Insights On Residential Real Estate

InsightsOn Sponsors’ Content

RESIDENTIAL REAL ESTATE ANNE GARDNER CEO, Cape Fear Realtors®

WILL MULLINIX Mullinix Mortgage Group

SHERRI INGLE Broker/Realtor®, The Rising Tide Team Intracoastal Realty

STEVE SWAIN President, Wilmington Cape Fear Home Builders Association

MICHAEL HARRINGTON CEO & Owner, Carolina Retreats BLAIRE YOUNG Area Manager, Southern Trust Mortgage ADRIENNE MOORE Owner & CEO, James E. Moore Insurance Company

LEADING THE WAY INTO THE NEXT 100 YEARS

ANNE GARDNER CEO, Cape Fear REALTORS® Anne Gardner is the CEO of Cape Fear REALTORS®, an organization with nearly 3,500 members who serve as the region’s Voice of Real Estate. Cape Fear REALTORS®, through advocacy, education, and community involvement, support efforts to protect the rights of property owners, promote the availability of housing, and provide resources to guarantee every individual has the right to share in the “American Dream.” For further information on this topic and the association, please visit www.capefear.realtor or contact the Cape Fear REALTORS® at 910-762-7400.

C

onsidering that REALTORS® have a vested interest in supporting the community and have had both a direct and indirect impact on the growth of their communities, it is almost hard to believe that we are only celebrating the 100-year anniversary of this association.

Things have changed significantly since the founding of Cape Fear REALTORS® (CFR) in June of 1924.

Along the way, we have continually focused on serving the interests of the public by advocating for private property rights, by working to ensure that insurance is available and affordable for residential and

commercial properties, and by working with the state and local associations to promote ethically and legally sound representation for consumers.

Of course, one of the most significant impacts that we have seen over the past 100 years has been the implementation of advanced technology. The days of meeting in person to sign closing paperwork, offers to purchase, or listing agreements are over. Technology has revolutionized the way that we do business in a variety of meaningful ways, reducing the need for inperson meetings and streamlining the transaction process.

Nowadays, it’s easy for a prospective buyer to view the particulars of a home through a Facetime call or see a high-quality virtual representation of a home with Matterport, an innovative real estate software platform. Likewise, creating a virtual staging concept for a seller is a fairly simple thing to do, much easier than actually bringing in furniture and interior décor items.

All of this has allowed REALTORS® to not only reduce their carbon footprint but also deliver substantial value to the consumers they represent.

With that in mind, as an association, we continually work to provide customized technology solutions and tools to support members across all business specialties, market segments, and throughout the total CFR footprint.

One of the best-known features to consumers, of course, is the Multiple

Listing Service. Those of us who are a little older may remember the days when available listings were printed in a book, and the search for a home with specific parameters was a very time consuming process. Having comprehensive listings of available real estate for purchase or lease online is a large percentage of what we do.

As a component of achieving our mission, which is to be an innovative resource and advocate for real estate for our members and community, we require that our members stay up-todate with the industry by finishing continuing education courses on a variety of topics, from technological advancements to standard contract writing.

Moving forward, our strategic priorities are based on the ideas that: • REALTORS® are the voice of real estate • REALTORS® are essential to quality transactions • Diversity and enhance our business and our communities • Private property ownership and equal housing opportunities are fundamental rights For more information about our vision or goals, please visit CapeFear.

REALTOR or call 910-762-7400.

910-762-7400 CapeFear.REALTOR

RECAP AND FORECAST We live in a world where our only constant is change and this particularly rings true concerning our local real estate market.

In the first quarter of 2021 appraisals below the contract sale price were a painful reminder that the market was rapidly changing. As we continued to have more cash buyers enter the market, prices were driven up and most cash buyers do not get an appraisal. We also encountered many buyers willing to pay the difference between the short appraisal and the contract price to get into the right house for their family. Once the market adjusted, appraisals became less problematic for buyers and sellers.

Our local Wilmington real estate market for 2021 was nothing less than remarkable. Some price points saw 20% appreciation where typically year over year appreciation is between 2-4%.

Since our market cannot sustain double digit appreciation multiple years in a row, a slightly above average of 3-5% appreciation seems plausible for 2022.

So, the question at hand-what does 2022 hold for our local real estate market?

As supply chain issues continue to improve, we should see more new home inventory come on the market. This should help our current challenge of an extremely low inventory of homes to sell. A healthy market has 5-6 months of inventory available, we are currently well under a 2 month supply of inventory in most price points.

As Wilmington continues to attract out of state buyers due to our coastal lifestyle, mild climate and affordable cost of living we will see our population increase.

We are the most affordable city on the east coast compared to Charleston, SC

THE RISING TIDE TEAM

and Savannah, GA. In 2032-Wilmington could find itself more sought after than Charleston, SC due to our river walk with restaurants and shopping, our ever-improving downtown amenities and of course our proximity to local beaches.

TIPS FOR BUYERS AND SELLERS IN 2022 If you are seller, you will find yourself with multiple offers when you properly prepare your home for market with appropriate pricing and all deferred maintenance items taken care of, including lawn maintenance. Staging sells and that is still very important even in a hot market. Buyers love eye candy and expect it if they plan to pay top dollar.

For the buyers out there, being prepared is the wisest thing you can do to win a possible bidding war.

1. Try to go through underwriting with your lender and be approved for a loan, all that is left is to identify a house and have an appraisal completed.

2. If paying cash, have proof of funds ready to submit with an offer.

3. Be willing to drive until you qualify.

If your budget is $300,000 and you need a four bedroom, 3 bath home, you may need to find something outside of Wilmington to meet your family’s budget.

4. Be willing to remodel. The turnkey homes attract multiple buyers due to the

ease of “move in ready.” The ones that need updating typically do not fly off the shelf as quickly. The advantage is a more mature neighborhood, and you can live in a house while you slowly update it.

5. Inventory is out there; we get fresh inventory daily. The right one will show up!

6. Two deposits needed to make an offerdue diligence money and earnest money.

Both come off purchase price when a buyer closes on the home.

7. Nonrefundable due diligence money is paid to seller to take the house off the market. During this time, a buyer performs all inspections, appraisals, etc.

8. Earnest Money is held by the listing firm or closing attorney and held in a trust account until closing.

9. Due diligence money is nonrefundable and earnest money is refundable up to 5 pm of the due diligence date.

10. In this changing market, trust your local professionals to help navigate the changing tides of our real estate market.

SHERRI INGLE Broker/Realtor® The Rising Tide Team Intracoastal Realty

THIS YEAR’S EARLY BOOKING TRENDS IN SHORT-TERM-RENTAL HOUSING

L

ately, disruptions in our lives brought about by the pandemic made vacation planning difficult if not impossible. But as circumstances in your world begin to look more normal you should schedule your vacation at least 3 months ahead of time. Industry forecasters see the demand to increase slightly more than 14% over 2021 demand. Booking early is the right idea.

Research shows that when you have a vacation planned in the future, you get both a practical and a psychological benefit. When the journey is preplanned your mind has the time to anticipate how fun and relaxing your trip will be. At Carolina Retreats, we see some interesting trends in ShortTerm Rentals.

PEAK SEASON GROWTH In 2021 the term “never-ending summer” was popular. The peak season for many popular destinations for short-term rentals started several months earlier than normal and the peak extended much further into the fall than ever before. We expect this trend to continue in 2022. Book early!

SUPPLY FACTORS In 2021 the short-term industry rental had its own supply chain issues.

Property owners used their second homes to work remotely. Long-term

housing saw increased demand, and property values affected investor interest. We are seeing a continued increase in demand with our managed vacation rental properties pacing around 45% ahead year over year.

Surging demand means book early.

FLEX WORK Many workers have gotten used to the reality of working remotely. In 2022 that means many flex workers see they can work anywhere so they go to the beach, or to the mountains and short-term rental properties in those destinations become long-term stays. Property owners will need your booking well in advance because of the demand. Book early.

UNIQUE EXPERIENCES And whether for an annual family trip or a quick getaway, guests are looking for unique experiences. Shortterm rental properties come in many unique types providing those unique experiences.

Carolina Retreats properties are in destinations that offer many unique experiences. If you would like to learn more about Carolina Retreats’ vacation and short-term rental management program email us at info@carolinaretreats.com or call (844) 567-9779.

MICHAEL HARRINGTON CEO & Owner, Carolina Retreats Mike Harrington is CEO & Owner of Carolina Retreats, a specialty lodging and vacation rental management firm providing management services for highend single family vacation rental homes, and intimate, limitededition motels and inns throughout coastal North Carolina. Mike is a Past-President and Board Member of the Vacation Rental Manager's Association, and Past-President for the North Carolina Vacation Rental Manager's Association. Mike is a frequent speaker at seminars and trade conferences on vacation rental management trends in marketing, operations, and strategy. For more information visit carlolinaretreats.com.

CarlolinaRetreats.com

(844) 567-9779

HOW INDEPENDENT AGENTS DELIVER BETTER INSURANCE

A DR IE NNE MO O RE Owner & CEO. James E. Moore Insurance Agency Adrienne Moore is CEO of James E Moore Insurance Agency, Inc. She joined the company as a producer in 2009 after working in marketing for United Healthcare and in personal lines underwriting for Kemper. Raised in Wilmington, Adrienne loves supporting the community by serving on numerous committees and nonprofit boards.

Currently, Adrienne is a board member for the NC Aquarium Society and Keep New Hanover Beautiful. When she isn’t busy advocating for her clients and friends, helping them with their insurance needs, including residential, auto, commercial, and employee benefits, she enjoys traveling, sports, gardening, and relaxing at home with her dog, Bailey. In addition to her extensive insurance credentials, Adrienne holds a B.S. from the Cameron School of Business at UNC Wilmington, where she co-captained the women's volleyball team.

J

ohn F. Kennedy said, “There are risks and costs to a program of action, but they are far less than the long-range risks and costs of comfortable inaction.”

In my role as CEO of my family’s insurance business, James E. Moore Insurance Agency Inc., I implement a program of action because doing so allows our agency to exceed the expectations of our customers and

make a positive difference in their lives. Understanding that insurance is a complex industry, my team and I simplify the jargon and coverage options while identifying competitive premium.

Most people do not want to think about their insurance until an accident happens or a disaster strikes. Likewise, shopping for insurance, comparing coverage levels and premiums are things most people would prefer to avoid. As a third-generation leader of a business that has been around since 1954, I am fortunate our clients trust us with their insurance needs. The result is a stronger relationship with our clients and a more positive experience for everyone.

Reputation matters and the chance to be a valuable, trusted resource for my clients and friends is a responsibility I take extremely seriously. This has motivated me to constantly advance my knowledge of the industry, to work

on making it more understandable (by writing articles such as this}, and to check in with my clients periodically to ensure their policy still meets their needs.

Anyone can shop online for a policy but there is a steep learning curve, and the choices can be complex. Working with an independent insurance agent — someone who does this on a daily basis — helps to illuminate any coverage options, thereby ensuring the home or business is adequately protected. My team and I research every available option and work to eliminate any uncertainty for our clients, so they can rest easy in the knowledge they have the best possible

910.256.5333 JamesEMoore.com

RECENT UPDATES BRING ADDED BUYING POWER FOR BUYERS

R

ecognizing the strength of the real estate market, the Federal Housing Finance Agency (FHFA) recently increased the maximum amount for conforming loans to $647,200. This represents an approximately 18 percent increase from 2021.

What this means for a buyer in Wilmington is a substantial uptick in buying power, since it’s now possible to only put five percent down on a home with a purchase price of around $647,000 and still access historically low interest rates. In previous years, this would have been a jumbo loan scenario and the interest rate would have been higher.

This is a welcome update because the lack of inventory, price appreciation and press that has been surrounding the Fed’s projected increases in interest rates this year have been making it difficult for buyers to find a suitable home, much less close on one successfully. It’s hardly news but still worth pointing out that buyers are competing with many other buyers for well-priced homes, and the vast majority of listings are closing over asking.

What this equates to in many instances is that a buyer finds a home near the top of their price range. The result of the subsequent bidding war and negotiations is often a contract price that is substantially higher than the amount the buyer was approved to borrow.

In this situation, if the required appraisal scheduled by the lender comes back at an amount that is lower than the contract price, the buyer will suddenly have to face unsettling news: that they will have to come up with significantly more cash than they anticipated or have the home fall out of contract and forfeit their due diligence money.

To be competitive, most agents are advising buyers to offer substantial due

diligence fees. These fees go toward the purchase price if the buyer is able to close successfully and are like a convenience fee for sellers, who get to keep the funds if the deal falls apart due to the fault of the buyer.

In prior years, due diligence fees were often just a few hundred dollars. Now that they are often in the thousands, it’s easy to see why a buyer would not want to risk losing the money.

Luckily, we are able to adjust the loan-to-value ratio in most situations so that the buyer does not have to come up with significant added funds to keep the deal intact. So, in the case where a buyer is putting down 20 percent on a 30-year fixed rate mortgage, then suddenly gets the awful news they will have to bring more funds, we can change the down payment amount to as low as three percent, for first time buyers, or five percent for most others.

The result is typically a very minimal impact on the buyer’s monthly payment, very insignificant in comparison to the pain of forfeiting thousands in due diligence fees and the inconvenience of having to start all over in the home search process. This would allow the buyer to hold onto most of the funds they had saved for the 20 percent down payment to use for repairs, renovations or even a vacation.

All of us are committed to do everything we can to help our buyers find a home and close successfully. With that in mind, we are a local team that works with local appraisers—the idea being that locals understand the nuances of their market better than anyone and have a vested interest in seeing its continued growth and success.

WILL MULLINIX Mullinix Mortgage Group Born and raised in Wilmington, Will Mullinix has been originating residential mortgages since 2003.

Mullinix Mortgage Group is a trusted local lender, backed by an independent mortgage company with more than 20 years in the industry. Will has procured over 2 billion in closed loans in North and South Carolina. For more information or a confidential, no-obligation consultation, call 704-332-5072, email Will@ mullinixmortgage.com, or visit mullinixmortgage.com.

910-821-3039 MullinixMortgage.com

THE BENEFITS OF MEMBERSHIP WITH YOUR LOCAL HBA STEV E SWA I N, President.

WCFHBA

WHO ARE WE? Established in 1965, the Wilmington-Cape Fear Home Builders Association (WCFHBA) is a not-for-profit trade association affiliated with the North Carolina Home Builders Association and the National Association of Home Builders. As the second largest HBA in North Carolina, and the fifth largest Association in the United States, the WCFHBA represents more than 1400 members throughout the Cape Fear region. As a member of this association, you are viewed as our extended family. A family of suppliers, finance professionals, tradesmen, builders, real estate professionals, and many others who work together to keep our region strong. Nearly every home built in the Wilmington region is built or touched in some manner by a member of this association.

BEYOND NETWORKING, WHAT OTHER TYPES OF BENEFITS DO I RECEIVE BY BEING A MEMBER? As a member, your benefits are vast and tangible. They range from business-building resources to moneysaving discounts to an effective grassroots network that helps shape the views of our elected officials and lawmakers. Our 3-in-1 membership provides every member with a strong foundation to be noticed, connected, and heard across many different spectrums. We position ourselves to be included in the decision-making

process on legislation, regulation, and other issues that affect your bottom line.

Whether it be related to a natural disaster, pandemic, or daily operations, the WCFHBA stays in constant contact with the regulatory agencies, policymakers, elected officials, and state and national HBA leadership to keep you up-to-date.

Members have access to our exclusive rebate programs and can save hundreds to thousands of dollars on anything from services to truck rebates to discounts on affordable workers compensation insurance through our partnership with Builders Mutual.

HOW DOES BEING A MEMBER FURTHER MY EDUCATION AND THE FUTURE OF THE HOME BUILDERS ASSOCIATION? As our industry has grown and evolved, it is no secret that education and professional development are key components to our members’ success. Staying abreast of the latest code changes, supplier changes, and technological advancements in construction is paramount. The Association serves as a key education provider and can deliver all the required courses needed to fulfill the eight hours of continuing education that North Carolina General Contractors are now required to take.

The future of our industry is rooted in cultivating new leadership through our workforce development initiatives.

The Paul Gregory Foundation was created many years ago to serve as the philanthropic arm of the WCFHBA to help advance our industry by partnering with local schools to expose our area’s youth to the

construction industry, helping local charities, providing scholarships to deserving students, and participating in community outreach programs.

The WCFHBA recognizes the link and has seen the direct result of investing in our future; to date, the WCFHBA has awarded well over $40,000 in scholarship funding to deserving students and applicants who have enrolled in construction and vocational programs in the Wilmington region.

HOW DOES MY COMPANY GET IN FRONT OF CONSUMERS AND OTHER MEMBERS? We host over fifteen different events throughout the year with our largest event being our Annual Parade of Homes™. The Parade showcases the craftsmanship, diversity, and quality of the region’s premier homes.

Consumers have the opportunity to explore homes, get to know builders, view home descriptions, view photos and floor plans, take 3D virtual tours, and see the latest in construction, designs, and furnishings.

We work to provide connections for our members, and each year we publish the Cape Fear Buyers Guide.

This guide displays our members and their primary business category to our entire membership, and over 18,000 copies are distributed throughout the Cape Fear region.

910-799-2611 wcfhba.com

SOUTHERN TRUST MORTGAGE OPENS NEW BRANCH IN WILMINGTON, NC

S

outhern Trust Mortgage (STM) has arrived in Wilmington!

If you’ve followed our brokerage, you would know that we pride ourselves on ‘making home happen’ in a simple, creative, and consistent manner, all while spreading our roots along the Eastern United States.

Recently, we announced the opening of our new branch here in Wilmington, North Carolina. The Wilmington office is the latest to join our company’s branches across our central region, and is led by Area Manager, Blair Young NMLS# 450501.

Blair Young has years of experience in the mortgage industry. As a seasoned loan officer, Mr. Young specializes in many home loan programs including first-time homebuyers, FHA, VA, and conventional loans. He has built and nurtured lifelong relationships with clients through their home purchases and refinances and is well equipped to lead the Wilmington team.

“I am so excited to be a part of this dynamic, and hardworking team. I can’t wait to see what we will accomplish together here at Southern Trust Mortgage.”

- Blair Young, Area Manager The Wilmington branch members will include Dale Lacy, Loan Officer NMLS # 589360; Erin Pierce, Loan Officer NMLS #1104850; Courtland Parnell, Loan Officer NMLS # 1401188; Wade Coble, NC/SC VP of Business Development NMLS # 86018; Libby Tamson, Loan Officer NMLS # 118005; Barbara Dahle-Shaw, Loan Officer

NMLS # 106835; Whitney Sanfilippo, Loan Officer Assistant NMLS # 1109325; Megan Barclay, Jr. Loan Officer NMLS # 1636517; Kelly Barnes, Production Assistant; Evan Young, Production Assistant; and Amanda Schedler, Production Assistant.

“Southern Trust Mortgage is thrilled to open another branch to serve the Wilmington community.

Our continued growth and success are a direct result of our outstanding customer service, from our clients to business partners in the communities in which we serve.”

- Jerry Flowers, STM Founder & CEO The STM Wilmington Branch is located at 1613 Military Cutoff Rd. Suite 100. Wilmington, North Carolina 28405. Visit their webpage at https:// www.southerntrust.com/wilmington/ to

check it out!

Southern Trust Mortgage is a mortgage lender founded in 1998 with the mission of making the home buying process simple, creative, and consistent.

For more than 20 years, Southern Trust Mortgage has served more than 70,000 customers of all different needs and backgrounds If you are in the market for a new home or would like to contact a loan officer, please visit http://www. southerntrust.com.

Southern Trust Mortgage is an Equal Housing Lender - NMLS 2921

SouthernTrust.com

(800) 748-2147