I was recently asked by Realtor.com to be a contributor to their new "Ask a REALTOR" program they started at the end of August of this year.  Basically if someone emails Realtor.com a question they will distribute them to a certain number of REALTORS across the country and choose which one to use.  I will....in the next few posts submit the answers chosen which will distribute through my blog page.  They are VLOGS...which is the cool term for a video blog.  Here is one of the first ones answered.  As always feel free to contact me with any questions or concerns.

I am sure if you are reading this blog then you have been keeping up with the market and do not need a quick synopsis of what has been happening over the past 3 years.  Realtors as well as Sellers have been struggling and hoping for better days; the buyers, well are just popping popcorn watching the show.

First off, let me say that I totally understand why SOME buyers are hesitant on pulling the trigger.  There is not one week that goes by when I am just in a casual conversation when someone says "I can't imagine why it's so slow for you guys, the rates are low and prices are low...buyers are crazy not to buy now".  True and not true.  The fact of the matter is rates and prices are low, but in general a lot of people are unemployed and if they are employed they are shaking in their boots that they will lose their jobs, so buying a new home isn't even a thought now.  BUT, for those that are very qualified and secure with their employment and currently out looking at homes and giving feedback like "house needs too much work, waiting for rates to drop, waiting for prices to go down or priced way too high for competition out there.......your days are limited to have that ability to pick and choose on your watch.  I have many listings that are getting a few showings, but the above is the typical feedback from the buyer's agents.  In the buyer's agents defense, they give this feedback from their clients and are not really sure what the buyer is thinking or is going to do.  For example, as most Realtors can tell you...they drive buyers around for 2 weeks or so and seem to be gung-ho on one house and then never hear from them or at the least hear something like "we are going to wait".  That is okay in some cases, but my point is we are at a pivotal time here when buyers should definitely get off the fence and make a move within the next 8 months or so.

For the past year you have all heard reports.....we are coming out of the recession, or the economy is picking up or this or that.....well, that is coming from people who want you to believe that, ie: the National Association of Realtors or Home Builders Association or any other trade group who needs activity to increase....which is a legitimate claim given "their" studies.  But now the Housing Starts have been climbing since June which is the single best indicator that the Real Estate Market, no matter where you live will start to pick up.  Maybe not tomorrow or next week, but with increased Housing Starts, the countdown to recovery has begun.

Bottom line is by mid 2010 Sellers, instead of getting dreadful feedback on how bad their kitchen wall color choice is, will be getting multiple offers and scoffing at minor house flaws that buyers are giving now.  Multiple offers and lower days on the market will be seen again and buyers will have to make quicker decisions if they really want that house....and be willing to come a lot closer to the Seller's asking price. 

If you are in the market to buy, now is the time to get serious and do something before the rates climb and housing recovers fully.  For more information on my Local Market in Raleigh, NC please visit us here.

So where do I start?  With the whole mortgage meltdown over the past few years there are a lot of people pointing fingers on who it is to blame.  Quick answer....the greedy bank executives.  Throughout this whole ordeal there has been one group of people everyone loves to point there finger at and lay blame..... The Appraiser.  When times were good (hyperbole) because they weren't really good, the appraisers are in hindsight catching blame for giving "too High" of a value on properties, therefore putting homeowners in a house that isn't worth what they paid....these days they are getting blamed for deals falling through for not giving enough value for the home....and now the Realtors and sellers/buyers are upset at them.  Here is a fact, not opinion: Appraisers report the facts; what the market is bearing.  Sure, there may be some bad apples out there trying to make a sale and give a "not so accurate" report, but they have an Appraisal Board to take care of them.

Lawrence Yun, the "Chief Economist for the NAR" recently is reported saying..."poor appraisals are stalling transactions." He attributed May's less-than-expected sales increase on the fact that "some contracts are falling through from faulty valuations that keep buyers from getting a loan."  If these reports are indeed faulty, again, don't blame the Appraiser, blame the system.  Appraisers now must abide by the HVCC , which stands for the Home Valuation Code of Conduct.  Part of what is going on here is some banks have to use AMC's"Appraisal Management Companies" to outsource Appraisers.  From what I know of Appraising in general to all the Appraisers I speak to here is my take on this:

With blame falling on lenders and appraisers over the past years for these two having cozy relationships....meaning a lender knows a great Appraiser and keeps using them because they are good OR interpreted.... they ALWAYS hit our number requested......the AMC's were injected as a firewall to not let lenders call there "guy/gal" to do their appraisals for them....Appraisers are now randomly chosen by the AMC's to complete the order eliminating the "cozy" relationship.  This probably does cut out some of the "bad apples", but not really, because underwriting is more strict now and they are actually paying attention to the reports unlike the past when they were zipping through them just to get to the next one.  WHAT THIS ACTUALLY DOES is counterproductive.  The AMC's are now (this actually happened to me) getting an Appraiser from Greensboro NC to appraise a home in Raleigh NC....and he/she didn't even have access to our MLS.....HOW is he/she to get accurate information without our MLS....banks don't care because he was cheaper and doesn't know the lender.  D.U.M. dumb.  The banks are shooting themselves in the foot AGAIN.  They should allow lenders to choose their Appraisers as before because now there are more safety nets in place.

Here is the worst of it, the Appraiser is just like the Realtor, Loan officer and Home Inspector in the sense that they have worked all these years to get a clientele base to work with referrals.  So over the years they have developed relationships with lenders and can count on a certain amount of business coming in every month.  Now, they lose all these contacts because lenders are forbidden to call "their guy/gal" to get the appraisal done.  If they do get work, it is on rotation from AMC's that pay less, but charge the buyers more during the application process.  So an appraiser just starting out may possibly get just as much work as a seasoned appraiser.

I may be wrong, I may not have all the information needed to express my opinion, but to me it all goes back to the banks making all the money with the bad loans.....losing their shorts and then coming back making new rules that only benefits them.  I understand there has to be guidelines and restrictions in place to protect their investments, but common sense should be a part of their decisions. 

Just think, if we all paid cash it would be a lot easier:) (now that's a joke)

If you ever are driving through Southern Wake County maybe headed down 401 South to Fuquay Varina or towards Clayton on HWY 42 you may pass through a stop light or two in a rural setting you may wonder if you are in a township or just a forgotten rural area.  Willow Springs or Willow Spring (without the (S)) as some say is just that.....a hidden bedroom community with many subdivisions with large lots, a rural setting, but only 5 minutes from Fuquay Varina.....OR about 20 minutes from downtown Raleigh. 

A lot of people have overlooked Willow Springs because there is no Target there, no Wal-Mart, no Food Lion or Harris Teeter; it is so small the only thing it actually has is a Post Office...a very small one.  But in today's Real Estate Market that is exactly what some buyers are looking for; a community NOT a large CITY to live.  Kendall Hills is a subdivision that has been overlooked along with the Town of Willow Springs.  Lots are averaging almost an acre and home prices range from $275 ----to the high $300's.  Most of these homes have at least 2300 square feet or more....so statistically, you won't find that bargain in many places in the Triangle area.  When you can get a home for this size, age, acreage and convenience, you have found a bargain. 

So if you are searching for property in the Raleigh, NC area and don't want the hustle and bustle of big city life and don't want to commute 2 hours a day, Willow Springs should be at the top of your list to visit.  For more information feel free to visit us here.

Unless you have been living in a shell and have not turned on the TV in the past 3 or so years you are well aware that America as well as the rest of the world has been subject to a major downturn in the overall economy.  Experts....if there are any in the economic field claim that downturns occur every twenty years or so and it usually has a catalyst behind it.....this one was the housing market.

This downturn though in my opinion was spurred by GREED...nothing more nothing less.  When thoroughly examined and broken down to where it is explained in layman's terms, you seem to notice that it all goes back to the same theory.....if it seems to good to be true...it is;  hence people buying homes with no job or credit is basically what happened.  Though this is WAY too complicated for me to understand myself and break it down, there is a series on CNBC called "The House of Cards" and it does the best job so far explaining what has happened.  I must warn you though...it will make you mad.

As of last summer ('08) there were approximately 7.5 million sub-prime loans being serviced and many of those could have possibly qualified for a prime loan; an A credit rating.  Around 70% or more of these were ARM loans that the rate re-adjusted to a higher rate 1-2-3 years later depending on the terms.  The majority of these loans were written in 2005-2006 and the first adjustments started about 24 months later.....this blends into the time-frame of the meltdown...2007-2008 and will more than likely continue. 

We are now all in recovery mode AND for agents like myself SURVIVAL mode.  Things are definitely getting a little better, but very slowly.  It is a great time to buy; low prices and low rates, but to buy you must have good credit and a job......two things people should have had before the meltdown.  In Wake County in 1998 there were almost 1,000 foreclosures....in 2007 there were almost 4,500 and in 2008 there were just over 2,000; so you can see they are going down.  Hang in there with me and as always visit our site for more Real Estate information.

When buying a home there are many things you are going to hear and not understand...that is why you not only have a Realtor to help you buy or sell, but you also have other professionals at your service including home inspectors, pest inspectors, Real Estate Attorneys and many more.  Title insurance is one of those things you will see on a good faith estimate and ask what is it and do I need it to purchase a home.

The answer is yes and no (sometimes you don't have to have it) but ALWAYS recommended.  If you are financing your home, your lender will require you to obtain a title insurance policy.  In NC the closing attorney usually orders the policy.  If you are paying cash you may not be required to buy it, but it is strongly recommended and here is why:

Title insurance is a policy protecting the borrower or lender or both from loss or damage caused by a defective title to real property.  It is different than most insurance in many ways, but the two most obvious are: 1) it is paid for by a one time fee at closing (typically $2 per thousand and varies per appraised value of property)  2) it covers not what may happen in the future, but what may have happened in the past.  The way I usually explain this to my clients is just to picture you enjoying your brand new home and come to find out that many many years ago the farmer who owned the whole parcel your subdivision is on....never actually sold the property free and clear (for whatever reason).  Somehow the title is not clear; called cloud on the title and you may not actually own the home.  That is when your title insurance would kick in to protect you.  That may not be the best example, but you get the idea.  For more information on Real Estate please visit us here.  Hope this helps.  

It happens everywhere; for the most part.  Development.  With development comes a few things hard to ignore, like the sudden scampering of animals; namely deer, the new homes right next to an old abandoned farmhouse, maybe some fishing ponds that look out of place, but the one thing you may notice or may NOT notice at first; is grave sites. 

In the South...it was commonplace to bury family members on the farmstead (which is a cool term for family land).  Some sites found can date back to the 1700's and those parcels of land can be forgotten by family members over time believe it or not.  Recently in Wake County developers have been discovering more grave sites as they start clearing land for new subdivisions.  At first sites could be hard to see because tomb stones weren't always the practice to bury, some just used flat markings some as a unique rock flat with the soil. 

When these sites are found the developers either preserve the site, contact surviving relatives and let them handle the site, or dig up the graves and re-intern them.  Sometimes it could cost $5K-$10k per grave so it can really get expensive.  So if you ever thought developing land was easy and had no obstacles....I could put up an argument.

Many concerned future home-buyers and sellers first question when deciding to buy or sell is can I do it myself?  What will it cost?  What is the first step?  How much should I list for or offer to purchase a home?  All of these are legitimate questions and most have very simple or very complicated answers depending on your knowledge of the field.

In North Carolina(laws vary per state) most buyers will hire a Buyer's Agent to represent them in a transaction.  In most cases the seller pays the commission so for the most part you as a buyer would not pay anything; and with representation you get just that....someone who is knowledgeable and can advise you on what happens step by step in the process while making sure you don't pay too much for a new home.  If you have an exclusive buyer's agent they have a fiduciary trust/relationship with you and all information about you is confidential so you can tell them your inner feelings about a property or financial situation and BY LAW they cannot divulge to the other party.  Having a buyer's agent is a very good idea when buying a home.

When selling you will have a listing agent or a.k.a. seller's agent.  They have the same duties to the seller as a buyer's agent has to the buyer.  The seller's agent has a duty to represent the seller and get the most for the property as possible.

Realtor's have a strict code of ethics to follow, so just because the other agent may represent the other party, they are not out to get you....they must be honest and hold accountablity towards you/the other party. 

I have heard this statement before which doesn't necessarily only pertain to the Real Estate field.  "You don't pay me for what I do, you pay me for what I know".  It sounds a bit aloof, but it rings true in many professions.  There are many things/issues that can pop up in transactions and if you don't have a professional with experience on your side you are open be taken advantage of by someone.  Changes to contracts such as amendments, schedules, exhibits and closing statements are very common and I myself pride myself in taking continuing education and keeping an active license by staying abreast of changes to real estate laws and regulations, principles and practices.  For more information please visit us here.  Hope this helps.

RESPA is an acronym used in the field of Real Estate and Lending meaning Real Estate Settlement Procedures Act.

Formed by Congress in 1974, RESPA in meant to curb abusive practices that proved to be costly to home-buyers and to increase the understanding of the settlement processes and cost associated with buying a home.  RESPA's purpose has two main objectives:

1) to provide consumers with information about the real estate mortgage transaction and the costs associated with it *Realtor.org

2) to prohibit certain practices, such as referral fees between settlement service providers, that result in higher costs and reduced quality to consumers *Realtor.org

Basically, whenever you see an ad for a certain loan RESPA will require certain disclosures to accompany it in the text so you know what all the "legalese" means to the average person.  RESPA also has a lot of requirements for the HUD-1 statement you will receive at the closing.  The HUD-1 is basically a receipt of the home purchase transaction.  So in your next transaction if you keep hearing the term RESPA, just remember it is an Act of Congress established to protect the public/you from predatory (individuals/companies) that may take advantage of your transaction.  For more information visit us here.

This past week I attended my favorite yearly seminar "Real Trends".  I look forward to it because it is a statistically driven information session that does not bend the truth to make things look a certain way.  The reason I phrase it this way is because being a Realtor, I am inundated with magazines and emails from various groups the bend information to fit the right way in order to sell you something.  This seminar is the guts of what's happening.....and it's local.

The Raleigh market this past year has been down as you will see, but not nearly as bad as other parts of the country.  You will see a downward trend, but be delighted to see it has been this way before and shot right back up.  The big thing to consider here also is the X factor....the government.  With the elections ahead, the mortgage meltdown and banks falling because of greed, the government will have a significant market intervention that will determine the housing market's future.

I will start with the negative: 

*Nationally the workforce in the United States has dropped 8.19% and the Triangle area has dropped       -0.45% and NC at -1.30%.

*Listings have peaked at 14,331 vs. 10,149 in 2005.

*Third quarter showings of 2008 have dropped to 172,587 from 212,947 in 2005.  As I type the last 3 weeks have almost been at a standstill for showings..(election and economy scares).

*Third quarter closings of 2008 have dropped to 6,714 from 10,489 in 2005.

*We are now at 8 months supply, which anything over 6 months would be indicative of a buyer's market.  But, nationally supply is 11 months, South Florida 28 and Las Vegas 17.

Positive:

*Average days on the market is 88 compared to 2005 at 85, but last year it was 73.

*The overall average price of a home here is $269,600 compared to 2005 at $229,700.  While the average price of re-sale only here is $232,500 vs. $204,700 in 2005.

*Appreciation rates are healthy.....in NC it is 3.59% and Wake County 4.80%.  Nationally it is -4.80%.

The gist I got out of the seminar is things have been tough, but not nearly as tough as other markets have experienced in the past 3 years.  Things will get better soon...how soon is the question.  Some experts say 2009 with most agreeing on 2010.  But don't let that effect you if you plan to sell.  There are still buyers out there and our appreciation rates as well as interest rates are good, you may just have to have a bit more patience.  Data for the above information was compiled through Triangle Multiple Listing Service.  For more information visit us here.