When Do You Schedule Your House Closing In Charlotte, NC?

When do you schedule to close your Real Estate transaction in Charlotte, NC. to close? Do you have specific times each month you prefer to close a house transaction? Specific times a day you rather close? Does your Realtor gives you options or just tells you when you are closing? As a Real Estate agent I was always told when I had a buyer financing a house that the closer to the end of the month you could close a transaction the better. The reason was simple. If you close a house on the 30th of the month the buyer pays one or two days interest (depending if there are 31 days in the month). Then they do not have a payment due until the beginning of the second month. By this I mean if you closed on January 30th your first payment would not be due until March 1st. Same as if you closed on April 30th your first payment would not be due until June 1st... and so on. So there was a huge benefit to waiting to close later in the month....It cost the buyer less money. Because if you closed on the 10th or 15th of the month you would have your first payment due the same time as if you closed on the 29th or 30th of the month except you would be paying more upfront for the interest from that date to the end of the month. Because when you make that payment you are actually paying for the previous month. In other words you are paying in the rears. but what if there is a delay in the closing? Let's say you always schedule your closings for the last days of the month and in the late afternoon so your buyers do not have to miss too much work. But something happened and you cannot close at that time or day do to a glitch with the mortgage lender or the seller or one of a hundred things that can and do go wrong with a closing. What do you do? Now the buyer has to wait to the next day or the next month to close.... Can they still close out in time for the month and what are they to do that night with their items? These are things that as buyers and sellers we do not think about but as Real Estate agents we deal with on a regular basis. Two things I like to do. One is schedule a closing with a couple of business days left in the month and make the closing for the morning. For one, this allows me some flexibility if there is glitch in the package at the last minute to still get it closed that day. If it cannot close that day I still have time to get it closed by the end of the month for my client. Because what if your lease is up at the end of the month and you do not make the close. is your Landlord or apartment complex going to let you stay for free or charge you a proration or a full month rent? It can cost you more by scheduling the closing alter in the month than sooner... I always inform my buyers that this is why i recommend closing on a certain day and time. it is up to them to make the decision that is best for them....But I believe as a Real Estate agent it is my responsibility to give them information to help them make a decision that is the best informed. I am shocked when most tell me that they never thought of that and no one explained that to them in their past transactions. So when you are buying a house and have to decide on when to close; choose carefully. The time and day can be deciding factors that can have an impact on your loan and time frame and ultimately the cost to you out of pocket... Dave diCecco Realtor/Broker Coldwell Banker United Cell:704-519-7895 ddicecco@cbunited.com www.davedicecco.com

How Long And How Much Money Should Due Diligence In North Carolina?

As we enter the spring market the question when i get an offer on one of my listings is the time period for the due diligence period. What is an acceptable timeline? In the past it did not matter as much as most sellers were excited to have an offer on their house. But as the market has shifted to a more balanced approach and showings are up as well as multiple offers; there is becoming a new normal as to what is acceptable for due diligence time and money. Last year I noticed that offers were written with the due diligence period in the Charlotte, NC. area running up to a day or two before closing to maybe a week before closing. But never more than a week before closing. In addition that was with acceptable terms on the closing date being in 30 to 45 days. Now, sellers are asking for that period to be shortened dramatically or they are asking the buyers to put up more money to extend the time. The due diligence period was a time when the seller takes the house off the market so that the buyer can perform their inspections, get the house appraised, and finalize the loan process paperwork. Generally two to three weeks was the timeline to assure that you would not have any issue with closing. If it went beyond that point and the buyer did not terminate the contract; then the seller was entitled to the earnest money in addition to the due diligence fee. Most buyers would offer $100.00 to $200.00 for this convenience and the sellers would accept. Now, i am noticing that sellers are asking for half or most of the earnest money in due diligence fee and the time lien to be shortened.... They argument I hear is that it is a sellers’ market. Well in my professional opinion it is all subject. If I am in a multiple offer situation then putting in more due diligence money and a shorter time will make my offer more attractive to the seller if all of the other terms are equal. but if the house has been on the market for an extended period of time; then putting less money down should be expected (as long as the time line is reasonable). I have been in both sides of this dilemma this year and do not know if there is a concrete answer. What I have concluded form transactions that have closed and not closed is that the seller that asks for more money upfront and a significant shorter timeline are harder to negotiate with on repairs and closing and extensions....generally the buyers are getting frustrated and I have had a couple walk away from deals and lose due diligence money. I have been working on the premise of a couple hundred dollars for due diligence fee and a two to three week window period with a 30 to 45 day close.....I like to think that I can get all the necessary inspections and repairs negotiated out in that time line and have the appraisal back and all the preliminary underwriting done. If not; then i am not doing the buyer or the seller any justice or my job. There are going to be people that disagree with my thinking. But as a Realtor working both sides of the transactions as a listing agent and a buyer's agent....when o get an offer with those time liens in it I feel it is fair and I present my offer with those timelines in it. Ironically, all deals I have negotiated and closed or closing never have asked for any adjustment in the due diligence fee or time period. Dave diCecco Realtor/Broker Coldwell Banker United Cell:704-519-7895 ddicecco@cbunited.com www.davedicecco.com

Should I Rent Or Buy A Home In Charlotte, NC. in 2013?

As we fast approach the spring selling season in Charlotte, NC. One factor and variable that comes up often is should I buy or should I continue to rent in Charlotte, NC. area? It is a good question and one that deserves further discussion. The last couple of years it was a no brainer if you could buy you should purchase a home because rental prices were climbing fast as supply shrunk to levels that could not meet demand....But since home prices are rising as more buyers are out looking and inventory is shrinking; should I still consider buying? Ultimately the decision is yours and one you should not make lightly. For most people and families owning a home is the American dream and one we all strive to reach. Whether owning that home is this year or next or in a few years is only a question you can answer. But if the time is now and you are on the fence whether it is right to buy; let me give you some startling statistics. In Charlotte, NC. the average rent for 2012 was $1065.00 a month for a two bedroom apartment and $965.00 overall. That was an increase of over 4% from 2011 for a rental. Now there are places you can rent less expensive and others that are more expensive to rent.... Consider that you can purchase a home through FHA at 3.5% interest rate on a $220,000 home would be equivalent to an average rent in Charlotte, NC. and that the average sale price of a house in Charlotte, NC is $217,940. And my scenario includes your property taxes and mortgage insurance. Currently according to studies I found and read about rent versus buy in Charlotte, NC. the cost of ownership versus renting it is 38% cheaper to own a home than it is to rent right now..... Historically this is not the case as rentals in a good market are substantially lower than buying. However; in Charlotte over half of all home sales were less expensive than renting. That is an astonishing number and one I witness every day. First time home buyers are shocked at how low their monthly payments are on the homes they are buying and ask themselves all the time; why did I not do this sooner..... Thinking of buying a home in Charlotte, NC. and not sure if it the right move; you will be shocked and surprised at what you can buy in Charlotte for the same as you are paying in rent right now.... Dave diCecco Realtor/Broker Coldwell Banker United Cell:704-519-7895 ddicecco@cbunited.com www.davedicecco.com