Raleigh, Homes, Business and Many Other Topics

Is 4% in our future?

Ray Williamson (Dream Living Realty) — Wed, 29 Apr 2009 19:39:36 -0500

In the previous norm, when I asked a mortgage lender what the current rates were and where are we going, they would turn to the 10 year treasury bond. While not exact, it certainly did move in tandem, traditionally with a spread or difference in rate of about 1.75 So, if the 10 year treasury was trading with a yield of 4.5% then mortgage rates would be at about 6.25%. With the Fed's announcement several weeks ago that they would be purchasing 1.15 trillion in mortgage backed securities, treasuries moved down below 2.5%. The thought being that President Obama might get that 4.0% after all. But rates have been very sluggish in moving down. In fact the treasuries have moved much faster back up. Treasuries now on either side of 3.0%.

Are you still with me :) So, if we apply a traditional spread principal which says that investors would want at least 1.75% more for the risk of a homeowner defaulting on the debt versus the US government (when you think about it, is that enough of a spread?). With 3.0% treasuries, have we hit bottom in mortgage rates? The more debt the US issues the higher the risk and therefore the higher the yield should be, so naturally mortgage rates would follow in lock step if not race ahead. After all mortgages have to be riskier, right?

I could foresee a complete government intervention in the mortgage market, setting rates artificially low to reach the magic 4% number. But, it doesn't seem like that is currently in the cards and market forces have to take hold soon. So for those of you waiting for the 4%, is it worth the risk?

Another Builder Home Trade Complete

Ray Williamson (Dream Living Realty) — Tue, 28 Apr 2009 15:03:03 -0500

We did it again! Reward Builders and Dream Living Realty have made another family's dreams come true in Cary, NC. Our latest clients "traded" their home in the Park at Westlake community for one of Reward Builder's new homes in Highcroft Village. This is the second home that Reward Builders has taken on trade this year. Stay tuned to the blog later in the week as we post this great resale home in the highly desirable Park at Westlake community for sale. That's right... Reward is coming in and freshening up the house and putting it right back on the market at a great price.

If you are looking to find out more about the trade program, just email me our check out our website at http://www.DreamLivingNewHomes.com/gold_customform3.asp

New Website Launch - Dream Living Realty

Ray Williamson (Dream Living Realty) — Fri, 09 Jan 2009 10:53:14 -0600

Bear with me, as I spread a little propaganda here.

With the launch of Dream Living Realty we are also launching two new websites. The first is now live and already providing over 350 people with exceptional experience searching homes on the local MLS. The site is http://www.SearchTriangleMLS.comthis site is designed and managed by a leading provider of IDX solutions for brokerages. So far the feedback we have received from home hunters has been very positive.

And later this month we will be launching http://www.DreamLiving.tvYes, dot.tv Forget 360 virtual tours and welcome to the new way of touring homes. Video tours of homes will be displayed on channels specializing in the types of homes consumers are looking for. The First Time Homebuyers will enjoy tours of homes that meet their needs and budgets, while the bargain shoppers can check out the latest foreclosures as they hit the market. They will even be new homes featured on the site, including tours of model homes and new communities. Additional channels will be added shortly after launch to include luxury homes, downtown condos/lofts/rehabs and even a For Sale By Owner channel.

There is no doubt that real estate is a slowing market and it requires quick adpatation to the changing times to succeed.

Living the Dream!

Ray Williamson (Dream Living Realty) — Wed, 07 Jan 2009 20:18:15 -0600

We have launched Dream Living Realty!

Ok we did it a month ago, but as is evidenced by the business and not getting to the blog, it has been a very successful launch. That's right, Jamie Dawson, Ginger Wilson and I have launched Dream Living Realty and with the help of our awesome agents this January has been the best month we have recorded in the last 6 months. So much for a downturn and the dead winter season.

For those of you Realtors out there thinking about making the leap, it is not as difficult as one might think. But in the same breadth, I certainly under estimated the amount of work involved to get everything up and running. However, we continued to focus on current business first, making sure all of our clients were serviced and we unpacked boxes and setup in the ne digs over the holiday.

Get ready world, because not only are we "Living the Dream", we plan to have all of our clients Living the Dream with us. Here's to the successful launch of Dream Living Realty (The first, chapter 1, volume 1, ok I might be getting a little ahead of myself).

Bank Owned Opportunity

Ray Williamson (Dream Living Realty) — Thu, 30 Oct 2008 10:26:55 -0500

What a Deal-THOUSANDS! below Tax Value

906 Estelle Court
Durham, NC 27704



Type:	Single Family Home
Beds:	3
Baths:	2.5
Sq.Ft.:	1475
Price:	$119,900

Find more Distress Sale and Bank Owned Properties at: www.WakeForeclosures.com

What a Deal-THOUSANDS! below Tax Value; needs paint, carpet and kitchen cabinets... Now more upside-3 BR, 2.5 Bath in Lovely neighborhood on quiet Cul-de-Sac, LOTS of potential for a great investment, tree lined .30 acre lot, very convenient to shopping/airport and a lot of other good things, needs TLC. Sold as-is

View This listing online at dreamlivingnc.com

Brought to you by:
Ray Williamson
Email: ray@dreamlivingnc.com
Web: http://www.dreamlivingnc.com

Disclaimer: All information is believed to be accurate. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty, or representation about it. It is your responsibility to independently confirm accuracy and completeness.

Mortgage Brokers, Bankers and the Big Four

Ray Williamson (Dream Living Realty) — Wed, 29 Oct 2008 13:18:38 -0500

And to think I was worried that only the JPMorgan's and Bank of America's would survive. But now the government has decided that banks are a good investment and chosen some regional banks including my bank BB&T. How comforting!

So, as Realtors our first inclination is to steer all our business to the big players Bank of America, Wells Fargo and the like, because our favorite Mortgage Broker is not going to be able to make it in this competitive environment. True it has gotten much more competitive for mortgages and Bank of America for one is squeezing margins trying to grab market share (they are prohibited from getting any bigger in deposits, so they have to grow somewhere).

But, should we run to the big guys just because of the perception of security and better rates? Why does a buyer still want to work with a Mortgage Broker?

1 - Access to product and ability to jump to the next bank in line if something goes wrong. Mortgage brokers work with multiple banks, so if they have a loan in process at Wells Fargo and they tighten up requirements during the deal, the broker can take that same loan to BB&T and get the loan done there on the same terms.

2 - Visibility on yield spread! What is yield spread you may ask? Yield Spread is one of the ways a broker makes money on the loan and often times is used to provide lower closing cost options for the borrower. Only brokers are required to show how much they are compensated. Is that fair or simply a way for banks to get an advantage?

3 - Knowledge - Anyone can sit behind a desk at your local branch (no offense to the great ones that do that - Steve you're da man!), in many states it does not even require a license. Most brokers become a broker by choice because they have experience in the industry and know that they can offer a better service to clients and be compensated better as a broker.

4 - Aggressive, Creativity and Hungry - Brokers want to earn your business as they are not waiting for the next person to walk in the branch. It is important to start out working with a broker based on a solid recommendation. The reason yield spread needs to be reported, the reason that brokers got a bad rap for subprime lending were the bad apples. Every industry has them and mortgage brokerage is no different. The good news is that the crop is getting better and better every day.

At the end of the day, it's important to compare apples to apples. Good Faith Estimates are what is needed to determine which lender is providing the best deal. Like I tell my clients, all the money is green we just want the one that costs the least and is sure to get to the table.

Perhaps I'm cheating!

Ray Williamson (Dream Living Realty) — Tue, 28 Oct 2008 14:32:09 -0500

I really hope people don't think I'm cheating on today's blog post, but I do truly believe that this new listing is an example of how good people are able to live in the Raleigh/Durham area of North Carolina. The owners of this home could only dream about getting such a great house in Virginia for this price.

Drop-Dead Gorgeous!

109 Braxtonwood Dr
Angier, NC 27501


(ID # 1630283)
Type:	Single Family Home
Beds:	4
Baths:	3.5
Sq.Ft.:	3875
Price:	$359,900

Nearly-New Impressive 4 BR, 3.5 Ba, w/Lg Downstrs Owner's Ste that is Sure to Please-Huge Shower w/Dual SH & WIC!Granite CT, SS App, DR built for entertaining a crowd, Trey Ceil, Hardwood Flrs, Office, BonusRm, RecRm, 3 Car Gar, FrontPorch run the length of hm, Fenced BY.Has the Feeling of Elegance Tempered w/Simplicity of Country Livingto get to!

Near highway/freeway
Near schools
In-suite laundry
Family room
Formal dining room
Recreation room
Den/study room
Eat-in kitchen
Central A/C
Fireplace
Forced air heating
Hardwood flooring
Ceramic tiles flooring
2-car garage
Walk-in closet
Ceiling fans
Close to shopping

View This listing online at dreamlivingnc.com

Brought to you by:
Dream Living Team - Keller Williams Realty
Email: Jamie@DreamLivingNC.com
Web: http://www.DreamLivingNC.com
(919) 368-3737

Rates Low, Prices Faling - Buy? Maybe

Ray Williamson (Dream Living Realty) — Fri, 24 Oct 2008 08:22:55 -0500

Is now the time to buy? I say maybe. Sure rates are low and they are certainly moving lower, that's a good reason to buy. Prices have come off their highs but are likely going to continue moving lower, maybe not the best buy indicator. But, here's the thing, if you are a buyer looking to buy a home what is more important? Finding the house the meets your requirements or just getting the best deal and terms possible at the absolute low point of the market?

Yes, spoken like a good salesperson, right? Well, we need to find a way to convey this message properly as real estate professionals because we are hired to advise our clients and negotiate the best deal on the house that meets their requirements. All of our clients should be actively looking at homes now, getting daily alerts of new home coming onto the market. They should even go see them with their agent so that agent can get a better idea of what homes fit their needs and wants. If they find the right home, then buy it! Negotiate on price and terms, let the Realtor do their job. If their efforts do not yield a deal that is fair or better than fair to the buyer in this market, then move on to the next home that is perfect for you.

Buyers need to be looking at this as a place they are going to live for a longer period of time than in the past. This home is not going to the piggy bank t once was. A good agent will be able to teach them how to make money in real estate in other ways than solely in their primary residence. Which brings me to investors. I'm so glad to see the professional investors back in the market. A good sign for sure. Not the I wanna buy homes with no money down and paint 'em and flip them for 50% more money. Investors need to know how much capital is required and is my return good enough to justify the investment. That simple. If I put 25K into a house, including down payment and repairs, can I rent for a year and return 15-20% + on my investment. Or better yet, return 35% in a year's time in a lease purchase arrangement? When an investor asks the right questions, I get excited!

Is real estate a good investment? Have you checked the buy and hold strategy on Wall Street lately?

MagicJack - great leverage

Ray Williamson (Dream Living Realty) — Thu, 23 Oct 2008 09:16:38 -0500

One of the most important things that I ever learned in school was leverage. Not the excessive leverage of capital like what we have seen cause devastation to many companies recently. No, I mean the simple definition of leverage, specifically using technology and people leverage to be more efficient.

Our team has doubled in the last year in a declining real estate market, with sales off more than 40% from highs achieved just two short years ago. Why? Well, I decided instead of taking new found time (not busy as much with clients) to build systems. We put marketing on auto-pilot, changed contact management systems, and the list goes on and on. We also decided to expand our team into the Virginia market and as such I needed to find a way to have local phone numbers in Virginia.

At first we did the same thing that we do in NC, just got a cell phone and used that phone number on all of our marketing. But then, I found this great service called MagicJack that allows you to make unlimited calls for only $39.95 A YEAR! No long distance, no per minute costs and get this... it driven from your computer! It's really worth checking out. It has voice mail, caller id, even call forwarding. The voice mail is actually sent to your email address as attached sound file! Great Leverage. Now I can be anywhere and I receive calls like I'm actually in Virginia, and the best part for a very small fraction of the cost I would have had otherwise.

and so it begins again...

Ray Williamson (Dream Living Realty) — Wed, 22 Oct 2008 22:04:22 -0500

No I have not blogged before, but was quickly reminded of the principle I used to teach "Save Often". After posting what I thought was a fairly witty introduction to the blogging world, I navigated to another page and lost all my work! I had even spell checked.

No worries. It can only get better from here!