Tag Archives: buy

To Buy or To Rent?

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Coldwell Banker Seaside Realty offers 4 questions to consider when deciding whether to BUY or RENT a home.

“To buy or to rent?” Recent graduates, young couples, relocating professionals and others have all asked themselves this question at one point or another. While each option has its benefits, the decision to purchase an apartment, condominium or house as opposed to renting, is complex and based on a number of factors. According to a survey from October 2010 from the National Association of Realtors, nearly eight out of 10 respondents believe buying a home today is a good financial decision. The question that remains is whether or not now is the right time to purchase a home for you.

For most people, deciding to purchase a home is the largest financial decision of their lifetime. Before making the jump into homeownership, potential home buyers should consider the “soft” lifestyle issues as well as the “hard” financial ones. The professionals at Coldwell Banker Seaside Realty have provided the following four financial and lifestyle questions to consider when determining if buying a home is the right decision for you:

  1. Do you have a steady income? At or near the top of every potential homebuyer’s mind is whether or not they can afford to buy a home right now. Buying a home remains a sound financial decision for those with documented income and a good credit history, and a steady income can provide a strong backbone for the initial down payment and future mortgage payments. The “Affordability Radar” tool on coldwellbanker.com is a great way to begin this planning and assess “how much home you can afford.  Don’t hesitate to speak with a real estate professional even before you’re ready to buy a home. Along with a financial planner, a real estate professional can help you answer and uncover questions about the cost of homeownership.
  2. Do you plan to stay in a home for an extended period of time? With proper planning, a home purchase has historically proven to be one of the strongest investments one can make. Along those lines, it’s imperative to understand that investing in a home is much different than investing in a stock portfolio. Homes typically appreciate in value over time while the owner builds his or her equity through monthly mortgage payments. If you anticipate staying in a home for only one or two years, it doesn’t necessarily mean buying is not for you, but you are less likely to see a significant financial return on your investment.
  3. Do you plan to sell a house in order to buy a house? A local real estate professional can help you understand current local market conditions and will help you make smart decisions when listing a home on the market. If you do not currently own a home that needs to be sold prior to purchasing a new one, now is a particularly smart time to buy. Even with lenders becoming increasingly more thorough in their approval process, mortgage financing is still widely available for those with a steady income and solid credit. High inventories and low interest rates give first-time homebuyers a tremendous amount of opportunity and flexibility in markets across the U.S.
  4. How do your other options compare? For renters, calculating month-to-month housing expenses is as easy as inquiring about the monthly rent and average utilities. The calculation gets a bit more complicated when considering the monthly cost of owning a home. A real estate professional can help you understand a range of financial considerations from annual property taxes to the tax incentives for owning a home.

“There is no one right decision when it comes to renting versus buying a home,” said Gordon Jones, president of Coldwell Banker Seaside Realty. “Each individual should take the time to look at their personal and financial situation to decide what will work best for their needs and lifestyle.”

Founded in Kitty Hawk, NC in 1990, Coldwell Banker Seaside Realty is a dynamic full service real estate company, servicing the entire Albemarle region. More than 50 licensed agents provide both residential and commercial buying/selling assistance in Northeast North Carolina. Offices located in Kitty Hawk and Elizabeth City, NC. More information can be found on the Coldwell Banker Seaside Realty website at www.ColdwellBankerOBX.com. Each Office is Independently Owned and Operated. Coldwell Banker and the Coldwell Banker Logo are registered service marks owned by Coldwell Banker Real Estate LLC.

Why Not Own It? 5 Reasons to Purchase a Home Now

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For most people, deciding to purchase a home is the largest financial decision of their lifetime. Rather than sitting on the fence, why not own it?, asks Coldwell Banker Real Estate. Mortgage rates are near historic lows and with home prices more affordable, right now is the perfect time to speak with a professional real estate agent and seize the opportunity to achieve the American Dream of homeownership.

According to a recent survey from the National Association of Realtors, nearly eight out of 10 respondents believe buying a home today is a good financial decision.  Based on this, the professionals at Coldwell Banker Seaside Realty have provided the following five reasons why now is an optimal time to get off the fence and consider owning the fence instead (and the home within it)!

  1. Homes are More Affordable – Home prices remain more affordable than ever before in markets across the country.  According to the Freddie Mac House Price Index, current housing prices are down 27 percent on average across the nation from peak values five years ago.  Coldwell Banker Real Estate showcased affordability levels in its 2011 Home Listing Report, which ranked more than 2,300 markets.
  1. Rates are Low – Mortgage interest rates remain near historical lows, which can mean lower monthly payments and/or shorter lending terms. Coldwell Banker Real Estate recently launched an online First-Time Home Buyer Resource Center that features content and tools to help educate potential first-time home buyers.

  1. Homeownership is Still the American Dream – Lifestyle changes such as marriage, having children and starting a new job are some of the most common reasons that people decide to purchase a new home. But the American Dream of homeownership is much more than just a piece of property, it’s a home. According to a recent Coldwell Banker survey of more than 300 consumers who purchased their home in the last year, 67 percent said the market afforded them the opportunity to buy a home sooner than expected and half said they found a home in a more desirable neighborhood than expected.

  1. Financing is Available – Though many people decide they want to purchase a new home based on lifestyle factors, the financial aspect of purchasing a home needs to be top-of-mind.  A potential homebuyer should conduct the necessary research to prepare for the home buying process. Today’s borrower needs to have stable employment of at lease two years; sufficient income to cover the monthly mortgage payment and living expenses; adequate savings to make at least a 3.5 percent down payment; and, in general, a credit score of at least 620.

  1. Timing is Everything – “Timing is everything,” a saying used to describe just about anything, is incredibly true when it comes to home buying.  When preparing to purchase a home, take the time to research other factors that could affect the home buying process.  For example, according to new loan limits published by FHFA and HUD, conforming loan limits will be reduced on October 1, 2011, which will decrease the availability and affordability of mortgage credit for many home buyers in 42 states.

Founded in Kitty Hawk, NC in 1990, Coldwell Banker Seaside Realty is a dynamic full service real estate company, servicing the entire Albemarle region. More than 50 licensed agents provide both residential and commercial buying/selling assistance in Northeast North Carolina. Offices located in Kitty Hawk and Elizabeth City, NC. More information can be found on the Coldwell Banker Seaside Realty website at www.ColdwellBankerOBX.com. Each Office is Independently Owned and Operated.  Coldwell Banker and the Coldwell Banker Logo are registered service marks owned by Coldwell Banker Real Estate LLC.

7 Tips For First Time Sellers

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MSN Real Estate has seven tips for first time home sellers.

1.Price it realistically from the start… take advantage of that sweet spot by pricing the house competitively right out of the gate

2.Be prepared to lose some money… the truth is that your house is worth what buyers are willing to pay, and not a penny more.

3.Promote, promote, promote… One question to ask as you interview real-estate agents: How will you reach the home’s target market?

4.Throw in some extras… Offering some extra appliances that otherwise would have caused you headaches to move, could sweeten the pot for the buyer to agree to buy at full asking price.

5.Clear the clutter… Keeping your house clean is important in every sale. But first-timers are likely selling smaller houses, and clutter can mean the difference between cozy and cramped.

6.Appeal to Lazy Buyers… The last thing a new homeowner wants is a to-do-list. Get the home ready before it hits the market.

7. Put upgrade money where it counts… If you want to spend some money to make your house memorable, ask someone who knows what will improve the market value. Most professionals will tell you fresh carpet and new paint are the biggest ‘bang for your buck’.

For more tips on selling your home, contact one of our agents at Coldwell Banker Seaside Realty or visit us online at www.coldwellbankerobx.com.

Outer Banks Real Estate Market – March Update

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The following summary is from the Outer Banks Association of Realtors (OBAR) “Monthly Statistical Report.” March was definitely a strong month for the OBX real estate market.

Summary – It would be an understatement to say that March was a good month for sales because March was, in fact, a fabulous month. March 2011 sales are at their highest levels since March 2006 and sales are 34% higher when compared to March 2010. It should also be noted that sales on Hatteras Island have shown a 58% increase over March 2010 sales. The number of listings placed in an under contract status continues to rise with sales being up 20% from March 2010. The specifics are detailed below:

Sales

o Residential – Up 14% from March 2010 (129 units vs 113 units)

o Land – Up 200% from March 2010 (36 units vs 12 units)

o Commercial – Up 50% from March 2010 (1unit vs 2 units)

Under Contract

o Residential – Up 11% from March 2010 (163 units vs 147 units)

o Land – Up 94% from March 2010 (33 units vs 17 units)

o Commercial – Up 200% from March 2010 (3 units vs 1 unit)

Increased Confidence in a Real Estate Market Recovery-Where do we go from here?

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The economy has always been, and will always be, cyclical. What goes up must come down, and visa versa. This goes for the real estate market as well. Recent reports have continued to show gains in existing and new home sales, increasing investor activity and an overall improvement in the market. These growth may not be substantial, but we continue to be moving in the right direction for restoring confidence among consumers and industry experts.

What’s Ahead

As the busy time in the real estate cycle approaches, RIS Media is predicting that we can expect 2011 to be better than 2010, with healthier trends compared to the abnormal boom times we saw in the early 2000’s. The market ahead will be driven by hopeful buyers who are regaining their financial footing and building their savings, as well as a generational wave of consumers just reaching their prime home-buying years.

With the damage caused by default payments and foreclosures subsiding, homeowners will be managing responsible mortgage terms, affordable payments and the ability to sell their home with equity.

Could this be the faint glow of the light at the end of the tunnel?

Light at the end of the tunnel?

Light at the end of the tunnel?

February Housing Scorecard Shows Increase in Existing Home Sales as Home Affordability Remains High

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Although the real estate market remains rocky, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury released the February 2011 edition of the Obama Administration’s Housing Scorecard. The newest figures show an increase in existing home sales as home affordability remains high.

In the face of the deepest economic recession and housing crisis since the Great Depression, these statistics show signs of a slow but favorable recovery. The Obama Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market.

With good news coming in, we must keep in mind that the market remains extremely fragile. HUD recognizes they cannot stop every foreclosure but is confident that responsible homeowners are still fighting to make ends meet, and with multiple government programs in place, they plan to put help in reach of those homeowners as early as possible.

Since April 2009, record low mortgage rates have helped more than 9.5 million homeowners to refinance, resulting in $18.1 billion in total borrower savings. These rates are also allowing potential homebuyers to finally be able to afford a new home. With mortgage delinquencies on a downward trend and confidence up, financing may be available to candidates who may not have qualified before.

Decent news for a housing market treading water right now.

Will Real Estate Turn Around in 2011?

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Is relief finally on the way in 2011? The Wall St. Journal recently published an article indicating that 2011 could be the year real estate turns around. It’s hard to be sure, but there may be some good news in 2011 about the nation’s struggling housing market…or at least, the bad news could come to an end.

Either way, it will be welcome relief for current homeowners as well as for potential real-estate investors. Reasons to be optimistic have been sadly lacking since the housing bubble burst.

Last week we learned from the widely watched S&P/Case-Shiller that the home-price index fell 1% in December; its fifth straight decline. But what’s new? In this case, what goes down must come up. If forecasters are correct it might make sense to jump into real estate. The trick is avoiding getting burned again, and it doesn’t necessarily mean owning a home.

Let’s recap a few economic signs that seem to support the belief that a bottom is close.

Houses Are a Good Deal

Housing is the most affordable it has been in decades – analysts consider not only home prices but average family incomes. Nationally, the cost of a house is the equivalent of about 19 months of total pay, the lowest level in 35 years.

“Pricing is down so much in some markets that when you analyze renting versus owning it makes much more sense to own,” says Michael Larson, a real-estate analyst at Weiss Research in Jupiter, Fla.

In the end, it will be affordability that will drive people to buy homes. But what about timing?

Consider this: In some markets, home prices have fallen by half or more since 2006. Even if prices fall another 5%, it’s a small margin in the grand scheme.

Investors Stepping Up

One of the best indicators that the market is nearing a bottom is when investors are buying up houses and condos, in some instances paying entirely in cash.

Take Miami again. Last year, more than half of all transactions were made entirely in cash, according to a recent report in The Wall Street Journal. That compares with 13% of deals in the last quarter of 2006, the height of the bubble. Similarly, in Phoenix 42% of sales in 2010 went to all-cash buyers, up threefold since 2008. It seems like these investors are betting on a rebound in the near future.

Plan to Stay Put

Buy and hold. While the good news is that the worst of the housing crash might be over, the bad news is that the fast gains of the glory days of 2005 and 2006 won’t be back any time soon. To avoid heavy losses and driving down neighborhood values, plan to own for the long-term…10+ years is a good bet.

Below is a graph from AOL Real Estate showing home prices in the Kitty Hawk, NC real estate market. With Kitty Hawk home prices being sold far above state and national averages, the OBX may be more fortunate than we assume.

The OBX – a strong real estate market getting stronger in 2011?! The magic 8-ball seems to be pointing to yes.

AOL Real Estate - Kitty Hawk - 3.2.11

AOL Real Estate - Kitty Hawk - 3.2.11

Is It Time to Reduce Your Home Price?

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Top dollar is the goal. But sometimes reality doesn’t cooperate. It is a challenging real estate market with an abundance of competition; as much as it may seem counterintuitive to decrease the price of your home on the market, there are times when a reduction makes the most sense.

Home Logic recently had a great article with six reasons to reduce the price…it’s worth considering:

1. You’re drawing few lookers
2. You’re drawing lots of lookers but have no offers
3. Your home’s been on the market longer than similar homes
4. You have a deadline
5. You can’t make upgrades
6. The competition has changed

Outer Banks Real Estate Update – January 2011

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The traffic on the Outer Banks was busy compared to last January and pending sales are up. The OBX had 133 pending sales in January 2011 & 110 in January 2010.  The Outer Banks real estate market continues to improve.

Inventory is also declining slightly. Last year at this time there were 3,548 active listings and now there are 3,058 – this is a 14% decline.  Less inventory = more sense of urgency to BUY!

Distressed Sales: It’s important for sellers know where the buyers are spending their money and for buyers to understand current market values.  Pricing needs to be set competitively, even if the competition is a distressed property.

Here are the results for January:

Property Type

Total Units Sold Bank Owned Short Sales % Units Distressed
Residential 82 24 10 41%
Land 14 2 3 36%
Commercial 1 1 0 100%
Total 97 27 13 41%

Why Buy an Outer Banks Beach Vacation Rental Property NOW?

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Seaside Vacations - Big Mama's

Seaside Vacations - Big Mama's

Editors Note: This is a guest post by Coldwell Banker Seaside Realty agent Hugh “Scooter” Willey.  Thanks for the great thoughts Hugh.

If you are considering buying a beach vacation rental investment on the Outer Banks, then NOW may be the best time of year to make that purchase.

  1. Prices on real estate are dramatically discounted! With the soft real estate market nationwide, right NOW you can get a real bargain on a home! Currently, vacation destinations are experiencing the dare before the dawn and there is going to be a short window of opportunity for smart investors to jump in and make their future fortunes. For the first time in years, vacation home prices have slipped enough in some regions for the math to work, including the Outer Banks of North Carolina.
  2. While price does play an important part in the buyer’s decision. The most important thing to most buyers is the cost – that is the mortgage payment they must pay every month. That payment is determined by the price of the home AND THE INTEREST RATE ON THE MORTGAGE. Interest rates are artificially low right NOW because of government intervention. This will not last forever.
  3. By buying NOW and closing before May, 2011 you will have the best opportunity to earn 100% of this year’s rental income while only paying for approximately 75% of this year’s operating costs!! Even better, if the house you are purchasing has weeks already booked for the summer vacation season you will get a check at closing for those monies already collected by the property management company. That’s right! You can close on a house and get a check given to you for the pro-rated amount of rental income already booked for 2011.

How does that work you ask?

Since many vacation renters pre-book their vacations for the next year while they are currently on vacation, they are generally required to put down a small deposit to hold the week they have selected. Then, the property management companies mail out the rental agreements in January/February to all the renters who have pre-booked weeks for the upcoming rental season. A deposit of 50% of the rental amount is required at the time this rental contact is signed. The second half of the rent is usually due 30 days before their vacation date. You as the new property owner get a percentage of the deposit money when the renters send in the signed rental contract and the remainder comes to you after the renters satisfy their weekly stay. Thus, if a property is sold during the rental year, then you as the buyer receive the pro-rated deposits/rents which have been collected for all the weeks that vacation renters have not yet used.

Naturally, you should be cautious and do your homework before you buy any property–but don’t be so cautious that you miss this window of opportunity!

You can find additional information about Hugh and contact him at: