Wilmington NC Real Estate Guide

Everyone Wants a Lower Price, But What About the Impact of Interest Rates?

When shopping for a home, the natural tendency of any buyer is to want to pay the lowest price possible. It’s important to keep in mind, however, that the sales price is not the only factor that determines what the monthly payment will be. In fact, the impact of higher interest rates can easily nullify any benefit of waiting for a lower price.

Why Should I Rush to Buy?
While you may have heard discussions in the media about the decline of property values in many markets, the rate of decline appears to be stabilizing.

That being said, it would not be unreasonable for buyers to want to hold out for an additional decline of 10%, hoping to capture the best possible price. However, as property values have declined in many areas to 2003 levels or lower, waiting longer to pull the trigger could be a mistake. Many markets are reporting that lower property values have been bringing out investors and the result has been multiple offers on many properties. Properties priced correctly are not declining and, in fact, are creating a lot of interest.

Interest Rate Complacency
The problem is that many home buyers have been lulled into a sense of complacency because of extremely low interest rates. Since the Federal Reserve initiated its program of buying mortgage-backed securities, which control the rates people pay for their home loans, rates had been range bound, bouncing between 4.50% to 5.00% for a 30-year fixed-rate loan.

But buyers shouldn’t be confused by this. These rates are artificially low! Historically, interest rates have been above 6.00%. And any rate obtained below this number is a great deal, especially on homes with price tags from 2003!

Markets are Unforgiving
The last two weeks of May showed just how unforgiving the markets can be for people who choose to procrastinate. In just five days, interest rates from many lenders increased anywhere from .50% to 1.00% as fixed-income investors demanded more for their money.

For anyone who is waiting for prices to drop even more, a 1.00% increase in interest rate would bring a higher monthly principal and interest payment on a home, even if the price of that same home had fallen an additional 10% in value.

If you  are waiting for prices to fall even lower, be aware that while holding out for a lower price may help them win the battle, you could lose the war in terms of monthly payments and overall affordability. With the Federal Reserve scheduled to end its buying of mortgage-backed securities this year, rates only stand to go higher for those that wait. In fact, interest rates are already on the rise and could go higher from here.

$8000 Tax Credit
If you are planning to purchase your  first home this year, you will need to take possession before 12/01/2009 to be eligible for a tax credit of up to $8,000. In a survey conducted in March by Move.com, nearly 50% of home buyers are currently unaware that this free money exists in the marketplace. And since over 50% of all buyers are first-timers in today’s market, this could impact a lot of potential homebuyers.

Wilmington NC Real Estate

First time home buyers in Wilmington NC have a nice choice of homes for sale that are priced to sell quickly. Affordable neighborhoods in Wilmington, NC such as Whitney Pines, Alamosa Place and Jacobs Ridge are among the most popular. These neighborhoods are conveniently located near Wrightsville Beach and Mayfaire.

If you are searching for Wilmington, NC real estate, no matter what price range, just log on to my website at www.cbbaker.com for complete details on all homes for sale in Wilmington, NC. You can search by map, price range, neighborhood, schools and more.

How do you increase your personal wealth with an investment that lets you have your cake and eat it, too?

The answer is a second home! Although only 7% of Americans own a second home, experts believe that demand for second homes is about to skyrocket, as the baby boomers reach prime buying age. And, remember as the demand for second homes rises so does the value.

Don’t wait! To avoid paying top dollar, the best advise is to buy now. Start enjoying your investment, before demand skyrockets.

You may be thinking of a classic single family home near the beach or a tropical beach home or condo on the beach. Regardless, the best part of owning a second home may be that of building wealth.

Wilmington NC real estate offers many buying opportunities now for second home investors. Whether you are looking for a small residential home, maintenance free second home, tropical beach house or condo on the ocean, we have it all right here. I can send you a list of homes priced to sell now from foreclosures to short sales or just homes priced under $100 ft.  Or if you are looking for pure luxurious living on the ocean, we have homes for sale on Figure Eight Island.

There has been a  positive development for the real estate industry that was announced earlier this week by the Business Roundtable, an association of chief executive officers of leading U.S. corporations. Specifically, the Business Roundtable’s Housing Working Group – which is chaired by Realogy CEO Richard A. Smith – issued a set of recommendations for the White House and Congress that are aimed at jump starting the housing market in order to stimulate a broader economic recovery.

This is particularly timely as it comes right on the heels of my recent visit to Capitol Hill and Coldwell Banker Legislative Week. The Business Roundtable’s recommendations are as follows, similar to what I was proposing during my recent meetings:

Keep mortgage interest rates at historically low levels (below 5 percent) for at least one year;
Expand the current First-Time Homebuyer Tax Credit incentive from the lesser of 10 percent of the purchase price of the home or $8,000 to a higher limit of either 10 percent or $15,000 for all homebuyers, remove the income restrictions and include all primary residence purchases for one full year;
Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates;
Make permanent the current temporary conforming loan limits; and
Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices.
“We believe targeted, demand-side solutions – such as the ones Business Roundtable is recommending today – will provide a critical next step for a housing recovery that will help create jobs and boost the economy as a whole,” said Smith in the Business Roundtable’s press release.

Coldwell Banker applauds the Business Roundtable for its proactive efforts to reinvigorate the U.S. housing market, and we are proud of the leadership role our parent company, Realogy, has taken in this regard.
As  we all know, this would be great news for our Wilmington, NC real estate market. We are experiencing an increase in contracts, but sales activity on homes for sale in Wilmington, NC  above $300,000 still remain very slow.

For more detailed information about the housing market in Wilmington, NC, please contact me directly kay@cbbaker.com or 910-232-0363.

If you are truly serious about selling your home in Wilmington, NC, then you need to beat your competition. To accomplish this, you must avoid mistakes that sellers typically make. That way you will seller your home quicker and for more money!

1. Right price - It is crucial to price your home right from the beginning. Don’t overprice it initially, hoping for an offer. Overpriced homes get overlooked by buyers who cannot afford it or they get a better deal elsewhere.

2. Condition - Your home needs to be in pristine condition for a quick sale at top dollar. Buyers are discouraged by homes that need to be fixed up. Instead, they are looking for the model home in move-in condition. If a buyer does consider a fixer upper, they typically deduct more off the sales price than it would cost you to do it up front.

3. Curb appeal - First impression says it all when it comes to selling your home. That is why ” curb appeal”  is critically important for a quick sale. Be sure to spend some time on the landscaping, exterior of the home including the front entrance, windows, porches and decks. Even a new light fixture or hardware for the front door make a tremendous improvement. And, don’t forget some potted flowers.

4. Bright and fresh - Buyers are looking for the fresh paint and bright decor. Always use neutral colors. In addition, freshly cleaned carpet or new carpet can make a huge improvement. Make your home sparkle. Clean and de-clutter every room thoroughly. Get rid of all junk and debris inside and out.

5. Over improvement - Do not spend so much on improvements that you will not recover your investment.

6. Financing - Be sure to accept all types of financing including VA and FHA. You also may want to offer closing costs or other buyer incentives.

7. Don’t go it alone - Always choose a knowledgeable and experienced listing agent to assist you. Sellers who try to sell their own home, often net less from the sale.

8. Showings - Always plan to be away from the home when it is being shown or if an open house is scheduled. Buyers feel more comfortable viewing the home if the seller is not underfoot.

9. Be positive - Approach negotations in a postive manner. Remember, you both want to accomplish a common goal. Let your agent do the job of negotiating your best terms.

10. Offers - Always reply immediately. When buyers make an offer, they are in the mood to buy right then. Do not give them time to cool off.

Kay Baker can provide the most up to date sales data for your Wilmington NC home. To sell your home quickly, please contact her at kay@cbbaker.com.

Fantastic positive news was released from the National Association of Realtors today.  The news release stated that the historically low interest rates combined with the $8,000 credit for first-time ( or homeowners who have not purchased a home in 3 years) helped raise the pending home sales contracts, for the third consective month.

The Pending Home Sales Index a “pending prediction” indicator based on contracts signed in April, rose 6.7 percent to 90.3 from 84.6 in March,
which is even above the April 2008 index of 87.5.

To get the first time home buyer credit of $8,000, contracts must be firmed up by November 30, 2009 to receive the credit, so we look forward to an increase in home sales.

The Wilmington NC real estate market has also enjoyed an increase in pending sales contract and still is in a a strong postion to continue this trend.

To search all Wilmington NC real estate and find out about the $8,000 tax credit please read more about the Wilmington NC real estate market here.

With the housing market beginning to rebound, many sellers are starting to ask “where is my offer”? Well, please understand that it is still a buyer’s market. Even though the numbers are starting to point to a rebound, sellers will still need to be diligent in the house selling process.

1. Be careful not to overprice your home. If you are truly motivated to sell in a short length of time, you will need to price it under the market. There are still sellers who think their home is exceptional and should be higher priced. Do not make this mistake. Price your home aggressively.

2.Do not ignore or reject an offer. Any offer is worth negotiating these days, no matter how low. You never know what the buyer is thinking. He may be willing to pay your price.

3.Do not miss the window of opportunity to prepare your home for showing and stage your home. Home sellers need to make your home shine and stand out from the competition. Home buyers have their choice and can be very selective.

4. Sellers need to be knowledgeable of all the competition. Take the time to go look at some of the homes on the market.

5. Sellers should vacate the home during open houses and showings. Buyers are much more willing to take their time and look at everything if the seller is not at home.

6. Be sure to choose an experienced agent with local knowledge and internet presence to market your home.

Kay Baker, a life long Top Realtor in Wilmington, NC brings local knowledge and experience to her valued clients. With her decades of experience in the Wilmington, NC real estate market, her clients reap the rewards of a successful and aggressive Realtor that is always eager to sell their home at a record pace and for the most money possible. Kay has a long track record of selling homes quickly and exposes her listings on over 100 websites.

Kay has earned numerous awards for her outstanding production over the years including the prestigious Coldwell Banker President’s Elite Club.

Kay Baker may be contacted at kay@cbbaker.com or log on to www.cbbaker.com.

First Quarter 2009

Rebound here we come! The Wilmington, NC real estate market  first quarter 2009 pending home sales is up 44.2% over December 31, 2008. The average sales price is showing a decrease of 8.4% from 2008, but only .3% decrease from 2005.

The list to sale ratio for 2009 first quarter is 93.7%, compared to 2008 at 95.5%. The number of homes sold in 2009 was down 22.7% from 4th quarter 2008.

28403 Zip Code First Quarter 2009

Average Sales price  $207,689 decrease 15.3%

Average List Price $220,562 decrease of 16.5%

Average days on market was 164 days

List to selling price ratio 94.2% versus 92.7% year end 2008

28405 Zip Code First Quarter 2009

Average Sales Price $314,492 Increase of 6.1%

Average List Price $337,025 Increase 8.6% from 2008

Average Days on Market was 179

List to selling ratio 93.3% versus 95.5 year end 2008

28409 Zip Code First Quarter 2009

Average Sales Price $275,381 Decrease of 13.8%

Average List Price $298,046 Decrease of 11.5%

Average Days on Market was 136

List to selling ratio 92.4% versus 94.9% year end

28411 Zip Code First Quarter 2009

Average Sales Price $267,408 Decrease 15.8%

Average List Price $285,033 Decrease 13.8%

Average Days on Market 115

List to Selling ratio 93.8% versus 96%

28412 Zip Code First Quarter 2009

Average Sales Price $194,261 Decrease 8.4%

Average Listing Price $204,056 Decrease 7.1%

Average Days on Market 150

List to selling ratio 95.2% versus 96.5% year end

The 28405 had a nice increase for 2009 in first quarter. We should be in store for a good market in 2009 as inventories are still plentiful and interest rates are at historic lows.

Contact us now to begin your home search or go to www.cbbaker.com.

1. Don’t apply for new credit card of any kind. Including those “you have been pre-approved” credit card invitations that you receive in the mail. Every time that you have your credit checked by a potential creditor or lender, you lose points from your credit score immediately.
2. Don’t pay off collections or charge-offs during your loan process. Paying collections will decrease the credit score immediately due to the date of last activity becoming recent.
3. Don’t close credit card accounts. If you close a credit card account it will appear to FICO that your debt ratio has gone up and it will affect length of credit history.
4. Don’t max out or over-charge your credit card accounts. This is the fastest way to bring your score down 50-100 points immediately. Try to keep your credit card balances below 30% of their available limit.
5. Don’t consolidate your debt into 1 or 2 credit cards. It seems like it would be the smart thing to do, however, when you consolidate all of your debit into one card, it appears that you are maxed out on that card and the system will penalize you.
6. Don’t do anything to cause a red flag to be raised by the scoring system. This would be adding additional accounts, co-signing a loan, changing your name or address.
7. Do join a credit watch program. You can then check your reports weekly, or even daily.
8. Do stay current on existing accounts. One 30 day late can cost you!
9. Do continue to use your credit as normal. If you change your pattern, red flags are raised immediately.
10. Do call your loan originator if you receive something in the mail from creditors or collection agency that you believe may affect  your score. Your broker may be able to supply you with the resources you need to stop any derogatory reporting to the bureaus.

Please email kay@cbbaker.com for more details on home mortgages. We can also put you in contact with a reputable lender to prequalify you for a home purchase or refinancing. To search for Wilmington NC real estate, please go to www. cbbaker.com.

So you have started your home search, but you really are not sure as to what price range homes you should be looking at. The first place to begin is with a knowledgeable local Realtor and a reputable lender. The combination will put you in the driver’s seat. The lender will pre-qualify you and tell you exactly what price range homes to be looking at. Therefore, you will not waste your time or your Realtor’s looking at homes that may not fit your budget. Also, with a pre-qualification letter in hand, you are in a much better negotiating position with the seller.

Now that you have found your dream home with the assistance of a professional Realtor, you will need to decide exactly what type loan best fits your needs.

Would you be best suited for a fixed rate 30 year mortgage?

A fixed rate mortgage simply offers the same payments for principal and interest throughout the term of the loan.

Adjustable Rate Mortgage

An adjustable mortgage may adjust at different intervals based on the exact terms of the loan. You typically get a teaser rate for the first year or so and then it increases based on the market rate.

Interest Only Mortgage

If you do not plan to live in your home long term, an interest only mortgage may suit your needs just fine. You only need to pay the interest monthly and the principal is due upon payoff.

FHA

First time home buyers reap the benefits of an FHA loan which offers lower down payments and easier credit and qualification guidelines.

$8000 Stimulus

Let’s don’t forget to take advantage of the $8000 tax credit for first time home buyers and some that have owned a home before.

Right now is the perfect time to be looking for your first home, or maybe a larger one and in some cases you might just want to scale down to a smaller one. You can start your search for Wilmington NC real estate at www.cbbaker.com. There you can search by price range, neighborhood, zip code, map and more. And, please give me a call or email kay@cbbaker.com for complete details on the home buying process. I can also put you in contact with a reputable mortgage broker to get you prequalified today.

The Regency at Landfall

The Regency at Landfall is truly a place like no other. With its legendary beauty, old world charm and unmatched amenities, you can truly enjoy luxurious living on the coast of North Carolina.  

Landfall offers golf and more golf… The unsurpassed Jack Nicklaus 27 hole and the 18 hole Pete Dye course are stunningly designed and border glassy lakes, wetlands and dramatic views of the Intracoastal Waterway. And both of these are just steps from your front door at The Regency at Landfall.

In addition, Landfall offers an Olympic sized pool, walking paths, tennis complex, fitness center, two clubhouses and two pro shops.

The Regency at Landfall offers the best of all worlds, being located convenient to the port city of Wilmington, NC and less than 5 minutes to Wrightsville Beach, NC and Mayfaire Town Center. 

The Regency at Landfall offers wooded homesites available now for building and prices range from $250,000. Lenders are offering very aggressive mortgage terms for the remaining homesites at The Regency with up to 95% financing. And there are special incentives for builders, for a limited time only. 

The Regency’s lovely wooded neighborhood is an array of elegant homestyles to Mediterranean. Come enjoy this relaxing coastal lifestyle at The Regency at Landfall.

For more details on The Regency, to search for all homes for sale in Landfall , or Wilmington, NC real estate,  please contact kay@cbbaker.com or 910-497-7325 or www.cbbaker.com .