Ask the Raleigh Real Estate Expert Archives

September 18, 2019September 18, 2019

6 Key Real Estate Graphs that You Need to See

No matter what capacity you’re entering the Triangle area real estate market in—whether it’s buying, selling, or investing—it’s crucial to be prepared. By knowing all of the latest numbers on mortgage rates, median sales price, and average days on the market, you can gain a major advantage over your competition!

Since we want to ensure that each and every one of our clients is well-equipped to reach their goals, we wanted to give you a quick snapshot at all of the trends you need to know.

Here are the top 6 real estate graphs that you should study up on.

The Strength of the Current Market

Key takeaways:

Keeping an eye on the current status of the housing market is one of the best ways to make powerful and confident decisions when buying or selling a home.
Mortgage rates remaining near historic lows and houses selling in an average of only 29 days are just two key elements driving the strength of today’s market.
With the national data shown here, make sure to also determine what’s happening in your local market so you are fully informed when you’re ready to make your next move.

Navigate the Market with Linda Craft & Team REALTORS®

At Linda Craft & Team REALTORS®, we know the ins and outs of the local and national real estate market—and we’re more than happy to share that knowledge with you. Whether you’re buying and looking for a little help or selling and hoping for top dollar, our track record of satisfied clients shows that we have what it takes to lead you to success.

Ready to get started? Feel free to give us a call!

September 13, 2019September 16, 2019

Ace Your Real Estate Experience: A+ Reasons to Hire an Agent

In a lot of ways, buying and selling a home is like a test. You want to make sure you study up on all of the materials and have the right supplies before you get started.

But maybe most importantly, you want to make sure you have a teacher that can guide you through the material in a way that’s easy to understand and sets you up for success.

If you’re on the fence about hiring an agent to help you buy or sell your home, here are a few ways we can help you ace the process.

Decode Contracts

During the real estate journey, you’re going to have to deal with a lot of paperwork. Sometimes it’ll be easy to understand, but other times, all of that jargon will probably look like a foreign language—especially if it’s your first time.

We’ll make sure you’ll know exactly what the papers say, why they’re necessary, and what they mean for you.

Breeze through Negotiations

If you aren’t used to negotiating, then this step in buying or selling a home can be tough to handle—especially since you’ll be emotionally invested in the process.

When you work with an experienced realtor, we’ll act as a buffer between you and the other party. Not only will we work to get the best deal possible for your wants and needs, but we’ll also provide a level-headed perspective.

Understand Pricing

If you’re selling your home, then finding the right price is the key to success. Price too low, and you won’t maximize your investment. Price too high, and you’ll miss out on buyers—and maybe even have to bring your price down.

Luckily, we can make sure you have the right price from the get-go. With our home valuation, we’ll take into account all of the local and national real estate trends, as well as any updates you’ve made to your property.

When it comes to buying, we can also help you figure out whether you’re getting a fair price for your purchase. The last thing you want to do is spend your hard-earned money on a home that isn’t worth it!

Translate Market Conditions

Did you know we’re in a period of nearly unprecedented drops in mortgage rates? That home prices have been steadily ticking up this year? That more and more millennial buyers are entering the market?

We know all about the intricate details that make up the market conditions. These details can help decide everything from how high you can price your home to how long it’ll sit on the market. Before you even list or start searching, we can breakdown what the current conditions mean for your experience.

Benefit from Experience

Above all, we know the ins and outs of buying and selling. We’ve been around the block more than a few times—after all, our team does have hundreds of years of combined experience in real estate—so we know exactly what it takes to be successful.

You might have other options when it comes to real estate professionals in the Triangle, but if you get to know a little more about our team, you’ll start to understand why our clients swear by us.

Don’t Flunk Your Real Estate Journey

If real estate is like a test, then we think we can help you ace it. At Linda Craft & Team REALTORS®, we have years of experience with buying and selling homes in Raleigh—meaning we know exactly how to handle whatever the market throws at us.

Take some time to explore our resources, whether you’re buying, selling, or just exploring the area, and give us a call when you’d like to get started!

April 18, 2019April 15, 2019

No, We are Not Headed Towards a Housing Crash: Here’s Why

In the past few months, you may have heard whisperings about an incoming housing market crash. We’re here to put you at ease: we are not headed towards a crash!

A lot of this concern comes from average home prices slowing in growth across the country. We wrote a blog about it last week, but this is not a bad thing! It just means the market is shifting back towards normal.

The Three Most Important Factors

A luxury home interior with a fireplace.

Today’s market is wildly different than the pre-crash housing market of the late 2000s. We’re going to show you why and how using three important metrics that measure the Raleigh real estate market.

Home Prices

Beginning in 2008, average home prices in the U.S. dropped almost 29% over a four year period. That’s drastic, and it’s what spurred the housing market crash!

Today’s average home prices are not depreciating. It’s just that the level of appreciation is slowing down. Over the last year, homes have increased by more than 4%.

While this is less than the 6-7% prices appreciated over years prior, it in no way indicates that we’re headed towards a crash!

Mortgage Standards

A white table with a checkbook and small stack of money.

In the current real estate market, it’s considered easier to get a loan from the bank than in years prior. Many are concerned that these “lenient standards” will contribute to a housing crash.

However, the Urban Institute’s Housing Finance Policy Center released a quarterly index that details the percentage of home purchase loans that are likely to default. When this rate is very low, it indicates that lenders are unwilling to tolerate defaults. This makes it much harder to get a loan.

When that percentage is higher, it indicates that lenders are more lenient so it is easier to get a loan.

In another report called the Housing Credit Availability Index, the Urban Institute also revealed that there is still ample space to expand the housing market credit box. Even if the current risk of default was twice what it currently is, it would still be well within the pre-crisis standard of 12.5%.

Foreclosure Rates

In the last 10 years, foreclosures and short sales have made up 35% of all home sales. That’s huge!

At the end of the fourth quarter of 2018, the percentage of loans in the foreclosure process was just 0.95%. It hasn’t been that low since 1996!

Ready to Explore the Raleigh Real Estate Market?

Linda Craft & Team REALTORS® is ready to help. Give us a call today to learn more about the best way to buy a home in the greater Raleigh market.

Rely on our expertise, our extensive resources, and our proven track record with buying homes in Raleigh. We’ll guide you towards a successful outcome in the Triangle, guaranteed.

February 26, 2019

A Quick Study Guide on What “Affordability” Means in Raleigh Real Estate

When we talk about “affordability,” a lot of definitions may come to mind. For real estate specifically, affordability is something of a hot topic.

While it is true that buying a home is less affordable today than it was at any other time in the past decade, that has a lot to do with the real estate market crash of 2008.

If you’ve been in the real estate game for a while, you probably remember the flood of distressed properties that hit the market at this time. Due to the poor state of the economy, foreclosed and short sale homes were going for a huge discount. This rush of distressed homes actually damaged the value of other homes within a neighborhood.

Lucky for everyone involved in the real estate industry, things have since changed!

The Market Has Changed Since Then

Over the past decade or so, the market has recovered and prices have gone up right along with it. This isn’t a bad thing! A strong economy is good for everybody, especially those trying to sell their home for what it’s worth in the Triangle.

As such, both home prices and mortgage rates have increased. To make the best possible decision in the Raleigh real estate market, it’s important to have plenty of resources to rely on.

So Mortgage Rates Have Shifted

When most buyers think of a home’s “affordability” they’re picturing two things in particular: the listing price of the home and the mortgage rate they’ll have to pay.

According to a CoreLogic report written by Andrew Lepage in late January, the “typical mortgage payment is a good proxy for affordability because it shows the monthly amount that a borrower would have to qualify for to get a mortgage to buy the median-priced U.S. home…”

While mortgage rates are slowly increasing, they are nowhere near the gargantuan rates of the 2006 housing boom (think an average monthly payment of $1,275…)

By the end of 2019, experts have projected the typical monthly mortgage payment to be about $963.

What Does That Mean for Buyers and Sellers?

Whether you’re thinking of buying or selling a home in Raleigh, please know that this is one of the most advantageous times to invest in real estate!

At Linda Craft & Team REALTORS®, we have the market expertise necessary to help you make a highly valuable transaction in this area. Please give us a call today to learn more about your Raleigh real estate options.

February 5, 2019

How Going “FSBO” Costs You More Money in the Long Run

If you’re selling your Raleigh home, chances are you’re trying to maximize your profits. It’s normal for homeowners to look for ways to sell their home for the most amount of money possible, while limiting all of their costs.

However, time and time again, I see new sellers opting to list their home as “FSBO” in order to save a few dollars. Listing your home as “FSBO” means going “For Sale By Owner,” or choosing to sell your home without hiring a real estate agent.

While listing as “FSBO” means not having to pay an agent’s commission, it has a lot of hidden costs and pitfalls and will actually cost you more money in the long run!

An Agent is a Professional in the Real Estate Industry

Did you know that a home sold with an agent typically nets 6% more than one sold as “FSBO”?

That’s because an agent knows the real estate market really well—it’s their job after all! They’re an expert in their field, which means they know all the tips and tricks for selling homes.

In addition, it’s their job to stay on top of market trends, housing inventory, and sales prices. An agent knows how to price your home for the market you’re selling in.

Sure, you could rely on an automatic home value estimator to price your home, but those services are famous for being highly inaccurate.

All the “Hidden Work” Agents Do

If you’re choosing to sell your home without an agent, be prepared for a lot of work. After all, when you work with an agent to sell your home, you have them by your side to negotiate on your behalf.

As you sell your home, you’ll probably have to negotiate with:

The Buyer
The Buyer’s Agent
The Buyer’s Bank
The Appraiser
The Inspection Company
The Title Company

And an agent’s work doesn’t stop there! Your real estate agent is your guide to the world of real estate. They’ll be able to provide you with home-selling resources, advice on how to stage your home, an effective marketing strategy, and emotional support during a busy time.

Agents Know How to Reach Buyers

More than 50% of buyers find their home on the Internet. As such, if you’re going to sell your home you need to have a thorough online presence for your home.

A professional real estate agent is more likely to have a comprehensive Internet marketing strategy, as well as a top-tier website where buyers can search for homes.

Selling Your Raleigh Home? Let’s Talk

Here at Linda Craft & Team REALTORS®, we want you to make the most amount of money possible when you sell your home. That’s why we offer an array of complimentary home-selling resources, and a specialized marketing plan designed to give your property maximum exposure.

Don’t just take our word for it! Check out our home-selling track record, and see what our clients have to say. There’s a reason we’re the Triangle’s #1 real estate team: we sell homes quickly and for more money, and we’ll help you achieve all of your real estate goals.

Interested in learning more? Give us a call today to get started.

January 31, 2019February 1, 2019

The Pros & Cons of a Buyer’s Letter: Standing Out in a Busy Market

Imagine, after weeks of searching, that you’ve finally found your dream home. It’s in the perfect location with the right features and exactly the amount of space you need. But after requesting more information, your agent informs you that there are already several offers made on the house. How do you stand out in a busy market and snag your dream home?

When buyers are looking to make a lasting impression on sellers, they often opt to submit a letter to the seller. In fact, a recent study found that buyers who submitted letters were 9% more likely to have their offer accepted.

A Buyer’s Letter can work both with you and against you, so it’s important to understand what they are and when you should use one.

What is a Buyer’s Letter?

A Buyer’s Letter is pretty much what it sounds like — a letter written by the buyer for the seller in order to stand out in a busy market. The letter is your chance to make a case for why you should get the home over other buyers.

Many people opt to write about how they envision their lives in the home, how well they would take care of it, how much owning this specific home would mean to them, and similar sentiments.

You might also use this space to talk yourself up, bringing up steady finances, your down payment, and job security — things geared towards making the seller confident in choosing you.

Advantages of a Buyer’s Letter

A Buyer’s Letter sets you apart from the crowd and makes you more than just an offer on a sheet of paper — it allows you to connect with the seller on a personal level. In a constantly growing and changing market, being able to stand out or connect puts you a big step ahead of other buyers.

Is the home close to a golf course? Does the seller have bikes in their garage? Are there signs of pets in the home? If you notice you have common interests, including them in the Buyer’s Letter can elevate your standing.

When you choose to forgo a Buyer’s Letter, you miss out on the chance to advocate for yourself, which can go a long way in the seller’s final decision.

Disadvantages of a Buyer’s Letter

While there are plenty of pros to using a Buyer’s Letter, there are also pitfalls to consider. Making your case is great, but it does give the seller leverage. If you really love the house as much as you say, then what’s to stop the seller from raising the asking price?

Maybe the seller accepts your offer, and you move to the home inspection stage. If issues turn up, then the seller might refuse to make costly repairs, assuming that you’ll buy the house no matter what.

Another unexpected con of a buyer’s letter? It can be tricky for sellers to navigate around discrimination issues. If a seller picks a buyer of a certain race, religion, gender, or family status instead of another, they could face backlash. Be aware of this when writing your letter so as to not put the seller in an uncomfortable position.

Need Help Standing Out?

If you’re kicking off the home-buying process and need help standing out, we’ve got you covered. When you work with Linda Craft & Team REALTORS®, you’re enlisting the help of the Triangle’s #1 real estate team. We know exactly how to help you purchase the home of your dreams.

Get in touch with us today, and we’ll help you secure your dream home, and answer any and all of your questions in the process.

January 28, 2019January 28, 2019

Want to Build Your Wealth? It’s Time to Buy a Home in Raleigh

The most surefire way to begin building your wealth in the NC Triangle? Become a homeowner.

Buying a home essentially forces you to build wealth. To purchase a home, you have to apply for a mortgage loan to pay for it. Then, every month, you pay off a percentage of that mortgage. Each mortgage payment brings you a little bit closer to fully owning the home on your own, and makes your equity a little big bigger. To be honest, your home is really just one big savings account.

So, owning a home and paying your mortgage every month builds your wealth for the long run.

Owning a Home Leads to Financial Security

According to many housing experts in the real estate industry, buying a home before the age of 35 leads to being better prepared for retirement at age 60.

If you’re a millennial in the greater Raleigh area, you may believe that you can’t afford to buy a home because of the massive down payment or the high mortgage interest rates. However, that’s not actually true!

If you can afford to pay rent every month, you can afford to buy a home. Plus, with so many different mortgage options available, it’s not always necessary to pay a huge 20% down payment!

Navigate the Triangle Real Estate Market

It’s never too early to begin planning for your retirement. And, the sooner you begin saving, the better off you will be when it’s finally time to retire!

It’s no secret that housing wealth is the largest single source of wealth currently available. Plus, the emotional benefits that come from buying a home are on the same level as the financial benefits!

If you’re interested in building your wealth by buying a home in the greater Raleigh area, then it’s time to contact Linda Craft & Team REALTORS®.

You Deserve a Successful Real Estate Transaction

When you choose to work with Linda Craft & Team REALTORS®, you’re enlisting the help of an all-star team that will stop at nothing to make sure you achieve success in the Triangle real estate market.

As the Triangle’s #1 Ranked Real Estate Team, we know exactly how to help our clients find the perfect home. Give us a call today to explore your real estate options in the greater Raleigh area!

January 25, 2019January 24, 2019

When’s the Best Time to List Your Home? NOW!

If selling your home is at the top of your New Years Resolutions, then it’s time to get started. Although the market is thought to “slow down” during the cold winter months, that doesn’t mean it’s not an advantageous time to sell your home.

In fact, now is the best time to sell your Raleigh home! Want to know why? Because homes are highly in demand, and inventory is at an all time low.

It’s a Seller’s Market

While the number of buyers has decreased over the past few months, inventory has been at an all-time low since November of 2018. Truthfully, there just isn’t enough inventory to satisfy what buyer demand there is.

For the last five months, the number of homes for sale has decreased substantially.

According to the National Association of Realtors, the number of homes for sale in the country decreased by about 190,000 from June to November of last year. While demand for homes has decreased slightly over the years, it still far exceeds the current inventory available.

What’s the Bottom Line?

Now is the time to sell your home! Across the board, the best time to sell your home is when there’s less competition. In a market as competitive as the Triangle, where motivated buyers far outweigh current sellers, now is an incredible time to sell your home!

Selling your home during a “seller’s market” typically guarantees you a better price for your home, fewer hassles in the transaction, and a stress-free selling experience.

Ready to Sell Your Raleigh Home?

Linda Craft & Team REALTORS® are ready to help. We offer a number of different home-selling programs, designed to meet your unique needs as a seller.

Want to receive an instant offer on your Raleigh home? We can help with that, too. You can also research the market, see what homes are selling for in your neighborhood, and get specific home staging tips to make your home sell even faster.

January 21, 2019January 21, 2019

Market Update: Are Low Interest Rates Going to Stick Around?

If you’ve been eyeing the Triangle real estate market for a while, you’ve probably noticed interest rates rising in 2018. As we enter the first quarter of the new year, it’s important to stay on top of changing mortgage interest rates.

Right now, interest rates for mortgages in the United States are on a downward trend. As 2019 began, the interest rate for a 30-year fixed-rate mortgage dropped to just 4.51%. In addition, the growth of home prices are expected to slow.

So, what does it all mean?

It’s a Great Time to Buy a Home in Raleigh

If interest rates remain low, now is a wonderful time to apply for a mortgage and buy a home in Raleigh! As interest rates increased in 2018, many homebuyers decided to pause their search for a new home.

But, if you’re in the Raleigh real estate market, now is the time to pick the search back up! As we continue through 2019, the inventory of homes for sale in Raleigh is expected to pick back up, while interest rates are expected to grow slowly from 4.77 to about 4.93 by the end of the year.

How Much Will Interest Rates Increase in 2019?

Organizations like the Mortgage Bankers Association, Fannie Mae, and the National Association of Realtors project that interest rates will increase in 2019. However, they will not increase as rapidly or dramatically as they did in 2018.

The bottom line: if you’ve been hesitating on buying a home in Raleigh, it’s time to dive into the real estate market. Low interest rates, a growing inventory, and the slow growth of home prices have created ideal conditions for home buyers in Raleigh!

Ready to Find the Perfect Home in Raleigh?

Linda Craft & Team REALTORS® are here to help. With a combined 30 years of real estate experience in the Triangle, our team possesses the unique expertise necessary for making a highly successful home purchase.

We’re the #1 Triangle Real Estate Team for a reason. We offer customized services, in-depth real estate resources, and extensive real estate expertise to our Raleigh homebuyers. If you’re ready to expand your home search in Raleigh, then it’s time to give Linda Craft & Team REALTORS® a call.

December 19, 2018December 18, 2018

Still Renting Your Home? There Are Better Options Available!

2018 is quickly drawing to a close, which means it’s time to start planning for the new year. If you’re still renting a home in the Triangle, please know that you have better options available!

Have you been dreaming of becoming a Triangle homeowner? You’re not alone! This is a wonderful area to invest in, and an ideal time to buy a home. Home values in the Triangle are expected to increase over the coming years. This makes now the time to act!

Take a look at our complimentary home-buying tools to get an idea of your options in the Triangle. Oftentimes, it’s less expensive to pay a mortgage every month than it is to keep up with annual rent increases, and all the other fees associated with leasing!

What Do You Dislike About Renting?

According to a 2018 Bank of America Homebuyer Insights Report, 75% of millennial renters plan on buying a home in the next 5 years, and 38% are planning to buy in the next 2 years!

Those surveyed were also asked what they disliked about renting. 52% said rising rental costs were their biggest reason. Other factors included “not building equity,” “feeling like I’m paying my landlord’s mortgage,” and “not being able to have pets.”

There’s plenty of merit to that concern, as the median asking rent has risen steadily every year since the 1980s.

Common Misconceptions About Buying a Home

If you plan out your budget every month, you’ve probably heard of this rule “don’t spend more than 30% of your monthly income on housing expenses.” Did you know that almost half of all renters surveyed in the Bank of America Report spend much more than that on their monthly rent?

When asked what was stopping them from buying a home, many responded that they “weren’t able to save the 20% down payment.”

However, this is one of the biggest misconceptions about buying a home! It is possible to buy a home without putting 20% down.

Ready to Explore Your Triangle Home Buying Options?

Allow our team of experienced Triangle real estate agents to guide you through the process. For more information about what kind of homes are available in the Triangle, and what your options are as a buyer, please get in touch.

As the #1 Real Estate Team in the Triangle, Linda Craft & Team, REALTORS® are fully prepared to find you the home of your dreams and negotiate an excellent price on your behalf.