Why Use a Local Real Estate Broker?




Photo by griffithchris

Whenever a Randolph County homeowner decides to sell a home, it is tempting to consider selling without the assistance of a real estate broker. After all, who knows a home better than its occupant does? And there’s the broker’s commission – who wouldn’t want to save 6%-7% of the sales price? These are two distinct questions, and both of them are valid.

The answers to each are equally valid, and, surprisingly, they are also the same. The reason to use a real estate broker is so that you can make more money!

Perception

While it may not be true, many potential homebuyers who look for a Randolph County or Asheboro “For Sale by Owner” sign assume that the seller will be quick to bargain on the price. After all, they reason, the seller is probably saving something like 6% percent of the sales price by not paying a broker’s commission, so they should be able to come down in their price. Many buyers also assume that the DIY seller is unsophisticated. This may or may not be accurate, but it’s a common perception. It can lead some savvy buyers to attempt to take advantage of the seller during negotiations up to and during the closing process.

Negotiation

Some of the most important efforts put forth by a real estate broker on behalf of a seller involve determining a Randolph County home’s current market value, staging that home to increase its attractiveness to bring in the highest offers, marketing the home to the widest number of potential buyers possible, and negotiating with buyers on the final sales price. Highly experienced real estate brokers have spent their careers negotiating for their selling clients…for them the process is second nature. Skillfully holding fast to a pre-determined sales price is not easy. It’s a skill most inexperienced homeowners find challenging when selling their homes without the assistance of a broker.

 

Statistics

Quite simply, homes sold with the assistance of a real estate broker sell for more than those sold by the owner. According to the National Association of Realtors, in 2011 “the typical FSBO home sold for $150,000 compared with $215,000 for agent-assisted home sales.”  This is the bottom line reason why, if you are considering selling your home and your aim is to get the highest sales price possible, it only makes sense to hire a local expert to help. It’s why we are here, standing by to provide you with just that expertise.

If you’ve been trying to sell your For Sale By Owner home with no luck, call me today at 336-953-6526. I’ll be happy to help.

For more information about me and the Asheboro/Randolph County Real Estate market, visit my website at www.WaynetteAraj.com.

Keeping an Eye on the Positive

 

Enough already! Economy this! Housing market that!. It seems like we have been bombarded with mostly bad news forever. Every month Asheboro would-be home sellers and prospective buyers hope for signs that the economy has turned around, and this January 2012 has been no exception. But despite the relatively good news that unemployment numbers continue to show promise, the question remains: just how will we know when the Asheboro and Randolph County real estate market begins its upswing in earnest?

 

Market forecasting is always a bit like reading tea leaves, but for a change let’s take a look at three areas that could be indicators of positive economic signs for a real estate recovery:

 

Shrinking Inventory

Inventory is one of those real estate terms that can be misunderstood by anyone who thinks of its everyday meaning. Instead of being the total number of homes on the market, in real estate the term “inventory” is often expressed in months. It describes how long it would take to sell all the homes currently on the market if no new homes were listed.

 

When housing inventory shrinks, it means people are buying homes – a solid positive economic sign for real estate. While there are currently signs of shrinkage nationwide, the experts remain cautious due to what is known as the “shadow inventory.” These are homes that are in the foreclosure process but not yet on the market. It also includes those homes owned by folks who are putting off selling until prices recover. The experts at CoreLogic estimate that in the last quarter of 2011 there was a five-month’s supply of shadow inventory. This may increase as lenders release more distressed properties onto the market.

 

Unemployment

Among the most important economic signs to keep your eye on are the unemployment numbers. Rampant unemployment — and the resultant concern over job security — drags down consumer confidence in Asheboro and everywhere else. But when people begin to get back to work, confidence always builds. That is why it was an early positive sign for the real estate industry when the U.S. Labor Department came out with its November unemployment numbers. They are falling, and now sit at 8.6 percent — the lowest level in over two years. According to the Washington Post, the broader figures suggested that while this improvement may be modest it is also “widespread”.

 

New Housing Starts

When the economy begins to look healthy, homebuilders begin construction. Getting that right is of vital importance to them. Signs of a recovering new home market began back in September when construction increased a healthy 15%, according to RisMedia. While the experts consider this an optimistic sign, they again urge caution.

 

So while the economic recovery is still sluggish, there are some stirrings that the worst may be over. If so, one implication for Asheboro and Randolph County homeowners and potential buyers is that keeping an eye on market trends is once again a good idea.

 

To stay up-to-date, visit my blog at www.WaynetteAraj.com.

Photo courtesy of peasap.

Now That 2012 is Upon Us…

 I’ve heard it said that there are really only two kinds of people in Asheboro, NC: those who make New Year’s resolutions, and everybody else. Now that we are fully launched into 2012, humanity will have already separated itself into the two camps. One group is automatically removed from any possibility of failing to live up to any resolutions. And then there are the rest of us…

When I googled ‘resolution’ this morning I didn’t find any good synonyms but I did notice that the word has a lot to do with either A) getting a sharper picture on your TV; or B) simplifying something complicated into something less complicated.

I’m not going to say which of the two camps of humankind I fell into on New Year’s Eve, mainly because in past years I’ve found that publicizing those resolutions tends to make the job of living up to them at least 10 times harder.

But over and above any resolutions that may or may not be in progress, I do find some wisdom in the whole idea of working to simplify things. In every Randolph County real estate dealing, for sure, simplifying and clarifying is absolutely key to making maximum progress with minimum wasted time and energy.  It starts and ends with communication, from the first phone call or office visit to the moment when keys change hands. True, there are a hundred technical details that we need to handle, so it would be an over-simplification to say that your agent’s job is only guaranteeing clear communication. But when you really get to the core of why some home sales happen quickly and easily and some do not, it is often the case that there was some basic misunderstanding happening somewhere down the line.

I hope that your holiday season was as warm and full of good cheer as mine was, and now that the New Year’s celebrations are over, you and your family won’t even need to make a resolution that your 2012 will be a spectacular success!

Visit my website to search for Asheboro and Randolph County homes for sale: www.WaynetteAraj.com.

You are always welcomed to call me at 336-953-6526.

Photo provided by Carissa

Housing And Mortgage : The Experts Make Their 2012 Predictions

As the new year begins, there are no shortage of stories telling us what to expect in 2012. Housing finished 2011 with momentum and mortgage rates closed at the lowest rates of all time.

Some expect those trends to continue through the first quarter and beyond. Others expect a rapid reversal.

Who’s right and who’s wrong? A quick look through the newspapers, websites and business television programs reveals “experts” with opposing, well-delivered arguments views. It’s tough to know who to believe.

For example, here are some “on-the-record” predictions for 2012 :

• Home prices will rise in 2012 (says Freddie Mac)
• Home prices will fall in 2012 (says CBS News)
• Mortgage rates will rise in 2012 (says American Banker)
• Mortgage rates will fall in 2012 (ays the LA Times)

The issue for buyers, seller, and would-be refinancers in Asheboro and nationwide is that it can be a challenge to separate a “prediction” from fact at times.

When an argument is made on the pages of a respected newspaper or website, or is presented on CNBC or Bloomberg by a well-dressed, well-spoken industry insider, we’re inclined to believe what we read and hear.

This is human nature.

However, we must force ourselves to remember that any analysis about the future — whether it’s housing-related, mortgage-related, or something else — are based on a combination of past events and personal opinion.

Predictions are guesses about what might come next — nothing more.

For example, at the start of 2009, few people expected the 30-year fixed rate mortgage to stay below 6 percent, but it did. Then, at the start of 2010, few people expected the 30-year fixed rate mortgage to stay below 5 percent, but it did.

All we can know for certain about today’s market is that both mortgage rates and home values are low, creating favorable home-buying conditions in and around Randolph County and nationwide.

At that start of last year, few people expected mortgage rates to even reach 4 percent. Today, rates “with points” price in the 3s.

What 2012 has in store we just can’t know.

If you’re thinking about buying or selling a home, call me or email me today: 336-953-6526, waraj@me.com. Visit my website at www.WaynetteAraj.com.

 

New Home Sales Approach Bull Market Territory

New home inventory is approaching bull market territory.

According to the Census Bureau, the number of new homes sold rose 2 percent in November. On a seasonally-adjusted, annualized basis, home buyers bought 315,000 newly-built homes last month.

November’s New Home Sales data marks the 4th straight month of rising sales volume, lifting the housing-market metric to a 7-month high, and adding to the housing market’s recent show of strength.

Last week, we learned that Existing Home Sales also climbed in November.

The big story in the New Home Sales report, though, is the remaining new home supply nationwide.

With just 158,000 homes “on the market” and the pace of home sales hastening, the complete, national inventory of “new homes” would now be sold in just 6.0 months, a 0.2-month improvement from October. This is the quickest home sales pace in nearly 6 years for the new construction market.

It’s even faster than in April 2010 — the buyer-deadline month of last year’s federal home buyer tax credit.

Home builders expect the trend to continue, too. Buyer foot traffic is on the rise and builders have a strong outlook for the next 6 months.

It’s an unsettling series of developments for today’s Asheboro home buyers. As home supplies drop and builders gain confidence, the ability of an buyer to negotiate for price reduction and/or upgrades shrinks.

If you’re a home buyer in search of new construction, therefore, consider that the best new construction “deals” of the next 12 months may be the ones you find today.

To search for homes for sale in Asheboro, or Randolph County NC, visit my website at www.WaynetteAraj.com.

Pay Your Mortgage Early, Boost Your 2011 Federal Income Tax Deductions

Time is running out to boost to your 2011 federal tax refund. All you have to do is make your January 2012 mortgage payment while it’s still December.

It’s a simple tax strategy that works because of how mortgage interest is paid, and of how the U.S. tax code is written.

Different from rent which is paid for the month ahead (i.e. “you’re paying January’s rent”), mortgage payments are made only after mortgage interest has accrued (i.e. “you’re paying for money you’ve already borrowed from the bank”).

This is called “paying interest in arrears” and U.S. tax code states that the mortgage interest is tax-deductible in its year paid, subject to limitations.

By making the January 2012 mortgage payment in December 2011, therefore, homeowners who itemize their on their tax returns can apply their January mortgage payment’s interest portion to their 2011′s tax returns.

The alternative is to pay the mortgage on schedule, and wait for April 15, 2013 to claim the credit.

If you choose to pre-pay your mortgage and typically send your payment via USPS, give your check ample time to be delivered to your lender, and processed. Mail your check no later than Saturday, December 24. I know… at this point it’s too late for that.

For Asheboro homeowners that pay electronically, the process is simpler. Edit your online bill pay program to have your mortgage payment post no later than Thursday, December 29.

Make note, however. Not all mortgage interest is eligible for tax-deductibility, and not all homeowners throughout the state of North Carolina who pay mortgage interest should itemize said interest on their tax returns.

Before prepaying on your mortgage, ask your tax professional for advice.

To search for homes for sale in Asheboro, or Randolph County NC, visit my website at www.WaynetteAraj.com.

 

Home Prices for Randolph County, NC

90 Day Look Back at Home Prices in Randolph County, NC

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Price per square foot for Homes in Randolph County, NC

Visit www.WaynetteAraj.com. Call me today at 336-953-6526 to ask about the market value of your home.

The Calm, Not the Storm

If You Could Buy a Van Gogh in 1885, Wouldnʼt You?

 

“The fishermen know that the sea is dangerous and the storm terrible, but they have never found those dangers sufficient reason for remaining ashore.”

Vincent van Gogh, Dutch painter (March 30, 1853 – July 29, 1890)

http://www.vangoghgallery.com/

Artists take risks. They pursue their vision, often without financial security, facing long odds while stewing in their own self-doubt. When the world tells them “it’s not safe,” they listen to their own voice despite “prevailing wisdom.” They have a vision and they pursue it.

Occasionally, if they’re very lucky, they get to look back on their life and see the path that lead them to create a masterpiece. At the time, the path wasn’t easy, yet in retrospect, it looks very much like the only possible path they could take.

I think in twenty years or even ten years, we’re going to hear the collective sound of people kicking themselves because they did not buy a home this year. As their teenage sons and daughters graduate and enter the future job market and begin searching for their first home, they’ll turn to their parents and say, “Seriously? You’re telling me when I was in middle school, you could get a 30-year fixed for under 5%?”

Too many remain terrified by the last great storm in the housing market. They stand now on the shores of incredible opportunity, but can’t shake the vision of all those values sinking into oblivion.

Think about the future. Who might need a home? Is there an opportunity to “be the bank” when the time comes? The descendants of those savvy collectors who bough a Van Gogh painting for mere dollars in 1885 are surely grateful for their grandparents’ eyes today, aren’t they?

Yes, there is uncertainty, but this is the calmest water you’re ever going to see. Set sail now and buy a home. Those that do will certainly be rewarded. As for the masterpiece? It will be the satisfaction of looking back and realizing they bought at just the right time.

There’s certainly no risk to exploring the opportunity. I’d love the opportunity to sit down with you and plot a possible course to the best investment you could make. Contact me today at: waraj@me.com or 336-953-6526.

Visit www.WaynetteAraj.com

Home Supplies Fall To 7.0 Months Nationwide; Buyer Demand Strong

Home resales moved to a 10-month high in November, the latest in a series of strong showings from the housing sector.

According to the National Association of REALTORS®, November’s Existing Home Sales rose to a seasonally-adjusted, annualized 4.42 million units nationwide —  a 4 percent climb from October 2011.

An “existing home” is a home that has been previously occupied and cannot be categorized as new construction.

Home buyers and sellers throughout Asheboro should take note of November’s numbers because — behind the headlines — there’s a series of statistics that foretell higher home prices ahead.

First, the total number of homes for sale nationwide dipped to 2.58 million, an 18% reduction from November 2010 and represents the fewest number of homes for sale since February 2007.

At the current sales pace, the complete home resale inventory would be sold in 7.0 months.

And, second, the real estate trade group reports that 33% of all homes under contract “failed” for some reason last month.

Contract failures can occur because of mortgage denials in underwriting; home inspection issues; and homes appraising for less than their respective purchase prices.

In other words, despite a reduction in the number of homes for sale, and a rash of failed contracts, Existing Home Sales volume is still on the rise.

Broken-down by buyer-type, here’s to whom home sellers were selling in November :

• First-time buyers : 35% of home resales, up from 34% in October 2011
• Repeat buyers : 46% of home resales, down from 48% in October 2011
• Investor buyers : 19% of home resales, up from 18% in October 2011

Given high demand for home resales and shrinking home supplies, we should expect that Randolph County home prices will rise through December 2011 and into early-2012, at least. Recent Housing Starts data supports this notion.

Thankfully, mortgage rates remain low. Low mortgage rates help keep homes affordable.

Visit my website, www.WaynetteAraj.com today.

 

Home Builders Experiencing Heavy Foot Traffic And Higher Sales Volume

In another good sign for the housing market, today’s home builders believe that the housing market has turned a corner.

For the third straight month, the Housing Market Index — a home builder confidence survey from the National Association of Homebuilders — reported strong monthly gains.

December’s Housing Market Index climbed 2 points to 21 in December after a downward revision to last month’s results. The index is now up seven points since September 2011, and sits at a 19-month high.

When home builder confidence reads 50 or better, it reflects favorable conditions in the single-family new home market. Readings below 50 reflect unfavorable conditions.

The Housing Market Index has not crossed 50 since April 2006.

The HMI itself is actually a composite reading; the result of three related home builder surveys. The National Association of Homebuilders asks its members about their current single-family home sales volume; their projected single-family home sales volume for the next 6 months; and their current buyer “foot traffic”.

The results are compiled into the single Housing Market Index tally.

In December, builder survey responses showed strength across all 3 questions :

• Current Single-Family Sales : 22 (+2 from November)
• Projected Single-Family Sales : 26 (+1 from November)
• Buyer Foot Traffic : 18 (+3 from November)

These results support the recent New Home Sales and Housing Starts data, both of which show an increase in single-family sales, and a decrease in new home housing supply.

When demand rises and supplies fall, home prices climb.

It’s also noteworthy that the Housing Market Index put buyer foot traffic at newly-built homes at its highest level since May 2008. With even more buyers expected to enter the market, new home prices are expected to rise across Asheboro in 2012 — especially in the face of shrinking home supplies.

For now, though, with home prices stable and mortgage rates low, buyers can grab “a deal”. 60 days forward, though, may be too late.

The Spring Buying Season unofficially starts February 6, 2012.

To get a jump on new home shopping, visit my website to search the MLS at www.WaynetteAraj.com

Great posts worth seeing from Waynette:

• Why My Clients Get the Best Deal
• Who Owns My Mortgage?
• Showcasing your Home with a Virtual Tour