Charlotte Real Estate Blog

Uptown Charlotte Condos and Townhomes For Sale

Uptown Charlotte condos are finally starting to get more buyer attention after the prices have dropped over the last couple years.  Living in Uptown Charlotte is exactly what a lot of current young buyers are interested in.  A lot of the Charlotte condo buyers are part of the young, educated crowd and hold jobs in or near the Uptown area. 

 Charlotte Condos For Sale

The amenities in Uptown condos are all different.  Almost all of them have pools and workout rooms.  Some have community grilling/bbq areas.  Some have community poker rooms, pool tables, movie theaters, big screens with game consoles, putting greens, concierge services, dry cleaning...etc

When searching Uptown condosyou should consider what the HOA dues cover.  Are these amenities something that you are interested in or should you look in another building for a better lifestyle fit?  Communicating exactly what you are looking for to your agent is important so that the agent can find the complex that is best for you.

Often buyers will ask about the HOA dues in a certain building.  The HOA dues almost always go by square foot so not all of the condos will have the same HOA fee.  If you have specific questions about any of Charlotte's Uptown buildings, please contact me and I would be happy to help you find your answer.

There are a lot of active listings in Uptown Charlotte so you should be able to find a condo or townhome that fits your needs.

New brick townhomes in the Ballantyne/Blakeney area of Charlotte, NC for under $150,000

If you are looking for a great deal in a rapidly growing and popular area in Charlotte, NC then you should visit the Cedar Walk community that is being built by Meeting Street.  Even with a slow market, this community has been very successful in putting most of their units under contract. 

Most of the townhome floor-plans have 2 master bedrooms on the second floor with a 3rd floor loft extension.  These townhouses have 2.5 bathrooms and are around 1400-1500 sq. ft. with fenced back yards. 

The brick townhomes are priced from $132,900 - $149,900.  They are a very short distance from a grocery store, restaurants/bars, boutique shops, and a farmer's market.

This is a great opportunity to live in new construction in south Charlotte for under $150,000.

Search for new construction in the Charlotte area

Changes to the North Carolina Offer to Purchase

The revised North Carolina offer to purchase is out in a sample form.  The new contract will come into play on January 1st 2011.  The contract has gone from 8 to 9 pages but is meant to be much easier for all parties involved in the transaction.

Changes to the Offer to Purchase

• There is no longer an alternative 1.  (before there were two options for the buyer.  Alternative 1 was the most popular option.  It set certain dates that the buyers' obligations had to be performed on or before...these include applying for a loan, dates to receive loan approval, setting a date to complete inspections and request repairs, and dates for appraisals if it was a cash offer)  The new contract looks more like what we have now as an alternative 2.  The buyer will buy a "due diligence period" for a negotiable amount of money and time.  During this time the buyer must complete all inspections, repair negotiations, loan conditions, surveys, appraisals etc.  During this due diligence period, the buyer has the option of walking out of the contract for any or no reason as long as he/she give the seller or seller's agent written notice prior to the end of the due diligence period.  If the buyer decides to stay in the contract, the money used to buy the due diligence period will be credited towards the purchase price at closing.  WHAT WILL BE AN ACCEPTABLE AMOUNT TO PAY FOR THE DUE DILIGENCE PERIOD??? 
• Range/Oven/Stove has been added to the fixtures section.  No longer will agents need to write in the personal property paragraph that the stove/range/oven is included in the price.  The words "at no value" have been added to the personal property paragraph so that the agents will no longer be required by mortgage lenders to write this phrase.
• Other changes are pretty minor.  They include adding a section that explains the difference between a settlement and a closing.  A section to disclose if the property is the owners primary residence and if they have lived at the home for longer than a year.  The new contract also makes it more clear about what will happen when one party decides to delay a closing.

Overall I think the changes are good.  It will take some time to get familiar with the idea of buying an option period but a lot of states have used this same type of contract for years. 

 How has it worked for agents in states where this has been the norm for some time?

Does your builder's contract include a "flip tax"?

The slow economy is making it hard for builders to obtain financing but many builders have changed their contract so that they can receive cash from investors now.  A flip tax is added to the contract...every time the owners of the home sell the house, a percentage, usually 1%, will be paid back to the builder.  This is not a new tactic.  Condominiums have used this but have put the money back into common area projects or into home owners association reserves.  Lennar has also used a similar technique but they donate the money to local housing programs and charities.  Some builders are putting this money straight in their pockets and this is aggravating to the public and real estate experts.

Real estate experts say that this technique will only put more downward pressure on prices.

Builders argue that this allows them to finish subdivisions that they would otherwise have to pull out of because they lacked the funds to continue. 

The builder would have two options:

1. They can build now and wait to receive their "tax" when today's buyers decide to sell the house
2. The can sell the futures to investors at an amount around 5% of the original sales price of the house

18 states have already banned this technique and experts predict that more will in the future.  I have not come across this when selling new construction in Charlotte, NC. 

Foreclosures | What is going on with foreclosure filings in the Carolinas?

The national foreclosure filing numbers are out and the news is decent given the situation.  The number of foreclosure filing has dropped nationwide by 5.14%over the period of the first six months of 2010 compared to the last six months of 2009.  These numbers were given by CNNMoney.  The report also notes that 1 in 78 houses is still in danger of foreclosure.  The three states that lead the nation in foreclosure filings are Nevada, Arizona, and Florida. 

The Carolinas are experiencing a different trend.  The number of foreclosure filings over the same period ot time grew by 10% in North Carolina and by 21% in South Carolina.  Even with these increases the Carolinas' foreclosure rates are still a good bit below the national average.  (For the second quarter of 2010, North Carolina ranked #32 in the number of foreclosures)

WHAT HAS CAUSED THE FORECLOSURE FILING INCREASE IN THE CAROLINAS?

Analysts believe that number of foreclosure filings is still on the rise in the Carolinas because North and South Carolina are two very popular states for second homes. 

Low mortgage rates will continue to help to incent investors and home owners to buy up the foreclosures in today's market.  We are expecting to continue to see a large number of foreclosures nationwide. 

Another reason that the national foreclosure filings has decreased is because more banks are becoming more willing to allow a short sale.  Banks will often be willing to short sale the property to avoid paying the high cost of foreclosing on the property.

Steve Harney, a well respected real estate speaker, told our office a few months ago that he is predicting 5-8 million more foreclosure filings in the near future. 

We will experience more downward pressure on list prices as long as there are a high number of foreclosures in the area. 

New Market Reports Offer Neighborhood Specific Real Estate Information

Allen Tate introduced a new Market Report that many of my clients are finding very valuable.  The report is sent out monthly via. email and allows the property owner to see the recent activity in their subdivision and zip code.  This tool is an easy way for home owners to stay on top of their local real estate market and allows them to have a better idea of the value of their largest investment.

The report has a "unsubscribe" link at the bottom so if you relocate or decide that you no longer want to receive the information, it is very easy to remove yourself from the program. 

If you are relocating to Charlotte, NC and want to stay on top of what is going on in the neighborhoods of your interest, this is a great way to begin.

The report also maps the properties that are currently on the market and the previously sold houses.  Contact Brandon if you want your neighborhood market report sent to you monthly.

Below is a sample of the email that is sent out.  This report was generated for Ardrey Commons, a townhome development in south Charlotte.

Why Would You Want To Sell Your Home In This Market?

This is the million dollar question for people who have not been informed about what is happening in this real estate market.  Many people do not understand why so many listings are on the market that are not in a distressed situation.  "If you were not forced to sell your home now, why would anybody want to sell at a loss?"

It is simple really.....

Many sellers want to take advantage of the market even if this means taking a large loss on their home.  Many want to get out of their 6% mortgages and into a nicer house with a mortgage around 4.25%. 

Follow this...

Lets say they bought their house for $250,000 in 2007.  Lets also assume that their home is now worth only $185,000.  The owners are still paying a 6% interest on their mortgage of or around the $250,000 price.  These sellers are not financially stressed and have always dreamed of living in a nicer subdivision closer to the city but could never afford the house of their dreams.

Now the market crashes and house prices plummet...

The seller sees houses in their desired subdivision that are listed for $350,000.  These same houses were selling for $450,000 in 2007.  The sellers has also kept their jobs through this downturn and their salary has increased a bit over the last three years.  They can afford the $350,000 even after taking a $65,000 loss on their current house.

Why wouldn't the seller make the move is the better question! (Interest rates will not stay this low forever and house prices will eventually climb back up)

So now the seller has the house they want in the subdivision of their choice.  They have a new mortgage with an interest rate in the 4% range and have bought a house $100,000 less than what it was selling for a few years ago. 

Most sellers are having to sell their houses for less than what they purchased them for a few years ago but they understand that they can make their loss back when they buy a more expensive home. 

Note, if you are downsizing and not financially stressed, now is not the best time for you to make a move.  The percentage gain you get from purchasing a less expensive house will probably not be as much as you have to lose now on your current property.

Brandon Farmer ~ Charlotte, NC Realtor®

Why You Should Consider Buying A Home in Charlotte, NC

It is no secret that sales units and sales volumn are down this summer.  The lower-end market was moving before the tax credit ended and this helped to keep many real estate agents busy.  During the tax credit months, our median sales price dropped almost 10%.  This was driven by the lower-end properties that first time home buyers were purchasing.

I knew it would be a slow summer but I didn't know who would be taking advantage of this market next.  It has been investors and move-up buyers that are keeping the market ticking in Charlotte, NC.  Investors are looking for steals with hopes of quick flips while move-up buyers are getting in their desired neighborhood at bottom dollar prices and interest rates in the mid to low 4% range.

Our sales numbers in May and June show that buyers in the upper-end range are starting to shop this market.  Houses listed from $250,000-$750,000 are starting to gain strength. 

Reasons to consider relocating to Charlotte, NC

• Charlotte was recently ranked 16th for quality of life out of the major metro areas in the nation
• Charlotte housing and living expenses are low compared with other major cities
  • The city is known for having a higher and more stable home-ownership level
  • Charlotte neighborhoods are more aesthetically pleasing than what is common in other major cities
  • Charlotte has nationally ranked schools and North Carolina has great universities
• Charlotte is located 2 hours from the mountains and 3 hours from the Atlantic Ocean
• Charlotte experiences 4 seasons with a short and mild winter
• Charlotte attracts a large educated crowd because of a growing job market, businesses moving to Charlotte, and because we are still the #2 finance city in the country
• Charlotte is loaded with parks and has a great green-way system that circles the city.  This gives bikers, dog walkers, and runners plenty of opportunities to exercise
• Offers professional sporting events
  • The city is home to the Carolina Panthers (NFL), Charlotte Bobcats (NBA), and is the capital of NASCAR with three races a year (Coca-Cola 600, Bank of America 500, and the All-Star Race).  Many hope and plan for the city to obtain a major league baseball team in the coming years

Ask your Realtor® how you can take advantage of this real estate market!

Negotiating a Contract with a Builder ~ To Be Built Homes vs. Inventory Homes

This market has certainly given buyers the upper hand when it comes to negotiating a contract with owners of re-sale houses or with builders of residential houses.  As a buyer's agent, the negotiating strategy may end up being different depending on if you are looking at re-sale homes or at new built homes or even a bit more different when looking at to be built homes. 

Seller Mindset for Re-sale vs. New Construction

The owners of a re-sale will definitely consider the amount of equity that they have in their home.  The amount of equity is an important factor to determine the purchase price that the owners can afford to accept.  The sellers may also need to clear a certain amount of money so that they will be able to purchase their next property.

For a new construction builder, the sales price will need to equal the material & land cost, marketing cost (usually 5-6%), overhead, plus any builder profit.  A typical profit for a builder is around 8%.  In this market, builders are not producing the huge profits that most buyers think they are making.  If all of the builder's costs are set, the only room they will have to negotiate is off of their profit margin.  I have heard a few builder representatives in and around Charlotte mention that they are doing "market deals"...I take this to mean that they are willing to accept a lower percentage in profit to sell the property. 

Negotiating Strategy when Dealing with To Be Built vs. Inventory Homes

If you are looking at To Be Built Homes, know that the builder may not negotiate as much off of the price.  The price that they have offered to you will already be adjusted to fit what is comparable in today's real estate market.  In this scenario you will have better luck focusing on the incentive money that the builders are offering.  The builders will put a markup on the upgrades and options that they offer to the buyers with incentive money.  If the builder gives you more incentive money, this will not affect his bottom line as much as a price reduction.  Plus the higher price will help to keep the values in the neighborhood higher.

If you are looking at Builder Inventory Homes, then you should have more luck getting the builder to accept a lower offer.  Builders have a set overhead cost (the amount that it cost them to hold the property on the market) and if the property has been sitting for a while they may have run through the amount they set aside for carrying the house.  Every day that the house is on the market is eating into their profit so they may accept a low offer.  Putting in a low ball offer may not be your best move.  Instead you may want to ask the builder to come back and customize your house, or add a deck/screened porch, or to do extra landscaping.  The builder will want to work with you on this because it will help to keep the values in the neighborhood up and in the long run will help both you as buyer and the builder.

CNNMoney Spins June's New Home Sales Numbers to Sound Positive

If you were reading the headlines today on the CNNMoney website you may think that the new construction housing market has made a complete rebound.  The article I am mentioning has a headline that reads "New home sales rebound 24%"

This is great news right?  Well, yes it is great news but if you continue to read it also states that the new home sales in June represent the second worst month since the numbers have been tracked, dating back to 1963.  While 24% is a huge increase, you must understand how bad the month of May was to understand that this 24% increase may not be as large as you think.

As I blogged in an earlier post, our office sales numbers in May 2010 were the lowest they had been through the entire housing crisis.  These extremely low numbers were caused by the wave of first time home buyers taking advantage of a tax credit that expired at the end of April 2010 (April yeilded the highest level of sales since early 2007).  Everybody knew the numbers were going to dive, but everybody had hoped the numbers would hold stronger than they did.

It's a tough market for sellers who bought their house as an investment.  It's tough for buyers who want to take advantage of this market but have weak credit.  It's tough for real estate agents who have been use to skating through the job and always having friends and family that were interested in buying/selling real estate. 

I remember when I started in real estate in 2007.  Our leaders were telling us that the market would fall but would return within a year or so.  Well, its been three years and there is still a lot of doubt and skepticism about the nations real estate market.  At the time I felt unlucky about entering the business in a diving market.  Now I understand that this has made me a better agent and now I know that we as agents must adapt to what is happening in our markets.  The real estate agents that are complaining the most in this market are the ones that continue to implement the same marketing and networking strategies that were popular in the late 1990's.