Category Archives: Buying a Home

8112 Greys Landing Way Raleigh NC

Your Home – A Sanctuary

The new normal of staying at home has many homeowners rethinking the way they live in their home and what they need in a home. 

A home has always been a place to call your own, a place to raise your family, a place to share with your friends and a place to feel safe and secure.   

An office at home for working is more important than ever, possibly a gym to stay in shape, a bonus space for media and recreation and room to spread out for individual quiet time.

8112 Greys Landing Way in Raleigh NC Checks All the Boxes:

*A private first floor ensuite for visiting guests or inlaws is located away from the main living areas of the house.  

*A first floor office/study adjacent to the family room.

*A butler and walk in panty that provides mega storage and allows you to limit grocery store trips.

*A huge master ensuite with sitting area and spa bath.

*A princess ensuite for your own special princess.

*A bonus room/ media room that can double as a bedroom or a home gym.

Call me for more information about this great home 919-616-2555.

9009 Coolbreeze Court @Sutherland Subdivision in Wake Forest NC

Secluded Cul-de-sac Location

Sunlight Streams through the windows and adds cheer to the sunroom of this 2-story transitional home in the Sutherland Subdivision.

Space for the whole brood in this striking 3364 square foot home with 4 bedrooms and 3.5 baths. Freshly painted, new carpet and new hardwood treads on staircases.

Dazzling hardwood floors, formal dining room and breakfast room, spacious family room with fireplace, owner’s suite with trey ceiling and dual closets – owner’s spa bath with new walk-in shower.

Chef’s kitchen with granite, stainless appliances (including refrigerator – new dishwasher), tile backsplash, center island, counter space galore and adjacent to breakfast room.

Perfectly situated on a large 1.79 acre treed secluded cul-de-sac lot.

2 staircases, built by current owners in 2000.  

7132 Capulin Crest in The Park at Westlake, Apex NC

You’ll be impressed with 7132 Capulin Crest in The Park at Westlake.

A Parade Of Homes Gold Winner, The “Lillypad” is a 4-bedroom, 3-full bath and 2-1/2 bath home built by L and L of Raleigh, Inc.

Gleaming hardwoods greet you in the foyer and continue thru the living room, dining room, family room, staircase and upstairs hallway.

The property offers a transitional floor plan that delivers a striking living room with a coffered ceiling, an impressive dining room with a tray ceiling and an inviting family room with a fireplace with gas logs flanked by built-in bookcases.

The master suite is huge with his-and-her walk-in closets and a master spa.  All of the secondary bedrooms are also spacious and each has a walk-in closet with wood closet systems and brand new carpeting in all bedrooms.

The gourmet kitchen has tile floors, granite countertops, stainless and a good size pantry.

First floor guest en-suite is perfect for visiting parents or friends.

Great storage with both a walk-in and walk-up attic.

Arches, detailed woodwork and ceilings thru home.

For additional images please check out the property website:  7132 Capulin Crest and for more information about the neighborhood please visit The Park at Westlake.

Rent vs. Own

Would-be to Should-be

Some would-be buyers have emotional reasons to own a home like having a place of their own where they can raise a family, feel safe and secure and enjoy their friends’ company. Other buyers’ dominant reasons might be financial in nature such as building equity or lowering their cost of housing.

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Regardless of what might be motivating people to want their own home, it is easy to justify that now is a good time to purchase. Let’s look at a $250,000 example using a FHA loan.

The total payment will be about $1,835 dollars a month. If the payment is lower than the rent a person is paying, that should encourage a person to continue investigating.

In this example, when you consider the monthly principal reduction, the monthly appreciation and the tax savings, even with money added for monthly maintenance, the net cost of housing is less than half the total house payment.

Considering all those advantages, the would-be buyer is spending over $1,100 per month more to rent than it would be to own. In a year’s time, they would lose close to $14,000 which is more than the down payment of $8,750 required on this price home.

Most would-be buyers understand that a home is a big investment but they may not understand the advantage of the leverage caused by the low down payment mortgage. The benefits extend beyond a return on the down payment but to the value of the home.

In this example, the $8,750 down payment grows to an equity of $73,546 in seven years based on 2% annual appreciation and normal amortization on a 30-year loan. If you calculated that as a rate of return, you’d be challenged to find anything that could compare with it.

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To see what your numbers might look like, check out this Rent vs. Own. If you need any help or have any questions, contact us. Part of our greatest satisfaction is helping would-be buyers understand why they should-be.

First Comes Love… Then Comes Mortgage?

First Comes Love… Then Comes Mortgage? | MyKCM

According to the National Association of REALTORS most recent Profile of Home Buyers & Sellers, married couples once again dominated the first-time homebuyer statistics in 2016 at 58% of all buyers. It is no surprise that having two incomes to save for down payments and contribute to monthly housing costs makes buying a home more attainable.

But, many couples are also deciding to buy a home before spending what would be a down payment on a wedding, as unmarried couples made up 14% of all first-time buyers last year.

If you’re single, don’t fret! Single women made up 18% of first-time buyers in 2016, while single men accounted for 8% of buyers. One recent article pointed to a sense of responsibility and commitment that drives many single women to want to own their home, rather than rent.

Here is the breakdown of all first-time homebuyers in 2016 by percentage of all buyers, income, and age:

First Comes Love… Then Comes Mortgage? | MyKCM

Real Estate with Joann Samelko

5 Myths About Real Estate Reality TV Explained

5 Myths About Real Estate Reality TV

When you’re in the middle of your real estate themed show marathon, you might start to think that everything you see on TV must be how it works in real life, but you may need a reality check.

Reality TV Show Myths vs. Real Life:

Myth #1: Buyers look at 3 homes and make a decision to purchase one of them.

Truth: There may be buyers who fall in love and buy the first home they see, but according to the National Association of Realtors the average homebuyer tours 10 homes as a part of their search. 

Myth #2: The houses the buyers are touring are still for sale.

Truth: The reality is being staged for TV. Many of the homes being shown are already sold and are off the market. 

Myth #3: The buyers haven’t made a purchase decision yet.

Truth: Since there is no way to show the entire buying process in a 30-minute show, TV producers often choose buyers who are further along in the process and have already chosen a home to buy. 

Myth #4: If you list your home for sale, it will ALWAYS sell at the Open House.

Truth: Of course this would be great! Open houses are important to guarantee the most exposure to buyers in your area, but are only a PIECE of the overall marketing of your home. Just realize that many homes are sold during regular listing appointments as well.

Myth #5: Homeowners make a decision about selling their home after a 5-minute conversation.

Truth: Similar to the buyers portrayed on the shows, many of the sellers have already spent hours deliberating the decision to list their homes and move on with their lives/goals.

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From Empty Nest to Full House… Multigenerational Families Are Back!

From Empty Nest to Full House... Multigenerational Families Are Back! | MyKCM

Multigenerational homes are coming back in a big way! In the 1950s, about 21%, or 32.2 million Americans shared a roof with their grown children or parents. According to a recent Pew Research Center report, the number of multigenerational homes dropped to as low as 12% in 1980 but has shot back up to 19%, roughly 60.6 million people, as recently as 2014.

Multigenerational households typically occur when adult children (over the age of 25) either choose to, or need to, remain living in their parent’s home, and then have children of their own. These households also occur when grandparents join their adult children and grandchildren in their home.

According to the National Association of Realtors’ (NAR) 2016 Profile of Home Buyers and Sellers, 11% of home buyers purchased multigenerational homes last year. The top 3 reasons for purchasing this type of home were:

  • To take care of aging parents (19%)
  • Cost savings (18%, up from 15% last year)
  • Children over the age of 18 moving back home (14%, up from 11% last year)

Donna Butts, Executive Director of Generations United, points out that,

“As the face of America is changing, so are family structures. It shouldn’t be a taboo or looked down upon if grown children are living with their families or older adults are living with their grown children.”

For a long time, nuclear families, (a couple and their dependent children), became the accepted norm, but John Graham, co-author of “Together Again: A Creative Guide to Successful Multigenerational Living,”says, “We’re getting back to the way human beings have always lived in – extended families.”

This shift can be attributed to several social changes over the decades. Growing racial and ethnic diversity in the U.S. population helps explain some of the rise in multigenerational living. The Asian and Hispanic populations are more likely to live in multigenerational family households and these two groups are growing rapidly.

Additionally, women are a bit more likely to live in multigenerational conditions than are their male counterparts (20% vs. 18%, respectively). Last but not least, basic economics.

Carmen Multhauf, co-author of the book “Generational Housing: Myth or Mastery for Real Estate,” brings to light the fact that rents and home prices have been skyrocketing in recent years. She says that, “The younger generations have not been able to save,” and often struggle to get good-paying jobs.

Buying A Home

Buying a Home Can Be Scary… Know the Facts [INFOGRAPHIC]

Buying a Home Can Be Scary... Know the Facts [INFOGRAPHIC] | MyKCM

Some Highlights:

  • 36% of Americans think they need a 20% down payment to buy a home.
  • 44% of Millennials who purchased a home this year have put down less than 10%.
  • 71.8% of loan applications were approved last month.
  • The average credit score of approved loans was 731 in September.

Down Payment Found

Down Payment: FOUND!
Saving the down payment may be unnecessarily keeping would-be buyers from getting into a home. They may be unaware that the funds might be available.

The NAR Profile of Home Buyers and Sellers reports that 81% of first-time buyers got all or part of their down payment from savings. Less than 4% said that all or part of the down payment came from a withdrawal in their IRA and 8% from their 401(k) or pension fund.

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Traditional IRAs have a provision for first-time buyerswhich include anyone who hasn’t owned a home in the previous two years. A person and their spouse, if married, can each withdraw up to $10,000 from their traditional IRA for a first-time home purchase without incurring the 10% early-withdrawal penalty. However, they will have to recognize the withdrawal as income in that tax year. For more information, go to IRS.gov.

Allowable withdrawals from traditional IRAs can be from yourself and your spouse; your or your spouse’s child; your or your spouse’s grandchild or your or your spouse’s parent or ancestor.

Roth IRA owners can withdraw their contributions tax-free and penalty-free at any age for any reason because the contributions were made with post-tax income. After age 59 ½, earnings may be withdrawn as long as the Roth IRA have been in existence for at least five years.

Up to half of the balance of a 401(k) or $50,000, whichever is less, can be borrowed by the owner at any age for any reason without tax or penalty assuming the employer permits it. There can be specific rules for loans from a 401(k) that would determine the repayment; interest is usually charged but goes back into the owner’s account. You can consult with your HR department to find out the specifics.

A risk in borrowing against a 401(k) comes if your employment ends before the loan has been repaid. The loan may have to be repaid as soon as 60 days to keep the loan from being considered a withdrawal and subject to tax and penalty. Even if you continue with the same employer, failure to repay the loan could be considered a withdrawal also.

Your tax professional can provide you specific information on how making a withdrawal from your retirement program might affect you. Additional information can be found on www.IRS.gov.

Lunch and Learn Held on October 6th

I organized a Lunch and Learn at Northside Realty this week.

Northside Realty Colleagues

Northside Realty Colleagues

Eleven of my Northside colleagues joined me for lunch and an enjoyable presentation by David Stokes of Retirement Funding Solutions.

Agents gained valuable information about the ‘Home Equity Conversion Mortgage – HECM‘ A type of Federal Housing Administration (FHA) insured reverse mortgage for those age 62 or better.

The presentation included plenty of interaction and a good question and answer session followed. Everyone in attendance appreciated the additional knowledge and the fact that they learned about a program that could help their clients.