Raleigh Real Estate Podcast with Tina Caul

Friends and Clients — Skeletons, spiderwebs, and Jack-o’-lanterns galore are popping up all over our neighborhoods, and that can only mean one thing: Halloween is just around the corner. If your preparations so far have involved stocking up on candy and choosing the perfect costume for yourself or your children, you’re on the right track. Getting in the Halloween spirit is great, but decking out your yard with spooky decor and buying sweets for trick-or-treaters isn’t the only thing you should be doing to get ready for the holiday ahead. Ghouls and goblins might be nothing more than fun, fictional frights, but there are some real dangers to watch out for on Halloween night. Thankfully, by following a few simple safety tricks, you can help make this Halloween a fun and safe treat for everyone. If you’re a homeowner expecting trick-or-treaters, make sure you: Keep your home, yard, and sidewalks brightly lit Clear debris and obstacles from your yard, steps, and walkways Keep pets kenneled Park your car in the garage Use LED candles instead of real candles inside Jack-o’-lanterns Tone down extra-scary decor Keep a close eye on your front door If you’re a parent with children who plan to trick-or-treat, make sure you: Always accompany young children to each house they visit Visit neighborhoods with sidewalks to avoid walking in the street Always use crosswalks and look both ways before crossing the street Add reflective tape to your child’s costume Keep masks at home, as they can obstruct your child’s vision Have your child carry a flashlight Establish a curfew for older children venturing out on their own Remind older, unsupervised children to call 911 in case of emergency Tell unaccompanied children to never enter a stranger’s home If you’re going to be driving on Halloween night, make sure you: Stay alert and watch for children in the street Eliminate any distractions within your vehicle Drive slowly Be especially cautious at intersections and corners Be mindful when pulling in or out of driveways With Halloween holding such a high risk of accidents involving child pedestrians, following these safety tips will be essential. Still, even after your children have made it home with their Halloween haul, there is still one more important safety concern you’ll need to address: Their candy. Check candy for the following red flags before letting your trick-or-treaters dig into their treats: An unusual or discolored appearance Spoiled or unwrapped items Tears or holes in wrappers In addition to following these tips, you should also be wary of homemade items or baked goods. If you don’t personally know who made them, these should be discarded. As a general rule for any treat: When it doubt, throw it out. Parents should also be mindful of treats that could pose a choking hazard. Hard candies, gum, peanuts, and small toys should only be given to older children. If you have any additional questions regarding tainted or unsafe candy, you can contact Poison Control at 1-800-222-1222 or your local police department. By following these tips, you and your trick-or-treaters will be all set to have a safe and happy holiday. Happy Halloween! Sincerely, Tina Caul

The Caul Group has its very own “Wizard of Oz,” and we’re sitting down for a quick interview with her today. For today’s message, I’m happy to be joined by the one and only Pam Saxman—better known as “The Wizard of Oz” here at The Caul Group.  Pam is our team’s operations manager, and in a somewhat literal sense, she is the “woman behind the curtain.”   Pam has also been described by members on our team as “the fixer” because she has a highly active role in ensuring all of our systems are in place and that we’re delivering first-rate customer service to all of our clients.  “Pam is our team’s operations manager, and in a somewhat literal sense, she is the ‘woman behind the curtain’.” We’re on pace to do 300 transactions by the end of the year, and Pam is integral to keeping the process moving at every turn without any interruption to the customer’s positive experience. Despite the hiccups that inevitably occur with some transactions, Pam is there to help our clients reach the finish line when it comes to their buying or selling needs.   One fun fact about Pam is that, at one time, she served as a pharmaceutical sales rep and manager, and her family would joke that she was a professional “drug dealer.” After doing that for 17 years, she made the switch to real estate and the rest is history. She’s also quite a musician—she played the violin for 14 years!   I thank Pam for taking time out of her day to sit down with me and giving some insight into her role on our team. If you have any questions for either of us about your real estate needs, please don’t hesitate to reach out. We’d love to help you!

Should you sell your home on your own, aka “For Sale By Owner”? Stay tuned to find out. Why would you want to sell your home on your own? In our industry, there are a few top answers that homeowners give to this question: They want to avoid commission fees They don’t see the value in using an agent They’ve had a terrible past experience with an agent They simply hate agents You, as a seller, might think that you’re looking for buyers to purchase your home, but in reality, you should be looking for agents—they’re who you’re marketing your home to. Why should you be looking for agents? Well, they have all the buyers; 98% of homes are listed and sold with a real estate agent on both ends of the transaction. So, forget the buyers: How do you find the agents? 1. Offer competitive compensation. The last thing an agent wants to do is bring a buyer to your property when you’re offering just 1%, or even significantly less than what they’re used to.   2. Market to the agents. Hop onto Zillow to see who the top agents in your area are and contact them. I can’t tell you how many times sellers will reach out to me and tell me that they’re selling their home on their own, but still want me to come show their property to our buyers. And so what do we do in those cases? We do bring them buyers if their listing is a good match.  3. Do more than just list on the MLS. If you think that simply putting your home on the MLS is going to solve all your real estate agent problems, it’s not. Around 8,000 homes are listed for sale on the MLS, and no agent can possibly know them all. That’s why it is key to get in front of the top agents in your area to help you market your property. Laura Payne, also from the Caul Group, has her own perspective on “For Sale By Owner” sellers (aka “FSBOs”): “98% of homes are listed and sold with a real estate agent on both ends of the transaction.” If a client of Laura’s told her that they wanted to go see an FSBO listing, her first response would be one of hesitation, since many FSBO listings are priced much higher than their market value. Her second response would be to say that at least she’d have a competitive edge; there won’t be that many buyers looking into the listing, and sellers don’t really know the process because they don’t sell hundreds of homes like agents do. There’s no bulldog in the seller’s corner. It’s not that we want to talk advantage of anyone, but the reality is that the buyer hired us as a fiduciary; they want the home for the cheapest price and the lowest down payment to hold the house. In general, FSBO listings are harder to deal with, since the sellers don’t have anyone with professional experience to guide them. However, we do recognize that not all FSBOs are doomed to failure; there are thousands of success stories where people have sold their homes on their own. But, since most homes are listed and sold with the help of agents, it’s in your best interest to hire your own professional help. If you want a bulldog like Laura on your side when it comes time to sell your home, feel free to reach out to us. We’ll be happy to look at your home and give you the best advice to help you succeed in your goals.

Here are the top 10 reasons that homebuyers tend to avoid listings from “For Sale By Owner” (FSBO) sellers. Why do homebuyers avoid purchasing homes listed as “For Sale By Owner”? There are 10 primary reasons, which I’ll share with you today. 1. 98% of buyers hire an agent to help them buy a home. 2. Working with an underrepresented seller is more complex than they’d like. 3. If you list on your own, buyers may not even know your home is for sale. They might not have checked Zillow or driven by your yard sign. 4. They don’t want to have to negotiate commission up front. This is an uncomfortable way to start a transaction; if they’re a first-time homebuyer, the prospect may be daunting. 5. Many buyers lack vision. “You need a proactive agent who has a proven track record of selling homes and providing agents who know all the buyers.” 6. The buyers may perceive something to be wrong with the house. 7. They might think you’re difficult to work with. There’s a beginning and an end to a transaction, and a lot goes on in between. The fear that the seller will be difficult presents quite a challenge for the buyer. 8. Scheduling showings, inspections, and appraisals will be a nightmare for them. 9. Buyers and agents may question the seller’s commitment to the transaction. 10. A buyer’s agent may fear any underlying issues you’re trying to hide (even if you’re not). With these points in mind, you need a proactive agent who has a proven track record of selling homes and providing agents who know all the buyers. If you’re thinking of selling your home and need an agent to represent you, don’t hesitate to reach out to me.

OpenDoor offers speed and convenience, but the fact is that you’ll walk away with much less money in your pocket if you choose to sell with them. Here’s why. OpenDoor is a company that has come into the market in the last few years - especially in the Raleigh/Durham area. You’ve probably seen their signs around town, but what do they mean and why do homeowners choose to work with a company like OpenDoor? I’m an agent that believes OpenDoor isn’t there to be a charity or offer convenience, they are there to make money. They’re a big company that’s looking to take your equity away and I want to share a perfect example with you today that illustrates exactly how they do that. We were recently working with a home seller and we gave them a list price of $425,000. OpenDoor offered that same seller $380,000. Our traditional listing fee is 6%, while their “convenience fee” is also 6%. However, they also add in a brokerage commission of 2.5% because when they buy the home, they’re going to resell it and need that money for the agent that they’ll pay who eventually brings a buyer. You end up paying the fees for two agents in this case. “The “convenience” of OpenDoor will end up costing you thousands.” OpenDoor doesn’t want homes with old roofs or HVAC systems, either. You’ll end up seeing $7,000 to $10,000 of repair fees on top of what we’ve already discussed. On the other hand, our repair fees typically run about $2,500. In the end, the “convenience” of OpenDoor will end up costing you $46,000. I don’t know about you, but I will be inconvenienced to save $46,000 of my hard-earned cash.  Before you go giving your home away to OpenDoor, give us a call. Let’s take a look at the numbers and make a decision. If you have any questions for me in the meantime or just want some honest advice about your specific situation, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon. 

Today I sat down with The Caul Group’s operations manager, Pam Saxman, to chat about a movement in the real estate industry. In real estate lately, we’ve noticed that many agents are moving from traditional brokerages to either independent firms or to other brokerages. In light of this trend, I sat down with The Caul Group’s operations manager, Pam Saxman, to chat about what’s next for our own team. I’ve provided timestamps for you below so that you can navigate our conversation at your leisure: 0:50—What has us excited about possibly making a move?2:04—Why many of our peers across the country are joining with the national brand eXp3:00—The top three reasons why we’re considering making the switch to eXp ourselves4:23—There are no boundaries to building a team with eXp5:20—About eXp’s referral-based system that rewards agents for inviting others to join6:02—How eXp’s revenue-share systems work for and benefit agents6:55—eXp’s agents are also rewarded with stock options Our whole team is excited about the prospect of making the switch over to eXp. If you’d like more information about it, simply reach out to us. We’d be happy to share what we know with you. 

Victoria Moberly has 10 years’ worth of experience in new home sales, and because of that, I asked her to join me today to explain why using an agent when buying new construction is more important than you may even realize.   When she’s on-site at new construction properties, Victoria is repeatedly asked a question that grows out of a common real estate misconception: “If I don’t hire an agent to represent me, will I receive a better discount?” The answer to that question is, unfortunately, no. Contrary to popular belief, you’ll actually benefit more from having an agent at your side. Without representation, you’ll still have to pay a 3% commission fee, but it’ll just go unused, not to mention that you’re hiring the on-site agent to negotiate against you. “You’ll benefit more from having an agent.” The new construction home buying process is long and painstaking, so having the support of an agent who has your best interest at heart is paramount to your success. “As great as the on-site agents are, their job is to represent the seller,” Victoria candidly says.  If an issue were to arise somewhere in the process, you’d be relieved to have an agent or a firm that will hold the builder accountable and push for a remedy on your behalf.  In keeping with our interview with Pam, Victoria also revealed one fun fact about herself. She’s a big fan of movie soundtracks, but since she’s had children, she’s learned that her music tastes are no longer “cool.” The “Frozen” soundtrack is one of her personal favorites.  I thank Victoria for taking some time out of her day to sit down with me and discuss this topic. If you have any questions for us, please don’t hesitate to reach out. We look forward to serving your real estate needs!

There are a lot of potentially stressful moments in a real estate transaction, and today I’m joined by Heather Blanchard, one of our team’s agents, to tell you how we make our buyers’ home purchases as stress-free as possible. This will give you an idea of what you should expect from your agent. In Heather’s opinion, one of the most stressful periods of a home purchase is going through the due diligence process. That’s when you have to get your appraisal done and conduct your inspections on the home. Sometimes, that inspection report can contain a long list of items to address. Fortunately, a lot of those items are typically nothing to worry about. When we work with our buyers, we go through each item on that inspection report and advise them on which issues they should fix and which they shouldn’t worry about. After we negotiate with the seller over what repairs to make, we have a Rolodex of contractors we can put you in touch with who will quote you on how much each repair will cost. “Sometimes, that inspection report can contain a long list of items to address.” Heather herself is a certified yoga instructor, so she knows a thing or two about stress relief. “I try to help you take the stress out of the process by just reminding people that it’s good to take a step back, take a couple of deep breaths, and that everything can be resolved,” she says. If you have any more questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.

If you are thinking of selling your home, think sustainability. A new survey by the National Association of Realtors just came out, and it made some remarkable points. For example, 61% of Realtors said clients are interested in sustainability. Also, a whopping 71% of Realtors said energy efficiency is valuable in helping sell a home. “Any of these projects can potentially add a lot of value to your home.” So, if you are interested in sustainability and you want to sell your home for a higher price, here are three projects to consider: 1. Energy-efficient appliances. Energy Star-certified appliances such as fridges, washing machines, and clothes dryers can be as much as 40% more water efficient and 25% more energy efficient than standard models. Those numbers go way up if you compare new energy-efficient appliances with models that are more than a few years old. Other gadgets throughout your house might also warrant an update. For example, if you have an old thermostat or an inefficient water heater, then smart new alternatives such as the Nest thermostat or solar water heaters might also be worth a look. 2. Solar panels. Speaking of solar, homes with solar panels sell 20% faster, according to the National Renewable Energy Laboratory. Even more impressive, they sell for a whopping 17% more than comparable homes without solar. And with a range of state and federal incentives still in place, solar can be a great way to make your home more green and attractive at the same time. 3. Windows, doors, and siding. Renovated windows, doors, and siding typically recoup about 80% of their cost in terms of higher home value. However, a full suite of energy-efficient windows, doors, and siding might be worth even more in the current sustainability-minded market. Plus, these projects increase your home’s curb appeal, making it more likely your home will get more interest from potential buyers. Any of these projects can potentially add a lot of value to your home. If you want to discuss which sustainability projects might make the most sense in your particular case or what kind of sale price you could achieve, please feel free to give me a call. If you have any other questions or real estate needs, feel free to call or email me anytime. I would be happy to help you.

There’s no doubt about it, it’s a very competitive market today if you are looking to buy a home. Inventory is near record lows, and more and more homebuyers are entering the market. This means you need every advantage to grab that perfect home when you do find it. “A pre-approval definitely gives you a leg up on the competition.” One no-brainer is to get pre-approved for a mortgage. A pre-approval informs you of how much you can borrow and it’s something you will need to do at a later point anyway. A pre-approval can mean the difference between having your offer accepted or having to watch your dream home go to somebody else in a crazy market like this. In spite of all these good reasons, less than 10% of buyers who got a mortgage also got pre-approved by the lender who originated the loan. In other words, you can definitely get a leg up on the competition by starting your home search at the loan office rather than at the open house. Here are a few things that you will need: Proof of income. At a minimum, lenders will want to see pay stubs from the past 30 days showing your year-to-date income, two years of federal tax returns, and two years of W-2 forms from your employer. Proof of assets. You will need to present statements from your checking, savings, or investment accounts to prove that you have funds for the down payment and closing costs. Good credit. Most lenders reserve the best rates for homebuyers with a credit score of 740 or above. You can still qualify for a mortgage with a lower credit score, but a good lender will also recommend ways that you can improve your credit and qualify for a better loan. These are the biggest and most common things you will need to get pre-approved, though your lender might want to see some other documents as well. Once you are pre-approved, the buying process will be faster, more convenient, and less stressful. Most importantly, it will make it more likely that your offer for that perfect home gets accepted. If you have any questions for me or need any additional assistance, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

If you need to sell your current home and buy another one, there are three options you can consider that will help you avoid being temporarily homeless or needing to move twice. The first is a leaseback. This is the most effective way to get your home on the market and get it sold, while also being able to take your time looking for a new home. With this option, the buyer of your current home allows you to stay in the property after the transaction closes and gives you 30, 60, or 90 days to find a new one. Basically, you have four or five months from start to finish to sell your original home and buy a new one. We have four seller clients who are exercising this option as we speak. If you sell your home and you get a little bit of time to close but still don’t find a house by the time you have to move, your next option is to rent a fully furnished apartment. We have executive housing apartments available for you in this case. These apartments offer everything—the only thing you need to bring along are your clothes. This option is a little bit more expensive than a traditional apartment lease because these specific apartments come furnished, but you do have the benefit of being able to put your belongings into storage and only renting for three months instead of signing a year-long lease. “A leaseback is the most effective way to buy and sell a house at the same time.” Your third (and least-preferable) option is a contingency. When you’re looking online for homes on Zillow, Trulia, and Realtor.com and see contingency banners next to any of them, it doesn’t mean those homes’ sellers have accepted contingencies. That means those homes are contingent on things like a closing, inspections, and appraisals—not somebody else selling their home. When you’re selling your home, which buyer would you rather accept an offer from—one who wants you to put your home on layaway while they try and sell their other home or one who’s ready, willing, and able with either a cash offer or a pre-approved mortgage? Typically in our current market, the only sellers who are open to contingencies are the ones whose homes have issues or have been on the market for awhile. For a home that’s just hit the market, about 99% of the time you won’t be able to get a contingent offer accepted. Your first two options are the best ones, but I’d be happy to talk you through all of these options if you’d like to know more. If you have any other questions or real estate needs I can assist you with, don’t hesitate to reach out to me. I look forward to speaking with you.

When preparing your home for the market, there are four areas you need to really focus on: 1. Curb appeal: Whenever sellers ask me where they need to start to get their home ready for the spring market, I tell them the front yard. Clean your flower beds, rake and clear away all the leaves, and remove any overgrown bushes and replace them with something smaller. 2. The kitchen: The kitchen is the heart of the home, and every Realtor can get excited about featuring a great kitchen on a listing. Start with potentially replacing old or mismatched appliances. Stainless steel appliances are still popular with today’s buyers, and we can help you also pick out some inexpensive appliances if that’s what it takes to do the job.  “These four areas should be of the utmost importance when prepping your home for the spring market” You also want to look closely at the cabinets in your kitchen. Sometimes we will list a beautiful home, but buyers will still say that it feels dated. What they’re really saying here is they’re not finding the look they’re after. We have painters on staff who can transform your kitchen’s look into something that will appeal to more buyers.  3. The paint: It’s a good idea to pick colors that are drawing buyer attention these days, which are the greys and light neutral tones.  4. The flooring: You definitely want to make sure your flooring looks amazing. If you have hardwood floors, they should look polished. Nobody wants to see scratched-up hardwood floors. If you have carpet, it’s a good idea (and a cheap one) to replace it to make everything look fresher. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

The Federal Reserve just announced a move that will have a big impact on both home buyers and sellers. At the latest Fed meeting on September 20th, Fed Chair Janet Yellen announced that the Fed would start to cut back its balance sheet. While that might sound boring compared to the usual announcements of Fed rate hikes, it’s actually a very big deal. You see, when the financial crisis hit 10 years ago, the Fed needed to take emergency measures, so it injected a huge amount of money into the economy. The Fed did this by buying up various financial assets totaling $3.5 trillion, an enormous sum that made up almost 25% of the entire U.S. economy at the time. This money helped stabilize various markets and get the economy back on track. However, the Fed is confident that the economy is now doing well enough for it to slowly start taking some of that money back. And that’s exactly what this announcement was all about. As you can imagine, this is going to have a massive impact throughout the economy, including on real estate. According to experts, it will inevitably put upward pressure on consumer borrowing costs, such as mortgage rates, which have stayed fairly low in spite of the Fed’s actions so far. In other words, if you are thinking of buying a home, the Fed’s most recent move will eventually make it more expensive for you to do so because you will be paying more in interest. If you are looking to sell your home, this might mean there will be fewer interested buyers, which might drive prices down and might make it harder to sell. Now, this won’t happen immediately, because the Fed’s balance sheet rollback will be gradual. As a matter of fact, the Fed is only reducing its balance sheet by a mere $10 billion a month to start with—just a drop compared to the $4.5 trillion total. But make no mistake, while the Fed’s moves will take time to bear fruit, they will drive up interest rates, particularly as the Fed ramps this process up in the coming months. “If you’re thinking of entering the real estate market, now’s the time to do so.” That’s why if you’ve been thinking of getting into the real estate market, now is such a crucial time. If you have any questions, whether about buying or selling your home, or about the details of the Fed’s announcement and what they mean for you, give me a call. I’m here to help.

Fall is upon us, and with it the end of the high season for real estate. However, if you’re thinking you’ve missed your chance to sell your home, let me reassure you: This autumn actually presents a fantastic moment to sell.Here’s why. First off, housing inventory is still incredibly low. In fact, according to data from the Census Bureau and the National Association of Realtors, inventory remains well below historic averages, and is 50% less than its peak in 2006. In addition, the recent slump in new construction means demand for existing homes will stay high in the near future. Second, while mortgage rates also remain very low, recent announcements by the Federal Reserve might cause them to finally start rising. This would make mortgages less affordable and might turn away a significant number of potential buyers. This is even more of a concern when you consider the continuing growth of home prices—6.9% in the last year alone. Third, buyers in the fall are likely to be more serious because they have probably been searching for months without success. Also, because fewer homes are listed in the fall, this means there’s even less competition than we’ve seen due to the general low inventory. So what do you get when you put all those things together? Well, if you were to list your home right now, chances are good that you would be able to sell it very easily and for a top price. On the other hand, if you decide to wait, the situation might not be as favorable because mortgage rates might rise or because new construction might pick up. “The time to list your home is now.” That means the time to list your home is now. If you’d like a precise estimate of what your home could sell for this fall or you have any other questions about the current (area) real estate situation, give me a call or send me an email. I’m here to help.

Real estate investing is on the rise. Here are five different ways you can get involved. Investing in real estate is no longer restricted to the super wealthy. According to a recent survey, real estate investors now make up 15% of the population. That translates to almost 50 million individuals who invest in at least one property other than their primary residence. In fact, 89% of U.S. investors are interested in putting their money in real estate because of benefits such as cash flow, tax incentives, leverage, and value appreciation that come with investing in multiple properties. REAL ESTATE INVESTING IS ON THE RISE. HERE ARE FIVE DIFFERENT WAYS YOU CAN GET INVOLVED. Are you curious about investing in real estate? If so, here are five different ways you can get started: 1. Buy and rent This is probably the most traditional way to invest in real estate. It simply involves buying a property and renting it out. Now is a good time for this kind of investing because rental rates are on the rise (8% since last year) but the downside of this investing approach is the time and effort needed to manage and maintain your investment. 2. Buy and sell Also known as home flipping, this involves buying a property and reselling it soon after for a profit. Home flipping has offered a record-breaking 49% return in 2016. 3. Real estate investment groups Real estate investment groups are organizations that buy a set of properties and then sell them to individual investors.The main benefit of this approach is that you typically do not need to act as the landlord because the investment group handles property management for you (for a fee of course). 4. Crowdfunding sites Recently, there’s been an explosion of sites such as Prosper and Lending Club, which allow individuals to invest in various real estate development projects. Through crowdfunding sites, you can be a part of a large-scale property investment while investing only a moderate amount of money. On the other hand, crowdfunding sites act as a middleman and charge fees which can eat into your profits. 5. REITs Real estate investment trusts (REITs) are like mutual funds for real estate.They typically pay high dividends. However, they also do not offer all of the typical benefits of investing in real estate, such as increased leverage and tax benefits. Each of these investing approaches offers a tradeoff between possible profits, risks, and costs. The one constant is that you can minimize your risks with due diligence and by consulting with an experienced real estate professional. If you have any questions for us or you’re interested in investing in real estate yourself, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

There are a lot of loan options out there with low down payment options. There are even some that don’t require a down payment at all. What’s the biggest obstacle to homeownership? According to a recent survey, “saving enough for a down payment” comes at the top of the list. A whopping 55% of prospective homebuyers cited this as their main stumbling block. And with the continuing growth of home prices, things aren’t getting any easier. In fact, homeownership rates reached a 20-year low last November. It wasn’t always like this. A decade ago, many lenders were offering easy, no-money-down mortgages. However, after the financial crisis, mortgage standards have become more restrictive. A typical mortgage now requires a 20% down payment. “55% CITED THE LACK OF A DOWN PAYMENT AS THEIR MAIN STUMBLING BLOCK.” Here’s the good news. If you have decent credit and a steady income, you might be qualified for a number of specialized programs that require no or very little down payment. Here are a few of the top options. First, there’s the USDA loan, which is valid for homes in certain regions, such as rural and suburban areas. With zero money down and lenient credit requirements, the USDA loan can be a great choice for many homeowners. Second, there’s the VA loan, which you can apply for if you or your spouse served in a branch of the military. It’s possibly the most generous zero-money-down mortgage because of low-interest rates and low closing costs. Third, there’s the FHA loan. It does require a 3.5% down payment—still drastically more achievable than the 20% required for a conventional mortgage. Finally, there are a number credit unions and first-time homebuyer programs that might apply to your particular situation. There’s one important thing you should know. If you get one of these no-money-down mortgages, chances are good you will be required to pay private mortgage insurance, which can drive up your monthly payments. Fortunately, private mortgage insurance will disappear after your mortgage balance is under 80%. Also, the money you do pay will be tax deductible in most cases. In short, there are lots of options to make owning a home a reality for you, even if you haven’t saved up tens of thousands of dollars. If you need more advice on getting a no-money-down loan, give me a call. I can put you in touch with some experienced lenders who can answer your questions and help get you started.

Today, I’d like to share some new Fannie Mae rules that those with student debt may find intriguing. If you have a student loan or you are a cosigner on one, I have some good news for you. Fannie Mae, the nation’s largest underwriter of mortgages, recently introduced three new rules that will affect those with student debt. These new rules can make it easier to get a mortgage, and they can make it easier to pay off your (or your kids’) student loans. The first change is for those on income-based repayment plans, where having a high debt-to-income ratio is the No. 1 reason for not being approved for a mortgage. Fannie Mae previously used a very conservative 1% of the total loan instead of the actual monthly payment. This can drastically lower your debt-to-income ratio and give you a much better chance of qualifying for a mortgage. Some folks are lucky enough to have their student debt paid by their parents or even by their employer. The thing is, Fannie Mae didn’t take this into account when calculating the debt-to-income ratio. That’s the second new change. If your employer or your parents have been paying off your student debt and you can show evidence of this for the past 12 months, then this debt won’t be counted in your debt-to-income ratio. This makes it more likely you will qualify for a mortgage. “IF YOU CAN QUALIFY FOR A MORTGAGE RIGHT NOW, YOU DEFINITELY SHOULD.” If you can qualify for a mortgage right now, you definitely should. Rates are still at a historic low, and lots of great houses have recently come on the Raleigh market. Fannie Mae also makes it possible to refinance your mortgage for more than the value of your home. Normally, there is a 0.25% fee that applies to any cash you take out in this way. The third big change is that Fannie Mae will now waive that fee when you use this cash to pay off a student loan. This applies whether the loan is yours, or you’re a cosigner. If the mortgage rate is significantly lower than the student loan rate, it can make sense to refinance in this way, and the new rule makes it cheaper to do so. If you need help understanding these new guidelines to see whether they’re right for you, or you have questions about putting them into practice, get in touch with me by phone or email. I’ll be glad to help.

Today I want to share my three top tips to help first-time homebuyers protect themselves during this crucial period. Buying your first home can be an incredibly exciting time. However, it requires a huge commitment and a sizable investment. That’s why I want to share my three top tips to help first-time homebuyers protect themselves during this crucial period: 1. Know what you can afford Your mortgage is only a part of what you will need to pay when you buy a home. Homeownership comes with plenty of other expenses, including closing costs, taxes, property insurance, maintenance costs, and homeowner association fees. Once you have a clear idea of how much all of these items will cost, you can compare it to your current monthly expenses. Then you can figure out the kind of home you can honestly afford without getting carried away and without getting bogged down in debt. 2. Choose your lender wisely Choosing a lender is not something you should base only on the lowest rate. A competent and trustworthy lender will offer you advice on how to improve your credit and also help you take advantage of special homebuyer programs that might benefit you. But how do you find the right lender specifically for you? It’s often best to get recommendations from friends who have already worked with a lender or from a real estate agent you trust. 3. Don’t overlook the details There are many details that go into buying a home, and missing any of them can be a costly mistake. I always advise buyers to get a professional inspection done on their home, separate from the appraisal. An inspection will set you back about $300, but it can save you thousands of dollars down the line, and it can even prevent you from making a decision to buy a home that you would later regret. A second example is understanding the fine print in the various contracts you will be signing. If there’s anything that isn’t clear to you, talk to your real estate agent and have it spelled out. The process of buying a home can be intimidating, and that’s why professional real estate agents are there to help. These three quick tips are only the start of the things you need to watch out for when buying your first home. If you need more advice or you are ready to start looking for a home, get in touch with me. I love working with first-time homebuyers, and I can help you get your perfect new home with minimum hassle.

Today, I’d like to show you a few steps you can take to help sell your home if you are a pet owner. If you have a pet and you’re looking to sell your home, then read on for some helpful advice. The good news is, many homebuyers are looking for a pet-friendly home. Two out of three of us have a pet, and 61% of pet owners say they have trouble finding a home that is a good match for their pet. In fact, a recent survey estimates that 31% of animal owners frequently don’t put in an offer because a home would not suit their pet. This means that if your home is a good match for a pet, it will be attractive to a large pool of dedicated animal owners. On the other hand, 67% of Realtors also estimate that actually having a pet in your home can make it harder for you to sell. So what can you do? Here are three things I typically recommend: 1. Repair any damage Floors, walls, doors, the yard — these are some typical areas that pets love to chew, scratch, and dig up. Repairing this damage is an investment that will pay for itself many times over in terms of a higher selling price. “PET OWNERS ARE LESS SENSITIVE TO ODORS IN THEIR HOME THAN PROSPECTIVE BUYERS ARE.” 2. Get a professional to remove pet odors Many pet owners are less sensitive to odors in their home than prospective buyers will be. That’s why you should hire a professional cleaning crew to clean any carpets, rugs, or upholstery that have absorbed pet odors. Once you’re done with the cleaning, ask a friend or your Realtor for a sniff assessment to make sure the job is really complete. 3. Take your pet out during showings Some people are afraid of animals. Others are allergic. And regardless of the time, money, and effort you’ve put in to clean and repair your home, many buyers will be prejudiced by knowing that a pet currently lives there. That’s why I recommend taking your pet out during showings and also removing any pet objects such as toys, food bowls, or scratching posts. By following these three simple guidelines, you will be able to sell your home for top dollar, whether the buyer is a pet owner or not. If you’re curious what you could get for your home in the current market, check out my home value calculator on my site. And in case you have any questions or concerns about preparing your home for a sale, give me a call. I’m here to help.

A lot can go wrong when purchasing a home. We are giving you these five tips to help you avoid making simple mistakes. There are so many different things to keep in mind when buying a home that buyers often forget a few of them. We want to help you avoid these if you’re thinking about purchasing, so here are five of the most common oversights we see buyers make: “THIS IS NOT YOUR DAD’S REAL ESTATE MARKET.” 1. Not considering the home’s resale value. This is not your dad’s real estate market. Our market is transient, and people move in and out very quickly. You want to make sure the home you pick is appealing to a broad range of buyers down the line. Stay away from a home with a sauna or a barn. It may not appeal to the next buyer. **2. Not factoring in expenses you’ll pay after the home closes.// Everybody is so focused on their monthly payments and closing costs, they forget about the additional costs that will inevitably occur when you move in. You may end up shelling out $10,000 or $15,000 in cash when you could have originally gotten a home that cost $10,000 or $15,000 more and not had to deal with any problems. 3. Not rooting out all restrictions. You want to make sure that you call the local municipalities and see what restrictions there are, if any, on the house. 4. Not checking if past work was up to code. Even if a homeowner has had a basement or attic finished by a professional contractor, they still need to have the proper permits. You don’t want to run into any issues here either. 5. Not getting the scoop on the HOA. Homeowners Associations are there to be supportive, but some are harder to deal with than others. Your agent can help you deal with certain restrictions and investigations. We have a great team of buyer’s agents that would be happy to help you check off these boxes on your next home purchase. If you have any questions, don’t hesitate to give us a call or send us an email.