"Where are Prices Headed in 2012?"

This is the catchy headline that a real estate news blog/site, Keeping Current Matters, used in their entry today. Of course, as ANYONE who is a Realtor, or is considering buying or selling in 2012, I was curious and clicked right on through (here's a great picture they used too)!

And I was reminded about the 2 emails I received from fellow agents yesterday - not quite sure why they've put me on their marketing list - with their "January Real Estate Update!"

The catch to both of these sources is that KCM is understandably giving me national opinions....but so were the local Realtors. Their marketing letter came from their national company. Also, it's not January, or even year-end information.  It's only through Novemeber.

Correct me if I'm wrong, but if you lived in the Triangle .... aren't you most interested in these questions and issues LOCALLY? And CURRENT...like this month?

Now, in 2012 I know one of my goals is to figure this whole blogging stuff out - to use pictures, charts and other whizbang material to catch your eye and interest.  Maybe eblast out a "March Real Estate Update!" to my friends, family & clients.

But for now, my next blog post will have to suffice.  Quick preview:

Unlike nationally, where they say the market dropped 3.5% last year, and one outfit proclaims it will drop 12% this year, here's the summary locally:

Number of homes SOLD: down 1.8%
Average Price/sqft: down 2.7%
Total Average Value Drop since Credit Crisis: 9.2%

Is it cheaper to buy or to rent?

Now, here's that cute house I mentioned earlier this week.

 This house is $106,900. It's in a quiet little neighborhood, you could be in Five Points/HiMount. The houses this size in the neighborhood quickly rent for $900/month. 
If you owned the home as your personal residence, it wouldn't cost you $900 though. It would only be
$715 to own.  Plus holding some reserve for repairs (though the roof is under 2 years old and the HVAC works great) - but it should still be LESS TO OWN THAN RENT.

And this is where we find ourselves in the "great time to buy" spectrum.  We are truly finding homes that often are used as rental property being cheaper to own.  There is no "pride of ownership" or "do what I want" premium.

There's only cold hard cash left in your pocket.  And a 30 year loan at 4%.

I want to buy a Short Sale (or Foreclosure)!!!!

Not exactly what i wanted to kick off 2012 with, in terms of a "Hey, things really ARE looking up for 2012" post, but I did meet with a new potential client last week.  he had called about a really "cute" listing I have in South Raleigh - which I'll share in my next post.

But upon hearing of this home, he wanted to offer 20% less than the asking price.  Pretty soon, our conversation turned to short sales and foreclosures.  And he specifically wanted to concentrate on investment properties as well.

Well, we scheduled a quick meeting last Friday morning, and I got to doing some research.  Here's what I found:

In the US -  1 in 20 short sales actually work before foreclosure.

This means you might put in offers on up to 20 homes before ANY of them, months later, work out. 

In the Triangle – there were only 101 successful short sales below $150,000 in all of 2011. 

Today, there are 130 short sales available – meaning you might expect it to take ONE YEAR to complete the purchase. 

The short sales went for 96% of asking price, and an average of $108,000.

However, there were 1,462 “regular” homes in that price range sold last year.  They sold for an average of $112,000 and 95% of asking price.

There were 445 foreclosures (REO or HUD) sold last year. 

The foreclosures sold for an average of $99,000, which was 95% of asking price.

So, you can buy a habitable home, pre-inspect it, easily get a loan, and pay $112,000 for it. 

Or, you can wait for months, and if you're successful, save $4,000 on a short sale - well, let's think of it as $19 a month. 

Or, you can roll the dice that a foreclosure doesn't have big issues - unforseen issues - and get it for $99,000 and spend the $13K fixing it up.  Of course, in order for this to work, you've got to actually HAVE that $13,000 to make repairs.

ForSalebyOwner.com Founder Uses Agent to Sell Home

In perhaps THE example Realtors everywhere will use for decades to try and help explain why to use a full-service company - like Fonville Morisey - instead of a discount brokerage ...

ForSalebyOwner.com Founder Uses Agent to Sell Home


I am sure the website he operates makes money for him. I'm even sure some folks have been able to FSBO their home successfully, using his website. I'm also just as sure that it's amazing and unheard of that he UNDERPRICED his home by $150K. My experience is that FSBO's typically believe their home is worth MORE than Realtors and the market tell them.
What we do know is that about 87% of homes sell through the services of a Realtor. And of the 13% that don't - about half are sold between family members and friends (I saw that happen this year in Budleigh). So, about 6% of homes eventually sell via the FSBO method - but they historically take longer to sell, sell for a lower price, and require oft-contentious negotiations of repairs & "make-goods" to close because two parties who buy or sell a home 10 times combined in their life thought it was better than hiring a professional who does it every day.

Spring has Sprung and What smells like Fish?

Wow, almost a month, despite one of my resolutions - to update the blog with fun and relevant info more information. 

The time delay I completely "blame" on folks looking at and buying homes, lots of showings, the effects of the Tar Heels playing better basketball (optimism) while the Wolfpack sank to the bottom (lots of free time, hey let's move!).  If you see anybody writing a blog 4 days a week these days, they are just bloggers, and not Realtors.

Then I see the last post I made - as I said -  God Bless that Gopher!  Could you ask for a better "First Day of Daylight Savings Time" than we had today?

While I was out showing house, the strangest thing happened, something I had never realized in 13 years - and 13 springs - of helping folks find homes in the Triangle.  We walked out onto the deck of a home we were giving a second look at to decide whether to buy or not....and it hit me really bad. The unmistakable - and not so pleasant! - smell of the oil after you've fried fish!


But this was the middle of the day - a Sunday, in mid-March.  Then the Buyers said "I think it's that tree!"  I couldn't believe it, but sure enough - the Bradford Pear right there next to the deck, with its billowing white blossoms...smelled like fried fish!  I pulled one off, took a deep whiff, and it was unmistakable.  So, if you find yourself outside in the next two weeks, and wonder where the fish fry is...look for a Bradford Pear first, before rushing off to the local church for a Friday lunch.

By the way, 2 of the 3 homes WE went back for second looks at today also had other folks looking at them again as well.  And I bet both of them are sold by Wednesday!

So, I definitely "learned something new everyday" today!  I hope your weekend, and especially today were as outstanding as mine - and welcome spring and March Madness!

God Bless Punxsutawney Phil!!

I'm getting pretty excited about this "spring" stuff.  Despite a fairly abysmal overall record - I've heard he was less than 40% historically - looks like the groundhog got it right this year.  Looking at the 7-day forecast, there's a lot of spring to be found:

• only 1 day with a forecast below freezing
• a "cold snap" = 55 degrees for the high on Tuesday
• 4 days of 60 degrees or more

and my favorite: 

SUNSET IS AFTER 6 PM NOW!!!



And this also means time to get your garden & lawn ready to go for the growing season.  Here's 4 important steps to take this weekend to jumpstart your lawn & plants:

1. Crabgrass preventer and lawn food.  Don't wait to see crabgrass and other "broadleaf weeds" (ie, the kind we get here in the Triangle).  Get ahead of the game this year with your first application of the year being a preventer and feeder.  Plus, if you're going to do any seeding, you need to wait 5-6 weeks after you've used herbicide to spread new seed. 

2. Fertilize those tender bloom shoots.   I'm dumb enough not to have grown up knowing you can and should fertilize flowers.  But all of those flowers will be healthier and last longer if you apply some plant food, easy to find in your local hardware or garden store.

3. Get your soil tested & amended. 

It's time for me to do this for my yard.


Yet another benefit of living in the seat of state government is access to resources, in this case the Ag Extension office  . Get ahead of the game and do it NOW, or else the wait gets really long.  I've seen test kits in the hardware stores - go to a great place like Logan's and ASK about these tests.


If you're new to the Triangle, our soil usually has a TON of clay and needs lots of lime. Clay also is challenging for the way it holds water. 

4. Prune overgrown shrubs.  Whether you're going to sell your house or not, overgrown shrubs are a big problem.  The general guideline is to keep them 16" off your house, to allow you to access the space, to limit hiding spaces for criminals, but mostly importantly ... because it's terrible for painted surfaces, especially wood for wet limbs and leaves to be in constant contact.  Paint will deteriorate and peel, and either wood or hardboard siding will rot quicker than you can imagine.

While now is NOT the time to be hacking on azaleas (wait until after their blooms are spent), a good look at your shrubs now will show broken/damaged branches, dead branches, and over-leggy areas.  While it may not be scientific, it seems to me that shrubs either grow flowers or limbs - if they're allowed to run loose they spend all their time getting bigger, not prettier.


Once you've done these simple steps, you can talk about tilling, and go BACK to your favorite of our many great garden stores and get some new plants.

Me?  last year I planted and killed a Lorapetalum somehow, despite what i thought was a heroic amount of perma-till and other good stuff in the hole.   I'll see if the fine folks at Logans' downtown have any hints to help a poor lost sould like me.

Top 5 Curb Appeal Quick Changes

There's been a distinct uptick in real estate activity this year, and now I've seen the first harbinger of spring (not just this great warmer weather) ... forsythia blooms!

So, if you're thinking about selling your home, freshening your curb appeal after any long drab yucky winter is important - but can it be simple and even better - cheap?  Here they are - 5 great affordable (some even free!) ways to quickly spruce up the front yard to attract buyers:

1)  Prune, trim, and mulch

As leaf buds begin to show, you'll find the dead limbs that much easier.  Tree limbs and tall bushes block the view of your home from the street. And over time, bushes have spread and grown, covering stairs, walks, and most importantly - blocking light from windows!  For flowering bushes, consult your local garden expert, but for hardy evergreens ... I say prune away and neaten the look. For FREE.  Top of all your beds with a fresh layer of mulch, which costs less than $30/cubic yard for a day full of fun.

2) Brighten or Contrast your front door

An impressive front door always makes your house stand out. 

Try a bold - but not garish! - color on an existing door, or splurge for a new stained door with plenty of glass. 

Painting an existing door?  $30 for a gallon of good paint & a new brush.  New door?  Get it installed for less than $500.

3) Keep the front light and bright! 

Clean, clean, and clean some more.  While Buyers are waiting at the door and the Realtor® gets the key, their eyes are checking out the accumulated dirt and cobwebs that careless sellers leave behind.  Make windows sparkle, sweep the walks and porches, make sure the doorbell works or get an attractive new door knocker and lockset.  Make sure the front door light works and is in good condition.  Cost? Anywhere from FREE to $300.

4) Paint to be Proud.Once you've pruned back the bushes, and swept out the cobwebs, you're probably going to find some peeling paint and maybe some damaged trim.  Yeah, I know it hasn't bothered you before, so why bother now - since someone else will be living here?  Just as they're seeing your dirt, Buyers & agents will spot rotten trim just as easily. And they assume YOU DO TOO, and choose to ignore it.  So, while painting today may be the most expensive of these cheap and easy fixes - it can also make the biggest difference.  Keep your trim well-painted, for about $3/foot?  Or replace rotten trim - at about $8/foot?

5) Put the focus on your windows

When you go into someone's home, do you ever think "wow, this house is just TOO bright!" ??

Of course not - so play up your windows, and the light they provide.  Again, pruning the bushes and washing the windows will let in SO much more light.  Now, spend just a few extra dollars for some attractive shutters or even cheaper - some window boxes full of fresh spring flowers. 

Like the picture shows - do a big enough window box...and they may not even notice you forgot to paint!

And, if you want the look but not the work - just give me a call and I'll gladly refer you to one my many great providers!