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Pending Sales of Raleigh Real Estate vs Inventory Levels [Infographic]

Raleigh Real Estate saw a spike in March 2011 for Pending Sales. The graph shows the sales declined but inventory continued to climb. Sales this fall season have fallen off.

Our prediction for December is still sluggish sales with sellers withdrawing their homes from the market til the Spring Market arrives.

We also predict February through June 2012 sales will be robust and strong with housing prices increasing.

If you would like to get a free analysis of home sales in your subdivision, contact a HomeTowne Realtor.

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Raleigh Realtor offers Sellers a Tip to Sell Their Home Quickly

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7 Smart Raleigh Real Estate Strategies for Remodeling Kitchens

Raleigh Real Estate

Raleigh Real Estate

By: John Riha

Kitchen remodeling can turn a ho-hum room into your home’s pride and joy. Here are strategies to help your project run smoothly.

A significant portion of kitchen remodeling costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 to $60,000 range recoup about 69% of the initial project cost at the home’s resale, according to recent data from Remodeling Magazine’s Cost vs. Value Report.

To make sure you maximize your return, follow these seven smart kitchen remodeling strategies.

1. Establish priorities

The National Kitchen and Bath Association (NKBA) recommends spending at least six months planning your kitchen remodeling project. That way, you won’t be tempted to change your mind during construction, create change orders, and inflate construction costs. Here are planning points to cover:

  • Cooking traffic patterns: A walkway through the kitchen should be at least 36 inches wide. Work aisles should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.
  • Child safety: Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the proper height—3 inches below the shoulder of the primary user but not more than 54 inches from the floor.
  • Outside access: If you want easy access to entertaining areas, such as a deck or patio, factor a new exterior door into your plans.

A professional designer can simplify your kitchen remodel. Pros help make style decisions, foresee potential problems, and schedule contractors. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.

2. Keep the same footprint

No matter the size and scope of your kitchen remodel, you can protect your budget by maintaining the same footprint: Keep the walls, locate new plumbing fixtures near existing plumbing pipes, and forget bump-outs.

Not only will you save on demolition and reconstruction costs, you’ll cut the amount of dust and debris your project generates.

3. Get real about appliances

It’s easy to get carried away during your kitchen remodeling project. A six-burner commercial-grade range and luxury-brand refrigerator may make eye-catching centerpieces, but they may not fit your cooking needs or lifestyle.

High-priced appliances are worth the investment if you’re an exceptional cook. Otherwise, save thousands with trusted brands that receive high marks at consumer review websites, like www.ePinions.com and www.amazon.com, and resources such as Consumer Reports.

4. Light your way

Good kitchen lighting helps you work safely and efficiently.

Install task lighting, such as recessed or track lights, over sinks and food prep areas; assign at least two fixtures per task to eliminate shadows. Under-cabinet lights illuminate cleanup and are great for reading cookbooks. Pendant lights over counters bring the light source close to work surfaces.

Ambient lighting includes flush-mounted ceiling fixtures, wall sconces, and track lights. Pair dimmer switches with ambient lighting to control intensity and mood.

5. Be quality conscious

Functionality and durability should be top priorities during kitchen remodeling. Resist low-quality bargains, and choose products that combine low maintenance with long warranty periods. Solid-surface countertops, for instance, may cost a little more, but with the proper care, they’ll look great for a long time.

If you’re planning on moving soon, products with substantial warranties are a selling advantage.

“Individual upgrades don’t necessarily give you a 100% return,” says Frank Gregoire, a real estate appraiser in St. Petersburg, Fla. “But they can give you an edge when it comes time to market your home.”

6. Add storage, not space

Here’s how you can add storage without bumping out walls:

  • Install cabinets that reach the ceiling: They may cost more–and you might need a stepladder–but you’ll gain valuable storage space for Christmas platters and other once-a-year items. In addition, you won’t have to dust cabinet tops.
  • Hang it up: Mount small shelving units on unused wall areas and inside cabinet doors; hang stock pots and large skillets on a ceiling-mounted rack; and add hooks to the backs of closet doors for aprons, brooms, and mops.

7. Communicate early and often

Establishing a good rapport with your project manager or construction team is essential for staying on budget. To keep the sweetness in your project:

  • Drop by the project during work hours: Your presence broadcasts your commitment to quality.
  • Establish a communication routine: Hang a message board on site where you and the project manager can leave daily communiqués. Give your email address and cell phone number to subs and team leaders.
  • Set house rules: Be clear about smoking, boom box noise levels, available bathrooms, and appropriate parking.

HomeTowne Raleigh Realtors help Sellers know how to make improvements that bring the most money when selling in today’s market.

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Protect Your Raleigh Home against Mold

Raleigh Home with Mold problem

Raleigh Home with Mold problem

September has been declared Mold Awareness Month by the US Environmental Protection Agency (EPA).  It was designed for homeowners to evaluate the possibility of mold growth in their Raleigh home under normal or emergency situations.

Mold is a microscopic organism that is found everywhere and serves a helpful purpose in nature; however, indoors mold can cause eye irritation, congestion, and respiratory problems.  This indoor problem is also very expensive to fix and is estimated to cost insurers more than $2.5 billion a year.

Studies by Harvard University show between 40 to 50% of homes have moisture and mold problems serious enough to significantly increase respiratory symptoms.

In a Reader’s Digest poll, mold was ranked the 2nd greatest concern for homeowners, more threatening than lead paint and pesticides.  According to the EPA, the average home can be 2 to 5 times more polluted than the air outside.  They estimate Americans spend approximately 90% of their time indoors.

For better indoor air quality, the most important thing homeowners can do is control indoor moisture and humidity.  The trick is to find the right balance.  50% or lower relative humidity is the magic number for optimal comfort.

There are toxic and non-toxic fungi indoors, with a number of those spores neutral from a health perspective and some that are beneficial.  Homeowners develop issues with mold when it becomes active and releases spores into the air.  If those spores are not captured by your air filter, they will be inhaled and, like ragweed, can cause an allergic reaction.  Here are some tips homeowners can take to prevent the “toxic” or at least allergenic fungi.

Experts say that simple home maintenance is the best way to prevent mold from presenting itself in the first place.  When excess moisture accumulates indoors and air circulation is reduced, mold problem areas will develop.

Tips on keep mold at bay:
  • Fix water leaks as soon as they are detected.
  • Keep hard surface floors, counters, and upholstery clean with detergent and dry completely.
  • Take steps to prevent condensation from developing around windows, walls, pipes, and floors by adding fiberglass insultation.
  • Use dehumidifiers and air conditioners especially in hot, humid climates.
  • Use Mold Resistant products.
  • Use exhaust fans in bathroom and kitchens to remove moisture to the outside.

Air Conditioning

According to the EPA, the only way to control indoor mold is to control moisture levels in a home.  Ventilation and air flow is a critical component in preventing moisture building up, and the best way to control moisture is to insure your AC system filter is changed on a regular basis, every 2-3 months.

Leaving dirty air filters in your heating and cooling system will reduce air flow, resulting in the blower motor to work harder and longer and more energy consumption and an increase in moisture content in your home’s air.

Use quality air filters to help reduce mold in your home.

1.    Pleated panel with a metal support grid – This extends the surface area of the filter and allows more contaminants to be captured, resulting in cleaner, fresher air quality. Look for a rust resistant galvanized-dipped metal support that follows the pleats of the filter – this ensure the filter will not buckle when the AC system turns on and off. You also want the filter to be made of high performance synthetic filter media, which will trap moisture as it flows through the air filter, while at the same time provide the right balance of air flow efficiency and filtration.
2.    Double-wall framed with moisture-resistant cardboard for structural support – This insures the integrity of the air filter as a critical part of your ac system. Like the metal support grid, this adds another level of support. In addition, the moisture resistant cardboard keeps the walls from getting “wet” as moisture presents in the air, which will prevent the air filter itself from “buckling” (which could lead to costly repairs).
3.    MERV 11 Rating: MERV stands for Minimum Efficiency Reporting Value and is a standard for rating the effectiveness of an air filter in removing airborne particulate contaminants. The higher the number the smaller the particles the filter can capture. Don’t be fooled, as some major brand air filter companies have decided in recent years to come up with their own rating system to hide substandard design, filtration, and efficiency. The MERV11 rating is recommended by the EPA to provide the necessary air filtration for good indoor air quality.

Carpeting

  • After carpet cleaning, place air movers around the room to help carpets dry faster.
  • Turn up HVAC systems as soon as carpet cleaning begins and keep them at elevated levels for two to four hours after cleaning.
  • Don’t walk on carpet because this can soil the carpet and it is these organic soils that soon become welcome signs for mold colonies.
  • Pay special attention to carpet on concrete floors.  Carpet can absorb moisture and serve as a place for mold to grow.
  • Do not install carpeting in areas where there may be a perpetual moisture problem in the home.
Raleigh Home - Selling Your Raleigh Home

Raleigh Home - Selling Your Raleigh Home

As just one of the many concerns of being a homeowner, mold should be at the top of the maintenance list.  This often undiscovered danger is usually kept in check with some important, yet easy maintenance tips.   Waiting until you are ready to sell your home will only cost you more money and heartache when a buyer discovers this problem.

Source: http://www.epa.gov/moldresources.html

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Fewer Homes For Sale as Inventories Fall Sharply for Raleigh Real Estate

Raleigh Real Estate

Raleigh Real Estate

High inventories of homes for sale have plagued many markets, but in a
recent analysis of metro areas, inventories were found to be shrinking
sharply during the second quarter, The Wall Street Journal reports.

About 2.34 million homes were listed for sale on the multiple-listing
service by the end of June, the lowest level for that time of year since
at least 2007, according to Realtor.com. What s more, some inventory
levels even reached their lowest levels since the housing crisis began
five years ago, which has prompted some markets to even say their facing
a shortage of homes on the market.

While a drop in inventories can often signal more demand — and
ultimately a boost to home prices — some analysts aren t so sure this
signals a complete turnaround for the real estate market quite yet.

While sales are picking up in some cities, analysts say the sharp
decline in inventory also reflects the slow pace at which banks are
processing foreclosures, The Wall Street Journal reports. (The number
of homes in foreclosure — a backlog of 2.1 million — is near a high.)
Also, some sellers are taking their homes off the market due to low
offers and waiting until they put it back on the market.

In its analysis, The Wall Street Journal found that of the 28 major
metro areas evaluated inventory levels had dropped in all 28 — except
for three. What s more, they found that inventories had dropped by
double digits in 16 of those markets during the second quarter when
compared to a year ago. For example, inventories dropped in Miami by 43
percent from a year ago; 30 percent in Washington, D.C.; and more than
20 percent in cities like Charlotte, N.C., Seattle, and San Francisco.

“We’re in a shortage situation,” Brett Barry, a real estate professional
in Phoenix, told The Wall Street Journal. Phoenix has a four-month
supply of homes listed for sale at its current pace. “It’s a very
artificial, ‘Twilight Zone’ kind of feeling, because we know there’s a
lot of homes out there.”

Source: Home Listings Fall But Woes Persist, The Wall Street Journal

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Prepping a Home for Sale in the Raleigh Real Estate Market

Home Staging Service by HomeTowne Realty

Home Staging Service by HomeTowne Realty

Prepping a Home for Sale: Simple Staging Tips for Inside and Out

Before you show your home to any potential buyer, you want to make sure the staging is perfect. Follow these general tips and your home will look better than the competition.

FOR THE INSIDE
Clear all unnecessary objects from furniture throughout the house. Keep accessories and objects on the furniture restricted to groups of 1, 3, or 5 items. In general, a de-cluttered home helps the buyer mentally move in with their own things. Rearrange or remove some of the furniture in your home, if necessary. Many times home owners have too much furniture in a room. When it comes to selling your home, thin out overcrowded rooms to make the rooms appear larger.

Clear all unnecessary objects from the kitchen countertops. If it hasn’t been used for three months put it away! Clear refrigerator fronts of messages, magnets, pictures, etc. In the bathroom, remove any unnecessary items from the countertops, tub, shower stall, and commode top.

Keep only the most necessary cosmetics, brushes, perfumes, etc., in one small group on the counter. Coordinate towels in one or two colors only. Take down, reduce, or rearrange pictures and objects on walls. Patch and paint all walls, if necessary.

Review the house interior, room by room, and
1. Paint any room needing paint.
2. Clean carpet and draperies that need it.
3. Clean windows.

Pack up and store. If you need room to store extra possessions, get a storage unit.

Leave on certain lights during the day . During showings turn on ALL lights and lamps. Set a background tune. Play light FM music every day in the house, for all viewings.

FOR THE OUTSIDE
Go around the perimeter of the house and move all garbage cans, discarded wood scraps, extra building materials, etc., to the garage or, if applicable, take them to the dump.

Check gutters and roof for dry rot and moss. Make sure they are swept and cleaned.

Examine all plants. Plants are like children they grow so fast. Prune bushes and trees.

Keep plants from blocking windows: You can t sell a house if you can t see it!

Remove any dead plants, weed all planting areas, and put down fresh mulching material.

Keep your lawn freshly cut, edged, and fertilized during the growing season.

Clear patios or decks of all small items, such as little planters, flower pots, charcoal, barbeques, toys, etc.

Check the condition of the paint on your home, especially the trim and the front door.

The first impression, or curb appeal, is very important.

IN GENERAL
Try to look at your house through a buyer s eyes, as though you’ve never seen it before. This exercise will help you see what needs to be done. Any time and money invested on these items will usually bring you the return of more money and a quicker sale.

By Barb Schwarz, Stagedhomes.com

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The Art of the Auction: Turning Losses into Liquidity

RISMedia, June 1 2011—The word “auction” is derived from the Latin augeo which means “I increase” or “I augment.” Auctions have a long history, having been recorded as early as 500 B.C. There were many types of auctions held during the Roman Empire. One of the most significant historical auctions occurred in the year 193 A.D. when the entire Roman Empire was put on the auction block by the Praetorian Guard who offered the empire to the highest bidder. In some parts of England during the seventeenth and eighteenth centuries auction by candle was used for the sale of goods and leaseholds. This auction began by lighting a candle after which bids were offered in ascending order until the candle spluttered out. The high bid at the time the candle extinguished itself won the auction. The oldest auction house in the world is Stockholm Auction House, established in Sweden in 1674.

What is going on today?
The National Association of REALTORS® recently reported that distressed homes (typically REOs and short sales) accounted for 40% of the existing homes sold in March 2011. A new report released by Lender Processing Services on May 3rd, 2011 shows that foreclosure inventory as of the end of March 2011 was 2.2 million loans—a new all-time high. On May 4th, 2011, the FDIC provided detailed information in their “Special Foreclosure Edition” regarding Foreclosure/REO for all companies that they oversee. Banks and mortgage companies/servicers are experiencing foreclosure/REO volume spikes that are at all-time highs. Auctions are being done by the majority of both large and small banks and mortgage companies. Auctions are a valuable loss mitigation tool for collateral management staff as they help reduce inventory and minimize losses on select assets. The fact that auctions substantially reduce the number of units in inventory helps markets move to a more balanced environment.

Prior to any kind of action, the owners of these distressed homes must first establish worth of their asset. The real estate community is sometimes challenged to obtain the level of information and reports that would support valuation and sale analysis of distressed homes. Auction companies should be able to provide detailed feasibility studies that contain multiple metrics that support asset valuation and assumptions regarding the future performance of the real estate market near the subject property. A realistic schedule and timetable of anticipated cash flows from the asset should be established based upon realistic future market scenarios/assumptions. An auction is a great way to ensure that the cash flows can be net present value factored to a correct date in order to establish an accurate value. The Internet and modern technology has made a positive impact on auctions. Some auction company websites generate hundreds of thousands of page views per month from multiple countries. Interested bidder’s activity is closely monitored and is available to sellers 24/7.

Why sell via the auction method?
The auction method accelerates the sale of real estate assets. Auctions generate global consumer/investor interest via the World Wide Web. Non-contingent contracts and quick settlements are required of all buyers of auctioned properties. The seller sets the terms and conditions of the auction sale and the date and time of the sale and closing. Auctions do away with multiple showings and often stressful pricing negotiations with buyers. The bidding process creates competition that increases prices. The marketing strategy targets buyers matched to specific properties and bidders come prepared to buy. The auction bidding creates competition that increases sale price.

Why buy via the auction method?
The potential buyers obtain detailed information on each property from a due diligence package. The buyer knows the seller is seriously committed to sell. Auctions avoid extended negotiation which saves time. In multi-property auctions buyers can view many properties in the same place at the same time. Buyers determine the purchase price. Buyers know they are competing fairly and on the same terms as all other buyers.

Auctions are offered with or without a reserve. A reserve is a minimum number/price at which the property will transfer into new ownership. Auction laws vary by state with differing terms, definitions and rules and regulations can be different, so check with your attorney, REALTOR® or auctioneer. If you are looking for an auction firm consider first those with membership in the National Auctioneers Association and perhaps your state auctioneers association (www.auctioneers.org).

The auction method is a concept that dates to antiquity for a reason—It works!

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Best Selling Tip for Raleigh Real Estate

Raleigh Real EstateOne of the BEST ways to sell your home is with high quality photos.  The photos engage a buyers emotions causing them to want to see more of a particular home.

At HomeTowne Realty, a Raleigh Real Estate  company, we offers sellers a virtual tour with professional photographs.  The photo shoot typically takes no more than a half hour.  The photographer, whether a professional or your realtor, will photograph each room, including the main living areas, kitchen, bedrooms, and bathrooms.  They will choose shots that they feel best show off the home but will be happy to take any photos you request.

Some suggestions to make the shoot go smoothly would be the following tips.

  • Have the home clean and ready to photograph.  Anything you DON’T want in the photos please make certain they are put away someplace that won’t be photographed.
  • Light dust generally does not appear in pictures.
  • Turn on all lights (overheads and lamps) but make sure ceiling fans are in the off position.
  • Open all window blinds in the rooms to be photographed.
  • Remove all clutter, such as mail, keys, dishes, drying racks, etc. from the kitchen countertops.  Kitchens are one of the highest viewed photos.
  • Pets should be kept out of the way and any pet dishes removed during photography.
  • Please have all cars removed from the driveway and in front of the home.  Garage doors should be fully closed.
  • Remove any garbage cans from the street and make sure the yard is picked up of large items or debris.
  • All of the above items should be completed 1 hour prior to the photography appointment time.  If the home is vacant, please make sure any alarm systems are disabled before the scheduled arrival of the photographer.

Our goal is to get your home sold as quickly as possible which is why we take the time to present the best image of your home.

To learn what the current value of your home is go to myhtr.com

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Raleigh Realtors discuss new forms changes

Raleigh Realtors Signing New ContractThe North Carolina Real Estate Commission changed the Offer to Purchase and Contract as of January 1, 2011.  The old contract had two options for buyers.  One was to have an inspection period and the second was an option fee to buy due diligence time.  Most Raleigh Realtors continued to promote option 1 with the inspection period.

The new contract has removed the two options and now there is just a Due Diligence period. 

The Due Diligence fee and the Earnest money deposit is explained here:

1-    Due diligence money goes directly to the Seller once they sign the contract
2-    Due diligence money is always non-refundable unless the Seller Breaches
3-    Due diligence money is due immediately at Contract initiation
4-    Earnest money is usually refundable up until the due diligence expires
5-    Once the Due diligence expires then the earnest money become non-refundable because there is no other conditions on the contract and, therefore, the Buyer must perform. If the Seller Breaches the contract then the Buyer may have rights to retrieve not only the earnest money but also the duel diligence money and any fees associated with the purchase process.
6-    What amount is reasonable?  Base the amount on the time that is requested.
8-    Always allow 30 days due diligence. Any less time will result in undue stress and panic to achieve the date. Then allow up to 10 more days to close. Giving the Seller time to pack up and move out within reason. No Seller is going to pack up during due diligence. If they do
then they are risking unpacking!
9-    Only Cash offers with no Conditions would result in not requesting due diligence money.

Please consult with your Realtor or a Real Estate Attorney if you have more detailed questions.

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Buy or Sell Raleigh Home Near Triangle Expressway

If you considering buying or selling a Raleigh Home, be aware the NC Turnpike Authority is currently studying several routes for the Southeast part of the Triangle Expressway.  The expressway will connect Knightdale to Holly Springs via a completed 540.  Houses in the affected area can benefit as well as be hurt by this road.  

On November 4, 2010 the NC Turnpike Authority announced 3 routes it was studying as possible paths for the new Southeast Extension of the Triangle Expressway were eliminated. 

According to the Turnpike Authority, the Orange, Pink, Red and Green Corridors remain options at this time, and a new Tan Corridor route has been added for consideration. The Tan Corridor route, for Phase II of the project, the section between I-40 and Knightdale, was added after the Authority worked with the City of Raleigh and Wake County to minimize impacts to the planned Randleigh Farm property development.

Raleigh Homes

Triangle Expressway proposed routes

The remaining routes are being currently studied and the Draft Environmental Impact Statement should be released in 2012.

Garner citizens have already expressed their concerns at a public meeting in mid December 2010 for the Red Route which is proposed to go through the town of Garner.

According to an article in the News and Observer, the town of Garner plus church and neighborhood groups also are lobbying against the pink and tan options.

If the Southeast Extension is constructed as a new toll facility, interchange locations will provide access on and off of the roadway.  The proposed toll interchanges are NC 55 Bypass, Holly Springs Rd, Bells Lake Rd, US 401, Old Stage Rd, NC 50, I-40/Clayton Bypass, White Oak Rd, US 70, Rock Quarry Rd, Auburn Knightdale Rd, Poole Rd, and US 64 Bypass.

The complete feasibility study isn’t due to be finished until the year 2014.

What can homeowners do in the meantime when selling their home?  Disclose, disclose, disclose.

Determine if you home in within a proposed path on the NC Turnpike Authority website.

Most local real estate agencies have already planned for this and have a disclosure form to use with buyers.  By disclosing the proposed path near your home, you potentially are eliminating future legal problems. 

Buyers Agents have a responsibility to buyers to provide information regarding the potential future issues of buying a home within the proposed paths. 

NCDOT will determine which properties it will need to purchase to construct the project when a route is selected and approved and the highway design is complete, which is tentatively scheduled to happen in 2013.

The NC Turnpike Authority has provided information to the public regarding right-of-way acquisition.  They also offer relocation assistance should your home be within their acquisition area.  You can read their brochures at http://www.ncturnpike.org/projects/southeast/documents.asp

If you need help buying or selling a home, let a HomeTowne Realty agent  help.

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