All About Charlotte

Market Report: Q4 2011 and the Market Going Forward

2012-02-07T12:26:00.000-08:00

Many people expected 2011 to be a recovery year for the housing market in Charlotte. While the market didn't recover quite as much as expected, overall 2011 was a better year than 2010. The average sale price in Mecklenburg County in 2011 was $195,000, down 8.3% from the average in 2010. I think part of this drop in price is because of short sales and foreclosures, which typically sell at 30% or more below market value, and part is because motivated sellers are becoming more realistic with pricing. The lower prices in 2011 coupled with continuously low interest rates caused many buyers to come off the fence, driving inventory down. At the end of 2011, there were 6,866 homes for sale-- down 30.2% from 2010. Closed sales (2,506) were up 12.1% from the end of 2010.

The months supply of inventory is down from 11.4 months in Q4 2010 to 7.4 months in Q4 2011. That's a 33% drop in inventory! Typically a balanced market is 5-6 months, a depreciating market (buyers market) is 7 months or more, and an appreciating market (sellers market) is less than 5 months. This 33% drop in inventory over the past year shows that the market is slowly becoming balanced.

The bottom of the market in Charlotte was in October 2010. We are still coasting along the bottom, waiting for it to come to the new market norm. This year is expected to be a better year than 2011 in terms of units sold. We will sell more units, but those units will be priced at the new norm for the neighborhood. As for appreciation, we can expect that to happen in 2013.

When I'm talking to clients or speaking to groups, I like to focus on what we know now and not the unknown. The future is unknown and we can only predict so much, but what we are faced with now is:

-Interest rates are at an all time low and realistically can't get much lower.
-There is a tremendous opportunity for buyers to make an investment and have the pride of home ownership.
-Consumer confidence is increasing and there are more buyers out there, causing multiple offer situations and increased competition.

I truly believe that 2012 will be a great year for the real estate market in Charlotte. While prices may drop slightly as we see more short sales and foreclosures hit the market, the opportunity for buyers is unlike anything we've seen in years. Interest rates should remain low, as 2012 is an election year, and the current prices are very affordable and present a great investment opportunity in many cases. Charlotte grew 186,000 people in 2011, which proves that it is a great place to work and live. I am excited to see what the spring months bring in Charlotte!

When the Prophet Says Buy – BUY!

2012-02-03T08:37:00.000-08:00

John R. Talbott, previously a Goldman Sachs investment banker, is a bestselling author and economic consultant. When it comes to the housing market he is also a prophet. When housing prices started to skyrocket in 2003, he published The Coming Crash in the Housing Market correctly warning us that a real estate bubble was forming. Then in January 2006, he called the absolute peak of home prices in the US by releasing a new book, Sell Now! The End of the Housing Bubble.

Mr. Talbott, the person who accurately predicted the housing bubble and its bust, now has a new prediction – IT IS THE TIME TO BUY A HOME! In a recent article, Homes – Buy Now!, Talbott simply explains:

“I have been waiting for more than five years to offer this advice. It is now time in most cities across the country to buy a new home or refinance your existing home with thirty-year fixed rate mortgage debt.”

He goes on to explain that his conclusion is based on four different metrics, all of which favor buying today:

Home Prices Relative to Peak Prices During the Bubble
Home Prices Relative to Construction Costs or Replacement Costs
Home Prices Relative to Incomes and Rents
Home Prices in Real Terms, Not US Dollar Terms

Bottom Line

If the person who called the real estate bubble and its bust says now is the time to buy, we believe it is time to buy.

By The KCM Crew on January 9, 2012

When the Prophet Says Buy – BUY!

Relocating to Charlotte in 2012?

2012-02-03T07:08:00.001-08:00

It's hard to imagine that a city of almost 2 million people can feel small. For those who prefer the big city feel, a condo or flat Uptown will do the trick. If you prefer a smaller, family friendly neighborhood where everyone knows each other, venture south a bit. Regardless of what you are looking for, there is something for everyone in Charlotte.

When people think of Charlotte, many people immediately think banking. Well, at least they did before the economy started to decline. The truth is, yes, Charlotte is a big banking center- 2nd to New York City- however; despite what many people think, banking is not the industry responsible for the greatest number of jobs in Mecklenburg County. Retail trade is number one, and banking & insurance comes in at number two, followed by wholesale trade and manufacturing.

My interest in the city of Charlotte extends far beyond my career. I love Charlotte for many reasons- its rich history, location, climate, culture, etc. We are just 2 hours from the mountains, 3 hours from the beach, and a short plane ride to almost anywhere else in the country. Charlotte is a world-class city with so much to offer.

Here are a few reasons why it's good to live and work here:

-Low cost of labor (because of low union membership)
-Cost of living is below the national average
-High productivity
-#1 most educated workforce
-Excellent transportation: International airport with direct flights, major highways for transporting goods, close to 2 major ports (Charleston and Wilmington), center of the country's largest railroad system, public transportation (buses, light rail, new future streetcar system)
-Foreign trade zones (can import and export duty-free goods)

Schools:
-High test scores
-Many diverse programs
-Magnet programs for learning different languages
-Higher Education(over 35 colleges and universities in and around Mecklenburg County including: Queens College, Central Piedmont Community College, UNCC, Johnson & Wales, Johnson C. Smith University, Belmont, Davidson, Winthrop, Wingate, UNC Chapel Hill, Duke, Elon, NC State, and more)

Government:
-Taxes- inexpensive compared to other all other metropolitan areas of our size, more expensive compared to smaller cities but the services are higher
-We are progessive and diverse (government positions)

Diversity:
-over 850 internationally owned businesses here
-Huge Korean population
-#1 largest population relocating here: Hispanics

Sports:
-NFL, NBA, NASCAR, PGA, NHL/AHL Affiliates, AAA Baseball, and more

Outdoor Recreation:
-Tons of activities on Lake Wylie, Lake Norman and Mountain Island Lake
-Whitewater rafting, canoeing, kayaking, fishing
-36 public and private golf courses
-17,600 acres of parks & 33 miles of greenways

Arts:
-Symphony, museums, opera, concerts

Click here if you would like me to send you a free relocation packet. Let me know if I can answer any questions!

New Listing in Southpark!

2011-12-02T07:45:00.000-08:00

1907 Wandering Way Drive in Woodbridge

Updated 3 bedroom, 2 bath home in desirable Southpark area! Spacious kitchen features granite countertops, tile backspash, separate desk area and breakfast nook. Sunken den has a big fireplace and door to screened porch. Large deck perfect for grilling and relaxing. Level, fenced in backyard with mature trees on a quiet streets. Just minutes to great schools, shopping, and fine dining! Offered at $329,900.

Click here for more pictures and information.

Allen Tate's First-time Homebuyer Guide has Launched!

2011-09-26T09:35:00.000-07:00

I'm so excited that Allen Tate has finally released a new section of the website geared toward first time homebuyers! Most first time homebuyers that I've come across admit that they really aren't sure what they are getting into at first. Many have no idea what they can afford and what the costs are associated with buying a home. The First-time Homebuyer Guide on allentate.com answers many of these questions. It also has a series of short videos that take you through the entire process!

Check it out here.

One of my favorite parts of the First-time Homebuyer Guide is the Lifestyle Search tool. Charlotte is a large city, and for those unfamiliar with the area, it can be difficult to determine where you want to live having only information about specific houses and no information about the lifestyle in certain areas. One of the first things I try to accomplish when talking with new clients is what kind of lifestyle they would like to have. Once I know this, it's much easier to narrow the search and get into the fun part-- looking at houses!

I hope you find our new First-time Homebuyer Guide helpful and informative. Keep checking back on the website for more videos each week!

Under Contract in less than 3 weeks!

2011-09-22T07:35:00.000-07:00

The three main reasons why homes sell are price, condition, and location. This is proof that if your house is priced right, in excellent condition, and in a great location, it will sell-- even in this market!

If you are thinking about selling your home within the next year, let me know and I will be happy to help you start preparing!

Staging Secrets to Help Sell Your Home

2011-08-15T09:34:00.000-07:00

Can’t get HGTV to come stage your home for the market? Have no fear! There are things you can do without spending a lot of money to make your home stand out and sell quicker. Consider the five Cs when putting your house on the market.

•Curb Appeal – First impressions are lasting ones. What impression do buyers get when they pull up to your home? Make sure the lawn is freshly cut, shrubbery pruned, weeds pulled, and flowers planted to set the stage. Replace the dented mailbox, tarnished house numbers, and outdated light fixtures. Give the front door a fresh coat of paint and purchase a new welcome mat for the front porch.

•Clean – Make sure everything is spic and span. You might need to hire a cleaning crew to come in and give your home a thorough cleaning, including the carpets. In fact, having a cleaning service return weekly while your home is on the market is a good insurance policy for the clean rule. Make sure your home smells fresh and there are no pet or food odors.

•Clutter – There can’t be any! It may be necessary to rent storage pods while the house is on the market. The “50 percent rule” says eliminate the clutter in your home by at least half. De-personalize the house by removing political and religious items. Remove all personal photos. The buyer needs to be able to visualize the house as their home. They do not need to be distracted by your personal property.

•Color – Neutral colors sell! If you use colors and styles buyers would never select, then they cannot imagine themselves living there. Convey an image of neutrality and quality. You don’t want the buyer to walk away from your home simply because of taste-specific colors. Paint the walls with soft beige and accessorize with small splashes of color.

•Correct problems – Don’t give any cause for concern. Fix leaky faucets, broken tile and any other small items not functioning properly. Buyers assume if these minor things have not been maintained, then major problems could exist with the home. Don’t scare away the buyer. Paint the picture of perfection.
Think about model homes you have visited. First of all, they have curb appeal that makes you want to jump out of the car and go inside. Then, once in the home, it is clean, clutter-free, and color-neutral. You will not find broken items in the home. Everything works perfectly! You must have this “model-home mentality” when preparing your home for the market. It’s the small things that make the biggest difference.

Who needs HGTV when you have the five Cs? What are some of your best staging secrets?

From: Allen Tate Company, At Home in the Carolinas.

Just Listed in Dilworth - $299,000

2011-08-11T09:51:00.000-07:00

Click here for more information.

Lake Living in Charlotte

2011-07-28T09:01:00.000-07:00

Under Contract on Lake Wylie - 7/21/11
3 Bedroom, 3.5 Bath Townhome priced at $168,900

I've been spending a lot of time showing lake properties lately, and I have to say that if you are thinking about buying a place on either Lake-- Wylie or Norman, now is the time to buy. Prices have come down drastically in the past 12 months. Distressed properties have played a huge part in the downward spiral of prices, making even the non-distressed sellers come down in price in order to be competitive in the marketplace. Both Lake Wylie and Lake Norman now have waterfront condos starting at $199,000- a price unheard of a few years ago.

Unsure of what you can afford?

Here's a hypothetical situation (based on today's rates and a credit score of 640+):

Purchase price: $190,000
Down Payment (3.5%): $6,650
Loan Amount: $183,350
Interest Rate: 4.5%

Monthly payment: $929

Click here to see condos/townhomes for sale on Lake Wylie.

Click here to see condos/townhomes for sale on Lake Norman.

Click here to see homes for sale on Lake Wylie.

Click here to see homes for sale on Lake Norman.

How Does My Home Stack Up?

2011-07-18T08:53:00.000-07:00

Knowledge is king for sure. Part of knowing your market is to know where it begins and ends. Who are you competing with and who is your direct competition?

There are many factors that determine the actual geography. It is a school zone, crime stats, or a highway corridor that folks won’t cross? Is it a school feeder pattern? Sometimes folks, in addition to price, want to limit the search to new or resale. Many times, amenity packages and HOA fees make a difference, along with the lot size and age of the property.

How do you get to know your marketplace? For starters, you should find a Realtor to help you as he or she will know the ins and outs of the marketplace. But even a Realtor can’t read your mind so be sure to check it out yourself.

Put yourself in a potential buyer’s shoes. Take a leisurely stroll through your neighborhood and try to see things as though you are seeing them for the first time. Visit some open houses and new home communities in the same general area. See firsthand what kind of homes your home will be competing against.

Secondly, become a casual web searcher. At allentate.com, you can see what is for sale, as well as sold properties that are similar to yours. Compare, take notes, and see what worked and what didn’t. This type of activity will give you a real sense of what velocity of sales, inventory levels and direct competition are out there.

Last but not least, get current with the news if you haven’t already (and I’m not just talking about what is going on in the Wall Street Journal or New York Times). School report cards, crime reports, parks, recreation, convenience and accessibility are all examples of what may be important to a buyer. Keep in mind that these things change. If your school report card was good or bad six years ago, it has little relevance today.

Whether you are thinking about selling soon or years down the road, stay current with the trends. If granite is the choice today for countertops, you might consider doing it now and enjoying the amenity rather than installing it in order to sell.

Times are changing and values are not always predictable. Don’t rely on the nightly news or talking heads. Staying on top of trends on your street, in your neighborhood and school district is the only way to play.
By Pat Riley, Allen Tate

3 Lessons Learned In Today’s Real Estate Market

2011-06-29T11:56:00.000-07:00

In today’s real estate market, new and unique challenges are facing our clients on their journey to homeownership. When approached correctly, we can often discover success as we overcome hurdles during the journey. My parents used to tell me to always look at your mistakes as an opportunity to learn. In other words, you need to get caught up in the experience so it doesn’t happen to you again. Those words have stuck with me, especially when it comes to my job. We are living during a period where there are many uncertainties, but those uncertainties give us an opportunity to learn from any and all mistakes we may make as we navigate through this unchartered terrain.

One of the most noticeable challenges I have noticed is transactions that aren’t closing on time. Here are the top 3 reasons transactions don’t close in today’s real estate market:

“You have been declined for the mortgage loan.”

This is the #1 reason a buyer doesn’t get their dream home – they were declined for the mortgage.

Solution = get PRE-APPROVED, NOT pre-qualified. The mortgage process is changing and getting more restrictive in today’s economy. Buyers who apply for the loan process before finding the home have a much higher success rate. This way the only contingency to complete is the appraisal process.

“The property didn’t appraise.”

When you read that sentence you may have thought that the reason a home doesn’t appraise is due to price. Well, you might be surprised to know that the reason a home does not sell is due to property condition and/or repairs which is a direct reflection on today’s appraisal process. New appraisal standards not only note the value of the property, they also note many condition issues. The appraisal process is now very similar to the inspection process. Trying to sell “as-is” is no longer passing the appraisal process.

Solution = Sellers should get their homes inspected before placing them on the market. Approaching the process this way will allow you to address any condition issues before your home is placed on the market. Price and condition are the two most important elements in any market, but condition is becoming more critical to the appraisal process. Also, don’t discount the cosmetic issues – that peeling paint could be the one repair item that causes the red-flag on the appraisal, especially when dealing with FHA and VA loans.

“The house is a short-sale.”

Almost 30% of all sales in North Carolina are now distressed sales which means the seller is going through foreclosure or the house is now owned by the bank. The challenge with these sales is the time investment to get that “great deal.” Have you heard of sweat equity? These transactions require the buyer to put patience equity into the deal. The average distressed sale in North Carolina last year took 340 days to close. Many buyers cannot or are not willing to wait because the process takes so much longer than a normal closing process.

Solution = there are a many steps involved and the length of time it will likely take to get one of these properties closed maybe out of your control. Make sure you are working with a Realtor who understands this process, or at a minimum, has access to a great partner in the distressed arena who can advocate for you with the bank. The value and affordability can be like hitting the jackpot, but you must be prepared for the length of time that could pass while trying to close.

Make sure you take proactive steps in today’s real estate market. It will help you get your home sold or help you move into that dream home. Learn from these lessons in today’s real estate market so your success is ultimate result!

From Tony Jarrett, At Home in the Carolinas

Potential Investment: 2 BR/2 BA Condo $55K

2011-06-17T08:53:00.000-07:00

Just Reduced! 2 BR/2 BA Condo in Park Walk-- close to Southpark, Pineville, etc.!

Click here for more information

Is Now the Time to Buy?

2011-06-16T10:31:00.000-07:00

From Pat Riley, President and COO of Allen Tate:

"Hardly a day passes without someone asking “How’s the real estate market?” We have seen ups and we have seen downs. What I tell people is that, clients who have credit are listening to today’s mantra of selling low in order to buy low, instead of what their neighbors did just a few years ago – selling high and buying high, which is all relative."

Charlotte: Local Market Update

2011-06-07T12:39:00.000-07:00

Our sales meeting this morning was dedicated to a comprehensive market analysis and update. All of the information given was taken from the Charlotte MLS. Here are a few take-aways from our meeting that I feel are the most important:

-High end home sales are showing improvement.

-Entire market activity is up.

-Homes under contract have increased since May of 2009 and May of 2010; however, fall throughs have also increased slightly (*some of this is due to our new contracts with the due diligence period).

-List prices are more realistic- sellers have a better understanding of the market.

-All of the graphs- for the entire MLS and the South Charlotte area- indicate that 2009 was the bottom, and we are slowly recovering.

-So far in 2011 the Charlotte market is performing as well as it did in 2010, which is very positive considering we no longer have the government tax incentive that we had the first 4 months of 2010.

-New construction is leading the way. An increase in new homes being built and new homes being sold may be an indication of things looking up.

-It has been said that a 1-5 month supply of inventory is an appreciating market, a 7-12 month supply is a depreciating market, and a 6 month supply is a balanced market. Over the past 2 years, we have seen the monthly supply of inventory for areas 4, 5,and 6 in South Charlotte increase. Inventory is finally starting to decrease and we are now around 8 months, making it closer to a balanced market.

-A balanced market in general is positive; however, we still have not seen all of the shadow inventory of distressed homes be released from the banks. Also, those homeowners who have been waiting for the market to rebound will begin to list their properties, so we will see another jump in inventory once those are released.

-Some buyers are concerned about timing and buying when prices are at rock bottom. Assuming cyclical patterns continue, we may see a small amount of depreciation ahead; however, interest rates may not stay low for long.

-Overall, this is positive news for the Charlotte real estate market. As expected, the recovery will be slow, but Charlotte is still a great place to work and live. The Charlotte airport has recently been recording the highest number of take offs and landings in its history. Local car dealerships are recording record sales each month, which indicates an increase in consumer confidence.

If you would like more information about specific areas of Charlotte, please let me know and I will be happy to send it to you.

JUST REDUCED TODAY! Four BR Condo in Southpark Now Offered at $225,000.

2011-06-07T10:27:00.000-07:00

Looking for something to do this weekend?

2011-06-02T08:56:00.000-07:00

Come support the Ronald McDonald House of Charlotte this Saturday by joining the Charlotte Today Pond Tour! From 1-5 pm Saturday, June 4th you can tour up to 12 of South Charlotte's best ponds, watergardens and waterfalls. Tickets are on sale at various Walgreens locations for $10 and all of the proceeds go to the Ronald McDonald House of Charlotte.

For more information on the pond tour, please click here.

If you would like information about becoming a RMH volunteer, please let me know and I would be happy to put you in touch with the director!

Click here to visit the Ronald McDonald House website.

Potential Investment Properties - May 2011

2011-05-18T06:48:00.000-07:00

Piedmont Row Condominiums
2 BR/2 BA
$175,000
Bank Owned
Sold in 2007 for $469K
Click here for more information.

1315 East Blvd Condominiums in Dilworth
2 BR/2 BA
$199,900
Short Sale

14108 Yachtsman Harbor Drive on Lake Wylie
2 BR/2.5 BA
$130,000
Short Sale
I've seen this unit-- it's a deal.
Click here for more information.

5600 All Saints Lane in Sturnbridge
3 BR/ 2 BA
$190,000
Pre-foreclosure/Short Sale

5725 Connor Blvd in Sturnbridge
4 BR/ 2.5 BA
$239,900

Piedmont Row Condominiums in Southpark!

2011-05-16T07:38:00.000-07:00

Many of my clients have been inquiring about the condos at Piedmont Row recently. Southpark is a great area, and Piedmont Row is walking distance to tons of shops and restaurants. Prices have come down dramatically, and now that Alive After Five is in full swing, it's getting more and more popular!

There are 14 units on the market right now ranging from $129,000 to $400,000.

Click here to see what's on the market.

If you are renting and are considering buying, look at this scenario:

Sales Price: $129K
Down Payment (3.5%): $4,515
Interest Rate: 4.375%
Loan Amount: $124,485
Monthly Payment: $622

So, on a 129K condo, your monthly payment will be about $622 plus taxes, insurance, and HOA fees. In many cases, this is actually cheaper than renting, and you have something to sell a few years down the road!

If you have questions on how much your payment would be at a certain pricepoint, give me a call or email today. I would love to answer your questions!

Get Prepared to SELL!

2011-05-02T11:43:00.001-07:00

Now more than ever, the condition of a home is important. We all know that there are 3 things that help to sell a home: price, condition, and location. I have covered pricing and location in previous posts, so now I want to touch on condition.

Curb appeal is huge. This is the first impression that buyers will have, and can often make or break their decision to move forward. Curb appeal means having your exterior in great shape- anything from fresh paint to landscaping to getting a new roof- helps and will make a HUGE difference.

Do plant new plants. Plants are like children; they grow fast. Prune them.
Do create an outdoor living area (if you have a porch/patio).
Do NOT have dead plants in the yard.
Do NOT have plants that have not yet been planted in the yard.
Do NOT leave lawn mowers and garden tools outside.
Do touch up the paint on shutters, doors, garages, etc.
Do fix or remove any broken fences or gates.
Do spread new dirt/pine straw.
Do cut your grass and trim your bushes.
Do clean your windows and doors.
Do pressure wash, clean the gutters, and clean the roof.

*Paint is said to be the lowest investment with the highest rate of return.

The interior should be de-personalized, neutral, and clutter-free.

De-personalize. Of course everyone thinks your children and grandchildren are cute, but we don't want this to distract potential buyers. They should be looking at the features of the room and the space, not your family photos! One photo per table is plenty. This goes for the refrigerator as well. Sure, your child's 2nd grade interpretation of "Starry Night" is a masterpiece, but it needs to go. Buyers should be able to envision their furniture and artwork in the place, so try to make it less personal while still feeling like home!

Neutralize. A beige or white paint color goes a LONG way! Buyers can get distracted by funky paint colors, and they often make a room look smaller than it is.

De-Clutter. This may be a surprise, but a good rule of thumb is to remove 60% of everything in a room. In order to capitalize on the space in a room, it may be necessary to:

-Remove all collectibles, family photos, and personal items.
-Reduce the number of books on bookshelves and walls.
-Clear off tables and leave two or three magazines and a lamp.
-Remove tablecloth from dining room table and leave just a centerpiece.
-Minimize the number of plants- a home should have greenery, but it should not look like a greenhouse.
-Rearrange and reduce furniture to create a sense of spaciousness and flow.

*When in doubt, remove.

Here are a few other tips in preparing to sell:

-Have gender neutral decor.
-Open blinds and get as much natural light as possible.
-CLEAN! Dust and vacuum.
-Check the carpets- do they need to be steamed or replaced?
-Make sure all lights have bulbs.
-Clean out drawers, cabinets, and closets. Buyers want to know what kind of space they have to work with.
-Clean out the refrigerator.

It has been said that homes that have been professionally staged spend on average 80% less time on the market than homes that have had no staging. It may not be necessary for you to hire a professional to stage it, just be mindful of what was listed above and it should get you on your way!

Here are a few visuals:

The home above was not professionally staged; however, the homeowners did a good job of decluttering and getting it ready to hit the market!

This is a good example of what NOT to do. Buyers don't care what you have in your refrigerator, but if it looks like this, there's no telling what's hiding in other places.

This home was professionally staged by StageIt, a great staging company in Charlotte, and it looks wonderful!

Here is another example of what not to do. They could benefit from boxes, a trash can, a storage unit, and a big trip to Goodwill.

Email me for a full home preparation checklist. Good luck!

Top 5 Reasons Why Homes Don't Sell

2011-04-28T12:35:00.000-07:00

1) They are overpriced. Many sellers believe that they should be able to set the price and secure a buyer, when in fact, buyers set the price according to what they are willing to pay for the home. A house receives the most attention from prospective buyers in the first 30 days that it is on the market. After that, it becomes market worn in the eyes of buyers, and the longer it sits on the market, the longer you will be paying your mortgage, utilities, etc. If you are fortunate enough to find a buyer at the inflated asking price, keep in mind that it still has to appraise at this value, or the buyer will not be able to obtain financing. The moral of the story: pricing it right in the beginning is critical!

2) Bad Condition. Compared with years past, we have a very high inventory of homes on the market right now, which means increased competition in the marketplace. You may have 3 children, 4 cats and 2 dogs, and many buyers understand that, but you still have to realize that you are competing with the shiniest of all shiny apples! It’s amazing what a fresh coat of paint, new landscaping, and a good cleaning and de-cluttering will do for the showing of your home.

3) Bad Location. Unfortunately, you can’t change this. All you can do is make your home stand out above the rest, and make sure to accentuate the positives and downplay the negatives. Also, consider this when coming up with your pricing strategy.

4) Competition and Market Conditions. You must consider both your direct and indirect competition. Direct competition includes your neighbors and similar homes in close by neighborhoods. Indirect competition includes rentals and new construction. We have all heard that today’s market is a “buyer’s market.” What this means to you as a seller is that buyers are looking for a deal, so your best chance of selling your home is being realistic and helping the buyer feel that they are getting a good deal by pricing it right, keeping it in great condition, and marketing it aggressively and effectively. You want to have the WOW factor!

5) Lack of Marketing. In order to be competitive, you need to have exceptional marketing. Today, over 86% of home buyers use the Internet as their primary information source when searching for homes. What this means to you: your photos and property description need to be nothing short of the best. Just putting the listing in MLS doesn’t cut it these days. The Internet MUST be used in addition to traditional marketing tools and methods.

NC Historic Rehabilitation Tax Credit

2011-04-27T07:38:00.000-07:00

Did you know that if you own a home in a designated historic district, you can receive money back for your renovations?

North Carolina offers a state tax credit of 30% for qualifying rehabilitation properties that are non-income producing.

To be eligible for the tax credit you must:

1) Be located within a designated historic district. In Charlotte, this includes the neighborhoods of Dilworth, Plaza Midwood, Wesley Heights, Fourth Ward, and Hermitage Court . Check out the maps here to make sure your property is in the historic part of the neighborhood.

2) The renovation must be substantial. Expenses must exceed $25,000 within the first 2 year period, but the overall project may take longer than that.

3) All work must meet the Secretary of the Interior's Standards for Rehabilitation. You must submit before and after pictures and documentation.

Once the work is done and approved, you will receive the tax credit in 5 equal annual installments, starting in the year the project is completed.

Reduced and Remodeled in Dilworth

2011-03-30T10:47:00.001-07:00

Presenting 609 Berkeley Avenue

Three bedrooms, two baths, ~2,000 square feet

Offered at $529, 995

Great value for the condition & location! Roof, windows, insulation, siding, facia, soffits replaced in last 3 years. Downstairs neutralized. Kitchen cabinets re-faced & crystal knobs. Owners Suite upstairs with wall of closets & walk-in, sitting area and marble flooring and jacuzzi in master bath. Private patio, fenced yard, CFI security... all in the Historic part of Dilworth!

Click here for more information

Short Sale in Fifth and Poplar

2011-03-30T10:23:00.000-07:00

Two bedroom, two bath condo in Fifth and Poplar listed at $175,000. One of only 11 "reserve collection" condos with all the upgrades! Originally sold for over 400K!

Click here for more information

Kids in Motion 2011

2011-03-30T09:23:00.000-07:00

Join us at the Junior League of Charlotte's 6th annual Kids in Motion festival on Sunday, April 10th from 12-5 pm at Symphony Park behind Southpark Mall!

Kids in Motion is a community festival that showcases cars, trucks and things that GO! Children of all ages have the opportunity to explore, get involved and be entertained while parents gain valuable tips on improving the mental, dental and physical wellness of their children and families. Proceeds support the Junior League of Charlotte’s Healthy Child Initiative, which provides funding for programs, projects and advocacy that improve the mental, dental and physical health of Charlotte’s children.

I bought several tickets and only need a few, so let me know if you would like to attend and I would be happy to give you some!

New Allen Tate Mobile App!

2011-03-28T08:42:00.000-07:00

Have you ever been driving down the road, see a For Sale sign in front of a beautiful house, and wonder what the list price is? Imagine you can click on an application on your phone, and in less than a minute know not only how much it's listed for, but also how many bedrooms & baths it has, and even see pictures! Some of you smartphone savvy people may already have apps such as Realtor.com, Trulia, and Zillow-- I have them. But I can honestly say that the new Allen Tate app is the easiest and fastest to use. With a click of just one button, you can see a map with a list of several properties around you. It really is pretty neat-- just be sure to pay attention to the road. Safety first!

Have an iphone, ipad or Android? Go to the App Store, search for Allen Tate, and download it for free.

For any other smartphones, just visit m.allentate.com to access the mobile version of Allentate.com.

Thinking about Moving to Charlotte?

2011-03-24T09:33:00.000-07:00

It's hard to imagine that a city of almost 2 million people can still feel small. For those who prefer the big city feel, a condo or flat Uptown will do the trick. If you prefer a smaller, family friendly neighborhood where everyone knows each other, venture south a bit. Regardless of what you are looking for, there is something for everyone in Charlotte.

When people think of Charlotte, many people immediately think banking. Well, at least they did before the economy started to decline. The truth is, yes, Charlotte is a big banking center- 2nd to New York City- however; despite what many people think, banking is not the industry responsible for the greatest number of jobs in Mecklenburg County. In fact, it's not even the 3rd, 4th, or 5th. Believe it or not, Manufacturing accounts for the largest number of jobs in Charlotte- 135,000 of them! Second is retail trade, third is healthcare, fourth is accomodation and food services, and banking comes in at seven.

My interest in the city of Charlotte extends far beyond my career. I love Charlotte for many reasons- its rich history, location, climate, etc. We are just 2 hours from the mountains, 3 hours from the beach, and a short plane ride to almost anywhere else in the country. Charlotte is a world-class city with so much to offer.

Here are a few reasons why it's good to live and work here:

-Low cost of labor (because of low union membership)
-Cost of living is below the national average
-High productivity
-#1 most educated workforce
-Excellent transportation: International airport with direct flights, major highways for transporting goods, close to 2 major ports (Charleston and Wilmington), center of the country's largest railroad system, public transportation (buses, light rail, new future streetcar system)
-Foreign trade zones (can import and export duty-free goods)

Schools:
-High test scores
-Many diverse programs
-Magnet programs for learning different languages
-Higher Education(over 35 colleges and universities in and around Mecklenburg County including: Queens College, Central Piedmont Community College, UNCC, Johnson & Wales, Johnson C. Smith University, Belmont, Davidson, Winthrop, Wingate, UNC Chapel Hill, Duke, Elon, NC State, and more)

Government:
-Taxes- inexpensive compared to other all other metropolitan areas of our size, more expensive compared to smaller cities but the services are higher
-We are progessive and diverse (government positions)

Diversity:
-over 850 internationally owned businesses here
-Huge Korean population
-#1 largest population relocating here: Hispanics

Sports:
-NFL, NBA, NASCAR, PGA, NHL/AHL Affiliates, AAA Baseball, and more

Outdoor Recreation:
-Tons of activities on Lake Wylie, Lake Norman and Mountain Island Lake
-Whitewater rafting, canoeing, kayaking, fishing
-36 public and private golf courses
-17,600 acres of parks & 33 miles of greenways

Arts:
-Symphony, museums, opera, concerts

Click here if you would like me to send you a free relocation packet. Let me know if I can answer any questions!

For Sale: 2 BR/2 BA condo in Courtside (Uptown)

2011-03-02T13:48:00.000-08:00

Click here to see full brochure.

Individual Listing Websites

2011-03-02T13:06:00.000-08:00

I have started making websites for my listings to make them stand out. Here's my latest one:

Click here to go to the website.

Financing... What You Can Expect to Pay

2011-03-01T10:55:00.000-08:00

Sometimes it's hard to determine what your monthly cost of owning a home will be. There are many different factors that go into the equation including interest rates, insurance rates, homeowners association fees, etc. The flyer below gives you a breakdown of expected costs associated with getting a mortgage and owning a home (you can click on the picture to make the numbers bigger). These numbers will vary with changes in interest rates, type of loan, and amount of down payment, but it gives you a rough idea of what to expect! If you are thinking about purchasing a home, I would be happy to put you in contact with a mortgage consultant to see what you can afford and what options are best for you!

NEW LISTING in Southpark!

2011-02-23T13:21:00.000-08:00

Presenting 3504-G Colony Road in the Trianon. One of 4 sought after 'Grand Trianon' units!

Location, Location, Location! Beautifully updated and maintained 4 bedroom condo in the heart of Southpark! This private end unit condo has a wonderful floor plan with hardwoods throughout the main level, detailed wainscoting and crown moldings, a beautiful fireplace with marble surround, and lots of natural light! Lower level has a large bedroom with sitting area, private patio, recently updated bath, and rec room— perfect for an in-law suite or second master bedroom. This home has been meticulously cared for and is in a most sought after location— great schools and a five minute walk to some of Charlotte’s finest shopping and restaurants!

Foyer

Living Room

Dining Room / Family Room

Kitchen

Breakfast Area

Private Porch

Master Bedroom

Upper Level Bedroom

Upper Level Bedroom

Lower Level guest suite/2nd Master

Private Patio on Lower Level

OPEN HOUSE Sunday, February 27th from 2-4 pm-- Stop by!

For more info, please visit http://www.bethblickenstaff.com/

Under Contract in Bailewick!

2011-02-23T13:15:00.000-08:00

Selling Your House? 5 Reasons To Do It NOW!

2011-02-15T10:17:00.000-08:00

From Steve Harney's Article: Selling Your House? 5 Reasons To Do It NOW!

The conventional wisdom when selling a home has always been to wait until the ‘Spring Buying Season’. Over the years, that has seemed to make sense and is now accepted as a good strategy for those who want to sell their house and receive the best possible price. This real estate market has shattered many previously held beliefs. The wisdom of waiting for a spring market is another belief that is about to fall. Here are five reasons why?

1.) Interest Rates Are On the Rise
Interest rates have spiked up rather dramatically over the last ninety days and are now over 5%. Initially, an increase in rates has a positive effect on the market as it forces buyers off the fence. However, it also eats into a buyer’s purchasing power. As rates increase, the mortgage amount a buyer qualifies for decreases. This will eventually have a negative impact on prices.

2.) Your Dream Home Will Never Be Cheaper
If your family goal is to sell your current house and take advantage of the fabulous selection of properties currently available to buy the home of your dreams, DO IT NOW! Prices will continue to soften in most markets. However, if you are buying, COST should be more important than PRICE. Cost can be dramatically impacted by rising mortgage interest rates. Do the math and decide if now is the time.

3.) Buyers Are Out Early
There is mounting evidence that buyers are coming out earlier this year. A belief that now is a good time to buy coupled with the increase in interest rates has started the buying season early.

Pete Flint, CEO of Trulia:

“We’re seeing a national resurgence of buyer and seller activity on Trulia.com. In January alone, we experienced an unprecedented level of site traffic including 11 million unique visitors – which is more than 70 percent year-over-year growth. We’ve are now experiencing 100,000 property views per minute.”

The National Association of Realtors just reported that the number of house sales increased 12.9% over last month.

4.) Inventory Increases Every Spring
Every year there is an increase of inventory which comes to market as we approach the spring. Here is the number of listings available for sale in 2010.

February – 3,531,000
March – 3,626,000
April – 4,029,000
We believe there will be an increase in these numbers in 2011 as there is a pent-up selling demand created by the weak market of the last few years. You won’t have to worry about this increasing competition if you sell now.

5.) We Are in the Eye of the Foreclosure Storm
While banks are trying to rectify their foreclosure procedures, there is a large supply of discounted properties which has been delayed coming to market. This inventory will be released sometime in the next few months. Foreclosures sell on average at a 41% discount. When released they will be competing with your house for the buyers in the marketplace. If you are looking to sell in 2011, you want to sell before this inventory becomes your competition.

CNN Money quoted the leadership Of RealtyTrac on this issue:

“We’ve now seen three straight months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months where the total exceeded 300,000,” said James Saccacio, CEO of RealtyTrac.

“Unfortunately,” he added, “This is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing.”

“We expect a spike in the first quarter,” said Rick Sharga, a RealtyTrac spokesman.

Bottom Line
These are five strong reasons to sell now instead of waiting until later in the year. Sit down with a local real estate professional today and decide the best options for you and your family.

Mecklenburg County Property Revaluation 2011

2011-02-02T06:01:00.000-08:00

Many people have been asking questions about when the tax values of properties are going to be reassessed. The last time this was done in Mecklenburg County was in 2003, and there have been many changes in the real estate market since then. Properties in Mecklenburg County are scheduled to be reassessed in 2011. Below are two videos explaining what will happen in the next few months.

Piedmont Row Condominiums in Southpark - Now Starting at $150,000!

2011-01-31T09:11:00.001-08:00

Piedmont Row - Southpark

1 Bedroom, 1 Bath Condos Starting at $150,000

2 Bedroom, 2 Baths Condos Starting at $179,000

Below the complex, walk to the Harris Express YMCA, Delfriscos, Taco Mac, Brio, Dolcetta Wine Room, Georges Brassiere, Outland Cigar, Terrace Cafe, Salon Vivace, etc.!

Click here to see the Piedmont Town Center website.

During the summer months, Piedmont Town Center hosts Alive After Five.

Click on the photo below to see photos from last year's Alive After Five events.

Click here to see all condos available in Piedmont Row.

Fifth and Poplar Condos Uptown

2011-01-31T08:12:00.000-08:00

2 Bedroom, 2 Bath condo starting at $179,900

1 Bedroom, 1 Bath condo starting at $109,900

Great amenities! Heated pool, fitness center, 24 hour concierge, billiard/media room, on site Harris Teeter & Starbucks, putting green, courtyard, party deck, etc.!

Walk Score: 89

Click here to see interactive map with nearby amenities.

Click here to see all condos for sale in Fifth and Poplar.

JUST REDUCED!

2011-01-25T07:15:00.000-08:00

I just reduced my listing on Lake Wylie to $168,900. This is an amazing deal for a 3 bedroom townhouse right on the lake!

End unit provides privacy.

View overlooking the community.

View of the kitchen from third level loft.

For more information, click here.

Charlotte Makes Top 10 Travel Destinations for 2011!

2011-01-24T08:24:00.000-08:00

US Airways Magazine recently came out with the top travel destinations for 2011, and Charlotte was the pick for culture lovers!

Click here to read the full article.

What’s involved in getting my loan approved and closed?

2011-01-21T10:08:00.000-08:00

Everyone has heard that mortgage financing is more difficult to obtain these days. What people may not be aware of, however, is the “why” behind the time it takes to get a loan approved and closed in the mortgage industry today.

Typically, your offer to purchase contract is written for a 30-day closing. In most cases, you would have already spoken to your Mortgage Consultant/Loan Officer (MC/LO) to handle the prequalification for your loan. Well, prequalification and full loan applications are two different things.

The most important thing you can do following prequalification is to meet with your MC/LO to complete the formal loan application. Make sure to have with you all your required documentation of income, employment and assets. In some cases you will also need to provide information on credit such as explanations for any late payments, inquiries, etc.

Your MC/LO then needs to prepare your file to submit to their Processing Center. In most cases, this will take a few days, especially if they are waiting for you to get back to them with additional paperwork and documents.

Remember that the contract you signed is for 30 calendar days not business days. Typically, if you fill out all your application paperwork, your loan is submitted within 3-5 days. There are 20 business days in the average month which means that you have left the processing and underwriting center on average 15 business days (two weeks) to:

•Review initial package
•Order the appraisal
•Underwrite the loan
•Review the underwriting conditions
•Review the appraisal
•Order and receive back any third party verifications, such as employment, rent etc.
•Review and prepare the closing package
As you can see this is a lot of information to have reviewed in two weeks and remember that, most likely, there are other loan applications like yours in process.

Recently JD Power and Associates put together a study which was quoted in Origination News:

Lo said its data shows the average time from application to approval has increased to 27.5 days in 2010 from 20 days in 2009. And this is much worse than when compared with 2008, when the application to approval turnaround was 10.7 days.

So when you are looking to purchase or refinance, keep in mind that a more realistic timeframe from your application date to your close date is 30 business days…not calendar days.

View Full Article from At Home in the Carolinas here:

What’s involved in getting my loan approved and closed?

Is Now a Good Time to Sell?

2011-01-19T07:48:00.000-08:00

We keep hearing over and over that now is a good time to buy-- we have a large supply of homes on the market and very low interest rates, but does this mean that now is not a good time to sell?

Steve Harney on Fox Business News from Steve Harney on Vimeo.

Where are Prices Headed?

2011-01-06T11:20:00.000-08:00

Many people are confused about what's going on in the real estate world today. The news seems to be constantly changing, and is often contradictory. It's been said that we've reached the bottom, and we are still in the bottom, getting ready to round the curve. Supply is still high, and prices are fairly steady; however, when the banks release a large inventory of foreclosures, we are going to see another dip in prices.

The graph below, courtesy of Steve Harney, was created from information compiled by analysts at Bank of America in September. It shows prices gradually decreasing until the second quarter of 2011 (this is when the banks are scheduled to release their distressed properties), increasing slightly in the summer, and not reaching September 2010 levels again until the end of the year.

The main reason why we see a decline in prices is because there is a shadow inventory of distressed homes yet to be released. Banks are being careful as to when they release these properties and how many they release at a time. This is helping to keep prices from falling dramatically, thus helping non-distressed sellers from having to reduce their price in order to be competitive in the marketplace.

Below is another graph taken from Altos Research showing the expected increase in supply, which ultimately results in a decrease in price (assuming demand remains flat).

What this means to buyers: Prices are low, and getting lower. There are some great deals out there-- just be mindful of increasing interest rates!

What this means to sellers: If you are getting ready to list your property, price it well now. Do not wait for the foreclosures to hit the market to decide to reduce. It is very important to price it right in the beginning! Also remember that even though you may get less than expected from the sale of your home, if you are buying on the other end, you should get a great deal with a low interest rate.

Please let me know if you have any questions!

Potential Investment Properties for the Week of 11/8/10

2010-11-09T05:15:00.000-08:00

Two bedroom, two bath condo in Piedmont Row (South Park): $189,900.

Three bedroom, two bath home in Cotswold. Listed at $84,900; homes on the same street are listed in the 300s-400s.

Three bedroom, 2 bath home in Dilworth. Listed at $237,900.

Five bedrooms, four and a half baths in Highgrove (South Charlotte). Listed at $550,000.

Got Kids?

2010-11-03T09:20:00.000-07:00

Entertaining kids has never been so easy and fun! Charlotte has lots to offer families with children. Below are a few places that may be of interest:

Discovery Place

-Located in Uptown Charlotte
-Fun, hands-on educational exhibits
-Learn about Science, Technology, and Nature
-3-D Movies and shows

For more information, visit their website.

Children's Theatre of Charlotte

-Located in Uptown Charlotte
-Professional theatre for ages 3-18
-Fun and educational
-Tons of different shows and programs from pre-school age to young adults

Below are clips from recent shows:

For information about upcoming shows and schedules, visit their website.

Charlotte Nature Museum

-Located on Sterling Road in Myers Park
-Learn about nature through various shows, exhibits and events
-Focuses on kids ages 3-7

For more information, visit their website.

Levine Museum of the New South

-Located in Uptown Charlotte
-Interactive educational museum with information from the Civil War to present
-Youth and adult tours

For more information, visit their website.

Parks, Greenways and More!

Freedom Park

Click on the links below for maps, etc.

Parks

Greenways

Nature Preserves

More information to come soon!

Homeowners: Stay Current with Market Report!

2010-11-01T10:18:00.000-07:00

Want to know what's moving and shaking in your neighborhood?
Market Report is a monthly email that gives you tons of valuable information about what's going on in the real estate market in your neighborhood. Market Report gives you trends, statistics, and detailed information about recent actives and solds, including interior pictures!

Here is an example of what your personalized Market Report email will look like:

Click Here to sign up or email me!

Preparing to Sell

2010-10-21T07:39:00.001-07:00

Now more than ever, the condition of a home is important. We all know that there are 3 things that help to sell a home: price, condition, and location. I have covered pricing and location in previous posts, so now I want to touch on condition.

Curb appeal is huge. This is the first impression that buyers will have, and can often make or break their decision to move forward. Curb appeal means having your exterior in great shape- anything from fresh paint to landscaping to getting a new roof- helps and will make a HUGE difference.

Do plant new plants. Plants are like children; they grow fast. Prune them.
Do create an outdoor living area (if you have a porch/patio).
Do NOT have dead plants in the yard.
Do NOT have plants that have not yet been planted in the yard.
Do NOT leave lawn mowers and garden tools outside.
Do touch up the paint on shutters, doors, garages, etc.
Do fix or remove any broken fences or gates.
Do spread new dirt/pine straw.
Do cut your grass and trim your bushes.
Do clean your windows and doors.
Do pressure wash, clean the gutters, and clean the roof.

*Paint is said to be the lowest investment with the highest rate of return.

The interior should be de-personalized, neutral, and clutter-free.

De-personalize. Of course everyone thinks your children and grandchildren are cute, but we don't want this to distract potential buyers. They should be looking at the features of the room and the space, not your family photos! One photo per table is plenty. This goes for the refrigerator as well. Sure, your child's 2nd grade interpretation of "Starry Night" is a masterpiece, but it needs to go. Buyers should be able to envision their furniture and artwork in the place, so try to make it less personal while still feeling like home!

Neutralize. A beige or white paint color goes a LONG way! Buyers can get distracted by funky paint colors, and they often make a room look smaller than it is.

De-Clutter. This may be a surprise, but a good rule of thumb is to remove 60% of everything in a room. In order to capitalize on the space in a room, it may be necessary to:

-Remove all collectibles, family photos, and personal items.
-Reduce the number of books on bookshelves and walls.
-Clear off tables and leave two or three magazines and a lamp.
-Remove tablecloth from dining room table and leave just a centerpiece.
-Minimize the number of plants- a home should have greenery, but it should not look like a greenhouse.
-Rearrange and reduce furniture to create a sense of spaciousness and flow.

*When in doubt, remove.

Here are a few other tips in preparing to sell:

-Have gender neutral decor.
-Open blinds and get as much natural light as possible.
-CLEAN! Dust and vaccuum.
-Check the carpets- do they need to be steemed or replaced?
-Make sure all lights have bulbs.
-Clean out drawers, cabinets, and closets. Buyers want to know what kind of space they have to work with.
-Clean out the refrigerator.

It has been said that homes that have been professionally staged spend on average 80% less time on the market than homes that have had no staging. It may not be necessary for you to hire a professional to stage it, just be mindful of what was listed above and it should get you on your way!

Here are a few visuals:

The home above was not professionally staged; however, the homeowners did a good job of decluttering and getting it ready to hit the market!

This is a good example of what NOT to do. Buyers don't care what you have in your refrigerator, but if it looks like this, there's no telling what's hiding in other places.

This home was professionally staged by StageIt, a great staging company in Charlotte, and it looks wonderful!

Here is another example of what not to do. They could benefit from boxes, a trash can, a storage unit, and a big trip to Goodwill.

Email me for a full home preparation checklist. Good luck!

SURPRISE! The Luxury Market is Back!

2010-09-23T08:39:00.000-07:00

To many people, the fact that the luxury housing market is doing well is no surprise. Those of us who have been keeping up with the trends and statistics know that slowly but surely, luxury homes are selling. However, to others, this may come as a complete surprise. The news tells us that with all of the crazy lending practices and jumbo loans people got a few years ago, many of the $1M+ homes are distressed and are not selling because what they owe is more than the market value. While this is true, buyers for these luxury homes are out there, and this accounts for the 6.1% increase in $1M+ homes since last year, according to the National Association of Realtor's recent Existing Home Sales Report.

So why exactly are sales up for luxury homes when sales in every other price range show negative numbers?

1. The affluent were less impacted by the economy.

2. The wealthy understand investment cycles- they see the value in today's market.

3. Jumbo mortgage rates are at historic lows.

To read more about the luxury housing market, please visit Steve Harney's blog.

Open House Sunday, September 19th 2-4

2010-09-17T07:16:00.000-07:00

Presenting 7942 Elphin Court-- Beverly Crest neighborhood in South Charlotte!

4 Bedrooms; 2.5 Baths; 2,000+ sq. ft.; $309,000

Beautiful renovation is ready to move into!! Updates include a new roof (2010), exterior paint, interior paint, new carpet, granite countertops, stainless steel appliances, ceramic tile in upstairs master bath, new faucets, light fixtures -- $40,000 of updating! Great neighborhood, home site and price!!

Michael Jordan Buys Condo in Uptown Charlotte

2010-08-17T09:50:00.000-07:00

Heathermoor

2010-08-12T10:26:00.001-07:00

I want to let you in on a neighborhood that not many people know about! Heathermoor is a small community just off of Park Road between South Park and Uptown. It's a quiet neighborhood built by John Crosland, one of Charlotte's premier builders, with a beautiful canopy of trees lining the streets. It is also located in a top rated school district: Selwyn, Alexander Graham, and Myers Park High. Homes in Heathermoor do not come available often, but when they do they are worth checking out! There are currently two homes on the market there listed at $274,900 and $300,000.

The Importance of PRICING!

2010-08-12T09:57:00.000-07:00

Now, more than ever, pricing your home correctly is extremely important. In fact, pricing often ranks #1 in importance followed closely by location and condition of the home. So, how do you determine pricing? Let’s take a look…

In July, the List Price to Sales Price ratio fell year over year to 88%. Many misread this statistic and thought that they needed to list their home 10% above fair market value to get fair market value. Actually, the opposite is true…

From July 2003 to July 2007, the average List Price to Sales Price was 95%-97%. As the economy turned and the market supply increased, the list price to sales price ratio declined dramatically to 89% in July 2009 and then to 88% in July 2010. Several factors could be responsible for this average statistical change:

From July 2003 to July 2007, the average List Price to Sales Price was 95%-97%. As the economy turned and the market supply increased, the list price to sales price ratio declined dramatically to 89% in July 2009 and then to 88% in July 2010. Several factors could be responsible for this average statistical change:

•Distressed sales: First American Core Logic reports that distressed homes sell for dramatically less than non-distressed homes. As compared to non-distressed homes, short sales sell for 86.9% and foreclosures sell for 57.3%. The RealtyTrac Foreclosure Marketing Report stated that, in the first 6 months of 2010, there were 1.65 million foreclosures in the US. (To put this into perspective, only 5.1 million homes were sold in the US in 2009.) There will be continued downward pressure on home prices as these recent foreclosures come on the market. Though NC is not among the top 10 foreclosure states, our prices certainly have been affected by them and will continue to be. (For foreclosure information on a county by county basis in NC, click here or a foreclosure and unemployment map from CNNMoney, click here.)

•Lack of Consumer Confidence: Consumer Confidence measures 1000 random US citizens for their confidence in the American economy, their finances and their willingness to spend money. According to the Wall Street Journal, the July 13th consumer confidence rating had improved since May; however, it was still low and has not been in positive territory since March 2007, as seen in this clip from Reuters. Because consumers lack confidence, fewer people are buying big ticket items. The lack of demand and oversupply are causing prices to be pushed lower.

•Increased Days on Market: The DOM of 142.9 days was a direct reflection of the oversupply in the Charlotte market. It has been proven through national surveys that the longer a home stays on the market, the less it sells for as a percentage of its list price. Therefore, an increase in DOM can be linked to a lower List Price to Sales Price ratio. (Statistics can be found in NAR’s 2009 Profile of Home Buyers and Sellers).

Though 88% was the average List Price to Sales Price percentage in July, many correctly priced homes are still able to sell for the typical 95%-98% of list price.

Don’t fall into the trap of misreading statistics and overpricing your home. In any market, pricing your home within 5% of the true sales price will sell your home quicker and net you more for your home. When you price your home correctly you:

•Create Urgency: Pricing the home close to the sales price will create urgency in the mind of the buyer and help them see the value in your home. As seen in the NAR surveys and in neighborhood searches, the best offers are typically offers that come in quickly.

•Capture the First Buyer: In July, pending sales were down 23% year over year, indicating dramatically fewer buyers than in years past. With so few buyers, you need to capture the first buyer that walks through. Charlotte’s MLS actually had fewer pending contracts in July 2010 than in any July between 2003 and 2009. See the chart below:

Minimize Expenses: By selling the home quicker, you will stop paying the mortgage interest, taxes, insurance, maintenance and HOA dues on the home. Also, with the oversupply and lack of demand, many economists expect prices to decline another 5% this year. The longer you hold the home, the more depreciation your home may incur.

Want to Stay on Top of the Market?

2010-08-04T10:04:00.000-07:00

I think we all can agree that the value of our investments is important. We are constantly watching the stock market to see what's going on, and how our investments are doing, so why not keep up with the value of your home as well? As a Realtor, it is part of my job to stay on top of the market and know what is happening, when, and why. I am constantly analyzing the housing market on both a national level as well as regional, and even down to particular areas and neighborhoods of Charlotte.

I have become a big fan of our First to Know program, that will email you as soon as properties that you are interested in hit the market. Whether you are buying, selling, or just curious, this is a great way to stay informed!

This program is free and easy to use. It allows you to save your searches so you aren't constantly typing in the same criteria over and over again. You can also choose to save some properties to favorites so they will be easier to find next time!

Please visit this link to sign up. Feel free to contact me with any questions!

New Construction and Negotiating

2010-07-22T15:38:00.000-07:00

Today, buyers have the luxury of being able to negotiate prices on homes. However, that strategy for negotiating changes when it comes to buying new from a builder rather than purchasing a resale. What is the biggest difference? A resale seller is dealing with equity, the difference between what they paid for the home and what they can sell it for. A builder is dealing with materials, land, overhead, plus profit for a builder, equals sales price.

The typical builder has the following expenses that all add up to 100%… land 18%, materials 50%, overhead expenses 15%, marketing 6%, permits, fees, warranty 3% and profit 8%. So, for a $200,000 house, the profit is only $16,000, not the mega bucks that most buyers think a builder makes. All the other costs are essentially fixed, meaning that the only place to negotiate for the builder is their profit line.

If you are looking at a home that has to be built, be mindful that the builder is less likely to discount the base price of the home since they are building it to current values. Instead of jumping the negotiating gun, ask about the incentives being offered that have been factored into the pricing. This is a good place to get the biggest bang for your buck. Builders have a markup on options so giving them away has less impact to their bottom line than reducing the overall base price. Furthermore it helps preserve appraised values that reflect general value in the neighborhood and are important to you when you are getting your loan.

If you are looking at an existing inventory home, your negotiating strategy may be a bit different. First, determine when the house was completed. This is important because builders factor in some interest (overhead expenses) to carry the house until sold. When that runs out, builders start to eat into their profit, so they may be more willing to negotiate. Dropping the bottom out of the price even on aged inventory is still not a preferred strategy due to degrading appraised values. You may want to suggest items that can be added to the home that you would purchase anyway after you move in…additional landscaping, appliances such as refrigerators or washer/dryer, decorator items such as shutters, blinds or special paint colors.

In closing, keep in mind that even though builders are eager to sell their homes; they also need to turn a profit. In your house hunting travels you may find that the builders that are still in business today have survived because they offer a good value at a fair price and they stand behind their product when you need them!

What Can a 15 Year Fixed Rate Mortgage Do for You?

2010-07-19T06:48:00.000-07:00

Recently rates reached record lows that have not been seen since the 1950’s. Many people may think that they either have taken advantage of refinancing or that it may not make sense for them at this time. If you belong to the latter half of this group, consider this: if you have a 30 year fixed rate in the high 6 percent range now is a great time to refinance into a 15 year fixed. Depending on your equity in the property and your credit score, you may find that you can refinance into a 15 year fixed with a payment that is not much more than what you are paying now.

The advantages to this are simple, paying a 15 year fixed rate mortgage builds your equity much more quickly and allows you to pay off your home much sooner…

For example, if you have a $200,000 mortgage at 6.75% your principal and interest (P & I) payment is $1,297. A 15 year fixed rate at 3.875% would give you a P & I payment of $1466, a difference of only $169 a month. What is important for homeowners to take note of is the difference in the paying down of the principal balance.

•After the first year, the 30 year fixed rate has paid down its balance by $2,316, while the 15 year fixed rate has paid it down by $7,486.
Thos are powerful numbers, but what is even more compelling is what happens after 5 years:

•After 5 years the 30 year fixed rate has paid down its balance by $15,491, while the 15 year fixed rate has paid down by $67,458.
Let that sink in for a moment.

Today, rates are at an all time low but that does not mean they will stay this low forever. Review your current mortgage rate and, if it makes sense to refinance into a 15 year fixed rate, consider talking to your Mortgage consultant about what options are available to you.

FHA 203(k) Rehabilitation Loan

2010-06-28T06:20:00.000-07:00

If any of you watch HGTV as much as I do, maybe you will recognize this scenario. An agent is working with a young first time home buyer couple with a budget of say, $150,000. After seeing all of the options, the agent says, "well if you go with this one for $140,000, you'll have $10,000 leftover to update the Kitchen countertops or the bathroom floors!"

If only this were true.

What most people don't think of is that many people do not have cash readily available to update a home- especially after they've paid for closing costs, furniture, etc.

Allen Tate Mortgage now provides another option for people who want to buy a home that needs some updating. Because it is an FHA loan, we are still bound to the total loan amount of $303,750 (this is in NC- it is different in other states), and the maximum amount of borrowed money for rehab/upgrades is $35,000. So, in essence, you can purchase a home for $268,750 or less. The renovation/rehabilitation must begin within 30 days of closing, and must be finished within 6 months.

There are many other restrictions that the borrower must comply with; however, this is a great option for people who wish to buy a home that needs a little TLC!

Why Buy Now?

2010-06-22T09:37:00.000-07:00

If you are in the market for a home or are thinking about purchasing a home… now is the time to buy. Interest rates are at a 25-year low and the inventory of homes available is high, which means the advantage lies with the buyer. So there is a perception that buying a home in today’s market can be an easy decision if you have a steady job, good credit and don’t have a home to sell.

Let’s take a closer look at that statement.

Historically, we could win on both sides of the transaction because America’s housing values were appreciating. Within the past three years however, we have seen depreciation creep in, especially where acute price increases were enjoyed. Like the stock market, we are recalculating our market values to reflect the new norm.

Follow me. . . If I sell my house for 10% less than my neighbor did last year ($270,000 instead of $300,000) and I buy my next home at 10% less than what my neighbor paid for his new home ($360,000 vs. $400,000), I will have fared much better than he did. At those prices, I attained $10,000 in savings plus below 5% mortgage rates. This same example could be made at any price point.

Historically, housing was not looked at as an investment. Rather, it was viewed as a necessity with modest appreciation. When the real estate boom hit, housing became an investment with potential for profit. Instead of investing in the stock market, consumers began investing in housing. Today, savvy shoppers know to look at the housing market like the stock market – buy to sell. Take a look at the housing market numbers…they tell it all.

So, is now a good time to invest in real estate?

The chart below shows the return on investment acheived by investing different ways. Ten years ago if you had invested $100,000 in the Dow, you would have lost about $8,400. If you had invested in the S&P, you would now have about 77K of that 100K left. Similarly, investing in NASDAQ would leave you with a little over half of your original investment. Here in Charlotte, we didn't experience the huge appreciation that other bigger cities did before the recession hit, so if you invested in real estate here in 2000, your investment should be up about 30%. I think these numbers speak for themselves. There is risk involved with every investment, but for many a house is not just investment- it's a home, a place to raise your family, and something that you enjoy. If you are unsure if you can buy, or if you are interested to see how much you can qualify for, let me know and I would be happy to talk with you to see if you can/should buy now or sometime in the future!

Heathermoor

2010-06-20T07:53:00.000-07:00

Charlotte Schools

2010-06-10T11:55:00.000-07:00

One of the biggest questions I get from people who are relocating to Charlotte is about schools. Often times families decide what schools they want their children to attend before thinking about anything else! Especially for families with children, the school district often dictates where they buy a house, and what type of lifestyle they will have.

Here are some statistics regarding the best public high schools in Charlotte, according to test scores, attendance, diversity, teacher education, class size, etc.:

Providence High School

Ardrey Kell High School

Myers Park High School

Click here to compare other schools in Charlotte/Mecklenburg County.

The Buying Process

2010-06-09T06:20:00.000-07:00

Whether you are purchasing your first home or your 50th, finding a new home is a very exciting time! There are a few steps that I can guide you through to ease any anxiety you may have, and make the whole process easy and fun!

First, you need to talk to a mortgage consultant to determine what you can afford. There are two general ways of doing this:

Pre-Qualification: This is an informal discussion between you and a mortgage lender. The lender will estimate what you can afford solely by what you tell them about your current and past financial history, including all income and assets. Keep in mind that this is just and estimate, and may or may not be the loan amount you will be approved for in the end. Nevertheless, it is a good starting point, and gives you and your Realtor an idea of where to begin the search.

Pre-Approval: This is a more accurate way to determine how much you can afford to spend on a home. Getting pre-approved means that the lender requests and verifies specific financial information in order to receive a commitment letter. Getting pre-approved is a good way to show sellers that you are serious about purchasing their home.

After you have a better idea of what price range you will be working with, it's important to be aware of the other costs associated with buying a home. The actual search for a home should be of little or no cost to you. However, after putting in your first offer on a home, the buyer pays for any inspections that he or she would like. Most buyers request that their agent set up a general home inspection, which covers big mechanical and structural items that may be in need of repair. Some buyers also choose to have termite inspections and radon tests, although these are not always necessary. Some lenders require that these tests be done before granting the loan. After the inspections are done and paid for, the only other costs to the buyer are closing costs.

Closing costs are the costs associated with buying a closing a home. Closing costs vary with each transaction, but you can typically expect them to be about 2-5% of the sales price of the property. Here are a few of the common fees associated with closing:

Loan Origination Fee: This is a fee paid to the lender to cover specific activities performed by them such as pulling your credit report, preparing loan documents, processing your application, etc. This fee is the most expensive fee, and generally costs somewhere between .5 and 2 percent.

Closing Fee: This covers the cost of handling all the purchase-related documents and funds.

Homeowners Insurance: All lenders today require that a homebuyer have Homeowners Insurance coverage. Typically the first year's premium is due at time of closing.

Title Insurance: Most lenders require title insurance on a property. This is a small fee, and is associated with a title search, that makes sure you have clear, marketable title to the property. This will protect you and the lender from the possibility that the seller does not legally own the home.

Property Taxes: A portion of the prorated property taxes for the year must be paid at closing. If the seller has already paid in advance, the buyer will reimburse the seller.

Private Mortgage Insurance: This is often required by lenders when the buyer puts less than 20% of the purchase price as a down payment. This protects the lender in the event that the buyer defaults on payment.

Prepaid Interest on the Loan: Lenders charge up to 30 days interest on a loan to cover the interest that accrues from the date your loan is funded (usually one business day before the closing) up to 30 days prior to your first regularly scheduled loan payment.

Recording Fee: This a fee to record the deed (usually $50).

Now that you have a better idea of where the buying process begins and what to expect, it's time to begin the search!

For many people, this simply means looking at specific homes on the Internet and going in after the agent makes the appointments; however, for others, especially those who may be new to Charlotte, the search may begin by looking at a map and deciding which areas would be the most convenient to work, schools, etc. No matter where you start your search, it is always important to be as specific as possible when it comes to what you are looking for in a home, neighborhood, and lifestyle.

Once you have found a home that seems to be a good fit, it's time to sign the Offer to Purchase. Your Realtor will be able to help you decide the offering price and terms. When you are serious about purchasing a specific home, it is common to put down an earnest money deposit, which is essentially a good faith gesture to let the seller know that you are serious. This is not required, but is typically around $2,000.

After negotiations are done, the next step is to order inspections and an appraisal, and move on with closing!

New Listing in Dilworth!

2010-06-07T15:03:00.000-07:00

Welcome to 609 Berkley Avenue!

Click here for property information

First Time Home Buyers

2010-05-24T10:17:00.000-07:00

Buying your first home can certainly be a stressful process. There are so many things that must be taken into consideration-- price, location, condition, potential resale value, new construction vs. existing homes, financing, amenities, proximity to work, schools, shopping, restaurants, nightlife, and more!

Now, I know many people have heard on the news and from friends, family, and people in the real estate business that now is the right time to buy... well they are right! Never in the history of the United States have interest rates been this low. I know this doesn't mean much to some people, but realistically it is just as important, if not more important, to pay attention to interest rates when buying a home as it is to the actual list price of the home.

Why?

If interest rates rise a quarter of a percentage point, that would mean you will be paying around $6,000 more on a $100,000 loan throughout the life of the loan. So if you have a loan amount of $200,000, if you wait until the interest rates go up .25%, you could be paying $12,000 or more than if you got locked into a lower rate! Inventory is high, prices are low, and the sellers who keep their homes on the market are motivated!

I included some pictures of the move from my previous home (for comic relief and personal effect). Moving is really not so bad- it's actually pretty exciting!

NASCAR Hall of Fame is Officially Open!

2010-05-24T09:23:00.000-07:00

The brand new 150,000 square foot NASCAR Hall of Fame was officially opened yesterday afternoon in Uptown Charlotte. Bill France Sr., the legendary founder of NASCAR and his son, Bill France Jr., were both part of the first class to be inducted into the Hall of Fame. Richard Petty, Junior Johnson, and Dale Earnhardt Sr. were the other three who were inducted into this year's class.

Charlotte is proud to be the home of the Nascar Hall of Fame and Charlotte Motor Speedway. The motor sports industry is a very important part of the state of North Carolina both culturally and economically. It brings in an estimated $6 billion in revenue statewide and accounts for around 27,000 jobs. The Hall of Fame itself is expected to generate about $60 million annually. As Governor Bev Perdue says: “When people think of NASCAR, they think of North Carolina.”

Read more: It's official: NASCAR Hall of Fame opens in Charlotte - Charlotte Business Journal

You're Invited!

2010-05-20T15:55:00.000-07:00

I am hosting an open house this Sunday in The Yachtsman on Lake Wylie. Feel free to drop by anytime between 2 and 4!

Click here for property information.

Relocating to Charlotte?

2010-05-20T14:35:00.000-07:00

"Home Prices Projected to Begin Rebound in 2011"

2010-05-19T13:34:00.000-07:00

An article from today's Wall Street Journal states that home prices are expected to rise beginning in the first quarter of 2011. A survey of 92 economists and market analysts gave their predictions of the future of the housing market.

The article states that, "Joseph LaVorgna, an economist at Deutsche Bank, sees home prices rising 37% by the end of 2014." This seems a little high, and contradicts the opinions of GMU Real Estate Finance professor Anthony Saunders and Gary Schilling of A. Gary Schilling & Co, who both predict a decline of about 18%. They all go on to give their individual reasonings. Mr. Robert Schiller (of The Case-Shiller Price Index) chose not to respond to the survey; however, he did say that a prediction of a 12% price increase seemed plausible.

Click here to read the full article.

The reason I posted this article was to reinforce that no one knows exactly what will happen to home values and prices in the next few years. Mr. Tate told us this morning that over 23,000 homes are going to be sold in Mecklenburg County in the next year. Regardless of what happens with the slew of distressed properties, increasing interest rates, etc., homes will still be bought and sold, and Charlotte will still be a great place to live!

Historic Wesley Heights

2010-05-18T09:15:00.000-07:00

For those of you who haven't had the opportunity to visit Wesley Heights, a small collection of historic bungalow homes on Charlotte's westside, you should consider checking it out! Unlike some surrounding neighborhoods, Wesley Heights still maintains the original charm and character from when it was first developed as a streetcar suburb in the 1920s. Some consider the neighborhood to be in transition, and could potentially be the city's next Plaza Midwood. Prices are still affordable there (for the most part), and the proximity to Uptown is unbeatable! Also, because it is located in one of Charlotte's 5 designated Historic Districts, homeowners pay reduced taxes!

The four main roads in Wesley Heights are Woodruff, Walnut, Grandin and Summit. The community is surrounded by some older neighborhoods that haven't been maintained as well as Wesley Heights, and also some newer upscale bungalow homes and townhomes (Lela Court), a new apartment complex, etc. It is also located less than a mile from the Charlotte School of Law, as well as Frazier Park, Johnson C. Smith University, and Johnson & Wales University. It may be a place to keep an eye on for the future.

Open Kitchen- A Charlotte Landmark and Local Hotspot

Market Update:

11 Active Single Family Homes ranging from $159,900 to $289,000

5 Sold Single Family Homes since 1/1/2010 ranging from $122,000 to $280,000

2 Pending Single Family Homes since 1/1/2010 for $305,000 and $315,000

28 Active Condos/Townhomes ranging from $99,000 to $450,000

1 Pending Townhome since 1/1/2010 priced at $224,900

Click here to view the current inventory!

The Selling Process

2010-05-17T09:54:00.000-07:00

When selling a home, there are many things that need to be taken into consideration before putting it on the market! I think it is very important to set realistic expectations up front to ensure that everyone has a good understanding of exactly what it will take to get the home sold as quickly and efficiently as possible, while getting the maximum value.

The 3 main reasons why a house sells are: price, condition, and location. Of these three, location can not be changed. Condition can be changed in some cases, but pricing can almost always be changed.

Pricing is one of the first steps of the selling process.

In order to place a value on a home, I will need to visit the home, measure it, and note any details that may contribute to its market value. After this I will prepare a Comparative Market Analysis by taking characteristics of the subject home and comparing them to similar homes in the neighborhood. From this, we arrive at a price range where your home will fall. Depending on how quickly you want to sell your home, and what the closest competition is that's already on the market, I will make a recommendation for the price.

Here are a few reasons why I think getting the right price set up front is important:

1. A property attracts the most interest and excitement from the real estate community and potential buyers when it is first listed. Therefore, your greatest chance of selling it is in the initial time it is on the market. If the price is set too high, buyers will often overlook the property and move on to the next one.
2. After the home sits on the market for a while with little or no activity, the home becomes market worn in the eyes of buyers.
3. Having your home on the market means having it clean and prepared for showings. The longer it sits on the market, the longer you will be responsible for having it in good condition!

Click Here to request a free CMA for your property.

After agreeing on and establishing a reasonable, competitive, and compelling price it's time to decide what needs to be done in order to get the home ready for showing! I am happy to provide a checklist of suggestions that will get your house ready. This mainly consists of de-cluttering, de-personalizing, and cleaning so your home sparkles when buyers walk through!

Two things that are very important for me to share with you are my marketing plan and communication plan. I create a marketing plan that is tailored to each seller and his or her property. This detailed plan outlines exactly what I will do to market your home, and get you the maximum value for it. This includes, but is not limited to: online advertising, print advertising, open houses, flyers/brochures, marketing to other realtors/offices, etc.

In December of 2009, the National Association of Realtors released its 2009 Profile of Home Buyers and Sellers, which reported that 90% of buyers used the Internet to search for homes. This number has consistently risen throughout the past few years. What this means for you as a seller is that it is critical for your home to have an Internet presence. When I market your home on the Internet, it will be placed on over 5,000 websites!

Social Media Marketing:

Facebook

Craigslist

Featured on my Blog

I can design and create a custom website for the property with a link to it on the sign rider. Click here to see an example.

Information sheets are left in the house for showings, and personally given to over 150 Realtors that I network with

If your property is located in an easily accessible and high traffic area, open houses are often a good way to get your home exposed to potential buyers:

Postcards sent out in geographical sphere

After reviewing my marketing plan, I will also present to you a communication plan that outlines when and how often I will communicate with you to let you know how the selling process is going. If your home is not getting the amount of attention you would like from potential buyers, I will reevaluate the market to see if anything has sold, been reduced in price, etc. I know it is important for you to be constantly informed throughout the process, so I will make it a point to communicate with you as often as you would like.

Before listing a home, I think it is important that the seller be aware of any and all possible costs associated with selling. I will review a net sheet with the seller that will estimate the net proceeds he or she will receive from selling the home. This is a rough estimate of the sales price less closing costs, commissions, and other expenses to be received at closing.

After reaching a decision regarding price and marketing, it's time to sign the Listing Agreement and other listing paperwork. At this time, you can also decide if you want to purchase a Home Trust Warranty, participate in the Job Loss Protection Program, and provide a schedule for available times to show your home.

Click here for a Complete Seller's Guide.

For anything else you want to know:

Dilworth: Rich in History, Architecture, and Design

2010-05-16T14:12:00.000-07:00

One of my favorite neighborhoods in Charlotte is Dilworth. For those of you who are unfamiliar with the area, here is a quick history lesson. Dilworth was created in the 1890s by Edward Dilworth Latta as the first suburb of Charlotte. The city of Charlotte began in what is now called Uptown or Center City and moved south. Dilworth, a community just south of Uptown, was the hot spot back in the day. The trolley line stretched from Uptown into Dilworth so that people could work Uptown but live in a more family friendly environment.

Dilworth is still very popular among those who work Uptown because of it's convenience to Center City (less than a mile!), as well as the charm and character that it has maintained over the years.

When you drive through Dilworth, you will notice a lot of similar architecture. I would say its biggest trademark is the plethora of Craftsman style bungalows. These bungalows (as pictured below) were first created around 1905 by Greene and Greene, architects from California, but their popular design quickly spread throughout the country. Most of the original bungalows in Dilworth were built toward the end of the bungalow fad in the 1920s and 30s. Scattered among these classic bungalows you will find other architectural styles- prairie homes, grand Victorians, stately colonial revivals, and more modern homes.

Whether you prefer the charm of old historic homes or a more modern style with newer construction, Dilworth has something to offer everyone. There are single family homes, duplexes, apartments, condos and townhomes. It also has a mix of funky shops, restaurants, bars, coffee shops, parks, and it is located in a great school district. What more could you ask for?

For more information, visit the Dilworth community website here.

Charlotte: The Queen City

2010-05-12T08:36:00.000-07:00

Have you ever wondered why Charlotte is often referred to as the Queen City?

If so, here's a brief history lesson for you. Just before 1768, the year Charlotte officially became incorporated, the General Assembly and Royal Governor William Tryon decided to name the city Charlotte after King George III of England's wife, Charlotte, who was from Mecklenburg, Germany. The name has stuck ever since- what a lucky lady.

To go along with the theme of queens and crowns, the Bank of America Corporate Center, the tallest building in Charlotte (and in North Carolina), has a crown on top. Coincidence?

Here is a cool video by Rob Carter portraying the growth of Charlotte (the last 3 minutes).

Metropolis by Rob Carter - Last 3 minutes from Rob Carter on Vimeo.

To see the full 9 minute video, click here.

Home Sales in Charlotte Rise 25%!

2010-05-11T10:43:00.000-07:00

An article in today's Charlotte Business Journal states that home sales in Charlotte have jumped 25%... up from this time last year.

Click here to read the article

While this is definitely good news for our city, we have to consider all sides of the story. Yes, sales prices in the last quarter of 2009 went up; however, this is in comparison to 2008- about a year into the economic recession.

The good news is that sales are moving in the right direction! The bad news is... we still are in economic hardship, which means we need to choose our investments wisely!

Here is a part of a local real estate report for Mecklenburg County.

The small print under Labor Market reads:

In the first two months of the fourth quarter, 2,584 jobs were added to the payrolls of Mecklenburg County. As a result of these new jobs, the average monthly unemployment rate fell from 11.3% during the third quarter to 11.1% for October and November. This steady job creation may help to maintain demand for home purchases. Favorable mortgage rates should support this trend.

If you look at the forecast for Quarter One of 2010, they are predicting a decrease in average home price, increase of number of homes on the market, decrease in number of homes sold, increase in new homes built, and slight increase in average days on market.

This goes along with what I wrote in a previous post. There will be an increase in supply and a slight decrease or stablization in demand, thereby decreasing prices. Also, we can see that on a scale of 1-5, Mecklenburg County rates a 2-- keeping it a buyer's market. On another positive note, interest rates are still right around 5%!

If you're interested in seeing stats for other surrounding counties, send me an email and I'd be happy to share them with you!

Elizabeth Avenue Redevelopment Plan

2010-05-10T07:41:00.000-07:00

If you have driven around just south of Uptown and towards Elizabeth, you have probably seen construction on Elizabeth Avenue. Plans to revitalize historic Elizabeth Avenue linking Uptown and Elizabeth are underway and there are some exciting changes ahead!

There will be a mix of restaurants, bars, shops, townhomes/condos, a hotel, movie theater, and more! A few of these places are already up and running-- Loft 1523, Carpe Diem, NOFO, Elizabeth Creamery, Nothing But Noodles, and the Visulite Theatre, to name a few.

Elizabeth Avenue is perfectly situated on the outskirts of Uptown, in between CPCC and Presbyterian Hospital, just minutes away from some of Charlotte's most coveted neighborhoods and Independence Park. One of my favorite parts of this new project is the streetcar system. According to the Charlotte Area Transit System, the proposed $14.5M project will contain a 10-mile long streetcar system running along Beatties Ford Rd. near I-85, through Uptown, Elizabeth Avenue, Central Avenue, and all the way into East Charlotte. Similar to the LYNX/light rail system linking Uptown with various locations along South Blvd., this new system will surely bring convenience to those living in the area.

Click here for the official Elizabeth Avenue website.

Thoughts about the Current Market

2010-05-04T11:29:00.001-07:00

Well the time has finally come. The April 30th deadline for the First Time Home Buyer Tax Credit has passed, and we aren't hearing anything about another extension.

So now what?

I have been hearing a lot of hesitations, expectations, and predictions about what will happen next, but the truth is... no one knows for sure. Assuming that the government provides no further incentives to stimulate the housing market, we can think about the future of the market in terms of supply and demand. The government implemented two stimulus programs (tax credit(s) and buying of Mortgage Backed Securities) in order to increase demand, which would in turn decrease the supply of homes on the market (at least temporarily), thus boosting the housing market.

These government programs did boost demand; however, now that the incentives are gone the demand for housing will remain neutral (mostly due to the continuation of lower interest rates). Now that Spring is here and inventory is higher than it has been in several months (even years in some places), we are seeing an increase in the supply of homes on the market.

SO... if my years of taking Economics in college serve me correctly, if the demand remains the same and supply increases, the ultimate conclusion is that prices will be forced to go down.

What this may mean for sellers: Try to sell sooner rather than later.

What this may mean for buyers: If you don't find the perfect house right now, it may be good to wait. However, always keep abreast of the interest rates-- the smallest increase can make a BIG difference!

A few weeks ago I randomly decided to start asking consumers what they thought about the immediate future of the housing market (after the expiration of the tax credits and the hault of the MBS buying). I talked to one couple at an open house that I hosted, and thought they had an interesting take on the matter.

These people were rather picky- who knew that the paint color in one room would stop someone from buying a house? Well, except for those who watch HGTV religiously. Anyway, they admittedly were so picky that after seeing multitudes of houses, they still hadn't found 'the one.' They explained to me that they qualified for the First Time Home Buyer Tax Credit; however, if they hadn't found the perfect house by April 30th, they wouldn't sweat it. This was interesting to me because I have come across people who wouldn't have bought a home if it weren't for the incentives, yet there are also people out there who are more concerned with finding the perfect house than getting $8,000 from Mr. Obama and a 5% interest rate. Housing is something that everyone needs, and the demand will always be there- whether we have government incentives to boost it or not. Even back in 1981 when interest rates reached a whopping 18%, people were still investing in a place to call home.

In conclusion, I think the future of the market in Charlotte is bright. With the glut of short sales and foreclosures, changes in lending practices, etc., we, as Realtors, are learning things that we didn't have to know a few years ago to be successful in real estate. In addition, the recent market has driven prices down to what might now be considered closer to the true value of the homes rather than a falsely appreciated valuation. Real estate has and always will be cyclical in nature. We have certainly seen tough times, but as Mr. Tate says, "We are never too old or too wise to see something in a new light… The future’s so bright, I have to wear shades."

Realtors Care Day 2010

2010-05-02T16:41:00.001-07:00

Realtors Care Day this year was a huge success! Realtors from all over Charlotte got together to help fix up houses so they are safer and cleaner for families who have physical or financial difficulty maintaining their homes.

Before (7:30 a.m.):

Tired arms and a little poison ivy later (3:30 p.m.):

Hopefully I will have an after photo soon. Miss Perry was so happy to have a freshly painted house (on 3 sides), back deck, cleaned gutters and roof, and landscaping. It took 15 of us about 8 hours to complete everything. We had so much fun and it was well worth the poison ivy I am currently rocking on my legs and arms. I can't wait for next year!

Charlotte Mecklenburg Schools

2010-04-29T11:56:00.000-07:00

We all know that when investing in a home, the school district is important! Even if you don't have children or don't plan on having them, it's always a good idea to check out the school district before purchasing a home. This can have an impact when you go to sell your home in the future! Here is a website with helpful information on schools in Mecklenburg County (other counties are also available).

http://www.ncreportcards.org/src/

Location, Location, Location!

2010-04-29T09:46:00.000-07:00

I know we have all heard this mantra a thousand times, but there is a good reason for that. When looking to purchase real estate, whether as a primary residence, investment/rental property, or a vacation home, location is key. It's important to make sure that the location of the property is not only desirable right now, but that it also will be 5, 10, 30, and 50 years down the road.

Here are a few things to look for:

-School district
-Proximity to recreational activities: country clubs, tennis courts, pools, hiking trails, parks, etc.
-Proximity to shopping, entertainment & dining
-Economically stable community
-Access to public transportation & highways, access to airport
-Close to health care, emergency services
-View- city, lake, ocean, river...

Also pay attention to...

-Properties near industrial & commercial areas- power plants, water towers, gas stations, etc.
-Public transportation (if it's in your backyard!)- railroad tracks, airports, bus stops
-Economically stressed areas- near homes that are not properly maintained

These are just a few things to take into consideration when shopping for a new home.

Price and location certainly correlate- in Charlotte and in every other market!

Here is an example of what you can buy in different locations in Charlotte (assuming a budget of around $400,000). Note: All of these properties are in desirable locations. Where you decide to buy will depend on a number of factors including proximity to work and how far you are willing to commute, and your willingness to drive to get to schools, shopping, dining, entertainment, etc.

4,000 square feet; 4 BR, 3.5 Baths for $399,000 in Union County (South of Charlotte)

800 square feet; 1 BR, 1.5 Baths for $399,900 in The Vue- Condominium Complex in Uptown Charlotte

1,440 square feet; 2 BR, 1.5 Baths in Dilworth- Just sold for $405,000, was on the market for $450,000

6,000 square feet; 6 BR, 4.5 Baths at Riverpointe (Lake Wylie) for $399,999

4,000 square feet; 5 BR, 3.5 Baths in Matthews (Union County) for $399,900

FHA Financing

2010-04-28T09:35:00.000-07:00

FHA financing has recently become one of the most popular ways to finance a home. Here are a few facts about FHA financing that may be of interest to you!

- FHA stands for Federal Housing Administration. This is also known as HUD, which stands for the Department of Housing & Urban Development. FHA loans are Government loans.

- FHA self insures loans so that lenders face less risk, which encourages lender flexibility in loan approval and underwriting. This results in better rates and more choices for borrowers.

- Benefits: LOW downpayment ( only 3.5%! ), non-occupant co-borrower is permitted, expanded qualifying ratios, no prepayment penalties, fully assumable.

- A minimum credit score of 620 is required.

- Seller concessions up to 6% of the sales price towards borrower's financing costs are permitted.

- Gift funds for the down payment are allowed from family members or employers.

- No income limitations.

- In Charlotte MSA (Mecklenburg, Anson, Union, Gaston, and Cabarrus Counties), the loan limit is $303,750.

- The borrower must be an owner-occupant of the property. They may have non-occupying co-borrower or co-signers (with limitations). They must be legally able to work in the US and have a valid SSN. Borrowers may only have one FHA insured mortgage.

- Self-employed (W-2) borrowers must have at least 2 years of proved income before getting an FHA loan.

- When purchasing a condominium, the complex must be approved before allowing FHA financing. In order for a condominium project be become FHA approved, at least 50% of the units must be owner-occupied (not rented), and no more than 30% of the units can be insured by FHA. This means that when shopping for a condo, make sure FHA financing is allowed!!

For more information, please visit www.FHAtoday.com or contact a mortgage consultant here.

Price vs. Cost

2010-04-28T08:08:00.000-07:00

When educating home buyers, it is important to note the difference between price and cost. I think many people believe that these two terms are synonymous, when in fact they represent very different things.
Price is the actual dollar amount that is negotiated in a real estate transaction. It should be, but may or may not be, an indication of what the home is actually worth in todays market.
Cost is the price combined with what a buyer's monthly mortgage payment will be.
To put this in perspective, you can buy a house today for the same PRICE as you could have 7 years ago, but it will actually COST you less. This is because of the current interest rates on a mortgage, which are at a historic low.

Here's an example:
Interest rates in 2003 were around 6.26%, whereas today they are hovering right around 5%.
This chart, courtesy of Steve Harney, shows the difference in mortgage payments per month. This equates to a savings of $1,747.32 per year, and $52,419.60 over the life of the 30 year loan.
I would calculate the savings you would accumulate from buying now versus back in the early 80s when interest rates were 15-18%, but I will spare all of you who bought back then the details!
The moral of the story is that if you are one of those people who for whatever reason couldn't make it under contract in time to take advantage of the tax credit, at least try to buy before interest rates go up! They are not expected to rise as quickly as predicted, but they will inevitably go up as the economy changes.