CASEY DURANGO. Realtor®.

I answered an online inquiry someone made to me regarding HOA (Home Owners’ Association) dues on a property listed by my company. I received an email reply that read, ” The HOA sounds EXTREMELY high. You would have to do a lot more convincing for me to want to look at the property”.

This is an example of how many misunderstand the role of a good real estate broker. And it’s understandable as the process of working with a broker generally ends up in real estate being sold. But in reality, a good broker doesn’t do the selling. Webster’s defines “broker” as “one who acts as an intermediary”.

Granted, there are some agents who do try to sell, to push, to - dare I say - convince a buyer of something.

I am not one of those agents and most good brokers aren’t, either.

Who are we to try to convince someone what they like or where they should live? We’re not going to be making the mortgage payments or mowing that yard or living amongst those neighbors.

A good broker’s job is to facilitate the process of someone achieving their goal in buying a house. As much as anything the broker should play devil’s advocate: point out things that a buyer, nervous and excited about the prospect of moving, may miss. A buyer will know whether they like the size of the backyard but they may not think about the fact that the garage is on the other side of the house from the kitchen and groceries will have to be schlepped through three rooms. Or they may not realize when they’re looking at a house on  Saturday that there’s a trucking company just on the other side of the woods where tracker trailers will be coming and going from 7AM to 7PM every weekday. Or they may not know that the seller is asking more for the house than anyone has paid for a property in that neighborhood ever.

A good broker has no preference what a buyer buys, so no convincing is required.

Now, I have tried to talk buyers OUT of a purchase. But even that is only up to a point. My job is to make sure that whatever choice a buyer makes is a thoroughly educated one - for better or worse.

To be blunt, it doesn’t make a difference to a good broker what a buyer buys as long as they’ve got the information they need and they’re happy with their decision.

A good broker should make suggestions in regards to offering price and terms. But remember that the contract is between the seller and purchaser. The broker is NOT a party to the terms and therefore the negotiating is done between agents but on behalf of the principles. Although a broker can certainly advise you regarding the price of a house, the  broker can’t get you a better price. That is between buyer and seller.

A good broker offers guidance, suggestions, helps give perspective and provides distance between parties who are probably anxious and apprehensive. It’s the brokers job to keep cool so that you can have a nervous breakdown without hurting your negotiating position.

So, I responded to the person who made the inquiry about the HOA dues that I wouldn’t try to convince her of anything but had provided information which she requested and would be happy to help her find something that suits her better. I don’t expect to hear back.
For the record, those dues are crazy high. I wouldn’t buy that place!

So Freddie and Fannie are in trouble and need to be bailed out. Well, for once, those two aren’t relatives of mine.

They are actually known as Freddie Mac and Fannie Mae - although their formal names are Federal Home Loan Mortgage Corporation and Federal National Mortgage Association, respectively and they are holders of roughly half the mortgages in the country. And they are in worse shape than any of my relatives, which is saying a great deal. You can read more detailed information about them here.

Just like so many other holders of mortgages, they were left with a lot of crap on their hands. Sub-prime. Interest only ARMS. Ick. Yuck. Crap, crap, crap. The hell of it is that, with all the bail outs and forclosures and bank failures, there were millions of dollars that were made by people who should have been looking out for those who were borrowing money to buy their homes - often their first homes.

Just as in physics where matter can neither be created nor destroyed, money doesn’t just disappear. There were trillions - yes, trillions - of dollars that have flowed in and out of the housing/mortgage industries and while some are left with less than when they started, a few have a lot more.

I take comfort in the idea that those few are camels and there is an eye of a needle waiting in their futures.

I am no financial expert. But the people who are and have been hired specifically to monitor the economy and forestall such things happening couldn’t have done worse than I would have. Or you would have. Or the lint from my dryer vent would have.

So, not much to say here other than its best to keep one’s head all about are losing theirs, apologies to Rudyard Kipling.

In other words, keep the faith. This isn’t the worst of times. Certainly not the best, but far from the worst.

Now I’m going to go watch the season premier of “The Closer”, have a glass of wine, and try not to think ill thoughts of The Suits.

Wow. The news is really hard to hear and read sometimes, even when you’re being quoted directly!

I recently was contacted by a reporter for the New York Times and asked about the real estate market here in Greensboro, NC. He had apparently come across this very blog, thought I had some interesting things to say and wanted to speak directly to me.

I was pleased to do so. After all, getting me to talk is only slightly more difficult than getting me to eat.

And he, Nelson Schwartz, asked good questions, some of them pointedly about the effect of gas prices on home-buying (not much, in my experience), whether foreclosures have worked their way into more upper priced neighborhoods (yes, but not in a “wholesale” way as can be found in some other parts of the country) and so on.

I spoke to what I’ve been seeing and how it ranks in comparison to my experience. Pithy comments, thoughtful commentary, wit all the way around it seemed to me. He asked if I might know of others to whom he could speak - appraisers, lenders, etc., I passed along several names, after confirming with each that it was ok to be contacted by the reporter. And he got other names from other contacts.

Due diligence done right.

The next week Mr. Schwartz came to town and met with many, many people, including me. It was really interesting to see him take notes, which questions he pressed on. Let’s face it, some dude from the New York Times shows up and wants to hear your opinion is cool. It was to me, anyway.

Nice fellow. He called to confirm a quote he was going to be citing, the spelling of my name and what “title” should be used for me (’broker”, “real estate agent”, “Realtor”.

I suggested “Real Estate Queen”. He settled on “Broker”.

And on Sunday, sure enough, there was an article about our city on the front page of the business section of the New York Times.

Most of the people who read it and talked to me about it thought it was nice to get a mention in the Times. And it was hardly news that things are slow, that there’s higher than usual inventory and that some buyers are getting good deals.

But there are some folk - namely, other real estate agents - who are less than enthusiastic about the article. Not because they don’t know that things are tough if you’re trying to sell a house right now. But because there were more negative stats than positive. Because all the numbers don’t reflect that houses are continuing to sell. Because the article doesn’t reflect the many positive things that are going on around here.

I may be persona non grata for a bit, having gone on record stating that buyers are making offers lower than they did a year or so ago. But I’m quite sure I’m not the first person to notice this. It would be hard to miss - like my rear end.

Facts are facts, and as I’ve been writing here for many months, all this translates into this is a fantastic time to buy.

And it’s about time buyers got a break, eh?

So, my 15 minutes of fame didn’t even make that threshold. More like 9 seconds.

**shrug** It ain’t nothin’ but a thing, as we say ’round here.

I’m often asked this by first-time buyers. And the answer is: whenever you’re ready, willing and able.

Buying a house is not like planting tomatoes where, if you plant seedlings in March you can count on a freeze wiping out your crop. (BTW, in the Greensboro area, don’t plant before the end of April)

Other than the very broad idea that one should ‘buy low’ and ’sell high’, there is not a particular season. And even the low/high thing is only part of what should be considered.

Certainly you don’t want to pay more for a house than it or its area are worth. But getting the help of a reputable lender, appraiser and Realtor can all help avoid doing that. Remember that you’re buying a home. And a home has intrinsic value that goes beyond making a quick profit. Indeed, making a quick profit is something you see some folks attempting on cable network shows and infomercials. There are people who have done it.

And there are people who have reduced their caloric intake by 30% for months at at time. That, too, is easier said than done.

No, it makes sense to buy a home because you want to control at least a part of your life. Sure, there are hassles to having to fix your own water heater if it goes out. But you get to paint your living room lavender if you so desire. You can deduct mortgage interest from your taxes. You get to show your parents that you are an adult after all. You can plant 50 tomato plants - after April 30th.

It just feels great walking into your own home for the first time. Really. It does.

And now is an historic “buyer’s market”. Plenty of inventory from which to choose. Still great interest rates. And as I’ve written before, if you’re paying rent, you are paying a mortgage. It’s just that someone else is getting the benefit.

If home ownership made sense 200 years ago, and through the Great Depression, and in the middle of WWII and even during the disco years - all times of real trauma - it makes sense now.

Start doing some research. And dream about lavender and tax deductions and tomatoes.

Are they thinking about the season finale of  “30 Rock”?

Have they taken some Smiley-Grinny pills?

Did someone just tickle them?

No. They all just bought their first home. That’s right. They purchased real estate.

“But that can’t be”, you might say. “Don’t they know that it’s a BAD IDEA to buy real estate these days? Don’t they read the papers?! Someone should have stopped them!!”

But just look at Mindy…

And Ken….

And Karen….

And Feliz and Maria…

So, why ARE they smiling? Because, frightening press stories nothwithstanding, they know that owning your own home is a good thing. They are all first time buyers and were able to get good interest rates. They worked with a reputable lender, looked at homes that met their needs and their budgets, asked good questions and are all now enjoying the personal and financial rewards of investing in their futures.

Mind you, not one of them is looking at their houses as if they’re slot machines, spewing cash. Again, here in the Greensboro NC area, we’ve never looked for double digit appreciation. Steady, sustainable growth. That’s us.

And that’s why they’re smiling.

Now, drop me a note and let’s see if we can get grin out of you.

Well, lots of reasons, actually.

Granted, if you’ve always wanted to be featured on an episode of “Flip That House” or “Property Ladder” or the lesser known “Watch Me Get In Way Over My Head About Something I Know Very Little About”, the ship may have sailed on you. But that’s not necessarily a bad thing.

The truth is, buying a house makes sense now just as it has for generations and for the same reasons: stability, pride of ownership, security.

Yes, security.

“Crack Kills”, you may be thinking to yourself. But no. I’m not high. There is security in owning your own home. As much security as in anything. Where things have gotten of track in some markets is that some folks started thinking of their houses as slot machines wired to come up a winner on a regular basis instead of thinking of them as….houses.

Buy a home, stay in it for an extended period of time, expect a modest increase in value, and when you sell you should have built equity and walk away with cash in your hand.

But even if you break even after selling, you are still a winner. You will have enjoyed the impressive tax benefits of deducting mortgage interest and property taxes. And, unless you are living in your parents’ basement rent free, you have to pay to live somewhere, right? Better to pay your own mortgage than pay your landlord’s mortgage.

Talk to a good lender, borrow within your means, look at homes you can afford, pay your bills and start relaxing about whether it’s time to buy a house. Because, if you qualify for a mortgage that is comfortable for you and you will be in the same place for a few years, it’s time to buy.

Really.

A while ago I wrote about the difference between two very important components of the home buying process: the appraisal and the inspection. I covered a bit about the appraisal in the previous post.

The inspection is key to making an informed decision. After all, it’s one thing to buy a pair of shoes that pinch your feet and another all together to buy a house and find there are too few piers holding up the joists that it up.

A home inspection is not required by anyone. The bank will not require one. The insurance company won’t. And the seller certainly won’t. But it is always a good idea.

What will the inspection show? Well, a general home inspection is just that - general. In North Carolina home inspectors must be licensed by the state. But they do not need to be structural engineers, electrical engineers, licensed plumbers or have x-ray vision to see behind walls. They will check those parts of the house to which they have access without moving furniture or lighting pilot lights that are out. They won’t fix issues that they find. That’s not their place or job. You hire them to note their findings. Its between you and the sellers as to what, if anything, needs to be corrected.

And keep in mind that when you’re buying a “used house” - as opposed to new construction - you shouldn’t expect to get a place where every floor is squeak-free and all cabinet doors hang plumb. What you want is to make sure that all major systems and components are in good repair and performing the function for which intended. For example, a roof may be 17 years old, and it could be guessed that it’s closer to the end of its useful life than the beginning. But a roof has pretty much one function: keep rain out of the house. So, if the shingles are all where they’re supposed to be and there isn’t evidence of leaks or rotten wood, an old roof is not really a repair issue. It’s a “heads up” issue and you should keep your eye on things and prepare to eventually have to put on a roof.

On the other hand, if the hall bath sink is leaking, it’s perfectly reasonable to ask the sellers to have the issue corrected.

And if you find that the floor joists are rotten and were installed incorrectly in the first place - ouch. That is a time when you’ll be so glad you spent the money on an inspection.

There’s much more to the what’s, when’s, how much’s, and how’s, but keep in mind that an inspection is performed for you to be able to move ahead with your purchase as well informed as possible. It shouldn’t be seen as a way to ‘get out of a contract’, as one shouldn’t enter into a contract for a property unless you actually want to buy it.

And it shouldn’t be feared. Contact a good home inspector, ask about cost and what’s covered.

In some parts of the country, it is becoming more and more difficult to say what a property is “worth” when talking in comparison to closed properties in the neighborhood. And looking at recent sales, or “comps”, is what an appraisal is all about.

But as some neighborhoods are more and more impacted by foreclosures or otherwise distressed sellers just trying to get out from under their mortgages, those comps may pull the values of surrounding homes down - on paper, anyway. And paper is where the loans are made.

In my area, Greensboro, NC and the towns around, this has not been so much of an issue. But what if you’re under contract to buy, which means you and the seller have agreed to the purchase price and other terms and the appraiser comes back with a number that is lower than that agreed upon price?

First of all, NO ONE likes it when this happens. Not the lender, the agents involved and certainly not the seller. But what to do? The findings can be challenged. Appraising is part art and part science. So, if there are good comps which may have been overlooked that justify the price, then a good appraiser can take those into consideration. Talk with your lender about what to do.

The seller can agree to take the lower price. Ouch. But if they don’t, you’re not obligated to purchase the property. Even if you are willing to proceed, the lender will have something to say about it.

The bottom line is that - emotional distress aside - you as a buyer are not at much risk by a low appraisal. And in the Greensboro area, it is not a common occurrence.

So, if it happens, breath deeply, talk to your lender and your agent, and move forward.

I leave town and go to the beach for a little break and what happens? Everything goes to the proverbial devil. When I left town, the financial markets were feeling queezy. By the time I returned it seems that everyone was positioned in front of the porcelain god with a wrenching case of the dry heaves.

Holy Moly.

Bear Stearns, the investment bank that’s been around since my grandfather was a young man had what amounted to a run on the bank. (You know, like in “It’s A Wonderful Life” when Jimmy Stewart had to interrupt his honeymoon to keep nervous depositors from taking out all their cash, leaving the bank with no funds but managed to calm everyone down and save the day..)

Well, where is Jimmy Stewart when you need him?

I guess JPMorgan and the Federal Reserve will have to do.

What does all this have to do with the price of houses in Greensboro? So far, not much. What does it have to do with people’s attitudes about buying - and I mean buying ANYTHING, from cars to houses to imported cheese?

Plenty. And it does reflect that credit is getting tighter and tighter. And what that means is that a buyer needs to have all their ducks in a row, keep their credit score up (pay your bills on time…pay your bills on time….pay your bills on time) and have a bit of money to put down towards the purchase.

I’m not going to say that all is rosy, even in our corner of the world where things have percolated right along during these weird economic times. But around here things are better than in most places. And for those who manage their finances, work with a good lender and want to buy, give it a try. Call or write me.

Let’s put ourselves in a Jimmy Stewart frame of mind. After all, this really is a wonderful life.

When a house for sale has an offer to purchase made and the seller and buyer come to an agreement on all the terms, sign and initial where appropriate and delivery of the contract is completed, that property is said to be “Pending” or “Under Contract” or “In Escrow”, depending on where you are. That means that - if all the parties follow through with their obligations - the property will close and change hands.

Pretty straight forward, right?

I get asked on a regular basis - usually by a client who is the buyer - whether someone else can buy the house ‘ out from under them’. They want to make sure that all the stress they’re going through will pay off with a new house.

The answer is that, while the contract between the parties is binding on all, it ain’t sold until it’s closed and the deed recorded. For that reason, offers can continue to be presented to the seller up to the last minute. The very last. As in, until the register of deeds at the county courthouse has stamped the paperwork, reflecting the new owner’s information. Further, not only can offers be presented, they must be, by NC real estate licensing law.

But a presented offer cannot override a contract. So, if you’re worried about being bumped out of position on a house which you’re buying, relax. If you’re hoping to buy a house that someone else beat you to - sorry. Unless the original contract falls through for some reason, you’ll need to start looking at other houses.

The good news is, I can recommend a really good agent!