Today's Market; It Ain't Pretty

Durham Area Trends

Price Activity
Current Median Q3 201, for Durham 184,900 for the U.S as a whole $177,100
1 year appreciation for Durham .3% and for the U.S.-.6%
3 year appreciation for Durham -1.1% and for the U.S. -19.9%
3 year equity gain/loss, Durham -$2,000, and for the U.S.-$44,000

These figures come from NAR, the National Association of Realtors. Although median prices in the Durham, NC market are up slightly and are ahead of national median prices, it is important to understand that no market exists in a bubble. The Durham market is reliant on the U.S. market and the entire global economy. So, without equity as shown by the three year gain, or more accurately loss, home sales will remain sluggish simply because consumers don’t have the money to purchase homes. Consumer home equity is lost and will take years to recover.
Home owners can build faster equity in their homes if they make additional payments to principal, avoid borrowing against their properties and if they make cautious investments in enhancing their homes. Owners contemplating a home sale should gird themselves too; there should not be a presumption of appreciation but rather a presumption of a loss.
Similarly, owners considering a home sale should engage a real estate professional sooner rather than later to discuss merchandising their property, staging their property and enhancing their property so that it stands out among the competition.
Interested in doing so? Call me, Michael Sullivan, I’m always happy to walk through a property with an owner. I can also offer rental and leasing solutions to owners in a position to move in that direction.

Maelstrom in Real Estate

Maybe the maelstrom in real estate is starting to wear itself out and wind down. I sure hope so and I’ll bet many of my seller clients feel the same way. In an article dated today, Monica Chen with the “Durham Herald Sun,” writes on Durham County North Carolina foreclosures.

According to the NC Administrate Office of the courts; Durham County had 446 foreclosure starts from June through August 2010. This is down from 508 for the summer of 2009. Still the news is not rosy, 446 is a lot of foreclosed home and a lot of people moving from ownership into leasehold. Although Durham’s unemployment rate of 7.6 percent is below the sate wide level of 9.7 percent, there are still a lot of unemployed and underemployed people in our market.

The Herald Sun article further asserts from sources with the Mortgage Foreclosure Defense Project for Legal Aid of North Carolina that current sub-prime lending practices are affecting current foreclosure rates. HUH???? The Herald Sun article points to statistics that are four years old and two years old, kind of destroying the article’s credibility….these are not current lending practices; let’s call them…dated. The Herald does state that there has been a drop in sub-prime lending practices, this is true; there has been a drop in ALL lending practices from all banks.

So, with foreclosure rates starting to decline perhaps we’ll see a market return to stable real estate market.

A Passion For Real Estate and More

Passion Is Important

Day to day I have the joy of meeting and working with so many wonderful people. I have countless clients and agents who have become some of my closest friends. I am amazed that folks can go from making a call to me expressing interest in a particular home, to actively seeking and buying a home to becoming dear friends. The experience is so very personal for me as a REALTOR. You see, I see it this way; I am helping people find their place and we all need a place.

My commission is to help people find a place to call their own. A place where they will be safe from whatever the world might be throwing at them. A place where they can lay their head at night, raise their children, love, eat, grieve for their losses, celebrate victories and milestones or just be. I innately understand all of those feelings wrapped up in finding a place called…home. I understand the importance of those feelings involved with identifying that warm soft snug harbor and the fact that home, means many different things to different people.

I’ve often said, “Every fanny has a seat,” and I meant it.

Sure mansions are terrific but so are subdivision homes, condos, townhomes and trailers. As varied as we are as human beings, as diverse as our tastes in clothing, so are our desires for housing. No matter what a client is seeking I’m there to help ensure that their home is the best possible choice for them. I love guiding people through the process and sharing with them what I know after 17 years of doing this. Sometimes, I surprise myself with what I know and more importantly what I DON’T know. The key with not knowing is having the strength to say, “I don’t know but I will find out.”

How awful it would be to tell a client something not true or unfounded when it involves that person trying to find a place called home, what a sour taste that would set in a mouth. You see I believe that many in my industry don’t think about the implications of what they are doing for their clients. It’s summed up in that last statement; what they are doing FOR…their clients. Being a REALTOR is not about commission, it is about service, it is about taking care of people first and then the money, the livelihood will take care of itself and will come in countless and unexpected joy.

Wynterfield Dream Home

Michael Sullivan | MLSullivanDev.Corp | (919) 416-2254 1402 Holly Grove Way, Durham, NC Next to RTP 2BR/2+1BA Townhouse $1,085/month Bedrooms 2 Bathrooms 2 full, 1 partial Sq Footage 1,540 Parking 2 dedicated Pet Policy No pets Deposit $1,085 DESCRIPTION Light and bright end unit townhome just minutes to RTP, NCCU, Duke and UNC. Quiet location. Great space with living room, dining room, family room, two and a half baths and two bedrooms. Appliances stay with this home. Available November 1st or there abouts. see additional photos below RENTAL FEATURES - Air conditioning - Central heat - Fireplace - High/Vaulted ceiling - Walk-in closet - Dining room - Breakfast nook - Dishwasher - Refrigerator - Stove/Oven - Microwave - Washer - Dryer COMMUNITY FEATURES - Garage parking LEASE TERMS One year or more. ADDITIONAL PHOTOS Photo 1 Contact info: Michael Sullivan MLSullivanDev.Corp (919) 416-2254 Equal Opportunity Housing Posted: Sep 15, 2010, 10:03am PDT

The Ten Commandments of Town Home Living

The Ten Commandments of Town Home Living

Understanding that townhouse or condominium living is as close to communal ownership as one can get, perhaps it is a good idea to go into the process with some simple ground rules that will make coping with this type of living easier on you and your new neighbors.

1. Thou shall ALWAYS clean up after one’s pets no matter how cold, damp, wet and messy the weather is or how late at night it is.
a. Sub rule, thou shall always walk one’s pets as far away as possible from thy neighbor’s walkways, patios, decks and motor vehicles.
b. Sub rule, thou shall always walk one’s pets on greenway if at all possible.
c. Sub rule, thou shall always have extra clean up bags on one’s person when walking pets.
d. Sub rule, thou shall be aware that perhaps a townhome or condo isn’t an ideal environment for three, four, five, six or more dogs, cats, gerbils or ferrets.

2. Thou shall always park in one’s designated parking spots.
a. Sub rule, thou shall ask permission to park in thy neighbor’s parking spots.
b. Sub rule, guest parking isn’t for you.

3. Thou shall inform thy guests to park only in designated guest parking spots.
a. Sub rule, if thy guests park in thy neighbor’s parking spots thy will quickly and without haste ask thine guests to move their vehicles.

4. Thou shall adhere to architectural and landscaping rules and requirements without prejudice.
a. Sub rule, thou will become fully aware of such rules prior to moving into thy new neighborhood and will abide by the rules without whining and sulking.

5. Thou shall bring one’s trash receptacles in from the curb in a most timely manner as prescribed by neighborhood rules and regulations.

6. Thou shall keep deck and porch spaces neat and tidy.
a. Sub rule, this includes underneath decks and porches and one’s parking spots too.

7. Thou shall not use one’s barbeque grill on wooden decks and porches, for it is common sense, the law and just plain safe.

8. Thou shall not use sheets, towels or garments as drapery.
a. Sub rule, if thine neighbors have bare windows, thou shall not peer through those windows whilst walking in common areas.

9. Thou shall be aware of normal sleeping hours and adjust thine noise, music and car stereo accordingly.

10. Thou shall participate in one’s association
a. Sub rule, this includes attending meetings.
b. Sub rule, this includes volunteering for committees.
c. Sub rule, this includes paying dues and assessments in an on-time and timely manner.

So, that’s a start and of course I could write a book about good communal living. I recognize that many folks bristle at the notion of a home owner association but let me tell you; after having lived in a townhouse community myself for the past six years; I totally get the rules and regulations. I have also found that those who typically complain the most with respect to the rules and regulations are those who will most quickly disregard them if it serves their purpose.

Interested in finding a house, townhouse, condominium or any other place to call home in the Research Triangle Region? Put my 17 years market experience to work for you. Michael Sullivan, REALTOR, 919-608-2372 mobile/text.

Real Estate a Real Bumpy Ride

Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of Realtors®.
Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009.
Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales – accounting for the bulk of transactions – are at the lowest level since May of 1995.
NAR website August 24, 2010


Yikes! Wow! What does this mean, a double dip real estate recession, a real estate depression, the end of the world? (That was a joke, relax) NAR is powerful but not THAT powerful, yet. So let me chime in with my two cents. Double dip real estate recession, no; real estate depression; maybe; here’s my thinking. The positive outcomes in the real estate market last year were as a result of stimulus in the form of tax credits to first time home buyers and move up home buyers. Employment is still a huge Albatross around the neck of the economy. According to LocalTechWire as of August 23, 2010, North Carolina’s unemployment rate is a real 17.8% not 9.8% as reported by the State’s Employment Security Commission. With numbers like that there was NO recovery in real estate in 2008 and 2009. My telephone can bear up those facts too, it ain’t a ringing much.

My take, not a double dip real estate recession but rather a prolonged real estate recession or worse yet a real estate depression, but is this all bad? Well it is bad yes, but needed? Yes also. Here’s my reasoning. Like it or not, the cold hard reality is that our homes, for many of us that is, were NEVER worth what we paid for them or borrowed against them. Mind you this isn’t all homes, just a lot of them. The speculative markets, local markets like inside the Beltline condos, Chapel Hill homes, parts of Durham and new construction ACROSS THE BOARD, were highly inflated and had been so for a very long time. I dare say ten to twelve years or so.

In reality the $345,000 home in Cary, asking price, that I helped a client write an offer on this week, was never worth $345,000 that the sellers are asking today. Truly I think, that when they purchased this home twelve years ago, it wasn’t worth the $247,500 that they paid for it. I think that the home was most likely worth $225,000 when brand new, but because it was new they paid an inflated premium. Although it is a nice home, it is not of the highest quality, there is no real plywood and the home is going to need some significant work soon.

An easy over supply of inexpensive money artificially inflated the demand for housing and that artificial demand, born up by risky borrowers and Wall Street and crooks, created a fast growing bubble that is still in the process of deflating. With 8% of the active real estate inventory in Durham County being foreclosed and most likely an additional 8% to 10% being otherwise distressed or short sale, this coupled with a much smaller supply of QUALIFIED buyers and difficult banking regulations makes for a very sick housing industry. Is it terminal, no, but once recovered an industry that will never be what it once was in the heady to good to be true days of 2002, 2003, 2004 and 2005. So...hang on it’s gonna be a bumpy ride.

The Beach and a resolution

So, I thought that I’d do another installment on the beach saga. After my initial go round with the agent in Carteret County, I did call and leave a message stating that I thought I should handle the lease on my place down there myself. That I’d be happy to pay the agency on Harker’s Island a finder’s fee for bringing a tenant to me. I think that's fair. No one should work for free.

A day went by and silence from area code 252; I did hear from my mom and dad, but nothing, nil, nada from the agent. By yesterday afternoon I was becoming somewhat antsy. I typically don’t leave messages hanging around on my voice mail or email and I really don’t care for it when others do so. Finally mid-afternoon at 2:05 pm an email came. The email tendered the tenant's name and phone number. The agent demurred on a finder’s fee stating that since he didn’t have a management agreement in place when he started down the representation path that he felt he wasn’t due compensation.

I do agree and disagree with that and I do understand this fellow’s soft peddle on compensation. I imagine the North Carolina Real Estate Commission would have a fit over all of this if it were reported; it won’t be. So here’s my advice to all of you out in the blogesphere; if you engage an agent for buying, selling, renting or leasing make sure that you have an agreement in writing outlining who, why, where, how, how much and when. This situation turned out well but it just as easily couldn’t have. What I would have done in the beach agent shoes is emailed an agreement to Durham outlining terms and we would have hammered all of this out before a tenant even entered the picture. The lesson I’ve learned, insist that others do things right each and every time.

Coming soon…my on-going discussion with an agent who won’t disclose to me whether or not he has an exclusive right to sell listing agreement on a listing in which he states in Multiple Listing that the home is “EO” or “Entry Only.” The Real Estate Commission views this designation “EO” as simply advertising and not offering advice or counsel as in an agency relationship.

Interested in buying, selling, renting or leasing property in Raleigh, Durham, Cary and Chapel Hill, North Carolina; call or text me to 919-608-2372 or email MSullivan@fmrealty.com

Realtor service or NOT

All REALTORS are not created equal

Today I had opportunity to try to hire a REALTOR to manage my property in Carteret County near my folks and on the coast. I made inquiry last week and the agent was prompt, got the key, showed the house and was very rushed to get my home leased. Problematically for me, there was no mention of contract or compensation.

Today the details started to come together, again without details ironed out. The tenants terms were laid out which is fine. I then laid out my terms to the REALTOR in Carteret County. I informed them that I would pay x in commission, that I expected my AGENTS to make quarterly visits to my house and document those visits with digital photos, that I expected x in non-refundable pet deposit and that I would make x, y and z enhancements to the property for the tenant.

This is where I hit the wall. I was informed by the agent that; we charge ten percent commission and we don’t alter that ever; that’s cool, I get that. I was then informed that the non-refundable pet deposit would be placed in their company trust or escrow account even though this is NOT trust or security deposit money; this is a non-refundable deposit that I the owner require for the tenant to have an animal in my home. The tenant can NEVER get that money back; it is a fee for me bending my rules to accommodate the tenant. This agent informed me that it is their policy to always hold this money in trust. I was also informed that quarterly visits would not happen and that frankly my 10% commission to them was hardly worth them taking my business.

Suffice it to say, our interaction had become rather adversarial. I spoke to several close friends, I spoke to my folks and I prayed on it. So here is a REALTOR who is trying to earn my business, to put his best foot forward, to develop a “RELATIONSHIP” with me and yet he is not willing to really earn or appreciate my business. My dear friend Charles pointed out, “If he’s going to behave like this now, just imagine how he’ll act in four or five months.”

Wow, that clinched it. The agent at the beach offered and I’ve taken him up on it….I will manage my property myself thank you very much. Now we’ll see if he does indeed send me the name of the prospective tenant.

REALTOR Heal Thyself…Rust-Oleum Counter Coat a Review

REALTOR Heal Thyself…Rust-Oleum Counter Coat a Review

I’ve lived in my home for five years and for five years I’ve deliberated off and on about what to do with the counter tops in my two upstairs bathrooms. The townhouse that I live in was built in 1974 and is 20th century contemporary in style. The price points of my neighborhood don’t justify Granite or solid surface or recycled glass or those type products; even though I’d LOVE them. So, I’ve pondered and cogitated and browsed endlessly on line and in Lowes and Home Depot.

A month ago I decided. The old vanities and tops and sinks and mirrors and lights would go in both baths. It was time to facelift and I was going to do it right. NO, I wasn’t going to both baths at once, I have a screw or two loose but the bolts are still pretty tight, one in tact bath is ESSENTIAL at all times. But then…I really looked at what I had and I learned…that someone, at sometime, for some unknown reason had GLUED the bathroom mirrors to the drywall. My bath has a 4x4 mirror and the hall bath is roughly 2x4. Oh NO, no, no, no, noooo, nutz, netz, dag nab it all. So much for popping out the old and popping in the new, now we’re looking at dry walling, mudding, fixing damage and ENDLESS dust. Back to square one.

It just so happens at a listing meeting in my very own neighborhood, Five Oaks, a friend/neighbor/prospective client showed me what they had done to their bathrooms. I was blown away. They had coated their old counter tops and they looked FABTASTIC. Off to Lowes I went and right there in the paint aisle was a product called Rust-Oleum Counter Coat, made for laminate counter tops. This product comes in a variety of colors for dark or light colored counter tops and they mix it right in the store, just like custom paint colors.

If you decide to paint your counter tops you will need; rubber gloves, drop cloth, disposable paint rollers-smooth ones made of foam, not the nappy ones, a decent paint brush, brush cleaner, disposable paint pans, sand paper and blue tape. The devil here is in details. This stuff sticks to everything so be careful and DON’T spill it.

First, remove everything from your vanity and be prepared to be out of your bath for at least three days. Wipe down your vanity; I used window cleaner and a rag. Then gently scuff the vanity top with sand paper and re-clean the surface. Use your blue tape and carefully tape off all of your edges, sink surface and anything you don’t want to get the Counter Coat on. Make sure the Counter Coat is well stirred. Put your rubber gloves on and carefully add some Counter Coat to your plastic paint pan. One quart sized can of Counter Coat covers 25 square feet, so for my vanity one can was more than enough. I had to purchase two quarts though, one vanity is dark the other is light.

Apply your first coat, the odor is strong, so you might want to crack a window. Do not overwork with your paint roller, the product will bubble if you overwork the roller and that defeats the purpose. Go slow and be careful but don’t convince yourself that you’re done in one shot. Wait a day or so and reapply to spots you might have missed. I went back a third time and re-applied to the entire counter. I was working on a dark surface so I purchased Slate colored caulk and at day three applied the caulk, let it dry and then re-applied the Counter Coat. The first application took several days to dry but the second and third dried much faster.

The result, I’m delighted. My bath got a facelift and the cost…drum roll please…for all materials…less than $50 and I must say the vanity looks GREAT.

2011 North Carolina Offer To Purchase & Contract

Finally the new North Carolina offer to purchase and contract a la 2011 version for residential real estate is out for preview. Hold tight though, it’s not out for use just yet; a bit of a teaser preview. Truly I have been giddy with anticipation and I can’t wait to use it. Oh if we could use it today that would be wonderful.

Stunningly and startlingly alternative one and alternative two are GONE, blown away by the tides of change, a bad idea whose time has come and whose time has sunk into the vestiges of time. Very few of us ever used alternative two, which for a few more months; is a buyer’s option contract. Buyer still has the option of alternative one, the typical real estate deal with earnest money, investigation, re-negotiation of deficiencies and inevitable squabbles over earnest money with sellers when repairs cannot be agreed upon. Or they can still choose the alternative two stepchild; this alternative allows the buyer to put down both earnest money and option money, option dollars are paid right to the seller and if for ANY reason or NO reason by the end of the option period the buyer doesn’t buy the house, then the seller keeps the option money and everyone walks away no foul. Please insert sarcasm (here!) Folks still squabble and squawk over earnest money.

Well at least let’s hope that’s the case. I was listing agent on a property here in Durham on Camden Ave. and an agent with a company whose logo is a blue rock, brought a buyer and we agreed to an alternative two contract. The option time came and went with a flurry of inspections, investigations, repair requests, negotiations and agreements, etc. etc. etc. Then a somewhat lengthy delay to closing and here’s where we hit ballyhoo. The closing attorney a Mr. Booger (name slightly modified) out of Chapel Hill, well after the option period, for ANY and ALL investigations, where the buyer for ANY or NO reason whatever may terminate and walk away from the contract; decides that late in the game that he was going to order survey, title work etc. to whit he discovers that the subject property’s fence is partially on the neighbor’s yard, just a few inches and in this day and age, easily ignored by everyone. Not that I think this ignorance is a good idea; but it is what we do on the caveat that if in the future the neighbors say move the fence…well then the new owners will move the fence.

Well the good attorney Booger starts to make waves. He even goes so far to say that he doesn’t care what the contract says, that if the seller wants to sell then the fence must be moved. He’s always done his title work late in the game and this is just the way it is. Well so much for an officer of the court upholding the letter of the contract and the law. He was so terrible, so awful and so was the big, blue rock agent; that we on the seller’s side took the fence down so that the property would close, that opened a whole new can of worms; but tough noogies to the buyer, their beef was with THEIR attorney and AGENT. So, I digressed didn’t I? Ah yes the new offer to purchase and contract.

Gone are the days of house systems and structures “functioning the purpose for which intended and not in need of immediate repair.” The buyer now has a “due diligence” period to investigate the property and during that period, for ANY reason or NO reason may terminate the contract and the seller may keep the due diligence fee; take note Mr. Chapel Hill attorney, this includes surveys too. There can still be earnest money, but this needn’t be the case; there can be due diligence money, but this also needn’t be the case. GONE is any discussion about specific systems and inspection. Essentially the process is made easier, buyer comes alone, buyer offers, buyer writes a due diligence check to the seller, buyer prescribes a diligence period and investigates. Buyer may make a repair request but seller doesn’t even need to respond and if buyer isn’t happy with that then they may terminate the contract; but it is gonna cost them the diligence fee; if they move ahead and close, they get a credit for the fee.

So as always the devil is in the details, as a listing agent I am going to push my seller clients to accept just a diligence fee and NO earnest money and this way if the buyer terminates everyone walks away. I love it; gone will be the days of a buyer agent just throwing it all against the wall, of low balling, of recommending inept inspectors who will scuttle a deal. In reality I see all parties getting very serious when a home is under contract. Hopefully the days of willie, nillie walking away from a binding contract are numbered; of course we’re always going to have to deal with the odd ball attorney who doesn’t believe in following the written contract…but hopefully they too will become fewer and further between.

Want to learn more...call or text me 919-608-2372
Email me MSullivan@fmrealty.com
Visit my web site TeamMichaelSullivan.com

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

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.

707 Beckett Street Durham NC 27712

707 Beckett Street Durham NC 27712

Just a short drive north on Guess road, a mere fifteen minutes from downtown Durham you’ll find 707 Beckett Street in Canterbury Estates and serenity now.
This well cared for ranch style home sits on over six tenths of an acre and is nestled behind a stand of trees. Inside is an absolutely huge living room, with vaulted ceiling and a fireplace and a door to a rear deck, which overlooks a fully fenced rear yard.

The kitchen is updated with new 42 inch cabinets and Corian counter tops. The range, refrigerator and microwave oven stay with this home, as does the dishwasher. In addition to the eat-in- kitchen there is a formal dining room.
This home has three nicely sized bedrooms, a master with its own private bath and ample closet space. The bathrooms have been updated too.

You will love the low county taxes and the seller paid home warranty which is offered for buyer peace of mind.

To see 707 Beckett Street, phone or text Michael Sullivan at 919-608-2372 or email MSullivan@fmrealty.com you may also visit Michael on the web at TeamMichaelSullivan.com or TeamMichaelSullivan.net to learn more about his listed properties.

23 Prestwick Place Durham NC 27705

23 Prestwick Place in the Walden Pond neighborhood is just five minutes to Duke University, Duke Hospital and the VA Medical Center. This lovely townhouse is light, bright, open, airy and well kept. It is also very tastefully decorated and will compliment any décor.

On the main level is a modern, full equipped galley kitchen with modern appliances. There is a nifty pass through which could be converted into a breakfast bar if so desired. Beyond the kitchen is a large living room/dining room combination with a wall of windows at the rear and a wood burning masonry fireplace tucked into the corner of the room. The main level also has a half bath which has been nicely updated. At the living room a door leads to a brand new tree top deck.
Down one level is a full laundry space, a ceramic tiled bath and what could be a third bedroom, a family room, a home office, game room or bonus room. This space has a door to a large ground level patio.

The second floor offers two spacious bedrooms, a full ceramic tiled bath and lots of closet space.

23 Prestwick Place Durham NC 27705 is move in ready. A one year H.S.A. Warranty is offered on this property. The roof has been recently replaced as have the front and rear decks. The current owner has also had the Polybuteleyne piping removed from the property.

Interested in seeing inside? Call Michael Sullivan at 919-416-2254 or 919-608-2372 mobile/text or email him at MSullivan@fmrealty.com. You can learn more about Michael’s listings by visiting TeamMichaelSullivan.com