What's your advice? Things to consider? Highest appreciation areas?

1/11/2006 7:40:39 AM

I'm not going to do the research for you.

1/11/2006 8:12:16 AM

http://www.google.com

then get a realtor.

1/11/2006 8:15:57 AM

you need to do a little more research first

a buyer's agent is your best bet if you are unfamiliar with the process...they will represent your interests

1/11/2006 8:46:23 AM

HAHAHAHAHAHAHA

You are asking high-stakes financial advice from TWW.

Shouldn't you be talking to a fucking realtor?

1/11/2006 8:50:18 AM

Quote :

"http://www.google.com then get a realtor."

an investment like this should be left to the pros.
but do get recommendations on a good realtor...i don't have any...i've never bought a house.

1/11/2006 8:59:40 AM

remember, if u have a house and car payment, get the car payment off cause they can't repossess your house as easily as your car.

1/11/2006 9:01:20 AM

^OR you could either not make commitments that you cant hack financially, or not be a leech on society and actually make the payments you agreed to

talk to a realtor though. they are your best bet. if you need help finding one, pm me. I know a couple good ones.

[Edited on January 11, 2006 at 9:16 AM. Reason : s]

1/11/2006 9:15:45 AM

raleigh/durham area just isn't good compared to most markets. i'd say stay close to good schools and areas that are growing. new development in chapel hill is always nice also and those historic areas of raleigh are good.

1/11/2006 9:39:28 AM

If you want a new house, do NOT buy something made by Westminster/KHovanian (Westminster is owned by KHov). They make their houses of chipboard. I'm not kidding! They claim it reduces a house from bowing over the years, but it's structural integrity is not so great. That's why their warranty is only 5-6 years. MI Homes offers 30-year transferable, structural warranties and I've heard Centex is pretty good (they make NCSU's stuff).

If you're looking at non-new houses it's always a good idea to get something on eastern side of Raleigh since they are usually cheaper. However, many neighborhoods around there are also new neighborhoods, so it might be hard to find something.

1/11/2006 9:41:18 AM

^, ^^ no offense intended to the two posters above, but they are prime examples of why you need to speak to a professional... i.e. a GOOD real estate agent

1/11/2006 9:43:04 AM

Advice:

Dont rush it.
make sure you spend the time/money on appraisels, inspections, pest inspections, etc... (dont skimp)
check out the neighborhood. check out the most recent sales in that neighborhood.
check out the appreciation rate of those houses.
are you gonna do any renovations?
no money down? 5%, 10%? Fixed rate? ARM?

1/11/2006 9:45:03 AM

mootduff is frightened

1/11/2006 9:55:21 AM

we have a tdub news van and helicopter... I think we need a photochopped image of a big skyscraper with a sign that says TWW Financial Advisors.

1/11/2006 10:03:43 AM

a few pointers:

1. get a book. i am sure there is a "house buying for dummies" book out there.
2. figure out what you can afford. there are tons of calculators out there but i find they usually say you can afford more than you probably really can. list out ALL your expenses and then compare that to your income. remember to include some savings in there as well as emergency funds.
3. if at all possible, have 20% to put as a down payment. that way you can avoid mortgage insurance.
4. look at yahoo's real estate pages, realtor.com, etc. figure out what houses cost in certain areas.
5. if you are planning on having kids (and even if not really) look at school districts.
6. compare home locations to your job locations. a house that costs a little more may be worth it when you count in gas.
7. get a buyers agent if you aren't comfortable. personally, i'll never use one again. i find them to be over rated. we pretty much know what to look for and the whole process. if you find a house that is for sale by owner and you don't have an agent, you can easily save a few thousand. however, if you are not comfortable, get an agent.
8. don't rely on your agent to tell the truth. alot of times you can ask them a question and they really don't know but will answer anyway. do your own research and get stuff in writing.
9. be picky and take your time. all those little electrical problems, low water pressure, plumbing quirks, etc will add up and once you actually buy the house, too late... you pay it. if there is something wrong, go back on the owners to either fix it or cut the price.
10. home warrantys are shit. don't ever let some home buyer try to use that as a bargaining chip. they typically only cost like $300... not worth the $5000 they try to bargain it for. if you want one, buy it yourself once the deal is closed.
11. on older homes, pay close attention to the roof. replacing a roof can be a fairly expensive ordeal and not one you want to undertake in your first year of ownership.
12. beware fixer-uppers. unless you are construction-competant, steer clear. repairs and renovations usually cost 2x what you estimate them to be.
13. things like insulation are important. double payne windows and heavy insulation can save you a ton long term.
14. back to the price thing, if you are married and are going to be using a double income to afford the house, be extra careful about not getting in over your head. if one of you gets sick or loses his job, you will be in way more trouble than you ever dreamed. not a good way to start out.


no clue on what areas to build in specifically around raleigh. just look for areas where there is a lot of new construction - businesses, homes, etc. make sure you have good access to major roads. be in a good school district. look out for flood zones. pay attention to what tax district you are in - county versus city.

[Edited on January 11, 2006 at 10:20 AM. Reason : er]

1/11/2006 10:09:05 AM

^double pane windows. even before the inspector gets there, look in the crawlspace (if there is one) for moisture, standing water, and insulation. pink fiberglass insulation is cheap and can be done very easily if you like the house but there is no insulation under it. it'll save you a ton of money in heating/cooling bills in the long run. check the walls around the windows for settling (if it's an older house). there will be lines/cracks that run from the corner of hte window to the ceiling. look at the foundation around the windows and all around the house for cracks and settling too. look for patched spots or a newly painted ceiling. check the cabinets and their drawers to make sure they work and are holding up well. make sure you understand which appliances will be left behind. if you like something that's in the house and it looks like it should maybe be left behind (like say a wall pot rack in the kitchen, or custom made carpet rugs in bedrooms w/ hardwood floors) ask for it to be included in the purchase price.

my home warranty (warranties, plural) cost $450. we had no idea how old the heating-a/c unit was, and this will cover it, the central vacuuming system, and the water heater.

i'm buying a house in rocky mount right now. i'm still shopping for a mortgage but i've decided on a 30 year fixed loan. i don't want to risk the rate going up after 3/5/7 years. 10% is absolutely ridiculous. don't take anything about 7% and shop around for a while before you commit to one. the loan doesn't necessarily have to come bank either. the lowest rate i've found so far is 5.8% at a smaller mortgage company here in town, oh and quicken loans too.

the news and observer has a real estate section in the sunday paper that posts about 20 or so mortgage loan companies and their rates for usually 30 yr fixed and 5/1 ARM. i've found that the online lenders (eloan, lending tree, etc) are much more expensive than most banks and small companies around here, but still check with them.

don't buy anything you can't afford. this is a major purchase that you will be paying for for a LONG TIME. don't screw it up.

the realtor will help you out and set up the appraisal, an inspector (who looks for pests too). he/she will know more about who is best to use than you. i don't have any recommendations for the raleigh area, but if you meet this person and you don't like him, think he's creepy or sleezy, or makes you uncomfortable for any reason, don't use him. find some one you like, some one you feel like you can trust. i got extremely lucky with my realtor. my dad recommended her and she has been the most helpful, kind, and understanding person.

[Edited on January 11, 2006 at 10:21 AM. Reason : ]

1/11/2006 10:12:11 AM

see i actually disagree on the realtor knowing best... sure some are great but we found very few that were better than simply competant. i say do your own homework. ask around. talk to people you know for recommendations. it really is easy to set up surveying and inspection. i find most realtors just use people they like. don't trust people who are making money off of you. cause no matter how sweet and nice they seem, you are business to them.

but sure, if you don't know what to do, don't want to take the time to research and figure it out for yourself, or just don't have the time, go with a realtor. a well informed buyer>>>good agent>average agent>>>>uninformed buyer.

[Edited on January 11, 2006 at 10:19 AM. Reason : e]

1/11/2006 10:19:11 AM

my agent isn't making one penny off of me.

plus i didn't say the realtor knows best. i said she'd know who's the best in terms of inspectors. you do NOT want a half-assed inspection.

i've done a ton of research on buying a house, but it's still a lot to take in, and i will never know or understand as much as someone who does this for a living every single day. since i still wasn't completely comfortable by myself and the agent wasn't going to making any money off me anyway, WHY NOT USE ONE? i definitely do not regret using a realtor.

[Edited on January 11, 2006 at 10:26 AM. Reason : ]

1/11/2006 10:22:22 AM

Quote :

"^, ^^ no offense intended to the two posters above, but they are prime examples of why you need to speak to a professional... i.e. a GOOD real estate agent"

I think my advice is fine, especially considering I spent nearly 8 months researching neighborhoods and companies a couple years ago before deciding on and getting a house. Depending on what price range he's looking at will be a factor, but if he wants appreciation east Raleigh's exploding due to new development.

30 year fixed mortgage rates are pretty standard, and hopefully you get something reasonable enough that you can pay it off sooner. For new homes oftentimes closing costs will be covered if you apply through one of their affiliate companies, but it's always good to check around. You'd be surprised, but applying for your mortgage directly through a bank seldom will get you the best deals. You may also want to consider an equity line (a 30 yr for 80% and a floating equity for 15%). Usually the floating equity, which sucks interest wise, can be paid off in a few years if you just don't have the cash for a large enough downpayment.

1/11/2006 10:26:47 AM

first time homebuyers programs usually offer a no or very little money down option too.

1/11/2006 10:28:11 AM

Quote :

"see i actually disagree on the realtor knowing best... sure some are great but we found very few that were better than simply competant."

that all goes back to doing your homework. there are bad realtors, just as their are bad people in every profession. we shopped around til we found an excellent realtor...and im very glad we did (especially since it was our first time buying a house). They took care of everything for us...so there was very little stress on our end.

i would certianly recommend a realtor for your first home....just their experience alone is a help.

Quote :

"a well informed buyer>>>good agent>average agent>>>>uninformed buyer."

i dont agree with that. i dont care how informed you are, until you are entrenched in the business, you simply arent going to have the experience to know the tricks of the trade. some things you simply cant learn from books, the internet, and other people.

[Edited on January 11, 2006 at 10:31 AM. Reason : df]

1/11/2006 10:29:20 AM

^exactly

1/11/2006 10:44:38 AM

Quote :

"an investment like this should be left to the pros."

http://www.brentroad.com

1/11/2006 11:19:00 AM

Quote :

"no offense intended to the two posters above, but they are prime examples of why you need to speak to a professional... i.e. a GOOD real estate agent"

good advice. and as a buyer a good agent costs you nothing. they make the whole process easier.

my recommendation is stay close to good schools. that's the only good advice i get a 3 bedroom if possible.

1/11/2006 11:20:20 AM

Quote :

"my home warranty (warranties, plural) cost $450. we had no idea how old the heating-a/c unit was, and this will cover it, the central vacuuming system, and the water heater."

Don't waste your money on these. The warranty company will not cover the heating/cooling unless you can provide recepits/documentation for it being serviced every year per the product's warranty. The people we bought our house from had gotten a warranty and had this very thing happen to them. Also, I had a water line break and they said they wouldn't touch it because it was outside the foundation of the house (by 8 inches). If you read the details of the contract there isn't much that they cover and even then they reserve the right not to pay for something at any time. Plus, you pay a $45 service fee for any visit by a technician but most businesses (plumbers, general contractors, etc.) will do free consultation/estimate so you are paying for nothing.

Quote :

"a well informed buyer>>>good agent>average agent>>>>uninformed buyer."

Not at all. Any decent agent knows ten times more than any home buyer is going to be able to learn even with enthusiastic research. My agent knew specifics on different siding, pipes, hvac units, etc. Heck, we ealked into one kitchen and she innediately recognized the dishwasher as being one that is prone to shorting out and starting fires. Also, the biggest reason to have an agent is simply for dealing with closing. Agents know exactly how things should proceed, they make sure your lender isn't fleecing you, and they make sure you get what you are looking for. Keep in mind that buyer agents work for you, they won't be convincing you to buy a house that isn't in your best interest because its bad for business. They thrive off of word of mouth and count on repeat business so they cater to you (at least any good one will).

My agent was Becky Harper (http://www.beckyharper.com/). She was insanely nice and brutally honest with houses. There is no rush or pressure either. She (or any other agent) will talk to you to get an idea what sort of things you want in a house (price range, general location, house specifics like garage, etc.) and set up a search page for you that will update with houses that fit what you want as they come on and go off the market. When you see one that peaks your interest you just tell them and they'll schedule an open house.

I'd focus more of your efforts on learning and understanding the lending process. People really screw themselves by not understanding just what their mortgage entails (like baloon payments, interest only predicaments, closing costs AND prepay items). Which reminds me... make sure you have at least a couple thousand in cahs to cover up front costs like home inspection, termite inspection, good-faith money, initial lending fees, appraisal, etc.

1/11/2006 12:19:39 PM

i would recommend checking with your bank to see if they have a movers/buy department. i bank with USAA and they have a movers advantage department, hooked me up with great real estate agent, and walked me through alot of the stuff. didn't pressure me to get a loan with them, just helped me along the way.

1/11/2006 12:50:12 PM

^^most of that is right on. The only thing I would say is that not all Home Warranties are created equal. Most of the time I would reccomend them... They can definitely be worth the money especially if you do not have a lot of disposable income should the a/c break or something. Of courses, you will have to make sure when you buy the warranty that it does in fact cover stuff like that, but in my experience they do.

Belle- I wasn't trying to insult you, but to tell someone that they should buy in East Raleigh because the prices are cheap is a gross generalization. I don't even know the Raleigh real estate market that well, but I can tell you in general, buying a house because it is cheap is not a good idea. Second, there are good areas AND bad areas in Eastern Raleigh. A realtor will help you distinguish which areas you want to be in and which areas to stay out of.

[Edited on January 11, 2006 at 12:57 PM. Reason : d]

1/11/2006 12:53:07 PM

^ no doubt.

There's a very good reason that home prices are so cheap in east raleigh, and it's one that most post-college homebuyers would never think about until they try to sell the house.

1/11/2006 1:01:51 PM

Quote :

"The only thing I would say is that not all Home Warranties are created equal. Most of the time I would reccomend them... "

agreed....i have buyers insurance from caldwell banker (actually got the seller to buy it for me) and its paid off already since our dryer broke.

1/11/2006 1:05:48 PM

Quote :

"The only thing I would say is that not all Home Warranties are created equal."

1/11/2006 3:08:37 PM

Quote :

"The only thing I would say is that not all Home Warranties are created equal. Most of the time I would reccomend them... They can definitely be worth the money especially if you do not have a lot of disposable income should the a/c break or something. Of courses, you will have to make sure when you buy the warranty that it does in fact cover stuff like that, but in my experience they do"

American Home Shield is probably the most well known warranty company and they are who handles mine. I would never buy the home warranty myself, make the seller pay for it (most do anyways). Yeah, they have their good moments but like I said, they wouldn't touch the gas pack unit on the house until documentation could be provided showing that the unit had been serviced by an HVAC professional every year according to warranty standards (no one has that). They wouldn't still be in business if they routinely shelled out $3,000 on a/c and such from a warranty that costs less than $500. A coworker bought a house and because he couldn't provide two years of service records they would not pay for the unit to be fixed.

Quote :

"Second, there are good areas AND bad areas in Eastern Raleigh."

Mostly bad.

Quote :

"I can tell you in general, buying a house because it is cheap is not a good idea."

Very true. We got our house about $10-15,000 below the neighborhood average because the previous owners were drity and lazy as fuck so the house was in bad shape. We'll make a good chunk of change off the difference between repair costs and what we will be able to sell it for but its a shit ton of work and still going. The location meant more to us than anything so we were willing to pay more than what the house would cost somewhere like south of Tryon or east of Raleigh.

1/11/2006 3:13:14 PM

i dont know if anybody said this already or not but its the main thing that people dont know about and builders wont tell you about. more and more houses are being built this way becasue its a little bit cheaper. try not to buy a house thats built on the ground on a cement slab. make sure it has a crawlway/crossbace underneath it because a house on the ground can lead to some very expensive inconvient maintence issues with plumbing and other stuff. then there are the situations with minor flooding/ponding and being 4 inches off the ground.

1/11/2006 6:43:39 PM

Quote :

"If you're looking at non-new houses it's always a good idea to get something on eastern side of Raleigh since they are usually cheaper."

Yeah, east Raleigh is cheap because that's the fucking ghetto.

1/11/2006 7:06:35 PM

Haven't looked into the Raleigh market, but renting a house is always an option as well if you aren't planning on living there LONG LONG term.

1/11/2006 7:12:19 PM

east raleigh isnt the ghetto. south raleigh is the ghetto. north raleigh west raleigh and cary are severly overpriced.

1/11/2006 7:20:56 PM

Get a realtor. When I first started looking, I thought I could do it on my own but I was wrong.
And don't fall in love with the first house you see.
I'm still looking in Cary.

1/11/2006 7:21:06 PM

Hi! I sent you a PM. If you still need advice/assistance feel free to get in touch with me.

Julie

1/11/2006 7:21:15 PM

^ better pm sent

1/11/2006 8:14:06 PM

I am in the process of buying a house. I had a shitty realtor, who i now find out was also dishonest, and now i am working with a decent realtor. Do your homework, go the wakegov website, look at the notes on the property. It will often list fire, storm, etc damage to the house, as well as tax value, and what other houses in the area sold for. Home warranties are for shit, they arent worth the paper they are printed on, I have heard many stories similar to the one above. Schools arent worth a whole lot of consideration in this area because redistriciting occurs often, your house might feed 3 different high schools while you live there. Are you buying a house as an investment or to live in? If its an investment, you probably dont care about quality as much as ease of resale. If you are going to live there, then quality fixtures, paint etc are more important. Unless you have tons of cash, and lots of property, buying a house for your main investment is stupid. I would guess you have done absolutely zero research since you are aksing questions on tdub. In that case good luck, cause you are an easy mark.

1/11/2006 10:48:05 PM

Quote :

"Haven't looked into the Raleigh market, but renting a house is always an option as well if you aren't planning on living there LONG LONG term."

yes renting is an option. in my case, as in many others, renting is much more expensive on a monthly basis than buying. plus, instead of throwing my money at some landlord who couldn't care less about his property, i'm building equity.

1/11/2006 11:13:56 PM

Quote :

"Belle- I wasn't trying to insult you, but to tell someone that they should buy in East Raleigh because the prices are cheap is a gross generalization. I don't even know the Raleigh real estate market that well, but I can tell you in general, buying a house because it is cheap is not a good idea. Second, there are good areas AND bad areas in Eastern Raleigh. A realtor will help you distinguish which areas you want to be in and which areas to stay out of."

I wasn't saying all the houses in East Raleigh are cheap, I'm saying comparatively. And it's not because they are old crappy houses that are falling apart. The VAST majority of houses going up on the East side are brand new houses and he asked for "highest appreciation areas". That's East Raleigh and maybe even Knightdale because of all the new development going on over there. I looked everywhere between Knightdale and Durham and that was the most bang for my buck. Take a look over there and you really won't see too many ramshackle neighborhoods (okay, maybe that's not true for some parts of Knightdale).

Let me give you an example:
New house in East Raleigh : $180K-$200K in almost all areas around there
Similar non-new house in West Raleigh: $450K or more
Exact same new house in Morrisville: $275K-$300K
Similar non-new house in Cary: $350K

All the neighborhoods were pretty similar except Cary neighborhoods weren't new. All were somewhat close to good schools and in a good part of town.

[Edited on January 11, 2006 at 11:43 PM. Reason : ]

1/11/2006 11:39:25 PM

exactly^the exact same houses in my neighborhood are being built in a new developement in north raleigh for 100k more by the same builder

[Edited on January 11, 2006 at 11:55 PM. Reason : meh]

1/11/2006 11:54:35 PM

^^

those numbers are waaaaaaaaaaaaaaaaaaaaaaayyyyyyyyyyyyyyyyyyyyyyyyy off

please disregard them, whatever it's in relation to, they're of no credible use

1/12/2006 12:23:30 AM

^They're exactly right. I happened to look at houses in all those areas (among several others) for the same type of houses. Looking at 3-4 Bedroom/2.5 or more bathrooms with approximately 2000 square feet. Give me time and I can look up the places I went and give you exact neighborhoods where they sell for/sold for those costs.

1/12/2006 1:56:03 AM

you just don't get it, and the sad thing is that you are going to sit here and argue until you are blue in the face about it. I am glad you got a good deal out in East Raleigh, I hope for your sake that it appreciates well.... but what I am talking about is simple supply and demand. There is PLENTY of land out there, and plenty of new houses are being build (I am going to make it easy for you.... this means supply is high). Even if the demand is fairly high (which it isn't if the prices are so much cheaper as you say), it will never appreciate faster than a nice area where the supply is fixed (where the development is finished or the space is land locked by other developed neighborhoods).

I was trying to be nice about it at first, but you are insisting on making assinine arguments. There may very well be some nice developments in Eastern Raleigh that appreciate well and are good areas to live, but to say "it's always a good idea to get something on eastern side of Raleigh since they are usually cheaper" is stupid and is the exact reason why this guy should go talk to someone who knows the raleigh real estate market and real estate in general (i.e. not you).

[Edited on January 12, 2006 at 9:41 AM. Reason : btw... your numbers are actually proving my point]

1/12/2006 9:40:49 AM

Quote :

"this guy should go talk to someone who knows the raleigh real estate market and real estate in general (i.e. not you). "

the same could be said for yourself.

1/12/2006 9:42:17 AM

You're right, I don't know much about the Raleigh real estate market, but I do know some about real estate in general. I am also not trying to hand this guy advice about what part of Raleigh he should live.

1/12/2006 9:44:34 AM

yes you are

1/12/2006 9:46:28 AM

Quote :

"Let me give you an example: New house in East Raleigh : $180K-$200K in almost all areas around there Similar non-new house in West Raleigh: $450K or more Exact same new house in Morrisville: $275K-$300K Similar non-new house in Cary: $350K"

ok, let's revamp these, or rather, let's talk about what you can ACTUALLY get for that price in each of those areas

- East Raleigh: $180,000-200,000 will get you 2,000-2,300 sqft
- West Raleigh: $450,000 will get you 4,500+ sqft for a house built in the last ~7 yrs
- Morrisville: $300,000 will get you 2,700 sqft new construction
- Cary: $350,000 will get you 3,400 sqft for new construction (i don't even have to go old)

so in reality you can get houses ranging in price from $180,000 to $450,000 and from 2,000 to 4,500 sqft

you can get more or less for the price in each area, but i've just posted the average that you'll find. i can post listings if you like

i've been reporting on sales prices and the like for this market for the past 8 months, i pretty much know what you can get for your $





[Edited on January 12, 2006 at 9:37 PM. Reason : for]

1/12/2006 9:15:21 PM

Belle just remember,

when you get to the wizard, you're asking for a brain.

1/12/2006 9:28:57 PM