Raleigh Real Estate Podcast with Chris Gorman

Here’s why our partnership with Homeward is big news for buyers. The No. 1 problem in real estate right now is that many folks want to move but need the equity out of their current home to buy their next one. Furthermore, they don’t want to put their current home on the market without first knowing where they’re going. This is doubtless a tricky situation, but thankfully, we’ve been working on a practical solution.  In a fast-paced, low-inventory market like ours, the best way to buy your next house is with somebody else’s money. Sound too good to be true? Hear us out:  We’ve partnered with an exceptional company called Homeward. You can send in an application for review via their site. If you’re approved, they’ll actually give you the cash you need to buy your next house. That makes you a non-contingent cash buyer in the market, which is a powerful position to be in.  “Don’t rush into your next home; leverage Homeward’s resources to make the right purchase.” Using Homeward’s cash, you can buy the home you want, move into it, and then put your old house up for sale. When you finally get your equity out so that you can get a mortgage, you just buy it back from them. Of course, they do charge a fee for that—that’s how they’re able to be in business. More often than not, though, that fee is far outweighed by the convenience of being able to shop without severe restraints. Don’t rush into your next home; leverage Homeward’s resources to make the right purchase.  This is a great tool to have in our tool belt. This seller’s market can be brutal; we want to share this game-changing information with as many burnt-out buyers as possible in the hope that they finally feel empowered. If you or someone you know is either knee-deep in the home-buying process or soon to get started, please reach out to us today. We’d love to hear more about their specific needs and help them craft an actionable plan that gets them into a home they can feel proud of.

Here's what I predict for our real estate market in 2021. What can we expect from the Triangle area real estate market in 2021? 2020 was an interesting year, to say the least. Lots of industries were decimated, but real estate wasn’t one of them. We saw some extraordinary things happen. Listing inventory, for example, dropped by 50% compared to 2019, which created a huge supply problem. Exacerbating this problem is what economists are calling The Great American Move. Basically, people are moving from major metropolitan areas in droves searching for greener pastures. Raleigh seems to be one of the largest beneficiaries of this trend.  These factors make now a great time to sell, but a lot of would-be sellers are hesitant about putting their homes on the market because they’re not confident about where to move to next. As I said, it’s a great market for sellers, but conditions are working against you if you’re a buyer.  “I expect more of the same from our 2021 market.” One thing we’ve been very successful at doing for people in this situation is negotiating rent-back periods. This allows you to sell your house, pay off your mortgage, and then rent that house from the new owner so you have time to shop for a new house. This not only takes the pressure off of you to make a quick decision, but it makes you a non-contingent buyer and allows you to make a stronger offer for your next home. Aside from that, I expect more of the same from our 2021 market. I don’t expect the inventory shortage to get any better, and experts are predicting more record prices with no end in sight. As I said, it’s a great time to sell, and a lot of homeowners have had the better part of a year to decide whether their home is too small or crowded to continue living in it.  If you count yourself in that category or would like to discuss the pros and cons of dipping your toe in the market, don’t hesitate to call or email me anytime. I’d love to speak with you.

The COVID-19 lockdown has turned us into an even stronger seller’s market. In the past couple of weeks, my team and I listed a couple of homes that were, in my estimation, slightly overpriced and had several other inherent issues. I expected these homes to take a while to sell and possibly require a price reduction or two.  However, one of them sold in just a day, and the other sold in a week—both of them at or above asking price. This was proof that what we expected to happen to our market is happening.  Before COVID-19 hit, our market had an inventory imbalance: There were too many buyers and not enough available homes. Now, that situation has been exacerbated. People are even more hesitant to list their homes, but buyers still want to buy. The bottom line is, I believe this is the best time in recent memory to put your home on the market.  Granted, the fact that a home’s market value will likely far exceed its appraised value may cause appraisal issues for some sellers on the back end of their transactions, but homeowners  are getting insane offers right now and the price escalation is heavy.  “People are even more hesitant to list their homes, but buyers still want to buy.” On the flip side, the market you sell in is the market you buy in too, so you need to be ready for the challenges of being a buyer. It’s uncommon to sell for top dollar and buy at a discount in the very same market. The good news is, interest rates are very low—as low as 3.1% in some cases, which is basically free money. You may have to overpay for a house, but you’ll be able to borrow money at a cheaper rate. If the market continues on like this, the house you’re thinking of buying now will be even more expensive in a month or two, and competition among other buyers will be just as fierce. There’s no benefit to waiting to buy after you sell. I don’t foresee the market turning around any time soon, even if we do enter a recession.  So if you are thinking of selling, give me a call and I’d be happy to provide you with a market analysis and let you know what your home will sell for. If you have any other real estate needs, feel free to reach out to me as well. I’m here to help.

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I’ve got some important information to share today with those of you who have been curious about when an economic recovery might happen. The first thing they’re expecting is a “v” shaped recovery, which means that because we saw a rapid and quick decline, we’ll see a sharp and quick rebound. Compared to other recessions we’ve had in the past, it has taken much longer to recover. Another thing you should know is that our unemployment rate will drop significantly in just the next year.

If you’re looking for ways to cut your monthly expenses, here are a couple of quick tips that will help: 1. Look at your home and auto insurance. About a month ago, my company started a joint venture with HUB International, the largest private insurance company in North America. I had them quote my home and auto insurance, and now they’re saving me about $1,000 per year. You can do the same thing, so just give me a call and I’ll refer you to our insurance representative. 2. Look at your mortgage. The Federal Reserve recently cut interest rates, and while this only distantly affects mortgage rates, they’re still low as well—as low as 3% or 4%. I refinanced my mortgage recently and now save a couple hundred dollars per month. Again, if this is something you’re interested in, give me a call and I’d be happy to get you in touch with a certified professional.  “A lot of people are watching the stock market and thinking the real estate market is following the same trajectory, but it’s not.” Now, what’s the latest news from our market? I’ll say this: The world is not coming to an end. The real estate market is holding steady. New listings are coming onto the market and new sales are happening every day. A lot of people are watching the stock market and thinking the real estate market is following the same trajectory, but it’s not.  The bottom line is, there’s no need to panic. In fact, now’s a great opportunity to enter the real estate market. A lot of investors whose cash and equity are taking a hit are needing to liquidate some of their assets, so now’s the time to shop for investment properties.  In any case, we’re taking every precaution to make sure everyone stays safe and healthy. I encourage you to take this time to take care of yourself and your family. We’ll get through this together.  If you have questions about any of today’s topics, call me on my cell at (919) 645-7212. I’m here to help.

Should you invest the time and money necessary to make your home move-in ready before you sell? Here’s what I think. If you have a home to sell and it needs updates, is it better to do the updates before you hit the market or should you offer some kind of allowance or discount to buyers instead? Here’s my opinion. When you’re selling a house that needs updates, it’s always better to make those updates before you hit the market. For starters, it gives buyers that move-in ready feel. “You can get a really nice return on your investment in this market.” Another thing to think about is a lot of buyers don’t have the creativity to look past the changes that need to be made to a home. It takes a special person to want to take that work on. It’s the same reason that builders don’t leave spec homes unfinished.  When you do make renovations or improvements, it’s important to choose styles and features that appeal to the highest number of buyers. If you don’t have the money to put into these renovations, we offer a special program for sellers who are in the same position. We can help you do the work, bring your home’s value up, and get a nice return for an investment that you really aren’t even making in the first place.  Ultimately, this is how you will get top dollar for your home. If you have questions about this program or about anything else related to real estate, feel free to reach out via phone or email today. I look forward to hearing from you.

As we head toward a new decade, I wanted to talk to you about a few things that you can expect from the real estate market in 2020. The new year is almost here, but what’s 2020 going to look like for our real estate market? First, we can use history to predict what will happen in the future. From December 2018 to January 2019, we saw a 42% increase in new listings. That’s not surprising, because people tend to wait until after the holidays to list their homes. This means that the typical balance of supply and demand starts to balance out a bit. Therefore, appreciation and sale prices might not be as high for those first few months of the year.  As the year goes on, we should see some more appreciation and higher prices. This will encourage more sellers to get into the market, which will flatten prices and appreciation again. That’s why timing is so important if you’re thinking of buying or selling this year. “We’re pretty insulated from a recession here in Raleigh.” We know a recession is coming, but we don’t know when. How might a 2020 recession impact the Raleigh real estate market? Redfin recently did a study of 50 metropolitan areas and had Raleigh as the 5th-lowest city in terms of how much the recession would affect us. This means we’re pretty insulated.  The more a city is dependent on global trade, the harder it would be hit by a recession. Our market isn’t very dependent on global trade, as you can see. What’s interesting is that Charlotte is the 10th-highest on the scale in their study, which suggests they might be impacted a bit more. If you have any questions about my predictions or about buying or selling a home in 2020, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon. Teaser: Since 2019 is drawing to a close, today, I want to take a look forward to 2020. A lot of people have been asking me what they can expect from the real estate market, so I’m going to offer up some of my predictions. Based on the numbers from December 2018 to January 2019, we should see a significant uptick in inventory come January 1. How will that, along with a possible recession, affect our market? To find out, watch my latest video.

  Whether or not you have to sell during the holidays, here are a few things to consider when it comes to selling during this season: 1. There are more serious buyers in the market. With everything else that they could be doing around this time of the year, people who shop for homes in November and December aren’t just looking for fun. They’re buying because they need to buy a home. 2. Don’t go overboard with your decorations. It’s fine to decorate for the holidays, but keep them classy. Everyone has different preferences, religions, and tastes. If your home should remain on the market past the holidays, be sure to take those decorations down and have your home photography redone; you don’t want to age your listing by having Christmas photos up in the spring! “Many people are sensitive to smells, and the wrong scent could turn them off to your home.”  3. Be careful with smells. The holidays are a good excuse to make the most of seasonal scents, but like with decorations, be careful not to go overboard. I recommend going with a neutral scent or else baking cookies—that’s always a winner. Many people are sensitive to smells, and the wrong scent could turn them off to your home. 4. Have your home ready to sell. Since there will be a huge influx of listings coming to the market in January, you’ll want to get your home ready to sell as soon as possible. This means that you should stage and photograph the property. If you can get your listing photos taken before you decorate for the holidays, all you’ll have to do is press ‘go’ when you’re ready to list. It’s ideal if you’re one of the first homes to hit the market, since other sellers will be crawling out of the woodwork. If you’re thinking of buying or selling a home or you have any real estate question at all, please reach out to me. I’d love to help you.

Matt Valentine from Cornerstone Lending is here today to help me answer a few key questions about lending and mortgages that will help consumers in the real estate market make better, more informed decisions about their transactions in 2019. For your convenience, I have provided timestamps below so you can navigate our conversation in the video above at your leisure: 0:44—What are the pros and cons of working with an online lender versus a traditional lender? 3:00—Besides interest rates, what is the most important thing to consider when picking a mortgage broker? 4:00—What does an underwriter do? 5:15—What’s going to happen to interest rates within the next year? Hopefully you found this information valuable for your 2019 real estate goals. If you have any follow-up questions or questions about real estate in general, feel free to reach out to me. I’d love to help.

I’m a proud cord cutter, and I’m here to tell you my story today. Let me preface this by saying that I hate DirecTV. We cancelled our subscription last year and haven’t looked back since. In the end, it was too expensive, they were too hard to contact, etc. They make it impossible for you to do anything and it’s just a racket. Aside from the ethical reasons of switching away from as service like this, cutting the cord offers you flexibility. “We finally settled on YouTube TV.” Although you will still have to pay for internet, there are plenty of ways to get TV without paying cable bills. We’ve tried Sling, Hulu, Fubo, and have finally settled on YouTube TV. It allows us to get all of our local channels, all of our local sports, comes with unlimited DVR storage, and more. With YouTube TV, we’re only paying around $40 per month vs. paying over $200 per month with DirecTV. It also allows us to watch on our tablets, phones, and more. In addition, we also have Netflix and Amazon Prime for more entertainment options. With those three services combined, we pay about $50 per month and don’t have to pay the high cable prices that we had been for years. I imagine that as 2019 continues, more and more people will take this route. If these cable companies don’t change their model, there’s no doubt that they’ll be out of business soon. Although this topic wasn’t really about real estate, know that you can always reach out to me with any of your real estate-related questions or needs. I would love to hear from you.

Another year has come and gone, so today let’s take a look at what early signs are telling us about the direction our 2019 market will take. For one thing, inventory is about to rise. Sellers often take their homes off the market during the later months of the year, and this tends to result in an influx of supply once January rolls around. The number of homes entering the market then generally continues to increase through March—generally the most active month of the year for new listings. “If you’re planning on making a move, you may want to do so soon before the downturn takes effect.” This gives buyers much more choice than they had in previous months. Naturally, this means sellers can expect more competition if they choose to list this spring. But don’t let this dissuade you from selling. The influx of buyers helps to offset this effect.  In general, 2019 is likely to be a year of cooling for our market. Appreciation rates decreased by approximately 2% last year, and with prices currently at an all-time high, this trend is projected to continue this year. This prediction is also supported by rising interest rates—which rose three times in 2018 and are expected to go up three more times again this year.  There’s no doubt that our market has peaked. So if you’re planning on making a move, you may want to do so soon before the downturn takes effect.  If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Guaranteed offer companies are becoming more and more popular these days.  You’ve probably heard them advertised on television. But there’s actually a dark truth behind their claims of a hassle-free deal, and today I’m going to blow the whistle on what these companies don’t tell you.  These companies make it seem like the normal selling process is majorly inconvenient, but this isn’t true. In fact, if you work with an experienced agent you’ll almost certainly earn a higher level of success through a traditional selling experience than by working with one of these guaranteed offer companies.  To illustrate this, I recently ran an analysis on the results you might achieve from selling to one of the most popular guaranteed offer companies Opendoor versus what you could expect from a normal listing experience.  “Is the supposed convenience of working with these guaranteed offer companies really worth leaving nearly $10,000 on the table?” For this analysis, I took six months’ worth of local sales from our market and ran the numbers to find out exactly how these two selling options stack up against one another. Of course, I also accounted for Opendoor’s fee—an expense they fail to mention in their advertisements. The bottom line is this: In comparing the actual sold price of the 92 homes that closed in the six-month period I examined during this analysis to the price those same homes would have been sold for to Opendoor, sellers opting into the guaranteed offer route would have been left with $9,384 less in their pocket by the end of the deal.  So, is the supposed convenience of working with these guaranteed offer companies really worth leaving nearly $10,000 on the table? I don’t think so.  If you truly want a convenient, profitable deal, your best option is to partner with an experienced, knowledgeable Realtor to sell your home on the open market.  As always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

In the real estate industry, appraisers are like historians, while agents are more like fortune tellers. Why do I say this? Well, appraisers establish value based on what’s happened in the past. Agents, on the other hand,  tend to examine market trends and make guesses about what may happen in the future. And today, I’m going to share some of my own predictions with all of you. Before that, I’d like to point out what’s been going on in our market up to this point. Prices have been on the rise for a couple of years now. Meanwhile, the level of available supply is shrinking. When these factors combine, it creates an interesting impact on the overall market.  Because these two conditions vary by price point, some buyers may choose to reposition their search by looking within more expensive brackets, since higher price points tend to have higher levels of inventory. “With as long as prices have been trending upward, it only makes sense that they’ll soon have to come back down.” For as long as prices have been trending upward, it only makes sense that they’ll soon have to come back down. If you’re putting off listing in an attempt to ride out rising prices a little longer, you may want to reconsider. There’s no telling how much longer this upward trend can continue. Pressure is being put on our market, and buyers are no longer paying as much over asking price as was once the case. In other words, now may be the time to sell your home and take advantage of current conditions while they last. Buyers are getting tired of multiple offer situations, so don’t delay if you hope to earn top dollar. If you have any other questions, would like more information, or would like help realizing your real estate goals, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Over the course of the last month in the Triangle area real estate market, a few important changes have taken place. First, closed sales are down 3.5% and listings are down 4.2%, but the median price is up by about 6%.  These statistics reflect the basic principle of supply and demand. Inventory has dipped, so demand (and therefore price) has risen. Currently, there are just 2.5 months’ worth of supply in our area, which means that if no new properties were listed in that time, we would run out of available homes.  Still, these statistics reflect our area as a whole. When you examine market trends, you should always do so with the understanding that overall figures may not apply to your specific market. In Wake Forest, for example, the median sales price is $350,000. This is much higher than the $275,000 median sales price recorded across the larger Triangle Area MLS.  This may initially sound like good news for sellers in Wake Forest, but higher prices generally translate to fewer interested buyers. As evidenced by five months’ worth of supply in Wake Forest, which is twice as much as the recorded statistic for the broader Triangle area, higher prices often lead to higher levels of inventory.  “Headlines you see regarding statistics from our overall market may not reflect what’s going on in your area.” Another important note to consider regarding the Wake Forest market is that new construction properties make up about 52% of that market’s current pending sales. Additionally, new construction properties in Wake Forest have an average price point of $431,000. This is approximately $90,000 more than the average price of resale properties in that market. That said, lower price points in Wake Forest are experiencing much lower levels of supply. For example, there is just one month’s worth of inventory for homes in Wake Forest priced at and below $200,000. The bottom line is this: Headlines you see regarding statistics from our overall market may not reflect what’s going on in your area. To be successful in your buying and selling goals, you will need to speak with an agent about trends and conditions in your specific market. Working with an agent will also be the best way to ensure that your listing, or your offer, stands out. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

You have probably heard the rumors that Amazon’s HQ-2 could potentially come to Raleigh. But, if this is true, what impact could this have on our market? Well, it is important to first realize that no final decision has been made just yet. However, Raleigh is a strong contender. As for how it will impact our market, we can expect a dramatic influence. Amazon’s HQ-2 will bring 50,000 jobs to whichever location is chosen, so this would obviously be fantastic for our city.  But how likely is it that we will be chosen? Well, ATTOM Data Solutions, which ranks cities based on factors like crime rates, property taxes, and more, has placed Raleigh as No. 1. And based on my own research, there are essentially four main reasons why we topped that list. “Amazon’s HQ-2 will bring 50,000 jobs to whichever location is chosen, so this would obviously be fantastic for our city.” Our talented labor pool. According to Zillow, Amazon would draw about 40% of their 50,000 jobs from the existing labor pool in our market. In other words, a huge number of jobs would be created for people who already live here. To put it into context, 50,000 jobs is about as many as currently exist for RTP, and that figure is spread over 200 companies in this instance.  Affordable real estate. It may not feel this way to those living here, but housing is still very affordable here compared to other cities. Rent rates would likely be the first statistic to rise if they did move here, though. This would put even more pressure on the limited supply we have in our market. So if you are thinking of investing in real estate, now may be the time to do so before rates are pushed up.  Tax benefits.  Crime rates. Atlanta is listed as the second-most-likely city for Amazon’s HQ-2 to move to, but their crime rates are three times higher than ours. So this certainly bodes well for Raleigh. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Fraud scams are common in real estate. Today I want to discuss three of the most popular scams that you might encounter in the business. 1. Wiring instructions. In a real estate transaction, purchases usually involve the wiring of money from one account to another. At some point, you’re going to receive wiring instructions, most likely from the closing attorney, asking you to wire your down payment or closing funds to their accounts. Most of the time, this is fine. However, there are people out there that are trying to fake this information so that you wire your funds to their account and the attorney will never see it. You’re money is gone; there’s no way to get it back. They’ll send you an email disguised as though it’s coming from your attorney and agent, asking you to wire your funds to an account. They provide instructions that don’t link back to a safe account, and when you execute that wire, they take off with the money. To avoid falling prey to this type of scam, be wary of any suspicious emails. Never deliver any secure or sensitive information like your bank account or social security number via unencrypted email. It’s always best to do that either over the phone or in person. If it’s necessary to do it by email, make sure that it’s encrypted. Most real estate attorneys are using that type of service to protect your information from being fished out of the internet. “Don’t clink on suspicious links or deliver sensitive information electronically.” 2. Fake listings for the sale or renting of your home. This one is kind of strange. People will create a listing for your home to either sell or rent. They’ll post it on a site like Zillow, Trulia, or Craigslist. Craigslist is particularly popular, since the site lacks security. Unsuspecting buyers and tenants will fall for it—the price on it is usually too good to be true—and send money for deposits to lock that property up. All this is happening without you knowing it. To avoid this, you can use the Google Alerts tool. You can set one up for your home address and whatever other property you own, and whenever someone posts something on the internet containing that information, you’ll receive an email. You’ll be able to know immediately what is being posted and where. 3. Two-step verification scam.  This is where someone sends you an email asking you to click on a link to reset some account information like a password. Then it will tell you to text a number to get a code. By doing this, you’re giving them access to your phone and all your contacts. The bottom line is to look out for things that don’t seem to add up. To be certain about something, pick up the phone and call your real estate agent or attorney to confirm. Don’t click on suspicious links or deliver sensitive information electronically. If you have any questions about real estate frauds or other topics, please feel free to reach out to me. I’d be glad to provide you with whatever information I can.

There are a lot of things you can do to your home that won’t bring a high return. These include things like backyard patios, upgraded hardwood floors, pools, and more. By all means, spend money on these features for your own personal enjoyment, but just don’t expect to see a big return. Today I want to tell you the three areas of home improvement that bring the most bang for your buck when it comes time to sell. 1. Update your kitchen and bathrooms. Updating both or either of these rooms will bring you high returns. Still, it’s good to pay attention to current trends to maximize this investment. Right now, for example, navy blue cabinets, stainless steel appliances, and white quartz cabinets are all in. I recommend looking at interior design magazines to get ideas. But, be careful to make sure that the rooms still look cohesive with the rest of the home. “Make sure all updates you make still look cohesive with the rest of your home.” 2. Add square footage through finishing unfinished spaces. If you can, finishing basements or attics can add a lot of value to your home sale. However, make sure all proper permits are pulled before taking any of these projects on. Also, stick to finishes that match the quality found throughout the rest of the home. 3. Consider a new roof and HVAC units. If either of these features is old, replacing them can bring a lot of value to your property when it comes time to list. These are both things an appraiser will definitely give value to. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

With the spring market approaching, many people are looking to sell their homes. Today, I’ll go over four things you can do now to prepare your house for a quick sale when you do put it on the market. 1. Focus on making your house picture-perfect. These days, 95% of homebuyers start their search online. They are clicking through pictures and trying to decide whether or not they actually want to come out and see the house in person. Before you take your listing photos, make sure that you declutter, depersonalize, and make spaces look open, neutral, and move-in ready. In our market, there’s a good amount of new construction, so there’s a good chance that your prospective buyers are also out looking at model homes. These builders spent a lot of money on staging and preparing those model homes, and that’s the bar we have to hit. We have a professional stager on our staff who will come in and consult with you. The stager will give you advice room by room. There are specific things they can do to prepare the house for a quick sale by looking at the house through the eyes of the buyer. If you want to get started now, focus on getting your house picture-ready so that you have less to do when you actually list your house. “Your property is competing with model homes, so it needs to look picture-perfect.” 2. Start packing. In the process of decluttering, you’ll have to put a lot of things away. Right now, the average days on market is 54. That’s under two months, so that’s pretty quick. In certain parts of the market, homes can sell a lot faster than that. Some homes even sell within a couple days. The more packing you do now, the less you will have to do later. Organize things into boxes and store them in the garage or attic. You can also rent a storage unit if need be so you don’t have to pack things in a hurry when you do sell. 3. Pay attention to curb appeal.Curb appeal is so important. When a buyer does look through your pictures online, there is a good chance that the next they’ll do is drive through the neighborhood and look at your house. Make sure that you trim the bushes, get rid of dead hedges, and plant some flowers. All of those things will make someone want to actually check out the inside of your house. When a buyer comes to a showing, they will spend some time on the front porch while the agent is messing with the lockbox, so stand on your front porch and pay attention to the details. Could your front door use a fresh coat of paint? Are there any cobwebs? Get any unnecessary items off the front porch. Power-washing might be a good idea as well. 4. Try to create an outdoor living area in your backyard. If you don’t already have one, it may be a good idea to invest in an umbrella table. Get some patio chairs and an affordable, portable fire pit. In North Carolina, people spend a lot of time outdoors, so the backyard is going to be a big part of their decision. Create an environment that’s more than just a yard and buyers will be more interested in your house. We can help guide you through that process. According to the National Association of Realtors, the top 10 days to list your home are in April, May, and June. If you are looking to sell your home, now is the time to start getting ready. If you have any questions about selling your home this spring, just give me a call or send me an email. I would be happy to help you!

Today, I’m going to be giving you the two best questions that you can ask a real estate agent while interviewing them to help you sell your home. Real estate agents in the business often make promises to their clients that aren’t always met. These questions will give you an indication of how well they’re going to be able to help you sell. Ask them about their average days on market over the last 12 months. That will tell you, on average, how fast they’re listing, which will also tell you how quickly they’ll be able to sell your house. What is their list-price-to-sales-price ratio? Essentially, how close to the seller’s list price to do their homes actually sell for? However, this doesn’t always give you an indication of how close their sales prices was to the original list price. Agents sometimes make promises about price during the listing presentation that are unrealistic, so they have to reduce the price to get it to sell. Usually, that will extend how long the house is on the market, since reduced price listings take longer to sell “These questions will give you an indication of how well they’re going to be able to help you sell.” In addition to those two things, you might also consider asking if they work by themselves or if they’re a part of a team. An individual agent has to do everything by themselves, and there are a lot of moving parts to a real estate transaction. They’ll be overworked, and it will inevitably affect their availability, response time, and management of the transaction. Having a support staff takes a lot off an agent’s plate and allows them to focus on what they do best: buying and selling homes and staying up-to-date on the market. If you have any questions or are looking to buy or sell a home, feel free to reach out to me.

Today I want to give you a few of my predictions about the Triangle real estate market, in addition to some striking stats from 2017. Looking ahead at 2018, I can say for sure that inventory will be super tight. We’ve already seen that the demand for homes vastly outweighs the supply. When you compare December of 2017 to the same month in 2016, inventory was down 5%. Now, when you compare 2017 to 2013 in terms of the number of listings, inventory fell 57%. This is mindblowing when you think about all the growth that has happened over the past four years. That’s likely why we see apartment complexes being built left and right as you drive through downtown Raleigh. The new year started off with a bang. As of today, 53% of all homes listed in December of 2017 are either closed or under contract, according to the MLS. “The new year started off with a bang” This leads me to my next prediction: Price will continue to rise in 2018. In December of last year, the average listing prices was over $300,000 for the first time ever. This is great for sellers, but maybe not so much for buyers. However, if you plan to stay in your home for a very long time, this could be a good thing for you, too. Interest rates are still low, so you can at least take advantage of that before they go up. And that’s something else we should expect from 2018, as well. since the economy is doing so well, the Fed has every reason to raise rates, which are expected to go up to 5% this year. This means that it will become more expensive to borrow money.The home that might cost you $300,000 today will, by the end of the year, cost $315,320. The money that you borrow will cost more as well, so there’s no time like the present. The fact is that the market cycles every seven years or so. The last peak was in 2007, so we are about four years overdue, statistically speaking. If you have any questions or need help with your real estate ventures, please reach out to us. We would appreciate the opportunity to help you out this year.

Something occurred to me recently: Sometimes, our success is driven by the size of our “why.”We all have our reasons for getting out of bed in the morning. Some of us wake up feeling full of energy and ready to start the day, while others may hit the snooze button a few times before dragging themselves to work. So, where does this difference come from? Does it depend on what we’re doing? Or, does it depend more on why we’re doing it? Everyone knows what they do and how they do it, but very few of us seem to understand why we do things. To help show the power of “knowing your why,” I’d like to share a few examples of this idea in action. On September 11, 2001, the World Trade Center was attacked. That year, the New York Yankees went to the World Series. You may be wondering how these are connected, but let me explain. While the Yankees did not win, their run marked a turning point for the healing of the country. Those who were brought together by the tragedy rallied around the Yankees as a symbol of the city and the country. “Perhaps each of these teams were fighting for something greater—perhaps these teams were fighting for their ‘why.’” In 2005, Hurricane Katrina hit New Orleans. That year, the New Orleans Saints were displaced for a season. They couldn’t practice or play in the Superdome. But in 2006, the Saints ended up having their most successful year in team history. The culmination of their “why” didn’t come until 2010, when they won the Super Bowl. Any football fan will remember how the country rallied behind them that year. Following the Boston Marathon Bombing in 2013, #BostonStrong became a popular hashtag and phrase around the country, and especially in the city itself. That year, the Red Sox won the World Series. Most recently, Hurricane Harvey struck. Nevertheless, the Houston Astros won the World Series. All of this may be coincidental, but maybe it’s not. Perhaps each of these teams were fighting for something greater—perhaps these teams were fighting for their “why.” A great way to learn more about this idea is to read a great book on the subject. That book is “Start With Why” by Simon Sinek. I highly recommend giving it a read. It can really help you to give a new purpose to your business and life. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

There are three things you should avoid when buying a home. These three things can also make a home harder to sell. Today, the things I’m going to share with you all have to do with features of a home you cannot change. In any real estate transaction, it’s critical to consider any unsavory features that can’t be changed. Steep driveway. A big slope up or down will be a big turnoff for buyers. Homes with steep driveways do sell, but generally for less than properties with flat driveways. High-voltage powerlines. If your property backs up to high-voltage power lines, you’re going to have a lot of trouble selling. People simply prefer not to live near power lines.“In any real estate transaction, it’s critical to consider any unsavory features that can’t be changed.” Highways or airports. Any home that is near a busy highway or airport will be surrounded by a lot of extra noise. Many buyers aren’t going to want to deal with this, and sellers will have a hard time listing these kinds of properties. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Today I want to tell you about the three top benefits of selling in the fall. I’m sure you’ve heard the conventional wisdom that spring is the best time to sell a home. The reason people believe this is because that time of year is when we see the highest number of listings and buyers. But as long as the levels of buyers and sellers in the market remains even, those benefits are sort of nullified. The fact of the matter is, the fall can be a great time to sell. Let’s go over some reasons why. “The fall can be a great time to sell.” There is less competition for sellers. Fewer listings on the market mean your own home is going to stand out to the many buyers that are still out there looking. Buyers in the market are more motivated. People who are moving in the fall and winter are doing so because they have to. You can be sure that the people who are looking at your listing aren’t just doing so for fun. The process goes quicker. Because fewer transactions take place at this time of year, the contractors who will assist you in the process are less busy in general. This means that they will be afforded more flexibility. In turn, you’ll be able to have a faster transaction due to their lighter workload. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

In real estate, we have negotiations throughout the course of the transaction. Whether you are buying or selling, there are four things I recommend you keep in mind to move us through negotiations: 1. Know your expected and desired outcomes.You should also determine what your acceptable outcomes will be. Usually, there is an ideal outcome and an acceptable one. Most of the time, a successful negotiation lands somewhere in between the two. It’s important to know what your acceptable and ideal outcomes are up front in order to set yourself up for success. When you determine your acceptable and ideal outcomes, keep in mind that there are many different factors that will come into play. For example, if you are selling a house, don’t just look at your acceptable price and ideal price. Consider market factors, why you want to move, and the opportunity cost of not selling your home. In other words, what do you hope to gain by selling? All of these factors will determine which outcome you achieve. 2. Know your leverage or lack thereof. Know who holds the cards during the negotiation. Knowing where you stand will help you make better decisions and have a more fruitful conversation during the negotiation process. It’s your Realtor’s job to help you know who holds the cards. Of course, that depends on whether you are buying or selling, market conditions, days on market, and a number of other factors. Still, knowing where you stand will help set expectations and guide the conversation in a more productive manner. “If one party walks away from the conversation, the negotiation starts to die.” 3. Keep the conversation going. Negotiations die when the conversation ends. As long as we continue to talk and work toward an acceptable outcome for both parties, we try to get a win-win for both parties. As long as both parties are still engaged and working toward that, then we have a live negotiation. When one person backs off, that’s when things start to die, so make sure to keep both parties at the table. 4. Be flexible. It’s human nature to want to dig our heels in and say, “That’s it, I’ve given an inch. I’m not giving any more.” When this happens, you’ve lost sight of your acceptable and ideal outcomes. Being flexible is more about the way you feel than the business side of the transaction. Digging your heels in is never good. You will aggravate the other party, the conversation will end, and you’ll be left with a dead negotiation. Being flexible allows you to give the other party what they think they want. Every party wants to get something. Sometimes giving a little bit makes the other person feel a lot better. They feel like they won something, and that is what drives you through to closing. If you dig your heels in, that could lead to other problems during the negotiation process. If you use these four tactics, you will have a successful negotiation and make it to the closing table. If you have any other questions about negotiations or buying or selling a home, just give me a call or send me an email. I would be happy to help you!

Today I’m excited to be joined by Janae Papazian, our lead buyer specialist, to talk about how to find and purchase off-market properties. Off-market properties are a great and often untapped opportunity. Janae has personally helped people find their home in this way. When a home isn’t on the MLS, she says, the only real challenge is to go out and search for homes by calling around or knocking on doors. However, while finding an off-market home might take a little more effort to find, these kinds of listings simply don’t have the same amount of competition. Especially in a seller’s market like ours, less competition is ideal. Since multiple offer situations are extremely common among most other listings out there, off-market listings are like a secret resource for those willing to put in the effort to find them. Additionally, off-market listings carry the potential of being better deals. People who have restricted their home search to simply looking on websites like Zillow or Trulia are actually doing themselves a disservice—they’re missing out on a lot of great listings that take a little extra care to discover. Zillow, especially, is often very delayed. Many homes that buyers find through this website may actually have already sold. This can be incredibly frustrating. “Off-market properties are a great and often untapped opportunity.” This isn’t to say that no home listings on Zillow are valid, though. Janae herself has helped people to find their home through the website. However, this is just one of the many ways she has been able to help people. When it comes to off-market properties, Janae has experience with helping clients through the unique circumstances they carry. For one thing, these kinds of listings mean that you as a buyer will be in more direct communication with the seller, as opposed to an agent. Sometimes, this can lead to people taking things a little too personally. Sellers also sometimes may have unrealistic expectations about their home’s worth. In circumstances like these, Janae’s goal is to help get you into the home for the best deal possible. To achieve this, she counsels both sides as the deal is worked out. In a seller’s market, off-market properties are a great resource. Having a buyer representative who is willing to go the extra mile is key. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon. 

When you list your property as For Sale By Owner (FSBO), you actually end up losing more money than you would pay an agent in commission. The National Association of Realtors says that FSBO properties sell for 8% less than homes listed with a professional agent. There are four main reasons why FSBO properties lose money: 1. Marketing. Marketing and presentation are key to getting top dollar for your home. A professional real estate agent will have the people, the expertise, and the resources to present your home in the best light to the widest audience of qualified buyers, which ultimately yields a higher sales price. 2. Conflict. There are buyers in the market looking for a home without an agent. These buyers and FSBO sellers both expect to save money on the agent’s commission but, unfortunately, both parties cannot save money. Ultimately, the seller ends up taking less money for their house because buyers without agents make up a small percentage of buyers on the market. Plus, unrepresented buyers target FSBO properties because they think they will get a better deal. A serious, educated buyer will have an agent because they know working with an agent is the best way to get access to the most homes on the market. Those buyers will know whether a FSBO property is overpriced or not. 3. People pay more when a salesperson is involved. For example, when you go on Craigslist, you expect to pay less for an item than you would in a store. Most of us wouldn’t buy a diamond ring from someone off the street. We’ll go into a store and pay retail value for the quality and integrity of the product. When a salesperson is involved, buyers trust that the item they are purchasing is of good quality, so they are more willing to pay a higher price than they would if they were buying something directly from its owner. The same holds true for buying homes. When an agent is involved, buyers are okay with paying more because they trust that the transaction is in good hands. “From a numbers standpoint, it simply makes more sense to hire a professional agent.” 4. Negotiations. FSBO owners may be able to obtain an offer, especially in a seller’s market. However, FSBO sellers are not marketing to the widest audience, so you are not going to get the highest offer or the best sales price that you can. Plus, once you get an offer, you have to actually make it to the closing table. I’ve seen a number of FSBO deals go under contract for $25,000 or even $30,000 less than market value only for the deal to fall apart. Most of these deals dissolve over repair items. Neither party knows what to look for and no one is being coached to negotiate towards the middle, so both sides dig their heels in and the deal falls apart. It doesn’t matter what the contract says your sales price is if you can’t close. These four factors produce that 8% sales deficit between FSBO properties and properties represented by a professional real estate agent. If you think you should skip the agent to save 3% or 4% on commission, keep in mind that you will end up losing twice that amount. From a numbers standpoint, it simply makes more sense to hire a professional agent. If you have any questions about selling your home in today’s market, just give me a call or send me an email. I would be happy to help you!

We hear a lot about the market, especially in my line of work, but today I wanted to explain to you how the market actually works. To tell the truth, the real estate market is a free market like any other market.Take the stock market, for example. Let’s say you bought stock with Apple for $100 and now, today, that stock has gone up to $500. That $500 is what the market is willing to pay, assuming you want to sell your stock. The inverse is also true. If you buy something for $500 but the market ends up only valuing it at $100, the latter is how much you can expect to earn if you sell. Something is only worth the value it has in relation to the market. In the real estate market, a lot of people are afraid to sell because they tend to forget that the market functions in a way where value isn’t entirely linear. Inflation happens. In the real estate market, money is relative to other currency. If you had a dollar from 100 years ago that stayed at its original worth, it would be worth a lot less than a dollar today. So when considering the value of your current home, its original value or price isn’t nearly as significant as what the market says it’s worth today. The market does not care what you paid for your property. Buyers are looking to get the most for your money. So if you and your neighbor have the exact same house listed for the exact same price, but theirs has granite counter tops and other upgrades, your house simply isn’t worth as much. “The market only cares about what is happening today.” In order to make a buyer interested in your house instead of your neighbors, in this scenario, your house would need to be priced lower. Markets are always working in terms of relativity. Comparisons are everything, just like in any other market. The market only cares about what is happening today. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

It’s no secret that millennials have been waiting longer and longer to buy their first homes. It’s a function of many things like the job market. If you’re a millennial paying rent, it’s time to consider buying a home. Whether you realize it or not, you’re already paying someone’s mortgage. You can call it rent or a housing payment, but either way, that money goes out of your bank account and into someone else’s. When you pay rent, someone else is getting the benefits and equity from that money since you’re paying down their mortgage. Also consider that your landlord, whose mortgage you’re paying, also makes money from market appreciation. Last year, we saw about 6.9% appreciation on average nationwide. For the median-priced house, that equated to about a $25,000 gain in one year just from market appreciation.  “Don’t disqualify yourself just because you don’t think you have enough money for a down payment.” Thirdly, there’s no secret that you want to express yourself by what you wear, what you drive, and where you live. This is difficult to do as a renter because of the restrictions on your ability to customize your place. You can’t change the color of the walls or the exterior of your house or apartment. As a homeowner, it’s all up to you—you can make the home your own if you want. Owning a home also probably isn’t as expensive as you think. In fact, your rent payment is probably comparable to a mortgage payment for a place in the same style, size, and locationthat you currently rent in. Be sure to understand the costs of buying a home because interest rates are still very low and you can buy a house for a mortgage payment that’s very similar to your current rent payment. The big difference is that every time you make a house payment, a portion of it goes back into your pocket instead of down the drain. Finally, don’t disqualify yourself just because you don’t think you have enough money for a down payment. It may be true in some cases, but in many cases, it’s not. We’re still getting buyers into homes with no money down. Very few people buy a home with 20% down anymore. There are various home buying plans that can make your budget work. The current cost of money with interest rates is so cheap that it benefits your 20- or 30-year outlook to lock in a home loan interest rate now while they’re so low. Property is a good investment that you can leverage over time thanks to low interest rates. If you have any other questions about buying your first home, give me a call or send me an email soon. I hope to hear from you soon!

With today’s market conditions, both in real estate and in stocks, there are a lot of people deciding to invest in real estate. I personally think investing in real estate is a wise strategy. However, just like any other investment, you need to make sure the numbers line up with your goals before you decide to pull the trigger. Here are a few things to consider. The first is the current rental rates. You need to know whether they support the purchase price of the home and will lead to long-term equity by holding the property as an investment for at least five to 10 years. In addition to the mortgage costs, you also want to factor in costs such as HOA dues, home insurance, and a 10% to 15% buffer for maintenance costs. If you can cover all these expenses and then some, we are now talking about a property with cash flow. Those are the best kind of properties.  “Properties with cash flow are the best.” The second thing to consider is the rental status of the home. Does it already have a tenant in place? If so, when is their lease up and do you want this particular tenant to renew their lease? These decisions and more need to be made in advance. The third thing is the condition of the property. You don’t want to buy something that you have to dump a bunch of money into right away, unless you have already factored that into your costs. If you have any questions about investment properties or about real estate in general, don’t hesitate to give me a call or send me an email. I would love to hear from you.

When you sell your house, you want to avoid these four big mistakes during the process: Listing as a ‘For Sale By Owner’ seller: People looking to score a deal are the only type of buyers looking at ‘For Sale By Owner’ listings. These people will try to directly contact the seller since they’re not working with a real estate agent which means they’ll save some money on commission. The problem is that the seller is trying to save money in the same way. You can’t both save the same money, so you usually end up selling for less. I believe the national average is actually 8% to 10% less than listing with an agent. Pricing your home wrong: Pricing too high likely means you’ll have to go through price reductions to get to where it should have been all along. You accumulate days on market and show up as a reduced price listing, which encourages buyers to make a lower offer since they’ll see it as a sign of desperation. “Price reductions and a high number of days on the market can make you look desperate.” Using bad photography: The difference between the photos you can take with your phone and those taken by a professional photographer is like night and day. Your home’s photos online and in print are a huge part of your marketing, so they should be of the highest possible quality. Overlooking the exterior: Your home’s curb appeal and landscaping create the first impression on buyers and indicate how well the house has been maintained. Manicured plants and grass show that you loved the whole property and maintained it well. If you have any other questions about how to have a more successful home sale, give us a call or send us an email. We’re always here to help.

As a real estate agent, one of the primary reasons I usually hear when somebody explains why they’re moving to a certain area is they want to make sure they’re in a good school district. If you’re a homebuyer and you’re basing your home’s new location primarily on schools, there are three things you need to consider. First, there are more than just public school options out there. Most of us in Wake County have one full, year-round option and one traditional schedule option that we’re assigned to. The county has such a great charter system that in most places you can have five or six other nearby charter schools you can apply to, not to mention private school options that range in cost from just under $5,000 a year up to $20,000 a year. Figure out all your options and do your research on every school before making a decision. “Don’t base such a huge decision on bits and pieces of information about schools.” Secondly, don’t just base your opinion of a school on how a school rating site rates them. A website like GreatSchools.com is a great resource but it qualifies schools on a scale predicated solely on test scores. We all know there is more to a school than just test scores. In fact, we know that certain schools will just teach for test scores, and that doesn’t reflect how the children are growing and learning beyond academics. Find out extra information like what extracurricular activities the school has and what its culture is like. Third and most importantly, regardless of what the school’s rating system is or how it’s perceived, the relationship your child has with its individual instructors and administrative staff will have the most impact. In other words, your child’s experience may be completely different than what the school’s rating shows. Don’t base a huge decision like selecting where to live solely based on a perception of a certain school or school district. Talk to the people involved, do your research, and talk to your real estate agent to find out what they know about it. If you have any questions about this topic, don’t hesitate to give us a call or shoot us an email. We’d be happy to assist you in any way we can.

When you’re selling your home, you obviously want to get the most money possible out of the sale while minimizing the expenses to get you there. Here are a few simple inexpensive updates you can make to your home to increase its value before selling. First, set the price right at market value, not above or below it. By doing this, you will achieve urgency among buyers. Buyers in today’s market are educated and they know what a good value is when they see it. If you price in line with market value, buyers are more inclined to offer full price and start bidding wars. In terms of investing in your home, there are a few common areas where we encourage most buyers to spend a little money. The biggest thing is paint. If you can only afford to do one thing, it should be paint. A fresh coat goes a long way in terms of sprucing up your home’s appearance. The smell of fresh paint is also a sign to buyers that the home is cared for. “Flooring and paint are the two most obvious areas to improve.” Flooring is the next thing to look at. If you’ve had the same carpet for more than five years, replace it. Floors carry a lot of weight for the buyer in terms of their perception of value. The trick here is that for every dollar you spend, buyers will think you spent three. By replacing things like paint and carpet, you’re investing in a higher sales price. Finally, the kitchen and bathrooms are the only rooms in the house that aren’t just four walls and a ceiling, so buyers pay special attention to them. If your neighbor has a fully updated kitchen and you don’t, you either need to take action to update it or reflect that fact in your list price. If you have any questions for us about what else you can do to increase your home’s value before selling, reach out to us via phone or email today. We would love to hear from you.

What happens if you sell your home and you haven’t found another home to buy? With the market moving as fast as it is today, this is one of the questions I get asked quite often. I understand wanting the security of knowing where you’re moving to next before selling your current home. The problem is, most people can’t qualify for a new mortgage on their next home without selling the one they have. Assuming that’s the case, let’s say you do sell your home and there’s nothing out there that you want to buy. There are a few different options in how you can proceed. The first is through contract negotiations. If you have a house that’s in demand and sells quickly, you can negotiate an extended closing timeline to allow yourself more time to shop for a new home. Most of the time, you’ll be able to find a new one during this period. This is usually the best thing to do because it allows both closings to be lined up on the same day. “We’ve never had a client go homeless.” If you can’t find a home during that extra closing period, another option is temporarily renting an apartment. There are a lot of firms that offer short-term rentals with furnished apartments, so it’s similar to living in a hotel. You would pay a little bit more money, but this option allows you to not have to sign a six-month lease with an apartment complex. Lastly, you can do a rent-back agreement. This is an agreement between you and the buyer that allows you to rent the home and stay in it a little while after closing. I know it’s uncomfortable because you don’t know where you’re going next, but if you want to sell your home, you have to take a leap of faith and put it on the market. In all our years of doing business, we’ve never had someone go homeless. If you have any questions about this topic or are thinking of buying or selling in our market, feel free to give me a call or send us an email. We’d love to help you.

In our market, multiple offer situations are very common. If you just listed your home and you receive three offers at once, how do you know which one is best? There are a few different things to do in this situation. First, we go back to all of the agents and their buyers to confirm that they’ve submitted their highest and best offers. If any of them haven’t, then we give them the opportunity to make any changes to those offers, giving you the opportunity to choose from the best of the best. Of course, price is a major factor in this decision. That said, the offer with the highest price is not always the best one for you. There are other factors to consider. For example, consider which offer matches your timeline the best. Do you need to get out of your current house as soon as possible, or do you need more time to shop for your next home? Another thing to pay attention to when selecting the best offer is the amount of money that the buyer put down. How much earnest money are they offering? How much skin do they have in the game? “A pre-approved buyer is just as strong as a cash buyer.” This is especially important in an urgent market like ours. It is more common for buyers to get cold feet because they feel like they were rushed to make a decision. They get under contract and then, two or three days later, they decide to back out because something doesn’t feel right. The higher the earnest deposit, the more likely the buyer is to go through with the purchase of your home. Financing is another big component to consider. Cash is not always king. A cash buyer can walk away from the deal, too. If a buyer has been pre-approved by a reputable lender, then that offer is just as strong as a cash offer. As your real estate agent, it is our job to make sure that the lender has a reputation of closing loans. We will lay out all of the offers and talk through each one in order to figure out which one works best for you. If you have any other questions, give us a call or send us an email. We would be happy to help you!

Multiple offer situations are very common in our market right now due to low inventory and high demand. Today I’ll go over a few ways you can win a multiple offer situation as a homebuyer. Once you submit an offer, if there are multiple offers on the home, the seller’s agent will come back to ask you for your highest and best offer. This is typically your last chance to make your offer look the best, so there are a few things you should consider. For example, you need to focus on what are you willing to pay for the house not to lose it, rather than getting the best deal. Also, there are a few things that can be done to make an offer look more appealing to the seller other than just offering the most money. For example, making sure you’re pre-approved is huge in this market. If you submit an offer without being pre-approved in a multiple offer situation, there is a good chance your offer won’t get picked. Sellers view offers from pre-approved buyers almost the same way they view all-cash offers, so being pre-approved will give you the leverage you need. You should also consider the seller’s timeline when submitting the offer. Do they need more time to get out of the house, or are they in a hurry? Figuring out what that timeline is and then crafting it into your offer is going to make it look very strong in the eyes of the seller. “Making sure you’re pre-approved is huge in this market.” Skin in the game, or due diligence money, outweighs the price. Due diligence money is also something you can craft into the offer to make it look more appealing. If there are two offers and one offer has $2,000 more for the purchase price, but the other offer has more skin in the game, the offer with more due diligence money will win as it shows the seller that buyer is more invested in the property. On the personal side, writing a personal letter to the seller is always going to make your offer stand out. Tell them what you plan to do with the property. Pulling at their heart strings will get them more on your side. Lastly, have your lender call the seller’s agent. Your lender can give the listing agent peace of mind about your financial situation, and that will go a long way in helping you beat out other offers. If you have any other questions about multiple offer situations, or if you have any other real estate-related questions, please feel free to give me a call or send me an email. I look forward to hearing from you!

What can we expect from the Triangle market in the first quarter of 2017? Whether or not it’s a buyer’s or seller’s market depends on a couple of things—price range and location. From a global standpoint, most people would consider the Triangle market to be a seller’s market due to significantly low inventory. It’s about 10% lower than this time last year and 25% lower than two years ago. Supply is low, and we still have about 65 people moving into the county per day. “Low supply and high demand in the Triangle means prices will rise.” Generally speaking, this low supply and high demand mean prices will rise, but it really depends on area and price. Higher priced homes generally sell a lot slower while lower priced homes such much faster. Interest rates continue to rise, even after the expected bump we saw after the election. The Fed held off on raising rates, so some of that pent-up desire finally came to fruition. The stock market also went up significantly in the last couple months, leading to an increase in consumer confidence, which also allowed rates to rise. We should expect rates to keep increasing in 2017 from where they’re at now at about 4.25% for a 30-year fixed-rate loan. I wouldn’t be surprised to see that go up to 4.5% by year’s end. If you’re a home buyer, prices will keep going up, and so will the cost of money. If you plan on buying in the next few year, you won’t benefit at all by waiting. As a seller in today’s market, now is a great time as well. Everybody wants to buy low and sell high, so you could benefit by selling now while the market is experiencing peak prices. These peaks happen about every seven years in real estate cycles, and the last peak was around 2007. We’re already two years overdue for a market correction. If you sell you house now, will you have a house to go to in this seller’s market? It all depends on what you’re looking for. It’s a great time to be a move-up buyer, meaning you sell at a lower price point and buy at a higher price point. There is a lot of new construction in our market that started at the end of 2016 that will start to come on the market in the first quarter of 2017. The homes will be there. You just need to guidance and expertise of a great agent who can help you through the process. If you have any questions about buying or selling a home or about the Triangle market in general, I’d love to be a resource for you. Give me a call or send me an email and let’s talk soon.