Additional Reasons to Buy NOW!!!

Anyone paying attention to the housing market will realize that now is the time to buy rather than rent. For first time home buyers, the Federal government is offering up to $7500 in tax credits. This tax credit must be paid back over the first few years of home ownership, but it is a great incentive if you need assistance for a down payment or to pay closing cost.

Not only this, but the interest rates are at a low that we have not seen in many, many years. With these rates, you can easily buy a home for less than you can rent. To go a little further, there are still places where you can get 97% financing and possibly more.

If this is not enough of an incentive, the housing market in the Raleigh/Durham/Chapel Hill area that many sellers are highly motivated and will be willing to make major concessions to include price and/or terms.

For example, I represented a young couple in their purchase (it will be closing at the end of Sept), and my clients received a number of concessions to include $12,000 off the list price, $6,000 in closing cost and $4,000 for appliances on a home listed just under $300,000. My clients are very happy and are getting a beautiful home; you could be next.

For more information about the benefits of buying a home today, please call or email me as I will be happy to talk with you about it.

Not sure if you should buy! Foreclosures are up making it a great market to buy

The Triangle Business Journal reported today that North Carolina foreclosure filings make a tremendous jump in July. RealtyTrac, a California based real estate tracking company, reports that there were 4,303 foreclosure filings in North Carolina in the month of July. This is a 127 percent increase from July 2007 and up 24 percent from June 2008. These filings includes default notices, auction sale notices, and bank repossessions.

For every 936 North Carolina household, there was one foreclosure filing, which ranks North Carolina 25th in the nation. The highest foreclosure rate was Nevada, where one in every 106 households; California second with one in every 182 households, and Florida is third with one in every 186 households.

The states with the highest foreclosure totals included California (72,285), Florida (45,884) and Ohio (13,457).

Nationally, there are 272,171 foreclosures notices sent out in July which represents a 55 percent increase over last year and nearly an 8 percent increase from June, 2008.

RealtyTrac went on to say that approximately 17 percent of the national inventory of homes for sale were bank REOs (Real Estate Owned).

This is a major problem for home sellers across the Triangle and North Carolina, but a huge positive for home buyers. First of all, banks are more incline to negotiate on price to get the home off their books, even if it means taking a loss on the value of the home. Last year, I helped an investor purchase a foreclosed home in Raleigh for nearly $30,000 less than the market value at the time.

Secondly, the added competition from banked owned properties forces individual home sellers to negotiate on price or repairs in order to sell their homes. Homes in Raleigh are being reduced in price at an alarming rate in order to generate interest in the home and get it sold. Quite a few months ago, I helped a couple purchase a home that had already been reduced $30,000 dollars and we purchased it for $35,000 less than that listed price. The buyers actually purchased a home with approximately $65,000 in equity built-in.

As I mentioned, sellers are more willing to negotiate then ever before, so it is possible to get a seller to pay for you to get out of your current lease if you purchase their home. To get a seller to pay for your lease, you will most likely have to make a full price offer, but it is a small price to pay to get out of the lease and to begin to build equity in your new home.

There are many ways to get into a new home if you are currently renting and I would encourage you to contact me with any questions about purchasing a home in the Raleigh/Durham/Chapel Hill areas.

Gas Prices at 3 month low; How low can it go?

Did you hear the good news? Gas prices are down to the lowest level in 3 months. GAS PRICES ARE DOWN TO THE LOWEST LEVEL IN 3 MONTHS!!!

The average price U.S. consumers paid for a gallon of gas hit a three month low as the cost dropped 7.1 cents last week to $3.81. Yes, this is still $1.04 a gallon higher compared to a year ago, but it is moving in the right direction, primarily due to the lifting of the Executive Order by President Bush to drill off the coast.

This has caused a $33 drop in crude prices that we should expect to continue to fall over the coming weeks. According to the Energy Information Administration (EIA), every $1 price drop in crude oil results in a 2.4 cents off the price for a gallon of gasoline. If this is truly the case, then gasoline should fall about 79 cents from its peak according to the EIA. Of course, the national price has only fallen 30 cents, but common sense would dictate that the prices will decline slower then they rise due to unforeseen circumstances.

In the EIA's survey, the highest price for gas was on the West Coast at $4.06 a gallon, down 8.3 cents last week. This is the only region to remain above $4 a gallon with San Francisco having the highest big city price at $4.18, down 7.9 cents.

According to AAA Automobile Club, the average price in North Carolina has dropped dramatically over the past month from a high of $4.006 a gallon to $3.879 this month. Of course, this time last year, the price in North Carolina was $2.82 a gallon.

First-Time Homebuyers Tax Credit Enacted

The National Association of Home Builders (NAHB) has announced a major success for them as a tax credit for first time home buyers has been added to the new Housing Stimulus Package. According to the NAHB, the temporary first-time home buyer tax credit will help stimulate home buying, reduce excess supply in housing markets and shore up home prices. They go on to say that it is imperative that the word of this new tax credit get out to those who could benefit from this credit.

This milestone legislation will help provide an enormous boost to the housing industry in the form of a tax credit for first time home buyers as well as much-needed measures that will improve mortgage liquidity, foster refinancing of troubled loans and expand the supply of affordable rental housing.

A new consumer website www.FederalHousingTaxCredit.com has been introduced to give first time home buyers more information about this great product.This site includes details and a set of comprehensive questions and answers about how the credit works and how consumers can take advantage of it.

As a real estate agent, I can appreciate this program as I know many builders who have been struggling with selling homes in this current market. I am not a huge fan of the entire package, but this portion of the package will be very beneficial to help many move into home ownership.

For more information about this tax credit, please call or email me.

Executive Townhouse with Great Location

JUST LISTED!!!

This great townhouse is very conveniently located near Crabtree Valley Mall and the I-440 Beltline. This gorgeous home, built in 2006, has all the upgrades to include Corian countertops, wainscoting in the dining room and the stairs, wrought iron on the stairs, and plantation shutters in the family room. This home also has hardwood floors, and tile in this fabulous 3 story home. Not only does the family room have plantation shutters, but is also pre-wired for surround sound and a warming spiral staircase from the foyer. This home has 4 bedrooms and 2 full and 2 half baths and has nearly 2500 sqft. The master bedroom has cathedral ceilings and the bath has a separate garden tub and shower as well as a large walk-in closet.

The garage and a bedroom are located in the basement along with the utility room. The garage has epoxy flooring for long life and stain resistance. Additionally, the garage has plenty of storage room for the family bikes. The basement bedroom can be a game/entertainment room or a private bedroom for the teenage or the in-laws.

The kitchen is immaculate with plenty of counter space and an island bar for family breakfast. The kitchen also has a large pantry and is connected to the dining room. The deck overlooks the large and spacious common area shared by the surrounding neighbors. It is a great place to spend time with the children or the pets as there is a walkway completely around the common area.

Backyard Large common area for family and the pets to play, complete with a sidewalk that circles the common area.	Bedroom 2 Large bedroom with a sitting area and a good closet. This bedroom will be great for a guest room or for the teen.
Bedroom 3 Spacious bedroom on the second floor that has a good closet and place for a student's desk.	Bedroom 4 Spacious bedroom in the basement that could be an office, game/entertainment room or an in-law suite.
Deck Nice wooden deck that overlooks the common area with plenty of great foliage for your viewing. It makes for a great spot to spend the evenings with a glass of wine.	Dining Room Cozy family dining room with wainscoting whose window overlook the common backyard.
Family Room Spacious family room that has a gas fireplace, pre-wired for surround sound, and plantation shutters will be a cozy family gathering area to create family memories.	Finished Basement The finished basement includes an oversized garage with plenty of storage space, a bedroom that could have many different uses, and the utility room with a half bathroom.
Fireplace In the family room,the gas fireplace will make for cozy evenings for the entire family.	Garage Oversized garage with epoxy flooring, this garage has great storage space for all of the family toys.
Gourmet Kitchen Large kitchen that comes with Corian countertops, a large pantry, and an island bar, great for family breakfasts. This homes comes with all of the white appliances in the kitchen, including the refrigerator.	Master Bathroom The master bathroom comes complete with a large, garden tub and an oversized separate shower. This bathroom has 2 separate vanities for his/her use. Additionally, there is a large walk-in closet and a linen closet.
Master Bedroom A cathedral ceiling adorns this spacious room. It has plenty of room for a king-size bed and all of your special furniture. For more information about this beautiful home, please visit 2741LaurelCherry.com.

Announcing a great new Listing

A great home in a starter community close to Raleigh, this home offers much potential and many amenities for the 1st time home buyer or an investor. With 3 bedrooms and 2 baths, this home has the basic needs for a young family. However, this home also offers the added benefit of having a great sun room/den in addition to a large family room with a wood fireplace. This is a must see home for the investor or young family.

This home also offers a great backyard that will be great for barbecues, pool, or extended decking system. Additionally, the children will benefit from having a great yard to play as it is very clear and flat for many activities.

Little River park is approximately 1 mile from this home and offers a picturesque waterfall, a great swing set, and numerous picnic sites for the family to enjoy. Visit this great park when you visit the home as it is a quaint park with many trees.

For more information about this home and to view all the photos of this home, please visit the website 221PineviewDrive.com or email me with your questions.

Renting is more expensive than buying!!!

The National Association of Realtors recently reported that the "real reason" why home sales don't crash for too long is simply, rents. Basically, when purchase demands slow down, rentals speed up. So, rents provide the floor that stops housing prices from any major declines.

All of the national media outlets have been reporting on the fall of home prices across the nation. It has been on CNN, CBS, FoxNews, just to name a few. However, they fail to report that rental prices have actually gone up dramatically across the nation. In fact, the 1st quarter of 2008 marks the 24th consecutive quarter that rental prices have increased nationwide.

The softer home markets and the tougher lending restrictions have forced many would-be homeowners into becoming renters. This is not necessarily a good thing for the family budget as many renters are spending more than half of their income on housing, while not gaining any equity or wealth.

To compound this issue, about 40% of all potential home buyers are first time homebuyers, so eliminating them from the homebuying equation, you have successfully limited the pool of buyers for homes that are currently on the market. Add to the mix that most of the first time homebuyers purchase homes from previous first timers, who are looking to move up to a larger, more expensive home, and now you are creating a cavernous hole of unsold homes due to a lack of buyers.

A bright spot is that most mortgage lenders have found an increase in the number of loan applications, despite a slight rise in the interest rates from 5.75% to 5.78%. Another bright spot is the typical buying season is the spring and activity is bound to start up again.

In closing, if you wish to pay more for rent, then continue to rent. If you are interested in buying a home, email me and I will get to work on getting you into your new home.

What is the cost of waiting to Buy your 1st Home?

There are many advantages and disadvantages to owning real estate. You most likely know all the stated advantages to owning your home and the disadvantages to owning your home. There is no secret that owning a home is better in the long run for anyone who wants to build individual wealth, by building equity, not to mention the tax advantages to writing off mortgage interest.

As a result, many of you that are currently renting a home have the dream of owning a home at some point in the future. Is it attainable or just a pipe dream? What is it costing you to wait? Is it the right time to buy a home with the market the way it is? First of all, it is always a good time to own real estate and buy it. But, to take it a step further, I will be discussing exact reasons why you should buy now and what it will cost you to wait. What would be the cost to wait six months to a year before you buy your first home?

The common thought process at this time with 1st time home buyers is to wait for the real estate market to "bottom out", where they can get the best price and will not lose any value after they purchase that new home. The problem with this scenario is that there is no guarantee that our market will "bottom out". In fact, it has been predicted that Raleigh and the Triangle will be one area that will see positive appreciation this year. Despite the difficulties across the nation last year, this area saw a positive appreciation of about 3%. Can you risk that the housing prices will fall this year when every indication is the slight recession that the nation is experiencing will be short-lived and may be over by the end of 2008. So, if you wait to buy a home until the end of the year, you risk paying a higher interest rate on your home due to an improving economy.

It is no secret that the first thing that the Federal Reserve Chairman typically does when the economic numbers are good is to raise the prime rate to prevent inflation. This prime rate is a funny thing when it comes to the home mortgage rates. When the prime rate falls, you do not see an immediate effect on the mortgage rates as it may take a few months to the rates to fall. However, when the prime rate goes up, you will see almost an immediate increase in the mortgage rates. For the profit minded people, this is no surprise since the lending institutions make more money when the rates are higher than they do when the rate are lower. So, it makes sense that they will go down slower then they will go up.

With this in mind, you could actually have a situation where you may pay less for a home in six months than you will today, but have a higher mortgage payment since the rates will most likely be higher in six months than they are today. We all know that the bottom line is how much we have to pay a month and not how much we actually pay for the home.

Another trend makes it more advisable to purchase your home today is the incentives that builders are giving to sell their homes. I have seen where a builder is paying $10,000 towards upgrades or closing cost on a home priced in the high $100,000-low $200,000s. Others are discounting there homes by $50,000 to sell their inventory. You see this trend with the national builders who are seeing a major downturn in their business in other areas of the country and want to make up the difference here.

The fact that the economy is slumping a bit means that it is a great time to buy a home in the Raleigh, Cary, Durham areas. Money is very cheap and sellers are very motivated to sell. Whenever it is a buyer's market, it is a great time to buy. My mantra has always been that it is always a great time to buy and own real estate, but there are varying degrees as to when is more advantageous than others. With the effects of the national real estate market making its way into the mindset of many North Carolina homeowners, it makes this the perfect time to buy a home. My lenders will tell you that money is still available to borrow and there are many programs still available for the 1st time home buyer. Call or email me if you would like to see if you can buy a home today.

Path to Wealth is Through Real Estate Holdings

One of the most sure fire ways to improve your wealth is through the purchase and maintaining of real estate. Real estate is typically the safest investment tool as it will always perform well into the future. You may see short term reductions in the real estate market due to adjustments like we are seeing now in many areas throughout the country. However, real estate will always appreciate over the long-term. There are many reasons we have seen a major "bubble bursting" in the real estate market throughout the U.S. and chief among them is speculators. Real estate is not a "get rich quick scheme", but rather a means to generate positive growth through the years.

The first issue with the current state of the real estate market is the speculation that has been done over the past 5-10 years. Many people began to view real estate as they did the Dot.com stocks of the '90s; a means to a quick buck. This is not the nature of real estate. Consider the fact that many people have held land in their families for 50-100 years to see a major profit from their initial investment. Using real estate as anything but a long-term investment is a highly risky venture since short term factors may affect the value of the property. These factors are virtually eliminated if the property is held for a longer period of time.

The average homeowner is not going to see a major increase in their property values annually and expect to maintain the increases. Traditionally, real estate appreciates 3-5% annually. This does not sound like much and it isn't much for the short term. But, keep the home for 5-10 years and you should see a much more favorable return. For instance, a 5% increase on a home that cost $200,000 is nearly $10,000. Now, this sounds good and is good, but consider the commissions and closing cost you will need to pay to sell the home and you are looking at a net loss since commissions can be anywhere from 3-6% and another 1% for additional closing cost.

Now, consider the same home that has been held for 5 years. The return would be much greater compounded over 5 years and would be approximately $255,250. Now, take out 6% for the maximum closing cost of $15,315 and you would see a profit of nearly $40,000. Keep the same home for 10 years and the numbers grow even more.

When the market appreciates too quickly, you actually price too many people out of homes and there is a natural correction within the marketplace. You see this happen with the stock market where there is a correction if it is considered to be overpriced. Historically, quick appreciation or either real estate or the stock market results in a correction.

There are two primary investment tools in order to improve your financial position: real estate and stock market. With the stock market, you are buying into a business that usually makes money, but there is no guarantee that it will. If the business loses money as many have in 2007, then the stock will not perform very well for you. Additionally, how many businesses have gone bankrupt in the past 5-10 years? You always have that issue when investing in the stock market that the business will not be viable for the long term and minus inside information, which is illegal, an individual on the outside does not really know how viable the business actually is. Many people thought Enron was a very viable company, until the doors were locked and the employees dismissed.

Real estate is a much better option in which to build your wealth. Despite short term hazards, the long term position for real estate is always strong. First of all, they are not building anymore land, so it is a limited commodity. Secondly, real estate will always appreciate over the long term barring a major catastrophe. Real estate is the more solid investment tool for long term wealth building.

Should all of your investment dollars be in real estate? Of course not, since the number 1 rule of investment planning is to diversify. A first home and possibly investment property will always be beneficial to your bottom line and will result in increased wealth. On average, 23% to 29% of your wealth should be allocated to real estate with 11%-13% of your real estate investment being your primary home.

Call me if you are interested in improving your net worth via real estate in the Raleigh/Durham market. Even if you are looking outside this area, I can get you in touch with a successful agent who can help you.