Larry's Blog

STOP! Don't help us anymore.

Larry Bunch (Exit Metro Realty) — Tue, 24 Nov 2009 17:17:07 -0600

Recently the National Association of Realtors (NAR) came out with their numbers for October 2009. They reported a year to date, seasonally adjusted gain in existing home sales of 23.5%. This is a nationwide number, but how do sales look at a local level. Different parts of the country are affected in different ways by the current downturn in the economy.

In the Charlotte area, the real estate market was greatly affected by banking with Wachovia (now Wells Fargo) and Bank of America headquarted from here. A few years ago, it seemed as though the builder could not build homes and Realtors could not list homes fast enough.

Here are some numbers I put together from Carolina Multiple Listing Service. These numbers reflect Charlotte and the surrounding MLS area. Year to date, through October 2009, home sales are down about 22% compared to last year. Unlike NAR, these numbers are just raw monthly sales numbers and are not seasonally adjusted. Residential closings did increase for the month of October, by 19.6%, but one or two good months does not show a turn around in real estate, as NAR seems to suggest. If I understand it correctly, seasonally adjusted means the annual rate for a particular month represents what the actual sales for a year would be if that rate were maintained for twelve months. My question is would not the most recent month's sales be weighted heavy with the homebuyer tax credit? If so, does that inflate the number of projected annual sales? I understand it in normal times, but the way the economy is makes me wonder if the NAR number is a high projection. Maybe I don't understand how they project the numbers.

I know NAR has to keep putting a positive spin on home sales. That's a big part of their job, but I also think we have to be honest with our clients and ourselves. The market we had a couple of years ago will not be back anytime soon. In my opinion, unemployment has to come down before we see any kind of significant change in home sales, auto sales or anything else. Nationally it is at 10.2%. Here in North Carolina it moved up from 10.8% to 11.0% according to the latest numbers released from The Bureau of Labor Statistics. I recently read an article by Mort Kondracke. In his article he quoted an economist, David Smick, as saying in order for unemployment to fall from 10.2% to 5%, the economy would have to produce 250,000 jobs a month for the next five years. Think about that for a minute. Do you have enough confidence in our leaders in Washington? These cannot be government created jobs just to make the numbers look better. They must be real jobs from the private sector.

Another key factor is government spending. Stop! Our national debt is now over 12 trillion dollars. We had a 1.5 trillion dollar deficit for fiscal year 2009, a projected 1.4 trillion dollars for 2010 and huge projected deficits for years to come. Please don't help us anymore.

We are kidding ourselves when we allow the government to continue putting band-aids like cash for clunkers or the homebuyer's tax credit on an open wound. As Dave Ramsey suggested, learn to use the word NO.

Homes tucked away in Waxhaw subdivisions

Larry Bunch (Exit Metro Realty) — Tue, 17 Nov 2009 17:28:29 -0600

Waxhaw, NC is just south of Charlotte, NC. Waxhaw is basically a bedroom community of Charlotte and has several subdivisions that are off the mainstream radar map. On the north side of town, going up Providence Road toward Charlotte are Alma Village, The Oaks on Providence, Kingston on Providence andOld Hickory. There are several homes in these neighborhoods priced from around $150,000 to $250,000. These subdivisions are conveniently located to shopping or easy driving to downtown Charlotte, Carolina Place Mall or SouthPark Mall.

Two other subdivisions, Hermitage Place and Magnolia Ridge are located on the southeast and southwest side of town but are just as convenient to shopping in Waxhaw or the malls. In both of these neighborhoods, homes are generally in the same price range as above.

CHARLOTTE HOME MARKET TRYING TO BATTLE BACK

Larry Bunch (Exit Metro Realty) — Tue, 17 Nov 2009 17:26:53 -0600

CHARLOTTE HOME MARKET TRYING TO BATTLE BACK - Home sales are trying to battle back in the Charlotte market. Sales for the month of October showed a gain, which included single family homes, townhomes and condominiums. We still have a long way to go to get to the levels reached in 2006 and 2007. And to keep things in perspective, it was October, 2008 when home sales took a nosedive, dropping 30.5% from October, 2007. Nevertheless, a gain is a gain and we were up 19.6% for the month of October vs. last year.

Now, some of those sales were foreclosures and some were buyers using the first-time-home-buyer tax credit up to $8,000. The question remains, what will this extension (up to $8,000) for first-time-buyers, and the new tax credit (up to $6,500), for existing homeowners do? It comes at a time when the market usually slows down for the holidays, but it will also run through April 30, 2010, which is normally the busiest time in home sales. A bright point in the home mortgage industry is the story of JP Morgan Chase planning to hire 1,200 mortgage loan officers.

Maybe the tax credits do help home sales temporarily. They might help first-time-buyers make the decision to buy. But, are they just a gimmick? Kind of like a sales gimmick. When I was in retail, the merchandise manager would lay out our ads for the spring season or the fall season. When the sale was successful and we had a good week or good month, it was great. Everyone was happy. We never concerned ourselves with the next year. Next year was next year. That company finally went out of business after about forty years.

Home sales are quite different from running a sale in a retail store. They depend on a strong economy. An economy that is vibrant and growing. That part that is concerning. Home sales don't just happen. Until the unemployment rate, which is now at 10.2% nationally and 11.6% (September, 2009) for the Charlotte-Gastonia-Concord, NC-SC Metropolitan Statistical Area is down and people feel secure in their jobs (real jobs), I don't know if (real) home sales will continue to rise even with all the sales gimmicks.

Properties reported may be listed or sold by various participants in the MLS. This information may be subject to errors and should be verified by the user.

Union County, NC

Larry Bunch (Exit Metro Realty) — Thu, 03 Sep 2009 13:41:14 -0500

It appears home sales in Union County have picked up some. By no means are they at the level they were in 2007 or 2006, but it is a welcomed increase. I know, with the different selling seasons in real estate, a month to month instead of a year to year may not seem like a fair comparison, but at this point I think it will do.

The months supply has been slowly decreasing (from 18.7 in May to currently 13.5). The number of single family homes in MLS in Union County has remained in the 2400 to 2500 unit range.

The information for these graphs was taken from the local MLS. It is for single family homes in Union County. As always, This information may be subject to errors and should be verified by the user.

8 Weeks In A Row

Larry Bunch (Exit Metro Realty) — Mon, 27 Jul 2009 07:24:04 -0500

8 Weeks In A Row - The months supply of homes in Union County has come down. Not for the lack of inventory, but because of an increase in home sales. Actually, the inventory of single family homes has remained pretty constant. The average since May 1, 2009 has been 2,547 homes on the market and about an 18.7% increase in single family home sales for Union County. Just in the past week I have had a couple of calls about selling their home and buying new ones. The market does appear to be changing. Those that want the good deals available at this time should get moving. For the first time home buyer, the tax credit is scheduled to expire as of December 1, 2009. If you are planning to buy, don't wait until the last minute. It does take time to find the home and get the mortgage.

Properties reported may be listed or sold by various participants in the MLS.
This information may be subject to errors and should be verified by the user.

UNION COUNTY, NC - SINGLE FAMILY HOME SALES

Larry Bunch (Exit Metro Realty) — Mon, 20 Jul 2009 15:09:01 -0500

Home sells are trying to make a comeback here in Union County, NC. They have a way to go to reach their peak of 2006, but any increase in sales is welcome news. The supply of homes on the market remains about the same, but with the higher pace in closed sales the months supply has dropped seven weeks in a row.

If there are any first time buyers sitting on the fence waiting to buy a home, they should really take this opportunity to buy. Interest rates are still low and there are plenty of homes to choose from. Also, the first time home buyer tax credit is still available. The tax credit is scheduled to expire on November 30, 2009.

Properties reported may be listed or sold by various participants in the MLS.
This information may be subject to errors and should be verified by the user.

MONTHS SUPPLY IN UNION COUNTY, NC

Larry Bunch (Exit Metro Realty) — Mon, 13 Jul 2009 08:51:42 -0500

During the last couple of weeks we have seen inventory levels come down and home sales go up. Still too early to tell if this is a long range trend in sales. Also, we don't know if the reduction in supply is the result of homeowners pulling their home from the market and waiting for a better time to sell.

Properties reported may be listed or sold by various participants in the MLS.
This information may be subject to errors and should be verified by the user.

July 4, 2009 in Waxhaw, NC

Larry Bunch (Exit Metro Realty) — Sat, 04 Jul 2009 10:28:18 -0500

The parade started at 10am. The fireworks begin at 9:30 this evening.

Information from NAR regarding Cap and Trade Bill in Congress

Larry Bunch (Exit Metro Realty) — Thu, 02 Jul 2009 09:12:59 -0500

Here is a link to NAR concerning Myths and Facts about The American Clean Energy and Security Act (Cap and Trade). According to NAR, these are the facts they were instrumental in helping to establish. I assume they developed their opinion in part from a survey they sent out to REALTORS a few months back. SO, whenever you receive those surveys in your email box from the local or national association, don't press the delete button. Take the survey. In this market you certainly can't say you don't have the time.

This report is a far cry from what you see and hear being reported in the news media. Now, I have to say, I am not in favor of big government getting involved in our daily lives, but I am in favor of our news shows giving us the facts. Is that too much to ask for?

Does anyone know the real story?

Larry Bunch (Exit Metro Realty) — Mon, 29 Jun 2009 15:44:08 -0500

I'm fed up with all the politicians (no matter which party) giving us their version of "the truth". We can't rely on the news media (print or TV). They all give their version of "the truth". We can't rely on radio, again their version of "the truth".

One side says this "Cap and Trade" bill will require home sellers to have an energy efficient inspection before selling their home. If I listen to the other side, this planet, after billions of years, will be destroyed by humans.

Is someone working against Realtors and home sellers and buyers? This entire country has become so divided along party lines you can't talk anymore and you certainly can't get a straight answer from anyone.

If I go to the NAR website, it seems they are always telling us how great homes are selling. I don't doubt they do work hard for Realtors and try to put a positive outlook on things, but give us the real story. What are these people in Washington doing? Are they hurting us or helping? Forget about the parties, tell us their names. Tell us if you think these bills they are ramming through with very little oversight are good or bad. If someone is in a particular party I support, but they are passing legislation that hurts our business, I still want to know.

Now, I'm asking you. Do you know the real story? If so, and it is from a reliable source, please share with the rest of us. The only request I have, don't spin.

Union County, NC

Larry Bunch (Exit Metro Realty) — Fri, 26 Jun 2009 16:07:46 -0500

Months supply in Union County, NC came down a little this week. Sales have picked up but still have a long way to go. First time home buyers should be aware, the tax credit (up to $8,000) is scheduled to end on December 1, 2009.

PUTTING A HOME UP FOR SALE – DO YOUR SELLER AND YOURSELF A FAVOR…

Larry Bunch (Exit Metro Realty) — Mon, 22 Jun 2009 08:42:39 -0500

How many times have you gone into a home where the buyers have lived for a number of years and found the home out of date? It could be anything from the avocado range to the Coppertone refrigerator. It could be the outdated wallpaper or the long shag carpet. Or, it could be the bright colors of paint on the wall that need to be neutralized. Is it your responsibility to let the seller know the home is out of date? If you are looking to get the top dollar for the seller, then it is. Most buyers, I think, expect a home to be up dated over the years. Now, I know there probably are not very many homes around with the colors I mentioned above, since they are more than thirty years old, but if you have been selling homes for a few years, I am sure you have seen a few.

Another thing agents must do, tell the sellers to pack up their stuff. Create space, or at least make the available space look larger. I have seen homes with doo-dads sitting all around. It makes the room look small and messy. Tell the sellers to pack it away. They can store it in the garage, outbuilding or, if possible, rent a storage building.

I know it is sometimes hard to give advice like that, but the sellers want their home sold. These are easy and inexpensive corrections. After a homeowner has been in a place for a period of time, it is sometimes hard to see things that might be a distraction to a buyer, but the sellers are relying on you to market their home and want you to give them your advice. There are tactful ways of getting your message across that will benefit your client with a sale and in turn benefit you with a well-earned commission.

Months Supply - Union County, NC - Single Family Homes

Larry Bunch (Exit Metro Realty) — Fri, 22 May 2009 18:27:56 -0500

Not much relief this week. Supply is still holding steady at 18 months plus. With high inventory, low interest rates and the first time home buyer tax credit (up to $8,000), buyers should be taking advantage. The average single family home sold this past week in Union County for about 87.6% of list price and was on the market for 122 days.

Harder to purchase a home!

Larry Bunch (Exit Metro Realty) — Fri, 01 May 2009 18:29:49 -0500

Check this article from the LA Times. As of May 1, 2009 the rules have changed for appraisals on Fannie Mae and Freddie Mac loans. If you ever thought you had to jump through hoops to buy a home, check out the new requirements for a loan. This will not only cause home sales to keep going lower, prices down and cost borrowers more money, but it will also keep a lot of home buyers from being able to buy.

Months Supply - Union County, NC - Single Family Homes

Larry Bunch (Exit Metro Realty) — Mon, 20 Apr 2009 21:24:45 -0500

Price It Right From THe Get Go!

Larry Bunch (Exit Metro Realty) — Fri, 10 Apr 2009 20:36:07 -0500

According to the Carolina MLS, the latest year-to-date stats for Union County, NC through April 8, 2009 are 446 single family homes sold with an average list price of $268,527 vs. sale price of $255,392. That's a 95.1% list to sale ratio. This time last year for the same period, we had 651 single-family home sales with an average list price of $295,317 vs. sale price of $285,777. That is a 96.8% list to sale ratio. So for the county the average "sold" price is minus 10.6% to last year and the unit sales are down 31.5%.

Now for the current weekending period of April 10, 2009 the number of homes sold in Union County was 23 vs. last year of 45. The average sold price this year was $244,677 to list price of $250,880. Last year it was a sold price of $297,161 to a list price of $305,654.

I know that's a lot of numbers, but I recently did a month's supply of single family homes for month ending March 31, 2009. It came out to 17.8 months in Union County. I checked the Carolina MLS for this past week, there were 157 price changes during the week. A few (very few) were up. Most were down.

I said all that to say this, right now is the time of year for selling your home. You will usually have more potential buyers come through your house during the first thirty days after listing. If you truly want to sell your property, price it to sell from the get go. Don't say we can look at it in 30 to 45 days and if need be make a price reduction. You've wasted a lot of time and maybe even a sale. If you are buying a home on the other side, you will be in a better position to take advantage of the market (it is a strong buyer's market) and these interest rates. They won't stay low forever.

There was a time when a seller could put a home on the market, price it a little higher, and maybe even have multiple offers. Maybe those days will return someday, but except for a very few, those days are gone. At least for now!

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

Beautiful day in Waxhaw, NC

Larry Bunch (Exit Metro Realty) — Sat, 04 Apr 2009 18:36:12 -0500

The sun was shinin', birds were singing and dogwoods are in bloom beneath the Carolina blue sky. Must be getting ready for the Carolina Tarheels to take on Villanova tonight. Go Heels!

Don't be so fast on passing up the real culprits

Larry Bunch (Exit Metro Realty) — Sat, 04 Apr 2009 17:49:41 -0500

Recently on activerain.com, I read an article by Dawn Maloney, ABR with REMAX Commitment regarding Realtors and short sales. As she correctly stated, Realtors did not cause the problem, but we are here to help clean it up. She also states lenders and corporations taking their jobs overseas caused this. I do not fault every lender or corporation, but each of us did our part. The ones I do fault most of all, and it seems like they are all getting a pass, is our politicians. I am not going to single out a party here because I believe they are all at fault. These people make a career in Washington, vote for or against anything that will help them retain their power or get more power and then ask us to let them fix what they destroyed. With all the money changing hands, I am surprised that Realtors have not banded together and ask for a bailout for each one of us. After all, politicians are the ones that created it. In effect, they have put us out of work but we can not draw unemployment.

Waxhaw Farmers Market sets opening date at new location

Larry Bunch (Exit Metro Realty) — Fri, 27 Mar 2009 20:39:43 -0500

The Waxhaw Farmer's Market is having its opening day on April 4, 2009. The new market location is on the corner of Price Ave. and Church Street, behind Stewart's Village Gallery. The new location for the Waxhaw Farmers' Market has been graciously donated by Bill and Holly Stewart of Stewarts' Village Gallery for the Market to use. The Stewart's say "they are looking forward to the new season with our new neighbors".

When asked about this years market, Mayor Daune Gardner said "I look forward to working with the Farmer's Market this upcoming season in helping to support and promote the market because it is a vital part of what Waxhaw represents." Mayor Gardner also expressed enthusiasm over the new President of the Waxhaw Farmer's Market, Denise Kuntz "Denise has been a really strong component of our community, local farming and local foods in the community and having her involved in the Farmer's Market will insure it's continued success".

The market runs from April through November and serves the citizens of Waxhaw, Weddington, Marvin and the surrounding communities. Customers come from Charlotte for many of the unique and delicious items available. The hours will remain the same, from 9 am till 1 pm on Saturdays and on Tuesdays from 3 pm to 6 pm.

The market features naturally grown local produce, cut flowers, vegetable and flower plants, goat cheese, fresh farm eggs, herbs, local honey, fresh baked bread, cakes, cookies, muffins, granola bars, homemade dog treats, homemade goat milk soap, and so much more!

Written By Beth Lewis

Don't Take That Listing Just To Have A Listing!

Larry Bunch (Exit Metro Realty) — Thu, 26 Mar 2009 07:28:25 -0500

There was a time when I would take a listing even if it were slightly overpriced. I knew slightly overpriced today meant market price six months or a year from now. However, those days are gone. Maybe that is a good thing. Homes were being priced out of range for first time homebuyers. That's where all the strange mortgage packages came in. Just recently I went on a listing appointment. The house had quite a bit of acreage, but it was an odd shaped piece of property. The home was listed last year by two different companies and did not sell. Getting back to my office and thinking about the house and land I started putting the numbers down on paper. I looked at the comps from a year back. Then I looked at comps from nine months back. The market was getting soft last year, but this year it has completely changed. Not only from a pricing standpoint but also from who can qualify for a mortgage? I contacted the sellers and told them. They were not pleased and I probably will not get the listing. Nevertheless, I would rather not take an overpriced listing that will not sell as take one and let it sit there and expire a few months down the road. If it were going to sell at a higher price it would have sold last year when money was easier to obtain. As REALTORS®, we do have an obligation to be honest with the owner: Standard of Practice 1-3 REALTORS®, in attempting to secure a listing, shall not deliberately mislead the owner as to market value. I've been selling homes since 1997 and have always found the preceding to be a good rule. For the years 2001 - 2007 my sale through rate was 76% and my list price to sale price was 97%. I don't know if we will have those days again, but if I take a listing just to have a listing, I'm not only hurting the seller, I'm hurting myself.

Does A Contract Mean Anything Anymore?

Larry Bunch (Exit Metro Realty) — Thu, 19 Mar 2009 20:42:45 -0500

Our leaders in Washington are showing us just how not to lead regarding this so called cram-down bill and the contracts with A.I.G. Now, before you take me to task, I don't think anyone is worth the salaries some of these executives make in salary and bonuses (any kind of bonus). But, are we a nation of laws? Do contracts still mean anything? The government wants a judge to void the contracts between the mortgagor and mortgagee and in essence rewrite those contracts to be more suitable for one party. The government also wants A.I.G. to get the bonuses back, even though they had contracts to pay. Is a contract just a piece of paper with a bunch of words? Adults need to take responsibility for their own actions.

SO, You Want To Sell Your Home! The 4 P's of Selling

Larry Bunch (Exit Metro Realty) — Fri, 13 Mar 2009 08:03:34 -0500

Pricing, Product, Patience, Promotion and Timing

PRICING

DETERMINE YOUR ESTIMATED NET: How much do you need to put in your pocket? Build your price from there and see if it is reasonable with sold homes in your area. Factor in items such as State Revenue Stamps, Preparation of Documents, Outstanding Mortgage(s), fees, etc. Be careful not to under price or overprice your home.

PRODUCT

MOST HOMEBUYERS BUY ON EMOTIONS AND JUSTIFY BY LOGIC: Step back. Look at your home from the buyer's point of view. Try to separate your emotions from selling your home. What can you do that would make a prospective buyer want to buy this house? Within seconds after pulling into your driveway the buyer is forming opinions.

PATIENCE

A HOME IS USUALLY THE LARGEST INVESTMENT A BUYER WILL MAKE: No matter how quickly the seller wants to sell, the buyer buys in their time. The listing agent promotes the home through various methods in order to attract agents with buyers, but the buyer cannot be rushed into a decision. Now, more than ever, the homeowner must make sure the home sparkles&shines.

PROMOTION

BASIC RULE OF ADVERTISING; SELL THE SIZZLE, NOT THE STEAK: For real estate, that means selling the real-world benefits of owning the home instead of just describing cold facts about the property.

TIMING

A SEASON FOR SELLING: When are more buyers looking for a home in this market? This could be almost as important as setting the price. Check with your agent and ask for stats on your local market.

Other agents probably have their important lists of selling. I would be interested in hearing yours.

Training and Awards

Larry Bunch (Exit Metro Realty) — Sat, 07 Mar 2009 05:53:14 -0600

Charlotte, NC -Training and Awards day for EXIT Realtors in North & South Carolina

Today was a very informative day. We had an awards day for EXIT Realty offices in North and South Carolina. The speakers were great. This is the first seminar with EXIT that I have been to. The first speaker was Key Yessaad. His goal is to train, inspire, and coach Real Estate Professionals to succeed. He did just that. His talk was filled with enthusiasm. Our second speaker was a gentleman by the name of Bob McKinnon. Bob is a Senior Regional Consultant from Texas. His talk was about defining your area, setting your goals and working your plan. The third speaker was Tami Bonnell, President U.S. Organization. Tami spoke about doing a self-appraisal and connecting with people. All speakers were very enthusiastic. They acknowledged hard times in the economy but encouraged all agents to work through it. The longer I'm with this company, the more I'm impressed and I'm not talking about the starting split of seventy percent or the enthusiasm of the agents. They have some great ideas and programs, not only for today but also for those working on their retirement plans.

The Spot

Larry Bunch (Exit Metro Realty) — Thu, 05 Mar 2009 08:26:11 -0600

A couple of weeks ago my wife and I took a trip back to my hometown of Cleveland, TN. While there, we had to go to The Spot. This restaurant had and still has some of the best hamburgers and milk shakes in the world. And just think, they're right there in my little old hometown. I admit, a little nostalgia might come into play here, but when they bring out the burger and before you unwrap it, you have to take in the smell. If you've ever smelled one of the old time hamburgers, you will know what I'm talking about. Take a bite and help it down with the chocolate milk shake (it's always best when you reach the bottom with that big lump of ice cream). You can't ask for anything better.

Now, about the nostalgia. My brother and I and our friends would go to the Princess Theater on Saturdays when we were kids. Sometimes, after we had had our fill of the all day movies, we would head up to The Spot on the next block. At that time, the restaurant was only a small walk in with about twelve stools at the counter. (Next door was Macs Billiards. The Spot has now taken in Macs and enlarged the inside eating area). Over the years, there have been many employees at The Spot, but when I was a kid, I remember two. The tall guy at the register that made the best milkshakes in the world and the short order cook who made the best hamburgers in the world. Seriously, I never did know their names. I was a kid. To me, as with most, we were too concerned with ourselves. Now, I wish I had stopped to ask. There names are surely on the link in this letter under history of The Spot.

If you're ever down I-75 (about 75 miles south of Knoxville or 25 miles north of Chattanooga), stop in and enjoy a step back in time when things were a little more simple.

Cramdown Bill

Larry Bunch (Exit Metro Realty) — Fri, 27 Feb 2009 12:42:14 -0600

Con-tract - a binding agreement between two or more persons or parties ; especially : one legally enforceable (Merriam-Webster)

House Expected To Vote On Cramdown Bill - When did we stop taking responsibility for our actions. I agree, home prices have fallen, but does this give a judge or anyone else the right to tell a bank, I know you financed (paid) the seller of a property $200,000 for their home and the buyer signed a contract promising to pay you back. But, in the last few months home prices have fallen and that house is now only worth $170,000. So, I am going to "cramdown" that loan to $170,000. I know you're out $30k, but that's the way it is.

I am not a politician nor do I have the desire to ever be one. But this is supposed to be a nation of laws. I do feel bad for those whose home prices have gone down in value but I have enough belief in this country, that in time prices will again be on the rise. What happens the next time prices fall? The banks and mortgage companies will not accept these extra risks, nor should they, without a cost. It will lead to higher interest rates and probably higher down payments for the buyer which will keep some buyers out of the market. And what about next year or five years from now, what do the politicians do if home prices fall again. Do we have another helping hand from the government?

If this goes through, I'm afraid we have started down the wrong path.