Charlotte Homes

Houses For Sale in Charlotte | Myers Park Homes | Myers Park School District

Houses for sale in the Myers Park School District get a lot of attention from home buyers in Charlotte, NC.  Myers Park is located just south of Charlotte's center city which allows for short commutes for those working Uptown.  Houses in the Myers Park school district stretch beyond the Myers Park neighborhood.  Throughout the real estate downturn, houses located within the Myers Park school district seem to have held their prices better because of the popularity of Myers Park High School. 

View a map of the Myers Park School District

New Technique That Buyers Are Using

I just heard of this technique today after a joint conference with area agents about what is working for their clients in this market. 

Buyers are making one low offer on multiple properties; one at a time of course.

Buyers are searching the real estate market and putting together a list of 5-10 houses that they would be happy buying.  They rank these houses in order from their favorite to their least favorite.  The buyers then place a value on each house at which they feel they are getting an amazing deal.

Once the buyer has put a number on each of the houses, they are making offers starting at the top of their list.  The buyers are not willing to negotiate and they want to present the offer as a first and final offer.  They tell their plan to the listing agent so that the sellers know that if they reject the offer that they will be moving on to try the same tactic on another property. 

This is actually working for many buyers.  In multiple cases, agents in the office had had this technique work for their clients.  Buying tactics are adapting to the market conditions and with so many distressed properties on the market and so few buyers, the buyers have the upper hand when it comes to negotiating.

What's Slowing the Housing Market Recovery?

There was hope that the housing market would recover a bit in 2010 but it seems that the year has been pretty flat lined compared to last year.  Yes, all markets saw a jump in sales due to the tax credit and then the markets plummeted to record lows from May through July.

We have seen slight improvement since the summer months but the recovery is definitely happening slower than we would want and slower than what was forecasted. 

If interest rates are at record lows and home ownership affordability at a record high, why aren't there more buyers?

• Low credit scores- many people would like to take advantage of this market but the percentage of Americans with low credit seems to be a real issue and they are unable to obtain loans
• High Unemployment - this number is starting to lower slightly but the economy needs to add around 100,000 jobs a month just to stay even with the work force that is entering the market.  The economy has lost millions of jobs over the last few years
• Consumer confidence - many are worried about a double dip recession and those with jobs are not seeing the income growth that they had expected

High unemployment is probably the most powerful factor here in North Carolina.  We have got to create jobs. 

The economy will get better...it has to.  Some markets that were hit early by this recession are already showing positive signs of recovery.  Many of the large banks have suspended foreclosures in 23 states until they rebuild their systems to be sure that they are being fair to the states' economies.

METropolitan Trade Program ~ Charlotte, NC

THE MET

The Metropolitan is a condominium development that sits in Midtown, an area just south of Uptown Charlotte, NC.  The development also offers shopping (Trader Joe's, Best Buy, Staples, Marshall's, and several boutique shops) and dining (Zoe's Kitchen, Vivace, and Dressler's).  

Recently The MET has started a new Trade Program that has been very successful and has allowed many home owners to get out of their property and into the lifestyle that The MET offers.

How Does The Trade Program Work?

The developers of The Metropolitan will order an appraisal and a market analysis of your current house.  They plan to pay 93% of the appraisal value.  (This assumes that if the seller were to sell their house that they would have to pay around 6% commission and around 1% in closing costs)

The only other parameter is that the home being traded cannot exceed 80% of the purchase price of a new condo at The MET.

Example:  If the condo you wanted to purchase at The MET was $500,000, the maximum that they would accept in trade is a house valued at $400,000.

Please contact me with any questions regarding this program or if you would like a list of the current inventory offered at The Metropolitan in Midtown, Charlotte, NC.

Charlotte's average "Days on Market" isn't too high...Your List Price Is!!!

Finally three years into the business and I am completely fine turning down any listing I think is over-priced or a waste of my time and money.  Many who are first starting in real estate want to get their signs in peoples front yards.  I understand this because this is where I was a couple years ago.  What I learned is that those overpriced listings do not produce quality buyer leads and do not help me build a trusting relationship with the sellers.

So far in September I have turned down one listing and did not re-list a house because both sellers were unrealistic with their list price.  Every real estate agent can probably name a couple agents in their area that will take any listing at any price.  These agents build a reputation for being unrealistic and they aren't doing their job as a trusted adviser if they have not told their sellers that they are overpriced. 

WHAT HAPPENS TO OVERPRICED LISTINGS???

Overpriced listings tend to chase the house prices downward and if/when they finally do sale, it is at a value much lower than what the seller could have achieved if it was priced right to begin with.

Example:  You list at $210,000 and your agent tells you we are in a declining market and your house should be listed around $190,000 to reflect market values.  Three months later you drop the price to $200,000 but now your agent tells you that the values have dropped and you should be listed closer to $185,000.  Another three months go by and you drop the price to $190,000 (where you should have been to begin with and you would have already sold the property and be in your next dream home) but now your house needs to be listed between $175K-$185K. 

See how this hurts the seller?  If the seller would have listened to the agent and listed at fair market value to begin with, then the house would sale much faster and at a higher price than if you keep reducing the list price trying to catch the declining market.  It always makes me question the seriousness of a seller when they say... "I know the value of my home, you don't need to show me those comps."....this is when I usually walk out the door and wish them good luck.  It seems that many sellers think that agents want to come in and get an under-priced listing so that we can get paid fast. 

I HOPE AGENTS DON'T THINK LIKE THIS.  I WANT MY SELLERS TO NET AS MUCH AS POSSIBLE BECAUSE THIS WILL STRENGTHEN MY RELATIONSHIP WITH THEM AND INCREASE MY CHANCE OF RECEIVING REFERRALS FROM THEM.

So I took a listing 12 days ago.  The seller told me he would only let me list the house for 14 days but he did list the house at what I thought was fair.  I put the house under contract lastnight after only 11 days and proved to myself that there is still a lot of buyer activity out there.  I, like all other agents, felt my business drop after the tax credit deadline.  Now I have a handful of listings that will close and a bunch of buyers. 

Any agent who says there are no buyers out there has either lost their mind or their drive to network. 

I Think A Lease Option Is A Better Choice Than A Lease Purchase

So often in this market I get calls on my listings and the person on the other end wants to talk about a lease purchase...or they are looking at rental property and want to turn it into a lease purchase.  As soon as I hear this I know the callers intentions...they want to get into a house at today's purchase price and interest rate but they don't have the credit or down payment for the loan...or maybe they have a house to sell and cannot afford two mortgages.

Reasons buyers/renters should steer clear of the Lease Purchase

1. The seller may not keep up the property because they think that by the end of the lease it will no longer be their problem.
2. The seller could stop making the monthly payment and the house could be foreclosed on.
3. Any improvements that the buyer/renter makes to the property is technically the property of the seller until it closes...and most of the time lease purchases don't close.

Why do buyers/renters want to do a lease purchase and what are the risks?

1. Buyers think that their credit will be better in a year (or end of lease term) and that they will be able to obtain the loan needed to purchase the home.   RISK is that the buyer is unable to fix their credit in a year and then the buyers lose their earnest money and the seller is forced to clean the property back up to either look for a new tenant or market the property for sale.
2. They have another house to sale.  What if the buyer/renter's home still hasn't sold at the end of the lease term?  If you are in a lease purchase and are in this situation your best option may be to go ahead and reduce the list price of your other home so that you can continue with your next purchase.
3. Buyers want to test out the neighborhood and think that at the end of the lease term that they have the "option" of purchasing or walking.  The buyer/renter needs to know that if they are signing a lease purchase that they are signing a legal agreement to purchase the property. 
4. Most lease purchasers think that their monthly rent is buying down their purchase price.  In most cases the money is just going towards the sellers down payment and the buyer's price is not being bought down at all.  It is not uncommon for the monthly rental rate of a lease purchase to be higher than fair market rent for the same house because the seller's mortgage payment could be more than the fair market rental amount.

If you must do a lease purchase please at least do the following:

• Sit down with an attorney and have them write the contract and make sure that both parties understand and agree to what will happen at the end of the lease term.
• Complete an inspection ahead of time and go ahead and negotiate the repairs.  You need to know the condition of the house before doing a lease purchase because it is a binding contract.
• Have the seller provide you a home warranty.  In case the seller stops taking care of the property, the home warranty should cover most major issues.
• Have the property appraised so that you are more confident at the end of the lease that it will also appraise again for you to obtain the loan.
• Make sure the seller keeps the property fully insured during your lease time.
• Neither party should make any physical changes to the property unless everything has been agreed upon in writing.
• HAVE AN ATTORNEY EXAMINE THE TITLE...there may be a reason the seller wants you to lock into a lease purchase.

Instead...Just Use A Lease Option

If you decide to do a lease option, then at the end of your rental agreement you will have the first option to purchasing the house.  The price will have already been negotiated and you will have the right at that time to either move forward with obtaining a loan and buying the property or you can walk away.

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. 

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!

Charlotte, NC Receives Federal Grant to Jump Start its' Streetcar Project

Today Charlotte received $25 Million to begin construction on its streetcar project.  Street cars have not ran in Charlotte since the 1930's.  The first track is going to run from the mass transit center near the Time Warner Cable Arena and will run to the Presbyterian Hospital.

The city of Charlotte has already set aside $12 Million for this $35 Million project but they still need $1.5 Million for operating expenses. 

There are also hopes of extending the streetcar line to run from Beatties Ford to the now closed Eastland Mall.  This project would take over 20 years and around $500 Million.  Hopefully by then, the mall can be reopened!

Mayor Fox mentioned that the growth of Charlotte's infrastructure will provide "sorely needed jobs for Charlotte."

I have been with relocating buyers this week that are trying to decide between Charlotte and Washington, DC.  They like Charlotte better but did mention that they expected Charlotte to have a better and more massive public transportation system. 

Now that the city has the money I say start hiring some people and break ground tomorrow.