Unhappy home buyer, feeling misled on price, sues agent!!!

Hello – thanks for dropping by my blog. For the past 24 years, I’ve been in the fast paced, up and down world of real estate. I’ve sold Raleigh real estate and Cary real estate and thousands of homes from Chatham County to Johnson County and beyond.

I also own one of the most productive real estate offices in Wake County , Remax One Realty. Also, I am very proud that the team I lead, The Marti Hampton team is the #1 team for Remax on the entire East Coast and #4 in the US. Remember, no one sells more real estate than Remax – so it’s fair to say that I’ve been roaming with the “big dogs” in my industry for quite a few years now.

This week, we’ve got news from California (article link attached at the bottom) that a home buyer is going to sue their agent because they bought a home and the home promptly “depreciated” in value. When reading this article, I felt, the most serious accusation made against the agent was that they “hid information that similar homes in the neighborhood were selling for less”.

While not ready to pass judgment on a case I know so little about, I do agree that withholding information pertaining to the value of a property is a serious matter. This article prompted me to write 5 things that I would look for when hiring a real estate professional. In putting these ideas together, I imagined that I have moved to another town (forbid the thought) and I knew little to “zero” about the area. So here are the top 5 things I would look for in choosing an agent.

#1. I want an agent on a team who's Team Leader has been successful for over 10 years. In other words, I want some “tenure”. I don’t have anything against rookies, but I don’t want a doctor fresh out of med school doing my heart surgery and I don’t want a rookie agent giving me advice on neighborhoods or homes. A buyers agent that is under an experienced Team Leader will have much more knowledge, insight and resources at easy disposal. Of course, I do know some facts that help me form my opinion.
Fact: Over 58% of all agents have been in real estate for less than 5 years.
Fact: The average career life of a newly licensed agent is 18 months.
Fact: The average agent in the Triangle or anywhere else in US sells less than 8 homes per year!!
Fact: An agent that is too hungry for a sale (as rookie agents often are) is likely to tell me what I want to hear rather than what I need to hear. I want an agent that will tell me the hard stuff. Here is a rule I live by, “What you don’t know won’t hurt you – it will kill you”. Whether maintaining your health or a healthy portfolio of real estate – get the facts by seeking out expert advice.

#2: I will pick an agent that does not need my business. Why? Success comes with a price and I want a successful agent on my side. An agent that has knowledge about the real estate market where I’m getting ready to invest my hard earned money will be worth the wait and I will wait for the best agent in town.

#3. I will sit down and go over my goals with the agent and ask them to represent me, either as a buyer’s agent or a seller’s agent. That does not mean that I would refuse to view homes that would entail the agent acting as dual agent. If the agent is successful, I would expect them to have a large number of properties for me to consider. I will hire the agent and sign a buyer’s agency agreement. By doing so, I will to take away the threat of my buying elsewhere – therefore if I show loyalty – the agent will go the distance with me, even if I’m not the fastest buyer in town. In advance, we will go over my expectation of their service and they will give me guideline for being their client.

#4. I will ask a lot of questions and expect my agent to give me a “crash course” on local appreciation, top neighborhoods, top schools districts, local trends, and I will ask point blank where they would buy a property for the money I plan to spend. I will take their recommendations and warnings seriously. I will want to know what homes sell the fastest and are most popular.

#5. I will look for an agent that is backed by a team. If I choose an agent, I want their full attention when I need it and don’t want them distracted by another “transaction” when we are together. When we close out the property, I’ll be sifted to the expert on their team that will guide me through the inspection process with more detail and accuracy than any exceptional agent could possibly provide. (A “Jack of all trades is master of none”)

These are my tips and I hope they are helpful. This is what I would do if I moved to another town. I would not represent myself – I would seek a professional. Here’s another hint. Even if I lived in the town and thought I knew exactly what I wanted, I would still seek a great agent to help me achieve my goals.

Now, you may think, sure Marti – you are in the real estate business, that’s why you think this way. Would it surprise you to know that the most successful people believe that the right agent makes all the difference in your bottom line?

Anyway, enjoy the article. After I read it, I wondered if I could sue the girl that sold me the “age eraser” cosmetics that did not work! I’ve also considered suing the minister that married me and my husband (joke honey, just a joke).

Have a great day – and remember buy Raleigh and Cary real estate today, because by the time you hear that the prices are going up – it will be too late to get some of the extraordinary bargains that are available in today's market.

Thanks for stopping by. God Bless you and yours. Please stop by again very soon when real estate is on your mind.

Largest single drop in interest rates in over 20 years!

Hello – thanks for stopping by my blog today. Question – If it weren’t for real estate/mortgage news, would we have any news at all? I don’t think so these days. The Fed made the bold move of dropping interest rates by a whopping .75% this week. This was the largest single drop in rates in over 20 years. What will all this mean to Raleigh and Cary real estate owners?

On days like this, I think it’s important to go back to the ol’ mortgage primer and figure out exactly what all this news means to you, to your mortgage, to your home equity line and to your home’s financial future. I’ve said it before, and I’ll say it again: the 30-year fixed is not tied to short-term treasuries.

Fixed mortgage rates are tied to long-term bond yields that move based on the outlook for the economy and inflation. And guess what? The long-term outlook for the economy isn’t rosy right now. .

This week’s rate cut does affect short-term adjustable rate mortgages, but not really as much as you might think. Why? Because this rate cut was already priced into the market, maybe not three quarter's point, but definitely a half-point. So if you are facing a reset on your ARM, you’re in much better shape today than you were just six months ago.

For example, if your rate adjusts Feb. 1st, and your ARM is pegged to the 1-year treasury, than your reset is going to be to 5.25 percent as opposed to the 7.5 percent that it would have been in August. That’s going to make the payment much more manageable.

So does this cut stem the foreclosure crisis? Maybe a bit on the margins, but not really, and here’s why: the bulk of the folks facing foreclosure because they can't make their monthly payments have no equity in their homes and no money to put down on a refinance.

While rates might be lower, this is a market where lenders and investors are much more aware of risk and will gravitate toward borrowers that represent less risk. So many folks will still find themselves in trouble. For people who are having trouble paying the initial rate on the loan, forget it. No help there.

As for those looking to buy a home, that is, get a new mortgage, while ARM rates may be lower, the mortgage landscape is still a far far different tundra than it was just a year ago. You can’t do a stated income loan anymore, and you can’t do 100 percent financing. Tighter standards don’t change with a rate cut.

And I want to add my two cents here about a home equity line of credit. Yes, the rates are lower now, but I really don’t think that means we should all start using our homes as ATM’s again, which is what got us all in trouble in the first place. This is a time to pay off debt, not to gather more. The housing market is still in trouble.

The statement from the Federal Reserve this morning: “incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.” We all know the price correction in housing is still underway with home prices across the nation (yes, I know, some markets worse than our local Raleigh and Cary real estate markets) expected to fall further, so this is no time to put your home in more hoc. Just my two cents, which I’m putting in the bank as we speak.

PS. Remember, Buy Real Estate while it is "on sale" - it will not last forever. God Bless you and yours. Drop by again soon.

Wakefield- Prestigious golf course community

Hello - thank you for stopping by my blog today. Dani Underwood has reviewed Wakefield Plantation. She has graciously written an overview of why we think Wakefield stays at the top of the list of that mysterious "Location - Location- Location" that most realtors speak of nearly every day:

When a brochure or advertisement describes a new community as “an all-inclusive community”, I think one might easily imagine a formalistic, planned, maybe emotionless outlay of house … after house … after house.

However, nothing could be further from the truth, as I saw when I entered WAKEFIELD PLANTATION. Although Wakefield is such an animal, it really has the feel of an over-sized, snuggled-down neighborhood – albeit, one with many, many amenities!

Wakefield is a community situated on over 2200 acres of land just outside historic Wake Forest. The vast size and conveniences of it makes it like a mini city, yet without all of the pandemonium of a true city. On the other hand, for those who do desire all the conveniences of city living, it most certainly does provide for those as well. Encompassed within Wakefield is a Health Park with all of the finest medical and dental facilities that any city has to offer. It enjoys a Children’s Center, year-round schools for all children, K thru 12th grade, and it even has its own YMCA. Also surrounding the community are banks, shopping centers and a wide array of pubs and restaurants. And then inside Wakefield you will discover a world-class golf course, plus swimming and tennis clubs and children’s playgrounds.

Yet, even with all of this, as I said, when you enter the community the feeling is one of tranquil country living. This feeling engulfs you, I believe, in large part due to the Developer’s foresight to leave much of the rolling hills within Wakefield in its natural state. It is a hilly acreage from whence Wakefield began, and much of those hills and sloping land remain throughout all of the various smaller neighborhoods (or pods) within Wakefield. Even more important to its feeling of country living is the fact that many, many of the trees and foliage were left standing and intact and houses built around them – as opposed to just going in and bulldozing all natural elements down to the ground. A novel concept it would seem for many new developments these days! And, finally, throughout the community are walking trails that meander in and all of the pods within.

And quite a few of these neighborhoods within Wakefield Plantation there are! Anyone can find the type of neighborhood to suit his or her tastes. There are single-family homes from $500,000.00 up to over $1,000,000.00; there are townhomes, villas, apartment homes and custom-designed estates. You can choose a home on the world-class golf course, a home or villa overlooking a lake or a home that feels like it’s tucked in the edge of the woods. You can choose a home with a basement, a home with a large lot or one with no upkeep involved at all.

You can choose from over 20 different neighborhoods with the community of Wakefield Plantation. Neighborhoods such as The Villas of Wakefield, which boasts golf and water views, large columns and large decks that overlook the lake. Or you can elect to live in a custom home within Fairview Manor; or a smaller home with a basement in Savannah Village; or if you don’t want that daily yard upkeep you can choose to live in a townhome that boasts screened-in porches to sit and view the surroundings at Calloway on the Green. And there is The Columns for those who might be interested in a gated apartment neighborhood, or The Rosemont and Wakefield Estates for anyone looking that large majestic dream home, and within these pods you have your choice of having very, very large and wooded lots or smaller lots for a homier feel. So, as you can see, there is a vast array of homestead choices for almost everyone.

Wakefield truly is a way of life and that would seem to be what you would be choosing. It is a place where you can literally have everything at your fingertips. Oh yes, and even a church – Wakefield Church is also located within this community as well. However, if Wakefield Plantation can’t provide for all of your needs, it is located just 6 miles from Triangle Towne Center Mall and other numerous outlet malls. It is also just 5 miles from I540/I40, which will get you to Raleigh or the Research Triangle area or Raleigh-Durham airport in just a matter of minutes. And, too, there is Falls Lake right down the road with all of its recreational opportunities.

At WAKEFIELD PLANTATION you have a small town in all practicality, but without the stoplights, noise and hustle and bustle; yet you’re close enough to all of these other conveniences to be there in minutes should you feel the need. A pretty notable combination, I say!

Hope you enjoyed our review of Wakefield. God Bless - drop by again soon.

The New Law Congress just passed and the effect on Home Sellers

Hello - thanks for stopping by my blog today. A few days ago Dannette Underwood, as licensed attorney on my team, wrote a summary on the new law that Congress just passed. Since this is breaking news - I want all my clients to know what it means if they should know of anyone that is faced with loosing their home:

ATTENTION SELLERS!

Always here at The Marti Hampton Team, Remax One Realty, we strive to keep you, our Sellers, apprised of any pertinent news in the Real Estate Industry that may help you in this process of selling your home.

Recently, our fair Congress passed legislation that can, in fact, help many Sellers who have been attacked by the adjustable rate market of a few years ago or those - that because of unfortunate situations or circumstances beyond their control - have found themselves unable to remain current on mortgage payments.

This is the information we want to impart to you today . . . the passing of the Mortgage Forgiveness Debt Relief Act of 2007. In a nutshell this law can remarkably help those Sellers who are or may be faced with the possibility of a Short Sale on their property.

First of all, a SHORT SALE is one where there is not enough money in the Offer from a Buyer to pay off the Seller’s mortgage (or mortgages) in full, along with all of the other costs involved in the sale, and we then work with the Lender to negotiate a sale on the property anyway so that most of the mortgage gets paid. This often happens when a Seller has become delinquent in the mortgage payments, so there is a lot of additional interest and late fees that are attached to the payoff. Before this new law was passed, if a Short Sale was had on a piece of property, the Lender could then take the amount that it did not receive as part of the Short Sale and send a 1099 to the Seller, who in turn would then have to show this shortage as Income on their tax return! So, you wonder – what’s the point in even trying to do this, then, right?!

The new Mortgage Forgiveness Act amends that part of the Internal Revenue Code which allowed this to happen and says, nope – Lenders cannot treat this shortage in the full payoff as income to the Seller, if the house is their primary residence; so once the Short Sale is finalized the Seller has NO OTHER FINANCIAL RESPONSIBILTY to the Lender!

So, now, instead of feeling like a Seller may not have any alternative but to just file Bankruptcy or let the house go into Foreclosure, there is “a light at the end of the tunnel” here – the house can be sold, the Seller’s credit can be saved (or at least just blemished and not ruined), and there will not be additional income the Seller has to report on next year’s tax return!

Great news for Sellers who find themselves in this unfortunate situation!! So, if this does or could apply to you, please use this knowledge and this new law to your benefit. Or, if you happen to know someone who might find this information beneficial, please pass it along to them.

(As always, please consult a tax specialist when dealing with those IRS laws!)

Stop by next time for my "forecast" for the 2008 Triangle housing market. God Bless. Marti