JUMBO loans, Home loans for more than $417,000 for upscale homes in the Triangle market, are coming in cheaper than conforming loans at less than $417,000!
Luxury Home buyers and Home sellers, Rejoice! This may be a shot in the arm to a stodgy real estate market strata.
That just does not happen, historically. There has been a cost penalty for JUMBO loans, varying from a quarter point, to a point or more, just about forever.
The reasons? Banks have money and need to put it somewhere. JUMBO home markets are flooded with stagnant inventory. Luxury homes in the Triangle are just not moving, with 2 years’ inventory in many local areas for homes in the $800,000+ price ranges.
And, as Nick Timiraos noted in the Wall Street Journal last night, volatile mortgage bond yields are driving up confirming loan interest rates.
As usual, fascinating stuff. Structuring loans for upscale and luxury homes with 80/10/10, 75/25 products, or other scenarios has been a staple of JUMBO lenders in the past. And it is hardly a concern today, with JUMBO money very competitive and even more competitive than cohforming money.
Will this give the Triangle’s upscale home and luxury home real estate markets a boost? Stay tuned….
When I list a house for sale, I enjoy getting a variety of photos.
One of my favorites is getting a series of shots at dusk, with all the lights on and the house looking warm and welcoming. It requires a special trip back to the house, but the results make that quite worthwhile. I usually use one of the dusk photos as a feature photo on the Triangle MLS, and Realtor.com
Here are a few listing photographs I shot in Cary and Apex:
Photographers call dusk “Magic Hour.” I think a nice dusk photo of a pleasant home helps curb appeal, exposes the home for sale in a nice fashion, and makes the listing stand out to Home buyers. And, home sellers always like to see their property shown in the best possible light.
Buyers look for items that are dealbreakers for them. When deficiencies cannot be cured, smart Sellers and their listing agents price homes accordingly.
Buyers and Dealbreakers
Buyers will often cite a "dealbreaker" when considering a home. In Cary, NC, some of those items are steep driveways, proximity to large powerlines, proximity to busy thorofares, railroad tracks, or excessive airplane traffic.
Some buyers are willing to work with a home that has only a single negative feature, but when they add up, those buyers often lose interest.
A few years ago, I listed and sold a home with a steep driveway, powerlines and a railroad behind it. How can that be overcome?
We have a saying in real estate, that "Price fixes all deficiencies." In other words, when a home's price recognizes the diminished value created by excessive incurable deficiencies, and there is an affordable home with otherwise great features, there will be a buyer.
Smart home sellers and their listing agents in Cary will take negative items they cannot change into account when pricing the home for sale.
Check out garage dimensions to make sure you can park 2 cars in a 2 car garage in Cary.
Garages in Cary NC
How many cars can you fit into a 2 car garage?
What makes a garage a 2 car garage? Or a 3 car garage?
How can you tell?
The big door in front won't tell you. You can get a pretty big door on a pretty small garage.
We see Cary listing agents marketing 2 car garages, or 3 car garages, for their seller. But, some garages are so tight, it is difficult to imagine parking two cars and being able to open their doors.
Or, as often done in Cary, the water heater is placed in the garage, in the parking space. Or the builder adds a flight of stairs from the garage to the living area, and that flight of stairs encroaches into a parking space.
So, when working as a buyers agent, I take a very close look at the garage layout, the dimensions, and other factors that can impact the utility of the space. And sometimes I will tell my home buyers, "Well, heck. That's a 4 car garage. If you own 4 Smart cars." In other words, you will work hard to park 2 cars in that garage.
Discussion of termite plans, termite inspections, and how that varies from pest services in Cary.
Termites? In Cary NC? Well…. Yes.
One home inspection that home buyers always have performed on a Cary home is to have a licensed pest firm check for termites. Termites are very common in the Cary area and a smart buyers agent will press the home buyer hard to have the property checked out during the due diligence period of the contract.
It is also common for a home owner to carry a termite protection contract, which usually includes a repair policy for any termite damage. If the home seller has carried such a plan, the seller should let the listing agent know, and that becomes a selling point in the listing. If the plan is transferable, it is even more affordable and valuable to the home buyer.
Some folks confuse a termite plan with quarterly pest service. Those are two very different services, even though they are offered by nearly all pest and termite control firms in the Triangle area.