Charlotte Real Estate Blog

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.

New Listing ~ 13804 Mallard Lake Road, Charlotte, NC 28262

$280,000

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.

Charlotte, NC has a lot of buyers coming to the area because of the city's large banking presence.  Charlotte is the 2nd largest banking center (NYC being #1) and though the banks have been struggling, we are still seeing people being relocated to Charlotte to work for Wells Fargo or GMAC.  Most of the buyers are completely new to Charlotte and need the expert advise of a local real estate agent. 

In a city that offers as much as Charlotte, it is easy to overwhelm the buyers with all the different areas and attractions.  I like to give my clients a one hour tour of the city and surrounding areas.  This is just long enough to drive them through the different areas and neighborhoods so that they can get a feel for the different sides of Charlotte.  They will want to explore the city on their own and will more than likely stumble across something that they will want me to explain to them.

The streets in Charlotte can be a little confusing for people new to the city.  The streets are designed like a bicycle wheel and spokes instead of the more traditional grid system.  Once you live here and understand how the different roads connect, you will see how much better the traffic flows with a wheel and spoke design.

Mecklenburg County has great public schools and a rapidly growing public transportation system.  If you want to receive more information about Charlotte please call me and ask for a relocation packet.  I can mail you all of the information about the city and the housing market so that you will be more educated when you are ready to buy.

Why should I buy instead of rent?

You can deduct the cost of mortgage loan interest from your federal and state income taxes, as well as the property taxes you pay as a home owner.  The value of your home will appreciate over time.  And nothing beats the joy of having a place to call your own,

Should I use a Realtor®?

Absolutely!  The detailed process of buying a home, qualifying for a mortgage and signing the papers at closing can be overwhelming for even experienced buyers.  I can help you find a home to meet your needs and price range; negotiate the best price; guide you through the paperwork; and serve as a trusted advisor during the home-buying process - and beyond.

How much money do I need?

Costs will vary depending on the price of the home and type of mortgage.  You can expect to pay earnest money (a good-faith deposit.....usually about 1%); a down payment (a percentage of the home and a minimum of 3-5 percent); and closing costs (the costs associated with processing the paperwork, usually 3-4 percent of the cost of your home).

Where do I get a mortgage?

Allen Tate offers a one-stop shopping approach through its Family of Companies, including Allen Tate Mortgage Services, which has access to many loan programs as well as in-house underwriting capabilities for FHA and VA loans.  Allen Tate's Best Rate Guarantee program ensures you are getting the best loan package possible.  You'll need comprehensive documentation to qualify for a mortgage, and the process generally takes about 3-6 weeks.

How much do I offer?

Consider the following: 1) recent comparable listing and sale prices.  2) condition of the home.  3) time the home has been on the market.  4) amount of mortgage required.  5) how much you want the home.  Many sellers in today's market are highly motivated to sell to an interested buyer who makes a reasonable offer.  I can help advise you on what makes sense.

If you have driven through Madison Park or Collins Park in South Charlotte then you know that there are 3 bedroom ranches that are being renovated on almost every street.  The neighborhood is located about 3 miles south of Uptown Charlotte and sits between Park Road and South Blvd.  Woodlawn Rd. divides the two neighborhoods.  Though Collins Park is located just north of Madison Park (making it closer to the city), the homes in Madison Park always have and probably always will be more expensive and more sought after.  There have been two reasons for this in the past and a third is being added to the picture. 

Madison Park has the advantage over Collins Park because it has a road (Montford) that takes you directly to Park Rd.  If you lived in Collins Park you would have to take Woodlawn to Park.  Also, most of the homes in Madison Park have 2 bathrooms where as most of the homes in Collins Park only have 1 bathroom.  Both neighborhoods have decent sized lots and the majority of the homes have fenced backyards. 

The city of Charlotte has decided to build a nice sidewalk through Madison Park.  The sidewalk is going to be on Murrayhill, which goes directly through the heart of the neighborhood.  From being a former resident of Collins Park I can say that the residents there would also like more and better sidewalks.  Both neighborhoods are great and I enjoyed living in the area.  There are a lot of great restaurants, grocery stores and shopping centers very close to both neighborhoods. 

Marvin, Waxhaw, Weddington and parts Matthews, the areas in Union County, are seeing a lot of growth despite the economic downturn.  There are many new home communities being built and many shopping centers going up in the area. 

Brookhaven, built by John Weiland, is a popular neighborhood in the area.  The neighborhood is known for its' full brick homes and nice amenities.  There is a large pool, a kids pool and slide, tennis courts and neighborhood clubs that will meet the needs of every family.  The only downside to the neighborhood are the high voltage power lines, but they are far enough from the neighborhood that most home owners are not affected by them.  John Weiland is offering a unique incentive to gaurantee home values where if you buy one of his new homes, you can have a 3rd party appraiser come out in 5 years from the date of the sell and if the home appraises for less than what you bought it for, he will write you a check for the difference.

Cureton is a 4 stage development that is being built in the area.  M/I is building a great product in the neighborhood and is offering some great buyer incentives for upgrades or additions.  Most of the homes offered by M/I come with $30,000 buyer incentives.  This money is ussually used in this neighborhood for updated kitchens, extra hardwoods and screened porches.  The neighborhood has more trees and the homes have more stone than in most neighborhoods in the area.  One stage in the Cureton neighborhood, is offereing a New Orleans style home.  These homes are being built by the Cunnane Group.  This is the area of Cureton where the community pool is located. There are going to be walking trails between the 4 different stages in Cureton.

Lawson is a neighborhood just a little farther south and is popular for families that don't want to maintain a large yard.  There are many families that live in the neighborhood, as the community offers a pool, tennis courts and walking trails.  There are multiple builders in this community and each offers their own unique product. 

The Chimneys at Marvin, built by Pulte Homes, is located almost directly across from Marvin Ridge High School and Marvin Ridge Middle School.  The elemanty school, Sandy Ridge, is adjacent to the neighborhood.  The community is split into two stages.  There is the Estates and the Reserve.  The lots in the Estates are farther off of the road and more wooded, thus more expensive. 

All of these neighborhoods are receiving a lot of buyer traffic and it is really a personal preference to type of new community that you want to belong to.  They are all very different. 

Showcase Charlotte

I  think that now is a great time to buy new construction...especially if Charlotte, NC and especially above $300,000.  Builders are really offering some great incentives and closing cost money.  Some builders are coming way off of their list price and it is important to know how motivated each builder is individually. 

It is hard to take your clients into a model home at many communities.  Some onsite agents will act like the house you will buy will look exactly like the model.  It is very important that you get a list of upgrades for you clients along with the exact price of each upgrade.  Take your clients to an inventory home and let them see what they will actually get for that price and be sure to point out the upgrades that were or were not added to the home. 

You will learn more about how much upgrades cost in case you get asked in the future, it will help you gain the trust of your clients and it will ensure that the clients are happy once they move in and realize that they were properly guided through the entire transaction.

Remember RED PENGUIN....with the internet, buyers can do a lot of the research themselves.  They need the guidance of a prof. to ask all of the questions to the builders to make sure that the home they want is the home they will get.

Brandon Farmer