IDLE EQUITY:

Put Your Home’s Equity To Work

With Six Savvy Strategies

Do you have idle equity sitting in your home that could be building wealth instead? One of the great aspects of homeownership is that you increase your wealth every month by building equity in your home and reducing your tax bill at the same time.

After you’ve been in your home a few years, you may have some equity that you could put to work for you. Even if the property has appreciated by just a few percentage points per year, significant equity can build up fairly quickly. Just be sure you retain enough equity that you’ll be able to pay a real estate agent’s commission when you sell the home.

Home equity loans are the most common means of tapping a home’s value. In states where home equity loans are not allowed, however, you can still put your home’s value to work by refinancing it for more than you currently owe–a “cash out” refinancing.

The first way most homeowners think of using their equity is to pay off high-interest debt. That’s one popular option, but you could also invest that equity in other ways. Here are six more ways to put your equity to work for you.

1. Trade Up

Using your equity as a down payment for a larger home could make financial sense. If you’re in a $200,000 home now and it appreciates by 5% each year, your gain is $10,000 for the first year. In five years, that home would be worth $255,256. But in a $275,000 home, that same 5% growth would be $13,750 for the first year. After five years, the more-expensive home would be worth $350,977 — nearly $100,000 more than the less-expensive home.

Of course, you may not be able to count on 5% appreciation every year. It could be higher or lower, depending on the state of the economy and market conditions. Not to worry, though. Even 2% appreciation will still add up over time.

Using additional equity to trade up will allow you to put a significant amount of money down on your next home. That could allow you to own a home you never could afford before.

2. Downsize

Another way to use your equity is to scale down. With the recent changes in tax laws, homeowners may sell a home every two years and walk away with tax-free profits up to $250,000 (for singles) and $500,000 (for married couples). By scaling down, you can purchase a smaller, less-expensive primary dwelling, and use the extra cash for investments, debt reduction or even purchasing an investment property.

3. Second Home

The real estate market has been fueled during the past few years by retiring baby boomers purchasing second homes. Maybe now is the time to purchase that home on the beach, at the lake or in the mountains. We can refer you to a knowledgeable agent in a resort area to help you with this move.

If you know you’re retiring to a particular area in the next few years, study that market now. You may want to buy the home now while prices are still affordable. If you do, you could rent the home during the peak vacation season. Many second homeowners discover they can just about cover their annual property expenses by renting out during peak season.

4. Investment Property

While the stock market often bounces up and down, many investors feel comfortable with the security of real estate. Not everyone has extra money to play the stock market profitably, but landlords can enjoy income every month. The secret is selecting the right property and finding expert property management if you don’t want to manage the property yourself. We can help with both these issues.

Some buyers have found it beneficial to purchase a property in the area where their college-age children are going to school. Their child can help manage the units and share the housing with other students to defray costs. The young adults learn responsibility and property management skills, and you have a live-in manager to watch over your investment.

5. Shared Equity

Another way to put your idle equity to work is to lend it to an adult child as a down payment for his or her first home. Some parents maintain a co-ownership interest while the young adult makes the mortgage payments. At the time of the sale, the equity is then split between the two. This is called a shared-equity arrangement.

6. Remodel

If you really like where you’re living, but desire a few more amenities, consider taking cash out for remodeling or adding to your current home. The interest paid on some home equity loans is tax deductible, just as it is with your first trust. Give us a call to find out what financing options suit your situation best.

Call us, we are the experts with expert partners in mortgage and everything real estate related. 800-497-7325-3607 or kaybaker@ec.rr.com . Sign up for our newsletters and our weekly TGIF Scoop on everything Wilmington NC!

Coldwell Banker Sea Coast Realty has come out strong for the start of 2011 in real estate sales.  We have sold 243 homes since January 1, 2011, with the closet competitor having sold 108 homes at 9.38% of the market.  Sea Coast holds 21.09 % of the market out of 57 of the top firms in the area.  Currently we have 168 properties under contract at  23.66% of the market.  The next competitor has 83 properties under contract with 11.69% of the market.  Pretty impressive numbers. Extensive training and courses are offered at Coldwell Banker Sea Coast, thus giving us an edge to sell your home, or purchase a new one.  Knowledge and experience makes the difference.  Call us today. Kay Baker & Associates

There is talk of a minor league baseball stadium being built on the riverfront in downtown Wilmington NC.  There has not been a baseball team in Wilmington NC since the Port City Roosters, a Southern League minor team which was a Double A affiliate of the Seattle Mariners Major Club in 1995.  Some of the players that wore the Roosters Uniform you might recognize : Red Sox captain Jason Varitek, pitchers Derek Lowe and Ryan Franklin, infielder Desi Relaford and outfielders José Cruz, Jr. and Raul Ibanez.

Chuck Schoninger, the CEO of USA InvestCo owns property on the riverfront, 35 acres which he hopes to develop into a marina, a hotel,  condos, restaurants and to top it  off a Minor League Baseball Stadium.  Schoninger will travel to China to present his plan to Chinese investors with a Federal Program called Employment Based Program Number 5, or EB5, that was started by George Bush in 1990 to entice foreign investment.  With the opening of the Wilmington NC Convention Center, this will make an addition to the growing and thriving downtown area. For a complete story from the Greater Wilmington Business Journal, read more here….

To search all Wilmington NC downtown properties, please visit www.cbbaker.com

Enough already of all the negative publicity in the marketplace. If you are a potential home buyer looking at Wilmington NC real estate, you need to be looking at the affordability index. It is at an all time high (meaning home prices have been lowered)  and interest rates are at historic lows! 4.25%     If you wait for prices to drop further and interest rates go up, the value of the lower purchase price will be wiped out by higher payment. Get out there and look for the perfect house at the perfect price today!

And, if you are looking to sell your home  in Wilmington, NC,  your home must be aggressively priced, it must be in the best possible condition, you are in a beauty pageant and price war at the same time, and it must have the assistance of a reputable Realtor who knows the market and offers an aggressive marketing campaign and will use every tool in the arsenal.

For more details about the Wilmington NC real estate market, please contact kaybaker@ec.rr.com or 910-232-0363 or go to www.cbbaker.com.

Kay Baker & Associates is excited to announce our Greater Wilmington NC School Guide.  Your one stop shop for all the information you need on New Hanover County, Pender County and Brunswick County schools.  This innovative digital magazine is the first in the Wilmington NC area.  Useful information is at your fingertips when selecting the best school for you or your child from Kindergarden to Higher College Education, whether it be a public school or private school.  We have it all here for you.  Please take time to visit, and explore the links to each school system.  All the information about registering for schools, what each library has on it’s shelves, special need centers in each school and contact numbers are all put together for you in an easy digital magazine.  There is also a link for Wilmington NC real estate to search for homes in a certain school district.  We want to make your life easy, especially when entertaining a move.  Click here for the Greater Wilmington NC School Guide. Search all Wilmington NC real estate on www.cbbaker.com and let us know if we can help.

Wilmington NC Real Estate Homeowners

Starting April 5, 2010 the Government will be paying homeowners in default, to relocate. The new program will demand lenders to honor short sales whereby the homeowner can sell the property for less than the mortgage payoff. The Obama administration is trying a different approach to assist more than 5 Million households who are behind on their mortgages. In turn, the homeowner will receive $1500 for relocation assistance and the lender $1000 for expediting the short sale process.  

This arrangement could prove very beneficial to the homeowner, as they will not suffer further credit damage and they will get reassurance from the lender that they will not be sued for the balance. And, under this arrangement, the number of potential  foreclosed homes on the market should drastically decrease which in turn, should improve the  overall housing market.

Finally, short sales will have their day! If you are facing a foreclosure, and need assistance, we are specialists in the Wilmington NC real estate short sale and foreclosure market. We are there for you every step of the way. Just give us a call or email kaybaker@ec.rr.com.

And, if you are looking to purchase a short sale or foreclosure, we have you covered there, as well.  We have a Certified Distressed Property broker on our team and will help you with your short sale or  purchase a short sale or foreclosure with complete knowledge of the process.  Read more here

Many homeowners in the Wilmington NC real estate marketplace are finding themselves with a mortgage balance higher than they can even sell their home for. This puts the seller in a “short sale” situation. This means that the lender may agree to accept less than is actually owed on the property.  And, not all lenders will agree to accept less than what is actually owed, especially if you are not in default.  If you find yourself in this situation, you need a qualified real estate professional to guide you through this process. It is not an easy one, trust me. We will assist you in putting together a hardship package for the lender that may include a financial statement, hardship letter, bank statements, income statements, an appraisal on the property and even a listing agreement to prove that the property is on the market.

If you are in need of assistance, please do not hesitate to call or email kay@cbbaker.com. We are happy to answer any questions you may have concerning short sales and foreclosures in Wilmington, NC. And, if you are a buyer, we can send you a list of short sales and foreclosures, or you can search short sales and foreclosures.

Spring is right around the corner in Wilmington NC. What a great time to get a jump start on your spring cleaning.  If you are considering putting your home on the market, this might be the time to hire a cleaning professional.

Some of the things you need to keep in mind are:

1. Make a list of things that you would like to have done to the interior and the exterior of the home. 

2.  Do your homework and ask friends for referrals of cleaning companies.  Check out references before you hand over the keys to you home.

3.  Make sure that the cleaning company handles taxes for their employees, has insurance and is bonded.

4. Get an estimate for services and make sure it is detailed.  Your idea of a cleaning might be different than theirs.

5.  Make sure that the company can schedule days to fit your schedule and whether or not they supply the cleaning equipment and supplies.

6.  A professional cleaning job can make your home shine and show well. 

7.  Call us to help you sell your home!

So, start your real estate search today at www.cbbaker.com.  You can find a new home as well as get seller advice.  You can search by price range, map, schools, neighborhoods and more.

Wilmington NC real estate market

The Wilmington NC real estate market is really making a bounce back with the number of showings at Coldwell Banker Sea Coast up a whopping 72% over December! There were 2757 showings of our very own listings in January! That is amazing.

If you are in the market to sell your home this year, now is the time to be getting your home on the market. You don’t want to be left behind when we get into our Spring selling season this year. The Northeast market is rebounding, as well. When that happens, those buyers will be here in the Spring to purchase .

And Wilmington NC home buyers, don’t forget the clock is ticking for the tax credit. If you would like to search for homes in Wilmington, NC by price range, schools, map, zip codes and even neighborhoods, my website does it all at www.cbbaker.com. Please feel free to contact me at kaybaker@ec.rr.com.

Wilmington NC Real Estate

Coldwell Banker Sea Coast Associates now have the ability to leverage the power and success of Homes.com! One of real estate’s fastest-growing property portals, Homes.com features nearly 100 percent organic traffic for better listing performance and higher quality leads. Now all of our Wilmington NC real estate listings will be near the top of the search results.

Coldwell Banker Sea Coast Realty and Homes.com have
partnered together to increase your listing exposure
to more than 4 million monthly viewers.

Homes.com

Homes.com Premier Listings include:
Up to 30 photos of your current listing will
automatically be displayed
Virtual tours will automatically display
Agent photo and name will appear
Your phone number, email and link to your agent
website will appear
Listings included on the Homes.com search application for the iPhone include a link from to drive traffic directly to your website
Live mapping of each property
Control panel access for tracking and lead distribution
A Control Panel is available for those agents who wish to make additional changes to their listings on
homes.com.

If you are looking to sell Wilmington NC real estate, please give us a call today. We will show you our very aggressive marketing approach for 2010! Don’t hesititate, give us a call today or email kaybaker@ec.rr.com.