^^^based on a CMA

tax records are not the way to value a house. they are so far off it's not even funny.

where i live my tax value is set to ~10% less than my house is worth, the city does this on purpose. i have another friend in Charlotte where based on CMA his house is probably worth 10% less and his tax value actually INCREASED over the last year.

[Edited on February 23, 2011 at 4:40 PM. Reason : .]

2/23/2011 4:38:28 PM

two houses on my street went up for sale recently...one about 12 houses down and my neighbors, both for the same price

the one farther down is 1100sqft smaller than my neighbor's and is on a 1/2 acre lot and went up for sale a couple of weeks ago

my neighbor's (1600sqft) is the same ranch style and almost exactly the same size as mine (1650sqft) with a similar plot size (almost an acre)...theirs went on sale less than a week ago

i picked up one of their fliers and saw how little they were asking...$20k LESS than i paid for my house almost 3 years ago and $45k less than my house was appraised at the time of purchase

it's had an "under contract" sign for almost 4 days now, which makes me feel better...someone got a great deal on that house, but for a moment i was really scared that i overpaid for this one

i had to share

2/23/2011 4:48:03 PM

A lot has changed in 3 years though. I wouldn't be surprised if their house was the same value as yours when you bought yours.

2/24/2011 5:56:16 AM

well, the neighbor had moved out of town 18 months ago when he graduated and got a new job out of state...the guys he lived with at the time was still in school and only recently graduated (hence the selling of the house)...the neighbor stopped by my house last weekend and asked me to take care of his trash for him (they were cleaning the place out, but our trash isn't picked up until thursdays)

ANYWAY, he said he had no idea what the house was worth and that he just needed to sell it ASAP...i figure that's why it was so low (hoping, anyway)...i mean, it went fast, so that's not an unreasonable thought

anyway, while i think zillow is far from perfect, it currently has the value of my house (and my neighbor's) really close to what mine was appraised for 3 years ago...given the recent development in the area, i'm betting the value is higher...i certainly don't think it DROPPED in value by $45k considering that a 7500sqft home was finished being built recently, just across the street from me

[Edited on February 24, 2011 at 8:06 AM. Reason : anyway, i'm just posting to post...i'm not moving yet, so no worries ]

2/24/2011 8:06:26 AM

7500 sq ft house across the street from a 1600 sq ft Ranch style house? That just sounds stupid

2/24/2011 8:24:26 AM

^ i agree completely...blows my mind that they bothered to build it...the husband and wife are NCSU professors (i can't remember their names, though, as i only met them once when they first moved in)

it's an eclectic neighborhood

[Edited on February 24, 2011 at 8:29 AM. Reason : .]

2/24/2011 8:29:07 AM

Quote :

"i'm not moving yet, so no worries"

that's the key.

I think 3 years ago, this house that we bought last year appraised for about $25k more than what we bought it for, so that kind of swing over the past 3-4 years isn't uncommon, but unless you are planning to sell soon I'm sure you will be fine.

2/24/2011 8:31:13 AM

That's part of the problem... our culture has changed. people move more than they've ever moved before. 50 years ago when you bought a house, one was buying with the intent to live 30+ years in the same house. People nowadays just don't do that much anymore.

People don't look at a house as a long-term investment, if you say long-term to someone their first response is like 10 years. Either that or they buy to flip. Hardly anyone saves up to buy a house anymore, with 3% down using FHA and financing still pretty easy, people are seeing homes as more of a must-have commodity in their life like a car.

Houses aren't going to go up 10% a year like they did 5-10 years ago, get used to the +/- 5% per year for a while. And even longer if you live in the 'burbs, unless you live in a highly desirable area.

Also you cannot put any weight into appraisals that were done for your financing. Just like you can't put any weight into appraisals done for tax purposes. Those types of appraisals are done just for the mere sake of making sure that what you're paying for the house "at the time" is within a certain percentage of what your offer is, it's just to get financing approved. It's not actually what your house is worth. Remember your house is ONLY WORTH as much as someone is WILLING TO PAY for it. A CMA is a much better gauge. An appraisal just helps you valuate features your house may have that others in the CMA may not have.

[Edited on February 24, 2011 at 11:37 AM. Reason : .]

2/24/2011 11:33:04 AM

^the majority of appraisers put alot of weight into recent comps when making the assessment, so it's not necessarily a bad indicator.

2/24/2011 12:40:22 PM

anyone have an educated opinion as to how much value (if any) installing a fence will add o the value of a house? obviously the type of fence, the size of the fenced-in area, and the area in which the house is located plays a large part, but i was curious as to whether or not there was a fairly standard assumption of 50% installed cost or something

we're thinking about fencing in around 9000sqft with the fencing below (which is 4.5' tall) so that the dogs can run around (one of them doesn't leave the backyard as it is, but the other is notorious for running off if she's not on an outdoor line or something)...i've got a friend who can get me the contractor's discount, so it should cost about $2500 if my brothers and i do the work ourselves



we're planning on doing it regardless of whether there's any financial value upon resale, i'm just curious

3/13/2011 12:02:34 PM

http://answers.yahoo.com/question/index?qid=20070811082216AAyBlZ3

3/13/2011 12:42:26 PM

^ yeah, i can google, too...if anything, this is more relevant

http://www.raleighrealestatetalk.com/2010/04/29/does-a-fence-add-value/

[Edited on March 13, 2011 at 5:20 PM. Reason : clif notes: you get 50% back on the value]

3/13/2011 5:19:54 PM

we were thinking about installing a fence if we move into a house without a fenced backyard. But the house at the top of our list has a nice creek just on the other side of our property line, which we wont be able to appreciate if we put a fence up. Soooo, we are thinking about putting in an invisible fence around the property for our dog.

Anyone have any experience with invisible fencing (cost, installation) and/or know of someone who does it for cheapest?

3/13/2011 6:03:54 PM

If you like West Raleigh/Kaplan area this foreclosure has actually dropped about $35,000 from when it was listed and is close to what it will probably sell for. Homes this size in the neighborhood go for around 200k in good condition. This one needs some work but it has an unfinished bsmnt and huge lot. Lots of potential here.


http://www.trulia.com/foreclosure/3036181931--Pineview-Dr-Raleigh-NC-27606

If you want to see it contact me!

4/21/2011 8:49:48 AM

^ That's a great price as long as it's not sinking into the ground. The house I used to live in on Pineview (rented) sold for $145k in a matter of hours and it needed a lot of work. The floor was getting soft in a lot of spots and the main beam that runs down the center of the house was starting to rot at one end. The roof was ancient and starting to get mushy feeling. It had been a rental for at least 20 years, so it had the usual wear and tear that you'd find from one.

[Edited on April 21, 2011 at 9:25 AM. Reason : s]

4/21/2011 9:24:39 AM

I've started looking at real estate. It's exciting and kind of scary

Big thing for me is a walkable community. I'd love something in somewhere like Oakdale or Boylan Heights but I'm not rich Anyone have suggestions of areas to look at for under 175k?

4/21/2011 9:34:38 AM

might help if you stated what kind of property you're looking for.

4/21/2011 9:43:27 AM

This house has been for sale almost a year, it is highly possible they will negotiate down further. ^3

I think the inside needs mostly cosmetic upgrades, the floor was sound last time I was in this house. The lot is a good size (.62 acres) for this area, plenty of room in the back to do something with.

4/21/2011 9:45:38 AM

Single family home.

4/21/2011 10:26:50 AM

I have interior pictures of the foreclosure a couple few posts up if anyone wants them. Just shoot me a PM (with your email address)

4/21/2011 10:55:09 AM

Question about refinance.

Currently at 5.75% APR in a 30-year fixed FHA. Looking to refinance just to lower the interest rate.

It looks like I can get it down to 4.9% APR for a 30-year FHA, which could lower my monthly payment by $150-$200, my question is this:

I am 3-years into my original loan, so knowing that most of the interest is upfront, if I refinance, will I be paying a ton more interest again? Essentially when I refinance will I be changing my 27-year loan (what I have left on my original) to a 30-year loan and essentially start over on interest when I refinance?

I know there's the whole calculation of taking into account the closing cost and how long it will take for your interest difference to "payoff" the refi costs, but does anyone ever calculate the amount lost in interest already paid into a refi as well? Because to me it seems like you could be losing even more money. I know I'd be saving money over 30-years, but what I mean is the payback could be even longer...

I guess I'll just have to do the math the hard way by comparing amortization schedules for the original loan and a new refi loan.

[Edited on April 21, 2011 at 11:10 AM. Reason : .]

4/21/2011 11:08:24 AM

Quote :

"I guess I'll just have to do the math the hard way by comparing amortization schedules for the original loan and a new refi loan."

yep...if its an issue for you you could just throw the $150 you save each month toward the principle until you get back to where you were before refi

4/21/2011 11:22:45 AM

more often then not, you restart the new 30 year but borrowing money on the remaining loan, not the original loan....interest will be lower since the new rate is lower...overall you will come out on top as long as you are at least 1% point lower than your original interest rate, it will be good in the long run

you can look for no-refi closing cost programs or if you have to pay closing, it'll prob be around 1% of your loan, and you'll normally break even after 2-3 years

4/21/2011 11:25:31 AM

Yeah, you should still save $ in the long run assuming you don't sell the place within three years.

4/21/2011 11:57:32 AM

I found this which was helpful:
http://www.bankrate.com/calculators/mortgages/refinance-calculator.aspx

Looks like I'd save $190/month and payback would be 24 months.

I guess the question is do I wait until after the bathroom & basement are done to refinance in hopes we can reach the 20% equity after appraisal to get into a conventional loan without PMI.


[Edited on April 21, 2011 at 12:25 PM. Reason : .]

4/21/2011 12:04:58 PM

http://www.homefinder.com/NC/Raleigh/72728742d_8041_Sycamore_Hill_Ln

This is a pretty decked out townhome for the price. Garage looks to be a 2 car tandem.

5/13/2011 12:10:00 AM

a TWWer's dream home:

http://www.redfin.com/CA/Riverside/2360-Boulder-Bluffs-Ct-92506/home/5022482

5/13/2011 12:11:24 AM

This condo is a steal if you are looking for something to live in for a few years (better financing) and then convert to a rental prop...or to just purchase as an investment.

It was just reduced 37k. (from 92,000 to 55,000)
http://tra.mlxtempo.com/Pub/EmailView.asp?r=849795419&s=TRA&t=TRA

The payment including tax and HOA dues would be less than $500 so it would have cash flow as a rental.

5/16/2011 11:04:32 PM

why was it reduced so much?

5/17/2011 9:55:16 AM

Who here is familiar with the area around Hunter Elementary and St.Aug? I'm thinking about checking out some houses in that area.

5/17/2011 10:06:20 AM

it's pretty much the ghetto.

5/17/2011 10:23:50 AM

That's what I was afraid of I don't mind an area currently in the process of renovating but I'm not brave enough to be one of the trail blazers in cleaning up a crappy neighborhood.

5/17/2011 11:41:33 AM

Quote :

"why was it reduced so much?"

It is a HUD owned foreclosure, they are trying to move it. The guy that lost it paid 107,000 for it.

5/17/2011 1:55:14 PM

^what kind of damage did he do to it before he left?

5/17/2011 3:18:02 PM

It has laminate floors in the living area.

It does not show any damage inside, just some ugly paint colors. The paint would definitely have to go.

If you click on the main picture there are additional pictures that show the interior.

5/17/2011 3:21:23 PM

Anyone in Bedford? We are looking for a new home now that we have a child and it appears to be very family friendly. However, I just get a weird Stepford Wives/Desperate Housewives vibe from the place. Lots are also very small but we are planning to build a house in about 7-10 years so we know its not permanent.

Most of the houses in North Raleigh are either too old (our current "starter home" was a fixer-upper and we don't want that) or relatively new houses in non-neighborhoods (6-8 houses built on a strip of newly developed land).

5/17/2011 11:12:08 PM

If you are ever considering refinance it's an absolute must that you use this calculator to determine if it's a good idea. It will take all factors into account and tell you exactly what your "break-even" period is to make up for the closing costs.

The mortgage business is relatively shady and 99% of the people involved in it are either not smart enough or honest enough to run the real math.

http://www.mtgprofessor.com/CalculatorArticles/Refinance%20Calculators.html


In fact, if you're doing anything involving real estate in anyway I highly suggest you read this guy's website thoroughly. Assuming you are an intelligent person in a matter of hours/days you'll have a lot better understanding of mortgage finance than most of the people who work in it.
http://www.mtgprofessor.com/home.aspx

Realtors, on the other hand do provide some value for local market info.

[Edited on May 17, 2011 at 11:36 PM. Reason : a]

5/17/2011 11:35:48 PM

^true -BUT - some of us out there are actually very helpful and provide long and short term cash/interest savings along with an array of calculations to help consumers make a good decision.

people call me for a "rate quote" and are annoyed when i ask them a million questions - and even more annoyed when i send them a long-ass email full of tables and figures with my recommendations based on their projected time horizon in the home.. i dont end up working with these people usually..

the more informed calculated folks actually appreciate it and refer their friends/colleagues -

i guess the moral of the story is, if a not-so-bright friend recommends a mortgage person, you may want to think twice.

5/18/2011 10:00:19 AM

Yeah, I had done all my research before I ever got my very first quote.

On the other hand the mortgage guy said the woman who came in before me didn't realize she'd have to pay interest on her loan. lolz

5/18/2011 2:11:50 PM

we need a president who will ban interest on loans.

its in the bible that you cant do it.

5/18/2011 6:38:55 PM

and every 7 years give back the land that they took.

5/18/2011 8:35:10 PM

Quote :

"the mortgage guy said the woman who came in before me didn't realize she'd have to pay interest on her loan. lolz"

How is that even possible

5/19/2011 7:10:57 AM

^you'd be surprised what people think sometimes

5/19/2011 9:13:34 AM

I guess if you had no understanding of opportunity cost it wouldn't be a crazy concept.

5/19/2011 3:01:43 PM

Man so today we went house hunting and one house looked great from the listing but then we got there and whew boy! They had what was basically a puppy mill in their front yard, and behind the house was a trailer with a TRASH MOUNTAIN. It seriously looked like an episode of Hoarders. I have a feeling that house will be on the market for awhile

7/18/2011 7:27:33 PM

Horrible Listing Photos

http://www.mainstreet.com/slideshow/real-estate/extreme-real-estate/worst-real-estate-photos?cm_ven=outbrain&psv=outbrainselectedarticle&obref=obnetwork

There was another one where the person had accidentally photographed themselved topless trying to take interior pictures but I cant find the link.

7/18/2011 10:11:08 PM

Quote :

""

7/18/2011 10:17:18 PM

^^^got a link? maybe i can snag it up for cheap AND be a star on the next season of hoarders and have it cleaned up for free

7/18/2011 11:02:14 PM

haha I'm pm it to you.

7/18/2011 11:05:14 PM

Quote :

"the mortgage guy said the woman who came in before me didn't realize she'd have to pay interest on her loan. lolz"

I had to explain to a bunch of 25-29 year olds living in a Emerald Isle rental house that their landlord was not paying $2250/month on the mortgage. They thought interest was compounded once and therefore a $750k loan at 6% interest cost $750,000 + ($750,000 * .06). Split over 360 payments (30 years), of course.

[Edited on July 18, 2011 at 11:48 PM. Reason : s]

7/18/2011 11:46:58 PM