Larry's Blog

Turning Point for Real Estate

Larry Bunch (United Country - Blue Ribbon Realtors) — Wed, 06 Jul 2011 16:41:45 -0700

"Historic Turning Point for Real Estate" - A group of economists and real estate experts were "polled" and they tend to agree that home prices will reach bottom this year.

Seems like I heard that last year. Now the are predicting home prices to start increasing. I don't recall seeing anything in their remarks about why people are not buying. I don't recall seeing anything about unemployment hitting and remaining at the highest level in years. I have not heard anything about the plan to increase the down payment for buyers to 20%. How do these factors affect the price of homes? I think they will affect it in a big way.

Demand for a product is what drives the price. Doesn't matter if it is homes or widgets. At this time, I don't see a huge demand. Partly because of unemployment and partly because home prices became outrageous.

We had a lot of economists and real estate experts in the early part of this decade. A lot of them thought the market would continue the strong sales we were experiencing. The were wrong then and I think they are wrong now.

NAR's Planned Increase

Larry Bunch (United Country - Blue Ribbon Realtors) — Wed, 06 Apr 2011 08:04:06 -0700

As I understand this ruling, the court struck down a provision of the 2002 McCain-Feingold Act that prohibited corporations, both for-profit and not for-profit and unions from broadcasting electioneering communications.

The court did uphold requirements for disclaimer and disclosure. The case did not involve the federal ban on contributions from corporations or unions to candidate campaigns or political parties. Nor, did it lift the ban of foreign corporations giving money to political campaigns.

From what I have read, it did not change political fundraising, as we have known it for the past 100 years. Corporations still cannot donate directly to politicians. Of course, you have to get away from the daily news cycle to find this out.

NAR has been at the forefront in defending the REALTOR® profession. Two recent episodes come to mind. One was awhile back where they spoke of bringing a re-sale home up to today's energy efficient standards and the other one concerning mortgage interest deductions. Then a couple of years ago at the state level where counties were voting on leveling a higher tax on homeowners when they sold their homes.

I agree we need to be diligent and back those who work for the real estate profession, but I don't agree with raising our fees at this time. It seems to me it would be better to redirect some of the funds already being collected. Funds such as those being spent on the television ads now running.

Are you better off today than you were four years ago?

Larry Bunch (United Country - Blue Ribbon Realtors) — Wed, 16 Mar 2011 13:43:55 -0700

How about two years ago?

How often do you stop at the pump to fill up? Feeling a pinch in the wallet? We all are. According to US Energy Information Administration, pump prices have risen from approximately $1.60 a gallon on January 8, 2009 to approximately $3.55 on March 8, 2011. With these prices, the cost of fifteen gallons of gasoline a week will be about $2,769.00 vs. $1,248.00 over a fifty-two week period. That's an increase of approximately 121%. If we continue relying on foreign oil and prices continue to rise to the levels in Europe, we could be paying over $7,000.00 per year based on $9.00 per gallon. Maybe Bernie Marcus was right, time to invest in horses again! Buggy whips might make a come back.

Meanwhile, housing starts post their biggest decline since 1984 and U-6 unemployment is at 15.9%. Food prices going higher, home heating and cooling costs going higher..........

Say it again, when was the recession is over?

Hermitage Place

Larry Bunch (United Country - Blue Ribbon Realtors) — Wed, 16 Mar 2011 10:19:45 -0700

Pictured (Downtown Waxhaw): Just to the east of downtown Waxhaw, NC on highway 75 is Hermitage Place. A small subdivision of homes where the average list price today is less than $175,000. Over the years I have listed several homes in Hermitage Place and have been successful in getting them sold. A good mixture of floor plans and modest prices with a close proximity to shopping gives this neighborhood a special flavor.

Home sales in the Waxhaw, NC area

Larry Bunch (United Country - Blue Ribbon Realtors) — Fri, 04 Mar 2011 11:18:13 -0800

Waxhaw, NC home sales in the 28173 zip code appear to be showing a nice increase over the past twelve months. According to data I pulled from the Carolina MLS, this years twelve month total shows an increase in home sales of around 12% year over year through March, 3rd. Months supply in the Waxhaw area is about nine months, which is getting closer to normal. With the unemployment rate going down, slow but steady, maybe home sales will actually pick back up. Now if the interest rates will stay low.

Waxhaw, NC is located a few miles south of Charlotte, NC near the South Carolina border.

This information may be subject to errors and should be verified by the user.

Home sales on the plus side……..

Larry Bunch (United Country - Blue Ribbon Realtors) — Sat, 12 Feb 2011 09:27:23 -0800

January home sales for Union County, NC were up almost twenty percent over last year. For the Charlotte MLS region, they were up about 3.7% over last year. This is welcome news for area buyers and sellers. Price is very important. Still very much a buyer's market.

Home Sales Appear to be on the Increase for Waxhaw Area Homes

Larry Bunch (United Country - Blue Ribbon Realtors) — Sat, 05 Feb 2011 11:18:35 -0800

I just pulled sales numbers for January to date from MLS. Home sales appear to be on the increase for Waxhaw area homes and all of Union County, NC. This coupled with the 26.5% increase we had in December, 2010 is a welcome site.

Waxhaw, NC is just outside of Charlotte, and Charlotte was hit hard by the problems in banking. Bank of America is headquartered from here and Wachovia was until taken over by Wells Fargo.

It's still too early to get overly excited about homes sales in this area since years 2009 and 2010 were two of the slowest years we have had since before 2003, but maybe sales are turning around. Owning your own home is still the Great American Dream.

What is Net Neutrality? How does it affect me?

Larry Bunch (United Country - Blue Ribbon Realtors) — Wed, 22 Dec 2010 23:06:08 -0800

For most people this is such boring stuff, and by design, it is hard to follow. Who cares what political bureaucrats and politicians do as long as what they do does not take away my tech toys, or remove some of the worthless rubbish on television that is used to dumb us down?

Net Neutralityis the beginning of control of the airwaves and internet and is being pushed by one party. If you cannot control the speech, then figure out a way to shut it down or control the speaker. This is just one of the things being sneaked in without any fanfare, and we sit back and ignore it. By a vote of 3-2, three unelected government bureaucrats in the FCC went against the wishes of congress and a judge to move forward with this program.

Some of you might welcome this, to others; you see it for what it is, one foot in the door. Here in North Carolina, several years back, the politicians wanted more money to spend. Instead of looking for something to cut, they came up with the idea of more tax (it's what politicians do). They planned to add what would have been a sales tax on our homes when sold. This tax was going to start out low, but once passed it would be easy to increase when needed. The money grab idea was voted down by a huge margin. All they needed was a foot in the door, just as this Net Neutrality. Read this article from the WSJ. I believe you will find it interesting.

Someday we will wonder what happened to our freedoms. Maybe?

This is "NOT" the "new norm"

Larry Bunch (United Country - Blue Ribbon Realtors) — Thu, 09 Dec 2010 13:37:35 -0800

I've worked in restaurants, mills, factories, stores and offices. Managed payrolls, sales and inventory.    Worked on day and night shifts.   Hired and fired (once), but I have never had to draw unemployment.

Don't take that the wrong way. There is nothing wrong with drawing, but there is something wrong with HAVING to draw for two or three years. That was never the intention.   It is not something to strive for as a new career goal. I wonder if most people know where the money comes from. Remember the government cannot give you something unless they take it from someone else. Here is a link to an article that might be of interest.

In the past, when we actually manufactured things in this country and jobs were easier to come by, continuing to draw unemployment was unheard of. Some would do anything   not to draw. Now, the unemployment rate is sitting at 9.8% and who knows where it will go from here. Surely, none of our leaders in Washington can help. Most of them have made a career out of politics.   Let's face it, if you have been in office for twenty, thirty or forty years, you have lost touch with the real world and it is time to go home. Get a job, or enjoy your retirement and benefits from the taxpayers, but please just go home! Your oversized egos mean nothing to the rest of us. It seems most of those people have a law degree. There is a fine career.

Regarding unemployment, we've been here before, but I don't think I heard anyone then saying it was the "new norm".     Washington might put obstacles in our way to try and make it the "new norm", but left to the American people; we will find our way back. See chart below-SOURCE: BLS

I refuse to have a defeatist attitude about this country. We are still the greatest country on this earth. Freedom and Capitalism have pulled millions out of poverty. Our country has freed or helped to free millions of people around the world. I am tired of the news media and a few politicians telling us how bad we are.

What is a QR CODE?

Larry Bunch (United Country - Blue Ribbon Realtors) — Wed, 24 Nov 2010 15:03:48 -0800

I like technology, but don't stay up with it like I should. Maybe I'm late on this, but thought I would post it anyway. In our sales meeting this week we talked about QR Codes and how we can use them. Today I watched a webinar from EXIT Realty with Jeff Lobb giving us more details.

These could be put on all your flyers and signs. You could also have a website for each listing and create a QR Code for each. Put them in your blogs, etc. There are many ways they can be used, and best of all, most appear to be free, which is right in line with my budget. You will need the app on your smart phone to read the code. That's free too. Jeff said his favorite is QuickMark. He did say not to make them too small and cause them to blur.

Here is a site to create your own: http://qrcode.kaywa.com/

With that said, thought you might try these. Please let me know if they work.

Home sales for the Charlotte, NC area (January-October)

Larry Bunch (United Country - Blue Ribbon Realtors) — Wed, 17 Nov 2010 17:29:36 -0800

Home sales in the Charlotte market are at a meager 1.0% above last year. Starting in July we have had double digit decreases each month.

According to information from the National Association of REALTORS®, NAR is "urging the mortgage lending industry to reassess and amend their policies so more qualified home buyers can become homeowners".

NAR says, "FHA, Fannie Mae and Freddie Mac account for more than 90% of the mortgage market and lenders refuse to make loans unless FHA will insure them or the GSEs will buy them". NAR also says "stricter FHA and GSE underwriting rules eliminate many buyers with credit scores as high as 750, and lenders are imposing credit overlays of their own, restricting the availability of credit".

So, where does that put your average buyer who can afford a home and has the credit to do so? It seems like we are overreacting again, only this time it is the other way. A couple of years ago loans were too easy to come by. Way to easy! Now lenders have tightened up so much that some buyers with good credit scores are having trouble.

SOURCE: CMLS

Autumn Festival in Waxhaw

Larry Bunch (United Country - Blue Ribbon Realtors) — Sat, 09 Oct 2010 17:58:44 -0700

Autumn Festival in Waxhaw - Lots of stuff but the one I really liked, other than the little puppies they had for adoption, was the woodwork by Paul Helms of Monroe. He has two trucks with the beds, grills and some work inside the truck he has redone with wood. He also makes custom Tack Trunks. See more photos at here.

Home Sales Through September

Larry Bunch (United Country - Blue Ribbon Realtors) — Sat, 09 Oct 2010 17:40:47 -0700

Home sales in Union County and overall in the Charlotte area show a slight year-to-date increase for 2010 when compared to 2009.

Union County home sales have been down since July when compared to last years sales. Year to date, home sales are still showing a slight increase after posting large gains in April, May and June of this year.

It remains a buyer's market and interest rates are low for those who qualify and are planning to buy.

HIGH END HOMES POST LARGEST PERCENTGE GAIN IN SALES

Larry Bunch (United Country - Blue Ribbon Realtors) — Tue, 21 Sep 2010 15:09:01 -0700

Recently I read an article that said nationwide home sales above $1,000,000 are up. Are you surprised?

In the Charlotte market, home sales of $500,001 - $1,000,000 are showing the second largest increase. Second only to $1,000.001 and up. These are the latest numbers from the Carolina Multiple Listing Service through August 2010.

Why are the highest price points showing such a large increase in an economy like this? It is a combination of reasons:

If you are looking for a home in this price category, there are some great homes now on the market.
Interest rates are very good if you have the credit and income. Some jumbo loans are lower than 6%.
Some buyers in this range can pay cash and negotiate an even better deal. According to information pulled from CMLS, almost 20% of homes above $1,000,001 were sold for cash with a savings of almost 15% between list vs. sold price. Cash may not have been the only factor contributing to the lower price, but it had to be a big part of the decision making process.
As in all price ranges, home prices have dropped. Homes in this range might have brought 20% - 30% more just a few years ago. Real estate remains a good investment. When is the best time to buy, during peaks or valleys?
In the Charlotte area, banks are still large employers. Charlotte is also a market with many regional and national headquarters.
For those moving here from out-of-state, leisure time can be at the mountains or the beach. The central location in the state makes it an easy drive either way.

Unemployment Rates by State

Larry Bunch (United Country - Blue Ribbon Realtors) — Thu, 19 Aug 2010 07:53:31 -0700

I don't know about you, but I'm tired of hearing from the so called news pundits, economists and politicians about how this economy is improving or at least it is right on the verge of doing so. This chart pretty much says it all by showing a view of unemployment rates by state. I try to be optimistic, but that can only go so far. This problem should have been tackled two years ago, before any more laws and bills were passed. Until the jobs situation improves, home sales will not improve. Solve the jobs situation and that will solve many economic problems. Of course, it will not solve all. You still have the spending!

3505 Sandberry Dr

Larry Bunch (United Country - Blue Ribbon Realtors) — Thu, 19 Aug 2010 07:24:08 -0700

Located at 3505 Sandberry Dr in Waxhaw, NC, this home has 3 bedrooms and 2 baths. Large master bedroom and bath, fenced backyard, large lot and an easy drive to shopping. It is also near downtown Waxhaw, NC

Keeping the Seller Informed of Market Conditions

Larry Bunch (United Country - Blue Ribbon Realtors) — Sat, 14 Aug 2010 17:13:59 -0700

Communication is the key. I have always thought keeping the seller informed of market conditions was just one of my responsibilities when I take a listing. Here are ten, I'm sure there are many more.

First responsibility: Do a walk through of the house. I like to do the walk through before taking the actual listing. I can make notes and comments about the house. This also gives me a chance to speak with the owners and ask why they're selling, how much they still owe on the mortgage, what they think their house is worth and how much they would like to walk away with after the sale. Listen to what they are saying.

Second responsibility: Work up a complete market analysis on the home. Does the market analysis support the price the homeowner hopes to receive? If not, ask myself, do I really want to take an overpriced listing in this market. That answer is NO!

Third responsibility: When finished, report the CMA findings to the seller. At that time, I work out a "seller net sheet" with the homeowner. I like to sit down at the table with them and with pencil, paper and calculator in hand work backward to the price the home would have to sell at in order to achieve the "net" dollars they want. Sometimes, this alone will help them understand if the listing price would need to be too high to achieve their desired results.

Fourth responsibility: If we agree on a price that fits the home and list the property, it's time to fill out the listing contract and explain the process. I heard one time it is a good idea to let the home seller know we are partners in this venture, they must do their part and I mine in order to be successful. Make sure their questions are answered, or you will get the answers for them. Leave them a detailed checklist of their responsibilities and things that need to be kept up daily.

Fifth responsibility: Enter the information into MLS and check it for errors. With all the information needing to be entered, it's easy to make an error. While mistakes do happen, we owe it to our clients to check and double check for anything that might not let your listing pull up in another agents search.

Sixth responsibility: Take plenty of "good" photos and keep them updated. Here again, once you have uploaded photos to MLS, check them. Are they clear? Are they to small? Make sure they make the home, inside and out, stand out. If the home is still listed when seasons change, please change the photo. Nothing dates a home for sale more than a photo with snow on the ground and we are now in the month of July.

Seventh responsibility: Once showings start, provide feedback as quickly as you can. If the showing agents make suggestions, let the home sellers know. Especially if they are all making the same suggestion on the same thing. Sometimes you may need to be a little more tactful than how it was told to you.

Eighth responsibility: Drive by your listing once in awhile. You don't even need to get out of the car. Check to make sure the curb appeal is still there. Is the grass cut? Are things picked up in the yard? Is your sign still standing or laying over in the yard? If you have a flyer box, are flyers in there?

Ninth responsibility: I am not big on calling the home sellers every week if we have no showings. I sometimes will email them, but I don't usually call to chat. It's ok to set your hours for accepting and returning phone calls, but let them know that when you list their house. If they call you, always try to call them back.

Tenth responsibility: Markets change and listings like old shoes don't get better with age. Past sales do not mean homes will continue to sell in a given price range in the future. If your listing is still on the market in two months, do another CMA. I think it is a good idea to continue doing a market analysis every couple of months until the property is sold. Always bring it to the attention of the seller. If prices are decreasing, they may not like it, but it is still our responsibility to keep them informed.

Communication is very important in this business. Communication with your clients, potential buyers and other agents. Just because you have a new listing on the board does not mean you have money in the bank. It still has to sell.

Union County NC Home Sales Through July 2010

Larry Bunch (United Country - Blue Ribbon Realtors) — Mon, 09 Aug 2010 15:09:30 -0700

Union County NC Home Sales Through July 2010 took a dive for the month of July (-9.8%) after showing an increase for the previous three months. This is the first month for reporting closed home sales since the $8,000 stimulus expired in June. Homebuyers have until the end of September to close sales on homes that were under contract at the end of June.

Sales for the entire Carolina Multiple Listing Service, which covers Charlotte, NC and surrounding counties, were down for July by -11.5%. This decrease came after nine straight months of increases over their respective month's sales.

JOBS.......JOBS.........JOBS.......JOBS.........JOBS.......JOBS.........JOBS.......JOBS.........

Larry Bunch (United Country - Blue Ribbon Realtors) — Fri, 30 Jul 2010 10:28:52 -0700

What is stopping homebuyers from taking advantage of this market? A market where home prices are the lowest in years. A market that has no shortage of available homes for sale and thirty-year fixed rate loans below five percent, fifteen-year loans below four percent and five-year arms around three and one half percent. Why then is there a shortage of homebuyers?

One word....JOBS. The unemployment rate was 9.5% in June and there are reports that it is unlikely to go much lower for several years out. Putting Americans back to work would help solve a lot of problems for America. JOBS would help solve the housing crisis. JOBS would help solve the $13,000,000,000,000 national debt. JOBS would help solve the foreclosure problems across the country.

Now, when I say JOBS, I don't mean government work. I am talking about private sector JOBS. JOBS that produce things. JOBS that make things. JOBS that build things.

Look, I am not smart enough to figure out what happened to our economy two years ago, ten years ago or fifty years ago, and I'm certainly not a politician, but you don't have to be smarter than a fifth grader to know the housing market will not pick up until people have JOBS and feel secure in those JOBS. Gimmicks might help sell a few houses, but gimmicks will not sustain the housing market long term. Jobs will.

So, I have an idea for those currently in Washington and state capitals around the country, stop blaming and get out of the way. Let Americans do what we do best. Create real JOBS. That is the way to restore confidence in America. That is the way to re-build our economy. That is the way to start paying off our national debt. That is the way to get re-elected. Who knows, maybe you could take credit for that?

Living In North Carolina

Larry Bunch (United Country - Blue Ribbon Realtors) — Mon, 26 Jul 2010 11:36:56 -0700

For those who like the beaches and the mountains, but can't decide which you like best, move to Charlotte. From Charlotte, the mountains are about a two and half hour drive to the west, and the beach is about a three-hour drive to the east. They are both close enough for a day trip or a short weekend get-away.

For me, I choose the mountains. I really enjoy the four distinct seasons, especially in the fall when the air is cool and the leaves are turning. For my wife, she enjoys the beach. She loves the sounds and smells of the ocean and walking on the beach. I guess it mostly depends on where you grew up. I grew up in east Tennessee at the foothills of the Smokey Mountains; my wife grew up in California and could go to the beach anytime she wanted.

My fishin’ story and selling your house

Larry Bunch (United Country - Blue Ribbon Realtors) — Mon, 19 Jul 2010 09:56:15 -0700

My dad was a big fisherman. He loved go to the Tennessee River and spend a weekend drifting down the river. Many times, he would take my younger brother and me along.

As a boy, patience is usually not high on the list, but dad would make us sit as still and quietly as possible after baiting our hooks and dropping our lines.

This is where the fishin' story comes in. I sometimes tell it when I list a home for sale: One day, while sitting quietly for at least five minutes, I decided my bait was not doing its job. I thought if I reeled in my line and put fresh bait on I would stand a better chance of getting a fish on the hook So, I started reeling. Just as my hook cleared the water, I caught site of a fish swimming toward the bait, mouth open. Had I left it in the water a little longer, I would have probably had the fish. The thing dad was trying to teach us (other than, be quite, you'll scare the fish) was patience, which usually is a valuable thing later in life.

This is what I try to tell clients I work with. Especially home sellers. Next to pricing a home correctly, patience is a must. Buyers will buy according to their schedule. I know keeping your house on the market over an extended period gets old, but it's just the way the market is at this time. No one knows when it will get better.

With that said, homes are still selling. Not as many or as quickly as they once did, but some are selling. As a home seller, you should always keep your property in showing condition and make it as convenient to show as possible. If you turn away a prospective buyer whose agent has requested a showing, you may have turned away the buyer of your home.

Checking homes in several subdivisions around Waxhaw, The Oaks on Providence, Hermitage Place, Kingston on Providence and Alma Village show a large drop in home sales this year from previous years. Homes are for sale in those subdivisions, just not as many buyers. The last I checked, interest rates were posted at less than 5% for a 30 year fixed loan and unit inventory is still high, about a 13-month supply as of 7/10/2010 in Union County, NC. If you are planning to buy, now might be the time to act.

Union County, NC home sales for June

Larry Bunch (United Country - Blue Ribbon Realtors) — Mon, 12 Jul 2010 10:36:49 -0700

Home sales in Union County, NC showed an increase for the third month in a row for the month of June. According to the Carolina Multiple Listing Service (CMLS), home sales in June were 235 homes to last years 195 homes. The tax rebate ended on June 30th. Homes under contract on June 30th have until September 30th to close. Will the increase in home sales continue? Interest rates are still very low and home prices are down, now is a great time to buy.

The Peach Lady of Waxhaw

Larry Bunch (United Country - Blue Ribbon Realtors) — Tue, 29 Jun 2010 17:40:38 -0700

The Peach Lady in Waxhaw has been selling peaches, tomatoes and other vegetables in Waxhaw for the past twenty-eight years. The vegetables are grown at Gowan Farms in Lancaster, SC about 17 miles from Waxhaw. The Peach Lady is usually open for business seven days a week May-October. If you're looking for some beautiful fruit and vegetables, this is the place to go. You can't miss her. She is on the corner of McDonald St and Highway 16 south.

www.LarryBunch.com

Larry Bunch (United Country - Blue Ribbon Realtors) — Fri, 04 Jun 2010 17:51:25 -0700

Now I know why they charge so much to build a website. I've been working on a new one today and it has taken the biggest part of the day. If you have time, take a look and let me know what you think. It is not finished, but I almost am. I'm open for suggestions. Here is a link: www.LarryBunch.com

3505 Buckeye Ct

Larry Bunch (United Country - Blue Ribbon Realtors) — Wed, 26 May 2010 21:30:37 -0700

Cute home located on the north side of Waxhaw near Cureton shopping center. Home has 3 bedrooms and 2 baths. Large kitchen and dining area. Sunroom, concrete drive. More photos at www.LarryBunch.com