Real Estate Information

Now in order to understand this analogy, you have to think back to a time and place long, long ago...before Playstation and Nintendo and Atari...

Remember the old pinball machines?  You pulled back the plunger to shoot the balls into the game, hoping it would hit the bumpers for points and the classic 'ding ding's of success!'

Sellers, you DON'T want to be the bumpers!  When you overprice your home, you become an example.  Not a contender, but an example. 

"But Leigh", you say, "I've had showings!"  Which means that agents are using you to sell other listings.  When you are overpriced in your neighborhood and in your market, buyers look at you and bounce right off to the next house-which is properly priced. 

"But Leigh", you say, "I've got the best condition going!"  Might be true-but even the best condition will hit the ceiling of what a buyer will pay given a particular location and neighborhood.  Buyer look at you and bounce right off to the next house-which is properly priced.

Don't allow your home to sell others...remember that when your home is shown, it's being compared to (on average) 10 other homes in that showing schedule.  And if they're looking at you and bringing no offers, they are bouncing off and hitting another house.  SCORE! (don't you wish it were you who scored instead of them?)

 

So today I was getting my hair fixed (for you non-Southerners, that means 'styled' or 'done').  =)

And while I was covered in foils (YES I COVER MY GRAYING HAIR), I overheard my stylist say 'boy, you should have called Leigh!' I perked up and asked what they were talking about (I was reading a gossip magazine and not really paying attention).  One of the ladies who works there was complaining about her agent.  Of course, I said 'so tell me about it'. 

She proceeded to explain that her buyer agent is trying to convince her to make a full price offer on a condo that she wants.  In a slow neighborhood.  In a market where we have competing offers occasionally but not often.  On a condo that has been on the market for over a year (I told you it was a slow neighborhood).  I asked if he had run comps to justify that recommendation.  Nope.  And she's a first time buyer, so really needs the hand-holding.

Turns out, her 'agent' is the husband of her lender-who is apparently doing a fantastic job informing her of the process and advising her on the mortgage side.  She hasn't signed anything with her agent, but is afraid to rock the boat with a lender that she likes. 

So what did I tell her?  Not a lot I can say.  NC recognizes oral buyer agency until time of contract...so since he's been showing her stuff, i can't step on any toes ethically.  I did advise her to be strong and request a CMA on the condo in writing, have him go over it with her, and not be pushed into making too high an offer if that's not what she wants to do.

It's frustrating.  She now knows she should have called me (and so does everyone who was standing around listening to the conversation)-and I'll get the future business of her and probably the others.  But I can't help her now and can't help but feel that she's in danger of paying too much.

Alas...the difference between Great Clips and a full service salon also applies to real estate!

I am representing buyers who are in the process of relocating to North Carolina from sunny Florida.  They're purchasing new construction, and it's finally complete!  woo hoo!

They were pre-approved by the builder's lender for 100% financing, not contingent upon the house in Florida selling (you know how the market is in parts of Florida, a little on the slow side). 

A buyer surfaced on the house in Florida-hooray!  So at the first part of November, the buyers (without talking to me, oh please, buyers-rely upon us-we love to advise and help but can't help if you go off on your own!) changed loans.  To do a conventional 20% down loan, which is only feasible when the equity is taken off the house in Florida-which is under contract, right?

So what happens in Florida on the house they're selling?  THEIR BUYER decides to shop his loan a week before closing...discovers he was getting a great deal all along so changes his mind again and stays put, but it delays closing since the underwriter had iced the package.  Closing was supposed to happen last Friday, but was put off til today.

Today we were supposed to close on the new one, but that's been delayed by the delay in Florida.  Because since the loan was changed, they have to sell the old one to buy the new.

Still with me?

You might be thinking, 'so what? what's a few days here and there?'  Well, it matters to this builder.  In their contract is a provision that any delay on the scheduled closing will result in a penalty of 1% of the purchase price.  You heard me, any delay costs 1%!  I call that usury.  But it's a builder contract written by builder attorneys and if you want to buy their product, you use it. I've seen a lot of contracts with a per diem on delays, but this is a large national builder who wants closing to happen when they want it to happen!

The house in Florida closed today, but the wire hasn't yet arrived.  Since wires have to go through the Federal Reserve System, they can appear after 5 minutes or 8 hours-no way to know, and it's not instantaneous like email (which is a surprise to a lot of people).  And this builder will NOT do a dry closing (paperwork without funds).

So the closing attorney is checking the account every few minutes, hoping the wire shows up.  Because if it doesn't appear in the next two hours, they close tomorrow and pay a whopping $2100 in penalty.  Over a few hours' delay-and no skin off the builder's back since they wouldn't have the money til tomorrow ANYWAY (since in NC funds can't be disbursed until recordation has taken place).

Why do I suggest that you not change your loan at the last minute?  Because if this buyer had stuck with the original 100% loan, they wouldn't be faced with a $2100 penalty-they would have been able to close on time.  The rate difference?  1/8%.  And they could have gone back and refinanced a little while after closing and gone to the conventional 80% product.  Think through the process and all the things that can crop up.  Any experienced real estate broker can tell you that no contract is secure until it's closed, recorded, and money is in the bank.  Things just happen, outside of your control.  So rely on us-talk through these decisions and ideas, even if you think you're wasting our time-you're NOT wasting it at all, most of us WANT to help and want to be that trusted advisor.

All of the Realtors in our market have been talking about it, and finally even the media is saying it's true statistically!

In today's Charlotte Observer (locally known affectionately as The Charlotte Disturber), our local real estate columnist Allen Norwood talks about the steady climb in real estate prices in our resale market.  4.5% increase in third quarter 2006 and North Carolina overall is leading the nation with an increase of 9.7% over the same period in 2005!  Wow!

We've always been a contrary market and now is definitely a great time to invest in homes in the Charlotte NC market-with prices falling elsewhere, and knowing that real estate is always part of a smart investment portfolio, come to Charlotte and our surrounding areas and let us show you why the sunny South is a safe haven!

And FYI-if you didn't follow the link above...our median home price state-wide is $198,300.  Great values abound for first time buyers, empty nesters, investors,...everyone!

Dear Mr/Ms Seller-

I have discovered that many of my competitors are parading the fact that they sell so many of their own listings...doubling up or double dipping or dual agency.  And they like to point out that I avoid it like the plague.

Allow me to explain my position. 

I feel that when you select me as your listing agent, I become YOUR representation.  I am responsible for your best interests-I negotiate for you, I am loyal and obedient to you, and I am accountable to you.

YES-I market your home.  I market the devil out of it!  I want buyer calls coming in strong!  But I'll tell you-if one of those buyers wants your house, I don't want to work on their side.  See, I feel that dual agency is inherently a conflict of interest. Do I qualify the leads from the sign?  The flyers?  The postcards?  The print advertising?  The internet?  I sure do.  And I promote all of the best qualities of your home.   I AM pounding the pavement on your home!  What if they want to see it?  They will be set up to go with one of my buyer agents, or if they're not available, another agent in my office.  This is why you may never see my name on the list of showing agents, when you receive updates from the appointment center.

I do want your house to sell.  I just want to work for ONLY you.  How can I properly advise you if I know all of your financial nitty-gritty and also that of the buyer?  Sure, I know the dialogues for handling this situation-but there will most likely still be that niggling thought in the back of your mind wondering if I sold you short.  And I want you to rest soundly, safe in the confidence that I was working ONLY for you. 

You are hiring an agent to get your home sold...not necessarily sell it themselves.  With over 14000 active listings in the Charlotte NC area-statistically it's slim that I would also represent the buyer who wants your house.  My job is to get as many people as possible through the doors so we can get to the right buyer as quickly as possible.  I may not be the one who sells it-but I will be the reason it sells.

But wouldn't it be nice to keep all of the commission to myself? Sure-but at what cost?  I would much rather split the commission on a co-brokerage situation and get you moved on with life at your best net profit situation.  Money isn't everything.  And if I treat you right, you'll tell all your friends and family-right?  And if I treat my buyers right, by making sure that they also have proper representation, won't they also refer me?

So the next time you're interviewing Realtors for the opportunity to market your home, ask them very pointedly why exactly they think it's great to be riding the fence so many times in the course of a year.  And think your way through the process.

I appreciate the opportunity to work with you in selling your home-and want you to know that YOU are my top priority.

Christmastown USA is the nickname for McAdenville, NC, a textile town that really puts on a spectacular show at Christmas each year.  The attached photos are courtesy of Steve Rankin.

 

2006 is the 51st anniversary of the lights spectacular.  This is a free event, and what makes it special is that it's the residents of the town who make it an event! Over 400 trees and hundreds of homes will be decorated and lighted from Dec 1 through Dec 26 to celebrate the holiday.  The event was started by the Pharr family, of Pharr Yarns.  The effort has been a joint one between the town of McAdenville and Pharr Yarns. 

More information can be located at the website above.  Enjoy your Christmas holiday and if you're in the area, drive by the lights, drink some cocoa, listen to Christmas music, and get in the spirit.

I used the word 'bling' in a conversation with a prospective client today! WHAT?

You have to understand-I'm a country girl, raised on bluegrass and Hee-Haw country, trained as a classical pianist and vocalist, steeped in old time gospel at church. So hip-hop isn't part of my world...

But I suppose 'bling' has really become part of the current vernacular! I was discussing whether this gentleman would prefer a large house for the money, or a smaller home with more 'bling'-at which point I had to stop the conversation and laugh at myself for using that word-and he laughed as well, since he knew what I meant!!!

It's so easy to live in an insular world-working in real estate and real estate jargon...going home to my little people and singing little people songs...but in popular culture, Pimp My Ride is going strong and even though I'll never have them, I have to know what spinners are to relate to my client base!

I just got home from watching the preseason NIT regionals, seeing my beloved UNC Tarheels win it for the Thanksgiving trip to New York! 

If you're considering a move to the Charlotte NC area, be prepared to pick a team and pay attention to the NCAAs.  We're home to UNC-Charlotte, which is a decent regional school for basketball...not national championship material (sorry, you 49ers know it's true!), but good enough to make The Dance!  UNC (GO HEELS) is a mere 2 hours away, so Charlotte is home to a large number of alumni and baby blue is predominant.  Wake Forest is less than an hour away, and a strong contender most years.  NCSU (North Carolina State) is 2.5 hours away, and used to be a strong basketball school...but alas, Jimmy Valvano has been gone for many years now.  DOOK is also 2 hours away, and completes The Big Four.  Love or hate them, they're strong in basketball-and also have a lot of alums in the Charlotte area.

Be prepared for office pools come tournament time....pick your team to win it all, have the family dog make picks, whatever your reasoning-but turn in a bracket so you're not out of the office loop.  And for heaven's sake, don't make fun of the basketball fanatics around you...or you will most surely be cut out!

It's a great place to live, work, and watch basketball!  If you're planning a move to this area, give me a call or shoot me an email-I'm a native North Carolinian and a proud graduate of UNC-Chapel Hill.  Just don't call when UNC is playing!

If not, then truly, do yourself a favor and get on board!

I use ZipFormOnline for my contracts, and through them, Docusign is available for $12.99 per month.  The federal government and the NC government have both approved the use of e-signatures, so why aren't more agents using them?

I've found that in working with a lot of out-of-state buyers and sellers that it's essential in being timely and on top of my game.  I no longer have to fax documents back and forth and back and forth, making them tiny and illegible. I can simply print to Docusign from ZipFormOnline or I can upload a .pdf file to Docusign.  There is a feature for ID verification if you're not 100% certain of who checks that email address, so you'll have peace of mind knowing the right person signed and sent back the docs.  Your clients take about 2 minutes to set up their account, then can cruise through the paperwork, clicking to initial and sign where you, the agent, have identified.  Don't know that I'd use this for first time buyers or sellers since they really need you in person-but for experienced folks who aren't available in person anyway-it's a treasure!

The only problem i've experienced?  Other agents.  They're not familiar with the technology and are scared that it's not legal (mainly because it's new and they haven't yet seen it).  The agents for whom I've held hands and walked them through the process are mostly excited to learn about it and how to use it.

Do yourself a favor and look into it-heaven knows I'm not cutting edge, so if I've got this in my arsenal you know it's going to be standard very soon. =)

(and for all of you who are environmentally friendly...think of all the trees and paper you will save!!)

For data entered between October 1 and October 31 2006...

• 228 single family properties sold. 
• Average list price of $183,294 
• Average sale price of $180,173
• Average of 37 days on market. 

For the same period last year...

• 241 single family properties sold
• Average list price of $187,405 (decrease of 3%)
• Average sale price of $184,163 (decrease of 3%)
• Average days on market of 88 (decrease of 42%)

So houses are selling faster but for a little less money.  However, if you consider that there are carrying costs in those 88 days from last year, it's pretty close to being a wash. Still a very strong market and lots of great opportunities!

 

For additional information on Concord, Harrisburg, Kannapolis, or Mount Pleasant NC, call your local expert, Leigh Brown!