CaryRealEstate.com | Cary NC | Local Specialist for Cary Real Estate
CaryRealEstate.com Men’s Softball Team brings home the Championship!
Cary, North Carolina is well known for the ‘quality of life’ it’s residents enjoy…One of the many aspects of this, is the town’s recreational and sports opportunities for kids and adults. Check out the town’s official Parks and Recreational website. You’ll find that there are so many ways to be involved in an active lifestyle here in Cary…softball, tennis, soccer, volleyball, dancing, fitness classes and much, much more.
This spring, we at CaryRealEstate.com had the opportunity to sponsor a men’s modified (think stealing bases and faster pitching) softball team. Claire’s son Brad was the catalyst for the group of guys who eventually came together to form the team…some were co-workers from the Cary Post Office, other’s were aquaintances from church, with friends and friends of friends rounding out the roster. While the teams’ record showed as many losses as wins (sometimes more) going into the final weeks of the season…they continued to persevere and found the will to win in the playoffs. The team attributed much of their success in the final rounds to a loyal fan, Chris Rivera who’s presence seemed to guarantee a win. He was given a team jersy and implored to be at each game…he came and they won!
So…a proud “thank you” to the guys on the team, to the team coach, Harlen Greene and his wife, Roberta and to Brad Hanes for giving us the chance to sponsor what turned out to be a winning season! You guys rock!
CaryRealEstate.com Spring 2010 Championship Team
FHA Changes-Impact on Cary Homes For Sale
David Williams (L) w/ FHA Commissioner David Stevens
Back in December I blogged about possible upcoming changes to FHA loan requirements – well it’s arrived – The FHA recently announced major changes to their requirements for buyers/borrowers. These increased standards could reduce the number of buyers that qualify to purchase Cary Homes For Sale. The changes are aimed at shoring up the FHA’s long term stability – which I think is definitely positive in the big picture/long term - it’s the individual buyers and sellers on a local level, like right here in Cary that will see and feel the impact – anytime the requirements become stricter for securing home loans the available buyer pool is reduced. However one of the major contributors to the recent housing market downturn was buyers purchasing too early or too high. The current FHA commissioner David Stevens is from the real estate industry, having worked on both the mortgage side and brokerage side – I believe he brings a common sense mindset to the FHA restructure.
FHA’s Changes to Borrower Requirements
- The upfront fee charged for the mortgage insurance premium (MIP) will be raised to 2.25%
- The Seller contribution (closing costs etc) is reduced to 3% instead of previous 6%
- To Qualify for a 3.5 % minimum down-payment requires credit score of 580 or higher
- Less than 580 Credit Score will require 10% or more down payment
- Several new lender requirements aimed at protecting the borrower
Like to read detailed FHA policy? FHA Commissioner David Stevens recently wrote an article covering the FHA changes.
Thanks for Reading our Cary Real Estate Blog. Post Authored By: David Williams
David’s a Licensed North Carolina Realtor & The Voice of CaryRealEstate.com
Cary NC Homes For Sale: 2009 Average Days on Market Report
Cary North Carolina Home Sellers experienced a fairly stable average number of days on the market for 2009 – for the year the average was 121 days on market – or approximately 4 months.
While this is a bit longer than years past it’s still a very robust market – especially compared to other parts of the country. It’s still crucial to price your home correctly in the beginning – research clearly shows that homes priced correctly initially sale faster and at a much higher % of asking price than sellers that choose to overprice and then take price reductions over time – those home sellers experience a longer time on the market and usually end up selling for less than they could have if priced correctly at the beginning.
Thanks for Reading our Cary Real Estate Blog. Post Authored By: David Williams
David’s a Licensed North Carolina Realtor & The Voice of CaryRealEstate.com
CaryRealEstate.com Makes it Easy for Home Buyers & Sellers
At CaryRealEstate.com we’re always keeping our eye out on how to improve our level of service with home buyers and sellers. Most of us enjoy the latest gadget but rarely does something have as much positive impact as docusign. It’s a web based service that allows the creator of a document to send an electronic copy to a recipient and allow that recipient to sign, date, initial etc a document with a few easy mouse clicks. Yes there is a short process to accept/create your electronic signature but it’s super easy.
Worried about security? docusign has their act together – they’re even endorsed by the National Association of Realtors! The system provides multiple levels of security, along with tracking numbers, ip address etc. Yes, the state of North Carolina and the North Carolina Real Estate recognize this type of signature as valid.
Real Life Example of Cary Real Estate making life easier for their clients – last night we were able to send one email to our buyer clients vacationing at Disney – without leaving their hotel room the buyers were able to review 7 different documents (new construction purchase) they electronically initialed or signed every page in just a few minutes – upon completing their signatures the system immediately notified us and we had an executed set of documents, no hunting for the hotel desk clerk / worrying about the business center being closed etc.
We’re able to compose, deliver, receive signatures and file electronically without ever creating the first piece of paper! It’s perfect for offer to purchase sales contracts, buyer agent agreements, listing agent agreements etc!
End Result – it’s easier for our clients, better for the enviroment and allows us to operate more efficiently!
Thanks for Reading our Cary Real Estate Blog. Post Authored By: David Williams
David’s a Licensed North Carolina Realtor & The Voice of CaryRealEstate.com
Cary Home Buyer Tip #9 – Understanding Earnest Money with the NC Offer to Purchase
What is Earnest Money?
Who Holds the Earnest Money?
How Much Does the Earnest Money Deposit Need to be?
What happens to the Earnest Money if I Don’t Close on the Home?
These are all great questions that home buyers ask before purchasing a home in North Carolina. Here’s a typical scenario for a buyer purchasing a resale home in the Cary-Wake County-North Carolina area You’ve found a home you’re interested in and ready to make an offer. That first offer needs to be in writing – for a re-sale home here in the Cary area we’ll use the standard NC Offer to Purchase Contract. Along with the written offer, you will write an earnest money check.
What is Earnest Money?
Think of earnest money as a deposit on the home, a show of good faith. If/when your offer becomes a contract your money will be held in trust and subject to NC Trust account regulations. At the time of closing the earnest money deposit will be credited towards your purchase of the home.
Who is the Earnest Money Check Made Payable to?
Typically the Listing Company. Most listing firms in the Cary area maintain a trust account for purpose of holding earnest money deposits, however some small firms choose not to maintain a trust account, in this case we can use the CaryRealEstate.com trust account or use the trust account of a local real estate attorney.
How much should the Earnest Money Deposit be?
Technical Answer, the amount of earnest money is negotiable between buyer and seller. Real life answer, usually around 1% of the offer amount. Think of your offer as a gift to the seller – the terms and condition of your offer are like the wrapping paper and bow. The larger the earnest money amount the ‘prettier’ the bow.
What Happens to the Earnest Money if I Don’t Close on the Home?
Notice I saved this one for last? The best answer here is, IT DEPENDS! You, the buyer, may or may not be entitled to a refund of your earnest money – depending on why the closing did not occur – the offer to purchase is the guideline. Here’s the catch – even though it may appear obvious that you are entitled to a refund, both parties (buyer & seller) must sign off on how the earnest money is disbursed before the firm holding the earnest money can release the money. If the parties can not agree then it can become a legal matter.
Could I write more about the intricacies & nuances of earnest money? Absolutely. Would you still be reading, probably not! Please let me know if you have any specific earnest money questions that I did not address.
Please Note: The North Carolina Real Estate Commission has a Question and Answer Brochure available here.
Cary Real Estate Market Update for Days on Market
The median number of days on the market for single family homes in Cary peaked at just over 150 this past spring. At this point it appears to be stabilizing. Please note the graph represents all price ranges – days on market can vary drastically at different price points.
Want to Receive FREE Cary Real Estate Market Updates?
Residential Single Family Homes
Cary Real Estate Market Update for Number of Homes For Sale
It appears the inventory peaked over the summer as usual and has started the seasonal decline has we move into the fall and winter months.
Want to Receive FREE Cary Real Estate Market Updates?
Cary Real Estate Home Buying Tip #17 – Give NickNames to the Homes You Like
When you’re out looking at homes they all tend to blend together! So give them a memorable nickname, at least that’s what I suggest when I’m helping buyers in Cary.
There’s no doubt about it, homes start to blend together after you’ve looked at several. If you’re in a home that makes your ‘keep list’ then pick a memorable feature that stands out about the home and give the home a nickname, like “Red Door” or “Super Kitchen” etc. It’s so much easier than trying to remember street names or MLS numbers! If you have kids, then let them get involved in the process. One of my favorite nick name memories is the ‘dog poop’ house. It was a new construction home at the framing stage & a neighbors dog had taken advantage of the open access to the home. The buyers kids dubbed it the dog poop house – it was funny having phone conversations with the buyers and having them say “We are ready to submit an offer on the dog poop house”. You’ve got to keep it fun!
True or False, the Town of Cary has the Highest Property Tax Rate in Wake County.
Cary has the nicest parks in the area, the highest average income and more advanced degrees than other municipalities in the county, so it only makes sense it would have the highest property tax rate in Wake county, Right? Well it’s false, Cary does not have the highest property tax rate in wake county, in fact, The Town of Cary has the LOWEST tax rate in Wake County!
I’ve overheard people comment “I can’t afford the property taxes in Cary”. I think people look at all the great amenities that Cary provides and assume the taxes would be proportionality higher. While it is true that homes in Cary are more expensive on average than many other parts of Wake County, the reality is a $300,000 tax valued home in Cary will cost you LESS in property taxes than any other town or city in Wake County!
So what is the tax rate and how is it calculated?
What Every Cary Home Buyer & Seller Needs to Know BEFORE Talking to a Realtor
All licensed real estate agents in North Carolina represent either the buyer party or the seller party or both parties.
Unless you have an agreement with the agent for representation then assume they are representing the other party, which means don’t disclose any personal information to that agent that you would not want the other party in the transaction to know. The state of North Carolina take this issue of representation very seriously – they have created a brochure called “Working with Real Estate Agents”. You should expect any real estate agent that you come into contact with to present you with this information before having a serious conversation or showing you a home. the brochure has a place for you to sign – this is not hiring the agent – it’s only acknowledging the agent gave you the brochure and reviewed the information.
Here is the Actual Brochure Text:
Working with Real Estate Agents
When buying or selling real estate, you may find it helpful to have a real estate agent assist you. Real estate agents can provide many useful services and work with you in different ways. In some real estate transactions, the agents work for the seller. In others, the seller and buyer may each have agents. And sometimes the same agents work for both the buyer and the seller. It is important for you to know whether an agent is working for you as your agent or simply working with you while acting as an agent of the other party.
This article addresses the various types of working relationships that may be available to you. It should help you decide which relationship you want to have with a real estate agent. It will also give you useful information about the various services real estate agents can provide buyers and sellers, and it will help explain how real estate agents are paid.
SELLERS
If you are selling real estate, you may want to “list” your property for sale with a real estate firm. If so, you will sign a “listing agreement” authorizing the firm and its agents to represent you in your dealings with buyers as your seller’s agent. You may also be asked to allow agents from other firms to help find a buyer for your property.
Be sure to read and understand the listing agreement before you sign it.
The listing firm and its agents must
- promote your best interests
- be loyal to you
- follow your lawful instructions
- provide you with all material facts that could influence your decisions
- use reasonable skill, care and diligence, and
- account for all monies they handle for you.
Once you have signed the listing agreement, the firm and its agents may not give any confidential information about you to prospective buyers or their agents without your permission so long as they represent you. But until you sign the listing agreement, you should avoid telling the listing agent anything you would not want a buyer to know.
To help you sell your property, the listing firm and its agents will offer to perform a number of services for you. These may include
- helping you price your property
- advertising and marketing your property
- giving you all required property disclosure forms for you to complete
- negotiating for you the best possible price and terms
- reviewing all written offers with you and
- otherwise promoting your interests.
For representing you and helping you sell your property, you will pay the listing firm a sales commission or fee. The listing agreement must state the amount or method for determining the commission or fee and whether you will allow the firm to share its commission with agents representing the buyer.
You may even permit the listing firm and its agents to represent you and a buyer at the same time. This “dual agency relationship” is most likely to happen if an agent with your listing firm is working as a buyer’s agent with someone who wants to purchase your property. If this occurs and you have not already agreed to a dual agency relationship in your listing agreement, your listing agent will ask you to sign a separate agreement or document permitting the agent to act as agent for both you and the buyer.
It may be difficult for a dual agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party.
Some firms also offer a form of dual agency called “designated agency” where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each “designated agent” to more fully represent each party.
If you choose the “dual agency” option, remember that since a dual agent’s loyalty is divided between parties with competing interests, it is especially important that you have a clear understanding of
- what your relationship is with the dual agent and
- what the agent will be doing for you in the transaction.
BUYERS
When buying real estate, you may have several choices as to how you want a real estate firm and its agents to work with you. For example, you may want them to represent only you (as a buyer’s agent). You may be willing for them to represent both you and the seller at the same time (as a dual agent). Or you may agree to let them represent only the seller (seller’s agent or subagent). Some agents will offer you a choice of these services. Others may not.
If the real estate firm and its agents represent you, they must
- promote your best interests
- be loyal to you
- follow your lawful instructions
- provide you with all material facts that could influence your decisions
- use reasonable skill, care and diligence, and
- account for all monies they handle for you.
Once you have agreed (either orally or in writing) for the firm and its agents to be your buyer’s agent, they may not give any confidential information about you to sellers or their agents without your permission so long as they represent you. But until you make this agreement with your buyer’s agent, you should avoid telling the agent anything you would not want a seller to know.
Unwritten Agreements:
To make sure that you and the real estate firm have a clear understanding of what your relationship will be and what the firm will do for you, you may want to have a written agreement. However, some firms may be willing to represent and assist you for a time as a buyer’s agent without a written agreement. But if you decide to make an offer to purchase a particular property, the agent must obtain a written agency agreement. If you do not sign it, the agent can no longer represent and assist you and is no longer required to keep information about you confidential. Furthermore, if you later purchase the property through an agent with another firm, the agent who first showed you the property may seek compensation from the other firm.
Be sure to read and understand any agency agreement before you sign it.
Whether you have a written or unwritten agreement, a buyer’s agent will perform a number of services for you. These may include helping you
- find a suitable property
- arrange financing
- learn more about the property and
- other-wise promote your best interests.
If you have a written agency agreement, the agent can also help you prepare and submit a written offer to the seller.
A buyer’s agent can be compensated in different ways. For example, you can pay the agent out of your own pocket. Or the agent may seek compensation from the seller or listing agent first, but require you to pay if the listing agent refuses. Whatever the case, be sure your compensation arrangement with your buyer’s agent is spelled out in a buyer agency agreement before you make an offer to purchase property and that you carefully read and understand the compensation provision.
You may permit an agent or firm to represent you and the seller at the same time. This “dual agency relationship” is most likely to happen if you become interested in a property listed with your buyer’s agent or the agent’s firm. If this occurs and you have not already agreed to a dual agency relationship in your (written or oral) buyer agency agreement, your buyer’s agent will ask you to sign a separate agreement or document permitting him or her to act as agent for both you and the seller. It may be difficult for a dual agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party.
Some firms also offer a form of dual agency called “designated agency” where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each “designated agent” to more fully represent each party.
If you choose the “dual agency” option, remember that since a dual agent’s loyalty is divided between parties with competing interests, it is especially important that you have a clear understanding of
- what your relationship is with the dual agent and
- what the agent will be doing for you in the transaction.
This can best be accomplished by putting the agreement in writing at the earliest possible time.
Seller’s Agent Working With a Buyer
If the real estate agent or firm that you contact does not offer buyer agency or you do not want them to act as your buyer agent, you can still work with the firm and its agents. However, they will be acting as the seller’s agent (or “subagent”). The agent can still help you find and purchase property and provide many of the same services as a buyer’s agent. The agent must be fair with you and provide you with any “material facts” (such as a leaky roof) about properties.
But remember, the agent represents the seller—not you— and therefore must try to obtain for the seller the best possible price and terms for the seller’s property. Furthermore, a seller’s agent is required to give the seller any information about you (even personal, financial or confidential information) that would help the seller in the sale of his or her property. Agents must tell you in writing if they are sellers’ agents before you say anything that can help the seller. But until you are sure that an agent is not a seller’s agent, you should avoid saying anything you do not want a seller to know.
Sellers’ agents are compensated by the sellers.
Thanks for Reading our Cary Real Estate Blog. Post Authored By: David Williams
David’s a Licensed North Carolina Realtor & The Voice of CaryRealEstate.com
