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Tom Menges's Advice

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  • 18 Contributions
  • 0 Best Answers
  • 2 Helpful

Tom Menges wrote:

"wannabe realtor" vs "real realtor"

Answer
Multiple things may be going on to lead you to thinking that you are better at finding homes than your current Realtor. Communication is key in conveying what is important to you in a home.  Your Realtor may not have understood exactly what you wanted in a home because you didn't explain it correctly or he (she) dmisinterpreted what you were saying.  Perhaps writing your list of criteria down and stressing the "have to haves" vs. the "like to have" and the "dream list items" will help clarify the situation.  The other key question is whether the homes you've found that appear to be superior to what your Realtor provided are actually on the market and available.  You'd be astonished to know that 20-40% of the homes found on some real estate websites have grossly incorrect information (pricing and availability being high on the list).  If you correct the communication issue and you still discover that you are missing homes that are active on the market and great fits for your needs, then it may be time to talk to your agent about terminating your agency relationship.  Your Realtor should be your #1 advocate in helping you find the right house.
January 28
(0)

i was requested to 'rate my realtor'; i want to be honest,but will he find out?

Answer
Yes, the Realtor can probably figure out who wrote the review but why are you worried about someone who apparently did a poor job?
June 08 2013
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7133 N. Ridge Drive, Raleigh, NC

Answer
Please remember that Zillow also shows rental properties.  If something seems like an unbelievable deal, it may not be the kind of deal you are expecting.  The home is available for rent at $2995.
April 22 2013
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Landlady Ruining Home Closing

Answer
In reading thru your narrative, I would fault both parties. You could have readily given more than the 60 days required notice and could have been more proactive with your lender in checking in many days in advance to closing to confirm that they had all the paperwork needed from you.  Your landlady seems to  be unnecessarily difficult. There appears to be a failure of communication between you and she.  You can file a complaint to the RE Commission for any reason whatsoever, but her being difficult and seemingly arbitrary is an unlikely violation of Commission regulations.  Filing a complaint may relieve some of your frustrations, but it is unlikely to accomplish anything.  Get the paperwork to her on her form and ask your lender to contact her and see if she will then fax the necessary verification asap.
February 22 2013
(0)

is it a common practice in Raleigh, NC that the buyer has to pay to the Real estate comp for buying

Answer
It depends on the terms in the buyer agency agreement.  Most agents are willing to accept the standard payout that is advertised with the property information in MLS.  However, agents will specify what is the minimum amount of commission that is acceptable in representing the buyer in a transaction.  If the amount of commission falls below the buyer agency agreement amount, then the buyer client would be expected to make up the difference.  In a transaction where the seller is a "for sale by owner" (FSBO), the FSBO may be unwilling to pay any commission at all.  In that instance the buyer would be expected to compensate his agent for the full amount of the agreed buyer agency commission.  Both the buyer and Realtor fully know in advance that the buyer will be liable for the commission, but the agreed sale price is likely to be such that the buyer is still getting a deal.  That the commission will have been fully earned by the agent.  Another scenario where the buyer will be liable for commission is an auction sale where the MLS payout may be as low as 1%.  The buyer would again be expected to pay the difference between the 1% and the commission that was agreed to contractually in the buyer agency agreement.  Auction sales will often include a buyer's premium which effectively is a commission that the buyer is paying to the listing company or auctioneer.
December 04 2012
(0)

How do I find info on " supply of houses" in my homes area. Can this affect listing price etc.?

Answer
Sheri has provided an excellent responce.  The supply and demand in any segment of the market is reflected in what is called the "absorption rate", referring to the number of homes in a price point or neighborhood that are currently on the market, under contract and sold over a period of time.  As an example if there are 9 homes active on the market, yet only 3 have sold in the past 6 months, you have a low absorption rate as it will statistically take an 18 month period to sell the current inventory of 9 homes.  Conversely, a situation of 3 homes on the market and 9 sold in the past 6 month would be a much higher absorption rate.  The amount of inventory in any market segment or neighborhood will certainly have an effect on your days on market as well as your price.  The two questions buyers automatically ask any Realtor are "What's the Price?" and "How long has it been on the market?".  A resource that local Realtors use (but not readily available to the general public) is the TARR Report (Triangle Area Residential Real Estate Report).  The appraiser/editor of the report offers (by subscription) a wealth of statistics that correlates listing price, days on market & months worth of inventory to % of original listing price likely to be obtained and much more  To briefly summarize: the more homes in direct competition with yours, the longer the likely days on market will be which heightens the importance of pricing correctly (which to most sellers means pricing lower than what they may have hoped for in order to get a sale). If you have further questions, feel free to contact me directly.
April 28 2012
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My father owns a house, I manage it as a rental property but don't own it. Can I put it on my taxes?

Answer
Talk with either your personal accountant or your father's.  Immediately.  With the property deeded in your father's name you have no legal claim on any deduction from propety taxes or repair expenses related to the property.  You may have legitimate declarable income from the property if you are paying yourself a salary for managing the property.  From that income you may have have legitimate expenses you incur for managing the  property.  Best to have a converstion with an accountant to insure that you are not doing anything that could trigger tax consequences on yourself.
February 14 2012
(0)

Why do I need a realtor?

Answer
Most of the replies so far have addressed the fact that most sellers are being represented by an agent in the transaction working to get them the highest and best offer (with the obvious exception of for sale by owners).  The commission for the buyer's agent is already in the price (and will be paid to the listing agent) whether you choose to take advantage and have someone represent you or not.What's missing in this conversation is a discussion of your premise that you have all the online tools available to make a fully informed decision without the assistance of any professional.  Sort of a slowed-down version of day-trading perhaps?  Unfortunately, studies have shown that somewhere between 25%-35% of the online home information is outdated, inaccurate or simply wrong.  Take a moment and read some of the disclosures on some of the sites, you'll be unpleasantly surprised.  Moving on to lenders, there may be so great lenders available online, but I've heard a plethora of horror stories about online lenders who had fabuluous rates but suddenly required impossible paperwork the day before closing that the closing with them never happened and the buyers had to race to a local lender to get the job done.  My understand is that some online lenders will "play" the market assuming that rates may drop to what they've promised, but when the market doesn't drop, they dump the buyer and simply don't return calls or emails.  I guess these scenarios can leave you feeling very satified that you are able to buy and sell real estate with a Realtor.
February 01 2012
(1)

value of 3906 yadkin dr raleigh nc

Answer
It would be helpful to know the purpose of your question. If you are considering a refi, you'll need a certified appraisal to provide that service, not a Realtor.  If you are considering selling the house or buying the house, a Realtor is doing an injustice by not viewing the home in person to give an accurate analysis of its current value.  Naturally, any one of us who is responding to your post would welcome the opportunity to meet with you and provide our analysis if you are considering selling your home.
January 16 2012
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I put an offer in on a short sale in Raleigh NC and still havent heard back. What is the process?

Answer
If you think that short sales are so named because they happen quickly, the reality is anything but that!  All short sales are subject to bank approval.  Most people doing short sales at a bank are overwhelmed by the number of transactions they have to do  with the backlog of transactions in their pipeline simply incredible.  A typical short sale may get a reply from the bank in as little as two weeks, or it can take multiple months for a reply and approval.  Bank of America has worked out a streamlined approval process for RE/MAX in that if all paperwork is in place for 45 days and the bank has not replied to the offer, it can be "escalated" to a higher level where we will get a reply in 5 days or less.  Unfortunately that procedure is only in place with just BOA.  Other lending institutions will take their own sweet time regardless of the agency involved.Most banks will allow an attorney's fee of $1500 or higher to allow the attorney to handle the transaction.  Because the bank is getting less than what it is owed (hence the name "short sale"), the seller will have a deficiency.  In North Carolina, only a attorney can legally negotiate with the bank to reduce the deficiency judgment that may be levied against the seller.  Realtors or other third parties are considered to be "illegally practicing law" if they engage in that discussion directly with the bank.  Consequently, an attorney's services are needed to complete the transaction.There is no correct answer on whether you should move forward with the short sale or look for another property.  Depending on the documents and contract you have signed, you could be in breach of contract if you do not follow through with the purchase.  If you are considering terminating your contract, you should first seek legal advice to fully understand your options and their ramifications.  However, if you've gotten a really great deal, then "go with the flow" and eventually you'll get an answer.
December 09 2011
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