Close in Northern Durham in a week.

6/7/2007 1:02:39 PM

http://www.newsobserver.com/front/story/598617.html

Quote :

"n the Triangle, the rise in demolitions has provoked some neighbors to push for controls. They argue that tear-downs -- often done by builders and investors who target several homes at a time -- also change the scale and character of the neighborhoods. Last week, the Raleigh City Council agreed to talk during the coming budget discussions about hiring a new planner who would study tear-downs and perhaps craft new regulations for them."

Ok I will give them that. It does change the character of the neighborhood. It also causes their property values to skyrocket. I think I could deal with having one of the smaller homes in the neighborhood knowing that I have made a hundred percent, or more profit on it.

6/10/2007 11:41:37 AM

haha they're just pissed cause it drives the trash out

6/10/2007 11:56:39 AM

So who are you guys using for your home inspections. Any recommendations?

6/10/2007 3:59:30 PM

Robb Howard
http://www.howardhomeinspections.com/

6/10/2007 4:25:03 PM

questions?

What should we expect for closing costs on a 125K-130K house?

The mortage guy we've been working with told us $7000 (including the prepaids for the bank)
I think that's high

SECU told me around 2500-3000. This was over the phone though.

We're seriously thinking about buying the house I've rented for the past 3 years. Our landlord is willing to cover closing costs but I want to be able to give him a fair and accurate number. He's a fair guy and offering it to us probably ~30K less than what he could get for it. However, we're cutting out the real estate agent. It's a win-win as far as we're concerned. He'll probably replace the roof and siding before we buy it because it has to be done. We're going to help him do it so he'll save on labor.

The house does need work. New roof and siding are mandatory, the carpets and floors in bathrooms and kitchens all need to be replaced. As well as kitchen cabinets and counter tops, all kitchen appliances are old (but working), tub and shower stalls need to be replaced. Aside from the roof and siding everything can wait though.
Don't get me wrong, it's been a really nice rental for the last 3 years but as the owner I'd want to redo everything. If we do one project a year then we can do it and we'll probably make a profit when we sell down the road. Plus my fiance does landscaping so we can increase the value that way as well.

We won't have a problem getting financed. I have good credit and he has excellent credit. Our income level is low (hell i'm a teacher and bartend on the side) but we can definitely afford the mortage (less than rent) and half of what my fiance makes is well under the table so that is hurting us.

How many different lenders should we talk too? Surprisingly, SECU didn't offer the best rates and while the mortage guy we've been working with has been very helpful but I still feel like we need to check a few more places. We both bank at Wachovia - how are they?
We want a fixed rate. But we only have 5% to put down. We're both 1st time homebuyers.


[Edited on June 10, 2007 at 4:57 PM. Reason : g]

6/10/2007 4:51:49 PM

2-3k in my experience

If you really want to shop for rates go with a Mortgage Broker. If you go to a bank such as SECU or Wachovia they only have internal programs to lend their money. If you are a having a hard time fitting their criteria you are most likely going to get stuck with a subprime loan. I have a feeling thats what a person was suggesting when they tried to get you a loan with 7 thousand in closing costs. Most brokers can shop different banks and other lenders to get better rates and financing for people who cannot document all of their income.

When I bought my townhouse in '05 I had only 14k in income documentable from the previous year, and from the current year since I was self employed they would not accept any documentation from that either. With good credit and a 5% down payment I got in the house I wanted. It sounds like since a lot of your money is not documentable by the banks standards you might want to look at a no doc or partial doc loan.

6/10/2007 5:04:51 PM

hahah tell me about it


I didn't have much "income" last year, lol

6/10/2007 5:42:22 PM

6/10/2007 5:54:45 PM

^^^ It's a tradeoff. I've seen really low rates with huge closing costs and I've seen really high rates with minsecule closing costs. I've been told to just compare the 800 fees since the rest of the fees are not set by the lender. I wasn't surprised the credit union had a higher rate. They are a bank. Their primary purpose isn't to provide mortgages. They have a good first time home buyers program, but you'll pay a higher rate. Closing costs usually come with a 1% origination fee, so I can't exactly give you a good estimate of what they should be, but 7000 is certainly too high. That quote probably has 2 discount pts added on to the mortgage to get you the low rate. I would definately shop around and request a pdf with closing cost estimates from each lender.

6/10/2007 5:58:45 PM

Two Seven Six Ten,
Just Say No My Friend.

Always remember this little rhyme when looking at properties in the Raleigh area.

6/11/2007 6:32:06 PM

^ Are you referring to the 27610 area code?

6/12/2007 1:46:14 PM

yes.

6/12/2007 2:15:32 PM

What's wrong with that area? I saw some nice looking houses in that area. That new development
Old Towne Raleigh is in that area.

[Edited on June 12, 2007 at 2:18 PM. Reason : ..]

6/12/2007 2:17:23 PM

They always look nice online.

Then you go to look at them and they are suburban ghettos with piss poor construction.

For what it's worth, I don't know anything about Olde Towne Raleigh. I'm sure there are some exceptions, but I know several people (myself included) that got so tired of looking at those houses that it was easier to just exclude them from the search.

6/12/2007 2:26:58 PM

I'll agree. I have seen some chepos in that area. And I hate those 5 ft long driveways.

6/12/2007 2:31:59 PM

there was a big article in the N & O a couple of years ago about the poor construction in the 27610 area. Also how there isn't anything to do if you're a kid because there are no playgrounds or parks in the communities.

6/12/2007 2:37:44 PM

Quote :

"Two Seven Six Ten, Just Say No My Friend. Always remember this little rhyme when looking at properties in the Raleigh area"

That is horrible.

6/12/2007 2:38:11 PM

Just picked up my keys

6/14/2007 12:23:52 PM

congrats

6/14/2007 2:32:53 PM

Thanks.

6/14/2007 5:57:29 PM

My husband and I just closed on our house on Tuesday (YAY!!!). If you have an account with SECU, you should definitely get your mortgage through them. They have an unbelievable first-time-home buyer's program that got us a 5.625% fixed rate.

6/15/2007 10:46:35 AM

Wow, that is a really good rate. Congratulations.

6/15/2007 11:05:25 AM

^^how much were your closing costs with secu? i'm considering buying and will be getting a loan from secu as well.

6/15/2007 12:04:46 PM

^They were around $4k for a $145k house.

6/15/2007 1:39:46 PM

Anyone with advice on good home deals in the Charlotte area? Especially SouthEnd, NoDa, etc.

6/15/2007 1:42:28 PM

Quote :

"They have an unbelievable first-time-home buyer's program that got us a 5.625% fixed rate."

30 year fixed???

6/15/2007 2:00:49 PM

Does this home for sale seem right??

They are asking 280k for this place (also has an inground pool). 2600 sq ft., .56 acres. Near melbourne/440 exit. 1208 deboy st.

However, looking at the records, they bought it 3 years ago for 160k. Thats quite a flip, if you ask me.

http://msweb01.co.wake.nc.us/realestate/Account.asp?id=0026342&stype=addr&stnum=&stname=deboy&locidList=&spg=2

6/18/2007 3:04:54 PM

^^Yeah...it's a 30 year fixed rate.

6/18/2007 3:18:39 PM

Pool does not add value.

Not the best looking house I have ever seen.


Quite possibly overpriced.

6/18/2007 3:19:31 PM

I'm not very familiar with how much houses are supposed to cost. However, what I have found in my extensive research is that even though most of the U.S. Real Estate market favors the buyer, in Raleigh we are in a seller's market.

6/18/2007 3:21:15 PM

if you look at the record, It seems like thy measured the sq footage wrong...

says 2700 sq feet, but that looks to be including the patio, carport, porch, ect.

Maybe there something there I am not seeing, but something seems fishy.

6/18/2007 3:48:20 PM

Quote :

"Does this home for sale seem right?? They are asking 280k for this place (also has an inground pool). 2600 sq ft., .56 acres. Near melbourne/440 exit. 1208 deboy st."

All of Avent West has done well in recent years, but that is definately better appreciation than most have seen.

I don't really know much about that street, but homes on Huntingdon (a couple of blocks over) have gone up dramatically in the past few years largely as a result of the mini-mansions that people have built there. It makes for a weird mix of older homes from the 50's-70's with these newer homes that are almost as big as the lot that they are on.

Deboy may have gone up as well, but you really should drive by to see if it has the same "feel" as Huntingdon. In other words, does it look like the newer homes are a step above the older ones? That can be an indicator that perception of that neighborhood is getting better.

It is quite possible that the place was in disrepair when they bought it in 04. It's not uncommon to get a house for $40k less than average when it needs a lot of work, so that could affect their price. Does it have recent upgrades/renovations? Based on the few comps that they list within the last year, that price seems reasonable if you're looking strictly at price per square foot:

Quote :

"1 0026328 1309 PRAT CT 0.1 Single Family 1972 2,870 1 Story $300,000 05/25/07 2 0026330 1312 PRAT CT 0.1 Single Family 1985 2,244 1 Story $310,000 10/31/06 3 0026338 4108 PEPPERTON DR 0.1 Single Family 1974 2,587 2 Story $325,000 07/20/06"

Do you have kids? I believe last year they re-zoned the school system so that the kids on that side of 440 cannot go to Combs Elementary. I think Combs is supposed to be the best (or one of the best) elementary schools in Wake County; so that sucks that folks only a mile and a half from the school have to take their kids elsewhere.

Let me hit up the pool party when you buy it. I'm walking distance from there.

6/18/2007 3:53:43 PM

As for the square footage...Most older homes that I looked at have a higher number in the realtor's listing than the tax records page. My home is ~1420 usable sq. ft. if you actually measure each room/closet and add up the space. That is also what shows up on the Wake County website. The realtor's listing said it was 1610 sq. ft. It turns out that they measure the outside perimeter of the house for the listing, so interior and exterior walls are counted even though they are obviously wasted space. Maybe it is a difference in the way they measured it back in the day versus now, but I'm glad Wake County thinks I have a lower square footage because it affects my property taxes. I would trust the realtor's listing and double check if necessary.

My neighbors house (which just sold) was the same...Realtor listed it at ~2000 sq. ft, but Wake County tax website says ~1690 or something.

[Edited on June 18, 2007 at 4:05 PM. Reason : s]

6/18/2007 4:00:36 PM

Quote :

"if you look at the record, It seems like thy measured the sq footage wrong... says 2700 sq feet, but that looks to be including the patio, carport, porch, ect. Maybe there something there I am not seeing, but something seems fishy."

It also has a fully finished basement improvement that was added to the record

Quote :

"Int. Adjust. BSMT - Fully Finishe"

if you look at the main building, it is listed at about 60x30, which is about the 1780 they quote, then if you figure the finished basement is around 30x30, you get close to the 2700 figure they use. It is an old house, and entirely likely it started life as a split level with a big unfinished basement below the right half of the house. Then it was finished in later for extra space.


Pool maintenance/electricity is $texas and a pain in the ass.

6/18/2007 4:09:11 PM

So we are supposed to be closing on our house on the 16th of next month and our termite inspection came back positive for light infestation, but no substantial damage. As per our contract, the seller would have to pay for the treatment and a warranty that we would certainly keep up, I'm just wondering if I am making a huge mistake by purchasing a house that already has termites.

Thoughts? Experiences?

Thanks.

6/27/2007 8:14:24 AM

Would the warrenty cover structural damage?

6/27/2007 8:52:06 AM

depends on the company and the warranty, I would certainly try and get one that did.

6/27/2007 9:26:56 AM

most termite companies have a removal and a removal with lifetime guarantee...just tell the seller you require the one with the lifetime guarantee or you are backing away (that was one of the many things that made me walk away from the last house i had an offer on post-inspection)

6/27/2007 11:12:32 AM

I think once a house has a termite infestation the deed is somehow tagged (like a car with a salvage title) even if all the damaged wood is replaced and the termites are destroyed. That's what I've been told anyway. I don't know how that might affect your ability to sell the home in the future. You might want to talk to your realtor about it, or, hopefully someone else might be able to chime in.

6/27/2007 1:07:46 PM

Ok, looking for a little advice on selling or Rent to Own.....

I have a 2 bed/1.5 bath condo in Driftwood Manor at Blue Ridge/Western that I purchased in 2003. I have been renting to the same girl for the last three years for $575 a month (cheap because I knew her and trusted her). I just found out today that she plans to move July 31. I can now get $625-$650 from a new tenant or try to sell.

My mortgage/taxes/insurance/HOA = ~$575. If I sold the house I would probably get $64,000(and probably have to pay CC concessions on top of broker fee), but I owe $57,500. Is it even feasible to think about selling right now??? The property value has dropped about 10% in the last three years....

Also, I was thinking of doing rent to own, like $3000 down, $575 per month, final sale price around $65,000. Think this would be better?

6/28/2007 4:58:45 PM

Consult your tax adviser before you sell it.

It seems wiser to keep it since you won't really walk away with any profit from selling. Since its a condo the upkeep will be minimal and eventually the loan will be paid down to where you can unload it for a profit or do a tax free exchange and buy a better investment.

6/28/2007 10:20:18 PM

just 2 questions:

1) why is the property actually depreciating 10%

2) why would someone Rent to Own and pay more now with $3000 down and have to pay the same sales price later, when they can pay it now

6/28/2007 10:22:15 PM

^ People with bad credit do it all the time.

Almost inevitably they can never afford to close on it and end up losing that huge rent to own deposit.

Its great for the land lord but horrible for the rent-to-own tenant. They are lured in to some false sense of making an investment when really they are very far from being eligible for a mortgage. The deposit is generally forfeited to the landlord per the rent-to-own contract.

6/28/2007 10:36:08 PM

Quote :

"1) why is the property actually depreciating 10%"

I'm guessing because it is an older complex, and the HOA has voted no for several improvements. I haven't seen the property in over three years, but I know they closed the community pool because they couldn't afford the upkeep.

I'd like to do the RTO because I'd have liquid cash, a tenant, and an agreement to buy. On top of that, if they actually purchase it, I don't have to wait 3-6 months to find a buyer.

The RTO is not always bad, but I'm sure there are some bad landlords. Sometimes people don't have enough down, or a few recent credit problems bar them from receiving lower interest rates.

6/29/2007 10:37:51 AM

Top Sellers' Markets
http://promo.realestate.yahoo.com/Top_Home_Sellers_Markets.html

1. Raleigh, NC
2. San Francisco, CA
3. Austin, TX
4. San Antonio, TX
5. St. Louis, MO
6. Houston, TX
7. Portland, OR
8. Dallas, TX
9. Denver, CO
10. Baltimore, MD

6/30/2007 8:55:58 AM

Quote :

"1) why is the property actually depreciating 10%"

If I remember correctly most of the units in this community do not have washer/dryer hookups. That is probably REALLY hurting re-sales. The community has a laundry area like an apartment complex would. Owner-occupant buyers are going to demand a laundry area in their unit.

Having that said the people that are buying these are most likely all investors, they are beating prices down. Investors aren't willing to pay as much for a property than an owner occupant, they consistently try to buy property for less than the current value as part of their investment strategy. When enough people do this property values drop across the community, condos are particularly susceptible to this. They investor-owners have also most likely taken over the HOA board and are now making decisions that make the community less desirable like closing down the swimming pool.

6/30/2007 1:00:43 PM

Quote :

"If I remember correctly most of the units in this community do not have washer/dryer hookups"

yep

i almost bought a place in there a few years back. Best decision i made was to walk away.

6/30/2007 11:26:05 PM

Yeah, I'm wishing they'd expand 440 to ten lanes and buy me out per eminent domain.
Washer and dryer hookups are available in some, but not mine. I think this def. hurts the prices.

I think another reason the prices have dropped is because financing can be tough to get because the owner/occupancy rate is so low. Instead of getting 5.75 the rates are higher b/c there are so many renters there.
^^Thanks for the links, I appreciate it.

7/2/2007 11:04:16 AM

Quote :

"Instead of getting 5.75 the rates are higher b/c there are so many renters there."

What???

7/2/2007 11:11:26 AM