7 Rules for Smart Home Buyers - Rule #3

Rule 3 of "7 Rules for Smart Home Buyers" from the top realtor in Raleigh, NC - Marti Hampton, Remax One Realty.

Raleigh Real Estate Answers – why is Raleigh Real Estate a good investment?

Raleigh Real Estate Answers – I am thinking of investing in Raleigh residential real estate, what are some more of the basics I need to know.

Today, I will answer a key question that you might be asking, why is Raleigh Real Estate a good investment? The answer really will be true of investing in real estate anywhere.
 

A real estate investor who purchases can earn a return or make money on his or her investment in different ways. The first way is cash flow. This is where you have “extra money” at the end of the year after paying for all operating expenses including any mortgage payments, taxes, insurance, repairs, etc.

The second way a Raleigh real estate investor can earn a return on their money is through equity income. This is also known as principal reduction. Sometimes an investor will not purchase real estate using all cash. They will make the purchase using a mortgage. Often the down payment requirements for an investment loan are higher as well as the interest rate on that loan, but it is still using other people’s money to purchase the investment property. This is known as leverage.

Usually every time a payment on the mortgage is made a certain amount of money paid is applied against the original loan amount (principle). This reduces the balance that is owed. Eventually over the life of the loan, the equity in the home builds until the loan is paid off and no more is owed. In a way it is like putting money in the bank each month, but in the case of rental real estate, someone else is paying the mortgage payment for you. When it comes time to sell the property, the investor owes less and receives the difference at closing.

The third way a real estate investor earns a return is through appreciation. Since the mortgage and housing meltdown several years ago, many areas within the Triangle have not been appreciating. In fact, home sale prices have declined, but this trend is not going to last forever. This is why it is important to recognize that investing in real estate is a long term investment. As an example, if you purchased a home in Raleigh area prior to 2003, it probably can be sold at a profit.

The fourth means whereby real estate investing can produce a monetary return is through tax savings. There are different types of real estate investments that can produce tax free returns. Some of these can produce cash and others produce a “loss” which can be written off against other income.

Watch for more to come regarding investing in Raleigh real estate in future blogs. Or give the Marti Hampton team a call for answers to your questions.

Raleigh Real Estate Answers – Why should I consider working with a Raleigh REALTOR® for Selling or Buying a Home in Raleigh, North Carolina?

Raleigh Real Estate Answers – Why should I consider working with a Raleigh REALTOR® for Selling or Buying a Home in Raleigh, North Carolina?

When one begins to consider the buying or selling of a home in the Raleigh, NC area of North Carolina, one of the first decisions that you will have to make is whether or not to utilize the services of a REALTOR®. Some people decide to try to sell their home without representation or FSBO (For Sale by Owner) or they decide to use a limited service licensed broker.

Did you know that only about half of all those who practice real estate are Realtors®? Realtors® agree to follow a very stringent code of ethics.

Everyone who is a member of the National Association of Realtors® makes a commitment to the Public to provide honest and ethical treatment to all parties involved in the home buying and selling process. Realtors® are held accountable for their ethical behavior.


Here are a few of the basic principles of the National Association of Realtors:


- Protect and promote your clients’ interests, but be honest with all parties.
- Avoid exaggeration, misrepresentation, and concealment of pertinent facts. Do not reveal facts that are   confidential or under the scope of your agency relationship.
- Disclose present or contemplated interest in any property to all parties.
- Avoid side deals without your client’s informed consent.
- Accept compensation from only one party, except with full disclosure and informed consent.


Another reason for Raleigh home sellers to hire a Realtor® is that the price that a seller obtains for his home when listed by a REALTOR® is usually 16% higher than those who don’t.


The purchase or sale of a Raleigh, NC home involves one of the largest investment decisions that a person will ever make. Using the service of a REALTOR® will enhance the Raleigh home buying or selling experience – give the Marti Hampton team a call and we’ll be glad to explain more.


For more information click the follow the following: Why use a REALTOR

Raleigh Real Estate Answers – Does a Raleigh home buyer really need a home inspection?

Raleigh Real Estate Answers – Does a Raleigh home buyer really need a home inspection?

A poll done earlier this year by Harris Interactive on behalf of the American Society of Home Inspectors (ASHI) found that 88 percent of all home buyers across the U.S. felt a home inspection was a necessity and not just a luxury.

It is not surprising that most homebuyers were glad that they had a home inspection performed. According to the BusinessWire press release of February 22, 2011, just under ¾ of the homeowners surveyed said that the home inspection they had before buying their home helped them avoid potential problems with the home.

In addition, 64 percent said that over the long run, they saved a lot of money as a result of their home inspection.

Most of the time, a home inspector is going to find something wrong in even the best maintained homes during the inspection process.

What’s included in a home inspection?

A home inspection is an objective visual examination of the physical structure and systems of a house. According to ASHI the home inspection will examine “the condition of the home’s heating system; central air conditioning system (temperature permitting); interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement and structural components.” Safety will be the first concern for the items that are being inspected and then the items that are in need of repair will be addressed.

And in this strong home buyers market, homebuyers often have high expectations in regards to the condition of the home they are about to purchase. For this reason, it can be helpful for a Raleigh home seller to have a home inspection performed prior to placing it on the market.

Contact the Marti Hampton team for a list of qualified home inspectors that work in the Raleigh, NC area.

7 Rules for Smart Home Buyers- Rule 1

North Carolina real estate specialist, Marti Hampton with Re/Max One Realty, shows you how to find the best home for sale in Raleigh, NC.

Part I




Part II

7 rules for Smart Home Buyers - Know The Rules

Introduction to "7 Rules for Smart Home buyers" - Raleigh NC realtor, Marti Hampton of Re/Max One Relaty shows finding Raleigh real estate to buy is easy, once you know the rules.

Intro to 7 Rules for Smart Home Buyers

To find the perfect Raleigh home - review the 7 Rules for Smart Home Buyers from Raleigh realtor, Marti Hampton, of Remax One Realty in Raleigh, NC.

Raleigh Real Estate Answers – Are you purchasing a home in the Raleigh, North Carolina area? Here’s some information about Radon.

Raleigh Real Estate Answers – Are you purchasing a home in the Raleigh, North Carolina area? Here’s some information about Radon.

What is Radon?

Radon is a colorless and odorless radioactive gas that comes from the natural breakdown or decay of uranium in soil, rock and water. Radon can be found all over the U.S. You cannot see, smell, or taste radon. It can get into any type of building through the ground or cracks in the foundations of homes, offices, and schools. As it enters the home and mixes with the air you breathe, it can result in a high indoor radon level. Radon can also enter your home through well water. The Surgeon General has warned that radon is the second leading cause of lung cancer in the United States today.

The EPA estimates that nearly 1 out of every 15 homes in the United States has an elevated radon level.

Should you test for Radon in a Raleigh, NC home?

Yes. It is the only way that you can know if your family is at risk to exposure to radon. The EPA recommends that you test all homes below the third floor. What is the acceptable level for Radon? 4 pCi/L or more is considered to be a level of risk.

Can you fix a home that is found to contain radon?

Yes. Radon reduction systems work and they can be reasonable in price. Some radon reduction systems can reduce radon levels in your home by up to 99%. Because of this even very high levels can be reduced to acceptable levels.

Here is a link to the EPA Radon Guide in PDF format: Home Buyer’s and Seller’s Guide to Radon

Want to test your Raleigh, NC home?

Contact the Marti Hampton Team for information on how to get a radon test performed.

You might also want to visit the State of NC website: http://www.ncradon.org/

Looking to buy Raleigh North Carolina residential real estate?

Click here: Search Raleigh Residential Real Estate

Raleigh Real Estate Answers – Should a Raleigh home buyer purchase a home warranty?

Raleigh Real Estate Answers – Should a Raleigh home buyer purchase a home warranty?

For most people that are buying North Carolina real estate, whether it is a single family Raleigh home, a townhome or even a condo, the home purchase is one of the biggest investments they will make. Thus it makes sense to protect that investment and most people do this by buying homeowners insurance to cover losses from fire, severe weather, etc.

Did you know that there are items that are not covered by the home owner’s hazard insurance policy? These include the major systems and appliances in the home and an unexpected breakdown can present a challenge to the budget of most home owners. A home warranty is a service contract that usually can be renewed annually that covers the repair or even replacement of the home’s systems and appliances.

Recently someone purchasing Raleigh real estate asked me, “I am planning on having a home inspection performed; do I still need a home warranty?”

According to the statistics in the 2004 Marshall & Swift report “Home Repair and Remodeling”, there is a 68% chance that a major system or appliance will break down in the first year after a home purchase. It is important to have a home inspection performed, but the home inspection does not provide insurance or a guarantee on any of the systems or equipment. A home warranty can provide an extra level of comfort to the homebuyer and help avoid the aggravation of home repair.

What types of things are covered by a home warranty? Since there are different levels of coverage between home warranty companies and most offer different amounts of coverage, it is important to obtain information from a number of companies to get the best deal. Most home warranty plans cover things like air conditioning and heating systems, plumbing and electrical systems, the hot water heater, the range, the garbage disposal, ceiling fans, and the dishwasher. Most plans can be upgraded to include the refrigerator, washer and dryer, garage door opener, and even pools and spas.

As always, feel free to contact the Marti Hampton team for answers to your questions on home warranties or other Raleigh real estate questions.

How to find a good home

Marti Hampton of Re/Max One Realty in Raleigh, NC real estate answers the question, "With so many homes for sale in NC, how do you find a good value?" Marti gives her advice on what home buyers should be seeking in the Raleigh and Cary real estate markets.