Real Estate in the 21st Century

For New Construction and Remodels

News, Events, Classifieds and more

Yadkin County Real Estate, North Carolina Real Estate

Maybe not what we want them to be, but there is definitely a thaw in the air!

Home Sales are Up!

Home Realty Group — Tue, 31 Mar 2009 18:40:29 -0500

Home sales are not where we want them to be, but there is definitely a thaw in the air!

Link to my sites!

For New Construction and Remodels

News, Events, Classifieds and more

Yadkin County Real Estate, North Carolina Real Estate

Maybe not what we want them to be, but there is definitely a thaw in the air!

The Economy is Improving!

Home Realty Group — Tue, 31 Mar 2009 18:30:09 -0500

Alright, maybe it's not, but with spring in the air, the world just looks brighter and better. I see a new dawn coming our way!

Link to my sites!

For New Construction and Remodels

News, Events, Classifieds and more

Yadkin County Real Estate, North Carolina Real Estate

Everyone can get a low rate now!

Home Realty Group — Tue, 31 Mar 2009 18:24:02 -0500

It's time to Buy folks! Low rates, great prices, good buys, Darn, I wish I qualified for a loan!

Moon shines bright on the Yadkin Valley!

Home Realty Group — Tue, 31 Mar 2009 18:17:45 -0500

This picture was taken right outside the Yadkinville city limits.

Link to my sites!

For New Construction and Remodels

News, Events, Classifieds and more

Yadkin County Real Estate, North Carolina Real Estate

Are there fish in that there Pond?

Home Realty Group — Tue, 31 Mar 2009 18:12:13 -0500

Yadkin Valley Attractions Series

It is getting time to get those rods and reels out. Make sure your license is up to date!

You say tomato, I say tomato

Home Realty Group — Tue, 31 Mar 2009 17:59:00 -0500

It's getting to be that time where the fresh home grown tomato is a daily item!

Understanding Commissions and the Current State of Real Estate

Home Realty Group — Tue, 31 Mar 2009 07:21:01 -0500

Many in the real estate world believe that in time we will see the past revisit us. I don't believe so. I think that we are in the midst of a fundamental change in the industry and how we are paid going forward will not be the same as it has always been.

First off, a brief framework of commissions and untimately our income. At an average selling price of $150,000, a 3% commission (assuming one side only) comes to $4500. After the split with your broker, assuming a 80-20 split, you net $3600. If you sell one house a month, that is $42,200 a year income. After paying expenses of say $5000, you are now down to 37,200. Now pay income and self employment taxes and your pay is reduced to about $30k.

But in this scenerio, there are some basic assumptions. First is that your average selling price is $150,000, that you only get one side, that you get a 3% commission on all sales, and your split is 80-20. You get the drift. What if you don't sale a home each month? You probably would think that spending more on promotion would change the numbers- that is what you will hear from others. It may or may not be successful, but it will increase your expenses.

So can we depend upon old models of commission going forward. I think not. In our MLS there are currently many properties with less than 3% commission to the selling agent. That does not support the example above. Nor is there any indication that the current market will change dramatically over the next few years. I know, that is against the grain of what most want to believe. But with millions of baby boomers getting to retirement age, we may see a staggering number of homes hit the market. With government pushing affordable housing, and large homes in the suburbs not qualifying, we should see pressure on these very same boomers to reduce commissions to us. Technology will have a part to play in this saga as well. Contrary to what the large franchises are promoting, I see a reduction in service as sellers take on more of the marketing of their homes. And buyers will have more opportunities to receive part of their agents commissions-if they have an agent at all.

The only good thing I see out of this downturn is that the push for banks to be involved in real estate has been put on hold. Most are concerned with getting out of real estate for the moment.

Pay for service is coming. Each of us will devise what amounts to be a buffett service menu. Since we still don't control our MLS- that is our product, and we are collectively giving it away to sites like Trulia, it is we that must change or go by the way of the dinosaur

The Government isn't Running GM-there is a hidden agenda!

Home Realty Group — Tue, 31 Mar 2009 06:35:14 -0500

The Obama administration has put its foot down and major changes are taking place in our auto industry. General Motors CEO "resigned" to make changes in the company top management. For those that aren't aware or not interested in the talking heads opinions on TV, the real reason Wagner resigned was the union-which really runs the company, was not going to be the only losers in the deal. Backroom negotiations have always been based upon the union to take drastic pay cuts and benefit cuts to stabilize the companies debt load. Obama has an energy policy that fits right in with changing the very face of the auto industry. GM and Ford will survive, maybe not Chrysler-only because it is privately held. The administration wants the industry to stop making cars that are gas only. The basic fact is that to get money from the fed, the industry will be told to make hybrids and changes the basic playing field for many industries in America

The oil and gas industry should be scared. Obama literally can change the way our country uses energy on a dime. The administrations plan, though not politically viable yet to tell the masses is to give the Treasury power to take over companies that the government deem important to national security. Since the constitution doesn't mean much to theses guys (see 90% tax on bonuses) a take over of our domestic companies might be something the administration would do when gas prices start to rise-and they will rise, based on a growing economy. So the future has you buying expensive hybrids, spending more money on items that still have not been priced for the average consumer. The new cars may also have a "smart meter" which will tell the government how much you drive, hence how much to tax you.

There will be winners. Big union will win because many of the existing companies will go out of business. New start ups will be able to receive government subsidies if they agree to certain terms.

How does this affect real estate you ask? Since HUD has a primary focus of creating affordable housing, it will support any agenda that moves the ball forward. The Highway Dept and HUD have already begun a partnership to help create a highway system that works well for HUDs focus. So look for more money being spent in the inner cities of our country, not development in the suburbs. It is not the wasting of government dollars on massive inner city projects that has fueled the growth of real estate over the past decade. It was the risk taking developers and builders that provided the average citizen with housing where and how they wanted it. For the foreseeable future we will pay for growth back to our cities.

Can you now see the connection? If it is more expensive to drive, or better yet if the new hybrids can't work for long commutes, guess what, you better move closer to the power sources.

Think of the county in which you live, There will be store closings from lack of business because there is no growth in the rural areas. Big business-like GE will continue to push the green agenda and soon we will have a country that looks pretty, smells great, but where everyone is out of a job.

Finally, don't think that it stops here. If you have thought that the world runs on oil, you would be correct. Wait until we tell other countries that they need to go green-are they going to listen to us? What is the difference in government policy if it promotes the old way or the new way. We are still trying to influence other countries with our agendas.

This, in the end is about a change in power. It is to restrict your freedoms and to increase control over your decisions. So as Realtors, we need to stop blindly following of NAR which supports any affordable housing policy regardless of its viability. And as Realtors we need to educate ourselves. We need to speak out about the transfer of wealth from our current customers-taxpayers, to those that pay little or none. Do you really think that we as a group will not be in the crosshairs of government hacks when they talk about affordability. Look for commissions to drop on those deals. May not be today, but it will happen.

Is it really a good time to buy a house?

Home Realty Group — Wed, 25 Mar 2009 17:27:14 -0500

In reading blogs and editorials in many newspapers I am seeing folks literally scream about how it is a great time to buy a home. Low prices, low interest rates, etc... have been the most used terms for trying to get people to put their signature on the dotted line.

But is it really a good time to buy? Low prices are not low if the market will not pay the higher prices. The lower prices based on last year or past years may be good for advertising but it is not a reason to buy. What is low? What is high? We know as Realtors that the market price is the price that a buyer is willing to buy the home at and the price the seller is willing to sell at. So in reality low doesn't come into question. Like our former president said, "It depends on what your definition of is is"

Lower interest rates are also in question because you have to have a perfect application to get them and not many will qualify based on all the guidelines from Fannie and Freddie that bump up the rates for most people.

The tax credit only helps those first time buyers and not others.

I try to have my customers look at the big picture. I think they appreciate the honesty and not the hype.

Year to Date Sales in the Triad

Home Realty Group — Wed, 25 Mar 2009 07:07:54 -0500

Year to Date Sales Statistics From Triad MLS

County	New	Avg LP	Pending	Avg LP	Closed	Avg SP	%SP/LP	Avg DOM
Davidson	373	$215,132	161	$139,630	116	$146,318	95.59%	138
Davie	134	$308,192	40	$207,205	30	$158,959	92.98%	82
Forsyth	1254	$221,085	450	$155,997	351	$166,043	95.40%	119
Guilford	1741	$218,616	685	$162,647	486	$153,848	95.00%	117
Yadkin	37	$190,718	19	$104,131	17	$111,907	95.35%	96
		$230,748		$153,922		$147,415	94.86%	110

Sellers are maintaining a strong list to sale percentage in most caseses. Foreclosers are expcted to be up in the coming months as banks finalize all properties that are not eligible for debt relief. Buyers may be losing some of their ability to negotiate as low interest rates are expected to start rising in the next few months. Jobless claims should stabilize, not because of government intervention, but because many companies are at optimal employee levels based on current business.

All in all, the economy is in better shape than most of the rest of the world.

You have a chore to do right now! WEEDS

Home Realty Group — Mon, 23 Mar 2009 06:29:38 -0500

Do It NOW!

It will only get worse!

Link to my sites!

For New Construction and Remodels

News, Events, Classifieds and more

Yadkin County Real Estate, North Carolina Real Estate

The Beautiful Hosta!

Home Realty Group — Mon, 23 Mar 2009 06:26:00 -0500

What plant is more versitle than the Hosta. Each year it comes back bigger and better. Hundreds of varieties, it goes with any landscaping. And for those that like to watch their budgets, it can sub divided each year to make even more. Don't let this great plant pass you by.

This is the perfect time to divide. Take a shovel and just cut through the plant at the desired area(s). Take the new and put in ground, water throughly and you have more free landscaping. This summer you will be glad you did!

Link to my sites!

For New Construction and Remodels

News, Events, Classifieds and more

Yadkin County Real Estate, North Carolina Real Estate

It must be Spring.....

Home Realty Group — Mon, 23 Mar 2009 06:17:06 -0500

Looks like it is time to start the general cleanup for Spring. Don't over do it. You have plenty of time.

Link to my sites!

For New Construction and Remodels

News, Events, Classifieds and more