All of us that own our home  have the mentality “Our house is worth much more than the one down the street”. Of course this makes sense to us because we bought it,  and regardless of how long we have owned our home, we have made it special just for us. We have spent money on it, we have cleaned it, we have loved it.

In today’s “buyer’s market” I have increasingly had the challenge of helping a seller to see why it is so very important to price their home “right” from day one. With most price ranges in Southern Wake Co seeing at least a 6-12 month supply, we do not want a new listing to hit the market “over-priced”. What does this say to the potential buyer out there?

Mr. Qualified Buyer: “ Wow, this looks like a nice house, but why in the world would we want to go see it when it is priced so high compared to other similar homes? If the seller’s have started out with an unreasonable asking price, I expect they will think their house is so great they will not negotiate much. If we did indeed work out an agreeable price I am sure they won’t do any repairs because they will think they are not getting enough money for their home anyway! “

And then, this is what happens when the seller does not get any showings, or many, and they finally start agreeing to reduce their price;

Mr. Qualified Buyer: “Wow, this looks like a nice house, seems to be priced reasonably, but if it is priced so well and looks great why in the world has it been on the market for 8 months?? Let’s move on, there must be something wrong with this one. “

And then, if Mr. Buyer indeed decides to go ahead and look at the ‘previously overpriced’ home, and wants to make an offer it can look like this;

Mr. Qualified Buyer:  “Ok, I really like this home…it is priced fairly well, looks great, but since it has been on the market so long I would like to make a very serious, very low, offer on it!”

Poor Mr. Homeowner will end up selling his home for less, and it will take him much longer,  than if he just would have Priced It Right in the first place!

There has never been a time in my real estate career that I have showed more homes. My average buyer has sees at least 15-20 homes and sometimes still wants to see homes even if we are under contract to buy one already! This doesn’t count the 100’s of homes I am sure they have browsed online and decided not to view!

My Dear Home Sellers; we have to price your home right for our market right from the start to give it it’s best chance to sell!

Welcome Home, laura

With all the talk about foreclosures and short-sales, I thought it might be helpful to try and explain exactly what a “short-sale” is and how it may benefit a buyer and a seller. A “short-sale” is just what it sounds like…the sale is shorted. When a home sells for less than an owner owes on their mortgage note(s), and the seller cannot come up with the difference to pay all that is owed, the mortgagor may accept a short payment. The lenders are much more open to this idea than they used to be because of the down economy and increased number of homeowners falling into default on their mortgage payments. The bank does not want to foreclose on your home! It costs them lots of money to take possession of your home and put it back on the market to sell.

If you are a homeowner needing to sell your house because of job relocation and/or a financial hardship, a short-sale may be an option for you. We need to decide on a market expected sales price and then see if all your expenses and payoffs can be covered. If not, contacting your mortgage company(s) is the first step. We can help you through the short-sale process as we have done many of these alternative type of transactions in the last couple of years.

For a Buyer looking at a “short-sale” home to purchase, patience is the key. Sometimes the banks can take a long time (30-90 days) to give an answer on a sales contract as to whether or not they will accept the “short”. The listing agents have to prove market time of the property, and prove that they have achieved the ‘highest and best’ offer for the bank. Once a bank approves a short-sale offer things can move very quickly to closing which will result in most likely ‘a below market price’ for the buyer and an avoidance of a foreclosure for the seller.

Welcome Home, laura

Recently I was asked by a Buyer Client the details of building a custom home. We have been looking at custom new construction and bank owned new construction homes in the Southern Wake area as we patiently wait for their existing home to sell. While there are some beautiful homes out there and some fantastic deals, not any one home stood out as having everything they would like in their new home.

A pre-sale (contracting with a builder to build a specific custom home for you) is a great option when:

1. There is no standing inventory that you love.

2.  You know you want to live in this home for awhile.

3.   You would like to customize your features as much as possible.

Because the builder is going to build a house just for you he will most likely require a non-refundable deposit (credit towards the purchase price at closing) because he is at a little bit of a risk if you do not end up closing on the house. The builder will also base costs on current construction prices, which may be higher or lower, than were used for existing inventory.

Banks and Mortgage companies are starting to offer Construction to Permanent loans again, which takes some risk off the builder. In this situation the Buyer applies for the construction loan and at time of completion of the home the lender converts the construction loan to a mortgage.

There are many beautiful lots available in the area, some at deep discounts and even bank owned. We have worked with many custom builders and will be happy to help you find a lot, plan, and builder to build your dream home!

Welcome Home, laura

Over the last couple of years the popularity of buying a home with “instant equity” almost seems to have become expected. I believe I have showed and sold more bank-owned property and short-sale property than I have ‘normal’ non-distressed homes; even though there are many homes in today’s market priced extremely competitively.

Although buying a ‘deal of a home’ , especially at today’s record low rates, may seem like a no-brainer, it has occurred to me that I have needed to gently question some of my buyers to make sure they are buying the “right” house for them, not just the “best deal in town”.

If your wish list for your next home includes a garage, a yard large enough to fence your dog and your 4 children, and a downstairs Master Bedroom; then the bank owned home you just found online on .12 acres, no garage, and all the bedrooms up should not get you excited, even if it is priced $150,000 under it’s tax value!

I caution my buyer clients that they are making one of the single largest purchases in their life, it is an important one. They will move their family into this home and mostly likely stay for at least the next 5-10 years. Is it really a deal if you paid “$150,000 under value”, re-modeled and added a 2 car garage for $100,000, had to take the kids and dog to the park to stretch their legs, and you still don’t have a Master Bedroom downstairs?

I encourage you ‘deal seekers’ to not pass up the locally, privately owned homes that are loved by their owners in every way…you may just find your very own ‘best deal in town’!

Welcome Home, laura

Who doesn’t enjoy seeing Holiday lights during Christmas Season? Please make sure you add Lake Wheeler Rd near the intersection of Hilltop-Needmore in Fuquay-Varina on your ‘must see’ list!

Mike Schulz, owner of AFFORDABLE HOME INSPECTIONS, has done an incredible job sharing Holiday joy with his spectacular light show! His lights are actually set to music and they will astound you, I personally have taken several groups there already this season and am warmed every time I go!

Happy Holidays and Happy New Year to you all!

Welcome Home, laura