Our market has been better than many across the country.
But, pricing dynamics are segmented within price range and geographic location around N Raleigh.
So, it depends on the sort of property and the specific N Raleigh location.
Paying Cash makes an offer look strong. It may or not save you money, but it certainly gets Sellers' attention, as they know they will not wait for a bank to approve a loan.
Before you talk too much about having cash, or other confidential information, read this publication from the NC Real Estate Commission. Among other things, it tells you to avoid disclosing info you would not want a Seller to know:
The second part of your question is something I feel EXTREMELY strongly about though. Loan terms will NEVER be as good as they are now and will most likely be extremely bad in the next 10 years. Don't be surprised to see interest rates rise to 18% in the next decade as they did in the 80's. Hedge your cash against inflation and take advantage of an all time low 30 year fixed rate now. This alone makes the question of value substantially less important. In 5 years when you need to make a big purchase you can finance it for say a conservative 9%, or you can pay cash for it while only paying 5% on your home. DO NOT put more money down than you have to. You'll also be able to pay down your loan faster as inflation sets in one day. Lastly, you'll get a monster tax deduction with the mortgage interest savings. Its a no brainer...
Victory Realty 1135 Kildaire Farm Rd. Suite 200 Cary, NC 27511 919-249-8555
Serving the Wake County Raleigh Triangle Area, Cary, Apex, Garner, Morrisville, Holly Springs, Chapel Hill, Durham
As for our market, there has never been a better time to buy a home! Interest rates and prices are at all time lows at the same time. I post information on the Triangle Market on my blog, and can send you the Triangle Market Overview which I put together each month for buyers just like you.
As for paying cash, it will put you in a great position from a negotiating stand point, but with interest rates as low as they are, I always suggest speaking with your financial advisor and/or accountant on the personal benefits for you. A quick closing with a reputable lender and a reliable loan program gives you a great negotiating position as well. The seller gets cash at closing either way.
Please visit the website for more information and let me know if I can send you the Total market Overview for the Triangle area. We are here to be your consultant and provide as much information as possible.
Best of luck,
Wilson Realty Group, Keller Williams Realty (North Raleigh)
There are great deals to be had, but it requires a little more work finding the bargains around here than some areas. All cash should get you a good deal on something newer (if not new). I am of the opinion that some of the big homebuilders may have jumped the gun and thought we were pulling out of the financial mess earlier this year. As a result there should be some new inventory coming online next spring, and those may be favorably priced because I don't see the recession being close to over next spring.
One thought would be to pay cash and then puta loan on the property once you have it paid for.
Best of luck. You and your family will enjoy the area.
The other agents have given you the info about prices and trends in the area. I agree with Mike about cash offers--it means it is a solid offer that isn't dependent on the bank underwriters. However, definitely discuss with your accountant the tax ramifications of paying cash, and the wisest use of your cash. I find that talking with a financial adviser and an accountant gives me both ends of the spectrum about the pros and cons of paying cash.
For example, I bought an investment property with cash to close quicker, then took out a mortgage. Dumb move, my accountant told me. This kind of mortgage doesn't have the same tax advantages as a mortgage taken to purchase property.
N Raleigh is a great area. Perhaps also talk to some lenders about financing 50% for 10 or 15 years, see what they say. Good luck, enjoy your options.
Maybe I am a bit biased because I am a lender but with 5/1 arms below 3% and 30 fixed below 4% it just makes no sense to pay cash in my opinion.
I've included a link to our Wake County Market Report for your review to see how our market is doing for yourself. This market never saw a huge spike and hence never saw a huge dive. There are great homes on the market now and reasonable sellers.
As for saving when paying cash... of course you save the obvious in interest and perhaps would find a seller wiling to negotiate a tad better not having a financial contingency on the contract. A cash buyer always has a strong negotiating position. Be sure to work with a professional REALTORÂ® when your ready. They will guide you on securing your best position throughout the transaction.
Happy House Hunting!