Michael Sullivan's Home Equity Protector

Keystone Crossing a treat in RTP

2009-11-04T11:26:00.000-08:00

I went to an exciting broker open house yesterday in Research Triangle Park in a neighborhood called Keystone Crossing. The homes are on low maintenance lots and are dynamic, spacious, open, airy and finely crafted.

Savvy Homes has several models that simply knocked my socks off. These four bedroom homes at roughly 2300 square feet did not disappoint on any level. The home’s exterior design finishes are reminiscent of craftsman style homes. The vinyl clad exteriors with stone accepts don’t look like vinyl clad homes. Each home elevation offers something distinct and unique.

My favorite models were a two story with upper and lower porches. The upper porch of course opens off a gigantic master suites. My mind rushes to morning coffee and my book while perched above the street watching my neighbors start their day. Most of the Savvy built homes have either nine foot second story ceilings or vaults in all of the bedrooms. This feature really opens up these homes. My second favorite home had a lovely main level stone clad front porch. It felt like my grandmother’s home.

On the main level Savvy offers hardwood flooring, gas fireplaces and open floor plans. The Kitchen’s cabinetry is rich deep toned maple or cherry and counter tops are Granite. Each home offers a gas fireplace and a double car garage. Laundry facilities are all enclosed in a ROOM rather than a closet. This of course makes good sense for storage and for a cat owner like me, a home for the litter box.

Keystone Crossing’s price points are from the 220’s for Savvy built homes up to 270’s for Jordan built homes. The Jordan built homes are huge with finished third floor walk up attics and roughly 1000 square feet more of living space. Savvy Homes seems to be ahead of the game in this neighborhood with their product. The purchaser’s of homes in Keystone Crossing will most likely not need three thousand square feet. This is definitely a young family, single or young couples neighborhood. The yard sizes just don’t make the grade for play space, quarters would be cramped. For someone like me, the neighborhood makes great sense, nice home, small yard, low maintenance home and a Research Triangle Park location.

Interested in seeing Keystone Crossing, call me, I’d be glad to take you. Michael Sullivan, REALTOR, 919-608-2372

Professionalism and the practice of real estate as an educator rather than a sales person

2009-10-22T07:50:00.000-07:00

I think that I’ll keep beating my drum with respect to professionalism in the real estate industry; perhaps I can affect some change if I cluck on it long enough. I lost a sale on a listing yesterday, this is a sad and unfortunate event but it is not the end of the world. The seller, my client was being placed in an unfortunate and no win situation and one of my business hallmarks is win, win or no deal. Well yesterday we got to the point of no win for my seller client.

The seller in this situation had done a marvelous job of getting her home ready for the market and she had tackled most of it before I came onto the scene, which I so appreciate. The house had been updated, freshly painted, cleaned and made ready. The house sold very quickly which in the current real estate climate is wonderful. The buyers did flake a bit, made an offer, withdrew and offer and then came back two days later and reinstated their offer. The seller and I discussed this flakiness.

From the start I detected some lack of understanding on the part of the buyer agent with respect to the inspection process and the appraisal process. In spite of my comments that a bank appraiser is not charged with evaluating the condition of the property unless a glaring deficiency is readily apparent; the buyer agent wouldn’t digest that fact. He also wasn’t real clear with respect to VA lending timelines and guidelines and from the start I told him that I was very doubtful that we’d make his benchmark timelines in the offer to purchase and contract, but that we’d give it our best shot.

The home inspection repair request came late, just two days before our tentative closing date; so to any thinking person, we weren’t going to make settlement. I generated a modification of contract to modify our settlement date. We agreed to repairs with a closing for the end of the month. I never did get the contract modification back, but no bother. Here’s where the professionalism rub comes in. The buyer agent is not, unprofessional, he is untrained and this leads his buyer to the point of not understanding.

Had the buyer agent been properly trained he could have coached his buyer through the delay that he perceived to be on our end. The buyer agent could have also clearly explained the role of a VA appraiser and the home inspector. I don’t think the buyer was ever coached into knowing just who did what. This not knowing took us down the frustration super highway and ultimately the buyer is going to pull the plug on the deal.

Finally, yesterday I received an email from the buyer agent stating that the buyer wanted his earnest money back and that the buyer wouldn’t pay his home inspectors for the work that they’d completed on his behalf. Here again training would have helped all parties. The buyer should have been told that even if he didn’t settle on the home, he is responsible for these inspection costs and even though the seller had agreed to pay closing costs, with no closing there is no pay.

So in the end, because the real estate industry is still a trial by fire, learn as you go and try to do no harm while doing so; ultimately and in the end and as is so often the case, damage is done and people are harmed. The solution is a simple one, and could be mandated by each state to suit their needs, a three to six week comprehensive training period where new agents are educated as to how the real estate industry really works. Until we tackle this issue, we will continue to throw our clients and their hard earned money into an endless abyss.

5213 Echo Ridge Road Raleigh NC 27612

2009-10-14T11:30:00.000-07:00

5213 Echo Ridge Road Raleigh NC 27612

Here it is, just move right in and put your stuff down there is nothing left to do. This light filled townhouse has been updated and upgraded through and through. From the moment you drive up you’ll see it, there are custom built wide slat blinds at all of the windows. Inside the well appointed and décor painted living room you’ll notice new laminate flooring and a corner direct vent fireplace that simply says home.

The dining room with its sliding door to a rear patio space is also adorned in décor colors and new laminate flooring. The open floor plan allows the person cooking or working in the kitchen to be part of the party. The abundance of counter space, the white on white cabinets, the handy island and the modern appliances, which stay with this home make cooking a breeze.

On the second level is a plush master bedroom with cathedral ceiling and a wall of windows which fill the room with natural light. The master spa/bath adjoins the room and there is a large walk in closet. New carpet has been recently added.
The two auxiliary bedrooms are good sized and offer abundant closet space. All three bedrooms are just steps to the second floor laundry area.

Delta Ridge is a fantastic community located within easy reach of all that the Triangle has to offer. You can easily get yourself inside the Beltline or to mid town in just minutes. The North Carolina Art Museum is close at hand too as is any number of fine dining and shopping venues.

Visit our web site today to take a virtual tour www.TeamMichaelSullivan.com

Call or text us for a private showing 919-608-2372

Michael Sullivan is a real estate broker serving the eastern piedmont of central North Carolina, put his 16+years experience in this market to work for you.

4101 Five Oaks Dr. #23 Durham NC 27707

2009-10-14T11:14:00.000-07:00

4101 Five Oaks Dr. #23 Durham NC 27707

If space is what you need, space is what we have in this large three or four bedroom condominium. 4101 Five Oaks Dr. #23 is located within a very easy drive of both Durham and Chapel Hill, this home is seven miles to both Duke and UNC and the neighborhood is located just off interstate 40 and on a Durham Area Transit Authority and Triangle Transit Authority bus line. Getting to shopping, entertainment and fine dining is very easy.

4101 Five Oaks Dr. #23 has a bedroom and full bath on the main level. The kitchen and breakfast room have been updated with laminate flooring and fresh paint. The main level bedroom, hallway, living room and dining room have also been freshly painted and new Berber carpet has been added.

The second level offers two enormous bedrooms, two full baths and a laundry area. All of this space has been freshly painted too. The third level offers a generously sized “bonus” room or fourth bedroom.

This home has an elevated rear deck overlooking lush woods at the back and a peaceful pond in the near distance. Five Oaks is a full service amenity rich neighborhood. The community has a swimming pool, basketball courts, volleyball courts, tennis, a dog park, a 10,000 square foot club house with big screen televisions, a gym and a yoga studio. There are weekly events at the Five Oaks Club.

Visit their web site to learn more www.fiveoaksclub.comTake a virtual tour of this home at www.TeamMichaelSullivan.com

To visit this home for your own private tour call or text to 919-608-2372

Michael Sullivan is a full service real estate broker for the eastern piedmont of central North Carolina.

Oh I must have pinched a nerve

2009-10-07T08:23:00.000-07:00

In July I wrote an article on professionalism in real estate where I pointed out foibles that I had personally encountered and where I had a significant problems with certain behaviors. The posting has been removed from this site at the gentle recommendation of my association; I was accused of slander, but make no mistake about it, I stand by what I wrote. I have rephrased the article toward the end of this posting.

I did not ask my association who complained and who forwarded my words, I could really care less because the individual with the gripe, didn't, couldn't or wouldn't address me personally. That is a shame and points to the larger issue, which is an honest, public and open conversation about what we as real estate professionals do or don't do to promote or destroy our professional integrity. In this case the whistle blower is villified as is so often the case.

With that said, I still insist and will continue to do so; that until we, real estate professionals, have an open and honest public discussion with respect to our professionalism, then not much will change. Truly one of the problems with our industry and trade organization is that some nameless and faceless somebody can levy a perceived "ethics" complaint and therefore stifle public discourse and recognition of less than professional behaviors and sometimes illegal behaviors. Of course this done in the guise of internal modification and policing and the general public is none the wiser. Perhaps in this cloak and dagger behavior we can determine why real estate professionals are not trusted and under valued.

To my accuser,my phone is on, my email is open and I am ready to converse. I will stand firm in my belief that my ethics are fine, I committed no slander. I encountered problems, I addressed problems and then I reported problems because I believed that people have a right to know. The REALTOR code of ethics states I won't "slander" another REALTORS business practice. Well addressing verifiable, tangible instances of un ethical or illegal behavior is not slander. Especially when I can provide the names, dates, agents, non agents and properties in question and will do so if pressed.

Let me be very clear, I am proud to be a REALTOR, countless people have dedicated countless hours of their time and lives in order to make the REALTOR moniker a respected name and symbol. After two weeks of though I have rephrased my general beefs from July toning down the agency names to as general as I can, but any thoughtful person will be able to connect the dots.

I recognize in these very trying economic times that sometimes people feel the need to lash out at one who they have perceived to have done wrong and that's fine, but charges of slander are serious. Let's keep in mind what slander is; slander is malicious and false; done deliberately to malign and harm; my statements about lock box codes being passed around and open houses being hosted by non-real estate professionals lacking a proper license is not slander, I witnessed it first hand, I saw it and so did others, these actions can be proved, ergo this is not slander. I also called managers and pointed out to the non licensed open house holder that what he was doing was illegal.

In the July posting that I'm referencing, I cited the fact that two agents with a huge franchised broker in Chapel Hill, the biggest one, felt inclined to give combinations to lock boxes to home inspectors and not attend their home inspections for their buyer clients. Yet, they happily held out their hands to collect 2%, 3%,3.5%, 4% or more in commissions but I asked where is their agency loyalty to their buyer clients? I asked where is their sense of diligence and care in protecting my clients property? I did refuse both agents their request to dole out combinations to my listings, even though one of these ladies felt inclined to give her unlicensed assistant the code to my listing and send her assistant instead. She claims to be entirely too busy to attend inspections, those were her words. Her cohort did find a stand in to attend the inspection.

In another instance I have first hand knowledge of an agent with the "Big Blue Rock agency in Durham" who has hired a non-licensed individual to hold open houses for him and paid a "bird dog" fee if said open house holder should procure a buyer. A violation of N.C. real estate law.

For what it is worth, I'm happy to discuss this with my accuser but I rather expect that they really don't want to hear what I have to say. Finally, I believe it is in the best interest of everyone, REALTORS, the general public and our profession if we discuss issues in an open and transparent fashion. Not to do so simply perpetuates the problems that we face.

3406 Freeman Road

2009-10-06T12:11:00.000-07:00

3406 Freeman Road is located in eastern Durham county in the Greyson's Green neighborhood.

Greyson's Green offers larger home sites, established landscape, low traffic neighborhood streets, which are easy to walk and their is community recreation.

3406 Freeman Road has been freshly painted through out the entire interior. the carpets have been freshly cleaned but with the right offer the sellers might consider switching them out. Inside you'll find large rooms. The living room at the center of the home is spacious with a wood burning fireplace as its focal point. The kitchen and dining room are large, light, bright and have modern appliances which stay with this home.

The bedrooms are all good size too and the master, which measures 17 x 14 is huge with a large walk in closet and a private bath.

The siding on this home is now vinyl so there is now worry there and a large deck overlooks the rear yard.

3406 Freeman Road is just minutes to RDU, RTP, Duke, Durham and almost all Triangle points.

Call Michael Sullivan, REALTOR with Fonville Morisey to see this home...919-608-2372 mobile/text or
MSullivan@fmrealty.com
TeamMichaelSullivan.com

Current Raleigh Durham Real Estate Market Conditions

2009-10-02T08:27:00.000-07:00

Busy month’s end and wondering what is on the horizon….

I was reading the TARR report the other day and some of the information contained therein was a little scary. In 2007 the market appreciation rate for real estate in Raleigh/Durham was…..0%. In 2006 the rate was 1.82% and in years previous the appreciation rate ran right about 3%+/-. Raleigh/Durham didn’t have a “bubble” like other parts of the country. The exception, Chapel Hill, inside Raleigh’s Beltline and some of Durham’s vintage in town neighborhoods.

While the “meltdown” in real estate was in process many of us, myself included were clueless as to how bad it really was. I knew it was bad, in the lead up to the meltdown I sensed it would be bad but as it happened I put my head down and just tried to fight my way through it.

Thankfully in summer 2009 prices have finally stabilized but there has been some collateral damage. Some of my seller clients pulled their homes from me and went with other agents under the false impression that I somehow control the market. There was also the false assumption that my marketing, or open houses somehow sell homes, both of these factors can influence but the over-riding factor that causes property to sell is price. I will freely admit that in the last three years pricing homes has been much more difficult than in past years.

With one past client in particular I was able to secure a price reduction and after two weeks and no offer, this all during the spring of 2009; during a conversation about price my client said to me that he felt his home was underpriced. Well it wasn’t, and I nicely told him so, otherwise his home would have sold. He finally sold this week for $350,000 some 29,000 below his “under-priced” price. He did move brokers but sadly for him the market dictated exactly what it was willing to give him for his home. Other clients made a move too, this after stating that 219,900 was their rock bottom price; I saw today that their home now on the market 42 days with a new broker is listed at 214,900, ouch. My comfort in all of this, it wasn’t my fault and the market influences were way beyond my control.

Previously, with a 2% or 3% appreciation rate there was typically several thousand dollars worth of leeway in pricing homes. Since 2006 this has ceased being the case. As values fell, pricing became like shooting at a moving target, a target falling into a huge abyss. Regionally values have contracted by roughly 20% and more in neighborhoods where foreclosures and previous market speculation have added more pressure to the market.

So for 2010 I am optimist. Visit my web site...TeamMichaelSullivan.com

3427 Balfour East Durham NC 27713

2009-09-28T12:30:00.000-07:00

3427 Balfour East is located in the Villages of Cornwallis neighborhood in Durham North Carolina.

This two bedroom, two and a half bath townhome is move-in ready. There is new vinyl flooring in the entry, half bath and kitchen and new wall to wall carpet, in a neutral beige color, in the rest of the home.

The entire interior of this home has been freshly painted in soft egg shell white and the trim in a semi gloss bright white. The effect is crisp, clean and fresh.
Each of the upstairs bedrooms has a private full bath and each bedroom also has an abundance of closet space. The laundry closet is located at the second floor too.

3427 Balfour East is just steps to the community pool and tennis courts and shopping is just minutes away. You’ll love the fact that this home is just minutes to Research Triangle Park, Duke University, NCCU and Raleigh Durham International Airport.

Call Michael Sullivan, REALTOR, Broker, SRES, Epro to arrange your private showing of this home.

Michael Sullivan has made residential real estate his business for 16 years in Raleigh, Durham, Cary, Apex, Chapel Hill and outlying areas of central North Carolina.

MSullivan@fmrealty.com

919-608-2372 mobile/text
See us on the web at www.TeamMichaelSullivan.com

Home Inspectors

2009-09-21T14:12:00.000-07:00

Home inspections

More and more these days I’m being subjected to and my clients are being subjected to home inspections that are a $400 joke. I’m looking at an inspection report right now, where there are some issues, but the inspector has not pin pointed the issues. So my seller client and I will have to muddle through and guess.

I quote:

There are numerous instances where the caulking has separated from the seams and along the ends where the coverings meet the sills.

On the surface that seems like a fair observation. But hold up one little second. This home has, perhaps eleven windows and this home inspector, who evaluated 2404 Cynthia Drive, here in Durham has not even taken the time to point out which windows need attention. So now my seller client and I have to try to divine which windows he was talking about and which windows the buyers are most concerned with.
Another issue and I quote:

There were several locations where the receptacles were noticeably loose when tested. We recommend that all receptacles be examined for looseness and repaired if necessary by a licensed electrician.

Ok, well excuse me Mr. Inspector, you’ve collected your fee but you really haven’t done your job now have you? How hard is it to say that there is a loose receptacle in this location and in that location and here and there and that they need to be fixed. Not hard, easy in fact and that’s what a true professional would say. This is why I prefer A-1 House Inspectors and Rowley Home Inspections, there is no guess work and I don’t have to try to figure out what needs to be done.

All of this slip shot work leads to eventual problems prior to closing and those frantic phone calls from buyer agents stating that your seller didn’t do this and they didn’t do that. Well, hello, we would do our this’s and that’s if someone would tell us exactly what they are. Unfortunately North Carolina's governing agency for home inspectors really doesn’t provide for thorough outcomes. Too bad for the consumers of this state.

Michael Sullivan's home ownership tips

2009-09-14T06:30:00.000-07:00

Sticking with it, trying hard and riding a market correction

Most Americans don’t realize just how close we came to economic ruin in the fall of 2007 and into 2008. A year ago today Lehman Brothers failed and filed for bankruptcy. To be sure today various new outlets are carping that the economy is still on the minds of most American as a worrying point. Home sales have remained slow, REALTORS are leaving the business; mortgage brokers have left the business. Frankly, real estate will never be what it was five years ago. The industry is fundamentally changed. This change is a good thing too.

Right or wrong a year ago the federal government with TARP money nationalized our banks. The most powerful banker in the United States right now is the president of the United States. American individuals have put their combined noses to the grindstone and cleared away unprecedented amounts of personal debt, a very good thing. Our government now needs to follow suit. The outlook for the overall economy is improving and the focus should now move to job creation.

The savvy and smart home owner in the coming months and years will focus on sound equity building strategies. These strategies include but are not limited to the following. Extra money should be included monthly as applied payment to loan principal. The use of home equity loans, second mortgages and the like should be curtailed or eliminated if at all possible. The focus of any home owner should be out right home ownership, lien free and unencumbered. These ends can easily be achieved with a little extra to principal monthly. If one budgets and sticks to the plan then there will be success. Property ownership should be viewed as a sound savings system.

Finally once these “home ownership” systems have been fine tuned and put in place then individuals should focus on credit card debt reduction and additional savings to sound systems. My advice, place a majority of savings with sound financial institutions in the form of certificate of deposits or CDS and a minority savings in stocks and mutual funds. Now with the stock markets at September 2001 levels it might be a good time to invest in some of your favorite companies. I invest in companies that I like; BBandT, RJR Nabisco, ConAgra and PPD just to name a few

Red shoes...red home...find it...buy it...

2009-08-20T08:41:00.000-07:00

Red Shoes….

You need a pair of red shoes to go with that outfit. You go to the mall, you go to your favorite store, you find a pair of red shoes. You try them on, they fit perfectly. They sparkle, they shine, they are brilliant. The price is right, the fit like butter to your feet. Do you buy them, no of course not, you go to every other store in the mall looking for a better shoe and then ultimately come back to the first pair hoping that they are still there.

This is not the way to buy a home, in this market or any market. National news media has been howling for months that it is a buyer’s real estate market. Well that is and isn’t true. It might be a buyer’s market in Nevada where one in fifty four homes is in foreclosure. Here in Raleigh/Durham that is not the case and if one is looking for a home outside a mc subdivision it is difficult to find the right home, at the right fit and at the right price. My advice to buyers, once you have found the right fit….buy it or it may not be around tomorrow.

4100 Five Oaks Dr.

2009-08-14T09:22:00.001-07:00

4100 Five Oaks Dr. Unit 14 Durham NC 27707

This is one of those homes where we could go on and on about its custom features. This home was built in 1974 and except for its mid century contemporary exterior design features all vestiges of the 1970’s have been banished and done away with.

Inside the front door you’ll notice a stunning and completely rebuilt stair case. The hand rails have been updated with high gloss white paint and the wrought Iron rails painted silver for a clean, refined Urban Chic feel. The dated dark 1970’s tiles have been removed and modern sand colored ceramics added. The main level flooring is 25 year laminate and is virtually care free. Lighting fixtures, window treatments and decorative elements are a finely tuned combination of antique and modern.

The kitchen with newer appliances and a tremendous amount of cooking and pantry space is a cook’s delight. Natural light floods this home from a set of sliding doors in the breakfast room, a set in the dining room and a set in the living room. Additionally the two sided wood burning fireplace in the living room is a fantastic focal point and the views onto the well landscaped and fully established courtyard are soothing and welcoming.

Off the sophisticated dining room is a covered rear porch with ceiling fan and plenty of room for outdoor entertaining.

Upstairs are three bedrooms. The master suite has been completely reconfigured. An oversized whirlpool tub has been added along with Italian slate flooring. The vanity top was reclaimed from the American Tobacco Complex and is vintage and lovely. State of the art custom closets have been added at the master suite to help keep belongings organized. The second bedroom currently being used as an office is light filled and spacious. The third bedroom at the back of the home overlooks the rear courtyard space. There is also a full laundry on the second level.

Five Oaks offers the best location in the Triangle. This community is nestled between Durham and Chapel Hill and Duke and the University of North Carolina at Chapel Hill. Shopping and fine dining are literally just minutes away and the Five Oaks Club House and recreational Association offer year round activities for Five Oaks residents.

Call or text Michael Sullivan- 919-608-2372 and his team today to see this chic, sophisticated and stunning home. You’ll be glad that you did.

First Time Home Buying Seminar in Durham Nc

2009-08-10T08:25:00.000-07:00

Free First Time Home Buying Seminar by Michael Sullivan, Realtor, Broker, e-pro, SRES

Michael Sullivan
Durham NC 27707

It occurs to me that although I prospect to my business base for first time home buyers, perhaps I need to merge my two loves, teaching and real estate to really help and enable first time home buyers. Let’s face it, like buying a car, buying a home has got to be a scary project to tackle. Home buying is much more complicated than automobiles because most of the variables are in the hands of the seller and the buyer rather than a dealership.

With this in mind on Thursday September 17th, 2009 at 7pm I will be conducting a home buying seminar with some industry buddies of mine, where we will outline how it is all done, where the pitfalls are and how to work toward a happy and rewarding outcome. The event will take place at the Five Oaks Recreational Association Club House at 5109 Pine Cone Dr. Durham NC 27707. The program will last roughly an hour and a half.

Seating is limited so we’re asking participants to register in advance at MSullivan@fmrealty.com We will be offering restaurant gift cards, Starbucks Cards and Gas Gift Cards as door prizes and for folks who purchase a home through me within a year of the program I will offer a HSA Home Warranty and up to a $500 Closing Cost Benefit.** So any way you slice this event it is win, win. I get to meet neat people, I get to teach and they get some sound advice and education about this process.

To help move things along, I’ll have a trusted mortgage lender, home inspector and attorney on hand to answer questions and make brief presentations to the seminar. Of course we’ll wrap it all up with questions and answers and a refreshment time. We’ll also offer a grand door prize of a gas barbeque grill. So whether or not our attendees purchase a home, they’ll have a chance to go away with some neat stuff and some valuable information.

120 Madres Lane Morrisville NC 27560

2009-08-05T12:05:00.000-07:00

120 Madres Lane Morrisville NC 27560

Live in the heart of Research Triangle Park! 120 Madres Lane located in the lovely, well planned and pretty neighborhood of Carpenter Village is literally at the heart of the Research Triangle Region. This three bedroom, two bathroom townhouse is neutral, light, bright, open and airy and at $182,000, just waiting on a new owner.
At the front of the townhouse are two large bedrooms and a full bath with transom window. One of the bedrooms has a lovely palladium window and the ceilings in both bedrooms are high.

At the center of the home is a huge, huge, huge combination living room, dining room complete with fireplace. Adjoining that space is an ultra modern kitchen with breakfast bar and upgraded appliances. The cook can cook and remain part of the party. There is also a proper utility room for storage and laundry.

At the back of the home is a spacious master retreat with vaulted ceiling and adjoining spa bath. Outdoor living at 120 Madres Lane is easy with a completely fenced courtyard and a community pool and park just steps away. Shopping is easy too with upscale retail space within walking distance.

Care to learn more? Call Michael Sullivan with Fonville Morisey Realty at 919-608-2372 or email MSullivan@fmrealty.com

Good News for Real Estate Consumers, Hopefully

2009-07-20T07:57:00.000-07:00

Good News for Real Estate Consumers-Maybe

In April a U.S. District Court ruled against real estate brokers who charge a $149 administrative fee to their real estate clients in addition to commission. For years I’ve had a strong opinion about my competitors charging this fee to their clients and it showing up on the HUD-1 settlement statement and I guess the judge did too. The ruling, that this fee violates section 8b of the Real Estate Settlement Procedures Act or RESPA.

RESPA strictly forbids charging for services unless a service is actually performed. Locally and nationally my competitors have argued that this fee is needed to help keep costs down? Ok, I get that, but please tell me; where is the service to the consumer? There isn’t, this is one of those smoke and mirrors behaviors that cause the general public to mistrust and sometimes even despise real estate agents and their brokerage firms.

What my franchised competitors have done is slipped a financial Mickey to their clients. They have been doing this for years. I can look back over ten years of HUD-1 settlement statements, and in cross sales with one particular competitor company, and I see time after time a $150 transaction fee. This franchised company calls their fee a document handling fee. In fact it is a transaction fee and my company has one of those but they require that I pay it and not the consume. I think perhaps that’s the right way to go. My question to my competitor is; what benefit does your client derive from this fee? I’m curious to know.

They may bluster that it is only $150 but if you add that up to over 6,000 transaction sides that this particular company had only last year alone, well the number is a staggering $900,000 in un-earned revenue. This is indeed a costless revenue stream or pure profit. It is pure profit on the backs of a client base; I think that it is unfair and deceptive too.

So the National Association of REALTORS, a group to which I belong will most likely appeal this case on behalf of NRT and other large franchised real estate companies. This is of course another reason why some REALTOR members such as myself distrust the NAR, they are it appears and according to their own publications clearly only interested in the well being of select members of the organization. We’ll see how it plays out.

Source: www.Realtor.org/realtormag July/August 2008 page 15

Why are we where we are; an analysis of the current housing market

2009-07-17T11:31:00.000-07:00

Why are we where we are; an analysis of the current housing market and a retrospective look back at the first decade of the 21st century.

In contemplating the number of active listings in Triangle Multiple Listing and the amount of time it is taking homes to sell, I have embarked on a mission of discovery to try to understand why the housing market and the economy is in the condition that it is in. I imagine that historians may look back and see an outright economic depression in the later years of the first decade of the 21st century. The culprit is the culprit of each and every economic depression unfettered greed and Wall Street speculation.

So what happened? Somewhere around 2004 and 2005 the housing market began to cool. Why? Sound borrowers had purchased homes and the pool of safe bets and credit worthy people had dried up, this is a completely natural cycle. Also, new construction was still out pacing demand and values on newly constructed homes had become drastically inflated next to that of resale homes. Wall Street and the banks went looking for a new pool of buyers to bolster lagging homes sales and they found that pool in sub-prime borrowers. These borrowers were bad credit risks. Over and over in 2004 and 2005 I heard people quip, this is just too good to be true because borrowing money was so easy. Well it was just that, too good to be true.

Another key component in creating this mess is a funny animal named the M.B.S. or mortgage backed security. Prior to the M.B.S. banks would perform extensive due diligence with respect to borrowers; they would explore employment, income, debt history and verify those components. Borrowers had to jump through multiple hoops to acquire a mortgage. Why? Banks were responsible for repayment and wanted to protect themselves.

The M.B.S. took away that risk, kind of. Home mortgages as part of a M.B.S. were packaged and sold to other banks and investors like Bear Sterns and then divided up into more securities called trances (French for slices) and resold to more investors including banks, pension funds, foreign governments, local governments and so on. So far so good, M.B.S. had always performed well, solid home owners and borrowers pay their bills and so M.B.S. earned dividends and profits.

Banks operating from a place of “no risk” had stopped performing due diligence, they had nothing to worry about. These new risky loans were being sold off as M.B.S. so the perception was that banks had no risk, or so they thought. Of course most banks were buying these toxic assets which were being sold and resold all over the speed of light world-wide economy. So in 2007 the housing market starts to cool again with ample and over-valued housing inventory and variable rate mortgage loans made to sub-prime, high risk borrowers, start to reset at higher levels.

These high risk borrowers with 100% loan to value loans or 105% loan to value loans or even 110% loan to value loans suddenly cannot make their payments and the housing market is saturated with new homes and resale homes being sold at over-valued speculation. We’ve all heard of flipping, well flipping is speculation that someone will make a profit. Suddenly with oversupply, value does what is natural and declines. So many sub-prime borrowers were not faced with just a 5 or 10 percent decline in the value of their home but rather a much higher decline in value and since they had no capital in, in terms of collateral, they walked away and defaulted. They had no investment or jobs so why not just let the bank foreclose? These borrowers were a poor credit risk from the beginning and many had no credit worthy history and this behavior is normal to them.

So now all of the holders of M.B.S., which is you me and everyone else with investments is left unknowingly holding the bag. In 2008 the credit markets freeze up because banks have to figure out what the assets they have look like. In a lot of cases those M.B.S. assets are worthless. Bear Sterns is a prime example, ten days before it was purchased by its rival J.P. Morgan, Bear Sterns stock sold for $70 per share, J.P. Morgan’s purchase price, $2 per share, all because of M.B.S., they gutted the company. In 2008 toxic M.B.S. where everywhere; they were at Fannie Mae, Freddie Mac in our pension funds, at our insurance companies in our banks, held in our mutual fund portfolios; everywhere.

The solution to this mess would not be a simple one. Do nothing and the world wide economy would collapse and we’d paper our walls with our paper money as would the rest of the world with their paper money. In real estate and mortgage lending the fly by night, fly by the seat of your pants, do anything for a deal players are out of the industry or in jail. Regional banks are fairly solid and still lending but the pool of available buyers is much smaller than the heady days of 2003, 2004 and 2005. The market is still saturated with listing inventory and the recovery in housing is a bottom up recovery and will in all likelihood be a very slow one. Ultimately it will take years for the housing market to correct; it will take years for the debt incurred to bail out our financial industry to be paid back and years for our economy to rebound.

To date the tax payer has footed the bill for this mess of this but anyone looking for blame and recompense should look to the banking industry and Wall Street. The financial industry ultimately needs to be responsible for paying back this debt. Congress the Administration and States should consider a modest short term windfall profit tax on financial institutions directly correlated to net profit to replenish the treasury and pay down the debt incurred to bail that same industry out.

Sources
• Locke, Tom. "Foreclosure rates up, but national numbers better." Denver Business Journal. March 25, 2005.
http://www.bizjournals.com/denver/stories/2005/03/28/story2.html
• Isidore, Chris. "Housing slowdown continued in August." CNN Money. September 25, 2006.
http://money.cnn.com/2006/09/25/news/economy/homesales2/index.htm
• Farrell, Greg. "JPMorgan gets Bear Stearns for a bargain-basement $236M." USA Today. March 17, 2008.
• Thompson, Boyce. "Foreclosures peaked?" Builder. September 26, 2008.
http://www.builderonline.com/blogs/postdetails.aspx?BlogId=thompsonsblog&postId=85200
• Wilson, Chris. "What are mortgage-backed securities, anyway?" Slate. March 17, 2008.
• Zibel, Alan. "New home sales skid, while mortgage rates jump." Associated Press. September 25, 2008.
• "Consumer handbook on adjustable rate mortgages." Federal Reserve Bank. May 17, 2007.
http://www.federalreserve.gov/pubs/arms/arms_english.htm#paymentshock
• "Freddie Mac mortgage portfolio drops at record pace." Reuters. September 26,
• "Median and average sales prices of new homes sold in United States." U.S. Census Bureau.
http://www.census.gov/const/uspricemon.pdf
• Clark, Josh, How Can mortgage backed securities bring down the US economy

640 Piper Stream Circle Cary NC 27519

2009-06-25T06:35:00.000-07:00

640 Piper Stream Circle Cary NC 27519

This lovely home is marketed by Michael Sullivan and Team Michael Sullivan with Fonville Morisey Realty.

640 Piper Stream Circle is nearly new and shows that way too. If you desire a home where you can move right in and put your stuff down and not have to worry about fixing anything, then this is the place for you.

This home located in a peaceful neighborhood is commanding through and through. The combination living room and dining room with its hardwood flooring and abundance of windows floods with natural light. These rooms flow so easily into the spacious family room, with fireplace, the breakfast room and a kitchen that just says wow!

The kitchen is truly a cook’s delight with top notch appliances, a large center island for staging and cooking, a ceramic tiled backsplash, tons of cabinet and counter space and a well through out and efficient lay out.

Need room to grow, or a bonus area or a play room. The loft space on the second floor offers this. Games, toys, puzzles and homework can be tackled and left out in the intimate space close to the bedrooms on the second level. Upstairs is a glamorous master bedroom retreat with spa bath and huge walk in closet and three additional bedrooms and a proper laundry room. Throughout this home you’ll find scads of closet and storage space.

Need a main level bedroom? The current owner upgraded this home when she purchased and added a main level bedroom and full bath just in case someone had trouble with steps.

You’ll love the lot with an irrigation system, a wooded buffer and two covered porches. Want to see inside or learn more….call us or text us at 919-608-2372 or visit www.TeamMichaelSullivan.com to take a virtual tour of this home and many other fine homes.

What Homes are Selling in Raleigh/Durham and the Eastern Triad and Why

2009-06-15T10:36:00.000-07:00

What’s Selling and Why

There has been a noticeable up tick in some sales within the Raleigh/Durham and eastern Triad real estate markets . To be sure bargin hunters are out and they are looking for deals. They are also not afraid to walk away if a seller isn’t willing to negotiate in hard fashion or offer some sort of incentive to motivate a sale.

I see incentives working across the market. The first incentive which seems to be driving traffic to listings and encouraging offers on those listings is a buyer agent bonus. When possible I am encouraging my seller clients to offer a 1% buyer agent bonus for an acceptable offer. I’ve had success with this tactic many times this year.

The second tactic, usually added in conjunction with a buyer agent bonus is a buyer incentive. When possible sellers should consider offering generous seller paid closing costs to potential buyers. The number that I see working this year is $3,000 or $4000 in seller paid costs. Of course this is negotiable.

When seller paid costs and a buyer agent bonus is attached to a price modification or reduction of price, the result is generally very positive. Showings increase and offers have been tendered. Are the offers just what the seller wanted? Typically not, there have been multiple rounds of counter offering to get a home pending but the happy news is offers are made.

Sellers in the best position are those with equity to play with. Typically home valuation in our region is off some ten to twenty percent or so on average from market highs of 2005 and 2006. This deflation in values depends tremendously on location and type of property.

1402 Holly Grove Way Durham NC 27713

2009-06-10T13:24:00.001-07:00

1402 Holly Grove Way affords space, versitility and convienence. This three level townhome has been enhanced and updated at every turn.

The main level has a large one car garage and a huge family room with French doors that lead to a main level patio. The patio is bounded by lush and established shrubbery.

On the second level is a cook's delight kitchen, a breakfast area, a formal dining room and a large formal living room. The focal point of the living room is a gas burning fireplace and French doors here lead to an elevated rear deck.

The thrird level has a spacious master suite with adjoining spa bath, an additional bedroom and bath and laundry area.

A one year warranty is offered on this home for piece of mind.

Call us or text us today at 919-608-2372 to see inside.

4904 Pine Cone Dr. Durham NC 27707

2009-06-04T15:56:00.000-07:00

4904 Pine Cone Dr. Durham NC 27707 listed at $144,900
Five Oaks

Play where you live, walk to where you shop and eat and enjoy residing seven minutes from UNC or Duke. Truly the best of all worlds are found here in Five Oaks.

4904 Pine Cone Dr. is a two bedroom, two bath end unit townhouse that feels like a detached home inside. At 1036 square feet you will be surprised at how large this home feels. The living room with a cathedral ceiling and a bank of sliding glass doors is light filled. There is a large rear patio bounded by gardens and woods. The current owner an avid gardener has planted a tremendous amount of blooming perennial plants.

The galley kitchen with modern appliances and ceramic tile flooring can easily be closed off by two pocket doors.

This entire property has recently received a fresh coat of paint and the wall to wall carpets have been freshly dry cleaned. Additionally the heating system is newer too as is the water heater.

A one year HSA is being offered for the buyer’s piece of mind.

Interested in seeing inside? Phone or text Michael Sullivan at 919-608-2372 or email MSullivan@fmrealty.com

56 Citation Drive Durham NC 27713

2009-05-29T11:11:00.000-07:00

56 Citation Drive Durham NC 27713

There is so much nice that can be said about Woodcroft and the homes in Woodcroft and such the same is true with 56 Citation Dr.

This stately brick fronted, end unit, townhouse sits on a cul de sac lot which is lushly landscaped and established.

On the main level is a huge eat-in kitchen with a tremendous amount of cabinet and counter space. The room floods with natural light through a bay window and a side window at the kitchen sink. Steps away from the kitchen are a light filled dining room, with hardwood flooring, and a huge formal living room also with hardwood flooring and a wood burning fireplace.

A large rear deck sits off the back of this home.

Guests never have to venture upstairs to the bedroom level because there is a main level powder room and a tremendous amount of coat closet space on the main level.
The second level with its freshly cleaned carpets is spacious too. There are two nicely sized auxiliary bedrooms and a deluxe master suite with spa bath, soaking tub, stall shower and two sinks. The master bedroom is also vaulted.

56 Citation Drive has a full basement with one finished room and a whole bunch of unfinished space, useful for storage or a home gym or a workshop or studio.

For a private showing or for more information call or text Michael Sullivan and Team Michael Sullivan at 919-608-2372 or email MSullivan@fmrealty.com

715 Fairfield St. Burlington NC 27215

2009-05-21T08:57:00.000-07:00

715 Fairfield St. Burlington NC

Do you need some room to grow? Here it is. Lots of work has been done to make this post war cottage a comfortable home. The living room, hallway and bedrooms are adorned with hardwood flooring adding warmth to this home.

The main level has a sun room for reading and reflection, this space is heated and cooled. There is a cook’s delight kitchen with Corrian counter tops, gas range, built in microwave oven and tons of cabinet and counter space. Adjoining the kitchen is a light filled dining room.

The main level of this home also offers an elevated rear deck overlooking a fully fenced backyard, one full bath and one half bath, two bedrooms and a laundry room.
Upstairs is “bonus” space which could be used as a bedroom, storage space, study or any combination of all three.

You will love the fact that the roof, HVAC, windows, siding and many of the home’s systems has been updated.

715 Fairfield St. is just minutes to the Triangle or Triad.

For a private showing or for more information call or text Michael Sullivan and Team Michael Sullivan at 919-608-2372

5207 Langford Terrace Hope Valley Farms Durham NC 27713

2009-05-21T08:30:00.001-07:00

5207 Langford Terrace Hope Valley Farms Durham, NC 27713

You got to love it. This large home is absolutely flooded with natural light on the inside and sits at the nexus of two cul de sac streets on the outside.
Outside entertainment is made easy on the large rocking chair porch and on the oversized rear deck.

Inside there is a large formal dining room, a cook’s delight kitchen with built in microwave and 42 inch cabinets and an adjoining breakfast room. Holiday and entertaining are made easy with the family room being just steps away and its focal point being a fireplace.

Upstairs there is a tremendous master bedroom with adjoining spa bath with double sinks, soaking tub and stall shower. The three auxiliary bedrooms are large too and offer abundant closet space.

Walk to the Hope Valley Farms club or meet friends for a bike ride on the American Tobacco Trails then stop off from refreshments at any of the food venues along the trail.

5207 Langford Terrace is just minutes to RTP, Duke, UNC and Raleigh Durham International Airport.

For a private showing or for more information call or text Michael Sullivan and Team Michael Sullivan at 919-608-2372

Where is it all going?

2009-05-15T11:57:00.000-07:00

The bottom of the market may be at hand. Like so many others working in finance and business I am reluctant to say that we are there. Since 2006 yes that's right, 2006, home values have declined on a nationwide average of some seventeen percent while volume in sales is down nearly fifty percent. This according to Real Capital Analytics Inc out of New York.

Ouch! So let’s hope that this is the bottom. Where do we go in the future and what does home valuation look like over the next two to five years? To answer that we have to know where we are now. According to the TARR report in the first quarter of 2009 in Durham County the number of detached home sales was down 23.34% against 1Q 2008, condo sales were down 42.86%, townhome sales down 52.63%, newly constructed home sales are up 48.7%. Sold prices in all categories except condominiums are up between 2% and 3%.

For the next 2 to 5 years I see home prices in Raleigh/Durham as stable except for condominiums. I’ll explain that one in a moment. Builders are now building on demand, which means that there is little if no new home inventory. Buyers purchasing new homes are coming in, cash in hand and upgrading their dream home and waiting five to six months to close.

Resale homes are starting to sell again and should expect between 0% and 2% appreciation in value depending on geography. Southwest Durham, Chapel Hill and neighborhoods along the interstate 40, corridor should expect the best net result while folks in North Durham and further out should expect a relatively flat appreciation rates if any. Resale homes are selling due in large part to a 18% decline in inventory between 2008 and 2009 1Q.

Condominiums will remain the problem children within the market dependent on what the particular property looks like. Condos in established neighborhoods like the Duke St. warehouse, Five Oaks and Woodcroft should do fairly well while the glitzy, high dollar, high profile, urban and urban wannabe properties will continue to suffer and not sell without significant pricing reductions.

Home buying consumers will be unwilling in the next two to five years to dump $300,000 plus into small one and two bedroom condominiums when they can buy a comparable detached home or townhouse for $150,00 to $200,000 dollars. Penny wise consumers will avoid the exorbitant monthly maintenance fees in these condo properties recognizing that a la carte gym memberships and other amenities are more cost effective. Developers of this type of property will be wise to realize that declining stock and 401K portfolios mean less disposable income.

Interested in knowing the value of your home or the best deals in our market? Call me or text me and I will complete a free no obligation home pricing evaluation. If you do have to sell your home, I have tools and techniques in place to help you succeed.

What a world

2009-04-28T08:23:00.000-07:00

What a world, what a world.

I am so thankful that this past weekend I showed like sixty homes to three different couples. I am also tired. Thankfully there are offers on some of my listings too. Regrettably in some instances I have to do the work of other agents, but that’s what a professional who wants to get deal closed does.

An offer came in on one of my listings on Saturday morning. I knew when the buyer’s agent phoned me before nine thirty in the morning that the offer would be low. Typically human tells are pretty consistent. The offer came and it was indeed some fourteen thousand dollars below asking price and a market analysis and lengthy explanation was included too. I presented the offer to my seller late Saturday evening. He wasn’t thrilled. This seller couple is very savvy and knowledgeable.

Cutting to the chase, we countered the low offer, I included some comparables and the buyer’s agent called to debate shortly before eight o’clock last night. In a nut shell, she challenged our pricing, she challenged the seller’s ability to close and she challenged my comparables. All of this challenging made me question myself, so as soon as the conversation was over, I went to multiple listing to check myself.
Simply put I found three perfect and recent comparables that justified my seller price range. I did follow up with an email to the buyer’s agent and haven’t heard back from her yet. While in multiple listing I pulled up the other agent’s sales records. Here in the Raleigh/Durham Triangle, she’s had six sales, six sales!

So, what is my issue, do I have an issue? I do, first, any of us can make numbers justify anything that we want to justify, a high asking price or a low offering price. It’s important to understand that fact going in the door. Second, the late evening phone call last night took us all down a path that none of us belong on, that being trying to play mommy or daddy to adult people. My seller clients are adult, we’ve reviewed comparables, they know their property and they are very aware of their responsibility as adults.

My question is; are the potential buyers in the same place. Their agent has explored what she believes is an accurate accounting of the seller’s financial standing, per public record and based on that information has drawn erroneous conclusions and fed those conclusions to her buyer clients. This causes anxiety and trepidation in their minds and really takes everyone’s eyes off the ball; getting the house sold.

So seeing through the minutia I hope that my counterpart carefully reviews the comparables sent last night and can counsel her clients back from the edge. Unfortunately I see the writing on the wall with this one; it will be difficult and trifling right to the end. We have stated on the wrong foot.