iRaleighRealEstate Blog

The Freeman/Davis Home Team sells a lot of Raleigh homes and the real estate home inspection is one of the items that always brings anxiety to many home buyers and sellers.  A big issue that we often see is what’s not seen in the initial showings, or for sellers, what’s not seen because we have seldom, if any, reason to take a look.

It’s dark and cramped, and most of us would rather avoid it. But your crawlspace is one of the most important parts of your home to monitor when it comes to possible damage from moisture.  Rain, snow, plumbing leaks, condensation and landscape irrigation are all sources of water that can silently turn your crawlspace or basement into a home maintenance nightmare. Damp conditions or standing water can lead to serious damage in the form of wood-destroying insects, rot and mold. These conditions will eventually cause structural damage that is costly to repair, as well as contributing to poor indoor air quality that is detrimental to your health and comfort.  Late winter and early spring is an optimal time to inspect your crawlspace, as it allows you to see wetness on the ground and where it is coming from. You are also less likely to encounter insects and other pests during the winter than in the warmer months. Look for standing water, wetness or discoloration of the foundation walls, or a damp feel or smell.

For help with crawlspace moisture and other home repair and maintenance services, visit www.HomeSearchRALEIGH.com and contact the Freeman/Davis Home Team at 919-649-6638 or via the contact button on our website.

With only 8 more days left to take advantage of the $8,000/$6,500 home buyer incentive, I thought I’d pass along some tips on finding the perfect home. It’s not too late to get under contract by April 30th, although for many of you, that may be unrealistic. A home purchase is one of the most important decisions you can make; The Freeman/Davis Team is ready to help, but only when you’re ready to start the process. Search for homes the no-pressure way by checking out www.HomeSearchRALEIGH.com and our MLS search tools…and check out these tips to help you in the decision process.

Zeroing in on a new home can be fun and exciting. But it can also be tiring and confusing. So before you start looking at houses, write down what you want in your new home. Start with the size of the house, number of rooms, most convenient layout, and desirable features. Prioritize the list, noting beside each item whether it is “nice to have” or “a must.”

Plan for the foreseeable future
As you make the list, consider how long you will likely be in the house and how your family and lifestyle may change over time.
Keep your goals in mind
Bring the completed list with you when we plan the first house-shopping tour.
Be a comparison shopper
As you preview each house, jot down how it compares with your list. Fill in the blanks as you see fit–yes/no, good/fair/poor, etc. Keep your notes on each house to compare homes until you find the right house. Also note the features you would like to change in each house.
Housing Needs Checklist
Requirements

HOUSE AND LOT
Square footage __________________

Number of bedrooms __________________

Number of baths __________________

Closets/storage __________________

Basement __________________

Interior condition __________________

Yard space __________________

Fence _________________

Patio or deck __________________

Garage __________________

Energy efficiency __________________

Exterior condition _________________

THE NEIGHBORHOOD
Parking __________________

Overall appearance __________________

Traffic and noise __________________

Snow/trash removal __________________

Fire and police __________________

Schools: Bus or walk __________________

Distance to school __________________

School district __________________

Quality measured by SAT scores or other criteria__________________

Amenities __________________

Distance to job __________________

Childcare __________________

Public transportation __________________

Major highways __________________

Stores/supermarkets __________________

Medical facilities __________________

Recreation _________________

Community services __________________

Restaurants __________________

Churches/synagogues __________________

Airports/trains __________________

Are you or a loved-one in medical debt? You’re not alone. The Commonwealth Fund, a private foundation, reports that 79 million adults have medical bill problems, despite the fact that 62 percent of them have medical insurance. You can lessen your financial pain by taking these steps:

• Understand your insurance coverage. Make sure you’re getting the coverage you’re paying for by spending some time on your insurance company’s website and studying your plan. Know your deductible and co-pay requirements. Be proactive, and challenge insurance company denials.
• Tell your doctor that cost is a concern. Ask questions about the necessity of tests and procedures. He or she may make lower-cost recommendations or work with you in talking to hospitals.
• Negotiate up front. Doctors and hospitals are becoming open to negotiation. Try asking if the price would be reduced if you pay cash. Different hospitals charge different prices for the same services so, if you can, ask your doctor’s office for the “current procedural terminology” or CPT code for the procedure and shop around to compare prices. For a small fee, you also can access reports on doctors and hospitals (including pricing) in your area at www.healthgrades.com.
• Ask for an itemized bill. As many as 9 out of 10 bills from hospitals and providers contain errors, such as double billing for the same services with different descriptions. If you are too ill or don’t have time to scrutinize your bills, hire a medical billing advocate from such organizations as the Medical Billing Advocates of America at www.billadvocates.com.
• Discuss monthly payments. If you’ve incurred a big bill, talk to the doctor and the hospital about a payment plan.
• Look for assistance. If you are struggling with medical bills, you may find help by visiting a site such as www.patientadvocate.org, which has a state-by-state directory of financial resources.

For more great information and to search Raleigh homes and Wake County real estate, visit www.HomeSearchRALEIGH.com.

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First impressions are often lasting impressions–particularly when a home buyer looks at a property. If a home doesn’t look good from the outside, chances are potential buyers will never walk through the door.

Well-maintained grass, trees, shrubs and flower beds are just the beginning. Plant some blooming flowers. Give your front door a fresh coat of paint and a new doormat. Make sure the doorbell works! Keep toys, bicycles, hoses, etc. out of sight. If you have an asphalt driveway, put a fresh coat of sealer on it. Create a solid, well-cared-for look and buyer traffic will follow.

TWO-MINUTE DRILL

We know lots of inexpensive ways to make your home more attractive to buyers. Find out more by reading our FREE online report, TWO-MINUTE DRILL: Timely Tips For Short-Notice Home Showings. Just click on the link to read the report. And feel free to call on us if you’re ready to list your home for sale.

Visit our family of real estate and Raleigh homes websites and search the MLS NC 24/7 at:

• www.HomeSearchRALEIGH.com
• www.FreemanDavisHomeTeam.com
• www.iRaleighRealEstate.com
• www.iRaleighHomes.com
• www.Facebook.com/HomeSearchRALEIGH

Raleigh homes will be an attractive buy even after the tax credit ends. While the Home Builders Association of Raleigh-Wake County is encouraging buyers to take advantage of the Federal home buyer tax credit before it expires on April 30, know that even once the credit expires, new home deals will still be available around the Wake County.

The tax credits have been beneficial and nearly 70 percent of all potential home buyers qualify for some form of the tax credit. As the population in Wake County continues to grow, many home buyers, who have moved from other areas, are now in a position to again purchase a home.

The Worker, Homeownership, and Business Assistance Act of 2009 that included the extension of the $8,000 tax credit for first-time home buyers and a $6,500 tax credit for move up home buyers will expire April 30, 2010. Qualified home buyers using either tax credit must be under contract by April 30, 2010 and close by June 30, 2010. Call the Freeman/Davis Home Team at 919-649-6638 and we help you find the right home in the next two weeks

The popularity of new construction is undeniable but when looking at new homes, most importantly you will want a REALTOR to represent you and only you in the transaction. If you walk in to the new construction model home and sign in and register, you may not be able to come back later with your own representation because the builders agent will be what is called the procuring cause of the sale. What this means to you is that the builders REALTOR marketed the home and that is the reason you found them so you might be stuck using the builders agent to represent you in the transaction. In my opinion, it is even more important to have a REALTOR represent you separate from representing the seller when buying a new construction home than it is when you buy an existing home. These reasons are many, but, mainly it is because you need to make sure that someone representing your interests is there to recommend a home inspection, negotiate for builder incentives and repairs to code requirements and help you determine what a fair market value for the home is.

Visit us online at www.HomeSearchRALEIGH.com and iRaleighRealEstate.com and see the buyer services we have for you. Our MLS NC search is there for your initial screening of homes but it is most important that you Contact Us for expert guidance along the way…AND BEFORE you enter a new homes community and talk with the builder’s onsite agent.

The Home Affordable Alternatives Program (HAFA) has released new guidelines that went into effect on Monday, April 5, 2010. These new rules are designed to streamline the process and allow more delinquent homeowners to sell their homes and get on with their lives. The program is voluntary, but offers incentives for borrowers and lenders to work together to prevent foreclosure. Here is a summary of some of the points that will have the greatest impact.

• A homeowner will be able to get a short sale approval in advance. This is huge! In the past, the banks wouldn’t even look at a Short Sale unless there was an offer for the property. The homeowner, real estate agent and the buyer were flying blind. The new guideline allows the owner to receive a pre-approval from the bank that includes the minimum net amount it will accept.
• Provides new incentives for the borrower to complete the process. They are now given $3000 for relocation expenses. This will make the transition much easier for the homeowner.
• Mortgage servicers will also receive $1500 for each completed short sale to cover administrative and processing costs.
• Under certain circumstances the homeowner may be able to be released of all liability for the loan.

What are the Qualifications?

The homeowner must be eligible under the Home Affordable Modification Program (HAMP) but delinquent and unable to pay for their mortgage. The loan must be less than $729,750, made before January 1st of 2009, and the home must be the owner’s primary residence. The homeowners’ mortgage payment is more than 31 percent of their before-tax income. Finally, their lender must be participating in the voluntary HAMP program in order for the servicer to benefit from the HAFA provisions.

The Freeman/Davis Raleigh Homes and Real Estate Team has complete details for you. Visit us online at www.HomeSearchRALEIGH.com and feel free to contact us. Ask about The Allen Tate Short Sale Assistance Program!

The Freeman/Davis Home Team with the Wolborsky Group at Allen Tate Realtors works with investors as well as our clients who select us to assist them in finding the right home in which to live.  In either case, you can confidently turn to us for expert advice. www.HomeSearchRALEIGH.com has complete search functions for all properties listed in the area.  When it’s time to take a look at your selections, call us or email us for a personal showing and complete buyer representation.

Thinking about buying your first home or your next one or an investment property? Today’s low interest rates, lower home prices and great selection are certainly motivating factors for a home purchase now. Remember, though, shopping for a home before you are pre-qualified for a loan is like putting the cart before the horse. The same can be said about writing a contract to buy a home if you aren’t pre-approved for a loan.

The first step in preparing to buy a home is understanding how and why lenders loan money. They’ll want to know where you stand financially, so you should figure this out before you do anything else. You need to determine how much money comes into your household each month — and how much goes out.

Step 1: Where You Stand
First, calculate all your total monthly gross income. Watch for ways to count more than just your regular pay. Sources of “hidden” income may include a raise that’s due before your first mortgage payment; a history of bonus income; a history of overtime income; and income from investments and rental property. If you receive child support or alimony, these can also be included.

Then make note of all your monthly debts — credit cards, student loans, car payments, etc. Do not include bills for monthly household expenses, such as utilities, groceries, telephone, transportation and so on, as they are not considered in your debt/income ratios.

Now write down any assets you could use for a down payment and closing costs: savings, gifts from a relative or friend, stocks and other investments. Be sure to budget some money for an emergency fund.

Now that you have a working snapshot of where you stand financially, the next phases deal with pre-qualification and pre-approval.

Step 2: Pre-qualification
Pre-qualification is simply a verbal exchange in which the lender estimates how much money a buyer can afford to borrow. The lender looks at your statement of income and debt and, assuming no extenuating circumstances, determines how much money you could afford to spend on a mortgage. This is called “pre-qualifying” and will only give you a guideline. Once you have a rough idea of how much you can afford, it is a lot easier to go home shopping (qualified loan amount + down payment = affordable price range). While writing a purchase offer with pre-qualification is better than doing so without, there is still another step you can take.

Step 3: Pre-approval
When it comes time to actually purchase a home, the lender you choose will start verifying all the information on the loan application and may find some inaccuracies in your application or some problems in your credit file that even you didn’t know about. If this happens, settlement could be postponed or even canceled altogether. Being pre-approved before making a purchase offer, however, can prevent such delays and headaches.

A loan pre-approval is a commitment from a lender to provide you with a loan for a specified amount — assuming the home chosen meets the lender’s requirements and your financial picture doesn’t change before settling/closing on the home. Pre-approval means the lender has verified everything you put on the application: income, employment, debts, credit history and more.

When you’re pre-approved for a loan, sellers have peace of mind that financing problems will not ruin the deal at the last minute. A seller is more apt to go with pre-approved buyers than with buyers who don’t really know if they can even get a loan. The home shopping process is simply easier once you’re pre-approved.

Ready to get started? Contact us today and we’ll be happy to provide a list of reputable lenders our clients have had positive experiences with.