Asheville ECO-GREEN Real Estate

As I read your BLOGS, it occurs to me that many of you chose to practice real estate because you can use a former career experience and background like me. , I'm a REALTOR ®  -business person-educator-author-poet-eco-savvy person-web fancier and etc, . . .I do use this far-ranging mix in my real estate practice every day.

There are probably a number of us here at Active Rain who are putting various backgrounds to good use. However, I may be an “odd duck” even in this crowd (I'm smiling) because my hobby is applied systems theory.

Systems theoryAccording to Wikipedia, systems theory is an "interdisciplinary/multiperspectual field of inquiry that studies the theoretical and actual properties of systems as a process by looking at it in terms of relationships from which emerge new properties of wholes."   Now here's what this means to me - I get to have a blast applying what I know of systems theory to the practice of real estate. Here, complex real-world systems help to explain the basic structure of optimal methods of regulating a behavior, either to maintain stability or to drive toward a desired goal (successful real estate transactions.)  

It has to do with navigating successfully from Point A to Point Z, such as  getting myself and my team to a 100% Successful Closing Event Track Record and HAPPY Referring Clients!

I quote one of my great heroes, William McDonough,   “… the  world-renowned architect and designer and winner of three U.S. Presidential awards: the Presidential Award for Sustainable Development (1996), the National Design Award (2004); and the Presidential Green Chemistry Challenge Award (2003). Mr. McDonough is the founding principal of a design firm practicing ecologically, socially, and economically intelligent architecture and planning in the U.S. and abroad.

Says McDonough:

“I believe we can accomplish great and profitable things within a new conceptual framework—
one that values our legacy, honors diversity, and feeds ecosystems and societies . . .                                          
It is time for [us to design systems] that are creative,
 abundant, prosperous, and intelligent from the start."  

What I look for and have found when I read your material at Active Rain is that creative, intelligent star-sparked spirit. Please talk to me about your ideas for a new conceptual framework—one that values our legacy, honors diversity, and feeds ecosystems and societies.

UPDATE: William McDonough recently was asked by Brad Pitt to work with him and his team to create Green-Built homes in a healthy community...Lower 9th Ward  in New Orleans...

Information on this project that is the "phoenix" of   Hurricane Katrina  check HERE

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I try to write a short essay or two every day. I have been doing this for at least a decade. Sometimes I work on my poetry. This takes WAY longer. For anyone who attempts this art form, who is not blessed with The Gift, my heart goes out. You wake up in the middle of the night with ONE word that insists on inserting itself into your poem, and that changes the entire energy of the verse. Oh well. Maybe that's why you will notice I am wrtiing essays late at night, because once the Muse wakes you up in the middle of a succulent dream, insisting that you must add that one word, she departs leaving you wide awake and essaying. 

All this got me wondering...Maybe I should try to write day essays. No better time than the present. Today it's pouring here in Asheville. Great day to take some time off. So, follwoing my own sage advice, I wrote today's essay for Active Rain...e a r l y.

I wrote a great essay and posted it. Then I got this!

 
The big red-lettered announcement that it wouldn't be counted.
Only 10 essays a week will be counted. (new rules)

OK! I don't care, I will post my great essay on how come real estate professionals need to know about GREEN STUFF. I don't care about the Points! I care about getting the word out to my colleagues. BUT wait a minute. If I value what I have to say, and I think YOU who read what I have to say might value it, shouldn't I refrain from posting this amazing peice until Monday? when it can get the credit it deserves? Isn't this a test of how I value myself?

What if I applied this lesson to my real state practice? Shouldn't I NOT work with people who do NOT value me and what I have to say? A Relevant Topic this week here on the Featured Side. http://activerain.com/blogsview/17188/-Murphy-s-Law  What kind  of Muse hangs around during the day, anyway?

Here's what I want to know...Can I still get a STAR?  if anyone happens to read this, can you still give me a star?

I think I shall return to my nighttime ramblings. I'll save the non-pointed days for rants...and HUMOR.

See ya' around "stary-stary" midnight.

Mysteries abound in Buncombe County, North Carolina where I make my home.

The Cherokee have lived in this area
for a very, very long time, certainly longer than the Scots-Irish and other European immigrants.

The Native Americans say that they were NOT the first ones here, however.

One great-grandmother told me that her Mother’s Grandmother told her strange tales of tiny white men with 'almond shaped eyes' living in this area long ago.

The oral tradition coincides with Native American Crowand also early adventurers such as trappers and members of
military survey expeditions who found tiny graves here and there throughout this area.

OK. Tiny white men with 'almond shaped eyes' ...no wonder Mysterious Buncombe County (Greater Asheville Area) is a thriller!  

Seems like everyone prizes this land.

• Take a look at this link. If YOU l spot any tiny white men, let me know.
• Live-Photo.com  Asheville Downtown  
  - Live Image of Asheville Updated every minute.  

Copyright © 2007 All Rights Reserved  Asheville ECO Real Estate: Trends, Legacies & The Home Place Greenolina

In an effort to encourage U.S. cities to achieve independence from foreign and environmentally harmful energy sources, fourteen (14) US cities have, as of August, 2006 signed on to the Energy Freedom Challenge      These Fourteen Founding Cities, aka  America's Race to Independence through Renewable Energy are Sacramento, Albuquerque, Eugene, Ann Arbor, Boulder, Santa Barbara, Santa Monica, Alameda, Cuyahoga Falls, Willits, and Moab.

You will notice that our Beloved Asheville is not  on this list...YET...
However, we have an incredible City Council (see photo)

and we are hoping we can let them know how much we would like to participate in the  Energy Freedom Challenge  for the Year 2007. Pictured here are Mayor, Terry Bellamy, in red, Councilman Brownie Newman, Councilman Bryan Freeborn, Vice-Mayor Holly Jones,   Councilman Jan Davis, Councilman Carl Mumpower and Councilwoman Robin Cape 
http://www.robinforasheville.com/  who on her web site asks

Interestingly, if you compare the population of the 14 cities (about 4,000,000) to the estimated number of voters in the 2004 Presidential election (about 122,000,000)  a swizzle reveals itself.  For swizzle hunters who like to predict future real estate property values based on trends in the marketplace, you will be interested in the growing percentage of property owners who are getting excited about saving energy and money. If so many communities are  aiming to get over half of their electricity needs met by using “clean energy” resources –  wind, solar and bioenergy –by working together with municipalities, consumers, government, energy providers, the trend is apparent.

Yes Indeed!  GREEN is HOT !
To be prepared for the swizzle, I offer this to my real estate professional colleagues:

The Center for Real Estate Development--University of North Carolina's Kenan-Flagler Business School--“The Center for Real Estate Development is the only business school real estate program specifically focused on helping real estate development leaders of today and tomorrow learn to create and manage the built environment in ways that ensure its long and sustainable future. Education offerings include finance and capital markets.”

For members of the community, you can enter your city in the Energy Freedom Challenge here :

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Edited...Please note  Councilwoman Robin Cape's timely attention to the energy challenge. Cape says,  " Please join me this year in my pledge to play a role in encouraging Asheville to change 1000 light bulbs as part of the ENERGY STAR Change a Light, Change the World Campaign ." She comments below..

One of my clients was in the market for older homes last year, but she was concerned about how these homes would stack up in terms of their home energy rating. As part of her investigation, she made it a point to discover if a home she might be interested in had a home energy rating. (HERS)
Knowing that the home energy rating evaluates and measures the home’s energy characteristics, she could then easily compare the energy costs for the three or four homes she was considering.

A local Asheville company, Home Energy Partners had told my client, “The HERS rating is so accurate that the mortgage industry will actually loan you more money if it is used to make cost-effective improvements to your home. "

"Up to 15% of a home’s appraised value is available for every home that is bought or refinanced,”  he explained. She checked THIS  out, so she knew what was involved. The home energy rater inspects the home and measures its energy characteristics, such as insulation levels, window efficiency, wall-to-window ratios, the heating and cooling system efficiency, the solar orientation of the home, and the water heating system. The rater gathers data and uses software to calculate the results and then convert those results into “points”—the higher the points, the more favorable the rating.

As we narrowed down the homes my client found interesting, a bright “painted lady”, a Victorian on a shady Asheville street became a contender. However, we discovered that this home had only 57 points. That meant that this home was “below average” in its home energy rating. Even though there had been quite a lot of remodeling done on this property, my buyer opted for another Victorian home that had received a rating of 85, or “efficient”.

There are so many things to consider when you are in the market for a home, whether it is an older home or a brand new one. In terms of energy efficiency, REALTORS® can be a “resource to the resources”, experts, such as HERS raters  who can make recommendations . A home is a big investment. We are here to help make it a positive one for you.

Copyright © 2007 All Rights Reserved  Asheville ECO Real Estate: Trends, Legacies & The Home Place Greenolina

In Asheville, N.C., with our population of about 80,000, currently 34 active,
standing boards and commissions serve in the capacity of addressing
the complexities inherent in our vibrant city. There are any number
of very viable pathways to sustainability.

You can look at  culture, population, environmental conditions,
and available technology.

You can research the rankings explain how people’s quality of life
and city economic and management preparedness
are likely to fare in the near future...

But first you may choose to look in the mirror.
Here is a link where you  can calculate your personal environmental impact
and discover ways of reducing that impact.

Take the Ecological Footprint Quiz

Our real estate practice thrives not only because we are in the hugely desirable location, Asheville, North Carolina, but because we offer extensive service to our clients. That service extends out to the community.

Back in 2006...we decided to open a portion of our building as a community meeting and learning place.

Our lively group of real estate professionals began talking about the benefits of an educational forum, and this has turned out to be an exciting new direction
at The ECO-STEWARD Firm here in Asheville.

In 2007, we have utilized our new facility,
the totally renovated 1923 Craftsman brick bungalow,(seen in the photo I took to the right)  as more than a place to meet clients.

We have invited guest speakers, artists, and culinary pros to share ideas, creations and good-eats with us. Our clients and co-workers share our interest in working for positive futures.

 We expect that 2008 (and beyond) will bring more opportunities to enjoy a sense of community.

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Copyright © 2007 All Rights Reserved  Asheville ECO Real Estate: Trends, Legacies & The Home Place Greenolina

Exciting new grants that real estate professionals as well as those in the sustainable community
will want to note currently are available. Having to do with Sustainable Community Innovation these grants support creative cooperation of new community development strategies
with sustainable agriculture practices.

The tap root of quality of life throughout the global community is vigorous agriculture…strong farms, farming enterprises, interactive communities.  Innovation and dialogue can help find connections between all of these
that will lead collaborative problem solving. ECO-friendly real estate p[professionals, whose focus is the "green" market niche   are in a position to act as a liaison.

We could enhance sustainable community development while serving our clients. According to Sustainable Agriculture Research and Education,  their "program has helped advance farming systems that are profitable, environmentally sound and good for communities through a nationwide research and education grants program." In North Carolina alone there exist 7 such programs (see chart from SARE below)

To find such projects in your area go here

Markets stats say that a trend toward sustainable housing , the so-called "Green Market" is assured. Possibly this has a connection to "a common good”, and/or possibly we are looking at dollar opportunity in the form of a growth industry similar to  the computer industry 20 years ago. That industry produced more jobs, more income, a healthy economy. If I were to predict the direction of 2007 and beyond, I would be looking  in the areas of environmentally conscious endeavor.

So, I'm looking out my lace-curtained window
realizing it is not always easy
to predict the "true colors" of the future,
and thinking this could be mighty interesting.
How will this play out in terms of Western
North Carolina and Asheville's real estate market….Looking down the road, I know I have to be informed about ECO-friendly choices.  There is a BIG challenge in getting up to speed in the ECO-friendly real estate market. There's a LOT to learn!  1.You have to consider results you might expect . 2. You have to think about what really works for you and your clients…get your mind and heart involved. 3. You have to look at  what rewards you think actually will show up, and on what levels...

However...once you get that all organized, you can foresee that people will be excited about
energy efficient homes and healthy living spaces..

so in in the New year, as I do my Annual Evaluator I intend to add the following:

** I am going to write down, just as they come to me, my favorite things to do

** I am going to..…and prioritize it. 


*** Then I am going to use my intuition to do some serious... evaluation of the colors of the North Carolina real estate market in 2007-2010. How "green' do they look to you?

Greenthings in the home can be TOXIC to  pets!

I have written about Indoor Air Quality and shared a list of the Top 10 plants
 that actually have been shown to improve breathing air at home.
A couple of the plants I mentioned here
http://activerain.com/blogsview/green-as-green-can-BE-you-see-part-3-top-1-plant-remedies-?11572
actually groove on off-gassing chemicals from new carpets, for example.

Luckily, a comment on this very BLOG may have saved the life of a number of pets!
THANKS  to Charles http://activerain.com/action/lasvegasrealestate who wrote,
" I wouldn't recommend Lillies to people who own cats. They are toxic to them."

–Charles, your comment sent me out in a flurry of activity to do some research...
right after I removed my three Peace Lily plants over to the Office
(where we can use a little "Fresh Air "from time-to-time )
 and out of the way of my furry companions here at home ...

Of the Top 10 plants that promote indoor air quality ..get THIS!
six (6!!!) are toxic to animals! 

I used to delight in Peace Lily giving as a Welcoming Gift!
(Watch out for Easter Lilies, too) No more. I have been visiting, BAMBOO plant
in hand for the past month, checking in with clients to whom I gave those green goblins
hoping not to hear sad news.Fortunately, the assorted feline and canine companions
are still with us.

Here is the Top 10 List I Offered
….ONLY the TOP FOUR(4) or OK…*
all the rest are TOXIC! 

1  *Areca palm       
2. * Reed palm
3. * Dwarf date palm
4. * Boston fern

TOXIC!!!!
5.  Janet Craig dracaena  (do NOT get Dracena Marginata! That IS toxic)
6.  English ivy 
7   Australian sword fern
8.   Peace lily
9.   Rubber plant (all parts)
10.  Weeping fig

No wonder Q had a runny nose!

Research: http://www.sniksnak.com/plants-toxic.html  and   http://www.sniksnak.com/plants.html

Although I am a Land Specialist in the Asheville and Greater Asheville, N.C. area — (I focus on conservation developments/Preserves such as Creston Preserve and the ECO Horse-Friendly Walnut Creek Preserve 
as well as other “ECO conscious” investment real estate)— at least once a quarter I amble on over to take a peek at what’s happening in residential sales in our area here in Western North Carolina. I don my (green) glasses and wander through the stats and then start a dialogue that is usually VERY interesting!

Here's the scoop from my research: Residential Sales in the Asheville and Greater Asheville Area –
First Three Quarters+ 2006

North Carolina continues to see a rise in-the amount of homes sold in 2006. Sale prices continue to climb and the average
number of days a house is on the market has decreased. All of these indicators show that the real estate market in  Western North Carolina is strong."                                  (page 6, Real Estate Weekly -October, 2006)

            In the City of Asheville alone, (pop about 75,000)  a total of 1133 homes listed  by January 1, 2006 closed by October 20^th.  In the Greater Asheville Area,  2158 homes were sold from Jan. 1 through October19, 2006. For those following the environmentally-friendly stats: Seven (7)  of the homes were Energy Star® rated. That statistic should change toward the positive in 2007, since we now have forty-one (41) Energy Star ® rated homes currently on the market!

A little side note ...     It appears that the interest in GREEN BUILT homes is at least in part
 due to the energy given in the Asheville community by human components!

 ECO certified  REALTORS®  at the Asheville Board of REALTORS® and the WNCGBC -- with over 100 members an organization that has launched “dozens of educational events, tours, publications and workshops to make the local built environment more sustainable. The council was responsible for implementing the NC Healthy Built Homes program, a statewide building performance rating system that assists homebuilders in establishing truly green, high-performance, and low impact homes throughout the region.” reports Asheville's Mountain Express.

More STATS & Good Energy: With all this “good energy” it appears that we are holding strong here in the Mountains.
Despite some difficult sectors of the market in other localities in the USA, our area is solid.In fact, the average sale price has increased since last year, at $259,964 for the third quarter in '06. It was at $237,549 in 2005, according to WNC Regional MLS reports for the same time period. Looking back just to August, according to statistics compiled by the North Carolina Association of REALTORS®, 13,582 residential units were sold. Total sales dollars for the month were $2,980,517,337 and the average existing home sales price was up 1 percent to $219,446. 

More than 96,600 units have been sold on a year-to-date basis. 
The average sales price increased 3 percent over the same time period to $214,592.  

NOW we get to a VERY INTERESTING STATISTIC ...
According to Kelly Leach, NCAR Communications Specialist. 
ninety-two (92) percent of N.C. homebuyers
use real estate professionals as an information source
during the home search process,
making real estate agents the most widely used source,
even over the Internet.
(75% of all N.C. homebuyers used the Internet in their home search.) 

 These findings show that the “hype” about technology’s potential
to replace REALTORS® in the home sale transaction is just that….  

And what about another troublesome myth… The HOUSING BUBBLE? Here’s what the written statement of the NATIONAL ASSOCIATION OF REALTORS® submitted to the Senate Banking, Housing and Urban Affairs and Subcommittee on Economic Policy just last month concerning the “Housing Bubble and Its Economic Implications” reports:

NAR’s president, Tom Stevens stood up  to let it be known
that there is “not a national housing bubble…”
http://banking.senate.gov/_files/ACFE061.pdf 
September 13, 2006

All in all...looking through my green glasses has been promising in 2007!

What do you see?

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I've talked/written about the how focusing on a particular market niche can work for you as a real estate professional. In an earlier post I even asked specialists to tell me your experience and/or expectations about results might be expected  and what really works for you…I wondered about what rewards would show up,and on what levels you found them...

I made a list the other day of real estate specialists. I've added a few since then:
Income properties, condos ,  second/vacation homes,
resort properties, “upscale” properties, luxury residences, new construction,
and those based on demographics— for example, the 55+ set.

Now I'm thinking that in the end it's all about a process for honing in on that particular speciality
that works well with you . . .and what YOU yourself prize and value including in your life. SOI began exploring the "how to" of getting there ...and I've found some very direct steps!

• Step One:
  Take 20 minutes to write down..
  AS THEY COME TO YOU…
  what your favorite things to do ARE…
  (Try to get about 100 or more.)
• Step Two
  Retrieve your list of 100 Favorite Things to DO
  …and prioritize it.
  This should take you about half an hour.

Here is the first section of my example list, prioritized:

1.      Learning new things that interest me
2.      Working on team projects
3.      Creating healthy living spaces
4.      Being part of a group of people interested in quality of life and community
5.      Saving waterfalls and viewsheds
6.      Holding a safe place for tons of $$$$ while having FUN
7.      Exploring back roads
8.      Finding out how I could possibly walk the Appalachian Trail
9.      Sitting around with my friends looking at the sunset from my porch
10.    Walking in nature
11.    Dabbling in writing poetry
12.    Doing HUGE canvases in broad stokes in fast-drying acrylic...

like this one  I created not too long ago 

• Step 3. Check out this  personality quiz… Maybe the fact that you can find it at “OK CUPID”… 
     will bring the " romance " back in to your real estate practice. =)
    Check it HERE

Copyright © 2006 All Rights Reserved  Asheville ECO Real Estate: Trends, Legacies & The Home Place Greenolina

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In the past week or so I’ve had the happy opportunity to visit a number of BLOGS here at Active Rain. I have found a flourishing community and many interesting items and tidbits  ...and also some amazing...I mean totally AMAZING photographs. Take for example...Linda Davis’ use of an autumn photo in New England…http://activerain.com/blogs/lindadavis  or almost any of Colleen Kulikowski’s photos at
http://activerain.com/blogs/tdnfcpk  (scroll down for my favorites).

If you have favorites, clue me in, OK? I LOVE good photos and think that placing importance on them ihas value in our work.  Well all this imagery  got me thinking about visual impact as it relates to the practice of real estate. Here, as sure as the neighbor’s Dalmatian has a distinctive coat, the phrase,
"A picture is worth ten thousand words" has meaning. Especially interesting to me
is the notion that presentation REALLY counts!.

What’s a PHOTO Really Worth?

A recent article in Science Daily http://www.sciencedaily.com/releases/2005/06/050603055956.htm reports that how visual images are presented influences consumer response.Consistency of the picture and copy creates positive inferences.Authors of a consumer research study, Laura Peracchio (University of Wisconsin-Milwaukee) and Joan Meyers-Levy (University of Minnesota) have given us this significant  heads-up.

According to the article in Science Daily ….  
“This study is unique to the current research of consumer behavior
because previous research has not delved into how consumers respond
to visual images and what implications that response has on marketing of products.”

Since we know that 70-80% of our clients have already done research online
before they come to meet us, the above research underscores the validity
of investing energy in creating/providing quality photo presentations.
Case in point:  Look at the listings on your MLS. Are any more attractive to you than others?

At our brokerage, we have started a collection, a gallery of our favorite shots….
(some of my personal favorites are already on my BLOG, especially here:
http://activerain.com/action/blogs/janeanne?page=4    scroll down)  

Since the title of my BLOG is GREEN is HOT
here are a couple more that may/may let you know what I define as "hot"...(wink)

Autumn in Asheville

Market niche…how do you get to one that really will work for you?
What if you are a real estate professional putting in your hard work at  a brokerage
…doing the Tuesday 7:30AM meeting…the caravan…the floor duty…
and paying your dues to NAR, your local Board…and doing your continuing education…
and paying your E&O Insurance…in addition to being of service to random buyers/sellers
who find you through the brokerage in addition to your referral clients /|\
…And you are sitting on floor duty one very quiet day
wondering where the customers are…and just musing about what you can do
in terms of outreach that resonates with what matters most to YOU…what if…..

What If

What if you picked a specialized market that really works for you?
What rewards would that produce? On various levels?
What kind of niches would  attract you?…
          Income properties?
          Condos for elderlings? 
          Mountain homes?
          Luxury residences?
          New construction?

And ..so long as you're mulling all this over.....what about demographics? ….
         Spanish speaking,
         Baby Boomers? 
         First-time investors?

So you sit and  come up with a small, but promising list of potential niches…
(BTW, I’d be interested to hear what you would add…)

What if you were to target specific property types?
What steps would you take to make that happen?

Over the years, I have come up with a strategy for pinpointing what motivates me.
Possibly it could work for  you.    Here is the Step One of a formula/process
that has been popular with my broker pals....

Step One:
Take 20 minutes to write down.. AS THEY COME TO YOU…what your favorite things to do ARE…
(Try to get about 100 or more.)

EXAMPLE…here is a sampling from  my own list from a few years ago:

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Have you ever wondered what the secret of longevity in the practice of real estate IS? I have. I have spent many long hours pondering how to make my career prosper (and me , too) and have come to the conclusion that there are uncommon advantages in capturing unique the market niche, especially in my home town of Asheville, N.C.

First of all…a question…how do YOU pronounce “niche”?...Is it “neeesh”..or “nitch”..Last week I distinctly heard Candace Bergen pronounce it “neeeeesh” on Boston Legal…Oh well, it matters not how we pronounce it, really.. because the point is, finding a niche that works for you as a professional real estate person is , I think one of the most important aspects of success in this business. …Whether a property is commercial, residential or, my favorite, LAND/ acreage it is special in one way or another...

But there are points beyond special.

Looking at various market niches… the Over 55…the Second/Vacation…the Hospitality…all have a certain “zest” that’s like home-made pizza….Perhaps the next big thing is GREEN. Look at the number of large and professionally attractive web sites, for example. Here are just a few environmentally-conscious organizations ....all related to the practice of real estate…

 U.S. Green Building Council

Environmental Building News

EPA Green Building

 Of course my all-time favorite, being that it is right here in Asheville, is the Green Building Council. http://www.wncgbc.org/  If you want to see some remarkable work, visit the above site! AND notice how many REALTORS® are members of the Green Building Council. That tells quite a tale right there. Add to that the fact that, last count, we had about 300 REALTORS® who had been through the initial ECO Agent® course leading to the NCREC designation of ECO certified consultant….Popularity of the 36-hour course http://www.abr-nc.com/ECO.html may, in part, be due to the influx of investors/buyers who prefer environmentally-sensitive properties here in Asheville.

I checked out a few stats on our MLS the other day. 

In the $200-600K range (residential) there are 35 Energy Star ® rated homes on the market this month… 6 other properties have solar heat.  I am willing to wager with anyone who comments here that this number will triple by 2007. How about we wager a pizza when y'all come to visit Asheville?

I  talked with a 71-year old "baby boomer" investor today.. a tiny, white-haired, Dresden Doll of a Lady who actually told me… janeAnne I just have to have “…a healthier, safer, more comfortable, sustainable, energy efficient, and environmentally-responsible home…”

Should we chalk that up to the “wisdom of the elders”?...or is GREEN HOT?

These days it seems that more and more folks are opting to exercise a “Green-Sustainable” 1031 Exchange…
This is the first time quite a number of them "ECO conscious" investors have taken an interest in this tax advantage. For the Exchange to work, it is of paramount importance to have a team of professionals on hand.

One of the essential team players in the 1031 Exchange is the  Qualified Intermediary( QI) . 
S/he is your "flag-person" during the transaction. That's why it's good to interview a number of QIs to determine if this is one person who will work well with you and your 1031 investment team.

Qualified Intermediary Interview Questions:                                                 

_____ Is the QI/Accommodator a bona fide member of the
FEDERATION OF EXCHANGE ACCOMODATORS (FEA)? http://www.1031.org/

_____ Does the Qualified Intermediary hold a Certified Exchange Specialist™ designation? http://www.1031.org/certification/index.htm

____ Is the firm bonded by an insurance company?

_____ Will the firm provide a copy of the bond?

_____ What is the Qualified Intermediary’s professional background?
(Attorney? CPA? with 1031 experience?)

_____ Will the QI take responsibility for losses if a mistake is made
or the transaction does not qualify with the IRS?

_____ Who receives the interest on the escrow account?
(The QI may quote a low fee as a trade-off for receiving the escrow interest.)

_____ Is the QI accessible not only to you, but also to your real estate professional?
Is he willing to meet with all members of the team?including REALTOR® ?face-to-face?

_____Since other experts will be involved in order to assure due diligence,
review documents, handle financing…is the QI a team player?

____ Will an adequate paper trail be created?

_____ Is the QI accustomed to handling the type and size of transaction to be done?

_____ Does the QI have a specialty? Sustainable properties? Agricultural land?

Sustainable Agriculture Funding Opps http://www.southernsare.uga.edu/scig_page.htm

 Grants to fund projects that link sustainable agriculture to rural community development. SCI grants in partnership with  the Southern Region Sustainable Agriculture Research and Education Program, the Southern Rural Development Center and the Appalachian Regional Commission. Due date: November 28, 2006

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7 "DON'Ts" 1031 EXCHANGERS Should Know

Over my years as a REALTOR® in the Greater Asheville, NC area, I have seen strong appreciation in the real estate market. 

During that same time,
I also have noticed with interest the increasing number of clients  who are approaching creative-retirement ...the famous (or maybe infamous) "baby boomers".

 I don't know if there is a connection between the baby boomers and 1031 investing in Asheville,  but,  just in the past few years, I can tell you for sure that  the demand for information about 1031 Tax Deferred Exchanges under Carolina blue skies has "flowered".

( Carolina blue skies and flowers photo,
by Green-o-Lina)

Also, I notice a trend  in that more and more my clients want to know about 1031 "green" or ECO-friendly investments and whether they can qualify their vacation/second homes for an Like-Kind Exchange.

Although I have done many successful 1031 Exchange transactions, and have taken advanced training in this subject area I am NOT an expert on the intricacies of the IRS tax code. I like to refer my clients to those who are experts for details about the mechanics of the 1031 Exchange, especially in terms of Vacation Homes.

One thing I know for sure--In order to conduct a valid 1031 Exchange it generally is necessary to have such property rented to unrelated parties for a period of time both BEFORE and after the exchange, for example.) In making sure a property actually qualifies for the 1031 requirements INTENT is all-important.

In this regard, there are many details that a Qualified Intermediary  explains and handles.Please do contact a QI before investing.

THE 7 DO NOT DO LIST    I can suggest that investors DO NOT :

1) inadvertently indicate in a Contract that you intend to live in the property,
2) sign a listing agreement soon after its purchase,
3) apply for “owner occupied” financing on the property,
4)  move into that property within a specified period of time,
5) ignore rental history (it must be rented by its tenants for a significant time)
6) claim the "mortgage interest" deduction for the property on yours tax return,
7) treat a 1031 investment property as a "time-share" arrangement.  Section 280A of the Tax Code spells out the Test. Personal use of the property may not exceed the greater of: a). Fourteen (14) days; or b). Ten percent (10%) of the number of days that the property is rented at fair market value to others.

copyright greenolina 2007

The other day, as I mentioned in an earlier poston my BLOG,
a novice “Green”  investor and I were talking about the pros and cons of the 1031 Like Kind Exchange. (

Good info on the 1031 is available at NAR:

She had heard "by the grapevine" and mistakenly believed
that she absolutely had to acquire property exactly like
her relinquished property.

I discovered this as we started to scope out her property options,
and we talked about what they could be. She confessed that she had been distressed about how she was going to find an exact match.

She really was quite thrilled , in fact she gave me a big "thumbs up!" when I commented that a wide variety of properties
can be considered Like-Kind.

Here are some examples:


* A professional office in Manhattan for a mountain cabin with Views or perhaps  land for sale that could be leased back to a farmer or a portion of which could be dedicated to a conservation easement in a town near Asheville.

* A condo in California for unimproved Land with a waterfall in the Asheville area

* A single family rental in Chicago for multi family rental in West Asheville

* Non income providing raw land in Florida for income producing rental property, possibly a horse farm for sale in the beautiful rolling lands near Tryon, NC.

* An apartment building in downtown Detroit for an office building in Up-and-coming Marshall, North Carolina

WHICH would you choose? Check out my poll to your fight. 

Provided the property is initially acquired and held for either business or investment purposes, it can qualify as a suitable replacement property under IRC Section 1031. Also, real properties generally are of a Like-Kind,
regardless of whether the properties are improved or unimproved.  

TOTALLY TRUE: Investors do not have to exchange for exactly the same type of property.

CAUTION: The Section 1031 Code was amended in 1989  rendering property outside the United States NON “Like Kind”.

copyright greenolina 2007

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My clients bought their first house despite the fact that it was a major "fixer-upper" with the added aroma of dog and cat still in the air..  

John (client) is good with tools and fixing things….he and his wife (Cindy) were ready to renovate.  Cindy and John invited me over for a backyard get-together at the house not long ago. It was just a month or so after the closing.

They are making good progress. They had painted, scraped, disinfected, used essential oils…
but still, the essence of cat lingered on.

SO, I have been hunting for remedies.

If you have any good ones, will you let me know? Here's one I found…


AIR FRESHNER: Leave an open bowl of white vinegar out.
WOOD FLOORS: Try vinegar and water or baking soda and water with some lemon in it.

I like the idea of talking with serious Investors...
I am seriously attracted to getting right to the Point.
The 1031 http://www.janeanne.com/resources.asp  
provides this for me and my team.

I like the idea of serious Investors also being serious Stewards of the LAND
...and especially the beloved land of my far-Grandfather here in the Appalachians.
The 1031 Like-Kind Exchange also provides this opportunity.
I like the idea of cooperating with other real estate professionals who are intrigued with 1031s.

Here is a 1031 scenario YOU might like...

Scenario :

Let's say you are an ECOconscious Investor(or your client is) interested in a "simple swap" where you trade 150 acres that you own in North Florida for 150 acres of fantastic beauty we currently have listed here in Western North Carolina. Of course, in reality, it is quite unusual for a seller and the buyer to have exactly the same properties of equal size/value, etc.. So careful attention is in order. ... examples...A tax could be 20% of the gain recognized by the sale due to appreciation of the property on the original cost (basis)...Higher tax rates could be triggered... So, to avoid sticky wickets, we always like to make sure a Qualified Intermediary is close at hand. 

Back to the Scenario: Should you/your client decide to exchange a splendid horse farm in Tryon,North Carolina and purchase another horse farm in Florida, (or vice versa) the Qualified Intermediary can facilitate the exchange and avoid the constructive receipt of the proceeds so you don't end up in a pickle with the IRS.. 

Qualified Intermediary: A Qualified Intermediary is a person (or legal entity) that under the 1031 regulations enters into a written exchange agreement to act as liaison and facilitator during the Like-Kind Exchange. This person (or entity) cannot, absolutely, positively canNOT be closely associated with you...canNOT be your trusted accountant or attorney, canNOT be your favorite sister, a family member, your employees, your Angelic REALTOR, or your investment banker. (I have interviewed numerous QIs to be sure before I refer my clients to  teamplayers of impeccable integrity.)  The QI assures you/your client that rather than selling an investment property and personally organizing the purchase of the replacement property, s/he handles the proceeds of the sal. They go into a special account to control the funds from the sale and the constructive receipt. .thus avoiding triggering capital gain tax.

Now we are cooking with steam. We have opportunity. We have the team, We have the "win-win" communication in place...and we have the glorious dance of investing. 1031=Pure Possibility!

Speaking of Horse Farms..Guess where I was today?

The Equestrian Land Conservation Resource
Horse people have much to contribute to the preservation
of sustainable rural communities and are a caring influence
in smart growth initiatives, where rapidly developing communities
must recognize the value of maintaining natural corridors
that serve the needs of a wide range of interests