Is it for Everyone?

Recently, we were on a small weekend getaway at a great bed and breakfast in Southport, NC called the Robert Ruark Inn.  It is a fantastic place to stay and with the booking comes a wonderful breakfast.

While at breakfast, we met two other couples.  Both were from NC and were very neat people.  Throughout breakfast and small talk, one couple asked about the professions of others at the table.  A few minutes later, it was time for one of the three couples to leave so we were sitting at the breakfast table with a nice young couple from Raleigh, NC.   He was a native of Paris, France and had moved to NC to marry his wife, a neat lady who works in the pharmaceutical industry.

We could tell she wanted to ask a question.  She said, "May I ask you a real estate question?"  Of course!  She said, "we rent a home and we do not know if we want to buy or not...what do you think?"

It is a great question, isn't it?  We're sure the same thought has crossed many people's mind.  So we turned the question back to her and said, "That's up to you...do you want to use this investment to build wealth? Or do you want to give your hard-earned money to someone else so they can build their wealth? According to Lawrence Yun, the Chief Economist for the National Association of Realtors, this question is a no-brainer!  Between 2000-2018, those who became homeowners saw their net worth grow tremendously verse those who rented.

At the end of this short conversation, she said that several points were brought up that she had not thought of before.  We know and love real estate and believe it is a great tool to build wealth.  We think that she may be in the market to purchase real estate now.

**Disclaimer - some may not be able to purchase real estate at this point in their lives.  That's ok too. But it is important know that ownership is a wealth builder and a great step forward in the American Dream**

Top Three Issues....

So often we hear about how awesome the current real estate market is.  Currently, it is strong, stable, affordable and very active--which is great.  Our experienced BCA team of full-time Realtors meets weekly to discuss topics and provide insights in order make sure we are all on the same page. This includes working together and communication, addressing any process/operational issues and simply making sure we are all aligned for the same purpose.  We recently were talking about the current top three issues impacting our clients and the transaction and thought we'd share them here with you.  

1.  Unreasonable Buyer Request - we are in a tight market, one that still favors sellers.  However, every now and then we'll see buyer requests that seem to question the sincerity of their desire to purchase the home. Don’t get us wrong, asking for items to be repaired is not a bad thing. However, in NC when you are signing a contract you are agreeing to take the property in as-is condition. Sometimes that happens, sometimes it does not. Our state Realtors association has worked to have thorough disclosures up front but sometimes things aren’t discovered until a home inspector lays eyes on the house.  We are talking about sending a request that simply reads “see attached inspection report” and requests every item on the report with no thought or plan to accomplish the main items of concern. This act can set the tone of the transaction and actually prevent buyers from obtaining critical repair items.  We would question a buyer’s need to own a home if they can’t change a light bulb or tighten a door knob.

2.  Agents waiting until the last minute on due diligence request - this is very important!  The Due Diligence process is there to work through any issues that may arise through the transaction process and is highly important for the successful closing of a property.  We are seeing more and more folks waiting to the very last minute on request which can delay closing, cost time and money and is very disruptive to the process.  Don't wait until the last minute.

3.  Lack of Showing Feedback - when most people list their homes, they would like to know how a showing went.  Think about it...if you had your home listed and a showing occurred, would you not be interested to hear what the potential buyer thought? Someone has been in your home with their agent and the agent can’t find 2 minutes between Facebook and Insta posts to say how it went? As your listing Realtor, we make three requests for feedback via email over the course of 3 days and if we still have not obtained it we call and text the agent. Believe it or not, we still don’t receive feedback over 1/4 of the time. As far as providing feedback when we show, we would say we provide feedback 99.9% of the time and that ..01 we am leaving in there for the “human element” of potentially overlooking the request. Please make sure to inform your agent about how you truly feel about the house and encourage them to share it with the agent that has it listed.  It is simple communications that can help both parties.  

Thankfully, most transactions go smoothly, however, each one is different and carries their own directions.  But being able to head off some of the issues upfront helps.  So as human beings and as professional REALTORS we subscribe to the Golden Rule...."do unto others as you would have them do unto you.”  

What is the moral of the story?

Whether buyer or selling anything, it is important to know how the market is doing.  Real estate is no different.  We hear the question a lot...how's the market doing?

Things are positive.  While inventory is still an issue, buyers are shopping and in the marketplace. Mortgage rates are low, new job announcements have started to come, infrastructure projects are well underway, quality-of-life is high and we still have some of the most affordable real estate in the North Carolina.  Our sales volume is up 30% year over year, of which we thank all of our clients for the business.  However, here is a quick snapshot of a few of the most recent metrics we watch:

All Triad MLS - this encompasses the 11 county Triad, NC region:

Median Sales Price (MSP) - $183,000

Median Days on Market (DOM) - 11

Percent of Sales price to List Price (SP%) - 99.1%

Now, let's take a look at four cities in the Triad and how they are doing.

Winston-Salem

MSP - $178,500

DOM - 10

SP% - 99.1%

Kernersville

MSP - $226,000

DOM - 6

SP% - 100%

High Point

MSP - $161,500

DOM - 8

SP% - 98.4%

Greensboro

MSP - $185,000

DOM - 10

SP% - 99.5%

The real estate market in the Triad is strong, stable, affordable and active.  The moral of the story is simple, if you are buying, BE READY and if you are selling or planning to sell, BE READY!