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

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. 

Are You in a  Position To Take Advantage of a 15 Year Fixed Mortgage Rate?

Many home owners have taken advantage of the low interest rates in today's market.  We are seeing interest rates at levels that have not been experienced since the 1950's. 

If you are a home owner with a 30 year mortgage at or above 6.5% then follow my numbers.

A 15 year mortgage will build your equity much faster and will allow you to pay off your property much sooner. 

Lets say you have a $200,000 mortgage at 6.75%.  Your principle and interest payment is $1,297.  If you refinanced into a 15 year mortgage at a rate of 3.875%, then your priciple and interest payment would only increase by $169/month.  Your new monthly P&I payment would equal $1,466.

Notice how this will pay down your principle balance much sooner

After one year of the 30 year fixed you have paid your balance down by $2,316.  With the 15 year mortgage you have paid the balance down by $7,486.

What about after 5 years?

With the 30 year note you have paid the balance down $15,491 but with the 15 year, you have paid the balance down $67,458!!!  This is incredible.  By spending on $169/month for 60 months, a total of $10,140, you have paid your principle down by an extra $51,967.

If you are in a 30 year fixed above 6.5%, you need to speak with your mortgage consultant about your options.

 Brandon Farmer ~ Charlotte Realtor®

Charlotte Real Estate Update ~ Allen Tate | South Park Office Statistics

As Steve Harney would say, it's not good news of bad news... it's just "the news".  Take it for what it is and take advantage of knowing what is going on in Charlotte's real estate market.

The Allen Tate Company dominates the Carolina's real estate market, and the South Park office is the largest of Allen Tate's offices with over 100 agents.  These numbers and percentages come from the South Park office only, but given our size and sales strength, these should be pretty good indicators of what we are seeing in other parts of Charlotte.

Our office is currently holding over 530 active listings.  In 2007-2008 we were holding around 350 listings.  Obviously the listing inventory has gone up across the country and this has helped to pull down real estate prices (basic supply vs. demand).  It is projected that Charlotte's house prices will continue to drop through this year.

New construction inventory is at a 6 year low.  It seems that Charlotte's builders are holding less inventory and are waiting until the houses are under contract before they begin to build.

Decline in home buying has reduced among the young.  Young buyers took advantage of the tax credit or are having trouble getting financing and now agents are having trouble getting showings on their lower priced listings.  Our high-end market is seeing some action as investors and the rich are taking advantage of amazing deals.

Last year our sales price/list price was around 95%.  This year we have a SP/LP of 88%.  Buyers are putting in low offers and the houses that are selling have very compelling list prices.  Today's sellers should expect to receive a low ball offer unless you have a compelling list price.

The Allen Tate South Park office was very excited in March and April.  In these months, our units sold were at the highest point since June of 2007.  What happened in May and June of 2010?  Our sold units dropped to numbers lower than any of the previous 4 years for these two months. 

Interest rates are around 4.5%!!!  This is incredible.  I bought a house in February at 5% and felt lucky to receive that rate. 

So as I said before...this is not meant to be good news or bad news...this is just the news.  The fact is that buyers are in an extremely strong position, even if they have houses to sell.  If you are a move up buyer, meaning you are going to sell and purchase a more expensive home, then you are in a perfect situation to take advantage of this market.   

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.