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.

Get Pre-approved to have a chance in the Cary Real Estate Market.

Craziness reigns in Cary real estate.
But, buyers, if you think you are going to score a new home in a great Cary neighborhood this spring, you are going to have to have a plan.

MLS home listing inventory has shrunk, while demand has boomed. Desirable homes, and even homes of questionable value, are popping off the market.

“He who hesitates is lost,” is the fact of life for Cary home buyers right now.
But, “Haste makes Waste” also comes to mind.

So, buyers need to be methodical, and deliberate. And efficient.
Get funding lined up. Proof of funds for a cash buyer. Solid pre-approval letter from a respected lender for borrowers.
Listen to your Realtor. Get those out of the way.
They are necessary groundwork. Once they are procured, you are in a position to make a quick offer when a home clicks.
And, quickness in deliberation is required!

Buyers’ Market? Sellers Market? Maybe it’s a Ninja’s Market!

Home buyers are noticing that desirable properties, depleted inventory, and great demand are creating multiple offers daily in the Triangle.
Welcome to the Cary NC real estate market, 2013 Version.

We are seeing homes sold with 0, Zero, Days On Market. The Pocket Listing is back. Sell them before they hit the MLS.
We are seeing showings declined on Active listings, and no response from the listing agent. Et Voila! A contract!
We are seeing homes go under contract before photos are posted to MLS.

Buyers’ agents must sniff out opportunity and be ready to turn on a dime.
Like the ninja of old, it can take legendary skills to complete the task. I haven’t developed the skills of invisibility, time travel, or shape-shifting, but they may come in handy.

More seriously, the market was strengthening for sellers and getting more competitive for buyers through last year, 2012. Then the news broke that Wake County Public Schools would resume school assignment by address. And some areas went into hyper-drive. Davis Drive Elementary School and Davis Drive Middle School are two very desirable schools. Historically, homes with school assignments for those two schools have traded at a premium. Confusion over school assignments for a couple of years defused that demand. Now? Buyers flock to homes in neighborhoods that have assignments for both schools.

HUD Home: Sold. 107 Cordell Place Apex NC 27502

107 Cordell Place in Apex is a HUD Home with a great deal of potential and good square footage for the price.

This one is Sold 107 Cordell Place, Apex NC

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HUD Case Number 381-895169            This HUD-Owned home is conveniently located near the center of Apex NC

At $125,000, It is full of potential!

It offers 4 bedrooms,2 baths, 1767 square feet of living space, all on a quiet cul-de-sac.

Two bedrooms on the first floor and two bedrooms on the second floor.

The quarter acre lot is partially fenced, and there is a covered porch and huge deck for enjoying the yard.

See the Buyer Full Sheet from Triangle MLS

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

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

Read “Working with Real Estate Agents” from the North Carolina Real Estate Commission.

Never register on a real estate site to search for your next home.

Try my No Hassle Property Search!!

 

Mike Jaquish, REALTOR®

919.880.2769

http://caryrealestatesales.com/

Broker Associate

KELLER WILLIAMS® Realty Cary NC

 

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HUD Home: 307 Swordgate Drive, Cary NC 27513. Davis Drive, Davis Drive, Green Hope HS

307 Swordgate Drive in Cary is a HUD Home in a great location with Davis Drive and Green Hope School assignments.

HUD Case Number 381-915588

Only $265,000. HUD Home: 307 Swordgate Drive

307 Swordgate Drive in Cary is a cute 5 bedroom home with great potential, and priced at only 265,000, in MacArthur Park.

See 307 Swordgate Drive listing on my No Hassle Property Search.

Great House with a ton of Potential

This HUD-Owned Home offers:

  • 2776 Square Feet
  • 5 bedrooms with a vaulted master suite.
  • 2.5 baths
  • Only 16 years old, built in 1995.
  • Family room, Office/den, and living room.
  • Large sunny kitchen with smooth-top stove
  • Great deck in a lovely and private, fenced back yard.
  • Natural Gas heat
  • 2 car garage.
  • Easy care vinyl siding
  • Convenient location with Daveis Drive/Davis Drive/Green Hope School Assignments.
  • Great Town of Cary services.

Huge Bright Cook's Kitchen

Bright Sunny Kitchen

Dual Vanities and separate shower and soaker tub

Master Bath has separate tub and shower, and dual vanities

Private yard with nice landscaping and deck

Private back yard and large deck

HUD Requires you to use a HUD-Registered agent to write and present your offer. I am a HUD-Registered agent and can serve you as your Buyer’s Agent and write your offer.

Call me to arrange your personal showing of this great opportunity in Cary.

Mike Jaquish, REALTOR®

919.880.2769

http://caryrealestatesales.com/

Broker Associate

KELLER WILLIAMS® Realty Cary NC

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Photos in MLS Listings Carry a LOT of Weight

Poor photos diminish property values

The Price of Poor Real Estate Photography


I was looking at visitor statistics on my No Hassle Home Search
this morning, and one detail jumped out at me.

With over 20,000 page views so far this month, 25%, over 5,000 of those views were in Photo Galleries. I.e., consumers routinely look at the property photos when surfing the internet to search for homes. And I am sure that other agents generate more traffic than I do.
It is not unusual for potential buyers to email me and inquire if more photos are available for someone else’s listing they have found on my IDX. Then I have to explain the nature of IDX services. And, sometimes I find that the Listing agent has used the tax rolls photo, which is NEVER complimentary to the property. Ouch! for that Home Seller.


501 Midenhall Way by Mike Jaquish

501 Midenhall Way from Wake County Revenue Department

Which do you think presents that home better to Buyers and Buyer Agents? I’m picking the top one, the one I shot. And when you multiply those page views I see by the number of agent IDX sites and scraper sites, the impact of poor real estate photos is exponentially increased. Like having a bad product and going international to purposefully gain more bad press on it. Why? Poor photography going viral to diminish property interest? How is that good for home sellers?
Lack of photos, poor photos, etc, actually can be one of the worst marketing investments home sellers can make.




Sold. 200 Onondaga Court in Holly Springs is a nice HUD-Owned Home

200 Onondaga Court is a HUD-Owned home in Holly Springs

This one is Sold. At $210,000 List Price, 200 Onondaga Court has a ton of potential

HUD Case Number 381-937917

200 Onondaga Court in Holly Springs, NC, is a HUD-Owned Home with a great floor plan and an interior flooded with light, a large fenced yard, and a side entry garage on a great corner lot.

HUD requires you to use a HUD-Registered agent to write and submit your offer. I am a HUD-Registered agent and would be glad to represent you as your Buyer’s Agent.

Built in 2000, 200 Onondaga Court offers many desirable features:

  • Great location in a great neighborhood, the Oaks of Avent Acres
  • 2167 square feet, 4 bedrooms, and 2.5 baths
  • Plenty of hardwood floors
  • Granite countertops
  • Luxurious Master Suite
  • Side entry garage with overhead storage
  • Sunny Breakfast Room
  • Two fireplaces
  • Beautiful wooded fenced yard
  • Shady front porch and great rear deck
  • Easy exterior maintenance

See the Triangle MLS Buyer Report.

 

Call or email me to see it and let’s write it up! Currently, bidding is not yet open to investors.

Read “Working with Real Estate Agents” from the North Carolina Real Estate Commission

 

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: 


Basements! Or, no basement. How we roll in Cary NC…

Cary home buyers who want basement homes often have to compromise. Many select finished attics.



Basement Homes in Cary NC

Basements in Cary NC

Cary home buyers from other regions often are shocked that many Cary homes do not have basements, and buyers agents need to do some explaining.

There are several contributing factors to that situation.

1.  Basements are not structurally necessary, so they are luxury priced.  We just don't need them.  In the north and midwest states, it is necessary to excavate footings 4 to 8 feet below grade to get below frost depth.  We only need, by code, to bury footings 15 inches below grade, so further excavation is unnecessary.  And expensive.

2.  Many Triangle areas have high water tables on site.  Water around foundation walls  is more likely to intrude into the interior of the basement. 

3.  Expansive clay soils.  Our soils will expand and contract as they get wet and dry.  This movement can stress walls, and allow more opportunity for water intrusion.

4.  Cost of finish.  It is usually more cost effective to convert attic space and finish it than to create and finish a basement.  And the home buyers benefit from being high, dry and lit by sunlight.

Yes, you can get a basement in Cary NC.  Commonly, it will be a "walk out" basement, also known as a "daylight" basement.  one or two walls will be above grade, with exit doors and windows.  And the lot will have some slope to accommodate this.  Dugout, hole in the ground, basements are extremely rare.

Cary Homes for Sale with Basements

 


Cary NC Market Report, Closed Sales in the last 30 days. 60 Seconds in Real Estate Cary NC

Cary NC Market Report, last 30 days closings.



Cary NC Market Report

30 days of Real Estate Closing in Cary, as of August 17, 2011

Numbers are pretty stable in Cary real estate.  As of today, we closed 123 residential sales in the last 30 days.

Days on Market were 93 for those 123 listings.

Cumulative Days on Market, meaning that the property was listed more than once, were 115.

On July 17, those numbers were 87 and 114.

I pulled out three of the highest DOM properties, and the remaining 120 homes showed 86 Days on Market,
and 102 Cumulative Days on Market.
Fun with numbers…

Average selling price was 0.962 of final listing price.