Triangle Report - Raleigh Real Estate News

For anyone that has purchased a new home in an area where price appreciation has not been that kind, I would like to explore some real estate truths:

• Home builders are corporations - While it is in their interest to sale homes that appreciate and create value for their homeowners, their sole allegiance remains to that of the corporation and its shareholders. Hear me very clearly, home builders want to create win-win situations, but at the end of the day their financial decisions are motivated by its desire to generate returns for their shareholders. See the liberal documentary, The Corporation featuring Noam Chomsky.

• Home builders reserve the right to change their mind, just like you - When a real estate market is hot all home builders capitalize on basic economic principles of supply and demand. If you can sell a home for an extra $20k due to multiple offers, wouldn’t you? Likewise, if you had to sell your home in an emergency situation wouldn’t you take less? Home builders are no different, and if a market turns they will often do what they have to financially survive, even slash the price of the home your paid $15,000 more for last year.

• Home builders quote historical numbers, not guarantees to sell homes - When the new home salesperson tells you that homes in the area are appreciating very well, they are usually referring to historical data. If you are a speculator or investor it is up to you to understand the details and risks of your investment. In real estate, homes historically will appreciate over time, but no one can predict that time frame, or should I say those that can usually eat at restaurants that serve $24 bottled water.

From Businessweek Online:

Homeowners are getting slammed as builders slash prices. The big question: Will this shock treatment help hasten the end of the painful downturn?

Las Vegas was once the hottest of the red-hot real estate markets. But when sales really started choking up last year, developer KB Home (KBH) did something drastic. Determined not to be caught with a big backlog of unsold homes through one of the industry’s notorious down cycles, the builder started slashing prices. A lot. In the 1,400-home Huntington community, a subdivision of two-story stucco houses west of the famed Strip, homes that started at $320,000 a year ago are now listed for $270,000–just a starting point for potential deals. Rest

You know to be honest, I was not the biggest fan of the Martha Stewart/KB Homes alliance. I remember visiting Twin Lakes when it first opened and while the interior design was something to shout about, the basic models of the homes left something to be desired. You see, most KB Homes are built to order, unlike your basic inventory builder, so customizations are what sets KB apart. That’s the good, bad and the ugly all in one. The major problem I had with the marketing combination is that once you order the “make mine like Martha’s package”, your home price may have swelled $35,000-75,000.

Currently homes are being marketed as being from the 400K’s and range in square footage from 1,761 to 3,396 square feet.

As for the Martha Stewart and KB Homes combination, the part that I really never got was how and why buy a home with the Martha stamp, when we have no idea of Martha’s relevance in 10, 15 or 20 years when I go to sell my home. Whether Martha will be an added feature or a functional obsolescence, is something that only time will tell. But when I came across Wynbrooke during the Parade of Homes, I found a winner that had beauty on both the inside and the outside. Now, this semi-secluded, tree heavy and forest like home community is what I envisioned Twin Lakes would be like, but with only 90 or so homes, I think this North Raleigh neighborhood is poised to take off. It’s ideal for Relocated Yankees that Can Afford Raleigh….local joke. And for those of us not looking for ranches and or golf course living its a perfect fit. Near good local schools, freeways and major business hubs, it is a good fit.  Raleigh Families have another good choice.

If you are interested, this weekend would be great and ask for Kris as she was the saleslady that gave me the tour for the home.

BONUS

The top 5 “celebrities-influencers” I would love to see attach their name to a home builder.

Celebrity/Home Feature

1. Ralph Lauren/ 1.5 acre miniature pony ranches
2. Tom Ford/ every hallway would double as a runway
3. Donald Trump/ heliport outside the master bedroom window.
4. Apple-Steve Jobs/ all white walls with iMacs for flooring tile.
5. Shigeru Miyamoto, Nintendo Designer/ bedroom furniture that is controlled by the Wii remote.
   

The top 5 “celebrities-influencers” I would love to see attach their name to a home….. out of spite.

1. Flavor Flav/ Clocks, gold teeth and all kinds of debauchery.
2. Perez Hilton/ A house with no refrigerator?…… thats hot!
3. Ozzie Osbourne/ Giving a whole new meaning to powder rooms.
4. Shaquille O’neal/ The worlds first and only Olympic size bath tub.
5. Hugh Hefner/ Wait a second, doesn’t he already have a house?