Archive for July, 2010

On Sunday July 25, 2010 the front page headline in the “News and Observer” out of Raleigh was that home foreclosure rates in Durham County were up over 30% from a year ago. That’s terrible, so much for banking reform to help people stay in their homes.

Just as happen stance would have it, I was searching Triangle Multiple Listing yesterday and looking at two bedroom townhouses in Chapel Hill and Carrboro, right next door to Durham and Durham County. The line pre-real estate market melt down used to be a whole lot more vivid, now a days, not so much. Chapel Hill and Carrboro don’t have the volume of foreclosed homes that Durham does, but their reality is a still a tad scewed.

Currently there are 169 two bedroom townhouses or condominiums on the market just in Chapel Hill. The average size in square feet is 1233, with typically two and a half baths; the average list price is $323,701. Huh? What? No, that can’t be? Well it is! What are REALTORS in Chapel Hill thinking? What’s in the water? This is insanity and really points to the larger problem in the real estate market…and that is PRICING REALITY. Until REALTORS can get real with their clients this “crisis” in real estate won’t go away. By the way I am NOT picking on Chapel Hill, it is to me just a glaring example, I could also point to the condo “boom” in downtown Raleigh and Durham…neither of which are selling and BOTH of which are HIGHLY OVER VALUED as examples too. Most likely I could skip across the country finding fine examples too of real estate over valuation.

I know that there are a whole lot of folks out there who are going to say, “But I have to get “X” dollars out of my place.” To them I’d say, take your place off the market and stay put. My reasoning is simple, “When you bought your place, did you really care what the seller had to get out of the property?” Of course you didn’t, we don’t think that way do we? There are two courses of action to take to solve the glut in real estate; one, cull the inventory or cull pricing; each will achieve the same end, some equilibrium. If we do nothing the market stays saturated with so many low valued foreclosed homes flooding the market. Will we take this action…doubtful but who knows.

Want to see specific properties in the area…phone me 919-608-2372 or email me at msullivan@fmrealty.com

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Real estate investments and rent to own community service that makes sense
Do you have $10,000 give or take?
Do you want to invest in a sound vehicle that has some risk but won’t scare you?
Then think about this.
In my practice I run across potential buyers who are fairly good risks but have some dinks and dings in their credit or may lack down payment. One such individual that I’m working with now, is currently renting at a high dollar amount. She has a good job, which is steady and stable, she has good income. She is lacking down payment and her credit needs a little clean up. Here is what she is willing to do; she is willing to meet in an on-going fashion with my in house mortgage lender as an ad hoc financial counselor so that she stays on track. The (buyer) has a credit score of 648 (fair), she makes 61,000 per year; she works for the city of Durham. She is looking at a condominium priced at $199,900.
She and I are looking for backers who are willing to buy the property that she’s identified, own said property for three years and then sell said property to her. Here’s how it could all lay out…
In very broad strokes:
We would buy this property, we would then lease this property to her on a rent to own basis and in three years when her credit is completely repaired she would buy this property from us. I say we because I am willing to put in my money too. We would collect incremental profit monthly on the lease and at the end of the term in three years when the property is sold to her.
If we purchase for $199,900, and our mortgage is at a 5% interest rate, we put down 20% which is 39,980, and our final loan amount is $159,920 financed for 30 years; then our payment would be $858.49 principal and interest + taxes $186 + HOA dues $213= which is a grand total of $1257.48
We enter into a rent to own agreement with our future buyer. Her monthly rent could be $1800, less $1257.48 our monthly expenses which leaves us with $543
We apply $200 from that $543 toward her down payment, at the end of three years she has $7200 saved up.
We could apply the additional $343 to our principal or we could divide it up on a monthly basis.
At the end of three years with no additional principal paid our outstanding loan balance would be: $152,000
We then sell her the property at 199,900, less payoff and the return is $47,900 less $39,980 (our down payment) is $7,920 + 12,348 ($343×36 months)= $20,268 return on investment which is not bad and much more lucrative than any bank or the stock market.
The reality going in the door, know that capital is going to be tied up for three years. Once in, then in for the three year period, secondly, know the risks, she defaults, we keep her down payment money and the property, but then we’re stuck with the property.
Additionally, we buy the property a tad discounted at the front end, say for $190,000 or $188,000 with seller paid closing costs and the revenue stream looks even healthier.
Interested in learning more, call me and let’s talk about it.

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We offer a $400 flat fee limited service agreement for landlords only.

We do the following:
-Put your home in Triangle Multiple Listing with up to 12 photos
-Make sure a broker bringing a renter gets paid at no additional money out of your pocket.
-Provide you with the paper work needed to lease your property.
-Provide you with a lock box.
-Submit your property to Craigslist and other rental sites with a professionally designed, multi-photo flyer.
-Provide background/credit checks on potential renters
-You the owner manage the property.

M.L. Sullivan Dev. Corp.

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805 Baker Court Haw River North Carolina

This lovely custom home is located in the quiet hamlet of Haw River. This secluded property, nestled on 2.4 park like acres is just ten minutes to downtown Mebane, twenty minutes to Durham and Duke University and just about 35 minutes to Research Triangle Park.
805 Baker Court is well planned, well executed, well cared for and just an all around terrific property. The home has an air of sophistication yet feels comfortable and warm. The main level is adorned with nine foot ceilings, lots of heavy molding and extensive hardwood flooring. The kitchen with Granite counter tops has been beautifully updated and is open to the living room. Just steps away from the kitchen are a screened rear porch and an elegant formal dining room located at the “bay” at the front of the home.
A spacious “great room”, “family room”, “media room”, “gathering space” is located on the main level too. This functional, light filled space measures 20 feet by 24 feet and French doors open onto an elevated rear deck which is two tiered and overlooks a nicely sized swimming pool. There is an abundant amount of exterior living space here. Imagine the parties year round.
An informal service area joins the home to the attached side load oversized two car garage. There is attic storage above the garage and a large wired “shed” measuring 16×16 is just steps away. Why clutter the garage with lawn tools and storage?
Upstairs, also all hardwood flooring, are three bedrooms and the master suite is impressive. An ornate trey ceiling adds interesting architectural features and the “bay” makes for a comfortable, quiet sitting space. The master bath has been updated with new Granite counter tops and new fixtures. There is also a spacious walk in closet in the master suite.
Interested in seeing inside or learning more…text or phone Michael Sullivan at 919-608-2372 you can email him too at MSullivan@fmrealty.com

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This property is being marketed by Michael Sullivan, Realtor with Fonville Morisey Realty. Mike Sullivan is the market expert for Durham, Chapel Hill and the Research Triangle Region of central North Carolina. Put Michael Sullivan¿s 17 years real estate market experience to work for you.

A great Hope Valley Farms home at a terrific price…$154,900

616 Edenberry Drive is a charming, well maintained three bedroom and two and a half bath home in the Hope Valley Farms neighborhood of Durham NC. The two-story entry foyer and living room/dining room combination are adorned with hardwood flooring and soothing neutral paint colors. A lovely wood burning fireplace is the focal point of the living space and sliding glass doors open to a huge, fully fenced rear yard that back up to green space. Just imagine no neighbors behind you and a fully fenced space for gardening, barbeques and playing.

The galley kitchen is modern and functional and has newly added ceramic tile flooring. A convenient door passage leads from the two car garage to the kitchen so if weather if foul groceries can be brought into the house and everyone will stay dry. The kitchen appliances stay with this home and the sellers are offering a one year HSA Warranty with a $100 deductible for buyer¿s peace of mind.

Upstairs are three bedrooms, all with Berber carpeting. The master is vaulted with a cathedral ceiling and ceiling fan and is serviced by its own private bath.

Hope Valley Farms offers interesting and fun lifestyle amenities. There is a swim and tennis club which is optional for residents to join. The neighborhood has miles and miles of sidewalks and is bounded by the American Tobacco Trail which offers miles of wooded, paved trails that wind from downtown Durham and the Durham Bulls Athletic Ball Park to the Streets of Southpoint Mall in southwest Durham. Hope Valley Farms is roughly ten miles to UNC at Chapel Hill, ten miles to Duke University and 5 miles to Research Triangle Park; literally at the center of it all.

Wish to see inside 616 Edenberry Dr.? Call or text Michael Sullivan at 919-608-2372 or email, MSullivan@fmrealty.com

Neighborhood: Hope Valley Farms
Lot Size: .15
Type: Single Family Residential for Sale
Floors: Two or More Stories
Parking/Garage: 2
Bedrooms: 3
Baths: 2
Half Baths: 1
Square Feet: 1344
Year Built: 1999
School District: Durham: Southwest/Lowes Grove/Hillside
Family Room
Forced Air
Hardwood Floors
Fenced Yard

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Red Shoes or Red Houses….
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.

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