Winston Salem Real Estate Market

Winston-Salem, NC Real Estate Market The Winston-Salem real estate market is presently and has been a relatively even market between buyers and sellers. There has been no sharp spike upward nor severe downturn in many years. The market has enjoyed steady growth coupled with moderately extended time between first market appearance and sale of houses. Investment in the Winston-Salem real estate market has been a safe albeit expensive bet for novices and professionals alike. However it can prove lucrative as the recent introduction of a new Dell Computers Facility has boosted the job market. This provided a two-fold benefit. Entry-level homeowners were attracted to the area and move up buyers were encouraged to spend a little more for larger houses. Rising prices have done nothing drastic to the even correlation between buyers and sellers. Neither has risen to claim the sole title of the market as of yet and, if trends continue, neither will. Investment strategies differ according to a variety of factors, most importantly is locational trends. Winston-Salem, North Carolina is no exception. With an average closing price of $188,000 and an average of 78 days on the market for a house for sale, it has proved wise for would-be investors as well as seasoned professionals to enter transactions cautiously and with a carefully planned out exit strategy. Although “getting stuck” with a property with a price of over $150,000 is an unpleasant occurrence for some, it would not be as detrimental to an investor in the Winston-Salem real estate market. For example, instead of trying to make a profit by selling the house, income can be generated by renting out the property. The Winston-Salem real estate market is one that is overlooked by hungry investors. Overshadowed by higher profile locations such as Florida and Nevada, the first-time homebuyer as well as previous homeowner have enjoyed a market relatively free from fluctuation. The steady flow of buying and selling has kept everything stable and free from most surprises. Most real estate investment training courses offer advice on places to target for strategic purchase but the Winston-Salem market has remained under the radar for reasons that only speculation could provide. A simple market at best, Winston-Salem has not provided many a good enough reason to be drawn to its ample charm and easy to discern market patterns. This market has survived the housing boom as well as the bursting of “the real estate bubble” and has remained virtually unchanged. The Winston-Salem real estate market is definitely one that should be considered by savvy investors. It does not give evidence of a get-rich-quick area but one that could offer great dividends to the patient but cautious house hunter. In conclusion, the Winston-Salem real estate market joins quite a few others on the list of markets that are not being watched as closely as they should be by potential investors. This is compensated by the ever-faithful homebuyer who is drawn to the Winston-Salem market for personal as well as professional reasons. The phrase remains, “Let the Buyer Beware” and in this case it applies to both homebuyers as well as investors.

Choosing your REALTOR ®

The most important decision you will make in the sale of your home is the REALTOR you choose. Be sure to find someone you feel comfortable with. If you don't feel you can ask questions or go to your REALTOR, you have the wrong person. Your REALTOR should show you research to back up any recommendations. This includes information about recent sales, current listings, and recently expired listings in your neighborhood.

Choose a local REALTOR. He or she will know your area better than an outsider, will be seen as a source for people looking to relocate in your neighborhood, and will get better co-operation from other agents. It is likely that any amount you might save by having a friend or relative from outside the area serve as your REALTOR will be lost in their lack of knowledge about your specific local market.

Dont forget to ask for references from the REALTOR. He or she should be willing to give you names of previous clients. Ask your friends and acquaintances for recommendations, but make your final choice based on your needs. Ask the REALTOR to show you what will be done to market your home. Consider the office and company support available to him or her as well as the initiative and professionalism shown by the individual.

Look for a REALTOR who tells you what he or she knows from experience in the market, and not what they think you want to hear. Flattery may sometimes get the listing, but it doesn't sell the home!

Questions For Your Lender

The following are some good questions to discuss with your lender when applying for a home loan:

1. Are both fixed-rate and adjustable mortgage loans available?
2. What is the interest rate?
3. How long can I "lock-in" the financing at the current interest rate?
4. Is a float down lock available in case rates drop after I have locked in?
5. What are the other fees a lender may charge me in conjunction with my loan?
6. Are funds for a second mortgage available?
7. On adjustable loans, how often will the interest rate be adjusted?
8. Is there a maximum limit on each rate change?
9. How often will the monthly payment be adjusted?
10. Is there a ceiling on payment adjustments?
11. Can the term of the loan be extended?
12. What is the maximum rate that can be charged over the life of the loan?
13. Is there any potential for negative amortization?
14. Is there a pre-payment penalty clause? This involves extra charges for paying off the loan before maturity. About 80% of all loans in the United States are paid off early.
15. What is the "grace" period?
16. How late can a monthly payment be made before a late charge is assessed?
17. What will happen if a payment is missed?
18. If you sell your house, will the new buyer (if he/she qualifies) be able to assume your mortgage at the same interest rate?
19. Do you have to pay "points" to get your new mortgage?
20. Usually lenders charge points for the cost of giving you a mortgage loan. A "point" is 1% of the loan.
21. Will the lender require mortgage insurance?
22. Is the loan serviced locally or is the servicing sold? Ask for a written "good faith deposit".

Benefits of Proper Pricing

When your home sells faster, you save carrying costs, mortgage payments and other ownership costs. A quicker sale creates less inconvenience for you. If you've moved before, you know the energy it takes to prepare for showings: keeping the home clean, making childcare arrangements, and altering your lifestyle. Proper pricing reduces these demands on you, by helping your home sell faster. At market value your home will gain exposure to more prospects that can afford the price.

Sellers who list at a high price are looking for that one buyer who will pay it, often not realizing that they have discouraged many potential buyers who could have afforded the home. The final sales price is probably one that will be affordable by more purchasers. This is because sellers many times accept a much lower price at a much later date since that one buyer willing to pay the higher price never comes.

When salespeople are excited about a home and its price, they make special efforts to contact all of their potential buyers. Knowing that it is priced properly for its market, they expect it to sell soon and encourage their prospects to act quickly. Their excitement is contagious!

Ad calls and sign calls to REALTORS? turn into showings when price is not a deterrent. Most serious prospects are well educated about asking prices in the areas they are seeking. They will not waste their time on a home they consider overpriced.

Buyers fear they might lose out on a good home when it is priced right. They are less likely to make "low ball offers." Better pricing attracts multiple offers!

Bottom line, if a home is priced right, the excitement of the market produces higher sale prices. You net more both in terms of actual sale price and in less carrying costs.