I’m here to share the 10 commandments of financial health.   There is nothing new here….just good ole money wisdom. I wish I had followed this advice during the past 10 years!

1.   Always save something, no matter how much or how little you make.

2.   Save as much as possible (until it hurts!) during the early working years.   Then the magic of compound interest appears and helps your money grow.

3.   Be very clear with yourself as to what is a NEED and what is a WANT. Needs are those things which provide shelter and sustain our health….our home, food, medical care, and a form of transportation. Wants are usually impulse purchases, like a new cell phone or a shiny gadget on QVC.

4.   Consider the true cost of your purchase.   Do you truly need a bottle of water? That Dunkin Donuts coffee? Train yourself to put that money aside as a saving…a gift to yourself!

5.   Always, always, always buy quality goods.   Cheaply made cars, shoes, clothing, furniture will not pass the test of time.   I have a pair of black slacks purchased years ago from TJ Maxx.   The original price was $250(!!!!) which I would NEVER spend on such a thing but they were maked at $55.   I have worn them for years and they still look new because the material and cut is quality.   Same goes for furniture and shoes

6.   Spend less than you make. Period.

7.   Do NOT pay interest on anything which loses value.   That includes credit cards, boats, cars, furnishings. Save the money and pay cash.

8.   If you need more money spend less and find a way to earn more. Always evaluate the benefits of what you are paying for.

9.   You pay in advance for future earning capacity.   A college education or learning a highly skilled trade takes time and money now and will pay you more in the future.

10. It’s easy to live on less when you have no debt. Borrow only what you must and pay it back as quickly as possible. You will sleep better at night and have more control over your life.

Start writing here…

I have lived and worked in Greenville, NC for just shy of 30 years. When I moved to “the best little city in the South” we had a population inside the city of about 30,000. Today we have approximately 80,000. East Carolina is now the second largest university in the state system. Our hospital, Pitt County Memorial, has the only level I trauma center east of I-95.   We have 5 East Care helicopters, the Heart Center at PCMH has the largest operating rooms east of the Mississippi River and the Heart Center at ECU is the home of Dr. Randolph Chitwood and his merry band of world-class cardiologists. The new Dental School is under construction. The six-story Children’s Hospital has been approved.   Brody School of Medicine is expanding and is adding a School of Public Health. Pitt Community College hs over 6000 students and is  adding a 71,000 square foot classroom building on campus.  In addition to that, our housing market is stable, afforable and attractive. Our median sales price is below $150,000 which makes home ownership possible for many people. Being a college town, we also have a variety of rentals available for both students and your professionals. The average age in Pitt County is 32…a byproduct of the university, community college and medical campus. So while we have a long history our population is fairly young. So….with interest rates low and home prices afforable this is an excellent time to buy a home. And Greenville/Pitt County is an excellent place in which to buy.

As the helicopter mother of one son I planned his graduation in detail…the young men in crisp school blazers, dappled sunlight under the towering oaks of the lawn,   the muted voices of the families as they waited for the ceremonies to begin. Alas, this was not to be. Number one son decided he wanted to  experience public school and the subsequent graduation looked and sounded nothing like I had anticipated. After one year of university number one son decided he didn’t know what he wanted from life and promptly joined the U.S. Marine Corp. Weeks later as I sat on the cold hard bleachers of the parade ground at Parris Island, S.C., anxiously scanning the rows of impeccably groomed young men for our number one son…it hit me.   This was a graduation, I was sitting in the sun with the families of other Parris Island recruits. There was music, uniforms, speeches…..this was what I had planned!   And the lesson here?   Be careful what you pray for and be VERY, VERY, specific!   What does this little story have to do with real estate, you ask?   Everything, I answer.   We connect with our buyer/seller, the most wonderful home is found, the offer is made and accepted, the inspections are done and the closing is scheduled. Happy people leave the closing with checks and keys in hand, ready to move on to the next chapter of their lives. Then reality hits. The stainless steel refrigerator is not in the house, nor is the lovely mirror which was in the powder room…and the dining room light fixture is definitely NOT the one they vividly remember! Oh, the specifics of writing offers and counseling our clients. There are blank spaces in the offer to purchase papers for a reason.   Ask for the refrigerator (at no additional value) in writing; if you represent the seller and they plan to replace the light fixture or remove a valued mirror put it in writing and have all parties agree/acknowledge the change. Do not assume the sellers will patch the holes left in the walls from the removal of pictures and plates. Do the carpets need to be stretched? Then ASK for that in writing and inspect it before the closing.   Be tediously specific! We get what we expect when we inspect what we get. As  I post this offering, number one son is somewhere in Afghanistan and you can be assured that my prayers are VERY, VERY specific and that he will be carefully inspected when he returns.

One of the by-products of working with buyers is finding great homes…for someone else.   So I have decided that each Friday I will compile a “good buy” list to share with ya’ll.   These are homes that are priced really well, have unique floorplans, unexpected updates to the interior, wonderful yards or locations, or a combination of any or all of these features.   For instance, there is a neighborhood in Winterville, North Carolina which has three new homes in different price ranges….all three have been reduced $50,000.   The builder is simply moving the inventory and the winner here will be the lucky buyer.   Tucked into an interesting neighborhood near 10th Street, Greenville NC and a short drive to East Carolina University is a remodeled bungalow…two bedrooms, two new  private baths, a half bath, laundry room, updates throughout…and has a lovely little price tag.   Looking for the charm of Craftsman style homes?   I know where to find them….Tulls Cove, Davencroft Village, Willow Run.   Perhaps you want a new(ish) home in a golf course community. Well, there are several in Ironwood, Greenville, NC and only 5 and 1/2 minutes from the entrance of Pitt Memorial Hospital for those who need to get to work quickly.   And home quickly.   So call or email me for the details on these homes and others.   In this age of tax credits, low interest rates and motivated sellers you cannot afford to wait. Act now..call me.

www.sellinghomesingreenville.com       DeborahRandolph@kwgreenville.com    

That’s Davencroft Village, actually.   Tucked in behind Davencroft and Sterling Trace, through a raised berm and decorative fence,  and sided by  a rolling meadow is a fourty  lot neighborhood of craftman style homes. Each unique house has a combination of stone and siding, architectural roofs, mission style windows and doors, double garages and covered porches.   At the end of Davencroft Village Drive is a green space perfect for walking your dog or planting wild flowers for all to enjoy. Now is the time to pick out your lot and select your home plan. Interest rates are historically low, materials are the most affordable in years and economicallly, those who buy in early get the most for their money. So don’t wait! Call me at 252-917-4556 and I’ll get you started on the path to your new home.

• Ridgewood Elementary,A.G.Cox Middle,South Central HS
• Two minutes from Memorial Drive (Hwy 11)
• Near Lowes, Home Depot, Fresh Market and Kohls
• Sidewalks, Greenspaces

             www.SellingHomesinGreenville.com             DeborahRandolph@kwgreenville.com     252-917-4556

Taxes this year will be more complicated than unusal due to new deductions and tax credits created last your.   Many of the new tax breaks are credits and those reduce your bottom -line taxes dollar for dollar.   Here are a few to keep in mind as you prepare your taxes.

1.   Haiti Donations:   Money given to Haiti prior to March 1st 2010 can be deducted on your 2009 itemized tax return.   This applies to cash donations, not food and clothing.

2.    Making-Work-Pay Credit:   This applies to people  within certain income limits and involved authorizing your employer to deduct fewer taxes from your pay. Check with your tax preparer  regarding the amount of taxes to withhold.

3.   Home Buyer Credit:    This is the Golden Egg of tax credits!   For first time home buyers or those who have not owned a home in three years the credit is $8000.   If  a homeowner has lived in their house for five out of the past  eight years  and purchased their next house after Novemebr 6, 2009 the tax credit is up to $6500. Buyers must be under contract by the end of May and closed by the end of June. Tax credits can be claimed on the 2009 tax return.

4.   Car Sales Tax Deduction:   If you bought a new car, motorcycle or mobile home between February 17th and the end of 2009 you may be eligible to deduct the sales tax paid on the first $49,500.

5.   Energy Credits:   Did you buy energy effecient windows, doors, heating units, AC, water heaters in 2009 and this year? You may be able to deduct up to $1500 or 30% of the cost (whichever is less). Certain items, like solar energy systems, may be deducted at 30% with no dollar limiit.

6.   Unemployed Credit:   If you received unemployment benefits in 2009 you will not pay income taxes on the first $2400.   Your tax preparer can explain additional credits regarding the expense of health insurance purchased through COBRA.

7.   Education Credit:   The Opportunity Tax Credit covers the first $2000 spent on tuition, book, required fees, and 25% of the next $2000 in expenses.   If you do not owe any taxes you can receive up to $1000 back as a refund.

8.   Savings Bonds:   You can instruct the IRS to use part of your refund to purchase US Savings Bonds, up to $5000   of series I bonds.

So keep your receipts and do some basic planning.  Consult a tax professional for advice.    This could be the year you save big on taxes!  

Ten ways the new economy will look different:

1.   Value is the new virtue.   Out with the expensive “extras” and in with the discounts. Looking for and asking for discounts is now cool.

2.   The return of the Tightwad!   Out with entitlements and in with the discerning shopper.   Discount stores such as Marshalls and TJMaxx are booming.   Bargain shoppers, those who can find coupons and spot values, are the winners in the new economy. Consider them the hunters and gatherers of today.

3. The ebay of America. Need I say more?   You want something…you google it and go to eBay. We’ve moved from boutique shopping to consignment shops.   And it ‘s fun!!  

4.   There’s money in the mattress. Free spending is down, savings are up, credit card companies are nervous. It’s okay to say, “I don’t need it, I don’t want it, I choose not to buy at this time.”.

5.   What happened to the Big Three? There was a shift and the goverment swallowed a large share. So free enterprise is down, goverment is up.

6.   Our resumes are moveable. We are in the most fluid job market in history.   Gone are the days of 30 year jobs and 30 year pensions.

7.   The New Deal is “Green”.   Bottom line is some jobs are gone so look for a new niche. Re-train, move, reinvent.

8.   Stodgy is the “New Chic”.   Who knew that boring would be cool?   Family nights, home cooking, books and NetFlixs.

9.   Rise of DYI investing…and the decline of the expert. So find your niche and work it!

10. Bust of the Boomtowns.   Think “Vegas” where everyone, even newly hired hotel staff, was buying a house.

Most people purchase or sell a house only a few times in their life so we should not expect our clients to be mind readers. It’s our job, our fiduciary duty, to tell people what’s coming next.   By doing this we can keep a mole hill from becoming a mountain.   The following is a list of red flags to watch for and communicate about.

1.   The dates in the contract….specifically those which are “time is of the essence”…need to be complied with. Make sure the loan has been applied for, the inspections ordered, the repair request submitted, etc. Use a check sheet to keep yourself on task.

2.   If you are selling or buying an older home be aware of possible buried oil tanks. Ask lots of questions. Most agents suggest their seller remove the tank prior to putting their house on the market. Some states have funds in place to help with the expense. Waiting until an offer is made can be troublesome since there may be delays involved in the tank removal.

3.   Become familiar with septic tanks in your area.   Soil types will determine where the system is located as well as the repair field should the system fail and need to be relocated.   Septic locations can be obtained through your county enviromental health department. Get a copy, have the system inspected and pumped prior to putting the house on the market.

4.   Be aware  of the pitfalls associated with buyers using out of town (or internet!!) lenders.   Suggest the buyer have a back up mortgage application on file with a local mortgage lender familiar to the agent. Or better   yet, make it a condition of the offer that a local or in-state lender be used by the buyer.

5.   Good communication from your agent and mortgage lender is crucial. If either one does not return calls consider this a red flag and be proactive.

6.   Out of town appraisers can sink a sale.   Real estate is a local business and towns just a few miles apart can have very different prices. Pay attention to who is doing this work and be prepared to suggest a local appraiser.   Protect your client.

7.   If a garage or basement or attic has been  finished after the house was built it is possible the seller may not have obtained the necessary permits.   Ask for the records, check with the local building inspectors, pay close attention to how these areas may look different from the remainder of the house.

8.   Inspections may open the door for a new price.   The savvy seller will have a pre-inspection and address and correct those items which may be uncovered. Don’t run the risk of delays or missed sales due to water damage, electrical issues, etc.  

The message is to be prepared, be pro-active, and pay attention to details.   That’s what we get paid for.