Inducements to Buyers Agents on the Rise?

It is only fair that consumers know about incentives offered to their agents.
This applies particularly to commissions, bonuses, and spiffs offered to buyers agents by builders, or resellers, who offer fat checks to agents to drive traffic to their subdivisions or resale homes.
Nearly 90% of resale listings in Wake County offer me 2.4% of gross contract price as my commission for bringing a successful buyer
Many builders offer 2.5%.
My Buyers Agency agreements all stipulate either a 2.4% or 2.5% Expected Compensation.  I always inform the Buyer client if I am offered a higher pay from “across the table.”
And, I am seeing an increase in higher offers dangled in front of me, if I will bring my client to contract with a builder.
For example, I just received this email from a builder’s representative:

Hi Mike,

“XYZ” is offering 4% commission on all 5 quick move-in homes at “XYZ Development” in “Lovelytown” if they can close by the end of November. That’s BIG money.

As an incentive to attend our luncheon this Thursday 9/14 from 11-2pm we’re offering a $25 gift card for the first 10 agents to arrive. In addition we’re having a drawing for 3-$50 gift cards for touring our quick move-in homes.”

I have a file of many offers like this, from many builders, collected over the last few months.
Transparency in ethics, and current Buyer Agency regulation, require that I disclose these incentives to my buyer clients ASAP, and definitely prior to writing an offer for them.
A buyer should rightfully know, early and clearly, that I stand to reap an increased financial benefit for guiding them, or pressuring them, to purchase any property.

I remember well in 2009, when the market was completely reverse of that we have experienced over the last couple of years, when we bragged about getting contracts in less than 3 months on the market.
And, sellers were desperate.
I saw buyers agent commissions as high as 8%.
You read that right.  “8% of contract price.”
Now, THAT is really BIG money.

I showed a new house in a subdivision where the builder was offering me 4.5%.
And, in follow up, the on-site agent whispered conspiratorially to me, “And, Mike, we want to take care of YOU, too.  I’m sure I can get you more money, if we can get your buyer under contract.”
All I could think was, “EEEwwwww!  So glad my buyer has no interest in these homes.”

I am seeing an uptick in these bonuses and increased commissions, usually in outlying areas outside the Hot Hot Hot Cary, Raleigh real estate market.
Builders want contracts and closings before the end of the fiscal year.  Help those top and bottom lines, and get more houses coming out of the ground.
This happens every year.
I don’t see anything unethical in their actions.  Ethics?  That is my responsibility, and I can choose to be transparent or conceal my motivations from a client.
Transparency, ethics, integrity, clarity.  It’s a package deal.

Triangle Real Estate Forum? Free Real Estate Advice? Why? I say, Why Not?

Visit Zillow or Trulia. Watch people with reasonable real estate questions being offered no help as they are routinely pestered and solicited by hordes of real estate agents resembling Biblical swarms of locusts. I did. And I thought there MUST to be a better way to help consumers with general real estate topics.

Enter the Triangle Real Estate Forum.

I picked up some world-class forum software, had it installed on a server, did a few minor tweaks, and opened it up to anyone who has questions to ask, or answers to give. All manner of discussion is welcome. General agency topics, sharing of Triangle regional information. Information about our towns and cities. Cary or Carrboro. Raleigh or Durham. foreclosures. Short sales. Luxury Condos or affordable Townhomes.
But, the forum is designated a “Safe Place” for visitors to ask questions and discuss topics, No Hassle style.
No solicitations for business are allowed.
No advertising.
No “Contact me for more details.”
No feeding frenzy on the poor visitor who says, “Help! I was just transferred to Raleigh and we need a 5 bedroom home in a great neighborhood, with a home-buying budget of less than $600,000. Where should we be looking?”
Just help and information. No strings attached.

It’s not for everyone. Many real estate pros cannot bring themselves to give away “free advice.” So it goes. Those are the rules.
Drop by and check it out.

Realty Arts, LLC: A New Name. Same Real Estate Service Philosophies

“Do you sell homes in Raleigh?” used to be a common question. Or homes in Apex? Or Morrisville? Or Holly Springs?
Concentrating marketing near my home in Cary, and my website: CaryRealEstateSales.com worked together to make the questions quite reasonable.

And, Yes. I sell homes in Raleigh, Cary, Apex, Morrisville, Holly Springs. Yes, I sell homes in Durham. Chapel Hill, too. Garner. Yes, I sell homes in Chatham County. Etc. I sell homes all around the Triangle.

I opened as an independent real estate broker in December, 2012, leaving KELLER WILLIAMS® Realty in Cary behind after 7 great years. And in February, we formed the LLC, Realty Arts, LLC. I wanted something catchy and not anchored in one town or geographic local area by its name.
New domain name: www.RealtyArts.com and more good real estate stuff to follow.

My focus group (friends and family) was somewhat split on “Realty Arts.” Some liked it a lot. And some, a LOT less. “What do Real Estate and Art have to do with each other?” and “It sounds like you are selling paint,” were two comments.
Well, think of other great strong real estate companies. What about “Century 21” or “ERA” or “Zillow” or “Trulia” screams “real estate?” The words alone don’t do it. It’s their marketing that puts their message and meaning into your mind.
“Oh, yes. If you market your brand, it will have meaning to the public.” Sure. McDonalds, Coca-Cola, Honda, you name it. And, “Realty Arts” already has “realty” in it. Off to a good start!

Regarding “Arts.” Besides focusing on an artist’s palette of oils, or acrylics, or clay, landscapes or portraits or statuary, I am focused on the skills attained through study and practice that will help me be a great Realtor®.

The Art of Service.
The Art of Negotiation.
The Art of Home Sales.
The Art of Poise.

The list of skills that can be developed to an Artful level goes on and on.
Study + Practice + Skill + Application = Service.

I had fun with a client this evening, referring to myself as “Realty Artist, Mike Jaquish.” Then, I thought, a lofty goal to attain. Why not?

Is the Fed Fooling us and fueling an uncontrollable inflationary rebound?

Prof. Michael Bordo interviewed by MarketWatch reporter, Greg Robb:

Did your eyes glaze over in the middle? Or at the end where Professor Bordo says he fears the Fed will wait too long to let rates increase?
Watch it again. You have time.

How does this relate to home sales in Cary, or elsewhere for that matter? I think it ties back to my post of October 28, 2011, “Creating Urgency? Or, Raise Interest Rates to Sell more Houses?” where I mentioned the point made by a client that the Fed has removed all urgency from the real estate market with prolonged artificially low interest rates.
Real estate agents who are working their tales off to “create buyer urgency” may be surprised to realize how hard the Fed is working against them by holding rates low for another year.

Sold. 1756 Laurel Park Place, HUD-Owned Home, Cary NC







This one is Sold….HUD-Owned Home

Great Value on this HUD-Owned Home



Case Number 387-029530




At $248,000, this home is certainly one of the best values in Cary NC, priced well below most recent newer 4 bedroomhome sales.


This HUD-Owned home is just waiting for your offer. You need a HUD-Registered agent to write and present it.


I am a HUD-Registered agent and can show it and write up your offer. Bidding is open daily for owner-occupants, non-profits, and government agencies.



More information from my No Hassle Home Search.


This nearly new home has 4 bedrooms on a quiet culdesac, stainless steel appliances, wood flooring, low maintenance vinyl exterior, a great two car garage, 2 1/2 baths, a sunny patio, and a great floor plan flooded with light from many windows.


Lovely Home!



Built in 2009, this home is only 2 years old, affordable, and ready for a new owner to love it.





Recent Sales in the Neighorhood as Recorded at Wake County.






Triangle MLS Buyer Full Report

Not yet opened up to invester bidding. Owner-occupant or non-profit/government only.


Call or email me to see it and write it up!


Mike Jaquish, REALTOR®



919.880.2769




http://caryrealestatesales.com/



Broker Associate
KELLER WILLIAMS® Realty Cary NC

 
 

Fair Housing logo

QR Codes in Real Estate. Popping up all over Cary NC. 60 Seconds in Real Estate Cary NC

QR Codes are a great marketing tool in Real Estate and are popping up all around Cary NC.



QR Codes in Cary NC Real Estate

QR Codes in Real Estate

QR Codes in real estate are a hot item right now.  Using QR Codes in real estate marketing is in its infancy, but beginning to gain serious traction.
QR Codes can be used to convey great amounts of information to smartphone users who scan them.

I like the use of QR Codes for offering GPS coordinates, and since most smartphones have GPS capability, that seems like an efficient use.
But one can also use QR Codes to offer purely real estate data and information.  A listing agent can connect buyers to photos, flyers, documents, and make it easy for buyers and buyers agents to gather data they need to write an offer on a listing.

So, I am seeing more QR Codes on real estate listings in Cary.

One criticism of QR Codes is their industrial/utilitarian appearance.  Some folks call them "ugly."  There is little doubt that, with some care, a real estate agent can present an appealing QR Code.  They may never be confused with seascapes by Monet, but QR Codes can look better. The video runs nearly two minutes, but “60 Seconds” just didn’t seem adequate: 


Home Buyer Dealbreakers and Smart Pricing. 60 Seconds in Real Estate Cary NC

Buyers look for items that are dealbreakers for them. When deficiencies cannot be cured, smart Sellers and their listing agents price homes accordingly.





Buyers and Dealbreakers

Buyers will often cite a "dealbreaker" when considering a home.  In Cary, NC, some of those items are steep driveways, proximity to large powerlines, proximity to busy thorofares, railroad tracks, or excessive airplane traffic.

Some buyers are willing to work with a home that has only a single negative feature, but when they add up, those buyers often lose interest.
A few years ago, I listed and sold a home with a steep driveway, powerlines and a railroad behind it.  How can that be overcome?
We have a saying in real estate, that "Price fixes all deficiencies."  In other words, when a home's price recognizes the diminished value created by excessive incurable deficiencies, and there is an affordable home with otherwise great features, there will be a buyer.

Smart home sellers and their listing agents in Cary will take negative items they cannot change into account when pricing the home for sale.

 


Cary NC Closed Sales 7/17/11, 60 Seconds in Real Estate, Cary NC

Closed Existing Home Sales in Cary NC through 7/17/11

I just ran the numbers on Closed Sales in Cary for the 30 days ending Sunday, July 17.

Disregarding New Construction
127 Resale Homes Closed

Average Listing Agent Days on Market were 87
Average Cumulative Days on Market were 104
Shortest DOM was 2 days
Longest Cumulative DOM was 713 Days.
30 homes went Under Contract in 30 or fewer days.

Average Sale Price was $299,604
High Sale Price was $950,000
Low Sale Price was $65,000

Average Sale Price was 96.1% of the last Listing Price.

So, Sellers are getting homes Closed when they prepare them for market, price them right and hire a good listing agent.
Yes, the Cary NC real estate market is soft, but it works when aggressive Sellers put their best foot forward.

Expired MLS Listing? I’m sorry to hear it! 60 Seconds in Real Estate, Cary NC

Expired Listing? How can I help?





Expired Triangle MLS Listing?

If you have ever had a home on the market, with a Triangle MLS Listing that expired before you were able to sell your home, you probably experienced an onslaught of REALTOR® traffic, with a wide variety of professionals telling you they had the answers to your problems.

Me?  I don't call folks whose listings have Expired or been Withdrawn.  I figure they are deflated enough.  Yet, I have had some success selling homes after others were not able to.  Some times it is just because my photos are better than a lot out there, or because I do a better MLS presentation, along with some more aggressive internet marketing.  Sometimes it is because I tend to keep an eye on my vacant listings and primp them a little so they show well.

Whatever.  I'll keep doing what I do:  Servicing clients' needs.
And I will keep not being a nuisance to people who are on the Do Not Call list, or who are besieged by hopeful potential listing agents.

But, if I can help…

 


Comps, Competition, and Compelling Pricing

Cary Home Sales set comps. Competitive pricing compels buyers to buy.



Comps, Competition, and Compelling Pricing

Comps, Competition, and Compelling Pricing

Everyone wants to see "Comps," comparable closed sales when fixing a price for a new listing.

I agree.  We have to begin with the end in mind, and the "End in Mind" is a closed sale.  A contract price MUST be supported by market activity, specifically recent, comparable sales that have closed.

However, a smart seller and smart listing agent will also consider "Competition."  And that will include properties outside the specific neighborhood where the home to be listed for sale is located.
See, while the neighborhood activity must support the sales price for appraisal purposes, Buyers have myriad choices outside the neighborhood. 
A home worth $400,000 must compete with and draw attention away from other $400,000 choices.  We just cannot tell Buyers that they can only shop one neighborhood.

So, Sellers have to be competitive across a broader area, perhaps a school district, or a local geographic area in a county or town.
In Cary, and Wake County, NC, the Wake County Public School System manages all public schools at the County level.  Town boundaries do not indicate school assignments, and it is not uncommon to see a neighborhood, all or part, reassigned to another school
So, parents will shop various school assignments, attempt to grasp stability in assignment, and affordable neighborhood options. To do so, they may look in a ten mile radius, or farther.  That search may take them out of Cary, and into Morrisville, Apex, Raleigh or any other local municipality. 
That is why it is smart to consider a wide area of competitive Active listings when pricing a home.

Comps, Competition, and Compelling Pricing, via 60 Seconds in Real Estate, Cary NC: