Triangle Area North Carolina Real Estate Blog (Raleigh Durham Wake County)

Once Again the Triangle Tops Forbes Best Places to Live List

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Thu, 02 Apr 2009 21:57:06 -0500

Once Again the Triangle Tops Forbes Best Places to Live List

Either way, we are in better shape than most places with regards to employment, real estate and other factors. Sure the North Carolina unemployment is the 4^th highest in the country at just over 10%, but our local area is much lower than the national or state average. Why? Because of the diverse industry that makes up our area. We have a medical community based on the colleges in the area, government jobs as the capital of the state, the tech sector of RTP, among other industries. The problem is not the market here. People are still coming here for employment and a great quality of life. The problem is that people cannot sell their homes where they are coming from and in turn, they cannot buy here which affects our market.

In most economic down turns, you do not realize they have begun until they are really bad and it is only then when you look back and see when they actually started. The same is true of the recovery. It usually begins to happen when things are at their worst, and people do not realize the recovery is underway until it has already started. Could the recent rebound in the market signal we are almost there? Who knows – trying to time anything is tough, and I feel that things cannot get much worse, so they have to get better right?

Back to Forbes list. According to WRAL, Forbes magazine cited the Triangle's strong job growth – both past and projected – low business costs and highly educated work force.

The region's unemployment rate jumped to 7.9 percent in January, losing 12.200 jobs, and IBM laid off several hundred workers in Research Triangle Park on Thursday.

Forbes said the number of jobless will likely continue to grow this year after five years of 4 percent annual job growth. The employment picture is expected to brighten in 2010 and 2011, however, and Moody's Economy.com projects a three-year annual employment gain of 1.4 percent, which would be the 15th-best in the country.

"Raleigh is holding up better than any other place in North Carolina," Matthew Martin, an economist at the Federal Reserve Bank of Richmond, Va., told the magazine.

North Carolina placed six metros among the top 20 on Forbes' list. Asheville finished sixth, Wilmington was 13th, Winston-Salem was 18th and Charlotte was 19th.

I am glad I am in the Triangle and I am glad I am selling real estate here!

Unprofessional Behavior?

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Sun, 24 Aug 2008 07:28:22 -0500

I have an out of town buyer who recently wrote a contract on a home that they saw when they were in my area looking for homes. They called me and asked to write the contract and email it to them to sign. I did, and then called the listing agent to tell her that I should be sending in the contract withi8n a day or two.

My buyers took longer than expected to sign the contract as they wanted to make sure that they had financing in place and that this was the house for them. In the mean time, the listing agent called to see the status and I assured her that the minute I had the contract I would forward it to her as I wanted to get a deal done as much as she did.

Several days later, she called again to tell me that there was another offer that was possibly coming in and that I should encourage my buyer to sign the deal quickly if they wanted to assure themselves that they would have their contract accepted.

This action perplexed me for several reasons. First; if there was another offer REALLY coming in, why would this realtor care if we got our offer in first? Second; how did she know what our offer was going to be? It could have been contingent; it could have been fairly low with any other number of unfavorable terms.

My first thought was how long had this person been a realtor. I looked up this person’s information, and was shocked to see that they had been licensed for over 10 years. Certainly not the actions I would expect from someone who had experience. This is the type of behavior that I would expect from either a new realtor, or a desperate one.

Did this person think that telling me there was another offer would make me run back to my buyers and prod them into making one of the biggest decisions of their lives in a hurry? Who am I working for?

I have come across this behavior many times, and each time, it never ceases to amaze me that realtors actually tell me there is another offer in order to move along my offer. If there is another offer coming in, work with that one!

It comes across as extremely unprofessional in my opinion, and sets the tone for the type of person that I will be working with if and when we go to contract.

As it turns out, the contract never came to fruition as my buyers had second thoughts and the home is still on the market over a month later. That other offer never came is either. Surprise!

Any thoughts? Do you act in this manner? Do you think this is unprofessional? I do – and bush league as well.

Cary North Carolina is growing again. Top 10 Fastest Growing Cities in North Carolina

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Thu, 10 Jul 2008 07:47:46 -0500

In my opinion, Cary North Carolina is the best place on earth to live; then again, I may be prejudice as that is where I live. I relocated to the area from Florida, and in doing research I chose Cary for a number of reasons. Its suburban feel even though it is a larger city, its green spaces, nice subdivisions, great people and schools, and family environment.

Over the years, Cary has gone through growth spurts and slowdowns in growth. These recent slowdowns were as a result of governmental policies that felt that Cary infrastructure could not sustain the 7% growth rate as evidenced by its congestion and lack of school space.

The most recent government is more growth friendly, but at a slower, more sustainable pace, which in my opinion, is healthy for the area.

According to figures released today by the Census bureau, Cary is the 5^th fastest growing largest city in the country. Town leaders say growth-friendly policies and declining job markets in other parts of the country have helped Cary grow. Those who have moved to Cary recently from other parts of the country say they were drawn by its suburban feel, its affordable housing and its abundance of pristine parks, golf courses and shopping centers as well as the area's economy and job growth.

With growth comes issues such as traffic, school reassignments, loss of suburban character, among other issues, but unlike previous leadership, the current administration has plans to grow but not as fast as before. But even if Cary continues to swell, most town leaders and residents seem to agree that it remains a great place to live. It has Wake County's lowest tax rate, a plentiful water supply, tidy neighborhoods and amenities such as public pools and greenways

While Cary's growth in comparison with larger cities in the nation is swift, within North Carolina, it is fairly small. Many smaller Wake County cities are growing at much more rapid paces. For example, Rolesville has grown 29% in the same period. Raleigh has placed 13^th on the same list of larger city growth.

Like it or hate it the Triangle area has and continues to be a destination for many across the country and will continue to grow.

Below is a list of the top 10 fastest growing cities in North Carolina as well as a chart of Cary's growth over the past 5 years:

1. 1. Rolesville, pop. 2,242

2. Carolina Shores, pop. 2,312

3. Holly Springs, pop. 19,684

4. Knightdale, pop. 7,397

5. Wake Forest, pop. 25,329

6. Fuquay-Varina, pop. 15,394

7. Fairview, pop. 5,301

8. Mebane, pop. 10,155

9. Stallings, pop. 8,742

10. Huntersville, pop. 42,579

17. Cary, pop. 121,796

Cary's national rank among fast-growing areas has risen dramatically in the past few years. Here is where it stood among municipalities with more than 100,000 people for the past five years:

2007: 5 (7.3 percent growth)
2006: 8 (5.1 percent growth)
2005: 22 (3.3 percent growth)
2004: 63 (1.4 percent growth)
2003: 43 (1.7 percent growth)

Wake County Tax Rate - How to figure your new property tax bill (Cary, Apex, Holly Springs, Raleigh and all cities within the county)

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Mon, 07 Jul 2008 11:29:45 -0500

If you live in Wake County and have been waiting to find out what your new tax bill will be, the wait is over. The News and Observer has a great tool to find out estimate what your taxes will be for this coming year. You can figure out what the county taxes are and if you are inside city limits (Cary, Apex, Raleigh, Holly Springs, and all other cities within Wake County, you can find out your total property tax bill. All you need is the web address and your current assessed value. If you have last year’s assessed value (before the revaluation), you can also find out how much of a tax increase you have been hit with (but it is not necessary in order to calculate this year’s estimated tax bill). Due to the concept of revenue neutral, the rate was not actually that bad (5%, or less than 200$). You can find the tool at:

http://www.newsobserver.com/1181/story/1129367.html

Let me know if you have any questions about how to use the tool.

Data Backup - To Backup or Not? Your Hard Drive WILL Fail

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Sun, 22 Jun 2008 16:30:28 -0500

There are two types of people in this world. Those who back up their data regularly and those who will backup their data regularly once they have a hard drive failure and lose important data (pictures of their kids, client information, etc).

ALL HARD DRIVES WILL FAIL AT SOME POINT! Did you hear that? Every hard drive will fail, go bad, become corrupt and eventually die. Hard Drives spin 7200 times per minute and get very hot – this inevitably causes them to die over time. Some go after a year, some last much longer, but you just never know when one my die.

What happens to your data at that point depends on how (or if) you have been backing up your data. Sometimes, only the boot sectors on a hard drive become corrupt and you can remove the hard drive, put it in another computer and recover valuable data. This obviously takes some expertise. Sometimes the hard drive is unreadable and gone forever. In this case, sometimes data can be recovered by a data recovery company that takes the hard drive apart, puts the internal disks through some technical process and recovers some or all of the data. This is VERY expensive – in the 1000’s.

As an agent I have a ton of valuable client data, ad campaigns, and transaction documents on my computer. As a parent, I have even more valuable data such as my kid’s documents and pictures and videos. If I were to lose any of this data, life would not be the same.

There are many ways to back up data automatically. The best way is to buy an external hard drive and software that will allow you to set your computer to back up specific files and folders automatically daily, weekly, or at some other interval. I recommend backing up to at least two different sources so that if one back up fails, you have another. This way you can be worry free with regard to losing data.

I am a back up freak. Technology is a hobby for me. I have 5 computers running in my home as well as a server. All of my data resides on my server so that it can be accessed from any computer in the house. Additionally, critical data such as transaction and client information and family pictures and videos are backed up to hard drives on all 5 computers every night. In addition to this, I manually back up to a special hard drive that is kept in a fireproof and water proof safe. This may be overkill, but I never worry about losing my data.

There are several online services that charge about 50$ per year to back up your data. The first backup can take a long time, but as you use files, it is constantly backing them up via the internet. Data is encrypted and the companies claim it can only be read by you, but I am always skeptical when someone else has access to my data.

However you chose to back up your data, BACK IT UP. Please do not be the type of person who only backs up your data once you lose important data. IF you have any questions, or need to see if you can have data recovered, let me know – I own a company that attempts to recover data at a low level (not expensive).

Cary North Carolina (Wake County) Tax Rate Changed Yet again!

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Sat, 21 Jun 2008 21:30:03 -0500

Well I have written about property taxes in Wake County North Carolina several times this past two months. It seems to be a hot topic. Because North Carolina revalues property every eight years, and their property taxes are than based on that value, the city and county governments must make sure that they adjust the tax rate so that residents do not get a huge tax increase in a single year. This concept is called revenue neutral.

I am originally from Florida, and there, the tax rate (in South Florida) is roughly 2% of the house value. They have a strange system that is capped at 3% gain each year if it is your primary resident, but if you move, you start over. My old home doubled in price over a relatively short period of time. So did many houses. For example, a home that was purchased for 260,000 would have yearly taxes of approximately 4500$. The person who then bout the same house for 400,000 would pay about 8000$ in taxes while a neighbor in the same exact model, who built the home 20 years ago and never moved may only be paying 1200$ in taxes - can you say unfair.

Back to North Carolina, Wake County, and Cary in particular. Cary determined that they need to reduce their old tax rate of .42 to .33 to be revenue neutral. they then decided that due to growth, then need more money (don't we all), and decided that even though they agreed that .33 was revenue neutral, they were going to change their rate to .37 to make up the shortfall in their proposed budget. Well several days later, several commissioners decided they had changed their minds about the rate and the town then decided that .33 would be the rate, but would go up over the next several years to account for the growth. I am all for taxes paying for the growth within a reasonable amount. I would even agree that Cary should go a few cents above the revenue neutral rate to help pay for infrastructure for the growth. One thing that the town does not mention, although I am sure that they must realize it is: Much of this growth is due to new construction. The land that the new homes are being constructed on was not producing the tax receipts in the same amount that it will be once the homes are constructed, so some of this growth is paying for itself. What about the revenue from impact fees from this new development? I won’t even go there, but needless to say, kudos to Cary for doing the right thing.

If you have any questions about the tax rates throughout Wake County, please do not hesitate to contact me.

Want to Sell Your Home? Be Realistic

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Mon, 16 Jun 2008 12:23:23 -0500

I do not normally reprint articles from other sources, but I felt that this one hit the subject of frustrated sellers and realtors in a down market right on the head. It talks about pricing your home right to sell without regard to what has happened in the past, as well as the sellers mindset and frustrations that realtors feel when sellers are not realistic or do not understand pricing and their market.

Whether you are a seller reading this, or a realtor, this article can help you see the other side of the discussion that is taking place between sellers and realtors. This article was originally printed in the Sun Sentinel which is a South Florida newspaper. The article was written by Paul Owers on June 16^th. Although I am a Realtor in the Triangle Area of North Carolina, this article is written with the South Florida audience in mind, and while this is one of the harder hit markets in the country, it can be useful anywhere that there is a declining market and/or a market with glut of homes, which is just about everywhere these days. I have bolded some phrases and ideas that hopefully will resonate with sellers.

Setting the right price for a home sounds simple, but too many sellers aren't doing it.

They insist that their properties are special and holding value, even though the median prices for existing homes have plummeted 26 percent and 24 percent, respectively, in Palm Beach and Broward counties since late 2005.

These stubborn sellers ask for too much money, ignoring the list prices of nearby homes, not to mention their real estate agents' advice. It's a short-sighted strategy, one that ultimately costs tens of thousands of dollars in a depressed housing market like South Florida, agents say.

"The worst thing to be in this market is one of those homes that's been listed for six, eight, 10 months with no consummated deals," said Beverly Rothstein, an agent in Broward and Palm Beach counties. "That's when the vultures come out, and you have to sell the house at a deep discount that you wouldn't have had to take if you had priced it right from the beginning."

Olga and Manuel Delacruz listed their three-bedroom Greenacres home in central Palm Beach County for $199,000 about four months ago. When it didn't sell, they dropped the price twice. Now they're asking $169,999, which is where they probably should have started, their agent, Douglas Rill, said.

The Delacruzes and other owners of lower-priced homes are likely competing with an increasing number of foreclosures. Lenders don't want to hold these properties, so they're slashing prices. Individual sellers must do the same if they have any hope of finding buyers.

"It's a little frustrating," said Olga Delacruz, 47, a security guard. "If we have to lower it one more time, we will."

Many sellers asking too much for their homes now are doing so because they paid inflated prices during the housing boom of 2000 to 2005. Agents cringe when they hear clients say they have to get a certain amount of money out of their properties.

"Your need doesn't change the market value of the house," said Rill of Century 21 America's Choice Realty in West Palm Beach. "Sellers will say, 'Can you at least try it at this price?' I'm happy to try, but it's not going to work."

Because of the glut of properties for sale, even beautiful homes won't attract interest unless buyers perceive value, said television commentator Gerri Willis.

"There's no bigger issue for sellers right now than pricing," said Willis, host of CNN's Open House and author of Home Rich: Increasing the Value of the Biggest Investment of Your Life.

In the book, Willis writes about price break points, which are psychological limits that buyers often set for themselves. She said a buyer may be willing to spend up to $499,000 on a home but will balk at $500,000, even though the $1,000 difference is barely noticeable on a 30-year mortgage.

Buyers prefer to spend at the top end of their price ranges, but they probably won't even visit properties if they're priced above the psychological break points, Willis said.

So a home valued at $310,000 would attract plenty of interest if listed at $299,000, she said. Asking for more than that would exclude buyers whose limit is $300,000.

And while that same home theoretically would draw people willing to spend up to $400,000, they're probably more interested in properties at the top end of the price range.

"The big question I always get from sellers is, 'At what point should I be willing to cut my price?'" Willis said. "But that's the wrong mindset. You've got to go into the market at the right price."

Terry Story can relate. The agent in Palm Beach and Broward counties wanted to list a Boca Raton home last summer for $575,000, but her client held firm at $625,000. Story knew that was too high, even though there weren't a lot of comparable sales in the area to go by.

Meanwhile, a similar house across the street was priced more competitively from the start and sold quickly for $482,500. Story's seller could do nothing but cut his price, finally finding a buyer to pay $460,000 after six frustrating months.

Instead of getting ahead of the price curve and establishing market value in the neighborhood, he was left to react to it. "He chased down the market," said Story of Coldwell Banker Residential Real Estate.

Other sellers are more realistic and realize that being able to move quickly is more important than trying to get the highest price.

Virginia Goss first tried to sell her Boca Raton house on her own, but had no luck. So she listed it with Story, who suggested she put it on the market in the low $300,000 range. Although that was much lower than she preferred, Goss listened and immediately sold the home, albeit at a loss.

"It's hard to swallow a loss, but we're moving on," Goss said. "There's value in that."

Is your property overpriced?

Ssellers can use the following guide to determine whether their properties are overpriced:

Buyers don't perceive value if the home gets no showings. The price must come down substantially.

The price is in the ballpark if the home gets a few showings but no second looks. Sellers should still lower the price.

The home is priced right if it's getting steady showings and repeat visitors. Expect an offer.

How You Can Earn money from your Website

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Wed, 11 Jun 2008 08:03:21 -0500

Have you ever heard of Google Ad Sense? If not, look to the right of this page, underneath where it says Triangle Realtor – Raleigh Durham Real Estate Blog. That is Google Ad Sense. You sign up with Google, and they give you code to place in any type of website, including this blog that places targeted ads relevant to your website content. When people click, you earn money. You can also place Google Search boxes on your website and earn when people use the search box.

How do you sign up? Just below the ad box to the right on this page is a smaller box that says Get Targeted ads on your site with Google AdSense. Click that and it will take you to a Google sign up page.

There are tons of different type of ads. Links, banners, boxes, text only, image only, text and images in all shapes and sizes. Even ads with embedded videos and you tube video links. The possibilities are endless. They can be as unobtrusive or prevalent as you would like. You can add them to your personal web page, or to this blog. Visit my website – yourtrianglerealtor.com to see how I am using the ads. Currently I only have a search box at the top of each page, but tonight, and over the next several days, as I explore AD Sense, I will be adding more ads, trying to strike a delicate balance of not having my page look like an advertising site. Check back to see what I have done, and make sure to click on the links on the right as each page may have different uses of Ad Sense. Also, if you happen to click on my web page, any feedback would be greatly appreciated. I created it myself and it is still a work in progress. Happy earning!

UPDATE: As I see people commenting that they plan to use it, keep in mind that you will sign up today, and it may take a few days for Google to approve your account and then they will email you that your account has been approved. Once that happens, you can literally have your ads up within minutes. If you have any questions on how to create or post and ad on this site or your own, please do not hesitate to contact me. And if you are signing up for Google Adsense, please use the box to the right below the main Google Ads and just above my listings as I will get credit. Thanks for reading.

Raleigh (Triangle Area – Wake – Durham County) Consistently places in top ten places to work and live

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Tue, 10 Jun 2008 18:52:40 -0500

The Triangle Area – Wake County in particular always ranks high in lists showing the best places to live and work in the United States. 2008 is no exception. Below is a list of places where the Raleigh area ranked close to number one:

Kiplinger ranked Raleigh as the number 2 city to work and live in its list of best places to live, work and play. Kiplinger bases its rankings on things such as affordability, crime, employment, types of industry, income growth, median growth, education and economic opportunities, Creative -class workers -- scientists, engineers, educators, writers, artists, entertainers and others – which inject both economic and cultural vitality into a city and help make it a vibrant place to live. They also use data to account for suburbs that match the metropolitan area. The Town of Cary is mentioned by name.

Money magazine also ranked Raleigh high on their list. They ranked Raleigh at number 4 on their top ten big cities to live based on similar criteria as Kiplinger, but they only included larger cities.

Forbes Magazine ranked Raleigh number 2 for business and careers. They used ranking criteria such as industry, business costs, taxes, office space costs, low property taxes, affordable housing for employees and more.

There are many more lists where Raleigh makes the top ten. As a resident of the area and a realtor, what I see living and working here mirrors what the lists claim. There are tons of people moving into the area and very few moving out. The ones I work with tell me they are moving here for mild weather, good business and economic opportunities, the educated population, the friendly people, the fact that you can be both at the beach or in the mountains in under four hours.

I am glad to be living in the area. Can I help you find a home here?

Cary North Carolina Hidden Treasure – Hemlock Bluffs (wake County Raleigh Area)

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Tue, 10 Jun 2008 16:28:36 -0500

Hidden in the south part of the Town of Cary, North Carolina is an incredible nature adventure for both kids and adults. The Hemlock Bluffs Nature Preserve and Stevens Nature Center are located at 2616 Kildaire Farm Road, between Tryon and Penny Road (closer to Penny).

Hemlock Bluffs is part of the Town of Cary Parks and Recreation. This site offers the feeling of being in the mountains, on a long hiking trail. It is the ideal place to get away from everyday life and feel like you are a million miles away, without spending money on the gas necessary to go to the mountains.

Hemlock Bluffs Nature Preserve is a 150 acre oasis in Cary, protecting a series of north-facing bluffs along Swift Creek. The orientation of the bluffs creates a microclimate that is cooler and wetter than the surrounding area. This microclimate has allowed a population of Eastern Hemlock trees, and other vegetation uncommon in the piedmont, to thrive.

The bluffs separate the Preserve into two areas, a low-lying floodplain along the creek, and a forested upland of mixed deciduous and pine trees. Several elevated platforms along the crest of the bluffs allow the visitor to look down on the crowns of trees along Swift Creek. This is especially convenient during spring migration when warblers, vireos, and tanagers can be viewed among the emerging leaves.

Viewing becomes more difficult once the trees completely leaf out. The floodplain is accessed by the 0.63 mile Swift Creek Trail. The trail is good for resident birds, migrants, and summer visitors. Waterthrushes, kingfishers and herons can be seen along the creek; you may be lucky enough to spot a Least or Pectoral Sandpiper, both species have been sighted in the park.

The floodplain's mature trees harbor tanagers, warblers, and vireos in the summer. Residents and winter visitors make other seasons entertaining as well. Access to this trail is via a staircase that descends the bluffs, so this portion of the park is not handicapped accessible.

The upland area can be accessed by the 1.1 mile Chestnut Oak Loop Trail. This area is also good for resident birds with woodpeckers and White-breasted Nuthatches locally common. The oaks along the trail are especially good for migrating warblers, tanagers and vireos. Look and listen for resident owls in the Beech Cove area. The upland area was formerly more difficult to bird due to a fairly closed canopy, but recent storms have created open areas more conducive to viewing.

The many downed trees have provided habitat for a thriving population of wrens. One can usually count on hearing the "Tea-kettle" call of the Carolina Wren at almost any time. Much of the Chestnut Oak Trail is graded and mulched, and is handicapped accessible.

Hemlock Bluffs offers the following:

· Unique stand of Eastern Hemlock Trees

· Approximately 3 miles of trails

· Scenic Observation Platforms

· Excellent bird and wildlife watching opportunities

· FREE ADMISSION!!!

Operating Hours: Daily - 9 a.m. to Sunset

Stevens Nature Center was designed to complement the natural surroundings of Hemlock Bluffs Nature Preserve. The Stevens Nature Center provides information about the natural history of the area and the plants and animals that live in the Nature Preserve. The nature center also offers a variety of nature programs for participants of all ages on a year-round basis.

The Stevens Nature Center offers the following:

· Nature's Niche Gift Shop

· Hands-on educational exhibit hall

· Classroom

· Outdoor education shelter

· Native wildflower garden

Here is a link to the programs offered http://townofcary.org/depts/prdept/bro01/prnatureed.pdf
my kids go weekly and learn about nature. As we approach firefly season, my kids will attend their firefly sessions to learn and view these insects.

Operating Hours:
May-September: Monday - Saturday, 10 a.m.-7 p.m.; Sunday 1-7 p.m.
October - April: Monday-Saturday, 10 a.m.-5 p.m.; Sunday 1-5 p.m
Closed on all official town holidays.

Cary North Carolina – Wake County – first to propose raising property taxes

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Tue, 10 Jun 2008 07:31:30 -0500

In a recent post I wrote about Wake County property taxes and how they are supposed to remain what is called revenue neutral. That means that even though the entire state was reassessed for the first time in 8 years, and North Carolina property values shot up at an average of 38%, the county had to lower its mileage rate in order to take in more revenue this year than it did last year. Towns and cities within the counties were also to follow suit.

For some reason, Cary has just decided to take a look at that and claim that due to growth, they need to think about raising the rates and moving away from revenue neutral. I do believe that the exact amount that came in last year should be increased a little. This area is experiencing tremendous growth and we need the money to pay for that.

Something to consider is the fact that many people are moving into new development as the area grows and tax revenue will grow due to the increase of households. It is not as if there are people moving only to existing housing. Despite this, the Town of Cary feels the need to lay out a plan to increase tax rates over the next several years, even though over that same time period, they will be bringing in more tax receipts due to the number of new households being created by construction. Is a tax rate increase necessary? Possibly a small one, but the one they are talking about, brings us right back to where we are now in a few years, with a 38% increase in property values that will become a huge increase over time.

Cary’s proposal, handed out at a recent meeting is as follows: the tax implications of covering Cary’s increasing debt expense and maintaining four months of cash reserves. To meet those obligations, tax rates would start at 33 cents in 2009; go to 37.98 cents in 2011, 41.03 cents in 2013 and up to 43.84 cents in 2020.

Semantics actually creeps in as some officials actually still claim that this is policy will lower taxes, because the rate actually never gets to where it was before this latest revaluation. Technically it is a decrease in the tax rate, but because of the higher property value, it still amounts to a tax increase and a large one at that if this proposal sails through.

It is important to watch how this develops. If it passes, it is likely that other area towns such as Holly Springs, Apex, Raleigh, etc. will follow suit. Visit the Town of Cary website to learn more the process on raising tax rates.

rates.

Foreclosure Bailouts. How do you feel and how do they affect you?

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Mon, 09 Jun 2008 07:20:02 -0500

By now, we all know about the foreclosure issue and the credit crisis. You may even be one of the millions of people who entered into an adjustable rate mortgage and are now put into a situation where your mortgage has reset or will rise t soon, causing your monthly payment to go significantly higher, and in turn, you may not be able to afford your house.

These mortgages were originally designed for self employed people whose income fluctuated from month to month afford more house at lower payments. As property prices rose, many people turned to these mortgages in areas such Florida, New York and California as a way of affording homes that they could otherwise not afford. 62% of the homes in foreclosure are in those areas. I live and work in Wake County North Carolina, which has a large number of foreclosures compared to a year ago, but still has a fairly healthy real estate market due to factors that I have written about in a previous blog.

Most people felt that when the reset occurred, they could simply refinance or sell their homes. Others claim that they did not understand the nuances of the loan, or were misled about the loans, even though they signed the papers.

Whatever the reason, these mortgages are causing many people to walk away from their homes, and in turn it is effecting the overall economy, and prices of homes for people who did not take these risky exotic loans out, and who have been responsible in purchasing homes that they can afford with loans that they understand.

Recently, the government has begun a bailout process with the assistance of the Hope Now hotline and there is a bill approved by the House in May would allow the Federal Housing Administration to guarantee up to $300 billion in new loans to help homeowners facing foreclosure. Borrowers could get more affordable loans worth no more than 90% of the home's value, meaning that participating lenders would have to take a significant loss on the loan. The bill was sponsored by House Financial Services Committee Chairman Barney Frank. Senate Banking Chairman Christopher Dodd has a similar measure.

Lenders are more willing to work with buyers to come to a solution, even if it means that the lender has to rework the loan in more favorable terms to the borrower and while taking a loss.

Some people, who did not take out these loans, are angry about the bailout of what they call irresponsible borrowing and lending. Their feelings are, why should these people be able to stay in homes that they could not afford because the market has changed. They feel that they are also under pressure with everything else rising, but no one is helping them. Other feelings are that I do not want or need help, but I do not feel it is fair for the government to help those who did not understand what they were getting into or could not afford.

However you look at it, there are people in trouble, and there are others that are angry. Some anger is directed towards the banks, who people feel were lax and greedy, approving loans for people who they knew could not afford these homes, but were blinded by profit. Many people claim predatory lending and fault the banks with creating the current crisis.

It is a situation where it really does not matter who is at fault because the crisis is here and it is affecting everyone in the real estate market, not just those who are in danger of losing their homes.

The banks do not want to foreclose in this type of market as they only stand to lose money. When homes are foreclosed, banks try to unload them, and since there is a glut, they do so below market, many times just to recoup a fraction of their original investment. This, in turn brings down the prices in the market as you, as a seller, are competing with foreclosures being offered at lower prices. As these homes close, they become the comps to your sale and the average prices lower. At the same time, the supply and demand balance favors the buyer as there is already a glut of homes in most markets.

Is the bailout fair? I do not think so, but is it necessary? I think it is so that this current credit crisis does not completely cripple the already failing housing and credit markets. Even worse, only 13% of all ARM mortgages have reset. There are a staggering ARM resets coming in the next few years. There is 5 billion dollars worth or ARM Mortgages set to reset in 2009 and 10 billion in 2010. Could this be the next real estate crisis or could it cause the current one to last well into the next decade? It might if we do not get a hold on things now. Again, while the bailout ideas being passed through congress may not seem fair and just, it may be the only way to avoid a long lasting housing crisis ten times worse than what we are experiencing now.

Relocating to North Carolina

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Fri, 06 Jun 2008 20:06:06 -0500

Thinking about relocating to North Carolina? It’s a great place, and there is a lot to take in. When relocating anywhere, there are usually several reasons. Most of the time, people relocate due to work and family. Sometimes, people are looking for a change. Sometimes people relocate to get a change in lifestyle. A person form a state like New York may relocate to a state that gives them a more laid back, slower paced life. There are so many reasons for relocation, but whatever the reason, it helps to have good resources to help you determine not only the main area of relocation, but an exact location.

When considering North Carolina, there are a lot of things to consider. If you are not forced to relocate to a specific area or city, keep in mind that North Carolina has several major areas, each with their own culture and even climate.

There are the mountains, located in the western portion of the state. This starts out in the foothills and goes towards the border of Tennessee. These mountains are part of the Appalachian Mountain chain and the largest city in this area is Asheville. This area is famous for its Snow Skiing and outdoor activities in the summer and of course, as it is the highest point in North Carolina, the climate is the coldest in the state.

The Piedmont region is the middle third of the state and the closer that you get to the mountains, the more hilly the terrain becomes. The elevations of this region range from about 300 feet in the western Coastal Plain to about 1,500 feet near the mountains. The boundary between the Coastal Plain and the Piedmont is called the fall line or fall zone. Along this are, rivers flow from the older, harder rocks of the Piedmont to the softer rocks of the coastal Plain. Along the fall line, rivers form low waterfalls, and rapids. Below the fall line, streams are usually sluggish and smooth-flowing. It is in this region that the two major cities reside – Charlotte and the Raleigh Durham area.

The coastal plain makes up the eastern third of the state and is known for its beaches, especially the Outer Banks, Cape Hatteras, Cape Look Out, and Cape Fear are all part of this area.

Where ever you live, North Carolina has a great climate. It has four distinct seasons, but most winters are fairly mild (except for the higher areas in the mountains), the spring and fall are simply beautiful, and while the summer can get hot, it does not last too long. Because of this, North Carolina weather offers something for all types – those who love a change of seasons, but at the same time, those who do not like extreme temperature changes form season to season.

The economy in North Carolina is unique and is what has been helping most areas sustain rapid growth. The beach areas thrive on tourism during the summer months but go quiet during the rest of the year. The Raleigh Durham area, better known as the Research Triangle Park, or RTP, is one of the fastest growing areas of North Carolina. Often called a recession proof economy, there is a great mix of Technology (sometimes referred to as the Silicon Valley of the East), Biotechnology, and Medical campuses. The University community (University of North Carolina, Duke, Wake Forest, and North Carolina State) are all within a half hour of each other and further add to the medical and other research going on in the area. Unemployment in this area is low and high paying professional jobs are plentiful. Because this area did not experience the housing boom where prices skyrocketed (they gradually inched up at a healthy 3-5% pace over the last 5 years), housing is relatively affordable. Real Estate taxes are reasonable and homeowners insurance is cheap. The farther out that you go from the Research Triangle Park, the more affordable housing becomes. Raleigh is also the capital city, and with that, you also have the economic benefits of government business sustain the area.

The Charlotte area is more of a financial center with headquarters of large companies such as Bank of America. Whenever you see a list of top 20 metropolitan areas and housing, Charlotte has consistently been the one market over the past several years that has been slowly growing while all others are in decline.

There is so much to do in this state. There are not many states where you can be at either the mountains or the beach in 3-4 hours. Overall, people are friendly, life is affordable, and the weather is great. Plat fescue grass and you will have a green lawn all year round, even in the winter. I relocated from Florida to North Carolina and did a lot of research before I moved. I have compiled some of the sites I used to give me all the pertinent information that I needed. Please go to my website and see if any of these links might be useful to you. www.yourtrianglerealtor.com . Click on the Buyers Resources link and Triangle Area Information Link on the left side menu and you will find tons of resources that will help you if you are looking to relocate here. Specifically, the link called relocation information for the Triangle Area on the buyers resources page will give you great statistics about weather, crime, climate, population, demographics, home sales, and anything else that you could possibly think of. Please do not hesitate to contact me if you have any questions about the area. I live and work in the Triangle area (Raleigh – Durham) and specialize in any areas within Wake County (Cary North Carolina, Raleigh North Carolina, etc.) and Durham County. I’d love to hear from you.

Jason Goodman, Realtor

Monthly Trends and Statistics in North Carolina (Wake County – Triangle Area) Real Estate April 2008

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Wed, 04 Jun 2008 07:56:15 -0500

Watching the trends in real estate in a given area help us to determine if a bottom has occurred. Sometimes we cannot tell until we look back at the data. This was true of the stock market crash in 2001 and during most recessions. If we analyze the data on a monthly basis, we can usually see trends that lead us to understand what is going on. We can never really all a bottom until we have enough data to back that up.

Most analysts, as well as myself, believe that we may be near a bottom in terms of pricing, but we also do not feel that a turnaround is going to happen in the near term. The large numbers of inventory alone will prevent that from happening, as well as other factors such as tight lending and the economy.

Most buyers want to know when the bottom occurs so that they do not buy when their property is expected to go down, and most sellers want to know as well so that they do not keep lowering their price or so that they can gauge what they may actually sell their home for, so that they can then plan their next move.

Each month, as statistics for the North Carolina Triangle (Wake County) area are released, I will attempt to analyze and bring them to you. Today, I will give you housing statistics and analysis for April, and as subsequent data is released, I will bring that to you as well. The statistics are broken out by the main counties of the North Carolina Triangle area (Wake, Durham, Johnson, Orange) and other, which represents other areas in the Triangle. I have included the numbers from March in order to paint a picture of upward or downward trends.

Single and Multifamily Homes Sold

Month	Durham	Johnson	Orange	Wake	Other	Total
Mar-08	303	232	95	1,245	342	2,217
Apr-08	299	215	114	1,292	340	2,260

Average and Median Price

Month	Durham	Johnson	Orange	Wake	Other	Total
April Average Price	$187,565	$175,121	$290,875	$251,771	$186,801	$228,183
April Median Price	$161,000	$154,900	$225,000	$176,500	$145,000
March Average Price	$201,790	$174,382	$334,449	$259,301	$190,592	$235,175
March Median Price	$170,000	$153,100	$280,000	$186,000	$148,000

The average home price has dropped by $7000 from March to April

Single and Multifamily Homes Sold (by Price – APRIL ONLY)

Price	Durham	Johnson	Orange	Wake	Other	Total
$0 - $79,999	47	10	6	27	54	144
$80,000 - $119,999	26	33	8	134	53	254
$120,000 - $159, 999	65	65	19	262	64	475
$160,000 - $199,999	63	41	15	228	53	400
$200,000 - $249,999	39	37	14	166	53	309
$250,000 and over	59	29	52	475	63	678
Total Units	299	215	114	1,292	340	2,260

Single and Multifamily Homes Sold (by Price – MARCH ONLY)

Price	Durham	Johnson	Orange	Wake	Other	Total
$0 - $79,999	36	18	4	29	62	149
$80,000 - $119,999	27	43	8	101	46	225
$120,000 - $159, 999	59	57	11	234	54	415
$160,000 - $199,999	62	42	5	214	56	379
$200,000 - $249,999	44	38	10	187	52	331
$250,000 and over	75	34	57	480	72	718
Total Units	303	232	95	1,245	342	2,217

Days on Market – April

Days	Durham	Johnson	Orange	Wake	Other	Total
0-30	98	52	31	382	82	645
31-60	54	35	33	268	51	441
61-90	42	26	8	177	38	291
91-120	24	17	5	94	33	173
120 +	77	80	35	316	125	633

Days on Market – March

Days	Durham	Johnson	Orange	Wake	Other	Total
0-30	86	39	40	393	74	632
31-60	46	38	12	227	50	373
61-90	38	32	13	141	42	266
91-120	36	30	7	325	36	233
120 +	92	87	22	316	128	654

Average Residential CLOSING price

Month	Durham	Johnson	Orange	Wake	Other	Total
March	$201,790	$174,382	$334,449	$259,301	$190,592	$235,175
April	$187,565	$175,121	$290,875	$251,771	$186,801	$228,183

Active Residential Listings

Month	Durham	Johnson	Orange	Wake	Other	Total
March	2,449	1,980	1,005	9,058	4,541	19,033
April	2,365	1,993	1,016	9,351	4,589	19,314

Yearly Data Since 2006

2008	DaysOnMarket	Specs	SpecAvgPrice	ResaleListings	ResaleClosed	Active	ActiveAvgPrice
Durham	87	510	$285,614	1791	811	2301	$248,471
Johnston	110	841	$250,125	1132	470	1973	$225,845
Orange	85	167	$565,011	837	317	1004	$446,597
Wake	90	3147	$432,328	6129	3074	9276	$365,517
Group Summary	106	4665	$393,500	9889	4672	14554	$337,000
*2008 v 2007*	*34%*	*10%*	5%	*33%*	*-24%*	*24%*	2%
2007	DaysOnMarket	Specs	SpecAvgPrice	ResaleListings	ResaleClosed	Active	ActiveAvgPrice
Durham	90	540	$299,282	1641	1023	2181	$246,953
Johnston	93	775	$256,934	898	593	1673	$218,785
Orange	82	153	$588,571	659	398	812	$454,770
Wake	73	2788	$412,334	4244	4172	7032	$363,913
Group Summary	79	4256	$375,100	7442	6186	11698	$329,200
*2007 v 2006*	*-10%*	*23%*	*11%*	7%	5%	*12%*	*13%*
2006	DOM	Specs	SpecAvgPrice	ResaleListings	ResaleClosed	Active	ActiveAvgPrice
Durham	87	404	$288,879	1659	984	2063	$230,234
Johnston	100	562	$216,489	814	525	1376	$191,949
Orange	86	153	$543,076	526	341	679	$450,587
Wake	73	2348	$362,388	3938	4022	6286	$315,401
Group Summary	88	3467	$338,513	6937	5872	10404	$290,906

How Do I Choose a Realtor in Raleigh, North Carolina or anywhere else for that matter?

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Tue, 27 May 2008 21:16:36 -0500

I have always said that all realtors have the same tools for marketing homes as well as finding homes for buyers. If that is true then how does a potential buyer or seller choose a realtor? There are several things that differentiate Realtors form each other. The differences can affect how you buy or sell a house and how much you pay or profit.

For buyers, there are several factors to consider. First, you want someone who knows about the local market. Sometimes that means that they have been around an area for a long time, but that is not the only thing to consider. Length of time in a market does not always translate into knowledge. They might be able to tell you that they can remember when a certain road was dirt, and a neighborhood was a farm, but that is not helpful today, for your purchase. Sometimes, someone who has been an agent for a while, but only in your market for a year or two might be just as good a source of knowledge. Why? Because most realtors, when relocating, will do 10 times the research that a local realtor might do for a buyer for themselves, and in the process, they will be cognoscente of learning the intricacies of the market. More importantly, you should ask how long your potential realtor has been an agent or broker. This should be followed up by asking how many transactions have they been part of (either on the buy or sell side). This will give you a look into their experience.

Another important question to ask, both for buyers and listing agents is how much of your business is referral or repeat business. Ask to speak to not one or two past clients but ask to speak to one client who has referred someone and also, the person that they have referred. A good agent builds business this way.

Do NOT pick a name form the internet or from the phone book unless you know someone who has worked with that agent before. Try not to call signs directly as you may end up using the seller’s realtor who really will not be representing you or looking out for your best interest as a buyer.

Look for someone who is involved in the community. Are they a member of local organizations? If you have children, do they have or have they had children your Childs age? This can help when looking at particular neighborhoods.

Make sure that your personality clicks. In the Triangle area, a buyer’s agent will, sometime after your first meeting, most likely ask you to sign a buyer’s agreement, which binds you to them, and in some cases, assesses monetary penalties if you use another agent. This is fairly common practice for Wake County North Carolina. Let this prospective agent take you out a few times, sort of like kicking the tires. Make sure you have the same mindset and outlook and that your personalities click. Don’t be afraid to interview several, even if they have come from a recommendation of a friend or family member.

Choosing a buyer’s agent will be one of the most important parts of the home buying process. It will set the tone for the whole adventure, and can lead to either a good experience or a bad one, depending on your agent. Furthermore, a good agent will work hard for you, help you to get the best possible price, and make sure everything goes smoothly and there are no bumps in the road.

For Sellers, many of the same things regarding the choosing of a buyer’s agent apply to you as well. As stated earlier, never choose a Realtor from an ad or the phonebook without the recommendation of someone that you trust. Ask for references. Most importantly, interview at least three and have them give you a full listing presentation with a comparable market analysis. Make sure they are not trying to get you to list too low so they can get a quick sale. If they are knowledgeable about the area and home prices, there should not be much variance in the range of listing prices.

Most home buyers start of their home search on the internet. In my opinion, print is dead. Find out what types of technology the realtor uses to market you home. Most homes will sell through the MLS system, but the more marketing, the better. Visit the agent’s website to see if it would appeal to you as a buyer. Ask where else you home will appear besides the MLS. It is very important, in my opinion, that your Realtor has an enhanced listing on Realtor.com. These are the listings that are highlighted and have more than one picture. Many times, when I have an out of town buyer, they send me homes they want to see from Realtor.com. They almost always exclude those with only one picture as they do not want to waste limited time while they are in town looking at house when they can’t tell from pictures if it will appeal to them.

Communication is key. Does the agent plan to call you weekly to discuss market conditions? Is the agent keeping up with home sales in your neighborhood and comparable areas? I have been the second realtor on a number of deals where my seller has told me that their agent signed the paperwork and did nothing more. I contact my sellers a minimum of two times a week, even if I have nothing to say to them. I may talk to them about the state of the market, calm their fears after reading one of the many negative real estate articles in the paper, etc.

Even more important is that your listing agent should keep up daily on how homes are selling and being priced that are similar to yours in your area. If your realtor does not know what is going on around you, you run the risk no knowing when prices get lowered and what homes similar to yours are selling for. This then, could leave you priced well above your neighborhood, in which case, you will not get any showings. With today’s technology, it is very easy to set up an automatic email that tells your agent when comparable homes sell, come on the market, or lower their price.

Ask your agent what they will do if your home has not sold in a few months? They should be willing to have a marketing strategy, and be willing to make changes as you move forward.

Again, as above, experience in real estate is key. There are tons of realtors who only became realtors as the boom began. These people have never had to work in a normal or buyers market. This is important as they may not have the knowledge on how to market and sell your home in today’s unprecedented market.

Remember that commission is always negotiable. Run if they tell you it is not – they are breaking the law. Ask for a discount on the commission. Many agents, when dealing with a sane seller who prices their home correctly will be willing to move within reason. Do not shop solely by lowest commission and highest price that an agent is willing to list your home for. Pricing it too high will result in little to no showings in this market. Most agents cannot tell you what the listing price of your home is. They can give you a range, but should be able to back it up with a mixture of homes sold within the last six months, pending sales, and listed homes.

Remember whether you are listing a home or buying one, there will be many decisions to be made. The first and possibly, the most important will be who you choose to help you. It will set the tone for the rest of the process and can make or break the experience, and in the end, can make or save you a lot of money, if you choose correctly.

Jason Goodman
Realtor, Triangle Area North Carolina.

Is the Raleigh North Carolina (Triangle Area) real estate market beginning to slow with the rest of the nation?

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Sun, 25 May 2008 07:24:22 -0500

As the nation is in the grips of an unprecedented real estate down turn, the state of North Carolina hasn’t seemed to feel the pinch. As an agent, when I take a client out, especially if they are coming from an area such as Florida, they have this notion that they are going to get anywhere from 10-30% off the list price. Not here! The average home, if priced right, sells for about 98% of its asking price but that may be changing.

In most articles that list areas of decline across the nation, Charlotte has consistently been the only major market that has actually shown growth over the past couple of years with regards to home sales and prices. Raleigh and the rest of the Triangle are also in that list, sometimes showing stagnant sales and prices (which in this climate is actually good) to small incremental gains while the rest of the nations home prices are plummeting. Why? Well they did not appreciate in the ridiculous fashion that prices rose in other areas of the nation, so they are not in correction mode. The economy of the market, which, until recently has been growing tremendously has contributed to the strength of the market.

When the credit crisis began last September, I thought it would have a dramatic effect as the first time home buyer and people with lower credit would be forced to put more money down if they were even able to get a loan. That wiped out a large segment of the buying population across the nation, but did not have too much effect on the local market. In the towns of Cary, Holly Springs, and Apex, sales were actually up. Closings dipped while lenders went out of business at that time, but the area quickly recovered.

There are essentially two measurements that we hear about on a daily basis nationwide. The year over year percentage gain or loss in the amount of home sales and the median home sales price. Both of these numbers have been overwhelmingly low every month for the past several years. In the Triangle, only one of those numbers has been consistently low. Each month the year over year number of sales has dropped consistently. In April of 2008, there was a 24% drop in the number of sales from the same time last year. The number that has not been a negative is the average home sale price. Until now. Last month, the average home price dropped from this time last year by 3%. 3% does not sound like a lot but let’s use an example of how much that actually is. On a $300,000 home, that is actually $9,000. Not horrible, but if that happens month after month, it can create problems, especially for those with little equity in their homes needing to sell. Once this happens, a snowball effect occurs. People begin to walk away from their homes, and banks sell them at a loss to get them off their books, and home prices decline further. We are seeing large foreclosure rates in the Triangle but not as much as areas such as Florida.

Why is this beginning to happen here? Well, I feel it was inevitable. The positive had always been that our prices did not appreciate uncontrollably like areas such as California and Florida. Once the credit crisis happened, loans became harder to obtain. The first casualty was 100% financing. This was the vehicle that allowed many first time home buyers to obtain loans. These are the people that enable people looking to move up to sell these homes and buy up some of the inventory on the market. When these people cannot buy, homes at the next level begin to glut the market, and those people, in turn cannot but the higher end homes. Additionally, people coming form out of state, one of the area’s biggest reasons for growth, cannot sell their homes, forcing them to hold off purchasing homes, leading to an even bigger glut of unsold homes.

All of these reasons are reasons that you have most likely heard about areas in the rest of the nation, but it seems they are starting to make their way to our area. Will it be as pronounced as the rest of the country? Probably not. One reason is that our economy is strong. Some call it recession proof. I don’t.

According to the News and Observer, the region’s growth has actually slowed recently. Employment has slowed dramatically, only expanding 2%, but future investment in the region is valued at $817 million which shows promise for the region. Wages actually grew by 4.2%, which is ahead of inflation. The Triangle is expected to grow by more than 264,000 residents over the next five years, which is promising, as long as those people can sell their homes where they are coming from.

Have you noticed a slowing in the real estate or any other industry in the area? I’d be interested in hearing about it.

Representing the buyer and seller in a transaction in the Triangle Area North Carolina (Wake County - Raleigh)

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Sat, 24 May 2008 08:47:51 -0500

The North Carolina Real Estate Commission allows what is called dual agency. This is a fairly complex concept that agents must explain to their clients when beginning a relationship with them, and even have them sign a brochure giving the broker the right to be a dual agent or not. It has its advantages. Mainly, if a client is interested in a listing that is listed with his or her brokers firm, in order to show that listing, an agent must be a dual agent.

What it also allows is for a single agent to act as representative for both buyer and seller. What? Yes someone who is representing both the buyer and seller, and trying to negotiate the best deal for both. The argument exists that it is not really possible. I equate it to a lawyer representing both husband and wife in a divorce. Most likely, that person feels more of an allegiance to the person who hired them and is paying them.

When an agent represents both buyer and seller in a transaction, it can happen in one of two ways. They can have a house listed, and someone calls on a sign or through advertising on that particular property and the call comes back to that agent, he or she shows the house and the transaction happens. In this case, the listing agent has had a relationship with the seller and a very limited one with the buyer but is supposed to be working for both in an equal capacity. Furthermore, the agent’s compensation is coming from the seller’s proceeds on the sale. Can this person really represent both participants to this transaction in a fair manner? Most realtors who are put in these situations do to an extent, but it is a hard position to be in.

In another scenario, an agent may have been working with a buyer for awhile and puts a home on the market that is exactly what this buyer is looking for. The house is shown, and the transaction happens. In this case, the agent and buyer have a closer relationship but the agent is a dual agent, supposedly representing the seller and buyer equally and again, the argument can be made that it cannot be done fairly.

Dual agency in North Carolina spells out exactly what information can be passed on to buyers and sellers and what information cannot. The commission is very strict with the rules of dual agency and agents know that, and therefore, most times, abide by these rules.

The problems can arise when an agent knows something about a buyer or seller that can have an effect on the negotiations, but they are not allowed to pass on that information. Let’s say that the sellers agent knows the home is about to be taking by foreclosure, and that the seller will take significantly less than asking price. They cannot give this information to the buyer, and therefore, they are really not working to get the buyer the best deal. If there were two separate Realtors from two different offices, and the buyer’s agent had some information about the negotiating position of the seller, they should and would relay this information to their buyer, in order to help them negotiate the best deal.

While dual agency is legal, and it happens quite often, as a buyer or seller, you want to make sure that you do not get yourself into a situation where the same agent represents the buyer and seller. Dual agency is also when different agents at the same firm represents the buyer and seller respectively. This is because, technically, the listings are the property of the firm, not the individual agent, and therefore, because the same agency is representing both buyer and seller, they are practicing dual agency. This happens much more than one agent representing both buyer and seller. In my opinion, there is nothing wrong with this type of transaction as there are two separate people acting in the best interest of their clients. This type of transaction occurs frequently in an area such as Wake County, or for that matter the entire Triangle area as there are a lot of people, and a lot of firms with a lot of Realtors.

In order to avoid having a home’s listing agent act as your buyer’s agent as well, there are things that you can do. If you are already working with an agent, and you see a sign on a home or an advertisement for a home that interests you make sure that you call your agent to get you information on that particular home. You can be sure that they are working for you. If you do not have an agent, go ahead and call the sign or advertisement and ask for information. Ask the person that you are talking to about the home and if it is their listing. Many times, the lead goes back to the office and is passed out to another agent. This is fine. Meet the agent, size them up and after a little while decide if you may be able to work with this agent. Most times, when you call on a home, the first one will not be the one you choose, but it may have introduced you to a great agent. Just be careful not to get caught with a seller’s agent representing you in a transaction as a buyer when you have no relationship with them.

I have been an agent in several transactions where I have represented both buyer and seller and it is not easy. It may be more profitable for me, but there are tons of headaches involved, and I have vowed never to do it again. I would rather give up the dual commission and have less stress in the transaction. The first issue is obviously negotiating price and other contract issues, but it doesn’t end there.

Any time there is something to be worked out, such as inspection or appraisal issues, you are arguing with yourself, and it is a tough position to be in.

Hopefully this has provided you with some insight on what to do if you get into a situation where there is one realtor representing both parties in a transaction. This can be helpful whether you are looking in the Raleigh area or any other place within North Carolina as these laws are statewide. If you are outside of North Carolina, please check with your state Real Estate Commission for dual agency rules and regulations.

Cotswold – A Great Neighborhood Subdivision in Cary North Carolina

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Fri, 23 May 2008 08:11:09 -0500

From time to time, I like to highlight local neighborhoods in the Triangle area. Today I am writing about a neighborhood called Cotswold.

Cotswold is located in the southern part of Cary, off Kildaire Farm Road, just past Ten-Ten. In my opinion, it is a hidden gem within the Town of Cary. The home prices here range from the mid to low 300’s to the mid 400’s. All homes have a brick front and have a rather large appearance. Most homes have decent property and are not located on top of each other as some of the newly constructed homes are in other developments. One of the many great things about this neighborhood is that while the homes are relatively new (built from 1999-2001), the developer was smart in that they did not bulldoze the trees when developing the land. There are tons of pines and other trees that are over 40 feet in length, giving the neighborhood a feel and look of mature trees, with newer types of construction featuring open floor plans with high ceilings – something that is becoming harder and harder to find in newer communities whose developers bulldoze all the trees.

Cotswold is extremely family friendly. Just drive through this neighborhood any time after school and you will see tons of kids playing. The community social committee is extremely active. The neighborhood sponsors monthly pool barbecues for the neighborhood as well as outdoor movies at the pool once a month during summer months. At Halloween, the neighborhood sponsors a hayride around the neighborhood and a cookout at the pool parking lot. During Christmas, a holiday party happens and Santa makes an appearance. On July 4, the all the children get together in the neighborhood and decorate their bikes and hold a bike parade down the main drag of Cotswold. Many other neighborhood parties take place throughout the course of the year as well.

There are about 250 homes in Cotswold, and at any one time, there are only approximately 3-5 for sale and they move fairly quickly. Cotswold’s location lends itself to easy access to all major highways and shopping at the Crossroads shopping area and the Cary Towne Center.

When thinking about this neighborhood, the first thing that pops into many people’s minds is; what is a Cotswold, so I did some research. The Cotswold’s are a range of hills in West-Central England near Gloucestershire and Oxfordshire. Street names such as Banniford Way and Galsworthy Street keep in line with English names. The architecture is also reminiscent of Traditional English homes.

Cotswold is well kept by its residents and the entrance is beautifully maintained by the homeowners association. The pool area opens as the weather warms in May and closes when the weather cools in October. The pool is rather large and there is a small clubhouse and large deck area for its residents.

Currently, children living in Cotswold are slated to go to Oak Grove Elementary for grades kindergarten through 5^th, Dillard Middle School for Grades 6-8, and Holly Springs High School. The elementary is a year round school and rated as one of Wake County’s best schools. There is also a traditional alternative which is Briarcliff Elementary. As always, please check with the school board before making decisions based on these schools as home schools tend to change in Wake County from year to year.

If you are looking for newer construction with a mature neighborhood look with lots of trees and a family friendly atmosphere, look no further than Cotswold in Cary – I am sure you will be impressed.

If you would like any information on the homes available in this area, please do not hesitate to contact me.

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Wake County North Carolina Property Tax Rate

Jason Goodman Triangle Area NC Realtor (Strategy 1 Realty) — Tue, 20 May 2008 23:28:52 -0500

As many people in the Triangle area know, this was a revaluation year. Those of you who may be relocating to North Carolina may not know what this means. Every 8 years, the state of North Carolina re-assesses all properties and this value is what our property taxes are based on until the next revaluation. Since the last revaluation, there has been a tremendous real estate boom (which was not as pronounced in the Triangle area as it was in some places in the nation). At first glance, people are excited to see that their values have gone up significantly. Once that elation passes, reality sets in, and people begin to think about how this will affect their property tax bill for the next and subsequent years.

As an average, property values shot up 42% across the Triangle, and in some locations, such as Inside the Beltline, the rise was significantly higher. On the surface, this seems to lead to a similar percentage rise in our tax bills, which has led to fear and a lot of questions.

Thankfully, there is something that not many people know about called revenue neutrality. In plain English, this means that revenues brought in by property taxes in a revaluation year would be about the same as if the revaluation had not taken place. Generally, the tax rate is lowered to offset or “neutralize” the effect of higher property values.

Taxes in North Carolina are made up of one or two main components. The County rate and the city rate if you live within city limits. The Wake County rate before revaluation was .67 and most other municipalities add their rate to this to give you a total tax rate of around 1% of the value of your home.

For example, Cary’s rate before revaluation is .43. Added to the county rate, the total rate is 1.1%. On a home valued at $317,000 before the revaluation, the tax bill would have been $3487 ($317,000 X 1.1%). That same home, after revaluation would be assessed at $425,000 and at the current tax rate of 1.1%, the tax bill would be $4675. That is a large one year increase in taxes, and if this were the case, it may force already struggling families to have trouble meeting their monthly obligations.

Because of the provision of revenue neutrality, both Wake County and the Town of Cary (and all other cities within Wake County) must lower their rates to ensure that revenue does not significantly grow. Wake County is currently debating on their rate and it will be set somewhere between .50 and .525 and Cary is deciding between .32 and .33. If we take the higher in both cases, we come up with .855 and the tax bill in the above example valued at $425,000 will be $3633. While this is a small increase in taxes, it is the first significant increase since the last revaluation 8 years ago and is needed to cope with the growth in Wake County, but at the same time, it is also tolerable to the average homeowner.

A byproduct of the revaluation process is that home buyers that do not know about the revenue neutral provision are having problems determining taxes for new purchase and at the same time, realtors who are new to the business or the area since the last revaluation are giving incorrect guidance. Most buyers are smart enough to find out what their monthly taxes and insurance will be in addition to their monthly mortgage payment. The problem is is that they are using last year’s tax rates and this year’s values to determine the monthly taxes, and that is giving them a significantly higher monthly bill, and in a lot of cases, causing buyers to look at lower priced homes. I have even seen cases where uninformed lenders are figuring tax bills on last year’s rates.

While the rates have not been approved yet, all you have to do is pick up the newspaper, read the trade magazines, or search the internet to get a good idea of where the county and cities are moving with regard to proposed tax rates.

The moral of the story is make sure you do your due diligence when looking to buy a house with regard to property taxes so that you will be able to buy the house that you can really afford, one way or another. Additionally, don’t be concerned with a huge rise in your tax bill just because your property values have skyrocketed with this most recent revaluation. I cannot tell you the number of people who have come to me in a panic thinking about the tax bill for this year and how many people have lost sleep thinking about how they were going to pay this bill.

Fortunately, now, as the cities and county debate their rates, it is coming out in the media that there will be a lowering of the rate at both the county and city level. If only this information could have been conveyed by agents, lenders, and the media at the same time that the revaluations came out a lot of people would have slept a lot better.

Once the rates are released and approved, I will be back with a city by city breakdown of the actual rates.

Please feel free to contact me with any Triangle Area tax or real estate comments or questions.

jgoodman@listwise.com
http://www.yourtrianglerealtor.com