Stu Barnes

I am sure if you are reading this blog then you have been keeping up with the market and do not need a quick synopsis of what has been happening over the past 3 years. Realtors as well as Sellers have been struggling and hoping for better days; the buyers, well are just popping popcorn watching the show.

First off, let me say that I totally understand why SOME buyers are hesitant on pulling the trigger. There is not one week that goes by when I am just in a casual conversation when someone says "I can't imagine why it's so slow for you guys, the rates are low and prices are low...buyers are crazy not to buy now". True and not true. The fact of the matter is rates and prices are low, but in general a lot of people are unemployed and if they are employed they are shaking in their boots that they will lose their jobs, so buying a new home isn't even a thought now. BUT, for those that are very qualified and secure with their employment and currently out looking at homes and giving feedback like "house needs too much work, waiting for rates to drop, waiting for prices to go down or priced way too high for competition out there.......your days are limited to have that ability to pick and choose on your watch. I have many listings that are getting a few showings, but the above is the typical feedback from the buyer's agents. In the buyer's agents defense, they give this feedback from their clients and are not really sure what the buyer is thinking or is going to do. For example, as most Realtors can tell you...they drive buyers around for 2 weeks or so and seem to be gung-ho on one house and then never hear from them or at the least hear something like "we are going to wait". That is okay in some cases, but my point is we are at a pivotal time here when buyers should definitely get off the fence and make a move within the next 8 months or so.

For the past year you have all heard reports.....we are coming out of the recession, or the economy is picking up or this or that.....well, that is coming from people who want you to believe that, ie: the National Association of Realtors or Home Builders Association or any other trade group who needs activity to increase....which is a legitimate claim given "their" studies. But now the Housing Starts have been climbing since June which is the single best indicator that the Real Estate Market, no matter where you live will start to pick up. Maybe not tomorrow or next week, but with increased Housing Starts, the countdown to recovery has begun.

Bottom line is by mid 2010 Sellers, instead of getting dreadful feedback on how bad their kitchen wall color choice is, will be getting multiple offers and scoffing at minor house flaws that buyers are giving now. Multiple offers and lower days on the market will be seen again and buyers will have to make quicker decisions if they really want that house....and be willing to come a lot closer to the Seller's asking price.

If you are in the market to buy, now is the time to get serious and do something before the rates climb and housing recovers fully. For more information on my Local Market in Raleigh, NC please visit us here.

So where do I start? With the whole mortgage meltdown over the past few years there are a lot of people pointing fingers on who it is to blame. Quick answer....the greedy bank executives. Throughout this whole ordeal there has been one group of people everyone loves to point there finger at and lay blame..... The Appraiser. When times were good (hyperbole) because they weren't really good, the appraisers are in hindsight catching blame for giving "too High" of a value on properties, therefore putting homeowners in a house that isn't worth what they paid....these days they are getting blamed for deals falling through for not giving enough value for the home....and now the Realtors and sellers/buyers are upset at them. Here is a fact, not opinion: Appraisers report the facts; what the market is bearing. Sure, there may be some bad apples out there trying to make a sale and give a "not so accurate" report, but they have an Appraisal Board to take care of them.

Lawrence Yun, the "Chief Economist for the NAR" recently is reported saying..."poor appraisals are stalling transactions." He attributed May's less-than-expected sales increase on the fact that "some contracts are falling through from faulty valuations that keep buyers from getting a loan." If these reports are indeed faulty, again, don't blame the Appraiser, blame the system. Appraisers now must abide by the HVCC , which stands for the Home Valuation Code of Conduct. Part of what is going on here is some banks have to use AMC's"Appraisal Management Companies" to outsource Appraisers. From what I know of Appraising in general to all the Appraisers I speak to here is my take on this:

With blame falling on lenders and appraisers over the past years for these two having cozy relationships....meaning a lender knows a great Appraiser and keeps using them because they are good OR interpreted.... they ALWAYS hit our number requested......the AMC's were injected as a firewall to not let lenders call there "guy/gal" to do their appraisals for them....Appraisers are now randomly chosen by the AMC's to complete the order eliminating the "cozy" relationship. This probably does cut out some of the "bad apples", but not really, because underwriting is more strict now and they are actually paying attention to the reports unlike the past when they were zipping through them just to get to the next one. WHAT THIS ACTUALLY DOES is counterproductive. The AMC's are now (this actually happened to me) getting an Appraiser from Greensboro NC to appraise a home in Raleigh NC....and he/she didn't even have access to our MLS.....HOW is he/she to get accurate information without our MLS....banks don't care because he was cheaper and doesn't know the lender. D.U.M. dumb. The banks are shooting themselves in the foot AGAIN. They should allow lenders to choose their Appraisers as before because now there are more safety nets in place.

Here is the worst of it, the Appraiser is just like the Realtor, Loan officer and Home Inspector in the sense that they have worked all these years to get a clientele base to work with referrals. So over the years they have developed relationships with lenders and can count on a certain amount of business coming in every month. Now, they lose all these contacts because lenders are forbidden to call "their guy/gal" to get the appraisal done. If they do get work, it is on rotation from AMC's that pay less, but charge the buyers more during the application process. So an appraiser just starting out may possibly get just as much work as a seasoned appraiser.

I may be wrong, I may not have all the information needed to express my opinion, but to me it all goes back to the banks making all the money with the bad loans.....losing their shorts and then coming back making new rules that only benefits them. I understand there has to be guidelines and restrictions in place to protect their investments, but common sense should be a part of their decisions.

Just think, if we all paid cash it would be a lot easier:) (now that's a joke)

If you ever are driving through Southern Wake County maybe headed down 401 South to Fuquay Varina or towards Clayton on HWY 42 you may pass through a stop light or two in a rural setting you may wonder if you are in a township or just a forgotten rural area. Willow Springs or Willow Spring (without the (S)) as some say is just that.....a hidden bedroom community with many subdivisions with large lots, a rural setting, but only 5 minutes from Fuquay Varina.....OR about 20 minutes from downtown Raleigh.

A lot of people have overlooked Willow Springs because there is no Target there, no Wal-Mart, no Food Lion or Harris Teeter; it is so small the only thing it actually has is a Post Office...a very small one. But in today's Real Estate Market that is exactly what some buyers are looking for; a community NOT a large CITY to live. Kendall Hills is a subdivision that has been overlooked along with the Town of Willow Springs. Lots are averaging almost an acre and home prices range from $275 ----to the high $300's. Most of these homes have at least 2300 square feet or more....so statistically, you won't find that bargain in many places in the Triangle area. When you can get a home for this size, age, acreage and convenience, you have found a bargain.

So if you are searching for property in the Raleigh, NC area and don't want the hustle and bustle of big city life and don't want to commute 2 hours a day, Willow Springs should be at the top of your list to visit. For more information feel free to visit us here.

Unless you have been living in a shell and have not turned on the TV in the past 3 or so years you are well aware that America as well as the rest of the world has been subject to a major downturn in the overall economy. Experts....if there are any in the economic field claim that downturns occur every twenty years or so and it usually has a catalyst behind it.....this one was the housing market.

This downturn though in my opinion was spurred by GREED...nothing more nothing less. When thoroughly examined and broken down to where it is explained in layman's terms, you seem to notice that it all goes back to the same theory.....if it seems to good to be true...it is; hence people buying homes with no job or credit is basically what happened. Though this is WAY too complicated for me to understand myself and break it down, there is a series on CNBC called "The House of Cards" and it does the best job so far explaining what has happened. I must warn you though...it will make you mad.

As of last summer ('08) there were approximately 7.5 million sub-prime loans being serviced and many of those could have possibly qualified for a prime loan; an A credit rating. Around 70% or more of these were ARM loans that the rate re-adjusted to a higher rate 1-2-3 years later depending on the terms. The majority of these loans were written in 2005-2006 and the first adjustments started about 24 months later.....this blends into the time-frame of the meltdown...2007-2008 and will more than likely continue.

We are now all in recovery mode AND for agents like myself SURVIVAL mode. Things are definitely getting a little better, but very slowly. It is a great time to buy; low prices and low rates, but to buy you must have good credit and a job......two things people should have had before the meltdown. In Wake County in 1998 there were almost 1,000 foreclosures....in 2007 there were almost 4,500 and in 2008 there were just over 2,000; so you can see they are going down. Hang in there with me and as always visit our site for more Real Estate information.

When buying a home there are many things you are going to hear and not understand...that is why you not only have a Realtor to help you buy or sell, but you also have other professionals at your service including home inspectors, pest inspectors, Real Estate Attorneys and many more. Title insurance is one of those things you will see on a good faith estimate and ask what is it and do I need it to purchase a home.

The answer is yes and no (sometimes you don't have to have it) but ALWAYS recommended. If you are financing your home, your lender will require you to obtain a title insurance policy. In NC the closing attorney usually orders the policy. If you are paying cash you may not be required to buy it, but it is strongly recommended and here is why:

Title insurance is a policy protecting the borrower or lender or both from loss or damage caused by a defective title to real property. It is different than most insurance in many ways, but the two most obvious are: 1) it is paid for by a one time fee at closing (typically $2 per thousand and varies per appraised value of property) 2) it covers not what may happen in the future, but what may have happened in the past. The way I usually explain this to my clients is just to picture you enjoying your brand new home and come to find out that many many years ago the farmer who owned the whole parcel your subdivision is on....never actually sold the property free and clear (for whatever reason). Somehow the title is not clear; called cloud on the title and you may not actually own the home. That is when your title insurance would kick in to protect you. That may not be the best example, but you get the idea. For more information on Real Estate please visit us here. Hope this helps.