Coastwalk Real Estate Blog

 

Nov. 3, 2016

Tips for Investors

Do you own investment property? Did you know there are new rules for taking deductions on repairs versus improvements?

 

Investment property owners and landlords know that tax deductions are a crucial component of making sure they maximize their returns. In January of 2014 the IRS in the U.S. implemented a somewhat complex distinction as to what constitutes a repair versus improvement.

 

Why does it matter? Well, repairs can be deducted in a single year. So if you have a $1,000 qualifying repair, you can deduct it at one time. If it's an improvement, however, the $1,000 worth of work may need to be depreciated over several years. (In some cases, more than 27 years!)

 

One useful test for understanding if a deduction can be taken in a single year is whether or not it falls outside of the "Betterment, Adaptation, or Restoration" assessment. If the work falls under these categories, they'll need to be depreciated, not deducted in a lump sum.

 

There are some subtle considerations for each case. For a detailed look at what constitutes a betterment, adaptation, or restoration, take a look at this handy article:

 

Repairs vs. Improvements: Complicated New IRS Rules

http://www.nolo.com/legal-encyclopedia/repairs-vs-improvements-how-tax-deductions-differ-landlords.html

 

Granted, this article shouldn’t be taken in lieu of the advice of a trained tax professional, but I hope you find it helpful as it pertains to your investments.

 

Looking for a new investment property? We can be of great assistance when it comes to identifying overlooked opportunities in the market. Get in touch today and let’s discuss what might fit your criteria. Please call me at 910-352-0998, or visit our website at www.MyCoastwalk.com. Thanks a ton for reading!

 

Expect Results:

 

Your Weekly Real Estate Report is provided by Justin Donaton of Coastwalk Real Estate. Any data provided, unless otherwise noted, is courtesy of the Wilmington Association of REALTORS MLS and/or the National Association of REALTORS.

 

Justin does not just "list" properties, he sells them! To get your home SOLD for the highest possible price, call Justin at 910-352-0998. Justin has been the TOP SELLING real estate agent on Pleasure Island since 2007. He has the highest dollar volume of sales, and has had the most number of closings. His business is built on hard work and high-impact marketing. Coastwalk Real Estate is also a TOP SELLING real estate firm in Carolina & Kure Beach. Please visit:  www.CoastwalkRealEstate.com for more info.

Nov. 3, 2016

Wilmington, NC Home owners associations

I hope this note finds you well. This week I wanted to talk about Home Owners Associations. Some love them, some don’t ;).

 

If you’re purchasing a home and are confused about what a Home Owners Association is (or does), you should definitely ask the right questions before you consider buying. Basically, an HOA is an organization which is designed to protect the quality of life and property values for owners within a neighborhood or shared building. How they do so, though, can vary widely. Typically when you purchase a residence subject to an HOA, you’ll be required to pay monthly dues which often contribute to major repairs or maintenance or the upkeep of common/shared resources.

 

But HOAs can also have a significant impact on what you can and can’t do with your own home. The HOA’s rules are detailed in what’s called covenants, conditions and restrictions (CC&Rs). To understand how strict an HOA is (or isn’t) you’ll want to understand the details of its CC&Rs before you consider buying. These might have reasonable restrictions, such as keeping junk cars out of the front lawn, or they might extend all the way to what color you can paint your garage door.

 

HOAs are typically of greater concern to condo buyers than single-family home buyers, but they cannot be overlooked when searching for your next residence. Here are some questions you’ll want to ask yourself and the HOA before you make an offer:

 

1. How comfortable am I sharing decision making about my own home? Yes, you own your property, but if you agree to abide by the CC&Rs of an HOA, you’ll need to be willing to abide by its rules.

 

2. How much are the HOA fees, and how much have they increased over time? Your budget can be seriously impacted not only by current HOA fees, but anticipated increases. Sometimes HOAs can even require residents to chip in for major repairs or upgrades beyond HOA fees.

 

3. What are all of the CC&Rs? Get a copy of the CC&Rs and make sure you understand all of the rules. Furthermore, see if you can sit on on an HOA board meeting or obtain notes from past meetings. This will help you understand the temperament of the HOA as well as the type of past conflicts residents have had with the board.

 

4. Is the home (or unit) you’re considering in compliance with the HOA’s CC&Rs? If you’re considering an offer on a problematic property, understand a real hassle may follow.

 

If you like the idea of a group of neighbors who set community or building standards, a residence with an HOA may be for you. But if not, don’t worry! There are lots of other homes out there. Get in touch today: 910-352-0998.

 

Your Weekly Real Estate Report is provided by Justin Donaton of Coastwalk Real Estate. Any data provided, unless otherwise noted, is courtesy of the Wilmington Association of REALTORS MLS and/or the National Association of REALTORS.

 

Justin does not just "list" properties, he sells them! To get your home SOLD for the highest possible price, call Justin at 910-352-0998. Justin has been the TOP SELLING real estate agent on Pleasure Island since 2007. He has the highest dollar volume of sales, and has had the most number of closings. His business is built on hard work and high-impact marketing. Coastwalk Real Estate is also a TOP SELLING real estate firm in Carolina & Kure Beach. Please visit:  www.CoastwalkRealEstate.com for more info.

July 17, 2016

Carolina Beach Real Estate Team Video

Carolina Beach NC Real Estate

Coastwalk Real Estate is one of the leading firms on Wilmington NC and the area beaches. Learn more about our agents and team by watching this quick video!

 

 

 

July 17, 2016

Wilmington NC Real Estate Tips - First Offer

Wilmington NC Real Estate Tips

I hope you are having a great week! I recently saw this posting on blog, and I found it very insightful (and in many cases accurate). I felt it would be very helpful to share, so I wanted to do so. I did not write this, and I do not know who did, but I hope you enjoy.

“Why Is The First Offer is often the Best Offer? An old rule of thumb in real estate is that your first offer it usually your best offer. In my experience this is true more times than not. Several times I have had clients send stiff counteroffers back to prospective buyers only to never hear from them again. Then after much more time on the market the buyer ends up accepting an offer for significantly less than was initially proposed.

That first offer may not have been what you were hoping for, but it is a wise seller that considers several factors before responding to that first offer. Think about the season, competition, time on market and your price vs. your Realtors recommendation. All of these should be weighed when deciding to accept, reject or counter that first offer.

Your first instinct may be to hold out for a better offer, especially if your home has not been on the market that long or if there is a lot of showing activity. Well that activity declines after the first couple weeks, after that many of the buyers currently looking will have already seen your home.

 Buyers rush out to see newly listed homes. If it is the best they have seen, they may make an offer. They have been looking for a while and understand the market. They are ready to move on the right home. That offer they make is based off of the other properties they have seen during their search and if you're the seller, they have seen more of the market than you.

 After those first few weeks the only showings you will see are from new buyers on the market. They are typically at the beginning of the search and usually are less motivated to make a quick offer. They also don't have the market familiarity built up and will want to err on the side of caution. This will cause offers from them to be lower than a buyer more educated in the market.

The longer your home is on the market the more shop-worn it becomes and the perceived value erodes. Realtors and buyers become less interested in seeing or showing your property. Some will wonder what is wrong with your property that it has not sold. Even if they find nothing wrong, they will be skeptical and offer less so they don't lose money if they need to sell.

There are also the costs associated with holding your property longer. Every month that goes by three may be a mortgage payment, insurance payment, taxes and cost of utilities. All these costs add up over time will quickly erode a few thousand dollars difference in the price received.

What this adds up to is you are never in a better position to receive the best price than when your home is fresh on the market. Even if that offer is less than you were hoping for you don't want to be kicking yourself in a few months’ time for not just taking it. You may just wish you had. That rule of thumb is it’s more true than not. Your first offer is usually your best offer.”

If you would like to discuss the possible sale of your home, please call me today. My cell is 910-352-0998. I am here to help, and look forward to doing so!

Expect Results:

Your Real Estate Market Report is provided by Justin Donaton of Coastwalk Real Estate. Any data provided, unless otherwise noted, is courtesy of the Wilmington Association of REALTORS MLS and/or the National Association of REALTORS.

 

Justin does not just "list" properties, he sells them! To get your home SOLD for the highest possible price, call Justin at 910-352-0998. Justin has SOLD the most real estate on Pleasure Island since 2007. He has the highest dollar volume of sales, and has had the most number of closings. His business is built on hard work and high-impact marketing. Coastwalk Real Estate has the #1 Sales office on Pleasure Island too. Please visit:  www.CoastwalkRealEstate.com for more info.

July 17, 2016

Wilmington NC Home Decorating Tips

Wilmington NC Home Decorating Tips

Summer is here, and there is certainly a buzz around the beach! Some new shops, restaurants and lots of summer time events to look forward to in Carolina & Kure Beach!

Some summer hours are too beautiful to be ignored. Whether those dewy dawns before the sun is at full strength, or the long evening hours when the heat bleeds off the day, there are times when being outdoors is a tremendous pleasure.

But this doesn’t mean you always want to spread out a blanket or a lawn chair. In fact, creating a “transitional space” which blends outdoor living with indoor amenities is a great way to maximize the season. The California room is just one of those spaces.

California rooms are typically situated in the rear of a home, sometimes connected to the home by sliding glass doors. The California room is usually a covered space with flowing outdoor fabrics and durable, luxurious “indoor” style furniture such as chaise lounges, couches, ottomans, and even coffee and accent tables. Walls give way to curtains. It often includes a dining space or even a protected (or moveable) entertainment center. Bluetooth music systems with outdoor speakers are also a nice touch.

If you see yourself spending a lot of time outdoors, you might consider supplementing your California room with an outdoor kitchen. A good grill, an outdoor sink in a stone or other durable counter surface, and some built-in refrigeration for drinks is a great way to upgrade your California room.

The California room is one of the hottest trends in home design right now. If you search Google images for “California room,” you’ll find hundreds of design examples from down-home country living to lavish, Mediterranean-inspired decor. Pinterest and Houzz are also great places to research California room styles.

The beauty of the California room is that it can be scaled to meet your budget. Even a modest transitional space with some cover and cozy furniture can make a small home feel larger and improve your quality of life.  

What does your dream California room look like? What are your must-haves and your nice-to-haves? How would you like to use your California room?

If you’re looking for a new home with the ideal space for a California room, I’m happy to help you with your search. Let’s talk soon: Please call me at 910-352-0998. Thanks a ton and have a terrific week! 

July 17, 2016

Wilmington NC Home Sales Negotiating Tips

Wilmington NC Home Sales

I hope you are having a great week! This week I wanted to share some “strategy” with you…

In my mind, a successful negotiation is not where one side has pulverized the other. You don't "win" a negotiation; you get the best possible outcome for your clients while doing the least harm. No one should leave a negotiation angry. After all, you never know when you might have to negotiate with the same people again.  When it comes to negotiating on behalf of my clients, I keep the following in mind:

Set the stage: I like a location that's quiet, neutral, pleasant, and away from distractions and confusion.  It’s best if everyone turns off their devices, and refrains from calls or texts during negotiations.

 Be prepared: I never enter without my homework. I verify any outstanding facts before the negotiation begins (Later fact-finding can cause a negotiation to bog down!).

 Present a united front: I represent clients and have been hired to act on their wishes. At times I may not agree with their position, but I never share that with the other side. If I feel a client’s position is less than optimal, I only discuss it with them in private.

 Leave attitudes at the door: It’s very simple... treat everyone in the negotiation with respect, regardless of personal opinions. If anyone disagrees, disagree with the idea, not the person.

 Watch non-verbal cues and body language: (Sorry, but I can’t reveal all of my secrets here... suffice it to say I take it all in!)

 Hold something in reserve: I discuss concessions with my clients before hand and only offer these concessions when we absolutely need to concede something.

 I don't harp about points that don't matter to my clients: Negotiations should never choke over a minor point.  I like to get agreement on major points such as price and terms and put lesser items aside to return to later.

 Never volunteer too much information: Knowledge is power in a negotiation. Telling the other side any information, however insignificant seeming, could weaken my clients’ position. On the other hand, I learn as much about the other side as I can.

 When need someone on your side for real estate negotiations, please contact me at 910-352-0998. Thanks a ton and have a terrific 4th of July!

 Expect Results:

 

Your Real Estate Market Report is provided by Justin Donaton of Coastwalk Real Estate. Any data provided, unless otherwise noted, is courtesy of the Wilmington Association of REALTORS MLS and/or the National Association of REALTORS.

 

Justin does not just "list" properties, he sells them! To get your home SOLD for the highest possible price, call Justin at 910-352-0998. Justin has SOLD the most real estate on Pleasure Island  since 2007. He has the highest dollar volume of sales, and has had the most number of closings. His business is built on hard work and high-impact marketing. Coastwalk Real Estate has the #1 Sales office on Pleasure Island too. Please visit:  www.CoastwalkRealEstate.com for more info.

July 17, 2016

Home Sales Jump 15 Percent In June

Home Sales Jump 15 Percent In June

The summer continues to show gains for Wilmington-area home sales.  The number of homes sold in New Hanover, Pender and northern Brunswick counties in June increased by 15 percent over a year ago, the Wilmington Regional Association of Realtors reported Monday.
 
That follows a 21 percent jump in year-over-year sales in May, according to updated numbers.  With 934 units sold in June, WRAR’s statistics showed, last month was the strongest June for the area in more than a decade when about 1,000 homes sold in June 2005.
 
The first half of 2016 marks a continued rebound in the local housing market. “Looking at historical statistics from Jan-Jun 2015 vs Jan-Jun 2016, the Wilmington real estate market can only be considered as very robust. We are seeing an increase of almost 19% in total units sold,” WRAR President Don Harris said in a news release.
 
Total sales dollars and the averages sales price also are up so far this year over last, while at the same time the average number of days a house is staying on the market has dropped.  “It is a Seller’s Market in home prices $300k and below, with many sellers receiving multiple offers and higher than asking price,” Harris said in the release.

 One reason, he pointed out, was low mortgage rates.  Rates fell again Monday, with the average on 30-year fixed mortgages at 3.44 percent.
 

 

Jan-June 2015

Jan-June 2016

% Change

Total Units Sold

3,551

4,215

  18.7 %

Avg. Sales Price

$246,041

$246,458

 .17 %

Median Sales Price

$197,775

$203,917

   3.1 %

Days on Market

119

103

-13.1 %

       
May 22, 2016

Home Renovation Tips

Home Renovation Tips

Home renovation projects are a great way to fall in love again with a home you own, or make upgrades buyers will pay top dollar for when the time comes to sell. Redoing a kitchen or bathroom can make a huge difference in how much you enjoy a space. But how do you know what you really want? Are you aware of how much is out there in terms of modern home design?

Searching for inspiration online is a good place to start. While you can haphazardly click from blog to blog, there are some easy-to-use tools to help introduce you to design options and help you organize your project.

First and foremost, if you’re not on pinterest.com, go sign up for a free account. (You can even use your Facebook login to create an account in under a minute.) Pinterest isn’t specifically about home design, but it is the best online scrapbook out there. With Pinterest, you can “pin” images you like and organize them into collections. This is especially handy if you want to separate bathroom elements, living room designs, or even individual elements such as “lighting” or “color schemes.” You can also search on Pinterest and browse other users’ public collections.

Another spectacular resource focused on home design is houzz.com. House bills itself as “a platform for home remodeling and design, bringing homeowners and home professionals together in a uniquely visual community.” Houzz, much like Pinterest, allows you to create idea books which you can then share and collaborate on with others. With each photo you save you can make notes, highlighting what you like or don’t like about a particular image. Houzz also goes beyond design inspiration to connect you with professionals who can actually help turn your dream project into a reality. As you’re meeting with architects of design/build firms, having a Houzz account can be very helpful for guiding in-person conversations about your tastes and preferences.

When you’re in the dreaming phase of a project, it can be fun to allow yourself free reign to select anything and everything your might want in a renovation project. Projects, however, do come down to compromises. Sometimes the compromises are related to building conditions and existing systems, while other times the restrictions are simply budgetary. Keep this in mind as you “go wild” creating inspiration books online. Don’t forget this as you go along… it’ll make the project easier and more satisfying along the way.

Of course you might also decide that renovation isn’t the right move. Sometimes moving is the right move. If you ultimately decide to relocate, I’d be happy to help you find a home which has exactly what you’re looking for (or can be upgraded to meet your needs.) Get in touch! Please call me at 910-352-0998

 

May 22, 2016

Buying a House - Tips when Under Contract

Buying a house in Wilmington, NC

The spring market has been unbelievable for our clients! We are selling lots of homes. Something is in the air that’s putting everyone in a good mood. We have happy Sellers and Buyers! Then again, we’re at the beach, so that helps!

This week we wanted to share some advice with those who recently placed a property Under Contract. It’s a really exciting time, but there are a few simple, yet important items to keep in mind! Here is the letter we share:

Congratulations! Now that you are under contract you are one step closer to the purchase of this home. During this time it is my top priority to make sure any questions you may have about the home, the neighborhood, financing, or the process in general are answered. If questions come up, please email or call me at any time.

 It also is important for you to know that I will be following along with all of the necessary tasks between now and closing. If you have not heard from me for a day or two please don't be alarmed. Typically, no news is good news.

Here are a few more things to keep in mind:

Protect your credit: If you are getting financing please be sure to talk to your lender before making any financial decisions that may change your credit or your available income. This does not mean you cannot buy groceries, but it does mean you should consult with your lender before your apply for any additional credit, such as an auto loan, credit card, mortgage, or any other major debt. You also need to be diligent in paying all of your current debts on time. Most lenders will check your credit just days before closing.

Provide documents: Your lender (if you are financing this home) may request various documents that will be required for them to underwrite and fund this loan. It's likely that you have already provided many of these documents, but there is a good chance the lender will need others. It is very important you get these documents to your lender as quickly as you can. One of the most common delays in closing is a delay with the loan.

Take advice carefully: It is very common for people to give you advice on the ins and outs of a real estate transaction. This advice may be accurate and useful, or it may be related to an unusual situation or standard of practice in another area. If you have concerns about anything, please contact me directly and I will be happy to look into the matter.

 Lastly, if you are happy with the care I have taken to help you along in your purchase, I ask that you please keep me in mind if you meet someone who needs a real estate professional.If you like this approach, then please give us a shot. We would love to work with you and your family! Please call 910-458-9119.

Expect Results:

Your Real Estate Market Report is provided by Justin Donaton of Coastwalk Real Estate. Any data provided, unless otherwise noted, is courtesy of the Wilmington Association of REALTORS MLS and/or the National Association of REALTORS.

Justin does not just "list" properties, he sells them! To get your home SOLD for the highest possible price, call Justin at 910-352-0998. Justin has SOLD the most real estate on Pleasure Island  since 2007. He has the highest dollar volume of sales, and has had the most number of closings. His business is built on hard work and high-impact marketing. Coastwalk Real Estate has the #1 Sales office on Pleasure Island too. Please visit:  www.CoastwalkRealEstate.com for more info.

 

April 17, 2016

Wilmington Economic Report

As Housing Numbers Continue To Rise, Groups Present Economic Report

By Cece Nunn, posted Apr 11, 2016

Recent numbers for the sale of single-family homes and new houses under construction remain strong locally, according to the first Cape Fear Area Housing Economic & Climate Report presented Monday.

But several factors could affect those statistics in the future, including housing inventory, the availability of lots for new homes and where new homes are located.

“What I would say today to y’all and I think you would probably agree with is: our market is back. Our real estate market is back; it’s very strong,” said Cameron Moore, executive officer of the Wilmington-Cape Fear Home Builders Association. “It has certainly got some challenges ahead.”

Moore spoke Monday morning at the presentation of the report, a collaborative effort between the homebuilders association and the Wilmington Regional Association of Realtors, in a session held at The Terraces at Sir Tyler. Woody Hall, professor emeritus of economics for the University of North Carolina Wilmington, and national experts contributed to the report’s production.

“Our intent, I believe is to see if the information we provide you is of value and if it is of value, are there any changes you might suggest of data we look at and collect and analyze,” Hall told a group of those who work in the industry who attended Monday's presentation.

In the area of single-family home sales, the region has seen continued growth since 2009, a trend reflected in March's housing statistics, which were also released Monday.

“If you look at the level in 2015 of 7,404 [total units sold]  and compare it to the level in 2009 of about 4,360, you’ll see an increase of about 70 percent between 2009 and 2015,” Hall pointed out.

In March, the number of units sold in New Hanover, Pender and northern Brunswick counties increased from 583 in the same period last year to 712, a rise of about 22 percent. For the first quarter, total sales increased more than 15 percent and total dollars more than 17 percent over March 2015, WRAR statistics showed.

Thirty-year fixed mortgage rates are still below 4 percent, making the second quarter of 2016 “an extremely attractive time to purchase a home,” said Don Harris, WRAR president, referring to the association's latest figures.

Looking at last year's market statistics, Hall said assuming a 4 percent, 30-year mortgage interest rate, even with a down payment of only 5 percent, it would appear that those who make the median income for the Wilmington Metropolitan Statistical Area of $48,700 could afford a home of nearly $240,000. That was also assuming their utility costs aren’t more than $80 a month and using the widely accepted definition of housing being affordable if it doesn't cost more than 30 percent of a buyer's income.

But Hall said an important consideration that could be incorporated into next year’s report is how many homes are available for that price.

Dave Spetrino, president and CEO of Plantation Building Corp., said a bigger issue to include in a housing affordability discussion, though, is location.

“There’s plenty of houses for sale under $240, but are they where people want to live?” he asked.

Harris said, “The other ‘x’ factor in this is our inventory in affordable housing or housing affordability below the $250 level is slim, but when you factor in the potentiality of HOA dues, of any flood insurance policies, wind and hail – all those variables impact the ability of the buyer to afford a house in those ratios.”

Those who attended Monday’s presentation also asked that demographics be a consideration in future reports.

“Our data shows that 63 percent of our buyers are going to be 55-plus, active-adult,” said Livian Jones, referring to RiverLights, a community under construction on River Road in Wilmington.

At the same time, Jones, vice president of operations for RiverLights developer Newland Communities, said the RiverLights team is working on a school component for the community. Plans for RiverLights, a 1,400-acre master planned community, include an age-qualified 55-plus neighborhood as well as a conventional neighborhood.

“We have a 15-acre school site that we’re donating right now. We’re trying to figure out what that’s going to be with the school system, the county and the city,” Jones said Monday. “We’re going back and forth on that. If not, we also might be creating a private school option.”

Another factor expected to become more of a challenge to the construction industry is the cost of lots, labor and materials, which Jones said can be more expensive in the Wilmington area than in larger metropolitan communities.

“We’re already having lots of labor problems as we speak ... Lot prices are going up, and labor prices are going up weekly,” said Heath Clark, general manager of Bill Clark Homes. “In order to get your house built, you’re going to have to pay this because there’s no more labor willing to work at that rate.”

Toward the end of Monday's presentation, Spetrino said what he wants most out of the report as it becomes an annual fixture is to know “when I gotta get out. I want to know when I should be scared. ... From there, though, what I really want to know is where the opportunities are … where can I take this information and add more employees, grow my base, bring more people to our community and encourage that growth.”