Archive for January, 2008
How Two Fed Rate Cuts Impact Your Home Buying Power
January 31st, 2008 Categories: Real Estate Market Trends, Real Estate Tips
Last week the Federal Reserve cut short term rates by 75 basis points. This week they cut another 50 points. What does this mean to home buyers and sellers?
It means you have more buying power than ever before. Mortgage interest rates are already very low. They have been that way for quite a while. 30 year rates under 6% are common now. Many of the riskier products have gone away, but that is probably a good thing.
Combine the low mortgage rates with a larger than usual inventory of homes and life is good for anyone wanting to buy a home in the Raleigh area. Prices have not dropped dramatically like they have in many other parts of the country. But prices never ran up to ridiculous levels either. We never had anything to correct in the Raleigh real estate market.
My wife and I are going looking at homes this weekend. Hey, when the Realtor recognizes it’s a good time to buy, that probably means something. If you need to move, do it. We need to move and we are very confident we will be happy with our decision.
We feel completely comfortable that we will be able to find the perfect home from the larger than usual inventory that is available right now. And we are also confident that our interest rate will be very low, which of course will help us afford more home than we could otherwise.
Want to get started pursuing your dream home in one of the best markets for buyers that we have seen in quite a while? Call me at 919–602–7000 or send me an email and we can talk about how to help you succeed too!
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Are Real Estate Markets Better When Prices Go Up or When Prices Go Down?
January 17th, 2008 Categories: Real Estate Market Trends
Is it better to buy a home when prices are increasing? How about when home prices are falling? Most people have to sell a house to buy another. Stop worrying, think long term, and get on with your plans.
I just read an article over at cnnmoney.com about how based on December data, national housing starts and building permits had their sharpest drop in 27 years. Sometimes you just can’t win.
Remember a few years ago when real estate markets in some parts of the country were increasing by double digit percentages? The traditional media lamented over how the average person was being shut out of opportunities for home ownership.
The problem then was too little supply (think housing starts and building permits) and too much demand. Simple economics drove the price of homes in markets like Southern California, Florida, DC Metro, and many parts of the Northeast through the roof.
Now that demand has dropped off, and builders and developers are reacting by reducing inventory (supply), the traditional media is at it again. Now the problem seems to be falling home prices are threatening the national economy somehow.
Why is everything in the real estate business always a disaster for these people? Prices go up, it’s a disaster. Prices go down, it’s a disaster. What if there was perfect equilibrium? Would that make the traditional media pundits happy?
I think the moral of this story is don’t think about real estate markets nationally and don’t look at them for month-to-month trends. If you buy residential real estate almost anywhere in the county, and hold it for 5-7 years (as most people do), you will make a profit when you sell.
The economically sound appreciation rates for residential real estate are about 3-5% per year. Interestingly enough, that is exactly what the local Raleigh real estate market tends to deliver. Year after year investors and homeowners alike can pretty much depend on this trend for homes in the Raleigh area.
Ready to buy a home, or invest in real estate, in a very stable and reliable market? Click here to search homes for sale in Raleigh.
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New Listing | Bedford Home For Sale
January 16th, 2008 Categories: Bedford, North Raleigh
Almost new cottage home for sale in Bedford
Rocking chair front porch is large enough to really enjoy. Hardwoods on entire 1st level. Family room features a ceiling fan and gas log fireplace. The generous sized kitchen has a smooth top range and upgraded 42″ cabinets. The awesome master suite has a luxury bath with separate shower, garden tub, and raised dual vanities. Each of the 3 bedrooms has its own private bath. The courtyard style back yard is completely fenced. A detached 2-car garage will keep your cars safe from the elements. There is no better value in Bedford!
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Asking Price: $242,000
Sq. Feet: 1805
Lot Size: .07
Bedrooms: 3.5
Bathrooms: 3
# of Floors: 3
HOA/Maintenance Fees: $61/month
Garage Size: 20×20
Subdivision: Bedford
Year Built: 2006
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North Wake Landfill Closing This Spring | Falls River Homeowners Hardly Knew It Was There
January 9th, 2008 Categories: North Raleigh
Falls River property values were never really affected by the presence of the massive North Wake Landfill. A testimony as to how careful neighborhood planning, and a modern landfill, make for a peaceful existence between such unlikely neighbors.
Falls River in North Raleigh has been an interesting kind of experiment for our market. It was one of the first neo-classic neighborhoods built on such a large scale in our area. It was also built right beside of a very large landfill. The landfill was there first, so the developers knew what they were getting involved in.
I’m sure that there were some potential home buyers who were turned off by the whole idea of living so close to the dump. However, several factors made it almost a non-issue.
First, you never could really smell any odor. The technology used made sure that there was no foul smell. Secondly, you could not see it from most of the neighborhood. There were a couple of distant views only in the fall when the trees lost their leaves.
My wife and I purchased a home in Falls River back in 1998 and sold it in 2006. We made a 52% profit on our original purchase and sold our home in 3 weeks! The landfill was, of course, still operational when we sold.
We loved the neighborhood and sometimes wish we were still there. The tree lined streets, the craftsman style of the homes, the large front porches, the parks… I could go on and on. And a very convenient location too!
Here is the average sell price for Falls River homes over the past 5 years
In 2007, 74 Falls River homes sold for an average of $292,982
In 2006, 81 Falls River homes sold for an average of $278,913
In 2005, 109 Falls River homes sold for an average of $265,237
In 2004, 95 Falls River homes sold for an average of $247,527
In 2003, 72 Falls River homes sold for an average of $238,698
If you are thinking of buying in a neighborhood like Falls River, you should call me as soon as possible. Just think what might happen when the landfill is turned into a huge public recreational facility in a couple of years. More on that later!
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Wake Forest Getting New Public Park | Joyner Park
January 7th, 2008 Categories: Wake Forest
Back in 2003 the town of Wake Forest purchased 117 acres of farm land on Harris Road, just west of downtown. Construction will begin early this year on what promises to be a unique destination for local residents.
The park is scheduled to an amphitheater, an outdoor performance space, and a garden area. The performance area will offer an intimate setting for poetry reading and small symphony groups while the amphitheater will have lawn seating for about 1,000 people. Plans for the amphitheater include concerts and possibly the home of the popular Six Sundays in Spring concert series.
The project also calls for the restoration of several existing farm buildings. There will be a stone wall and a log cabin on the grounds as well as three miles of walking trails.
The whole project will be done is several phases. Phase 1 is funded with $750,000 in grants and $3.5 million in bond money.
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Buying a Raleigh Home | 7 Things You Need To Do Between Contract and Closing
January 4th, 2008 Categories: Buying a Home
You’re relocating to Raleigh. We just found the home of your dreams and it’s under contract. What do you need to do now to assure a smooth, stress-free closing?
1. Schedule Inspections
If you’re using me as your buyer agent, we will be looking at our agendas while writing the contract to pick a date for the inspections. We also will be phoning the inspector to find out his availability relative to our schedules.
The standard North Carolina real estate contract was revised in July this year and now several dates have time is of the essence language added to them. This is legal speak that means the date is critically important and if you miss it, there will be consequences.
We have to specify a date in the offer called the inspection date. This is the date by which all inspections must be completed and a formal repair request must be in the hands of the seller, or their agent. The time is of the essence language now applies to the inspection date.
If this date passes and the repair request is not submitted, then the buyer has by default accepted the home in it’s current condition. Don’t pass up a chance to get important repairs made to your home.
2. Apply for Your Loan
The time is of the essence thing applies here too. Usually the best I can get in any given negotiation is five days to apply for the loan. If the seller request verification of loan application and it cannot be provided, they can terminate the contract and keep any earnest money deposit. Serious stuff!
If you are using me as your buyer agent, you will already have been counseled to choose a lender prior to the contract being written. This is just one of many ways to avoid stress during the home buying process, and to protect you from financial damages.
3. Contact Your Insurance Agent
There is no time is of the essence applicability to home owners insurance, but you cannot close without it. And it must be finalized and in the hands of the lender and closing attorney several days prior to closing.
This usually only involves a quick phone call to your agent, so go ahead and make the call sooner rather than later. A good way to remember this is to do it right after applying for the loan. Also, if there are any problems with insurability, we would rather know while there is some time to deal with the issue.
4. Respond to Lender/Attorney/Realtor Requests Immediately
You will get numerous requests for information and documentation after we are under contract. Most of this will come from the lender and closing attorney. Respond promptly. It keeps things moving along and helps assure that closing will occur on the scheduled date.
5. Schedule Movers and Leave Wiggle Room
Every attempt will be made to close on time. If I’m your agent, and especially if you are using a lender and closing attorney that I know and trust, these people will go to great lengths to discover problems and possible delays far in advance of closing day.
Having said all that, there still remains a possibility that a delay in the closing date could occur. The opportunity for this seems to increase with new construction. Try to avoid scheduling the movers for one hour after closing. It’s actually best to schedule the movers for the next day and to have a contingency plan in place with them to deal with any delay beyond that.
6. Schedule Utility Transfer
This can be done at any time and should always be completed at least one week prior to closing. Call the utility companies and tell them you want to transfer service into your name. This avoids any interruption in service and may save you a connection fee.
7. Put Closing Funds in Local Bank
You will have to bring a certified check to closing. Go ahead and set up a local account, if you do not already have one. Transfer sufficient funds into the account to cover the estimated closing costs, plus a little extra.
Don’t get yourself into the stressful situation of having to have a check sent over night from an out of state bank only to find out the amount changed a little bit at the last moment. It is no fun having to wait an extra day to close while a revised check is sent over night, again.
Something NOT To Do
Do not make any large purchases, change jobs, or any other activity that could alter your financial position and possibly cause you to no longer qualify for financing. In most cases, this would cause you to not only loose the home of your dreams, but also any earnest money deposit. You would also be responsible for any inspection, appraisal or survey fees that have already been incurred on your behalf.
Following these guidelines will make your home buying experience a pleasant one. If I’m representing you, I’ll be right there every step of the way to make sure closing is a fun and memorable event. Call me at 919–602–7000, or email me with any questions.
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New Public Outdoor Entertainment Venues Coming in Wake County
January 4th, 2008 Categories: Real Estate News
I just heard three stories about new outdoor entertainment venues coming to the Raleigh area. This has to be good for the involved communities and is certainly something that any home buyer would want to know about.
One is the much anticipated closing of the North Wake landfill and the proposed plans to turn this into a multi-use outdoor facility. This is off Durant Road in North Raleigh and is very near the Falls River neighborhood.
Another is a new park planned for Wake Forest. The little bit I heard about this mentioned a possible facility for outdoor concerts and movies.
The third is supposed to be an outdoor facility near the new downtown Raleigh convention center, which is currently under construction. something was mentioned about concerts and movies here as well.
I’ll investigate further and write an article on each one. Check back soon for full details!
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January Item of Value | How to Succeed When Selling or Buying a Raleigh Home
January 3rd, 2008 Categories: Buying a Home, Selling a Home
What does it take to be successful when buying or selling a home in Raleigh? Are the principles of success the same for buying or selling real estate as they are for success in other endeavors?
In my opinion, the principles for success in the pursuit of any goal are the same. These principles have been tested for centuries and have stood the test of time. This month’s Item of Value is a downloadable document that contains important goal setting information and a proven 10 step process that will lead to success in the achievement of any worthwhile goal.
Every year people from around the world create their list of New Year resolutions. And, unfortunately, each year many of these well intended resolutions fail. Making a list is simply not enough. But the good news is that succeeding in your resolutions is not complicated. It just requires following a methodology and a plan.
It has been said that most people aim for nothing and hit it with amazing accuracy. Most New Year resolutions are as fleeting as a passing thought that has been, at best, jotted down on a scrap piece of paper.
Despite the high rate of failure for New Year resolutions, people continue to make them year after year. Why is this? I think it is because most people realize change is obtainable and they also recognize that it is needed in many cases.
This month’s Item of Value focuses on setting and keeping resolutions, or as we call them any other time of year… goals. For inspiration, there is a list of examples of resolutions and a handy guide to help you overcome procrastination. There is also a convenient worksheet for you to fill out as you go about seeing your New Year resolutions become daily habits.
If you are planning to sell or buy a home this year, why not use this same process to help you focus on what may very well be the most important financial decision you will ever make? As always, please feel free to call me at 919–602–7000, or send me an email anytime you need to talk about the real estate market in the Raleigh area.
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New Feature for 2008 | Monthly Items of Value
January 2nd, 2008 Categories: Odds and Ends
Hello everyone and welcome to 2008! Raleigh Real Estate Talk is ready for an exciting new year and I have many plans to provide even more information and new features on this site in 2008.
The first one is something called a Monthly Item of Value. Each month a professionally designed piece will be available for download that has something to do with buying, selling, or owning a home. This information will be relevant for home buyers and sellers in the Raleigh area as well as anywhere in the US.
The first piece is all about how to make and keep resolutions (known at any other time of year as goal setting) and how this can apply to buying or selling residential real estate. Stop back tomorrow morning and it should be posted by then.
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