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Top 5 Reasons to Hire a Real Estate Professional

5 Reasons to Hire a Real Estate Professional

by      on October 2, 2013     in For Agents, For Buyers, For Sellers

Today we are excited to have Ashley Garner, a Director of the North Carolina Association of Realtors (NCAR), as our guest blogger.  Ashley was so inspired from our most recent edition of KCM that he chose to expand on one of his (and our) favorite slides from the presentation.  – The KCM Crew

5 Reasons

The real estate market is a place where most people will make their largest investment ever. It is a place where fortunes can be, and often are, made.  It is not a place, however, for you to “wing it”.

While the myriad TV shows about real estate make the process look so simple – it’s not really that simple… they make it seem like all you need to do is slap a for sale by owner sign in the yard, have one open house with fresh flowers and fresh baked cookies and bam! SOLD! in one day.  Well I can tell you that in New Hanover County, North Carolina it takes an average of 121 days to sell a home. An average means that some houses take much longer to sell and some much less than 121 days to sell.

You need a professional, full time, well educated, ethical and trustworthy REALTOR to represent you whether buying or selling real estate.

1 – Paperwork

Currently in North Carolina there are over 24 pages of contracts involved with buying or selling most homes. The state law requires much of this paperwork regardless or whether or not you hire a REALTOR.  REALTORS are trained and educated on the contracts, which are constantly changing, so they can advise you during the process.  They can also refer you to a real estate attorney to represent you on all legal matters involved in the process.

2 – Process

There are about 180 typical actions, research steps, procedures, processes and review stages in a successful residential real estate transaction that are normally provided by  full service real estate brokerages in return for their sales commission. (Based on a report prepared by the Orlando Regional REALTORS Association).  So this means that if you choose to go it on your own, you are going to have to do all 180 things yourself… or they don’t get done… which probably means your transaction doesn’t end in a successful purchase/sale.

3 – Negotiation

While there will always be that one guy (or gal) who thinks he (she) is the all-time greatest negotiator, the vast majority of folks do not like confrontational interactions.  A negotiation for the purchase/sale of an asset as large as a piece of real estate can be a very confrontational interaction. The role of the REALTOR is to act as a buffer between the two parties who are in the midst of a very emotional and high-level financial transaction, both wanting to get the best they can get often at the detriment of the other party. A real estate professional is experienced in all aspects of the negotiation and is bound legally to do only what is in the best interest of his/her client.

4 – Values

Perhaps the single most important aspect of the transaction is the value of the piece of property.

If you are a seller you want to know how much you can expect to get for the sales price and how much of that you will walk away with in your pocket. You want to advertise the property for sale at the right price so you sell for as much as possible but you don’t want to price it so high that no buyers make you an offer (and YES if you price it too high MOST buyers will not want to offend you by making a low offer…thus you don’t get any offers).

If you are the buyer, you want to know how much to offer. Now multiple offer situations are happening more frequently and if a buyer offers too low, they can either be rejected completely by the seller or they can cause the negotiation to take too long thus allowing time for a competing bid to come in… allowing the seller to be in the driver’s seat.

5 – Teacher

Any good professional, whether a real estate professional, doctor, lawyer, CPA, etc., will have the heart of a teacher. Real estate brokerage is a service business. The professional REALTOR is there to educate you about the conditions impacting today’s real estate market.  It is as easy as picking up the newspaper or searching the Internet for real estate news to see conflicting headline after conflicting headline. “Prices are up 20%”, “Among worst markets in nation”, “Best year since the crash”…well which is it? All real estate is local and your real estate professional will know the local market conditions and will lead you through the process, like any good teacher would, making sure you understand all that is going on around you.

A real estate professional is a crucial member of your team when buying or selling real estate. You could be buying your first home or your tenth home, an investment property or a vacation home, commercial or residential…whichever it is you are best served in the care of a full time, well educated, ethical, trustworthy real estate professional.

Solds in East Cobb since June 1, 2013

All solds in Walton,  Pope and Lassiter School districts since June 1, 2013! Thinking of selling, call me today at 770-354-0243 for a no pressure conversation regarding what your home might sell for today!Capture

 

National Association of Realtors 2014 Projections

2014-Projections-BlogSize

Comments on the Impact of Rising Interest Rates

 Impact of Rising Interest Rates

by The KCM Crew on August 14, 2013

quotation marksHere are a few interesting comments on how rising interest rates might impact the real estate market as we move forward.

Zillow

Dr. Svenja Gudell, Senior Economist

“As long as mortgage interest rates don’t rise too far and too fast, most markets should be able to absorb these changing dynamics while still remaining healthy.”

Fannie Mae

Doug Duncan, SVP and chief economist at Fannie Mae:

“Consumers have taken the interest rate rise in stride. Expectations for continued improvement in housing persist, and sentiment toward the current buying and selling environment is back on track from its dip last month. These results are consistent with our own analysis of previous housing cycles, which finds that interest rates and home prices are not strongly correlated.”

National Association of Realtors (NAR)

Lawrence Yun, Chief Economist:

“Affordability conditions remain favorable in most of the country, and we’re still dealing with a large pent-up demand. However, higher mortgage interest rates will bite into high-cost regions of California, Hawaii and the New York City metro area market.”

Trulia

Jed Kolko, Trulia’s Chief Economist:

“If you were worried about a housing bubble, July’s asking-price slowdown will probably be the best news you’ve heard this year. The asking home price slowdown in July could be the start of the return to normal price gains. The blazing fast price increases we’ve seen in recent months could not last, especially with rising mortgage rates, expanding inventory, and declining investor interest.”

Movoto

David Cross, Chief Writer

“Going forward, we expect prices to continue to move laterally on a month-over-month basis. Higher mortgage rates and increased inventory will keep prices from increasing at the same pace we saw in the first half of the year

Housing Bubble?

Housing Bubble: Is There a New One Forming?

by The KCM Crew on May 29, 2013 · 0 comments

 

783773_thumbnailThe housing market is recovering so nicely that it has caused some to wonder whether a new housing bubble is forming. Today, we want to explain that the fear of a new pricing bubble in real estate is unwarranted.

Trulia revealed some great data on this point in a recent blog post. They explained that, even with the recent price increases, national home prices are still 7 percent undervalued. Trulia explained:

“Home prices nationally remain undervalued relative to fundamentals and much lower than in the last bubble. That’s why today’s price gains are actually still a rebound, not a bubble.”

Prices are below their fundamental value in the vast majority of the country (91 of the 100 largest metros). Even in the parts of the country that are now overvalued they come nowhere near the percentages we saw in 2006-2007. For example, let’s look at the two markets that are most overvalued today. In Orange County, California prices are currently overvalued by 9%. In 2006, prices in the region were overvalued by 71%! The second most overvalued market today is Austin, Texas at 5%. Texas real estate prices did not skyrocket as they did in many other parts of the country during the last boom. Austin prices were shown as being 12% overvalued at the time.

Again, prices are still undervalued in 91% of markets and, even in the markets that are overvalued, they are nowhere near the numbers of the 2006-2007 bubble.

Jed Kolko, Trulia’s Chief Economist, explained:

“So are we in bubble territory? No. Bubble-phobes can rest easy. Even with recent sharp home price increases, prices are still low relative to fundamentals and are far below bubble levels.”

Dr. David Stiff, chief economist for CoreLogic Case-Shiller agreed in a recently released report on prices:

“Even if double-digit price appreciation were to continue in former bubble metro areas, there is no reason to believe that new home price bubbles are forming. That’s because single-family homes in these markets are still very affordable, even after last year’s large price gains.”

Three reasons there will NOT be another bubble

Prices are determined by the ratio between supply and demand. Here are three reasons a bubble will be avoided.

  1. Supply is beginning to increase. A lack of inventory is creating a market of multiple bids which has caused prices to rise. The National Association of Realtors (NAR), in their latest Existing Home Sales Report, revealed that the months’ supply of inventory has increased from 4.3 to 5.2 months since January.
  2. Demand will decrease in certain demographics. For an example, investors have been a large part of the housing market over the last several years. As prices continue to rise, a certain percentage of these buyers will back off.
  3. As mortgage rates increase, buyers will be able to afford less. The Mortgage Bankers Association, Fannie Mae and NAR have all projected an increase in mortgage rates over the next year. Buying power will decrease as borrowers can no longer afford the same price point as monthly payments will increase.

For these reasons, we believe the fear of a new housing bubble are currently unfounded.

If you have been waiting to sell, now is the time!

Many people who wanted to sell in the last 4 to 5 years decided to stay put, the market was too soft and it was a market where the buyers iStock_000002936822XSmallwere calling most of the shots!

Well things have changed and they changed fast!! Just in the last 60 days the market has turned into a sellers market.  The inventory levels are the lowest they have been in over 10 years, interest rates are low and buyers want to buy now!

If you have wanted to sell  in the past, but have been on the sidelines, give me a call today at 770-354-0243 and I will be happy to provide you with information that can help you determine if now is the time for you!

 

Buyers have to act fast to get the home they want!

Its a new world for  buyers, if a house comes on the market that they are excited about, they need to go look at it ASAP, with low levels of House and green grassinventory, homes are selling faster than they have in the last 5 years!  Welcome to a sellers market.  It is amazing how fast this market has changed just in the last 60 days.   A quick tip, when you submit the offer, don’t give the seller too much time to respond or you might find yourself in a multiple offer situation which almost always drives up the price, very often over list price. If you are thinking of selling, now is the time and if you want to buy, interest rates are low and the buyers I am working with are finding great homes, we just have to act fast!

Call me today for an update of what’s going on in your neighborhood!

 

Some Fun Super Bowl Facts!

Do cities with higher home prices make more Super Bowl appearances
Super Bowl Appearances vs. Real Estate Prices

I have buyers who need YOUR house!!

If you are thinking of selling this spring, call me now!  Inventory levels are too low and the choices are limited, we have buyers who are blue sky sold houseready to purchase and cannot find a home.

It’s best to get a jump on the market and list earlier than everyone else, you will have less competition and probably will sell faster if you are priced right and in good condition.

Call me today at 770-354-0243 or email me if you are ready to sell, I will be happy to discuss your local neighborhood  market and  may already have a buyer for you!

 

Foreclosures down in Georgia but still top 5 in the country!

Foreclosure Trends VERY Different in Different Markets

by The KCM Crew

Foreclosure

Last week, RealtyTrac released their Year-End 2012 U.S. Foreclosure Market Report™. The report revealed foreclosure trends over the past few years. Here are a few of the key findings:

  • A total of 2,304,941 foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 1,836,634 U.S. properties in 2012, down 3 percent from 2011 and down 36 percent from the peak of 2.9 million properties with foreclosure filings in 2010.
  • 1.39 percent of U.S. housing units (one in every 72) had at least one foreclosure filing during the year, down from 1.45 percent of housing units in 2011 and down from 2.23 percent of housing units in 2010.
  • Foreclosure activity in 2012 increased from 2011 in 25 states — 20 of which primarily use the longer judicial foreclosure process — including New Jersey (55 percent increase), Florida (53 percent increase), Connecticut (48 percent increase), Indiana (46 percent increase), Illinois (33 percent increase) and New York (31 percent increase).
  • Foreclosure activity in 2012 decreased from 2011 in 25 states — 19 of which primarily use the more streamlined non-judicial foreclosure process — including Nevada (57 percent decrease), Utah (40 percent decrease), Oregon (40 percent decrease), Arizona (33 percent decrease), California (25 percent decrease) and Michigan (23 percent decrease).
  • Florida posted the nation’s highest state foreclosure rate in 2012, with 3.11 percent of housing units (one in 32) receiving a foreclosure filing during the year. Other states with top 5 foreclosure rates were Nevada (2.70 percent), Arizona (2.69 percent), Georgia (2.58 percent), and Illinois (2.58 percent).

As we can see, different markets are impacted in vastly different ways.