Wilmington NC Real Estate, Wilmington NC Homes, Wrightsville Beach Homes.

• Don’t rush into the transaction. Buyers searching for homes in tight markets may feel pressured to make an immediate offer.
  Solution: Become familiar with the local market before making a purchase offer.

• Ask questions. First-time homebuyers, by definition, simply don’t have home buying experience. If you don’t know, ask. It may be uncomfortable, but let’s face it…a broker cannot answer an unasked question.

• There’s no such thing as the “ideal” house. Many buyers run themselves, not to mention their brokers, ragged as they repeatedly dismiss homes that meet most…but not all…of their requirements. A buyer who turns down a house that meets most, but not all, of their criteria may miss out on the best available property as well as good financing, should market conditions change.
  Solution: First-timers should definitely view many different homes as possible before making an offer. However, they should definitely not make an offer on the first home they like…but also, and more importantly, they should not hesitate to make an offer when they find a home they love.

• Don’t “Overbuy”. Many First-timers are routinely seduced into becoming “house poor”. That is, they spend so much for a home that they must forego annual vacations, restaurant meals and other forms of entertainment.
  Solution: Get Pre-approved with a lender. This can help determine a reasonable target price range and also identify the mortgage programs which can work best for you.

• Don’t wait for that 20% down. It’s an admirable goal, but it’s often years in the future for many first-time buyers. Instead — especially in markets with rising values — buy now with as little down as possible. Consider VA, FHA and other loans with private mortgage insurance (PMI).

• Be realistic. It’s tough to ignore a home’s curb appeal, but what about practical matters? Is there enough space? Is there off-street parking? Is the construction solid in good shape? What about maintenance costs? How far to work? It may seem like boring stuff…but it’s important none-the-less.

• Find out about zoning. Is the property next door zoned for a 24-hour service station? Fire station? Super Wal-Mart? Ask the broker about zoning for the property and the surrounding area. Find out before you buy. Otherwise you might be stuck with the home of your dreams…right next door to the new landfill.

• Don’t ignore representation. Chances are good that the seller has a broker. Who’s representing you?
  Solution: A buyer broker, an attorney, or both can give you needed representation at the bargaining table.

• Don’t Skip an inspection. A professional home inspection is simply a “must” whether you are buying an existing home or a new one. Speak with inspectors before you enter the marketplace to see how they work, what they cost, and what they recommend.

• Don’t under-estimate closing costs. Closing costs comprise much of the expense when purchasing a home. In many cases, the closing costs can be as much (if not higher) than the down payment amount being required.
  Solution: Examine your good faith estimate provided by your lender. Talk to people who have recently been through the buying process. Ask about fees you don’t understand. If some of the fees seem excessive, ask the lender if they can be waived (or at least reduced). Many lenders will work with you to secure your business. Just be realistic. If you feel that the lender is “taking advantage” of you, consult another lender.

If you’re looking for more room in your budget, take a good look at your home. Energy costs have shot up, and you may be paying a lot more than necessary to be comfortable in your home throughout the year.

Most homeowners have a number of easy, inexpensive options for reducing energy consumption and energy bills. The older your home, the more likely it is you can dramatically cut your utility costs, improve your comfort level and be environmentally responsible in the bargain.

Here’s where to look for opportunities to save as much as $500 a year on energy expenses:

Heating And Cooling Systems

• How old are your systems? If brand-new, you’re likely to have super high-efficiency units. If less than five years old, they’re likely to be high efficiency and certainly worth keeping. Older systems may or may not be costing you more money than necessary. If yours are 20 years old or more, replacing them could keep you more comfortable and cut your utility costs by a third or better. You may want to look at solar heating (free energy!) as part of a heating system upgrade. Though the initial investment in any new system may seem steep, consider that dramatically lower bills will recoup your cost in just a few years. After that, it’s pure savings.
• Make sure your heating and cooling systems get a tune-up every year. For under $100, a professional cleaning and maintenance check annually should more than pay for itself.
• Do you change your systems’ air filter monthly? Doing so costs little, but improves system efficiency, thereby saving money.
• Do you have an electronic thermostat? If not, install one and program it to use less energy (higher temperature in summer, lower in winter) while you’re away from home during the day, and at night while you sleep.
• Before going on vacation or a business trip, turn the thermostat down to 55°F in winter, or up to 80°F in summer. That’s comfortable enough to keep indoor plants alive, and to keep pipes from freezing during cold weather.

Hot Water

• How old is your water heater? Is it a high-efficiency unit? If your heater has given you 10 or more years of service, you would probably save money by replacing it.
• What temperature is your water heater set to maintain? Most factory settings are at 140°F, usually higher than necessary for a ready supply of hot water. Experiment with turning the temperature down and see if you even notice a difference. Start with 130°. If you find that adequate, drop it to 120°.
• Don’t forget to turn the water heater way down (preferably off) when you’re away from your home on business trips or vacation. Why pay for hot water nobody is going to use?
• Does your water heater have an insulating blanket? Are exposed hot water pipes wrapped in insulation? Keep them wrapped and you’ll spend less.
• Have you installed low-flow shower heads? Again, the cost of the fixtures will be repaid with annual savings, not only in reduced energy to heat the water, but also in lower water bills.

Air In/Air Out

• Do your outside walls and attic have insulation in them? To check the walls, remove a cover plate from an electrical outlet on an outside wall. If you can’t find any insulation, make the investment to minimize the amount of expensive “conditioned” air that escapes your home. Also consider adding attic insulation if you have 3″ or less. Go up to 12″.
• Do some of your air ducts run through your attic or basement? Make sure they’re wrapped in insulation.

• Does your home have more than one return register per floor? It probably should. No matter how many you have, make sure they are not blocked by furniture or curtains.
• Do you use your old fireplace? Though charming, fireplaces are certainly not energy efficient in today’s homes. Consider replacing it with an airtight woodstove or fireplace insert that sends heat back into your home.
• If you must use your old fireplace, make sure it has a flue that closes tightly and keep it closed when you are not using the fireplace.
• Does your home have new, energy-efficient windows, doors and storm doors? If not, consider investing in replacements with low-E or thermal-paned glass.
• Do windows and doors have properly installed weather-stripping and caulking in good repair? If not, it’s an inexpensive fix that takes a little bit of time but pays high rewards in savings.

Appliances

• Is your refrigerator less than 2 years old and energy-efficient model? Consider replacing refrigerators over 10 years old. At the very least, replace gaskets if they no longer fit tightly.
• Does your dishwasher have an energy-saving feature? Be sure to use it!

Lighting

• Consider replacing often-used incandescent light fixtures with fluorescent fixtures.
• Replace incandescent light bulbs with compact fluorescent light bulbs.
• Use lower-wattage bulbs throughout the house.
• Replace outdoor security lights that stay on all night with motion-sensitive fixtures.

Today’s housing market is challenging. That’s a given. It’s tough on buyers and sellers alike, who are anxious, not knowing where the real estate market is going next. They both want — and often need — a great deal whether they are buying or selling. Our current real estate market requires a special perspective no matter which side of the settlement table you are on. The rates inched up a bit last week, and the market has been hot.  If you have been waiting for interest rates to get better and home prices to fall, then you might get left out of the chance to buy.

Savvy buyers can readily find a lot to love in today’s market. Buyers feel the love from low interest rates and competitive prices to a huge selection of homes and incredible investment opportunities. Look past the national headlines — which are gloomy at best and don’t apply at worst — to our local real estate market. Here is where buyers benefit the most when the going is tough. Unless, of course, you wait and miss out.

Smart sellers, on the other hand, can benefit from a buyer’s market as well. Successful home sellers in today’s market know they must price their home correctly and be flexible. Providing a buyer with a great deal on their home opens the door for sellers to move on to their own next step — whether it’s moving up, downsizing or relocating. Smart sellers also know what they may give up on price, they can make up — and then some — on their next home purchase. That’s another bright side of today’s real estate market.

Take a moment to learn the seven reasons why it’s a great time to buy a home. And, be sure to contact us when you’re ready to make a move.

1. Loving Low Interest Rates
Historically low interest rates continue to allow home buyers to afford more home for their money. Lower interest rates reduce your monthly payment and increase your buying power. Locking in at a low, fixed-interest rate means your monthly loan payment will never change over the course of your loan.

2. Embracing Investment Property
Even if you’re not in the market to buy a primary residence, you should take a look at the properties available for sale as investments. With ever-increasing numbers of families looking to rent, it’s an opportune time to invest in a rental property. Being a landlord can be a rewarding experience when you find the perfect property.

3. Attractive Home Prices
Home prices have never looked better! Many sellers are motivated to get their homes sold and are pricing accordingly. Don’t be afraid to make an offer on a home or to work with us to negotiate a great price on a great home.

4. Wondrous Selection Of Homes
If your “needs and wants list” of home features can’t be contained, now is the time to be looking at homes. The selection available in our area is outstanding. No matter what your budget, family size or life stage, we can help you find the home that fits.

5. Digging Distressed Properties
Others’ foreclosures, bank-owned and short-sale properties can be the key to your next home. Don’t overlook distressed properties, as you may uncover a hidden gem priced right so you can make upgrades and improvements without breaking your budget. Distressed doesn’t always mean a steal, but it can often lead to a great deal.

6. Engaging Your Financial Options
If you’re tired of seeing your savings yo-yo in the volatile stock market, real estate is a great asset balancer. Consult your financial professional to make sure you have the savings to spare. When you’re ready, we can help you find great investment property or a home to buy for all-cash if you desire.

7. Winning Over Motivated Sellers
Successful sellers keep the market going. Homeowners are eager to sell their homes to buyers who make realistic offers. It’s a crowded market for sellers, but the ones who are motivated will offer a great price and may throw in incentives (e.g., helping with closing costs, etc.) or much-valued sweeteners — such as a home warranty — that are as good as cash.

8. Professional Partner
When you’re buying or selling a home, it’s difficult to go it alone. We can help you every step of the way when it comes to getting a great deal on a new home. Feel free to contact us anytime you’re ready to jump into our real estate market to buy or sell. We’d love to work with you!

5 Basics for Building Wealth

Through Investing in Rental  Property

There are some people that have decided to rent instead of purchase until they find exactly the right house and price for them.  The flip side of this coin is that there are renters out looking.  There are homes and investor properties that are priced right, that could produce a positive cash flow.  If you have been thinking about becoming an investor, now might be the time. 

With a relatively modest amount of capital and income, you can profit from real estate investing – once you recognize the chief elements of the rental-property marketplace:

• Taxes may be inevitable, but they are also controllable. In rental properties, you currently benefit from cash deductions for financing, management and operating costs as well as non-cash deductions for depreciation. You also benefit from possible lower long-term capital gains tax rates or tax deferral.
• Leverage involves multiplying your profits by financing as much of your investment as possible and reducing your down payment, thereby limiting the amount of cash tied up and increasing your tax deductions.
• “Positive cash flow” means income either before or after taxes. A savvy investor knows how to turn “negative cash flow” into positive, by maximizing rent through various strategies and through depreciation deductions.
• Appreciation, the result of selling at a higher price than you bought, appears to be a trend that shows no signs of abating. In investing, the important thing is to choose property in a location where prices are rising more than in other areas.
• Equity, the difference between the property value and the remaining loan balance, brings a profit either through refinancing or sale. Timing is a key consideration in maximizing equity profits, since the longer you own property, the fewer tax breaks available to you.

If you’re thinking about investing in your future through real estate, call or e-mail us for professional assistance in finding the right property for your situation.  Please feel free to visit www.cbbaker.com.  You can view properties by price, neighborhood, map and zip code.  If you have a question, do not hesitate to contact us.