Real Estate Information

Now is a great time to buy real estate in the Raleigh, NC area.  We have a generous amount of inventory in Raleigh, Fuquay Varina, Clayton, Holly Springs & all surrounding areas, and pricing has never been better.  But before you start the hunt, you need to make sure you're ready.  Is your financial picture in focus?   You may want to contact our preferred mortgage lender to make sure. 

Here's some important advice: as soon as you have made the decision that you want to buy a house, one of your first steps should be to make certain that you have a clear picture of your financial situation. At a minimum, you will most likely want to do the following:

Run a free Credit Report to make certain that there are no discrepancies or problems in your credit history.

Do an analysis of your current financial situation: where the money comes from (your total income) and where the money is presently going (your current spending). Develop a household budget for your current situation. Get into the habit of using it on a consistent basis!

Keep your spending patterns in check.

Do an analysis of how a house purchase will affect your budget. Be sure to factor in not only mortgage payments (including insurance and taxes) but also funds for items such as repairs and maintenance.

Begin to gather items such as: last 3 years Income Tax returns, current copies of pay stubs, records of any past derogatory credit history that has since been paid off, and records of any supplemental income you may have. If you are self employed, you will need all business records and tax returns for the last 3 years. Having these items close at hand will save an enormous amount of time when the Mortgage Company begins to ask for them (and ask for them they will!)

If it is possible to do so without adversely affecting your down-payment situation, pay off minor debts. The less debt you have the easier your Mortgage "sailing" will be.

Do not incur any new debt. Many mortgage applications have been stopped in their tracks because the applicants had decided a week before the application that a shiny new car with a big finance or lease payment would look just perfect in the driveway of their new home. Since mortgages are based on debt to income ratios (the amount you pay out monthly versus the amount you bring in) a newly acquired debt could be enough to throw the ratios off and make the mortgage unobtainable.

If you are considering purchasing a new home in Raleigh, Garner, Clayton and surrounding areas, please call The Rodney Carroll Team at 919-779-3113.

How much work should you do to your home before selling?

As a seller, you have several options when making that decision.  One option is to do relatively little and sell the property in it's "as is" condition. Another is to invest time, effort and money into fixing the property up before you sell. A third option is to do a combination of the first two approaches.

In making your decision, keep in mind that in general buyers pay more for homes that are in move-in condition. Most buyers would prefer to buy a turnkey listing that doesn't need a lot of work. A home in great condition will usually attract more buyers than one that doesn't show well and needs a lot of work.

But there is a market for fixer-upper properties, although it is more limited. Fixer buyers will pay more for fixers that have a big upside potential. Fixer listings sell at a discount when compared to listings that are in move-in condition.

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

IS THIS A GOOD TIME TO INVEST IN REAL ESTATE?

Yes, it is, and for a number of reasons. For one thing, housing prices are declining just about nationwide. Plus, mortgage rates are at a serious low. Rates on a 30-year, fixed-rate mortgage are at a level we won't see again in our lifetime. Finally, if you buy before December 1, you'll get an $8,000 tax credit if you're a first-time buyer. For all those reasons, there's really never been a better time to go shopping for real estate

Buying a house covers a lot of ground--including legal, financial and emotional considerations. To not educate yourself and learn from the mistakes of others only sets you up to be at best disappointed and at worst finding yourself living in the wrong house. We have listed some of the most prevalent--and potentially dangerous and expensive--mistakes made by first time home buyers.

• Running before walking. This is easy to do once the decision to buy a home has been made. It means rushing off looking at homes, surfing the web or calling on advertisements before doing some up-front preparation. Not spending time doing this preparation, though, can be a disaster.

   

• Over-buying the first time. Being "house poor" is a very uncomfortable existence. A large and beautiful home with little or no furniture tends to be empty and cold. A life where almost every dime of your earnings goes to the support of your house wears thin very quickly and is a frequent cause of family stress. Pushing yourself right up to--or beyond--your limits leaves you highly exposed when the inevitable changes to the national or your personal economy occur. Leave yourself some breathing room!

   

• Finding out too late that you have no representation. This can be a real nasty surprise when you assume that the Agent with whom you are working represents you when they actually represent--and owe complete allegiance to--the seller. How does this happen? By not taking the time to investigate and familiarize yourself with the laws regarding Agency. Or, by rushing out to look at homes, whether in person or on the Internet, and contacting the Agent who has the house advertised (who will be the listing Agent and will absolutely represent the seller). Another pitfall occurs when you try to represent yourself in the purchase of a home, thinking that you will save money. This may be the case, but it is just as--or more--likely that you will run into a savvy seller who is looking to keep the commission savings in their pocket rather than give it to you. In addition, without representation and the use of a Comparative Market Analysis, how do you determine a realistic selling price for a property?

   

• Not comparing mortgages. There are far too many variables--type of mortgage, term, lender and amount of points to mention a few--not to investigate all of your options. Don't simply accept the first plan presented to you, whether it is from a mortgage broker, an Agent or on the recommendation of a friend or relative. Spend time comparing to get the most advantageous plan for your requirements and financial situation.

   

• Not getting mortgage preapproval. In the past it may have been different, but starting in the year 2000, prequalification and preapprovals are a necessary part of the home buying process. Not only will it give you an exact price range for your purchase, preapproval will add a great deal of strength to your offer.

   

• Waiting for the "perfect" home. Many first time buyers make the mistake that they will, if they look around long enough, find a home that has a full 100% of their needs and wants. With the thousands of variables available in housing, including location, style, size, amenities and condition, this is almost always an unrealistic goal. There are two potential problems with this strategy: First, these buyers pass by homes that meet 90% or more of their requirements only to eventually give up (often purchasing homes with less of their requirements because they are worn out!) and second, while they are waiting for the "perfect" home, housing market prices (and often mortgage rates) continue to rise, adding expense to their purchase. Instead, it makes sense to determine the most important of your needs and the most desired of your wants and selecting a home that meets the majority of them.

   

Before you decide to sell your home, there are some things you can do to prepare for a successful & speedy sell.

Go visit new construction homes in your area.  What you will find are homes that are uncluttered.  These homes appear as though "anyone" could live there. They are anonymous.  What you won't find are photos on the wall and someone else's personality.

Your home should be "anonymous", because you want buyers to imagine it as their potential home. When a potential buyer sees your family photos hanging on the wall, it puts your own brand on the home and they find it difficult to imagine this being their home.

Put away family photos, sports trophies, collectible items, knick-knacks, and souvenirs. Put them in a box. Rent a storage area for a few months and put the box in the storage unit.

FSBO – For Sale, But Onerous

Twelve percent of sellers who knew the buyer thought that getting the price right was the hardest task. Among FSBO sellers who didn’t know the buyer, 16 percent found it difficult to sell within the time planned, 15 percent found fixing up the home arduous, and 12 percent found it difficult to get the price right.

(Exerps from NAR, April 2009)

Raleigh - One of the Healthiest Housing Markets for 2009

Raleigh has been named the 6th strongest residential real estate market in the country lead only by 5 cities in Texas according to a recent report by Hanley Wood Market Intelligence. Raleigh, like most of the other leading markets, is a great place to live and avoided the huge run-up in home prices that preceded the market downturn in other parts of the nation.

Based on population trends and job growth - along with home prices - the top 75 housing markets managed to hold the line on home values.

The report sites the area's multiple universites and an annual job rate increase of 1.9 percent through the third quarter of 2008. It continues "With a population of more than 1 million, it also has one of the highest rates of population growth of any top metro market in the country over the last five years: nearly 5 percent annually.

Though the price of a median home here, $221,900, is above the national average, it is well below other cities in the mid-Atlantic and Northeast. With a glut of national builders in the market, locals ... have experimented with different looks and styles to keep sales alive."

Among 27 major cities in a nationwide survey, a January 27 Wall Street Journal article reports that the Raleigh area has the second lowest decline in homes prices. Its decline of 2.5% is just above the 1.8% decline in Dallas and far better than the 26.8% decline in Las Vegas and 23.5% decline in Miami.

Area sellers who take a slight cut in home values here may reap the benefit of deeper cuts when they purchase in other parts of the country. Locally, they may experience a lower purchase price after they've sold their current home. Savy sellers will negoitate acceptable offers on their current homes so they can bargain for a new purchase.

With mortgage rates at a 50 year low, NAR's affordability index has risen 17% from 2007 figures indicating that households earning the national median income have 131% of the income needed to buy the national median-priced house. With home sales down to a ten year low, successful sellers are competitive with prices, home condition and incentives.

This is a great time to take advantage of home ownership while rates are low, prices are competitive and buyer's incentives are high.

The 2008 National Association of Realtors Profile of Home Buyers and Sellers has just been released and shows that nationally, first-time buyers have risen in market share and plan to own their homes longer than buyers in the past.

The NAR report reiterates the local sentiment that first-time buyers are more flexible to enter the market without concern of selling an existing house as well as having the benefits of low home prices, plentiful supply and affordable interest rates.

Forbes Magazine has named Raleigh #5 on the country's list of recession-proof cities. "Stable home prices and growth across the different sectors of its economy has kept Raleigh strong," states the April '08 edition. With a median home price increase of 4%, Raleigh continues better off than most of the nation where the real estate bubble has bursted.

Among the fastest growing North Carolina town's, Wake County's Rolesville ranked #1; Holly Springs, #3; Knightdale, #4; Wake Forest, #5; and Fuquay-Varina, #6.

The Raleigh-Durham housing market is one of a handful of metropolitan areas nationwide to post a price median increase over the last year" reports the April 26 Raleigh News and Observer.

Buyer conditions are favorable while 42% of MLS listings showed a reduction in price compared to last year's rate of 32%.

Homes that are repaired, staged well and priced in the more active range under $500,000 continue to get the most activity as sellers position their homes above competitors.

The April 26 Raleigh News and Observer reports that The Triangle region continues to add jobs, but at a slower rate than previous years. The NC Employment Security Commission released its report in April stating that Raleigh's new jobs were a 3.6% increase over a year ago with the Triangle accounting for more than half the state's job creation over the past year.

The Raleigh/Cary real estate market has just been forecast as the #2 strongest market in the country by Veros Real Estate Solutions, a California company that has covered the nation's residential real estate market for five years. The Triangle market is the only one of the top five areas not in the Midwest.

Homes priced near or below the average market value in the $200's continue to move steadily without major concessions. As in all markets, location is the key factor.

"North Carolina is insulated but not immune from recession" reports the 1/30/08 Raleigh News and Observer. It further states that "Right now, North Carolina is better positioned than most of the country, and the Triangle is in better shape than the state."

"With an economy rooted in state government, three major universities and a booming tech sector, the Triangle is buffered against housing downturns, credit problems and energy prices that roil other regions," says a senior economist at Wachovia Bank.

Growth continues along the new outer loop, I540, as accessibilty to rural areas is made easier. To the East, Knightdale, Wendell and Zebulon offer more for the money and to the South and Southwest, Fuquay-Varina and Holly Springs offer a variety of price ranges.

While Wake County new home prices continue to increase, neighboring counties, while still lower, are taking up the price gaps that Wake has left behind. Johnston County offers a wide range of new contruction in the $200-$300K range on larger lots than more urban Wake and has become more easily accessible with new bypasses.

(Exerpts taken from Realty Times Market Conditions)

Representing Your Best Interest

For more information on how to avoid mistakes when selling, download our free report called "Avoiding the Top Ten Biggest Selling Mistakes". This report is offered to all guests.

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