Change is Good!!

So my little boy was looking for a movie to watch yesterday, and he happened to pull out my Atari Flashback. Yes, I said Atari! Although not the original, this is a system that has all the original Atari games in one console. Centipede, Asteroids, Food Fight and all the other favorites! I purchased it about three years ago on a whim when I went to Best Buy to get my Sirius Radio installed in my car. (See, I am current with technology!) There was a huge display of them at the front of the store, and they were on sale for only $14.99. So I thought it would be fun to go back in time and have some fun.

I know you are thinking, Lisa, what does this have to do with real estate. Actually, there are a ton of similarities between technology, ( or in this case, old video games) and real estate.

For example, where would we be today if video games remained the same. We would still be playing the same old Space Invades, BONG, Asteroids, etc... The same with real estate. In order to survive, it has to move forward and change.

One big change this year was to the current Offer to Purchase and Contract. In years past, a buyer who was under contract had a certain time to get his/her loan approved. However, the date was specified as "Time is of the Essence." So as long as the seller was willing to wait, the buyer could drag out the contract, trying to get loan approval. With the new contract, the buyer has so many days to get full loan approval. If he or she does not, then the seller has the right to void the contract, and keep the earnest money. Now granted, it is not as simple as it seems, but it is easier to move contracts along now, and make sure the seller's property is not tied up for log periods of time buy buyers who are not qualified.

One great change for buyers is on the Additional Provisions Addendum. Now there is a section where the buyer can list things that they want repaired to the home, and this is considered pre-negotiating the repairs. So if the buyer requests that the all items found on the summary page of the inspection be repaired, and the seller signs agreeing to it, repair negotiations are done. This makes it easier for both parties: for the buyer, they know that the repairs are going to be done, and for the seller, they agree in advance to do all the repairs, and they know that the buyer has accepted this agreement, no matter how many repairs are listed on the inspection report. Now this is not a perfect world, and differences on repairs can come up, but this is one of the best changes I have seen in a long time.

One major change this year is pertaining to the commission that agents receive. Now all agents must disclose to buyers the compensation that they are receiving from the sale of the property, including all bonuses and gifts. (Such as gift cards, trips, etc...) For more information on this new change, you can visit the North Carolina Real Estate Commissions Web Site:

http://www.ncrec.state.nc.us/bulletin/bulletin.htm

If you are considering purchasing a home, and would like more information on the current changes to North Carolina Real Estate Rules and Regulations, or if you just have questions in general, please feel free to call me at 919-272-4754, or you can visit my web site at:

http://liveinraleighmidtown.com/

COLDWELL BANKER® LAUNCHES NATIONAL 10-DAY SALES EVENT

Thousands of U.S. Home Sellers Will Reduce Their Listing Prices By Up to 10 Percent Between Oct. 10-19

Majority of Coldwell Banker Sales Associates Surveyed Say a Modest Reduction in Listing Prices Will Help Bring More Home Buyers and Sellers Together

The real estate market is alot like a weather forecast...it doesn't matter to you, unless it is local. With this in mind, Coldwell Banker Howard Perry and Walston, along with Coldwell Banker International, is preparing for the 10 day nationwide home sales event.

What does this mean to you? Seller that have chosen to participate in this amazing promotion, have agreed to reduce the price of their home during the 10 days that this promotion is going on. With the number of homes to choose from in our market, and with several sellers motivated during these challening real estate times, this means that a great buy just got better. (Please keep in mind, not all sellers have chosen to participate in this sales event.)

Below is the press release from Coldwell Banker, telling more about this great promotion.

If you would like more information this, please email me at LisaColeman@hpw.com or visit my website at www.LiveInRaleighMidtown.com

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PARSIPPANY, N.J. (Oct. 6, 2008) – Coldwell Banker Real Estate LLC today announced a bold initiative to bring home buyers and sellers together and help jump-start the U.S. real estate market. Starting on October 10, 2008, the nation’s oldest residential real estate brand will kick-off its first-ever national “10-Day Sales Event” – during which participating home sellers from across the United States will reduce the listing prices of their homes by up to 10 percent. The Coldwell Banker® 10-Day Sales Event will run nationally through October 19, 2008.

“Despite the difficult headlines regarding our overall economy, the residential real estate market has been showing several positive signs over recent months that could be signaling a tipping point,” said Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate LLC. “Because of higher inventory, buyers have more homes to choose from and they can take advantage of near historically low interest rates and affordability levels that are the best they have been in years. The recent housing and economic recovery legislation also provides first-time homebuyers with the added incentive of a $7,500 tax credit.[1]

“Yet our research and discussions with our brokers and sales associates shows that in many markets sellers remain reluctant to list their homes at the proper prices necessary to attract buyers,” continued Gillespie. “It’s our hope that the Coldwell Banker 10-Day Sales Event will move buyers off the sidelines and into the market. We are embarking on this initiative – which has never been done before on a national basis – because we believe it is critical for Coldwell Banker, as an industry leader, to help serve the needs of those individuals listing homes with a Coldwell Banker broker and to help move the U.S. real estate market in the right direction.”

In a recent survey of 3,379 Coldwell Banker real estate professionals in markets across the United States, 56 percent said that listing prices in their market remain above where they need to be to attract qualified buyers. Additional findings from the survey include:

77 percent agreed that the majority of sellers in their market still have unrealistic expectations regarding the initial listing price for their homes
79 percent agreed that homes in their market that are priced appropriately are attracting more buyers and moving more quickly
76 percent feel that a 10 percent or less reduction in listing prices in their area is all it will take to help push these homes over the “tipping point” to a sale

“Our brokers and sales associates agreed that, even in the current climate, it will not take much movement to attract those buyers who have been watching and waiting,” noted Gillespie. “Depending on the market, a price reduction of just 10 percent or less just may make the difference in both satisfying sellers and bringing buyers to the table.”

Sellers participating in the 10-Day Sales Event will have added promotional power from the Coldwell Banker brand behind their listing. Those sellers’ listings will be specially promoted through national and local radio, print and Web advertising. The brand’s flagship Web site coldwellbanker.com will feature participating listings. Home sellers will have the option to maintain the reduced listing price for their properties following the 10-Day Sales Event.

[1] Consult your attorney and tax preparer for terms, availability and eligibility and requirements.

Myth vs. Reality--Is Now a Good Time to Buy a Home?

In today’s real estate market, it’s hard to separate the myths from the realities. Well, here are three market realities that none of the experts or headlines can dispute.

First, there are plenty of quality homes to choose from. According to the TARR (Triangle Area Residential Realty) Report, housing inventory in the Triangle Area has grown, on average, approximately 48% from 2005-2008. Which price point had the highest growth during this time? The luxury home market, or homes priced $500,000 and up, had the highest growth during this time than any other price point. And 60% of these homes are new. So if you are considering purchasing a home in the near future, I recommend looking at new homes, because builders have too much inventory, and they need to reduce this inventory, especially before year end.

Second, it’s clearly a buyer’s market and you can get more home for your money. For the second quarter of 2008, 5498 homes listed in the MLS had at least one price reduction. This is a 17% increase over 2007, and a 40% increase over 2005. Now more than ever, it is a great time for buyers to get the home that they have always wanted, at the price that they want to pay.

And third, there are still good mortgage rates and terms available. The news media makes it sound like no one can get a loan, which is both infuriating to me and irresponsible of them. They are adding to the problem, instead of being a non-biased source of information to the people they are supposed to serve. I say this because there are still plenty of funds available for credit worthy borrowers (employed and having “reasonable”, not necessarily “excellent” credit).

What is not available: “no doc”, “stated income” and “sub-prime” loans. These represent the minority of loans even 2 years ago, and are the type of loan that should never have been created because they often end in default. Most of the 100% loans are gone for the same reason.

What is available: 100% financing (USDA… with some restrictions), very low down-payment FHA loans up to $300,000 (gift money still allowed) along with all the other standard FNMA/FHLMC products.

And let's not forget about the $7500.00 first time home buyer tax credit! If you, or anyone you know, would like more information on this, just email me or give me a call. You can also read more about this on my website at http://www.liveinraleighmidtown.com/ and click under the Buyer/Sellers Tab on $7500 Tax Credit Info! You can also visit the following site for more detailed information:

http://www.federalhousingtaxcredit.com/faq.php#3

In most markets around the nation, home inventory has increased giving buyers a greater choice. At the same time, mortgage rates remain at near historic lows and home prices have either leveled off or decreased for the first time ever last year (2%) according to the National Association of Realtors. It is expected to drop an additional 4-6% this year. This has made home affordability the best in the last 5 years and according to a recent Wachovia study the best in nearly 30 years.

Time and time again, our area has not only been voted as one of the best places to live, but also one of the best places for home investments. If you are considering purchasing a home, either as your personal residence, or as an investment, email or call me today. I look forward to showing you how to make a sound investment, as well as provide a place for your family to call home!

http://www.liveinraleighmidtown.com/