Raleigh Open House

If you haven’t gotten on the Holly Springs wagon yet you may want to soon.  Aside from being very close to the Capital of NC, Raleigh, and aside from being convenient to RDU and RTP, Holly Springs is probably one of the most family friendly small towns in North Carolina.  The history of the Town goes way back, to where it was actually part of Fuquay Varina (kind of) as it was Fuquay Springs back then…you should google that, but that is another blog.  Holly Springs has now grown so much that it has attracted not only big time developers for residential properties, but now it is now going to be home to New Hill Place….a very large shopping center situated on the corner of New Hill Road and Highway 55 Bypass.

When I say big…I mean it will have stores like Target, Dick’s, Marshalls, Michaels and Petco; not to mention a huge movie viewing venue by Frank Theatre. The project will be a few hundred yards from the I540 extension and basically minutes from most residential neighborhoods in Holly Springs….12 Oaks being one of them.  Very close, but not too close to where you live…just close enough to avoid traffic and a 20 minute commute just to go shopping in Raleigh.  That is the best thing about Holly Springs; you get the small hometown feel that you may remember when you were growing up….being part of the community, yet you are in a small town and only 20 minutes from Crabtree Valley Mall or watching the Carolina Hurricanes play.

To give you a better idea of the new development I have posted the link to the youtube video from the developer below.  Feel free to contact Barnes McQuade Realty for all of your Residential Real Estate needs; especially in the Holly Springs area.

http://www.youtube.com/watch?v=Fas6W6AtPlw&lr=1

So as everyone knows the last 5 years or so has not been the brightest and most cheerful times for our industry.  About 90% or so of the buyers out there finance their new home purchase while the remainder pays cash.  With financing comes banks, with banks come loan officers, with the loan in general comes the underwriters.

I like to jokingly refer to underwriters as people who dress in all black and sit in basements….with black walls and black phones where no one can reach to explain anything to about a transaction…they are the untouchables.  Black is in reference to the old cowboy shows referring to black as the enemy, but in real life, underwriters are just people like you and me that are doing their jobs and following the guidelines set forth by the actual lender/bank.

The point of this blog though is to point out something I see all the time when an offer comes in on a listing or when I first see a pre-approval letter for a client/buyer of mine.  First off, pre-approval means they have run your credit and verified other things on your application, pre-qualification, which has faded over the years justifiably so, is just a letter stating what “you” told them your income etc. was……not yet verified.  Lenders may be able to give a better explanation, but for this post it’s enough to say…just get a pre-Approval.

When a you receive your letter make sure the letter states that you are pre-approved to buy a certain property not the exact dollar amount.  For example, if you want to make an offer on 100 Main Street and it is listed at $150,000.  You are qualified for up to $170,000….  Don’t send in a letter saying you are approved up to $155,000.  Though you may know you are not going to pay more than $148,000 for the property, the seller sees how much you are approved for and there is a mental goalie in their head wanting the full amount of asking price…disregarding logistics of comps, etc.  The letter should state you area approved to purchase 100 Main Street only.  It is comparable to when a buyer is paying cash.  The seller wants a letter from the bank…simply stating there is enough cash in your account to purchase this property….not stating exactly how much you have in the bank, because that is no ones business.  There are probably many opinions on this as certain areas of the country may have certain protocols which I would like to hear.  What do you think?  Stu

If you are considering a move to the Raleigh area please take a few minutes to watch this video about the area.

With Real Estate there comes financing. If everyone paid cash wouldn’t the whole process be easier:) Approximately 29% of buyers paid cash in 2011 according to the NAR. With the age of the internet and a society allowing free and open competition there has been a boom of online lenders offering very competitive rates. With rates hitting all time lows and many homeowners staying put and not selling/buying, they are choosing to refinance. Refinancing+low rates+online lenders= the question of how to get loan documents signed….enter the Signing Agent.

When an individual decides to refinance their home with an out of state or online lender, there is no bank to visit because it is either out of state and/or an online lender with no offices convenient to customer. Since it is a refinance and the paperwork and underwriting is handled by the lender/title company and the loan package is the only outstanding issue to be resolved to “settle” the loan, many lenders/title companies choose a closing agent or signing service to hire a Signing Agent to print package and meet customer to obtain signatures. The Signing Agent must be a Notary Public because many places in the loan package need to be notarized.

Being a Notary Public is not the only qualification of a Signing Agent. Though a Notary Public is already educated and reviewed by their home state, Signing Agents are encouraged to become Certified and Background Checked. This involves proper training on how to execute loan packages and also gives the lenders and title companies confidence that the person meeting their customer knows what they are doing and will act in a professional manner. Each state has their own rules and regulations for Notary Publics and Signing Agents. Signing Agents CANNOT give legal advice when going over loan documents. Signing Agents in North Carolina for example can refer to documents in the loan package if asked a question, but CANNOT answer the question directly….they will refer customer to their lender for those answers. This is the case in most if not all states where Signing Agents are hired. Rates are still low so there will hopefully be a lot more BUYING in addition to refinancing in the near future.

Surveys are not as popular as they used to be; mainly because lenders generally do not require them anymore. Realtors are asked by their buyers if they should have a survey done during their due diligence period and most of the time the answer is yes,………. I would recommend one though you are not required to have one.

There are a few types of surveys, but the most widely used for the purchase of a residential property is a Location Survey. This survey includes everything found in a boundary survey in addition to the location of all improvements inside the boundaries. The main reason buyers would want a survey done is to make sure there are no encroachments on their perspective property. This can be a fence, driveway, trees, easements or an outbuilding. Also, a survey can identify setback lines as well as flood zones.

One major reason to have a survey has to do with Title Insurance. Although title insurance companies may provide lender coverage without a new survey, the owner’s policy may not. It is always a good idea to contact a NC Real Estate Attorney if you have in depth questions on whether or not to have a survey completed and of course if you need legal advice. As always, a good Realtor can never tell you what to do, but can advise you on procedures and best practices. When buying a home a survey is probably never a bad idea.

Maybe a weird, abstract title, but as you read on further it may make sense. As most everyone in the United States knows, the housing market has been dismal to say the least in the last 5 years or so. All anyone has to do is turn on the Television to CNN, FOX, MSNBC or any of your favorite news stations and you will be updated daily on housing starts or any other leading factor which is a major contributor to our economy. It has been said that the economy has 20 year cycles that end in a downward spiral, then ultimately recover. This latest downward spiral had a major effect on the housing market, which many will argue successfully was the initial cause of this economic uncertainty we are currently experiencing. So in turn those professionals that rely on the housing market….REALTORS especially have been staying the course hoping things will be better, which there have been many signs recently that things will get better soon.

This leads to the point of this blog:) Detroit has been one of the hardest hit cities in relation to the economy and especially the housing market. It seems they cannot catch a break and many residents are just wondering when things will get better after such a “long cold winter”….that is a metaphor of course.

Enter the Detroit Tigers and the Detroit Lions. The Tigers are the Major League Baseball team for those of you don’t know and they almost made it to the World Series this year. The Texas Rangers edged them out last week for the spot, BUT this was their best season in over 6 years showing a glimpse of hope and having many fans “seeing the light” just around the corner. Same thing goes for the Detroit Lions, the professional football team in Detroit…. “Just in case there are non-sports fans reading the post”. This year they were undefeated until last night. They are now at the time of print 5-1, by far the best record in over ten years. Hence, the light is now being seen by many in Detroit for Baseball, Football and the economy.

For those of you that are concerned about the economy and our country in general, be sure to notice the signs that give us hope, whether it’s the stock market getting a little better, employment jumping just a tad, or those things that are hidden that you will not see unless you scratch the service and believe signs are given to us everyday, it’s just our job to notice them and stay positive. Barnes McQuade Realty is staying positive, we hope you do also.

There are many “reality” shows out there that represent Real Estate in one way or another, BUT “reality” probably isn’t the right category for them.   I would maybe suggest having them on during the day with the soap operas as they are about as realistic as the a town with all good looking people (the soap opera folks:).

There is one show that I do watch quite a bit about home inspections…you probably know the one I am talking about.   I actually like it because it does give good insight on how homes are built and things to look for…..however, there is a common theme among them all.   For one, most homes are 20 to 30 years old, are on a sloped lot where water is not draining correctly and obviously have not been cared for properly.

Which leads me to my biggest complaint.   The buyers.   The episodes have always had buyers that are feeling they were robbed and just led in the wrong direction by the inspector or their Realtor, but a recent one just made me lose all empathy for the buyers.   Bottom line is that in most cases they are bashing the inspector because he missed something or put something on the report like “consult electrician” and you hear the buyers  whine about…..”well he didn’t say what to do to fix it” or “he didn’t say how bad it was”…”he just said consult an electrician”…all of these quotes are obviously in a whiny voice.   The home inspector is there to point out things that are not up to code or functioning properly….IT IS UP TO YOU THE BUYER TO DECIDE WHETHER TO SPEND MORE MONEY TO MAKE SURE IT’S OKAY OR WALK…YES WALK.   If there are too many problems with a house you should walk or do as the inspector says and CONSULT a proper contractor.   Caveat Emptor.

The short of the show is this…they search for buyers who basically ignored all the inspectors recommendations and now the house is crumbling…hence, the episode that really got me was a couple that bought a house with a HUGE open floor plan..where inspector said “support beams have been removed…consult a structural engineer”…guess what the buyers did.

About two years ago I redesigned by business cards.   I wanted something simple so people could easily find my number and website…very important things if you are in this business.   I also wanted to show I am also a human being that goes through the trials and tribulations all other humans do….said another way, I am like you.   So, I put my picture on the back of my card standing in front of a playset with my family (blurred/unfocused) in the background…..this is what I work for anyways right?   But the most important thing I added to the card was the words underneath the picture….. “Real Estate Is About Relationships And Representation”.

It is not just Real Estate that is about Relationships…that is what life is about…you can have good ones or bad ones; but you can’t escape them, it’s part of life.   As a Realtor, my job is to help people/families find a home suitable for their needs or to help them sell their current home.   It is never about a commission.   It is about the client and their needs.   Your Realtor should never get personally involved/emotionally attached to a transaction, but they should empathize and put your interests above their own.   I hear many horror stories of an agent that just does not “listen” to their clients….but I also hear the praise of good agents out there that have stayed true to the profession and “represented” their clients  and their interests.

I have a friend from college named Tommy Spaulding that actually wrote the book on this.   In “It’s Not Just Who You Know”  Tommy makes it very clear that relationships  are the key to everything…business just being one, but moreover relationships link you to many different areas in life whether is business, health, sports, kids or whatever part of your life you are thinking about, a relationship with someone is grounded there somehow.

In Real Estate you have to have someone working with you that cares about the outcome and not just for themselves.   When choosing an agent to represent you in buying or selling a home you should talk with more than one agent and try to get a feeling of their motivations…..remember the ultimate goal is to get the most for your house or to get the best deal on a house that you are buying; and your Realtor is there to help, but just make sure their aim is true.

Real Estate is a very complicated business and from the outside, most consumers do not know how much goes into a transaction.   From the very beginning where you are looking to buy a home to the last step….closing, you will hopefully have a Realtor guiding you through the process; Realtors are not sales representatives, they are consultants and advisers who will hold your hand through the process.

Things may be different depending on the state you live in, but in North Carolina you DO NOT own the house you just bought until it is recorded with the Register of Deeds.   This gives “constructive notice” to the world that you now own this property.   So there are 2 main steps to the process.   First you have a settlement where typically you will have a Real Estate Attorney handle all of the paperwork and lender documents required to purchase and convey the property…..this is called Settlement.   The second part is called Closing.   This is when the Attorney records the deed (of trust) with the county.   Then, it is officially yours.

So let’s say you have a settlement at 3pm on a Friday afternoon and all of your belongings are in a moving truck sitting in front of your new house.   You may have signed all the paperwork with the Attorney, but if they cannot get to the courthouse by closing time on Friday afternoon, you will not own that house until it is recorded which is now more than likely Monday morning.   Most Realtors are going to advise their seller clients to NOT release the keys until recording has taken place.   Why?   If they released keys on Friday and let the new buyers move in, but do not really own it yet, WHAT IF…….?   You name it, anything can happen; a trip and fall, a tornado….whatever, the sellers are more than likely the responsible party since they still “own” the property.  

Obviously, if you have more in depth questions about the “what ifs” you should consult your Realtor along with a NC Real Estate Attorney.   For more information please visit us at our website.   Hope this helps.

So with social media very abundant and the masses are so into “sharing” every detail of their lives….there is something you should know.  If you are selling your home it is not the most prudent thing to do…..spilling the beans online.

Don’t get me wrong, Facebook, Twitter, LinkedIn et al are great ways to keep in touch with old friends, school mates, relatives etc., it is also a great way to generate business and create new contacts within your field, I have an account on all of these sites and more. BUT, too much information is just that….TOO MUCH.

I am not talking about the status updates that no one really cares about like “just dropped kids off at daycare”, “just checked in to Starbucks”, “OMG, I just had the best piece of cake”……not sure who would really care about those things, but I am talking about if you are selling your home……stop talking….OR at least make sure your settings are set to where only friends can see your updates.  All too many times, I see people giving updates on the number of showings on their home, the amount they will take, the new home they just bought so they are willing to give their home away.  These things are confidential and when a buyer gets hold of the information the offer you get is going to be well below what you would want….you just showed your cards.

Who would be looking at this information…..?  EVERYBODY!!!  

If you do not adjust your settings to where your posts and updates are not set to just friends, etc., the whole world knows your business…including other agents that represent buyers looking for homes in your neighborhood.  The first piece of advice is what I just shared….check your settings and if you must update, be careful.  Another piece of advice is don’t give any details about your current transaction.  If you really like a house and have made an offer…don’t say things online like “we would do anything to get this house” or “waiting on seller to respond”….”fingers crossed”, this shows your cards.  I recently heard about a transaction where the buyer for a local listing was singing like a bird and didn’t have their settings blocked….so the other agent and sellers could easily access that page and basically know the next move of the buyer.

Information is very easily accessed these days…all you need is the name of a person and google….  be careful.