Why Do We Have a Seller’s Market in the Triangle Area of NC?

In my market (the Triangle area of NC including Raleigh/Durham/Chapel Hill and surrounding towns) it is clearly a sellers market. The main reason for this is the severe lack of properties on the market.

In the Triangle market the reason we have a shortage of homes on the market is mainly the current economy. The people here that may want to sell and move up to a larger house and the ones that may be empty-nesters and want to down-size are all sitting tight, afraid to make a move due to this very sluggish economy. Basically they are paralyzed with fear that the economy could easily take another dive at any time and don’t want to take on any more debt. So all of the local movement (up and down) is not present like in a normal market.

The majority of listings on the market are from people relocating out of the area usually for work related reasons. Since the Triangle area is a hotbed of job opportunities, more people are actually relocating here than away from here. You can see how this “out” versus “in” discrepancy would easily account for the current shortage of homes on the market. With all of the job opportunities here we have more incoming than outgoing. Where are the incoming going to live?

Another problem contributing to the shortage of homes available is that at the end of 2007 when the housing market took a downturn, a lot of the builders in the area either went out of business or got out of the building industry. They are just now, 8 years later getting back into the market so their “new construction” inventory has not had time to add to the replenishment of home availability.

This is my take on why we have a seller’s market in the Triangle area of NC. Stay tuned for an upcoming blog entry about what sellers can expect when listing in a seller’s market.

For more information please visit kevinburrushomes.com for all of you real estate needs. You can also visit my Facebook page (kevinburrushomes.com) where I post daily real estate related articles and information that is useful for buyers and sellers. Be sure to “Like” my FB page while you are there. You can always reach me at (919) 889-1766.

 

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The Other Party Doesn’t Have Horns Growing Out of Their Head!

It always amazes me how personal things can get between buyers and sellers in a real estate transaction. I have been involved with a couple of nightmare scenarios lately and they have inspired this blog entry.

It should be fairly straight forward… there are two parties, one wants to sell and one wants to buy. A successful closing should be a shared goal between the two parties. It is a business transaction.

Unfortunately that is not always the case. Sellers get emotional and feel like the offer was too low and possibly so low that it was insulting. These feelings only get worse when the buyers submit a repair request after the home is inspected.

First let me address the low offer issue… if you are a seller and you receive a low offer, you do NOT have to take it. If after negotiating you are not satisfied with the terms you do NOT have to agree. I would rather for my seller to pass on a particular buyer than to bow to any pressure they may be feeling and accept an offer they are not happy with.

Regarding the repair request… the buyer wants the house to be in the best condition as it can. They are not selecting items found during the inspection just to upset the seller. And sellers, there is nothing that says you have to fix all or any of the items they have asked to be fixed. It is a negotiation. If one party is being way too difficult then let the deal fall apart. It is not worth your health and well-being to agree to something when you think the other side is being unreasonable. It just causes even more bad-will down the road.

I have had buyers and sellers so angry with each other that every decision is made with pay-back or vindictiveness in mind. When buyers and sellers have never met in person and are taking the negotiations personally it is easy for each party to think the other party is Satan himself and has horns growing out of his head! Over the years when I see this happening I usually suggest to the other agent that we somehow get the two parties to meet or at least talk on the phone. Every time I have tried this tactic it turns out good for everyone. The sellers realize the buyers are not intentionally trying to hurt them and the buyers realize the sellers are not bad people… just overly emotional about their home. Also… both parties can clearly see that there are no horns growing out their heads. :-)

For you agents that have emotional clients… give this a try. It really works.

For more information or assistance with any of your real estate needs you can always contact me at (919) 889-1766.

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Understanding and Negotiating the Repair Request

In a normal residential sales transaction the buyer has the opportunity to do due-diligence (basically have a free-look period… to “kick the tires” so to speak).  The due-diligence period is a negotiable amount of time and is laid out in the sales contract. During the DD period the buyers can do whatever inspections or investigations regarding the property they deem necessary or desirable.  Prior to the end of the DD period the buyers can submit a repair request to the sellers asking them to fix, repair or correct defects or issues uncovered by the inspections and investigations.

What buyers and sellers need to understand about the repair requests is that they are negotiable. The seller doesn’t have to address all of the buyer’s concerns or any of them for that matter. Sellers need to be aware that by not satisfactorily addressing the concerns of the buyers, they are giving the buyers motive to walk away from the transaction. Buyers need to know that even though the sellers did not agree to do all or any of the items on the repair request, the buyers still have the option to agree to continue with the transaction.

It irks me when buyer’s agents encourage the buyers to ask for everything found in the inspection report. That is just laziness in my opinion. I encourage buyers to pick-and-choose. Select the items that they are very concerned about and leave the small stuff off the list. Regarding the small stuff… if a buyer is a handy person I suggest that they only ask for things they may not be particularity good at doing. If they are good at drywall repair but not good at shingle replacement then I may suggest for the buyer to handle fixing the hole in the drywall behind the bathroom door and ask the seller to take care of replacing the missing shingle. I also encourage that the entire inspection report be submitted along with the repair request. This creates some good-will when the sellers see that the buyers could have asked for a lot more than they did. That good-will encourages the seller to step up and take care of the items asked for.

Sellers should be aware that there are certain issues or defects that any reasonable buyer will ask to be corrected. Even if the seller is willing to lose the deal with one set of buyers because they think they were too picky, some issues like roof leaks, faulty HVAC systems, broken windows, etc. will most likely be requested by the next potential buyer. Even with a stubborn seller, I will encourage them to bite-the-bullet and fix those types of major defects.

The thing to take away from this article is that the repair request is 100% negotiable. Buyers can walk away if certain things are not agreed to by the sellers, but on the other hand, buyers can agree to continue with the transaction even if the sellers don’t agree to do anything. If the buyers are selective when choosing which items are asked for and the sellers are reasonable when it comes to issues that any buyer would ask for… it’s a good bet both parties will make it to a successful closing… and isn’t what we all want.

For more information please visit http://www.KevinBurrusHomes.com or contact me directly at (919) 889-1766.

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Smoking in the House Severely Hurts the Chances of Selling Your Home

Smokers hurt their chances of selling…

…not to mention their chances of living a long and healthy life. When people smoke in their homes, the smell gets in everything. The foul stale smoke odor gets ingrained in the carpet, the curtains, the furniture, and even the walls. The heating and air conditioning system circulates the smoke to all areas of the house. No part of the house escapes the smell. Some folks think they can at least smoke in their garage but the smell comes through walls and seeps up through the ceiling into the rest of the house.

Most smokers don’t even realize their house stinks. Let’s be honest. If you smoke, your sense of smell is impaired, to say the least. Smokers usually can’t smell the odor on their own person – in their clothes, in their hair or on their skin, much less the odor in their house from the smoke.

As an ex-smoker I can speak with some authority on this subject. I smoked for 16 years and fortunately had the desire and will to quit back in 1993. Even when I did smoke, I had the foresight to not smoke in my house.

Within 6 months after quitting, my sense of smell returned to normal. Now, as an agent, when I go on a listing appointment or show a house to a buyer, and the smell of stale smokes hits me in the face when I walk in the door, I want to turn around and walk out and sometimes potential buyers will do just that. They refuse to even see the rest of the house once they smell the stale smoke. They usually make a face as if they had just smelled dog poop and then make a beeline straight for the door.

I usually tell a potential seller, that at the bare minimum, they need to at least quit smoking in the house while the house is listed. If they are offended by that request or refuse, I suggest that they get another REALTOR®, because I am not the one for them. For the agent/seller relationship to work, sellers have to be willing to make some effort to do what is needed to sell their house. If they don’t want to make any effort then I don’t want to work with them.

In situations where the sellers have smoked in the house for years and now want to put it on the market, the idea situation would be to move out and try to correct the odor situation. Once the house is empty, install all new carpet and paint the interior. Take my word for it, this will not totally eliminate the smell of smoke in the house, but it will go a long way towards dulling the smell down. Lastly, place some find of air freshener near the HVAC air intake vent to dull the smoke odor that has collected on the walls of the duct work.

Like I said, that is the “ideal” situation. Most people because of money, or timing, can not move out prior to selling. If that is the case, have the carpets and the upholstery steam cleaned. Wash all curtains. Paint the interior, and again, place some air fresheners in strategic places throughout the house. Do whatever you can to try to get rid of the odor.

There are also fire restoration companies that can bring in ozone machines that can also help in getting the odor out. It is an expensive and time consuming process, but may be what is needed.

The absolute most important thing that you can do if you are a smoker to try to help your house sell is to QUIT SMOKING IN THE HOUSE! That’s a no-brainer.

For all of your real estate needs please visit my web site at http://www.kevinburrushomes.com or my facebook business page kevinburrushomes or call me at 919-889-1766.

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Let the Light In… An Often Forgotten Key to a Good First Impression

When I am showing a buyer homes I can always tell as soon as I walk in the door whether or not the listing agent did a good job coaching the sellers about creating a good first impression. Let’s face it, there a lot of things that a seller can do to create a good first impression, including: de-cluttering, doing a deep cleaning, get rid of any odors at the source, stage it like a model home, having some light jazz or classical music playing in the background at a low volume, etc. But my big pet-peeve when I open up a house to show and find it dark, drab, with no lights on in the house and most of curtains and blinds closed. I mean really?

The potential buyers have never been in the house, they don’t know of the homes features or charm. Do you really want their first impression to be groping to find lights, or squinting to see, or when I later ask them for feedback on a house and they say “that was the dark one, right?”

For my listings I always let me sellers know of the importance of that first impression. In addition to mentioning all of the things I listed in the first paragraph, I also stress to them to please, please, please leave lights on in the main rooms (Foyer, dining room, kitchen, family room, living room and bedrooms). I also ask them to open up the curtains and blinds and let the natural light in.

Sometimes I get a little push-back from a seller saying something like “we leave for work early and don’t want to leave lights on all day for an afternoon showing”. Believe me it is a small price to pay if you look at the bigger picture of selling versus not selling. And even if you are penny-pincher and don’t want to pay the $10 in electricity, is that an excuse not to open up all curtains and blinds? I think not.

When I open up a well-lit home I immediately know these sellers understand what is required to make a good first impression and I usually mention it to my clients (the potential buyers). Just my mentioning that these sellers know what they are doing and want to make a good first impression gives my clients a good feeling about the sellers (whom they have never met).

Bottom line… sellers, even if your agent didn’t coach you well, please do yourself a favor and leave lights on in the main rooms (not every closet and bathroom or hallway) and open up the curtains and blinds and LET THE LIGHT IN!

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The Relationship With Your Agent is a Partnership

When you are thinking about buying or selling real estate choosing an agent/broker can be a daunting task, but it is also the most important choice you will make relating to the real estate experience.  This article is not about making that choice but how to view the relationship once the choice has been made.

There has to be honesty and trust. The buyer or seller client needs to be completely honest with their agent regarding material facts, expectations, wants, needs, likes, dislikes, time frames, finances, etc. The more your agent knows the better they will be able to serve their clients. The agent needs to also be completely honest and trustworthy enough to use the information obtained from the clients to better serve and meet their needs, while also maintaining confidentiality.

It is rare, but I have had a couple of clients in the past that played everything so “close to the vest” that I felt they didn’t trust me and ultimately I wasn’t able to fully meet their needs… mainly because those needs were never relayed to me. It makes for a tough transaction all the way around. If you don’t trust your agent then it would be better for you and the agent to get out of the relationship and find another agent.

The agent/client relationship is really a partnership. You want to get into that new house, or sell your existing house in a timely manner, as financially beneficial as possible and with as little stress experienced as possible. Your agent wants those same things. If you work together, being honest and creating trust, these things can be accomplished with relative ease and everyone wins! Honest communication is the key!

 

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USDA Postpones Location Eligibility Changes…

Some of you may know that the U.S.D.A (United States Department of Agriculture) offers zero-down mortgages. There are certain requirements that have to be met, like income types and income limits, but there are also location requirements. The original purpose of USDA loans was to help out buyers wanting to buy in low-populated rural areas. Every so often they use census data to declare an area ineligible due to population growth… with the reasoning that the area has grown to the point that it can no longer be considered a “rural” area.

When the 2010 census data was released, the powers that control USDA determined that a lot of the small towns across North Carolina would no longer be eligible. Some of the small towns surrounding Raleigh and the Triangle Area that have enjoyed eligibility would no longer be on the “eligible” list. Some of these towns are Holly Springs, Fuquay-Varina, Clayton, Knightdale, Wendell, Hillborough, etc. They have been threatening to take these towns off the list since the 2010 census data came out, but due to the excruciatingly slow recovery from the recession, they have had several delays in implementation.  Each time they announce an extension (for usually six months) we (as REALTORS®) all breath a sigh of relief. Having a program that is available with zero-down is a good thing for buyers, sellers, and the economy.

Great news! Drum roll please….. USDA have decided that the economy is too fragile right now to make any drastic changes to the eligibility map and have announced that they will not make any eligibility map changes until the next census is taken (in 2020) and those results are released and analyzed. That is great news! Yea!!!

If you want to learn more or want to see if your area is eligible or check income requirements and limits… visit:

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

 

 

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