5 HOME SELLER TRENDS - SPRING 2013

5 Home Seller Trends -- Spring 2013

It’s all good news!  Homeowners who endured years of declining home values will discover that the game has changed in their favor.

With low mortgage rates and home prices gaining momentum, an increasing number of buyers are out and buying this spring. The good news for sellers: The inventory of homes for sale is shrinking, so they have less competition and more control of the situation. 

FACT:  Recent month-over-month homes sales in the Triangle increased 3.85%

  

As more distressed homeowners regain equity in the coming months, many with high-interest loans will be able to refinance and perhaps cash out some equity. If you fell behind on your mortgage payments, you might get a second chance to modify your loan.

Homebuyers are losing bargaining power as the market shifts in favor of sellers. But home prices remain attractive for the most part, and low mortgage rates should stay on their side for a little longer.

Here are five selling trends you should expect to see this spring.

1: Fewer Home Options, Higher Prices and Bidding Wars

·   Demand -- from homebuyers is growing faster than the supply of homes for sale, according to data from the National Association of Realtors.

·   Competition -- Buyers are encountering bidding wars in the Triangle – I have negotiated several in the past month alone! 

2: Loan Modifications Made Easier -- For Some

·   Homeowners who are behind on their mortgages may get a hassle-free opportunity to reduce their monthly payments.  The Federal Housing Finance Agency will require mortgage servicers to offer a streamlined modification program to borrowers with loans owned or guaranteed by Fannie Mae and Freddie Mac, starting in July. The offers will be sent to homeowners who are at least 90 days behind on their loans but no more than two years behind. To qualify, borrowers must owe at least 80% of the home's value.

For more information on these loans:  http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/faqlm

3: Equity Loans and Cash-Out Refis Are Back -- Sort Of

·   Nationwide, about 1.7 million homeowners regained equity in their homes last year, and an additional 1.8 million are close to it, according to a recent study by CoreLogic. All they need is home values to go up by another 5%.

·   Home as ATM: Lenders remain somewhat reluctant because these types of loans contributed to the mortgage meltdown as homeowners turned their homes into ATMs. But borrowers who have good credit scores and sufficient equity should be able to find lenders willing to do cash-out refis and home equity loans this spring.

4: Mortgage Rates Rise at a Snail's Pace

·   Mortgage rates are expected to creep up this spring but should remain low.  This will continue to bring more buyers out.

·   Up just a little: The Mortgage Bankers Association estimates the 30-year fixed rate will reach 3.9% by the end of the first quarter this year. 

5: Short Sales and Foreclosures

·       Sellers are more willing to venture into this territory in order to corral their finances and move forward with their lives.

·   Shadow inventory: I’m sure you’ve heard this term – the ominous, looming & dooming glut of distressed homes that were going to flood the market and ruin it for everyone. 

***NEVER HAPPENED – NOT GOING TO HAPPEN***

·   These types of homes currently on the market are priced accurately – there is no acceptance of bids thousands less than asking.

I have an excellent team of lenders and attorneys who are expert in short sales and foreclosures.  My clients have been surprised at the wonderful help & support they received.  If you would like to explore any of these options, give me a call. 

THINKING OF SELLING?  Now’s the time!  I’ll be happy to meet with you and show you what’s going on in your neighborhood.  Together we will develop a successful strategy to help you sell quickly and for a great price.

BE SAVVY...CALL THE SMART REALTOR

Elizabeth Scott, Realtor®, Broker

e-PRO, Strategic Pricing Specialist

Fathom Realty NC, LLC      
Phone: 919.306.9699
TheSmartRealtorNC@gmail.com

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Are You in Danger of Losing Your Home Equity?

Are You in Danger of Losing Your Home Equity?

New Tax Code Changes being discussed in North Carolina will have serious repercussions for homeowners

I’ve heard the word “tax” defined as the action of taking the money that people have earned and giving it to institutions that may not have earned it.  Are you aware of what’s currently going on with regard to potential tax code changes here in North Carolina?  Here’s a brief overview.

In 2012, the state of North Carolina collected $10.27 billion in personal income taxes; over $1 billion from corporate income taxes, and over $5 billion from sales and use taxes.  New plans being discussed by elected leaders would either reduce or remove personal and income taxes.  In place of the personal and corporate income tax could be a series of new taxes to make up the difference.

Currently there are four bills filed in the NC Senate, with more likely to come.

• Senate Bill 677 – Reduces and reforms the corporate income tax.
• Senate Bill 669 – Scales down personal income taxes over a three year period.
• Senate Bill 394 – A major overhaul of the state’s tax code. This bill includes eliminating the mortgage interest deduction, along with the property tax deduction.
• Senate Bill 363 – Repeals most state and local privilege taxes and replaces them with a simplified business privilege tax.

Tax Reform and the Mortgage Interest Deduction (MID).

The MID saves the average homeowner thousands of dollars—each year—on their income tax return.  More than 60% of the families who claim the mortgage interest deduction have household incomes between $60,000 and $200,000, according to the NATIONAL ASSOCIATION OF REALTORS®.  Homeowners already pay 80% to 90% of the income tax in our country, and among those who claim the mortgage interest deduction, almost two-thirds are middle-income earners.

Tax Reform and Sale of Property— A Suggested “Transfer Tax” or “Home Tax”

Various tax reform plans have suggested imposing an additional “transfer-tax” on the sale of land or a home, using the term “conveyance fee”.  But it’s really just a home tax.  This is the same tax that voters and homeowners fought hard against in 2007 and was defeated 24 times on 24 local ballots with an average 78% margin against the tax.  It’s the same tax that would strip people of their hard-earned equity:  the equity many people plan to use for their children’s education or for their own retirement. 

Tax Reform and Services: What’s it mean for homeowners and property owners?

 In order for the state to lower or eliminate the personal and corporate income tax, some of the proposals include imposing a sales tax on services.  An 8 percent tax on services would have a detrimental impact on homeowners trying to sell their homes.  Imagine an 8% tax on the services provided by an attorney; an 8% tax on the appraiser; an 8 % tax on the home inspector; and an 8% tax on the services for using a REALTOR®.  It would add thousands to the cost of a typical home. 

Yes, you can make a difference!  Let your representative know how you feel.  
Here’s how to find out who they are & how to contact them:

How to Contact My Senator

How to Contact My Congressman

Are you looking to relocate, buy or sell a home here in the Triangle, NC?  Give me a call!  I have all the Real Estate information & resources you need.

BE SAVVY...CALL THE SMART REALTOR

Elizabeth Scott, Realtor®, Broker

e-PRO, Strategic Pricing Specialist

Fathom Realty NC, LLC      
Phone: 919.306.9699
TheSmartRealtorNC@gmail.com

Search for Homes Now

Great Info on our Local Real Estate Market

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Six Steps To Buying a Home in 2013

STEP SIX:  Closing on Your New Home – It’s the Big Day!

HOW DOES A REAL ESTATE CLOSING – SETTLEMENT – WORK IN NORTH CAROLINA?

Before closing on your property, you and your agent will make a final walk through and inspection to ensure that all terms of the contract have been met.  This inspection is generally made on the day before or the day of closing.

Here in NC, you will be provided with a Preliminary Settlement Statement (also called the HUD) a day or so prior to the closing for you & your agent to review & make sure that all credits & expenses have been allocated properly.  All costs involved with the purchase of the home will be included, even those you may have paid already (e.g., the home inspection).  Be sure to go over this with your agent to be sure you understand each line item.

I (or a representative from my office) is always there with you at the closing.  Most often the sellers and their agent are also present.  It is a great opportunity for you to meet & ask any questions about the home from the buyer.  At that time, your attorney will again review the HUD Statement with you.  Don’t hesitate to ask any questions you may have.

You will be asked to sign multiple copies of documents as originals are required.  These documents may include such things as your Deed of Trust and/or Mortgage Note, lender requirements, pay-back schedules, and other items that will be specific to your transaction.  Each item will be explained and, again, don’t hesitate to ask questions.

After signing all the paperwork, you will provide a cashier’s/bank/certified check for the balance due (you will be told that amount prior to the Settlement Date when you review the Preliminary HUD).  Now, the last step necessary is the recording of the deed. 

You may be given the keys to your new home, but the home does not belong to you until the deed is officially recorded at the town courthouse.  Often, I take my clients to lunch while we wait for word that the deed has been recorded.  Once we get word, you are free to head on over to your new home & start decorating & moving your things in.

Congratulations!  You are a Home Owner!

I am really enjoying hearing from you all on where you are in your process and learning how I can help you better understand the home buyer process.  Give me a call right now & I’ll get you started on your path to owning a home.

Elizabeth Scott, Realtor®, Broker

BE SAVVY...CALL THE SMART REALTOR

e-PRO, Strategic Pricing Specialist

Fathom Realty NC, LLC      
Phone: 919.306.9699 theSmartRealtorNC@gmail.com

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I'M NEVER TOO BUSY FOR ANY OF YOUR REFERRALS!

SIX STEPS TO BUYING A HOME IN 2013 - STEP FIVE

STEP FIVE of Six Steps to Buying a Home in 2013

Preparing to Close!

You’ve found the perfect home and your agent has helped you negotiate a great deal.  Here’s what happens next:

Due Diligence and Inspections:  Here in NC, a small, non-refundable dollar amount is given by the buyer to the seller so they have time to inspect and make a final decision. If the sale closes, this amount is credited to the buyer. If the sale does not proceed, the seller keeps the amount.  You agent will recommend a wise amount to offer and also how much time you will need to get things in order before closing.  During this Due Diligence period you will need to:

·        Get your final loan approval.  Start on this first as you will want your lender to immediately schedule the…

·        Appraisal:  A home appraisal specialist is called in by the lender to review the property and determine the value.  He will compare it to current and recent past activity in the neighborhood to be assured that the price you have agreed upon is realistic. 

·        Attorney, Title Exam & Closing:  Your agent can recommend a good real estate attorney who will schedule the closing, and immediately begin the title search.  The title search will provide the complete history of the property to make sure there is no problem with the title and you will also be asked to get title insurance to protect against any future claims. 

NOTE:  The attorney is paid for and works for the buyer, which works well in most cases.  Sellers are advised to get their own attorney if the transaction is complicated.

·        Home Inspection:  Your agent can recommend a licensed home inspector who will come in to check the home for a variety of items that are required by the state to be sure the home is safe & sound.  The purpose of an inspection is to assure that the home is functioning as intended - not look to make a list of desired updates.  Items checked include:  plumbing, HVAC, wiring, walls, ceilings, floors, windows, doors, foundation & basement, attic & roof.  He will recommend another professional to come in to assess if something is not quite right.

·        Radon Inspection:  Radon is a colorless, odorless, tasteless radioactive gas that occurs naturally in the ground in many areas.  Breathing home indoor radon causes nearly one hundred times more deaths each year than carbon monoxide poisoning.  Radon is the second leading cause of lung cancer behind smoking.  It does occur in our area & you want to test for it

·        Septic & Well Inspections:   Unless your home has city water & sewers

·        Wood Infestation:   Your agent can recommend a licensed professional to check for wood destroying insects.  According to my inspector, there are two kinds of homes here in NC; those that have (or had) termites and those that will get termites.  You don’t know what sort of prevention the previous owners did and you lender may well require this as part of your loan.

·        Property Insurance:  You will need to have property insurance scheduled to start on the date of closing.  Begin shopping around now.

·        Schedule your mover now, especially if you want to move on a weekend.  Many movers are booking several weeks to a month or more out. 

I provide my buyers with detailed information and estimated costs for all these items so they know what to expect.

Earnest Money:  An additional amount, as recommended by your agent, will also be given, either with the offer or at another agreed-upon time prior to Settlement.  The purpose of this money is to show that you are serious about purchasing the home.  The Earnest Money is refundable at any time during the Due Diligence period if you choose not to proceed with the purchase.  It is credited back to the buyer at the closing.

As you move closer to the Settlement date, you may beging to appreciate your expert agent even more, as she continues to monitor, track and keep everything moving forward smoothly as you move closer to moving into your own home!

If you’re looking for a real estate professional to help, guide, and advise you through the largest financial transaction you will probably make in your lifetime – BE SAVVY..CALL THE SMART REALTOR

Elizabeth Scott, Realtor®, Broker

e-PRO, Strategic Pricing Specialist

Fathom Realty NC, LLC      
Phone: 919.306.9699
TheSmartRealtorNC@gmail.com

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SIX STEPS TO BUYING A HOME IN 2013

SIX STEPS TO BUYING A HOME IN 2013

STEP FOUR - Time to Go Shopping

You’re more than half way there!  You made the decision that home ownership is the right thing for you; have obtained pre-approval and have a great agent lined up.  Now the fun starts -- it’s time to look at homes. 

Make sure your agent clearly understands your interest in terms of location, size, age, etc.   Do you have a preference for any particular features?  Two story or single floor plan?  How many bedrooms and baths do you need?  If your new home must include a fireplace, make sure to communicate that information.  My clients and I take time for a thorough discussion first so I can help him/her find the perfect house.  No point in wasting time looking at detached, single family homes when you really want a condo or townhouse. 

There are more than 22,000 homes for sale here in the Triangle.  A list of features can focus your search and help to clarify what is most important and what is least important.  While touring homes, make notes on each property.  I give my clients a great chart that they can use for each home to help them remember which house had what.  Without this, they all meld together in our memory.

You may also want to take along a digital camera.  Take a picture of the listing sheet first so you can remember which photos go with which home.

If you can, take a ride around neighborhoods or subdivisions that have homes you like.  This way you can get a feel for its proximity to highways, shopping, schools, and whatever is important to you.  

Once you have narrowed your search to a particular area or subdivision, ask your agent to research property values in that area.  Please, however, do not ask your agent to provide you with comparables on every single listing.  This is a time-consuming activity & only makes sense for those homes that you really like.

You found a great house and want to buy it.   Hooray!  With the help of your agent, you will submit an offer to purchase with the type of financing (see Step Two) you desire.  

Before signing, read it carefully and make sure you understand every detail.  I sit with my clients for each offer and review all the paperwork.  Coffee is helpful as there are lots of forms.  It helps to have an experienced agent who knows these forms well & can explain them simply.  

You’re almost in your new home now!  Doesn’t it feel great?

Stuck on a step?  Ready to move on?  Give me a call!

Be Savvy...Call the Smart Realtor
I'm never too busy for your referrals

Elizabeth Scott, Realtor®, Broker
e-PRO, Strategic Pricing Specialist

Fathom Realty NC, LLC      
Phone: 919.306.9699
TheSmartRealtorNC@gmail.com

Search for Homes Now

Great Info on our Local Real Estate Market

My LinkedIn Profile

SIX STEPS TO BUYING A HOME IN 2013

Six steps to Buying a Home in 2013

 

Step Three – Select a Real Estate Agent

 

Buying a home can be time-consuming and stressful.  A good real estate agent can do much of the legwork for you and help to make the process fun and memorable.  Here in the Triangle, there are more than 22,000 homes available for sale.  That’s a lot of choice!  The key is finding the right agent who will respond to your needs. 

 

First, ask your friends who they used and if they were satisfied.   Beware of part-time agents who aren’t always available to you because they usually have another job.  Look for a full-time agent.  You want someone who is out there all day, every day and knows what is going on in the market.

 

Did you know that here in North Carolina, all real estate brokers work for the seller?  Until you sign a Buyers Agreement with them, that is – then they work for you.  A good agent will explain this to you and will review the required “Working with Real Estate Agents” pamphlet.  

 

Expect a home-buying education, not a scripted sales pitch. Competent agents help their buyers to think clearly as the home-buying process unfolds. For example, if a house is a good buy, your agent might suggest you look past the dated wallpaper and paneling and look at the space and structure instead. Likewise, a cute house with curling shingles and too much deferred maintenance may not be worth the asking price. Or if you decide to buy with the intention of building an addition, the agent should advise you to check the zoning before making an offer. 

 

Keep in mind:  agents here in NC cannot comment on what is a “good” neighborhood.  We cannot discriminate by family, race, color, national origin, sex, religion and must abide by Fair Housing Laws. 

 

When you have narrowed your choice to one or two agents, schedule time to visit with each of them and assess their personalities.   Determine their knowledge of the area and ask them questions about their expertise.  Happy customers = good referrals.  Ask for a list of referrals.  You will know that you have found ‘the one’ because you will feel comfortable with them.  This is important as you are likely to spend a considerable amount of time with that person.

 

Agree to sign a buyer's agency agreement after you have met with an agent. Some people sign an agency agreement after attending a showing given by the agent. Working with a seller's agent is a mistake -- any information you reveal will become leverage that the seller can use in a purchase negotiation. If you go to open houses, do not discuss anything with the agent there about your budget, moving timeline, or other financial information.  That agent does not work for you.  A buyer's agent is legally required to maintain your confidentiality, disclose material facts to you and maintain loyalty to you.

 

For this reason, if you call me and want to buy one of my listings, I will refer you to another agent so that there is no confusion as to who is representing whom.  Do you really think your agent can be fair and unbiased when their first obligation is to help the sellers get the best price for their home?

 

How is your search going?  Getting tired of sitting up late at night clicking through sites that have outdated information?  Wishing for the advice of a trusted and knowledgeable advocate?  Call me and let’s chat. 

Elizabeth
Elizabeth Scott, Realtor®, Broker
e-PRO, Strategic Pricing Specialist

Fathom Realty NC, LLC       
Phone: 919.306.9699
TheSmartRealtorNC@gmail.com

www.Elizabeth.FathomRaleigh.com
www.TrianglePropertyLines.blogspot.com
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Be Savvy…Call the Smart Realtor.  I’m never too busy for any of your referrals

Six Steps to Buying a Home

SIX STEPS TO BUYING A HOME in APEX, CARY, HOLLY SPRINGS, FUQUAY-FARINA, RALEIGH or anywhere in the TRIANGLE NC area

STEP TWO - PREPARATION

Though it may feel backwards, it is wise to shop for a mortgage before shopping for a house.  Actually, it is not only wise, but a letter of qualification is now required in our local real estate market to place an offer on a home.

You must be able to determine how much you can borrow, and in turn, how much house you can buy.  The amount of money you qualify for will depend on several factors including your down payment, credit history and your length of employment.  Based on information you provide, your lender can estimate how much money you can borrow before applying for a loan. This non-binding process is called “pre-qualifying”.  There is no obligation to use that lender, and there is no cost to you.  Don't let this be your answer when asked, "How much home can you comfortably afford?"

I DON'T KNOW

Your lender will also determine your credit worthiness by pulling your credit reports and verifying your credit score. With this information the lender can commit to lending you a specific amount of money, pending property details.  The lender will then provide you with a letter stating how much mortgage you qualify for. This process is called “pre-approval”. With a pre-approval letter, you can shop for a home with the confidence of knowing exactly how much you can afford.  The pre-approval letter also confirms to sellers that you have the financial ability to complete a purchase. Because pre-approval takes a closer look at your background and includes a credit check, it holds more weight with sellers than pre-qualification.

Your credit score will have a major impact on the entire purchase process, including the rate at which you can borrow money.  During this process, it is important to avoid any major purchases and/or lifestyle changes.  Too many times I have heard folks who, once they found out how good their credit was, run out and buy a new car, boat, or other item which then brings down their credit score!  These banks can be sneaky!

In today’s real estate market, it is not just recommended you get your loan in order first, it is required.  Sellers will only respond to offers that are accompanied by a letter of qualification from a recognized lender.  And, as homes are selling quickly, we cannot assume that the home will wait for you while you go & and figure out if you can afford that perfect home.  If it’s perfect for you, you can bet it will be perfect for others, too. 

 

Step Two may also be to contact your Realtor. I have some fantastic lenders who have been extremely helpful for my clients – here are a few you may want to check out. I recommend you contact more than one as not every lender has the same program. Some may have lower rates but higher closing costs and vice versa. They will help you figure out what plan will work best with your budget. 

REQUEST INFORMATION ON RECOMMENDED LENDERS

Did you know that 90% of Americans have some credit issue or ‘ding’ on their report?  Here is a company I highly recommend to help you get in financial shape.  And, they are not just for folks who have credit problems – they can help you get your credit score up so you may qualify for a better loan package, thus saving many thousands on the lifetime cost of your loan!  Again, no cost, no obligation -- can you really resits FREE?

 

CREDIT SERVICE SPECIALISTS 

 

So, have you completed Step One?  Ready for Step Two?  Can't wait for Step Three?  Get in touch with me today and I'll be happy to help!

 

BE SAVVY...CALL THE SMART REALTOR

Elizabeth Scott, Realtor, Broker

e-PRO, STrategic PRicing Specialist

Fathom Realty NC, LLC

919-306-9699

TheSmartRealtorNC@gmail.com

www.Elizabeth.FathomRaleigh.com

www.TrianglePropertyLines.blogspot.com

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