By James A. Crumbaugh, III

Note: I wrote this article at the very beginning of 2008. This morning when I walked out to the driveway to retrieve my newspaper, the headlines read, “Real Estate Market Is Turning Around.” The perfect storm is in full fury now. Watch the real estate market continue to improve.

RISMEDIA, Nov. 24, 2008-”The Perfect Storm.” What could I possibly mean when I say that the real estate industry is about to enter the perfect storm?

After 35-plus years in the real estate industry, I’ve watched good and bad markets come and go. There are always mitigating factors that cause these markets, both good and bad, to make an abrupt change. Those that have spent a couple of decades in the real estate industry will tell you this: when a market changes from bad to good or the opposite, it almost always happens very quickly, particularly when a market goes from good to bad.

I think everyone reading this article will agree - that is what happened this time as well, when the real estate market went south on us.

So what do I mean when I say that the real estate industry is about to enter the perfect storm? Let’s look at several factors. The first factor is (at the time the original article was published) a new national election was about to take place with a change of leadership.

Markets tend to pause when we are in this phase, waiting to sense what the change will mean. Next, with the possibility of a recession facing the United States, with several states already experiencing a recession, the stock market is going to continue to retreat.

When the stock market starts to retreat as it is now, investors almost always start to look at real estate, because it’s a tangible item-it’s concrete, something they can fully grasp.

Then, you have to take a look at where the real estate industry is at this moment. With the exception of Texas, we have in most states a severe real Estate issue facing this country. We have declining prices in most areas as well as a huge over-supply of inventory. Yet, we also have some of the most attractive mortgage interest rates available in quite a while, and contrary to popular belief, there is still plenty of mortgage money available for the qualified borrower.

Let’s now take all these issues and throw them into a paper bag, give that paper bag a good shaking and then dump it out. What do you have?

It is the perfect storm for the real estate market. Real estate prices are at a very attractive level. In fact in some areas, due to an over-correction, the properties are undervalued.

Mortgage interest rates are very low and very attractive and we have a huge over-supply of resale inventory. You add all of this together, and for the real estate investor and the natural real estate buyers, the ones who what to move up or move down or move to a new area or whatever the reason is, you have one of the very best times in years to buy property.

The year of 2008 is going to go down in the history books as the year that the current real estate market makes a u-turn and starts to stabilize and appreciate again. Everyone keeps saying now is the time to buy. Let me tell you, it’s not only the time to buy, it’s one the very best times to buy we will see for years to come.

 If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.

Experience the Gold Standard

RISMEDIA, November 21, 2008-(MCT)-With no end to the foreclosure epidemic in sight, mortgage lenders have begun to do something they previously resisted: rewriting the terms of mortgage loans.

The about-face is a bow to political pressure and reality: The number of foreclosed properties flooding the market is dragging down home values across the country, a process that could lead to even more home foreclosures.

Two new tenets form the basis of the recent, bank-announced homeowner relief programs: streamlining and outreach. Bank of America, Citigroup Inc. and J.P. Morgan Chase say they will contact mortgage holders who are in or heading toward default, and offer to rework their loans with affordable monthly payments. Many even spell out a preapproved workout in that first letter.

The new approach is borrowed from an FDIC program at the failed IndyMac bank, which FDIC Chairman Sheila Bair reportedly plans to propose going nationwide as part of the federal government’s $700 billion markets bailout plan.

At IndyMac, at-risk borrowers got letters with proposals to cut their payments to no more than 38 percent of their incomes, with modifications such as reduced interest rates or longer loan terms. All they had to do was provide verification of their incomes.

But some are skeptical that these new programs will be effective. Qualification guidelines vary, and the process is likely to be time-consuming, said Guy Cecala, publisher of Inside Mortgage Finance. Most of the troubled loans were bundled and sold as mortgage-backed securities, so modifications need approval from the investors holding them, Cecala said. Banks can move quickly only on the mortgages they own. Even fast-track workouts take time, partly because experience has shown low contact rates with the homeowners, he said.

To Julie Gugin, director of the nonprofit Minnesota Home Ownership Center, the question is how the banks will handle the new programs. The tools in them are the same ones that banks have had all along and were reluctant to use, she said.

Even with the new workouts, Gugin recommended that homeowners still seek a second opinion, to find out if it’s truly affordable and their best option. A list of HUD-approved counseling agencies is available at www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.

Distributed by McClatchy-Tribune Information Services

If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.

Experience the Gold Standard

By Melissa Birdsong

RISMEDIA, Nov. 17, 2008-As the weather turns cooler, creating a warm and inviting kitchen can make a big difference in a home’s overall appeal. With a few well-chosen finish updates, you can shift tone and mood and purchase interest.

Fifty years ago, the American kitchen was pretty predictable-a sink, a refrigerator and a range, and for a lucky few, a dishwasher-connected by simple cabinets and countertop. As long as basic conveniences and functionality were covered, there was little need-or demand-for more. The house I grew up in was designed by my dad, who integrated new ideas and features into our compact kitchen-a “breakfast bar” for casual dining and a stainless steel cook top and wall oven. The lively yellow, brown and knotty pine scheme was warm and welcoming and it was our favorite hang-out space for cooking and conversation.

Today, the kitchen has migrated to one of the most experiential rooms in the house, where gourmet cooking rides along with bill paying, crafting and homework. And as the social hub for family and friends, it’s more important than ever to buyers and sellers alike that this key room be fresh and inviting. If the kitchen is outdated and tired, the whole house can feel that way, so a few simple updates can make all the difference in getting the green light on the buying decision.

Fit and finish in a room convey quality-or lack of-so it’s important to look around and pay attention to details. Color and light are the easiest, most cost-efficient elements to add warmth to the kitchen, and you need go no further than the vegetable bin or spice cabinet for inspiration. A scheme of natural greens, yellows, mustards and russets washed with dimmable overhead and under-cabinet lighting can add energy as well as create a level of calm-a kitchen for any mood. If the existing cabinets are sturdy but the finish is sending out a distress signal, a well-executed paint job can turn it around. Mismatched appliances and worn flooring are other leading visual cues, so if the budget permits, replace them.

Last but not least, add sparkle and a new point of view to the kitchen by replacing the metals palette-cabinet hardware, faucet, lighting and outlet covers. A few thoughtfully chosen, simple finish updates can seal the deal.

If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.

Home-selling Strategies by Chris Kaucnik

RISMEDIA, Nov. 3, 2008-With all the options now for home buyers, many will weigh heavily whether to purchase a new home or an existing one. Often, discussions erupt that are more emotional than rational and you can be called upon for decisive wisdom. Keeping clarity in this situation means focusing your clients on their budget and lifestyle. Consider the following:

Irresistible incentives can be enticing. Many home builders are offering them, and this can make it difficult to consider purchasing an existing home. But, while many buyers will be ready for a brand-new home, incentives aren’t the only considerations attached to this important purchase. There can be more costs and stresses tied to acquiring a new home than a gently used one, and we’ve outlined a few below:

-A sudden increase in driving and pumping gas is unsettling. Generally, existing homes are closer to town, near jobs, stores, public transportation, services, schools and more. New subdivisions tend to be farther out of town, sometimes with very few of these necessities nearby. This can mean longer commutes and trips on weekends.

-Call the decorator because we’re too busy. Soak in that new home smell and feel. It’s great. But wait a minute-the windows are bare, and there’s no landscaping, wallpaper or any decorating, and the holidays and folks are coming. While this can be the fun part of a new home for many, it can turn expensive and stressful, especially for working parents with children. Buyers can often find an existing home they can live in while accomplishing the decorating changes over time without piling on more debt. And many sellers have already neutralized and made the necessary repairs in order to sell more quickly.

-The real monthly costs and taxes are what? Usually, existing homes cost less per square foot due to escalating land costs in new subdivisions. New homes are often built in outlying areas where the municipalities need to charge higher taxes as there are fewer families to pay for basic services. Additionally, newer homes are often subject to assessment fees for amenities the family may or may not use, which must be considered now and for potential resale.

-We’re feeling stressed with all this mess. New homes are often in areas where building is still occurring. Owners must be prepared for the daily noise and dust of construction crews, trucks, neighbors moving in, and more.

If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.

By J. Lennox Scott

RISMEDIA, Nov. 12, 2008-With the volatility of the stock market of late, there’s understandably some uncertainty about how all of this will impact the real estate market. I’ve had the opportunity to listen to several economists recently, including Lawrence Yun from the National Association of Realtors®, and believe it or not, I feel good about what I’m hearing.

Here’s why:

• The bottom line is that the situation is manageable and things will improve.
• The most recent decline is due to the psychological impact of the stock market.
• People are still buying and selling homes, just not at the same levels.
• The recent passage of the bailout bill is a step in the right direction, but it will take time to see the results work their way into the economy.
• The volatility of the financial markets is causing many homebuyers to pause, but the truth of the matter is that market conditions are ideal for first time buyers, move up buyers, and investors.
• Recent actions by the Federal government are starting to thaw the credit freeze.
• We’re starting to see some stabilization in the more affordable markets and markets that are close to major job centers.
• There’s currently a great opportunity to both buy and sell at current market price.
• Interest rates are at historic lows for conforming and FHA loans and there are a variety of great mortgage options available, despite perceptions to the contrary.
• Consumer confidence will take time to rebuild, but in the meantime, it’s important to understand that advantageous market conditions currently exist for those who are motivated to buy.
• With the end of election season, consumers should be less distracted by political campaigning.
Despite the uncertainty of the financial markets, homeownership continues to be one of the most solid investments an individual or family can make.

J. Lennox Scott is Chairman and CEO of John L. Scott Real Estate.

If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.

Commentary by Rhonda Duffy

RISMEDIA, Nov. 1, 2008-Staging is all the rage across America right now. Whether you are selling a home or simply re-decorating, staging has simple principles that most people fail to grasp.

Most people cannot stage their own home. Their sentimental attraction to too many pieces will not allow them to minimize the space. A cute picture of their family together combined with a vase that they got at their wedding, though priceless to them, simply clutters the appearance of the room.

Staging is about clearing a room to show floor space. This means that the furniture needs to be off the wall. When was the last time that you visited a home and found that the couches were off the wall and pictures were on the wall? This is a huge part of staging.

True, staging does not care about groupings of like items. Staging incorporates sizes; the high, medium and low aspect of decorating and uses three or five items in each grouping.

Staging does not add a convenience table next to a chair; it minimizes the amount of furniture in a room, not adds. It is more important that the spacing be correct more than thinking of the living function of the room like having a table to put a drinking glass or magazine on.

Staging decorates every table for its function as if you are having a party now. Outdoor tables are set for dinner, game tables have games in action and tea sets are ready to go.

Fresh flowers are preferred instead of fake flowers, white towels are used instead of colored by preference, beds have way too many pillows and music is soft or jazzy instead of rock music. Also keep the TVs off.

Many times a professional stager will be able to use your furnishings. There is a misnomer that says that stagers bring things to your home and it costs a fortune. This is simply not true.

Staging has played a huge role in getting homes sold quickly and for more money. The goal of staging is to make your home appeal to the broadest range of buyers by eliminating any offensive items or groupings of decorations that would detract a buyer’s attention. You want the buyer instead to be focused on the house and its elements that have attracted them to it.

Staging is a must for serious sellers. Don’t be fooled that you can do it yourself. Hire a professional.

If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.