Museums

History buffs love Raleigh as it has 6 exciting venues to learn about culture and history: the North Carolina Museum of Art, the North Carolina Museum of Natural Sciences, the North Carolina Museum of History, Ray Price Legends of Harley Drag Race Museum, Raleigh City Museum, and the North Carolina Sports Hall of Fame—OK technically not a museum but we couldn’t resist putting it on the list.

Learning Centers

One of the premier learning and exploration centers in the country lies in the heart of Raleigh, Exploris. Exploris offers interactive learning activities for the young and the young at heart including exhibits regarding science, culture, architecture, eco-design, technology and more. For young kids we highly recommend Playspace, a playful exhibit designed to stimulate the minds of children aged six months to seven years.

If creativity is your bag, then don’t miss Artspace, a visual and performing arts center which is home to more than 30 local Raleigh artists. Artspace features constantly changing exhibits, classes, demonstrations, and talks, so even if your Raleigh home is just around the corner it can provide a new and exciting experience every time.

Home prices are expected to continue to rise well into 2012—but with just a modest growth pattern. David Bracken, Real Estate Staff Writer of the NewsObserver, echoed this when he said “the Triangle housing market is likely to show modest improvement at best in 2011…. The industry continues to deal with too much supply and an economic recovery that is producing few jobs and keeping consumer confidence in check”

Raleigh’s homes are not gaining as much as the national average but this is likely due to North Carolina not being hit as steeply by the recession as other areas. Also, resale home prices are being tied down by the fact that one in four is a short sale or foreclosure home—which explains the slow growth pattern.

Buyers

Those considering purchasing a home in Raleigh in 2011 should look to do so in the coming months. Historically more listings come to the Raleigh real estate market in the springtime, which should further deflate home prices slightly. Prices from springtime onwards will continue to rise, making this the ideal time for Raleigh home buying.

Sellers

While the market is not currently ideal—those with a need to sell their home can do so with the top team in the Triangle, Team Marti. Avoiding the springtime rush by listing immediately may help you “beat the rush”. Bracken confirms this trend when he writes “listings typically increase in advance of the spring selling season, meaning the Triangle’s inventory problem is likely to get worse before it gets better.”

Total home sales in the four counties for January decreased 2% from January 2010. The total units sold were only 862. The TMLS reported that the average selling prices for January was $226,136. This represents a 1.5 percent increase over the same time period in 2010. The medium sales price remained the same as January last year at $181,000.

Average sales price can be affected by a few low end sales prices (like foreclosures and short sales). If a hundred homes are sold the average is the sum of all the sale prices divided by 100. The median sale price represents the price point where one half of the homes sold for more and one half of the homes sold for less.

The average days on market (DOM) for the homes that sold rose to 129 days which was an 18% increase over January 2010. Home showings were down by 11 % and the current supply for the whole Triangle area is 14 months based upon the January sales rate.

Read the full article here: Triangle MLS, Inc. Releases January Data

Stacey Anfindsen the TMLS market analyst shares some more insight into the Raleigh area real estate marketplace in the video below:

This is good news not only for our kids but Raleigh home owners as well. Location is probably the single most important factor that affects the value of real estate. An important part of the value of the location is determined by the quality of the school system. The good news for Raleigh area home owners is that the schools for the City of Raleigh and the surrounding area are a part of the Wake County Public School System (WCPSS), which has very good schools.

GreatSchools ranks the WCPSS a 7 on a scale of 10 which is very good if one compares it to other large southeast metropolitan areas like Atlanta which ranks just 4 out of a scale of 10. These rankings are based upon a schools test results.

Last week the Wake County Public School System announced that fifteen of its magnet schools were recognized as 2011 Magnet Schools of Excellence by the Magnet Schools of America.

Magnet Schools offer a choice for students seeking an alternative to the traditional school. Magnet schools have programs that offer innovative approaches to learning, including: Active Learning & Technology, Creative Arts and Sciences, Gifted and Talented, International Baccalaureate (IB), Leadership, Montessori, Museums, and year-round programs.

Here’s a list of the Wake County Schools to receive the honors:

2011 National Magnet Schools of Excellence
Combs Leadership Magnet Elementary
Bugg Creative Arts and Science Magnet Elementary
Farmington Woods International Baccalaureate PYP Magnet Elementary
Joyner Center for Spanish Language/International Baccalaureate PYP Magnet
Elementary
Millbrook International Baccalaureate PYP Magnet Elementary
Ligon Gifted and Talented Magnet Middle

2011 National Magnet Schools of Distinction
Brooks Museums Magnet Elementary
Underwood Gifted and Talented Magnet Elementary
Washington Gifted and Talented Magnet Elementary
Martin Gifted and Talented Magnet Middle
Garner International Baccalaureate MYP/DP Magnet High
Southeast Raleigh Leadership and Technology Magnet High
Wake Early College of Health and Science

Admission into the Magnet Schools and their programs is by lottery. NOW is the time to apply because “The application period for the Wake County Public School System calendar and magnet schools opened Monday and will continue through March 7. Applications will only be accepted online. Families may apply for up to three magnet school options as well as a calendar choice.”

You can apply on-line here: Application for a Magnet and/or Calendar Choice

The Marti Hampton Team is always willing to help, give us a call today.

Floods are frequently occurring natural disasters that can have the greatest economic impact and bring human hardships.

There is a free resource provided by the State of North Carolina that will show the floodplain areas anywhere in the state. And it is simple to use. It can be found online at http://www.ncfloodmaps.com/

The goal of the NC Flood Mapping Program is to reduce the loss of life and flood-related property damage by providing emergency managers and the public with more timely, detailed, and accurate information. The also can let you see the current 50 year and 100 year flood zones.

If you find your home is located or any of the structures on your property is located in a flood plain, you will want to obtain flood insurance. A few inches of water in your home can cause thousands of dollars in damage. In fact the average flood insurance claim was over $33,000.

Do not call your homeowner’s insurance agent (the one who insures your home from fire, wind and other damages) as flood insurance can only be purchased through the national flood insurance program. Insurance is available for condos, town homes and detached single family homes.

It is important to know that there usually is a 30 day waiting period for flood insurance policies to go into effect. If you should need insurance, we recommend you apply immediately.

Information on available programs and you can find an agent at http://www.floodsmart.gov/floodsmart/

In high risk areas there is at least a 1 in 4 chance of flooding during a 30 year mortgage. The average flood insurance policy costs less than $570 per year.

Escrow Accounts

Most lenders setup escrow accounts for their borrowers that pay for the home’s property taxes, home insurance, and other items like flood insurance and private mortgage insurance (PMI).  So what are some of the advantages?

Bills are paid on time. This also helps avoid a year end surprise of a large tax payment, etc. If the bills are not paid on time, the lender should pay the penalty for failing to pay the taxes on time as long you were current in your mortgage payments. If the lender refuses, you may wish to file a complaint with HUD.

Unexpected increases are handled. This is a responsibility of the lender to account for potential increases. The home owner does eventually have to pay, but increases are anticipated by the lender and a report of how payments are handled is supplied by the lender.

Shortages are handled. It is a common practice of most lenders to pay taxes and insurance even if the homeowner is behind on payments. It is in their best interest too.

Rates and down payments stay lower. By assuring these items are paid, mortgage securities and mortgage loan portfolios are more profitable and secure. This helps to keep down payments for home loans and interest rates lower.

Local governments save money. Escrow accounts provide an efficient and cost effective way to collect their taxes.

HUD has a FAQ page regarding escrow accounts that you can access here: HUD FAQ About Escrow Accounts for Consumers

As always, the Marti Hampton team is always happy to answer any further questions that you may have or refer you to a qualified mortgage lending professional.

Calculator

There are 4 easy steps to calculating the ratios that a mortgage lender or bank uses to pre-qualify and approve someone for a conventional home mortgage. Different lending institutions may have some leeway on these numbers, but this will give you a conservative estimate.

Step 1: Gross Monthly Income

First of all, calculate your gross monthly income for yourself or you can include your spouse – this is before any tax or other deductions are taken out of your pay.

Step 2: Debt to Income Ration

Second, we will determine what is called your debt to income ratio. Multiply your gross income that you determined above by 0.36 (this is 36%). Then subtract your long term reoccurring monthly debts, such as personal loans, car payments, child support, or the minimum payment amounts on all your credit cards. Do not include payments for utilities, and other payments that can be “canceled”. The resulting number here is the most often used ratio by most mortgage lenders to determine how much someone can afford to pay for principle and interest on a home loan, plus taxes and insurance – PITI.

Step 3: Monthly Tax and Insurance Payments

Third, determine the approximate monthly tax and insurance payments. The monthly tax amount varies depending upon the particular home’s location and value. In the Raleigh area, yearly taxes often range from 1 to 1.25 % of the tax value of the home. For homes located outside city limits in the county, this usually will be less. Ask the Marti Hampton team for specifics, but for estimating purposes, use the purchase price and multiply it by 0.0125 (1.25%) to give you the yearly figure. Divide this by 12 and subtract it from your PITI number above.

This gives you monthly the principle and interest payment you can afford.  There are other factors that a lender takes into account to determine the mortgage payment that you can afford, but this number gives you a ballpark figure you can use.

Step 4: Mortgage Calculator

Lastly, use the mortgage calculator on our website to run several different scenarios to see how much home you can afford.

You now know the major decision factors lenders use when deciding if and how much a buyer can afford when purchasing a home.  Note that lenders vary greatly in their assumption of risk, but these are standard measures.  Of course we are happy to help with this process and we have some excellent lenders to recommend. Give the Marti Hampton team a call today!

Raleigh NC Townhome for sale

Over the years alternative forms of home ownership have been developed from the simple single family detached home. This is due to increased prices for single family homes and changes in lifestyle of home owners. Typically multifamily homes are less expensive than the traditional detached single family home.

I am required to disclose that there are complex legal issues that distinguish a townhome from a condo so while I will discuss the major differences, if you have specific questions, it might be best to consult a real estate attorney (all real estate agents in NC are not allowed to practice law – we know some good ones we can recommend).

So what is the difference between a condo and townhome in Raleigh, NC?

Raleigh Condo for Sale

If you own a condo, you own the inside of your unit. You own from paint to paint, floor covering to ceiling material. This is often referred to as “air space”. You also have a legal interest in the common areas of the condominium complex.

In a town home community, the owners own the complete unit, but they may “share” a common shared wall between their town home and the next. The townhome owner also owns the land on which the townhome is built and this often extends a few feet outside of the unit.

Raleigh Condo owners usually “share” the ownership of the common areas while the common areas in a Raleigh, NC townhome community are usually owned by the homeowner’s association for the use and benefit of all the townhome owners.

Unit ownership in both condo and townhome communities are usually subject to certain restrictive or protective covenants. These describe the nature of the project and describe the rules that govern the use of the units and the common areas.

As an example, the covenants may call out the townhome or condominium as being limited to being limited to residential use and they may require that there be a minimum size, square footage and architectural style, etc.

The duties of the homeowners association (HOA) are also often described – what repairs will be made by the HOA, what additions may be made to the unit and if they require approval.

The Marti Hampton team fully understands the differences and the options. Give us a call, we love to help.

Outgrown Your Raleigh NC Home?

Since you purchased your home, maybe you have been blessed with a child or two? Or maybe you have started a home-based business and taken up gardening.  This may be all well and good until grandpa decides to enjoy his twilight years with you and you find yourself needing more space.

At some point, most homeowners find that their home no longer suits their lifestyle.  A question that often comes to mind is whether to remodel your existing home to fit your new lifestyle, or sell the home and buy another one.  Either option requests an investment of your life, time and money.

Use these questions to help discover which option is best for you:

Do you like your current location and neighborhood?

What don’t you like about your current home?

Is it feasible to remodel your home to have the kind of living space you need?

Is it more cost effective to buy another home or remodel the existing one?

Will you be over-improving for the neighborhood?

Do you have the time to plan for and oversee a remodeling?

Can you and your family realistically live through a remodel project?

Is it possible to buy a home that will suit your needs?

How immediate is your need?

While it is true that Raleigh real estate is in a strong buyers market now, it still is a great time to sell your current home and move up to a larger home. As an example, if your current home was worth $150,000 and now you would have to sell it for 10% less, that would mean you would “lose” $15,000. But when you go to purchase your next home that used to be worth $220,000, you can expect the same amount of discount and possibly more. Thus on the purchase of your next home you would “save” $22,000. This would give you a net gain of $7,000 on the two transactions. In addition, interest rates are still very, very low.

Give the Marti Hampton team a call if you would like help with your decision. We love to help.

The greater Raleigh area is a wonderful place to live, go to school, work or retire. Raleigh, Cary and even Durham often are at the top of the best places listings. As an example, Money Magazine named Durham #1 in its 25 Best Places to Retire list.

Money Magazine says, “Homes are affordable, the area is dotted with golf courses and parkland, and the region is home to a renowned university medical center.”

The City of Raleigh has been called the “City of Oaks” because when the site was originally selected for the State Capital in 1792, the land was covered by a oak hardwood forest. To this day, the city places a high regard on parks, trees, gardens and green space.

The city was named for the English gentleman and explorer Sir Walter Raleigh. He is probably best known for the story where he reputedly placed his cloak over a mud puddle to prevent Queen Elizabeth I from muddying her shoes. The story has never been confirmed, but it is interesting that a cloak was included in his coat of arms.

More than history, Raleigh features a diverse variety of shopping, dining, night life, arts and culture, and outdoor activities.  To learn more about Raleigh, visit our Things To Do page.

The quality of the local school system affects the value of real estate and the schools in the Raleigh area are excellent. The public schools are all a part of the Wake County Public School System and they have a website that provides lots of helpful information – Wake County Public Schools

You can find more information about the Raleigh Area on the following websites:

The Official City of Raleigh Portal

Visit Raleigh Tourism Website

Greater Raleigh Chamber of Commerce

There are many desirable Raleigh neighborhoods and it is a great time to buy Raleigh real estate. Contact the Marti Hampton team to learn more.