Tag Archives: Business

Buyers’ or Sellers’ Market in the Carolinas?


Buy Sell Scale_Can StockWhat exactly is a buyer’s market?  A Buyer’s Market is when we have more homes for sale than buyers.  In this market buyers can leverage the over-supply of homes to their advantage and get very favorable terms such as lower prices, receive closing costs and can take their time with selection.  Buyer’s markets are often identified with a depressed market or declining market and the obvious signs are very few offers in a buyer’s market – best offer is the only offer you received and it’s really low.

So what exactly is seller’s market?  A Seller’s Market is when we have fewer homes for sale than buyers.  In this market sellers can leverage the under-supply of homes to their advantage and get very favorable terms such as higher prices, pay little to no closing costs for the buyers and get quick turnarounds.  Seller’s markets are often identified with a real estate market that is improving and/or getting hot, with multiple offers in a seller’s market – pick the best of many offers received and often they are over the asking price as buyers are competing.

Another way we track whether we are in a buyer’s or seller’s market is our current monthly supply of inventory.  This market statistic demonstrates how many months of supply would be left if no other seller placed his house on the market.  The breakdown would be the following:

1 to 5 months = seller’s market – price is appreciating

5 to 8 months = balanced or normal market – price is stable

8 months and more = buyer’s market – price is depreciating

So how are we doing in North and South Carolina?  Reviewing the last 12 months ending October, 2013 for single-family homes and condo/townhomes for a few areas in NC and SC:

  • Charlotte, NC = 5.5 months with our best month in 2013 of 4.4 months
  • Triad Region, NC (Asheboro, Burlington, Greensboro, High Point, and Winston-Salem) = 9.5 months with our best month in 2013 of 6.3 months
  • Triangle Region, NC (Raleigh area) = 4.8 months with best month in 2013 of 3.8 months
  • Greenville, SC = 6.7 months with our best month in 2013 of 5.6 months
  • Piedmont Regional SC (York, Lancaster County, Lake Wylie) = 6.9 monthswith our best month in 2013 of 5.4 months

As you can see from these numbers across the Carolinas, our trending for the last 12 months demonstrates we are moving out of a buyer’s market and into a healthy/balanced market, which means a great equilibrium for both sides of the transaction.  The monthly supply inventory numbers of 2009 thru 2012 were often double-digit numbers of 10 months and more indicating a strong buyer’s market for many years, with falling prices.  Now with these monthly supply inventory numbers decreasing into single-digit numbers, we are starting to see price appreciation in all of our markets.  A few of our markets are even starting to evolve into a seller’s market!

So what does all of this mean to you?  It means the NC and SC residential real estate market in 2013 showed solid improvement throughout the year and continues to build strength.  If you are thinking of buying a home, low interest rates and good pricing results in high affordability.  If you are thinking of selling your house, the improving market means more activity and better chances of market-value returns for your equity investment.

Reposted from Allen Tate Blog by Tony Jarrett


Small Business Saturday ’12


(Photo Source: Wake Forest Downtown)

In support of our small businesses everywhere, Small Business Saturday, was created to show appreciation for all that small business owners do for our communities. Supporting such businesses also boosts our local economies.

Personally, I will be shopping downtown Wake Forest today – home to so many great small businesses with a unique collection of goods. It offers coffee shops, art studios, cafes, and many other appealing boutiques.

The downtown area of Wake Forest is beautiful and contains that friendly feel of being among family. It is my hope that you would go out within your communities as well to support Small Business Saturday. Let’s create long lines and pour into our communities with patronism. Small businesses are the backbones of our communities and we need to give back to them. Happy shopping!


Real Estate’s Black Friday


(Photo Source: Google Image)

We all know the biggest shopping day of  the year is the day after Thanksgiving.  I’m no stranger to Black Friday deals and lines.  I do believe that when great opportunities come along, I must pursue them.  The same is true for most of us.  We like to invest wisely.

Well, the same can be said about the housing market this time of year.  Now is a great time to buy or sell.  Generally around the holidays and winter months, real estate sales are down; however, I’m finding that in my neck of the woods, our real estate market in and around Raleigh, NC is remaining steady.

FOR SELLERS

If you’re considering to put your house on the market, now is a great time.  Buyers are still out there ready to invest.  Also, inventory is down (less competition) so that elevates your chances of selling and getting more attention.  Interest rates are low so buyers are looking to take advantage of great rates.  Just like Black Friday deals, the holiday season is a prime time to market  incentives on your listing, such as a home warranty, allowances, or closing cost assistance.

FOR BUYERS

Just like there are incentives for sellers to sell, there are terrific opportunities for buyers still.  Interest rates – I cannot stress how low they are!!  Interest rates for me are incentive enough!  But there’s more that I would like to mention.  When considering buying versus renting, buying is the better way to go in most instances because the price of rentals are rising.  Also, I’m seeing great incentives for buyers from  sellers – allowances, closing cost assistance, home warranty, upgrades, just to name a few.  Moreover, new home construction sites are offering cash and prizes as incentives to agents and their buyers for investments before the end of the year.

BOTTOM LINE

As with retail sales, real estate has incentives as well during this time of year!  Fortunately enough, the housing market offers excellent opportunities not limited to just a day, but trends that have been consistent and will hold steady for the days and months ahead.


Simply Thankful


Real Estate

Real Estate (Photo credit: wvhomes)

It feels wonderful to be back blogging again. I’ve been on hiatus from a very busy year, in which I’m simply thankful for, and I haven’t had the time to post.

It has been a very prosperous year for  my clients.  My sellers have been able to have their home values preserved, buyers have been enjoying low rates and lots of inventory, and I’ve been active in quite a few bidding wars and multiple offers.

It’s great to report that business has been good, homes have been selling, and buyers have been buying.  For this and so many other things, I am truly grateful.

Even with the approach of the holiday season, the real estate market in Raleigh, NC and surrounding areas  remain promising and steady.  Home values are increasing, rates are still at an all-time low, inventory is shrinking, and the cost to rent is climbing.

Yep!  I’ve decided that my hiatus is over.  Even though things have picked up for me tremendously,  I need to get back to sharing my experiences as a  professional real estate agent, licensed in the state of NC who works deep in trenches, with all who will listen.  Please feel free to visit my website!


Bought A Home? Scared of Being Unemployed?


Piggy Bank

The possibility of unemployment is a big threat or worry for lots of families these days.  Yet, we still need to move, get a bigger house, or are sick and tired of renting.

Well my company, Allen Tate, has a wonderful program,  The Job Loss Protection Program, which provides security if you find yourself in the unfortunate situation of being laid off after you’ve purchased a home.

Read more about this great program from the Allen Tate Blog, At Home In the Carolinas.  Let’s see what Regina Walker has to say.  Here’s her blog post:

Last year, I found myself in the very unfortunate position of being laid-off.
I had thought that with the downturn of the economy I could find myself
in this situation, but I really thought I would have some idea it was coming
before it happened. Well, I didn’t. I had no idea.

The first of many thoughts was, “Oh my gosh, how am I going to afford
my house?”, then I went into an immediate panic.

“What if I become unemployed after I purchase a home?” is a common concern we
hear in the Client Relations department at the Allen Tate Company. With recent
unemployment rates near 9%, what buyer wouldn’t consider this as a
possibility?

The “Job Loss Protection Program” is an option offered through Allen Tate that can
protect a buyer in the event they are laid off.

Job Loss Protection is not a new concept. It has been traditionally offered
in other industries, such as the automobile industry.

Basically, if a buyer loses his or her job in the first 2 years of
home ownership, they can qualify for payment benefits which helps out when
savings is not sufficient to cover mortgage payments.

Here are some points on the program:

  • Provides up to 6 months of mortgage payments during the first 24 months from
    date of closing if the borrower or co-borrower becomes involuntarily unemployed
  • Coverage up to $1,800 per month
  • Properties listed for sale by Allen Tate Company or purchased through an
    Allen Tate Realtor® are eligible for coverage under this program.
  • Cost of program is $595, payable at closing.
  • Buyer will receive information packet within 45 days of closing to explain
    program

In my case, I was able to find a position within 6 weeks. I would have liked
the safety net and peace of mind to know that my mortgage payments could have
been covered, but unfortunately I did not know that this type of program even
existed. If losing your job hinders your decision to purchase a home,
this is a program that can help put your mind at ease!

By Regina Walter

Very informative.  I wanted to share this blog because it is a great program that can benefit many families.  It’s a great way for a seller to get their home sold by offering this product.  Think of it being helpful just like offering a home warranty.  These days we need job security!  Amen?


Selling Your Home? How to Prepare:


Are you looking to sell your home now or in the future?  Most people ask me where to start or should I sell?  Those are very good and important questions if you’re thinking of putting your home on the market.  Well, whether to sell or not depends on different factors:  your needs and financial situation, just to name a few.  If all signs are a go to sell, then here’s what to do!

Contact a real estate agent!

 A real estate agent is an invaluable source to any real estate transaction.  They help you in many ways such as creating a CMA (Comparative Market Analysis), advertising and marketing your home, market research, negotiating, networking, home maintenance and preparation tips, and so on.  They also provide great resources – financial partners, contractors, inspectors, builders,  etc.  They are chockfull of information and I’m not just saying that!  Here’s how your agent will help:

      1. Discuss agency (the relationship between agent and seller), which includes the agent’s role, loyalty,  and duties.
      2. Research the market in and around your area and pull comparable properties that are similar to your home.  I use pending properties to gauge at what buyers are willing to pay for now.  Using closed properties as comps help me to determine what buyers paid in specific time in the past.  I try to go 3 to 6 months back.
      3. Complete a seller’s net worksheet with you to help clearly define your financial ramifications of selling your property.
      4. Make sure you are prepared well for the experience – inspection, survey, staging tips, professional photography.  Also they are very knowledgeable and have established relationships with great contractors, financial institutions, and other pertinent resources.
      5. Make sure you have the appropriate documents to facilitate a smooth as can be transaction such as copies of deed, bank payoff statement,  tax information, utilities, survey, floorplan,  restrictive convenants, etc.
      6. A big factor is the marketing plans.  Real estate agents market and advertise your property in the appropriate and various forms of media – newspaper, internet, MLS, you tube, craigslist, social media, personal listing websites, etc.

You can see the value we add already!  This is just the short list of services we provide!


Making an Offer on a Home? Negotiating the Deal:


Buying a home is by far the biggest financial decision you’ll make, and it’s also the most stressful one.  It isn’t an easy task; so how willing are you to do the work?  It can be a long process.  You can spend years saving for a down payment, many months looking for a home, and several weeks trying to find the best mortgage.  However, after all is said and done and you find the home of your dreams, the work is far from over!

You found the home and now it’s time to make an offer.  This part is not to be taken lightly because it’s an investment.  Once both parties agree, you have a binding contract.  Your real estate agent will do his/her research and follow these important tips and make suggestions to you when negotiating.

Negotiating the Deal:

1.  Pull comparable properties.  It’s important to back up your offer with the facts.  Comparable sales data is strong!  If you’re thinking of presenting a low ball offer then you could potentially be making a big mistake!  This drastic action may cut you out on any chances at buying the home, especially if you insult the seller.  You may not hear back from them again.  It just makes sense to be cautious and factual.

2.  Don’t fall in love with the home!  It’s okay to really like the home, but not to the point where it clouds your decision-making skills and judgement. This could cost you tens of thousands of dollars.   Also, be discreet with how you feel because you don’t want the seller to have leverage over you when negotiating.  Remember, even if you do find the perfect home, you want to get it for the best deal.

3.  Research property and owners.  People put their home up for sale for various reasons.  Some like to cash-in on their built up equity while others may need to downsize/upgrade, and some do it out of necessity ~ financial hardship or new job.  You can’t obviously get this information directly; however, a real estate agent can look at the history of the property, which may include how long it’s been on the market, any price reductions or increases, etc.  This information is helpful because depending on how long the listing has been on the market and number of price changes during a given period of time whether short or long, can be clues to the sellers urgency, motivation to sell, or lack there of.

4.  Negotiate more than price.  There are other items that are negotiable in a real estate transaction.  Price is only one of them.  For example, asking for a home warranty, if one is not offered, is a must when buying a home.  You may like the big screen television, the armoire, the playset, or washer and dryer.  Negotiate those items.  When buying a home, make sure you get what you want at a price that’s right!

5.  Put yourself in the sellers’ shoes.  We all want a good deal these days!  However, imagine that you are the seller.  How would you feel if it were your home and you were given the offer?  Is it ridiculous?  Is it lowball?  Is it realistic?  How would you react?  Sometimes empathy allows us to put things into perspective.

To sum it all up, buyers should really put major efforts into placing value to an offer when negotiating.  Once you find the home, you’re just getting started!  Happy negotiating!


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