Raleigh Open House

Five years ago getting your Real Estate license in NC seemed to be a very good idea.  A lot of people were tired of their office job, wanted a part time job or just wanted a fresh career change.  Skip forward to today’s market and it doesn’t seem to be such a “golden opportunity” as it once was.

The National Real Estate market is hurting, but there are many markets around the country, NC being one of them, that are getting along okay and is not suffering as bad as other parts of the country.  I heard a speaker say at a lecture in February that statistically speaking, 2008 is the year to just get by….I interpreted that as the media outlets proudly distribute that the market has hit bottom, and as an optimist I would say that means it will go up…although I think it will be tough for the rest of this year at least.  But, to quote a song, “you can’t have the good, until you shared some bad”, $10 to whoever can name the song…(no googling).

Now to the point, in 2002 there were 5,775 applicants for a license in NC which steadily rose up to 10,493 in 2006 which averages to 874 a month.  In 2007 there were 7,504 (625/month) and this year so far there are 1,359 (453/month).  I would assume the numbers will slowly go down this year and then slowly trickle upwards in 2009…….then stay steady for a while.  For the record, to even apply to get a license in NC you must first pass a classroom exam to proceed to take the State exam.  To date (actually 3-08) out of 2,239 people that have taken the State exam,  1,342 passed, which is close to a 60% pass rate.  If you are considering getting your license, talk to people you may know that are in the business and see if it is for you…..then study and know your stuff….clients like that.   For more Real Estate Information please visit us here.

Being a REALTOR, I hear it a lot.  REALTORS get a bad rap as being lazy, not returning calls and in general not having a sense of urgency.  Well, I am here to agree….to an extent.  You have heard of the 80/20 rule I am sure.  One example is 80% of the nation’s wealth is controlled by 20% of the population…..you can use the rule of thumb with many situations.  Well, it is no different in the Real Estate industry.  There are a lot of good REALTORS out there, but there are also a lot that are less than mediocre.  This equates to 80% of Real Estate transactions are done by 20% of the total REALTORS out there…in other words…they are the good ones….a lot just sit back a polish their license on the wall and do a transaction here and there. 

I have been debating on writing this particular blog for a while because I didn’t want to “knock” anyone in my profession….well, after this week I have broken down to acknowledge some need a wake up call if they want to stay in the business.  No names or companies mentioned, but here are my two biggest peeves and one unbelievable occurrence.  Here’s one and two together.  After showing a house, our MLS system has an agreement with a showing system that automatically sends an email to the showing agent to provide feedback from the showing.  This is important because it helps the listing agent as well as the seller know what is right OR wrong with the home…be it style, paint, smell, location…..whatever..it helps to know what others are thinking.  MAYBE 50% of agents give feedback….INCREDIBLE.  Next, returning calls.  Getting a Real Estate license and keeping it active takes some brain power and of course time, but how can people not return phone calls….that just kills me.  By the grace of God and ingenuity of Mr. Alexander Graham Bell, the telephone was invented and actually works fairly well.  Email, cell phones, office phones…..all of these will work, why not utilize them.  I have never understood this procrastination.  If you are a REALTOR reading this blog that means that you are into “reading blogs” and hence are probably a good agent,…..because you are interested and want to research your profession…if this is you then you know the type people I am talking about.

The unbelievable:

We are held to a high standard when showing houses.  We know to cut off lights, close doors, take off shoes if it’s been raining….you know common sense stuff.  I have a listing directly in front of my house…and I work from home so I have the luxury of seeing how long agents stay with their buyers.  Last week an agent showed the house and after about 10 minutes she walks out on the front porch leaving buyers inside…and lights up a cigarette.  In 1980 this might not be bad, but come on, don’t smoke on my clients front porch.  After taking a few drags her buyers come out and she puts the cigarette out and then THROWS it in the pine straw (we are in a drought by the way) flower bed.  I couldn’t believe it so I went over afterwards to check…..yep!! So this agent was with a VERY very very large national franchise that really promotes the professionalism of their agents.  I have debated on calling her Broker, but just decided to write about it in cyberspace.  Oh well….that is my rant and this is my site. 

REALTORS: Hopefully I am not the only one noticing these things.  BUYERS/SELLERS:  Choose your agent carefully.

Lake Benson Park in Garner NC is an unbelievable site in southern Wake County that is truly what you can call a hidden gem.  What is so amazing about this place is it seems like no one knows it exists because it is NEVER crowded….except during the 4th of July Fireworks Celebration.  I usually run the trails there 2-3 three times a week and it is always a peaceful escape.

Located at Aversboro and Buffaloe Roads, you will find an incredible 64 acres of grass, trees, flowers, running trails, picnic areas and a shoreline to gaze at the lake.  This property was part of an 840 acre land grant from King George II of England.  In 1990 the Town of Garner purchased the land from the Buffaloe family and developed it into the family oriented park that it is today.  The Inland Trail is 1.2 miles and there is a Woodland Trail of .6 mile which also contains a few playgrounds and grilling sites.  One thing that you may notice off to the side of the trail on the northern end of the park is a memorial dedicated to PFC Henry Charles Sanchez, USMC.  Henry was a 2003 graduate of Garner High School and use to run these trails to prepare to become a Marine.  In July of 2006 Henry was killed in combat in Iraq serving his country. 

If you live in the Raleigh area, Garner is 10 minutes from downtown Raleigh and is worthy of your visit to the park.  Bring your dog, running shoes, blankets or whatever you usually do at a park and have a good time.

Recently, in the past 12 months or so the Raleigh area has had many sellers scratching their heads when they are not getting asking price and they are parting with their refrigerator, TV and other personal items written into the contract by the buyers.  It is called a buyer’s market and an issue associated with this, which is rarely touched on until it hits home…no pun intended, is appraisals.

Appraisal=Home must appraise AT or HIGHER value of sales price on contract.

When sellers insist on listing at a certain price some agents may or may not take the listing, but the one thing that should be pointed out in the listing presentation is…….you can list for whatever you like whether we list it or another Firm does, but it has to appraise.  Meaning if a seller swears their house smells, looks, feels better and is just a nicer house than the others in the neighborhood and they should get more and are “holding out” for a higher offer, the banks are going to laugh at you.  So even if a buyer is willing to pay your price…..the bank has final say.  IT IS WHAT IT IS.  BUYERS determine the value of the home by a series of purchases close in proximity to your home, appraisers report on what buyers are willing to pay.  There is A LOT that goes into an appraisal and they definitely earn their money and are badly needed, but the fact remains that the buyers ultimately determine the value. 

So if you are a homeowner considering to sell, be realistic and make sure you don’t get too caught up in the pricing game.  Listen to your agent.  They are not going to take responsibility OR blame for the market….it’s just their job to help you understand it.  For more information visit us here. 

You may ask why I am writing about Charities on a Real Estate Blog Page.  Well, why not?  While Raleigh is one of the fastest growing cities in this part of the country, a lot of people that move here are not aware that there are a lot of smaller charities worthy of recognition.  One that really does have something to do with Real Estate is the Center For Volunteer Care-giving.  With a lot of elderly folks moving to be closer to their kin, this organization helps provide services to the elderly such as transportation to Doctor appointments, house cleaning, grocery shopping and many other things that are hard to do by yourself when you are older and live alone.  Another one of my favorites is April’s Angels.  This one is by far one of the best and in most need of attention to the public.  Victoria Bloise started April’s Angels to give back to the community.  April’s Angels help chronically ill children in a way to improve their home life.  An example is transforming a child’s room into a magical land or a baseball stadium or a space ship…….or whatever that child wants; kind of like a miniature Home Makeover you see on TV, but localized to the child’s bedroom.  These and more local charities can be found here.

Without charities a lot of things would not happen.  A lot of opportunities will be missed, a lot of smiles will never happen and a lot of life changing moments will be passed over.  Donate, volunteer….Discover Giving.

With Raleigh NC becoming a more and more popular place to buy Real Estate, many people are now wanting to know what there is to do here.  Even folks who have lived here for years are not aware of certain activities that exist in the Triangle Area. 

The obvious and most advertised is the Carolina Hurricanes, but not many people realize we have a rugby team, two minor league baseball teams and a professional soccer team.  The area boasts six major shopping malls/outlets, not to mention the ever so popular farmer’s market which by the way, has the best and cheapest fruit and vegetables you will find anywhere around here.  Aside from sports and shopping, museums is a popular draw for people of all ages.  Raleigh has over 7 museums; and not many people that live here know that. 

You can find out about EDUCATION, HOSPITALS, SPORTS, GOVERNMENT and just about anything going on in Raleigh by visiting our site.  We hope this helps and hope to see you soon.

As most Realtors can affirm, we can be both a Buyer’s Agent and a Listing Agent, it just depends on our current client’s situation.  As the season picks up and I receive more calls on my listings, I am reminded of what I usually tell first time buyers whether they are my clients or merely just giving advice to future homeowners.  This goes for all home buyers….not just first timers, but I see more first time home-buyers put in this position:  if you are looking for a home, do not call 10 different agents because you saw their sign in a yard and want to view the inside.  I say this for a few reasons.  First, with the power of the Internet, you can easily eliminate some potential homes by viewing pictures or virtual tours on-line.  That is one of the reasons that I believe Open Houses DO NOT WORK.  Second, when you call a listing agent, they work for the seller so you do not want to give them that much information about yourself, or; unless they can explain agency real fast and acquire you as a client, they will have to tell the seller everything they know about you.  At this point listing agents reading this are screaming..no I want you to call me and buyer’s agents are saying…listen he know what he is talking about.  A lot of agents pick up their buyers by calling their yard signs and then represent them in purchasing a home different that the one they called about.  So it is okay to call yard signs……just not a lot of them when you have no idea who represents who.  I do like to get calls on my listings, but most turn into dead leads, so it is not the “wrong” thing to do, but what you should do is if you don’t have an agent is:

1-Get a Realtor to work for you as a buyer’s agent.  They will work for you to find the home you are looking for with all the criteria you have provided them.  This cuts out a lot of your driving around and more than anything….the fear of not knowing who to trust.  If you have one agent as a buyer’s agent, your information is confidential because they have a fiduciary responsibility to uphold your interests….even above their own. 

2-Another thing to remember is your buyer’s agent is your first point of contact for advice .  When you are looking for a loan, they can guide you in making good choices. Your agent should be savvy in the language and know certain things to avoid.  A lot of Real Estate Firms have their own in house lenders these days.  You should get a straight answer from your agent on what is the best route to take.  In NC there is Bond Program for first time buyers through The North Carolina Housing Finance Agency a.k.a. NCHFA.  This program is very underutilized, always offers below market rates and at this point offers up to $7,000 down payment assistance depending on your situation.

Good luck house hunting and get that one good agent to work for YOU…and ask a lot of questions…they are used to it and it’s their job to give you the answers.  For more information visit us here.

A lot of times while on listing appointments or just in general conversation, I hear people commenting on what their home “should” be worth and all the reasons to support their theory.  Before asserting my opinion, let me just say that buyers are the ones that determine the value of your home.  It is what a buyer is willing to pay that determines how much you get, not any other factor.  The buyer is influenced by comparable sales which their buyer’s agent will no doubt point out to them; as your listing agent should point out to you.

The issue that puts certain sellers in a bind is that they feel certain things about their house should constitute more money in the final sale.  While some things do, a lot of things do not.  Let me explain.  If you live in a neighborhood where all the houses are between $180K and $220K, 1800 and 2400 square feet, have vinyl siding, popcorn ceilings and solid surface counter-tops, when you sell your home you should look at those comps.  Well, if you added fiber cement siding, smooth ceilings and granite counter-tops, it is very likely you will not recapture that money you put into your home.  What happens is now your home does not conform.  If your home is not like other homes in the neighborhood it is hard to compare it to any of them.  Well buyers are not going to buy a home in your neighborhood that out-priced itself.  In other words, if they want to buy a home with those features, they are going to a neighborhood where you usually see those features.  These are vague examples, but the proof is in the pudding.  Statistics. 

For arguments sake I am going to use my house as an example.  I put up a fence in my backyard and it cost us around $5,000.  Now when I sell my house I cannot expect to get $5,000 more than an identical house next door minus the fence.  WHAT IT DOES is make my house more attractive and more likely to sell than my identical neighbor who is selling at the same time.   

When you are considering doing certain things to your home, look at your neighborhood in general.  Another example is if you are buying a home to flip in an area where most homes have laminate flooring and laminate counter-tops….DO NOT put granite counter-tops and tile flooring in……that is like putting lipstick on a pig or whip-cream on an onion.  And if you didn’t know this was coming….Please don’t pay too much attention to the Real Estate Reality shows on TV….they are not that Realistic!!  For more information please visit us here.

When you are out and about looking for you next house you will run into many different Realtors and you will be faced with a few different scenarios on how to be represented.  Let me preface this by saying the best way to buy and sell Real Estate is to use a Realtor whom was referred to you; so obviously they have a good reputation.    There are a lot of good Realtors out there and like any profession, there may be some bad apples, but ask people you know if they can refer you a good one. 

At first contact when meeting an agent you have never talked to before you are going to be hesitant to be rushed to sign ANYTHING….. even if they were referred to you with a good reputation.  Over the years there has been a lot of confusion over who the agent represents…the buyer or the seller.  In North Carolina, the Real Estate Commission has tried to make it easier on the consumers (whom they protect) as well as the agents (whom they license).  What they came up with is a Working With Real Estate Agents brochure which, in a nutshell, explains Agency in a brief, non threatening brochure.  In most transactions there are two agents that one, represents the seller and the other the buyer.  It explains the duties of a Seller’s Agent, the Buyer’s Agent and also explains Dual Agency.  What the Commission also did was make it to where an agent MUST explain the brochure and have the tear off piece signed as proof that the agent explained the brochure…..IT IS NOT A CONTRACT.  The brochure must be introduced at First Substantial Contact, which is subjective, but basically if you are going to discuss your motives or your financial position with an agent, that is substantial contact.

So if you are looking to buy or sell Real Estate in North Carolina and you are asked to sign something called a Working With Real Estate Agents brochure, you have the right to not sign it and the agent will make note, but do not be threatened, just make sure the agent you are dealing with explains it to you and you can feel at ease to sign it…..for it’s just proof to the Commission that you have been informed of the basics of agency.  For more information you can visit us here.

In the past I have written a blog on whether the Raleigh area was a buyer’s market or a seller’s market.  When it posted we were currently a balanced market, which means buyers were about equal in number to sellers.  Well things change and currently it is safe to say the Raleigh area Real Estate scene is in a buyer’s market.  How do you determine?  Well, like anything in Real Estate you may have a few professional opinions differ, but most opinions on this subject should be fairly close together. 

Absorption Rates are determined through various equations to figure out how many homes on the market are being “absorbed” or sold within a given period of time.  Let’s take a year for example to make it easy.  First you would have to determine the number of homes that sold in the 12 months you are measuring….let’s say Jan-Dec.  Take that number and divide it by the number months…which is 12.  That should give you the per month absorption rate.  Take that rate and divide it into the current number of listings and that will give you the months supply of homes.  Supply of homes is a way professionals will determine a market to be favorable to a buyer or a seller.  If supply is 6 months it is considered to be balanced.  Anything over 6 months is a buyer’s market, anything below six months is a seller’s market.  Right now the Raleigh area is just over 6 months in supply so we are considered a buyer’s market.   BUT it can change, so stay posted.  For more information visit us here.