Merry Christmas from your Raleigh Area Real Estate Team!

For a special video message click here.

Let us never forget the sacrifices that were made for our freedom.

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

Happy Monday!

Linda

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

Goodnight,

Linda

I know each of you have your own stories like this one. When this happens to us we come face to face with the reality that life is short and unpredictable and we should not take it for granted. I know because of this lesson I have learned to always tell my husband I love him with every good bye and to take a moment to give my adoring dogs a quick rub behind the ear before I walk out the door.

Yesterday one of my employees walked into my door to tell me her dad was being flown into a Delaware hospital. She said; “They think he has a brain tumor and is hemorrhaging in his brain”. I told her to pack up and go immediately. She said she wanted to wait until he got there to find out what was going on. Her sister was with him and her brother lives close by too. She would leave in the morning. I walked into my office the next day and there she was! I said, “What are you doing here?” hoping Dad was fine and it wasn’t a brain tumor. She said; “I have one of our sellers coming into sign their closing docs and I wanted to get this completed before I left.” I appreciate her dedication and know she is very committed to our Team and every customer we have, but this one blew me away. I took a deep breath and calmly said; “Debra, we can take care of this, you need to go”. She insisted and said her husband was picking her up at 11:00 and they would hit the road. I know everyone has different ways of dealing with shock. I could only assume that she needed the distraction and the comfort her friends at work would provide her. We all spoke to her throughout the day as she and her husband was traveling through the traffic jams of Richmond and DC. Last night at 7:00 I called her and she was 15 minutes from the hospital and dad was still alive. Thank God! If you believe in prayer would you lift a few up for Debra and her dad? Thanks.

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