Archive for September, 2007
Staging Your Raleigh Home to Sell for All It’s Worth - Part 1 of 3
September 28th, 2007 Categories: Real Estate Tips, Selling a Home
Are you thinking about selling a home in the Raleigh area in the near future? Regardless of whether we are in a seller’s market, or a buyer’s market, there are some timeless principles that you can always apply to maximize your profit when selling your home in Raleigh, or anywhere else for that matter. This article is the first in a three part series about how to prepare your home to sell quickly, for top dollar, without having to invest a ton of money.
Curb appeal is the easily the single most important factor in preparing your home for sale. The old saying that you never get a second chance to make a first impression is the rule to live by with regards to curb appeal. The way your home looks from the street affects so many other aspects of my marketing plan. I will spend an enormous amount of time, energy, creative talent and money to get someone to your home. The subject of my marketing presentation (your home) must be as appealing as possible to the discriminating eye of the buyer.
To begin with, photos sell houses. I cannot tell you how many times a buyer has told me not to show them a home based on the photo in MLS. The main photo in the MLS, and most every other form of online and print advertising, is the front view, from the street. If they don’t like what they see in the ad, they’re not going to bother looking at your home.
So they like the photo we put in the MLS, or the ad… now what? Well, the buyer will most likely drive by your home for a closer look. The purpose of this is typically to confirm what they see in the photo and to clarify anything that was not clear from the camera position used to take the photo.
Are you beginning to see why I place so much emphasis on curb appeal? If this single component of preparation is neglected we have lost before we have even begun. The photo will not attract enough buyers from my advertising and anyone driving by will just keep on looking unless we nail this!
A clean, well groomed, attractive yard that is free from debris will quickly grab our prospect’s attention and make them want to see more. Here is a list of things to make sure are in order in your yard.
- keep the grass mowed
- trim the edges of the lawn
- sweep all walkways
- remove any toys
- park all cars in garage
- remove RVs or boats
- freshen the natural areas
- replace weathered mailboxes
- clean pet debris and remove pets
- plant flowers if in season
- trim trees back from the house
You will get every penny you spend on the yard back either in a faster sale, which could save you another mortgage payment, or offers at a higher price.
The bottom line is the more buyers I can get into your home, the higher the eventual sell price and the shorter the time on the market. What they see from the outside will have a huge impact on the quantity of buyers I can get to look inside your home. Help me to help you by creating curb appeal that will compel buyers to look inside.
Remember, if they don’t like what they see in the ads, they won’t come. And if they don’t like what they see when they drive by, they will simply move on to the next house.
Be sure to check back on Monday for part 2
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Tires and Top Notch Service From Somebody You Can Trust
September 27th, 2007 Categories: Local Businesses
Whenever I help someone relocate to the Raleigh area, they come here with broken networks. What I mean is that they are leaving their network of service providers behind. Who should they go to for dry cleaning, hair cuts, pet supplies, auto service, an so on?
Buying a new home and moving can be hard enough, but when you are coming to a place that is totally unfamiliar, it complicates matters. Part of my job as their Realtor is to help them reestablish and repair those broken networks. Once we close on a client’s home, many times they realize that they don’t know who to go to for the simplest day-to-day needs.
For that reason, I have established a page on my site to help my real estate clients find service providers to supply their needs. And one company that is proudly on that list is Duty Tire, in North Raleigh.
I was referred to Duty Tire about ten years ago by a friend. Hey folks, this referral thing really works! If you want to know who’s good at something, ask for a referral. My experiences with Duty Tire have always been positive and over the years I have developed a real sense of trust for what they do for me and my family.
As soon as you walk in, you will probably be greeted by David Duty, the manager of the North Raleigh store. David is a real down to earth guy who genuinely wants to do the right thing for his customers. I have had several occasions to discover this first hand.
Last year my wife bought a new car and on day 5 she picked up a huge nail in one of the tires. Since it was brand new, she of course went back to the dealer for advice. They told her that the nail was too close to the side and the tire would have to be replaced. They also told her it would cost over $200 and would take 3–5 days to for them to get the tire.
Feeling that this might not be the best alternative, she called David. He asked her to bring the car by and within minutes was patching the tire for about $15. David assured her that he patched many tires every day with nails in the same location relative to the sidewall and that they were never a problem.
To make his point, he went on to say that he would do the same even if it were his wife’s or daughter’s tire. He was completely confident that the tire did not need to be replaced. And he was right… 14 months later the tire is just fine, and we are over $200 better off.
Just for the heck of it, I asked David to price a replacement tire. His price was $157 and he could get the tire in 24 hours. Quite a different story, huh? I could go on and on about all the nails Duty Tire has remove for me after driving around new construction homes. And how every time he has been able to fit me in without any notice and only charged a very modest fee. I think you get the point.
The next time you need tires or minor mechanical work for your car, stop by and see David, in North Raleigh, or his brother Steve, in the South Raleigh location. Be sure to tell them I sent you.
Duty Tire
5220 Atlantic Avenue
Raleigh, NC 27616
919–862–8500
Duty Tire
405 Tryon Road
Raleigh, NC 27603
919–772–6100
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Monday Morning Real Estate Update - Expanded Coverage
September 24th, 2007 Categories: Real Estate Market Trends
Here’s your Monday Morning Update and I’ve expanded the areas that are covered. The new chart below contains stats on all of Wake County with break out numbers for the areas where I spend most of my time helping clients buy and sell homes.
This new chart will give a larger picture (all homes for sale in Wake County) and more detail than just Raleigh. It will also give you an idea of the relative sizes of all the sub-markets that make up the greater Raleigh real estate market.
One thing you might be interested in is the change in inventory levels, active listings and prices during the past year. The chart below shows the changes in these three important metrics over the past year.
So what does this mean if you are trying to buy a home in the Raleigh area?
For one thing, the selection is better than ever! Finding just the right home for my clients has become easier and more fun. Prices are certainly higher now than they were one year ago. However, prices are not 28% higher as the chart would indicate at first glance.
This chart simply compares the difference in average list price between now and one year ago. The large increase shown above has much to do with the fact that our market is 40% new construction. Right now there are many high end neighborhoods going up all over the Raleigh area. Simply put, builders have focused on higher price points and since that is such a large component of the total market, the average list price is higher now.
Just so you’ll know, there are currently 662 homes for sale in the Raleigh area between $250,000 and $350,000. There are 395 between $200,000 and $250,000. We can find you a home regardless of what your price point is.
And how about people trying to sell a home in the Raleigh area?
There is more inventory. And more inventory typically means longer market times and more pressure to lower prices. Even so, the market still slightly favors sellers over buyers right now. An economist would tell you that increasing inventory with a supply of less than 6 months means that the market is able to absorb the increase. Market times have increased some. That’s right where we are now.
The bottom line is homes that are priced accurately, well prepared and professionally marketed are still moving in 60–90 days. Hardly any reason for panic.
At the same time, don’t get too excited about the 28% increase in average list price either. Read the paragraph about buying a home in the Raleigh area again. The real resale appreciation is at about 5% for the year. This is a good, healthy and sustainable number.
I still firmly believe that one of the biggest challenges we are faced with is the slow down in the number of people relocating to Raleigh. The demand is still strong among people who want to relocate here. However, many of them are still struggling with selling their homes in various markets around the country. Most people need their equity to buy a home when they get here.
If you want to search homes for sale in the Raleigh area, click here. If you are interested in discussing exactly how the current market conditions might affect your plans to buy or sell a home in the Raleigh area, just give me a call at 919–602–7000, or send me an email.
Have an awesome week!
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Interest Rates Are Down - Now May be the Time to Make Your Move
September 19th, 2007 Categories: Mortgage and Finance
You probably heard that the Federal Reserve cut the Fed Funds Rate yesterday. This is the first time this critical rate has been lowered in over four years! What does this mean to home buyers in the Raleigh area?
It means a couple of things.
- the cost of financing a home purchase is now lower that it has been in quite a while
- If you have (or need) a Home Equity Line of Credit (HELOC) the Federal Reserve just put a little extra money in your pocket
There will be another Fed meeting in six weeks and there is much uncertainty about what the possible outcome might be. If you are anywhere close to being ready to purchase a Raleigh home, give me a call right away at 919–602–7000 and I will put you in touch with one of the mortgage lenders I deal with to discuss how to take advantage of this great opportunity.
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Raleigh Homes for Sale - Monday Morning Update
September 17th, 2007 Categories: Inside the Beltline, North Raleigh, Real Estate Market Trends
Good Monday morning everyone! Here’s your weekly market stats for Raleigh homes for sale.
There’s still lots of good inventory out there. And interest rates remain very good with an anticipated rate cut likely to result from the Federal Reserve FOMC meeting this Tuesday. This remains a very good time for buyers to purchase a wonderful home AND participate in a healthy real estate market with very good return on investment.
I’ve had several requests for sales data that shown price trends, so I came up with a chart that illustrates the increase in average sell price over the past 24 months. Here’s the chart that contains the data for homes sold in Raleigh, North Raleigh and Inside the Beltline.
Keep in mind that this is NOT resale appreciation. At least not exactly. This data contains information on new construction homes which is currently about 1/3 of the Raleigh real estate market. New construction data can skew the results simply because builders choose to build more or less expensive homes. In our market they are choosing more expensive, over time. Which is kind of what you would expect in a healthy market.
This does, however, give us a clear indication that prices are increasing at a very manageable level. There are no indications that this trend will end any time soon in Raleigh.
It’s a great time to sell because you can realize a very good profit based on the price you likely paid just a few years ago.
It’s a great time to buy because waiting will likely mean you will pay a good 6–7% more twelve months from now. And purchasing now gets you in the game at a very good time to benefit from future appreciation.
If you would like to discuss what these numbers mean for your planned purchase or sale of a home in the Raleigh area, give me a call, or email me and I will be happy to to discuss this with you personally.
Have a great week and be sure to check back often for stories about various neighborhoods and a great new feature that will be added to the site this week. I will have an event calendar up soon that will allow you to search for fun things to do here in the Raleigh area. As always, your feedback is welcome!
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Bedford Offers Real Community Feel in North Raleigh
September 14th, 2007 Categories: Bedford, New Construction Homes, North Raleigh
When I’m helping a client relocate to Raleigh one of the first things they say is they want a really nice neighborhood. When we start to define what that means to them, invariably the list of wants includes things like community pool and tennis, sidewalk and walking trails, and friendly community atmosphere. The award winning Bedford neighborhood in North Raleigh delivers all this and much more.
Bedford is in a great North Raleigh location just north of I-540. It is near shopping, entertainment, health care facilities, and just a modest drive down I-540 will take you to Research Triangle Park (RTP) and the airport. Bedford is one of the larger of several residential neighborhoods in this general area. This medium density of residential homes is just the right amount to attract lots of the conveniences that today’s home buyers are looking for.
As far as the homes for sale in Bedford… there is something for just about everyone. There are townhomes that start in the $150s all the way up to estate homes at almost $1 million. And there are lots of choices in between too. Currently there are 120 homes listed for sale in Bedford. Of those, 61 are new construction.
Bedford is a very well thought out community and has won dozens of national and state level Home Builders Association awards such as Community of the Year, Master Planned Community of the Year, and numerous Parade of Homes awards year after year.
As good as the general area of North Raleigh where Bedford is located is, there is plenty to do without ever having to leave the neighborhood. The amenities include:
- multiple parks and playgrounds
- greenways and walking trails
- neighborhood farmers market
- recreation center with clubhouse
- tennis courts
- volleyball courts
- basketball courts
- picnic pavilion
- two swimming pools
I will focus on the various sections of the neighborhood and homes and architectural styles in future articles,so be sure to check back soon for updates on this great neighborhood.
Click here if you want to search for homes for sale in Bedford. Just click on the “subdivision” tab at the top of the search tool and type “Bedford” into the property location area.
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How Proposed Transfer Tax Increases Could Harm Raleigh Home Sellers… and Buyers
September 12th, 2007 Categories: Buying a Home, Selling a Home
What is the likely impact of a 200% tax increase on individuals selling a home in Raleigh? Do you want to pay additional taxes when you sell your home? Will the public benefit, or be harmed by such legislation?
In case this is news to anyone, let it be known that your North Carolina state legislators have seen fit to attach an increase in the property transfer tax to a Medicaid relief package that was recently approved by the House and Senate and supported by Governor Easley. A transfer tax tied to a Medicaid relief package? Give me a break! Is there anyone else who wonders what the heck one of these has to do with the other?!?!
The current transfer tax, that item on your closing statement called “revenue stamps”, is .2 percent of the sale price. A $200,000 home currently has a transfer tax of $400, which is paid by the seller. The proposed increase would raise this tax to .6 percent. Under the proposed tax increase the same $200,000 home would now cost sellers $1,200.
How will this impact someone selling a home in Raleigh? My guess is home owners will seek relief in the form of a higher asking price for their properties. Some may even choose to postpone listing their home for sale. Let’s see… in a supply and demand model lower supply with constant demand results in higher prices, right? How much more will buyers have to pay? Does anyone think this result is a good idea? Apparently the state legislature does. What do you think?
Raleigh has benefited from a very normal real estate market and avoided the excessive increases in value that are now wreaking havoc on major markets across the country. Will this increased transfer tax single handedly cause home values in Raleigh to increase out of control? Probably not, but why throw another log on the fire? Just the fact that our market is doing so good right now and attracting so many people who want to relocate to Raleigh is pressure enough on home prices. People we simply do not need this tax!
The NC Association of Realtors (NCAR) and the NC Home Builders Association have been lobbying against any kind of transfer tax increase. I am a member of NCAR and personally oppose this tax. So do the vast majority of my 44,000 fellow NCAR members. We have written our state law makers and worked hard, but they ignored our pleas and did the sneaky deed of including the transfer tax increase language in the previously mentioned Medicaid bill.
There is still time for you to make a difference. You can stop this really bad idea from becoming a reality that every one of you will have to deal with every time you buy and sell a home in the Raleigh area.
The language that was approved by your beloved state lawmakers gives each county the option to add a referendum on ballets this fall allowing voters to choose to implement the increase, or not. We need your help. Although it seems unlikely that voters would approve such a measure, who knows how this will actually be presented on ballots. I’ll be sure to keep all of my readers informed as the time approaches. Personally, I (and home sellers and buyers across the state) would appreciate your help in defeating this tax increase.
If you would like to read more about this important issue, go to www.itsabadidea.org. If you feel strongly either way about this, be sure to leave your comments below. In any case, be sure to vote this fall. It’s the only shot you will have at making a difference!
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Hasentree Brings a New Level of Luxury Living to Raleigh Home Buyers
September 11th, 2007 Categories: New Construction Homes, North Raleigh, Wake Forest
Interested in a Raleigh home that features European styled architecture from the area’s best custom home builders?
Does a serene setting in the Falls Lake preserve surrounded by private wooded walking trails appeal to you?
Do you want everything you need to enjoy an active lifestyle including:
- lighted clay tennis courts with a tennis pro shop
- championship Tom Fazio golf course
- 30,000 square foot clubhouse and pro shop
- state of the art fitness center
- water and swim pavilion
- 13,000 square foot family activity center
- club concierge service
Hasentree might be just what you’re looking for. Located in the edge of Wake Forest, just north of Raleigh, Hasentree offers a very unique lifestyle opportunity for the discerning home buyer who wants an unparalleled level of luxury and amenities.
Folks, this really is a special community. There is nothing quite like it in our area. Homes will range in price from $800,000 to $5,000,000. There are currently 14 homes available at various stages construction. The link below will open a page with full details.
Be sure to click on the main photo in the listing information for additional interior photos. You will be impressed!
For those of you who want to secure the perfect homesite and build up to 18 months from now, lots are available for purchase. Pre-sale opportunities also exist which will allow you to custom design your home from the ground up.
Be sure to check back often. This special community will definitely require ongoing coverage here on Raleigh Real Estate Talk.
If you would like to schedule a private tour of this unique community, call me at 919–602–7000 or fill out the contact form and I will be in touch with you right away.
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Raleigh Homes for Sale - Monday Morning Update
September 10th, 2007 Categories: Inside the Beltline, North Raleigh, Real Estate Market Trends
Good Monday Morning! Here’s your weekly real estate market stats including all Raleigh homes for sale as well as a look at North Raleigh and Inside the Beltline.
Not much change from last week. As I’ve mentioned before, week to week variations don’t have much meaning. As time goes on and we get a little history behind us with this weekly article, I’ll make some more meaningful comparisons to the stats from months and years past.
I’ll even see if I can dig up some historical data by the time I post next week’s update so that all of you can start to look at these numbers in a more meaningful context.
Coming up this week at Raleigh Real Estate Talk are articles on two really great North Raleigh neighborhoods. Bedford, an award winning neo classical neighborhood with opportunities in all price ranges, and Hassentree, a high end luxury home community with a Tom Fazio designed private golf course.
I’ve also got some ideas for home buying and home selling how-to series that will probably end up being published as guides that you can download whenever you are planning to buy or sell a home in the Raleigh area.
Also be sure to look for a weekly article about what’s going on in the area that will be published on Fridays. Part of this will be a community calendar that you access to check out fun things for you and your family to do. This will be perfect for folks relocating to Raleigh and wanting to explore the local scene.
Have a great Monday and check back soon… it looks like a very busy week ahead!
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Renowned Economist Says Raleigh Real Estate Market is Solid
September 6th, 2007 Categories: Real Estate Market Trends, Why Move to Raleigh?
Distinguished NCSU Professor of Economics, Dr Michael Walden, spoke to a packed house at the North Raleigh office of Keller Williams Realty on Wednesday. What did he have to say about Raleigh area home sales? He confirmed what I have been saying for some time, based on my personal experiences and observations. We are very fortunate to have missed out on much of the real estate related pain that the rest of the country has been experiencing.
Dr Walden spoke about the current housing and mortgage markets on a national level. He explained how every 10 years, or so, our economy goes through a business cycle which includes expansion and ultimately recession. Along the way the economy grows and slows down. Over time, the trend continues upward.
The last downturn was in 2001 and as we all remember it had much to do with a huge run up and subsequent downturn in the technology sector. This time the run up and resulting downturn is in the housing sector. In major markets across the country, prices got too far ahead of affordability. This was not sustainable. Fortunately, this did not happen in Raleigh.
Dr Walden emphatically said he does not think we are currently headed for a recession. Based on the 10 year cycle, and the last downturn being in 2001, we will likely experience a more serious contraction in the economy by the end of the decade. But for now, Dr Walden speculates that the national economy will experience about another six months of reacting to lower overall home prices and tightening of mortgage lending criteria. He thinks growth will be sub-par, maybe only 1–3%, but that we will come out the other side without significant damage to the economy.
So what does all this mean to Raleigh home sellers and buyers? The bottom line is real estate continues to be a great investment vehicle available to the vast majority of citizens. Where else can you spend money for a staple of life (housing) and end up making a profit, over time, from the money you have paid?
And in Raleigh, we are in a rather unique position of being in a market where home prices did not increase ahead of affordability. Raleigh home prices continue to appreciate at a more normal pace. Just like they did when other markets were experiencing unnatural increases of 15–20% per year.
Real estate will continue to be a great investment, over time, even in these difficult markets across the country. Home buyers and sellers in Raleigh will do even better, especially in the short term.
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