consider drought resistant shrubs. Some good choices for the Lake Norman area are: abelia, forsythia, leatherleaf mahonia, quince, rose of Sharon, gardenia and many kinds of hollies. For a full list of details including growth rate, size and environment visit: www.ces.ncsu.edu/depts/hort/consumer/quickref/shrubs/shrubs-drought.html

Anne Clapp of News 14 Carolina says the first order of business is to still enjoy our winter garden but to “clean up edgings so you can get mulch in there when spring arrives”. She also said in her 2/29/08 article Prepare Your winter garden for spring “one of the prettiest plants in the garden this time of year is the Lenten rose. Don’t remove the flowers - you’ll want it to go to seed – but some others will need to be taken care of a bit.”

If you are relocation to North Carolina, I'd love to know what your favorite southern spring flower is. Let me know.

Do you have a favorite spring tip for gardening in the Lake Norman NC area that you would like to share? I’d love to hear from you.

Terri Latta

The Latta Team

Keller Williams Realty