SarahGray Lamm ~ Chapel Hill / Carrboro / Durham Real Estate Blog ~ Agent Outlier

Home For Sale ~ 74 Scottish Lane, Durham, NC ~ MacKenzie Place Townhomes~ $179,000

Tue, 09 Mar 2010 09:27:38 -0600

~74 Scottish Lane, Durham, NC 27707~
$179,000

Durham's MacKenzie Place Townhomes
Convenient Location Between Durham and Chapel Hill
Bright, open floor plan features 9' ceilings and large windows
Entry, Dining Room and Kitchen have hardwood floors
Living Room has wood burning fireplace and door to Deck
Deck overlooks green area
Eat in Kitchen open to Dining Room and Living Room
2 Bedrooms upstairs, each with walk in closet and attached Bath
Utility Room on second floor
Two assigned parking spaces

Video Tour and Clickable Floorplan Here or Below

Check out other Durham Properties between $150,000 and $200,000 by clicking here

It's Simple...When You Have A Great Agent!

SarahGray Lamm is a licensed, full time, residential real estate agent in the Raleigh Durham area of North Carolina. She specializes in serving the real estate needs of home sellers and home buyers in Chapel Hill, Carrboro, Durham and Northern Chatham County.

With over 60,000 hours of experience in NC real estate, SarahGray is proudly associated with Allen Tate Realtors, the Carolinas #1 independent realty company. With exceptional relationships all over the Carolinas and the U.S., SarahGray is able to connect you with other professional Realtors in all areas who will make your search for a new home or your home sale the best experience you have ever had!

Use of content from the AgentOutlier blog without the express permission of the owner is a violation of federal copyright laws.

Home For Sale ~ 210 Wild Oak Lane, Carrboro, NC 27510 ~ $335,000 in Bolin Forest

Mon, 01 Mar 2010 07:58:02 -0600

~210 Wild Oak Lane, Carrboro, NC 27510~
$335,000

Artfully updated home in Carrboro's Popular Bolin Forest Neighborhood
Easy walk to Bolin Creek Greenway and Neighborhood Playground
Living Room and Dining Room have bamboo floors
Living Room has volume ceiling and gas log fireplace
Eat in Kitchen has dark cherry cabinetry and tile floor
Stainless Steel Appliances
Master Suite on main level
Master Bath with Garden tub and separate shower
Utility Room and Half Bath on main level
Spacious Loft perfect for Family Room, Office or Exercise Room
2 Bedrooms Upstairs + Hall Bath
Two Car Garage
Huge Walk in Storage upstairs, finished, heated and cooled

Video Tour and Clickable Floorplan Here or Below

Click here for Youtube video of Bolin Creek Greenway filmed near this home

Check out other Carrboro Properties between $275,000 and $375,000

It's Simple...When You Have A Great Agent!

Home Sellers, Deferred Maintenance Always Catches Up With Someone. Will It Be You?

Wed, 24 Feb 2010 10:24:46 -0600

“I'll get to it later.” You know, all those little things that go on the “honey do” list? The pesky little fixes for which you just need to call a handy person or spend an afternoon at the home store talking to the clerk for some DIY advice. Then there are the things a new homeowner needs to simply budget for...like painting and systems maintenance.

Face it, while you may feel a great sense of accomplishment when chores are taken care of, there is always something much more compelling to do after a day at work or on a Saturday afternoon; something more fun on which to spend your cash reserves. You are easily lulled into “ah, I'll get to it next week...how bad can it get?” Well, let me tell you how bad it can get.

Picture a sweet little starter home in a sweet little neighborhood lived in by a really great family with really great kids. They bought the home just a couple of years ago, at the top of the market, and surely had a home inspection done before purchasing. Inspection recommendations at the time surely must have noted that the home had hard board siding that had not been caulked or painted in a very long time. Trim boards in the early stages of rotting and loosening, had to have been 'freshened up' with a coat of new paint. The HVAC system still had useful life in it but multiple, previous owners probably weren't good about regularly changing the filters. Is the heat exchanger in need of replacment? Maybe. There is a cute little screened porch which was clearly built by a DIY inclined previous owner, probably not permitted, since some of the construction “techniques” include interior rated items used outside and the vertical supports being “supported” on paving tiles.

When this seller purchased the home they would have liked the floor plan and had some money to make improvements so they probably asked for a few repairs pursuant to the inspection or maybe asked for and gotten, a major repair, thereby making the seller unwilling to do much more. Not to worry, the new owners would take care of the smaller, deferred items.

But when the time came to put some money into the home (for which the family had paid top dollar in a hot market) they chose a full kitchen redo in a home just 12 years old at the time; new cabinets, stainless appliances, solid surface counters, hardwood floors. There is fresh new paint inside in popular colors and they have created a truly attractive living space. But now they have to sell. I don't know why. It isn't advertised as a distressed sale and they haven't made any appreciation since they purchased but that isn't inherently the problem.

The inherent problem isn't entirely one of this sellers' own making either, but rather an unplanned collusion by all the previous owners; a gathering storm of laissez-faire and an “I won't be here long enough to worry about it” attitude from previous occupants. What this seller now has is a boat load of deferred maintenance issues that might just sink the ship.

The hardboard siding, uncared for over many years, has now absorbed enough moisture to crumble at the uncaulked seams and poorly painted edges. Unsealed nail heads are bleeding rust onto the siding as water seeps in. A lot of trim is peeling, missing and water damaged. The best solution is truly to re-side the house. Quite a few window sills have rotted and loosened and been painted over but an inspector’s sharp instrument easily punches a hole in it...even inside. There are windows with broken thermal seals. The DIY projects of previous owners, like a screened porch, were most likely unpermitted and are now testifying to the reason why we have building standards. The yard is a quagmire, 8 inches of standing water on this rainy day and draining toward the foundation. The systems, all original, are heading into the last stages of their expected life and the condition of the home's exterior does nothing to instill confidence in the maintenance of the other systems at this point. The HVAC ductwork in the crawl space is flattened from neglect of the system. The crawl space is damp. Any new buyer would be, quite simply, buying a large maintenance problem; and an expensive one.

It is truly sad. This seller is the one who was caught without a chair when the music stopped. The price they are asking is reasonable for the neighborhood but not for the condition. Add that to the fact that a typical buyer, paying anything near what the seller is asking, would end up upside down in it after fixing everything that needs to be fixed. The insane appreciation of past years (and ours wasn't even that insane) is gone and a buyer would have to live in this home for many, many years to just break even. This is a starter neighborhood of young families and working couples with regular turnover in ownership.

My buyer is exactly what this neighborhood attracts and she has a down payment, a good job, a qualification letter, flexibility on move in date and is ready to go. But she won't be the buyer for this home. Nor will any other informed and well represented buyer who is looking for a great house at a great price. She will move on. My guess is so will most others and I am truly sorry for this seller, left standing when the music stopped. The options left to them are not pleasant.

Responsible home ownership means deferred gratification is far preferable to deferred maintenance. Beautiful kitchens are one thing but you never know when the music will stop...and all those little deferments will keep you from surviving to the next round.

It's Simple...When You Have A Great Agent!

Home For Sale ~ 1546 Pathway Drive, Carrboro, NC 27510~ $360,000 in Bolin Forest

Tue, 23 Feb 2010 17:05:08 -0600

~1546 Pathway Drive, Carrboro, NC 27510~
$360,000

Carrboro's Popular Bolin Forest Neighborhood
Quarter Mile walk to Bolin Creek Greenway and Neighborhood Playground
Floor plan features Formal and Informal Living Areas
Entry, LR, formal DR and Kitchen have hardwood floors
Family Room has Wood Burning Fireplace with marble hearth
Kitchen with Breakfast area open to Family Room
Spacious Kitchen has hard wood flooring, solid surface counters and stainless appliances
3 Bedrooms Upstairs + Bonus Room with Closet
Master Suite has cathedral ceiling and walk in closet
Master Bath with Garden tub and separate shower
Utility Room and Half Bath on Main Level

Video Tour and Clickable Floorplan Here or Below

Click here for Youtube video of Bolin Creek Greenway filmed a quarter mile from this home

Check out other Carrboro Properties between $275,000 and $375,000

It's Simple...When You Have A Great Agent!

Home For Sale ~ 4904 Fortunes Ridge, Durham, NC ~ $195,000 in Woodcroft

Thu, 18 Feb 2010 17:30:06 -0600

~4904 Fortunes Ridge Road, Durham, NC 27713~
$195,000

Durham's Woodcroft Neighborhood
Popular, Flexible Floorplan
3 Bedrooms Upstairs + 2 Full Baths
Half Bath and Utility Closet on Main Level
Two Level Deck Overlooking Woodcroft's Walking / Biking Trail
Great Room has Wood Burning Fireplace
Great Room can easily be arranged as a LR/DR Combo
Spacious Kitchen and Dining area with wood laminate flooring

Video Tour and Clickable Floorplan Here

Check out other Durham Properties between $150,000 and $250,000 by clicking here

It's Simple...When You Have A Great Agent!

Home For Sale ~ 4105 Livingstone Place, Durham, NC 27707 ~ $189,000 in Trotters Ridge

Tue, 10 Nov 2009 19:24:07 -0600

~4105 Livingstone Place, Durham, NC 27707~

3 Bedroom + 2 Bathrooms Upstairs
Utility Room and Half Bath on Main Level
Large Living Room with Raised Brick Hearth Fireplace
Separate Dining Room
Bright Spacious Kitchen with Breakfast Room
Beautiful Sun Room with door to Patio and Hot Tub

Includes a Home Warranty

Video Tour and Clickable Floorplan Here or Below

Check out other Southwest Durham Properties between $150,000 and $250,000 by clicking here

It's Simple...When You Have A Great Agent!

Some Clients Are Really Worth Being Proud Of...

Wed, 17 Feb 2010 20:20:16 -0600

I have lots of young clients who accomplish awesome things. This young woman ranks really high on my list of courageous people. She works for Duke University as a scrub nurse and was invited to accompany a team of Duke doctors and nurses who went down to Haiti to assist the victims of the horrendous earthquake for 10 days. She didn't hesitate to say yes. Her family and friends supported her decision and her two young daughters have another reason to know their mom is a hero.

She isn't the one talking in this video, she is the one in the ladybug scrub cap and you will never recognize her on the street. But I know her and I'm really proud to say I do.

It's Simple...When You Have A Great Agent!

Downtown Durham, NC? Nothing To See Here. Move Along.

Sat, 13 Feb 2010 06:07:39 -0600

If you were born and raised in Eastern North Carolina, as I was, you know how we got our economic start. We were a cotton and tobacco economy, pure and simple. As the child of a cotton merchant I dove off many a cotton bale into loose samples of cotton piled high in a warehouse. I know the smell of cured tobacco in an auction warehouse before it was moved to the cigarette factory.

Durham meant tobacco. Block after block of red brick warehouses and plants, the first of which was built in 1874. The huge arched windows and smoke stacks that looked like cigarettes, the water towers bearing familiar brand logos and the railroad tracks weaving throughout told you exactly where you were. A few blocks up the road another red brick plant with palladium windows went up in 1900 so the Golden Belt Manufacturing Company could began turning cotton into thread and manufacturing the cloth pouches for all that Durham tobacco.

You have to forgive us North Carolina natives for not going easily down the road when overwhelming evidence showed that smoking was bad for our health. It had been good for our families. But that fight has already been fought and what was left in the aftermath were all those red brick buildings and railroad tracks...and a dying downtown Durham. Move along.

It was true throughout the '70s, '80s, and into the '90s...nothing to see here. Durham, NC – one half of Raleigh-Durham and one third of The Triangle Region – home to the RTP, Research Triangle Park, one of the most concentrated areas of growth in the country for healthcare, bio tech, high tech and research companies, and surrounded by three, yes, THREE, tier one universities and countless smaller ones. So why has this area of the country fared better than many during this economic downturn? Reread the last sentence.

Why, then, would downtown Durham have simply been ignored all that time? Because we were lucky. At least as viewed through the lens of a dynamic 21^st century downtown economic development team; we were lucky. Or at least we are lucky to have visionaries like Bill Kalkhof, the President of Downtown Durham, Inc., in our midst. Lucky that no one thought to come in and tear down the buildings of our tobacco and cotton heritage. I was lucky enough to spend a day in February 2010 with Carver Weaver, Director of Business Retention for the Greater Durham Chamber of Commerce and one of her colleagues, Matthew Coppedge, as they showed off their enthusiasm for a Durham rising once again to the top of its game.

As real estate agents committed to truly knowing the communities in which we live, work and play, a group of Allen Tate Realtors climbed into a white van for a drive through the present and future of The Bull City. After a two hour tour of the places I 'see but don't see' everyday, I'm not sure they aren't right about being lucky. Did some folks and their businesses get the short end of the stick with the rise of suburbia in the '70s when the “loop” was built to divert traffic around downtown Durham? Yes. Did Durham suffer the blight of being a decaying urban area and all the hardships which ensue because of that? Yes. Did Durham get a bad reputation and did the folks who were left behind find it tough going for too long? Absolutely. But is there a city better poised than Durham to springboard to success when all these bad economic winds abate? No!

Remember all those red brick warehouses? Block after block of buildings sporting palladium windows, massive wooden posts and beams and heart pine floors? Any guess what it would cost to build something like that in today's market? Any idea what local developers committed to reclaiming and re-purposing those buildings might be able to envision? Any clue what happens when a city partners with private business to return itself to a former glory?

For starters, think the American Tobacco Campus. Then head east to the Golden Belt art campus. On the way you'll pass the Durham Performing Arts Center and the wonderful new Durham Bulls Athletic Park. No, not the same venue as the one shown in the movie “Bull Durham” but not to worry, that one has been restored too. It's located in the Central Park area, near the Durham Farmers Market, and soon to be a venue for music events and winter ice skating.

There is Brightleaf Square, the first warehouse area reclaimed by forward thinking local business folks back in the '80s. It became a shopping and restaurant destination all on its own for many years. Once again updated in 2004, Brightleaf anchors the western edge of a revitalized Durham downtown.

The heart of downtown or the City Center area is home to Parrish Street, also known as the “Black Wall Street” and it's historic value is being preserved and honored. The City Center is home to the Durham Arts Council and to Greenfire Development, a company whose mission is to improve the overall quality of life in Durham by creating opportunities and whose very name is meant to indicate their understanding of the interconnectedness of people and communities, even forgotten ones.

There is so much more. What you really need to know though is that Durham, NC is back! It has a walkability score of 94 out of 100! It is home to world class restaurants, a thriving arts community, historic preservation and festivals celebrating everything from Civil War Re-enactment to Beer! Durham has reknowned medical facilities, music, museums, beautiful parks, Broadway entertainment and some pretty awesome sports! For a real treat check out this photo blog of A Photo Love Letter to Durham by Jessie Gladin-Kramer.

Wondering where you could go to live and work in a community poised for greatness and endless possibility? Ready to be part of building something sustainable and beautiful while honoring history? Wondering if there is a place you can afford to live yet still have infinite choices of things to do with your free time?

Call me...I think I might have a few ideas....

Click Here for Single Family Homes For Sale in Downtown Durham

Click Here for Condos & Townhomes For Sale in Downtown Durham

View Downtown Durham, NC in a larger map

American Tobacco Campus photo by J S North:http://www.flickr.com/photos/joephotos/ / CC BY-SA 2.0

Durham Skyline photo by Ildar Sagdejev: http://commons.wikimedia.org/wiki/File:2008-07-12_Durham_skyline.jpg

It's Simple...When You Have A Great Agent!

Home For Sale ~ 470 Windy Ridge Road, Chapel Hill, NC ~ Big Woods Hills ~ $460,000

Thu, 11 Feb 2010 18:47:28 -0600

~470 Windy Ridge Road, Chapel Hill, NC 27517~
$460,000

Big Woods Hills
Northern Chatham County
Easy Walk to Jordan Lake
3 Bedrooms + 2 and 1/2 Baths
Privacy and Elegant Living on 5+ acres
Home is Well Sited To Enjoy Private, Natural Views
Great Room has Two Story Volume Ceiling and Palladium Windows
Wood Burning Fireplace with Marble Surround
European Country Kitchen Features Granite Counters and Copper Sink
Dining area Separated from Kitchen by Columns
Hard Wood Flooring in Main Living Areas
French Doors to Wrap Patio - Blends Indoor and Outdoor Spaces Beautifully
Spacious Main Level Master Suite has trey ceiling
Spa-like Master Bath with separate tub & shower has Glass Block Window
Two Bedrooms Upstairs with Full Bath
One Bedroom has a Well Designed Office Space Behind Glass Doors
Two Car Garage

Video Tour and Clickable Floorplan Here or Below

Check out other Chapel Hill Properties between $400,000 and $500,000 by clicking here

It's Simple...When You Have A Great Agent!

Home For Sale ~1122 Jacobs Trail, Hillsborough, NC ~ Eagles Chase ~ $210,000

Tue, 09 Feb 2010 16:13:29 -0600

~1122 Jacobs Trail, Hillsborough, NC 27278 ~
$210,000

Eagles Chase Subdivision
3 Bedrooms + 2.5 Baths
Well Maintained Two Story on almost a full acre
Living Room has Raised Hearth Fireplace w/Wood Stove Insert
Large Dining Room
Bright Spacious Eat In Kitchen
Laminate Flooring in Main Living Areas
Door from Living Room to Deck and Landscaped, Fully Fenced Backyard
Master Bedroom has vaulted ceiling and Bath with separate tub and shower
Covered Front Porch
Oversized Attached Two Car Garage
Large Shed

Video Tour and Clickable Floorplan Here or Below

Check out other Hillsborough Properties between $190,000 and $230,000 by clicking here

It's Simple...When You Have A Great Agent!

A Tale of Two Comps: COMParables and COMPetition

Sun, 07 Feb 2010 08:06:36 -0600

Just knowing down to your toes that something is true can inspire some truly well written prose. Mike Jaquish talks about a big reality check for sellers here in the Triangle. We are lucky to live in an area where buyers have lots of great choices in housing and communites. On the other hand, buyers have lots of great choices...are you prepared to market your home to a buyer with so many options?

Via Mike Jaquish Cary, NC, Real Estate (KELLER WILLIAMS® Realty):

Taking a few liberties with Charles Dickens here....

It was the best of markets, it was the worst of markets, it was the market of wisdom, it was the market of foolishness, it was the market of belief, it was the market of incredulity, it was the market of Light, it was the market of Darkness, it was the market of hope, it was the market of despair, we had everything before us, we had nothing before us, we were all going direct to closing, we were all going direct to foreclosure - in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparables only. (Sorry, Charlie.) It's all about your perspective.

I help buyers and sellers in Wake County, NC.

Sellers too often limit their view to the "comparable sold properties." Sellers say, "I have 5 comps." "I can justify my price with the comps." "The comps support me." "Why should I sell for less than the comps say?"

It is just great that we can justify the price on your home, based on the most recent sales in your neighborhood, or even when we drag in a couple of homes from the subdivision across the street, or down the road. Great. You are "Priced Right." So, how is that sale going? Have you been on the market longer than you thought you would be? Did your lookie-lous buy somewhere else?

Now let's talk about another set of comps. As in "Market Competition."

If you are in Wake County, you have tons of Competition. Tons. So, yes, we have a lot of Buyers. And they have a lot of homes from which to select.

It is not uncommon for a Buyer, particularly a relocation client from out of town, to look at properties in a very wide area, up to 20 miles wide, or even wider. See, they are focused on value as well as specific location. And, with Wake County Public School System running the whole county, they can go twenty miles away and be in the same school district. I routinely show Buyers homes in Raleigh, Cary, Apex, Holly Springs, and Morrisville.

And transportation options to centers of employment are diverse enough, Buyers can select from multiple areas and have agreeable commutes.

So, what ties the Buyers to your home? What will compel them to buy YOUR home, from amongst the competition?

Comparables? Not really. A motivated Seller will consider the main function of the Comparable Sold Properties as supporting the sales value for Buyer lending purposes.

Town boundaries? The Cachet of Cary? The Appeal of Apex? Raleigh Suburbia? Hardly. They are all great choices, but our annexation laws in Wake County allow for immense gerrymandering of town boundaries. Some areas of Cary are not even contiguous to Cary. Some Caryites have mailing addresses from surrounding towns, as the Postal Service serves the customer as they deem efficient, not as the towns have gained jurisdiction. Cary homes may have an Apex mailing address, and a Garner telephone exchange.

Will the schools keep them in your neighborhood? Nope. Buyers may well attend the same or similar schools from a home miles away.

It was the best of values. It was the worst of values. It was the same house....

You may have the best property on your street or in your neighborhood. You need to know how your home stacks up in the broader market, to the competition. Is there better competitive inventory 5 miles away that is not considered "comparable?"

All the choices your prospective buyer has are competing with you.

If you are priced at $350,000 in a luxury townhome, you have to recognize that YOU are locked into selling a townhome. Your Buyer may choose to buy a townhome, but has choices of townhomes, single family homes, condominiums, multi-family, in town or rural, etc. You must make Buyers want YOUR offering above the others.

You have to make your home among the most appealing in the broader competitive market. Price. Condition. Updates. Decor. All of them must combine to help sell your home. If you think that any Buyer "...Will have to overlook" something, bear in mind that you will probably take a price hit for that approach. If they look at all.

It was the market of comparables, it was the market of competition...
.

___________________________________________________________________________________________

Mike Jaquish, REALTOR®

919-880-2769 www.MikeJaquish.com

Try my "No Hassle Home Search" No registration required!

Broker Associate, KELLER WILLIAMS® Realty, Cary, NC

It's Simple...When You Have A Great Agent!

Home For Sale ~ 2106 Strebor Street, Durham, NC 27705 ~ $145,000 ~ SOLD

Thu, 10 Dec 2009 14:22:22 -0600

SOLD in 16 Days for $142,000

~2106 Strebor Street, Durham, NC 27705~
$145,000

3 Bedrooms + 2 Full Bathrooms
Well Maintained and Updated Brick Ranch Home
Living Room with Raised Brick Hearth Fireplace /Built in Bookcases
Large Dining Room
Bright Spacious Kitchen
Laminate Flooring in Main Living Areas
Attractive Sun Room with door to Private Patio and Landscaped, Fenced Backyard
Covered Front Porch
Large Shed with Workbench

Video Tour and Clickable Floorplan Here or Below

Check out other North Durham Properties between $135,000 and $155,000 by clicking here

It's Simple...When You Have A Great Agent!

Durham Home Sellers: What Over Pricing Means To Your Bottom Line

Thu, 28 Jan 2010 07:57:14 -0600

You need to sell your Durham home and you've been interviewing Realtors. Let me stick my neck out a bit and say you aren't exactly hearing what you'd like to hear...maybe it's what you expected to hear on some level but there was always that little glimmer of hope, right? Maybe, just maybe, you could hold out for a bit higher selling price than what you’re being told. After all we live in a wonderful, vibrant part of the country and of North Carolina. We have an enviable quality of life. We never saw the outrageous appreciation that some states saw so we couldn’t possibly be seeing the depreciation they keep reporting in the news. Surely there are folks looking to move here who understand this and will open up those pocketbooks a tad wider to accommodate the price you know your home is worth.

“What harm is there in trying it just for a while?” you ask. “Besides, don’t we need some negotiating room built in to the price? A little something to make the buyer feel like they got a good deal?”

You need to hear me say this: You are talking about over pricing and it is a very, very bad strategy. Here are the facts.

The red bars show the percentage of the original list price which was achieved at closing when the original listing price was the same as the final listing price at the time of sale for Durham County, NC homes. In other words, the listing agent and seller PRICED THE HOME CORRECTLY and did NOT have to lower the original asking price before accepting an offer.

The yellow bars show how much LESS homes in Durham County, NC sold for when the listing agent and seller OVER PRICED THE HOME TO START and were forced to LOWER the asking price before getting an accepted offer. The percentage achieved at closing was negotiated off the final list price, NOT the original list price.

The red bars show the average Days On Market for a Durham County, NC home when the original listing price was the same as the final listing price at the time of sale. In other words, the listing agent and seller PRICED THE HOME CORRECTLY, did NOT have to lower the original asking price before accepting an offer and the home sold significantly faster.

The yellow bars show how much longer it took to sell homes in Durham County, NC when the listing agent and seller OVER PRICED THE HOME TO START and were forced to LOWER the asking price before getting an accepted offer. The average Days On Market is significantly longer. Time is money and sellers who over price undoubtedly paid a few more mortgage payments than those who do not over price.

You can see that over pricing, as a strategy, has never been a good idea but in an unforgiving market like we are experiencing now it can mean the difference between the seller bringing money to the table or not.

The value of significant real estate experience can not be overstated in 2010. If you are serious about accomplishing your real estate goals, give me a call. I'll give you all the facts you need to make the right pricing decision.

~These charts reflect the latest data available from the T.A.R.R. Report. A subscription publication for Triangle real estate practitioners~

It's Simple...When You Have A Great Agent!

Chapel Hill / Carrboro Home Sellers: What Over Pricing Means To Your Bottom Line

Wed, 27 Jan 2010 16:21:26 -0600

You need to sell your Chapel Hill or Carrboro home and you've been interviewing Realtors. Let me stick my neck out a bit and say you aren't exactly hearing what you'd like to hear...maybe it's what you expected to hear on some level but there was always that little glimmer of hope, right? Maybe, just maybe, you could hold out for a bit higher selling price than what you’re being told. After all we live in a wonderful, vibrant part of the country and of North Carolina. We have an enviable quality of life and some of the best schools in the state. We never saw the outrageous appreciation that some states saw so we couldn’t possibly be seeing the depreciation they keep reporting in the news. Surely there are folks looking to move here who understand this and will open up those pocketbooks a tad wider to accommodate the price you know your home is worth.

You need to hear me say this: You are talking about over pricing and it is a very, very bad strategy. Here are the facts.

The red bars show the percentage of the original list price which was achieved at closing when the original listing price was the same as the final listing price at the time of sale for Orange County, NC homes. In other words, the listing agent and seller PRICED THE HOME CORRECTLY and did NOT have to lower the original asking price before accepting an offer.

The yellow bars show how much LESS homes in Orange County, NC sold for when the listing agent and seller OVER PRICED THE HOME TO START and were forced to LOWER the asking price before getting an accepted offer. The percentage achieved at closing was negotiated off the final list price, NOT the original list price.

The red bars show the average Days On Market for an Orange County, NC home when the original listing price was the same as the final listing price at the time of sale. In other words, the listing agent and seller PRICED THE HOME CORRECTLY, did NOT have to lower the original asking price before accepting an offer and the home sold significantly faster.

The yellow bars show how much longer it took to sell homes in Orange County, NC when the listing agent and seller OVER PRICED THE HOME TO START and were forced to LOWER the asking price before getting an accepted offer. The average Days On Market is significantly longer. Time is money and sellers who over price undoubtedly paid a few more mortgage payments than those who do not over price.

~These charts reflect the latest data available from the T.A.R.R. Report. A subscription publication for Triangle real estate practitioners~

It's Simple...When You Have A Great Agent!

Home Sellers, What's Your Plan?

Tue, 26 Jan 2010 09:55:51 -0600

“We hear what you're saying but we NEED to list at our price. We have FAITH in you...besides if we get the price we NEED, you make more money. Isn't that what you WANT?”

I am always dumbstruck by that logic coming from an otherwise intelligent seller.

I have just finished explaining that you have a 90 day window to sell your home. A 90 day window in a market averaging 10 months supply of available homes at the end of 2009. The qualification period for the government tax credits, love 'em or hate 'em, will end in 90 days. Over. Not coming back. You NEED to have your home under contract by then and the supply of housing in this area is more than triple that.

I have explained that every single day agents all over the Triangle are hitting the SUBMIT button on another new listing.

It's the third week of January 2010 and there are over 700 new listings in the last seven days alone in Wake, Durham, Orange and Chatham counties.

Another new listing which has been freshly painted, decluttered and staged for sale. Another new listing that opens the possibility of owning a great home for a qualified buyer who WANTS a deal...a great deal. And why shouldn't s/he? It's a buyers market and this buyer either has nothing to sell in order to buy because s/he is a first timer or was wise enough to take the advise of a real estate professional and get their previous home perfectly positioned to be at the top of another buyer's wish list. Done. Gone. Cash in the bank.

I have explained that you purchased your home at the top of the market. I know you were excited to move into this wonderful home and with such a great mortgage that you barely had to touch your savings. In a few years, when your house had appreciated normally (not those crazy appreciation rates we heard about in Florida or Nevada) but 'normally' at 5-6% a year (excuse me while I pause to reflect on how many times over the last 30 years I have said that the real“normal” in my book was 1-2% per year) you would be able to “break even” in a year or two, sell your home at a modest profit, pocket the difference as your next down payment and move on to do it all over again in another town. Well, that WAS the plan, wasn't it?

I have explained that the pool of potential buyers for your home is limited by several things beyond your control. First, they must have a job. Second, they must have some savings. Third, they must have good credit, not OK credit, good credit. They must be able to get an interest rate that allows them to afford the payments on your home. Those interest rates are available at least through March. But once the government stops buying mortgage backed securities (in March) they will have to get that loan from a bank. I think it is clear that banks have no intention of loaning money to home buyers at the current rates of under 5%. It isn't rocket science that rates are going to go up. An interest rate rise of just 1% will mean a potential buyer for your home must pay $10,000 less for it in order to have the same mortgage payment.

Which brings me to the other thing we just talked about: Sellers care about Price but Buyers care about Cost! Remember back a couple of years ago when you were the buyer? Did you care what you paid for the house or did you care how much your mortgage would cost you every month?

So I guess the answer to your question is: Thanks. I appreciate your faith in me but really, shouldn't faith be reserved for things which cannot be proven? I'd prefer you simply trust me and my actual facts. I have absolutely no special skills which allow me to unerringly locate the one buyer out there who has cash, no television or internet access allowing them to find out that this is a buyers market, no real estate professional working for them and who WANTS your home so much they will pay whatever you NEED.

As for my commission? I make no commission on a home that does not sell. I create no good will by making a promise on which I cannot deliver. I have yet to list a home on which the commission I made would allow me to retire with no worries about the future. I don't expect to ever list one.

I expect to work hard, offering my hard earned wisdom to my clients and to rely on their appreciation of my skills and services so that they feel good about referring me to their friends. It's a good business plan. I do what I have done for over 30 years because I love it, I'm good at it and I can make a profit at it. In that order. So can we rephrase the question?

I have FAITH that after you have processed all of the information I have provided, you will understand that if you NEED to sell your home and are not one of the millions doing so in distress, you will WANT to make it as attractive as you can, both in price and condition, to the well informed and qualified buyers out there. If you do that I can predict that you will move forward as one of them yourself...a well informed and qualified buyer...now that's a good business plan!

It's Simple...When You Have A Great Agent!