Raleigh Open House

Permit, Permit, Permit.....PLEASE

Stu Barnes (Barnes McQuade Realty) — Fri, 04 Dec 2009 12:09:53 -0600

If you are a homeowner and are fiddling around with the idea of adding onto your home whether it be a sunroom or a whole second floor there is one word you should memorize.........PERMIT. It always amazes me to see homeowners making major improvements to their homes, but not taking the time or small amount of money it takes to go to the courthouse and apply for a permit.

A number of things could happen if you don't permit and certain things may depend on the State, County and/or Town you live. For instance .......and the most important consideration to be made is resale value. I have run into quite a few homeowners listing their homes for sale and assuming that the addition "counts" as square footage. Square footage is what drives the price of the home along with age and LOCATION. According to the NCREC (North Carolina Real Estate Commission), and it would be wise to obey their rules, you cannot count/advertise square footage that is not permitted.....unless you disclose it's not permitted. It used to be that if you had a house with 1,500 square feet and an added 500 square feet unpermitted you could only advertise it as 1,500 square feet and then make a comment on the MLS that there is an "extra" 500 square feet of space not permitted. NOW you can advertise it as 2,000 square feet, BUT you must immediately disclose that the 500 is unpermitted. The problem with that is even if a reputable construction company did the work and you didn't pull or want them to pull a permit because it was extra money, Buyers.....and remember...they are the ones that determine Market Value and BUYS the home from you...are scared to death of the word UNPERMITTED. In other words, even if the addition looks great, buyers are going to shy away from an unpermitted home/addition. There are other downsides to not permitting which would be a whole different blog, but the gist is if you are going to add space to your home, pull a permit and save the headaches. For more information about your local Real Estate Market visit us here.

Selling A Home (Realtor.com VLOG)

Stu Barnes (Barnes McQuade Realty) — Thu, 19 Nov 2009 13:12:03 -0600

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.

Caveat Emptor, Your Upper Hand May Be Lowering

Stu Barnes (Barnes McQuade Realty) — Thu, 30 Jul 2009 10:54:08 -0500

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.

Don't Shoot The Appraiser...Ahem...Messenger

Stu Barnes (Barnes McQuade Realty) — Fri, 26 Jun 2009 09:53:51 -0500

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)

Willow Springs, NC....Southern Wake County's Best Kept Secret

Stu Barnes (Barnes McQuade Realty) — Wed, 10 Jun 2009 07:12:31 -0500

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.

The Mortgage Crisis and When Will It END?? The House of Cards

Stu Barnes (Barnes McQuade Realty) — Mon, 02 Mar 2009 16:00:15 -0600

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.

What Is Title Insurance And Do I Need It?

Stu Barnes (Barnes McQuade Realty) — Tue, 13 Jan 2009 13:40:23 -0600

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.

Grave Sites and Development

Stu Barnes (Barnes McQuade Realty) — Fri, 09 Jan 2009 16:14:48 -0600

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.

Representation In Real Estate Transactions

Stu Barnes (Barnes McQuade Realty) — Mon, 05 Jan 2009 11:35:33 -0600

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.

What is RESPA?

Stu Barnes (Barnes McQuade Realty) — Wed, 12 Nov 2008 11:07:07 -0600

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.

The State of The Market Address.....Raleigh NC

Stu Barnes (Barnes McQuade Realty) — Mon, 20 Oct 2008 13:14:54 -0500

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.

Rates and the Election

Stu Barnes (Barnes McQuade Realty) — Mon, 15 Sep 2008 12:35:36 -0500

Over the past few months you have probably heard all the talk on the news programs about the lending/credit situation and if you are currently working with a REALTOR they have probably told you things will get better shortly. Last week with news of the federal government swallowing Freddie and Fannie the rates dropped around 1%. This is a huge savings if you calculate your potential monthly payment with this new rate. On top of this the Presidential election is in a month and a half. I dropped this line because a current poll of home buyers read that: 50% of them are waiting or the election to make a move.

My take: Buyers go buy now. Sellers hang in there.

It is a very good time to buy now with the way rates are looking; IF you are qualified. If you are not qualified......do whatever your lender or credit counselor says to upgrade your buying power. The way things have gone this year so far I am still a little confused as to why buyers are still sitting on the fence because I don't think rates will drop too much more and in most parts of the country I think housing prices will start show a better appreciation rate as a whole. The only sure thing is something is going to happen in the next few months including having a new Presidency about to take office. No matter who wins, I feel confident in saying Americans will have a refreshed view of our housing market and economy as a whole. Whether you are buying or selling you should consult a REALTOR for an unbiased opinion on your Real Estate market.

Appreciation Rates.....Raleigh NC

Stu Barnes (Barnes McQuade Realty) — Fri, 22 Aug 2008 12:59:16 -0500

Many people have heard the term/phrase "appreciation rate" associated with Real Property...ie: Real Estate. It can be deceiving it you just read one article or tidbit on what the "current" appreciation rate is because.....since all Real Estate is local, the appreciation rates vary from city to city; also from neighborhood to neighborhood.

In the Raleigh, NC area the appreciation rates have stayed steady over the years...especially in the early 2000's with the Real Estate Boom across the country. In a nutshell, the "bubble" you may have heard of is caused by appreciation rates rising too fast and then leveling off, then ultimately coming back down (depreciating) to where they should be. We have not had that problem because of our steady rates. A good rate is usually defined within 3-6% a year. That is healthy as well as a debatable number, but at any rate overall that is where our rates have been. With that said there are certain pockets/neighborhoods of our Triangle Areathat have seen higher rates, but not nearly in the double digits that got other states in trouble. If you are concerned about your home's appreciation rate or possibly depreciation rate you should contact a local REALTOR to perform a CMA (comparable market analysis) for you. For more information visit us here.

Feedback...Why It's Important

Stu Barnes (Barnes McQuade Realty) — Mon, 04 Aug 2008 12:09:35 -0500

I have touched on the topic of feedback before, but wanted to elaborate on why it's important and what happens when not given. In the Raleigh market, we have a service that schedules showings with home sellers and a few hours after the showing, the showing agent gets an automated email to provide feedback on what their clients/buyers thought. First off, this system is very easy to use and makes it quite simple to give feedback....especially compared to some markets that don't have a sophisticated system like ours. Our local MLS has a contract with CSS (Centralized Showing Systems) to take incoming calls from showing agents, confirm with the seller and then give access/permission to show the home. The listing agent can tweak the system to send a reminder email to provide feedback up to 3 times and they can also change the message or use a default message to the showing agent. It can't get much easier than that. Unfortunately, there are a lot of agents out there that whether it be forgetfulness, laziness, the overused "too busy" excuse or just plain "this is not benefiting me so I will not respond" mentality, never respond to these requests for feedback.

CSS reports an average of 61% of showing agents provided feedback over the past few months in the Raleigh market. That is pathetic and these agents should re-evaluate how they treat other agents. By that I mean, by providing feedback one helps their agents client/seller understand what is right or wrong with the property, if it smells, if it is priced too high, if the lot is too small and the list goes on. The showing agent would want feedback on their listings in return. By providing feedback, it takes a huge burden off of the listing agent in trying to make the seller understand why there are no offers coming in; it also helps the seller in improving the condition of the home which in turn may bring a higher offer, which in turn brings the neighborhood value up, which in turn....you get it...it helps everything. Another issue is a lot of the feedback given is short, vague and doesn't really help anyone. An example would be..."buyer just starting to look, thanks." An example of feedback we are looking for would be "home showed great, loved the hardwood floors, paint was great....buyers will keep in mind"..., or "home smelled like a petting zoo, seller should clean." Being blunt is what is wanted....feedback should not be cushioned.

If you are selling your home be sure and talk with your agent about feedback. You need it and your agent should try to get it for you, but remember you have to have a good agent on the other side to provide it for you. www.BarnesMcQuade.com .

Is All Real Estate Local?

Stu Barnes (Barnes McQuade Realty) — Wed, 16 Jul 2008 10:54:25 -0500

Yes.

That is the short answer, but with the media covering the Real Estate Market across the country and leaving scattered information as a blanket summation I have to clarify. In general as everyone knows the market is down, even locally. This has to do with a number of things, but the issues holding up our Raleigh/Durham Market are different than things holding up say the California Market or Florida Market.

Basically, speculation on rates and what's happening with our economy is a major roadblock for current buyers locally. A bigger and more important issue is potential buyers not being able to sell their home in.....Detroit before buying a home in Raleigh. With that said, Raleigh did not have the huge appreciation for the past decade some places did that have sellers upside down and taking blood baths on their homes. It is still an OKAY market just slower..=correction. The market is correcting itself and it usually is not that fun when you are in "the business".

Moreover, Real Estate is local as far as pricing and days on the market go for an individual market also. What I mean is take the Raleigh area for example. Raleigh is local within Raleigh. Take a 1500 square foot house, exact floor plan and same size lot, same siding and fixtures inside. In one part of Raleigh it may be worth x amount of dollars less that the other part of Raleigh. Why? Location=local. It depends on the areas schools, proximity to hospitals, shopping and the list goes on. If you look at statistics from our local MLS you may find that days on the market is A LOT lower for the Cary area than parts of Raleigh, but if you look closer you may see that houses listed over $400K in the Cary area are A LOT more than the same price point in another area of this market. LOCAL. I have said before that selling a home is very circumstantial and location has a very vital role in circumstance. I hope you find this information useful and feel free to visit our site for more details.

The Listing Agent and The Football Coach

Stu Barnes (Barnes McQuade Realty) — Wed, 02 Jul 2008 11:25:45 -0500

The other day I was discussing the Real Estate market in the Raleigh NC area with a friend and the topic of being a Listing Agent dominated the conversation. Without going in great detail I was explaining how listings are very circumstantial...and by that I mean there are so many factors influencing the marketability of the property that it is hard to please or appease every seller. Most sellers LOVE their home and can't see why anyone in their right mind would not want to pull the trigger.....but location, colors of walls, smell, slope of the lot, school zone, proximity to work.....the list goes on; all of these effect the marketability of the house. With that I said "more times than not, it takes the right buyer at the right time to make it work". My friends comment to me was "I guess it's kind of like the college and pro football coaches....you win or you are gone, even though there are circumstances out of your control (budget, size of school, conference) you are suppose to win and if you don't you are OUT".

I thought about it for a while and even though it was kind of off the wall, it was true. No matter what you do to market a home and how good you are with clients and other Realtors that most of the time will bring that buyer, there are things you can't control and it's just part of the game and an understood rule that your time is coming if you no one buys. I will say that price is by far the number one factor that can get anything sold...with location coming in right behind, but as a listing agent you must be prepared to face ALL challenges and present them in the best light.

Internet Is King.....No Question Or Debate

Stu Barnes (Barnes McQuade Realty) — Tue, 24 Jun 2008 12:37:44 -0500

The big question ALL sellers want to know when interviewing an agent to list their home is "what are they going to do to sell it?" The answer is not ever that simple because there is never one thing that sells a home....just many events that lined up perfectly to close the deal..and sometimes luck, but many answers you will probably hear will vary. No matter what response you get, the one you must tell yourself you MUST hear is EXPOSURE. How do you get that?

There is now no question, no argument and no fierce debate on what gives a home for sale the greatest exposure....the Internet.

In 1995 when the Internet was just really getting off the ground and high speed Internet was still just a dream, about 2% of future home-buyers searched on the Internet to find a home...hence, not many agents advertised there because that channel wasn't a staple as it is today. Today 84% (and growing) of home-buyers search the Internet for their next home. This number has a chain reaction which benefits buyers, sellers and agents. What the Internet has done is cut down driving around for weeks looking at houses...7.6 weeks looking is now 4 weeks. Open Houses for the most part are antiquated because the consumer can see homes online 24 hours 7 days a week. The power agents use to have of hording information on homes forcing prospective buyers to call them is gone; now they will get a call when the prospective houses are narrowed down to 2 or 3.

The bottom line is make sure your Listing Agent uses channels via the Internet to expose your home. Buyers are 900% more likely to find their future home on the Internet vs. newspaper ads. They are also 3400% more likely to find their future home on the Internet vs. magazine home book ads. For more information on the Real Estate Market in general feel free to visit our site.

*Stats from NAR 2007

Contingencies.....What Are They?

Stu Barnes (Barnes McQuade Realty) — Thu, 12 Jun 2008 12:01:49 -0500

More than likely if you have ever bought or sold a house or land you have come across the term "contingency". The definition is an event that may, but is not certain to occur. In Real Estate, a contingency basically says "if this does not happen" then my offer is withdrawn or no good....an example seen a lot is an offer contingent upon closing on my current home first.

In North Carolina's Standard Offer To Purchase and Contract, there are a number of contingencies that must be met in order for a home to close, some more nail-biting than others, but nonetheless they are there in full force to protect both buyers and sellers depending on the situation. First, you will usually have a financing contingency. This says that in order for one to close on a certain property, they must be able to obtain financing at a certain rate by a certain time OR the contract is voidable. Next is a repair contingency. This says that after an inspection the contract is contingent on the seller fixing certain repairs requested by the buyers as long as they are valid repairs mentioned in the inspection clause. You also have an appraisal contingency stating that the property must appraise at a certain price.....usually only used when paying cash because if you were financing the financing contingency would take care of this issue.

The two main contingencies that you hear of the most are the ones depending on whether a currently owned property closes by the time your new property is to close. The first is an Existing Contract Contingency (#3) which basically says...I am going to buy your house IF my current home which is ALREADY under contract closes by a certain date....if it doesn't...I'm out. The more fearful and unattractive contingency depending on the market you are in is the Contingent Sale. This means...hey, we want to buy your house, but we have not had an accepted/acceptable/ANY offer on our house yet, but we want you to accept our offer assuming our current house will sell. Very confusing huh....well that's Real Estate. It is also possible for buyers to write their own contingencies into a contract....for example, Joe Buyer says...hey, I am going to buy your house IF the Yankees win the World Series!! Funny, but true. A contingency can be written into a contract no matter how far fetched...but a more likely scenario would be someone wanting to buy a house, but making it contingent on a fence being approved by the HOA. I hope this helps cut down on the confusion a bit....for more information visit us here.

What is a HUD-1?

Stu Barnes (Barnes McQuade Realty) — Fri, 16 May 2008 08:48:59 -0500

Whether you are buying or selling Real Estate, at the closing you will see a form called the HUD-1 Settlement Statement. This is a standard form used across the country that in a nutshell, acts as a receipt of your transaction. It will list all debits and credits that are associated with the transaction for both parties. Every action involving money or consideration is required to be on the HUD-1 for many reasons, but the main one is for RESPA compliance. RESPA (Real Estate Settlement Procedures Act) regulates a lot of the processes that occur when loaning money....so you will see many lender ads or bank ads that will say RESPA compliant. This protects the public....that means you. HUD is from the Department of Housing and Urban Development. This department does a lot to protect the public and tries to make shelter....not just buying or selling a home....available and humane.

So the next time you hear of a HUD in a Real Estate closing they are probably referring to the closing statement that details the transaction. For more information on Real Estate please visit our website.

Getting Your Real Estate License....Not As Popular These Days

Stu Barnes (Barnes McQuade Realty) — Wed, 14 May 2008 09:57:57 -0500

Five years ago getting your Real Estate license in NC seemed to be a very good idea. A lot of people were tired of their office job, wanted a part time job or just wanted a fresh career change. Skip forward to today's market and it doesn't seem to be such a "golden opportunity" as it once was.

The National Real Estate market is hurting, but there are many markets around the country, NC being one of them, that are getting along okay and is not suffering as bad as other parts of the country. I heard a speaker say at a lecture in February that statistically speaking, 2008 is the year to just get by....I interpreted that as the media outlets proudly distribute that the market has hit bottom, and as an optimist I would say that means it will go up...although I think it will be tough for the rest of this year at least. But, to quote a song, "you can't have the good, until you shared some bad", $10 to whoever can name the song...(no googling).

Now to the point, in 2002 there were 5,775 applicants for a license in NC which steadily rose up to 10,493 in 2006 which averages to 874 a month. In 2007 there were 7,504 (625/month) and this year so far there are 1,359 (453/month). I would assume the numbers will slowly go down this year and then slowly trickle upwards in 2009.......then stay steady for a while. For the record, to even apply to get a license in NC you must first pass a classroom exam to proceed to take the State exam. To date (actually 3-08) out of 2,239 people that have taken the State exam, 1,342 passed, which is close to a 60% pass rate. If you are considering getting your license, talk to people you may know that are in the business and see if it is for you.....then study and know your stuff....clients like that. For more Real Estate Information please visit us here.

Good REALTOR Bad REALTOR....Our Industry Needs Good

Stu Barnes (Barnes McQuade Realty) — Thu, 01 May 2008 15:25:33 -0500

Being a REALTOR, I hear it a lot. REALTORS get a bad rap as being lazy, not returning calls and in general not having a sense of urgency. Well, I am here to agree....to an extent. You have heard of the 80/20 rule I am sure. One example is 80% of the nation's wealth is controlled by 20% of the population.....you can use the rule of thumb with many situations. Well, it is no different in the Real Estate industry. There are a lot of good REALTORS out there, but there are also a lot that are less than mediocre. This equates to 80% of Real Estate transactions are done by 20% of the total REALTORS out there...in other words...they are the good ones....a lot just sit back a polish their license on the wall and do a transaction here and there.

I have been debating on writing this particular blog for a while because I didn't want to "knock" anyone in my profession....well, after this week I have broken down to acknowledge some need a wake up call if they want to stay in the business. No names or companies mentioned, but here are my two biggest peeves and one unbelievable occurrence. Here's one and two together. After showing a house, our MLS system has an agreement with a showing system that automatically sends an email to the showing agent to provide feedback from the showing. This is important because it helps the listing agent as well as the seller know what is right OR wrong with the home...be it style, paint, smell, location.....whatever..it helps to know what others are thinking. MAYBE 50% of agents give feedback....INCREDIBLE. Next, returning calls. Getting a Real Estate license and keeping it active takes some brain power and of course time, but how can people not return phone calls....that just kills me. By the grace of God and ingenuity of Mr. Alexander Graham Bell, the telephone was invented and actually works fairly well. Email, cell phones, office phones.....all of these will work, why not utilize them. I have never understood this procrastination. If you are a REALTOR reading this blog that means that you are into "reading blogs" and hence are probably a good agent,.....because you are interested and want to research your profession...if this is you then you know the type people I am talking about.

The unbelievable:

We are held to a high standard when showing houses. We know to cut off lights, close doors, take off shoes if it's been raining....you know common sense stuff. I have a listing directly in front of my house...and I work from home so I have the luxury of seeing how long agents stay with their buyers. Last week an agent showed the house and after about 10 minutes she walks out on the front porch leaving buyers inside...and lights up a cigarette. In 1980 this might not be bad, but come on, don't smoke on my clients front porch. After taking a few drags her buyers come out and she puts the cigarette out and then THROWS it in the pine straw (we are in a drought by the way) flower bed. I couldn't believe it so I went over afterwards to check.....yep!! So this agent was with a VERY very very large national franchise that really promotes the professionalism of their agents. I have debated on calling her Broker, but just decided to write about it in cyberspace. Oh well....that is my rant and this is my site.

REALTORS: hopefully I am not the only one noticing these things. BUYERS/SELLERS: Choose your agent carefully.

Lake Benson Park..... Garner NC's Hidden Gem

Stu Barnes (Barnes McQuade Realty) — Thu, 17 Apr 2008 18:19:52 -0500

Lake Benson Park in Garner NC is an unbelievable site in southern Wake County that is truly what you can call a hidden gem. What is so amazing about this place is it seems like no one knows it exists because it is NEVER crowded....except during the 4th of July Fireworks Celebration. I usually run the trails there 2-3 three times a week and it is always a peaceful escape.

Located at Aversboro and Buffaloe Roads, you will find an incredible 64 acres of grass, trees, flowers, running trails, picnic areas and a shoreline to gaze at the lake. This property was part of an 840 acre land grant from King George II of England. In 1990 the Town of Garner purchased the land from the Buffaloe family and developed it into the family oriented park that it is today. The Inland Trail is 1.2 miles and there is a Woodland Trail of .6 mile which also contains a few playgrounds and grilling sites. One thing that you may notice off to the side of the trail on the northern end of the park is a memorial dedicated to PFC Henry Charles Sanchez, USMC. Henry was a 2003 graduate of Garner High School and use to run these trails to prepare to become a Marine. In July of 2006 Henry was killed in combat in Iraq serving his country.

If you live in the Raleigh area, Garner is 10 minutes from downtown Raleigh and is worthy of your visit to the park. Bring your dog, running shoes, blankets or whatever you usually do at a park and have a good time.

Appraisals....Becoming More of an Issue in a Buyer's Market

Stu Barnes (Barnes McQuade Realty) — Thu, 10 Apr 2008 11:53:39 -0500

Recently, in the past 12 months or so the Raleigh area has had many sellers scratching their heads when they are not getting asking price and they are parting with their refrigerator, TV and other personal items written into the contract by the buyers. It is called a buyer's market and an issue associated with this, which is rarely touched on until it hits home...no pun intended, is appraisals.

Appraisal=Home must appraise AT or HIGHER value of sales price on contract.

When sellers insist on listing at a certain price some agents may or may not take the listing, but the one thing that should be pointed out in the listing presentation is.......you can list for whatever you like whether we list it or another Firm does, but it has to appraise. Meaning if a seller swears their house smells, looks, feels better and is just a nicer house than the others in the neighborhood and they should get more and are "holding out" for a higher offer, the banks are going to laugh at you. So even if a buyer is willing to pay your price.....the bank has final say. IT IS WHAT IT IS. BUYERS determine the value of the home by a series of purchases close in proximity to your home, appraisers report on what buyers are willing to pay. There is A LOT that goes into an appraisal and they definitely earn their money and are badly needed, but the fact remains that the buyers ultimately determine the value.

So if you are a homeowner considering to sell, be realistic and make sure you don't get too caught up in the pricing game. Listen to your agent. They are not going to take responsibility OR blame for the market....it's just their job to help you understand it. For more information visit us here.

Charities In Raleigh NC.....Who Knew?

Stu Barnes (Barnes McQuade Realty) — Wed, 26 Mar 2008 18:49:04 -0500

You may ask why I am writing about Charities on a Real Estate Blog Page. Well, why not? While Raleigh is one of the fastest growing cities in this part of the country, a lot of people that move here are not aware that there are a lot of smaller charities worthy of recognition. One that really does have something to do with Real Estate is the Center For Volunteer Care-giving. With a lot of elderly folks moving to be closer to their kin, this organization helps provide services to the elderly such as transportation to Doctor appointments, house cleaning, grocery shopping and many other things that are hard to do by yourself when you are older and live alone. Another one of my favorites is April's Angels. This one is by far one of the best and in most need of attention to the public. Victoria Bloise started April's Angels to give back to the community. April's Angels help chronically ill children in a way to improve their home life. An example is transforming a child's room into a magical land or a baseball stadium or a space ship.......or whatever that child wants; kind of like a miniature Home Makeover you see on TV, but localized to the child's bedroom. These and more local charities can be found here.

Without charities a lot of things would not happen. A lot of opportunities will be missed, a lot of smiles will never happen and a lot of life changing moments will be passed over. Donate, volunteer....Discover Giving.

Things To Do In Raleigh NC

Stu Barnes (Barnes McQuade Realty) — Thu, 20 Mar 2008 11:00:43 -0500

With Raleigh NC becoming a more and more popular place to buy Real Estate, many people are now wanting to know what there is to do here. Even folks who have lived here for years are not aware of certain activities that exist in the Triangle Area.

The obvious and most advertised is the Carolina Hurricanes, but not many people realize we have a rugby team, two minor league baseball teams and a professional soccer team. The area boasts six major shopping malls/outlets, not to mention the ever so popular farmer's market which by the way, has the best and cheapest fruit and vegetables you will find anywhere around here. Aside from sports and shopping, museums is a popular draw for people of all ages. Raleigh has over 7 museums; and not many people that live here know that.

You can find out about EDUCATION, HOSPITALS, SPORTS, GOVERNMENT and just about anything going on in Raleigh by visiting our site. We hope this helps and hope to see you soon.