Eric Andrews..NC Landman..

Pay to Play....Who pays? And how much?

2011-04-04T07:44:00.000-07:00

North Carolina's New Offer to Purchase is new and exciting. However, not everyone knows how to use it. Buyers and sellers are excused. Brokers are not. In looking out for the best interests of our clients brokers need to demand meaningful consideration as compensation for the inconvenience of taking a proeprty off of the market. Especially during our Spring Selling Season.

It may be a buyer's market. Still, sellers should have reasonable expectations of an amount they wish to be paid for removing their property from the active market. Buyers should have a resonable amount in mind when making their offer. In a stronger market a good rule of thumb would be to estimate the holding costs to the seller for the amount of time the property is off of the market. However, because of the soft market, buyers are getting away with much less. In the first few months it was very common to see $0 for Due Diligence Money. Quickly, sellers and agents realized that was often too little money for the seller to be inconvienced.

Stream Identification-Water features

2011-03-16T06:00:00.000-07:00

Municiplaities have become increasingly aware and protective of our water resources. Sedimentation is more of a pollutant than we previously realized and now there are many rules and regulations to assist with erosion control. It is essential that we identify the water features on a property. All properties have water features. Water features are the pathways water takes when in excess of what can be absorbed by the subject property or the surrounding properties in the water shed.

For accurate and detailed identification one should consider hiring a licensed Stream Identifier for the evaluation of a property. However, there are some useful hints you or your land specialist should consider in a preliminary evaluation. Water features can be broken down into three basic groups. They are:
1)Perennial-Meaning the water feature such as a stream, river or pond is present throughout the year. Such water features are distinguished from others by having aquatic fauna and vegetation. Perennial features often have certain restrictions involving set backs. Property owners may be prohibited from building or clearing near a perennial water feature. Perennial water features are often shown as colored blue areas or blue lines on GIS maps.
2)Intermittent-Sometimes referred to as a 9 month stream, this is a water feature that carries or holds water for most of the year but normally dries up in summer and fall due to a lack of rain. These water features may or may not have aquatic life or vegetation. They normally have clearly identified banks and rock features. They may have setbacks for building.
3)Ephemeral-Sometimes refered to as a storm water stream, they are just that. In times of wet weather these are the areas that carry water to the Intermittent and Perennial Water Features. You may or may not see any rock features. It may be necessary to re-direct Ephemeral Water Features to build most often setbacks are not necessary.

How to find land that percs (perks) by topography.

2011-03-15T09:01:00.000-07:00

Beyond the other hints I posted the other day, one can look at the topography of a tract to determine whether or not there is suitable land for a septic system. One of the best clues I have ever been told is a term known as "shouldering." If one were to imagine the side view of a tract, with the topography high on one side and low at the other...right in the middle, if it isn't too steep, there is sometime a feature that resembles a shoulder. The higher land may or not be good for a septic. The lower land may be wet or often all of the suitable soils are washed away. In the middle, on the ridge, there is the shoulder. Often, this is the area with the best soils. It has the added benefit of being downhill from the best homesite. Gravity feed septic systems are considerably less expensive than mechanically assisted systems. (Pump) So, when looking for suitable soils, find the middle ground. It can save you hours of digging.

Land Will Perc (Perk)-Clues to look for, Central North Carolina

2011-03-10T08:11:00.000-08:00

I am not a soil scientist...but I have been in the game long enough to come up with a list of things to look for:

(Positive Signs) Crumbly Red Soils. Fire Ant mounds with red soil. Blown over trees, look under the stumps, red soils. White rocks. Running cedar. Straight trees, hardwoods. Cultivated pasture. Farmland.

(Negative Signs) Packed White or Grey Soils. Flint. Blown over trees with puddles underneath the roots. Ponds. Broomstraw grass. Bull rush grass. Crooked trees. Scraggly trees. Swamps.

You can look up the soils on GIS to get a broad overview. Most of the time they are right. Soil Scientist is the best way to go. Anywhere from $75-$150 per hour.

If perc is short for percolating, why do we write perk?

2011-03-08T12:54:00.000-08:00

I always write perc on my forms and property information. (Short for percolate, percolating, or percolation.) I am constantly being told to fix the typo. I insist it isn't a typo. It does not help that our local MLS prefers to spell it wrong and the state that issues the permits spells it wrong. To percolate is to trickle down though a substance. In other words waste water through soils.

9 times out of 10 when I get a call about concerning the perc information I get questions about a well. Many think perc information is in regards to well and water productivity.

Realty World Carolina Properties Sets 2 New Land Sales Records

2011-03-04T08:59:00.000-08:00

Travis Cox, a broker with Realty World Carolina Properties closed on a 129.5 acre tract in SW Chatham, setting a new large track record for the office.

Additionally, RWCP had 40% of all land sales in Chatham Coutny for the month of Feb., 2011. Our highest market share ever.

True Grit

2011-02-26T11:52:00.000-08:00

I read an article yesterday in a magazine at the gym. It was discussing the matter of grit. What does it take to make it in our modern age?

West Point is arguably one of the mist difficult schools in the country to get into. They consider grades, extra curricular activities such as sports and clubs, raw athletic ability, and leadership skills.

Still, once admitted, cadet candidates must endure several weeks of "boot camp" over the summer before they are admitted to their freshman fall semester. 1 out of 20 don’t make it. They quit. They drop out.

They have the grades. They make it through admissions and still they decide it is too much. It is too hard.

A noted psychiatrist developed a pre-evaluation questionnaire. The single best question in determining the cadet's success?

"When you are given a task do you:"
A) never succeed
B) sometimes succeed
C) always succeed

100% of those that answered C passed.

Fundraiser in West Chatham!

2010-11-08T11:58:00.000-08:00

CHAM – JAM FUNDRAISER
At Goldston United Methodist Church

NOVEMBER 13, 2010

11:00 A.M. – 2:00 P.M.

Come and listen to music, bring your instruments and Jam for awhile, all the kids will be performing, guitars, banjos, fiddles, mandolins, singing, dancing!

Hot Dog Lunch Available – Donation Appreciated

We are hoping that it will be warm enough to have this event outside, but if it is cold we will move into the fellowship hall.

50/50 Drawing

Money raised will go towards the JAM program to purchase instruments, provide scholarships, etc.

For more information or if your group would like to play please contact Tim Tron
(919) 548-8401

Benefits of seller financing to the buyer....

2010-09-24T05:33:00.000-07:00

It is off of the books. No credit check. No verification of income. No required down payment. You can adjust the terms when you need to or walk away. You think this is the kind of thing that got us into trouble with "liar's loans" a few years ago? No! This is the kind of true free market business we need now. Pay as you can when you want to, or walk away and lose it. No ruining your credit for 7 plus years, and the seller is still better than whole because they made interest and can sell it again. Win-Win!

Social Media

2010-09-22T08:03:00.000-07:00

Okay...I think I am starting to get it. When we wake up we check our Facebook, and our Twitter accounts. For Facebook we reply to our friends and add some interesting things to do in the area. For Twitter we are given a few lines to say something clever or forward a website of some interesting facts or news releases. And for Blogging...well obviously I am a little short on content today, but I will be back soon.

2010-09-09T08:54:00.001-07:00

Below are the new changes that take effect in 30 days for FHA loans. Essentially the upfront MIP is decreasing (good!) and the annual or monthly premium is increasing (bad!).

So what does this mean? On a simple example of an FHA transaction on a $180,000 house, the net monthly payment will increase by $40.15.

If you have anyone out there under contract that are considering an FHA loan, they need to be under application with a lender before October 1 to have an FHA case number ordered and receive the older premiums. The closing can occur after October 1.

FHA MIP Changes Now Official
With the passing of H.R. 5981 and the resulting Public Law 111-229, FHA was given authority to change the amount charged to borrowers for both the Up Front and the Annual premiums. These changes as outlined in Mortgagee Letter 2010-28, are effective for all case numbers assigned on or after October 4th, 2010.

Here are the 6 things you need to know about these changes:

1. The Up Front premium is now 1.0 % for all standard FHA programs
2. The Annual premium is now .90% for LTVs GREATER than 95% on 30 year loans
3. The Annual premium is now .85% for LTVs EQUAL to or LESS than 95% on 30 year loans
4. The Annual premium is now .25% for LTVs GREATER than 90% on 15 year loans
5. The Annual premium is now .00% for LTVs EQUAL to or LESS than 90% on 15 year loans
6. These premiums apply to purchases, regular refinances and streamlines

Please note that this new law also gives FHA the authority to raise the Annual premium at will up to 1.5% for LTVs at or below 95% and 1.55% for LTVs more than 95%.

To read this update in full:

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-28ml.pdf

Seller Financing Land

2010-09-08T07:06:00.000-07:00

These are certainly extraordinary times we are living in....gone are the days of double digit appreciation. The real estate bubble has burst, and along with it, for many, the dream of of purchasing investment properties. Especially raw land.

Banks seem unwilling to finance land. I recently had a client with enough cash reserves to purchase a property outright and the bank he has been with for more than 20 years asked him to put down 70%. Really? 70%? Is that even a loan?

My firm has adjusted to the current situation by investigating the benefits of seller (owner) financing. We have successfully closed dozens of seller financing contracts, deals that would not have closed without this option.

Rarely is a seller able to reap a reward better than the terms and interest that can be obtained from seller financing. Truthfully-if the contract price is higher than current market value even 0% interest is a reward. Buyer's too can realize a significant advantage from buying land through this method. Though we normally recommend 10%-20% down, we have negotiated deals for our buyers with 0% down. (this is not the same type of financing and terms as the residential loans that got buyers into the trouble we're in now-these are investment purchases.)

It is important to go over all of the 'what-if's" with buyers and sellers. Make sure everybody knows the benefits and worst case scenarios.

Kids are Kids...

2010-08-31T07:05:00.000-07:00

Come join us for the relief event at Med. Deli in Chapel HIll, Downtown Franklin Street. Proceeds to benefit homeless children-flood victims in Pakistan.

It isn't easy being a Landman.

2010-08-26T12:34:00.000-07:00

I have resorted to selling....gulp...houses. I am even doing some property management. Why? Because I need to keep the lights on. I still have land listed. I still have homes with acreage for sale, but I have also listed some smaller homes and I have taken on some rentals. We do what we can to help our clients.

Americans want smaller homes....

2010-08-26T10:45:00.000-07:00

They cost less to build, they cost less to heat and cool, and they cost less to maintain, and repair. Average home a few years ago was 1600 sq ft. 100 years earlier it was half that and families were twice as large. Are Americans becoming practical? Let's hope so.

News Update: Death of the 'McMansion': Era of Huge Homes Is Over August ...

2010-08-26T10:44:00.000-07:00

First Blog

2010-05-20T13:07:00.000-07:00

Trumpet Sound: Dun-dah-dunnnn! Dun-dunta-duntda-dunn!

My first blog. I feel the need to say something profound.

Endeavor to presevere!