Charlotte Real Estate Blog

Let me walk you through the home buying process.  I am dealing with many first time home buyers and it is clear that many of you do not know what to expect when you are buying your first house.

Once you submit an offer...it is not a contract until both parties have agreed to the terms...the normal negotiations include the purchase price, the amount allowed for the cost of repair contingency, the closing date, personal property or fixtures and the amount of closing costs that the seller is willing to pay for the buyer.  Of course there are other dates and stuff that could be negotiated but normally people are only concerned with what I listed. 

Once you and the seller agree to all of the terms in the contract then you are expected to apply for your loan within a set amount of days set in the contract.  This is often within 5 days.  You are also expected to begin your inspections on the property.  Again, the contract states the exact date that you must submit a repair request but it is normal to have around 2 weeks to complete all of your inspections. 

Once you have completed all of the inspections you should talk with your agent about what you should ask the sellers to repair/replace.  Remember, the sellers are suppose to fix all of the necessary repairs or the buyer can get out of the contract.  If the amount of necessary repairs exceeds the amount in the cost of repair contingency then the buyer can get out of the contract even if the sellers decide to make all of the repairs. (There are time constraints that must be met for the buyer to execute this right...time being of the essence)  Your agent should be able to tell you what is and isn't a necessary repair.  If the object is functioning as it was intended and is not in need of immediate repair then it is not considered a necessary repair.  Let me know if you have something come up and you want to know if that is a repair that the sellers should do.

Your agent should be able to give you some good recommendations for mortgage lenders that give good rates in your area and they should also keep up with the mortgage process to make sure that the lender is pushing the package through underwriting so that you can get loan approval.  There is another date in the contract in which you must have received loan approval...usually 20-40.  If you are not satisfied that you will be able to get loan approval within that set number of days then the buyer has the option of getting out of the contract for that reason.

Several weeks away from closing your agent should schedule the closing with a local real estate attorney.  The attorney will usually send a buyer's information sheet that you will complete to give back to the attorney.  The attorney will receive a copy of the contract and they will be responsible for doing the title search, having the settlement statements prepared, handling the money from the mortgage lender and the money that will be paid to the home warranty companies or other small businesses that are being paid at closing.  The attorney will also record the deed once the property has closed.  All you will have to do on the day of closing is come in and be ready to sign your signature more than you ever will again until you buy another house. 

Welcome to 6119 Tuskan Drive in the Bishop's Ridge subdivision. $269,900 with a $5,000 buyer incentive

MLS# 815074

This subdivision is off of Providence Rd. just south of the Providence and Fairview intersection in Charlotte, NC.  The neighborhood is quiet with a lot of trees.  You drive through the Providence Commons subdivision to get to the entrance of Bishop's Ridge.  The subdivision has a club house, pool and tennis courts. 

This house was built in 1997 and has 2,488 square feet.  3 bedroom 2 1/2 bath house with huge deck and large stone patio.  This house has a very private backyard that is fenced.  Hardwood floors downstairs with carpet upstairs.  The kitchen has been updated with stainless steel appliances and granite countertops.  Large laundry room downstairs with a washer/dryer. The master bedroom is very large, laundry shoot and has an elegant master bathroom...garden tub, tiled shower and very large walk in closet. 

The house has a 2 car garage and back up to a wooded lot.  Quick drive to Uptown Charlotte.

This is a relocation property so there has been an inspection and most of the repairs have been completed.  The house has new neutral paint and really shows great.

Let me know if you know somebody that may be interested in this house. 

Are you a first time home buyer and still trying to decide if now is the right time for you to buy?  Ask yourself these simple questions.  Do I have a job and good credit?  Do I want to be renting after December 1st and miss out on the $8,000 tax credit?

If you are going to take advantage of the $8,000 tax credit then you must close on your house by December 1st, 2009.  There is no guarentee that they will extend this tax incentive.

It is not uncommon today for a house to take 45 days to close.

Job Loss Protection Program in Charlotte, NC is a seller funded mortgage protection program offered on some of the Allen Tate listings.  If the buyer qualifies for the program and happens to become unemployed within 24 months of the closing date, the Job Loss Protection Programwill cover up to $1,800/month of the buyer's mortgage payment for up to 6 months.  Essentially, the seller is buying insurance on the buyers ability to make their mortgage payments. 

Sellers may elect not to participate in the Job Loss Protection Program.  If they agree to participate, the cost is $500 paid at closing.  The $500 cannot be paid by the buyers and the buyers should expect receive an information packet within 45 days of closing to explain the program.

Sellers should strongly consider offering this program.  It makes their house stand out from others in the Charlotte real estate market and should help to attract buyers.  Buyers are able to buy with more confidence.

There is a vesting period with the Job Loss Protection Program.  If the buyer becomes unemployed within 60 days of the mortgage closing date then there is no coverage.  Also there is a 30 day waiting period after the date that you become unemployed before you can receive your first payment. 

The Job Loss Protection Program does have a few conditions and exclusions.  The buyer/claimant must qualify for state unemployment benefits.  The payments will cease upon re-employment.  In the event of a subsequent unemployment, another 30 day waiting period will apply.

The Job Loss Protection Program does not cover voluntary unemployment, disability or medical (physical or mental), reasons listed for denial of unemployment benefits, borrowers who are aware of a pending layoff, who are self-employed or involved in a strike/lockout.

The Job Loss Protection Program is part of the HELP Program which is administered by the Rainy Day Foundation.  These programs are intended to help buyers overcome the challenges of home-ownership. 

Relocation and corporate properties in Charlotte, NC are enticing buyers to buy...often these properties are in great condition but are selling at short sale prices.  The Allen Tate Company has been managing a constant portfolio of relocation properties and corporate homes.

When you negotiate a corporate or relocation property you are negotiating with a relocation company.  This is very similar to negotiating a foreclosure with a bank. (The relocation company will at least get back to you in a reasonable amount of time)  The advantage of negotiating with a relocation company is also much the same.  They do not have an emotional attachment to the property and they are less likely to be offended by a low ball offer.  The relocation company wants to get the house out of its' portfolio and will often sell the house below market value. 

These properties have already had inspections and the relocation companies have completed most of the necessary repairs.  You are able to see the inspection while you are viewing the property for the first time.  I encourage buyers to get another inspection because the house has been sitting vacant for a while but at least they are able to get a better idea of the condition of the house prior to making an offer.

People hate to see a relocation property enter the market in their subdivision.  They will not help to increase the values for other houses in the neighborhood and they will be a low "comp." for the area for the next 6 months.  This hurts values because future buyers will argue that the value of the houses in the subdivision are at a price level around which the relocation property sold. 

Charlotte, NC has a lot of relocation properties on the market and buyers and investors should definitely take a serious look at these houses. 

Click here to see the Allen Tate Corporate Inventory.

There are things that the seller should understand about necessary repairs and the cost of repair contingency.  When you receive an offer on your house you need to pay attention to the amount that appears in the cost of repair contingency paragraph.  This amount will be important when you get to the inspection process.  Larger houses and older houses should have a higher number in the cost of repair contingency.  Think about it...this only makes sense.  If the house is old or is large then you can expect that the house will need more repairs than a newer/smaller house.  The larger the amount in the cost of repair contingency the stronger the offer in the eyes of the seller.   

Once the house is under contract, the buyer will pay to have multiple inspections performed on the house.  The buyer has the right to inspect the structure and any equipment that is being conveyed with the property.  Once the buyer is satisfied with the inspections, they will present a repair request to the sellers.  The buyer will usually allow the sellers to view the inspection reports and most reports include a repair quote. 

The sellers are required to do the necessary repairs or the buyers can walk out of the contract.  If any part of the structure or if any of the fixtures that are being conveyed with the property are not functioning to the extent in which they were suppose to perform then this is a necessary repair that the sellers should be responsible for fixing. 

This could include a roof leak, window seal wood rot, cracked vinyl siding or cracks in the bricks or mortar, cracked heat exchange, light bulbs burnt out in the light fixtures, loose toilet seats...pretty much anything that is not working correctly.  Now here is what many sellers don't understand...the buyers can get out of the contract even if the sellers agree to complete all of the necessary repairs.  If the buyers do several inspections and conclude that the necessary repairs add up to more than the amount in the cost of repair contingency then the buyers can walk...even if the sellers agree to complete all of the requested repairs.

Please contact me if you have any questions about any part of the house buying/selling process. 

Condo for rent in The Villages of Eastover Glen ~ $900/Month 2Bed/2Bath

Okay...everybody knows somebody that needs a place to rent and for a 2 bedroom in a good location, it doesn't get much better than this.  I am putting this one on the market today.  It is a 2 bedroom condo in The Villages of Eastover Glen.  It is a ground level unit with easy access.  The unit has wood floors in the entrance way, living room and kitchen.  The condo has been updated with granite counter tops and stainless steel appliances.  A washer and dryer are included.  The master bedroom has a large walk-in closetand a separate bath.  There is a sliding door that connects the master bedroom to the back deck. 

Less than a 10 minutes drive to Uptown Charlotte, NC

There is a community club house and a community pool.  The pool has many chairs for tanning and a covered deck at the club house looks over the pool.

If you know someone that may want to buy the unit...bring me an offer!