Today I had an email from a REALTOR friend who works in another state telling me that an 88 year old man had walked into a local real estate office and shot the Broker in Charge because he wanted his earnest money back. I have seen many home buyers, and home sellers dispute over who should receive the earnest money when a purchase contract is breeched. Usually the home buyer or home seller hires an attorney to write a strong letter stating their case for why it should be returned to them and it is settled outside of court or in small claims court. Shooting the Broker in Charge of a real estate company over a dispute that is totally between a buyer and seller is the most extreme case I have ever heard of. What is the world coming to?

Earnest money is the deposit a buyer makes to secure his contract to purchase a home. The purpose of earnest money is to show that the buyer is “earnest” about making the purchase. Earnest money is held in a trust account (Normally by the listing company but, can also be held by the buyers agents company or an attorney) the earnest money is held until closing and is then credited to the buyer’s purchase. Real Estate contracts are written very clearly when and how buyers forfeit their earnest deposit. However, when a contract is breeched both the buyer and seller must agree in writing to whom the earnest money shall be released to. Until this agreement is made (in writing) the Broker in Charge must hold the money in a trust account. It can never be released until the buyer and seller have agreed in writing how and to whom it will be released or until it goes through the judicial system.   Many real estate companies hold earnest money for years until disputes are resolved between home buyers and sellers.

Evidently this elderly man changed his mind about buying a house, believed he was entitled to his money, didn’t like following the trust account rules and regulations and decided to take action against the Broker in Charge instead of the seller. I wonder if he wishes he had kept his gun in his holster and called an attorney instead. Life in prison does have the same sting when it starts at 88 years of age.

Linda

Congratulations to all of the 2008 Parade Winners!    We certainly have some beautiful homes this year.   Feel free to stop by my office for a Parade Book filled with all of the floor plans and locations of all of the homes.    To check out the list of winners click here.

Happy Monday!

Linda

Hi Everyone,

Last week the Wall Street Journal economist reported that the bottom has been reached in the metropolitan cities and they predict a return to begin immediately in those cities. They also stated that other areas are expected to follow soon. The lowering of interest rates into the 5% range has helped give every area a spark.

I spoke to a top agent in Las Vegas, an area that was hit first and hit hard and she said from January until July she only had 4 sales. In August she had 8 sales and she reports the phones are ringing off the hook. Sounds like the economist nailed this one.

Other rural areas around the county are reporting that prices have fallen to where they were 5 to 10 years ago and they believe it will be next year before they hit their bottom and begin to see a return in their market.

In Raleigh, our real estate market continues to be one of the strongest in the nation. Our prices have fallen mainly by the amount of appreciation sellers hoped to receive. Most sellers price their homes by taking past sales and adding 8% to 10% appreciation. What we are experiencing is the homes that have closed have sold without “hopeful appreciation” added to them.

Many people have a false sense of our Raleigh reality because they see a lot of homes failing to sell or many sellers making numerous price reductions. This is only because the seller didn’t price their home in today’s market. They used old school thinking of adding appreciation to last years prices. This formula doesn’t work in a down market. I am rarely seeing sales price below their original investment. When I do see this it is because they purchased their home at the end of the peak or in the past 18 months. Most closed prices are equal to where homes were selling in 2006. According to our local TARR Report the closed sales in Raleigh have a 2% gain. People who purchased in 2006, 2007 and 2008 in Raleigh will see strong appreciation in the next couple of years. When the National real estate market returns to their full speed it will be light speed in the Raleigh real estate market. We have so many buyers sitting on the fence waiting for a sign. Don’t wait to long or you will miss the best buying season in history.

The News Media reports on the National Real Estate Market. You can’t judge what the temperature is in Raleigh by watching the weather report in Florida. In Raleigh, you need to buy now. We have a great market. Here are facts from (MLS) Multiple Listing Service.

Raleigh Homes For Sale ….4,473

Raleigh Homes Closed – Year to Date …. 5,181

Raleigh Pending Sales …967

Raleigh Absorption Rate …4.6 Months (A normal market is 4 to 6 months inventory)

If you have questions, or would like to see a copy of the Triangle’ s T.A.R.R. Report, feel free to call me at 919-235-0007.

I hope that you will enjoy this great weather we are having this weekend.  My team and I will be at the Caniac Carnival today with the other 20,000 fans celebrating the 2008-09 Carolina Hurricanes Season Opening Week.  This event is held at the RBC Center in Raleigh and runs from 10 am to 2 pm.  Our team will be there with a large inflatable slide and a drawing for a 5 day cruise for two.   At 3 pm the Carolina Hurricanes will offer a scrimmage game that is free to the public.  I hope you will come by to join us.

Linda

There is nothing more frustrating than having a goal of selling your home and waiting, and waiting, for the right buyer to come along. It is a lot of work keeping a home ready for showings day after day and let’s face it; no one likes to wait for anything. Fast food restaurants and microwaves seem slow when we are waiting. Right now many sellers all around the country are wondering what to do. They need to sell now and it just isn’t happening for them. I have good news coming so don’t get impatient with my writing. Please read on.
 
I met with a salesperson yesterday to renew my yellow page ad and he had a sad story to share. He said he moved to Raleigh two years ago and would love to buy a home in this great real estate market. However, he can not sell his home in Ohio. Imagine this; two years on the market, several real estate agents, many price reductions, wife pregnant with twins, and wasting money on rent while carrying a mortgage miles away. He is at wits end and needs some answers fast. Later that evening I started thinking about something he said that I hear so many times from home sellers. “I have changed REALTORS several times.” They have all been nice and I really like the one I am with now but, my home isn’t selling.” So many sellers make a decision who to entrust one of their largest assets to base upon who has the most enjoyable personality. Or who grew up in the same area, went to the same school or has the same dog. They hire a friend of a friend, cousin who just got in the business, or the agent with the fanciest listing presentation. A high gloss brochure in your favorite color does not guarantee you have hired a marketing genius.  The other huge mistake sellers make is hiring the agent who tells them they can get more money for their home. Where you price your home and who to hire to get your home in front of the most qualified buyers are two very distinct and different decisions. Listing with the highest bidder or the agent who says “I will cut you a deal on the commission if you hire me” is a recipe for disaster. RUN fast or you are going to be sucked into “when it sounds too good to be true it always is trap”. 
 
So, after thinking about this problem, I woke up at 3:00 am, Raleigh Eastern standard time, and had a solution pop into my head. Do you ever do that? Wake up in the middle of the night with an answer to something you pondered all day? I hope I am not the only one who does this because my husband (and my real estate Team) think I am nuts when I send emails and write blogs in the middle of the night. So here it is…The middle of the night answer from Raleigh Real Estate Expert Linda Craft to help everyone in the world make better home selling choices…
 
Do you know that 85% of all buyers use the Internet to shop for homes? Knowing this fact, doesn’t it make sense for everyone to hire the REALTOR in their market who has the greatest Internet presence? The REALTOR who draws the most buyers to a web site will always make more sales. They control the market by having a steady stream of buyers. They increase your opportunities to sell because more people view your home. Placing your home in front of 85% more buyers is exactly what you need to give your home a selling advantage. These buyers are also more qualified because they research and eliminate many homes online and therefore look at fewer homes before they buy. So how can you be sure that you are hiring the best online REALTOR to maximize your exposure? They all say they have great Internet exposure. They throw out names like Realtor.com (where your home gets lost among millions of other homes. Realtor.com isn’t enough.) The answer is simple. Go to compete.com. Type in the names of all the Realtors you are considering. Pick up a home magazine to find their exact web site names. Compete.com is a neutral third party company that compares one web site to another. It will let you know who is the best on facts not feelings about the personality you clicked with the best. You will be surprised at the results. Some REALTORS have thousands of buyers coming to their site. Others are invisible and so is your home. Check it out and let me know what you think? Oh and please check out Lindacraft.com for Raleigh Real Estate and compare me to the top REALTOR in your area. I personally believe you will find that I fall into the category of REALTORS who have several thousands times more online buyers. But, I also have a husband who is an Internet genius who coaches, speaks and writes real estate articles for national magazines. InternetDR.com.
 
Now that you know how to find the best online REALTOR using Compete.com stay tuned for my next blog where I will tell you what to do to make sure your home isn’t discovered online and then eliminated with a click. But for now I am going back to bed. I have two listing appointments tomorrow and a meeting with a seller to sign a sales contract, I do not want to be yawning all over them that would be rude and make a horrible first impression.

Goodnight,

Linda

I had the pleasure of meeting Brenda Miller, my Listing Manager, over seven years ago when she came to work for my team. Not only is she a great employee, she and her family have been involved with law enforcement for over twenty years. Brenda, her husband, Randy, and their son, Jason, have all served as police officers over the years. Randy recently retired from the Raleigh Homicide Division and Jason is currently a Raleigh police officer.

Brenda mentioned in our team meeting this week that Randy would be involved in an upcoming Memorial Event to honor the families of fallen police officers. Please read his letter below. If you would like to help, please contact Brenda at our office- 919.235.0007.

Thanks,
Linda

To Family and Friends,

On May 10th, 2008, I along with 250 other Police Officers, all members of the Police Unity Tour Chapter IV of Virginia, will travel 250 miles on our bicycles. Our journey will begin in Chesapeake, VA, and end at the National Law Enforcement Officers Memorial in Washington, DC. Several hundred Police Unity Tour members from other Chapters will join us at the memorial. On October 1st, 1962 President John F. Kennedy declared May 15th as the National Peace Officers Memorial Day. On October 15th, 1991 the National Law Enforcement Officers Memorial became a reality.

We are doing this to honor our fallen brothers and sisters and to raise money for the National Law Enforcement Officers Memorial. I will be riding in honor of Raleigh Police Officer Charles Radford Paul III who was killed in the line of duty on September 10, 2002.Last year 2007 became the deadest year for our law enforcement officers. There were 180 officers killed in the line of duty, protecting people such as you and me. My goal is to raise $3000 in pledges by April 30th. I’m asking you to help me reach this goal by pledging your support. You can either send your pledge via the mail or make a secure donation online. Go to http://www.policeunitytour4.org, click on the sponsorship link at the top of the page, then click on “sponsorship info”, and click on the “DONATE” button with the Visa and MasterCard logos. I have also attached a sponsor form that can be used to mail donations. I will make this journey, remembering that you supported this great cause and me.

Thank you,
Randy Miller

Come out and join us tomorrow downtown as we join over 60,000 people for the Raleigh Christmas Parade.   Our team has been busy preparing our moving van today which will pull our float tomorrow.   Linda will be on the float along with others from our team.   The Parade starts near the corner of St. Mary’s and Hillsborough Street  and will start at 9:30 am.   Hope to see you there!

Congratulations to Derrick and Beth Alston and Tom Cooper who were the winners of this month’s hockey ticket drawing.  They all attended as our guests and enjoyed the game from Sections 114 & 115.   Please register on our home page link so that you can be our next winner!

Go Canes!

10. You’ll get a jump start on the marketing and advertising for your home. You can get ahead of other sellers waiting until January or springtime to list their homes.

9. You can sell now but specify a delayed closing date or extended occupancy if agreeable to all parties.

8. Showings can be restricted during personal and family events.

7. January is typically the month for transfers. Transfers cannot wait until spring to buy a house. Your home must be on the market now to capture the attention of these buyers.

6. Many people want to buy before the end of the year for tax and financial reasons.

5. Buyers have more time available to look for houses during the holidays. People have more time off to look and move into a new home.

4. Buyers are more emotional during the holidays and often base their decision on the warmth and good feeling they receive when viewing your house.

3. Houses show better when decorated for the holidays with the bright lights, festive colors and pleasing smells associated with the season.

2. Serious buyers have fewer houses to choose from during the holidays, so properties on the market have less competition, including yours…

1. People who look at property during the holidays are serious buyers and more ready to make a decision.

If you are interested in listing your home please contact me at 781-9298. We have qualified buyers who are looking for homes.

Hope you have a safe week!

Linda

Hi everyone,

 I was very excited and grateful to hear that our team has recently moved up to the #17 RE/MAX Team in the US.   With our ever changing current market we have seen a drop in home sales since August.  However, thanks to all of my clients and people who help support us our team has contined to remain strong.    Thank you for all of your referrals and repeat business.   We appreciate you!

 Linda

Good Morning Linda,

Both Charles and I wish to publicly acknowledge to you and your organization our deep appreciation for your participation in the headstone replacement ceremony held September 23, 2007, at Oakwood Cemetery.  It was a gorgeous day and all went as planned.  The music, the reenactors and featured speakers all added to this solemn ceremony which gave the correct names and identity to these three American soldiers.

The Veterans of the Civil War who we honored and all those resting throughout the United States continue to be remembered.   Lacking the support of groups like yours we could have never found a way to pay this small tribute here in Raleigh.

Again, Thank you.

Bob Farrell & Charles Purser