Important Fannie Mae / Freddie Mac Mortgage Info!

A good mortgage friend of the Kaspar Team, Eleanor Thorne of New Garden Mortgage, recently sent us some important info we wanted to pass on:

Dear Friends:

WATCH OUT!!! Last month Fannie Mae and Freddie Mac announced new loan level adjustments. They are moving to a risk based pricing model, no doubt in response to recoup foreclosure losses and mitigate future losses. These adjustments will mostly be based on FICO score and DOWNPAYMENT. Currently, Fannie and Freddie conforming loans require a 620+ FICO for "standard pricing." Higher FICOs, of course, might entitle someone to slightly better pricing.

With these announced changed (they go into effect March 1, 2008) there will be additional loan level pricing adjustments for FICO scores below 680. If the Loan-to-Value (LTV) is greater than 70% (THAT's RIGHT NOT THE 80% LTV we are all use to - now you will need 30% investment for best pricing ), the pricing adjustments are as follows:

The following table illustrates the rates and costs for a borrower with a loan amount of $300,000.

Credit Score Delivery Fee Rate Cost
Below 620 2.00% $6,000
620-639 1.75% $5,250
640-659 1.25% $3,750
660-679 0.75% $2,250

If you didn't think knowing how to work with credit was important, now you know it is!
This new risked base pricing will be on Conforming Fixed (Greater than 15 year) and ARM programs. Other Fannie/Freddie programs like the My Community Mortgage (MCM), Expanded Approvals (Levels 1, 2 or 3), Home Possible, FHA/VA and Jumbo loan products will not be affected.

Most banks have not adopted these changes (YET!). With all of the changes in the Mortgage Market in the past few months, this will likely have the most significant impact. Some have said that this equates to "double dipping on the risk assessment." I personally think it's like TRIPLE dipping because the threshold is now a 30% investment!

Conforming loans have always been priced based on risk. Mortgage Insurance is still required if the LTV is less than 80%. There's no news yet if some investors will now require insurance down to the 70% threshold - and there's no way to know if the Mortgage Insurance Companies will raise their rates - but it seems logical that they will.

Bottom line is - the cost of obtaining a mortgage WILL go up in the coming weeks. The public is going to hear that the Fed is cutting rates (potentially next week) and think they can get a deal. Well, the jobs numbers today were inflationary, and with the added fees from Fannie and Freddie, the public might be in for a shock!

You can contact Eleanor (below) be sure to tell her Vic Kaspar and the Kaspar Team recommended you give her a CALL!

Eleanor Thorne, New Garden
Email: eleavor@gmail.com
Website: http://stevethorneonline.com
Office Phone: (919) 649-5057
Description:
I've lived in North Carolina all of my life! I love it here! SELLING MONEY is a little more difficult these days - but it's still a GREAT BUSINESS to be in!

Submitted by Vic Kaspar, lead Broker, Kaspar Team, ReMax United, Cary, NC. One of the top selling agents for Raleigh NC real estate!

Most Homes Sold in Triangle?

If you had to guess, which month did REMAX United sell more homes, November of last year, or November of 2007, this year? Remarkably, if you said, "November of this year, REMAX sold more homes than last year in Cary, Raleigh, Durham and the N.C. Triangle, you'd be right!

Who would have thought, listening to all the Real Estate Gloom and Doom in the Mainstream Media.

I'll be putting out the figures on this blog soon. Just thought you'd like to know, and it shows that with Real Estate Prices moderating in Raleigh, Durham, Cary, Chapel Hill Real Estate area. That reality, plus the fact that we're heading into the Holidays and dead of winter while finance rates stay around 6%, now is the best psychological and financial time to buy based on statistics of the Triangle Multiple Listing Service Board of Realtors. I'll follow up in a few days.

Meanwhile, see all the listings and great values in Real Estate Investing at update 2 times daily, 7 days a week at: www.KasparTeam.com

No Doom and Gloom in Raleigh NC Real Estate!

With all the doom and gloom we hear in the local and national main stream media, most people get the impression that the real estate business is down in the area, because it is down somewhat nationally, and really hit a low point in some specific areas of the nation, like parts of the North East, Los Vegas, and others.

Well, just how many homes would you think have gone under contract, 'pending' in the Triangle here, IE: under contract to be sold? In just the past 2 weeks...the end of November to December 2nd? 50? 175 homes, 200 homes? 20 homes a day, which would be 280 homes sold in 2 weeks?

The real number of homes sold in the Raleigh, Durham, Cary and Chapel Hill area of North Carolina is 975 homes, which include a few plots of land. This figure is varified with the N.C.Board of Realtor's TEMPO MLS system, with a status check made December 2nd, 2007, 10:30 PM.

And that figure does not include Commercial Real Estate. 975 in 2 weeks in the 'off season' of November and December. Not bad, huh? 25,350 would be the total homes sold in one year at the pace of 975 homes sold each 2 weeks.

The actual number of homes sold in the past year, December 2, 2006 to December 2, 2007
is 36,987 residential homes, which does not count land, and commercial property, and the few FSBOs, which are a very, very small fraction of what the Real Estate Community sellers. One of the big reasons Real Estate Agents the vast majority of the homes, including selling a large percentage of For Sale By Owners, is that the Buyer Agent's Services are Free to the buyer, and a Trained Buyer Agent who does local business day in and day out as a noble profession, brings so much knowledge, skill and disclosure to the investment, that a smart buyer just naturally wants knowledgeable guidance in this purchase of a home, which in most cases, will be the largest single purchase a person will ever make.

Let us help you. It would be an honor. The award winning web site most use is: www.kasparteam.com It has up-to-date local real estate information, costs, pitfalls, and, local school information, and a complete in-depth listing of over 17,000 detached homes and town homes in Cary, Apex, Raleigh, Durham, Chapel Hill, Holly Springs, Fuquay -Varina, Clayton, Windell, Zebulan, Knighdale, and other Triangle N.C. area communities, like Wake Forest and Youngsville, N.C. Call our agent on duty at 919-469-6555.

Regards, Vic Kaspar, Lead Broker, Hall of Fame Realtor, REMAX United

Christmas Tales in Raleigh NC Real Estate

I'm so excited about the holidays and I'm so in the spirit that I tried to climb on the roof to hang lights... my husband tried to convince me I couldn't climb the pitch of the roof, he taunted me by saying "he wasn't going to call an ambulance" and "he wasn't going to go to my funeral"... I got up there & could have gone further.... if I wasn't laughing so hard! So now, I need a 30 foot latter or a Cherry Picker! Got any suggestions? Merry Christmas! - Posted by Janet Allen, Realtor, Kaspar Team, ReMax United, www.KasparTeam.com

The smaller towns don’t get enough credit!

I was speaking with a woman the other day who was telling me how much she liked living in Garner. She has lived in several different areas here in Wake County, Raleigh area and really felt that Garner had a lot to offer, yet so much less traffic and noise then other areas. She thought Garner didn’t get the credit it deserves.

I agreed, as I have always liked many of the smaller cities on the outer areas of Wake and surrounding counties. Several of those smaller towns just really don’t seem to get the credit they deserve.

If you don’t like all the traffic of the larger cities, the smaller towns are an ideal place to buy a home. There are many nice communities in the outlying areas and new ones are rising up all the time. Plazas are usually close by for your day-to-day needs so you don’t have to venture far if you chose not to.

So if the all hubbub of the bigger cities in the Triangle is not for you, there are still plenty of less noisy areas you can find here to call home. There are many places you can find a great home at a great place in the NC Raleigh Real Estate market.

Submitted by: Colleen Gray, Broker, Kaspar Team, ReMax United (www.KasparTeam.com)

Negotiation Tip to Save Thousands on your next Triangle Home Purchase!

Negotiation tip to save couple thousand on your next Triangle Home Purchase: Hi, Vic here. I'm often asked, "Vic, just how can we a better deal when we make offers, without offending the seller?"

Well, that's my cup of tea! Vic Kaspar loves the challenge of negotiating the best price on Raleigh Real Estate, and best terms too. It's exciting to keep digging for that last thousand dollars for the buyer (or seller's) favor. It's a sport, but a big dollar sport. And with 5,000 real estate agents in the Triangle, I can tell you that most of them are not too good at it. But that's just my opinion.

So here's one tip. Always include closing costs in your offer, even if you don't need them. Why put in Closing Costs when crafting your deal on Triangle Real Estate? Because closing costs weights down the whole price. The seller wants to sell, and if he thinks you have to have closing costs to make the deal...and he knows you won't pay full price, it's a psychological advantage to you.

Often the seller will think: "let's split the difference", but then in his mind, he kind of disregards the closing costs because it's bundled up in the deal, along with a home warranty, etc, and you slide through with a couple extra grand off the final price. When talking with the Selling Agent, you've got to be convincing that the deal won't go through without closings costs, and you've got 2 other properties that have indicated they might cooperate. It' works almost every time I use it. That's just one tip. I've got a few more, including one that almost always gets us $5,000 less.

Just call me, or any member of the Kaspar Team (919) 469-6555, if you want to pay less and get more with Raleigh, Cary, Apex or any Triangle Real Estate. It goes without saying that if you're a seller, I know all these methods too, and know how to confuse the buyer agent to give up and just advise his buyer to 'take it' before we sell to someone else. Happy Hunting! Vic Kaspar of the Kaspar Team, ReMax United.

Termite Tales - Raleigh NC Real Estate

Funny or interesting stories now, but not then, all because they did not get 'complete' home inspection. I worked with a young family man who was renting, and want to buy his first home
and invest in Cary Real Estate with the Kaspar Team as his guide, was ready for inspections after selecting his dream home on a good side lot near Cary, N.C. Long and short of this tale, the home had a detached garage, located about 20 feet behind and to the right of the home.

Came time for the Termite Inspection, and this buyer did not want to play extra for the detached garage inspection fee. The Cary home termite inspection was clean...no termites or evidence of past termites with those mud tunnels which are the tell tail sign.

I saw him about 15 months later in a grocery store, and he told me this story: "I went outside one morning to start the car, ready to head to work. Threw up the garage door like always, and the entire front of the garage fell in on the car!" The termites had eaten out the inside of the 2x4s and 2x6s over the years, and all that was left over time was a hollow paper thin shell. Imagine his surprise and shock, when he reached down for the handle with a cup of coffee in one hand, and a manly yank from the other. Then in a flash, he took down the door and then entire front of the garage!

Had we found them in the garage, before the closing, the seller would have had to not only fix the garage but treat the effected area. Otherwise, we would not have had to buy the home, and could get our earnest money refunded, and go on to another home in the Cary area to buy.

Moral of the story, always pay a little extra for inspection of all wooden structures and don't skimp on any inspections!

Termites are dumb little bugs which are under ground everywhere in North Carolina, and see your home and garage as a smorgasbord of delightful goodies, and if you drive them out of the house, maybe, just maybe, they will take up a dinner tray in the garage.

So whether you are looking for Apex NC real estate, Cary NC real estate or Raleigh NC Real Estate, contact Vic Kaspar, and the Kaspar Team http://www.kasparteam.com/ for more info. Remember it is Vic KaspAr (not Vic KaspEr).

Future Clients

Today, I called a gentleman who was searching the kasparteam.com website looking for homes to purchase. He was working with another Realtor from another company, yet he had many questions for me. His questions were, "What are the average days on market for a home to sell in Cary?" "What is the market really like out there?" "What kind of incentives are sellers giving to buyers?" "Should I offer a plasma TV as part of the deal?" "What do you think of 'X' neighborhood?" etc. etc. I respectfully & professionally answered all of his questions and his remark to me was, "Wow! You seem pretty knowledgeable about the market and the area; can you send me your contact information?" I didn't question why he was asking me these questions and not his Realtor; I didn't have to!

For Service, Experience and Professionalism the Kaspar Team is where you need to be! - Posted by Janet Allen

Why Raleigh Area Weathers Financial Storms.

Hi again. Vic Kaspar, here, lead broker, for the Kaspar Team, ReMax United.

Did you know that Raleigh,Durham, Cary has the Royal Flush for real estate stability.

How do I know that? When I used to travel the country to locate
stable and growth potential areas to do business, I used this accepted
formula to find a town or city that was excellent, and yet balance in economic foundations; the criteria was:
A) Have a major University
B) Be the Capital City
C) Have an Industrial Park, or dedicated business concentration that would
attract business and employees and service industry to the main enterprise.
D) Have a diverse economy. IE: not just only Agricultural, or only Industry, Service, Research, etc, but at least 3 different strengths so that jobs and the economy was not supported by just one thing.

In Raleigh, Durham, Cary and Chapel Hill, for economic and real estate stability,
we have:

A) Not one, not two, but 3 Major Universities, UNC, NC State and Duke, plus other
fine smaller colleges and a great Technical College, with Parents supporting their children, and football, basketball, other sports bringing in Millions

B) Research Triangle Park (7,000 acres), with over 159 firms employing over 35,000 people:
• Business and Professional Services (25 companies/842 employees)
• Environmental Sciences (8 companies/1,430 employees)
• Financial and Insurance Activities (3 companies/2,575 employees)
• Information Technology (35 companies/20,849 employees)
• Life Sciences (48 companies/9,715 employees)
• Materials Sciences and Engineering (21 companies/1,187 employees)
• Retail Amenities and Service Providers (6 companies/197 employees)
• Scientific Associations, Foundations, and Institutes (18 companies/4,030 employees)

C) Raleigh is the Capitol City, with other towns in N.C. sending in their tax dollars

D. There is a diversity not only economically in the area, but also among the population.
Research Triangle Park's High Tech jobs bring in the 'best of the best' from all over the
world, and the University system attracts people from all walks of life from all over
the United States and beyond.

This 3 legged stool is vibrant and strong. And because of this, the growth is steady and measured, without the erratic ups and downs of some Real Estate Markets like Los Vegas for example. Our appreciation is a steady 3 to 5% (and more), and with students who graduate from College here, staying here, the State Capitol growing along with the state, and the RTP Global in reach, serving this flat new world with high tech service and beyond, all combine to make Raleigh, Durham, Cary area of N.C. a sound and economically wise place to invest in Real Estate for pleasure and/or profit.

Amazing time to buy in NC

Be sure the check out www.KasparTeam.com for the most recent real estate information.

Average Sales Price Raleigh / Cary, NC

Hi, Vic Kaspar here, Kaspar Team, ReMax United in Cary, NC. I just wanted to drop a quick note to let you know that the Average Re-Sale Price in the Triangle is $248,000. The Average New Home Price in the Triangle is $381,500. The Triangle (Raleigh, Cary, Durham) area is still one of the highest growing markets in the country. You can get a lot of house for your dollar in this market! Check out this and more info at www.KasparTeam.com.

Raleigh - #1 Seller's Market - Forbes Magazine!

Hi, Vic Kaspar here. You might have seen the national press on Raleigh being determined to be among the 'best places in the US to sell a home'. Well, I would not want that destination to lead you to feel that you'd be buying a home that's overpriced in the Raleigh area.

Actually, I had a question about this a few days ago talking with a relocation buyer on the phone, and here's what I told her: Since the Raleigh area (Cary, Holly Springs, Durham, Wake Forest, Knighdale, etc) has never seen the erratic inflation of other cities...just sort of a light rain fall instead of a torrent of water, this 3 to 4% increase in value, year in and year out, has lead (in part) to a place where people want to move, because the home prices are in fact affordable. Also, being the State Capitol, Research Triangle Park, 2 hours from the mountains and the ocean, 3 major universities, all that helps!

That demand creates a good market for sellers, but not an outrageous market. Builders are still offering wonderful incentives with many free 'extras' and closing costs paid, and re-sale 'sellers' still have to compete with those builders.

All this means is that seller's homes that are 'priced right' (at appraisal and market value) will sell in less than 45 days, as opposed to some areas of the country where you have to add a 'zero' on the end of those days! If you have any questions or need any research, feel free to call me or any of my team members. We promise to give you the straight talk (919) 469-6555 . Vic

Cary / Raleigh Real Estate July 2007

Hi, this has been a very interesting summer so far for buyers and sellers in the Raleigh area. Interesting because about 100 people a day move to the greater Raleigh area, and the pace of sales has not slowed down. So you don't find 'distressed' sellers who are willing to drastically cut prices like you hear about in other areas. Which is good for everyone. For sellers, they are getting 2 to 4% appreciation per year, consistently, since the late 80s, and for buyers, they can be confident that when they buy, the market is not the kind or does not have the history of erratic price changes, and getting 'caught' in the wrong side of a price swing. My wife and I have been selling and helping people buy since 1992, and I've never seen a buyer of ours loose money when they sell. Even when selling in less than a year!

If you have any specific questions or want other info, just let me know. I'll take the time to answer or look up the research.

We're working on a new logo and slogan and you'll be seeing in on the site soon! Very exciting! Ideas come from our team members, and past clients as well.

Cary, NC Real Estate is BOOMING!

I can not believe how fast homes are selling here in Cary! We had a client whose home we listed on Friday. By Saturday noon, I had 18 OFFERS! We ended up getting $15,000 above list price for our client! It was an exciting day for all of us! We had very HAPPY buyer, because she wanted the house and just FELL IN LOVE WITH THE HOME!

SPRING IN NORTH CAROLINA!

The real estate business is getting really really busy lately! That is a great thing! I am seeing more and more people moving to North Carolina from all areas of the country!

The most exciting part of my job is being able to share with our new clients all of the new happenings in the area!

Cary, NC - has Cary Week

Apex, NC - has Peak Week (since Apex is known as the "Peak of Good Living").

Exciting times!