Michelle Heeden King’s Blog

Last March, I wrote about Google’s street view as a way to take a virtual drive through Triangle area neighborhoods. While street view was available for many areas of the Triangle then, Google has recently added coverage of other areas, including Fuquay-Varina. Here’s a view of the Community Center and new gym at South Park (it’s a lot more inviting on a sunny day, trust me).

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I find Google’s street view useful when I’m going somewhere I haven’t been before. It helps me know what to look for when I get there. And it’s a great tool if you’re looking for a new home. Love the photos of the hardwood floors and the big backyard but want to know what else is in the area? Just plug the address into Google maps and take a virtual drive around the neighborhood. Saves time…and gas!

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I previewed a couple of new homes in Fuquay-Varina yesterday and wanted to share some photos and videos I took of them. Both were just reduced in price, making them an excellent value. They are located in a popular subdivision with a junior Olympic-sized community pool, and HOA dues are $50 per month. There is also an elementary school right in the neighborhood.

Below are photos of the homes, and you can watch video of them here.

The 3-bedroom, 2.5 bath home pictured below is approximately 1600 square feet with laminate flooring in the dining room, kitchen and breakfast area. It’s reduced price is just under $187K.

The home pictured below is about 2260 square feet, has 4 bedrooms, 2.5 baths, and lots of storage. It has a 1st floor master and laminate flooring in the dining room, kitchen and breakfast areas. The three bedrooms upstairs surround a children’s retreat / loft area. It is now being offered at just over $229K.

It’s 2009. I checked. Unbelievable, I know. Even with the extra Leap Second, last year still went by too fast! So, here I sit in The Clubhouse (that’s what we call our bonus room) with a cup of coffee, making my New Year’s Resolutions. It occurred to me that if I tell the world about them, I might actually keep them. (Hey, it worked for Valerie Bertinelli!) So, here they are:

1. Get back to blogging.
2. Stick to the exercise program I started in November.

Yes, that’s it. I used to make a whole lot of resolutions, but that was before I had two businesses and two teenagers to keep track of. Since two seems to be the magic number, I stopped when I reached it.

Do you make New Year’s Resolutions? If so, what made the cut on your list this year?

One of the things that pulled me away from blogging was discovering and learning to use Twitter. It’s a great way to converse with people all over the world and in your own little corner of it. If you’re using Twitter, you can follow me at http://twitter.com/HeedenKing, and I’ll follow you back. Come and join the conversation!

Because I’ve worked with clients who have been through bankruptcy in the past, the Ask a Realtor Hot Topic for Friday, Dec. 12 caught my attention:

“I filed bankruptcy a year ago but things have turned around since then and I am making better wages and my credit has been excellent otherwise. How soon after filing can you qualify to purchase a home?”

I asked Will Langston of Integrated Mortgage Strategies to respond to this question. Will writes:

Given that you have filed bankruptcy one year ago, there is very little possibility of your being able to obtain a mortgage loan at this time.  However, you can get yourself “ready” to proceed with obtaining a mortgage when the time is right. (FHA lending programs are more lenient with respect to one’s having filed bankruptcy, so we will focus there.) After one successful year of paying into a Chapter 13 plan, the FHA will allow you to apply for a mortgage. This does not mean you will be approved, but with increased income and improved credit, you would certainly qualify. If you filed Chapter 7 (liquidation) bankruptcy, the FHA will require you to have been discharged from the bankruptcy for two full years before applying for a mortgage loan.

If you have other lending questions, feel free to contact Will by email at will@integratedmortgage.net or by phone at 919-256-6387.

Do you have a real estate question you’d like answered? Ask a Realtor! Or feel free to email me.

Whether you live in a cold climate, a warm climate, or somewhere in between, performing these fall maintenance tasks will help keep your home fit and can save you money - in the long run and the short run.

• Schedule an inspection of your heating and air systems to ensure they are in good working order and optimized for the change in seasons. Check and replace heating and air filters and clean registers.
• Test fire/smoke/carbon monoxide detectors and replace batteries with fresh ones. Verify that fire extinguishers are in good working order
• Check gutters for blockages - after the leaves have fallen.
• Inspect visible pipes for leaks.
• Repair any broken seals around windows and doors to prevent drafts and reduce heating costs. Consider replacing screens with storm windows and doors for energy efficiency.
• Inspect automatic garage doors and follow the manufacturer’s instructions for lubrication and maintenance. Check washing machines, dryers and water heaters for wear and tear, and repair as needed.
• Make sure hand rails along stairways are secure and that pathways to wood piles, gas and oil tanks, and garbage cans are clear.
• Close foundation vents, and ensure that fireplace dampers close securely when a fire is not burning to minimize heat loss.
• Inspect ductwork and seal cracks or air leaks with duct tape. Be sure your home has sufficient insulation for your climate.
• Fertilize cool season grasses. Store lawn and garden equipment and furniture to protect them from harsh winter weather.
• Drain and prepare hoses and irrigation systems before the first freeze

To ensure your home remains in good repair year-round, consider hiring a professional home inspector to give your home an annual “check-up.” Performing regular inspections can help identify developing problems before they become major repair expenses.

I came across this excellent explanation of the bailout plan being considered by Congress. The question-and-answer format addresses many common questions and clarifies some of the more confusing issues in language that’s easy to understand. Hope you find it helpful.

I was talking with a friend in the mortgage industry yesterday (through Facebook, actually), and he was sharing his thoughts on the recent government bail-out of Fannie Mae and Freddie Mac and how that has affected mortgage rates. Rates dropped substantially at first, then retreated slightly during the day yesterday. I told him that watching rates lately has been a little bit like being on an amusement park ride - but less amusing. He agreed.

So, I don’t blame anyone for being confused about what all of this means. If you’re like most people, you probably just want to know whether you should be buying a house right now…or not. Some of the questions you may have are:

• Can I qualify for a mortgage?
• Can I afford mortgage payments?
• How much cash will I need to buy a home?
• Should I wait for rates to go lower?
• Should I wait for prices to go lower?

Let me address the last two first. Nobody knows. Really, they don’t. “Experts” can give their opinions, but that’s all they are - opinions. Another lender I know recently said, “The only way you know the market has hit the bottom is by looking in the rear view mirror.”

Here’s what we do know: Interest rates are at historical lows right now. Home prices in the Triangle are extremely attractive, and with an increase in inventory in recent months, sellers are motivated. What’s more, the Triangle Area real estate market has continued to show steady appreciation (recent area averages are around 4.8% per year), even while some areas of the country have seen negative appreciation.

My husband and I bought our first home during similar market conditions. What was a bad time for much of the country’s economy turned out to be a great benefit to us. Lower mortgage rates made owning a home affordable. With a little help from the seller on closing costs, we were able to make a small down payment, and by taking advantage of a first-time buyer program, we ended up with a payment that was actually a little lower than our rent had been.

Could you get a similar result today? Possibly. The only way you’ll know is to ask. A mortgage lender will answer those first three questions and help you devise a strategy for becoming a homeowner. If you don’t already know one, email or call me (919-573-8816), and I’ll put you in touch with a reputable one who will help you weigh your options.

Stop wondering and find out. There is no downside.

The latest Triangle Area Residential Realty (TARR) report came out on September 3, and two things noted in the report offer insight into what’s happening in the Triangle real estate market.

The first deals with appreciation – the amount of gain or loss a seller realizes when a home is sold. Homes sold in Wake County during the past 18 months showed an average gain of 4.8%. At the national level, the average seller lost 4.8% during the past year. In the Triangle, the length of time the seller owned the home made a difference in the gain realized. Homes purchased in 2007 and sold in 2008 realized a 3.67% gain. For homes purchased in 2006, the average gain per year was 4.45%. And homes purchased in 2004 and 2005 gained an average of 5.25% per year.

Another revealing statistic in the report shows the relationship between list price and the number of days it takes a home to sell. Homes that sold where the original list price and final list price were the same (in other words, there were no price reductions) sold in an average of 55 days for 98% of the list price. But homes where the price was reduced during the time it was on the market sold in an average of 117 days for 97% of the final list price and 91% of the original list price. This illustrates the importance of pricing a home correctly from the start.

Home sale prices, appreciation rates and number of days on market vary by location and price range. If you’d like to know the value of your home and how quickly it might sell in today’s market, email me at michelle@heedenking.com. I’ll send you a list of questions about your home and prepare a market analysis based on your responses. Or, if you prefer, give me a call at 919-573-8816.

Condos and townhomes continue to be popular choices with buyers in the Triangle Area of NC. The following are statistics on attached home sales in the Triangle as of September 1, 2008. The data includes all 16 counties listed in the Triangle MLS.

Condo Sales

• 866 active listings
• 426 homes under contract
• 12 homes under contract with contingencies
• 291 closed sales in the past 90 days
  • Average sale price in past 90 days: $155,813 (highest price: $900,000; lowest price: $29,500)
  • Average days on market for condos sold in past 90 days: 75

Townhome Sales

• 1959 active listings
• 516 homes under contract
• 40 homes under contract with contingencies
• 1002 closed sales in the past 90 days
  • Average sale pricce in past 90 days: $176,672 (highest price: $1,245,000; lowest price: $33,500)
  • Average days on market for townhomes sold in past 90 days: 80

To search condo and townhome listings in the Triangle area and to learn more about owning an attached home, visit www.trianglenctownhomes.com. To have new listings that meet your criteria sent to you by email as soon as they come on the market (and before they are available at online search sites), email me (michelle@heedenking.com).

A recent survey of real estate agents showed that, among first-time home buyers, affordability is the number one concern. But move-in condition runs a close second. Only a small percentage of first-time buyers are interested in purchasing a home that needs work.

Some of the agents surveyed said they felt first-time buyers had unrealistic expectations for their first purchase because they’ve become accustomed to their parents’ lifestyles and are unwilling to settle for a less-than-ideal first home in order to break into home ownership. But my experience suggests another possible reason for this preference.

Many first-time home buyers struggle to manage the down payment and closing costs associated with their first home purchase and realize they won’t have much left to devote to improvements once they move in. But there are a number of strategies that can help buyers get into a first home that meets their immediate needs and helps them build the equity they need to move up to their second home.

Here are a few of the strategies I suggest to my clients who are looking to buy their first home:

1. If a home’s systems are functional and in good repair, but the decor is lacking, updating it may not be as expensive as you think. Paint is cheap, and if you can do the work yourself, you can greatly improve the look of your home for very little investment. (A word of caution: if performing work yourself, be sure you can do a professional quality job. Poor quality workmanship can hurt you on resale.) If carpet or flooring is in poor condition, sellers may be willing to replace it as a condition of the sale, particularly in a buyer’s market. Your real estate agent can assist you in negotiating these terms.
2. To spruce up the outside of your home inexpensively, visit a wholesale nursery to save money. Home improvement retail stores are convenient but aren’t usually the most cost effective way to enhance your home’s landscaping.
3. Consider a condo or townhome. While homeowner association dues are typically higher with attached homes, exterior maintenance is usually handled by the HOA, so you won’t be burdened with it. (Visit my condo and townhome web site to learn more about buying an attached home.)
4. Buy a new home. In the Triangle area, there are a number of new construction homes available in starter price ranges if you’re willing to be flexible about location. And if you’re in the market for a condo or townhome, your options greatly increase.

There are many financial and personal benefits to owning a home. Making a smart first home purchase is an important step toward buying the home you’ve dreamed about. If you’re renting and considering investing in your own home, I’m happy to help you explore your options. Just give me a call (919-573-8816) or drop me an email (michelle@heedenking.com).