I recently represented a buyer in the purchase of this oceanfront second home on Topsail Island, pictured above.  The house was originally listed for $599,900, features beautiful ocean views and is tucked away in a quiet, private are of Topsail Beach, NC.  I was able to negotiate a sales price of $510,000 with some seller paid closing costs. The key to negotiating this transaction was understanding the market, how many homes are available, how long the property had been on the market.  Special thanks to the listing agent for being a real professional and collaborating with me on getting the deal done!

To read what the buyer had to say about my services, CLICK HERE.

Unbelievably the first quarter is already over!  Here’s the Wilmington area market by the numbers:

• 1066  is the year of the Battle of Hastings, but for the purpose of this blog, it is the number of transactions (including land, multi-family, and boat slips) closed in the first quarter 2012.  This represents a 9.56% increase in the number of transactions closed in the first quarter of 2011

• 497 homes (these are single family residences only) were sold in New Hanover County during the first quarter

• 5.46% increase in the total volume sold in the Wilmington market

• $210,490 is the average sales price for the market, representing a 3.74% decrease compared to the average sales price in First Quarter 2011 ($218,664.62)

• 403 Realtors sold anything, which represents approximately 25% of the total board population

The meaning behind these numbers is important.  The increase in number of transactions and volume indicates that we have seen a turn in the market.  It doesn’t necessarily mean that we are at THE bottom, rather that the market is turning and we are consuming inventory.  Consumption of inventory is massively important in getting back to a balanced real estate market.

The relatively small percentage of agents that have sold anything is a good indicator of who is really in the business and who’s just along for the ride.

Hope this snippet is helpful and, of course, please let me know if you have any questions!

Special thanks to my business partner, Joe Williams (Co-Founder of Keller Williams Realty) for sending his most recent thoughts on the economy to me.  I thought you’d appreciate learning his perspective!  Joe Writes:

“I found myself at the doctor’s office this morning, perusing a copy of TIME from last October.  As I was reading the weekly magazine’s content, which is normally a “snapshot” of the previous week’s events and predictions, I was struck at how completely off-base every economic prediction was just six months hence! To say that everyone’s dire predictions were so out of touch with our current situation was an exercise in the reality of assuming things.

I have an advantage many of you do not, and that is 34 years of watching how real estate and economies interact.  What is amazing, and I’ve seen this before, is how short term projecting is almost always fraught with inaccuracy.  Nassim Taleb, in his compelling book, The Black Swan, extols on “what an impossible task it is to foresee the short term, and yet people constantly get caught doing the wrong things because of it.”

While only six months ago, economists were warning about the “double-dip,” the positive rumblings we all see right now are light years ahead of what was being portrayed. And this market will actually pick up steam because the greatest mover is what sits between everyone’s ears, not what politicians or economist think.  Consumers drive the American economy, always have, always will.

This election year will also be quite different from past election years for a couple of reasons.  In 2008, it was in the Democratic Party’s best interest to portray the economy (via the media) in a terrible light, although that was not entirely true.  Their strategy worked.  But once elected, the media had so thoroughly instilled such a “bunker” mentality, that the economy was doomed.  The resulting recession was a logical result.  This time neither party is going to portray the economy in such a harsh light, so that is a good sign.  One party will be trumpeting the good news, and the other hesitant to look out of step.

Add to this the specter that interest rates, long dwelling in the cellar, will start to rise with the first hints of inflation, and there will be a lot of closet buyers that finally decide to act before rates get too high.  The good news is that just three years ago everybody thought that interest rates of 5%-7% were great rates.  So with any luck at all, we may be able to come out of this on somewhat of a “roll” for the future.  I would not be surprised to see this happen sooner, rather than later.  We’re already seeing the signs of shortages long in the making.  Finished lots, apartments, and rental housing, just to name a few.”

The real estate market here in Wilmington has DEFINITELY picked up.  I’m as busy as I’ve ever been.  Stay tuned for a review of the first two months of data!

Several months ago, I posted 8 Stupid Realtor Tricks in an effort to warn consumers about things that I’ve seen agents do that could confuse and take advantage of consumers and clients.  I’ve received some criticism about the post, specifically Item#2, Alphabet Soup and want to clarify my opinion about Realtors and designations.  For my fellow Realtors that I may have offended, my apologies.  It certainly takes quite a bit of effort to earn designations and if you’re interested in reading what it takes to earn those designations, you should visit www.NAR.org.

This particular component of the post was based on the fact that I’ve seen many Realtors with designations list them out with no further explanation, especially on their business cards. I’ve always felt that they should actually spell out the designation, ie Accredited Buyer Representative so that it makes some sense. My thoughts are that it’s confusing to consumers (to see a name followed by ABR, SRES, SIOR, CDPE, MBA, JD).  And yes, I’ve seen a card with all those designations on it.  Further, I think that a Realtor who has earned the designations doesn’t get the full benefit of a client understanding what those designations mean by just using the various initials for their designations. Obviously the advent of Internet and social media can help create a better understanding (on the part of the client) as to how using a agent with various designations will be beneficial to the client.

To be clear, I mean no offense to my fellow Realtors that hold these designations.  Many of these Realtors have worked hard to earn the designations and are GREAT agents, representing their clients well.  Many aren’t.

Ultimately my point is that consumers should be extremely cautious in choosing a Realtor. In my own experience, (as both Realtor and as a consumer) Realtors with designations are not necessarily good Realtors nor are they always wise choices as a representative.  Frankly, I’ve seen Realtors with those designations behave unethically and, in some cases, illegally.  I recommend that consumers should cautiously and thoughtfully choose a Realtor and spend more time looking at the character of the agent and their track record than the letters behind their name.  I’d recommend that about any professional, for that matter.

In this video, CB Johnson of Fine Coastal Living, turns things over to Mark Williams to show us exactly what we should be looking for in inspecting our homes. Whether you are looking to sell your house, buy a new home, or just make sure your current home is maintaining its value, inspector Mark Williams walks us through an inspection and tells us what to look out for.

In this video, CB Johnson of Fine Coastal Living, turns things over to Mark Williams to show us exactly what we should be looking for in inspecting our homes. Whether you are looking to sell your house, buy a new home, or just make sure your current home is maintaining its value, inspector Mark Williams walks us through an inspection and tells us what to look out for.

In this video, CB talks with inspector Mark Williams about the importance of inspecting your home and why a good inspection is vital to a solid real estate transaction.

Many companies teach their agents to use these tricks to try and create more business. I’d like to highlight them both for their ridiculousness and to teach you how to see past them.

The question boils down to whether or not agents are consultant-based or transaction-based, whether they want to help or they just want to make money.

Here are the 8 stupid Realtor tricks to look out for:

1) Using their listings as BAIT- trying to make consumers call into the office to ask the sales price by doing one of the following:

• Intentionally leaving a flyer box empty
• Intentionally leaving the price off of a flyer
• Buying listings (see below) just so that they can pick up buyer leads.

2) Alphabet Soup- ABR, SRES, SIOR, etc. Really just a jumble of letters after their name. Most consumers have no idea what they mean and most Realtors haven’t kept their designations updated or paid their renewal dues.

3) Advertising a property as “Great Deal, Act Now, Won’t Last” even after its been on the market for 6 months….really? I can see it won’t last long. Obviously. Umm, update your marketing.

4) Calling FSBO’s and saying “I might have a buyer for your home”. This is a misleading tactic that agents use to get their foot in the door and then follow up. Relationships ought to get started on a foundation of honesty, not manipulation. If the Realtor actually has a client, that’s one thing, but if they are falsely getting the FSBO’s hopes up, they aren’t really coming from contribution are they?

5) Guaranteed Sale Programs- these are designed ONLY to get Realtors appointments to talk with potential sellers. Always ask “how many of these homes have you actually bought?” In reality most Realtors using these programs are only willing to pay something on the order of 50-60% of market value and they will usually charge a commission.

6) Buying Listings- telling the seller what they want to hear on price then “beating” the seller down on price over time. If a Realtor guarantees that they can get a certain price, put a clause in the listing agreement that if they EVER ask for a price reduction the Seller has the right to terminate the listing.

7) Consistently, repeatedly posting their listings to Facebook- this isn’t interesting or fun and is really just another version of SPAM

Using outdated pictures- ummmm, if your picture doesn’t look like you, then get a new one. Period. End of story.

Good business is built on trust. If you see any of these tricks, either your agent doesn’t have a mind of their own and they’re just doing what their broker told them to do, or you should run because they’re being dishonest from the start.

This video features a wonderful  2 bedroom, 2 bath condo in Townview at Mayfaire (click here for more detailed information) and begs the question, Why Rent when you can Buy??

As I pointed out in “How to Save $69,000….NOW,” this is probably the BEST time to purchase real estate that most of us will see for the rest of our lives.  The combination of interest rates and falling prices make for huge opportunities for buyers.  Unfortunately, some folks aren’t really aware that the opportunity exists. Why?  Because they still think that renting might be the best financial option for them.  They think this because, historically, it often costs less per month to lease a home than buy one.  HOWEVER, if you would like to stay in your new home for at least 5 years, then you should BUY NOW.

Truthfully, it’s more expensive to rent in this market, especially in areas like Mayfaire.  Take, for instance, this listing at 6831 Main Street, #228.  On average, renters are paying between $1600 and $1800 per month to lease a condominium.  A quick look at the offers at the Google Mortgage Advisor shows that a buyer would pay between $1389/month (0% down VA Loan) and $1111/month (20% down), depending on the type of loan they get.

Why is this the case?  Well, remember, as I pointed out in “Death by a Thousand Price Cuts” prices are falling.  This means that many of the Landlords purchased their condo when prices were much higher and are trying to get enough money in rent each month to cover their mortgage payment.

So, if you think this is the right move for you, please contact Richard Lytle of Monarch Mortgage (click here for his website: Wilmington, NC  Mortgages).

In all of my years of experience in the real estate world, I’ve noticed that most people fit agents into one of two categories. Either an agent is a money-driven go getter, or if you read my last article, you would know that the other agent makes less than $48,000 a year and is the passive “social media” agent.

But what about the agents that spend thousands of dollars educating people about real estate, handle their practice in a highly professional manner, network with individuals both on and offline, and that make a substantial living executing win-win real estate transactions?

Where is their club? Where is their recognition?

I propose that there is this “third type” of agent. I believe that this is the future of real estate and it has its own set of rules and principles.

The more educated the public becomes about real estate the more they’ll know whether their agent will “cut it” or not. This will lead to less agents, but better agents. This will reset the industry and only this “third type” of agent will survive.

So what characteristics does this “third type” of agent have, and how will it benefit the people they serve. Here are just a few of them:

They spend time to educate clients

This will not be the most efficient thing an agent can do, but it is absolutely necessary in building a long term relationship built on trust and solid real estate transactions. The money-driven go getter makes no time for this, and the extent of their education is a handout, not a full blown blog and platform like this one.

They use social media to communicate, not just sell

The world of social media is terribly misunderstood. It’s nothing more than having a conversation with a friend over coffee, except it’s online. Social media is a platform for communication, and if all you ever do is sell, people will turn you off.

They know their market

Want to know where to find information on school districts? Want to know the best areas to live in for your social life? The best restaurants? The best desserts? The best places to take your kids? These are all things that the “third type” of agent knows. They are heavily vested in their communities and finding the answers to these questions is part of giving a client the best options possible.

If you feel like you’re unsure whether or not your agent is of this “third type”, feel free to leave a comment and we’ll discuss your situation. This blog was designed to help as many people as possible learn more about real estate and your questions will only lead to increasing the value of this platform.

It’s my goal that the people get properly served when it comes to buying and selling their homes. It’s my hope that the entire industry evolves and becomes built entirely on this “third type” of agent.