7 Reasons to Own Your Home

by Kathryn Dunkle, Client Coordinator

1. Tax Breaks. The US Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
2. Appreciation. real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the National Association of Realtors. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years, so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Online resources:

To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculater at Ginnie Mae, Oak Wealth Mortgage Group, or Southeastern Mortgage Corporation. A good rule of thumb (for those who are living in the Triangle Area), is if you know you will be living in your next residence for three years or more you should buy. If the time period is less than three years, you may want to consider renting.

Contact an Exclusive Buyer Agent Realtor at Buyers Advantage Group Realty who can help prepare you for home ownership. We can get you started making all the right steps towards a successful home purchase while helping you save money. Call for a no obligation presentation of our services and the home buying process. Remember; having a buyers-only agent does not cost you extra.

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by Barbara Gressens, Broker/Owner

As you embark on your journey to purchase a new home, you owe it to yourself and your family to be knowledgeable about the home-buying process. After all, this is one of the biggest financial decisions you will ever make.

First and foremost among your concerns should be the selection of a real estate agent to help you navigate the process. You may not be aware of it, but there is a difference among real estate agents and your understanding of this difference can be the determining factor in the success of your home-buying experience.

Essentially, there are three types of real estate practitioners. These include: listing agents, buyer/dual agents and exclusive buyers’ agents. While all three types make every effort to represent their clients fairly, there are critical differences in the ability to demonstrate loyalty, obedience, disclosure, confidentiality, and responsibility that buyers need to know.

• Listing agents are known as traditional agents and are the most familiar type of real estate professionals. They are marketing specialists representing the interests of home sellers. You are typically aware of listing agents from their signs in yards and Open House announcements. They determine the value of the home, market the home and negotiate for the best terms and price on the seller’s behalf.
• Buyers/Dual agents are agents who work for a traditional firm representing both the buyer and seller. It is important for the buyer client to understand the limitations created by a dual agency relationship prior to entering into an agreement with that agent/agency. A dual agent must treat buyers and sellers fairly and equally; however, it may be difficult to advance the interests of both the buyer and the seller because of their competing interests. With dual agency, it is possible to lose your most important advisor and advocate. If both buyer and seller agree, in writing, a designated agency may be created for properties sold by the firm representing the buyer.
• Exclusive buyers’ agents are real estate professionals representing the buyers’ best interests in the home buying process. They determine the home’s value and formulate the negotiation strategy to get the best price and terms for the buyer, advise buyers of their best options after the home inspection and represent the buyers through the closing. Exclusive buyer agency insures no conflict of interest.

In summary:

When a buyer works with an agent whose firm lists property, the buyer might find his or her interests are compromised due to the agent’s relationship with the opposing side, the seller.

Because exclusive buyers’ agents work 100 percent on the side of the buyer, they will point out potential issues in the prospective property and even advise the buyers to not consider a property.

Buyer brokers have the buyer’s interest in mind. They act as a personal advocate, hunting for the right house and haggling with the seller’s agent. In fact, a 1992 study by a national long distance phone company found that 200 relocating workers who used buyer brokers paid an average of 91% of the offering price, whereas those using traditional brokers paid 96%. -Diversion Magazine for Physicians

Choose to work with the Buyer’s choice to be the Buyer’s voice.

Contact an Exclusive Buyer Agent REALTOR at Buyers Advantage Group Realty who can help prepare you for home ownership. We can get you started taking all the right steps towards a successful home purchase while helping you save money. Call for a no obligation presentation of our services and the home buying process. Remember, having a buyers-only-agent does not cost you extra. There is a difference and the difference is your advantage.

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by Barbara Gressens, Broker/Owner

Clients prefer to work with Buyers Advantage Group Realty not only because there is no conflict of interest as with traditional listing agents, but because the agency has refined the art of service excellence across all facets of the home-buying process.  Here is a list of some of the activities their buyers’ agents will perform for you:

• Assessing a property’s potential assets and liabilities
• Reviewing and explaining forms and agreements with you
• Providing access to the MLS and non-MLS lists of property via e-mail, fax, and the Internet
• Arranging showing for identified properties, accompanying you to all showings and critique every home and even advise you not to buy homes that are not suitable
• Researching potential properties: home builders for new construction, ownership history, as well as assessment and mortgage information
• Determining a broker’s opinion of the home’s value including a comparative market analysis
• Reviewing specifications and allowances for new construction
• Forming a specific negotiation strategy focused on loyally advancing the best interest of the buyer
• Coordinating documents between all parties
• Accompanying you to your home inspection and advise/re-negotatiate any subsequent inspection issues
• Setting up a final walk-through
• Addressing any last minute issue that may arise
• Accompanying you and represent you at the closing
• Coordinating the transfer of your new home keys
• Protecting your interests at all times
• Creating a team of professionals on your behalf to facilitate the home-buying process and coordinate between members of that team
• Providing reputable financial resources to help establish viable and accurate financing options for a comfortable home budget
• Helping all buyers understand current loan programs and options available
• Introducing buyers to experienced and licensed home inspectors who will walk a roof, explore the crawl space, and use the latest technology to evaluate the systems within the home
• Recommending less commonly performed specialty inspections, such as environmental testing, well and septic, and structural integrity tests as required
• Referring buyers to only the best “AV” rated attorneys to facilitate a seamless closing
• Becoming a reference source for clients’ future needs after the closing

To ensure that only the best professionals are recommended, Buyers Advantage Group Realty never accepts any payment for referring their clients to these professionals.  Our only motivation is for our clients to work with the very best professionals.

Is the list long? Yes, but would you want any thing less than total service commitment through every aspect of the home buying process? As exclusive agents make your next home buying experience stress free.  Before you ever begin the home-buying process, remember for the typical home it will cost you no additional money to hire your own agent.  Call Buyers Advantage Group Realty today to set up your free no obligation Presentation of the Home Buying Process.

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by Barbara Gressens, Broker Owner

When a listing firm agrees to market a property, he or she agrees to a fee with the seller, typically offering a portion of that fee as a cooperative agreement with an agent who brings in a buyer.

As an example, let’s say a home owner decides to list property with a listing agent and agrees to pay a commission to the agent when the home sells. Typically, if the listing agent also finds a buyer, he or she will receive the entire commission.

If a buyers’ agent finds a buyer, the listing agent will receive a portion of the commission with the remaining portion going to the agent who finds the buyer.

Many buyers are under the mistaken impression that since there is an agent working with t hem to buy a home; this agent must be on the side of the buyer. Unless those buyers have hired an exclusive buyers’ agent, they may have no advocate at all.

In the previous example, the listing agent typically agrees to split a portion of the listing commission, so the buyers’ agent would receive compensation through the Multiple Listing Service (MLS) agreement.

Since there is already a commission built in to nearly all home prices, doesn’t it make sense to use a portion of it to pay your agent instead of all of it to pay the seller’s agent?

The important point is that the exclusive buyers’ agent works for buyers only and never for sellers, ensuring that the buyer-client will receive 100% loyalty and service without any conflict of interest.

Thus, the advantage of working with an exclusive buyers’ agent is clear- you have an advocate who works only for you at essentially no additional cost to you! This is the advantage that working with an exclusive buyers’ agent offers you and the difference you must understand to maximize your home-buying experience.

In the Triangle, one company stands without peer as an advocate for you. Buyers Advantage Group Realty offers very experienced agents who exclusively represent buyers. They never list a home and can never disclose confidential personal and financial information about you to anyone else in the home buying process. We have access to all properties for sale including For Sale By Owners and builders. Call us for a free personalized seminar about the home buying process. An educated buyer is our best buyer!

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by Kathryn Dunkle, Client Coordinator

10 Ways to Prepare for Home Ownership

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
2. Develop your home wish list. Then, prioritize the features on your list: most haves, would very much like to have, wonderful to have but can live without, etc..
3. Select where you want to live. Compile a list of three or four areas you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans and safety.
4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 10 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs (including taxes, attorney’s fees, and transfer fees) average between two and four percent of the loan to value. There are loans available for less down payment provided by the the government. We can tell you about these programs.
5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate, and correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments. Credit scores drive the loan programs that will be available to you. Call us and we can help you get your credit scores and loan program options in order.
6. Determine your mortgage qualifications. How large of a mortgage do you qualify for? Also, explore different loan options such as 30-year or 15-year fixed mortgages or adjustable rate mortgages (ARMs) and decide what is best for you. Our experienced lenders can provide you with the options available to you.
7. Get pre-approved. Organize all of the documentation a lender will need to pre-approve you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements. We can make the pre-approval process painless for you.
8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your first home without paying a penalty for early withdrawal. Gift money from family members is another good way to help with a home purchase and can provide the giver with a tax deduction!
9. Calculate the costs of home ownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable. Before you buy, you need to understand all of your expenses. We will help you with all of this information.
10. Building a new home. Start earlier with your planning. There are more decisions to be made including all the features of your home prior to the start of construction. We can help you make all the right steps. Call and ask for our Guide to New Home Construction.

Contact an Exclusive Buyer Agent REALTOR at Buyers Advantage Group Realty who can help prepare you for home ownership. We can get started making all the right steps towards a successful home purchase while helping you save money. Call for a no obligation presentation of our services and the home buying process. Remember, having a buyers-only agent does not cost you extra.

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by Kathryn Dunkle, Client Coordinator

With the cost of gas steadily rising, it makes more sense than ever to take advantage of our local farmer’s markets. Your mother always told you to “eat your vegetables” because she knew it would be good for you. Now, buying locally grown fruits and vegetables not only helps you, but the environment and our local economy.

Local Farmer’s Markets

Raleigh State Farmers Market

1201 Agriculture Street | Raleigh, NC 27603

Phone: 919.733.7417

Open Year-Round: Yes

January-December

Monday-Saturday, 5:00am-6:00pm

Sunday, 12:00 noon

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Cary Downtown Farmers Market

Harrison Avenue & Academy Streets | Cary, NC 27511

Phone: 919.772.4906

Open Year-Round: No

April-November

Tuesday, 3:00pm-6:00pm

Saturday, 8:00am-12:30pm

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Durham Farmers Market

Morris Street | Durham, NC 27713

Phone: 919.684.6420

e-mail: elizgibbs@mindspring.com

Open Year Round: No

April-November

Saturday, 8:00am-12:00 noon

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The Market at the Factory

1839 South Main Street | Wake Forest, NC 27587

Contact: Allison Tucker | e-mail: atucker13@nc.rr.com

Open Year-Round: No

April-October

Saturday, 8:00am-12:00 noon

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The Market at North Hills

*coming soon*

For more information about real estate in North Carolina, contact Buyers Advantage Group Realty today!

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by Kathryn Dunkle, Client Coordinator

Five Common First-Time Home Buyer Mistakes

1. They don’t ask enough questions of their lenders and end up missing out on the best deal.
2. They don’t act quickly enough to make a decision and someone else buys the house.
3. They don’t find the right agent who’s willing to help them through the home buying process.
4. They don’t do enough to make their offer look appealing to a seller.
5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.

Don’t make any of these common mistakes. Contact an Exclusive Buyer Agent Realtor at Buyers Advantage Group Realty who can help guide you through the process.

Source: Real Estate Checklists and Systems, www.realestatechecklists.com.

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originally submitted by John Rygiol, Buyer’s Broker, Seal Beach, CA

Short sales are becoming more and more a part of the real estate inventory in 2008. In the first quarter of 2008, I wrote 15 short sale contracts for my clients with very little success. Of the 15 contracts written:

• one closed about a week before foreclosure
• one is in escrow due to close in a few days
• two are still waiting for responses from the lenders after two months
• two lenders chose to foreclose on the property rather than accept a short sale, and
• nine buyers gave up and moved on to other properties due to lack of response from lenders.

I have spent many hours talking with listing agents of short sale properties. The best information that I was able to glean was from those that specialize in short sale properties. Most lenders are very short handed with negotiators handling 200 to 400 files each, and files are handled on a “put out the biggest fire first” basis. Most files are not really reviewed by the negotiators until 7 to 15 days before actual foreclosure is to take place. That is why you have to wait anywhere from 8 to 16 weeks before you get an answer.

Some things that I make buyers aware of on Short Sales: The home is still owned by the Seller and that is who we are making our offer to. Once we negotiate the contract with the Seller, it is then forwarded to the lender or lenders that have the loan/loans on the property for approval.

The lender may counter offer if they feel that the price is too low. Depending on where they are in the process, this may take from 2 to 4 months.

YOU ARE GOING TO HAVE TO BE PATIENT. In our offer, I have put in a time period of 2 months, but needless to say, that may have to be extended. I have also put in our offer that they MAY NOT continue to offer the property to others, but this may be countered back to us. The time periods for inspections and closing shall start the day after the Seller delivers to Buyer a written notice of Short Sale Lenders’ consent. It is at this time that your initial deposit is deposited in escrow. The lenders will not agree to pay anything.

Therefore, in our offer:

• The property is being sold “as is”. Any repairs are your responsibility (you still have the right for a home inspection to see what your costs will be and decide if you want to go through with the transaction).
• We have not asked for a Termite Clearance (we still have the right to have a termite inspection done and see if the cost is not too high for you).
• You will pay for your own Natural Hazard Zone Disclosure Report. ($90)
• You will pay for your own one year home warranty. ($260-$400)

Here is an email that I send to the listing agent before writing an offer:

I am preparing to write an offer on this home. I understand that it is a short sale and would like to get the following questions answered before I write the offer and present it to you.

• Are there any other offers on the home at this time?
• Who is/are the lender/lenders on the home?
• Has a notice of default been filed on the property?
• Has the proof of hardship package been turned into the lender?
• Do you have a “real person” (Negotiator) assigned to the file that you can talk to?
• Have any offers been turned into the Negotiator?
• Have any offers been countered or accepted by the Negotiator?
• How close to foreclosure is this property?

Thank you in advance for your answers to these questions. As soon as I receive them, I will prepare the offer, have my clients sign it and make an appointment with you to review the offer with you.

Last but not least: Most Short Sales will have several offers on them before the Seller accepts the best on that is sent to the lender. In my contract, I put in: Upon Acceptance of this offer, Seller MAY NOT continue to market the property to others.

I hope this assists you in the circumstance that your Buyer wishes to make an offer on a short sale property.

Visit the National Association of Exclusive Buyer Agents (NAEBA) for more information about selling your home.

For more information about Raleigh real estate, contact Buyers Advantage Group Realty today!

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It’s easy to see why Parkwood is one of the Triangle’s top selling neighborhoods. This southwest Durham neighborhood continues to be desirable because it offers great home values, an excellent location and great amenities.

A Little Background

The Parkwood community began in the early 1960s. There are several styles of homes found within Parkwood, the majority consisting of hard-to-find, one-story ranch-style homes. Whether you are looking for a fixer-upper or a totally renovated home, you will be sure to find it here. The price point is ideal for first time home buyers, retirees and real estate investors.

A Great Location

Ideally situated between Chapel Hill and RTP, Parkwood is the perfect place for those who want a quick commute. Conveniently located near one of the area’s premier retail developments, Southpoint Mall, homeowners truly can “Have it all!”

Parkwood Residents enjoy a sense of privacy in this peaceful neighborhood that is simply not to be found in newer home communities. Lot sizes are generous and generally range from .33 to .5 acres. Mature trees, a community lake, picnic area, branch library, Parkwood Elementary School, community pool, ballfield and a convenient neighborhood store all contribute to Parkwood’s appeal.

Here are Some Quick Stats on homes in the Parkwood area:

• Average Sold Price= $143,398
• Average Size= 1,585 sq ft
• Average Days on Market= 78

To find out even more information, contact a qualified buyers agent at Buyers Advantage Group Realty today!

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by Kathryn Dunkle, Client Coordinator

Those of us who live and work in the “Triangle” have come to use the term generally as a geographical point of reference to the Research Triangle Park to describe the overall area. We at Buyers Advantage Group Realty talk daily with people wanting to relocate here. Having received national media accolades, this area has and continues to receive praise from trusted sources such as Money, Forbes and Time Magazine. More often than not, these folks tell us that they want to live in the “Triangle”. ONe of the first things we do is educate these prospective residents about the area.

The Research Triangle Park is the largest planned research development community in America, and it is central to our area. Because of the national and international reputation of the Research Triangle Park, the cities and towns that surround it have experienced tremendous growth. Yet, each of these enclaves has managed to retain its own unique personality. Whatever you are looking for, chances are good you will find it here. When you want to learn more about the Triangle, why not let the most experienced exclusive buyer agent firm in the Triangle answer your questions?

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