Are Buyers Really in the Market?

The answer may surprise you, but yes!  Many buyers choose the Christmas Holiday Season to relocate from other states or move in general because they have more time off from work and can do so.   These buyers are normally pretty serious and are looking for a transaction that will be smooth and close on time.   Will it be your home?   Be ready and available to approve showings- you never know if your home will be the next one sold.

If you would like to find out more about what makes our real estate team different here in this Raleigh Real Estate Marketplace feel free to give us a call at 919-235-6301.

What Makes Raleigh So Special?

There are so many ways that Raleigh is a great city.  We have  good roads and major interstates that make traveling easy to any part of the state and we are only a few hours from the beach and the mountains.   Major universities like Duke, UNC and NC State are nearby not to mention all of the technological jobs at Research  Triangle Park.   Sports, Music, Cultural Events, growing neighborhoods and much more await you.

Where are the Best Places in Raleigh?

Good question – I bet you will hear so many choices once you start asking around.   Our real estate team recently compiled a Top List of Restaurants, Events and Things to Do here in the Raleigh area and it is linked through our new foursquare tips section of our Raleigh Real Estate Website.

What is Your Favorite Spot in the Greater Raleigh Area?

We would love to hear from you!

Hedingham is an established golf community here in the Greater Raleigh Area and offers a quick commute to many areas in the Triangle.  If you would like more information about neighborhoods in Raleigh or Homes for Sale in the Greater Raleigh Area please contact our team at 919.235.0007 or visit our Raleigh Real Estate Website, www.LindaCraft.com

My neighbor rented a house through a real estate agency in the area however the new tenant is not mowing the grass and it is driving me crazy.   What do I do?  I have left a message with the real estate company.

Thanks, 

John  

Hi John,

Thank you for contacting me and I know that the grass must be very frustrating.  Normally it is the tenant’s responsibilty to cut the grass and most of the time it is stipulated in the lease.  Here is what I recommend:

1.   If you are able, talk to the tenant.  Maybe something is going on health wise that for some reason they cannot cut the grass this month.

2.  Contact the real estate company.  Find out if they are managing the property or if they only helped the owner lease it.

3.  Contact the owner.   You can normally find information through tax records or through google.

4.  Contact Your Home Owners Association President or Management company.  Many subdivisions have rules and regulations about grass and lawn care.  They should have the owners and tenant’s information on file and can contact them.

5.  Contact the City.  City officials can help if the property is a safety issue to other homeowners.

I hope that this helps,

Linda

You’re Invited To A Paper Shredding Party At Our Office!

Start cleaning out your file cabinets now and bring as many boxes as you want.   Everything will be securely shredded while you watch.

The Real Estate Market And The Economy Are Intertwined Like A Pair Of Ballroom Dancers.

The factor to look at to spot signs of improvement is an elusive characteristic called ‘consumer confidence’. Listen for media reports or search for it online. I think it’s hard to pin down, and easily influenced by media reports, sometimes despite the actual facts. One recent report says that the home values have dropped 33% , which is 2% lower than the ‘Great Depression’ which measured at 31%. How can that be believed?

What Is Really Going On In The Greater Raleigh Area Real Estate Market?

Real estate moves in 10 year cycles. The news media operates in a 24 hour news cycle, sometimes faster given the impact of social media. The market may be depressed, but it’s depressed from an artificial bubble that happened much worse in many other marketplaces around the country. Our market is down, but it’s not in ‘Great Depression’ mode.

For example, so far this week, our local reporting from MLS shows more homes sold than new listings that entered the marketplace. Sure, this is rare, but it’s positive news and I thought I’d share it with you!

Here’s The Bottom Line

It’s going to be difficult to rebound while consumers are concerned about their financial futures. Another reporting system that I trust, Realty Trac, reports that there are more than three years of foreclosures still in the pipeline which will effect housing. But it was good news to see a slow listing week in the Triangle!

If you’re up early Saturday, tune in to WKIX AM 850 to the Real Estate Show between 7:00 AM and 8:00 AM. I’ve been invited on the show to answer more questions about our local market.

If you have any further questions about the Greater Raleigh Real Estate Market or would like to talk with us my number is 919.235.0007

Have  a great week!

Linda

Game #1 I Want What I Want

This mathematical game is where delusional home seller looks at how much they paid, everything they have spent on the home over the years, the sales commissions other cost associated with the sale, plus the profit they dream of making and that is their price. They will win the price is right game someday but, it could take 20 years

Game #2 I Want What I Need

Similar to “I want what I want” except this seller doesn’t look at past expenses they focus on real need. I owe x, it will cost me x to sell therefore x plus x is the price I need. This seems like a real deal until you realize the first x included a refinance or a home equity loan that was spent on credit cards, cars and beach houses. 

Game #3 Two Wrongs Don’t Make a Right

The Tax assessor has valued my home at X so this is where I want to price my home. The tax assessor valued your real estate at a number to base a charge on. A tax charge to you. Not a credit. In 2010 the average sales price to tax value was 85%. Ask your tax assessor if he wants to buy your home at his price.

Game #4 I Like My House Better Than Your House

I like my kids better than your kids, I like my dog better than your dog, of course you like your house better than any other comparable properties! Duh!  It’s your house- you should love it.  But, you are not buying your are selling. The question is what does a buyer like better? The buyer doesn’t have your years of memories. They are comparing to commodities and they will not pay you more because you like yours more.

Game #5 Value-in-Use

I literally have people try to convince me that their house should be worth 10% more because they have more upgrades. 3 piece crown molding instead of 2, upgraded light fixtures, upgraded cabinet finish, painted garage, upgraded carpet and pad, larger deck, etc. Somehow they confuse what the builder personally charged them for upgrades as real value. They hope that expense financed over 30 years transfers as a credit on the sale and also appreciates in value. When you buy a new home the upgrades you add are double the real value cost. The builder is making a profit so you can have value-in-use. Those upgrades of yesterday may help your home sell today but, they rarely add anything extra to your bottom line.

Game #6 The Golden Palace

You can see this Raleigh area home seller a mile away because he is carrying a truck load of receipts to his listing appointment. Excel Spread sheets and files full of receipts from his overpriced purchases. He has added them all up and will let the buyer have everything at 50% off. 10 years ago when the house was built he put in a $5,000 dollar chandelier when most builders only gave $1,000 credit. The custom window treatments $15,000, landscaping over the years added up to $25,000 and his bath fixtures….gold plated. The window treatments are out of style, the chandelier is just plain ugly, the landscaping died and was replaced 2 times and gold plated…Are you kidding me? You will have to reduce your price 50% just to get the buyer to put up with your palace.

Game #7 Lady Luck is not so Lucky

So your roof leaked, air conditioning went stopped working  along with the water heater, dishwasher and disposal. The kids and dogs trashed the carpet so you replaced it last year. The total expenses in the past couple of years was $22,000. Nope, you can’t list your house for $22,00 more than your neighbors who haven’t replaced anything. Yes, theoretically the buyer is getting a longer insurance policy against future expenses but, they will only pay a fraction for lady luck

Game #8 My Dad is Bigger than your Dad

We started playing this game at 5 and even at 55 we are tempted to play it again when it comes to Raleigh real estate. It goes like this…Yes but, my lot is bigger, yes but, I have more square feet. It is amazing to me how many people believe if one sold property had a lot size of a 1/2 acre and they have an one acre their house will sell for more. The size of your lot is not an indication of value. And, square feet, oh my, doesn’t this one cause controversy. All square feet is not equal. Let me repeat, all square feet is not equal. You will not get the same value for attic and basement as the first floor. You will not get the same value per square feet if the room counts are the same. You will not get value for wasted square feet. Tax value square feet is wrong 90% of the time. So many sellers try to price it right by calculating average price per square foot times their total square feet. This is a sure fire way to price it totally wrong

Game #9 Don’t Put Off Till Tomorrow What You Could Do Today

Many sellers spend money preparing their home to sell and they confuse the cost of deferred maintenance with added value. If your house needed to be painted 3 years ago but, you didn’t do it the fact that you are repairing wood rot and painting now is not to make is saleable is not an added value. It is neglected home maintenance that is desperately needed and if you do not do it now your house will sell for 3 to 4 times less the cost of the maintenance. Deferred maintenance cost cannot be added to your list price. The buyer is not going to pay your for maintenance that you should have done 3 years ago. Sorry

Game #10 The Price is Right

You will always know when the price is right because a buyer will appear. Finding the right price is not a game of luck, chance, or denial. It takes years of experience and the ability to remove emotion from the formulas and methodologies most sellers want to use. And, sometimes it takes bravery to hit sellers between the eyes with the truth.  The buyer has always determined value. Yesterday I had a seller tell me her house was cuter than the other one in the neighborhood. It was the exact same floor plan and she wanted $25,000 more for her cute house. The only difference was the shutter color and her house was closer to a busy road but, she didn’t want to look at that. She was is Disneyland which is a fun place to visit but, you’re not going to buy it.

If you are thinking about selling your home now or in the future and want a REALTOR to hit you between the eyes with the truth about pricing it right please give me a call at 919.235.0007. I always say; “The truth will set you free but, first it hurts like crazy”. If you want your house sold, and not just listed, you need to hear the truth.

Buyers come in all price ranges and seek a wide variety of housing options and amenities. There are so many choices in the market that buyers shop to eliminate instead of buy. Here is what commonly happens in our market:

Home Buyers Want To Eliminate Each House They View Rather Than Choose It.

Sounds odd…..here is how it works:

Today’s buyer has a lot of choices, and therefore will look at as many houses as their house hunting time will allow.  As they view each house they look for reasons to eliminate it from their list. They may feel the house needs too much work, appears to be too small, or maybe they don’t like the seller’s choice in wallpaper or paint.  Even if the house is a good fit for their family and the reason for elimination is an easy fix, they have a tendency to remove it from their list and continue their search for the “Perfect House,” the one where they don’t have to do anything but turn the key to their new home.

As a professional REALTOR, part of my job is to “help my seller’s home become easier to buy instead of being eliminated.”  Staging the house in a way that is bright, cheerful and inviting will help keep it on the buyer’s list.  It is not that hard to identify potential items a buyer may find as a reason to eliminate the house.  You should listen closely to the advice of your agent and/or stager, for they have the past experience to know what is objectionable and what is not.

If you have any questions, or would like a referral to a good home stager, feel free to give me a call at 919-235-0007.

I hope that you have a great weekend,

Linda

In a presentation from Bank of America it was stated that they are processing 60,000 short sales a month and 1 out of 7 home owners are presently behind in their mortgage and headed towards foreclosure. Others are requesting loan modifications and forbearances which far exceed the number of short sale requests they receive daily. Most loan modifications are turned down and end up in foreclosure or short sale. The banks are drowning in paper and losses while they struggle to keep their head above water.   

What is Happening With All of  The Banks?

Collectively banks are sitting on 5 million foreclosures that have not re-entered the market for two reasons. One they can’t get to them and two if they released them all at once we would have a total meltdown when home values drop 50% over night. The banks do not want to foreclosure. They lose on average 70% on a foreclosure compared to 40% on a short sale.

How Does This Affect Triangle  Homeowners?

Homeowners in the Raleigh, Cary and Triangle areas are getting more and more distressed with the longer days on market and economical conditions that continue to worsen. The word at the conference is the market is not expected to hit bottom and start improving for 3 to 10 years depending on the state. It can’t improve until the number of distressed properties stop pouring in. To give you an example 4 years ago Bank of America processed 100 short sales per month. 100 then, compared to 60,000 now, is a radical difference.

What Do You Think, Linda?

 I personally believe the Triangle area of North Carolina is are a 3 year state in a price range of $500,000 and below and a 5 year state if the price range is over $500,000. I would love to be wrong and see it rebound today! By the way, the 3 day conference was not all doom and gloom information. It was advanced training on how to save families and neighborhoods from foreclosure. I have attended two of these conferences this year and have a webinar every week with the CDPE organization to stay on top of this quickly changing market.

What Do I Do If I Have More Questions or Need Help?

There are three quick ways to receive information.  First, you can visit my Raleigh Area Short Sale and Foreclosure Resource Website , or visit my Raleigh Real Estate Website’s Short Sale Information Center or you can just simply call me at 919-235-0007.