Jason Goodman Triangle Area NC Realtor

Once Again the Triangle Tops Forbes Best Places to Live List

Either way, we are in better shape than most places with regards to employment, real estate and other factors. Sure the North Carolina unemployment is the 4^th highest in the country at just over 10%, but our local area is much lower than the national or state average. Why? Because of the diverse industry that makes up our area. We have a medical community based on the colleges in the area, government jobs as the capital of the state, the tech sector of RTP, among other industries. The problem is not the market here. People are still coming here for employment and a great quality of life. The problem is that people cannot sell their homes where they are coming from and in turn, they cannot buy here which affects our market.

In most economic down turns, you do not realize they have begun until they are really bad and it is only then when you look back and see when they actually started. The same is true of the recovery. It usually begins to happen when things are at their worst, and people do not realize the recovery is underway until it has already started. Could the recent rebound in the market signal we are almost there? Who knows – trying to time anything is tough, and I feel that things cannot get much worse, so they have to get better right?

Back to Forbes list. According to WRAL, Forbes magazine cited the Triangle's strong job growth – both past and projected – low business costs and highly educated work force.

The region's unemployment rate jumped to 7.9 percent in January, losing 12.200 jobs, and IBM laid off several hundred workers in Research Triangle Park on Thursday.

Forbes said the number of jobless will likely continue to grow this year after five years of 4 percent annual job growth. The employment picture is expected to brighten in 2010 and 2011, however, and Moody's Economy.com projects a three-year annual employment gain of 1.4 percent, which would be the 15th-best in the country.

"Raleigh is holding up better than any other place in North Carolina," Matthew Martin, an economist at the Federal Reserve Bank of Richmond, Va., told the magazine.

North Carolina placed six metros among the top 20 on Forbes' list. Asheville finished sixth, Wilmington was 13th, Winston-Salem was 18th and Charlotte was 19th.

I am glad I am in the Triangle and I am glad I am selling real estate here!

I have an out of town buyer who recently wrote a contract on a home that they saw when they were in my area looking for homes. They called me and asked to write the contract and email it to them to sign. I did, and then called the listing agent to tell her that I should be sending in the contract withi8n a day or two.

My buyers took longer than expected to sign the contract as they wanted to make sure that they had financing in place and that this was the house for them. In the mean time, the listing agent called to see the status and I assured her that the minute I had the contract I would forward it to her as I wanted to get a deal done as much as she did.

Several days later, she called again to tell me that there was another offer that was possibly coming in and that I should encourage my buyer to sign the deal quickly if they wanted to assure themselves that they would have their contract accepted.

This action perplexed me for several reasons. First; if there was another offer REALLY coming in, why would this realtor care if we got our offer in first? Second; how did she know what our offer was going to be? It could have been contingent; it could have been fairly low with any other number of unfavorable terms.

My first thought was how long had this person been a realtor. I looked up this person’s information, and was shocked to see that they had been licensed for over 10 years. Certainly not the actions I would expect from someone who had experience. This is the type of behavior that I would expect from either a new realtor, or a desperate one.

Did this person think that telling me there was another offer would make me run back to my buyers and prod them into making one of the biggest decisions of their lives in a hurry? Who am I working for?

I have come across this behavior many times, and each time, it never ceases to amaze me that realtors actually tell me there is another offer in order to move along my offer. If there is another offer coming in, work with that one!

It comes across as extremely unprofessional in my opinion, and sets the tone for the type of person that I will be working with if and when we go to contract.

As it turns out, the contract never came to fruition as my buyers had second thoughts and the home is still on the market over a month later. That other offer never came is either. Surprise!

Any thoughts? Do you act in this manner? Do you think this is unprofessional? I do – and bush league as well.

The North Carolina Real Estate Commission allows what is called dual agency. This is a fairly complex concept that agents must explain to their clients when beginning a relationship with them, and even have them sign a brochure giving the broker the right to be a dual agent or not. It has its advantages. Mainly, if a client is interested in a listing that is listed with his or her brokers firm, in order to show that listing, an agent must be a dual agent.

What it also allows is for a single agent to act as representative for both buyer and seller. What? Yes someone who is representing both the buyer and seller, and trying to negotiate the best deal for both. The argument exists that it is not really possible. I equate it to a lawyer representing both husband and wife in a divorce. Most likely, that person feels more of an allegiance to the person who hired them and is paying them.

When an agent represents both buyer and seller in a transaction, it can happen in one of two ways. They can have a house listed, and someone calls on a sign or through advertising on that particular property and the call comes back to that agent, he or she shows the house and the transaction happens. In this case, the listing agent has had a relationship with the seller and a very limited one with the buyer but is supposed to be working for both in an equal capacity. Furthermore, the agent’s compensation is coming from the seller’s proceeds on the sale. Can this person really represent both participants to this transaction in a fair manner? Most realtors who are put in these situations do to an extent, but it is a hard position to be in.

In another scenario, an agent may have been working with a buyer for awhile and puts a home on the market that is exactly what this buyer is looking for. The house is shown, and the transaction happens. In this case, the agent and buyer have a closer relationship but the agent is a dual agent, supposedly representing the seller and buyer equally and again, the argument can be made that it cannot be done fairly.

Dual agency in North Carolina spells out exactly what information can be passed on to buyers and sellers and what information cannot. The commission is very strict with the rules of dual agency and agents know that, and therefore, most times, abide by these rules.

The problems can arise when an agent knows something about a buyer or seller that can have an effect on the negotiations, but they are not allowed to pass on that information. Let’s say that the sellers agent knows the home is about to be taking by foreclosure, and that the seller will take significantly less than asking price. They cannot give this information to the buyer, and therefore, they are really not working to get the buyer the best deal. If there were two separate Realtors from two different offices, and the buyer’s agent had some information about the negotiating position of the seller, they should and would relay this information to their buyer, in order to help them negotiate the best deal.

While dual agency is legal, and it happens quite often, as a buyer or seller, you want to make sure that you do not get yourself into a situation where the same agent represents the buyer and seller. Dual agency is also when different agents at the same firm represents the buyer and seller respectively. This is because, technically, the listings are the property of the firm, not the individual agent, and therefore, because the same agency is representing both buyer and seller, they are practicing dual agency. This happens much more than one agent representing both buyer and seller. In my opinion, there is nothing wrong with this type of transaction as there are two separate people acting in the best interest of their clients. This type of transaction occurs frequently in an area such as Wake County, or for that matter the entire Triangle area as there are a lot of people, and a lot of firms with a lot of Realtors.

In order to avoid having a home’s listing agent act as your buyer’s agent as well, there are things that you can do. If you are already working with an agent, and you see a sign on a home or an advertisement for a home that interests you make sure that you call your agent to get you information on that particular home. You can be sure that they are working for you. If you do not have an agent, go ahead and call the sign or advertisement and ask for information. Ask the person that you are talking to about the home and if it is their listing. Many times, the lead goes back to the office and is passed out to another agent. This is fine. Meet the agent, size them up and after a little while decide if you may be able to work with this agent. Most times, when you call on a home, the first one will not be the one you choose, but it may have introduced you to a great agent. Just be careful not to get caught with a seller’s agent representing you in a transaction as a buyer when you have no relationship with them.

I have been an agent in several transactions where I have represented both buyer and seller and it is not easy. It may be more profitable for me, but there are tons of headaches involved, and I have vowed never to do it again. I would rather give up the dual commission and have less stress in the transaction. The first issue is obviously negotiating price and other contract issues, but it doesn’t end there.

Any time there is something to be worked out, such as inspection or appraisal issues, you are arguing with yourself, and it is a tough position to be in.

Hopefully this has provided you with some insight on what to do if you get into a situation where there is one realtor representing both parties in a transaction. This can be helpful whether you are looking in the Raleigh area or any other place within North Carolina as these laws are statewide. If you are outside of North Carolina, please check with your state Real Estate Commission for dual agency rules and regulations.

From time to time, I like to highlight local neighborhoods in the Triangle area. Today I am writing about a neighborhood called Cotswold.

Cotswold is located in the southern part of Cary, off Kildaire Farm Road, just past Ten-Ten. In my opinion, it is a hidden gem within the Town of Cary. The home prices here range from the mid to low 300’s to the mid 400’s. All homes have a brick front and have a rather large appearance. Most homes have decent property and are not located on top of each other as some of the newly constructed homes are in other developments. One of the many great things about this neighborhood is that while the homes are relatively new (built from 1999-2001), the developer was smart in that they did not bulldoze the trees when developing the land. There are tons of pines and other trees that are over 40 feet in length, giving the neighborhood a feel and look of mature trees, with newer types of construction featuring open floor plans with high ceilings – something that is becoming harder and harder to find in newer communities whose developers bulldoze all the trees.

Cotswold is extremely family friendly. Just drive through this neighborhood any time after school and you will see tons of kids playing. The community social committee is extremely active. The neighborhood sponsors monthly pool barbecues for the neighborhood as well as outdoor movies at the pool once a month during summer months. At Halloween, the neighborhood sponsors a hayride around the neighborhood and a cookout at the pool parking lot. During Christmas, a holiday party happens and Santa makes an appearance. On July 4, the all the children get together in the neighborhood and decorate their bikes and hold a bike parade down the main drag of Cotswold. Many other neighborhood parties take place throughout the course of the year as well.

There are about 250 homes in Cotswold, and at any one time, there are only approximately 3-5 for sale and they move fairly quickly. Cotswold’s location lends itself to easy access to all major highways and shopping at the Crossroads shopping area and the Cary Towne Center.

When thinking about this neighborhood, the first thing that pops into many people’s minds is; what is a Cotswold, so I did some research. The Cotswold’s are a range of hills in West-Central England near Gloucestershire and Oxfordshire. Street names such as Banniford Way and Galsworthy Street keep in line with English names. The architecture is also reminiscent of Traditional English homes.

Cotswold is well kept by its residents and the entrance is beautifully maintained by the homeowners association. The pool area opens as the weather warms in May and closes when the weather cools in October. The pool is rather large and there is a small clubhouse and large deck area for its residents.

Currently, children living in Cotswold are slated to go to Oak Grove Elementary for grades kindergarten through 5^th, Dillard Middle School for Grades 6-8, and Holly Springs High School. The elementary is a year round school and rated as one of Wake County’s best schools. There is also a traditional alternative which is Briarcliff Elementary. As always, please check with the school board before making decisions based on these schools as home schools tend to change in Wake County from year to year.

If you are looking for newer construction with a mature neighborhood look with lots of trees and a family friendly atmosphere, look no further than Cotswold in Cary – I am sure you will be impressed.

If you would like any information on the homes available in this area, please do not hesitate to contact me.

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As many people in the Triangle area know, this was a revaluation year. Those of you who may be relocating to North Carolina may not know what this means. Every 8 years, the state of North Carolina re-assesses all properties and this value is what our property taxes are based on until the next revaluation. Since the last revaluation, there has been a tremendous real estate boom (which was not as pronounced in the Triangle area as it was in some places in the nation). At first glance, people are excited to see that their values have gone up significantly. Once that elation passes, reality sets in, and people begin to think about how this will affect their property tax bill for the next and subsequent years.

As an average, property values shot up 42% across the Triangle, and in some locations, such as Inside the Beltline, the rise was significantly higher. On the surface, this seems to lead to a similar percentage rise in our tax bills, which has led to fear and a lot of questions.

Thankfully, there is something that not many people know about called revenue neutrality. In plain English, this means that revenues brought in by property taxes in a revaluation year would be about the same as if the revaluation had not taken place. Generally, the tax rate is lowered to offset or “neutralize” the effect of higher property values.

Taxes in North Carolina are made up of one or two main components. The County rate and the city rate if you live within city limits. The Wake County rate before revaluation was .67 and most other municipalities add their rate to this to give you a total tax rate of around 1% of the value of your home.

For example, Cary’s rate before revaluation is .43. Added to the county rate, the total rate is 1.1%. On a home valued at $317,000 before the revaluation, the tax bill would have been $3487 ($317,000 X 1.1%). That same home, after revaluation would be assessed at $425,000 and at the current tax rate of 1.1%, the tax bill would be $4675. That is a large one year increase in taxes, and if this were the case, it may force already struggling families to have trouble meeting their monthly obligations.

Because of the provision of revenue neutrality, both Wake County and the Town of Cary (and all other cities within Wake County) must lower their rates to ensure that revenue does not significantly grow. Wake County is currently debating on their rate and it will be set somewhere between .50 and .525 and Cary is deciding between .32 and .33. If we take the higher in both cases, we come up with .855 and the tax bill in the above example valued at $425,000 will be $3633. While this is a small increase in taxes, it is the first significant increase since the last revaluation 8 years ago and is needed to cope with the growth in Wake County, but at the same time, it is also tolerable to the average homeowner.

A byproduct of the revaluation process is that home buyers that do not know about the revenue neutral provision are having problems determining taxes for new purchase and at the same time, realtors who are new to the business or the area since the last revaluation are giving incorrect guidance. Most buyers are smart enough to find out what their monthly taxes and insurance will be in addition to their monthly mortgage payment. The problem is is that they are using last year’s tax rates and this year’s values to determine the monthly taxes, and that is giving them a significantly higher monthly bill, and in a lot of cases, causing buyers to look at lower priced homes. I have even seen cases where uninformed lenders are figuring tax bills on last year’s rates.

While the rates have not been approved yet, all you have to do is pick up the newspaper, read the trade magazines, or search the internet to get a good idea of where the county and cities are moving with regard to proposed tax rates.

The moral of the story is make sure you do your due diligence when looking to buy a house with regard to property taxes so that you will be able to buy the house that you can really afford, one way or another. Additionally, don’t be concerned with a huge rise in your tax bill just because your property values have skyrocketed with this most recent revaluation. I cannot tell you the number of people who have come to me in a panic thinking about the tax bill for this year and how many people have lost sleep thinking about how they were going to pay this bill.

Fortunately, now, as the cities and county debate their rates, it is coming out in the media that there will be a lowering of the rate at both the county and city level. If only this information could have been conveyed by agents, lenders, and the media at the same time that the revaluations came out a lot of people would have slept a lot better.

Once the rates are released and approved, I will be back with a city by city breakdown of the actual rates.

Please feel free to contact me with any Triangle Area tax or real estate comments or questions.

jgoodman@listwise.com
http://www.yourtrianglerealtor.com