Category Archives: Buying a Home

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.

 

Today’s Featured Community: Bella Vista Raleigh

bella vistaBella Vista is a new luxury community ideally located just north of I-540.

The community consists of seventy-seven acres in a prime North Raleigh location. Over 20 acres will be community open space.

There will be only 62 home sites that offer lakefront, meadow or basement opportunites. The homes will be situated on lots ranging from .67 acres to over 1 acre.

The utilities in the community will be natural gas, community water and private septic. County taxes only and HOA dues of $90 per month.

There are two parade homes to visit during the Parade of Homes Oct. 1-2, 7-9, and 14-16, 2016 from 12-5 p.m.  Both of the parade homes already have sold signs on them.

The Builders At Bella Vista:

Ange Signature Homes

Bost Custom Homes

Don Collins Builder, Inc.

Legacy Custom Homes ‎

Premiere Homes

Loyd Builders LLC

Rufty Homes

Shall Construction, LLC

Sundance Signature Homes

The Developer of Bella Vista is Henry MacNair.

I would be happy to show you this new luxury community and here is a link to Listings in Bella Vista.

The Easy and Fast Way to Find Homes for Sale

Instead of driving different neighborhoods, scouring countless Internet sites and talking to endless different agents, I can show you all the available homes for sale – my company’s listings, my listings, other broker’s listings, builders’ new homes, bank-owned homes and even for sale by owners.

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  • Click on the Search Homes button to see all of the homes without having to go to multiple websites. Search Homes
  • Click on the Property Organizer button to save your search and have new listings sent to you by email daily.
  • Contact me to do it all for you with the experience and expertise that only a real estate professional can offer.

Pay Off Your Mortgage?

Becoming debt free is as much a part of the American Dream as owning a home but there certainly can be conflicting circumstances that make the decision to pay off your mortgage early unclear.32498400-250.jpg

The advantages of paying off debt early is increased cash flow, less interest paid and a higher credit score. The disadvantages are lower cash flow available as discretionary funds for meals, entertainment and other things. If the ultimate goal is financial security, is it worth the intermediate sacrifice?

Whether you pay off your mortgage early is a personal decision that may be right for one person and not for another. Consider the following before you get started:

Reasons you should

  • Peace of mind knowing that you don’t have a mortgage
  • You’ll save interest regardless of how low your mortgage rate is
  • Lowering your housing costs before you retire

Reasons you shouldn’t

  • You can invest at a higher rate than your mortgage
  • You have other debt at a higher rate than your mortgage that needs to be paid off
  • You might need the money in the future and want to remain liquid
  • You might not qualify for a mortgage currently
  • You should pay off other debt with higher interest rates
  • Your employer has a matching retirement plan that would benefit you more
  • You have more urgent financial needs like emergency fund, life, health and disability insurance
  • You expect high inflation and the value of your mortgage debt will decrease

Use this Mortgage Accelerator to determine how quick you can pay off your mortgage.

Gap Between Homeowner’s & Appraiser’s Opinions Narrows Slightly

Gap Between Homeowner’s & Appraiser’s Opinions Narrows Slightly | MyKCM

In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. One major challenge in such a market is the bank appraisal.

If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank.

Every month, Quicken Loans measures the disparity between what a homeowner believes their house is worth as compared to an appraiser’s evaluation in their Home Price Perception Index (HPPI). Here is a chart showing that difference for each of the last 12 months.

Gap Between Homeowner’s & Appraiser’s Opinions Narrows Slightly | MyKCM

The gap between the homeowner vs. appraiser’s opinion has started to head in the right direction (closer to even), as June saw a slight decrease from May’s -1.95% to -1.89% nationally.

Homeowners in the western part of the country, however, have been pleasantly surprised as their homes have appraised higher than they expected. Denver received its highest HPPI last month as homes came in an average of 3.28% higher than the homeowner believed it would. Nine of the twelve metro areas that had a positive HPPI last month were located in the west.

Quicken Loans’ Chief Economist, Bob Walters explains:

“The hot housing markets along the West Coast are growing quicker than owners realize, giving way to higher than expected prices for buyers and more home equity for existing owners.  

On the other hand, the housing markets are more balanced in the East and Midwest, leading owners to be slightly over-enthusiastic about their home’s appreciation.”

Bottom Line 

Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market this year, let’s get together to talk about what’s happening in our area.

3 Reasons to Buy Luxury Property THIS Year!!

3 Reasons to Buy Luxury Property THIS Year!! | MyKCM

3 Reasons to Buy Luxury Property THIS Year!!

 

1. There are more homes from which to choose

According to a recent Wall Street Journal article, inventory in the upper end is increasing, while it is decreasing at the lower and mid-tier price ranges. Here is a graph showing the average increase/decrease in inventory for the first four months of this year as compared to last year:

3 Reasons to Buy Luxury Property THIS Year!! | MyKCM

2. Prices are becoming more reasonable

In a separate article, the Wall Street Journal also talked about prices in the luxury market. They explained that downward price adjustments have been more common in the luxury market than in markets with lower prices. They went on to say:

“The growing number of price cuts suggests luxury-home sellers are becoming more realistic about property values as sales have slowed, said several real-estate veterans.”

Not only will you have more to choose from, but you may also be able to get the property at a reduced price.

3. Mortgage rates are at historic lows

In the past, one of the drawbacks to purchasing a luxury property was the larger mortgage rate on “jumbo” loans which are often required on high end properties.

However, HSH.com just revealed that jumbo rates just set new record lows:

“While conforming fixed-rate mortgages eased a little this week, 30-year fixed-rate jumbos declined enough to break into new record low territory (3.66%), besting the previous low set in April by two basis points.”

Bottom Line

More choices, better prices and historically low mortgage rates may make this the perfect time for you to own one of those luxury properties you and your family have always fantasized about.

Working with FSBO Home Owners and FSBO Entry Only Firms

sign for articleSellers that attempt to sell their own homes or use the services of a data only entry agent have declared that they know more about real estate than real estate professionals.

These sellers are motivated to try the FSBO route often because they are financially in trouble and/or they do not want to spend money on the sale of their property.

The data entry agent charges a fee to put the listing in the MLS in hopes that the seller will fail at their endeavor and ultimately become frustrated and employ them for full service. A bait and switch strategy.

FSBOs typically price their property based on what they want out of the property not on the market. The data entry agents input whatever data the seller wants.

FSBO transactions require additional work and liability for the buyer’s agent. The buyer agent many times has to handle both sides of the transaction, as the seller is unfamiliar with the documents and the process.   The data entry only agents are difficult to reach and do not assist in the transaction.

Inspection and Repair Issues often arise. In North Carolina, the standard real estate contract has a due diligence provision and the buyer is most times paying a due diligence fee that the seller may keep if the buyer terminates the contract. In negotiations with FSBO sellers the cost of repairs is often an unresolvable dispute. Buyers have to either back out after spending money on due diligence activities or accept a property in need of repairs.

Buyers and buyer agents BEWARE _ you may want to consider steering clear of these sellers.

New Listing _ Close to NCSU

 

Perfect for Roommates or Investors!

2-Bedroom 2-Bath Amazing Investment Opportunity. Close to NC State, Farmers Market, Downtown, I-40 and I-440 access. Fully equipped with All Appliances included (microwave, refrigerator, stove, dishwasher, washer and dryer). New AC Air Handler, Updated Appliances, Carpet, Tiled Flooring, Paint, Bathroom Cabinetry, and Ceiling Fans. Eligible for FHA Financing _ On the FHA Approved Condo List.  Seller is a Licensed Real Estate Professional.