Throughout the 3rd quarter in the Triangle area we saw a wave of foreclosure homes being purchased.120+ foreclosures were closed in Raleigh,Cary,Apex, and Morrisville from July 1st – September 30th . Buying foreclosures can be a great opportunity for buyers to buy into a home at a price well below market value but there are some red flags and cautionary points with buying foreclosures. Novice foreclosure should follow these steps when entertaining the idea of buying these types of homes. 

As we are approaching the midway point of the 4th quarter I wanted to provide the most recent foreclosures in Raleigh,Cary,Apex, and Morrisville. These foreclosures have each come onto the market since October 1st. The prices of these 35 new foreclosures range from $57,000-$475,000.

If foreclosures are something that you have an interest in contact us. We would love to opportunity to speak to you more about the process of purchasing a foreclosure home.

Hardwoods have become once again become widely popular amongst current home owners and buyers. Whether it is updating your current home or a criteria that you would like in the next home you purchase. These are some excerpts from an article by the editor of Reliable Remodeler speaking to the finer details of selecting hardwood flooring.

• Red Oak is not the only choice                                                                                                               

If you want your home to look like everyone else’s, this is a great choice. If you want your home to be unique try hickory, cherry, walnut, white oak, maple or many others. Go to flooring retailers or search the Internet and see what is available. If you really want red oak try using wider widths or character grade for variety and uniqueness.                                                                                                                                                           

• Prefinish warranties are a gimmick                

 50 year warranty – WOW! Lifetime warranty – fantastic! Oh really? These are wear-through warranties only. Your floor will lose its “sheen” or luster and require refinishing long before you ever wear through the finish. The best way to make a floor last is to vacuum it often to keep away abrasive material that might scratch your floor. Remember a lower sheen floor shows less wear.
 

• 2 1/4 inch is not the only size available           

If all you ask your builder for is a hardwood floor – you are going to get a 2 1/4 inch red oak floor. Why? It is the most common, most produced, most stocked, cheapest option available. You can buy sizes in 3” through 12”. You can put down a single width for a uniform look or multiple widths for a more random look. Typical random flooring patterns are 3”-4”-5”, 3”-5”, 4”-5”-6”. Have fun! Make your home unique! The wider the floor the more seasonal separations between the flooring planks can occur.

• All flooring is not select (clear) grade 

The most common floors are select grade. These floors contain none of woods naturally occurring character marks. Look around your flooring showroom, almost every display is showing clear flooring. There are warm and inviting options. Look at a character grade or other grades. Make sure to see a photo of what the floor looks like, not just one piece.

• Prefinished flooring is convenient 

 Today’s factory finished flooring can be installed today and entertained on tonight with very little mess. With prefinished flooring each plank is allowed to move independently with humidity changes in your home. This makes those seasonal separations (cracks) in your floor less noticeable.

• Colors can be cool – but mother nature is hard to beat   

 Some species of flooring are so beautiful in their natural color, they do not require any added color. Look up hickory, cherry or walnut flooring on the Internet and you will see what I mean.

• Not all flooring is smooth – texture is popular                 

   Hardwood flooring does not have to be smooth. Many companies are offering hand scraped, distressed and reclaimed flooring. These floors have a classic look and add great value to upscale homes. They do not show much wear or scratches since they have a great deal of character interest to draw attention to different parts of the floor. 

•  In a basement use engineered flooring    

Most people use engineered flooring to glue down to concrete or in higher moisture areas. This flooring has a thin layer of hardwood with a cross banded plywood base. This makes the flooring more stable and does not require nailing like a solid hardwood floor.

Installing hardwoods in a home will help your home’s value. Current appraisers are giving roughly $1000 per room for every room with hardwoods. Hardwoods are visually appealing an are becoming a must have for many buyers. If you have questions about recommended flooring professionals contact us. We will be happy to give you the contact information of some of the highest recommended companies that our clients have used in their own home.

Looking to buy or sell a home in the Raleigh, Durham, Chapel Hill, Carrboro, Pittsboro, Cary, Apex, Garner, Hillsborough, Wake Forest, Knightdale, Clayton or any of the Triangle communities, we are here to help. Please consider us your Triangle Experts in all things Real Estate. Looking for great tips about Raleigh area real estate check out BenjaminPasswaters.com

“The No. 1 reason to buy a foreclosure is the potential for a good bargain,” says Daren Blomquist of RealtyTrac.com, which follows the U.S. foreclosure market. “Distressed properties have always come with a built-in discount — even before today’s foreclosure crisis. Foreclosures might not be for every buyer, but we believe they represent a great opportunity for many buyers,” Blomquist says.

Still, he recommends would-be foreclosure buyers tread carefully.

After all, foreclosed homes are typically sold “as is” (suggests the buyer is accepting the property in it present state and relinquishes and responsibility from the buyer.) Some ex-homeowners also damage homes on their way out the door, while other properties sit vacant for months or years — attracting vandals or falling further into decay.

How can you tell the good from the bad and the ugly? Here are five things smart foreclosure buyers should always do:

Tip No. 1: Focus on REOs if you’re a novice

Blomquist says inexperienced buyers should probably steer clear of foreclosure auctions and possibly even short sales, focusing instead on REOs.

After all, short sales can involve lengthy negotiations with lenders for approval, while foreclosure auctions require all-cash payments (you can’t take weeks to secure a mortgage). You also can’t inspect a home that’s facing foreclosure auction, as its current residents technically still own the property and don’t have to let you in.

By contrast, REO deals are very similar to traditional home sales.

Lenders typically hire real estate agents to show REO properties to would-be buyers, and also allow home inspections and the use of mortgages to finance purchases.At the same time, REOs generally offer the lowest prices of any distressed properties.

Blomquist says that because they’re often in the poorest condition, while banks frequently heavily discount REOs to promote quick sales.

“A bank isn’t emotionally attached to a REO — it’s just looking to recoup as much of its losses as possible,” he says. “So the lender is often more willing to capitulate on price.”

Tip No. 2: Inspect properties carefully

Assuming you follow Tip No. 1, you’ll have a chance to have a home you’re looking at professionally inspected.

That’s key, because most short sales and REOs are sold “as is,” even though their financially strapped former homeowners rarely kept up with the maintenance.

Blomquist recommends having a good home inspector go carefully over any foreclosure you’re thinking about buying. Then have your agent present the seller with a list of all problems and estimates about how much they’ll cost to fix, using this rundown as a tool to negotiate a lower price.

Tip No. 3: Set up financing in advance

Blomquist says many short sales and REOs are actually attracting multiple offers these days, so you should set up mortgage financing in advance.  “Having your financing in order in advance is crucial,” he says.

He recommends getting pre-approved for a loan before looking at properties. You should also  check your credit score, fix any credit problems and set aside enough cash for a down payment. RTP Living suggests speaking to a lender early on in the process. This will allow the lender to lay out a plan for you to follow so that you will have the best credit score possible and most cash available when it comes times to purchase a home.

Tip No. 4: Hire a good buyer’s agent

“An experienced buyer’s agent — particularly one who’s familiar with foreclosures — can really help you navigate the process,” Blomquist says. In this market we have have made foreclosures a large percentage of our business. We are constantly working with investors to find investments properties, first time home buyers to buy promising homes, and helping families upgrade their home while still remaining within their budget. It is this experience that allows us to work diligently to find the best foreclosure home for you as possible.

Tip No. 5: Research your market

Have your agent study your local foreclosure scene carefully and inform you on how much properties are selling for, how quickly they’re moving and how much a distressed home’s value will likely rise in the future. This will allow you to decide whether or not the purchase makes financial sense for you and your family.

“It’s important to not make the mistake of counting on any major price appreciation in the near term,” Blomquist notes.

We personally feel that there are a lot of great opportunities in the Triangle area for buyers to purchase a home below market value and gain value in their home in the near future. It just takes time to locate the right deal and trusting the right agent to navigate the process for you. If you have questions please contact us. We have experience with foreclosures and short sales in Raleigh, Cary, Wake Forest, Morrisville, and Garner and would love to help you purchase your next home, investment property, or your 1st home!

Looking to buy or sell a home in the Raleigh, Durham, Chapel Hill, Carrboro, Pittsboro, Cary, Apex, Garner, Hillsborough, Wake Forest, Knightdale, Clayton or any of the Triangle communities, we are here to help. Please consider us your Triangle Experts in all things Real Estate. Looking for great tips about Raleigh area real estate check out BenjaminPasswaters.com

I wrote this article for CaryCitizen.com highlighting some of the Open Houses this Sunday in Cary and wanted to share it on here as well.

Sunday’s Open Houses

Looking for other events and local news in Cary? Check out the rest of their website. They have their finger on the pulse and provide a lot of good information for both locals and those who are interested in moving to Cary.

Enjoy your weekend.

 You should, it offers everything from small boutique shopping, small deli’s, an amazing pizza shop, a pub, to upscale dining. Come discover more about what Apex has to offer!

Downtown Apex

As of today Cary has welcomed 100 new homeowners

• Average sales price of the 100 homes was $333,278.
• Only 6 of the 100 closings were Short Sale or Banked Owned homes.
• Upstart community Copperleaf and the Amberly subdivision were the high selling communties in July with 4 closings each.

Cary will soon welcome many more homeowners

• There are 178 home currently under contract.
• Contingent homes have an average list price of $336,478
• Pending homes have an average list price of $346,290
• Lochmere- a wonderful subdivison with its amentities and variety of houses tops the cake with 11 homes under contract with month.
• The Cary Park , Carolina Preserve and Preston subdivisions each have 9 homes that have gone under contract so far in the month of July.

Check out the many other homes currently for Sale in Cary,NC.

Looking to buy or sell a home in the Raleigh, Durham, Chapel Hill, Carrboro, Pittsboro, Cary, Apex, Garner, Hillsborough, Wake Forest, Knightdale, Clayton or any of the Triangle communities, we are here to help. Please consider us your Triangle Experts in all things Real Estate. Looking for great tips about Raleigh area real estate check out CaryRealEstateSearch.com

The following are some good questions to discuss with your lender when applying for a home loan:

• Are both fixed-rate and adjustable mortgage loans available? (see adjustable rate mortgages below)
• How long can I “lock-in” the financing at the current interest rate and what is the “lock-in” policy?
• Is a float down lock available in case rates drop after I have locked in?
• What are the other fees a lender may charge me in conjunction with my loan?
• Are funds for a second mortgage available?
•  Is there a pre-payment penalty clause? This involves extra charges for paying off the loan before maturity. About 80% of all loans in the United States are paid off early.
•  What is the “grace” period?
•  How late can a monthly payment be made before a late charge is assessed?
•  What will happen if a payment is missed?
•  If you sell your house, will the new buyer (if he/she qualifies) be able to assume your mortgage at the same interest rate?
•  Do you have to pay “points” to get your new mortgage?  A “point” is 1% of the loan.
•  Will the lender require mortgage insurance?
•  Is the loan serviced locally or is the servicing sold? Ask for a written “good faith deposit”.
• What are closing costs and what will the total closing costs be?

On Adjustable Rate Mortgages

• How often will the interest rate be adjusted?
• Is there a maximum limit on each rate change?
• How often will the monthly payment be adjusted?
• Is there a ceiling on payment adjustments?
• Can the term of the loan be extended?
• What is the maximum rate that can be charged over the life of the loan?
• Is there any potential for negative amortization?
• What is the annual percentage rate?

The more knowledgable that you can be about the process the smoother the loan process can be. Visit our earlier post Tips to Smooth Loan Approval for some more great advice from Beth Prochaska- Lending Manager Towne Carolinas. 

Looking to buy or sell a home in the Raleigh, Durham, Chapel Hill, Carrboro, Pittsboro, Cary, Apex, Garner, Hillsborough, Wake Forest, Knightdale, Clayton or any of the Triangle communities, we are here to help. Please consider us your Triangle Experts in all things Real Estate. Looking for great tips about Raleigh area real estate check out BenjaminPasswaters.com

There are three-course prix-fixe meals at $15 for lunch and $20 or $30 for dinner. For more details and participating restaurants go here.

If you get the opportunity to try any of these great meals send us your feedback so that we can share some of the suggestions with other. I am perosnally going to try Fai Thai near Moore Square in downtown Raleigh.

Does the neighborhood that you have been scoping out have any homes open this weekend? Check out www.hpwopenhouse.com for all homes that plan on being open. The Preserve at Jordan Lake will be holding their first neighborhood Open House on Sunday from 2-5. Stop by and visit this amazing golf course community with a community pool, clubhouse, tennis courts, and workout facility. I will personally be at my listing at 374 The Preserve Trail   showing off the home’s scenic golf course views and raffling away a free round of golf for one lucky winner!

If for some reason the home that you wish to see if not being held open this weekend contact me and I’d be happy to set up a private viewing for you. Have a great weekend and enjoy the amazing weather!

ACC Baseball Tournament
May 25 – 29, 2011 ACC Baseball Championship
The ACC’s top eight teams will compete in a round-robin format for the Championship. See website for ticket pricing. Th-Sa 11am, 3pm, & 7pm; Su 1pm Championship game. Durham Bulls Athletic Park. Durham.

A Downtown Raleigh Walking Food Tour
Location: Downtown Raleigh
Date: Saturday May 28th, 2011
Time: 2:30 pm-5:30 pm
Walk, Talk, Taste, Sip…Experience a guided culinary journey of sight and taste that spans all 5 downtown districts to sample a cross-section of some of Raleigh’s unique local restaurant venues, blended together with some forgotten historical tidbits that leaves you full of new insights on the downtown culinary landscape. It’s fun, informative and delicious.
For more information on Triangle Food Tours click here

The weather should be great, so enjoy the long weekend and honor those who have died while serving our country.