Quote :

"helping them understand those few things can go a long way in having a successfull closing"

Why does it matter? They'll close just fine either way.

3/30/2007 10:34:47 PM

uh, not neccessarily. especially if you're dealing with pre sales. gives people alot of time to do something stupid.

3/31/2007 12:34:39 AM

^ The man speaks truth. On a pre-sale that 3-6 months between contract and closing give people plenty of time to do dummmmb shit. Believe it or not some folks decided they need a brand new car to go with their new house or sometimes even want to buy (charge) all new furniture before it is even finished.

Then there are disasters like divorce, separation, broken engagements, losing a job, quitting a job, getting transferred, etc.

3/31/2007 1:21:20 AM

the dumbest thing i see people do when building is add all these extras on, like the best appliances and flooring and add it onto their mortgage.

so they can pay interest on it for years.

3/31/2007 10:33:54 AM

What's wrong with that? Do you think they'll be able to resell the house if everyone else in the area has hardwood floors and granite countertops?

3/31/2007 11:41:40 AM

^^the only time that helps is if the person doesn't have the money up front to get the things they need. i think it depends on the amount of the appliances added because once you get to a certain point, a $5000 increase in the mortgage amount is $20 to $30 more a month.

and what ^ said. if you want hardwood floors, some places don't allow you to have a private contractor in there post-construction for liability reasons and you're forced to choose that option initially or not at all.

[Edited on March 31, 2007 at 11:49 AM. Reason : .]

3/31/2007 11:46:18 AM

think future value of a dollar.

3/31/2007 11:49:43 AM

Think of a post that makes sense.

3/31/2007 11:53:22 AM

if i have to explain why it makes sense to purchase something outright rather than pay 6.25 percent interest for years on a depreciating asset then im not going to bother posting here anymore.

not to mention, what is in style today is not going to be in style 5+ years down the road.

3/31/2007 11:58:28 AM

granite counters and hardwood floors are such a fad

3/31/2007 11:59:31 AM

did i mention any specifics?

3/31/2007 12:01:22 PM

If i have to explain why it makes sense to pay 6.25 percent TAX DEDUCTABLE interest for years on something and investing what you would pay for it upront making 8+ percent interest then im not going to bother posting here anymore.

3/31/2007 1:17:25 PM

except that we were talking about townhomes, which in no way appreciate at 8%

3/31/2007 3:39:17 PM

^i think he is talking about investing said money in the market...not the house itself as the investment.

i'm with David0603...getting them as upgrades and adding it into the mortgage is a good idea with rates as low like they currently are. if your rate is 6%...take the tax deduction and say that makes the equivalent interest rate at about ~4.25%...you can beat that with any online savings account...and kill it with good investing

[Edited on March 31, 2007 at 4:42 PM. Reason : #]

3/31/2007 4:42:08 PM

^ Yes, and if you choose good upgrades you will get the money back when you sell it.

3/31/2007 4:44:54 PM

Yeah, the 8+% was referring to the stock market, not townhomes. I'm not sure how you made that association. As also stated, you could easily put it in a money market account for a sure 5+%.

3/31/2007 10:36:18 PM

It begins

http://news.bbc.co.uk/2/hi/business/6519051.stm

Quote :

"New Century Financial, one of the largest sub-prime lenders in the US, has filed for Chapter 11 bankruptcy."

4/2/2007 12:12:49 PM

http://www.consumerist.com/consumer/real-estate/ride-the-real-estate-rollercoaster-249597.php

4/4/2007 4:35:01 PM

that was dumb

4/4/2007 5:53:45 PM

http://tinyurl.com/2eyw3w

Someone should buy this place. Can someone with access give me a link to the MLS info?

4/5/2007 6:33:10 PM

http://msweb01.co.wake.nc.us/realestate/Account.asp?id=0074256&stype=addr&stnum=5001&stname=Kaplan&locidList=&spg=1

that house was sold for 110k in 2001...damn that's a big jump in value... combs elementary really raised the value.

4/5/2007 6:37:19 PM

Avent West has appreciated fairly well lately. It is close to downtown and Centennial campus which is bringing a lot more professionals in. I think crime rates are lower than the trendy downtown neighborhoods as well.

They updated the school zoning last year so that people on the other side of 440 (Melbourne Rd., Powell Dr., etc.) cannot send their kids to Combs anymore. It probably hurt them and helped the homes that are still in the Combs district. How old is Combs anyway?

4/5/2007 6:53:49 PM

Alright, being new to the real estate business I have to ask this question and see how all of the "professionals" respond..

I recently purchased a old house (built 1983) in off of Sierra Drive (~2000 sq ft.) for what I thought was steal of price at $85/sf. I was more than excited because this house was an older house that had been ignored for the past few years (overgrown backyard, no curb appeal at all due to the crap the previous owner planted in the yard, and the carpet upstairs is from the 80's). Overall the house is in great condition and has great bones. The previous owners replaced all the windows, water heater, hardwood floors and HVAC within the past few years. When I was looking for a house I wanted to get a "fixer" that I could work on over the next few years (2-3 to take advantage of the no capital gains tax) and move on. I believe I have found the one, but I would like some input....

Other houses in the neighborhood go for around $95/sf but most of the houses have around 1400-1500 sf. I was wondering what you thought my potential for getting the neighborhood average (lets say $100/sf) for my house in a few years. Pricing my house at $200,000 (100/sf*2000 sf) makes it close to the highest priced house in the neighborhood. In all I have read, that's one thing you want to avoid especially with "fixers." What is your take on my situation?

4/9/2007 3:08:42 PM

I'm no "professional" but I've always read that you shouldn't buy the most expensive house in the neighborhood. It sounds like the house you are looking at is already the most expensive home in the neighborhood. I think it would be hard to increase the value of your house by close to 20% and resell it, if all the other houses around you are selling for 2/3 as much.

[Edited on April 9, 2007 at 3:17 PM. Reason : stupid math]

4/9/2007 3:16:57 PM

Thanks for your opinion and here is a few notes to add on to what I said before and respond to your post:

1. The house we speak of is already mine. There's no going back now, but I am having some second thoughts on what I bought. Hence the reason for this post. I feel comfortable with my buying decision and don't doubt I will make a profit over the next 3 or so years, I was just fishing for some "real estate" input.

2. If my house were to be pushed up into the 200,000, it wouldn't necessarily be the most expensive in the neighborhood. There are some that have already sold for about what I got mine for, but with less square-footage than mine.

3. Looking at the comparables, I would say there are two different styles of houses withing a 3-4 block radius of mine. It is comprised of 15% with similar square footage as mine and the other 85% with ~1400-1500 square feet.

So my question is, how is my house going to hold up price-wise being in the minority with more square-footage? What do home-buyers think of large house in a neighborhood comprised of smaller homes? Will they pay the same amount of money per square foot for a house that is a little bigger, + 1 bedroom, and (bonus) family room (most houses in the neighborhood don't have one)?

And thanks in advance for any feedback/opinions.

4/9/2007 4:06:03 PM

I don't know. I looked at some houses in that neighborhood, but I had a hard time getting a good feel for it. It seemed like there were some areas that were much more desirable than others just a few blocks away and it was hard to draw a line between the good and the not so good.

Doing things to add value and curb appeal is going to help you whether you have the nicest home on the block or the cheapest one. Obviously having the nicest house in the neighborhood wasn't a problem to you and I can't help but to think that you'll be able to find someone else who feels the same way as long as you don't mind letting it sit on the market for a while.

You should be able to look at the previous sales history of other homes close to yours and guesstimate how much they are appreciating. You can probably expect similar appreciation over the next few years since that area hasn't had any dramatic increase in recent years. Add to that the added value of your upgrades and you can get a good feel for it.

You may want to get a broker's license if you're serious about selling in the next few years. I'd think it would be worthwhile especially if you want to do this a few times over the next decade.

[Edited on April 9, 2007 at 5:32 PM. Reason : .]

4/9/2007 5:26:43 PM

Thanks for the information, its been really helpful and reassuring. Like I said before, I don't think I will have a problem making a profit off of this house. The real question is how much will I make and will it be worth the investment?

Before I purchased the house, I researched the hell out of the neighborhood and I agree that some spots around that area are hard to get a feel for. What I did find is houses similar to mine are averaging 4.5-5% appreciation over the last 3-4 years. I don't think that figure will go anywhere. The neighborhood is stable, has nice access to the belt line, and is convenient as hell to Centennial Campus (that's where I work). So lets play the numbers game....

You're saying that I should expect around 4.5% appreciation from my house. Lets say my house was appraised at 170 to make the numbers a little nicer. At that appreciation level, that puts my house at 195,000 at the end of 3 years. Say I put another 15,000 in upgrades, now we are up to 210. Personally I think that might be a little high for that neighborhood, especially considering 85% of the neighborhood would be around the $160-170,000 price tag. If I'm correct in this, I might need to rethink some of the upgrades I want to put in the house.

Now, since I'm new to this whole process how does one go about getting their broker's license? Is this very tough? Does this just allow you to act as your own realtor? Price/classes involved? This might be a route I need to take considering I do want to do this several times over the next several years.

4/10/2007 10:39:53 AM

I didn't want to bother anyone else with another topic, but needed some places to check out.

I graduated in Dec. and my lease ends in July off of Tryon.

I work in Brier Creek, and am seriously contemplating looking at buying a place to live, I'm pretty tired of throwing away money for rent every month. Although there are several places here, I wouldn't want to live right next to where I work. I was looking for housing around Cary or North Raleigh, where my drive wouldn't be too arduous. I am also comfortable with either a townhome or house, but want a garage and back porch. Yardwork never bothered me either. Looking for a place <$140,000.

Any suggestions?

4/10/2007 4:32:35 PM

I don't think you'll find any places in that area and those specifications for the price you listed.

4/10/2007 4:41:09 PM

I can do up to 160, but 140 would be prime.

4/10/2007 4:43:13 PM

I looked in that area a few months ago, and end up getting a place in RTP. Have you shopped around any? The Cary/Morissville places were way out of my price range. I could afford a few place in North Raleigh, but they were much smaller than what I was looking for, single family detached. Maybe you'll have better luck since you included townhomes in your search but that area + garage = $$$.

4/10/2007 5:14:21 PM

There are usually places off Lynn Rd. in the $140s. That wouldn't be bad to get to Briar Creek because you can just take Lynn to Glenwood. You can also find stuff off Louisburg Rd. in that range.

Both areas are pretty isolated from the rest of Raleigh and I loathe Capital Blvd, so I wasn't too interested in living there.

[Edited on April 10, 2007 at 5:23 PM. Reason : .]

4/10/2007 5:21:48 PM

^Yeah, I really hate the area around Capital. I will look around Lynn Rd for some things. My lease doesn't end until July as I said, so this gives me time to research.

^^Where in RTP could I get something along the lines of a single fam detached? I'd love something like that. Basically, I just want something thats a 15-20 minute drive in full traffic. One of my friends that still goes to State may stay there and help pay, so I mentioned the others to keep it relatively close to home.

4/10/2007 10:20:28 PM

http://kbhome.com/Community.aspx?CommID=01350307

About 15 min to Briar Creek

4/10/2007 10:59:57 PM

Someone please explain to me the difference between an origination fee and a discount point. I understand the origination fee is a fee charged to process your loan, but I can get a loan with no origination fee, but with a higher rate.

4/16/2007 5:58:36 PM

the origination fee is the cost of making the loan happen. It can be a fixed amount, or percentage of the loan. Discount points are used to buy down the interest rate of the loan either temporarily or permanently. 1 point is equal to 1% of the loan amount.

You can have a loan with no origination fee, but still have to pay points to get to a certain rate.

4/17/2007 2:28:59 PM

I've only see the origination fee as a %.

4/17/2007 2:30:40 PM

it can be a $ amount, it can be points.

both are tax deductible on a purchase.

add up all 800 lines minus the appraisal and that's your lending cost for doing the loan. if you find a company at the same rate that has less $ amount on those lines you have found a better deal. the attorney, title, recording charges will be the same regardless of who you work with on the loan most of the time.

today I'm doing 6.000% with $785 in total 800 fees minus the appraisal.
5.875% for 0.625 points same fees.
5.750% for 1.250 points same fees.

This is for David's scenario.

4/17/2007 3:14:26 PM

South basks in real estate sunshine.

http://bankrate.com/brm/news/real-estate/reminiguide07/south-home-sales-sunny-a1.asp?caret=2c

4/18/2007 11:16:18 AM

I'm gonna be renting for one more year after I leave Pensacola and head to Whidbey Island/Oak Harbor, WA

after that, I'll be looking to buy property in Morehead City (or possibly New Bern).

once that's all settled, I'm giving serious thought to buying something in the Gulf Shores/Orange Beach, AL area. it looks to me like it's primed to absolutely explode, and I personally know a really, really good guy down here to be my property manager.

4/18/2007 11:25:48 AM

What exactly do property managers do?

4/18/2007 11:29:14 AM

you basically contract them to be the landlord for you.

if you live 10 hours away from the property, it's pretty much SOP.

4/18/2007 11:35:46 AM

Do they find renters for you?

4/18/2007 11:41:29 AM

Yes. http://rhynerentals.com/ is a property management company. There are tons of them in this area.

4/18/2007 12:43:59 PM

What do they charge, 10%?

4/18/2007 1:08:58 PM

i think that's fairly standard.

4/18/2007 1:32:55 PM

has orange beach not already exploded? my cousin has a place down there on the water he bought for $140,000 in '97. It appraised for $750,000 in 2005.

4/18/2007 3:06:53 PM

well, the beach is covered for miles with a solid row of high-dollar, high rise condos...particularly since hurricane ivan hit the reset button on that stretch of the gulf coast and washed away all the old shit.

so yeah, in that since, it's already exploded...

on the other hand, there really isn't shit else there...not a lot of restaurants, stores, or really a lot of development past the oceanfront stuff. with all of those huge, expensive condos there and under construction, i feel like the rest of it is gonna follow.

4/18/2007 9:24:33 PM

The going rate for property managers is roughly 10% and an additional lease up fee ($500 or so for landing a tenant). I have heard some managers charge 8%.

Some of them are full service even to the point of contracting out required repairs to the unit should any come up unexpectedly. 10% of the gross rent can ad up to a lot of money so if you are gonna hire one make sure you hire a good one.

A shitty PM can also cost months of vacancy on a home that should have been rented in a matter of weeks.

4/18/2007 10:11:35 PM

Anyone want to buy any small time multifamily investments?

Or a townhome that can be used as an investment property?

I have both available..and I would love to get them out the door. They have good numbers, priced right, all under 350K.

4/19/2007 11:55:25 PM