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.

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. 

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.

Searching For Houses In Charlotte, NC is made easier with this Interactive Search Map.

If you are thinking about buying a house in Charlotte, NC then this search tool will be very helpful to you.  What is really great about this map is that it gives the buyer the ability to visualize the location of the house on a map of Charlotte.  By scrolling the mouse over the icon, the buyer can see the house information.  There are also icons for community information, local school information, and upcoming open houses.

Buyers are doing most of their own research before reaching out to a real estate agent.  The buyer wants to feel like they are in control of the search and this interactive map does just that. 

By helping today's buyers understand as much as possible about the real estate market in Charlotte I know that they will feel more satisfied that they have made the right decision.  The mentality of today's buyer is changing and as a real estate agent, it is more important than ever to provide buyers with up to date search tools. 

If you are interested in buying new construction then you should be aware of what the builder/developer will expect. 

Be prepared to use the builder's contract and forms.  The contract will be much longer than the normal North Carlina Offer to Purchase and the contract will also be pro-builder.  The contracts do not protect the buyer as much and they also set stipulations that at times seem ridiculous.  It is important to work with well reputable builders so that you can trust that they will honor your rights as a buyer and to insure that your earnest money will be available if you have a legit reason to back out of the deal.

Expect to be told how much earnest money that you will be depositing.  Usually real estate agents will tell their buyer clients that they need to put down 1% of the purchase price as earnest money.  Often the builders will require a set amount...much higher than 1%....and you may have to sign that this money will be used to start more new construction in the subdivision. 

Be prepared to be pressured into using the builder's preferred lender.  Many builders will offer a lot of closing costs to attract the buyer but they make this money back by putting a slightly higher interest rate on your loan.  When the builder sells the mortgage on the open market they are probably making more than the amount of closing costs that they offered you...so make sure your agent pressures them to not only increase the amount of closing costs offered but to also argue about the interest rate and they will usually drop this to an "almost competitive" rate. 

Ask the builder's preferred lender to provide you with an estimated closing cost sheet prior to signing the contract.  Often they throw in bogus charges that your agent should argue to have removed. 

Expect the builder to complete all necessary repairs.  You are buying new construction and you have the right to expect it to be perfect when you close on the property.

If you are buying a house that is not already built, be sure that you get a list of the upgrades and a price sheet for these.  You need to have every upgrade that you expect to be in the house in writing.  When you view a community's model home, the house is decked out with all the possible moldings and upgrades and the price they are offering on their to be built houses do not include these upgrades.

13804 Mallard Lake Road, Charlotte, NC 28262

$260,000

I just listed a great 4 bedroom 2.5 bath house in the Mallard Lake subdivision.  This house was built by McCar Homes in 2006.  The house has between 3,000 and 3,600 square feet.  The tax records list the heated living area at 3,459 square feet.  The house has a 2 car garage. 

The exterior construction is stone and vinyl...easy maintenance.  The back yard has a retaining wall and an extended patio.  The owners have also added a lot of landscaping to this house that you will not find in the rest of the subdivision. 

The house has an open foyer with the formal living room and the formal dining room at the enterance.  The downstairs also includes an office, breakfast room, half bath, laundry room, kitchen and great room that is open to the second floor.  The owners have added tinted windows to the great room to help keep the heat out. 

Upstairs features 4 bedrooms, including the master, and 2 full baths.  The house shows like a model and is move in ready.  There are 2 staircases in this house.

The house is prewired for surround sound and has an alarm system in place with an extra keypad in the master bedroom.  The master bathroom has dual vanities.

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. 

Just south of the infamous Dilworth area in Charlotte NC you will find a subdivision called Sedgefield.  The homes in this neighborhood are not as large as the houses in Dilworth and there are not as many bungalow style homes...but the feel of the neighborhood is similar.  There are a lot of matured trees, street parking and the neighborhood is quiet.  The homes in Sedgefield were built in the late 1940's and early 1950's.  If you were driving down Park Road and were not familiar with Charlotte you may miss the subdivision all together or think that you are still in Dilworth.  The prices in this area are still very reasonable given that the area is within 5 miles of the city.  Three bedroom, 2 bathroom houses in good condition are going for the mid $300,000's (though there are a couple that have been added on to that are starting to look like Dilworth houses and they can go for the $600,000's).  The neighborhood has a nice park...from an aerial shot it is shaped like a butterfly...and the high schoolers in Sedgefield will attend Myers Park High School (another plus).

From Uptown Charlotte...go south on Park Rd. and take a right on Poindexter or Marsh and drive through Sedgefield.  Let me know what you think of the area.