Economic Update & Local Housing Impact

I wanted to reach out and touch base regarding the local real estate market in relation to all of the ongoing news and economic issues. The Triangle real estate market is strong compared to anywhere else in the country, with an average appreciation of +4.8%, the USA appreciation rate is -4.8% . Although activity on listed properties has slowed, WOW what a Buyer’s market! If you are interested in investment purchases or “moving up” now is the time. Email Subscribe@NoseyNeighborz.com and put the name of your favorite subdivision in the subject line to begin receiving notices of new listings on the market in your favorite neighborhood.

The 2 main reasons buyers in the Triangle are not willing to “pull the trigger” on a house purchase are 1) 57% are skeptical of the market conditions and 2) 62% cannot sell their current residence . The good news is that 61% of people surveyed feel that market conditions will improve. If you know someone who is considering Buying or selling real estate anywhere in the country tell them to get off the fence and take advantage of this market.

Making a real estate purchase is the best way to contribute to turning this economy around. Interest rates are low and prices are a steal – the bank will give you a loan if you can actually qualify and afford the purchase (there is no more “free money”). Call our team for more information about how to interpret the economic impact on real estate and lending.

A few tips - Be Smart, Shop Around, and Hire a Negotiator who will help you take advantage of this market. If you are looking to purchase an investment property or “move up” as a Seller, call Sara & Team for a consultation on what your home might sell for in today’s market. Working as your real estate partner, we can help you capitalize on equity on the Buying side of the transaction.

Thanks, Sara & Team

Sara & Team are Touring Raleigh Downtown!

Hello everyone! I participated in a tour of several new condo complexes in downtown Raleigh recently with the Women's Council of Realtor's. My favorite was the West located just off Glenwood Avenue. There are many great buys in this market right now so if you have an interest, please call our Team and let's shop for a condo! Take a sneak peek at the roof top view of the West below:

Thanks for stopping by, Sara & Team.

FHA Stimulus Package 2008

Have you heard? How will the FHA Stimulus Package affect you? Here are the basics:

The Economic Stimulus Act of 2008 will temporarily increase the loan limits for the Federal Housing Administration (FHA) and the conforming loan limits (the GSE limit) for Fannie Mae and Freddie Mac (the GSEs)

Currently: FHA loan limits for 2008 for single-family properties were 95% of the area median house price, as determined by HUD. for areas throughout the country. The GSE limit for 2008 in North Carolina was $417,000.

The Plan: FHA and the GSEs' loan limits would increase to 125 percent of the area median house price for the property up to a statutory cap of 175 percent of the current GSE limit of $417,000 or $729,750 for a single-family property. Neither the new FHA nor the new GSE loan limits are uniform across the country.

For more information, please contact Ken Markison at kmarkison@mortgagebankers.org

First Impressions

While I have enjoyed working with many of you throughout 2007 and look forward to working with even more of you in 2008, I do want to leave you with one more piece of advice. This may seem simple and insignificant, but I assure you it is the first step and a very key step in the selling of a property. In two words, Curb Appeal.

Curb appeal is synonymous with the “first impression” for your home. When you meet a person face-to-face, 93% of how you are judged is based on non-verbal data. In addition, 70% of sales are made in the first 12 second. Relating this information to your home for sale, a potential buyer’s mind is set into motion long before even reaching the front door. A freshly mowed lawn, cleanly laid mulch and well groomed shrubbery shows that you not only take great care of your yard, but more importantly you take great care of your home. It also sets the mood for the entire showing and compels the potential buyer to look for the extraordinary features in you home, rather than examining the property for additional oversights.

I’ll be the first to tell you I have had clients that have pulled up to a home that is high on their list and decides not to go inside based on what they are able to see from the car window. Even if I can convince them to continue with the showing, their minds have been made up. I take very seriously the presentation of my listings from the point someone pulls into the driveway. I feel very confident this is one of the reasons my listing sell far below the regional average and can not stress enough how much it will help you.

Schools and the Triangle...

“What does the current education system in the Raleigh/Durham area offer our youth?” When I hear this question asked by a family member relocating to our area it brings an immediate smile to my face. I usually take a moment and offer just some of the facts about our area and allow the individuals to answer the question for themselves... Our public schools rank among the best in the nation. The private schools, like Cary Academy and Ravenscroft, further strengthen our offerings to the next generation. With the start of 2008, Wake County has become the largest school district in North Carolina. The public school system consistently ranks in the top 5 in our nation. Our classroom sizes remain below the national average in teacher to student ratio and there are new schools being built every year. More information on Wake County public schools can be found at http://www.wcpss.net/

If looking toward further education, the Raleigh/Durham area houses some of the best. With Duke University, NC State University and the University of North Carolina all located in a 15 mile radius, our system for creating young professionals rivals any in our country. Duke University is regarded as one of the nation’s best private educations available. NC State is ranked in America’s best value colleges in the 2007 Princeton Review. The University of North Carolina placed first among best value among public universities by Forbes Magazine in 2007.

Finally, we house two of the highest nationally acclaimed research areas - a perfect place to continue expanding educational interests through internship or special projects. Research Triangle Park, RTP, spans 7,000 acres and 16 square miles and is first among research designations in our country. Over 39,000 world class employees totaling in excess of $2.7 billion in annual salary consider this area home to their professional careers. It houses some of the most respected companies throughout the world, such as GlaxoSmithKline, IBM, and Research Triangle Institute. Centennial Campus resides on NC State Campus and is tagged a multi-disciplinary R&D neighborhood. It covers 1,400 acres and continues to grow. At current there are 61 corporate and government partners and 73 state research centers. It also opened it’s first sustainable “green” building in 2005.

Raleigh Real Estate Market

As my weekly ritual goes, I read between 15 and 20 articles surrounding the nation’s real estate market and its relation to the Raleigh, North Carolina market. This week amongst all of those articles, one particular number caught my eye, -3%. In an article by CNN Money (http://money.cnn.com/2005/12/29/real_estate/buying_selling/handicapping_housing_markets/index.htm) this percentage, -3%, appeared and represents the amount that homes in the Raleigh market are overvalued/overpriced. In other words, it means our homes are worth more than we are buying them for.

The percentage a home is overvalued is the amount of equity in a home that is not justified and can be lost when there is a downturn in the economy. Unfortunately, the national economy is in one such downturn. Raleigh is in a position where our home values will not be hurt and we are continuing to benefit from a strong local real estate market. In markets such as Naples, Fl and Sacramento, CA, homes are priced >60% the current value, hence it is more risky to purchase a home. These homes are losing value and the homeowners are losing money. As a result, owners are not able to list their homes, because they now owe more than they are able to sell the property for.

On the other hand, purchasing a home in Raleigh is currently a wise investment. Our homes are appreciating in value and the prices they are being purchased for are not only safe, but justified and often allow a buyer instant equity upon closing on a home. My heart goes out to those families in other markets who are experiencing difficulty selling their homes. I am relieved for the Buyers and Sellers in the Raleigh real estate market, the #1 Home Sellers market in the nation, to know that that is not a challenge we face.

Time to Sell Your Home?

Placing your home for sale is one of the most important times of your life. While the excitement sometimes causes nervousness and even a sleepless night or two, it doesn’t have to. The key is to look at this event in its simplest form, the goal. The goal of selling your home is to make the most money possible. Let’s take a look at the 5 most important steps that need to be taken in order to achieve your goal:

1. Chose a Listing Price
   The correct business plan takes a great deal of research and time to produce. Keeping in mind the ultimate goal is to make as much money as possible, you want to be cautions of agents who make the mistake of listing your home too high ("Here's what I can get for you if you list with me!"). In order to make that ideal amount, you not only have to sell your home for as much as possible, but you need to do it while keeping cost to a minimum and having settlement in the shortest possible timeframe. When a home is listed too high, it sits on the market, advertising costs increase, and your mortgage payments continue to come due. If the property is listed accurately, more traffic will visit your home, the offers will come sooner, negotiations will be quick, and you reach the ultimate goal, you make the optimum profit.
2. Check Your Mortgage Payoff
   The mortgage payoff is the exact dollar figure you currently need to satisfy the amount you owe. You can’t develop an achievable goal without first knowing what you still owe to the bank.
3. Estimate Your Costs to Sell
   The second thing you must do is identify the additional costs that you are going to incur through the process of selling your home. These costs include, attorney fees, prorated costs for your share of annual expenses (such as property taxes, home owner association fees), surveys, inspections, and real estate commission if you choose to use an agent.
4. Make Necessary Repairs
   Inevitably there are those few tiny areas that you have been meaning to fix, but you just haven’t gotten around to it yet. Well, in order to reach the profit you are hoping to gain, it’s time to get out your tool box. Taking a weekend and sealing that tiny leak under the sink or putting a fresh coat of paint in the baby’s room can make all the difference.
5. Stage Your House to Show
   There is no doubt an inner peace comes over you when you pull into your driveway at the end of a long day. The trick is to produce this feeling for the prospective buyers. Freshening up the yard, organizing the closets and cabinets, and washing the windows will all help set the tone for visits from buyers.

Once you have carefully made all of the necessary arrangements surrounding these 5 steps, you are ready to sell your home and reach that ultimate goal of making money. The best advice I can give is to remain calm, make your decisions wisely, and trust in your agent’s expertise. While I don’t know what information you receive will from others, I can assure you the SaraSoldItAgain Team will provide only the most accurate of information and work diligently until your home is sold and your goals are reached.