North Carolina Triangle Area Real Estate Blog

Well I have written about property taxes in Wake County North Carolina several times this past two months. It seems to be a hot topic. Because North Carolina revalues property every eight years, and their property taxes are than based on that value, the city and county governments must make sure that they adjust the tax rate so that residents do not get a huge tax increase in a single year. This concept is called revenue neutral.

I am originally from Florida, and there, the tax rate (in South Florida) is roughly 2% of the house value. They have a strange system that is capped at 3% gain each year if it is your primary resident, but if you move, you start over. My old home doubled in price over a relatively short period of time. So did many houses. For example, a home that was purchased for 260,000 would have yearly taxes of approximately 4500$. The person who then bout the same house for 400,000 would pay about 8000$ in taxes while a neighbor in the same exact model, who built the home 20 years ago and never moved may only be paying 1200$ in taxes - can you say unfair.

Back to North Carolina, Wake County, and Cary in particular. Cary determined that they need to reduce their old tax rate of .42 to .33 to be revenue neutral. they then decided that due to growth, then need more money (don’t we all), and decided that even though they agreed that .33 was revenue neutral, they were going to change their rate to .37 to make up the shortfall in their proposed budget. Well several days later, several commissioners decided they had changed their minds about the rate and the town then decided that .33 would be the rate, but would go up over the next several years to account for the growth. I am all for taxes paying for the growth within a reasonable amount. I would even agree that Cary should go a few cents above the revenue neutral rate to help pay for infrastructure for the growth. One thing that the town does not mention, although I am sure that they must realize it is: Much of this growth is due to new construction. The land that the new homes are being constructed on was not producing the tax receipts in the same amount that it will be once the homes are constructed, so some of this growth is paying for itself. What about the revenue from impact fees from this new development? I won’t even go there, but needless to say, kudos to Cary for doing the right thing.

If you have any questions about the tax rates throughout Wake County, please do not hesitate to contact me.

I do not normally reprint articles from other sources, but I felt that this one hit the subject of frustrated sellers and realtors in a down market right on the head. It talks about pricing your home right to sell without regard to what has happened in the past, as well as the sellers mindset and frustrations that realtors feel when sellers are not realistic or do not understand pricing and their market.

Whether you are a seller reading this, or a realtor, this article can help you see the other side of the discussion that is taking place between sellers and realtors. This article was originally printed in the Sun Sentinel which is a South Florida newspaper. The article was written by Paul Owers on June 16^th. Although I am a Realtor in the Triangle Area of North Carolina, this article is written with the South Florida audience in mind, and while this is one of the harder hit markets in the country, it can be useful anywhere that there is a declining market and/or a market with glut of homes, which is just about everywhere these days. I have bolded some phrases and ideas that hopefully will resonate with sellers.

Setting the right price for a home sounds simple, but too many sellers aren’t doing it.

They insist that their properties are special and holding value, even though the median prices for existing homes have plummeted 26 percent and 24 percent, respectively, in Palm Beach and Broward counties since late 2005.

These stubborn sellers ask for too much money, ignoring the list prices of nearby homes, not to mention their real estate agents’ advice. It’s a short-sighted strategy, one that ultimately costs tens of thousands of dollars in a depressed housing market like South Florida, agents say.

“The worst thing to be in this market is one of those homes that’s been listed for six, eight, 10 months with no consummated deals,” said Beverly Rothstein, an agent in Broward and Palm Beach counties. “That’s when the vultures come out, and you have to sell the house at a deep discount that you wouldn’t have had to take if you had priced it right from the beginning.”

Olga and Manuel Delacruz listed their three-bedroom Greenacres home in central Palm Beach County for $199,000 about four months ago. When it didn’t sell, they dropped the price twice. Now they’re asking $169,999, which is where they probably should have started, their agent, Douglas Rill, said.

The Delacruzes and other owners of lower-priced homes are likely competing with an increasing number of foreclosures. Lenders don’t want to hold these properties, so they’re slashing prices. Individual sellers must do the same if they have any hope of finding buyers.

“It’s a little frustrating,” said Olga Delacruz, 47, a security guard. “If we have to lower it one more time, we will.”

Many sellers asking too much for their homes now are doing so because they paid inflated prices during the housing boom of 2000 to 2005. Agents cringe when they hear clients say they have to get a certain amount of money out of their properties.

“Your need doesn’t change the market value of the house,” said Rill of Century 21 America’s Choice Realty in West Palm Beach. “Sellers will say, ‘Can you at least try it at this price?’ I’m happy to try, but it’s not going to work.”

Because of the glut of properties for sale, even beautiful homes won’t attract interest unless buyers perceive value, said television commentator Gerri Willis.

“There’s no bigger issue for sellers right now than pricing,” said Willis, host of CNN’s Open House and author of Home Rich: Increasing the Value of the Biggest Investment of Your Life.

In the book, Willis writes about price break points, which are psychological limits that buyers often set for themselves. She said a buyer may be willing to spend up to $499,000 on a home but will balk at $500,000, even though the $1,000 difference is barely noticeable on a 30-year mortgage.

Buyers prefer to spend at the top end of their price ranges, but they probably won’t even visit properties if they’re priced above the psychological break points, Willis said.

So a home valued at $310,000 would attract plenty of interest if listed at $299,000, she said. Asking for more than that would exclude buyers whose limit is $300,000.

And while that same home theoretically would draw people willing to spend up to $400,000, they’re probably more interested in properties at the top end of the price range.

“The big question I always get from sellers is, ‘At what point should I be willing to cut my price?’” Willis said. “But that’s the wrong mindset. You’ve got to go into the market at the right price.”

Terry Story can relate. The agent in Palm Beach and Broward counties wanted to list a Boca Raton home last summer for $575,000, but her client held firm at $625,000. Story knew that was too high, even though there weren’t a lot of comparable sales in the area to go by.

Meanwhile, a similar house across the street was priced more competitively from the start and sold quickly for $482,500. Story’s seller could do nothing but cut his price, finally finding a buyer to pay $460,000 after six frustrating months.

Instead of getting ahead of the price curve and establishing market value in the neighborhood, he was left to react to it. “He chased down the market,” said Story of Coldwell Banker Residential Real Estate.

Other sellers are more realistic and realize that being able to move quickly is more important than trying to get the highest price.

Virginia Goss first tried to sell her Boca Raton house on her own, but had no luck. So she listed it with Story, who suggested she put it on the market in the low $300,000 range. Although that was much lower than she preferred, Goss listened and immediately sold the home, albeit at a loss.

“It’s hard to swallow a loss, but we’re moving on,” Goss said. “There’s value in that.”

Is your property overpriced?

Ssellers can use the following guide to determine whether their properties are overpriced:

The home is priced right if it’s getting steady showings and repeat visitors. Expect an offer.

In a recent post I wrote about Wake County property taxes and how they are supposed to remain what is called revenue neutral. That means that even though the entire state was reassessed for the first time in 8 years, and North Carolina property values shot up at an average of 38%, the county had to lower its mileage rate in order to take in more revenue this year than it did last year. Towns and cities within the counties were also to follow suit.

For some reason, Cary has just decided to take a look at that and claim that due to growth, they need to think about raising the rates and moving away from revenue neutral. I do believe that the exact amount that came in last year should be increased a little. This area is experiencing tremendous growth and we need the money to pay for that.

Something to consider is the fact that many people are moving into new development as the area grows and tax revenue will grow due to the increase of households. It is not as if there are people moving only to existing housing. Despite this, the Town of Cary feels the need to lay out a plan to increase tax rates over the next several years, even though over that same time period, they will be bringing in more tax receipts due to the number of new households being created by construction. Is a tax rate increase necessary? Possibly a small one, but the one they are talking about, brings us right back to where we are now in a few years, with a 38% increase in property values that will become a huge increase over time.

Cary’s proposal, handed out at a recent meeting is as follows: the tax implications of covering Cary’s increasing debt expense and maintaining four months of cash reserves. To meet those obligations, tax rates would start at 33 cents in 2009; go to 37.98 cents in 2011, 41.03 cents in 2013 and up to 43.84 cents in 2020.

Semantics actually creeps in as some officials actually still claim that this is policy will lower taxes, because the rate actually never gets to where it was before this latest revaluation. Technically it is a decrease in the tax rate, but because of the higher property value, it still amounts to a tax increase and a large one at that if this proposal sails through.

It is important to watch how this develops. If it passes, it is likely that other area towns such as Holly Springs, Apex, Raleigh, etc. will follow suit. Visit the Town of Cary website to learn more the process on raising tax rates.

rates.

By now, we all know about the foreclosure issue and the credit crisis. You may even be one of the millions of people who entered into an adjustable rate mortgage and are now put into a situation where your mortgage has reset or will rise t soon, causing your monthly payment to go significantly higher, and in turn, you may not be able to afford your house.

These mortgages were originally designed for self employed people whose income fluctuated from month to month afford more house at lower payments. As property prices rose, many people turned to these mortgages in areas such Florida, New York and California as a way of affording homes that they could otherwise not afford. 62% of the homes in foreclosure are in those areas. I live and work in Wake County North Carolina, which has a large number of foreclosures compared to a year ago, but still has a fairly healthy real estate market due to factors that I have written about in a previous blog.

Most people felt that when the reset occurred, they could simply refinance or sell their homes. Others claim that they did not understand the nuances of the loan, or were misled about the loans, even though they signed the papers.

Whatever the reason, these mortgages are causing many people to walk away from their homes, and in turn it is effecting the overall economy, and prices of homes for people who did not take these risky exotic loans out, and who have been responsible in purchasing homes that they can afford with loans that they understand.

Recently, the government has begun a bailout process with the assistance of the Hope Now hotline and there is a bill approved by the House in May would allow the Federal Housing Administration to guarantee up to $300 billion in new loans to help homeowners facing foreclosure. Borrowers could get more affordable loans worth no more than 90% of the home’s value, meaning that participating lenders would have to take a significant loss on the loan. The bill was sponsored by House Financial Services Committee Chairman Barney Frank. Senate Banking Chairman Christopher Dodd has a similar measure.

Lenders are more willing to work with buyers to come to a solution, even if it means that the lender has to rework the loan in more favorable terms to the borrower and while taking a loss.

Some people, who did not take out these loans, are angry about the bailout of what they call irresponsible borrowing and lending. Their feelings are, why should these people be able to stay in homes that they could not afford because the market has changed. They feel that they are also under pressure with everything else rising, but no one is helping them. Other feelings are that I do not want or need help, but I do not feel it is fair for the government to help those who did not understand what they were getting into or could not afford.

However you look at it, there are people in trouble, and there are others that are angry. Some anger is directed towards the banks, who people feel were lax and greedy, approving loans for people who they knew could not afford these homes, but were blinded by profit. Many people claim predatory lending and fault the banks with creating the current crisis.

It is a situation where it really does not matter who is at fault because the crisis is here and it is affecting everyone in the real estate market, not just those who are in danger of losing their homes.

The banks do not want to foreclose in this type of market as they only stand to lose money. When homes are foreclosed, banks try to unload them, and since there is a glut, they do so below market, many times just to recoup a fraction of their original investment. This, in turn brings down the prices in the market as you, as a seller, are competing with foreclosures being offered at lower prices. As these homes close, they become the comps to your sale and the average prices lower. At the same time, the supply and demand balance favors the buyer as there is already a glut of homes in most markets.

Is the bailout fair? I do not think so, but is it necessary? I think it is so that this current credit crisis does not completely cripple the already failing housing and credit markets. Even worse, only 13% of all ARM mortgages have reset. There are a staggering ARM resets coming in the next few years. There is 5 billion dollars worth or ARM Mortgages set to reset in 2009 and 10 billion in 2010. Could this be the next real estate crisis or could it cause the current one to last well into the next decade? It might if we do not get a hold on things now. Again, while the bailout ideas being passed through congress may not seem fair and just, it may be the only way to avoid a long lasting housing crisis ten times worse than what we are experiencing now.

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Listwise Realty Services
(919) 270-8881
Visit My Website To Learn More

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Call now for more information. We also work with buyers and have a cash back at closing rebate program.

Jason Goodman
Listwise Realty Services
(919) 270-8881
Visit My Website To Learn More

Thinking about relocating to North Carolina? It’s a great place, and there is a lot to take in. When relocating anywhere, there are usually several reasons. Most of the time, people relocate due to work and family. Sometimes, people are looking for a change. Sometimes people relocate to get a change in lifestyle. A person form a state like New York may relocate to a state that gives them a more laid back, slower paced life. There are so many reasons for relocation, but whatever the reason, it helps to have good resources to help you determine not only the main area of relocation, but an exact location.

When considering North Carolina, there are a lot of things to consider. If you are not forced to relocate to a specific area or city, keep in mind that North Carolina has several major areas, each with their own culture and even climate.

There are the mountains, located in the western portion of the state. This starts out in the foothills and goes towards the border of Tennessee. These mountains are part of the Appalachian Mountain chain and the largest city in this area is Asheville. This area is famous for its Snow Skiing and outdoor activities in the summer and of course, as it is the highest point in North Carolina, the climate is the coldest in the state.

The Piedmont region is the middle third of the state and the closer that you get to the mountains, the more hilly the terrain becomes. The elevations of this region range from about 300 feet in the western Coastal Plain to about 1,500 feet near the mountains. The boundary between the Coastal Plain and the Piedmont is called the fall line or fall zone. Along this are, rivers flow from the older, harder rocks of the Piedmont to the softer rocks of the coastal Plain. Along the fall line, rivers form low waterfalls, and rapids. Below the fall line, streams are usually sluggish and smooth-flowing. It is in this region that the two major cities reside – Charlotte and the Raleigh Durham area.

The coastal plain makes up the eastern third of the state and is known for its beaches, especially the Outer Banks, Cape Hatteras, Cape Look Out, and Cape Fear are all part of this area.

Where ever you live, North Carolina has a great climate. It has four distinct seasons, but most winters are fairly mild (except for the higher areas in the mountains), the spring and fall are simply beautiful, and while the summer can get hot, it does not last too long. Because of this, North Carolina weather offers something for all types – those who love a change of seasons, but at the same time, those who do not like extreme temperature changes form season to season.

The economy in North Carolina is unique and is what has been helping most areas sustain rapid growth. The beach areas thrive on tourism during the summer months but go quiet during the rest of the year. The Raleigh Durham area, better known as the Research Triangle Park, or RTP, is one of the fastest growing areas of North Carolina. Often called a recession proof economy, there is a great mix of Technology (sometimes referred to as the Silicon Valley of the East), Biotechnology, and Medical campuses. The University community (University of North Carolina, Duke, Wake Forest, and North Carolina State) are all within a half hour of each other and further add to the medical and other research going on in the area. Unemployment in this area is low and high paying professional jobs are plentiful. Because this area did not experience the housing boom where prices skyrocketed (they gradually inched up at a healthy 3-5% pace over the last 5 years), housing is relatively affordable. Real Estate taxes are reasonable and homeowners insurance is cheap. The farther out that you go from the Research Triangle Park, the more affordable housing becomes. Raleigh is also the capital city, and with that, you also have the economic benefits of government business sustain the area.

The Charlotte area is more of a financial center with headquarters of large companies such as Bank of America. Whenever you see a list of top 20 metropolitan areas and housing, Charlotte has consistently been the one market over the past several years that has been slowly growing while all others are in decline.

There is so much to do in this state. There are not many states where you can be at either the mountains or the beach in 3-4 hours. Overall, people are friendly, life is affordable, and the weather is great. Plat fescue grass and you will have a green lawn all year round, even in the winter. I relocated from Florida to North Carolina and did a lot of research before I moved. I have compiled some of the sites I used to give me all the pertinent information that I needed. Please go to my website and see if any of these links might be useful to you. www.yourtrianglerealtor.com . Click on the Buyers Resources link and Triangle Area Information Link on the left side menu and you will find tons of resources that will help you if you are looking to relocate here. Specifically, the link called relocation information for the Triangle Area on the buyers resources page will give you great statistics about weather, crime, climate, population, demographics, home sales, and anything else that you could possibly think of. Please do not hesitate to contact me if you have any questions about the area. I live and work in the Triangle area (Raleigh – Durham) and specialize in any areas within Wake County (Cary North Carolina, Raleigh North Carolina, etc.) and Durham County. I’d love to hear from you.

Jason Goodman, Realtor

Watching the trends in real estate in a given area help us to determine if a bottom has occurred. Sometimes we cannot tell until we look back at the data. This was true of the stock market crash in 2001 and during most recessions. If we analyze the data on a monthly basis, we can usually see trends that lead us to understand what is going on. We can never really all a bottom until we have enough data to back that up.

Most analysts, as well as myself, believe that we may be near a bottom in terms of pricing, but we also do not feel that a turnaround is going to happen in the near term. The large numbers of inventory alone will prevent that from happening, as well as other factors such as tight lending and the economy.

Most buyers want to know when the bottom occurs so that they do not buy when their property is expected to go down, and most sellers want to know as well so that they do not keep lowering their price or so that they can gauge what they may actually sell their home for, so that they can then plan their next move.

Each month, as statistics for the North Carolina Triangle (Wake County) area are released, I will attempt to analyze and bring them to you. Today, I will give you housing statistics and analysis for April, and as subsequent data is released, I will bring that to you as well. The statistics are broken out by the main counties of the North Carolina Triangle area (Wake, Durham, Johnson, Orange) and other, which represents other areas in the Triangle. I have included the numbers from March in order to paint a picture of upward or downward trends.

Single and Multifamily Homes Sold

Average and Median Price

The average home price has dropped by $7000 from March to April

Single and Multifamily Homes Sold (by Price – APRIL ONLY)

Single and Multifamily Homes Sold (by Price – MARCH ONLY)

Days on Market – April

Days on Market – March

Average Residential CLOSING price

Active Residential Listings

Yearly Data Since 2006

Print is dead. Over 70% of people searching for a home start and continue their search on the internet. Most buyers will know more about the homes that they are looking for than you do before they seek you out. Those who are not marketing on the internet are missing out and will eventually disappear. At the same time, you are not offering your clients the most up to date marketing tools and their listings will suffer.

All homes in the MLS are on realtor.com and that is where a majority of people go online to search for homes. That is changing. Sites like Zillow and Truilia as well as Craigslist and others are also becoming havens for people to search for potential homes. As an agent who uses technology, I have been posting to these sites for several years, but everything I take a listing, it has become a cumbersome process to post to all of these sites separately. Recently, I was searching for a better, and free, way to maximize my exposure while minimizing the time expended to post and maintain these listings. I came across a site called postlets. Before I describe to you what it is, I want to preface this with the fact that a: it is a totally free service (there is a premium version but you will not need it), and b: I am in no way affiliated with this company, just very impressed by it.

What this site allows you to do is create professional quality listings (an example is pasted at the bottom of this entry). It asks questions about the property, lets you fill in descriptions and upload pictures as well as all of the typical online information that you would want to display. It then compiles the information, creates a specific website for each listing, automatically posts each listing to Zillow, Google Base, Truilia, Lycos, Backpage, ByownerMLS, Hotpads, Kijiji, Local.com, Oodle, and Vast, and it also gives you the HTML code for your listing site that you can paste into Craigslist and within 30 seconds, you can have a professional looking ad there as well. You also get a listing showcase website that can be personalized with your logo, and again, this is all free. You can use the HTML code in conjunction with your own site, or just link to your listings from your site.

However you use this tool, it is sure to enhance traffic to your listings and in addition, when you are conducting a listing presentation, it is one more tool to amaze your potential clients with that your competition does not have and as I always say, we are all working from the same information, it is what we do with that information and how we market that sets us apart and lets our potential clients make an informed decision.

Below is a snapshot of a website I created in Postlets in about 2 minutes for one of my listings in Raleigh, North Carolina.

Jason Goodman | Listwise Realty Services | (919) 270-8881 12125 Warwickshire Way, Raleigh, NC Beautiful Wooded Lot in Desirable Neighborhood 4BR/2.5BA Single Family House offered at $349,900 Year Built 1990 Sq Footage 2,951 Bedrooms 4 Bathrooms 2 full, 1 partial Floors 2 Parking 2 Car garage Lot Size .29 acres HOA/Maint $70 per month DESCRIPTION This home features large living rooms and bedrooms. A master on the first level gives you a split bedroom plan. Enjoy the spectacular wooded views from one of two decks or from the large open windows in the dining and family rooms. Master bath suite includes a new whirlpool tub with a heater, separate stall shower, large walk in closet, dual sinks, and is newly tiled. The step-down family room includes a stone fireplace and the entire main level is done in beautiful hardwood. On the second level, there are three large bedrooms. This home is perfect for anyone looking for a home with large rooms for entertaining in a very desirable North Raleigh neighborhood. Single Family Property, Area: North Raleigh, Subdivision: Hawthorne, County: Wake, Approximately 0.29 acre(s), Year Built: 1990, Community swimming pool(s), Fireplace(s), Dining room, Hardwood floors see additional photos below PROPERTY FEATURES Central A/C Central heat Fireplace COMMUNITY FEATURES Clubhouse Swimming pool(s) Tennis court(s) ADDITIONAL PHOTOS Seller contact info: Jason Goodman Listwise Realty Services (919) 270-8881 For sale by agent/broker Equal Opportunity Housing Posted: May 13, 2008, 6:53pm PDT

I have always said that all realtors have the same tools for marketing homes as well as finding homes for buyers. If that is true then how does a potential buyer or seller choose a realtor? There are several things that differentiate Realtors form each other. The differences can affect how you buy or sell a house and how much you pay or profit.

For buyers, there are several factors to consider. First, you want someone who knows about the local market. Sometimes that means that they have been around an area for a long time, but that is not the only thing to consider. Length of time in a market does not always translate into knowledge. They might be able to tell you that they can remember when a certain road was dirt, and a neighborhood was a farm, but that is not helpful today, for your purchase. Sometimes, someone who has been an agent for a while, but only in your market for a year or two might be just as good a source of knowledge. Why? Because most realtors, when relocating, will do 10 times the research that a local realtor might do for a buyer for themselves, and in the process, they will be cognoscente of learning the intricacies of the market. More importantly, you should ask how long your potential realtor has been an agent or broker. This should be followed up by asking how many transactions have they been part of (either on the buy or sell side). This will give you a look into their experience.

Another important question to ask, both for buyers and listing agents is how much of your business is referral or repeat business. Ask to speak to not one or two past clients but ask to speak to one client who has referred someone and also, the person that they have referred. A good agent builds business this way.

Do NOT pick a name form the internet or from the phone book unless you know someone who has worked with that agent before. Try not to call signs directly as you may end up using the seller’s realtor who really will not be representing you or looking out for your best interest as a buyer.

Look for someone who is involved in the community. Are they a member of local organizations? If you have children, do they have or have they had children your Childs age? This can help when looking at particular neighborhoods.

Make sure that your personality clicks. In the Triangle area, a buyer’s agent will, sometime after your first meeting, most likely ask you to sign a buyer’s agreement, which binds you to them, and in some cases, assesses monetary penalties if you use another agent. This is fairly common practice for Wake County North Carolina. Let this prospective agent take you out a few times, sort of like kicking the tires. Make sure you have the same mindset and outlook and that your personalities click. Don’t be afraid to interview several, even if they have come from a recommendation of a friend or family member.

Choosing a buyer’s agent will be one of the most important parts of the home buying process. It will set the tone for the whole adventure, and can lead to either a good experience or a bad one, depending on your agent. Furthermore, a good agent will work hard for you, help you to get the best possible price, and make sure everything goes smoothly and there are no bumps in the road.

For Sellers, many of the same things regarding the choosing of a buyer’s agent apply to you as well. As stated earlier, never choose a Realtor from an ad or the phonebook without the recommendation of someone that you trust. Ask for references. Most importantly, interview at least three and have them give you a full listing presentation with a comparable market analysis. Make sure they are not trying to get you to list too low so they can get a quick sale. If they are knowledgeable about the area and home prices, there should not be much variance in the range of listing prices.

Most home buyers start of their home search on the internet. In my opinion, print is dead. Find out what types of technology the realtor uses to market you home. Most homes will sell through the MLS system, but the more marketing, the better. Visit the agent’s website to see if it would appeal to you as a buyer. Ask where else you home will appear besides the MLS. It is very important, in my opinion, that your Realtor has an enhanced listing on Realtor.com. These are the listings that are highlighted and have more than one picture. Many times, when I have an out of town buyer, they send me homes they want to see from Realtor.com. They almost always exclude those with only one picture as they do not want to waste limited time while they are in town looking at house when they can’t tell from pictures if it will appeal to them.

Communication is key. Does the agent plan to call you weekly to discuss market conditions? Is the agent keeping up with home sales in your neighborhood and comparable areas? I have been the second realtor on a number of deals where my seller has told me that their agent signed the paperwork and did nothing more. I contact my sellers a minimum of two times a week, even if I have nothing to say to them. I may talk to them about the state of the market, calm their fears after reading one of the many negative real estate articles in the paper, etc.

Even more important is that your listing agent should keep up daily on how homes are selling and being priced that are similar to yours in your area. If your realtor does not know what is going on around you, you run the risk no knowing when prices get lowered and what homes similar to yours are selling for. This then, could leave you priced well above your neighborhood, in which case, you will not get any showings. With today’s technology, it is very easy to set up an automatic email that tells your agent when comparable homes sell, come on the market, or lower their price.

Ask your agent what they will do if your home has not sold in a few months? They should be willing to have a marketing strategy, and be willing to make changes as you move forward.

Again, as above, experience in real estate is key. There are tons of realtors who only became realtors as the boom began. These people have never had to work in a normal or buyers market. This is important as they may not have the knowledge on how to market and sell your home in today’s unprecedented market.

Remember that commission is always negotiable. Run if they tell you it is not – they are breaking the law. Ask for a discount on the commission. Many agents, when dealing with a sane seller who prices their home correctly will be willing to move within reason. Do not shop solely by lowest commission and highest price that an agent is willing to list your home for. Pricing it too high will result in little to no showings in this market. Most agents cannot tell you what the listing price of your home is. They can give you a range, but should be able to back it up with a mixture of homes sold within the last six months, pending sales, and listed homes.

Remember whether you are listing a home or buying one, there will be many decisions to be made. The first and possibly, the most important will be who you choose to help you. It will set the tone for the rest of the process and can make or break the experience, and in the end, can make or save you a lot of money, if you choose correctly.

Jason Goodman
Realtor, Triangle Area North Carolina.