Marianne Howell Wright, Chapel Hill Real Estate

Where are the basements in new homes in Chapel Hill and the Triangle Area of NC?

Marianne Howell Wright Certified Eco Broker,Triangle Area Real Estate

That’s a question I get a lot from out of state clients so I thought I’d show you a basement under construction and talk about why we don’t have many in this part of NC.

The first reason basement building is limited is our heavy clay soil. Water won’t drain through the soil away from the house and an underground basement would be wet.

Another reason is foundations should be dug 12” inches below the frost line which can be 5 ft. in the north but only 18 inches in NC. It’s just not as cost effective to build a basement here. A builder will add $30,000 to $80,000 to the cost of a home (depending on the size of the house) for an unfinished basement. Finishing will add another $50-$60 a square foot. A buyer has to really want a basement to pay that much more for a home. We do have basements though. Sloped lots are often called basement lots and the slope allows for the water to be drained away from the house. There is also a system of gravel and drains running around the house to carry water away. If you See a newer home with a totally underground basement it might be a good idea to have an engineer check the drainage before you buy.

Poured concrete foundations are more common these days than masonry block foundations. I asked Carlos to explain why.

The house shown in the video is for sale in a small 10 home neighborhood within walking distance of Chapel Hill Schools. It's almost 5000 sq. ft. with a basement and is priced at $675,000.

Hi!

It's pretty easy to find all houses for sale on the Internet but not so easy to find out about the neighborhoods. I have had clients come to town in love with a home they saw on line and then be crushed because the neighborhood is not what they want at all. I hope my neighborhood videos help you see what our neighborhoods are really like.

Today we are going to take a tour of Winmore, a Carrboro neighborhood with a Chapel Hill address with my client Sharon. Sharon, her husband and son have lived in France for the past 12 years .When they decided to move back to the US they chose Chapel Hill out of anywhere in the country because of the good schools and wonderful college town quality of life.

Winmore is a all green built sustainable living neighborhood. When completed there will be 86 town homes, 96 single family homes and 20 live/work units with commercial space on the first floor and residential living on the 2nd and 3rd floors. The neighborhood features walking trails, a community garden, pool, playground an even it’s own apple orchard.

Sharon really likes the idea of living in a neighborhood that will help protect our environment and conserve energy but is also stylish and interesting. After we tour Winmore we’ll stop by the Carolina Cafe, have some lunch and talk over our day because real estate is hungry work!

See my other Chapel Hill neighborhood and area videos on my video blog RealEstateisHungryWork.com

This post is written as a submission to the ActiveRain Kodak Video Challenge contest. I have the chance to win the KODAK PLAYTOUCH Pocket Video Camera, great for realtors looking to create wide angle home tours and real estate marketing videos

Builder Deposits in a New Home Neighborhood

The first step in buying a resale or building is the same,  meet with a lender and get pre-approved. The pre-approval is only as good as the information you provide your lender. It pays to be very through at this stage because you don't want expensive surprises later. Your lender will check your credit and review your income and debts to determine the loan amount you will be approved for and the loan options. You will discuss what is a comfortable payment for you, what cash you will need for a down payment, and closing costs.

When you are planning on building or buying a new home from a builder there aren't set rules about deposits, upgrades and timing of payments. There is also some risk involved because your new home doesn't exist yet and that can be both good and bad.

The amount and timing of deposits can depend on the neighborhood and builder. In the Chapel Hill area you will find new home neighborhoods with builders who sell just a few custom homes a year to large national and regional builders. The plans and changes provided and allowed by the builders can vary from only cosmetic upgrades to structural changes. The builders contract (totally biased toward them of course!)will detail the amount and timing of deposits and other payments.

A small custom builder (up to about 20 houses a year) almost always  has the largest deposit requirement, often 5%-10% due at contract signing. It's pretty much always non refundable so you will need to make sure you can get financing before you sign the contract.  Builders feel justified with this large deposit because they will have to purchase the lot from the developer,get a construction loan, and build to your specifications.

After the contract is signed you will usually have to pay for half to all changes and upgrades in cash at the time of the change. You will have a significant amount of cash tied up during the building process so if you have a home to sell you should go ahead and do that before you contract to build even if you have to rent during construction. Builders  won't do contingencies except in special cases when they were planning on building the home as a spec anyway. I would not recommend signing a builder contract and then putting your house on the market expecting a sale, even if you have the cash.

Sometimes a small builder doesn't have the capital to purchase the lot and get a construction loan. The builder may have an arrangement with the developer to purchase lots as they get a contract. The builder may have you get the construction loan and the lot will be purchased by you with the first construction draw. Lenders usually will lend you 75-80% of the appraised value for a construction loan and you will be responsible for construction loan interest (interest only on the amount drawn) and any changes above the amount of the loan. The bank will send a representative to check the progress of the home and releases construction funds to the builder depending on the % of completion according to a preset schedule. Your construction loan can be converted to permanent financing when the home is completed although you won't be able to lock in your rate until 60 days or so before completion. You shouldn't have to give a builder deposit if you are getting the construction loan.

The production builders in our area really vary with the amount of deposits required. They range from a set amount of $5000-$10,000 or a percentage of around 3%-5%. Upgrades are handled differently too, with some builders requiring only structural changes to be paid in cash to all upgrades to be paid in cash at the time of selection or change.
If you are getting a low down payment loan, a USDA or doctor loan for example, the depost amount may be negotiable and we just have to deal with that on an individual basis.

If a builder has a home under construction the deposits usually are determined by the construction stage and the amount of customizing necessary. If the house is basically finished and you are pre-approved 1% will usually be enough deposit.  You may also be able to negotiate the price but more commonly upgrades depending on what other inventory the builder has.

The deposits are set out in the builder contract. The builder contract is is to protect the builder not the buyer. In my experience the builders won't make changes at all to their contract but it is a good idea to have your attorney go over the contract with you so you understand what you are signing. You should also check the builder references and suppliers because there is risk involved for your deposit money and sometimes the clues that a builder is in financial trouble are not obvious.
Buying an existing home is the easiest way to go and you may be able to negotiate the price but building your home will give you the home you really want and can be a fun and rewarding process if you are prepared.

Southern Village was developed in the early 90's and was a new concept for Chapel Hill. The plan was to build a "new old neighborhood" reminiscent of the way people lived in the early part of the 20th century. There would be a Main Street (now Market Street) with shops restaurants and small businesses. Homes would have front porches and alleys for the garages in back. The neighborhood would be quite dense with approximately 300 acres with 90 acres of that green space. There would be 1150 housing units consisting of single family homes, condos, town homes and apartments. This type of neo traditional neighborhood had been done successful in several parts of the US including Kentlands in Gathersburg Md.
Before Southern Village was developed Chapel Hillians loved their large lots and trees.  I along with others wondered if it would ever get off the ground. My sister lived in Kentlands so I was familiar with the concept but Gaithersburg Md. was very different from Chapel Hill. It was also FLAT! The Southern Village property was very hilly and I just couldn't imagine how they would get all of those houses on small lots with all of that topography.
As it turns out, they did and the neighborhood has been a great success. Clients that I have sold homes to in Southern Village love it. The walk-ability of the neighborhood with the trails, sidewalks and the wonderful commercial area make it a fun and friendly place to live. Here is a link to a detailed history of Southern Village.
The commercial area includes several restaurants, many shops and businesses, a movie theatre, church, day care center, elementary school, and common green where there is always something going on.
Here are some photos and another blog post I did of Southern Village during the Walk for Paws benefit.

What County is Chapel Hill, NC in?

You would think this question should have a simple answer! The short answer is that the Town of Chapel Hill is in Orange County, NC. The long answer goes like this...

There are areas surrounding the Town of Chapel Hill ,with a Chapel Hill address, in both Chatham, Durham and Orange Counties.

There are also areas with a Chapel Hill address that are in the Carrboro municipality. It is really a matter of postal areas determining the address.

If the Chapel Hill address is in Chatham County the homes will have low Chatham County Taxes and Chatham County Schools.

If the Chapel Hill address is in Durham County the homes will have Durham County taxes and Durham County Schools.

If the Chapel Hill address is in Orange County the homes will have Orange County taxes and have Orange County Schools or, if applicable, combined taxes for the Town of Chapel Hill (if within town limits) and the Chapel Hill/Carrboro School District.

If the home has a Chapel Hill address and is in the Carrboro municipality it will be in Orange County. The home will be in the Chapel Hill/Carrboro School district and will have Carrboro taxes plus the Chapel Hill school tax.

When I set up searches for clients I find out what is important to them about Chapel Hill. Is it the Chapel Hill/Carrboro School District?
If that’s it I’ll set up the search by high school. Chapel Hill High, East Chapel Hill High and Carrboro High. That will give all of the elementary and middle schools in the results.

If it’s a Chapel Hill address and low taxes that are important I’ll set up the search for the North Chatham areas 305C and 305D and specify the city as Chapel Hill.

If proximity to Chapel Hill is the criteria and price is especially an issue I’ll set up the search for Chapel Hill and Durham County.

Compare NC Schools Here
I may set up many different variations of the searches depending upon the client and where they are in their homefinding timeline. Please let me know if I can help you with your home search!