Why It Is Important To Know The Value Of Your Property? – John Fitz-Henley
On this episode of The Closing Table, we sat down with John Fitz-Henley!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from John Fitz-Henley…
The conversation began with John introducing himself outside the realm of real estate. He is a devoted husband and father of two who has called Durham, North Carolina, home for the past 21 years. His passions extend beyond the housing market, encompassing a love for playing tennis, indulging in movies, and, notably, a deep enthusiasm for the real estate industry.
As a seasoned real estate professional, John obtained his license in 2009 and has cultivated a unique niche—he thrives in any market. His approach is distinctly quantitative, centered on removing emotion from the home-buying process. He is dedicated to guiding clients in making sound financial decisions, with a focus on helping them buy low and sell high.
Throughout his career, John has consistently delivered on his commitment to clients. On average, his buyers secure properties below 8% of the market value, while his sellers achieve sales that are, on average, 8% above market value. This impressive track record is a testament to his expertise and dedication to his clients’ financial success.
Geographically, John is licensed in and serves the state of North Carolina, with a primary focus on the bustling triangle area, encompassing Raleigh, Durham, and Chapel Hill. This region, renowned for its emphasis on education, healthcare, and technology, is John’s professional playground. Living in Durham, he experiences the unique charm of the city, often referred to as the “City of Medicine” within the research triangle. The area is a hub for top-notch healthcare, education, and technological advancements. Basketball games are a significant cultural activity, and, being in North Carolina, John relishes the local specialty—barbecue.
Reflecting on the local culture and environment, John paints a picture of the Research Triangle Park—quiet and peaceful, with traffic only during rush hours. Compared to family members in California and Atlanta, John appreciates the Triangle’s manageable traffic, contributing to a high quality of life. The region’s weather is another point of pride, with minimal snow during winters, vibrant falls featuring colorful leaves, and delightful summers perfect for beach outings.
In terms of the current real estate market, John provides a comprehensive economic overview. Prices in his area range from approximately $400,000 in Durham, the more affordable end of the spectrum within the local vicinity, to over $700,000 in Raleigh. The average price per square foot hovers around $300. Notably, John’s reach extends beyond the Triangle, as he also operates in the Triad, an area situated about 90 minutes west of the Triangle. This region offers an excellent quality of life, with great schools and a more affordable average price of $320,000.
When it comes to the market’s trajectory, John traces its history from hitting a low in 2012 to a steady rise until around 2019. The onset of the COVID-19 pandemic initially raised concerns about a potential crash, but instead, the market experienced a rapid surge, witnessing a remarkable 20% year-over-year growth. Inventory dynamics have also undergone significant changes, evolving from half a month in early 2022 to one to one and a half months, maintaining a seller’s market status. Although the market has slowed slightly, with a 20 to 25% decrease in home sales compared to the previous year, prices continue to rise, showing a 5 to 10% increase.
When asked about mediating conflicts during property transactions, John highlights the generally supportive nature of neighbors in the selling process. However, he recalls a unique challenge in 2011 involving the sale of a property next to Dean Smith’s home, the legendary coach of the UNC basketball team. Despite a slow market and a six-month listing period, John remained steadfast in valuing the property at $715,000. Faced with lowball offers and the buyers’ insistence on the sellers sharing in the perceived housing market losses, John navigated the negotiations, maintaining his commitment to the property’s value. Ultimately, the house sold for $689,000, showcasing John’s dedication to the integrity of each transaction rather than sheer transaction volume. His motto reflects this commitment: to be the best consultant in Triangle real estate.
When discussing common issues arising from a title report, John humbly admits that he’s not an expert in the intricacies of the process. Real estate transactions necessitate the involvement of an attorney who handles the closing, ensuring compliance with bank requirements before disbursing funds. Given the attorney’s pivotal role, John doesn’t claim expertise in title searches but remains diligent in checking for a clear title and guiding clients through necessary steps if any issues arise.
Shifting gears to the contemporary challenges faced by first-time homebuyers, John acknowledges the complexity of the current market compared to the more favorable conditions in 2012. He reflects on the changing landscape, emphasizing that back then, one could easily purchase a house and rent it out for more than the mortgage payment. In today’s market, first-time homebuyers can leverage programs allowing them to buy with a minimal down payment, often just one half of one percent. This approach, similar to a security deposit in a rental scenario, is made possible through assistance programs tailored to North Carolina residents.
The conversation wraps up with John sharing strategic advice for aspiring homeowners today involves taking advantage of their good credit to purchase a larger house than initially needed. He emphasizes that the cost per square foot tends to decrease with a larger property. To make this approach financially viable, John suggests purchasing the house with a small down payment and supplementing the mortgage by bringing in roommates. This way, homeowners can benefit from capital appreciation while sharing the financial responsibility. Drawing from personal experience, John recounts assisting his son in buying his first home during college, employing this very strategy of buying a house and renting out rooms.
Check out John Fitz-Henley:
Facebook Business Page: https://www.facebook.com/BestHomesInTheTriangle
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