Kay Baker

The Economy and Bailouts

The last couple of months have had our world spinning and we have learned that while one industry hurts it affects other industries. Everyone wants a bailout these days, while it may take a while for all these different plans to work, it seems to be moving the markets in the right direction. With the Fed announcing just before Thanksgiving that it would purchase up to $500 billion in mortgage-backed securities, we saw mortgage rates drop from 6.06% to 5.5%.

Wilmington NC Market Conditions

We continue to be down in the number of homes sold in Wilmington, NC but our rolling 12 month average sales price which is now just behind 2007 by $19,402, this represents a minus 7.1%. In units we are showing a 39.8% decline. Most agents will agree that it is a buyer's market when the listing inventory exceeds 6 months; we are there at 20+ month supply of homes. We have a few plus factors - Our listing inventory is down as expected this time of year, and the average list price has remained stable. Our average list price is down just $48.00 from December 16th, 2007. Our average days on the market are 117 days which is typical for a buyer's market it went up by 1 days over last month. The list to sold ratio is 93.4% we want this number to be going up, and it went down from last month. Our sold units are down by 39.8% from last month. One area I continue to look at is the Pending Inventory, and based on the current numbers we will see decreases as we approach the winter. Our pending inventory numbers have gone from the high 900's the first week of July into the mid 840's the first part of August and into the mid 760's the first week of September and into the high 690's the first week of October and we are now approaching the low 600's here in mid November. Through November and into early December the pending inventory touched 597 and is now back into the low 600's. I would like to tell you that we are reaching bottom, some interesting facts; Average list price has ranged from $411,964 (current) to $420,000's for the last 7 months, and the rolling 12 month average sales price is only down 7.1%.More.

Google Street View

Well, Wilmington NC has made the news again! Google has added Wilmington NC to their list of "Special Cities" for their new "Street view". Realistic 360* views of streets at eye level. Last December the google truck was sited in our area, and one of the locals ran outside to take a picture of the truck with google logo and a camera perched on top, and sure enough he is in the google street view online. More...

With Christmas approaching, the visitors are arriving. Wilmington NC has so much to offer visitors from the best shopping at Mayfaire to the many Christmas events and attractions. For starters is the Worlds Largest Christmas tree, an oak that is believed to be more than 400 years old and covered with 5,250 bulbs, which was lit last week at Wilmington's Hilton Park at The 79th Annual Lighting! Of course Santa & Mrs. Claus made an appearance. The Dolphins are out in Wrightsville Beach, & Pleasure Island is gearing up for their Island of Lights. The Historic Downtown Candlelight Tours, Enchanted Airlie, The Battle Ship Lighting and a Christmas Parade highlight some of the holiday festivities that Wilmington is famous for. And, this weekend, let's don't forget the Annual Christmas Choir & Orchestra at First Baptist Church, Christmas in the Country at Poplar Grove Plantation and Holiday Light Tours. Slow down and take time to enjoy and reflect during this busy time. Help others by putting a smile on their face. Need help with real estate, or have a question we might be able to help you with, please don't hesitate to call us or visit www.cbbaker.com. Search by schools, map, zip codes, neighborhood and more.

The 79th annual lighting of the World's Largest Christmas Tree in Wilmington NC was held Thursday night at 6pm at Wilmington's Hilton Park. The massive oak tree covered with spanish moss is believed to be more than 400 years old and covered with 5,250 bulbs. It was first lit in 1928 with over 500 multicolored lights The tree lighting event was also celebrated by the arrival of Mr. & Mrs. Santa. For the first time, the ornaments were hand made by local school students. See picture....

What is a Short Sale

A short sale is when the bank is willing to accept less than the actual payoff on the loan. Why would a mortgage company do that? A foreclosure is a lose, lose situation for the mortgage company as they lose revenue, the mortgage insurance company loses premiums and pays a claim, the investor is not collecting principal or interest, there is potential damage to the property and lower property values have a negative effect on the real estate market. But, the homeowner has the most to lose with foreclosure on your credit record for up to 7 years which can be viewed negatively by lenders, employers, and insurance companies.

Short Sale is a Win Win

Therefore, a short sale can actually be a win, win for everyone. The mortgage company reduces their losses, the mortgage insurer minimizes claim payment, and additional damage to the property is avoided during a foreclosure. The real estate market does not experience as much negative stigma, therefore property values do not go lower. And, the homeowner can successfully sell their home and not have a foreclosure on record.

How is all this accomplished?

First of all, any homeowner who is experiencing difficulty in making the monthly payments should call a reputable Realtor experienced in negotiating short sales. There is an art to it, to say the least. The Realtor will discuss the current market value and the amount necessary to payoff your mortgage. The most important action should be to actively list the home on the market for sale. If the homeowner owes more than the current market value, the experienced Realtor will contact the lender's loss mitigation department and assist the homeowner will all the documentation necessary to facilitate a short sale. One of the most important documents being the hardship letter, which can make or break the deal. Other documents would include 2 years tax returns, 2 months pay stubs, 2 months bank statements, and the most current mortgage statement.

One very important factor that most lenders do not tell you, is that the homeowner is liable for any deficiency in the short sale. But, a Realtor experienced in negotiating short sales can often times negotiate with the lender for the deficiency judgment and 1099 to be waived, reduced or ask for an interest free promissory note.

Lastly, to all homeowners it is never too late or too early. The most important asset you have is your home. Please give us a call to get your home on the market for sale and avoid foreclosure. And, you may know of someone in that situation, tell them to contact us immediately at kay@cbbaker.com.

For investors, a short sale can be a wonderful buying opportunity. We can provide you with a list of short sales and or foreclosures in Wilmington, NC. Just email me a kay@cbbaker.com.

Kay Baker, a life long Top Realtor in Wilmington, NC brings local knowledge and experience to her valued clients. With her decades of experience in the Wilmington, NC real estate market, she can greatly benefit her buyer clients in choosing the perfect Wilmington NC neighborhood, in the negotiation process, obtain the best financing, obtain a home inspection and negotiate the repairs, and assist with the final closing preparations. Her sellers can also reap the rewards of a successful and aggressive Realtor that is always eager to sell their home at a record pace and for the most money possible. Kay has a long track record of selling homes quickly and exposes her listings on over 100 websites.

Kay has earned numerous awards for her outstanding production over the years including the prestigious Coldwell Banker President's Elite Club.

Kay Baker may be contacted at kay@cbbaker.com or www.cbbaker.com.