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By lawrence, August 6, 2010 2:01 pm

Great article in Bloomberg Businessweek about home values increasing by 2014.  In some areas 30-40% increases are predicted.  Charlotte (predicted to see the most growth of any market in the state) is forecast to be up by 13%.  Any amount of gain would be welcome news  in light of the market’s recent decline.   If these growth statistics are true then a home purchased in Charlotte for $200,000 today would be worth $226,000 in 4 years. Check out the article … (http://images.businessweek.com/ss/10/08/0803_strongest_housing_markets/34.htm)

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By lawrence, July 30, 2010 6:21 pm

Charlotte, NC is rated #2 on Kiplinger’s list of 10 Great Cities For Young Adults! See why by reading the article in the link below…

http://realestate.yahoo.com/promo/10-great-cities-for-young-adults.html

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By lawrence, July 15, 2010 4:12 pm

In today’s real estate market, not only can a buyer take advantage of interest rates at 50 year lows, but in some cases they then can save thousands of dollars off of market value by purchasing a distressed property. A distressed property can be defined as, among other things, a foreclosure, a short sale, a bank owned home (REO), an estate sale, or a bankruptcy sale. Whether it be for a primary residence, an investment property, or a second home, distressed properties have become a hot search trend for today’s savvy home buyer.

Here are six questions that buyers in any market should be asking before they make an offer on a distressed property for sale.

Is now a good time to buy a distressed property?

Because market conditions are local (differ not only town to town but neighborhood to neighborhood), this is an important question for a buyer to ask. Sometimes it’s not the right time to buy a distressed property in a particular area.

What’s the first step buyers need to take?

As with any home purchase, your first step should be get yourself pre-approved for a mortgage. Remember that if this is a second home or investment property, the lender will not only (typically) be charging you a higher than normal interest rate but will also require a larger down payment.

How can you tell a bad distressed property from a good one?

Certainly there are great deals in many markets for both investors and buyers looking for a primary residence. Buying a distress sale isn’t always easy nor is it black and white. Buyers need to be wary of unpaid liens, including mortgage debt, taxes, construction loans, home equity lines of credit, and possibly a second or third mortgage. Any or all of these financial obligations could become your responsibility when you purchase a distressed property. Unless the property goes through a foreclosure auction and becomes a bank-owned REO, the outstanding foreclosure liens and fees could be simply transferred to the new owner—you. Don’t fall into the same financial trap as the previous owner. This is one of the many reasons that having the guidance of a real estate professional is so important.

If I’m a qualifying borrower, can I appeal to banks for better loan terms?

Because lenders are flooded with defaulting mortgages (especially in some of the harder hit real estate markets) you will often times see REO properties offering BELOW MARKET FINANCING to qualified buyers. Just like any mortgage your interest rate and downpayment will be determined based on your credit score and debt to income ratios. The benefit here is that you don’t have to buy this rate down with points, meaning this doesn’t cost anything in fees, and it gives you the ability to spend more for a home.

What are the costs of buying a distressed property?

It takes money to make money. The best opportunities are for buyers with cash. If you are planning to rent out the property or even resell it for a quick profit, make sure to consider the carrying costs, including sales commissions, marketing costs, vacancies, taxes, insurance, and maintenance costs. Once you’ve calculated all the expenses, add on another 10 percent to 15 percent. If you don’t build in a “surprise fund,” you might be the next foreclosure statistic.

How does choice of neighborhood affect your investments?

Buyers looking for a good investment should generally avoid neighborhoods overrun with foreclosures and/or short sales, particularly newer subdivisions in overbuilt areas. Investors will be tempted to buy foreclosures in these areas because they offer the steepest discounts—but they also carry the most risk of further depreciation. Look in well established neighborhoods with good schools and transportation. If you’re in a market where prices are still falling, be sure to factor falling prices into any offer that you submit on a distressed property.

These are just a few questions and a few brief answers that can be helpful when purchasing a distressed property. It is EXTREMELY important to seek the guidance, knowledge, and experience of your Realtor (The Mahool Nance Team) in order to best navigate ANY purchase transaction but especially one involving a distressed property. Going about this process on your own could result in costly mistakes. Trust your agent!

As always, if you or anyone that you know is in the market to buy or sell real estate, please have them contact us or pass along their contact information so that we can offer our services!

WE APPRECIATE YOUR SUPPORT!

Source: James J. Saccacio is chief executive officer of RealtyTrac, a Web site that tracks properties in foreclosure.

www.CharlotteRealEstateNC.com

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By lawrence, April 20, 2010 8:08 pm

IN ORDER TO BE ELIGIBLE FOR ANY OF THE AVAILABLE HOME BUYER TAX CREDITS, A HOME BUYER MUST BE UNDER CONTRACT NO LATER THAN APRIL 30, 2010!

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress passed legislation that:
•Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
•Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

………

Are you wanting to purchase a home this year, even this month, and would be eligible to qualify for one of the tax credits but for some reason that is entirely personal to your situation, you just can’t go under contract by the April 30th deadline BUT you’d be close?? We just might have an answer for you. The answer is an OPTION FEE. Here is how it works….

1. You make a seller an offer on their house and it’s agreed to and signed off on prior to April 30th.
2. The offer contains a clause called an OPTION FEE and an OPTION DATE. The option fee is any amount of money that is agreeable between the buyer and the seller and the OPTION DATE is a date that terminates the OPTION. The OPTION DATE is negotiable as well.
3. The OPTION = the OPTION to walk away from the contract for ANY reason or no reason at all with zero penalty (except for the OPTION FEE).
4. If you decide to proceed with the purchase of the home after the expiration of the OPTION DATE, then you are credited at closing in the amount that you paid the seller in the OPTION FEE.
5. If you decide to walk away from the deal prior to the expiration of the OPTION DATE then by simply delivering written notice to the seller you are free to walk away, not bound to the contract, and the seller gets to keep your OPTION FEE.

As an example, the OPTION FEE could be $500 for 10 days or $1,000.00 for 20 days, etc., etc… You write the check to the seller the day that they accept the offer and the seller can cash the check that day and the money is theirs to keep. You’ve just bought yourself some time. If you don’t walk away then the money that you paid the seller is given back to you as a credit at closing. If you walk away during the prescribed time period, the seller gets paid for their time.

If you think that this might be an option for you, please let us know and we’ll be happy to discuss it further.

AS ALWAYS, IF YOU KNOW ANYONE THINKING OF BUYING OR SELLING A HOME IN THE NEAR FUTURE, PLEASE HAVE THEM CONTACT US. YOUR REFERRALS KEEP US IN BUSINESS AND WE APPRECIATE YOU TREMENDOUSLY!

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By lawrence, April 13, 2010 3:32 pm

Thank you tax credits!   It feels great to be busy.  We’ve seen a serious increase in the number of buyers that we’re working with, the number of showings on our listings, and the amount of overall inquiries that we’re receiving for all things real estate related.  Is this temporary?  Is this only due to the tax credits?  I think that part of this boost in activity is certainly a direct result of the first time home buyer tax credit but I also think that consumer confidence is helping our market.  I was nervous that the tax credits would drive the Spring market and then we’d just be absolutely dead in the water.  I’m not thinking that anymore.   Of the 10-12 buyers that we’re currently working with only about 1/3 are tax credit buyers, the rest aren’t.  They simply want to buy a new home.  Or a second home.  Another great sign is that the Jumbo market seems to be making it’s way back as well.  We’re working with several clients in the Jumbo loan price range and those loans, while still requiring huge down payments (unless you’re a Doctor apparently), are seeing some activity.  This is great news for all of us.  Not just us Realtors, but for the economy in general.  Let’s all keep our fingers crossed that this continues!