Skip down to page content.

Chapel Hill and Durham Real Estate Blog

Chapel Hill - Durham Real Estate Blog

Jodi Bakst

Blog

Displaying blog entries 321-330 of 337

Our Clients Say It Best - Testimonials for Team Jodi

by Jodi Bakst
“Our Clients Say It Best”
 
 
Selling a home from afar was a little intimidating at first, but Jodi made it easy for us. The team took care of all the details, got it ready for the market and listed it. They gave us honest advice about the improvements that will increase the value of the house and took care of implementing it. We were also impressed with the marketing strategy, especially the personal website they created for our home. After listing the home, they kept us informed about the feedback they were getting from agents and potential buyers. Lastly, once the offer came, they represented our interests well, and took care of all the details. Thank you!
Gal & Dganit Zauberman
Sellers
 
 
Unlike most individuals who only sell a home a few times in their lives, I, as a developer/builder can compare my many experiences with a large number of Realtors and know that Jodi and her team belong to the elite league of professionals who master their trade. Team Jodi utilizes all of the traditional, proven marketing tools but they are equally familiar with the new web-based marketing instruments. They gave me the guidance regarding proper pricing of my most recently sold house - obviously I was reaching for the stars and they brought me back down to earth and suggested the house be staged by a decorator. When I finally agreed to the price cut and the expense of staging the house we had more showings, i.e., more exposure and the eagerly anticipated sale. Thank you Team Jodi; my next house for you to list is a few weeks away from completion.
Rolf Sass
Sass Development Company, Inc.  
Seller
 
 
 
 
Just a quick note to thank you and “Team Jodi” for your help in selling our home in less than two weeks!! We started the process “FSBO” and were overwhelmed. When we listed with Team Jodi, we were impressed with the number of showings to qualified buyers. The services provided by Team Jodi - from the in-home brochure, the calls from Centralized Showings to the web based client feed back site were all valuable to us as we moved through the process of closing on our property.
 
Many thanks also to you and Jeff Holland for the many hours that you spent with us in searching for our new home. The daily emails that present homes that met our criteria which were very specific, were very helpful as we narrowed locations for our new home.
 
We would not hesitate to use Team Jodi in the future and will definitely pass along your referral information to our friends.
Many Thanks,
Alice Williams Tilghman
Seller/Buyer
 
 
 
On behalf of my family I want to thank you and the entire "Team Jodi" organization for your superior service, patience and kindness in our home search.  You are much more than "just" a real estate agent.  Coming from out of state and not knowing the area, we were overwhelmed to say the least.  You not only helped us to find our dream home in Chapel Hill, but also assisted us in checking out schools, scouting recreation sports opportunities for our daughters, finding restaurants, clubs, shopping, cultural hot spots, etc.  Your advice on what and how to make an offer on the house, recommendations on closing agents, home inspection companies and even mortgage brokers has been outstanding.  We could not have done it without you.  I should also mention that your follow up after the close of sale has been most welcomed----- it's not easy finding a good plumber, electrician or handy man in a new town.....you knew just who to call.  We are deeply grateful for your expertise and very pleased to now call you a friend.  Thanks for everything, Jodi.
 Best regards,
The Morsberger Family
Buyers
 
 
 
 
Our experience with Jodi Bakst and Team Jodi was exceptional. She and
her team redefine prompt, courteous, efficient, and effective service,
with a respect for the customer and a work ethic that serve as models to
anyone in any profession. When we were interested in putting our house
on the market, we went to her website, which was very informative, and
provided our contact information. She called us back the next day. We
discussed our situation and informed her of our needs. Within two days
of our first contacting her, she met with us and walked through our home
with us to suggest things we might want to do to maximize its
marketability. These thoughts were all very helpful and constructive.
Just a few days later, we met again and reviewed her pricing/market
analysis, which was exceptionally informative. She must have an amazing
network and set of connections, because nearly immediately we were able
to identify a buyer within two days and agreed to sale terms that fit
our needs perfectly. We were able to get within 1/2% of our asking price
within a few days of first contacting her -- we didn't even feel as
though we had put the house on the market before it was sold.

Her diligence and hard work also paid off for us as she helped us buy
our next home, across town -- an "upgrade" to help us support our
growing family. Just as promptly as she was able to identify prospective
buyers for our home, she was able to provide for us a veritable menu of
homes for sale in the area. We had very particular needs and interests
for the next home, and were amazed at how fast she could give us options
and help us start viewing them. Throughout the process, she immediately
identified with our needs, and was amazingly accommodating with our busy
work schedules. We identified a home and had a contract signed much
sooner than we ever could have anticipated. She continued to work with
us, staying in touch consistently until the closing dates for both
homes, and even afterwards. Jodi's dedication and compassion made these
potentially very stressful life events very manageable. We have
recommended her to everybody we know who is interested in buying or  
selling a home. We remain in touch with her on a regular basis, and know
that she will be the first person we call when we are ready for our next
move.
Bill and Carolyn Carpenter
Sellers/Buyers
 
 
What an effort on your part to get us out of the state! We made a huge decision to change our lives and it meant selling our unique home and property. We interviewed five agents before choosing you. We thought you might want to know what put you on top.
 
First and foremost was your presentation. Holy cow, were we ever impressed. We weren't getting an agent...we were getting a team. Then you kept your promise with regular updates. Then, not one, but two open houses. Furthermore, we always had enough notice to prep before showings of which there were thirteen - in only two months. The first potential buyers who walked through the door - the same day the house went on the market - ended up buying the place, but not to worry, we even had a backup offer waiting. This can happen when all your information is presented on the market at once. We had gorgeous color brochures with professional photographs and room by room descriptions, a really thorough web representation, lock box, signs, and even an 800 information line you could call for the juicy details (which then sent a page to your team so that you could follow up on every lead). Oh, and lets not forget the interior design specialist you brought to our home to make suggestions on how to make rooms look roomier and more inviting.
 
We actually got more than we intially thought the house would even list for (after all, your suggested sell price was $100,000 more than any other agent interviewed!). Team Jodi, that only happens when you have someone who can take a unique piece of property and do their homework to come up with a sell price that won't place you out of the buyer's market while truely giving you what the place is worth. Three months after meeting you we were in Missouri, and our home was due to close a week later. It happened. Beyond all expectations. Difficult Buyers were only the start of the hurdles you helped us over.
 
So, thanks. For everything. And we do mean everything. Your teamwork put you over the top. Your professionalism and knowledge of the business and the industry as a whole is unmatched in our eyes. We sincerely hope you will come for a visit soon at our resort in Missouri. God knows you deserve a vacation. Thank you Thank you Thank you! You will succeed in all your endeavors, you care so much about every detail. How could you possibly fail?!
Sincerely,
Richard and Cami Gilman
Sellers

Orange & Durham County First Quarter Market Report 2007

by Jodi Bakst
Orange and Durham Counties First Quarter 2007 Market Report
 
The residential real estate market in Orange and Durham counties had both positive and negative indicators during the first quarter of 2007. The following are answers to some frequently asked questions.
 
Are people moving in or out of the area?
Both counties have had population increases. The 2005 population estimate for Durham County shows a 1.3% increase from the 2004 population estimate. The 2005 population estimate for Orange County shows a 6% increase from the 2002 population estimate. The majority of inbound transfers to both counties come from Wake County, Mecklenburg County (Charlotte) and Cook County (Illinois). The people that left both counties went to Wake, Mecklenburg and New York City.
 
What is going on in the job market?
Both counties have had workforce increases. Per the N.C. Employment Security Commission, the February, 2007 workforce in Durham County increased 3.3%, while the Orange County workforce increased 3.45%. The current unemployment rate in Durham County is 3.7% and the current rate in Orange County is 3.3%.
 
What is going on with interest rates?
They have gone down. The national average for a 30 year fixed rate mortgage is 5.8%, compared to 6.43% in April of 2006. The national average for a 15 year fixed rate mortgage is 5.55%, compared to 6.1% in April of 2006.
 
The remaining numbers presented were all obtained from Triangle MLS.
 
Give me some numbers:
The average list price in Durham County is $243,275, an increase of 7.7% compared to last year. The average list price in Orange County is $448,012, a decrease of 1.48% compared to last year. The average sold price in Durham County is $204,700, up 14.6% compared to last year. The average sold price in Orange County is $323,600, down 1.97% compared to last year. There were 910 closings in Durham County during the quarter, an increase of 4.6% compared to the first quarter of 2006. There were 310 closings in Orange County during the quarter, a decrease of 9.6% compared to the first quarter of 2006.
 
What is going on with housing located in the Chapel Hill/Carrboro high school district?
The current list price for all housing within the Carrboro/Chapel Hill/East Chapel Hill high school district is $516,000 with an average days on market of 87. The current average closed price through the first 3 months is $384,000 with an average days on market of 80. The overall current supply in this district is 2 months and the supply for detached housing product priced below $300,000 is also 2 months.
 
What is happening with inventory?
Both counties have seen increases in overall inventory and re-sale inventory. Overall inventory in Durham County increased 6.88% to 2,236 listings. Durham County re-sale inventory increased 2.7% to 1,709 listings. Overall inventory in Orange County increased 22% to 776 listings. Orange County re-sale inventory increased 25% to 627 listings.
 
Is anyone looking at residential housing?
There were 9,453 showings of active listings within Durham County during the month of March. This represents 10% of all showing activity within the TMLS. The majority of showings were in the Southern Durham market. There were 3,949 showings of active listings within Orange County during the month of March. This represents 4% of all showing activity within the TMLS. The majority of showings were in the Chapel Hill/Carrboro market.
 
How does the current supply compare with other area’s in the Triangle?
Both counties have a higher current supply than seen in competing counties. The current supply for all housing located in each county is 7 months. The current supply of housing located in the combined counties of Durham, Orange, Johnston and Wake is 6 months. The national current supply is approaching 8 months. The current supply is a snapshot measure of supply and demand, stating the current inventory supply in months based upon sales pace during a given period of time.
 
Are house prices appreciating?
Yes they are; the current average for re-sales within the past 18 months in Durham County is 4.34%, the average rate in Orange County has been 7.61%. The rate for housing in the United States during the fourth quarter of 2006 was 5.9%. The rate for the South Atlantic region was 7.35% and the rate for North Carolina was 8.19%.
 
Where are people buying?
Woodcroft, Hope Valley Farms and Grove Park were the top Durham County sellers during the first quarter. Providence Glen, Southern Village, Lake Hogan Farms and Ashbury were the top Orange County sellers.
 

Durham County First Quarter Market Report

by Jodi Bakst
Durham County First Quarter 2007 Market Report
 
The most recent population (2005) estimate for the county shows a resident population of 447,427. That is a 1.3% increase from the 2004 Population. Per IRS data for tax years 2000 thru 2005, the majority of new Durham County residents came from Wake County,
Mecklenburg County (Charlotte) and Cook County (Illinois). The people that left Durham County went to Wake, Mecklenburg and New York City.
 
Per the N.C. Employment Security Commission, the February, 2007 workforce in Durham County stands at 137,503. This is a 3.3% increase from the workforce in 2/2006. The current unemployment rate is 3.7%, down from the 4.1% rate in 2/2006.
 
Many people are inquiring about what is going on with interest rates. They have gone down. The national average for a 30 year fixed rate mortgage is 5.8%, compared to 6.43% in April of 2006. The national average for a 15 year fixed rate mortgage is 5.55%, compared to 6.1% in April of 2006.
 
So what are the numbers for what is happening in Durham County? The average list price is $243,275, an increase of 7.7% compared to last year. The average sold price is $204,700, up 14.6% compared to last year. There were 910 closings during the first quarter of 2007, an increase of 4.6% compared to the first quarter of 2006. The overall
Inventory has increased 6.88% to 2,236 listings. Re-sale inventory has increased 2.7% to 1,709 listings.
 
There were 9,453 showings of active listings within the county during the month of March. This represents 10% of all showing activity within the Triangle Multiple Listing
Service. The current supply for all housing located within the county is 7 months. The current supply of housing located in the four main counties of Durham Orange, Johnston and Wake is 6 months.
 
House prices in Durham are appreciating. The current average for re-sales within the past 18 months in Durham County is 4.34%. The rate for housing in the United States during the fourth quarter of 2006 was 5.9%, the rate for the South Atlantic region was 7.35%, and the rate for North Carolina was 8.19%.
 
 
Source: T.A.R.R. Report: Durham County: 2007 First Quarter Summary
LENDERS NOW MORE FLEXIBLE ON CONSTRUCTION AND RENOVATION LOANS. 
 
Ever want to build that dream home, but your mortgage lender requires 10% down?   Or want to do a major renovation but don’t have enough equity in your home to finance it? Homebuyers (and homeowners) can now obtain up to 100% of the costs to build a new home or renovate an existing one. Per the “old rules” a lender was only allowed to lend approximately 90% of the actual costs of new home construction or renovation.
 
NEW CONSTRUCTION: Let’s say you want to buy a $50,000 lot and build a $250,000 home on it.   Your total costs will be $300,000 but your lender will only lend 90% of that, or $270,000. As a borrower, you’ll need to come up with a $30,000 downpayment PLUS closing costs. Under a new program, SunTrust Mortgage is able to lend the full $300,000 in the aforementioned scenario. And we can even include closing costs in many cases.   How?   SunTrust’s lending decision is based on the as-finished appraised value, not the actual cost of construction.    This flexible lending guideline allows you to borrow more and preserve your out-of-pocket cash.
 
RENOVATION: If you’re planning a major renovation - $40,000 or more- but don’t have that much equity in your home, there is an innovative financing option for you. As long as your improvements will increase the home by the same amount as the cost of  the renovation, you can now borrow 100% of the renovation costs. Your lender and builder can help guide you through the process. It’s never been easier, and it means you can make major improvements with NO cash out-of-pocket.
Got the “Home Equity Blues”?  
 
Has your Home Equity Loan payment gone through the roof?   Chances are you obtained a Home Equity Loan many months ago, when interest rates were at an enticing 6% or so. Some loans even had introductory “teaser” rates that were below 5%.   Not any more. Almost all Home Equities have interest that is tied to the Prime Rate.   And the Prime Rate has more than doubled from 4.0% in 2003 to 8.25% today.   With most Home Equities at Prime + 1%, homeowners have seen their payments escalate sharply, some with rates approaching 10%. And FYI, the Prime Rate was as high as 20% (!) back in 1981. So, what to do about this mess?
 
Conventional wisdom says to leave your FIRST mortgage alone, if its rate is locked in somewhere below 6%.   This is generally true …unless you have a large Home Equity at a much higher rate- that may be going even higher. The crucial item to look at is the “blended rate” – i.e. the weighted-average interest rate when you combine your first mortgage rate and your Home Equity interest rate. And, most important to the kitchen-table economist in all of us, will a refinance LOWER my payments?  
 
Here’s a quick example: 
First Mortgage:   $235,000 @ 5.875% = $1,390/month    (principal and interest)
Home Equity:       $85,000 @ 9.500% =     $673/month    (interest-only)
Total Owed:       $320,000 @ 6.838%* = $2,063/month (*6.838% is your “blended” rate)
 
So, let’s say you were to refinance everything, including your closing costs. Would it make sense?   A $322,000 mortgage, locked in at 5.99% for five years, would be $1,928/month.   That’s a monthly savings of $135/month and over five years you would save $8,100.   Not bad, huh?   Plus, you would SKIP one monthly mortgage payment. In addition, you would be paying down the principal on the entire amount you owe. Right now, you’re likely paying interest-only (no principal) against that Home Equity.   And you don’t know how high the Prime Rate may go in the future.   
 
As always, consult with a mortgage professional who can tailor a loan that best fits your situation. It just may be time to get rid of a Prime Rate-based Home Equity
BUYING RENTAL PROPERTIES: PRO’S AND CON’S
 
A rental property can be a great investment vehicle which offers both cash flow and appreciation over time. But it’s not quite as simple as dumping some extra cash into your IRA and watching it (hopefully) grow. A rental property takes some work- you have to find the right property and then manage it, or pay someone else to handle the tenants. However, a rental is a great way to leverage your assets.   With as little as 5% down, you can finance the remaining 95% of a purchase. (For this article, we will concentrate on properties of 4 units and under, which fall into the “residential” lending category. Larger “commercial” apartment buildings are generally harder to finance.)  
 
Many of us are worried that our 401-k and Social Security won’t provide enough income for us in retirement. A rental property can provide cash flow, but sometimes not immediately after purchase. Know your investment goals; Are you nearing retirement age and want an income stream, or are you younger and looking for a tax break?   Investment properties can provide tax write-offs for interest and maintenance expenses (“cash” expenses) as well as depreciation (a “non-cash” expense that is still tax-deductible).  Another way to avoid capital gains taxes upon the sale of the property is to do a tax-free exchange. In this scenario, you must invest your gain into the purchase of a  new property, within a specific timeframe (usually 6 months).  
 
Keep in mind the type of rental property you want to own: single-family or multi-unit (duplex, triplex or 4-unit)?   Again, when looking at the property be clear on your goal- Are you looking mainly for appreciation or cash-flow? Single-family detached homes often will see the greatest price appreciation. However, it can be very tough to find one that provides good cash flow, unless you have a large downpayment. Single-family homes are generally easier to sell later, as they have the widest possible market of both owner-occupant AND investment buyers.   A multi-unit property, such as a duplex, may not appreciate in value as quickly but generally provides a better cash flow when compared to a similarly-priced single-family home. Multi-unit properties also spread the risk of vacancy- if one unit is vacant, the others still provide income. In our area, there are many rental units that serve the college market.   These units usually have annual turnover (vs. long-term tenants) but they may command a rent premium by being near a university. Another factor is that the leases are often signed by the student’s parents, offering a stronger tenant.  
 
And finally, what if you find a rental property, but it needs a lot of work? There are loan programs available that can finance up to 100% of the cost to buy AND renovate the property. If done correctly, the added value can be used to the buyer’s advantage. This loan is called a purchase/renovation loan and involves only one closing for the buyer, saving money on attorney fees and closing costs.   
 
Rental properties can be an excellent investment, but they do take some homework and management to be successful. But where else can you put down only 5% or 10% and buy a large asset, other than through real estate? For more information, I recommend the book “Rich Dad’s Advisors: The ABC’s of Real Estate Investing” by Ken McElroy
Most lawns in the Triangle contain Tall Fescue grass. Although it is suited very well to growing in harsh climates like ours, Tall Fescue is a cool-season grass that does most of it’s growing during the cooler periods of the year. That makes the spring one of the most important times to fertilize your lawn. As the soil begins to warm, roots begin to grow faster and stronger preparing for the heat and drought stress from the upcoming summer. Along with the stresses of heat and drought, the increased weed activity of spring and summer must be controlled early to ensure that you have the best lawn possible until the next cool period. The following is a list of Do’s when caring for, or treating your Tall Fescue lawn.
 
Fertilization, cooler temperatures, and increased moisture from seasonal rains will make Tall Fescue lawns grow thicker, greener and faster. Your Tall Fescue lawn should be mowed between 3” and 4” high. Mowing too short can be devastating to the health of the lawn. The lower the grass is mowed, the shallower the roots become, thereby decreasing drought hardiness and increasing susceptibility to diseases. Longer mowing heights also help to shade the crown and the soil, reducing water loss from evaporation. Another important consideration is your mower blade. Make sure it is sharp so it cuts cleanly and does not tear the grass blade. This will help your lawn look better and be healthier.
 
Spring typically brings heavy rains, but when it does not, Tall Fescue Lawns still require 1-1½ ” of water per week. In the absence of rain, this should be applied in heavy doses 1-2 times per week. Water should be applied in the early morning, never in the afternoon or evening. Watering in the early morning hours will help the turf fight disease, and deep infrequent watering will help force roots to grow deeper and increase drought tolerance.
 
Spring is the perfect time to apply pre-emergent weed control. Tall Fescue is a bunch type grass, which means it does not spread and will not fill-in damaged areas. That is why it is important to apply pre-emergent herbicides early enough to minimize weed infestations from Crabgrass and Broadleaf weeds. Grasses and weeds compete for the same real estate. If a weed moves in, the grass typically moves out and must be reseeded. “Do-It-Yourself programs” typically do not have enough pre-emergent material to be effective for the entire summer season.
 
Fertilization is also important for Tall Fescue grass during the spring and fall months. The proper amount of fertilizer will help to keep your lawn healthy and good looking throughout the summer and into fall when regular fertilization can resume. Most “do it yourself programs” incorporate too much nitrogen at the wrong time. Too much nitrogen fertilizer has been linked to Brown Patch infestations, a disease already present in the soil and aggravated by increased stresses from high heat and humidity.  
 
Spring is also a great time to devote some effort to your trees and shrubs. Moderate temperatures in the spring and fall present a great opportunity to plant new trees and shrubs. Follow instructions carefully regarding soil preparation and sunlight requirements. Depending on the variety, you may need to prune your existing shrubs in the spring to promote new growth and keep everything looking great. Shaping your plants regularly will keep them thick and full. A light fertilizer will help encourage new growth

"Dividing IRA Assets Upon Divorce" by John K. Bahr

by Jodi Bakst
DIVIDING IRA ASSETS UPON DIVORCE
 
John K. Bahr
First Vice President, Investments
Raymond James & Associates, Inc.
919-493-6043
 
 
 
For many families, a significant portion of their wealth may be located within the couple's individual retirement accounts (IRAs). Should the family unit break down, it is therefore important to have an equitable and easy method to divide and transfer assets. Division of retirement assets can be a sticky problem when left to the court system. Yet, once a decree of divorce or separate maintenance is entered, the transfer of IRA assets from one spouse to another should not add further difficulty.
 
When an interest in an IRA is to be transferred from one spouse to another under a court decree, the Internal Revenue Service has attempted to facilitate as easy a transfer as possible. This accommodating position is most likely in response to the level of divorce in today's society. In general, the transferred interest in the IRA is viewed as the recipient-spouse's property and, therefore, this conveyance is acknowledged as tax-free. The IRS also offers two basic transfer methods to help during such a trying time.
 
The most common method is the direct transfer. The IRA owner-spouse may order the IRA trustee to transfer the necessary IRA assets directly to the trustee of a new or existing IRA in the name of the recipient-spouse. Another alternative is to transfer the assets the owner-spouse is entitled to keep into another IRA, leave the necessary amount in the old IRA for the recipient-spouse and change the name on this old IRA to that of the recipient.
 
This renaming method taken to its extreme is the second alternative recognized by the IRS. If all the assets in the owner-spouse's IRA are to be transferred to the recipient-spouse, a simple method of transfer is to just change the name of the account on the records of the financial institution. Sounds easy enough.
 
Given the inherent reporting problems, the sixty day rule, and the sometimes emotional environment of marriage dissolution, IRA rollovers are generally not permitted. Direct transfers by trustees are most often recommended. Of course, the most viable alternative will depend upon the particular situation and should be chosen with the advice of an attorney and financial advisor.
 
John K. Bahr is a Financial Advisor with 14 years of experience.
 

"The Road to Successful Investing" by John K. Bahr

by Jodi Bakst
The Road to Successful Investing
John K. Bahr
First Vice President, Investments
Raymond James & Associates, Inc.
 
 
 
The road to successful investing is paved differently for each investor. One investor’s road to success may be the high road while another’s may be the low road. But common to both investors is basic principles that are true to form no matter which road an investor finds himself taking.   Below is a listing of some of these basic principles that may lead an individual along the road to successful investing.
 
·        Formalize your goals. As with the achievement of any goal, commitment to the goal is half the battle. Formalize your commitment to attaining your goals by writing them down, both short-term and long-term. Follow your progress by updating them at least annually. How else will you know if you are actually going to attain your goals?
 
·        Invest early as possible.         Procrastination is an investor’s worst enemy. Though there is no perfect or ideal time to start investing now may be the best time of all.
 
·        Invest in what you understand.        If you do not understand how an investment works you will not fully understand the risks associated with that investment. Is it really worth it placing your hard-earned money in this type of investment? No.
 
·        Consider the impact of inflation and taxes. Inflation and taxes erode an investor’s purchasing power. The consideration of investments that minimize the impact of these two forces may be key in meeting your goals.
 
·        Your portfolio is for you and you alone. The design and formulation of your portfolio is based on your goals, time horizon and risk tolerance. Understand that what may work for your friend, cousin, or co-worker may not work for you because one size does not fit all.
 
·        A basket of eggs is better than just one. Diversification of your investment assets may bring the positive benefits of reduced risk and stable returns to your investment portfolio basket. Mutual funds are a cost efficient way to invest while at the same time reaping the benefits of diversification.
 
·        Use time, not timing when investing. Trying to correctly time the ups and downs of the market is a risky, if not impossible, task. Most investors will fare far better by keeping their investment assets in the market the entire time. It is time in the market, not timing the market.
 
·        The old team player may be better than a young hotshot. Try to avoid the temptation of investing in the new “hotshot” investment that may lose its luster quickly. Seek investments with solid track records that will benefit you more over the long run.
 
·        Know when to cut your losses. Many investors do not know when to get out of an investment. If your investment selection is heading south and most likely won’t return to previous form, face the music and consider getting out before your lumps get too big.
 
Topic: Considerations When You Are Selling or Buying A Home When You are Separated or Divorced
 
            The focus of this article is limited to discussing a small number of matters to consider in the sale of your home when you are separated or divorced.   The problems that are often encountered for Sellers who are attempting to list the home or close on the sale when they are separated or divorced may, at times, be particularly frustrating. It is important that you realize that the closing attorney must consider North Carolina estate, domestic and contract law to determine if a separated, non-separated or non-owning husband or wifewill be required to sign either the conveyance deed (if property is being sold) or the deed of trust on the property for the Buyer’s lender to issue a mortgage. In the case of closing on a refinance of an existing mortgage on the marital home, the same rules apply.
 
 Points to Consider if You Are Separated
 
            1. The Role of Estate Law North Carolina Estate Law provides that a spouse may dissent from the Will of the other, if the deceased Husband or Wife has not provided a minimum statutory share of his or her estate to the surviving spouse. Included in the law is the right for the surviving spouse to dissent from the will to claim a life estate in all real property that the deceased spouse owned at the time of death and this right continues even if the husband and wife are separated. These statutory marital rights result in a legal requirement that, prior to a divorce, in order to sell any real property owned by the parties both husband and wife must sign the conveyance deed transferring the property to the Buyer.   This same requirement applies even if the parties are not separated, and only one of the parties (husband or wife) is the actual record owner of the property.
 
            2. The Role of Legal Documents There are only limited exceptions to the requirement for a Husband’s or a Wife’s signature on either (1) a contract for the sale of the home; (2) on the conveyance deed to transfer the home; or (3) on a deed of trust if purchasing a new home or refinancing an existing home. The most important exception to this rule is when the public record provides notice by a recorded instrument that the non-owning husband or wife has released all common law and statutory rights in the other’s real property such as in a Pre-Nuptial Agreement. A separated husband or wife can also transfer his or her marital rights to property by using this type of release language in an actual conveyance deed where one of the spouses conveys his or her marital right to the property to the other through the deed.  Ifthis type of deed has been recorded it will allow the record owner spouse to sell the property without the signature of the other.   If the language is not specifically placed in a conveyance deed, there may be a contractual Separation Agreement, a court-ordered Separation Agreement, a Memorandum of Separation or a Free Trader Agreement that specifically releases all common law and statutory rights of the separated and/or non-owning spouse to the real property owned by the other spouse. Remember, the use of a recorded Memorandum of Separation is often the best way for separated spouses, who are selling real property or buying real property, to avoid the signature requirement of the other spouse. You should consult with your domestic attorney to make certain this is done as part of your legal work in the separation or divorce process. 
 
            3. The Role of the Title Insurance Company Over the last few years, at the time of purchase, the title insurance company being used by the closing attorney may be willing to insure the lender over the lien interest (deed of trust) without the signature of the non-owning spouse, by taking the position that it is “purchase money” being provided by the lender.   This concept is too detailed to discuss as part of this writing.   However, if this is important for you as a Buyer you will need to consult with your closing attorney to find out if you can avoid having your spouse sign the deed of trust. Of course, as previously discussed, if there is already a valid recorded Memorandum of Separation, or other legal document releasing all marital rights the problem is resolved.
 
The Final Questions or Points to Consider if You are Separated:
 
            1. Do you have a Separation Agreement or legal document that releases all common law or statutory rights in real property? If not, do not buy or sell real property until such time that your separation is finalized with a divorce. As long as you are legally married, even if you are separated, your spouse has marital rights to your real property unless you both have signed an agreement to release your marital rights.  
 
            2. Are both spouses the current record owners of the property or is only one spouse a current record owner?   If you are already divorced, was the property that you are selling previously transferred into your sole name by a conveyance deed? If not, your divorced spouse will need to sign the conveyance deed when the property is sold and typically the closing attorney will be concerned as to the instructions for the distribution of the proceeds to the Seller. C heck with your domestic attorney if you are not sure that there is a legal agreement, document or court order in place that specifically states the real property rights of each spouse.   The closing attorney will often need to review the terms of your settlement where it states who gets the proceeds from the sale of the home, or perhaps obtaining a note from the domestic attorneys instructing how to distribute the closing proceeds. If there is no controlling document or if the domestic matter remains unsettled; the proceeds of the sale can be held in an attorney’s trust account until such time that an agreement has been reached by the separated or divorced parties.
           
            3. Naturally, the goal of your realtor and/or the closing attorney is to help you with a successful sale or purchase so that you can move forward with your life. Therefore, if you have a recorded Memorandum of Separation or Free Trader Agreement, that was signed by both parties and notarized, or the property was conveyed into your sole name where the conveying deed released the common law or statutory rights of your separated spouse in the property being sold it will be of great help to your realtor to provide this document at your first meeting.
 
 
 
 

Displaying blog entries 321-330 of 337

Syndication

Categories

Archives

Jodi Bakst on Zillow

Push To Talk

 

Site Meter