Archive for Selling
With more and more Americans facing the prospect of declining home values and unemployment levels not seen in quite some time, many homeowners and their lenders are facing the situation where the home is worth less than owed. This is no problem if the owner doesn’t have to move and can afford their current payment. If the owner is forced to sell for whatever reason, then the possibility of a short sale becomes a very real option.
What is a short sale? A short sale is an option you have before you reach the point of
“I wish I would have bought when the market was low.”
The article below sums up where the real estate market is today and makes the case for buyers to take advantage while the getting is good.
I am constantly asked what I think the Charlotte real estate market is going to do tomorrow
Earlier this month, the Charlotte Business Journal reported on The Home Builders Association of Charlotte and their actions objecting to the economic stimulus package being proposed by President Obama:
Preconceived notions.
One of the most paralyzing conditions that we, as Realtors®, have to deal with every day. We must be out to make a quick buck. The lowest of the low. Scum of the earth. How can we live with ourselves? How dare we charge a fee for standing around looking pretty while someone chooses a home to buy! I can sign those forms myself without your help, thank you very much.
We understand your feelings
We have a special guest blogger today - Bill Saint, CFO and Director, Simonini Builders, Inc. Bill recently spoke at several Realtor® seminars. This is a followup to the Charlotte, North Carolina real estate market.
At our Realtor® seminars this fall, I promised to share the updated Case Shiller numbers which came out last week, for data through August.
Way to go Charlotte! We are 2nd from the lowest in price decline, reporting an overall 2.8% decline during the past 12 months. Dallas, at 2.7%, was the lowest; with Phoenix the highest at a 30.7% decline.
Here is the updated Case Shiller report.
We’ve been delighted to meet with many firms this fall to provide an update on home design trends we’ve found across the country and what is asked for by our buyers. Additionally, we have an update on the overall Charlotte real estate market and tools to assist your resale buyers and new home buyers. I’m delighted with the feedback from many Realtors that these tools are being used to help make sales! Great news!
In today’s market the value of a good Real Estate Agent is even more apparent as we struggle with the demands of finding that right buyer in order to sell your home for top dollar - let alone sell it at all. A recent article in The Charlotte Observer “Real Estate Today” talks about why the owner of a home hasn’t been able to sell his home. This is an exceptional article that deals with the very frustration we, as REALTORS, deal with day in and day out! This particular seller has had his home on the market since 2005. Sure the market was better then than now. However real estate is and always will be localized in how it performs. With in a week or two after placing his home on the market an offer came in. It was for 5.7% less than asking price. The owner turned down the offer convinced that they could do better. Of course they did because SELLERS KNOW IT ALL!
The seller, a house painter, knows more about selling their home than that of an experienced professional. OF COURSE HE DOES BECAUSE SELLERS KNOW IT ALL! Lets assume that their carrying cost for their mortgage is a mere $1500 per month. That equates to $54,000 of payments for this period vs. taking the offer that was $30,000 less than the asking price.
Here are some things to remember:
1. Real Estate is no longer recession proof.
2. Greed, not intelligence, is often the factor for loosing a qualified buyer.
3. Good realtors® fire their sellers when they don’t listen to them.
4. The seller may set the asking price but the MARKET SETS THE VALUE. This one bears repeating - the seller may set the asking price, but the market sets the value!
I’d like to hear your opinion on this or any related topic.
Why are Newspapers Dying?
A recent front page article in The Charlotte Observer Real Estate section on September 14th entitled “Key to Closing” was loaded with inaccuracies for the state it was printed in. The article was a authored by Susan Diesenhouse at the Chicago Tribune.
As a Real Estate professional I was shocked to see how many statements were incorrect with regards to the common practices in the state of North Carolina. Is the Charlotte market starving for worthy articles that The Observer has to go outside of it’s local area to find content? Who checks for the accuracy or do they just slap it in?
Let me give you some examples as written:
About A Month Before closing - “The buyers lawyer can review the available documents such as title insurance policy and final survey.” I have never in my 18+ years in real estate seen a final survey 1month prior to closing.
Two Weeks in Advance - “Advisable to set up a tax reproration escrow account where the buyer and the seller deposit their share of the currents year’s taxes.” That doesn’t exist in North Carolina!
Two Days Before Closing - “Do a final walk through with a licensed home inspector, the seller or their agent so they can agree to fix any problems found.” In the Charlotte area, the time to do an inspection is not two days before closing. Usually the inspection is done 3-4 weeks before closing to identify any deficiencies, submit those items requested for repair and then conduct a final walk through the day before or the day of closing to insure that the items which have been agreed upon to be fixed have in fact been fixed.
A Day Before closing - “Usually the lenders appraiser will walk through to assure that the unit is substantially complete”. Who would close on a home that is “substantially complete”? My clients will be told to not close on the home and then it will be up to my clients to accept the home in it’s present condition or not.
Closing - “. . . with the process complete . . . Take the house keys.” According to what I have been educated to by the closing attorneys, keys are in almost all cases not given until the deed is recorded. Funds don’t disburse to the parties, including commissions to the agents, until the deed is recorded.
Picture yourself a first time buyer or an experienced buyer moving to North Carolina. When in doubt contact your Realtor and your attorney to give you proper/accurate advice.
We also have a home closing checklist pertinent to the closing process as it happens in Charlotte North Carolina on our website.
When the real estate market slows down, and there are more sellers than buyers, homeowners can no longer dictate to the market what price their home will command.
It doesn’t matter how much you paid for your home, or how much money you have in it after improvemennts, or how much you need to net after the sale. The market determines the price, period!
If the figure that a homeowner is asking is way above market price then there will be little if any showings and no offers. As the asking price approaches market value, showings will increase as will the probability of an offer. However, the offers will be less than full price and show a trend.
If your home is priced close to market value you will have even more showings and an offer sooner. You can even price the property lower than the market and it will still show it’s influence with more than one offer and the sales price will be bid up to where the market is.
It drives me crazy that people seem to forget simple econ 101 when it comes to selling their home - and insist on making irrational decisions when setting an asking price.
What do you think? Am I full of it or am I just saying what needs to be said to an unrealistic public?
Would you place the single most expensive investment you’ll ever make into the hands of someone you may not know or trust?
Think about this for a moment; you’re asking for advice of the very person that has a financial gain yet you don’t know them. You want them to tell you it’s o.k. to make this purchase and your probability of showing a profit is strong. Is that correct? We continue to trust people in my very own industry without knowing what they’re about.
When you select a Realtor® to represent you, you had better make sure that your well being is at the top of their list. Here’s how you can do that:
Start by asking for and working with seasoned professionals that understand the industry, and have the agents define what it takes to be successful and what is their accessibility. Do they return calls after 5pm?
Get references and check them out. Does company ranking make a difference? You bet it does. Would you want to be seen by a doctor that practices part time or someone that really knows their craft?
From my entry into this career field 17 years ago I’ve always conducted my self in a way that places my clients first at times even before my family. My job is to protect my clients by telling them what not to buy. They’ll know what to buy when the time is right. I’m here to find them they best property at the best price in the best of locations. It sounds so simple that everyone tries to be in Real Estate but the reality is that only 10% are at the top.
I continue to do business the old fashioned way, I earn it one transaction at a time. If you have a real estate question you are welcome to look around my website and learn more about me and the rest of my great team.
Is it a buyers market or sellers market? The most often asked question is this a good time to buy or sell Real Estate in Charlotte North Carolina? That depends on who you are. As of May 08 we have 2386 sold in May with an average of 91 days on the market. I’d say that’s back to normal for this agent.
If I’m a seller I need to price my home aggressively. I need to know that there are other homes in Charlotte that are doing the same. I have to be well presented both inside and out so that when someone is looking for homes for sale in Charlotte they will see the very best. As the inventory begins to dwindle in Charlotte North Carolina it will quickly become evident that the market has swung to the seller.
Some sellers believe that many Realtors like a quick turn and therefore we price our homes too low. Well this Top Charlotte Agent believes that you have to price it correct and it will sell. The true market value of a home in Charlotte is set by the buyer and not anyone else. I want my clients to get the most for their home, in the lease amount of time and with the least amount of effort. I’ve been representing clients for 18 years in the greater Charlotte North Carolina area and I clearly understand the importance of pricing it right and presenting and marketing it well.
Our housing market reports page offers several market reports on various real estate areas of Charlotte.
Does anyone have any experiences both good and bad that they would like to share?