Raleigh-Durham Real Estate Blog

Home Size Continues to Decline; Buyers Increasingly Opt for Single-Story Homes

Current housing stats may surprise you. In years past, “ bigger is better” was the mantra of many homebuyers. Quantity outweighed quality. These trends have turned a corner and the average home size is decreasing. So are the preferences homes buyers are looking at, including # floors, interior amenities and siding preferences (who would have thought vinyl would replace wood and hardiplank as siding preferences?). Buyers looking for a low-maintenance lifestyle are looking to low-maintenance building techniques and materials. The numbers don’t lie. Read more here.

There is a new Fannie Mae requirement that will require borrowers to have a new credit report pulled 1 day prior to closing. This is going to be a HUGE change for buyers that marginally qualify. If any new inquiries or account appear on the credit report, the buyer might not qualify for the loan. So, it is very important that you advise your buyers not obtain any more new debt between application and closing. It is also imperative that your lender advises your buyer on things to do to keep their scores up. If a score drops the day before closing, it could mean that your buyer has a higher interest rate or may be disqualified for the loan. These new rules can make or break your deal If you’re proactive and educate your buyers up front, you shouldn’t have any issues with this change.

STEALS OF THE WEEK:

Residential rental property:

44 Redbud Court, Durham 27713. Not yet on the market! Wholesale deal with approved shortsale. Neighboring homes on the market for over 20k more! recently sold comps range from 97k to 120k. Equity + cashflow for ready investors.. Long term tenant in place at $895/mo with year left on lease. Only $80,000 in desirable Parkwood location. Potential for $325+ cashflow, 27% cash-on-cash return and 9%+ caprate. Minutes to Southpointe Mall and Research Triangle Park. Those of you who are familiar with Parkwood know that this one won’t last long enough to hit the open market. Call today for details

Commercial property:

945 E. Main. 1900+ sq ft (960 main level heated sq ft and 960 unfinished in basement and ready for expansion). Only $100,500. Located next to Goldenbelt, just east of Downtown Durham. Ideal for retail or office. On busline. New roof in 2010! An ideal space for a starting business or for a current businessowner looking for space to expand. Seller will finance for qualified buyer and sufficient downpayment, which makes it much more affordable than renting a comparable space.

Housing shortage forthcoming?

Yesterday, I attended a meeting that focused on the sharp decrease over the past 3 yers in new construction in many metro areas. This decrease is in distinct opposition to the increase in family size and number of households in many areas. Based on these factors, some economists are predicting a housing shortage in the next 3 years. What does that mean to you? Investors and buyers who leverage today’s great pricing and low mortgage rates will be in a better position when and if the market turns in for the better. My advice: take these predictions with a grain of salt and be sure that any purchase that you make today is solid based on TODAY’S numbers. If you do, you’ll be in a better position for whatever the market has in store.

Strategies for Getting Shortsales Approved

http://www.nuwireinvestor.com/articles/negotiating-a-short-sale-55364.aspx

Senate votes to extend home tax credit deadline

http://www.reuters.com/article/idUSTRE65F5U320100616

Also, be on the lookout for information on our upcoming webinar series. Topics will include “Rehabbing Basics”, “New Construction for Investors”, “Analyzing the Numbers”, “Where Do I Start?” (for new investors), “Historic Restoration Tax Credits”, “Skyrocket Your Retirement Accounts with Real Estate Investing”, “Advanced Topics”, and many more. We look forward to providing even more ammunition for your investing endeavors in 2010!

Happy Investing!