Beyond the Pale

Father's Day - To Me

Here is a post I wrote about a year ago and thought it was worth sharing again...Happy Dad's Day!

As a daddy to one fine young man and a baby boy on the way, I have spent a considerable amount of time over the last 10 days or so reflecting about being a father.  Facebook and other social media outlets offers an interesting bird's-eye perspective into the worlds of our friends, co-workers, business partners and acquaintances.  Today (Father's Day) I spent some time observing different ways people celebrate.  I witnessed a disturbing trend. 

Many fathers spent the day sleeping in, playing golf, or doing anything that DIDN'T involve their families.  Many men in this country who should be able to have children, for one reason or another, can't conceive.  Many parents have tragically lost children to horrific accidents or deadly diseases.  The time you have is precious, the responsibility is awesome and the experience and joy is priceless.

My Father's Day was spent being a father.  Now, I got to call some of the shots (i.e. where we ate, what we did), but every minute was spent fathering.  We ate pizza, played baseball, put together puzzles and spent the time...together.  I would encourage all fathers to embrace the responsibility and celebrate the privilege.  You never know when it could all end.

Memorial Day to Me

Memorial Day, like Christmas and Easter, has suffered the same Hallmark-esque apocalypse.  We have marginalized the day to cookouts, drinking, and an extra day off from work.  I often wonder what our world be like if those brave souls would have born children.  Would we be a smarter, braver world?  Would we experience the same level of conflict, scandal, and un-Godly behavior throughout the world?

From the Delaware Coast Press:

How many of the more than 400,000 World War II dead would have fathered the geniuses, the creators, the liberators of today's generations?  How many of the 116,000 World War I dead, the 54,000 Korean War dead, or the 58,000 Vietnam War dead? How many of the 500,000 Civil War dead would have fathered children whose impact would still be felt in our lives today?

Please remember the sacred and noble sacrifices, and find time in your weekend to Memorialize those deserved families and souls.  I pray.  I love.  I hope.

Jim Ellis is a Realtor at Go Realty, educator and wannabe business coach from the Raleigh/Durham/Chapel Hill areas of North Carolina.

Silly, Silly Sellers

"Let's just price it too high to see what happens" 

What will happen?  History has shown that overpriced homes sell for less than homes priced correctly from the beginning.  I know it seems counter-intuitive, but asking for more money equals less money in your pocket at the settlement table.

"We need to price it high because we will just get low-ball offers."

First of all, low-ball is not defined as the amount offered as it relates to what the seller wants.  For example...a seller is asking $230,000, but the house is only worth $200,000.  If the offer is $195,000, that is not low-ball.  Relative to the market value of the property, $195,000 is something with which to work.  Second, the notion of building in room for "low-ball" offers exists because sellers consistently over-price homes.  So, buyers constantly offer less.  Vicious cycle

"I can't list my home under xxx because I owe too much"

The reality?  Unfortunately, the answer is not pretty.  Your choices are (1) Don't list the home, (2) pay cash for the amount short on your mortgage or (3) Consider a short sale.  Since overpriced homes ultimately sell for less, this overpricing strategy only deepens the debt picture for the seller.

Ultimately, sellers, it is essential to understand the privilege of establishing home values does not rest with you.  The secret is Economics 101; supply and demand.  Generally speaking if two or more buyers want your home, the values increase.  If two or more sellers compete for one buyer then the value of your homes decrease.  The best chance of attracting multiple buyers and putting more money in your pocket is to sell it quickly by pricing it perfectly from the beginning.

Jim Ellis is a Realtor from the Raleigh/Durham/Chapel Hill areas of North Carolina.

Racism Stinks - An Evolutionary Moment?

An interesting thing happened to me in the fall of 2012.  For the first time I didn't notice a person's race or skin color.  I noticed the person, and how great they are at what they do; as a man/person/human. 

That person is Robert Griffin III (RGIII) rookie quarterback for the Washington Redskins.  I didn't watch and enjoy him as a black quarterback.  I saw him as a damn good National Football League (NFL) quarterback.  This is worth noting for a couple of reasons.  First, since I was a kid I remember the first wave of black quarterbacks that came into the NFL.  These men were dubbed as groundbreaking, leaders of the black community.  The first QB's I remember were Randall Cunningham, Doug Williams,  and Warren Moon.  They were all celebrated, unfortunately, as BLACK quarterbacks; not just quarterbacks.  Second, as each generation passes and time and distance push away the ugly realities of legalized slavery, post civil-war oppression of ex-slaves, segregation and other inequalities of black people in this county's history the closer we become to a nation of one color...American.  

I first "realized" RGIII was black in week 4 of the season when a national NFL pre-game show aired a story featuring him as a black quarterback.  The moment was surreal and amazing.

Morgan Freeman said in a 2005 interview with Mike Wallace of 60 Minutes that the best way to end racism is to stop talking about it.  I didn't think about RGIII's skin color until I heard someone talk about it.

Apropos?  Mr. Freeman may be on to something.

Two Most Important Facotrs when Selling Your Home - Part 2

 Welcome to part 2 of 2 of my latest home selling posts.  Homes don't sell for one of two reasons; they are under prepared and/or overpriced.  This post focuses on the very important and ultimate factor for a quick sale at top dollar...pricing strategy (Click here to see part 1 - Home Staging).

Every home fits into a very specific range of value.  If your property is beat up, falling down, full of dog poo, and sports lime green appliances, the value would fall in the bottom of the range.  If your home has all of the things buyers want into today's market then it would be at the top of the value range.  Your home's list price WILL NEVER exceed the top of the range.  If it does then you might as well set the list price at 3 billion dollars.  If you like disappointment, frustration and never want to sell your home then overprice it.

Pitfalls of Overpricing Your Home

1.   On a very basic level, a home's value is only as high as the last home sold in its neighborhood (It is actually more complicated than that).  Buyers and their Realtors are smart.  Realtors have access to all of the data that determines value and overpricing your home won't fool anyone.  If you are a buyer would you overpay?

2.  Even if you get a buyer who offers a price that exceeds the top of the value range, it won't ultimately sell for that amount.  Why?  The buyer's mortgage company will send an appraiser to offer a valuation.  Mortgage companies don't like the risk of lending more than a property is worth.  If the home under appraises then the home seller would have to lower the price or the deal will fall through.  

The Last Word

Time and time again it is proven that an overpriced home will sell for less than the same home priced correctly from the beginning.  The overpriced listing will initially get little or no showings and the sellers will have to lower the price.  As days on the market mount, buyers will perceive something is wrong with the property and subsequently submit lower offers; a vicious and avoidable cycle.

Around Town with a Five Year Old - The NC Zoo

"Daddy look!  Its Alex.  It's Marty and Melman.  Look, look, look!  It's King Julien.  He's my favorite, dad."

If you couldn't tell, we have been watching the Madagascar (1, 2, AND 3) films lately.   Our trip to the North Carolina Zoo was fabulous; a four and a half star day.  Most of the animals were out and, for the most part, active.  I especially enjoyed the spacious design and layout.  The middle of the park featured a limited time Dinosaur exhibit and included a 4D movie experience.  The fifteen different life-like species were a big hit with my son.  He espeicially liked the "spitting" dinosaurs. 

The one disappointment was the polar bear and seal exhibits were closed.  The polar bear area is in the midst of a 7.8 million dollar renovation.  Can't wait to go back and see it next year.  An unexpected and pleasant surprise was the quality of the food.  A large menu at the Junction Springs Cafe includes some healthier options like salads, fresh fruit, and raw veggies.  As with most attraction parks, the food prices were on the high side, but these sales provide much needed revenue to keep operations self-sufficient. 

The NC Zoo is located in Asheboro, NC which is about 90 minutes from the Triangle area.

Click here for more Around Town posts

Around Town with a Five Year Old - Chapel Hill

In July and August my 5 year old son does not have day care on Thursdays, sooooo....its daddy daycare time!  Rather than sit around we are going to take day trips to some cool places in and around the Triangle.  Last week we spent the day in Chapel Hill and hit a home run.

Our first stop was Morehead Planetarium at the University of North Carolina.  For starters the campus is gorgeous.  So much so, that a return trip is warranted to check out the rest of the grounds and buildings.  Morehead includes shows for all ages.  We saw One World, One Sky starring Big Bird, Elmo and their new friend from China, Hu Hu Zhu.  Next was a cool physics demonstration designed and presented for elementary aged children.  Great!

After the shows we walked a few blocks west on E. Franklin Street in search of food.  The short walk featured wonderful boutique college shops, coffee bars, restaurants and other businesses.  We turned south on S. Columbia Street and found Top of the Hill Restaurant and Brewery.  To call this place a "college bar" doesn't come close to doing it justice.  The staff was very nice to me and my son and my lunch was delicious.  I ordered sliced tenderloin and local tomato.  A nicely presented dish with slices of grilled beef tenderloin layered with slices of local tomatoes and drizzled with fresh herb and gorgonzola vinaigrette.  Yum!  My son had pizza (he's five after all) and he gobbled it up.

On our walk back to the car temptation won the day so we walked into Sugarland.  Dude...no I'm telling you...dude.  Awesome!  The gelato was delicious and authentic.  I literally had the best latte in my life.  The problem?  I didn't have room for the cupcakes, cakes, cookies, and adult beverages (oh yea, I said it...booze).  According to its website, Sugarland has been featured on the Food Network, Good Morning America, The Martha Stewart Show, MTV and the Today Show.  What???!!  And we stumbled into this place?  Like I said, a home run.

This week we are off to the NC Zoo...

Two Most Important Factors when Selling Your Home - Part 1

 Welcome to part 1 of 2 of my latest home selling posts.  Homes don't sell for one of two reasons; they are under prepared and/or overpriced.  This post focuses on the preparation phase; home staging. 

As the real estate market progresses through and out of a tough seller’s market, it is important to have a full arsenal of marketing concepts at your disposal.  A properly staged home that is priced correctly equals a sale that will net the seller top dollar in the shortest amount of time.

Here are the three D's of home staging.

1.  De-Clutter

Over the years we accumulate stuff.  To you the stuff is important and essential, to a potential home buyer it is crap.  You want the buyers to look at the house and not your stuff.  Some buyers perceive clutter as a home that has not been cared for or is dirty.  The rule of thumb is remove 33% of the stuff from your house and store somewhere else.  Some of us are more pack rats than others, so be honest with yourself and de-clutter appropriately.  Many sellers have small children that require a ton of over-sized, awkward swings and chairs that take up a disproportionate amount of space relative to the size of the child.  This does challenge a seller.  My advice . . . try to remove as much as you can from the main floor of the home; the first impression floor.

2.  Depersonalize

The objective here is to take your home from being “lived in” to “ready to move in” (The 7 Deadly Home Staging Sins. . ., 2007). This includes, removing family pictures, painting walls a neutral color, de-crapping the fridge, removing ALL pets and evidence thereof, and any other personal items arranged in your home.  This is about removing distractions and allowing the potential buyer to envision your home as theirs.  People are, by nature, curious.  They will spend valuable home shopping time enjoying last year’s trip to Disney World and Suzy’s A+ on the fridge rather than focusing on what “sells” your house.

3. Disassociate

It is time to remove your self from the house.  This is more of an emotional step than anything else.  You are now selling a product.  This is no longer the place where you raised 3 kids and created a million memories.  Your home is now a product, a profit making entity that should be marketed and prepared to be sold as a business transaction.  In order to succeed with numbers 1 and 2, you must first remove your whole self from the home you have built.  This is much easier said than done, but a critical factor to maximizing a profitable transaction.

Triangle area home staging expert Jessica Cote says, "Walking into a well staged home, makes the potential buyer think 'this is how I can live, this is how I want to live.'  Less is more when it comes to home staging.  It takes a lot of work to sell a home. Proper staging makes it happen that much sooner."

Jim Ellis

Jim is a residential real estate agent from the Raleigh, Durham, Chapel Hill area (The Triangle) of North Carolina.

International Association of Home Staging Professionals. “Brief History of Home Staging & The Stage ^® Trademark.” [Online] 2003. <http://www.iahsp.com/history.php>

 Accredited Home-Staging Specialist Designation. “The 7 Deadly Home Staging Sins You May Be Committing Right Now!” [Online] 2007. <www.ahsdesignation.com>

Phew...haven't said this in 5 years

NOW IS THE TIME TO BUY

The optimism is off the charts.  Nearly every major and not-so-major media outlet in the country has been reporting good news about the housing industry.  When you consider the active spring market, the recently unprecedented optimism and the historic low interest rates (see rate sheet below) , the time has come to jump back into housing.  Waiting will likely lead to higher interest rates, competing offers among buyers and rising home prices.

Below includes a list of recent articles related to housing:

Housing Crisis to End in 2012 as Banks Loosen Credit

2012 Home Sales will be Strongest in 5 Years

Buying Cheaper than Renting

Real Estate Outlook: Improving Markets

Raleigh-Cary named top housing market to watch this year

US Home-buying season finally signaling a recovery

UPDATE: New articles (05/03/2012)

Rising Rents Mean Bad News for Renters

Real Estate Bidding Wars are Back

I could go on and on, but you get the hint; Google away for more news and info.  Here is a current rate sheet (provided April 22, 2012) by one of my great mortgage partners, Debbie Owens of PrimeLending.

Conventional:    740 credit score, 80% LTV, primary residence, w/ escrow account, 0 points, 0 origination!

30 yr fx                 4%

20 yr fx                 3.875%

15 yr fx                 3.25%

7/1 ARM              3.125%

5/1 ARM              3%

 

Government: FHA 640 score, 96.5% LTV (call for rates with lower credit scores) VA and USDA 660 score 100%. 0 points, 0 origination!

30 yr fx                 3.75%

20 yr fx                 3.75%

15 yr fx                 3.5%

5/1 ARM              3%

The 3 Levels of Networking

 

For starters, networking stinks.  I wrote about it; click here to find out why.

Level 1 - Infancy

In my best Brian Regan voice, "Went to a meeting and....met people....it was nifty."  Showing up to a "Networking Meeting", exchanging a few cards and leaving is not networking.  That is called meeting people.  Certainly step one in the process, but many newer and, ultimately, unsuccessful business people stop here.  Not worthy.  Stop it now!

Level 2 - Adolescence

Growing up a bit, are we?  Become connected.  Connecting includes meeting other business owners one-on-one and digging into their businesses.  This allows you to understand the person, their business model and ethics, and if they are a good fit for you and your clients.  Remember...if you refer a business you don't know to a client, then you are on the hook if they stink.  It is your reputation and business at stake.  Connect before you refer.

Level 3 - Maturity

Become the Connector!  You have met people...you have connected with others...now you are the one connectING.  Don't settle for any old business, but connect with those that are GREAT at what they do.  Now people will see you as the trusted advisor and will learn to call YOU when they need someone great.  Oh, by the way, when you connect others, be sure to let them know you appreciate referrals as well.  Think of it this way.  Don't network, connect!

I have prepared a 50 minute presentation on Becoming the Connector.  So, any business in the Triangle area (North Carolina) that wants its sales staff to be the connector should contact me for this FREE presentation (just feed me please).

Infancy, Adolescence, and Matruity - Idea stolen from the great Michael Gerber, business coach and author of the E-myth books.

Jim Ellis - jimellis@gorealty.biz